Ima Rich is a very elegant woman. She has a nice car, lives in a nice area, and hangs out with other high-class people. Ima is one of the "Broke Folks," though. She lives from one check to the next. Her life is full of worries and debts. Even though many people are jealous of Imcomfortable a's life, she is constantly reminded of the fact that she lied about her money.
The Money Matter
Do people in your family bother you because you're good with money? Are you made fun of because you prefer to save money over spending it? Many Americans have flashy cars and big, expensive houses, but they don't have enough money to live on. During the first few years of our marriage, some people tried to change how we lived. We knew what we were doing. We had to act like what we were. You live in a certain area and have the best things in the world. We're glad we didn't believe this hype. It was all about looks and had no real meaning.
We are constantly told by the media that getting things will make us happy. This lie makes our kids confused and turns us into "Dream Brokers." It looks like a lot of Americans have bought into this pointless way of life. So, we have made a country full of people who are broke.
You might ask, "What are Broke Folks?" Broke Folks is about people who try to have a high-class image but don't have the money to back it up. It's not about making a lot of money. There are many examples of professionals (lawyers, doctors, etc.) who are deep in debt but won't fix it because of how it makes them look. Being broke has become the norm.
What's Really Going On
Dave Ramsey, who wrote the book Freedom, Peace, meets a lot of Broke Folks on his talk show, which is broadcast all over the country. Ramsey says, "You are stupid if you listen to advice from Broke Folks." The rise of this social class is shown by the following statistics from 2004 from Bankrate:
If you take out mortgage debt, the average debt for a US household is about $14,500.
A typical purchase made with a credit card costs 112% more than if cash were used.
About 40% of US families spend more than they make each year.
About 60% of credit card accounts that are still open are not paid off every month.
About $8,400 is the average amount of credit card debt that US households have.
A big part of the problem with these statistics is that people don't wait to get what they want. Most Americans can do a better job of managing their money. We are no different. But there is a myth that wealthy people spend a lot of money. The authors of The Millionaire Next Door, Stanley and Danko, say that most Americans don't know how to get rich.
"Many people who live in expensive homes and drive expensive cars do not have much money," they say.
Even though they have a lot of money, many wealthy people do not live in upscale neighbourhoods. This urban legend about the "Rich & Famous" is spread by the media, which is clear. Here are some tips from the book "The Millionaire Next Door" that will help you build your wealth:
Stay within your means.
Spend your time, energy, and money on things that will help you get rich.
Make sure you have good morals so that having a high social status isn't more important than being financially stable.
Teach your kids how to make money on their own.
Be ready to use any market opportunities that come up.
Do your research before choosing a job so you can find the right one.
Freedom from debt
Get your finances in order and act like an adult. Independence from money is more than just a show. Don't let your family and friends treat you badly because you're good with money. Don't feel bad that your friends are living the Glamour Life while you eat "beanie weenies" for dinner. Take the offensive by staying away from "Broke Folks" and always learning more about money. Make a portfolio of your money. It is still possible. Get started now!
