Confessions of A Millionaire Part 2 ~ There’s A Hole In The Bucket

“So how is money like a bucket?” I asked Marlin. (If you miss the first installment of Confessions of a Millionaire click here to catch up.)

He explained it this way. If you have holes in your bucket, you’re losing money. First you have to stop putting new holes in it. If you were in a hole and in trouble, the first thing you do is stop digging. Right? So to stop putting new holes in the bucket, by stopping spending. Your bucket will still leak, just not as fast. 

The next thing you do is fix your bucket. (This made me think back to Sesame Street and that old ‘There’s a hole in the bucket song…”)

The holes in the bucket represent debt; credit card debt, automobile debt, school loans, whatever, if you own someone money it’s debt. 

“Well that sounds easy enough. Just patch the holes,” I said.

He giggled, cause he knew therein lies the problem. Self control or putting off instant gratification is a booger bear. It has nothing to do with money and everything to do with behavior.

You know what Dave Ramsey says, “Personal finance is 20% head knowledge and 80% behavior.

If you have holes in your bucket like we used to, bubble gum probably won’t fix the problem. That would be like debt consolidation, it doesn’t work.

The real way to fix a holey bucket is to get some high powered patches to make it like new. If you really want to change, you have to get a new mindset, and so does your spouse for that matter. This is the hardest of all the steps getting out of debt and building wealth. It’s mental and far reaching.

After you get your bucket in working order, that is when the fun begins.  All you need now is a faucet. The bigger the better. Leaky, dripping faucets are great when it comes to building wealth.

Stay tuned for the next installment of Confessions of a Millionaire Part Three ~ Drip. Drip. Drip.

Simply,

Sis

PS ~ The take away lessons this week are… 1)stop spending 2)change your mind–change your behavior 3)pay of debts smallest to largest.

Tags: beating debt, confessions of a millionaire, debt, getting out of debt, Simple Money, there's a hole in the bucket