Every relationship has times of overspending.
When you unitedly decide to stop spending, make sure you don't starve your needs and wants.
Rather put your spending on hold while you eliminate, reduce and strategize.
You may need a season of belt tightening, but don't starve your family or take drastic approaches.
Remember small evolutions generate revolutoinary results.
Carlos Boozer was known as an outstanding offensive player. He was also known as a very weak defensive player.
During his career he played for the Cavs, Jazz and Lakers before retiring last year.
His coach often benched him during important times so he wouldn't allow opposing teams to score.
He usually missed the best part of games, the end of game.
With money, as in basketball, defense matters.
Offense:
Generally incomes rise with experience and education.
Thus you can expect to earn more as you acquire industry-specific knowledge and apply it to your profession.
Defense:
Outstanding financial stewards plug leaks, they play defense with intensity.
When spouses don't play defense, they often miss out on family time by virtue of divorce or overwork.
They know that financial death can happen from a thousand cuts or from ignorance or from deception.
Tight defense involves tracking expenses, numbering expenses, competing (with yourself) to reduce and prevent expenses and eliminating current expenses.
Don't be left out of the most important part of your family's life because of poor defense.
(Photo courtesy Pacoperez6) (Original blog form 2013 was entitled No Defense)
I recently had a very tough, almost depressing, budgeting session.
A lady met with me to get a hold on her finances, but she seemed more interested in excuses than making and keeping money.
At one point I suggested a used car might be good for her since her housing is currently 100% of her budget, her income is low and she recently declared bankruptcy.
Her reply? "It is used."
Her car is a 2013 model. And she pays about $350 per month.
I explained that used (to me) means about 10 years old and with no loan--especially since she just declared bankruptcy a few months ago.
She countered, "My bankruptcy lawyer told me it would be a good idea to buy the car to improve my credit."
This lady is not only broke, but she is mentally poor. She accepts unproven, false theories from the uninformed.
I explained that she is the only one who can change her financial fate.
Will she?
I hope so.
Two guys (let's call them Curly and Moe) complained about "stupid rich people" shopping at thrift stores.
Another man I've known for a year (let's call him Lincoln) interrupted them and suggested maybe the rich people were rich because they shopped for bargains at thrift stores.
Curly and Moe thought about that, but then decided rich people should buy retail.
Curly and Moe have no assets other than vehicles. No home, no savings. They make little and spend much (lunches, soda, vehicles, clothes, etc)
Lincoln has a net worth upwards of $200,000 and is very frugal. His household earns more than 3x the national average and yet he loves deals, bargains and people more than appearances.
Don't be like Curly and Moe. Think better. Be like Lincoln.
...then budget
-together
-do it quickly
-include income, not just outgo
-tell your money where to go (your priorities must trump your creditors' wants)
-Include fun money
-Invest/spend in and on what matters most (family, house, food, transportation)
My dad wishes he had been a rancher. He grew up on a Utah farm, spent two years in Texas and currently lives in Florida. But for one 25 year stretch he worked in New York doing work he abhorred and spending too much time away from home.
In Texas there is a saying about pretentious people: big hat, no cattle.
My dad isn't pretentious. He has a big Stetson cowboy hat AND the cattle. His "cattle" are debt-free vehicles and a debt-free house.
Recently I helped a couple (from Texas) who had a "big hat but no cattle": Nice financed vehicles, a large rent payment on a prestigious home and multiple credit cards with outstanding balances.
They're getting better though. They're paying down debt.
How about you?
A big hat and no cattle?
A big hat and much cattle?
My advice is to get the ranch, the Stetson hat and the cattle....in cash. And do it now.
A few days ago I mentioned to my 16 old legendary, daughter (she's frugal, brilliant and righteous) that I wanted to buy a used iMac.
She asked how much they usually cost. I said as much as $2,500. She said, "just drop the zero."
Drop the zero and a $2,500 iMac becomes $250!
What experiences could you enjoy if you consistently dropped a zero? What could you buy if you dropped a zero? What could you pay off by dropping a zero?
You can live within your means, pay off debt and pay as you go if you simply drop the zero.
Look for ways to remove a zero. You can live much better at less than half the cost by constantly dropping a zero.
I've talked to a few people lately who are in troubled marriages and who have money troubles.
I asked them to send me a recent budget with income and outgo. It has been very rewarding to see them happy again as they discover "fixed expenses" are fluid. They have saved a few hundred dollars a month while finding joy in rich relationships.
So if you'd like a FREE budget review, send me your simple budget to [email protected]. All information is confidential.
In order to buy a business in 2006 I sold my Toyota Corolla. It was only worth a few thousand dollars, but it helped in the very rough first months.
I scrimped to build an asset. Other times my family has scrimped to save for a dream vacation.
When the business became an asset, I bought my dream car (Lexus LS400) as a reward for my earlier discipline.
I advocate scrimping only for short spurts. Life is too short to scrimp for years.
And make sure to reward yourself for scrimping.
I'm currently enjoying a very relaxing trip in Finland. I saved and planned for nine months to visit my favorite European country.
Today's post will be brief because I want to enjoy my trip in Finland.
In order to prepare for this trip, I increased revenue streams, added a business partner, outsourced some concepts and reduced (not eliminated) three personal luxuries.
The result? I just ate smoked Salmon in a former jail. Yum! And I get to visit five castles this week.
Frugal and free.
Not frugal and enslaved by massive restrictions. Not cheap and enslaved by things or denial.
It's been said we do not lack time, we lack priorities.
Similarly we do not lack money, we lack priorities.
A neighbor bought a truck costing 300% more than my largest auto purchase. Yet his wife can't afford to stay home with a baby.
His truck is his top priority.
Most people have an abundance of time and money. But poor prioritizing pilfers precious money and time.
What do you value most?
(Photo courtesy Wikipedia)
Our neighbor to the left just laid down sod and now she has a luscious green lawn.
Across the street neighbors typically use fertilizer from Lowes to green their lawn.
We use fertilizer from IFA to ensure a green law amidst the Utah desert.
There are many ways to get and keep lawns green.
Thankfully there are also many ways to become prosperous and free of money concerns.
Read and talk about finances, you'll discover several viable ways to win with money.
(Wikipedia photo illustrating green grass)
As I sat at the dentist today I thought of my daily routine. It's full of disciplined actions calculated to make me more useful to others.
An influential friend once taught me how to maximize each day. And for the last 22 years I have worked at it.
Each day I start with an hour long Spiritual devotional. Sometimes I listen and other times I read to uplifting literature.
Then on my daily commute I listen to part of a transformational book. It may be Percy Jackson, a Seth Godin book, Eat to Live, or Heir to a Dream.
During the work-day I listen to one complete book.
When I need creativity I turn to Pandora while I generate, curate and synthesize ideas. Ideas flow freely when I have inspirational music alternated with pure silence.
On my lunch break I spend 45 minutes at Golds Gym. Cardio, weights, and stretching are my three key focuses. Five or six workouts each week with a week off every few weeks.
Then in the evening I seek to unplug and relax with my family. The six of us eat together most nights. We talk, attend Scouts, visit with friends and read.
Many people wonder how I read/listen to 200 or more books a year, travel several times a year and keep fit.
The secret lies in being inspired by a higher power and then doing daily disciplines that shape my destiny.
A friend shared his formula with me. And now I share it with you: daily develop your body, mind, Spirit and relationships.
Your life will transform into greatness streaming from your small acts of greatness.
Jordan, a friend of mine, helped me with website design. At one point he asked me to hit F5. I ignorantly asked him what F5 does.
"It refreshes or reloads the page."
I couldn't believe my ignorance. I thought the only way to refresh a page was to hit the little clock-wise arrow. Then I learned about F5.
The F5 button has the coolest function on the keyboard--a new start. And I had never known about it.
F5 is now one of my favorite keys.
F5 is also a way of life.
Have a horrible day, month or year? Have too much anger, debt or depression?
Don't declare bankruptcy, get a credit card, divorce your spouse or take your life.
F5, take a mulligan, do-over or re-boot.
Getting out of debt is tough, but staying out of debt takes real discipline. There are no easy fixes to financial challenges.
Simple decisions combined with hard work multiplied by time yields immense success.
1. Involve your children and spouse in saving for a major vacation/camp-out/trip. This cuts spending and teaches massive responsibility.
2. Talk about your shopping list (big and small purchases) with your spouse. Knowing desires clarifies your focus. And a focused budget gets results.
3. Give. Giving when you don't have is the best way to get more and manage what you have better.
4. Pray and then act to fulfill your requests. God and you can never fail permanently.
5. Avoid new debt. Remove any temptation. For my family we chose to limit our credit cards from several to one.
Temporary techniques are many. And permanent principles are few.
Permanent principles create lasting results for me and you.
One of my techie friends showed me his new Android watch. It synchronizes with his Smart phone and looks sleek.
He told me he favored one brand over another because control is more important than power.
A brand with a high powered camera and many other upgrades was less 'controllable.' The high-powered watch ate battery life and was too unwieldy.
Controlling expenses might be more important in your wealth accumulation than a powerful income.
Although the duality of high income and low outgo seems superior to a polarizing, binary belief that one can only have income or thrift.
My wife and I paid off debt rapidly with an intense focus on debt-reduction while I worked to increase my earning potential.
The legendary former Indiana Hoosiers Coach Bob Knight taught his players to overcome self-inflicted mistakes in order to win.
He became the winningest coach in Division I Men's basketball with his philosophy.
Coach Knight instilled the idea that knowing and conquering self guarantees victory.
He called it negative thinking, looking at one's problems (in order to fix them) instead of merely looking at the good.
Simultaneously see the bad (and fix it) and savor the good in yourself and others.
Many marital and monetary mistakes are SIT mistakes: self-inflicted trials.
Paying mortgages last instead of first, financing instead of paying as you go, and buying and then arguing instead of discussing and then buying.
Seek to eliminate SITs while optimistically enjoying the good in life.
(Photo courtesy Wikipedia)
Destroying debt demands commitment.
Knowing but not doing is frustrating and fake.
When Bjorn Borg was a young tennis player he once had a fit after losing a match.
His outburst prompted his mom to confiscate his racket for a month.*
The consequence?
He determined to never allow his temper to control him again.
He later became the best rated player in the world while never losing his cool.
A less emotionally committed person was John McEnroe.
Throwing rackets, yelling and verbally bullying line judges evidenced his lack of commitment to emotional mastery.
Commitment, determination to do (or to not do) is key to paying off debt, living within means and saving for a rainy day.
Commit. Determine. Decide. Do. Execute.
(Photo courtesy Wikipedia)
*HT Ted R. Callister
Assets (income producing entities) can turn into liabilities, burning money instead of producing cash.
A friend's business has negative equity, but he won't divest it.
Others have rental properties with negative cash flow that they persist in keeping as a so-called long-term investment.
Mistaking liabilities with tangible assets or falling in love with a liability is like refusing to cut gum out of hair.
Cut the loss if your asset is draining money.
How?
Sell, give away or whatever else you and your spouse feel best.
Assets must produce positive income now and create real future equity.
When an asset turns bad we may need to discard the asset-turned-liability.
I once sold a business when my trifold gain stagnated for over a year and my immediate income turned downward.
It was painful to lose 'my baby' but it freed me to focus on cultivating real assets.
Real assets add income now and capital gains for the future.
Do you need to cut a pseudo-asset?
(Photo courtesy Wikipedia)
Being a wise financial steward requires a combination of science and art.
The science of abundance is best captured in the truisms: live within your means. Save. Invest. Pay down debt as fast as you're able.
The art if abundance is evidenced by the ever present need for Divine guidance.
Recently as I visited Palmyra, New York I read of the importance intimations, or heavenly hints, played in the protection of sacred records.
In money matters heavenly hints are needed to know when to apply for a job or when to invest.
Intimations are useful for validating decisions and fortifying certitude.
A vast amount of confidence stems from a concrete conviction that heaven has helped form your thoughts.
Next time you apply for a job, start a business, invest or begin saving for college, remember to seek intimations: helpful heavenly hints.
During our earthy sojourn we choose to couple with many people and things.
Oft times we need better coupling: to hold tighter to good, healthy relationships.
We need to write to those we love and fight for massive time with loved ones.
Occasionally we ought to decouple: leave situations, people or ideas that impede progression.
I once felt compelled to leave a regressive friendship. I felt myself being pulled into habits and a lifestyle that made me feel dark inside.
I painfully chose to decouple.
Decoupling from regressive people and ideas causes abundance in money and relationships.
Years later I realized that decoupling from a bad situation propelled me into massive emotional and social joy.
(Photo courtesy Wendy Loren)
My dad once owned a Farmall C that rarely worked.
Often It had to be dangerously hand-cranked. The crank occasionally would come loose and fly through the air at my Dad.
Or other times my Dad had to jump- start the Farmall by coasting down a hill while simultaneously releasing the clutch.
It was a fun tractor....when it started. My dad gave his children rides down a long country road in Upstate New York.
And occasionally he plowed our driveway using the old Farmall C to create massive snow-banks from the heavy snow.
But most of my childhood saw the old Farmall sitting inoperable.
Oftentimes finances become inoperable. It feels like hand-cranking a stubborn, old tractor. We wonder if we need a jump-start.
Why do family finances fail to work?
Lack of unity.
Selfishness.
Laziness.
Broken focus.
Mere mortal efforts without Providence.
On the other hand united, self-less work, with a focus on other family members, reaps abundance in much more than mere money.
(Photo courtesy Wikipedia)
A few weeks ago I took a charge during a pick-up basketball game. My wrist was injured as I tried to catch myself before slamming to the floor.
It has hurt everyday since my fall.
Consequently I decided to take a few days off of strength-training this week. I thought a few days of rest, away from weights, might allow my wrist to heal.
The rest didn't seem to help.
During my few days away from the gym I read a blurb from Michael Jordan about injuries. In effect he said he played through most injuries to set an example of leadership for his team-mates.
Playing through injury seems counter-intuitive. Isn't rest the best option?
Occasionally we need to play through our so-called injuries and let them go away as we continue to move.
Of course even MJ missed most of a season with an injury. There are times when we most slow down and even stop.
Most often, though, we should play through our injury (challenges) so we can obtain our goals.
(Photo courtesy Wikipedia)
On Monday I hiked The Subway at Zion's National Park with family.
The ten hour long epic journey through hot climbs and icy-cold descents provided ample time to reflect on the purpose of Cairns.
Cairns are man-made piles of stone used to mark trails. When hikers/bikers see a Cairn they know they are headed in the right direction.
We noticed several Cairns when we searched for them.
We also had a live "Cairn": our guide, my brother-in-law.
In money matters there are Cairns which when followed mark the pathway to prosperity.
Cairns for financial peace include mentors who are rich in relationships and wise with money.
Other Cairns are excellent income, multiple sources of income, advancing education & knowledge, diminishing debt, and patience.
Cairns pointing to financial peace are everywhere. We just need to look for them....and follow them.
(Photo courtesy Wikipedia)
I love to drink protein smoothies. But I don't like washing the blender.
My wife taught me to clean the blender immediately after making a smoothie instead of leaving the dirty blender in the sink.
It's easy to clean a blender immediately after use. Water and little soap and it's clean.
When a blender sits for several hours it takes twice the effort (or more) to get it clean. You scrub and scrub and have to use extra dish detergent.
Accumulating debt is like leaving a dirty blender in the sink. Payments last for months or years causing the purchase price to treble. The pain of paying off the silly debt seems unbearable.
Pay cash and see how easy it is to build financial fitness.
(Photo courtesy freedigitalphotos.net)
As my wife and I talked to our daughter about lessons from the Titanic I thought of two past posts. Monday marks the 101st anniversary of its sinking. Hope you enjoy these posts and find some ideas worth applying.
Lessons from the Titanic (origial post here)
In April of 1912 over 2,000 people boarded the magnificent Titanic. The story of its sinking is legendary and its great loss of life is usually attributed to icy waters and a meager supply of lifeboats. But icy waters and a low number of lifeboats were only attributes of the demise not the crux. The main reasons for the demise of the Titanic were poor communication and poor vision.
For instance another ship, The Californian, was only 20 miles away. Why didn't it help? Because of many Communication problems.
The Titanic's Marconi system was shut down on Saturday and part of Sunday before the Sunday night collision. With the communications system shut multiple ice berg alerts were not received or simply ignored. And the operators on the Titanic told the Californian to "shut up." Then in strange irony the Californian shut down their Marconi system 3o minutes before the Titanic began sending distress signals. In our families we sometimes fail to talk about money or we ignore sound financial advice to our own demise.
Of course communication wasn't the only challenge with the Titanic. Vision played a role too. The weather was clear and devoid of fog. A look out could have spotted the ice berg in time to slow down (22 knots) or change direction. Instead the only pair of binoculars were locked away and no body on the ship had a key. Sometimes we get so blinded by our daily debts and forget to plan long term investments and spending. We need to take our "binoculars" out and plan what we will do with money so we avoid the big icebergs in our future.
Other ships missed ice bergs in that same region, but communication and vision were crucial in the Titanic's demise.
Communicate with those that control money in your house. Establish a clear financial vision by proactively creating a budget. Communicate and envision what needs to be changed now so you can avoid financial calamity when the big ice bergs appear
Slowing Down the Titanic (original post here)
Although vision and communication played critical roles in the rapid
demise of the Titanic and life boat shortages exasperated the
catastrophe, speed seems to be the instigator behind the tragedy.
The Titanic was averaging about 21 knots (24 mph; 39 km/h) for
most of the journey including the last day of the journey even after
icebergs had been spotted. Captain Smith knew it was wise to slow down, but he didn't.
Some speculate that the Bruce Ismay wanted more publicity for his company, White Star Line, so he strongly encouraged Captain Smith to reach New York in record time.
Both knew of the danger, but decided it was worth the risk. They chose to disregard sound advice from crew to slow down and instead sped up in order to gain personal recognition.
The same is true for us now. The consequences may not be life or death, but the icebergs of potential financial ruin are everywhere.
Nowadays the icebergs of potential financial ruin are everywhere.
Individual credit card debt is skyrocketing and personal savings are plummeting.
Will we slow down to see the icebergs of overspending? Will we heed the warnings to save for a rainy day?
We
often speed up when we are pursuing something, or sometimes forget to
slow down when warning signs appear because a deal looks amazing, and
promises to get us rich quickly.
Or we fail to look at risks involved with additional debt.
Notice the icebergs and then slow down, evaluate the risk, and if necessary, stop what you're doing.
Photo courtesy (Wikipedia)
As I waited at Jiffy Lube to have my 1995, paid-for Lexus inspected and registered, an employee regaled me with an interesting story.
He was driving his Acura too close to a lady who decided to brake check him. The accident smashed the lady's car but barely dented his Acura, although his airbags deployed.
He called it a brake check. The lady he hit would probably label his action tailgating.
Both labels point to an interesting lesson:
Don't get too close to disaster.
Stay far away from disaster. Don't pay bills on the last possible date. Don't rush to a meeting or to work with no cushion for detours. Don't think of a job upgrade or change only when your company files for bankruptcy. Don't get a car or home payment that you can barely afford,
Leave room for mistakes.
Tailgating eventually leads to accidents.
Will the Jiffy Lube guy stop tailgating? Maybe.
(Photo courtesy freedigitalphotos.net)
The virtue of patience is perhaps one of the most important aspects and accelerators of financial gain or loss.
Examples include: willingly waiting for bargains. Patiently pursuing a process of personal growth and paying off debt in a stepwise manner.
Patience...
is exercising forbearance when retaliation seems paramount.
is a process.
plans.
prepares.
has realistic expectations.
is active not passive.
practices perfection until permanent.
A few days ago I took an assesment to evaluate my patience. My lack of patience was appalling. The above ideas are my new areas of focus for a long time to come as I practice the process of patience.
Won't you join with me?
(Photo courtesy freedigitalphotos.net)
A few (5-6) key frugal indicators offer more return on effort than several (perhaps 50-100) indicators combined. In other words the sum of fifty financial wisdom gems equal the impact of the top five key indicators combined.
An example: Pay as you go vs. use credit cards to get points/cash back/freebies. Pay as you go insures no debt. Pay as you go curtails lust for more goods.
Another example: Get as much education as possible vs. real world experience is the most important/Bill Gates never went to college. Lifelong learning is always a good way to make more money whether working for someone else or in your own business.
And a third example: Pay off debt as fast as possible vs. use debt to leverage your lifestyle/debt is a tool/get debt, get a tax deduction. Debt is a tool, but not nearly as effective as cash. Why? Cash instills confidence, lower prices and hope in the future. You barter better with cash. Cash facilitates a simple, Zen-like approach to life.
Although there are many ways to get financially free, its best to focus on a few key truths to get to your destination quickly and smoothly.
(Photo courtesy freedigitalphotos.net)
A Shell game is always a losing cause no matter how good it appears. Any choice is wrong and every person is a shill or confidence man.
Common anti-frugal shell games look like this:
The time is right. Check
Your motives are noble. Check
The thing you want to do/buy/pay-off is wrong.
If the thing you want to do is wrong then nothing else matters.
Find out what debt to pay off/investment to make/dream to achieve/business to start and then work on the timing and motives.
Put the first thing first: what is the right thing to do? Timing and motives are ancillary to doing the right thing, not primary. It's all a shell game when we place motives and timing ahead of doing the right thing.
(Photo courtesy Wikipedia)
Concurrence--doing things at the same time--is not the same as multitasking. Mutitasking is one person doing many things at the same time. Concurrence is when two or more people are focused on the same money objective(s) at the same time. Concurrence is a powerful way of creating momentum in money matters.
Excellent areas of Concurrence:
Not all people agree on the same goals concurrently. How can you get concurrent? It takes focus on your spouse as a person. It takes valuing your spouse's wants and needs more than your own.
There is great power when two people focus on their goals at the same time.
(Photo courtesy freedigitalphotos.net)
Morrie (via Mitch Albom) opened up my eyes to the tension of opposites in Tuesdays With Morrie. The tension of opposites is a way of becoming whole/complete by embracing opposites. For instance we might want to have fun, but feel compelled to be dutiful. Morrie believed both are important.
Hit singles (pay one debt at a time) or go for a home run (pay off all debt at once)?
Play and enjoy life or invest in the future?
Work hard or relax?
Give your all to your current income opportunity or plan for the next income opportunity?
The answer is usually both. It's not about either or. Having to choose between one or the other is a false dichotomy. Embrace the pull of opposites.
Financial abundance often results from seeking to love both ends of the spectrum concurrently.
(Photo courtesy Wikipedia)
When you're focused on attaining a life of abundance it can feel overwhelming. So many creditors. So many aspirations. Should you focus on multiple goals? Or perhaps multiple debts?
Manage your various aspirations and obligations as best as you can. Then focus all of your efforts on paying off one debt at a time while simultaneously studying your biggest dream.
For years my wife and I pursued one dream/meta-goal for every debt we paid off. We managed to pay minimum payments on many debts, but we paid off one debt and then rewarded ourselves with a dream. Long term it allowed us to pay off all of our debts while enjoying life.
(Photo courtesy freedigitalphotos.net)
The Los Angeles Lakers just fired their coach, Mike Brown. They have four future Hall of Fame players including the iconic winner, Kobe Bryant. They have millions of fans and 17 Championships, but they keep losing--8 games in a row during the pre-season and then 3 of 4 games in the regular season.
So the question to ask, when a team drops 12 of 13 games, is who/what can change the losing team into a winning team? A new owner? No. New players. They already tried that. The answer is to change the leader. In the NBA the coach is the ultimate leader for good or bad. His attitude permeates the entire organization.
Change the leader, change the team.
Are your family finances on a losing streak? Thankfully you don't need to fire the leader. Instead work on changing the financial health of the leader (if your reading this, then you are the leader).
Get better. Live within your means. Say no to selfish purchases and habits. Say yes to saving for one family goal at a time. Get multiple bids, exercise discipline, read some money books, prepare for good and bad, expect great things, get thankful. Decimate your debt and hunt down your family dreams with passion and vigor.
(Photo credit Wikipedia)
Meteorologists give lousy landscaping advice.
Lawyers advice on dental work tends to be less than desirable.
Photographers don't make good mechanics.
Everyone knows this, but yet many people still get money advice from...
People who know financial success are the ones with the fruit on the tree. They pay off debt rapidly, live within their means, save for a rainy day, and constantly increase income potential.
Next time you want advice on improving your finances, make sure you ask people who know finances.
(Image courtesy freedigitalphotos.net)
My wife and I once traded in a clunker on a reliable, used car. We negotiated with the salesman until we had a good deal. Then we let him know we had a used car to trade in. He asked if we had the car with us. We told him that we could have it soon. Shortly thereafter a tow-truck arrived with our jalopy on the back. Our old car had broken down on the way to the dealership.
Shortly after the tow-truck experience my wife and I bought a fixer-upper home. The front-yard was so ugly-full of weeds and bereft of grass- that it made people laugh.
We laugh at how broke and crazy we were. We lived a Spartanesque life for a while. It allowed us to begin paying cash for cars and to sell a fixer-upper for a nice profit. Later on we began to pay cash for vacations, education, and emergencies. Now we rarely buy anything on credit or with a contract. We pay as we go and laugh at ourselves all the way to the bank.
Living frugal might mean a little discipline (and laughs) now, but it will pay huge dividends in the not-so-distant future.
(Photo courtesy freedigitalphotos.net)
Have you ever tried to water your lawn or garden with a hose that had a
kink in it? Frustrating, isn't it. Water barley trickles out the
hose, doubling your time to water the lawn. And the longer the hose is
kinked, the more pressure builds creating holes in your hose. Now you
have a hose with kinks and holes in it. The end result, is a soggy wet
mess with minimal results. You might be thinking, "Duh!
Un-kink the hose!" That would be the obvious solution. Then water
would flow freely to my garden, bringing me an abundance of fruits and
veggatables.
What about our financial hose? What happens when a kink blocks the flow of our money: overspending, bouncing a check, credit card debt, or a bad investment. Un-kink the hose!
Here is how to un-kink the hose: Learn and then do the financial basics of saving, planning, living within means and openly discussing family finances.
Abundance flows from a clear financial hose. Un-kink the hose!
(Photo courtesy dan)
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