Are you running out of money or is it overflowing??

If the number one fear people have around money is the fear of running out in retirement, according to a study published recently in the New York Times, that brings up some interesting questions: the first being why?

It’s also interesting that another recent study by the Bank of Montreal found that people would rather work longer than downsize their lifestyle.

Seems to be the same fear, eh? And, rightly so: cutting back is not easy. And yet, it’s the predominant teaching on how to get out of debt, or how to save more for retirement. You’ve heard it, I’m sure, “cut back your expenses; be careful, you better not take any risks because you can’t afford to lose your money.” The implication is that loss is painful, undesirable, and yet, cutting back is the supposed solution to the syndrome of not having enough.

If this isn’t making any sense – good! Because it’s mostly double talk and contradictory thinking that is one of the three primary reasons people struggle with money. For some reason, I’m not yet sure of why, the there is this sentiment that has people looking to pay down debt or reduce expenses to save more money or earn higher returns on that money as the answers to all financial problems.

Certainly, if you have more money in that elusive pot of gold savings that is supposed to provide for your every need in retirement, then you will likely never run out.

Only one problem: if you are working to accumulate savings and the flip side of that says you are also working to minimize expenses, debt being a big expense, then you are only looking at wealth from a vertical perspective.

Yet, what does it take to leave work? What does it take to reduce unwanted debt? Does it take allocating your already stretched lifestyle just a little further and cutting back even more – or does it take additional income to provide for the income shortage that resulted in the debt in the first place and is required once you leave work to continue your desired lifestyle.

Of course its income you need. If you have accumulated debt of some sort that you don’t want, then it’s likely because you have a desired lifestyle that is above your current income level. If you are leaving work, then you need an income that will provide for your day to day expenses. You do not need a big pot of gold saved somewhere that you might run out of or lose somehow. What you need is to be looking at how are you going to create the income you need to pay your bills, your debt and live your life? And how will you receive your income when you leave work?

One way, of course, is to accumulate a big pot of gold (savings) for leaving work and to make your current working income go further by reducing your expenses. But there are many many other ways to create income besides work and savings – we have 38 different ways to create income in Step 6 of the MoneyMinding Makeover Program.

If you are worried about running out of money then the solution is to change your focus. Stop looking at your finances as though your current income is a waterfall that is going to run dry in the spring. Start looking at your finances from an income perspective where the money will continue to arrive for all your needs and desires for as long as you need it to continue coming in – perhaps like Old Faithful, the geyser in Yellowstone National Park.

When you see things from a different perspective, you start to ask different questions. When you ask different questions, you will seek the answers by learning different things. When you learn different things, you develop the confidence, skills and the necessary steps to get your desired results.

You do not have to ever be afraid of running out of money. Nor do you have to cut you’re desired needs today as well as provide for your lifestyle needs when you leave work. You will survive because if you have read this entire article, then you are already looking for answers, which means you will find what you need to get what you need. Congratulations!!

Copyright© 2007 Tracy Piercy. Written Permission is required for reproduction. Thank you.