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Black Belt Shopper True Wealth by Larry Wiener
Shelly
Spendthrift and Bertha Balanced were both employees of the Excelsior
Corporation. Both were bright and
hardworking, so it was not surprising that both of them were promoted into middle
management with significant raises. Read
how they handled their money the first year after their promotions. Then decide which one is wealthier. More...
Sally Spendthrift felt that with the new position, a new image was necessary if she were to be successful. She immediately replaced her four-year-old car with a luxury model to show that she was on top of the world. Of course she would need the clothes to command respect, so the first two weekends after she received her enhanced check, she went to the mall. Bertha Balanced also realized that she had to appear more credible. She enrolled it her local Toastmasters so she would be more comfortable making presentations. She knew that she needed new clothing, so she made a trip to the local outlet stores and closeout stores and gradually started building her new wardrobe. She knew that her six-year-old car would need replacement, so she started researching and putting money away for a down payment. Meanwhile, she treated herself to new paint and detailing on her car. Sally Spendthrift was certain that she would be on the fast track career-wise, forever. Therefore, she bought a new house in the best part of town. She felt the address would help her to look more successful when she applied for jobs in the future. Bertha Balanced was confident in her abilities, but realized that in this day and age companies come and go. She had always had six months’ income in reserve, but now realized she had to add to her reserve. Yeah, she thought, a bigger house would be good to have, but that could wait until she was on more solid ground. A year went by and both women’s income went up. Sally Spendthrift continued to buy the trappings of wealth while Bertha Balanced went a little more slowly in that department. People who met Sally were certain she was wealthy while Bertha appeared to be a solid middle class individual. Then one day a new competitor suddenly and secretly launched a product that cut Excelsior’s revenue by 30%. The company announced a 15% across the board salary cut. Bertha and Sally were returned to their former positions as a result of the shakeup, so their salary cuts were closer to 25%. Sally had all the trappings of wealth and panicked because, after all, she had a huge car payment and now almost half of her salary would have to go to the mortgage payment. Bertha took the hit too. She had to cut back on restaurant eating a little and couldn’t take the big trip she had hoped to, but she met her bills. Sally looked wealthy, but Bertha’s balance sheet was strong enough to withstand the assault of a loss of income. So how do you become more of a Bertha and less of a Sally? It takes a whole different way of looking at wealth and spending than the advertisers want you to. Here are some tips:
All of us know people who have as many trappings of wealth as they can afford—often bought on time. Some of us envy those people and are tempted to get more toys. Often, however, the person who is truly wealthy has fewer toys, but a stronger balance sheet. This is the person who is truly free. If you want more ideas on how to attain that the freedom that comes with the pursuit of a more balanced financial lifestyle, check out my e-book, The Black Belt Shopper’s Guide, available on this site.
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Copyright © 2006 by Larry Wiener, author of The Black Belt Shopper's Guide. All rights reserved. Want more money-saving tips? Get a FREE Subscription to our monthly newsletter!
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