How to Handle Money...The Postage Stamp Method

Consider the postage stamp. It never exceeds its capacity. It never tries to do more than it can do. It does not borrow or ask for help from other stamps. It lives within its means, works hard and gets the job done. It never sticks to what it cannot chew. What about you?

New York Times Best-Selling Author Dave Ramsey once said, “I am positive that personal finance is 80 percent behavior and only 20 percent head knowledge.” Ramsey believes it our behaviors around money that makes us continually fall into debt and live a life of struggle.

But, just like with anything, if you want to change your behavior with money, you have to do just that, change. But change is painful, right? Very few people view change in a positive light. Unfortunately, most people won’t change until the pain of where they are exceeds the pain of change. That’s why, according to CNN Money, a whopping 76 percent of Americans live from paycheck to paycheck.

The best way to handle money is to be willing to delay pleasure. If you are willing, Ramsey says in his book, The Total Money Makeover, “If you live like no one else, later you can live like no one else.” This means that if you make the sacrifices now that most people aren’t willing to make, later on you will be able to live as other people never will. But you must delay your need to spend money now. You need to stop giving into instant gratification.

Another good book to help with finances is by Rachel Cruze, she is the daughter of Dave Ramsey. She wrote, Love Your Life, Not Theirs – 7 Money Habits for Living the Life You Want. She believes in G.S.S. which stands for giving, saving and then spending your money. I like that principle because when you focus on giving, more will be given to you to give to others.

Also make sure you are automatically investing your money. When get a check from your employer, have some of the funds automatically go into your savings account or investment account. This way you won’t forget and you won’t spend the money unnecessarily. Automatically investing means your money will be earning money for you and working for you. Check out the book: The Automatic Millionaire by David Bach.

You need to visualize your life without debt, what would your life be like? But many times even this visualization is difficult. Just as slaves born into slavery can’t visualize freedom, people the world over, can’t visualize a life with no debt. But it is possible!

I highly recommend the book, The Total Money Makeover by Dave Ramsey, not only does he list practical steps to get out of debt, he interviews dozens of couples that tell exactly how they got out of debt using his system. If they can do it, you can do it too.

 

And there you have it. If you want to go deeper with me on this subject, sign up for my Free Academy Training.

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