Lots of folks confuse bad management with destiny.
— Kin Hubbard
Joan and Robin were sisters who lived similar lives. When their parents passed away, each sister inherited $200,000. However, ten years later, Joan asked Robin for financial help. So, what went wrong?
Joan spent most of her inheritance quickly. First, she gave $50,000 to her children to pay off college loans. Then, she bought a new car for $30,000. After that, she used $75,000 as a down payment on a vacation condo. This choice added new expenses like another mortgage, maintenance costs, and homeowners association fees. Over time, she spent the remaining $45,000 on travel, shopping, and home repairs.
Robin made different choices. She bought a second home for retirement and vacations. Most of the time, she rented it out. As a result, the rental income covered the mortgage and expenses. Ten years later, she owned the home outright and earned extra income from rentals. She also set aside $10,000 to enjoy herself and gifted $10,000 to each child. She saved and invested the rest.
Joan believed Robin was lucky. She felt that life never worked in her favor. However, she ignored one important truth. Both sisters made choices that shaped their financial results.
You control your financial future through your decisions. When you take responsibility for your choices, you can make them work for you over time.
