OftM Principle #2

One guy is you, one is your money. You pick which is which.

Returning to my "One for the Money" discussion, it's time to look at the second principle that Elder Ashton gives: "Learn to Manage Money Before it Manages You."

One of the greatest travesties perpetrated by our modern educational system is that lack of formalized instruction on money management. The reality of life is that you need to take responsibility for your own education in this subject. I see stories all the time of people with decent salaries who live beyond their means and end up ruining their lives. I also see stories of people making their budgets work no matter how much they are making.

I've mentioned the Micawber principle before, but it bears repeating. You're happiness will be heavily influenced by how well you manage your money.

There's a fantastic line in the second paragraph that I think people overlook. "New attitudes and relationships toward money should be developed constantly by all couples." Preach brother. I can't stress this enough. My wife and I deal with money differently than we did last year or even six months ago. Your relationship with money must change constantly based on your income, your goals, and the broader economy. Most people respond far too quickly to an increase in income with an even greater increase in lifestyle. Conversely, most people are far too slow at reducing their lifestyle when faced with a reduction in income. Don't be that person. You and I can do better. We can be better at this than the average person.

Once again the pamphlet is spot on with its advice. Money should be a tool, not a taskmaster.