I'm a one-bag traveler. This only really matters when I travel, which is four or five times most years. On a daily basis, though, having only one bag is the absolute essence of minimalism. A single daily bag becomes a reliable tool for consolidating the gear and information that are most important in daily life. A single bag is vital to the holy grail that is Being Organized.
This doesn't necessarily mean that I OWN only one bag. It means all my DAILY STUFF is in one bag.
I currently have one work bag, two daytime purses, three evening purses, and a beach tote. This is because I haven't gotten around to getting rid of the two purses that are getting shabby after ten or so years. To me, having extra bags leads to guaranteed confusion, lost objects, and late departures. No bag ever made is pretty enough, or even useful enough, to make up for unnecessary hassle and irritation.
For local trips, I often just put my wallet and keys in my pocket, like a man, if I actually have pockets, because women's fashion is a conspiracy.
Ideally, my purse and work bag would be one and the same. In practice, I need a larger bag two days a week, and I don't like lugging it around more than I must. It's like when the rocket boosters separate from the space shuttle.
Purse: Wallet, phone, keys. Pen. Sunglasses. Lip balm. Tissues. Hair tie. Coin purse.
Work bag: Backup battery, adapters, and headphones. I carry sunblock and deodorant because of the climate where I live, and a small vial of Aleve because I'm superstitious. Mini emergency toothbrush, a wet wipe, and a stain treatment pen. Protein bar, and emergency sandwich if I'm flying. Folding grocery bag. Sweater. This is the maximum amount of paranoia gear I carry in my work bag, in addition to my tablet and phone. The most important object in this cavernously large bag is the EXTRA SPACE it provides for me to run errands.
I timed myself transferring items between bags. It took 57.71 seconds.
My husband commutes via bus, and he carries a backpack. It has his laptop and charger, glasses case, sunglasses, wallet, keys, phone, backup batteries and adaptor, headphones, and pen. Today, it also had a notebook, textbooks, and calculator because he's studying for a new professional certification. The most important feature of his backpack is the EXTRA SPACE it has for his lunch or a stop at the grocery store on the way home. I just asked him, "You don't have any receipts or anything in there?" He shook his head no, casually, like if I asked him if he ever debated what color of socks to wear with his outfit.
Parents whose kids are still at home will probably be thinking, "Easy for you, but we have kids." I know this because parents use this reply in every possible situation. The truth is that people who travel in packs have even more reason to organize and streamline their daily stuff. If you don't like dealing with tears in the morning, assuredly, your kids don't either. Checking kids' school bags and resupplying diaper bags in the evening prevents a lot of frustration before it has a chance to derail your family life.
Now that we've done the exposition, the key to Single Bag Theory is the strategic loading and unloading of the bag. The bag is Command Central. Since I don't need my wallet, keys, or sunglasses inside my home, they just stay in the bag. I never have to look for them. I know where the bag is because I always put it in the same spot when I get home. If I need to take something somewhere, like outgoing mail, I put it directly into the bag. This way I don't need a container or flat surface or special furniture; our apartment is so tiny that we don't have a foyer or hallway or mudroom or any of that. If we didn't have a system for our daily bags, then we would have a nonfunctional kitchen with counters covered in junk. That's just an objective fact.
Unloading the bag means making decisions. What am I carrying at the end of the day that is not strictly necessary to my next trip out the front door? Generally it is groceries or sundries I bought, receipts, mail, extra paper napkins, and the occasional piece of trash or recycling. Most of us carry receipts more out of habit or concern about identity theft than because we actually DO anything with the receipts. I try to avoid having receipts printed out at the check stand whenever possible. I do categorize my expenses in my finance app, but I only save the receipts with split expenses. This means that if I went to a restaurant, clothing store, bookstore, or other place with only one category of expense, I don't need the receipt for my purposes. If it's something expensive like electronics, I'll save it until I'm sure the item works properly. Most of our mail is junk mail, and almost everything that's left is outer and inner envelopes, brochures, and other useless inserts. We pay our bills electronically. Process and shred or recycle. Most of my trash sorting happens while I'm waiting at bus stops. When I check the contents of my bag at the end of every day, it only takes a quick glance and a few seconds to pull out anything weird or silly. I'm weird and silly enough without giving myself chiropractic problems lugging extra junk on my neck.
My smartphone takes the place of many of the items I used to carry. I no longer need a bulky paper day planner or address book or notebook or calculator. I no longer have tons of scraps of notes, phone numbers with no name on them, shopping lists, directions, or map printouts. I've developed the habit of setting alarms and time- and location-based reminders, because otherwise I know the fallibility of my ADHD mind. I need to be wondering about stuff like whether crows can be trained to pick up litter or whether there will ever be a wall-climbing scrubbing robot, not whether I've forgotten to order parrot kibble or where I put my keys. That's the point of all this, the point of Being Organized. We have more important things to do and more interesting things to think about than our daily stuff.
Having only a single bag has a magical way of making us more organized. Suddenly we know where our keys, phone, and glasses are. Suddenly we know where to look for our little scraps of notes. We start to be less late, and finally on time for things, because we can just sling the bag over one shoulder and go straight out the door. All the little rays of wandering attention we have aimed all over the place start to merge into a thick beam of focus. Having one bag can help us both look better and feel smarter, and what a magical bag that is!
This is my second tax nightmare in 18 years. Why they choose me, I don't know.
The first time, someone else's income was reported under my social security number, and I got a tax bill representing about half my annual income. I only found out about it after my ex-husband intercepted and opened the letter and withheld it from me until after the deadline for dispute had passed. The IRS agent who helped me was warm and friendly. Although this was someone else's mistake, it fell upon me to do the research and resolve the problem. File under: NOT MY FAULT, STILL MY PROBLEM. This involved tracking down the other person, a coworker, and convincing her to give me a copy of her W-2. It seems obvious that someone involved in the payroll process at my office had made the mistake; otherwise, we would be looking at one of the most outrageous coincidences of all time. Could someone somewhere just vaguely, passively say that A Mistake Had Been Made and apologize to me for my inconvenience? Heavens no.
There are two things we can never expect in this life: gratitude for the good we've done, and apologies for the mistakes that other people have made.
Now I'm sitting in the City of Los Angeles Office of Finance. They've summoned me to a hearing for supposedly not paying municipal business taxes. This despite the fact that I have not lived within a City of Los Angeles zip code since 2015. The summons was even addressed to me at my previous non-LA address.
This is the fourth calendar year that we have been having this dispute. I tried everything. I sent letters. I spoke to an agent on the phone. I sent copies of our tax return. I have told them over and over again that 1. The income they were after is actually my husband's salary, not business income and 2. We don't live in LA.
Their response was to send a tax bill for slightly over $8000. Weirdly, it's almost the exact same amount I was mistakenly assessed by the federal government back in 1999. I got that cleared up, or so I thought, and then several months later I get this summons.
I guess it's my karma that maybe I robbed someone of $8000 in a past life? Or maybe I was a cruel tax collector? Who knows.
What I WANT from this transaction is:
For someone to take accountability and say, "This was our fault, not yours."
Compensation for my time
A letter absolving me from further bureaucratic transactions with this department
Some kind of goodie like a free bus pass
What I NEED from this transaction is:
Resolution of the issue
Some kind of notation in my account or in whatever database or mailing list
Knowledge of what to do if anything like this happens again
My INSTINCT is to:
Yell at someone
Tell the entire saga from start to finish
Call my mayor
Alert the media
Cry (actually I did that the day after I got the letter)
What I actually do is to use my carefully honed skills in navigating bureaucratic red tape. I use tact and civility. Guess what? My case is resolved half an hour after I walk in the door. I didn't get an apology or compensation or any of those feeble fantasies. What I did get was the most genial, easy-going guy on the staff, who listened carefully, closed my account, and gave me photocopies of his stamped paperwork for my file.
How is this done?
There's an art to doing these things smoothly, and as far as I can tell, not everyone is aware of it. I have seen people shouting so loudly that they could clearly be heard through the entire building, or pounding their fist on the counter. The only thing you get when you act that way is a conversation with a security guard. Threats, intimidation, swearing, scowling, glaring, sarcasm, rudeness, cutting in line, interrupting, and gesticulating are tools for fools. They're only going to make things harder. You never know when you'll find yourself in the same office again, or facing the exact same person in a different job.
The person I'm talking to is almost certainly not the person who made the mistake on my account. This person is my ally. We want the same thing. We both want a simple transaction in which I go away quickly with a smile on my face. His goal is to do his job and make it to the end of the day without someone shouting at him. My goal is to be the friendliest transaction of his week. This person, whoever it is, is much more likely to listen to me and believe me if I am rational, respectful, and deferential. I walk up smiling, dressed professionally, and I make sure to wait my turn before speaking.
Always start with the assumption that the miscommunication has been on your end. Maybe I walked in the wrong door, didn't read a sign, or unknowingly shuffled a vital piece of correspondence into a wad of coupons that I then recycled. I start from the position of empathy, imagining that I am on the other side of the desk, forced to deal with this uptight, nervous wreck of a middle-aged crazy birdwatcher lady before lunch. I've been a civil servant and I've worked in customer service, so this trick of empathy is easy. I want to be my own ideal customer or client, the person I wouldn't mind helping.
The truth is that there is nothing complicated about my situation. It's routine on both sides. Any weeping or gnashing of teeth I have done has arisen from 1. My own anxiety 2. Projecting 3. Mind-reading (which doesn't work) and 4. Predicting the future (badly). I got all wound around the axle. I felt like THIS ALWAYS HAPPENS TO ME and WHAT WILL I DO NOW? and WHYYYYY MEEEEEE? I also felt that IT'S NOT FAIR and I WANT CAAAAAAAKE. It actually crossed my mind that I would have to see a judge or that someone would demand some kind of payment from me. I thought I would have to camp out in the office the entire day and come back again the following day, possibly through the entire week. Not a single thing that worried me came true. If I really want compensation, it should be for the time I spent flagellating myself and the sleep I lost tormenting myself with weird imaginary scenarios that never happened.
Gracious behavior always helps. When I listen courteously, I hear more details and everything makes more sense. When I wait patiently, I get better treatment. Everything goes faster when people wait their turn, including me. Most importantly, the self-discipline of controlling my irrational responses and NOT doing what comes naturally helps me to realize how rarely I ever need to escalate. Life is easier than we think it is, especially when we're not having a conniption.
PS On the way home, I found a dollar coin. So that's something.
Why is it that, as soon as the technology became available, so many of us started working around the clock? Between email and cell phones, 'evening' and 'weekend' barely exist anymore. Carson Tate wants to help us to Work Simply and reclaim our free time.
The first chapter introduces us to "The Myth of Time Management." It really isn't about doing everything more efficiently; we've all tried that by now. This is strategy. For instance, one of the most helpful ideas I found in the book was to get your manager to define what constitutes an 'emergency.' So much of "time management" is really about "manager management."
Tate provides a quiz that distinguishes four different types of organizers, and offers custom tips that will appeal to each type. This includes software, physical changes, and negotiating tips for the other types. I found myself identifying various people I know as one type or another. I'm a Visualizer and my husband is a Prioritizer. I suspect that a good chunk of chronically disorganized people like my clients are Arrangers, who have a greater need for social connection. Understanding the type of your boss is perhaps even more useful than understanding your own type.
Work Simply offers the suggestion to think of time as money. Calculate your hourly rate and then figure out how much fifteen minutes of your time is worth. In many situations, we would never give someone cash outright but we will squander our time, paying for it later with long days and late nights.
This book is a product of the modern corporate workplace. It deals frankly with problems like working so much your kids prefer the other parent, having a boss with no sense of priorities, or being too busy to use the restroom. Mastering these issues is the only way we can reclaim our time and mental bandwidth and find room to breathe again. In the words of Carson Tate, "Work simply to live fully."
Seven in ten Americans don't have a thousands dollars in savings. I keep seeing this figure in various personal finance articles. The way the poll was structured, it makes it hard to tell: did all of these people seriously not have $1000 to their name, or did they just not keep it specifically in a savings account? Either way, it's a question that is definitely worth exploring.
$1000 sounds like a fortune when you're broke and in debt. In an era when prices are what they are, it's actually attainable in a fairly short time period. A time will come when you will keep an extra $1000 in the bottom of your checking account and almost never give it a second thought.
$1000 is important because there is always going to be an "emergency" need for quick cash, and almost all people are going to go $1000 into debt by putting those expenses on their credit cards instead. That means you're paying interest on top of that grand, and over time, it will cost you significantly more.
Money isn't the money you think it is. Meaning, it hits you in several ways.
Your real hourly income. Take what you earn after taxes and other deductions. Then remove anything you spend purely because of that job, such as gas for your commute, bridge tolls, or clothing you wouldn't wear as a retiree. Like, you know, pants. Then divide by the true number of hours dedicated to your job, including your commute and breaks. The first time I did this, my real hourly wage was like $3.75. When you spend a dollar, you're spending a certain amount of life energy, as detailed in the book Your Money or Your Life.
Sales tax. Whatever you bought costs slightly more than you thought, especially if you pay for a disposable shopping bag.
Interest, fines, and fees. Add in the interest on your credit card, any late charges, foreign transaction fees, etc.
The price of your time spent shopping or handling transactions like booking tickets.
Price per square foot of the place you are storing stuff, whether your home or a storage unit.
Cost of fuel or shipping to transport items. Include parking fees and your trash bill for all that packaging.
To summarize, we carry a lot of maintenance expenses for both earning and spending money, and we don't generally connect them to the personal infrastructure of our working or shopping behaviors.
Okay, back to the $1000, a figure I will be repeating over and over again until it becomes a subliminal fixation in your mind.
$1000 can be carved out of daily expenses over a short timeframe, almost instantaneously for some people. Some methods are simple, others are radical and dramatic. $1000 can also be gained by selling items, or earned through a combination of side hustles or a job upgrade. Diving the amount into smaller chunks could mean we're trying to cut $300 from our expenses, sell $300 worth of stuff we don't need as much as we need emergency savings, $300 in income from side gigs, and that leaves just $100 we could try to get from a raise, bonus, promotion, or new and improved day job.
If you are serious about getting your finances in order and you have a storage unit or cable TV, your problem is solved. Get rid of them. That $1000 emergency savings buffer will magically appear within a few months. Ah, but I know nobody engages in that kind of tomfoolery but me. Why other people choose to spend their vacation money on television and a room of stuff they never use is beyond me, but hey. To each his own.
As an alternative, it's also pretty straightforward to cut $300 in utility bills, food, liquor, dining out, beauty treatments, and entertainment for most people. It turns out that people in every quintile of income distribution spend the same percentage of their income on entertainment! (If you're already so broke that you never spend extra money on those things, focus on getting training for a better job. You have internet access or you wouldn't be reading this, so your situation isn't hopeless). You might not be able to cut $300 in one month, but surely you can do it in six.
How do you come up with $300 from selling your stuff? It depends on what you have. Sometimes it can be done in one shot, by selling a game system or a redundant piece of electronics or a large piece of furniture. Many people who are renting a storage unit can get it by selling off everything in the unit, which is a double whammy because it also eliminates that expense. Used books and (possibly) textbooks. Collectibles. Musical instruments that aren't getting played. Fashionable clothes and accessories can go to a consignment shop. Items with the tags still on can sometimes still be returned. Coin jars can be cashed in, and so can gift cards. A lot of our consumer debt tends to come from buying stuff we couldn't really afford, which then fills up our homes. We can reverse this tide by selling some of it off and using the proceeds to build financial security.
How do you earn $300 in side hustles? Get thirty people to pay you ten bucks. Or get ten people to pay you thirty bucks. Or, get one person to pay you $300 or more. It depends on what you know how to do and how useful you are. I used to charge $10 to clean a bathroom when I was a college student, and if I needed ten bucks that bad, I always found a taker. If you have virtually no skills, you can still convince people to pay you small amounts of money for menial tasks like clearing junk or dog poop out of their yard or pet-sitting over the weekend. Once you make yourself available for odd jobs, word will get out, and people will sometimes approach you with offers you wouldn't have thought of. You don't have to do it forever; the goal is just to build up that $1000 savings cushion.
How do you round out that $1000 by earning an extra $100 at your day job? Even a ten-cent raise will achieve this over time. Honestly, though, if you're broke, it's time to think about a real career. What could you put up with doing for several years that would pay considerably better than what you earn now? After I graduated from college, I earned double the money doing what I considered the same type of work. The degree paid for itself in the first year. The more I've been paid, the easier the work has been and the less hard I have felt I had to work. We tend to talk ourselves out of the best ideas, having long lists of reasons why certain things won't work for us. All we need is one thing that WILL work and one reason TO do it.
A sneaky way to get that $1000 in savings together is to avoid ways of generating emergency expenses. For instance, don't get a speeding ticket or a DUI. Don't procrastinate on dental care. Don't put off repairs, especially car repairs or plumbing problems. A lot of crisis situations are the aftereffects of minor annoyances that were left to fester. This tends to happen when we're broke and feeling like we "can't afford" maintenance expenses. We never have time to do it right the first time, and we never have the money either.
Those of us known as "savers" may or may not have $1000 in a "savings account." We may keep it in checking. We may have it in a fireproof safe in the office. We may keep it in a money market account. We may be generating so much passive income from rentals, dividends, royalties, etc that we wouldn't bat an eye over a sudden $1000 expense. We may have many times that amount in our portfolios or retirement accounts. Sadly, though, the majority of us probably don't even realize that most of those savings vehicles exist. Broke we may be, but when we keep telling ourselves the story of broke-ness, it's hard to break free and stop being broke. An extra $1000 is a great place to start.
Nobody starts out knowing anything about money. We all start out as tiny little helpless babies, and if we've survived and become literate, then we did it in a world of astonishingly magnificent abundance. Adults gave us food even when all we gave them in exchange was bodily fluids. Adults gave us shelter even when we kept waking them up all night long. Adults clothed us even when we spat up on them. Adults carried us from place to place and taught us to speak. By the time we learned to read, we had already accrued years of debt from unearned altruism. Part of the job of being an adult creature, of any species, is to repay that debt to future generations, to help them survive in the way that we were helped to survive. We pass it on.
We contribute to the world in one way or another. If we're meerkats, we do that by taking our turn at sentinel duty. If we're ravens, we alert the flock to the presence of a moose carcass. If we're humans (which I assume you are, but if you are a literate non-human, please, by all means PM me), we contribute to the economy in some way. It is virtually impossible to step outside of that constraint. I would argue that it IS impossible to step outside the economy, because if you save up and buy property to live off grid, you just lost the game, and that's assuming you didn't bring any supplies or materials produced by anyone else. Anyway. Whether we think money is involved or not, whether we think a job is involved or not, we're in the game. The better we get at understanding the rules of the game, the better a job we can do in participating. A meerkat should be a good meerkat. A raven should be good at being a raven, which may be different from being a "good raven." A human should be a good human, and contributing to the world is part of that.
We start to think in terms of net contribution. Am I smiling at others as often as they smile at me? Am I listening at least as much as I am talking? Am I helping at least as much as I am being helped? Am I producing as much as I am consuming? Am I providing value or extracting it?
Money is simply an abstract way of exchanging energy. We can use it to buy goods or services from anyone in the world, helping them to provide for their families, which we can only do in person if we live near them. We can use it to support performing artists who can't possibly visit every area where their fans live. We can use money to help people in charitable ways that we couldn't do even if they were our neighbors, lacking the skills or physical abilities they might need. Money can help us to act like incredibly fast and loudly cawing ravens or incredibly tall meerkats, helping the rest of our flock or band even when we've never met them.
We start to think of money as a way to give back to the world. Money is a way to share. Money is a way to make other people's lives better, and our own. We start to think that work at our maximum capacity for contribution is a great gift we can give.
When we're working at a level lower than we know we can, we're taking up someone else's spot. Someone else who can, at least right now, do no better than the job that we currently have. We have to get out of their way. We have to advance and make room. We probably have no idea whatsoever how much we can really do, but we do at least know that we have more to offer than the current job is using. This is like the wolf bringing home a shrew for her cubs while the owl's owlets wait in vain. Animals do better at adulthood than we do. They wake up and go straight to work because their survival is on the line. Not just theirs, but the future of their species. They don't have snooze buttons. They also don't have debt.
It would be nice to think that most of our contribution to the world is not fundamentally economic in nature. This may be true for parents of young children. The rest of us have something to prove. Are we really spending the majority of our free time comforting the sorrowful and caring for the sick and elderly? Are we spending our spare time teaching adult literacy? I know I'm not. My contributions are limited to the occasional surreptitious sandwich handoff, my pro bono work, a check to the soup kitchen, or my monthly auto-payment for the student I'm sponsoring in Zambia. Oops. Economic contributions again. Must work on that. Alas. Even if I give my time, I'm making an economic contribution, because what I'm really giving is labor. There is no escape!
I like thinking of myself as a leader, a giver, a maker, and a builder. I have all kinds of practical skills and I will readily teach them whenever I am asked. Or sometimes when I am not asked! I love mentoring young people. I love pushing my close friends to chase their dreams and get their passion projects into reality. These are much nicer feelings than the feelings of helplessness and futility and despair I felt when I was broke and constantly in need of rides, meals, loans, and sometimes places to sleep. Now I can give what I used to need. I give because I feel the need to give. I feel an internal pressure that never relents. I also feel that money is merely one aspect of a fountain of energy that I can tap at will. It's a shortcut. It's a force multiplier. I can give money to far more causes and purposes than I can give of my personal presence and personal attention. The more I earn, the more I can share and give, and the more natural it feels to do so.
If I were a goose, I'd want to be a fast goose, so a slower or older goose could fly behind me in formation and feel less wind resistance. Animals cooperate for the greater good of their species all the time. All I can do as a human person is to work. I can do a lot for my family and close friends, but it's finite. I'm not called upon for all that much hair-stroking and hand-holding. What I can do by working is to provide value through my work, and then take the money I earn and use it to provide value again. It's not perfect, but it is a pretty interesting form of cooperation, in the context of what can be done by members of the animal kingdom. We are the money animals.
Pay off debts - and then what? What comes next? What number comes after zero? (Answer: infinite rational numbers). Paying off debt is exactly like clearing clutter or losing weight. We tend to make much faster progress when we realize that these goals are not ends in themselves. They are states of being. They are introductory goals. Paying off debt, like these other minor goals, is a new baseline. It becomes the new normal. What we do when we're planning for Future Self is to imagine that we've already reached the new baseline, and then to choose what our goals will be from that starting point. When we're climbing the stairs, we know what floor we're trying to reach; when we drive, we look up the road more than a few yards. We need to know where we're trying to go if we ever want to get there.
Financial education has three problems. First, what we learn from our parents, relatives, neighbors, and friends may be the opposite of helpful. Second, even if we're taught personal finance in school, we learn it at an age when it doesn't feel relevant. Third, almost all of the financial advice we receive as adults comes from marketing for products that benefit the seller, not necessarily the buyer. Whose advice are we supposed to take? We can choose from a bunch of people who don't know what they're doing, earnest educators who earn a teacher's salary, or predatory professionals who want a piece of our assets. This is why finance is exactly like fitness. It's like trying to sort advice from our fellow fat people, the gym teacher, or manufacturers of snake-oil weight loss pills.
Start with what you want. Not what someone else wants. Not everyone wants or needs to plan to buy a house or start a family. People who live alone with no dependents don't need life insurance. Some people would rather have job security, while others would rather live on the edge and be their own bosses. Some people love school and want advanced education, while others find it irrelevant. Some of us are ambitious and know we'll never be satisfied, because there's always more to learn and more to do, so how can there ever be an end goal?
What if your first problem is just knowing where your grocery money is coming from by the end of the week? Been there, done that, tried to sell the shirt at the consignment shop. Being hungry makes it really hard to concentrate on stuff like retirement planning. It also makes it hard to get through a job interview without your hands shaking. Getting a good job takes confidence that it's really hard to summon up when you're in dire straits. It takes faith that you have the power to work hard, contribute at a higher level, earn more, and get your feet back under you.
Since I've been there, let me share the rungs of the ladder, from flat broke to financially savvy.
1. Stockpiling a few days' worth of food. You have to learn to cook and how to bulk shop. For the cost of a Big Mac, I can make a pot of split pea soup and a loaf of homemade bread that will feed four people. Or I can buy five pounds of potatoes.
2. Building your reputation as a reliable worker. If you show up on time and work hard, people will set you up with opportunities to earn extra money. I was always able to find someone who would pay me ten bucks to clean their bathroom. I babysat, house sat, sewed buttons and did mending, hemmed pants, painted, and at least half a dozen other odd jobs and side hustles throughout my twenties.
3. Educating yourself. Everything I ever learned about finance, I learned from reading library books and personal finance websites. If you want better results than other people have, you have to know more than they do.
4. Getting ahead. First a week ahead, then a paycheck ahead, then a month ahead. This means you put money aside before your bills are due, instead of trying to pay after the statement comes. When I got my first job after I graduated from college, I slept on an air mattress for two months. When I got my first apartment, my living room was empty for two months while I saved for a couch. This is because I put my financial goals before physical comfort, much less entertainment or leisure. I wouldn't call this savings. It's just operational expenses. This money sits in your checking account, where the goal is never to go below the minimum balance.
5. Sock money. Cash that you hide in your house. Never tell anyone where it is, or look at it or touch it while someone can see you. Pretend you don't have it and that it doesn't exist. This is the money you rely on when you're really, really in trouble, for groceries or a cab to get the heck out of there. I have a jar of pennies I found on the street that now has over fifty bucks in it. That's separate from what I keep in my go bag for evacuating from natural disasters.
6. Emergency savings. An emergency savings account will most likely be depleted over and over again. That's why it's there. It's a buffer that keeps you from needing to put surprise expenses on a credit card. (Automotive repair, plane tickets for a funeral, co-pay on a root canal, etc). The only reason to use a credit card is to get reward points, but it's cheaper to buy the "rewards" directly than to carry a balance on a credit card. Emergency savings is not the same thing as retirement savings. Keep it in a regular savings account where you can withdraw it quickly if you need to.
7.Discretionary savings. This is not the same thing as emergency savings, and it's also not counted toward retirement. This is where you save for something like a new vehicle, furniture, orthodontia, or the deposit on a new apartment. Discretionary savings can go in a CD or "holiday and taxes" account that earns a little interest, but makes you wait before you can make withdrawals.
8. Investing. When I started investing for retirement, I had a quarter-time job and I was living in a dorm. It just happened. My job classification was suddenly eligible for retirement contributions. The money came out of my checks before taxes. It was a hard emotional choice, but whenever I would get a new job, I would immediately fill out the HR paperwork and make the maximum contribution eligible for the company match. I would put aside the maximum even if there wasn't a match. Future Self always got her chunk. I was still quite broke for the first five years after I started investing.
9. F.U. Money. "Forget yoU." This is when you have enough financial security that you can exit a dissatisfying situation. Quit a bad job, move away from a cruddy neighborhood, break a lease, leave an unhealthy relationship. If I had had F.U. money in my early 20s, I wouldn't have married my first husband in the first place, much less stayed with him. It's sad to realize that.
10. Planning for financial independence, or FI. Eff Eye. Being financially independent means that you have enough money coming in to afford your lifestyle without a paycheck. It's roughly equivalent to retirement, except that not everyone who "retires" is financially independent, and not everyone who is FI quits working. This can be achieved in several different ways. Most people have a mix, because it's safer and easier to diversify. There might be rents from properties like a rental house or apartment building. There might be dividends or interest from a portfolio of stocks and bonds. There might be passive income from one or more businesses, website ads, etc. There might be royalties from books, music, or recorded performances like TV commercials. There might be income from a family trust. Note that none of these means of earning income are taught in high school personal finance classes. Also, there is no specific amount of money required for financial independence; it depends on where you live and what your expenses are. Some people would rather quit working as soon as possible and live marginally, while others would rather keep going and live abundantly.
Note that I did not include a category for paying off debt. That's because debt is unnecessary - and irrationally expensive. Yes, it's hard to get an advanced education without debt, but it can be done. Yes, it's hard to buy a house without debt, but it can be done, too. For instance, my husband got his BS, and then the company that hired him paid for his Master's. I worked full-time during my freshman year while taking a full course load of 14 credit-hours, and I paid cash for my tuition and books each term. I was on the Dean's List, too. As for housing, more and more people are building tiny houses without a home loan, and there are distressed areas of the US where it's currently still possible to buy a house for one dollar. The debt we're talking about generally means consumer debt, and we like to be defense lawyers for ourselves when it comes to how necessary our credit card expenses really were. Consumer debt means we didn't have enough in our emergency funds and we didn't put away enough in discretionary savings, either.
The fastest, easiest way to reach financial goals is to earn more money. This usually means paying out of pocket and spending nights and weekends to earn credentials for a new career. Sometimes it means working 80-hour weeks for several years to start your own business, which may or may not succeed. Most people either don't realize there's another way, don't have the desire or energy to try any other ways, or simply lack the imagination to see more intriguing possibilities. We do what everyone else does, which is to live out the status quo and then feel extremely surprised and disappointed when we reach our sixties and understand what "retirement" really looks like.
Setting financial goals past the point of "debt free" involves doing unfamiliar things that the majority are not doing. This makes it uncomfortable, confusing, and sometimes scary. It takes faith. It can be like hiking a mountain trail in the dark with just a flashlight, climbing and climbing, twisting and turning, only able to see a few feet ahead of you, but believing that this trail leads somewhere. Then, suddenly, you find yourself at a higher elevation, and the sun rises on a new day with a vantage point you can't believe you're really seeing. With planning and preparation and training and effort, you got there.
Jason Navallo's book, American Dream: Interviews with Industry-Leading Professionals, is an ideal inspirational read for the ambitious person who is looking for direction. Due to the interview format, the book takes on a conversational tone. The industry-leading professionals selected are not household names, just a diverse group of people in various fields who happen to be multi-millionaires through their own effort. It starts to seem as though any ordinary person really could create a successful career out of modest beginnings. All it takes is an idea and the will to succeed.
A part of American Dream that I found compelling was the question, "Do you believe in the Law of Attraction?" The six people featured all gave very different answers. In this way, success is like longevity. There's more than one way to achieve it. What these successful people do have in common is that they've clearly spent a lot of time thinking about it and planning around it. In some ways, some individuals agree that there was a certain amount of luck involved in what they are doing, but that has mostly to do with choosing a field. In all cases, they most likely would have worked just as hard at anything they had chosen.
There are many parts to the entrepreneurial mindset. Reading a collection of interviews like this helps to make the commonalities stand out. Thinking like an entrepreneur is a mental skill set. You're looking for opportunities that others have missed. You're looking for something you can create that customers may not even realize they want yet. You're finding ways to get financing when the banks tell you no. You're building different kinds of networks and relationships outside of the traditional business community, because they don't understand what you're doing yet. You have a personal connection to your enterprise, and you feel sure that nobody else can supply this need to the market in the way that you can. You're so obsessed with doing the best possible job that you work around the clock for years on end if necessary.
American Dream was a really inspiring and fascinating book. It made me feel that I have at least one idea that has the potential to turn into a solid business. It also made me feel that if I do this thing, I could potentially create hundreds of jobs for other people. There is a lot of power in this idea, that anyone with the dedication can learn how to start and run a successful business. Read it, share it with your spouse, and give it to your ambitious young people.
I couldn't make it through this book. By the halfway mark, I had to put it away so that I could make my own art! Then, of course, I went right back to reading, because I couldn't get enough of Danielle Krysa. I loved this book so much that I'm completely freaking out. Your Inner Critic is a Big Jerk, and mine is too.
Anyone who is anyone will get something out of this book. You don't have to be an artist. This needs to be said, because without the disclaimer, some of us will feel that we aren't allowed to read it. That's for Real Artists (TM). Not the likes of me. My constant yearning to look at art, read art books, buy or touch art supplies and materials, and hang out with Real Artists (TM) in no way indicates that there might be a shadow artist inside of me. Nuh-uh.
Every time I ever tried to sign up for an art class, it was full. I haven't had any formal training in visual arts or design since grade school. Perhaps this has helped me, because I've always thought my bad art was hilarious. I used to have a lovely roommate who had an MFA and had sold illustrations to national magazines. I showed her a sketch once and she literally laughed until she cried. I knew my drawing was naive and untutored, and I also knew that I have a certain gift for comedy, so this was a great result! I "can't" draw, just as I "can't" sing, but that doesn't stop me from drawing or singing when I feel the urge. If anything, it's a great way to troll my critics. Oh, does this bother you?? Perhaps I'll do it LOUDER!
(That, by the way, is the philosophy of my parrot when she feels she isn't getting enough attention).
Do what you want. It's harmless. Nobody but you knows a dang thing about your personal style. You are the authority on your own gift. Initiative comes from inside you, and the art wants to get out and live its life. Just let it out. You don't have to show it to anyone, or share it with anyone, or try to make money from it, and contrariwise, you have all the authority you need to put it on a billboard, declaim it from a megaphone, or put a ten million dollar price tag on it. There will always be a critic, just as there will always be a barking dog. If you can get criticized by random strangers just for existing within their field of awareness, might as well bring some of your work along, too.
I made this piece on my iPad with my index finger. I've never used it for that purpose before. (Either the device or the finger). I've also never done a work in color. It's a portrait from memory of my little cuppycake, who was unable to pose for me because she sleeps twelve hours a night. Noelie. I'm going to show it to her, and if past behavior is any indication, she'll kiss it with her beak. It's a work born of inspiration and true love, and it sucks, but I find it charming and I'll most likely do more. If you don't like it, blame it on Danielle Krysa and her partner-in-crime, illustrator Martha Rich.
This is more than a business productivity book. A key message is that we need to connect with others around us, giving our full attention to the people who are in the room with us. "We don't have the time to not listen." This can, of course, improve our business relationships, but more importantly, it can improve all everything. Culturally, it's become commonplace for people to look at their phones instead of making eye contact or holding a deep conversation. Time to look at this as a dumb, passing fad and return to true companionship.
The author is not immune from the tempting digital distractions of our age. She relates trying to edit her manuscript during yoga class, not just once, but for a few days! If I did this, my papers would quickly be ruined by all the sweat pouring off my forehead. Then I'm sure I would have toppled sideways. I am agog at the dedication this must have taken. What an astounding idea. It is surely a sign of our milieu that I am a bit impressed and almost want to try it myself. FIFTY MINUTES of singletasking? What are you, some swami?
Zack claims that singletasking makes us happier, more relaxed and focused, and more productive. I agree. I've worked at home for years now, setting my own schedule, and I alternate between deep dives and petty chores. When I spend time with people who still work traditional day jobs, it can be alarming. We don't notice the way that phone notifications constantly ruin our concentration. We don't realize that we're leaving people hanging when we break eye contact or are clearly dividing our attention. We don't notice how jangled we are on caffeine, either. Try the exercises in Singletasking, and take it from me: your daily life will feel more like you're on vacation, even as you get more done.
This book deserves to be an instant classic. It's snappy, funny, and short enough that even the most harried person can take it in. Read it in short bursts if you have to, but read it. If you can attend to even two pages without getting distracted, it will help gather your divided attention and start pulling your focus back together.
The second day of the World Domination Summit main stage event was at least equal to the first day. The standout presentation by Zach Anner stole the show. He's at least twice as funny as anyone else. His talk would have been amazing under any circumstances, but watching him carry on speaking with occasional tremors in his legs was deeply moving. Here's a guy with cerebral palsy, owning the audience from a wheelchair. It's impossible not to realize how few excuses we have for holding back on what we have to offer the world.
Zach took questions from the audience. One of them was, "What's the next step for you?" He replied, "Well, that would be my first step."
What can we do despite our limitations? What can we offer, even as our situations require us to receive?
We've met dozens of people during WDS, all of whom are burgeoning with ideas. We all have tremendous enthusiasm and high energy right now. Motivation tends to fade after an event like this, though, because the immediate physical presence of the community is gone. We go back to our accustomed environments and our tediously familiar routines. We start interacting with the usual naysayers in our lives again. The question becomes, What can we do to sustain any part of the energy we're feeling during the event? Can we find a way to create more of an inspiring, uplifting community in our home environments?
The incipient, nebulous, partially-formed dream projects in our collective cloud-brain are really only a small part of the story. The draw is that being immersed in a fairly large group of committed creative people generates a continuous stream of new ideas. It feels so easy to hear someone else's idea, add an observation, and watch the AHA! as it instantly shifts, pivots, or transmogrifies into something bigger and better. We can do so much more together than we can do alone.
There are, or could be, 'next steps' to bring many of these projects into fruition. We start to see how simple and straightforward it really can be. We feel a sense of obligation to the group to produce what we described. We've made public commitments, and others have been hooked and felt an emotional stake in whether they ever come to be. In that sense, the 'next steps' are about how we pull closer, how we give and take energy and ideas and support. What's the next step we can take to develop real-world bonds, to be part of each other's lives?
I've been working with chronic disorganization, squalor, and hoarding for over 20 years. I'm also a marathon runner who was diagnosed with fibromyalgia and thyroid disease 17 years ago.