How Much You Keep, Not How Much You Earn - Politicrossing
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How Much You Keep, Not How Much You Earn

Rich people who die with money issues tells us that spending more than you earn is risky for individuals, and for entire countries

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The tragic death of Robin Williams in 2014, who took his own life while suffering from severe depression as well as facing money problems among other things, reminds us of a truism of personal finances: it doesn’t matter how much you make in any given year, or in the span of your career.

If you spend more than you make, and do it in a hurry, you can end up as bankrupt as anyone. This last year has been particularly tough for many people and so prudent finances are more important than ever before.

Here Today, Gone Tomorrow

Yesteryear, we often read about professional athletes or entertainers who annually earned multimillions of dollars, but then, a few years out of the sport, or out of the celebrity limelight, fell into financial ruin.

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How could someone raking in several million dollars a year, we thought, end up penniless? How foolish, how reckless, how wanton could people be with their money?

Today, at least among pro athletes, money managers ensure that said individual will have regular annual income for life. In pro contracts, clauses stipulate how much of an athlete’s earnings will actually be dispensed in any given year.

Hence, 15 to 20 years out of professional sports, an athlete who had been earning, say, $10 million a year will be assured of income for life as a result of effective money management. Celebrities who are wise enough to choose effective professional financial counsel are similarly aided.

Low Debt = Breathing Space

No matter how much you make, if you don’t effectively manage your money, it can all go to pot. Studies show that an inheritance, of any size, is dissipated on average within seven years. So, whether someone receives $5,000 or $500,000, on average, far too soon all that money is gone.

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

Every time you write a check, or surrender your credit card to a vendor, or even take money out of your wallet, you are reminded of your tenuous financial condition.

When you’re in debt and seek to re-pay it, you tend to work longer and harder. You want to make extra money to pay down credit card balances. Living beyond your means, however exhilarating in the short run, is insidious in the long run, for people and for entire nations.

The constant drum beat in the back of your mind, “I’m not making it,” “I owe others,” and “What if people find out?’ can wear down an individual in ways that we don’t even fully understand.

Construct a Cash Flow

The fastest and easiest way to understand the state of your current as well as future personal finances is to construct a 12-month cash flow spreadsheet.

A well-constructed cash flow plots all of the incoming cash and revenue from all sources, and to the best of your ability projects all of the expenses you will be incurring. A 36-month cash flow is more ambitious and more revealing.

It’s too easy to get caught up in thinking, “I’m making a big bucks annually, and my goodness, what do I have to worry about?” The fate of rich people who die with money issues tells us that you have plenty to worry about if you spend more than you earn.

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Jeff Davidson is the world's only holder of the title "The Work-Life Balance Expert®" as awarded by the U.S. Patent and Trademark Office. He is the premier thought leader on work-life balance, integration, and harmony. Jeff speaks to organizations that seek to enhance their overall productivity by improving the effectiveness of their people. He is the author of Breathing Space, Simpler Living, Dial it Down, and Everyday Project Management. Visit www.BreathingSpace.com for more information on Jeff's keynote speeches and seminars, including: Managing the Pace with Grace® * Achieving Work-Life Balance™ * Managing Information and Communication Overload®



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Life

Choosing to Trust Yourself

Every other day, we’re given contradictory, ‘authoritative,’ new advice on social distancing, masks, what’s safe, and what isn’t.

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Every other day, it seems we are given new ‘authoritative’ advice on social distancing, masks, what’s safe, and what isn’t. Much of the news to which we’re exposed contradicts what we were already told.

The CDC and some top officials, who shall remain nameless, have done less than a stellar job of providing reliable public information. Some governors in large population states, have been inconsistent, partial, duplicitous, authoritarian, and, in some cases, criminal.

Who Can I turn To?

Against such a backdrop, how does John and Jane Q. Citizen move forward professionally and personally? This is not foolproof but works as well as anything we’ve seen: Trust yourself and your decisions.

Trusting yourself enhances your ability to choose based on limited or inconsistent information. A study in the 1940s of highly successful people uniformly found that they reached decisions quickly and retreated from them slowly.

A more recent study found when people make decisions based on instinct, they are happier or at least more content than those who make decisions based on careful analysis. Hmm. Too much thinking could be hazardous to your choices – and to your happiness!

Reinforcing Statements

Here is the statement that reinforces your desire to trust yourself: “I choose to trust my ability to make the right choice.” Another essential choice is choosing to feel worthy and complete, simply spoken to yourself: “I choose to feel worthy and complete.” This helps me reduce anxiety, stay calm, and feel more relaxed.

Depending on how long it has been since you’ve felt worthy and complete, you might have to make this choice for many days or weeks running – but keep at it.

By choosing to feel worthy and complete, you automatically redirect yourself to accept that there is nothing you must do. Everything is based on your choice.

If you choose to continue working on some task, even one assigned to you, the choice is made in the present moment, and not based on a prior agenda. A worthy and complete feeling yields a tremendous sense of inner harmony.

Maintaining Your Choices

As with any quest to reinforce choices you make, write or type your choices and post them, or voice record them and play them back. How many choices can you make at once? Make a few or many, there is no limit.

Choose what feels right for you. And keep choosing. While you’re waiting in a bank line, run through your choices. If you notice yourself wavering, recall the new behavior or feeling that you’ve chosen.

You can choose to overcome rituals that no longer support you, or you can make choices beyond anything others would have guessed you’d choose.

A new idea is such a rare thing. We often simply parrot what we hear and read. You can make choices that are not congruent with your history. You can makes choices that no one has ever made before.

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Business

Hey Liz Cheney, And Other RINOs, Here’s the Truth!

Liz Cheney and RINOs are out of their minds to believe that Trump hurt the party!

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RINOs like Liz Cheney and others constantly make the argument that Donald Trump has broken the Republican Party and driven people out of the party. But that is so far from the truth it’s incomprehensible that they even say it. PolitiCrossing founder, Chris Widener, one of the world’s top motivational speakers, makes the case against them in his brand new video. Check it out below and then let us know what you think!

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