Pathophysiology of Your Poverty

After having assessed your financial status, it is imperative that you also assess your behavior towards money. Your behavior will definitely explain why you are in your current financial status. In the medical field, it is what we call the pathophysiology or the basis of the disease. There is a cause for every effect.

If you are poor, there is a reason for such poverty.

1) You do not believe you will become rich

2) You do not like to become rich

3) You do not know how to become rich

Which one are you?

You do not believe you will become rich.

The greatest hurdle to all your dreams is your own mind. If you do not believe, then it shall be done to you according to your word. For the person who believes, all things can be overcome. For the person who do not, all things are insurmountable. For the person who believes, there is always a WAY. For the person who do not, there is always an EXCUSE. In The Millionaire Mind, majority of the millionaires who became rich did not grow rich because of inheritance nor did they get rich because they were exceptionally intelligent. These millionaires believe that top 5 success factors for their wealth are honesty, discipline, ability to get along with people, supportive spouse and hardwork. They simply had the tenacity of spirit to pursue their dreams.

You do not like to become rich.

Much as you refuse to believe that this could be possible, there are people who really do not like to become rich. For them, wealth is evil. It will lead them to the road of perdition. They believe that Jesus will not allow the rich person to enter the Kingdom of God. With this mental attitude, they refuse to think about money. It is understandable considering how greed can turn people against God and commit sins and heinous crime simply because of money. The love of money is the root of all evil... but the lack of money can also be the root of evil. In the end, it is simply a question of detachment. God sees the hearts of men. If you cannot be trusted with small things, such as money, how can you be trusted with the Kingdom of God. Jesus admired the shrewd manager for using money to aid him his salvation. That ought to be our attitude towards money. That is the idea of tithing 10% of your income to God. Give to God what is due to God. Then do not worry. Look at the birds of the air, they neither sow nor reap but your Father in heaven feeds them. For the one who gives will surely receive, hundredfolds, pressed down and overflowing. The tithe is an obligation to God. What is given above the tithe is the offering. This is the only command that can be "tested" by man. Do not put Him to the test... but when it comes to tithing, you can put Him to the test. He is true to His promise. When you give your tithe, you will be blessed. For God surely appreciates the money that is given from want than from surplus.

You do not know how to become rich.

It is amazing how the Holy Bible is filled with financial nuggets. Some believed that the parable of the talent is about "talents". However, the talent is actually a form of currency in Jesus' time. Jesus was well aware that money buried under the ground will not earn anything. Money deposited in the bank will earn only a meager interest. Money needs to be invested if you want to make it grow. Wealth does not fall on the lap of the foolish person. Even if it does, it soon vanishes. This is repeated over and over again in the Book of Proverbs. Financial literacy is needed in order to gain and keep wealth. King Solomon became very wealthy because he asked for wisdom not wealth. Evil people use all sorts of scheming devices to hoard money at the expense of their soul. That is not real wealth. Soon enough, evil and misfortune strikes them. Wisdom is the key to wealth. Creativity lies within each individual. Having a mentor makes it easier. There are many roads to riches but the answer lies within. God's abundance is being showered everywhere around us. But only those with open arms and open minds will receive His blessings and abundance.

Now, if you already know why you are poor, it will be easier for you to solve your problem. Knowing the cause is the first step towards financial healing.

Wake Up Call

How do you know if you are financially healthy or financially sick?

As doctors, we learn that a person is sick because they come to us with complaints which we call symptoms. It is something that bothers them and causes them problems. But there are also those who have no symptoms at all. However, when they come for a routine medical check-up, they are confronted with a disease that has been evolving silently... thus we call it an incidental fnding.

Same goes with your finances. You will have symptoms that will point to a diseased pocket. And what are these symptoms?

1) Always falling short of funds even before the month ends

2) Having no savings or emergency fund set aside for rainy days

3) Constant fights about money matters

4) Outstanding debts that are not being paid

However, there are also instances when you think you are actually living the affluent life and is financially healthy. How will you know if there is no silent financial disease eating at the bottom of your pocket? The routine financial check up that can diagnose this problem is the SAL and the PIES.

The SALS is the statement of assets and liabilities. You can easily compute for this by listing in one column all your assets to include personal property and their current cash values, savings and investments and retirement savings to include maturity value of pension funds. In another column, list all your liabilities to include personal debts like credit card bill, bank loans and mortgages as well as investment debts like premiums payable for pension fund or educational fund. By subtracting your liabilities from your assets, you will know your NET WORTH. A positive networth will signify financial health while a negative networth signifies a disease eating inside your bones without you being aware of it. Such a silent financial disease if not diagnosed this way will emerge as an "incidental finding" when a crisis suddenly hits the family like death of the principal breadwinner or sickness and disability in the family.

The PIES on the other hand stands for Personal Income and Expense Statement. This way you can determine your cash flow every month. Keeping track of all your monthly income, whether fixed or variable and listing down all your expenses every month and subtracting your expense from your income will show if you are living beyond your means, within your means or below your means.

Another way of determining if you are living a financially healthy life is by looking at your financial behavior. If you regularly set aside at least 10% of your income every month to an emergency fund or savings and investment fund, then you are financially fit. This is akin to exercising regularly to keep yourself fit. However, if you are the type who really do not care where your money goes and live as though there is no end to the money supply, then you are living a dangerously precarious financial life.

This honest self-appraisal and self-assessment is a must if you really want to know if you are financially fit or sick.

The earlier you go about this exercise, the better because preventive measure is always better than curative. As in any form of disease, it is best to treat the problem when it is still not in its advanced stage. Do not procrastinate!