How do we avoid getting budget burnout? We focus our attention on the things we DO care about, more than the things we DON’T. It’s not a perfect system if you struggle with spending, but so far it’s worked for us!
This morning we realized we’ve never shared the most important thing we’ve ever learned about money. I was 17 when I first heard about compound interest from Dave Ramsey and it’s the reason we care about personal finance today.
In the video we explain why it’s so important for young people to learn about the magic (and danger) of compound interest. Even 5 or 10 years can mean a difference of millions of dollars.
Please share this story with anyone who you think might need to hear it 🙂
One of the biggest criticisms of early retirement is health care. How are we going to afford it? What about getting older? Now we’re forced to buy it!
Our plan for health care in early retirement is the ACA (Obamacare), medical tourism, and preventative care. What most people don’t know is that the United States is not a forerunner in quality of health care. By utilizing our ability to travel, we can get better care overseas for less money.
Health and wealth are two things you have to work hard to get and keep. There are no shortcuts to wealth. And if you find one, studies have shown you won’t have it for long.
In this video we talk a little bit about the Millionaire Next Door, and the 7 traits that most wealthy people share:
1.They live well below their means.
2.They allocate their time, energy and money efficiently in wealth building activities.
3.They belief financial independence is more important that displaying high status.
4/5.They did not inherit their wealth and their adult children are economically self sufficient.
6. They are great at selecting and seizing opportunity.
7. They chose the right occupation.
1. Grandma wanted to add that people without jobs during the Great Depression (like her dad) had a tough time receiving handouts. They felt that since they didn’t earn them through work, they didn’t deserve it.
She then explained it was recommended that she go on welfare when she was raising the kids alone, but she wanted to go back to work instead.
2. She wanted to stress how a strong work ethic is important for your well being, health, and self worth.
3. Try to be independent and not rely on others to do what you can do for yourself.
4. Most importantly she relied on her faith heavily to help her through good and bad times.
5. Someone asked how smoking had effected her health. She said that she smoked about a pack per week, because that’s all she could afford. What I didn’t know is that she quit because my dad asked her to stop when he was young. She said she would quit if he would never start. They both kept their promise.
As for long term effects, five years ago she was told she has the beginning stages of Chronic Obstructive Pulmonary Disease (COPD), presumably from smoking. She didn’t mention if this has affected her quality of life.
Mike’s 87 year old grandma is on the show tonight to talk about life during and after the Great Depression. Topics include quality of life, frugal habits, and tips for longevity.
Be sure to tune in LIVE January 13th at 8:30PM EST.
We mention all the time that our frugality isn’t a sacrifice for us. That’s because we buy only the things we truly love and cut everything else out of the budget.
Here’s a list of a few things we spend money on and a few things we couldn’t care less about.
A lot of this video was inspired(ripped off) from one of my favorite bloggers Tynan. He has an article called Polarizing Purchases where he describes how he is able to travel and buy (specific) nice things without the need for a “job.”
We have lived our lives pretty much the same way, buying only the things that are truly important to us.