Do You Think Because You Make Over $250,000 That You Are Well Off?

Awareness is key.  Here are a few stories that I have seen in the past year that might help encourage you to get your act together.

Do you convince yourself that you are doing well financially or do you admit that you may have some areas of improvement?  Do you keep your mind open to explore areas of improvement while maintaining focus on your goals?  Do you read, share and discuss to keep the creative juices flowing in areas of finances?

A business man ran a profitable business, making a decent living with his spouse.  Together they raised a small family and were in the $100,000 to $200,000 range.  They even had some real estate investments that were cash flowing and profitable.  Suddenly, the wife unexpectedly discovered that she had cancer.  Unfortunately, after her death, everything came crashing down forcing the business man into bankruptcy.

One doctor made about $200,000 and his wife made about $175,000 per year.  Yet they were close to 1 million in debt.  When they divorced, the whole financial house came crumbling down and the realization that their situation had always been fragile became apparent.

One Vice President had been responsible for running a large company.  In fact, it was the 4th company for which he made his $200,000 income.  Money was flowing in and everything was fine.  Then, one day he got sick.  After simply one year of medical bills and no work, he ended up having close to $400,000 in debt.

A prominent engineer made a great six figure income.  After 20 years in the industry, he was unexpectedly laid off.  Naturally, he transitioned as an entreprenuer.  After just a few years and business running dry, he hit an all time low of becoming 1.2 million in debt.

Are you too proud to seek advice and counsel?  A good friend of mine gave me some great advice.  If you want to be strong, first humble yourself and then you will be strong.  Confess your sin and you will be healed.

This post was reposted from http://finlit.biz/debt/do-you-think-because-you-make-over-250000-that-you-are-well-off/, originally written on January 28th, 2013.