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How Does Newton’s First Law of Motion Relate to Personal Finances?

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blog-image-couch-potatoNewton’s First Law of Motion essentially says this:  An object at rest tends to stay at rest, and an object in motion tends to stay in motion, unless some outside force is applied.  For example

  • If you don’t exercise, you won’t lose weight or gain muscle.
  • If you don’t ask someone out, you won’t go on a date
  • If you don’t talk with your spouse, you won’t have a relationship (whether or not you stay together)
  • If you don’t show up for work, you won’t get paid

Not all of these are perfect comparisons, but hopefully they illustrate the point.  If you want to save more money, get out of debt, build wealth and give more, you’ve got to get in motion.

Get intense.

Get angry.

Debt, laziness, and apathy are stealing your hard earned resources from you and your family. (Click to Tweet!)

“That’s all I can stands, I can’t stands no more…”  Popeye

This Will Take Olympic Style Intensity

Couch potatoes need not apply here.  We need an Olympic sized work ethic to make this work!  It takes:

  • intense focus
  • drive
  • clear objectives
  • a finite timeline
  • practice, practice, practice (or work, work, work)
  • time
  • someone to keep you fired up (a trainer or coach)

Don’t get me wrong, you need to have down time for rest and restoration, but you can forgo the week-long vacation in the Bahamas until after you have reached your goal.

Keep the Pace Steady and Your Eye on the Prize

In the well known fable of The Tortoise and the Hare, the tortoise wins the race because he keeps moving steadily in the direction of the finish line. The hare loses because, even though faster than the tortoise, he decides to take a nap instead of continuing toward the finish line because he assumes the tortoise is too slow to ever win.

The couch potato loses the race. (Click to Tweet)

The Wise Words of King Solomon

My son, if you have put up security for your neighbor,
    if you have shaken hands in pledge for a stranger,
you have been trapped by what you said,
    ensnared by the words of your mouth.
So do this, my son, to free yourself,
    since you have fallen into your neighbor’s hands:
Go—to the point of exhaustion—
    and give your neighbor no rest!
Allow no sleep to your eyes,
    no slumber to your eyelids.
Free yourself, like a gazelle from the hand of the hunter,
    like a bird from the snare of the fowler.  Proverbs 6:1-5 (NIV, BibleGateway.com)

 

[Cue theme from the film Rocky….]

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Put Your Money on a Schedule and Give it a Job Description

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blog-image-budgets-failPlanning is not second nature for all of us, and neither is making a budget, basically a plan for your money. They are really disciplines or habits that must be developed through practice.  Habits and disciplines can’t become ingrained without regular repetition.

The main reason budgets fail is we think we only need to do them once. (Click to Tweet!)

Put Your Money to Work For You

Think of your money as an employee at a company.  What happens to employees who show up late all the time or constantly make excuses for why they can’t come to work?  They usually lose their jobs.

Now think of a budget as a work schedule and job description – it is what tells your employee (your money) when to be at work and what to do.

I realize this is not a perfect analogy, but it is one that most of us can relate to.  When I worked for the government I had to be at work by 8:10 am Monday through Friday.  In order to do that, I had to be up by 6:40 am.  I do not naturally get up at 6:40 am.  Therefore I had to discipline myself through repetition to get up on time in order to get to work on time.

Without a set schedule, I didn’t have a reason to create the discipline.  Without adhering to my schedule, I probably would not have been as effective an employee, and, let’s face it, would eventually have been fired.

It’s the same with money.  Without a schedule and job description, your money doesn’t know when to come and go, and definitely doesn’t know why. (Click to Tweet!)

Try writing down every purchase you make in the next week in a small notebook.  You will probably be amazed at what you discover about your spending habits.  You are most likely spending more money than you thought.  You have an employee without a schedule, who doesn’t know what their job is, so they are just running amok wreaking havoc in your life.

Use a budget to give your money (your employee) a schedule so it actually shows up to work for you, and a job description, so it knows what it is expected to do when it shows up.

Doing a Budget every month is key, and as with all habits, it becomes easier the more you do it.

 

Resources for Creating & Maintaining Budgets

The Truth About Budgeting, article on daveramsey.com

EveryDollar from Ramsey Solutions

Basic: Budget and manual expense entry (Free) / Plus: Link financial institutions to pull in expenses automatically ($99/yr)
everydollar.com

This is the online budget tool created by Ramsey Solutions, and requires an annual fee for automated features provided for free by other services like Mint.com, but before you dismiss it because of the cost, realize that this online tool is not going to bombard you with ads for credit cards, mortgage rates, car loans, bigger better deals, etc.  It also follows the concepts outlined in Dave Ramsey’s Financial Peace University course, so you know exactly what you are getting.  (And while they do take Visa and MasterCard DEBIT cards, they do not take CREDIT cards of any brand).

Mint.com from Intuit (think Quicken, Quickbooks and QuickenLoans)

Free, but comes with targeted ads for financial products and services
mint.com

If you can ignore the targeted ads it pushes to you, Mint can be a very useful tool for budgeting and tracking expenses, and includes numerous charts and features to help you analyze your spending.  It also has a fairly smart algorithm for categorizing your expenditures, making it a little easier to see where you are spending your money.  It can tend to have issues staying connected to your accounts, so it requires a minor amount of maintenance and patience in that respect.

Budget forms from Ramsey Solutions

Downloadable Forms with Instructions

For those of you who aren’t as willing to budget online, Ramsey Solutions provides some great forms with step by step instructions to get you started doing your budget the old fashioned way.  On paper.

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No One is a Financial Island

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blog-image-financial-islandSome people just have all the luck and skill and become rich all by themselves.  Feels that way sometimes, right?  Well, there’s nothing further from the truth.

No one becomes wealthy in a vacuum, by themselves, or on a deserted island.  Click to Tweet this!

Think about that image for a second.

An island.  By yourself.  Think Tom Hanks in Cast Away.

Just as no one has become wealthy completely on their own, none of us can become financially secure on our own.   Whether formal advisory boards, like many wealthy people have, or more personal relationships with friends and family from whom we seek advice, we all need help from other people in our financial  struggles and successes.

The Good News  

You probably already have someone in your life who can or already does serve in this capacity.  They are the person who holds you accountable for your financial decisions.  They are the ones who call you out when you miss a utility payment because you just had to have the newest iPhone.

They are called an accountability partner.

The Bad News

You are going to experience some painful reality-slaps.  You must listen to what your accountability partner is telling you, and be honest with yourself about what they reveal.  If your accountability partner never makes you uncomfortable, never ruffles a few feathers, then they aren’t doing the job.

Married Couples

Guess who your accountability partner is.   It’s your spouse.  (I didn’t say they had to be perfect or financial whizzes).

One of the leading causes for divorce in the U.S. is disagreement over finances.  One of the other leading causes is lack of communication.

Guess what – regular (say monthly) financial discussions could not only save your marriage, but is likely to improve it overall.  Regular financial discussions are communication.  If lack of communication leads to divorce, then any increase in communication is likely to prevent it.

Never having been married, I don’t have much practical advice to offer on how to communicate better with your spouse, other than this:

If you want to have more communication, you need to make time for more communication.  Together. (Click to Tweet this!)

If you are having trouble communicating with your spouse in general, seek some help.  This could be simply spending time talking with a more experienced married couple or more formally meeting with a marriage counselor.

Singles

So, what do you do if you are single, meaning no spouse and not living with a significant other?  (For purposes of this discussion, your significant other would take the place of spouse in the married couples section above).

Who do you pick as an accountability partner?  Scratch that – how do you know who to pick?

Great questions.

How do I know who to pick?

The person you pick needs to have certain qualities.  Some essential qualities are listed here to help you get started, but feel free to add your own.

  • They are trustworthy
  • They have unquestionable integrity
  • They are comfortable saying “No”
  • They will never stop challenging you to try
  • They will encourage you even when you fail or experience set backs

Who do I pick?

Now that you know the qualities of the person you are looking for, it is time to make a list of all the people in your circle of friends and family.  It can be helpful if you use index cards, writing one name on each card (disclosure: this idea is borrowed from Jon Acuff’s latest book, “Do Over“).

Follow the steps below to process these names, and keep in mind that this is not a good vs. bad exercise, you are merely narrowing down the people whom you would trust the most with your finances (you do the same thing when you pick who you want to go with on vacation):

  • Write one name per card
  • Just write the name and move on to the next card
  • Take the pile and one by one place each into one of two piles, potential accountability partners and not
  • Be honest with yourself, and trust your first instinct
  • Take the potential pile and use the qualities list from the first exercise to check off the matching qualities (using a numbered list with check marks is fine)
  • Refine your pile by keeping only those with the highest number of matching qualities.
  • Which one would you most want to be your accountability partner?
  • Call them and ask them if they would consider this role in your life

 

Wrap Up

Plans fail for lack of counsel, but with many advisers they succeed. (Proverbs 15:22)
(Tweet this!)

Guess what?  None of us are limited to only one accountability partner.  Married couples can and should reach out to other couples and other good counsel to round out their “advisory board.”  Singles should look to friends, family, and even others in their stack of potential names and ask for advice.

The proverb quoted above states with many advisers we succeed, but left to our own devices our plans will certainly fail.

In order to succeed in our personal finances, we need the help of others.

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Work. Think of it as your own personal super power.

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“The greatest asset you have is your ability to earn” – Dave Ramsey (paraphrased)

 

Somehow we have come to see work as a necessary evil instead of the gift that it is.

Some root causes for seeing work as a necessary evil:

  • Many of us are not doing the work that we are best suited for
  • Work is actually plentiful enough in our country that we take it somewhat for granted
  • We tend to think we deserve to be paid more, while believing we are actually worth less (or, sadly in some cases, worthless)
  • We view work as being all about our own well being, instead of working to help others
  • We have buried ourselves in so much debt that we trap ourselves in jobs we hate (or is it that we come to hate the jobs we have because we don’t have the freedom to leave?)
  • Some of us are just plain lazy

So what do I mean by work being a gift?

Think of your favorite super hero.  They all have some special power or ability that we identify with and wish we had.  But those of you who know your super hero’s story, know that their special power comes with a price, something they must struggle with, but are willing to because they have the ability to make an impact in the lives of others.

Your work, your ability to earn, is your own super power.  Yes, it comes with a price (you have to “work”), but the rewards far outweigh the price.

Consider the following rewards for doing your work well:

  • Working hard generally leads to being paid more
  • Working is the only way to earn enough to get out of debt
  • If nobody worked, you would starve to death, or die of some lame disease because no one worked to cure it
  • Doing your work well improves not only your life, but the lives of those around you
  • Work is a gift from God (Adam and Eve were charged with taking care of – “working” in – the garden of Eden).  It only became hard after they messed things up and were banished from the garden.
  • Working hard makes leisure and rest that much more refreshing and enjoyable
  • Being known as a hard worker will get you hired twice as fast as a fancy degree, high GPA, or even pedigree in most places
  • Doing your work, again, creates the opportunity for you to change lives (are you getting this?)

Brother Lawrence was known to sing and worship while doing the most menial of tasks – he viewed work as worship, something to be done well simply because it had been entrusted to him by God.

Work hard.  Get out of debt.  Find the work you were meant to do.  Do it well.

It might even be fun.

 

 

 

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Save more money, stop spending so much, get rid of debt, and build wealth

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So, how do I save more money, stop spending so much, get rid of debt, and build wealth?

First, you have to work.  Hard.

You can’t go anywhere if you’re not in motion in the first place.

Second, you’re going to need some help

  • If you’re married or otherwise in a committed relationship, make a plan with your spouse/significant other and work together to see your plan through.  Doing this the right way might even improve your overall relationship!
  • If you’re single like me, find someone who is willing to work with you and be honest with you.  This person is often called an accountability partner.

 Third, you need to have a plan (often called a budget).

Think of it as a fence with a gate – keeping your sheep from straying away, but allowing them to come and go as you allow them to.

 Fourth, you’ve got to rev up the intensity.

Rocky didn’t win because he sat around wishing himself into shape – he trained.  And he trained hard.  Get yourself a theme song if that helps 🙂

Fifth, allow some room in your plan to have some fun and blow off some steam.

All work and no play makes Jack a dull boy.  Allowing yourself a little fun will also remind you why you are doing this in the first place…so you can do more fun things later.

 Sixth, consider giving more as a goal to inspire you along the way.

Giving more can really change people’s lives in some really cool ways.  Guess what?  Giving more will definitely change your life in some really cool ways as well!

I’ll cover each of these in more detail in future posts, so stay tuned!

For more really great information right now on saving money, paying off debt, and building wealth check out Ramsey Solutions and if you are really serious, consider taking a Financial Peace University class near you.

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The Fence and the Greener Grass

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The grass is always greener on the other side of the fence.  Or so the saying goes.
But what happens when we actually get to the other side?  Most of the time, we discover that the only thing that has changed is the view, but many times we also discover that the way of return is blocked.  And the grass sure looks greener on the other side (if you’re still with me, that’s now the side we just came from).
Those in relationships, whether married, cohabitating, or long time couples, may consider the single life “greener” from time to time.
One of the ways being single seems greener is:
Not having to answer to someone when I come home every night.
But consider the view from the other side of the fence, the view of the single person:
I have no one to answer to when I come home every night.
Not looking so green now, is it?
The point is, before you actually jump the fence, try to imagine how the other side views your grass, and just maybe your grass will look a little greener.
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Digging out

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So I  realize I haven’t posted here in a while.

I’ve been buried by stuff I’m working on,  work I’m doing, making a living,  and literally the stuff that has taken over my living space.

I’ve also been buried under uncertainty, doubt and the mother of all gravediggers, fear.

But I’m digging out from under, slowly getting rid of the accumulated stuff in my condo, pushing past the fear, and quote honestly,  getting over my foolish self.

My goal is to post at least once a week (for now).  To share how I have simplified my life thus far, as well as share information on personal finance, useful apps for managing your personal and financial information, and how to do it on your own from the perspective of a single person.

See you all next post!

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Financial Peace University and Legacy Journey Classes

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1. Financial Peace University

Class starts Monday, September 14, 2015 @ 7pm!

This course gives you the tools and resources to change your financial picture and change your life as well.
Come to the first class free of charge to check it out.  If you decide to continue the course, we can order your materials that night (cost for materials is $100).
Sign up for the class online or check out Financial Peace online to learn more.

2. Legacy Journey

This is the follow up to Financial Peace University, and focuses more on building wealth, giving and leaving a legacy.
As part of this course you will receive a DISC profile and a voucher for a free will from U.S. Legal Forms.  Find out more about Legacy Journey online.
If you or anyone you know might be interested in this course, please contact me.
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Letting Go: The Power of No

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lettingGo_logo-02The Power of No

In the process of letting go, there is a key word that we need to restore to our vocabulary.

That word is “no.”

No lets us steer clear of accumulating more stuff.  No lets us set boundaries in our relationships with others.  No lets us break bad habits, like drinking, eating, smoking and many others.

Maybe we just need practice saying no in front of a mirror, or just in a quiet place by ourselves, or perhaps silently in our heads as we walk through the shopping center or have the urge to satisfy one of the bad habits mentioned above.

For a humorous and fun example of the power of saying no, I have included a video clip from a movie that I watched recently called “Seven Psychopaths.”

The scene starts slowly with Christopher Walken’s character walking out of the desert to a small diner, so hang in for about 30-40 seconds until the dialogue starts.

(Disclaimer:  there is some offensive language at the tail end of the clip, so stop playback at the 1:20 mark if you do not wish to hear it.)

I love this scene.  Walken’s delivery is how I imagine myself saying “no” to many things in my life that need to hear it.

Our culture has been so obsessed with saying “yes” to everything that the word “no” can have a  truly shocking effect.

Of course, please use this new-found power wisely and not indiscriminately, and by all means share it with others!

 

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Quote: Richard Rohr

Quote

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“Success has very little to teach us in the spiritual life, but failure and fiascoes are great teachers. Continual experience of so-called conversion teaches us little, while sin is a great instructor. We learn much more from our pain than from our pleasure. We learn much more from letting go than from holding tight.”
– Richard Rohr, Simplicity: The Freedom of Letting Go