A very timely article was sent to our leadership forum at the end of last week titled "5 signs that you are living beyond your means". What has happened since is a stream of emails have gone out to our teams around the topic of money and what the realities that surround it really are. In response, we have received great communications back from our coaches who are starting to realize the importance of following their passions, being truly blessed that they enjoy their work and that when they work hard at what they love, the money will follow.
What we are trying to do is educate our teams (who are generally from the echo-boomer generation - the caudled, instant gratification, need and want everything now era) on the importance of taking the right steps to a prosperous future and that they do not need everything right away, just because the media says they do.
One major issue is that we work in a difficult environment that surrounds us around people who have a significant amount of money and all the "toys". What this does is sparks us all to want the same. The only problem is that we usually do not stop and think about what it took these people to get to this point and how hard they had to work to get there. Because of the era we grew up in, and what we are accustomed to (buy now, pay later - the new world of credit), we see it and want it all now. The reality is that it would take us 10-20 years of buckling down and working extremely hard (with a plan) to set ourselves up to reap the rewards.
Some advice - develop a 1yr, 5yr and 10yr plan in which you plan to take the right (smart) steps to ensure you are consistently "living within your means" and have placed yourself in a career that you are passionate about and are willing to work hard everyday at. If this means taking a step back to consolidate, so be it!
Here is the link to the article written by Glenn Curtis, on behalf of Yahoo Finance that touches on these 5 areas you need to consider when assessing your spending:
- Your credit score is below 600.
- You are saving less than 5%.
- Your credit card balances are rising.
- More than 28% of your income goes to your house.
- Your bills are spiraling out of control.