“People who are unable to motivate themselves must be content with mediocrity, no matter how impressive their other talents.” Andrew Carnegie

On Financial Freedom

If you are wondering how wealth accumulation works or how to finally get off the debt/slavery/death hamster wheel – CONGRATS you just found the right answers.

You have to watch the video, to put these cliff notes into context:

Step 1: Start an emergency fund

Step 2: Snowball your debt: smallest to largest

Step 3: Build up your emergency fund to cover 3-6 months of expenses.

Step 4: Park up to 15% of your income into a Roth IRA or other tax free account

Step 5: If you have kids start a college fund – Educational IRAs also grow tax free

Step 6: If you have a house: pay it off… get rid of all your debt, because debt is slavery

Step 7: Build wealth & GIVE. Andrew Carnegie “Surplus wealth is a sacred trust to be managed for the good of others”

* Step 8: Track your progress visually. Use a white board & check things off. If you put progress in an excel sheet it won’t be visual enough – this has to be in your face.

* Step 9. Exercise and eat right: you are how you feel and you are what you eat. Even if you only have 10 minutes a day to exercise, do something that gets you off your butt.

* Step 10: Be Thankful. Every morning and evening stay humble and say Thank You for this life and all the little things you take for granted.

* Added by me.

Dave Ramsey is a religious guy and some of you will knock him for it. Well, I haven’t been to church in 20 years and I’m not about to change that behavior anytime soon because (IMHO) you don’t need church to know God, you just need to be the best person you can be and keep your ears open and respectful of other opinions. 

Being respectful of other opinions (when it comes to finance anyway) is very important because you don’t know everything. Playing devils advocate is Murphy style gamification – it’s Andy Grove’s “Only the Paranoid Survive” mantra in action. Finding financial freedom is about being open to other points of view. This step back perspective made me who I am as an investor – because deep down I know I’m not perfect, no one living today is.

So as I was detoxing from work yesterday looking for financial freedom content I accidentally heard this Peter Schiff was right video. Well at first I was thinking it was a hook by Ramsey into some opinion shot about why Schiff is right once every ten years…. LOL. I invest in gold and silver so I listen to Peter’s monologues, but I have to admit that’s a legit point of view, after all he’s human too. 

Anyway what I heard next made perfect sense. It went something like this – money is a game you can win if you have a simple working process.

You can and should learn different money disciplines- even from sources you may not agree with (like biblical ones), because ultimately what happens to you financially is based on your decisions anyway. If you listen, learn, and apply what you learn you won’t be “conformed by this world” but you will be transformed by the process you decided on and applied yourself.

As Ramsey said in the video, “you deliver yourself” from money problems. His method makes money work for you – first as a defensive tool, then as an offensive one. I’ve coached sports and I know the better your defense the more scoring opportunities you create for your offense. Also a process that gives you confidence and control is going to give you a winning mentality – again like a sports team.

Honest time tested processes work in almost every aspect of real life because they give nearly perfect symmetry to thought. They are like hidden treasure – very hard to find, but you know you found it when you see, hear, and feel it. 

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