Win with Money: You owe it to Yourself, Your Family and the World

Life is hard…

In the wild ride of modern life, financial health emerges as the invisible thread that weaves dreams into reality. Consider this stark reality: a staggering 62% of Americans live paycheck to paycheck, according to a recent survey by LendingClub. This isn't just a statistical figure; it's an eye popping snapshot of the collective struggle many face in navigating the complex landscape of personal finances. Furthermore, 74% of Americans say they are stressed about finances according to CNBC Surveys. The “new normal” in America has now become living paycheck to paycheck and being constantly stressed out about your personal finances.?

In a 2016 speech at the University of Houston, Matthew McConaughey said, “Life is not easy. It is not. Don’t try to make it that way. Life’s not fair. It never was, it isn’t now, and it won’t ever be.” While this is one of my favorite quotes of all time, and I think it would serve most of us well to repeat it daily, I think it is also very important to take an honest look at ourselves and our actions, and ask, “am I making this already challenging life more difficult on myself because I am not taking control of, and improving, my financial wellbeing?”

Once you ask yourself that question, imagine the weight being lifted off your shoulders when financial health becomes a reality, transforming the paycheck-to-paycheck narrative into a story of resilience, opportunity, and empowerment. Beyond the numbers lies a profound truth: your financial well-being is not just about dollars and cents; it's about reclaiming control, shaping the life you want, and making a positive impact on your family and the world.

As we embark on this journey, let these statistics serve as a rallying call to explore the critical nature of financial health, not just for ourselves but for the well-being of our families and the broader community. It's time to break free from the cycle, understand the power of financial wellness, regain your freedoms and independence, and acknowledge why you owe it to yourself, your family and the world to become financially healthy.

Personal Benefits of Financial Health

With social media and Hollywood these days, it’s easy to fall into the trap of thinking everyone wants and should have Lambos and mansions. The reality, if we take the time to be honest with ourselves, is that most of us don’t really want these kinds of material things. In fact, what we want is much more basic and much more worth pursuing. While the personal benefits of being financially healthy are abundant, here are a few critical reasons to pursue a state of strong financial well-being.

Peace of Mind:

Human psychology is very complex, and even the most respected psychologists will tell you that we have a ton more to learn about the human psyche. One thing is for sure though, it is hard to put a price on peace of mind. For example, most of us would pay almost any price to have the peace of mind that our children would be safe tonight and so on. In reality, the majority of the insurance industry is predicated on “peace of mind.” A peace of mind that in case xyz happens you or your family won’t be completely ruined.?

That said, financial stability acts as a powerful antidote to the stress and anxiety often associated with money challenges. When you have a solid financial foundation, you can experience a profound sense of peace of mind. Knowing that you have an emergency fund, are saving for future goals, and are managing your expenses effectively allows you to navigate life's uncertainties with greater resilience and less fear and anxiety. Financial stability becomes a source of mental well-being, fostering a positive mindset and reducing the mental toll that financial stress can take.

Freedom and Optionality

Personally, very few things matter to me more in life than personal freedoms and optionality. Financial health liberates you from the constraints that financial struggles impose. With a strong financial position, you gain the freedom to make choices aligned with your values and aspirations. This might involve pursuing a career change, starting your own business, or taking time off to travel. You become less and less dependent on the people around you, your employer, your customers or even the government. Good financial health opens up a realm of possibilities, empowering you to live life on your terms and make decisions based on your goals rather than financial constraints or the will of others.?

Improved Relationships

The impact of financial stability extends well beyond personal well-being to positively influence your relationships. A lack of financial stress allows you to engage more fully in your personal relationships with friends, co-workers and family. Being more financially secure will improve your confidence, open up additional social opportunities and remove added stress you have from money challenges. This all promotes healthier relationships with those around you, and especially with those closest to you such as a spouse. It fosters open communication about financial goals and encourages teamwork in managing household finances.?

As we have all heard by now, quality relationships as we age are a key indicator of extended lifespan. Let’s not sleep on the importance of this pillar in our lives, and let’s not let poor financial health hinder us from having quality relationships.?

Family Well-Being

“But if someone doesn’t provide for their own family, and especially for a member of their household, they have denied the faith. They are worse than those who have no faith.” 1 Timothy 5:8

Whether you would call yourself a religious person or not, I would argue that as human beings we mostly agree that we have a responsibility and obligation to provide for our family. This is especially true for parents. The word provide can be debated, and I’m sure each person has their own nuanced opinion on just how much should be “provided.” However, I think we can all agree on the importance of a few key foundational elements of providing for your family such as: security, stability and education.

Security and Stability

A financially stable household provides the resources to create a secure and stable environment for the entire family. At a basic level it means providing shelter, food and clothing. In addition, it means having a safety net for emergencies, ensuring that basic needs are consistently met, and planning for the future. This stability fosters a sense of security among family members, allowing them to move up the hierarchy of needs to things such as love/ belonging, improved self-esteem and self-actualization. Children raised in financially stable homes often experience less stress and uncertainty, providing a solid foundation for their overall well-being.?

As you can see, it is quite hard for children and other family members to thrive and maximize their life without a basic foundation of security and stability, and in today’s society, being financially healthy helps provide that security and stability.?

Education and Opportunities

Financial health plays a pivotal role in shaping the educational opportunities available to your children. From affording quality education to providing resources for extracurricular activities, a financially stable household can offer a more enriching environment for educational growth. Investing in education sets the stage for your children's future success, opening doors to a broader range of opportunities and empowering them to pursue their passions.

I am not saying that private schools and personal tutors are the only hope for our children. What I am saying though, is that having the financial means necessary to enhance your children’s educational experience is a worthwhile pursuit. Some examples would include the purchasing of as much educational material and books as you want, trips to zoos/ preservations, music lessons and all sorts of other extracurricular activities that foster learning and spark curiosity.

Increased financial means also can lead to what I would call access. Whether we like it or not, sometimes the opportunity only comes after we get access, and sometimes that access is a kind of pay to play kind of deal. Examples here would include things such as travel sports, fraternities, private schools and other networks that can arguably lead to an increase in opportunities. Almost all of them require some sort of additional financial means to be a part of.?

Generational Impact

You can be the one that breaks the cycle! In fact, you owe it to your family to be that someone. The financial habits and values you instill today have the potential to shape the financial well-being of future generations. By modeling responsible financial behavior and passing on financial literacy, you contribute to a positive generational impact. This legacy goes beyond monetary wealth; it includes the knowledge and mindset necessary for your descendants to make informed financial decisions, breaking the cycle of financial instability and setting the stage for a more prosperous future.?

If you look back far enough in any successful family’s tree, you’ll find “The ONE.” The one that broke the cycle, the one that ended the curse and the one that paid it forward to the future generations of their family. I’m not even talking about amassing huge sums of wealth and passing it along. I’m more specifically talking about passing down the knowledge of how to amass wealth, make a solid living, manage your finances well, leverage your finances into freedom and a greater impact on what matters most to you and so on.?

I’m talking about being the one that ends the cycle of paycheck to paycheck and financial suffering for your family once and for all. I’m talking about being the one that arms your children and your children’s children with the knowledge and tools necessary to live financially secure and abundant lives. If you aren’t already, BE THAT ONE!

Societal Impact

Humans are social animals, and the modern human experience involves being a part of large societies. On a micro level, what we do and how we behave has a material impact on the health and future of our society. Here is why we owe it to our fellow humans, our communities and the world to become financially healthy.

Economic Participation

Financially healthy individuals and families are key contributors to a thriving society, both at the local and national economic levels. Through responsible spending, investing, and entrepreneurship, they drive economic growth and prosperity. Their financial decisions create a ripple effect, influencing industries, job markets, and overall economic stability. Active economic participation is not just a personal benefit but a collective contribution to the well-being of the larger society and world as a whole.

Community members that are financially healthy are typically the tip of the spear to drive innovation, start new businesses and improve the lives of others in the community.

Reduced Social Burden

41.9 million Americans/ 22.2 million households receive food stamps (Pew Research Center 2023). I don’t know about you, but those numbers are like a gut punch when you read them out loud and mentally digest that 41.9 million Americans wouldn’t eat this week without government assistance. It’s also no secret our other social programs are heavily burdened with more money being paid out then can possibly be taken in from those participating in the economy. This is becoming a very serious topic of concern for the next generation of Americans as the math just simply does not work.?

Along with economic participation, avoiding financial pitfalls and maintaining financial health reduces the burden on social services such as food stamps. When individuals can manage their finances effectively, there is less strain on public resources designed to support those facing financial hardships. This, in turn, allows social services to focus on critical needs and ensures a more sustainable and equitable distribution of resources within society. In other words, by not being a burden on the system during your working years or in retirement, you are helping relieve some of the pressure on the system so that those more in need can be helped better. The topic of whether the government allocates resources efficiently, or the level of social programs we should have, is for an entirely different discussion. The point is, by thriving financially you ultimately put less stress on the social welfare system and hypothetically that should lead to better help for those that need it the most.?

Philanthropy and Creativity

Financial health empowers individuals to contribute positively to societal causes that they are most interested in. Whether through charitable donations, volunteering, or actively supporting community initiatives, financially healthy individuals play a crucial role in addressing community and social challenges. By having the means to give back, they become agents of meaningful change, actively participating in building a better society. Financial stability becomes a tool for community improvement, allowing individuals to make a meaningful impact beyond their personal spheres.

If you have ever had the honor of volunteering to coach little kids sports, donating money to a family in need or using your skills for free to improve the quality of someone's life who otherwise couldn’t afford your services, then you know first hand the benefits and enjoyment of philanthropy to you personally. And while the entity, family or person receiving your time, money or knowledge is certainly going to be thankful, I’d argue that you will be getting the most out of the philanthropic endeavor. Helping others does something amazing for your soul.

In addition, I’d argue that some of the most meaningful things that occur in individual lives and in society in general, come from philanthropic endeavors. Whether that comes from a church helping out a family, a donation to a medical research center that cures a disease or building schools in Africa, many of the most profound and impactful things in human history have been done through philanthropic efforts. You owe it to the world to become financially healthy so that you can contribute in a meaningful way to the areas of the world that mean the most to you!

By now I hope I have made a solid case for the importance of treating your financial well-being as an obligation. Not just for your own material gains and status, but also for your family and society as a whole. Regardless of where you are on your financial odyssey, improving your financial health will most certainly help you gain a peace of mind, improve some relationships (even the one with yourself) and provide additional freedom and independence. From there the world opens up a bit and you have more optionality and can truly impact the world and your family tree more easily. Good luck on your journey, and let me know how I can help.

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Additional personal finance articles you may find interesting:

https://www.markwygant.com/post/financial-wealth-ladder-the-6-levels-of-personal-financial-wealth

https://www.markwygant.com/post/22-money-myths-that-are-keeping-us-poor-confused-and-afraid-of-money

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