I have a friend who recently had a throbbing toothache. He took lots of Ibuprofen to lessen his pain. He needed a root canal and then a crown on top of his infected tooth. $5,000 later, he’s practicing chewing food on both sides of his mouth.

Everyone has an unexpected “financial toothache” sometime in his life. Your car or house may need a costly repair. Or you get sick and have medical expenses. How do you pay for these car bills or medical expenses? You may have the cash. Or you pay the bill with your credit card. You pay the balance on your credit card when you can.

How do you know if you have enough money for life’s unexpected “financial toothaches?” First, acknowledge 3 choices you have with money. You spend it. You save it. You invest it.

You spend money every day. The above friend pays his dental bills, buys groceries, etc.

You may/may not save money. You save money in a bank or brokerage house and use it for future unexpected life emergencies. You save between 6 months to 2 years of living expenses. You also save money for fun goals like going on a vacation.

You may/may not invest money. After saving enough money for life’s emergencies, you invest the rest in the stock market or real estate.

Are you comfortable with how you spend, save and invest money? Answer 3 questions below to help you understand your relationship with money. Each question has 3 choices for an answer. Choose one.
1. I am (mad, glad or sad) how I spend money.
2. I am (mad, glad or sad) how I save money.
3. I am (mad, glad or sad) how I invest money.

How did you answer each question? Congratulations if you answered “glad” to each one. You are happy with how you spend, save and invest money. You live within your means and you save money for life emergencies and goals. You invest money for your retirement.

You answered “mad” to one or more of the questions. “Mad” is a good emotion if used well. You have the energy to change. Examine the specific question you answered “mad.” What’s one step you could do to change your “mad” emotion to a “glad” one?

Do it and pat yourself on the back.