BAD EXAMPLES OF FINANCIAL MANAGEMENT

The media is in the business of using bad examples. Negativity sells. No one wants to read a story about someone who overcame the odds and succeeded. This does not sell. Wisdom is not something that people are interested in. They want the dirt on someone. They compare themselves to a loser and say to themselves, at least I am not as bad as he is. When they have to compare themselves to a successful man, they do not measure up and thus for them, ignorance is bliss.

If you believe the media does not have an agenda, then there is no hope for you. You are willingly deceived. The media reports on effects, not causes. They are not interested in getting to the bottom of anything. They would not have anything to report if the news was all good. They need bad news and so they go looking for bad examples. Bad examples are good for the frugal. Bad examples show us what to avoid.

A recent Associated Press article was titled "More drivers running on empty." Here is a representative quote from this article, "With gas prices hovering at $4 a gallon, motorists like Saba are putting less fuel in their tanks — then coming up empty on the highway." This is an example of poor planning. Those who do this are seeking to evade reality. No matter what, high fuel prices are here to stay for awhile.

Nothing is going to change gas prices in the short term. We must accept the reality of the situation. Gas is a commodity. It is a necessity. It has to be part of one’s budget. With the price being what it is, it behooves the frugal to increase the amount allocated to gas in his budget. This is being realistic. The increase in the price of gas is incremental. It does not comprise one’s entire budget. Incremental rises in a necessity of one’s budget requires a corresponding incremental increase in funds allocated to that budget item. This means that something must be cut back to make the budget work.

Those who are running out of gas demonstrate that they do not understand financial matters. They do not have a budget. They lack planning and preparation. They do not know how many miles their car gets per gallon. They are running on empty because they do not understand that finance is first and foremost a spiritual enterprise. Demonstrating foresight is a spiritual exercise. The frugal plan ahead and do not run on empty.