Financial Planning Week #3: Changing Your Mind

This being Financial Planning Week in Pennsylvania I am trying to have a daily financial post. (Lawyer note: I am not trained in financial planning and this information is presented for entertainment purposes only.)

A few years ago I read a book that really helped me chance my views on money. I used to see a big house and think "Wow! Those guys must have a lot of money." Now I think "Wow! Those guys must have a lot of debt." Trot over to your local library or bookstore and check out "The Millionaire Next Door." For a follow-up try "The Millionaire Woman Next Door." (For contrast, most of the men were married with a stay-at-home spouse. Most of the women were divorced. Women were more philanthropic than men.)

Most of the people with money, as outlined by these books, do not live in mansions or even McMansions. They live in more modest homes, have one major credit card and one department store card. They clip coupons and don't drive flashy cars.

Once you begin to think in these terms the trappings of wealth become all the more obviously the trappings of debt. It is very liberating.