Why do some households manage their finances effectively while other people wonder where their money went long before their next pay check? The answer to this is three-fold: it’s important to have enough income to support a household, but it’s just as important to have the right mind-set and skills.
Do you have a pipe or tank mentality when it comes to your finances? Easy come, easy go is a pipe mentality. If you don’t worry about your income disappearing on expenses and debt you probably have a pipe mentality. Good financial health requires a change of mindset, you need to store up as much of your income as possible. Think of it as having a tank mentality. It’s good to spend money getting debt free, that’s part of having a tank mentality. It’s good to think carefully about what you spend your hard won money on. It’s good to think of ways to increase your income or make the most of it. It’s good to get your money, small as it may be, to work for you.