After over 89,000 words written here to date, I wonder if I’ve consistently taken the correct tone. It’s very easy to point the finger in judgment, to be the cynic, but there is far more difficulty in being a source of encouragement or inspiration. So, let’s take a step back today. I want to explain why I started this project, and why I care so deeply about you and your money.
Can I Be Sarcastic and Still Care?
You see, I can be a bit of a snark. Not the animal, or the “simple, connected, bridgeless cubic graph with chromatic index equal to 4.” I’m more likely to take a sarcastic sense of humor, which as I’m researching this morning, is sort of a negative thing. As a matter of fact, Coach Kim here doesn’t seem to like my sense of humor at all, calling me cruel and passive aggressive and such. Thanks, coach.
But other research from Harvard shows that sarcasm can be a booster of creativity (see coach?). However, this work also shows that sarcasm is very easily misinterpreted, especially in written and electronic communication. In the Harvard study, students were only able to detect sarcasm in emails 56% of the time, whereas sarcasm was detected in voice recordings 73% of the time. Did you detect my sarcasm in the first sentence of this paragraph?
The Dreadful Cynic
But jokes aside, this is not something I take lightly. There is a fine line between being a bit dry with humor and becoming the loathsome cynic, the critic, and the destroyer of positivity.
Lately, I’ve greatly enjoyed the writings of Maria Popova on the incredibly well-curated brainpickings.org. In a post on Theodore Roosevelt’s take on the cowardice of cynicism, Popova takes the following quote from Roosevelt’s 1910 speech “Citizenship in a Republic.”
It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming…
Theodore Roosevelt
Or perhaps this often-quoted passage by Maya Angelou:
There is nothing quite so tragic as a young cynic, because it means the person has gone from knowing nothing to believing nothing.
Maya Angelou
Care to Make Change
So why the hell am I going on about sarcasm, snark, and cynicism?
I’m realizing the sense of humor I find to be enjoyable may not be resonating with you.
Some of what Coach Kim writes is true: I do get frustrated by behaviors around me. But it’s not because I’m living one way and others aren’t (and therefore my way is better). I’m moved to occasionally point the finger because I see the result: the pain, anguish, and stress of completely avoidable money problems. And I see it everywhere, so I started this website to help.
Imagine a World
I’ve always loved the song “Imagine”, by John Lennon. In it, Lennon talks about a world in which we drop all deeply-held and entrenched beliefs and simply live. Lennon wrote this song, released in 1971, square in the middle of the Vietnam War. It’s obviously a call for peace during wartime, but we can examine the simple lyrics for useful insight to so many other facets of life.
In November 2015, a German pianist Davide Martello drove 400 miles through the night with his grand piano to play this song on the street outside the Bataclan theatre in Paris, the morning after 129 civilians were slaughtered as they enjoyed a late-fall Friday evening on the town. The message is that powerful.
Examining the Message
A big part of the philosophy set forth in a song like “Imagine” can be found in this line:
“Imagine all the people living for today.”
I have mixed feelings about this line. In one sense I completely agree: life is short so live for today. Quit worrying about tomorrow.
But viewed in a different light, I’m troubled by how this line can be easily misinterpreted to our detriment: Live for today, spend the money you make, worry about tomorrow when it comes (perhaps too late).
But then later in the song we see this verse:
“Imagine no possessions
I wonder if you can
No need for greed or hunger
A brotherhood of man”
Can you imagine a world where we are all stripped of our identities, or our desires to buy stuff with money we don’t have to impress people we don’t care about? Where we all exist on even footing simply as human beings?
Can you imagine a world where everyone has some degree of financial stability?
Money Still Has Us Stressed
As usual, money is the number one reason we are stressed. Money is a top reason for divorce or other relationship meltdowns. And as I’ve written before, the burden of long-term financial stability is on our shoulders, and there’s perhaps a retirement crisis looming.
(Related post: Retirement? Don’t Worry, I’ll be Fine!)
This is why I care.
Meaningful Work
I also care because I see the work people do for money. And I’m just as guilty. I’ve spent nearly a decade in a line of work that rarely inspires me.
Isn’t that tragic?
What could I have accomplished with ten years directed at more meaningful work? I didn’t want nice things or fancy cars, I just wanted security. And most of all, I didn’t want to be dependent on anyone. In that sense, I was successful. But I traded security for other important pillars of happiness.
Take a look at careers like teaching or other artistic and creative endeavors. These jobs often pay terribly, pushing people into more secure work with a fraction of the inspiration and meaning. For example, 44% of new teachers leave teaching within five years. Why? Let me guess: Teachers put up with a heaping pile of BS and can barely make ends meet. Just a guess.
What Would We Do If We Could Choose?
So imagine if money was no longer a consideration in the work we pursue. Imagine if we could choose to make art, or show how much we care by dedicating our time to meaningful movements and organizations. Or hell, let’s not get too virtuous. We could just choose to be the world’s greatest and most attentive parents, or pursue our interests and hobbies with far more intention.
And finally, let’s imagine if our jobs unexpectedly ended tomorrow. How well suited would we be to provide for ourselves, our families, or maintain our way of life? Is there margin in your life between money in and money out?
I didn’t realize how much low-level stress I carried until money was no longer a concern.
(Related post: Tracking Your Spending: The Ultimate Task)
Personal Finance is Personal
Actually, I don’t really concern myself with the nuances of your money. What I care about is getting people at large on stable financial footing, and I think that means getting people on a path towards financial independence.
Why?
Why not!? When we talk about the “FIRE movement,” a hefty chunk of people are automatically dismissive, hung up on the “Retire Early” portion of the acronym. But is there really an argument for anyone to be dismissive of financial independence?
I have trouble envisioning a problem with spending less, saving more, and having the freedom of choice in life. Is there a problem with having the ability to say no or walk away from work that challenges your personal ethics, morals, or sense of purpose?
Ask yourself: if you had enough money for the rest of your life, would you stay in your job? Would you live where you live? Would you go to that terrible-sounding networking event on Tuesday with Gary, who is always a bit too quick to cross the line?
I often give tips and ways of thinking that are strained through the filter of my own biases. You can disregard those if they don’t fit your life. What I care is that we live well within our means, living intentionally and thoughtfully, not impulsively and without care for tomorrow.
Find What You Care About
We have one car, and it’s not a cool car at all. But we’re not car people. If you love cars, spend feverishly on them, so long as you can pay 100% cash and not take on loans. But cut out spending on everything you don’t care about. If you don’t like nightlife, don’t pay an extra $10,000 per year to live in the hip neighborhood. That’s big money!
I spend a lot of time outside, so I bought a $400 jacket that could probably keep me toasty dangling from a stealth bomber in the stratosphere. If you don’t like being outside, you probably don’t need a $400 jacket. That’s wasteful spending. I’m not skimping on things that are important to me, and you shouldn’t either. This isn’t a life of deprivation.
But we also have to be very careful to really understand what is and isn’t important. A person with a personality toward impulsiveness is going to be quick to justify a lot of wasteful spending. These folks will squirm to find reasons why it’s okay to be hemorrhaging money like an over-pressurized fire hose. Thoughts of “I’ve earned it,” or “what will my friends and family think?” might come to mind or exist in the subconscious.
This path takes discipline and a level of comfort with going against the grain, and some folks struggle making a break from the mainstream. Most people will never understand why someone would willfully only spend half of their income.
My Recommendation, With Love and Care
I recommend you aim for financial independence by the time you are 50 years old. The earlier the better, but don’t force it with unsustainable frugality.
Job prospects are in limbo for those older than 50, and I don’t think that trend is going to change anytime soon.
Use this early retirement calculator to approximate a minimum savings rate for your financial independence (or early retirement) target. Spend an hour each month tracking your spending and tallying your net worth.
Progress is intoxicating and stagnation is deflating, but you are taking action and the ebb and flow of investment returns is natural. Find an investment strategy that is fundamentally simple and jives with your level of risk. Automate these systems and go do other stuff, letting your money and freedom grow while you sleep.
You don’t need plans for early retirement, but being financially free is your best gift to yourself and society. You won’t be a burden to anyone, and you’ll be free to make choices that are rooted in love and passion, not a desperate need to pay the gas bill.
That’s It
That’s it guys. I’m so deeply moved by the idea of financial freedom. You won’t be a slave to your job, your belongings, or your debt. The path is simple but not easy, and my only hope is that I can offer encouragement to keep on the trail.
Richness in life comes from our experiences and the people with which we share those experiences. And richness can be had at a very modest cost.
What small, teeny-tiny action will you take today to show that you care?
You may say that I’m a dreamer
But I’m not the only one.
John Lennon
Remember, the best laid plans mean nothing if you can’t take action today. Have questions? Need some feedback? Hit us up on the Contact page.
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Thanks guys, see you next week.
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