Reading my blog you will notice that while not all of the posts will be related to money a good deal of them will be. Why write a blog almost entirely on finances? Well if you are like me you will find the subject fascinating. Some people will study botany, others study pottery I am a constant student of finance. It is simply a subject that I enjoy. However, it holds more importance than a simple hobby which can be set aside if there is not enough time. I am a firm believer in the philosophy that those who do not control money are controlled by it.
It is easy to see the direct effects of poor money management. A poor credit rating can lead to being being denied a loan for a car or a mortgage. Running out of money before the next pay check can lead to credit filling the gap; and debt left unpaid can lead to bankruptcy. But there is a more subtle, yet just as important, impact of poor money management. It can lead to sleepless nights, strained relationships and sever limitations of opportunities, such as schooling.
While a careless attitude with money can lead to heartache, too much importance can also be harmful. Money for the sake of money serves no purpose. Expensive items and large investment accounts can not provide self-fulfillment or comfort. Still so many people obsess on money for the sake of money: to see their name on Forbe's list of the richest people in the world.
So what is the correct way to look at money? It depends. (Big surprise there huh?) I can only tell you why money is important to me.
Money for me is possibilities. It gives me the capability to act as I see fit when I see fit.
Money gives me a modicum of security. Owning my home completely and having a well stocked emergency fund helps to buffet the shocks that life will inevitable throw me.
In essence, I believe that all monetary goals should, such as saving a million dollars, be in the interest of furthering non-monetary and non-materialistic goals, such as having enough to stop working at the age of 65.
I have reached the monetary goal of being in a financial position to complete my Masters. I will enjoy the process of earning my Masters, and this will move me on a career path that I want to pursue.
I want to pay off my mortgage in 5 years, to free up a good percentage of my income. Freeing this income would allow me to support not only myself but the children that I wish to adopt.
Saving aggressively now will not only allow me to retire in comfort but will allow me to retire earlier and spend more time and energy with my family.
By controlling my money I control a larger portion of my future. Though my spending may seem somewhat restrictive to the outside viewer, it will give me the wealth necessary to live a life that I will find rewarding.