How to: 7 Tips Toward Financial Freedom

Benjamin Franklin said, "If time be of all things the most precious, wasting time must be the greatest prodigality."  What I take away from this, is that the most excessive financial waste we create is when we don't spend our time wisely.  Or in other words, time will always be worth more than money.  Our life is a limited resource.  We all die.  Some far sooner than others.  No matter how wealthy a person becomes in their workplace, they'll likely still feel undervalued.  When I started thinking of money or value in terms of time, or life energy spent, it changed my entire outlook on monetary value.

Nevertheless, it exists in order to peaceably trade toward sustaining our lives.

Here is some financial advice that match minimalist values, and over time, become priceless pearls of wisdom, such that even Ben Franklin would approve.


1.  Never buy a car unless you are paying cash

Include in this point, any depreciating material item for that matter.  Example: You don't really need a new phone every year.  While a loan accrues interest, new personal property items bought in a retail market only go down in value.  100% of the time this is a losing investment in which your debt goes up and  the value of your toy plummets.  You've tried to sell something used in the secondary market before I'm sure.  Buyers are savvy.  They won't overpay you for your used stuff.  Stuff you paid the bank a healthy markup in order to acquire.


2. Give charitably, even when you're broke

This might sound counter intuitive, and I assure you that it is, and I promise I'm not crazy.  Giving, especially when strapped, is a potent reminder that some are even worse off, struggling harder, and are even more desperate.  The benefit to us is that we do better when we're hungry.  Reminding ourselves that the bottom is down there brings us a step closer to the danger of hitting it.  We'll suddenly want it more.  We'll watch our waste closer.  And sooner rather than later we'll be on top again.  Not to mention the added bonus of feeling good for not only helping ourselves, we also helped someone else.  Its a great way to turn pessimism into optimism.  Probably still doubting me, right?  Try it sometime.  You'll see.


3.  The top three wasteful financial decisions humans make, in order, are:

• Too much house
• Too much vehicle
• Too much entertainment

People are quick to argue that the house is an investment, and they aren't wrong.  However, if a small house that meets basic needs is a good investment, then an excessive house is a terrible investment.  In fact it becomes exponentially more expensive, in adjacent costs like energy, maintenance, and so on.  Similarly with the car, which was already covered above.  Entertainment can get a bit cloudy, particularly when considering how it is healthy to spend on experiences.  Your ideas of experience versus entertainment may differ from mine.  So here its important to examine if how much you are spending appropriately adheres to your values.


4. If/when you partner up with your life mate. live on one income

Imagine if you combine incomes, live and spend like you have two salaries, and a child is expected, or one of you becomes ill, or otherwise unemployed, and you can no longer keep your home caught up.  Financial stress is one of the leading contributors to divorce, greater even than infidelity.  In fact, the only problem that supersedes money is communication.  Don't let wasted money destroy your partnership, destroy your love.  Its a silly risk to take, considering that special someone is irreplaceable.

Conversely, during good times, a strong second income supplements savings, crushes debts, expedites goals, and builds real wealth.  Partnering up should elevate you to next level support and comfort.


5. Don't base your career choices solely on money

If you are currently on the hunt in the employment market, this is something you'll be looking at.  And rightfully so, which is why I feel compelled to stress this.  Speaking as a man who has changed careers more than once, and seen my wages fluctuate accordingly, I am completely confident telling you now that it is not the most important thing.  Household budgets can handle a little flexibility.  Personal satisfaction and stress levels can make you a stronger person, or a miserable human being.  There are benefits to making a little extra, so please do pay attention to your monetary value on a job.  Just don't hang it all on that in sacrifice of more important qualities.  The benefits of being content, even satisfied with your day to day life, and the positive energy that comes from feeling like you are on the correct path, will far outweigh the perks of a little extra money.


6. Track your income and expenses

Money is often compared to water.  Underwater.  Trying to stay afloat.  etc.  Knowing where you stand, and what your habits are will make the difference between a cruising vessel or a sinking ship.  Here's another Franklin quote for you:  "Beware of little expenses.  A small leak will sink a great ship."


7. Kick the crap out of your home loan as quickly as possible

Somewhere along our history the American Dream was overtaken by Keeping up with the Joneses.  The most common interpretation of that being: keep up with their yard, their car, their paint, their smoker, their holiday party, and even their children.  Essentially its a rat race toward excess and extravagance.  Because we keep our bankbooks a secret, nobody is in a race with their neighbor to see who can pay down the loan and get out of the mortgage first.  And why not?  Keep your rust bucket car.  Then laugh at them when they are still buried in debt in 20 years and you've owned outright for the past 5.  They'll never catch up with you, even with that shiny new BMW.  :No mortgage payment."  Say that out loud to yourself.  Think about the freedom in that.  Now Say it again, only a little louder and with some enthusiasm so whoever is closest can hear you.  That will be a fun conversation starter.

A single extra monthly payment per year can shave as much as 7 years* off the end of your bank note.  That's 23 payments removing 7 years.  That's 5 years and 1 month of money you didn't actually have to spend.  Why not make 2 extra, or even 3?   Another thing to think about here, is that the sooner you make principal only payments, the greater the impact they have on the time that is removed.  Betterjones covers this in our Simple American Dream workshops.  Inquire about this if you'd like to know more.

*This varies depending on your interest rate.

My Rookie Mistakes

When I purchased my first piece of Real Estate, I had intended on filling it with family.  3 bedrooms.  2 family rooms.  Spacious fenced in yard.  On paper this was a perfect starter home, ready for little ones to grow into.

When those plans fizzled, something else happened to all that space which was completely unintended.  I filled it with everything else with no real plan or goal in mind.  It wasn't obnoxious spending by any means.  I collecting things that made sense for the space and at the time it became a habit.  And it seemed like a healthy one.

Oh, it was stylish enough.  It made sense.  Guests that came were walking into a complete and welcoming home.  At least it looked that way.

The home appeared the way it should, and yet, I was not a complete person.  I was on autopilot, filling the emptiness in my space; filling an emptiness in my soul.  I had no life plan.  I had no serious goals.  I wasn't growing as a person.  I wasn't gaining knowledge, or experience, and I found myself house poor.

Plan A didn't work and there was no Plan B.  ...and just like that 7 years were gone.

I had lost myself.  

When space is available we look to fill it, even when we don't know we are doing it.  When we get on a path we might just keep walking whether its the right direction or not.  I did.  For so many reasons, and so many excuses, I was stuck on the wrong path.  I wasn't able to turn it around and get on the right one because I didn't take the time to truly analyze myself, my plans, my desires, and therefore, my orientation.  I just kept walking the walk. 

The lessons to be learned from this are:

1. While you are decluttering, be aware of the direction you want your life to go.  If you don't, it is very likely you'll do some wasteful spending on new crap you don't need and be right back where you started with less money and less time.

And on a larger scale:

2. Start smaller with your home.  Even if you know you want to grow, you don't know how much you will actually need yet, and just like your grandparents, you will find a way to make do with what you have.  Its just a financially smarter investment to make.  Exponentially smarter.  If I'm wrong, and I'm never wrong, (wink wink) by the time it gets so crowded that you truly need more, you will be able to afford to up-size.

~In case you are curious about how it is exponentially smarter, inquire about my "Simple American Dream" sessions, and let's talk.

3. Always be examining your values during times of change.  Plans rarely work out exactly as we design.  New challenges show up at inopportune moments.  Life has its own plan.  You know this, so be ready for forks in the road, so that you can react accordingly.  Be mentally available for yourself to examine a Plan B when things don't go the way you wanted.

4. Deeply consider your motivation for purchasing that.   Over the decades consumer markets have become better and better at convincing us what we need.  Most of it is predatory, and it feeds on our fears, and our desires.  Understand your own needs, and the needs of your family, and be confident enough to say "no" to all the things that you don't require in order to be productive in ways that fulfill your goals and values.   Be aware of this before every point of purchase.

5. Have goals.  Have goals and give them your full efforts.  Live Minimalism, and live ferociously in a way that is fulfilling to your soul.

How much space and money will you use more wisely?

Fake News Sucks Our Life

Decluttering your facebook newsfeed of junk news requires our input, because facebook promised they were going to work on the transparency of this nonsense, but not rid us of it.  Tip Number One:  Don't go on facebook very much, its kind of a waste of time anyway.  But when you do, if you're anything like me, you'd prefer helpful tips on living well, and newborn baby pictures, distant relative updates, gorgeous vaction pics, and funny stuff your friends are up to. 

Not this crap:

I discovered one helpful way to get worthless news, adorned with a photo of an even shittier president, out of the mix, at least mostly, so I don't have to scroll past image after image of ridiculous tweet updates from an annoying attention seeker. 

Many of these posts can be dropped from your feed!!

If at the very top, it is an original post from a page you are liking / following like NPR, Wall Street Journal,or some other real news outlet, then you should probably leave it alone because you chose to enjoy their valued content, and patiently wait until this dumpsterfire parade of ridiculousisms is over, because your favorite news organizations are doing the best they can with this national administration that is anything but normal.  But what if its your acquaintance, Jane from work, and the content is entering your feed second hand from her facebook usage?

If, at the top, it says "Jane shared this post"  You won't get the correct options to just eliminate the news source because Jane intended us to read it by putting it on her wall, in which case, if Jane does this a lot, you may want to consider unfollowing Jane.  If its rare, be patient.

If at the top it says "Jane commented on this" you can hide Jane's strange posting habits, while keeping Jane.

Instructions: 

In the top right corner of the post there is an ambiguous "[...]" for us to click on. 

Options come up many of which are self explanatory.  Here are the important ones:

• "[Hide all from Jane]"  Don't click this unless you find everything Jane posts to be annoying, if so go for it.

• "[Hide all from Stupid News Opinions page}"  Click this, and you'll never be recommended anything from the Set the Dumpster Ablaze right wing anger, or Bleeding Left Sap and the President is a sick whacko, news opinion garbage ever again. 

***Caution*** There are a bazillion of these, so it will take some time, but you can throw these junk sites out of your newsfeed and gradually they thin out and become quite rare.  I've spent the last two weeks, in ten minute micro bursts, telling that little "[...]" box that I don't want to see any more of these, and my feed is a much more honest and friendly place to browse my friends updates.  Its also rewarding to watch each particular 'article' disappear before your eyes.

Now, get off of facebook, and do something more productive.  :) 

Lazy Susan of Gratitude

Gratitude is something that comes naturally to those living with very little.  For so many Americans it is a sentiment that has been somewhat lost due to affluence, consumerism and the dogmatic belief that economic growth is necessary.  Abundance of material goods has been the answer to our desires for so long that we've developed a generational problem of excess.  For some it is so bad that they've been deemed hoarders.  

So.  Let's say you're living with very little because you've wised up and realized your needs don't have to weigh you down so much.  Living with little has saved you money, and in your simplicity your family budget starts to feel affluent.  Your mortgage is going to be paid off early.  You're out of debt.  Your buying needs are minimal.  You are living the dream, and you can financially support your kids, better than your parents could for you.  This is worth celebration, or it should be but...

The catch is that you notice they might be losing touch with the gratitude for the bare minimum that you held so dear in your own life.  You don't want them to fall into the trap.

This is one idea from guest writer Elizabeth Di Grazia

.......

Entitlement is not a disease that I suffer from. In 1970, I was one of the kids who in middle school stood in the principal’s office amidst a tangle of classmates wondering why I was there. I was no stranger to the principal’s office. However, as I looked around at the others gathered, I wondered what our connection was. The Principal explained that a free lunch program started, and the ones gathered would be receivers of this new subsidy for low income families. Sweeping the small room with my eyes, I took stock. Two students were my siblings, the other seven were from families in our small town and farming community. We all knew each other. We were the ones on the fringes. It wasn’t difficult in our small community to know where you were on the economic ladder.

There wasn’t any money for a letterman’s jacket, yearbook, or class pictures. You knew what you could and couldn’t ask for at Christmas time. I never expected any inheritance from my parents. They simply didn’t have the money.

Jody and I feel blessed and fortunate for what we have. We truly are the lucky ones who have enough in this world.

Our teenage children also have enough. They don’t lack for anything. As well as having jobs, they have parents who like to give to them.

They have the letterman jackets, the yearbooks, the mopeds, and spending money.

Sometimes they feel entitled. They want for more.

This is when we stop. Give pause. In a way that isn’t too overbearing, too apparent, or overt, we seek to bring to their attention what they have. We want them to feel fortunate and blessed like we do. The best way we have found is to say, “No”. Or, “Use your own money from your job”. Or, “Write a letter what you are grateful for”. Or, “Fill a bag with toys, clothes, or whatever you are asking for to give away before we buy anything new”. Or, “Look around at others in your school and your community and notice the disparity”.

Our 4 trips to Guatemala, their birth country, have helped. We don’t need to say anything. They see what we see. As soon as we leave the airport, all of us are shocked into another reality.

This past Christmas, instead of opening presents on Christmas Eve, we played a grateful game. 

Though that isn’t what we called it. It was simply a game. The four of us joined together for a round robin of what we received during the year without it being on our birthday or holiday. Jody and I wanted the children to acknowledge all that they are blessed with. There was plenty.

Spring vacation Florida trip, South Dakota summer vacation, mopeds, helicopter rides, hot air balloon rides, Everglades airboat ride, jet ski rides, letterman jacket, updates to our house, etc.

Prior to our round robin, we did open one gift. A family values lazy susan. Words of wisdom, love and encouragement are colorfully displayed on this decorative table centerpiece. It would be great if this simple reminder would leave the teens feeling full of gratitude all year long. I doubt it.

That’s when we can pause. Stop. And, start counting our blessings.

.......

As you become more successful, how will you pass down your ideals of humility, small carbon footprint, and living well within your means?

The Perfect Closet

We just lost another loved one.  Mourning is a period that is unpredictable, and undefined, and it is something that needs to be respected in others.  The way we react to loss, there is no number of days that is appropriate, no level of emotion that is wrong.  There are no set of rules that can dictate how hard it will hit because every connection is different.  The love we share in each of the relationships that we build in our little lives is uniquely profound.  No two relationships are the same and the strength of each connection is immeasurable, so much so in fact, that a loss can often sneak up and make for a huge surprise.

As a general guideline, the more contact is made the deeper the loss is felt.  Like if someone in the home passes; someone that we see and share space with every single day, then the grieving is likely going to be a tougher process than someone distant and sparse, then again, its still just a guideline.

When my mother lost her husband, his wardrobe stayed in the closet for years.  There was no explanation for it, and there was no need.  I know I never heard anyone question that.  Mom, two boys, and an empty seat at the table.  An empty chair in front of the hearth.  The clothes weren't empty.  His smell was still in them.  And so, there they stayed like a soft shrine.  We could measure our growth by how much of his shoes we could fill.  We could wrap our arms around the shirt tails and squeeze them while inhaling.  Us boys were little, so keeping those clothes was perhaps an attempt to fill a profound family need.  Sons without a father have an emptiness.  A mother compensating for that requires no explanation.  A new mother and new widow, can have a million reason as to why she keeps his boots, belts, jeans, flannels hanging in their place.  We grew up with the lingering smell in the master closet as a surrogate for paternal guidance.

Decades later, even with the closet long purged, that misplaced guidance still sometimes lingers out there when called upon, just the way that emptiness does that.  Its a dark vacancy.  Whenever seeking answers and without the right person to turn to, the void is often all that is found.  Like an undefined longing, out of sight, out of reach, yet persistent.  That closet in the far corner of the master bedroom is still there, like an impotent memory, a false idol, a parcel that clung to our lives, unworthy of the very real person it represented.  Memories become distorted over time.  The man we lost isn't identical to the man we remember.  The closet never made mistakes or got angry.  It was inanimate and yet it was perfect.

In June of 2017 we gathered at a cousin's house, all of us a bit crabby, sweaty and burdened over the parsing out of grandmother's belongings.  All in all, she had 2 full size storage units full of furniture, books, utensils, decor, all the things a greatest generation nonagenarian might have in her home, including things called "collectibles".   It made me sad that her children, grandchildren, great-grandchildren were all gathered together, just to be cranks at one another over her stuff.  Its a dishonorable way to let go of someone who dedicated so much of their life so that we could thrive.  We may never all be assembled in one place like that again.  A priority is remarkably misplaced in our humanity.

There is nothing quite like the acute and awesome power of death to really remind us how little importance there is in all the stuff we attain while we are alive.  We miss the person when they go.  Their soul is not living on in their belongings.  The memory of the deceased lives on within us.  We're the ones who attach that memory to the stuff and we don't need to do that.  Our minds actually remember better without it.  We'd be honoring their memory a great deal more justly if we were better at physically letting go, and instead hung onto how they touched our lives.