Is your Gucci wallet running on empty?

Most of us have spent beyond our means. Trust me I know! During my college years, I owned all the latest designer fashions.  Well, shall I say borrowed because I didn’t really own anything, but Discover card did!

Even when I purchased a designer item on sale, the fact of the matter is, I often paid 3 or 4 times more than the cost after accounting for the interest.  And the sad reality is, although my designer bags were trendy, they were lonely, because I didn’t have any cash to place into them!

Admit it, you have a problem

If you are at a place where you may have the latest gadget, designer bag, or smartphone, but don’t have a matching savings account, it is time to make a change!

Before my B.C. (before cash) days, I had to admit I had a spending problem. While my outward appearance was simply beautiful, because I was dressed to the nines, in the latest fashion at all times, and eating at fine restaurants, it finally dawned on me I couldn’t really afford any of it. So shortly after college, I had my “come to Jesus” meeting and finally decided to get my finances in order.

Every dollar is not for spending

Little by little, I got myself out of financial despair and began to live a better financial life and so can you. I began to realize for every dollar God blessed me with, He expects me to be a good steward over it.  So, instead of spending haphazardly, I began to save, invest, and think twice before making costly purchases.  It also finally dawned on me; I didn’t need to spend every single dollar that came my way.

This is also significant in building wealth. Wealth is simply your assets (houses, autos, investments, cash, etc.) less your liabilities (credit cards, mortgages, student loans, or other loans). Therefore, if you have more assets than liabilities, you will have a positive net worth. If you have more liabilities than assets, you will have a negative net worth. Before making any financial moves, question whether it is building your wealth or taking away from it.

Be prepared

While you may not know if you will win the lottery or marry your favorite actor or actress, you can expect a rainy day will come. This is why building wealth is so important. Wealth can help you get through difficult times such as a job loss, illness or unexpected expenses. You can also be a blessing to someone else in need.  This can only be achieved by being a better steward over your money.

So my question for you today is, if trouble comes your way, will you have money in your Gucci wallet or is it simply riding on empty?

Remember: your choice, your future!

Kemberley Washington is a certified public accountant and professor at Dillard University. She writes a personal financial blog at Kemberley.com. Connect with her Facebook or follow her on Twitter!