I wandered into an online forum today and saw a comment from one of the forum members that inspired this post.
A Little Backdrop
The forum is for freelance writers who write for one particular client. The client provided the forum for the freelance writers so they could network, get to know other writers, let off steam, talk about their private lives and more. Basically it’s the equivalent to the office water cooler.
Apparently the client made major changes that financially affected all of the freelance writers in a less than positive way. In the current economic condition where businesses are looking for ways to cut corners and save money, it looks like the client made a few downsizing changes.
Handwriting on the Wall
I’m not sure but it seems that there were a few whispers and writings on the wall that changes were just around the corner. The pending changes were positive for the client, but not so positive for the freelance writers. What would you do if you were one of the writers?
Here are a few options:
- Look for alternative income sources
- Tighten in the belt in preparation for a potential drop in income
- Continue your current spending habits because you don’t “believe” things will change
- Go out, buy a house, run up credit cards and live like you just hit the lottery
Most prudent folks would do a combination of options 1 and 2. Unfortunately, in reading the forum, one person chose option number 4. Yes, this person bought a house (even though he/she couldn’t afford it), ran up credit cards and lived without regard for tomorrow. Now, this person is lamenting because there isn’t enough money to keep things going.
This person is defaulting on credit cards, is receiving collection calls and is depressed because it’s just too much. To quote “I feel broken.”
Living Below Your Means
If this person didn’t act rich (meaning living beyond his/her means), this scenario wouldn’t have happened. Additionally, when the handwriting is on the wall, don’t get paint to whitewash the wall, make changes in your situation to prepare for the upcoming changes.
Acting rich costs more than the price of an expensive bauble. It costs you your mental health and peace of mind.
That’s my 2 cents and I’m sticking with it.