ARE YOU SUCCESSFUL AT MANAGING YOUR MONEY?

Are you successful at managing your money?  Sometimes people make the mistake of thinking that if they don't make a lot of money, they are not successful.  That simply is not the case.  It's more a case of what you do with the money you make than how much you make.  Obviously it's easier to become wealthy if you make a great deal of money and are good at managing it.  However, it is also true you can become wealthy even if you don't make top dollar.  It's all how you handle your money.

For example, I know a couple who own a few small businesses.  They have a nice home, nice cars, live well and by all outward appearances are quite successful.  However, they recently told me they were trying to decide whether to pay off one of their credit cards with a $50,000 balance or keep the money in a savings account.  The interest payment alone on this account is $650 per month, with the minimum payment closer to $1,200 a month.  To help them gain a little perspective I explained to them that their interest payment alone would pay my rent, phone bill, doctor's bill and all my credit card payments each month.  Keep in mind, this is only one of their credit cards, they have several more.  So while they may be good at starting businesses and creating cash flow, they aren't so well versed in what to do with the money after it comes in.  It seems like a simple decision to me, earn low interest in a savings account or save $1,200 per month in payments.

So you can be income rich and cash poor or make very little in income and build a nice pile of cash.  It all comes down to how you handle the money you make.