A. Some people get out of debt and, after doing so, they toss aside the principles that served them so well in getting out of debt. They handled debt-recovery very well, but failed to kick into debt-prevention mode. They got to the starting line and then they quit.

In this whole matter of personal money management, there are three basic management styles or ways of life. First are those people who needlessly carry heavy financial loads. They carry credit card balances from one month to the next. They owe far more than they can pay and spend more than they earn—forever juggling and trying to keep their heads above water. They are every consumer credit marketing department’s dream customer, because they fit a predictable profile and contribute to the huge profit margins of the credit card companies.

B. The next group live paycheck to paycheck and spend every dime possible flirting with credit cards, debit cards and ATM cards, because it is so much fun living on the edge.

C. The last group is always the smallest. They fight to maintain their financial freedom by restraining themselves. They embrace the debt-free lifestyle in that they do not live on credit nor do they mess around with credit cards. They live according to a specific plan. What they do with their money is by design. They expect the unexpected, they are prepared, and they live with exuberance—they smile at the future.

You may be the person who goes the wrong way on a one-way escalator carrying a heavy load. You can’t even see where you are going, stuck on a treadmill living from paycheck to paycheck. Or, with persistence, you can choose to travel on a moving sidewalk that will take you where you want to go in your financial life. I encourage you to make a decision right now to build a strong financial foundation.

Which person are you?

Your thoughts on this subject? Your comments appreciated!

Content © Rich Brott, 2011

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