Tuesday, April 1, 2014

Step 4 - fearless inventory -ouch!

 Made a searching and fearless inventory of our checkbook, bank accounts, credit card debt, etc.
to see where we stand financially. 

This is going to hurt. If you were a business, and you didn't take inventory once or twice a year, you would lose everything. You wouldn't know where your money is going. You wouldn't know what to cut out or when to expand. You would be blind. 

It's 2014 - sit down and go through your budget.  It's good timing too, since we will all be filing for taxes soon. Look, I know it sucks. But it's one of those things we grown-ups have to do. Look for the flaws in your budget - as well as your, your stinking thinking.
  • You need to know why you think the way you do.  
  • Is it jealously? 
  • Is it Envy?
  • Is it the way you were raised? 
  • Why is it, you feel you NEED so much?  
  • Why aren't you more patient in waiting for the things you want? 
  • Why do you need to have it all now?  

 You really need to do this - to sort out this new life you will be embarking on - think of it as a new adventure you are planning -  More adventure than snorkeling off the coast of Uepi Island (Soloman Islands) Okay that is a stretch. 

snorkeling off the coast of Uepi Island (Soloman Islands)

You know how misery loves company? There are others out there, who are looking for a way out of the rat race. Find them and be miserable together.  NO, no no no - I'm just kidding. However, do try and associate with those who share the same desire, to get off the fast track.  
And then, go out there - PREACH and spread the word among the Joneses. 

Saturday, March 1, 2014

Step 3 - turn our lives over to frugal living

3. Made a decision to turn our will and our lives over to the care of frugal living, and voluntary simplicity or die trying. 

Okay I don't really mean "die trying". But you do need to Die to self. 

Self:  I would love to get that farm sink for my kitchen. It looks so nice plus no one in the neighborhood has that and I would be the first. 

Your frugal will: The farm sink is really neat and I would love to have it. But I just can't see paying that much when there are less expensive sinks available and are just fine.  Perhaps when things become financially better I could change it out - when I do, I promise that I will donate my old sink for someone who might be in this same position I am in now. 

Wow, what a wonderful world that would be.  I believe with the exception of the Rockefeller's and the Carnegie's, this is how regular people used to live and THINK. There is nothing wrong with that. Who said you have to have it all, right now?

YOU need to make that decision. Don't let it be a decision made by your employer or the bankruptcy attorney, or your credit card bills. Do it while you still have some leverage and some wiggle room. If you don't - well, you can still make that in-voluntary decision but lets hope once you get out of the hot water you are in financially, you won't go back to your old ways.  

I actually was raised in a upper middle class home. But my parents were frugal to some degree. They could afford all their toys. My dad retired in his late 40's.  They bought all their homes with cash, and their vehicles.  When I was executor of their estate I was shocked, at how they had no bills except for the normal monthly obligations - ie. utilities, insurance etc.  

I was once a Nanny for a family from Sweden. They were extremely wealthy. I watched them how they related to money and "stuff".  In spite of their wealth, they were frugal. Sure they took their trips to Sweden to visit family - everything was paid in cash. (Except for their home)  Their cars were paid in cash.

I was very impressed by this wealthy family and how they related to money in a healthy way. That is why rich people are rich. They don't throw their money away making purchases they cannot afford. When will the rest of us learn this?

  "Stop Trying to impress others -
 They are more screwed up than you think"