How To Fix Money Problems

It seems that many people are struggling financially at this time. Even those who are not presently struggling are concerned about what may happen. However, the reality of life is that during good and bad times people have money problems. What is even more amazing then this is that it seems that those who are prone to financial problems experience them over and over and over again.

What is it that causes financial problems? Most would answer, "The lack of money." But that is actually not the case. In fact, if we really got serious about the subject everyone has money problems. Let me list some very common money problems:

• Not having enough money
• Over indebtedness
• Increased tax liabilities with increased income
• Not having money for emergencies
• No retirement savings
• Excess money and the inability to keep it safe
• Proper Estate and Inheritance planning
• Not knowing if people like you or your money

If you notice some of the problems above are because you don't have enough money while the other problems are because of too much money. Money problems seem to be abundant, however in this Hub I want to focus on the problems of not having enough money.

Where the "broke" or "financially struggling" make the biggest mistake is that they think money solves money problems. If the solution to money problems was money then every big lottery winner would have all their problems solved. Yet that is not the case over 80% of large lottery winners file bankruptcy within three years. There is more to money then money.

Money is a game. If you know how to play the game money flows to you. If you don't know how to play the game then money flows away from you. I remember when I was young we used to play the board game Monopoly. I often won this game. Some thought I was just lucky -- like the roll of my dice was better than the roll of their dice. The truth is, I had a strategy because I understood how the game worked.

While most would focus on getting Boardwalk and Park Place or other high priced properties I hurried to get the low end properties. These properties were significantly lower and I could quickly load them with hotels. While I didn't get the big bucks right away, I did nickle and dime my opponents and they were unable to build wealth and eventually I would bankrupt them.

The same is true in the real game of money. The average person wants to make it big while the "system" is nickel and dimes them. Until you learn the rules and work the rules in your favor you are going to always have financial struggles.

Whether you want to play the game of money or not you are going to play. Money is an intricate part of our lives. Whether you like the game, don't like it, think it's stupid, or whatever you are going to play this game. So why not take the time to read the instruction book?

My wife teaches first grade and has done so for many years. We engaged in a discussion (really an argument) many years ago. I had written an article on the failure of our schools. She was livid! But after we discussed it she saw what I was saying. Our schools teach nothing about money. I remember in High School that I had to dissect a frog. I am now 47 and to this day that project has not added anything to my life except a bad experience. Yet, everyday I have to deal with money. The schools didn't teach me about interest, inflation, devaluation, appreciation, depreciation or anything else. I graduated financially literate and thought that the way to get ahead was to find a good job and make someone else a lot of money. Think about it for a moment. If you have a job that is paying you $40,000.00 then someone is making enough money off of your labor that it is profitable for them to pay your $40,000.00! that means you are worth far more than $40,000.00 because you are creating far more than $40,000.00. But you are satisfied with a 3-5% increase every year. Why not learn what the person knows who started the company you are working for? With a little education you can totally change your financial life.

Unless you have taken the time to read books or go to seminars there is a fantastic chance that you are financially illiterate also. Unfortunately, most people are. I recently spoke to an individual who bought a used car and financed it for seven years. They were excited because they liked the car. How stupid can we get?

I spent over ten years in consumer finance. It was amazing to me how many times I had to explain the difference between "net" and "gross" to a person. Without understanding how money works you will be frustrated most of your life financially.

So how do we fix money problems?

The answer is simple, Increase your IQ financially. Take time to learn the game. There are many good books out there. Dave Ramsey has many items that is spoken in very simple English of how to turn your financial life around right now. Ramsey's books will get you going in the right direction really fast. If a person will take just 30 minutes a day reading a book or listening to a CD they will be amazed at how much they can learn that will change their financial life. In fact, there are many good Hubs here at Hubpages. Invest in yourself you will find that it will be the best investment of your life.

The books below are all books that I have read and personally recommend.  There are many others out there that may be just as good if not better.  The point is that you need to invest in yourself.