Why Modest Money? Why Live Modestly?

If there’s anything positive that can be taken from the recent mortgage crisis, it is the light it shed on how so many people were living beyond their means. Countless people were getting approved for mortgages they couldn’t actually afford. Mortgages were basically being handed out like candy on Halloween, even if you couldn’t put any money into a down payment. That was just scratching the surface though.

If they committed to a mortgage they couldn’t afford, what are the chances they might have also had a vehicle they couldn’t afford. I know I personally made this mistake due to a little bit of chicken counting before eggs were hatched. I love my car, but what was I thinking spending so much?! Luckily that wasn’t a crippling mistake and my car is pretty much paid off now. Still it is a regret I live with.

Those people getting unrealistic mortgages probably made similar financial decisions on a daily basis…everything from food expenses to entertainment to clothing to vacations. You name it and there are bound to people finding ways to waste their money on it. Too many people simply were not educated enough to properly manage their money. Plus we have turned into a consumer society, where we are constantly reminded of what we do not have and how great our lives might be if we had those possessions. Greed and ignorance has taken over our lives.

Out of the ashes rose the Modest Money blog to help reveal some of these poor financial decisions and guide people in the right direction. I want to help people learn from their mistakes, including my own poor judgement calls. While some of us do manage our money quite effectively, there are usually still things we have overlooked or not properly thought through. Almost everyone can be a little wiser with their money. Myself included! I consider my own personal money management habits to be fairly good, but I realize that I can still learn a lot.

I’m not going to tell you how to become a millionaire overnight or how to overcome massive debt. I will try to teach you better money management habits that should help regardless of your situation, whether you are on the path to riches, struggling with debt or somewhere in between. By learning to live more modestly, you can reach your financial goals much easier and in far less time.

While there is an abundance of topics I plan to cover, I’d love to hear which areas you think are important to focus on. Perhaps you have some financial regrets that you would like to share with others. Together we can help each other take control of our money instead of letting our money control us.