When it Comes to Your Money, Who is the Servant, and Who is the Master?

As Francis Bacon said, "If money be not thy servant, it will be thy master." P.T. Barnum added many years later, "Money is a terrible master, but an excellent servant." We could not agree more. It appears to us that not much has changed in human nature since Bacon and Barnum’s days. So we ask you, which do you want to be, the master of your money or its slave?

You may have "toxic debt." Toxic debt is debt that is used to pay for something that produces no income and meets no real need. It also can be debt that produces income, but the income is less than is required to pay off the debt. Toxic debt will mortgage your future and prevent you from reaching your lifelong dreams, such as home ownership or a secure retirement. Toxic debt creates anxiety, stress, and conflict in your relationships.

When you save enough and get out of debt, you will eliminate the need to rotate credit cards, post-date checks, or write uncovered checks. You will not be asking others to help "bail you out." You will be more honest and gain more respect from others. Your broken relationships will start to heal. Instead of worrying about money, you will give your job and your loved ones the attention they need.

When you rid yourself of toxic debt, your mind and body will improve. You may have fewer stress-related illnesses and deeper sleep. The discipline you exercise in controlling your money will create new "mental muscles" that will help you discipline yourself to establish a healthier lifestyle, both financially and physically.

To eliminate toxic debt may sound difficult. However, it can be eliminated if you use self-control. This little phrase can encourage you: "If you save your money, it will save you.

What are your priorities?

People can be influenced strongly by what they read in magazines and what they see on television. This can turn their priorities upside down.

Do you own your possessions? On the other hand, do your possessions own you? Do you fill your life with things that have real value for you and truly enrich your life? On the other hand, are your possessions stealing the time and affection that you should give your loved ones?

Your relationships with your friends and loved ones should be your top priorities. They enrich your life more than all the money in the world ever could. However, your money situation affects your relationships. When you create enough funds to provide for yourself and your loved ones—for a home, college, retirement—you are keeping your relationships your top priority.

To be truly successful, get your priorities and your money in alignment.

What is the meaning of success?

It is unavoidable. You need to learn to save and spend wisely to be successful in life. Success is a matter of choices. We live in a great country. Here, we all can decide what we want to achieve and then make it happen. If you have money, you will get where you want to go, faster. Small sums, saved and invested, become large funds through the miracle of compound interest.

Even if you pledge to give everything you have to others, as Mother Theresa did, money still helps. Freedom is a wonderful thing to have, and it is a wonderful thing to give. The more financial resources you have, the more you will be able to help others and share your freedom with them.

Samuel K. Freshman and Heidi Clingen are authors of The Smartest Way™ to Save, Why You Can’t Hang on to Money and What to Do About It. They offer only their opinion, which does not constitute professional, financial, or legal advice. To receive a copy of The Principles of Financial Independence or submit questions, email them at Heidi@TheSmartestWay.com