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Importance of Spending Control

Posted On: 2006-10-16Length: 14:59

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Hi this is Joan and this is episode 60 of The Prosperity Show. Thanks for tuning in. Our main site is prosperityplace.com where you can find lots of information to help you improve your relationship with money and yourself. And you can also find out about my book, "Build Your Money Muscles-9 Simple Exercises For Improving your Relationship with Money," which is also available in bookstores. Today we're going to talk about spending control. You can't get rich without it. I've been reading an awful lot of articles about consumer debt and the fact that for the first time in history the savings rate is in the negative area. In other words, people are using up their savings and not creating new savings, for the most part. Obviously some people are saving, but the general saving rate is in the negative. And what's clearly in the positive is the debting rate. It just keeps going up and up. And I know that most people who are in debt are not necessarily comfortable with their debt. It causes fear, it causes discomfort. So that whatever people are buying that's putting them in debt, they can't possibly be enjoying completely because with that debt comes a certain amount of shame and concern and fear. What's amazing to me is how willing people are to get into debt, not because they're investing in their business or investing in themselves, but they're just buying a lot of toys. And a lot of things they don't need. Now because hospital bills are going up, and the cost of medicine is going up, and certainly the cost of gas was going up, I think it's down now because of the election. I think it's going to go up again after the election. People are feeling the pinch more and more, and they're disposable income is often disappearing. So in order to get things that they need, like medical care, they're charging it. What's not happening is people aren't looking at their finances and saying, well what can I do to create a cushion for myself? What do I need to do to allow myself to feel more comfortable financially? Spending is never going to get you rich. The secret of millionaires is that they spend less than they earn. That's simple. And for many of you, your income hasn't gone up in a long time, and you're working really hard and it's feeling stagnated. And when these unexpected expenses come up, it seems like you have no choice but to charge it. And then you get into this cycle of having to pay the credit card bills, and you're not only paying for what you bought, but you're paying interest. And there really is a vicious cycle. I know that 50% of all bankruptcies are because of medical expenses. What's really sad is that a lot of soldiers who have gone over to Iraq are coming home and going bankrupt, particularly those who are in the...

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rush my essay said:

Well a very beautiful article was written and will demonstrate us about living in today world. When you will get to know things about spending and controlling things that you can control on every level and make better change.

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