Using the garden analogy, as we pick our e-trade stock broker account (with Scottrade, TDAmeritrade, whatever you choose) and prepare our checking account to funnel money into our new trade account, we are like the gardner preparing the ground for a new place to plant seeds for growth.
They say money doesn't grow on trees but we're going to prove them wrong about that!
But as we prepare our new garden where we will grow stocks (and money) an obvious question must be asked: What about your other gardens?
What good is it to have a brand new garden growing brand new sprouts when our other gardens around the yard are overgrown with weeds and in disarray?
In other words, what good is it to gain money in one area, only to see it lost in another?
It doesn't mean we can't start our new garden in the meantime. One can move from one garden to the other, that is take care of one area of personal finances while addressing another, right?
Specifically, we're talking about debt. Credit card debt, student loan debt, etc etc.
Is our other gardens of financial interests overgrown with weeds, neglected or even out of control? As we move through the arena of buying stocks, it makes sense to keep a close look at money in our other financial gardens.
Credit cards are a necessary evil in todays world, but having cards that have 20 to 30% interest on them (or even more!) are not. Student loans, which can never be erased with even a bankruptcy, have to be addressed and dealt with first and foremost.
Our bills and financial obligations must be manageable before we start putting significant monies into stocks, else we will be soon be overrun with the weeds of one garden over another.
Again, it is not to say that one can be done and not the other entirely. Even if you have serious credit card debt, your home is underwater, you have bills to pay, etc etc., you can still open an e-trade account and begin to buy stock. Its just that you need to look at why you're buying stock in the first place.
To save and make money, right?
Seems obvious then that plans must be made to get your other financial gardens in order while you progress and move on. We want the right hand to be working with the left hand.
If you have $3000 on a credit card with sky high limit, pay it down some and move it over to another card with a lower interest rate. Work out a plan to pay off your student loans as soon as possible. Refinance your home if its at 7% and increase your monthly payments, if you can.
The bottom line is this: You used to find joy in spending money and buying things. Now you have to find that joy in saving and making money.
Losing money wastefully is for losers. Using money wisely and using it to make more money is for winners.
It's time to get your house, your garden in order. It's time to win.
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