Paying cash means making some lifestyle changes and sacrifices, but it will keep you from drowning in a sea of red ink on your journey to financial freedom.

Paying cash keeps you focused.

Paying cash promotes contentment because it adds meaning and value to the things you do buy.

Paying cash lets you own things, not merely acquire them.

Paying cash makes spending difficult and uncomfortable- and that is exactly the way it should be!

So how IS living?  Are you experiencing the good life in the land of opportunity?  Or, financially speaking, are you not doing so well?  If so, I’ve got an answer for you!  A solution that will take care of you for the rest of your life.   But first an oft-quoted axiom is to “live within your means”.  That is good beginning advice for those who dive into heavy debt from living beyond their means, but such advice will hardly provide financially over the long haul.

To live a life that is debt free, bondage free and to head happily toward a comfortable retirement requires a different pattern of living.   So here lies your life-long financial solution!  Financially, you must live below your means. Some people go through life living “above their means”.  Others “live within their means”.  Still others, the successful ones, make sure that they always “live below their means”.

If you have been living above your means, you are already in serious debt and have no hope of becoming debt free unless you quickly change your financial habits.  If you have been living within your means, you may be debt free, but you have little or no savings or investments to carry you through your retirement.  What you must begin to do is live below your means.

Why is this important?  Unless you believe you will be in excellent health so that you can work throughout your old age to provide food for yourself, shelter and the other necessities of life, you need to save and invest for your retirement years.  Doing this is not possible if you are living above your means or simply living within your means.

If you spend more than you earn, you have a very serious problem on your hands – the problem is you!  Most people do not have an income problem; they have a spending problem.  It’s not what you make; it’s what you spend.  If you have managed to tame the spending tiger within you and are living within your means, you still have further cutbacks to make in your family cash flow.  You need to spend below your available income stream.  You need to be planning for your retirement.  Your government social programs won’t provide adequate income for your retirement days – that will be left up to you. It is your responsibility, not your friends, family or government.

Okay, now you understand the necessity of living below your means.  What does that really mean?  In a nutshell, it simply means you have to spend less money than you earn.  It means you do not allow yourself to spend money on things you don’t absolutely need or things that just make you happy for a moment or two.  It means you save money instead of spend it.  It means investing the money that is left over.

The picture of retiring early, gaining wealth and having plenty of money to give to worthy causes is a picture of a happy life.  You are the lender, not the debtor.  You are the master, not the servant, because you have learned to master yourself.  You have learned to discipline your sudden impulses and you have learned the difference between wants and needs.  It’s not complicated; it’s very straightforward.  It’s living a simpler lifestyle.

ATTITUDE isn’t simply a state of mind; it is also a reflection of what we value.  Attitude is more than just saying we can; it is believing we can.  ATTITUDE is a CHOICE!

Attitude requires believing before seeing, because seeing is based on circumstances, believing is based on faith.  Attitude is contagious, especially when we ready ourselves for our tomorrows. 

We have total ownership of our attitudes.  No one else has the power to alter our attitudes without our permission.  Our attitude allows us to become more empowering than money, to rise above our failures, and accept others for who they are, and what they say. 

Attitude is more important than giftedness, and is the forerunner of all skills needed for happiness and success.  Our attitudes can be used to build us up or put us down – the choice is ours. 

Attitude also gives us the wisdom to know that we can’t change events of the past.  I am convinced that life is 10% what happens to me, and 90% how I respond to it –  and with this state of mind,  I remain in charge of my attitude.

Attitude is a choice!  We have the power to choose our responses to any situation.  Two kinds of choice-point filters have a profound impact on our responses; those within and those outside of our control. 

Some choice influences, such as gender and age, are outside our control.  Others, such as values and education, are within our control.  Through our attitude, we can empower the elements within our control while minimizing the effect of those outside our control.

Outside Our Control        Within Our Control

           Race                                  Feelings

           Sex                                    Thoughts

           Age                                    Attitudes

           Country of Origin               Values

           Birth Family                       Desires

           Physical Attributes             Education    

           Other Choices                   My Choices

Whether within or outside our control, our attitude can greatly influence our response to the circumstances of life.  Do financial setbacks come our way?  Of course.  Do they have to keep us down?  Certainly not!  Your attitude is one of the few things in life you can control.  Although you can’t foresee the ups and downs you’ll experience, you can control how you’ll react to them. 

Have you ever given any thought to owning your own business?  If so, maybe you are an entrepreneur!  Or maybe you are the managerial type and you want to grow an existing business.  Perhaps you are neither of the two, but instead you are the administrative, analytical type who takes great professional interest in assessing where the business is at and the condition that it should be in. 

Regardless of who you are or your interest in business, the first and most basic key to building a successful enterprise is to start with asking yourself some tough personal questions; you know, the kind that only you can answer.  Here are a view to consider.

Can I weather the storms?

Keeping a right temperament. Having the right attitude.   

Skills, Gifts and Talents:

Do you know your ability? Do you understand your weaknesses?

Failure:

Can you accept failure, yet move ahead?

Change Ability:

Do you learn from your experiences? Can you change and adjust? Do you willingly accept course corrections?

Sacrificial Orientation:

Can you endure short term pain for long term gain?

Risk Orientation:

How easily do you accept/ manage risk?

Persistence:

Do you have a “never give up” attitude? Can you learn from others?   

Learner:

Do you seek counsel or advice? Can you learn from others?

Visionary:

Can you hold your vision close until fulfillment? Do you have the ability to sell your vision to others?   

Creativity:

A worthy business idea; do you have one?

Detailed:

Can you perform detailed and thorough research?

Planner:

A well-thought-out / organized business plan; do you have one?

Manager:

Superb Management.  Are you capable?

Wise Decision-Maker:

Good Business judgment.  Do you have it?

You can probably think of many more questions….

In his book Weather Flying, retired pilot Robert Buck talks about the importance of the copilot during serious weather conditions:

“A copilot during serious instrument flight is a necessity—not required by regulation, but without doubt, flying instruments without a copilot is a very tough job. I’ve flown small aircraft in serious weather, on instruments alone, and it’s much more difficult than flying a 747 with a crew”[i].

Even in financial storms, we can rest assured that God is our copilot! In Hebrews 13:5-6, note the following command and promise: “Don’t love money; be satisfied with what you have. For God has said, ‘I will never fail you. I will never abandon you.’ So we can say with confidence, ‘The Lord is my helper, so I will have no fear…’”

If we put our faith and trust in God, He will teach us how to use the proper instruments to face, with confidence, the financial storms of life we may be encountering. 

Retirement Issues & Musings & Random Thoughts

For all of you who are in the state of denial, consider these facts:  You will get old, you may possibly live longer than your parents, inflation will always be a concern, you may not be in the best of health, the government (or any other entity) will not be concerned about your lack of cash, expense will surface that you did not plan for, and many other things may change.  If you are not already putting away large amounts of cash for your retirement, now is the time to start.

Let me tell you what happened two weeks ago.  While redoing part of my yard, my sprinkler system was broken creating a repair bill of $287. Last week, I woke up on Saturday morning to someone ringing my doorbell.  Opening the door and looking outside, I noticed a virtual river flowing out of my front yard.  While totally unrelated to the previous incident the week before, a main brass valve had sprung a substantial leak and had blown a hole up through the yard.  After shutting off the main water line to my house (this had apparently been going on for hours), I called the sprinkler man.  He arrived, assessed the situation and said he would return on Monday.  Total bill for parts and repair was nearly $800.

I called the water department of my local city and asked for consideration.  Because of strict rules, none was given, but the leak cost me $190 for the water.  So in just two weeks time, my unexpected expense in just one area was nearly $1,300.

Bottom line, when preparing for retirement, don’t forget to “expect the unexpected”.

Specific risk involves any occurrences that may affect only a particular company. For example, the death of the founder, political developments, or heavy debt can affect a particular firm adversely. Some huge companies that have been around for a very long time, even with great products and unsoiled reputations, have fallen into the wrong hands and ended up worthless due to fraud and misrepresentation.

Your thoughts on this subject?  Your comments appreciated!

Your thoughts on this subject? Your comments appreciated!

Market risk is the risk associated with market fluctuations that can depress the value of particular investments. All stocks and bonds can be affected by downturns caused by fraud, war, or calamity. Additionally, certain types of investments can experience a major downturn should there be a slowdown in a specific industry or category of investments. Factors such as political developments, market cycles, changing investor sentiments or reaction to previous excessive rises or declines can all contribute to market volatility. Higher interest rates hurt stocks because they can slow the economy, which can crimp a company’s revenue. They boost corporate borrowing costs and make stocks less attractive relative to interest-paying investments.