Who are your Joneses?

“Keep up with the Joneses.”

No, don’t! For those unexposed to the catchphrase, it refers to comparing and keeping up with your neighbors who supposedly dictate what should be considered a desirable socio-economic level and respectable rate of accumulation of material goods.

Envious eyes seem to forget about the over abundance of destructive financing options for the cash strapped. If not envy, simply hearing phrases like, “Gotta keep up with the Joneses” end up creating the painful feeling that one may be ostracized from a particular group if the perceived quantity and quality of purchases appears to fall short. But how was it all paid for?

Let’s examine a particular situation. Randy’s neighbor has a house fancier than his, a car nicer than his, and nice wrist watch. Randy might feel bad that he’s not keeping up with his neighbor, let’s call him Jones, but his feeling of inferiority would be misplaced. Both have similar jobs where incomes don’t vary that greatly. Randy has responsibly paid down the mortgage to his house, contributed to his retirement savings, paid cash for his vehicle and treats his family to a vacation every year. There’s little left over at the end of the year.

He occasionally glances over at the Joneses’ with some envy and wonder as to what they’re doing right. What Randy should be wondering about are the statements and the associated bills. More often than not there ends up being an over-sized mortgage on the house, the car is leased and credit cards were used for the watch. If Randy knew this, I doubt he would he give it a second thought.

Borrowing money is just too prevalent. Material purchases no longer represent an implication free nicety afforded by the responsible and affluent. Lending institutions know how to push emotional buttons though. They’re the ones often attempting to help you “keep up with the Joneses”. Of course they would. There’s tons of interest payments in it for them.

Randy would most likely have an outright distaste for his neighbor’s materialism if he knew what an incredible risk large debt placed on the family. There will be more on the real risk of debt to come.

So forget about “keeping up with the Joneses” as an aspiration or as a lifestyle. Follow your values and plan to make your dreams a reality instead. Or don’t. Everyone has different preferences. Anyway, it turns out Randy’s savings are invested in the company that loaned lots of money to the Joneses and they could always use a new customer.

Be specific

“You cannot make it as a wandering generality. You must become a meaningful specific.”

– Zig Ziglar

The key to goals and dreams is to be specific. Being specific gives a measurable target and lets you know beyond a shadow of a doubt that you got what you wanted. This concept may seem elementary to some, but it is so often overlooked that I consider it worth mentioning.

Many seem to place having more time for what they consider important on their wishlist. I know that I did. The key is in the specifics. I wanted more time to do activities that I liked including exercise, spending time with family and friends, putting effort into projects that I like. Those are activities notably different from paying a mountain of unsorted bills, working overtime, having to play social politics with co-workers that I didn’t care for that much.

The danger with a generalization like wanting more time is that unless specifics are involved is that a change will be made but the feeling you get might end up the same. A similar issue can happen with wanting more money. There seem to be so many people who manage the commendable task of getting paid more, but their “don’t have enough money” situation never changes. If suffering occurs either way, why not spend and suffer at the lesser wage and save the rest? At least then there’s a chance to be a suffering wealthy person.

I invite you to be specific with your goals and dreams.  Once you are, the tools and strategies regardless of which ones you choose will be tremendously more effective.

It’s not just about the money

Life moves pretty fast. You don’t stop and look around once in a while, you could miss it.

– Ferris Bueller

And what a shame it would be if it wasn’t fully enjoyed. Financial well being has little to do with the money itself. It’s a way of thinking and being able to create results that are highly desirable to the individual.

My grandfather, who I was very close to, passed away when he was 88. It was first time I expereinced the loss of someone close to me. He led a grand life and even managed to pass away without spreading much concern to those around him. There will be more on that later. Many of the lessons that I learned revolved around the fact that life should be enjoyed and the way being financially responsible played a big role in that enjoyment. Most importantly, he walked the talk.

Your dream can be very different from mine. I’m going to share that being great with money can get you to your dream quicker. Lucky ones who already feel as though they are living their dream may find out how to enhance it. Perhaps I’ll even have the chance to learn from you one day. Those of us who have yet to discover their dream worth living can use financial mastery to pave the way to exploring opportunites that may turn out feeling perfect.

Remember, it’s not hard and you deserves it.

Different Strokes for different folks

Many are quick to assume that the path to financial freedom has to be paved in different ways for different situations. Strategies for high earners are different from those making less is a common misguided notion. There are some non-negotiable building blocks that may seem so basic yet are all too commonly ignored.

“You have to make lots of money to get rich.” “I’ll be rich if I make lots of money.” These are perfect examples of statements so wrong yet still manage to exist. In reality it’s how much one manages to SAVE that counts. Imagine 2 people with very different spending habits. One is spendthrift and has little to show for his paycheck at the end of the month. The other is paying off a mortgage, invests in retirement and is even saving up for a vacation. It might not seem like a big deal in the sort term but consider their different positions a few years from now.

I mention this as one of my first points because I’m constantly reminded of it when speaking to some of my friends. Many are high performers in their industry with huge salaries to match. When the conversation turns to anything related to money, similar answers about how they are too busy to think about it come up. Closer investigation shows that they have very little to show for their hard work and big paychecks.

In contrast, many like myself have managed to reach financial freedom without ever having been paid a big amount. Understanding the art / science of getting rich and building wealth manages to beat a big salary almost all the time. It’s what I know to be true and what I used to create the lifestyle that I have today.

Why bother being financially responsible?

There is no right or best answer to why one should be financially responsible. For me, security, freedom and being able to provide for and spend time with my family top the list. Trying to attain these values provided the right incentives to keep on track.

Most importantly being financially responsible and having more money through being financially responsible has alleviated a lot of pain and suffering that I have seen in people very close to me and that I hear anecdotally. There has yet to be a case that I have come across where being financially responsible has caused harm or increased pain and suffering. In fact, I can attribute a lot of my happiness and mental health to the process that I used and discoveries that I made by being financially responsible.

Which values are meaningful to you? Knowing is one of the first steps in creating a fulfilling and satisfying life made possible by being financially responsible.