[Hey guys! Re-sharing this post from I Dream of FIRE back in the day because not only is it just damn good, but it’s also something I’ve never stopped thinking about ever since first reading it… I see these “desire paths” everywhere now and they’re so fascinating! See how many you can find in your community!]

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Near my house there are two well-worn dirt paths through the grass.

The first cuts just a dozen feet from one sidewalk to another, and the second travels down a small slope to meet up with an asphalt park trail below.

I live in a master planned community, where the roads, trails and sidewalks are meticulously designed and maintained to direct travelers along a predetermined route.

Yet the people who take those dirt paths have a different idea.

Anywhere you walk, you can almost always find these bare dirt paths leading away from the pavement. They may be a few feet long or hundreds of feet, but enough people have taken this same unofficial route that it has become an obvious option – the proverbial road less traveled.

We often just call these shortcuts – and indeed Wikipedia suggests they are often “the shortest or most easily navigated route between an origin and destination” – but they have an official name in the urban planning lexicon: Desire paths.

Desire paths are not created by design; rather, they are the natural result of people who look around and see a better way to get where they’re going. Over time, as these trailblazers prove this new route’s success, the path becomes visible even to those who wouldn’t naturally think to take it. Now they can see there is another way, and they can choose to follow it or stick with the more conventional path.

Clearing The Way

I heard about desire paths on the 99% Invisible podcast and was immediately smitten with the name and concept. The phenomenon originates in urban planning, but it also crosses into technology. Twitter’s hashtags and @ mentions were not functions created by Twitter’s developers, but rather conventions it adopted after seeing how its users were communicating with one another.

It’s also a perfect metaphor for the FIRE movement.

What we’re seeing now with the proliferation of personal finance blogs and podcasts that have a financial independence and early retirement theme is a digital desire path. Enough trailblazers have proven there’s a faster way to get where they are going – a shortcut to retirement – and we can choose whether to break from the expected path and follow their lead.

Is that the right choice for everyone, however? Of course not.

But there are some who spy that developing shortcut and think, “I’ve got better things to do with my time than take twice as long to get where we’re all going.”

The Pioneers, The Early Settlements, And The Railroad

Perhaps the most famous desire path in the U.S. is the Oregon Trail. From 1840-1880, nearly 400,000 people loaded up wagons and headed west to a brave new world.

“As the Oregon Trail evolved, thousands of wagons wore ruts into the ground that acted as an ad-hoc road for the settlers who followed. But they didn’t follow a single solid path. Rather, wagon wheels left ruts across the country as pioneers found various shortcuts and easier routes along the way.” –  Smithsonian Magazine

There were desire paths sprouting from desire paths – just as there are many paths to early financial independence! (By the way, do you know where The Oregon Trail officially began? Independence, Mo. How’s that for an FI tie-in?)

So obvious was the success of The Oregon Trail, along with other similar trails, that it became a more permanent path that future travelers would take as riders on the Transcontinental Railroad.

The history of the financial independence/early retirement movement is very similar. As Early Retirement Dude writes in his brilliant “The History of the FI/ER Movement (2.0)”:

“It hasn’t been that long since anyone who was pursuing it was operating in a near-total vacuum: one where you had to collect and assemble your plan’s components without much, if any, outside help… You’re living in a perfect storm: a moment in history when circumstances have never been more favorable for achieving financial independence and early retirement.”

He talks about the early pioneers whose footsteps today’s FI seekers walk in. People like Amy Dacyczyn, Vicki Robin, Joe Dominguez, Jacob Lund Fisker, and those posting on early-retirement.org. Their contributions in the form of “The Tightwad Gazette,” “Your Money or Your Life” and Early Retirement Extreme were the original waypoints along the trail where travelers could stop to rest and commiserate. They inspired others to keep going.

There’s No Stopping an Ingenious Mind With a Deep Desire

Later travelers of The Oregon Trail created alternate routes from the original path to shorten the trail or to get around obstacles. These “cut-offs” would themselves become established options for those who came behind them.

In the FIRE community, people like The Mad Fientist guide people in tax optimization and Roth conversion ladders – laying out cut-offs for financial obstacles others just accept as part of the journey.

Many of the voices in the personal finance community are software engineers and entrepreneurs – people whose nature is to create something from nothing. Such was the constitution of the pioneer stock, who were undeterred by what was because they saw what could be.

The FIRE writers, bloggers, podcasters, and forum members are the equivalent of the Transcontinental Railroad. They offer a proven, relatively safe, way to reach an endpoint at a speed once thought impossible. Big names like Mr. Money Mustache help spread the word and get curious people thinking about what such a trip might be like. His “The Shockingly Simple Math Behind Early Retirement” article is essentially a railway fare board, showing people the price of a ticket to freedom and a life they currently only dream about.

But, of course, there are many vehicles and routes to financial independence. Not every path suits every person or every situation.

Which Brings Us Back to Desire Paths

We may share many of the same predictable, paved roads along the way. But each of us has a chance to pick up our head, look around, and decide which way we’ll go. For some, that rock-solid sidewalk with its well-defined edges and overhead lighting is soothing and secure.

For others, the allure of a well-worn path and a little adventure is a chance too hard to pass up. And then there are still those who envision an entirely new way to their dream destination, whose desire to create one may someday inspire others to follow.

This passage from Robert Frost perhaps says it best:

“I shall be telling this with a sigh
Somewhere ages and ages hence:
Two roads diverged in a wood, and I –
I took the one less traveled by,
And that has made all the difference.”

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I Dream of FIRE is written by an early 40s married father of two adult stepchildren and a 10-year-old daughter. He works in financial education and coaching, and explores the realities and challenges of seeking financial independence with a family.

[Desire path up top via Duncan Rawlinson / Others by the author and Google Maps]

[This post, Desire Paths: The Unconventional Way to Live Your life, was first published by Guest Author on Elite Edge Money]

“When I was a young man, I wanted to change the world.

I found it was difficult to change the world, so I tried to change my nation.

When I found I couldn’t change the nation, I began to focus on my town. I couldn’t change the town and as an older man, I tried to change my family.

Now, as an old man, I realize the only thing I can change is myself, and suddenly I realize that if long ago I had changed myself, I could have made an impact on my family. My family and I could have made an impact on our town. Their impact could have changed the nation and I could indeed have changed the world.”

My great-great grandfather wrote this passage! Just kidding, I found it on the internet somewhere. (But since I’ve searched for hours and still can’t find the true source, you can’t say for certain that it wasn’t an old relative of mine back in the day .) Many sites credit this passage to “the Unknown Monk.”

Regardless of who wrote it first, what a cool reminder that big changes begin with self-improvement and small personal habits. Things naturally pick up steam from there and compound over the years to a much larger scale.

Pay Yourself First, Even If It’s Starting Small

A friend of mine here in Los Angeles said something similar to the passage above. But his context was about money and personal finance.

My friend is in his 50s and is the classic case of “income rich / asset poor.” He earns an admirable annual income — more than $350k per year! — but hasn’t accumulated very many assets in life. He is only now realizing he will have trouble retiring without making some pretty drastic lifestyle changes.

He started out with big ideas and goals… As a young college grad he dreamed of building a successful business and selling it for millions of dollars. He wanted to have a big house, vacation homes, and provide a rich life for his family.

When his dreamy business plan didn’t work out, he focused on trying to get a job with a massive salary. He thought that with a huge annual income, he’d certainly become a millionaire. But while his salary grew and grew, so did his cost of living. His kids adopted expensive tastes and were (and still are) large financial liabilities.

My friend realizes now that if he had learned some basic saving techniques at a young age, he could have built extreme wealth throughout his life. Paying himself first — just a small amount from each paycheck — would have compounded over time, and he certainly would have been the multi-millionaire he set out to be. His kids might have even been, too.

Being a millionaire starts with learning how to make, save, and invest $1. Then repeat that process a million times.

Donations and Volunteering: Start Small

I think the majority of humans want to be as generous as possible. Sure, there are takers out there, but I believe the majority of people in the world are givers — or at least desire to be.

One thing I’ve noticed though is that people tend to hold back their giving, until they can give in larger ways…

• Can you spare 100 bucks to give to charity? —> “I could, but I’d rather wait until I’m a millionaire and give a $10k donation. A larger donation later will have more impact.”
• Can you volunteer at a vaccine site next Saturday for a few hours? —> “Well, my few hours probably wouldn’t make much of a difference… But once I’m retired I’ll have lots of free time up my sleeve, so I plan to volunteer a bunch!”

I’m not writing this to guilt people into giving more. I’ve had this type of mindset, too! Just like the unknown monk story, I think many people have grand dreams to save the world, but instead should start small and locally. Giving has a ripple effect!

Big Changes Start From Within!

As you’re going about your day today, working toward your lofty goals in life… keep in mind that massive changes begin with personal development.

What small steps are you taking to change yourself today?

Happy Friday my friends,

Love, Joel

[This post, The Unknown Monk, was first published by 5am Joel on Elite Edge Money]

So lots of GREAT entries into our book giveaway last week!!!

Y’all made some good money on the weekends!!

Wanted to share a handful of my favorites today ‘cuz so many of them were so interesting and hopefully might spark some ideas over there for ya… Even though you might have to wait a while until the evil C passes to be able to do some of these, womp womp…

Zodiac Hustles only for now! Lol…

Before I forget though, let me announce our three lucky winners of Chris’ new book that he was so kind to offer up for us last week: The Money Tree: A Story About Finding the Fortune in Your Own Backyard

1. Sara
2. Kenya
3. Nathan aka Millionaire Dojo

Congrats, guys!! I want an email after you make your first $1,000 off it! ;)

Now onto some of the cool things y’all have done for money over the years…

The “movie extra” and “yacht” ones sound dope!

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Music Gigs!

Just a few weeks before the virus forced us into a world-wide quarantine, I had my best weekend pull. Between tips, CD sales (yeah we still push those discs) and my standard gig rate I made $1,100. About 10 total performance hours Friday through Sunday which comes out to $110.00/hour.

Music’s been my weekend gig for the past 10 years. Normal weekend would bring in $150 to $300 dollars. A $450 weekend is usually considered ‘great’ in my world!

– Robert Feliciano, AminSafari.com

Here’s one of his music videos – La Rumba…Was waiting for Antonio Banderas to step in! ;)

And then here’s a side hustle we’ve featured before on the blog that goes a little more into what it’s like playing in a band (and making money from it): Side Hustle #48: Playing in a Band

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Sodding Neighbor’s Yard

I made $1,800 sodding a neighbors yard a few years back. My back hurt for the whole week but it helped get us out of a financial whole. Well worth the pain and all it took was asking neighbors if they had any work they needed done!

– JB, UpwardsofTwenty.com

That last line is key: “asking neighbors if they had any work they needed done!” Any of us could literally walk out our doors right now and do this if we wanted :) Standing 6 feet away, of course…

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Renting out your backyard!

the most I ever made was $3,000. We rented out the backyard for parking during the State Fair held a few blocks away. We undercut the Fair parking price and were only a block further away! Literally I found a fortune in my back yard!

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Flea Market Flipping!

The most I ever made over a weekend was $1,800.00. This was approximately 4 years ago when I started selling on the Amazon and eBay platforms.

I was at a flea market and found a weird looking video game made for a PC. I looked up the comps on Amazon and saw that it sold for $70.00. It only cost $8.00, so I asked if the gentleman had any more of these types of games. He said he had 26 more of the exact same one and he would sell them all for $5.00 each! Great score and they all sold within 3 months.

Here’s a great site around this if anyone wants to up their game: FleaMarketFlipper.com. Rob’s been a professional flipper since 1996 (!!), and now’s got his whole family involved :) Super great guy and shares all his secrets/tips through his blog and courses…

And then here are similar hustles we’ve covered over the years as well, but more *product* specific

• Side Hustle #79: Flipping Guitars! ($10,000/year)
• Side Hustle #34: Flipping Video Games (3x profit on avg. per game)
• Side Hustle #33: Flipping Collectible Sneakers ($50-$300/shoe)
• Side Hustle #31: Flipping Collectible Watches ($2,000-$7,000/watch)
• Side Hustle #54: Flipping Junk Mail! ($14+/coupon)

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Corporate Workshops

I made $10,000 for a one day workshop on using Mind Maps for organizational brainstorming and communications. Mind Maps are used to gather, organize and communicate information visually which helps to retain it more. I never had and not since made that kind of money at one time.

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High-end Waitressing

Serving food definitely led to the most money I’ve ever made in a weekend. Working at high end restaurants in Miami led to around $500 a night. It was fast-paced work, but man, did it ever pay.

One could choose to work at the clubs rather than the restaurants and easily bring in $7k in one night in tips, but that required wearing lingerie and putting up with misogynistic jerks for about 12 hours a night and I just couldn’t go there.

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eBay selling

The most I ever made in a weekend was about $750. I was at a garage sale and these people said I could have this box of stuff if I wanted it. They were going to throw it away, so I threw it in my car not thinking much about it.

When I got home and started looking up the contents of the box, I found that I had several pieces of rare, vintage cb radio equipment. I put it all up for auction on eBay and couldn’t believe how many people started bidding.

I hadn’t thought much about selling on eBay at that point, but after that experience I decided to start doing it as a side hustle and made about $10k last year.

– Nathan, MillionaireDojo.com

$10,000 a year since paying more attention to it – nice!

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Movie Set “Extra!”

The most I ever made in a weekend was about ~$1,500 as an extra on the set of the movie “Collateral” (starring Tom Cruise and Jamie Foxx).

I was in college at the time and it was over Thanksgiving weekend and I had not planned on going home. My friend had heard about this “open-call” for extras and we went to check it out! Well, as things sometimes go, they needed females, not males. So I suddenly found myself in a weird fake “club” scene that was built in a cold warehouse.

We filmed shot after shot after shot, which equaled to over 12 hours of work some days! Some major highlights were:

1) The hourly rate was like… $15, but doubled at 8 hours to double-time, then triple time by hour 14? I hope that math comes out right. :)

2) I got to see Tom Cruise and meet Jamie Foxx! Jamie Foxx was much more sociable and came out to hang out with extras before and between shots. Tom Cruise did not, his body double would stand for hours and then he’d come in right before the shot.

Either way, super cool and more money than I had ever made in a weekend to date!

So cool :) And another hustle we’ve featured here on the blog recently – Side Hustle #78: Being a TV/Film “Extra”. I’d jump on this in a heartbeat if I didn’t have to keep some kids alive, haha… Super fun sounding, and from what I hear you can still do a lot of stuff on the down times while on set. Perfect for stacking hustles!

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Making/Selling Jewelry

The most money I ever made over a weekend was $800. I make jewelry as a side hustle and sold that much at a local festival one weekend.

– Amy J.

Another hustle we’ve covered before, only this guy focuses on COIN jewelry :) Side Hustle #70: Making Rings and Jewelry From Coins!

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Working on chartered yachts!

In my early 20’s I worked on charter yachts. My biggest weekend was a 3 day hire, base pay $500. Per day. Then came the tip- my portion was $2,100.00! Which of course I didn’t know any better and probably bought lots of drinks with!

– Caroline

(I asked if it was like that reality show, Below Deck, and apparently it is ;) “In ways, yes. A very small world of people who work in yachting – Who was sleeping with who – Which guests were horrible, etc. It was definitely a glimpse into a whole different world!”)

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And then perhaps the entry that made me smile most :)

The most I have made on the weekends are: Long kayak trips, many family dinners, walks in the woods, wine parties with friends, and time spent with my aging parents. All priceless!

In the last 10 years, I have not made any money on the weekends. I believe in striving for Work/Life Balance and after joining the FIRE movement, I have conditioned myself to work hard on weekdays and have been able to work two jobs (one career and one side hustle) without having to work weekends.

I read somewhere once that no one requests to have this put on their gravestone, “I wish I worked more!”. I happen to agree.

– Suzy, OTWcoaching.com

There’s def. a time for hustling, but also a time to soak up what all that hustling was done for: LIFE. And if you can manage to squeeze it in all during the *work week* regardless of your phase – even better!! Mad grinding, then mad relaxing! Can’t hate on that!

Here were a few other comments I enjoyed reading as well before we go:

• “The most I ever made was $10k when I was in real estate…” (As a former realtor of all of 3 months, I can attest to how big those payouts are! But would be a lot more fun if you weren’t at someone’s beck and call 24/7!)
• “The most I ever made was $450 after taxes when I was in the National Guard” (Here’s a post around being a Reservist if anyone was ever curious about that: Side Hustle #27: Air Force Reservist)
• “The most I ever made was $250 judging high school theatre competitions.” (That sounds fun :))
• “The most I ever made was $800 from two modeling gigs!”
• “I made $300 playing blackjack in Las Vegas. Partially made up for many less successful Vegas trips.”

Thanks to everyone who participated! Really enjoyed reading all your comments!

[This post, How people make the most money on weekends 💰💰💰, was first published by J. Money on Elite Edge Money]

Morning!

Lots of scary and anxiety-filled news going around us right now, but there’s also a lot of POSITIVE stuff happening in our community too!

Here’s a bunch of notes I’ve saved up from people killing it these past handful of months, and I just know there will be MORE coming because y’all are fierce and focused!

Don’t let this madness beat you!! Your freedom is still in range!!

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Morning J. Money,

This morning I made my final student loan payment! I paid off $86k in debt between my student loans and a car loan in four years.  Man does it feel good to be debt free by 33 (I turn 33 next month).

Cheers from Richmond VA.

– Kevin

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Hey J!

Just have to share… Sold my expensive and costly condo. Moving into a modest 4 bdrm ranch in town next door with low property taxes. Going to save about $7,500 a year and pocketed $62,000 profit. Took out a $109K mortgage. Payments are $480 a month. Retirement here I come!!

(Not really. Still enjoy working but my retirement will be less stressful when it does happen. Woot Woot!)

–  B.

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Aloha J Money!

Your emails are the first thing I read every morning and have inspired me to reach F.I.R.E by the time I’m 45 in order to pursue my passions without the 9 to 5 (or 6 to 6 in my case since I’m in the construction industry).

I just turned 37 and have $228,000 in investments between my wife and I. Three years ago we had over $60k in debt plus our mortgage and and less thank $20k in investments. I’ve now started a side hustle renting Jeeps on Turo and investing as much as I can in our Roth IRA’s, 401k’s, brokerage accounts & real estate crowdfunding through Groundfloor.com.

Thank you for the inspiration, knowledge and motivation!

Mahalo!

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I just wanted you to know that I paid off one of my credit cards!!  Now I can take what I was paying toward that one and put toward the other one!! I’m anticipating being credit card debt free by the end of the year!!  (I will still have school debt and a car loan).   Anyway, thanks for all the encouragement!!!

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Good Afternoon J. Money,

My name is Andrew Lander and I’m a Professional Voice Actor thanks to you!

I was desperately searching for a side hustle last year and landed on your “70+ Ways to Make Extra Money on The Side” article on your blog.

Side Hustle #60, featuring Voice Actor Carrie Olsen, took me on an exciting road where all I wanted to consume was everything about the voice over industry.

Feeling positively obsessed with my new life goal, I invested in one-on-one coaching, practiced day and night, and once I was told I was “demo ready” began auditioning for everything I could!

Fast-forward only 6 months later and I booked my first gig in an indie video game!

While Carrie was the guest, I want to thank you for giving her a platform to share her story that inspired me to pursue a dream I didn’t know I had.

With great thanks and many more booked gigs to come,

Andrew Lander
Business Casual Voice Overs

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Hey J,

Had to share this with someone.

Just a minor step on the road, but it’s the first time my 401k balance cracked a half-mil. :)

Have a great day!

– Gene Roberts

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J$,

I downloaded your Net Worth template in 2016 and it has quite honestly changed my life. Since then my net worth has tripled, my savings have skyrocketed, the template has grown into a massive beast of my own creation, and I actually know where my money is coming from, where it goes, and how much it makes. I just want to say thank you.

<3 $tickyWicket

P.S. When I showed the NW file to my CPA he turned giddy and said, “Oh yay!! You’re my favorite kind of client!”

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I’ve been in and out of credit card debt since as long as I can remember, but this is past year, I finally paid off all of them and am vowing not to use them for the whole year. I took them out of my wallet and put them in a safe place in my house.

While paying off all the credit cards I have managed to max out my 401k and contribute to Roth IRAs for the last 4 years! Go me! This year I’m really planning on sticking to my no credit card year!

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Hi J$; read every day but rarely post.

I picked this up from an old post of yours, but the idea is often repeated. I went on a no-spend month. Paid my house payment, power, etc BUT no going-out, entertainment, wander through the mall shopping. I filled up my gas tank on the 1st, bought some fresh fruits & veggies, eggs, and milk, and decided what I COULD spend on that month.

Milk, eggs, fruits, veggies-all okay. Otherwise, very little. I raided my freezer, pantry, friends’ brains for bright ideas, and spent less than $100 on food for the month. Sadly, I can do at least another month like this because my pantry AND freezer are still full. Walked a lot, read a ton of books, took advantage of free wi-fi; stuff like that. Paid cash when I went to the grocery/farmer’s market.

What it boiled down to was… I learned that I can comfortably live on a hell of a lot less than I’ve been spending. *shudder*. And my budget needs some tweaking, so I redirect those $$ where they will be working for me.

Like I said, I’ve been reading your blog for a long time. I’m grateful for the kinda oddball ideas you collect from all over, along with your own. I can’t tell you what motivated me to do a no-spend month but I can tell you, it was well-worth the education. Thanks again for keeping the fire burning; I’m working toward improving my finances every day!

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I started tracking my net worth in March 2013 after finding your blog – $66k. We are a little over 6 years later and at ~$450k. I’d honestly love a freaking recession so I could pile some more money in though! [Got his wish there! – J$]

– Chris, FlippingADollar.com

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We finally got to the half a million net worth mark last week! And I didn’t even know until my wife told me this weekend! Considering we met 6 years ago and at the time I had a $5,000 net worth and my wife said she had something like $30K, I’d say it’s been pretty good!

Although there was a $75K inheritance there in 2015. So we can take credit for roughly $400K in about 6 years (Still can’t believe those numbers!). Sorry, you’re probably one of the few people who can understand how crazy that sounds! I lived paycheck-to-paycheck until I hit 30 and now I’m a half a millionaire! Wooooo!

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Thanks to the Money Show podcast my life has turned 180 degrees. I went from overspending, underinvesting, and accumulating debt to being in a strong financial position.

In less than 1 year since discovering the show and the FI community both my significant other and I have paid off all our debt (totaled $49,000), put away over 6 months in emergency savings each, and now comfortably save/invest over 53% of our income.

I grew up in poverty so I hope you know that having others to learn fiscal responsibility from makes a world of difference to people like myself. My life will forever be improved thanks to the resources I’ve found such as bloggers/podcasters like yourself!

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I found an old excel file from 2008 where I was tracking my cash tips from the waitressing job I had in college (I’ve always loved excel). In that file I noted I had $3,221.13 in my bank account which was the extent of my net worth.

Today my net worth is over $215k!!! I’ve been tracking it for 2 years since finding your blog so I know how much it’s grown but it’s extra awesome to see how far I’ve come since college.

– Shawna

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I started reading your blog while I was at my last job where my boss did not like me because of my political affiliation. I became unhappy at work and I felt I had to stay because I had expenses and just “adulting” that I needed to do.

I left that job and started my own business and never looked back. I left them a 200 page exit memo, but leaving was the most freeing thing I did and I never again wanted to be in the position of feeling trapped at work.

While I was consulting I was looking for the next right fit for me. It took about 7 months which I was fine with. Thanks to your blog, I had an emergency fund and I did not need to tap into my savings at all. I was prepared to take my time until I found a role that worked for me. Usually people find the job then leave, but this place was so toxic that I felt better off not having a job than being there.

Fast-forward to today I am at such an awesome place where people are truly so friendly and love what they do. I make just over $67K from my day job of which I save 50% and just over $73K on the side of which I save 100%. (Note: Waiting for a $50K contract to be finalized which would bring me up to just over $120K in side hustle income)

You lit a FIRE under me to hustle like no other. I save, invest and challenge myself to focus on goals and how to crush them. These all kind of happened at once but honestly, waking up, reading your blog and having the right mindset is what is doing it for me.

– “Jeremy”

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J. Money –

Because of you I started tracking our net worth and we are at $750,000.

We got here through diligently saving $$$, and especially have ramped it up the past few years. My current employer matches 18% of our salary/bonus which is incredible. We have T. Rowe Price and they consistently say we are the top company out of all their retirement plans. So, that has helped me bank away $50,000 into my retirement TAX-FREE each year.

I’m hoping to hit $1,000,000 in net worth around 40 years old….. 2.5 years away! I love the articles and ideas they spur. Cheers!

Other details:

• We have $200,000 in home equity
• $100,000 in college savings
• $250,000 in retirement accounts
• $200,000 in other liquid savings (non-retirement)
• I drive a 15 year old beater (paid off) and the wife a 7 year old minivan (paid off).

– Debt Free in RVA

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And then lastly, which I now DOUBLY recommend doing:

Hey J.

Our podcast interview together inspired me to turn off social media from my life on Friday afternoon through Monday morning. It’s been great for my family. I’m going strong with it 4 weeks in a row now. Thank you!

– Andy Hill

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Keep it up everyone!!

This is the part of the journey that’ll make you GREAT!!!

Don’t stop!

[This post, Stay fierce and focused!, was first published by J. Money on Elite Edge Money]

Morning!

Before we get started on this, just have to say I really enjoyed all your feedback the other day on our Fortnite post. And many of you brought up an excellent point on it that I completely missed:

Gaming is a great way to spend *time* with friends and others!

And it’s not unlike other ways we spend money to hang out with each other either, such as meeting over lunch or coffees or spa days, vacations, etc, etc.

So I take back all my snarkiness on those V bucks, and I say if it gets you to stay connected with all your loved ones, great :) Though I still might poke fun at you for buying all those dance moves and digital clothes, lol…

Back to today’s thoughts though, been marinating on something a reader sent over at the end of last year that’s really got me thinking on how I prioritize my spending…

And more specifically, how I’d love to prioritize it in THIS way presented if at all possible!

Here’s the full note from Moneybee below in response to our New Years Resolutions post in December (how are those going, btw???? ;)) and while the entire passage is chock full of ideas, it’s the line that’s italicized that really got my wheels turning:

My goals for FY 2019 are to have a positive net worth (on track), have my total spending on gifts and donations be more than my total spending on myself (on track), spend the same or lower percentage of my income on myself as I did last year (not on track), and keep my total number of transactions below a certain number (same idea as no spend days, but you can’t game the system by doing lots of spending on the same day)(not on track). – Moneybee

“Have my total spending on gifts and donations be more than my total spending on myself”

Mannnnn… What a challenge! Can you imagine spending more on OTHERS than you do on yourself throughout the year? What a goal to strive for!!

And while it might sound unrealistic at first, what she’s actually alluding to I believe is “spending more money on gifts and donations than your ‘wants’” – which is a lot more achievable vs your entire BUDGET, haha… At least that’s my interpretation of it. You’d really have to up your game to give over half of EVERYTHING you spend on unless you don’t have a house/car/stomach/kids!

But if you just strip away your “wants” here and compare that to your monthly giving/gifting, it’s a much more achievable challenge to take on. And perhaps you’re already closer to it than you might think?

I have yet to go through my records and track it all down to the penny, but I DO know I’m currently donating to 11 places right now that are near and dear to my heart at $20/mo each (with an ultimate mission to get to 100 one day!!), which means we’re already at a solid $220 on that front and doesn’t include any other random $$$ or gifts I give away as part of my “have to say YES” strategy.

As far as the “wants” side – if we’re strictly speaking of stuff I buy for ME and no one else in our household like our million kids – there’s actually not that many things that siphon my money as they once did. I basically only spend in 4-5 categories every month, neither of which would break the bank:

• Coffee (4x a week while blogging)
• Books (1 every two-three weeks?)
• Local events (festivals, art shows, get togethers, etc)
• Clothes (only a recent thing as I stumbled across the BEST thrift store in my town and severely need to upgrade my holey attire! Minimalism has done a number on it!)
• Eating out for dinner (2x/mo)

(Notice you don’t see old coins or currency there?? That’s because I only use money from my own collection I sell off or when I get a commission for helping others liquidate theirs. If I don’t keep it self-contained like that I’d get in major trouble! ;))

So we’re probably looking at $50 + $20 + $30 + $20 + $40 = $160, and then let’s say we’re missing another $30 or so since I’m too lazy to double check everything right now, lol, and that puts us right around the $190 mark.

Which is just under the $220 of donations! Didn’t even realize that until now – wow!! I might actually already be pulling this off!

I’ll have to sit down now and really track the numbers, but in either case it’s a helluva mission to take on and had to share it with you in case you get inspired by such things too :)

And maybe you’re doing this without even realizing as well?! I bet it would make you feel super proud of yourself if you are! And possibly less GUILTY about spending on *yourself * too as I am now feeling, lol.

In any event, major props to you Moneybee for even THINKING about this and then implementing it (you guys are so good about putting others first!! I always have to remind myself!), and I thank you massively for planting this seed inside me as well :) It may look like I’m doing well *financially* in this, but I still have a ways to go *mentally* and all this helps me get there that much closer.

Now who wants to join us in this?! Maybe try it out for the rest of March and see how you do! Or hell – try to accomplish it just over the weekend! :)

You make just one extra gesture and you really can’t go wrong… But if all goes well, who knows – you might just enact some positive change! And our world needs as much of that as we can get right now.

A very blessed weekend to y’all! Thanks for always reading and encouraging!

[This post, Aspiring Goal to Shoot For: Spending More on *Donations* Than *Wants*, was first published by J. Money on Elite Edge Money]

Morning!

So the other day I randomly stumbled across this old email thread with a reader who was about to pay off her log cabin (that’s right – I said log cabin!!), and now years later I was curious to see if she ended up making it happen ;)

I shot her a note, and below are pieces from our original convo back then (April, 2016) along with those from today…

SPOILER ALERT: She did it!! And scooped up some excellent side hustles along the way…

Log Cabin Ruth, everyone!!

Hi J$!!

Love your blog and podcast with Paula! I’ve just discovered this whole “underground world” of Early Retirement/FI blogs and podcasts and I’m OBSESSED :)

I’ve been tracking every penny I spend since 2011 when I got divorced. I always thought I was really careful with money (which I’m probably better than 80% of the general population :) BUT I started implementing your “Challenge Everything” philosophy and got rid of cable entirely, slashed my cell phone bill, and now I’m working on my “food” category. If I’m about to buy a bag of gingersnaps, I’ll say to myself “Hey, I can MAKE those from scratch for 1/8th the price!”   I never thought to “challenge everything” with each food item I want to put in my cart!

I live in my DREAM home (a log cabin) and it will be paid off in 3 months!!  WOO HOOOOOOO!!  :O

– Ruth

*** 3 years later when I asked if she pulled the trigger ***

I did indeed!!!! Felt GREAT! I still live in it and rent out part as an apartment!!!

It’s pretty darn big so after paying off my mortgage in August of 2016 (WOO HOO!!),  I spent some money to convert part of it into a log cabin apartment. I first rented it out on Airbnb and had some success because well, it’s a LOG CABIN :) I then decided I could make more doing long term rentals and have had the BEST tenants!! I’m on #5 now.

I also had 34 solar panels installed (told you it was BIG!):

•  Installed Cost — $42,840
•  Cost after 30% Fed & State Tax credits — $28,988
•  SREC checks (credit for having solar) — $2,675 (yearly for 10 years)
• Projected profit accumulated after 10 years — $25,526

(AND…… I got a 10 year solar loan at 1.48% !!!!!!!! On my latest electric bill, I had a $1,400 CREDIT instead of a payment :) )

I’ve been SO excited about FI that I even got my oldest son Cody interested in it, and maaaaan did he jump in!!!  He’s 23 now and has his own successful blog (FlytoFI.com.com), podcast (The FI Show), and a handful of online courses.

He even did a 3 month book tour with Grant Sabatier!!!  He will be retiring before me *face palm* #ProudMom

Haha… that last part is the best because it just shows there’s no limit to how far you can take this stuff when you’re super excited about it! And at 23 no less (!!). Maybe y’all know of Cody and read his stuff?! (Been chatting with him a bit myself, and makes it all the much better knowing it was his mom who was the original instigator of all this, haha… What a tag team!! :))

And then here was a surprise part of our convo where she started getting into all the extra side hustles she’s been doing to turbocharge things even more…

There’s no stopping this woman!!

I also have 2 pretty cool side hustles going;

#1. CLINICAL STUDIES GUINEA PIG. I find studies that I fit the criteria for – so far I have done taste testing ($100 plus 6 bags chips), gave an opinion about surround sound car speakers ($150 plus a set of Bose earbuds), took on a women’s study (I wear an Apple watch they provided and do a daily 30 sec per day questionnaire (1 year study, $4,000), and participated in a Sleep Study (overnight stays of 10 days and nights – 3 times and 3 months apart – for $7,000).

I wrote a 3 page PDF on how to find studies that you qualify for if anyone’s interested (it’s $4.99):  https://flytofi.com/product/how-to-find-and-secure-clinical-trials-pdf/

2. LIQUOR TASTINGS – #1 question I get when I say that I do liquor tastings is… “You get PAID for tasting booze??” Ummm, no. I am the person at the liquor store handing out samples. $25 per hour (usually 3 hour shift). Perks: #1. you can sometimes keep opened bottles.  #2. I use MY credit card (and get points) to pay for the liquor and then get reimbursed by my company.

So yup – she’s definitely still on a mission and kicking a$$, haha… First with the mortgage pay off, and now onto income streams – both passive (solar panels) and not!

Gotta love it :)

And both hustles, interestingly enough, have also been featured in our Side Hustle Series over the years:

• Side Hustle #36: I’m a Human Guinea Pig
• Side Hustle #19: I’m a Sample Passer-Outer (not liquor specific, but a good review of the general field of “product demonstrators” – the technical name for it ;)))

Always something you can do to power your goals!! When in doubt, just ask what LCR would do?! (“Log Cabin Ruth!” Haha….)

Thanks for showing us the way, LCR ;)

[This post, Log Cabin Ruth & Her Fantastic Side Hustles 💪💪, was first published by J. Money on Elite Edge Money]

[Good morning!!! I want to share a powerful story by a friend of mine, and new(ish) blogger on the scene, Deanna from Recovering Women Wealth, who’s not only found her path towards financial freedom, but freedom from the devil’s work too. A beautiful, and positive!, person putting herself out there in hopes of inspiring others! Thank you Deanna!!! And huge congratulations on it all!!!]

*******

I’m looking at the graph of the pivotal money moments in my life, and it’s clear to me the life-changing events that occurred at each stage.

The story told by my money also tells of my recovery from drug addiction/alcoholism. Since getting sober, it’s not surprising my net worth has gone up.

For this girl, sobriety is sexy.

My First Relationship with Money

I started doing odd jobs like babysitting and working at the family golf course around the age of 12. My relationship with a steady income started at the age of 16 when I began waitressing. Everything I made went right out of the door on clothing, entertainment, and alcohol.

You see I grew up in a two-parent, Christian, middle/upper-class household where all of my material needs were supplied. Any money I earned was just for play.

I did not learn the value of savings, but I did recognize that money correlated to freedom. However, my desire for freedom was short-sighted as I only wanted to get out of the house (and my skin) in the moment.

When Emotional Stability is Lacking, so is Money Sense

My relationship with my Dad was not healthy growing up. He was doing the best he could and I now understand that, but he was a stressed-out salesman with a short fuse. He wanted to (and did) provide for his family, but his career became an obsession. Furthermore, my Dad grew up in a critical environment and these things have a funny way of being passed down. He didn’t have the patience for kids. I learned to get attention by getting into trouble.

My Mom was loving, kind, and nurturing. Regardless I was scarred by some hauntingly, temper-filled, memorable encounters with my Dad. As a result, I grew up believing some very incorrect things about myself.

I found solace in alcohol in my teen years. When I took that first drink, I became everything I thought I wasn’t – funny, pretty, and smart. I found the courage to be the fun-loving extroverted gal that I am. However, that courage was smoke and mirrors.

When a person is exerting all of their energy to cope with chronic stress and extremely low self-worth, money, at best, is an escape mechanism, and, at worst, used for mere survival.

The Start of Debt as a Lifestyle

Interestingly enough, my parents have always been wise stewards with their money. They saved for retirement and their children’s college education, pay cash for cars, and have no debt. Due to my rebellion against them, I learned none of this growing up.

At the age of 18 I bought my first new car with financing and you can see that dip on the graph. I ended up selling that car at the age of 21, moving to Colorado, and getting a small sum of money. For the first time, I was slightly above the line. This hippie used that money to fund a backpacking trip to Europe. #NoRegrets on that.

However, with an unreconciled past and little money sense, I quickly got back into debt and kept drinking/drugging. Getting sober wasn’t even on my radar back then.

Due to my ability to be high functioning, I went undetected as having a problem for many years. I wanted to appear normal so I maintained an outward appearance that prettily covered up the pain and suffering I was experiencing.

Bigger Debt

I got married at the age of 25. We bought a house, financed two cars, and used credit cards inappropriately. You can see the graph going way below the line in my mid-twenties. My marriage ended at the age of 27 and I was left with a mountain of debt. I filed for bankruptcy but was able to keep the house. Unfortunately, I didn’t really learn any money lessons at this stage.

My drinking/drugging waxed and waned and though I wasn’t focusing on getting sober, I even managed to have some healthy years. I kept paying the minimum payments on my debt and vowed to never go back into bankruptcy.

In my 30’s I made my way to graduate school to become a high school mathematics teacher. While my parents paid for my undergraduate education, I funded graduate school 100% with student loans.

The Beginning of the End

I excelled in graduate school but in the process, a man from my past walked back into my life and I unfortunately got back into drugs. While I graduated with a 4.0 and a promising career in education, I walked away from it to pursue a life that allowed me to use these drugs. It still pains me to write that last sentence.

I became the wine sommelier at a country club where I had worked for many years. In case you are wondering, that’s not really the best job for an alcoholic/drug addict. ;-)

Sure, I kept up the facade but I was basically getting paid to drink. Additionally, I was addicted to crystal meth so, with the combo of uppers and downers, I walked that lethal tight rope until I eventually spiraled down.

My bottom occurred at the age of 36. It’s no surprise that I was also in the biggest amount of debt of my life. I was bankrupt emotionally, physically, spiritually, and financially.

It can be a beautiful thing when a person comes to the end of their rope and there is nothing left to grasp at. After some disturbing visions and the stark reality that I was going insane, I finally surrendered, admitted defeat, and asked for help.

I left the destructive relationship, quit drugs, returned to faith, and committed to a life of sobriety.

Getting Sober & Digging to Get Back to Broke

The early years of getting sober were really about reconciling with my past. Reconciliation includes looking at my part in things, making amends, forgiving others, receiving forgiveness, and healing relationships.

However, in remembrance of my vow to not file bankruptcy again, I made some financial changes. I was able to reduce my expenses, stop adding to the debt, and stay afloat financially.

About four years into my sobriety I wanted to gain complete financial peace. I had peace in every other area of my life, but not yet with my money.

A woman from my church helped me to get on a budget. Then I started listening to Dave Ramsey. He would tell me, over the airways, that I didn’t have to have to keep my debt around forever. I could actually get intense and pay it off, and for some reason, I believed him.

In the process, I did lose my house to foreclosure. The neighborhood where I lived was not bouncing back after the crash of the housing market. It was no longer a safe place for a single woman to live. I stuck it out until some major things broke, at which time I moved into a ministry home. All the while I worked with a realtor to short sale my house. In the end, the bank declined my short sale. Feeling defeated and facing foreclosure, I hired an attorney and it ended fairly well.

Once I bounced back from that, I humbled myself and asked my folks if I could move in with them. They were gracious and said yes. At the age of 43, I moved back in with my parents for further reconciliation of our relationship and to focus on paying off the rest of my debt.

All in all, I paid off $46,763 in about 3 & 1/2 years total on a $40k salary. Near the end of my debt pay off my salary jumped and it’s still jumpin’ today!

I shared my testimony on the Dave Ramsey Show on June 4, 2018 which you can see here ;-)

From Addiction to Investing

When I was in debt pay-off mode as I was getting sober, some things shifted in my relationship with money. Firstly, I knew I never again wanted to pay for things of the past. Secondly, I realized I value relationships over spending money. This attitude has carried over into my investing life. If I value something, I’ll spend money on it, but I’ve found that spending time with the people I love doesn’t have to center around spending money.

As I was approaching that bright light of broke, I started listening to the ChooseFI podcast per a recommendation from a colleague. I read J.L. Collins’, A Simple Path to Wealth, and realized I could do this investing thing.

I started out 2018, maxing out all of the tax-advantaged accounts I could get my hands on and haven’t stopped yet. Today, I get to walk alongside women in recovery helping them with the same things I’ve gained freedom from. I’m spreading financial literacy to some of the women who need it most.

The Current Breakdown of My Finances:

• Employer-Sponsored Simple IRA: $33,054.63
• Health Savings Account: $5,233.65
• Roth IRA: $6,089.26
• Traditional IRA: $6,935.92
• M1 Finance: $385.57 (just getting ramped up on post-tax investing)
• Between checking & savings: $18,642.51
• Total net worth: $70,341.54

Closing Thoughts About the Impacts of Getting Sober

I’ve learned that it all goes together. Since getting sober I’ve wanted complete healing and transformation, but I’m learning it’s a lifelong process. Some wounds go deep.

I’m grateful for that time with my parents. I was able to finish paying off my debt and get a fresh launching pad. More importantly, I faced and slayed some childhood demons. As a result, my family bond is stronger. People can change if they are willing and able to be honest with themselves and others.

Finally, I’ve learned that valleys are where the real growth occurs. It’s the hard stuff that has chiseled me into the woman I am today, and I getting sober has made me proud.

******
Deanna blogs at RecoveringWomenWealth.com and writes specifically to women. If you or a loved one struggles with addiction, please send them her way!

[This post, How Getting Sober Changed My Life — and My Money, was first published by Guest Author on Elite Edge Money]

Good morning!!

Was talking back and forth with a reader of the blog here, and the more we got into it the more I realized just how powerful his story is.

Many of us come from a solid upbringing with plenty of opportunities to easily take advantage of, but Miguel here is proof that even without any privilege you can still succeed – and well!!! – with good grit and determination.

Here’s his story of how he went from nothing to millions, all by the time he reached his early 40s. I hope it inspires you in some small way!!

(And if any of y’all would like to share your story/net worth with us, I’d love to hear it too because I’m no longer allowed to share my own anymore and we need to keep the $$$ train going!!! You can easily shoot me a note here!)

Show ’em how it’s done, Miguel…

*******

Hello,

I am a legal immigrant from Guatemala on my own since age 15. While in high school, I knew that I had to continue my education if I wanted options aside from the few limited possibilities that I had available.

I worked hard to stay focused in keeping my grades up, applying for every program possible to help me. During my college time in the mid to late 1990’s, I came across a few financial magazines and books which inspired me to seek out ways to start building my net worth.

As a sophomore in college, I began by buying a severe fixer upper home for $7,500 (monthly loan payment was $150, taxes around $800 a year). Also during college I worked part time jobs, which kept me afloat but kept me stuck financially especially with the home maintenance expenses. The home I bought was a huge learning experience about how difficult it is to take on work that you know nothing about.

After my college graduation in 2000, I sold the home for $41,000. Most of the money went to pay off loans I had taken to stay afloat during school and to pay for the home renovations. Although I did not come out with a large sum of money from the sale after paying off debt, I learned a lot about fixing homes, which would help me in the future.

After graduation, I moved to a bigger city and tried a couple of jobs before settling in a federal one, climbing the ranks through the years. I began to save as much as possible early on, starting with 5% pretax deductions (to get the 100% match), and eventually reaching my goal of maxing out to $19,000. I have kept the funds in the stock market without touching it, buying low during bad years and doing great through stock market highs.

As I gained knowledge, I adapted and did the following:

• Bought reliable used cars at discounted prices through private sellers (having them inspected by mechanics and negotiating rock bottom prices)
• Annually review companies for lower insurance rates
• No cable or landline! We try to avoid reoccurring memberships or monthly fees that trickle down our savings.
• Cook most meals at home. When we get take out we usually get it from ethnic restaurants where the food goes along ways at a reasonable cost.
• Began a Roth IRA in my early 20’s contributing the maximum through today (<– that alone will get you to a million dollars over time!!)
• Very rarely buy anything “new” – most of my furniture comes from local ads or consignment stores (including electronics)
• Bought cheap fixer uppers in good neighborhoods, slowly moving up by taking principal from one to another
• Without exception always pay off our credit cards in full every month. Points earned automatically go to an investment account (see Fidelity credit card)
• Save for retirement in ETF’s (why pay mutual fund fees when most cannot even match the S&P benchmark?)
• Always looking for ways to save and finding ways to earn money on the side by subscribing and learning from financial blogs like J. Money!
• Most importantly, keeping track of all expenditures and savings in a notebook. Tracking my net worth and investment performance while continually setting higher goals

Aside from that, I also gained tremendously by having found a wife with a similar mindset and focus. I remember hearing from women while dating on how odd it was that I would bring up financial questions, but I knew that compatibility on that is essential (financial problems are the #1 reason for divorce after all).

I remember meeting a woman that had $150,000 in student debt and over $10,000 in credit cards but only earned $30,000 a year. I thought – Am I going to have to pay for that, and how long would that take? Most surprisingly was that she spent as if she earned four times what she earned thinking she would marry someone that would eventually pay off her debt (well that would not be me!).

I was very fortunate to have found a woman that had similarly worked as hard as I have, and who carried no debt with similar savings as mine. Although our strategies were different, we were able to align and coordinate to mutually agreed goals, constantly learning from one another.

Our summary net worth is as follows:

Home Value: $625,000 – Paid in full! This is our final home for the long run because buying and fixing homes gets old after several homes, and this is of course before we downsize to something smaller in retirement.

CD savings: $120,000 – We buy CD’s for emergency savings because they provide at least 2% interest, and we have applied the laddered CD strategy so money is available without much penalty if we truly need it.

Bank Savings: $10,000 – We keep a modest amount that, although does not provide much interest, is there for any immediate emergency and is quickly accessible.

Pre-Tax Retirement Savings: $1,200,000

Roth IRAs: $100,000

College Savings: $40,000 – We have just one child.

Vehicles: $30,000 – Both Japanese models, bought used through private parties after mechanic inspections.

Cash, coins, etc: $5,000

Although we put a big emphasis on savings, we are not by any means “misers.” We believe in keeping a careful balance, enjoying travel and things that makes us happy now because after all, we do know how long we are going to live.

Now in our early 40’s, our goal is to retire by age 50.

******

I asked him about his debts since in his first email to me he mentioned he was “almost” a multi-millionaire (and clearly these numbers above add up to over $2,000,000), and here’s what he said… Chock-full of even more insight!

******

Yes, a multi-millionaire, but just over – and because the market has been shaky it is why I have not really solidified the “multi-millionaire” status. Whenever I have hit a milestone, it seems surreal and yet I don’t feel any different inside except at times fear of loss and thought of how to retain what I have.

I tend to be very hard on myself, always thinking of what I should have done (and should be doing) a lot more in life. I also have a hard time dealing with the imposter syndrome or whatever it is as I am not sure how else to explain it.

Otherwise to address your question, we do not have any debts.

Our cars are bought used and paid in cash after we have saved for them (my Toyota for example has been an amazing truck with very few issues for 11 years and purchased used).

We did of course have a home loan mortgage. I applied various strategies to keep a low mortgage; applying the principal from the previous home fully to the next, avoiding paying closing costs, and buying the cheapest house on the nicest neighborhood (with good schools because that helps retain the value!), that needed work and strongly negotiating a price as low as possible.

In keeping the costs of buying low for example, I found after much research that Pentagon Federal credit union would pay for the closing costs (up to $15,000) if one would use their agents and closing company (which was not a problem and a no brainer). That saved us $40K in three homes that we bought/fixed and sold. Every home that we fixed up was in a real estate market that fortunately did well. We paid off the last mortgage after heavily sending everything possible each month. A big sacrifice, but it gives us a great sense of peace knowing we are just liable for taxes, insurance and maintenance.

As I mentioned, we put everything on credit cards but we don’t spend on unnecessary things. We never buy the latest electronics, and keep our monthly costs low. Our cards are paid in full every month – we use them because we get cash back and the cash back money is automatically invested through Fidelity, which I transfer to my daughters’ college education fund.

Our goals have also been helped from my wife who recently started earning a higher salary (it does not bother me that she now earns more than me, the more the merrier!), and she did her education in Europe so it was free.

When we met, she only earned around $35K but had no loans of any kind; she drove a used Toyota Echo without any options. :) I had college loans because I did not have anyone to help me with my tuition, but I paid them off in full. I also went to a state university where the tuition was very low.

We are both immigrants, arrived to the US without any money, did not receive any help from anyone, and used our education and hard work to help us propel to good paying jobs.

******

For more posts divulging peoples’ money, click here.

[This post, Meet Miguel – an Immigrant Who Became a Multi-Millionaire Without Any Help or Money, was first published by J. Money on Elite Edge Money]

Morning!

My boy James Clear just came out with a clever new newsletter, and I thought I’d be a bit cheeky today and copy it for a fun little blog post ;)

Here’s the idea behind his latest endeavor:

“Every Thursday, I send out my “3-2-1” newsletter with 3 ideas from me, 2 quotes from others, and 1 question for you. The goal of each 3-2-1 email is to share the most wisdom per word of any newsletter on the web.”

Now I can’t say my post here will contain the most wisdom per word on the web, haha, but let’s try it out and see what happens ;)

3 Ideas From Me

I. $1,000 checking account buffer. Melanie Lockert (DearDebt.com / Lola Retreat) recently asked how much people recommend keeping in their checking accounts, and my answer to that was a flat $1,000. Enough to shield you from stupid little mistakes that inevitably pop up, but not so much where it’s impossible to start or keep topped off! It also doubles as an excellent mini emergency fund and helps you sleep a little better at night. (Just make sure you’re not someone who spends everything they see! Otherwise chop off one of the zeros and go for $100 to protect yourself from yourself )

II. $20 monthly donations to places you care about. I’ve talked about this one before, but I just added the 6th organization to my list of donations and I can’t tell you how EMPOWERING (and EASY!) it’s been since implementing this idea! I tend to be good at donating and raising money when it’s a *project* I’m working on (see: Love Drop and The Community Fund), but it’s always been a personal struggle doing it consistently in my offline world until recently when I realized *automation* is just as powerful here as it is in the other areas of finance. And now just a short while later we’re up to $160/mo and getting closer to my ultimate goal of 100 organizations to give to! Woo!

III. Calculate your Lifetime Wealth Ratio (LWR). Ever wondered how much you have left out of all the income you’ve earned over your lifetime?? Get a quick reality check by dividing your net worth by the total income earned that the Social Security Administration has for you (or your own records if you’re a super nerd!), and that will give you the ratio you’ve kept. Anything from 0%-10% is suboptimal, and anything 50%+ is sublime. It’s not an exact science by any means, but it sure does put things in perspective faster! Then use it to fuel your motivation.

*******

2 Quotes From Others

I. From Sophia Amoruso, author of #GIRLBOSS and one of the richest self-made women in the world:

“Treat your savings account like just another bill. It has to be paid every month or there are consequences.”

II. From Mookie Wilson, former Major League Baseball outfielder and coach remembered as the Met who hit the ground ball that rolled through Bill Buckner’s legs in the bottom of the 10th inning of game six of the 1986 World Series:

*******

1 Question For You

This weekend we’ll be wrapping up an old month and moving into a new one.

What’s the ONE thing you can do this next month, that by doing so makes your finances exponentially better? Or less stressful?

There’s a great book that deep dives into this if you need some help zeroing in – “The ONE Thing” – but try your best to really think about it as 20% of the things you do usually make for 80% of your success.

Good luck, everyone! Make those dinosaurs proud!! ;)

******
To learn more or sign up to James’ new newsletter as I just did, click here.

[This post, 3 ideas, 2 quotes, 1 question, was first published by J. Money on Elite Edge Money]

Got this note this morning and had to share it ;)

Not every day you accomplish something so big like this!

MWAHAHAHAHAHAHA WE’RE DONE WITH OUR STUDENT LOANS!!!!!!!

My husband and I finished grad school with something like a combined $330k… and today, I hit the button to pay off the last of them. I could not be more excited!!! Also, to be truly honest, I kinda teared up when I clicked it. After 9 years (for me) and 10 years (for him), we’re finally done.

I started getting serious about paying down the loans at the end of 2015 (December 28, to be exact), with a grand total of $246,301.18. I finally got sick of having this debt hanging over my head and calculated that if we lived cheaply, we could seriously be done with them after 5 years or so. We figured out a way to live off one income and basically put the other into loans. After almost 3.5 years of paying over $5000 a month into loans…we’re done ahead of schedule!

Please excuse me while I go cry and laugh and force-hug my cat. :D

Haha…

Humor and debt-freedom, how does it get better? :)

I had to follow up with a “HOWWW??” though and pry a little further, and our friend here was kind enough to oblige and recap their journey for us…

I’m sure some people will write it off the second they see “6 figure incomes”, but remember that it takes a lot more than just money to tackle such things, and it was all those 6 figure *loans* that got them to this level to begin with!

So way to go, Jana & husband! Enjoy this next chapter of your lives, and congrats on your new found freedom!!

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The 10 year journey:

• We graduated pharmacy school 1 year apart from each other, with a combined total of around $330k. Both of us were in denial (and for pharmacy school kids, this is apparently normal), so we blissfully paid the minimums and went about our lives, buying $7 cereal in Hawaii and eating out almost daily.
• End of 2012: We moved to Seattle from Hawaii, reducing our tax burden (due to lack of state tax in Washington state). We moved, deciding to live off of 1 salary and put the rest towards the loans – this was simple to do as we both made in the low 6 figures, but it was an adjustment for me to be given an “allowance” each month. Luckily my pride got in the way of asking myself for more money, so no matter how hard that last week of the month got, I refused to go over budget!
• A year and a half after this decision, we decided to buy a condo due to rising rent prices in Seattle. We paused the loans for 3 months to save up a down payment and revamp our financial duties (made possible due to our early payments pushing out our next due dates), but our 3 month pause really turned into 6 months as we bought furniture for the condo, etc etc. In December of 2015, I decided to add up all the loans…
• December 28, 2015: I added our loans up and wanted to cry. $248,301.18 to pay off. We decided to really focus. And by we, I mean *I* got super anal about it and put myself on a strict budget!
• Many (OMG MANY) spreadsheets were made. And sure, I went over budget a number of times, but the focus was always on the loans. I made sure that I paid the loans on payday so I couldn’t give myself an excuse to put less into it, but always made sure to keep a $500 buffer in my checking account in case of forgotten auto-debited items (in addition to my emergency fund in savings).

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• I refinanced with Sofi, bringing my interest down from 6.8% to 3.75%. Why didn’t I do this earlier?!
• I got a raise in 2016, letting me put even more into the loans (from $6k/month to about $8k/month), until 2018 when I decided to change jobs (and take a $33k pay decrease for better quality of life). I cashed out my vacation from the old job and dumped an $8k lump sum into the loans. I was still able to spend about $1.5k on stuff outside of these payments (not including the HOA), so I didn’t really feel deprived. I got addicted to watching the principle drop on my loans every payday!
• A few of my friends definitely felt weird about me making 6 figures and living off what amounted to about $18k a year, but they soon learned that I would come and hang out, but would decline pricey meals out… Unless it was the beginning of the month. Please keep in mind that when I took the $33k drop in pay, I still ended up in the low 6 figures. We still put 4% (for him) and $530/month (for me) into our respective 401k/403b plans.
• We picked a combination of the avalanche and snowball methods. We started the pay down process before we were married, but we’d also been together for about 8 years by then. We figured we were in it for the long haul. To make it fair, I planned it out so that we would alternate paying on our loans, but I had consolidated a number of mine so by far mine were the biggest chunk. We combined methods for 1) practicality and 2) positive reinforcement to help fuel our (read: my) obsession.
• We were due to be done originally in December 2019… then extra payments were made (from taxes, vacation payouts, holiday and/or OT pay) and it moved slowly to September. Then August. Then July. Finally, we were to be done in June… until I said “I’M DONE WITH THESE LOANS” and raided my emergency fund to pay off the last $6k. I’m losing 2.2% interest on that $6k (thanks, Barclay’s!) but am gaining wayyyyyy more peace of mind!
• Next goal…RETIREMENT! We are planning to max out all plans and contribute to a taxable account so we can retire early… And I’ve already got the spreadsheets made ;)

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And that’s how the sausage is made!

It looks so easy when you bullet point it all out like that, and when someone ELSE is doing all the sacrificing, haha… But we all know it’s a bit more involved than that, and it surely doesn’t happen overnight.

But boy do things speed up when you FOCUS LIKE MAD! They went from $80,000 paid off in 5 years going with the flow (and a decent feat in itself!), and then hit *turbocharge* and tripled their payments in well under the same amount of time…

Pretty incredible!

Now of course we ALL can’t duplicate such drastic comebacks unfortunately, however we can take charge of the key ingredients here that works wonders in any journey:

• Making things a *top* priority
• Living on LESS than you’re bringing in
• Trying out different payoff methods
• Refinancing whenever you’re able to/it makes sense
• Automatically sending in payments on paydays!!
• Keeping a buffer zone in case you screw up
• Tracking your progress however motivates you (coloring charts? :))
• Throwing in as much of your *extra* money as you can get (raises/bonuses/overtime)
• And then of course doing whatever it takes to stick to it until the bitter end…

Not exactly easy, but pretty straightforward once you make the commitment to yourself. (And barring any unfortunate events)

So well done again, guys… Thanks for taking the time to share with us today, and tonight I shall raise a cold one in your honor! Cheers!

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More debt loving articles you might like:

• 4 Tricks to Save More, Spend Less, and Pay Off Debt
• Proof That Getting Out of Debt is VERY Possible
• The 15 Questions of Debtors Anonymous
• Resource of The Month: Debt Free Coloring Charts!

[This post, “Student loans are DEAD!”, was first published by J. Money on Elite Edge Money]