Recent comments by President Barack Obama have seemed to cause no little stir as he addressed the nation’s current economic crisis by suggesting Americans and Corporations alike reconsider how they plan and take trips to Las Vegas. His comments, coming earlier in 2009 in an Indiana town hall meeting and once again as he addressed a crowd in Nashua, New Hampshire this January, have added to the many criticisms on President Obama’s strategy for rejuvenating the job market, reducing the national debt and health care reform. However, despite the many criticisms, Obama’s point about families using set aside vacation dollars, and not college tuition money, to have fun in Vegas shed light on the struggles that many Americans face every day to make responsible financial decisions.
Spending and managing money is a skill that goes far beyond just the basics of bean counting and balancing a budget. Have you ever come across a struggling CPA or Financial Advisor? Even better, have you known or heard of a VP of Finance for a major corporation squandering away hundreds of thousands of dollars? Even with all the self-help books, useful tips on how to save, and cash management systems, the secret to good money management still equates to the ability to be able to manage yourself!
Outside of our basic necessities, we spend money based upon our desires and what we value as individuals. If we are honest, sometimes what we value can be aligned with things that don’t always leave us in the best financial shape. It is our American culture that influences us to live outside our means. We tend to go beyond what we really can truly afford based upon our true cash position. Often times we over indulge ourselves like the kid at the all- you- can- eat buffet line whose eyes are much bigger than what their his stomach can handle. As a result, the kid, in his gluttony, is left with a horrible stomach ache. Today our bank accounts are aching, and not just because of a down economy. We must realize that until we obtain the discipline to consistently restrain ourselves and spend our money in a systematic way that accounts for survival expenses, vacations, savings, etc., we will continue to be trapped in our own behavioral patterns which keep us in debt.
In order to remedy this problem we must first determine what we truly value as a person based upon our spending habits. Once this is understood, we can then evaluate if our values (or spending habits) are aligning with our various short- term and long- term financial goals. Next, we must utilize a money management system that allows us to establish a consistent approach to how we spend and save which, in turn, will help reinforce and support our goals. Lastly, we must remain committed to staying true to self-discipline. It does us no good to go through the discovery process of indentifying our values, establishing financial goals and utilizing a cash management system if we don’t maintain the fortitude it takes to achieve success in managing our money.
President Barack Obama’s, words may have been offensive to some, especially to the Las Vegas, Nevada government officials. However, his one statement alone won’t change the behaviors and tendencies of American culture. Las Vegas, as well as any other major entertainment city, will still continue to see an influx of consumers there to spend money as Americans will always find a way for leisure and relaxation. The question is, is the money that is being spent another example of poor financial management decisions?
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