Spend It All, Debt Management or Debt Free

There are 3 major financial approaches in the world today. The first are those who act as a conduit for money to flow from their employer (through their bank account) to someone else's bank. It kinda looks like this:

• Johnny & Suzy go to work
• Johnny & Suzy get paid
• Johnny & Suzy pay their mortgage
• Johnny & Suzy Pay their car payment
• Johnny & Suzy Pay their credit cards
• Johnny & Suzy buy groceries
• Johnny & Suzy buy the latest wardrobe
• Johnny & Suzy buy the latest gadget
• Johnny & Suzy buy a new car
• Johnny & Suzy buy and buy and buy
• Johnny & Suzy buy until their money is bye-bye.

Amazingly, many people have a "live for today" mentality. Nowhere is savings a priority. The only time they give is during christmas, thanksgiving, birthdays & during spurts of guilted generosity. No longer are they keeping up with the Joneses... instead they're flaunting for everyone at the cocktail party. Savings is a word associated with grey and blue haired individuals we've conveniently tucked into old-folks homes & stashed away to lighten our guilty conscience. They live to spend and spend until they successfully spend far more than they initially earned.

National savings (no, i don't have statistics) is at an alarmingly low level. The fact that most live far beyond their means is an understatement. While our people continue to spend their money at an astounding rate, there's no real consideration for "rainy days." In fact, a radio host (Dave Ramsey) quoted a poster found at a Time Share sales presentation: "If you always save for a rainy day, you'll never dance in the sunshine." WHAT??? Is our arrogant culture so short sighted and ignorant as to think that it will never "rain?" Do these people seriously think that there will never be times of lack or emergency?

The honest fact is, these folks are in grave danger of financial ruin. They walk a tight rope over an aligator pit guarded by ravenous wolves & famished lions. They will often experience a major financial catastrophe. Once that catastrophe hits, they become more open to wiser managing of funds.

Debt-Management
The second group of people are equally ill prepared for a rainy day with no stash of cash for a viable emergency, Instead, they will work extra jobs to service their highly leveraged lifestyle if an emergency arises. These people work and spend up to the limit and occasionally cross the limit. Considering themselves highly sophisticated, they toss around financial jargon like Starbucks-conversation. They contribute to a 401k or a Roth and occasionally "bet" in the stock market.

You'll frequently hear these folks talk about their latest toy or mateiral wants. As the holidays roll in, they may mention their giving to show how "financially capable" they are. You'll here them occasionally save up for a vacation or a large purchase, but the savings never lasts beyond the purchase. These folks are comfortably, yet precariously perched over the same aligator pit but still have no safety net. Instead, when they suffer a loss of a job or a financial emergency, Visa steps in and picks up their slack.

Due to their acceptable job performance & work ethic, they're able to get a reasonable job that will hold their financial position. With gifts from family & parents, they've secured their social status with duct tape & elmer's glue. Thre is the rare exception that will gladly give up the comfort for true financial wisdom.

Debt-Free
Living without debt is a totally different thought process. These folks are certain that there will be days of lack. There will be rainy days. The sincere hope is that stressful times will come less often, but they do not ignore the risk of emergencies.

Instead, by preparing for emergencies, they literally reduce most emergencies to minor inconveniences. The more prepared they become, the larger the emergency must be to cause alarm. This is a direct relationship to preparation: Financial, mental & spiritual preparation for life.

Beyond saving for a rainy day, these folks make Giving a first priority. Giving the first tenth to G-d, then being a blessing to those around them. Once these people have saved enough to live a reasonable lifestyle, they become exotic... extravagant... creative givers.

Finally, these folks make well planned investing decisions. Most of these debt-free people become quite wealthy and experience life on a more relaxed term. Like the zone diet, these folks realize that one bad choice isn't the word's end... instead, they are merely one choice away from their financially intelligent life.