Re-Broadcast: SMS 100 – Your Path to Financial Independence

  1. Budgeting is a way of life
  2. Never buy a new car under any circumstance
  3. Always buy or rent for your current housing needs
  4. Never be a victim to lifestyle inflation
  5. Always be frugal never be cheap
  6. Only borrow money for things that go up in value
  7. Learn your financial weaknesses early in life, everyone has at least one
  8. Plan to live on half your income by the time you are 50
  9. Surround yourself with like minded people
  10. Learn to enjoy the simple things in life

SMS 170 – How I Consume Books

How I Consume Books

Why Books are Important:

  1. Timeless format of knowledge 
  2. Tested formula
  3. Cost effective knowledge
  4. Consumed at your schedule
  5. Creates community

Types of Literature:

  1. Fiction
  2. Self-improvement
  3. Non-fiction

Selection Process:

  1. Fiction is important
  2. Challenge your beliefs
  3. Self-improvement over self-help
  4. Read the reviews

Books should be:

  • Entertaining
  • Informational
  • Inspirational

How I Consume Books:

  1. Audiobook
  2. E-book
  3. Physical book
  4. Connect with the author (podcast, website, YouTube etc.)

Advice for individuals who’s like to consume books?

SMS 169 – Looking Forward and Back

Looking Forward and Back.

When you turn 50 you have a very unique view of life if you choose to see it. You can look back by observing your children and reflecting then things in life that your found challenging. You also have the opportunity to observe your parents and see the things in life they find challenging.

If you can relate to your children’s challenges and remember yourself in their positions then you have to believe the challenges your parents are struggling with will be your future unless you change your current trajectory to chart a new course.

Questions to ask yourself:

  1. Did you follow your parents path and are your children following your path?
  2. What are their concerns – did or do those things concern you?
  3. Will it matter in 20 years – were your concerns worthy?

Things to observe:

  1. Time
  2. Stuff
  3. Health
  4. Money
  5. Relationships

My observations:

  1. My children are concerned about their financial futures
  2. My parents are concerned about their financial futures
  3. My children are not concerned about their use of time
  4. My parents are not concerned about their use of time
  5. My children are not concerned about their health
  6. My parents are concerned about their health

Final thoughts:

  • Open growth mindset
  • Trust the process

SMS 168 – I’m Just Not a Saver, is that OK?

I’m just not a saver, is that ok?

A long time ago I was visiting a relative and was admiring the comforts of life they had accumulated and commented that they appeared to have done well and “had it figured out”. Their response was that all this comes at a cost. They said “I am not a saver, but I am great at paying back”. At the time I thought, well that’s great, you have the skill to pay things back.

Recently I had a very similar conversation with an acquaintance and they proclaimed they were “a terrible saver, but a great payer backer”. Twenty years later I have a very different perspective on this.

The problem with not becoming a saver? This is a skill and discipline that needs to be developed.

How do so many people end up going down this road?

  1. We often start out life in the hole
  2. We need to acquire things to create a comfortable life
  3. Societies expectations and timelines are unrealistic

The problem with using debt to advance though life:

  1. Debt requires income
  2. Debt has a ceiling, savings does not
  3. Debt adds risk to everything
  4. There is no wealth building opportunity

The solution:

  1. Get to a place where you spend less than you earn
  2. Always spend money that is at least one month old
  3. Become in love with a process that will lead you to saving

SMS 167 – The Problem with Abundance

The Problem with Abundance

The opposite of abundance is scarcity – you think we want abundance but we actually are seeking scarcity.

  • One of kind, hand made
  • Collections edition
  • Antique, retro, vintage
  • Latest edition, just released

The problem with scarcity – the biggest problem with scarcity is worry for the future, fear and anxiety, and all or nothing mindset

The problem with abundance – there is not off switch, no ceiling, no limitations, no fear or concern for the future, “it will always be there” mindset.

Email is the best example of the destructive power of abundance

Are we are living in a world where too much is becoming a problem? Too many choice can cause us to become careless and directionless.

Is scarcity better than abundance? If you had to choose one over the other scarcity has the benefit of fewer self-inflicting consequences.

Why I never sign up for open ended offers or opportunities –  there is no opportunity for resourcefulness or optimization.

Automation.com: white paper The problems of abundance

Example: Back in the pre-internet era, It used to be there was nothing to watch on TV at a given moment in time. Two benefits of this were you watched less TV and when you did watch TV you were fully engaged and entertained.

More humans, in the history of the human race, have died from too much nutrition than not enough. The human body was designed to survive periods of scarcity, we do not do so well with abundance.

Revolutionary promises:

The Agricultural revolution was supposed to solve hunger and make our lives better

The Industrial revolution was supposed to make our lives physically easier

The Technology revolution was supposed to make our lives more efficient

The Artificial Intelligence revolution is promising to……

Tech.com: Society Doesn’t Know How To Deal With Abundance – if you look at all of human history, probably 99.999999% of it has been about dealing with the issues of scarcity. In fact, our entire original economic philosophy (which is really just two and a half centuries old) was based on “resource allocation in the presence of scarcity.” Historically, abundance just hasn’t been an issue that we’ve had to deal with very much. And the problem is that people try to apply the mental rules of scarcity to abundance and they basically kick out an error message. It’s a “divide by zero” sort of problem. You get infinity as a result, and you think it’s wrong. So the response is almost always the same. Rather than actually trying to deal with what abundance enables, people try to force abundance back into a feeling of scarcity — which they’re comfortable with. That is, they try to apply artificial rules and restrictions to make the abundance feel like it’s scarce, so that they can understand it again.

Examples of abundance:

  • Technology – the internet, tele commuting, TV & music streaming
  • Communication – email
  • Global Markets – Amazon
  • Consumption – low cost consumer goods, single use plastics
  • Food – weight gain

The problem with abundance:

  1. No opportunity for resourcefulness
  2. Instant gratification
  3. Requires artificial restraint
  4. The paradox of choice
  5. Without a limit the answer is always more

How to solve the abundance problem:

  1. Self-imposed limitation – minimalism
  2. Narrow focus – ten feet deep instead of ten feet wide
  3. Value System – pre-made decisions
  4. View abundance as an opportunity to share

In The Seven Habits of Highly Effective People, Stephen Covey writes:

The abundance mentality…is the paradigm that there is plenty out there and enough to spare for everybody. It results in sharing of prestige, of recognition, of profits, of decision making. It opens possibilities, options, alternatives, and creativity.

SMS 166 – Is Being Too Busy a Problem?

Is Being Too Busy a Problem?

We often over estimate what we can accomplish is a day and under estimate what we can accomplish in a year.

Money is the lubricant of life, not enough and life is a grind, too much and your life has no direction. Too much disposable money can be a cause of being too busy.

Many people view those that are not busy as being lazy or self-absorbed when really they are just trying to enjoy life on their own terms.

Is there a problem…

The problem with being too busy is it could jeopardize our goals in life and we often think we have a great reason or at least we think we do, when really we are just consumed with busy work rather than important work.

How does being too busy relate to people in your life?

We often say we are too busy for a particular activity or action, what we really mean is that something is not important enough for me to consider it a priority.

Ask about the law of diminishing returns

The law of diminishing returns – a point at which the level of profits or benefits gained is less than the amount of money or energy invested

Hiring a service to do your home chores. Such as house cleaning or year work, might be a sign that you are too busy.

15 Signs You Are Too Busy And Should Stop – LifeHack.org

There are 3 thing at play here:

  1. Having too many required actions for a given day that exceed 24 hours
  2. Allowing your required tasks to completely fill a 24 hour period
  3. Wanting the image or illusion of have required actions that exceed 24 hours

Causes of being busy:

  1. Procrastination
  2. Poor planning
  3. Poorly designed life

Reason to not want to be busy:

  1. When your busy your judgement is comprised
  2. When your busy you don’t have time to collect your thoughts
  3. When your busy you put your health at risk
  4. When you’re busy, you make busy excuses for actual problems
  5. When you’re busy, you unconsciously sacrifice consistency

How to Slow down:

  1. Plan to do less – if you are a parent then that is your job, hobby, sport, and general interest
  2. Work life balance – this does not exist with a high paying career, you have to make a choice
  3. Prioritize – will this matter in one year, five years, ten years, on my death bed
  4. Enjoy the simple things in life – don’t just do them learn to enjoy them

SMS 165 – You Need A Process

You need a process to achieve your goals

You can’t be motivated solely by your goals, you have to love the process to succeed.

Examples:

Problem: over-weight,

Goal: wanting to be thin

Better Goal: wanting to weigh 110 pounds

The goal has no instructions or process on how to achieve this goal. The best approach would be to love being a vegetarian, or a vegan, or a gluten free sugar free vegan. Go ten feet deep on being a vegan and love the journey of learning about what it means and finding communities of like-minded people who share the same passion.  That is fun and exciting and you will never lose motivation and guess what you will lose weight and probably exceed your goal along the way.

Problem: high blood pressure

Goal: wanting to reduce blood pressure

Better Goal: wanting to reduce blood pressure to 120 over 70

The goad has no instructions or process on how to achieve this goal. A better approach would be to adopt a sport, for winter and summer. If you do not excel sports than become a “gym rat”. Go ten feet deep on weight training and love the journey of learning about what it means and finding communities of like-minded people who share the same passion.That is fun and exciting and you will never lose motivation and guess what you will lose weight and probably exceed your goal along the way.

Early Financial Independence

  1. Good Income – Modest lifestyle
  2. Modest Income – Frugal Lifestyle
  3. Good Income – Frugal Lifestyle

Good Income – You need to have never ending thirst for knowledge

  • Always wanting to upgrade your skills
  • Always have a side hustle
  • Love being the go-to person

Modest Lifestyle – You need to become resourceful, stretching the useful life of everything you own.

  • Learn how to do some of the smaller home repairs
  • Learn how to maintain your lawn mower
  • Learn how to change your snow tires
  • See the world for everything that could be optimized

Frugal Lifestyle – All you see in the world is excess

  • You get excited about thrifting (you can’t drive past a year sale)
  • You are disappointed when you have to buy new instead of used

SMS 164 – Celebration

Celebration

Celebration is a funny thing we tend to celebrate our past, I would like to introduce the concept of celebrating our future.

I used to think hope was this fleeting emotion that would come and go, but I recently read a book by Mark Manson – Everything is F**ked that has changed about hope.

Do not chase happiness, the pursuit of hope will be far more rewarding. In the pursuit of happiness would suggest you are currently not happy. The more you pursue happiness the more unhappy you will become. The pursuit of hope is more of a journey and less of a destination which will bring a positive mindset.

Hope is not something that happens to you, hope is something you embrace, hope is something you believe in.

Hope is the intersection of three things

  1. Control – show up in our lives as choice
  2. Cause – you have to believe in it beyond your contribution
  3. Community – like-minded people coming together to support each other for a shared cause

People come in and out of our lives in three ways:

  1. Reason
  2. Season
  3. Lifetime

Developing and celebrating hope in different aspects of your life:

  • Job/Work
  • Personal Finance
  • Family and Friends
  • Random events

SMS 163 – Diet vs Lifestyle

Dieting vs. Lifestyle

We get out of debt and then get back into debt or reach our goal and then digress, why? We’re in a diet mentality.

A diet is a systematized, temporary lifestyle change whereas changing one’s lifestyle is an attempt to keep up similar habits for a prolonged period of time.

Why diets don’t work:
https://psychologyofeating.com/why-diets-dont-work/
Diets Are Restrictive — all diets follow some method of restriction. While different programs use different methods of restriction, the concept is still the same: you remove or limit something from your spending patterns.

Diets Aren’t Successful in the Long Term — if financial dieting worked we’d pay off all our consumer debt, pay off our mortgage and never accumulate debt ever again.

Diets Take a Cookie Cutter Approach — diets give us rules to follow, and our unique circumstances, personal history, and individuality are rarely considered.

Depletes Your Vitamin T — trust – trust in yourself, that is. Diets require you to place an incredible amount trust in their product or program.

Is there a season when dieting is okay?
Debt repayment with gazelle like intensity?

How do we stay in that lifestyle mentality long after we’ve reached our goal (debt repayment etc.)?

How to maintain lifestyle changes:
Pick one list you like best!!!
https://www.doyouyoga.com/7-ways-lifestyle-changes-stick/

https://www.health.harvard.edu/healthbeat/the-trick-to-real-and-lasting-lifestyle-changes

BONUS: Have a really big why

SMS 162 – Saving money on groceries

Saving money on groceries

Why you should want to get good at grocery shopping:

  1. You get an opportunity to get this right or wrong every week
  2. It should be your third highest expense
  3. These are life lessons for your children
  4. This is an evolution – what worked when you were single won’t with a family

How to save money on groceries:

  1. Set a realistic budget
  2. Shop from a list and a menu – marketing can be powerful
  3. Separate groceries from other expenses
  4. Shop at least once a week – this can’t be a side project, it requires effort
  5. Never shop while hungry or tired – you decision making will be altered in a compromised state
  6. Avoid value added products – whole foods are healthier and less expensive
  7. Beware of volume discounts – it could change your consumption habits
  8. Beware of chasing sales items (it could be a trap) most stores price match
  9. Buy in season – you need to alter your consumption with the seasons
  10. Consider adopting a plant based diet