Why Is Money Attracted to Some People and Away from Others

by Dwight Nichols …

The following is an excerpt from my book The Beginners Guide to Personal Finance: Everything Teens and College Students Need to Know About Managing Money Before Leaving Home. â€” Enjoy!

Mary’s Story

“One of the greatest tragedies of modern times is how young people are being lulled into a mindset that will keep them, and their children locked into a lifestyle of poverty and financial lack. By the time they finish high school, they have been conditioned to think a certain way about life and money that is inconsistent with the principles that govern financial prosperity and economic success.â€

Mary is a twenty-eight-year-old college graduate. Even though she has a good paying job., after 5 years of working on her current job she has only $500 in savings. Even with a good job, Mary is facing financial Struggles…  Despite owning a home and driving a nice car, she has maxed-out credit cards, lingering student loans and finds herself Living Paycheck to paycheck, with Nothing left over for emergencies or retirement after paying her monthly bills. In her counseling appointment,

she told me she was looking for a new job because she was not making enough money to cover her living expenses.

She said that she could not afford to pay her bills on her current salary. She blamed her job and the economy for her current financial circumstances.

She said that she could not afford to pay her bills on her current salary. She blamed her job and the economy for her current financial circumstances.

I asked, “What are you planning to do to improve your financial conditions?â€

She said, “I am looking for a new job that pays more money.â€

“Tell me, do you have a plan for budgeting and spending on your current job? Are you setting aside anything in savings for unexpected events or retirement?

She answered, “I do not make enough money to think about a budget or much less retirement. It is difficult to find any money for savings after I pay my monthly bills. I just do not have any money left after paying my living expenses. That is why I am trying to find another job!â€

“What other things would you like to do in life if you had the money? What are your financial independence goals?â€

Mary said that she would like to accomplish the following goals: Retire at sixty with $1 million in savings, regularly volunteer in her community, and take an annual trip abroad.

Without realizing it, Mary has fallen into the same trap as most young adults starting their life journey. Although she has followed conventional wisdom regarding education and building good credit (as promoted by banks and credit card companies), she still struggles financially. She said she would like to retire early and have the time and resources to bless others, but she has never made any plans to move from where she is to where she wants to go.

Mary believes that more money is the solution to her financial problems. But would her current financial condition improve if she earned more money? Or would she continue to make the same mistakes that caused her problems in the first place because of what she believes and the way she thinks about money?

Where did Mary go wrong, and what can young adults (and their parents) learn from Mary’s story? What roles do attitudes and beliefs play and what practical steps could Mary have taken that would have allowed her to achieve the financial independence goals she desires for her life?

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Money Skills for Young Adults

What You Need to Know Before You Get Out on Your Own

Most teens and college students are unprepared for the financial challenges of adulthood when leaving home.

Growing up you have been conditioned to believe certain things about life and money. Now you have finished high school and maybe even college, and now you are ready to take on the world, blazing your own trail to independence and financial freedom. You have followed conventional wisdom. You were told to get a good education, a good job, get good credit and you could have whatever you wanted in life. But Have we really been taught the right Lessons we need to know about life and money when we get out on our own.

By the time they finish high school, most young people have been conditioned to think a certain way about life and money that is inconsistent with the principles that govern financial prosperity and economic success.

Most young adults, as they prepare to leave home, have already developed mindsets and attitudes– lifestyle habits, that will shape their financial future.

They don’t understand the basic principles of personal entrepreneurship and economic success. As a result, their financial futures are very predictable. Consider the following statistics for individual wage earners…

• Approximately 80% of the working population are employees depending on someone else to determine how much money they earn
• After five years of starting their careers most young adults In the US find themselves struggling financially. A staggering 73% of the U.S. population is living paycheck to paycheck, barely covering living expenses, despite having a good paying job.
• The majority of young people finishing high school (65%) do not believe the American dream of homeownership is attainable for their generation (2025 Survey)
• 35% or more of the average family’s monthly income goes towards making Payments on debt. The Debt-to-Income ratio suggested by many banks can range from 35 to 50% of a person’s income. (Hud handbook for FHA loans)
• 77% of wage earners would have financial difficulties if their paycheck were delayed by one week
• Over 70% of seniors are broke at retirement age — recent data shows that 80% of households 60 and over are struggling financially (NCOA)These statistics are exacerbated in urban and minority communities !!!…There Are Four Primary Reasons People Struggle Financially …
  • Wrong thinking: (What we have been condition to believe about life and money)
  • The lack of Purpose and vision for your life … (You must have a plan for your life- a plan with specific/written goals to keep you focused)
  • The lack of knowledge: The lack of Understanding of basic principles that governs money and financial success
  • The lack of Proper guidance and directions… someone to hold you accountable to achieving your financial goals … (financial coaching)
    

Learn how to escape the paycheck-to-paycheck life and build a multi-million-dollar retirement “nest egg†starting with nothing– Even as an employee on a fix salary. The Beginner’s Guide To Personal Finance