(adapted from Increase your Financial IQ: Robert Kiyosaki)
"having a money problem is like having a toothache,.. if you do not handle the toothache, the toothache makes you feel bad,.. if you feel bad, you may not do well at work because you are irritable,.. not fixing the toothache can lead to further medical complications because it is easy for germs to breed and spread from your mouth,.. one day, you lose your job because you have been missing work due to your chronic illness,.. without a job, you cannot pay your rent,.. if you fail to solve the rent money, you are on the street, homeless, in poor health, eating out of garbage cans, and you still have the toothache,.."
(photo taken from http://www.amazon.com/Rich-Dads-Increase-Your-Financial/dp/160024260X)
many people do not solve their financial problems when they are small and at the toothache stage,.. instead of solving the problem, they make it worse by ignoring it or not solving the root of the problem,.. for example, when short of money, many people use their credit cards to cover the shortfall,.. soon, they have credit card bills piling up and creditors hounding them for payment,.. to solve the problem, they take out a home equity loan to pay off their credit cards,.. the problem is they keep using the credit cards,.. now, they have a home equity mortgage to pay off and more credit cards,..
to solve this credit problem, they get new credit cards to pay off the old credit cards,.. feeling depressed because of mounting money problems, they use the new cards to take a vacation,.. soon, they cannot pay their mortgage or their credit cards, and decide to declare bankruptcy,.. the trouble with declaring bankruptcy is that the root of the problem is still there, just like the toothache,..
the root of the problem is a lack of financial intelligence, and the problem caused by a lack of financial intelligence is an inability to solve simple financial problems,.. rather than address the root of the problem - spending habits, in this case - many ignore the problem,.. if you don't pull a weed up by the root, and only cut off the top, it will come back quicker and bigger,.. the same is true for your financial problems,..
(Robert T. Kiyosaki)
Increase your Financial IQ