I enjoy “running the numbers” -

What will happen if I save “x” dollars for “y” years?

What will my balance be if the rate goes from “q” to “r”?

Can I retire in “z” years?

I’m fascinated by the mathematics of personal finance – but I am also keenly aware of the emotions behind our purchasing, borrowing, and spending habits. Bad habits are hard to break and good habits are difficult to establish – It’s hard to start living on a budget, it’s hard to focus on debt reduction, it’s hard to care about insurance, dividends, and investing.  For years, I struggled to properly manage my finances.

I’ve struggled to figure out “why” I used to be such a poor money manager, and I think I’ve come up with a few answers.

1.  I really didn’t have anyone to talk to about personal finance issues.

2.  I felt like the “magic day” would come and I’d “make enough” and I wouldn’t have “worry about” money.  (Sound familiar?)

3.  I was so busy with life (getting married, have kids, working hard) that I never took the time to think “long term”.

4.  I was lazy.

Combining all of these things, I had to make a “break” from the ways of my past.  Now, before you get the wrong impression, let me clear up a few things.  I have never bounced a check, I’ve never missed a payment, I’ve always worked hard, I’ve always had a good credit score, and my family has never gone hungry.

I’m not really talking about “failing” as a financial manager – I’m talking about “being average”.  I was the prototypical “paycheck-to-paycheck” guy.  I made a good living, my wife worked, and my kids had plenty of toys, food, and clothing.  The problem was – I WAS STANDING STILL.  I wasn’t really moving backwards or forwards.  I was, as they say, treading water.

Three years ago, I decided to change my life and the way that I manage my finances.

1.  I started to use a monthly budget.

2.  I started to talk to my wife (and eventually my kids) about money and it’s role in our future.

3.  I stared the blog that you are reading right now – so that I would have a place where I could openly and freely talk about this important topic.

4.  I promised myself that I would get out of debt and that I would never borrow money again.

5.  I started to open up to friends and family members – and I committed myself to “being different”.

6.  I stopped waiting for “good things to happen to me” and I purposed in my soul to “make good things happen for my family and for those around me”.

7.  I organized my financial documents and I established “how much money/debt/savings” I really had.

8.  I committed myself, fully – emotionally, psychologically, and spiritually – to being the best money manager that I could be.

9.  I learned to admit, to myself, that I knew very, very, very little about “one of the most important aspects of life” – personal finance management.

The takeaway?  Getting started can be difficult – but I can PROMISE you – it’s worth it!  Analyze the things that you are doing (or not doing) and make the decision to CHANGE.

(One more quick thing  – Stop COMPARING yourself to other people.  We all have variables – kids, illness, income level, where we live, where we work – that affect how much we can save, how quickly we can pay off debt, and how much we can contribute to our retirement plans.  The key is – DO THE VERY BEST WITH WHAT YOU HAVE!  The chairman of Coke doesn’t manage Pepsi.  He manages Coke.  You don’t manage your neighbor – you manage you.)