Today marks the end of the 3rd quarter and a great time to reflect on events and lessons from the last 90 days.
Life Lesson #1 – Cash will always be King
This past Wednesday at Executive Toastmasters there was a sign taped to the door of The Egg and I. CASH ONLY. The credit card processing machine had died the previous day and they were unable to take credit/debit cards. No Cash = No Breakfast.
I was good to go as I try to always have cash in my money clip and also my “Stash Cash”.
Another man was approaching the door, and you could tell he was dressed for a one on one meeting. Maybe possibly an interview or maybe he was interviewing a potential hire.
He read the NO CASH sign and vocally announced his exasperation. I listened and watched as he stepped inside and waited for his guest. His comment to The Egg and I employee was that they would have to go somewhere else since he had no cash with him.
Probably not the impact he wanted to make that morning.
Life Lesson #2 – $100K and Broke Club
If you step into an ongoing “train wreck” you are only going to get injured. Unfortunately, you have to wait until the crash occurs and then try to assist those involved.
One of the hardest things that I have encountered during my professional career is being sought out for advice and after giving the advice, watch as it is completely ignored.
I speak about The Financial Olympian™ Creed. The Creed is a simple process to organizing your financial priorities and making your future financially successful. Step Four of the Five Steps to the Creed is to “Live within your means”.
I constantly see singles and couples that are making $100,000+ per year and are broke. They live paycheck to paycheck and are one mishap away from potential financial disaster. I know of several that are in this club and they are making nearly $1 million per year.
Do you recognize these problems of the $100K and Broke Club? They ask “what can I do?” I outline the problems they have and just like an alcohol induced New Year’s Eve Resolution they are ignored within a week.
Problem 1 – They are spending everything they make. In addition, they can’t account for where they spend it when you ask them.
Problem 2 – They do not have a pay yourself first mentality. They have a pay myself last mentality. Since there is an internal level of arrogance that there will be a never ending supply of jobs that will pay them $100,000 or more because of their skill set, the urgency to put away money for retirement or a rainy day generally falls to the bottom of the pile.
Problem 3 – No plan and no accountability partner – The $100K&B earners tell themselves that if they are smart enough and good enough to make this type of income, then they should be able to figure out their family finances. It’s like the heart surgeon performing surgery on themselves, we all know the outcome.
Problem 4 – They make poor financial decisions without looking at the entire picture. By making poor choices around their total financial picture, it puts a tremendous amount of strain on having to earn more versus living comfortably off of the six figure income.
Moral of The Life Lessons
- Have some cash on hand
Live within your means before your personal train wreck occurs
Go enjoy the “The Great State Fair of Texas” – Big Tex is waiting to see you!
Michael Tannery CPA CDFA® AIF® ● CEO
Be A Financial Olympian