Living Beyond Your Means
If I ruffle some feathers here, it’s not by accident. I intend to. But don’t worry. I’ll be gentle.
First, let me tell you this. So many people have a twisted notion of starting a business.
I have had this conversation many times with entrepreneurs while coaching or consulting with them. I’m sure you have heard the statistic that 9 out of 10 businesses fail within the first year. Haven’t you?
Well, they fail because they don’t have the backbone to stay in the race. Why? It’s because their financial circumstances prevent them from hanging in there. I want you to be smarter than that. I want to make sure you are not one of those people.
Here’s what I observe from a lot of the speakers that quit too early. They live beyond their means. They are always two-to-three payments away from losing their homes, cars, or credit status.
A few years ago, I did a program for the Post Office in South Georgia. Another speaker friend of mine was on the program and we decided to ride together. We got a chance to get to know each other a little more.
During our conversation, we ended up talking about why so many come and go in this industry. We both agreed that many speakers don’t last because of their lifestyles. They outspend whatever they make and then some.
My friend and I both agreed that our secret is because we are pretty darn good with our money and how we choose to spend it.
Admittedly, I love nice things. I’m the kind of guy who loves to play with the latest gadgets. But I’m also the guy with a lot of self-control. I learned how to manage my emotions when it comes to money. I don’t buy to keep up with the joneses.
Now, I say emotions because we always buy based on our emotions, and then we use logic to justify the purchase later. We all do it to some degree or another.
Yeah, some of us might claim that we are smart and rational about our buying decisions. You might say, “That’s not true. I buy when things are on sale.” Well, you may be smart alright, but your emotions still rule.
Now, I’m not pointing fingers. I’m the same way, too.