I can’t seem to get enough knowledge about personal finance. I constantly read—and calculate—personal finance. The personal finance topic seems to have transitioned from one of my interests, to a hobby, to a passion, to my current “job.” It is by far the most important job I’ve ever had. It’s actually more like a ‘career,’ probably a lifelong career.

To put my personal finance education into a structured progression, I broke it up into the familiar US education structure.

• Preschool – This is the “I want…” mentality. The pure desire to get stuff. Shopping to acquire items with no understanding or regard on how to pay for it. Charge it!? No understanding of incoming bills (or income) and no consideration for any form of saving. There is no correlation between stuff and money.
• Elementary school K-6 – Building some logic. The understanding of how money comes in through job earnings and is spent on life expenses. There is some correlation here, but no calculations.
• Jr High – A more clear understanding of needs/wants. You understand you need to build up some money to make the purchases. Deep down you still feel the ‘wants’ are very important in your enjoyment of life, more important that pulling the money together for the purchase.
• High School graduate– Threshold of being able to manage your income in relation with all expenses to the point of knowing you should have money left over income to put towards savings. Wide range of knowledge at this level:
  • Some high school students leave school with a higher level of knowledge than others. The equivalent of this higher level may be an adult family that puts some money away, at least for emergencies. These people have a financial cushion.
  • Functioning a little lower: It may be just as some people who squeak by in high school, similarly, some do the same in personal finance. They pay their bills on time—most of the time— but sometimes they’re late or miss payments (just like homework assignments).
  • Those over achieving type students may put a chunk of money away each pay period into a retirement account—along with their savings and in their emergency fund.
• College graduate/Trade certification – A full giant step above the masses (millionaire). These are the people who put in a major amount of extra effort to learn. They try and place themselves above others who didn’t—or weren’t able to—grow to a higher level of accomplishment. So many “experts” seem to feel this is the level of major differentiation. It’s not a guarantee of a great life (job or net worth), but it may move you far ahead of the masses/the average. Keep in mind that this level (college degree/millionaire) becomes less valuable as more and more people reach this same level over time.
• Master Degree – Advancing knowledge in a specialized area (multi-millionaire). This must be where you have your foundation (high school) and you’ve built a solid first floor (college) and now you are building a second story or third story to your financial home. At this level, you may have the best opportunity to keep yourself differentiated from the growing number of people one-step below/behind you.
• D Degree – Rarified knowledge and skills (deca-millions). Some people just far exceed those at the high school/monthly bill level. They extremely knowledgeable and experienced in areas that most people have no knowledge. They’ve become experts who operate within organizations (finances) at very high levels.

Specialist– Some people (families) have so much education/skills, knowledge, experience, global influence that their education is only foundational to their achievements (COE’s, political leaders). This may be the equivalent of hundreds of millions or billion+ in net worth. This massive level of responsibility is almost unattainable to mere mortals.

As in real life, many people have accomplishments that do not require a “college” education. These are often entrepreneurs who start a business, develop the skills and knowledge to deliver products which are in demand—high demand—to the marketplace. These smart people may not have extended formal (classroom) education, but the have MASSIVE amounts of life and people education, far exceed many of us college educated people. There are many paths to success, and far more to happiness.

What do you feel your personal finance education level is? Is it similar to the long grind of college or starting your own business and working so hard year after year after year? Are you trying to improve your high school level of foundational skills, or learning more and more to be an over achiever type?

I’m sure no matter what level it is, be proud of the knowledge you’ve gained. Of course, you know you could learn more—we can all learn more. I’m sure you realize that the foundational material changes over time (i.e. fewer company pensions, future social security concerns, today’s incomprehensible interest rates, possible inflation changes, future medical costs, tax optimization—doesn’t this all sound exciting to keep learning more about?

I’m talking YEARS here! 5, 20, 50 years.

The span of 5 years when you’re 15 to 20, seems to feel about the same elapsed time as say 20 years when you turn 50. I’m serious here.

Those long 5 years when you’re young are a big chunk of time. You may go through many living situations, multiple relationships (with people or employers) and so many experiences.

When you’re nearing 50 and look back 20 years, WHOA, how time flies. Maybe you were in a similar routine over those 20 years. Maybe you had some sort of super stable life and 27 became 47 so quickly.

To me, this is some form of time-warp of life.

Think I’m wrong? Think about how LONG the school year took when you were in high school. 9 months seemed like forever until summer vacation. You had day after day of sitting in classes, at stupid desks, listening (or not) to something you weren’t interested in, maybe while it was nice (definitely nicer) outside.

I’m sure you will agree, that as an adult 9 months zips by in the blink of a few sunrises/sunsets… You really notice this time warp if you happen to live in a location that has very little seasonal change like the south, west, even Hawaii? All of a sudden a few years have passed. Or you ask “when was it that we did XYZ” and realize it wasn’t “two years ago,” but rather SIX years ago.

In terms of financial sense, don’t wait to start saving and investing. You will lose all those [time warp] years of contributions/savings deposits and their compounding. For all the new purchase items you think you need, you may not realize how quickly—seemingly immediately—those items become “old.” It must be really cool to be a wise old man, but it seems like it would be so much better to get some of that wisdom early on.

Don’t become “warped out.” Take the time to find some enjoyment every day. Find some zen in your morning routine, find something special from your day, or in your evening routine. Use the opportunity of a new month—or quarter— to realize all the great things that have happened. I guess ‘they’ are right YOLO!

Side note: after writing this post, I saw a big truck who’s license plate said “BROYOLO.” That’s Zen.

You have to be thinking, how could someone (a normal, non-Wall St, non-C-level exec) earn a bonus that large? I have to admit, I was shocked when I realized that working in my little second job/side gig teaching at a local community college for 15 years earned over 100k.

Why is that a “bonus?” It’s a bonus because 1) it is not money that was tied to job/career/salary. 2) it was a few hours one night per week 3) more importantly, because I never spent a single penny of that side income. Not spending the money at first was just an accident. I made enough money in my main job to cover my savings, my bills, and my spending/fun activities. That left those extra direct deposits available for an easy transfer into my savings account, then a transfer to my investment account.

To be clear, my “bonus” goes straight to my net worth number. That is freakin’ awesome.

Let’s break this down. The small income of $2900ish per class/semester over time has grossed over 100k. The nice thing about my adjunct faculty salary is the small inflation adjustments I’ve received over the past decade (now $3300). In preparation of leading up to FIRE, I added a second night class. Unfortunately, the second class has been hit or miss for registration over the past few years, mostly not filling and being canceled. That sucks for my side income, but I understand that paying me requires student tuition (plus county/state funding?) which is logical.

Takeaway: 1) you’ve heard a side gig can give you more income. Absolutely, but I suggest finding something where you have a unique skill that may allow a higher hourly rate than what something the masses could do. 2) If you can use the opportunity to save that gig’s money, AWESOME!

Side note: did other tech nerds think “gig economy” had something to do with gigabytes? How dumb and literal nerds can be!

How many homes are on your street? Ten? Twenty? Are any of your neighbors rich? Probably yes.

After reading Thomas Stanley’s The Millionaire Next Door years ago, It never occurred to me that some of my neighbors had crossed that massive threshold. Then I started looking for Camry’s and F150’s and wondered if those people were the rocking rich. Those people who might be living a possibly financially independent or secure life.

Wow, just thinking about those millionaires that must be around me is particularly intriguing. My wife and I live in a “normal” basic neighborhood with 25-30-year-old houses. Yet interestingly, not too many young children playing in driveways or the street. Side thought: could these childless households around us have, or be on their way to substantial wealth? Could there be millionaires around us?

I’ve read multiple articles lately that say there are now over 10 MILLION households in the US with millionaire net worths. It’s strange that these articles tend to pop up when stock market values are high and people may be more flush with higher net worth.

So I calculated, if there are say 125 million households in the US, then there may be one millionaire household in every 12-ish. One in a dozen. That seems amazingly great. Maybe that’s why some people say “a million’s not what it used to be.” But “millionaire” sure sounds great to me.

Call to action: Can we all take some of the principals from the millionaires profiled in books and articles and use these as a framework for our own finances? Absolutely. There is no doubt you can learn from others. Why not take some learning from “normal” people who managed their finances well.

Off the top of my head:

• Spend less than you earn – BAM! Nothing more to say.
• Pay yourself first, save/invest – Find a way to remove some income from your monthly money visibility. Each paycheck, get that money out of your checking/debit account immediately.
• Purchase wisely – need or want?, delayed gratification skill, can you buy used and let someone else pay retail/the depreciation? To ease the used item argument, I say “everything has a ding.” It helps me rarely require a new item (notice I didn’t say “need” a new).
• Pick the right partner – Your partner needs to compliment/support your daily activities and dreams.
• Maybe even, start your own business – “Wealth flows to owners” of successful businesses. Even on a small scale, owning equities has worked for all US history. Being a principal owner could even lead to more opportunity.

If you don’t care to be a millionaire right now, that’s OK, because in 20 years it will twice as easy to get there. Maybe at that point, it will be your goal.

We’re now closing out February and many people still have great plans to lose weights and/or get their money under control. Of course, I have the same goals—keep my weight and money under control. These tasks are similar, yet quite different.

Weight– After years of learning how to manage my weight (after losing over 140 pounds in two years) it comes down to every time you open your mouth to eat, you need to make a choice for a better food. From the start, I changed one food item per week and stuck to my new item pretty much for 15+ years now. Still, weight management is a CONSTANT activity.

Money – it’s been 10 or 20 years that I’ve had much better money sense. This is both a medium and longer term action for me. I’ve never been one to make quick impulse $5 purchases over and over throughout the day. I assume this is because I live in a vehicle-based city rather than a pedestrian type city where there are m of quick stops to take your money. Remember, each time you need to pay for something it adds up just like calories in your mouth/body.

These two goals are HARD. There is absolutely no way around it. The constant challenges for food consumption. Then daily, monthly challenges for spending that add up year after year. To make small steps forward is truly remarkable based on the dedication required.

Small goals are so important to see your progress. The debt snowball, the debt avalanche, the scale dropping one pound per week as perfect tracking tools. Some weeks you’ll slip back (just like a bear market does) but that’s a chance to regroup and step forward with more vigor. If you aren’t tracking yourself, you aren’t feeling your gains.

Yesterday I realized that *BAM* you could help both these goals easily by going to 99 cents only, or your local dollar store.

I guarantee you that we save $50 every month by visiting 99 cents only every other week. I’m sure we save $25 each time we shop at 99 cents only. It seems possible for a family to save $100 per month with weekly visits.

Quick example (not on healthy eating): My local grocery store had Pringles on sale for $1.69, yet 99 cents only had them for guess how much? If you have kids (or are a childlike lover of processed curved chip-like snack) you could easily save $4/week on 4 cans.

99 cents only has overstocks of fruits, veggies, power bars, microwave popcorn, pretzels, whole wheat bread, eggs, sauces, pasta, cereal, as well as household items, holiday decorations, greeting cards, etc, etc. So many products are exactly the same in other grocery stores. Some household products do seem to be a little lesser quality, but Colgate toothpaste seems the same at CVS. Dollar Tree is my number two choice of “dollar stores.”

Not a surprise, when I walked out of 99 cents only yesterday with my bags and bags of low-cost goods and loaded up my car, I noticed I was parked between a Mercedes and a Lexus. Yes, there were older—umm junkier—cars around, which could just be money-smart people. However, I have to think, maybe some wealthier people know the secret of where to spend/save/enjoy their money in other ways. Thomas Stanley probably new millionaires who understood this logic. Clark Howard surely does.

All the fury of articles this year about the new incoming Fiduciary rule got me thinking. I thought about how and when a government and the mass media determined they must be our protectors.
It should be clear to that WE are responsible for protecting ourselves. First and foremost, we had better be sure we use the available information to make a determination on how to protect ourselves and our family.
Shouldn’t we try and work with Fiduciaries when possible? Maybe we should be cautious that that most people are out to protect themselves, but not necessarily to your detriment. Consider ALL the instances when you have to been cautious. Buying a car, buying a home, dental care, car repair, insurance, even charitable giving. Try and find the best for your needs without harming others.
So then, why should the government, a religious organization, the news, et cetera be the primary party to protect us? I surely think their opinion/information is possibly a valuable input to help guide us, but we should always verify—in order to make our decision—then see if we can find a checkpoint of some source.
The government has to try and manage a state, a country or influence the world. Seems like it’s much easier for us to be responsible for ourselves/our families.
I say proceed as you trust in yourself. Educate yourself. Then continue to educate yourself more. It’s no accident you are above average, or maybe well above average, or possibly an outlier.

Have you ever been asked this question? Do people wonder what you’re doing? Somebody must not understand you, right? Have you ever asked yourself this question? Maybe you are unsure, or need to be reminded, why you are doing something. It could be anything that you do.

I asked myself this question after thinking about my overloaded post.

I thought, if there is already too much personal finance content out there for one to consume, what am I doing blogging? Why? After a little thought, I realized, I’m just thinking like I normally do, but it’s coming out of my fingertips. Nothing more than that.

Maybe this blog is like my mental notes—from my plan. I’m thinking about my current lifestyle. Thinking about my current plan. Thinking how my present syncs up to my pre-FIRE plan. Thinking how others plan and see things. Thinking about how this activity elevates my skills and knowledge. All of this thinking just flows through my fingertips. (It also flows onto dozens of little sticky notes/notepads). I’m full of thoughts and ideas. Actually, my wife says I’m “full of it.” She’s right of course.

Why are you doing what you do? Are you wasting energy, duplicating existing items? Or, are you doing things that feel right, feel good? How are your actions making you, and others around you, better? Keep at it!

Oh no, don’t get my frugal side started…”that new patio umbrella is not a necessity. It doesn’t matter that the old one broke.” I know life comforts are important, and in many cases a plan to acquire these items makes sense. But, all too often we assume we “need” these items when they are nothing more than “wants.” I.E. a great cell phone plan, more channels in our TV package, the extra items that jump into our shopping cart (were you thinking—grocery store or online cart?).

I’ve read so many times about not buying latte’s every day because it will destroy your ability to save and become financially strong. I don’t believe that is the whole story. Yes, $5/day will add up fast, just as eating lunch out at $10/day adds up fast. Yes, this can affect your monthly/yearly spending amounts.

On the flip side, you might not even realize that buying a new car every 3 or 4 years because you’re tired of the old one—jump from sedan to truck to SUV to hybrid, etc—is a wealth killer. Many people have “reasons” for “needing” the truck or SUV for “the family.” I have a feeling that in the 40’s, 50’s, 60’s, 70’s people had families and were fine with 4 door cars. Much in the same way these families of four or five could live in the <1500 square foot home back then. There was no requirement for a 2500-3500 square foot home with a 3 car garage (maybe they just didn’t know back then how better bigger life can be?)

I’ve read that a new car every 3 years over a 30-year working lifetime can cause a 10-year delay in retirement. 10 YEARS of additional work is not worth the hours of “enjoyment” I’d get sitting in new cars. At least, not worth it to me.

Here’s the truth. Your personal wealth level determines how spending decisions affect your personal financial situation. If you make great money, and save money (pay yourself first) then you can do what you want with the remainder each pay period. If you have a plan, that is even better.

If you “want” things, it seems so much smarter to plan/prepare for these wants. To put money aside (save) and purchase the item when you have the money. This is planning. This is delayed gratification. This is a possible opportunity to change the want and not purchase, or find the item at a lower cost. Time and planning may save you money, and build your wealth.

With wealth, you can really have a lot. You can buy a lot of wants. These are often not “needs”” but instead enjoyment options, unnecessities.

UnNecessities are not for the Unprepared.

I have to go now. I need to pull up Feedly and the RSS feeds for DealNews  and TechBargains see how I can save money on something I may not have known I needed until I saw the deal…

I give myself the best Christmas present every year. I create a plan to have three (or so) Christmas Revelations for the upcoming year.

I don’t do New Year’s Resolutions. That’s too common place. Besides, I want a head start on great new improvements/changes. It’s a present to myself.

To me, these revelations are things not yet realized. Opportunities to gain or enhance something for me. They don’t just succeed or fail, but rather grow, a little or a lot.

The revelations can be toward a measurable goal, but I chose more of a direction/path to undertake.

Xmas 2015 was Weight, Meditate, Elevate.

• Weight-remove those 5-10 pounds that appeared recently – all done and then some.
• Meditate-still working to be more zen, more mindful. Umm, this I may be doing wrong because I can’t stop my mind. Instead, I’ve tried to calm my mind a little while savoring in my great life. – Moderate success on this. Maybe I just need a different smartphone app (meditate for overly active brainers).
• Elevate my knowledge. I’ve signed up for Udemy, code.org, WordPress, web courses-picked parts I liked to learn. I’ve attended FinCon. I’ve read more books/articles and informational TV shows (does Ancient Aliens count?). – I’m definitely smarter than last year. Though I’m not sure if it’s useful knowledge or not.

So what am I thinking for this Xmas? Maybe more protein in my diet, more knowledge, travel (or travel planning), more helping?

I still have time to pull together some good revelations, with a plan and a direction for each. Will they have measurable targets? Maybe they will. Does it matter if I reach that target? Nope. It’s the journey, not the destination. I just hope to point myself in the right (bettering) direction and let my schetchle work.