No 1 reason why we mess up our finances

"Financial education needs to become a part of our national curriculum and scoring systems so that it’s not just the rich kids that learn about money.. it’s all of us." - David Bach

"Money is plentiful for those who understand the simple laws which govern its acquisition." - George Clason

The number one reason majority of us end up with financial mess is simply this - No one taught us how to. Even though money plays a very important role in our daily life, our schooling system is not emphasizing enough on financial education. Therefore, people usually graduated from school or college with little or no formal education on managing their finance. When they ended up with credit card debts, mortgage loan or car loan, they are wondering why they are not making enough money even with all the education that they have received. No wonder some star athletes or big celebrities who make big money usually ended up with a huge debt. The money is a tool for happiness but only if it is handled with care. Use the tool improperly, it would end up hurting yourself.

The Money Trap

The major reason why so many people are struggling financially is because when every time they get an increase in their salary or making more money, they also increase their spending habits. These includes getting into a larger debt, buying more items that are not a necessity in the first place. As I can quote from a book entitled Cashflow Quadrant by Robert T. Kiyosaki
"It's not how much you make, but it's how much you keep, how hard it work for you, and how many generations you keep it for."

Either you control money, or it will control you

Actually, it does not matter how much you own, but it is really on how much do you spend. One critical step in your journey to financial freedom is to know your current status of money spending. How much do you pay yourself and how much do you pay others? How much do you save and how much do you spend it on debts? You can only know these information if you track your spending daily and summarise it all monthly. By doing this, you will have greater control on your money and be more alert on where did your money go. Get control of your money first before you can even think of becoming financially free.