In my previous business world experience, we had a saying “bad business makes you smarter.” The theory behind this was if your business was bad it forced you to research and evaluate all that you were doing. If business was good, you simply sat back and enjoyed the ride – even if there were things that you could do better, there wasn’t any incentive to work any harder.
This philosophy plays out in many families as well. The budget doesn’t get pulled out until a time of financial strife, either forced or chosen. Even with all my money experience, my family didn’t get serious about money management until after I decided to work part time. Before that, we always managed to make ends meet and put some money away, so we didn’t give much thought to a budgeting system.
Once we chose to take a family pay cut, our whole perspective on money shifted. Everywhere I looked I saw money signs. The pressure of not being able to afford the basics was a sure motivator to get “money smart” fast!
Nothing encourages creative thinking better than being short on cash. In my opinion, it is smart for all businesses to have some hard times and all families to live through a time of less. This type of thinking will stick with you. It will help you appreciate the importance of a budget and help your evaluate your spending.
If you have never felt the pinch in your own family, you may want to try and make some changes to help you appreciate the situation. One family I know decided to force good money habits on themselves by setting aside the maximum amount you can each year towards your retirement. They did this with their paychecks, so it was almost like getting a pay cut initially. This process did two wonderful things for them, it forced them to live frugally and it helped them to save for the future.
If your family is in a tight money pinch, whether you have chosen it or it was forced upon you, don’t let it get you down. You are learning valuable money management lessons for yourself and your kids. In turn, if you are living plenty, you may want to consider trying a year of dramatic savings to encourage your family to learn these important lessons too.
Related Articles:
*A Personal Financial Tip from the Business Sector
*What Motivates You to Manage Your Money?