Amidst the Drivel

Here we are, still a year away from the US presidential elections. The left’s nominee will be what’sername and the right’s nominee will not be her.

I think it was Trump, but it doesn’t matter. The statement is:

A job is the best social security program.

Simple. Elegant. True.

I maintain that we are each individually responsible for not being a drag on others. That means we should each be supporting ourselves, because when we expect government to do stuff for us, that is a drag on everybody else.

A job becomes the tactic by which we do that. We should be living within our earnings, and if we want more, earn more.

In my opinion, a job is a start on the way to creating your own job where you are the boss, but not everyone can do this. That’s fine, because those who can create jobs will always need others to help them. Being a good employee is just as noble as being someone who finds a way to pay them.

The key is that whenever money is recycled through (especially) governments, a large portion is lost. The friction of public administration is enormous. Think of it as a dragging brake or four on your car. Gas mileage declines, your speed goes down and the cost of brake and engine repair goes up. Lose/lose.

Being independent from the largesse of others should be a minimum goal for any adult. Imagine how much we could accomplish if we all achieved this. That really is a worth collectivist goal – avoiding the need for collectivism.

Viva the financial independence revolution.

Death or Poverty?

Which creates the greatest fear in you?

Are you more afraid of death or poverty? This may seem like an odd question with an obvious answer: the Grim Reaper should engender more fear than an overdraft charge. Surveys, however, surprisingly suggest that poverty weighs heavily indeed on many people’s psyches in light of longer life expectancies and uncertainty about Social Security payouts.

Seems that a LOT of folks get more worked up about living small than not at all. This article (from whence the quote) might open your eyes. Apparently millennials will be needing a great deal of money management skill if they are to improve upon their parents’ lives.

That’s fine, and presumably true. But the key  to not being scared lies more in understanding that the hurdles to independence do not lie in big numbers. The answer is early, often and ownership.

Choices and Priorities

This week saw Dame Janet and her merry band of academic eggheads leave the Fed Funds rate alone.

The best, somewhat oblique comment I saw about this went along the lines of:

If the US economy is not sufficiently strong to accommodate a ONE QUARTER OF ONE PERCENT rate rise, just how weak is it?

In other words, the recovery is nothing like what we’re being told. You and I, fellow US taxpayer, have paid to bail out the big banks, to recapitalize their balance sheets, bring them back to profitability AND to mightily expand the federal government.

How do you feel about that and the fact that no-one has been charged, let alone done time? Yeah. Me too.

Time to go back to basics.

+ Saving is good and necessary, but unrewarded.

+ Independence from the need for any kind of financial aid is our aim.

+ The prize is a distant Budget Horizon, beyond our lifetime 😉

+ Cash-producing work is our lifeline until we have sufficient…

+ Recurrent income from businesses and/or investments.

+ Borrowing is only for you if you know precisely what you are doing, meaning…

+ Debt is bad for almost everyone. Including me.



Pathways to Enrichment


The quest for financial independence has one destination, but many pathways by which to find it.

You might  disagree with this: Although there are tried and true ways of getting from dependence to not, job number one is to find the way that works for you. The fit will determine the outcome.

For instance, buying and renting residential units and houses is a clear way to financial success. The downside is that you will necessarily deal with tenants (good and bad), condo associations, building upkeep, grounds maintenance, cleaning and showing when a tenant moves out and so on. Real estate requires management, which might not suit.

If you want a less head-achey way, you can keep your job and turn down the wick on your expenses. By saving (and passively investing in ETFs and the like) you will eventually have enough so that the job is optional. Although this comes with less aggravation, there will be frustrations around the constant delayed gratification and pressure to keep a lid on your spending – not to mention the fact that you have to keep that job.

Pretty much everything else requires some kind of entrepreneurship. Selling other folks’ stuff. Creating something yourself and selling it. Any kind of trading, by which I mean buying something low and selling it less low. These are active ways by which to (eventually) find passive income. This is the high energy/high reward end of the spectrum. Again, this will definitely not be for everyone.

The encouraging beauty of being here in 2015 is that the available choices are enormous. In the ledges and crevices between my generalizations are niches where people are waiting for you to provide a good or a service that will be your staircase to independence.

Time to start. Let’s do something.