To The Daily Sun,

The Biden Administration should be on a 12 step program for the debt addicted. Their proclivity for adding debt endangers us all. Severe depression comes to those facing money problems.

It doesn’t matter how much you make in any given year. It does not matter how much you make in your career. If you spend more than you make, you do end in bankruptcy.

The last year has been tough for many. This makes prudent finances more important. How many times have we read about athletes or entertainers with huge income falling into financial ruin? How does someone raking in the money end up penniless? These people are foolish, reckless and wanton with their money. It happens and maybe you’ve known someone it happened to.

Money managers for these high profile people work very hard to ensure their clients will have regular annual income for life. This means many contracts carry clauses defining how much of the earnings will be dispensed each year.

This means 15 to 20 years out of professional sports, the athlete will be assured of income. This can be a result of effective money management. Celebrities wise enough to choose effective professional financial counsel are advantaged by the relationship. Today’s Democrats should take notes.

It doesn’t matter how much you make. If you don’t effectively manage your money, you will wind up broke. Studies show inheritances on average are dissipated within seven years. Whether you receive $5,000 or $500,000, on average, after seven years the money is gone.

Being in debt is not conducive to having breathing space. It’s the opposite. When you’re in debt it has a way of dominating your day. When the next bill arrives, you think about your finances. Whether it’s the rent or mortgage that’s due, the issue arises again.

Every time you write a check, swipe your credit card, or take money out of your wallet, you are reminded of your tenuous financial condition. When you’re in debt and seek to repay it, you tend to work longer and harder. You want to make extra money to pay down those credit card balances.

Living beyond your means causes you harm in a slow, gradual way. There is a constant drumbeat in the back of your mind. “I’m not making it,” “I owe others,” “what if people find out?" The accumulating pressure will wear you down.

The fastest and easiest way to understand your personal finances is to construct a 12-month cash flow. Plot all of the incoming cash from all sources. Then do the same for all of the expenses you will be incurring. This can be done for longer periods and is more ambitious and more revealing.

It’s easy to get caught up in thinking you’re making a fortune. What do I have to worry about? The fate of “rich” people who die with money issues sends us a message. It tells us we have plenty to worry about if we spend more than we earn.

Marc Abear

Meredith

(1) comment

Chico

You sound like a total clueless Idiot!

Donald Trump added more debt in 4 years than any President in history and left Joe Biden and this Country in a total mess, which again is going to be cleaned up by a Democratic Administration.

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