What Are We Proud Of?

I heard someone on the radio today talking about Americans and what makes them proud.  That is a funny little word that has a tendency to have deep emotional and moral connections.  Another way to look at pride is one of its opposites, shame.  Both pride and shame have important applications to personal finance that I'd like to consider.

First, what about your money situation are you ashamed of?  Debt is something that makes many people ashamed.  But, not all debt!  The debt that you are ashamed of comes from those purchases that you know deep down you never should have made, or the times you splurged when there really wasn't any money to splurge.  I know that right now I am ashamed that I have about $10,000 in credit card debt.  How do I know I'm ashamed?  Because I've told "white lies" or understated the amount debt I have when talking about the issue.  I know that if I'm willing to lie about something it really means that I'm ashamed of it.

I am also ashamed that I do so little to help strangers or those in need.  Since leaving High School I have rarely volunteered my time for others.  I do not donate to political campaigns even though I care deeply about certain issues.  I do not give to the homeless or the hungry.  I see the importance of giving but have not made it a part of my budget.

I am sometimes ashamed that I do not save more or pay down my debt faster.  From my gross income I save 12.9% plus an additional 5% in 401(k) matching.  I know that there are many people out there that save more than twice as much as I do on a similar income, but I enjoy my lifestyle and don't want to sacrifice anymore.

I recognize that the thing that make me ashamed are weaknesses where I can improve.  Rather than beat myself up I made a plan to address these issues.  I am making steady progress toward getting completely out of non-mortgage debt and will be done by July 1, 2010.  I plan to give a significant portion of my estate, should I be lucky enough to have one, to charity when I die.  I also have plan to gradually increase my savings to 20% of my gross over the next few years.  I am not perfect, but I've realized areas I need improvement and set to work on it.

Now, what about your money situations are you proud of?  I am also very proud of many of my accomplishments.  I am proud that I pay my own bills and am off my parents dole.  I am proud of my education.  I am proud of my job.  I am proud that I own my own home.  I am proud that I have made great progress saving $17,000 in my retirement accounts by my 25th birthday.  I am proud of my wonderful wife and the life we have together.  All of the things I am proud of are the things that I've done right and enriched my life and put me on track to achieve my dreams. 

The things we are proud of can help you set goals for the future.  You want to continue to excel in the areas where you have already had success.  I would like to eventually start a family with my wife, that would make me proud.  I would like to finish a PhD, MBA, or CFP to further my education.  I would like to grow my investments to reach wealth and true financial independence.  I have set goals that relate to many of my proudest money achievements, and new goals will be created as I learn more about what makes me proud.

All of us should stop and take a moment to realize what in our lives makes us proud and gives us shame.  We should embrace what we learn from this exercise and use this knowledge to set goals and improve our personal finances.