SMS 127 – (un)Fortunate Events

(un)Fortunate Events

My first thought about this email and episode was that we should not wait until something bad happens to make changes in our lives, but then I reconsidered….

  1. Life is not a straight line – forcing it to be straight will only bring regret
  2. We naturally move toward pleasure – growth come from a place of discomfort
  3. Have a plan – “No battle plan ever survives first contact with the enemy”- Hemluth von Molke
  4. We learn very little from our successes in life but our failures are provide great wisdom
  5. Formal education is manufactured adversity

Life is journey not a destination, it is enhanced not by the things you bring with you, but rather by the people that you meet along the way.

SMS 126 – Used Cars Part 2 – How to Buy a Used Car

How to buy a used car:

  1. Realistically access your transportation needs – not a status symbol, narrow your search make/model
  2. Set a budget and stick to it – maximum loan 3 years, 40% to 50% of your annual income tied up in cars
  3. Do your research – become an informed buyer, know your prices & search out known problems
  4. Only buy from a dealership – buy a previously leased car, don’t buy somebodies problems – know why the car is for sale
  5. Test drive as many as possible – you have to drive a bad one, check the car proof, take it home and wash it
  6. Beware of a deal that’s too good to be true – be willing to pay fair market value (the seller knows more than you do)

SMS 125 – Used Cars Part 1 – Why Buy a Used Car

Why buy a used car:

  1. It’s not a status symbol, it’s transportation
  2. Learn resourcefulness – shopping and owning (limited warranty, the warranty is not free its built into the price, if the company was losing on warranties they would go out of business)
  3. Less Stress – pre-scathed, pre-dented (pre-flawed)
  4. The second largest purchase you will ever make (this can make a difference)
  5. This is a purchase you will repeat – get it right (every 10 years, get it wrong and it compounds)
  6. Borrowing money for things that go down in value (with a new car you can be upside down on your car loan)

SMS 124 – Debt Freedom

How to Get Out of Debt:

  1. Debt Avalanche – prioritize based on interest rate
  2. Debt Snowball – prioritize smallest to largest

Why you should live a debt free life:

  1. Reduced risk – your biggest financial risk is loss of income to cover your expenses
  2. Freedom of choice – paying for your past actions in the future
  3. Reduced stress – life has many moving pieces debt can be a very volatile piece
  4. Changed how you view money

Using debt as a financial management tool will force the decisions you make today to be controlled by your actions of the yesterday. Living a debt free life means you can focus on the present and the future and leave the past behind.

SMS 123 – Own Your Financial Decisions

Own your Financial Decisions:

  1. Stop relying on somebody else to make your decisions – but have a support system
  2. Small decisions can have big impacts – always keep the end in mind
  3. Don’t adopt the victim mentality – if you do you become powerless
  4. Have a process but be flexible – predicable outcomes start with reliable inputs
  5. Don’t keep score – your past will determine your future…..if you let it

SMS 122 – Why Be Different?

If you want something nobody else has you have to be willing to do something nobody else does.

That something should be financial independence early in life.

How to be different:

  1. Drive an older car
  2. Live in a modest home
  3. Avoid home improvements
  4. Vacation frugally
  5. Don’t follow the masses

SMS 121 – The Truth about Credit Cards

The truth about credit cards:

  1. credit cards are not required but are convenient
  2. credit card should never be used for credit
  3. credit card hacking is a hobby not a strategy
  4. credit cards are not an emergency fund
  5. credit cards need to managed like a bank account

SMS 120 – Minimalism Misconceptions

Misconceptions of a Minimalism

  1. Minimalism has to grow organically
  2. One person’s minimalism is another’s excess
  3. Minimalism can be expensive
  4. Minimalism is not for everybody

Book: The Life-Changing Magic of Tidying Up

Audiobook: The Life-Changing Magic of Tidying Up

SMS 119 – Signs of Financial Distress

Five subtle signs you might be moving in the direction of financial distress:

  1. You are spending money that is less than 30 days old
  2. You have no savings goals
  3. You are more focused on where your money is coming from rather than where it is going
  4. You are using some form of credit to pay for living expenses
  5. You are paying interest on the credit used for living expenses

SMS 118 – A New Beginning

The Simple Path to Wealth: Your road map to financial independence and a rich, free life

The Value of Simple: A Practical Guide to Taking the Complexity Out of Investing

Mr Money Mustache Blog

The Mr Money Mustache Show

JL Collins: “The Simple Path to Wealth” | Talks at Google