Tuesday Tip Jar: Author David Bach

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Welcome to another “Tuesday Tip Jar” where I will share awesome savings and financial tips as I find them. I might not have something for you every Tuesday, but when I do, you’ll find it here!

If you’ve got a financial tip you think others would benefit from, please send it to me via my contact page at the top of the blog!

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Today’s quick tip comes in the form of the author who originally inspired me to get serious about my finances and dig out from my debt.

I listen to a podcast called, “The School of Greatness” hosted by Lewis Howes. While the pretentious name of the podcast might initially be off-putting to some, the fact of the matter is that Lewis has guests on of all shapes and sizes that focus on helping you to make your life better. Subjects have ranged from meditation, to inspiring stories of overcoming odds, to financial improvements, and everything in between.

Back in February or March, he had New York Times best-selling Author, David Bach, on his program. David was getting close to launching a book called, “The Latte Factor,” and was on a promotional tour for it.

I was impressed with how straightforward David was, and how relatable his approach seemed to be. He wasn’t about complex algorithms and financial wizardry (at least on the surface), he was about simplifying the process of saving and building wealth. For a dumbass like me, this was music to my broke ears!

While “The Latte Factor” hadn’t hit shelves yet, I liked what David had written enough that I went home and researched some of his previous books. One that struck a nerve for obvious reasons was his book, “Start Late, Finish Rich,” that focused on how to build wealth rapidly if you made some less-than-optimal decisions in the first half of your life.

The book was wildly encouraging, making sure to reinforce time and time again that it’s never too late to start saving and investing, but also reminding readers that the longer you wait, the less you’ll have later in life.

After finishing “Start Late,” I moved on to what most people know David for, which is his book, “The Automatic Millionaire,” and then eventually his latest book which is a fiction/financial education story called, “The Latte Factor.”

I don’t want to give David’s techniques away, because I think it’s important that you read his advice in the full context of his books, but I will say that they have helped to totally change my life. I am now (slowly) building some wealth, while at the same time finally paying off the debt that has been crushing me all these years.Read More »

On the Road to Financial Independence I Traded My Muscle Car in on a Corolla

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I drove a muscle car for a long time because it fed my ego. I liked how people turned to watch as I drove by. I liked people (usually dudes) commenting on it when I was fueling up. I liked feeling powerful stomping on that pedal. So you would think I would regret a decision like this one.

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I didn’t wake up Wednesday morning and think to myself, “Hey, Dave ol’ buddy ol’ pal, you know that hot and totally rad Dodge Challenger you’ve got sitting in your driveway? You know the one with the 392 Hemi and that awesome shaker hood with the blower? Yeah that’s the one! Whadda’ ya’ say we trade that sucker in on the most practical daily driver we can possibly fine. Something like say… A USED TOYOTA COROLLA!”

And yet that’s exactly what I did.

I wouldn’t say it was a total spur of the moment decision. I’ve been knee-deep in financial independence books, blogs and Facebook groups, so I had slowly been coming around to the idea of buying something more practical for what is essentially a shuttle for me to and from work.

Yet when I arrived at work Wednesday of this week, I had no clue that by day’s end I would have traded the face-melting monster machine in on the face-massaging safety wagon.

We are in the midst of refinancing our house, because we could use the extra bit of change it will provide each month. (Don’t bother debating on whether or not that’s a sound decision. It’s already done, short of signing in two weeks.)

Our home loan agent called with closing costs, and I freaked out because they were more than we were originally quoted. Things escalated quickly, and before I knew it, I was chatting with an agent at a reputable Toyota dealer here in my neck of the woods about trading my car in.

I had just reached my breaking point in terms of being stressed about my finances constantly, and yet driving around in a car that costs me $40-$60 bucks a week in gas alone. Plus I didn’t actually go anywhere with it. 99% of my car’s use is driving me to and from work. That’s it. On weekends we mostly drive my wife’s vehicle. So why did I need a gas-guzzling, high insurance, high payment vehicle to do that?

Turns out I didn’t!Read More »

Don’t Be Envious, Be INSPIRED!

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The moment I start to even feel jealous for a second though, I snap myself out of it by telling myself how good it will feel to be in that position one day. I’ll look back on this point in my life, and remember the stress and frustration, and SWEET MAPLE SYRUP will it feel good to know I don’t have to deal with that ever again.

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I am a part of quite a few Facebook Groups now that revolve around finances. While they run the gamut in terms of what subsection of financial independence they deal with, the one I’m currently pretty involved in is the ChooseFI group. I’ve mentioned this group in other posts, but essentially it’s a group of fans of the ChooseFI podcast, who post on a pretty broad range of topics.

One of my favorite posts that they do, for example, is every Friday the admins make a post that asks, “What was the ONE THING you did this week to make your life easier, happier, wealthier, more efficient, etc.? Take action each and every week and let us know!”

It’s a great topic, because the responses can be at both ends of the extreme, and everywhere in between. Some people will say things like, “I figured out a way to make toothpaste out of old shoelaces and saved $1.89!” While others are like, “I bought my 2,983rd rental property all while being President of the United States!”

Obviously I made the responses up, but the point is that you find some really valuable and cool things in the replies, some of which will be popping up on this blog in the form of future Tip Jar tips.

However the group can frankly be a bit overwhelming at times for someone in my financial situation. I would say that better than half of the posts on the group are people hitting some really killer milestones:

“We paid of the house today, and are debt free at the age of 32!”
“I have $100K in cash. How should I invest it?”
“We went to Disneyland and paid for the entire thing in cash!”
“We have so many golden toilets that I turned one of them into a pet bed!”

Again… made that last one up, but it would be pretty frickin’ sweet if you think about it…

I on the other hand would be making posts like this:Read More »

5 Tips for Talking to Your Kids About the Family Finances

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The “Friday Five” features five items to help you in your journey to financial freedom. They might be 5 tips, 5 tricks, or just 5 ideas. In any case it’s Friday, so here we go!

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My parents never talked to my me or my Sister about our finances. To be fair, my Dad really didn’t talk to us about much of anything at all other than how terrible the Seahawks were (this was the early to mid 80s, and they were stupidly awful), his fleet of semi trucks, or the chores we still hadn’t done.

I’ll retract that statement almost immediately, because my Dad did talk to us about money. Here’s how it went:

“Hang on to that Sports Illustrated with Michael Jordan on the cover. That sucker is going to be worth money one day.”

“Hang on to that Bo Jackson rookie football card. That sucker is going to be worth money one day.”

“Hold on to that Coke bottle telephone. That sucker is going to be worth money one day.”

You know what my Dad never held on to?

Money.

I’m not bagging on my Dad at all. My Dad started a business at the age of 18, built it up and sold it in his 40s, then parlayed that into a business that grew in value in the millions before losing it all due to circumstances FAR beyond his control.

Now in his late 60s, my Dad owns several small businesses in my hometown and is a staple of his community.

That doesn’t mean he was necessarily good with money.

As a kid I never knew how we were doing financially. I saw my parents buying lots of things; spots cars, satellite dishes, pools, ATVs, etc., but I never really knew if we had money in savings, or if all of that junk was purchased on credit and we were teetering on the brink of financial collapse.

It’s understandable why they didn’t share any of this information with their kids. Their parents survived The Great Depression, and was a generation that tried to forget about finances in general, not discuss them openly. They sure as hell didn’t share with their kids during that generation, and so my parents never felt the need to be super open with us.

When our finances took a dump on our collective heads in January, my wife and I decided that we would start talking to our kids about finances. We did this not to freak them out or add stress to their lives, but because we wanted to start teaching them to be financially responsible so that they can hopefully avoid our mistakes and live a financially independent life of their own one day.

We’ve learned some valuable lessons about how to approach kids when it comes to discussing finances, especially if you’re in a bad way. Here are some of our favorites:Read More »

Tuesday Tip Jar: Get Involved with the Online Financial Community

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Welcome to another “Tuesday Tip Jar” where I will share awesome savings and financial tips as I find them. I might not have something for you every Tuesday, but when I do, you’ll find it here!

If you’ve got a financial tip you think others would benefit from, please send it to me via my contact page at the top of the blog!

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Family is important. A good strong family will support you when you are down, cheer you when you are up, and tell you candidly when that all-natural deodorant you’ve switched to isn’t doing its job as well as you think it is.

With some things however, you may not always feel comfortable discussing the matter with your family. For me, finances fall squarely into that category for a few reasons. Unless it’s my wife, who I blabber to about finances until I’m blue in the face.

So when my wife finally told me I needed to go at least 30 minutes without saying “401k,” “savings,” “bills,” or “debt,” I knew I had to find an avenue for discussing financial strategies and seeking others who could aid us in our journey to financial independence.

Luckily we live in a day and age where there are a million ways to find people willing to talk with you about any subject you could possibly imagine. Reddit, Facebook, YouTube, Forums, and on and on. There are lots of options for finding like-minded folks, and I’m already blown away by how supportive the people in these virtual communities can be.

Last week an awesome reader to the blog told me that I should check out a group on Facebook called ChooseFI. I had never heard of it before, but he told me that it was a podcast as well as highly supportive Facebook group dealing with helping people to achieve their goals.

Awesome for sure, but let’s roll this back even a bit further…Read More »