Page 14 of “HowMoneyWorks, Stop Being a Sucker” reveals one of the biggest traps of financial illiteracy—the Sucker Cycle.
It’s a money whirlpool that sucks people into an endless loop of trying to spend their way to happiness and wealth.
Here’s how it works. You get a paycheck from someone wealthier than you. You spend it on lattes, lottery tickets, and a lot of other stuff you can’t afford—essentially handing the money back to someone wealthier than you. There’s little to nothing left to save—which is why it feels like everyone’s wealthier than you are. Every 30 days, the whirlpool races to the waterfall with the awful feeling that there’s “more month left at the end of the money.”
This financial phenomenon not only feeds the Sucker Cycle but also illustrates the very definition of financial disaster: “When your outgo exceeds your income, your upkeep becomes your downfall.“
But here’s the good news. Any of us can break the Sucker Cycle. It’s not a matter of money. It’s a matter of priority. The wealthy people of the world live by the following basic mantra: “Pay yourself first!”
From now on, every time you’re handed a paycheck—before you pay bills, buy coffee, or order pizza—make sure you take a portion of your money and put it to work—for your future!
Connect with a financial professional and put goals in place that are specific and intentional—no matter the monthly savings amount.
Saving first and saving consistently is the formula for financial success—and future fulfillment. So if you find yourself stuck in the Sucker Cycle, make a decision to stop being a sucker and BREAK FREE. Form new habits. Think like the wealthy. Pay yourself first. Leverage the power of compound interest.
The results can be astounding—AND—can create the momentum to do even more.
– J.D. Phillips