Written by cbte on February 25th, 2010
That’s right. It’s “100 Things” time for cbte. It’s time to minimize. It’s time to ostracize. It’s time to quantify, to vivify, don’t stop, Robocop – OOOO WEEE, WHAT UP WITH THAT?
I have started a database listing of all of my possessions. As much as I want to start trashing things right now, I will resist the urge. I’m going to tally every last item in my possession and reveal the count to you. Then, I’m going to get rid of almost all of it.
I recently took EIGHT bags of items to Goodwill to be donated. I don’t have a lot of stuff to start with… I thought that was a lot then, but now that I’ve started counting my things, I realize that I still have WAY too many things. Especially clothing. I can’t wait to decrease my wardrobe by 75%. That’s right – my goal is to be left with only a quarter of my current wardrobe at the end of this journey. My personal opinion is that getting rid of extra clothing will be the biggest factor in attaining my goal of having 100 or less things.
I’m excited to enter this elite class of minimalism, and I hope that my excitement rubs off on you too. Feel free to share suggestions, ideas, thoughts, or anything of interest. Stay tuned for my initial list of ‘stuff’!
Written by cbte on February 24th, 2010
When I announced my debt-freedom to chesapeake, she asked me a question that I’m pretty sure is on everyone’s mind. “How does it feel?” To be honest, I couldn’t really say that I felt any different than I did during my servitude to Citibank. That all changed today, but let me first explain my initial reaction.
I knew my paycheck would be deposited into my checking account on Thursday, so I made the last payment to Citi the Friday prior. They always take so long to process payments. I figured I’d rather be debt-free right when the check came in, rather than getting my paycheck, clicking ‘submit’ online, and waiting another whole week. Preparing for the off-chance that the payment might actually go through quickly, I moved money around from my savings account to my checking account.
The payment took a full week to process. When it finally went through and I got my $1,000 savings account back in place, I wasn’t so much happy as I was relieved. I was relieved that I didn’t run out of money before that check came in. I’ve never run out of money before, but the thought of it still bothered me. I will never have that feeling again.
When the payment went through, everything on my Citibank login page disappeared. There was an error message in red letters stating that I had no loans with them. I got no confirmation email, no “thank you”, no pat on the back. Nothing. I was just a number to Citibank, and as of last Friday, I simply ceased to exist to them. Buzz Killington, party of one?
Over all, becoming debt-free hasn’t brought any overwhelming emotions in my life because my big goals are for huge savings, not just being debt-free. However, I experienced something new this morning that I’ve never experienced before.
I want to listen to The Dave Ramsey show live from 1-4PM CST at my office every day. My work computer doesn’t have Flash installed, and I can’t install it. The internet firewalls prevent almost ALL content from getting to my computer, especially high-bandwidth applications like internet radio streaming. I searched for an app on the Android Market to stream radio, but there are only 2, and they both suck. I can tether my 3G connection from my Android phone to my iPod Touch over WiFi, so I searched the Apple App Store for a solution.
Enter ooTunes, the App Store’s #1 radio streaming app. The catch? It’s $4.99. I’ve only paid for one app in the 2.5 years I’ve owned my iPod Touch. I don’t want to pay for apps, but I do want to hear Dave Ramsey for all three hours he broadcasts. You know what I did? I bought the app. And guess what? I finally know what it feels like to be debt-free. I bought something I wanted (but didn’t need) with money I earned, and it was okay. I feel no remorse, I feel no post-purchase guilt, and I’m totally going to enjoy the app even more, now that its purchase wasn’t financed by Citibank.
You know why Citibank didn’t cast a disapproving glance at me when I spent that $4.99? Because I don’t owe them anything. That $4.99 was mine to decide what to do with it. Its fate was not predestined – it was mine to choose. How awesome is that?
This is what being debt-free is, folks. It’s paying for things with dignity. When you buy something with your own money (and you have no other debts), the purchase feels different. It feels real. It doesn’t feel like an act. Maybe this whole experience is due to my OCD, and others won’t be able to relate with what I’m saying, but maybe not. There’s only one way to find out.
What’s keeping you from starting your total money makeover today?
Written by cbte on February 23rd, 2010
During one of our recent chats on minimalism, chesapeake recently mentioned to me that we should have “emergency packs”. I absolutely love the idea. In the spirit of minimalism, I emptied my backpack to see what I could cut back on. The picture above shows almost everything in my pack currently.
The only things I left out were my computer repair toolkit, MacBook power cord, and a few extra video cords. In the pile of stuff that you can see, there are some things that can go, and some that can stay.
A calculator, a stapler, love notes from chesapeake, TONS of cords… The good thing about the cords is that I use almost all of them unexpectedly at least twice a year, so it’s good to have them on hand.
However, I’m pretty sure I missed the point of what chesapeake suggested. An “emergency pack” surely needs more than an S-video cable and a computer repair kit, right? Unless the emergency at bay is a computer emergency.
Therein lies my new goal. Once I get a new backpack for my small amount of day-to-day items, I will use this Swiss Gear laptop backpack as my emergency pack. I will report back on that venture as soon as it becomes a reality.
Until then, my current goal is to get rid of all but “100 things”. Stay tuned…
Written by cbte on February 22nd, 2010
I take a relaxing stroll around my office building once or twice a day. I usually take this walk for one of three reasons: 1) It’s hot in the office, and I want to cool down, 2) I need to take a mental break from what I’m working on, or 3) I feel too static and need to get some dynamic in my life.
Reasons aside, I ponder many things on these walks. Here’s today’s “walk-thought”.
Why do people put so much money into their cars?
The first case is the high roller. The high roller undoubtedly has a Mercedes, BMW, or Jaguar. Heck, maybe even a shiny red Corvette. My guess is that the high roller stays in the office for 8.5 to 10 hours per day. That expensive piece of machinery is just sitting out there. The “purchase price” alone was probably upwards of fifty-thousand dollars. That’s more than the average annual income in the U.S. A year’s salary – just sitting there. Inert. Motionless. Not really the “ultimate driving machine” when it’s not being driven, eh?
After the high rollers come the over-achievers. You’ll notice the vehicle of the over-achiever by looking for lots of “add-ons”. For instance, you’ll see a Ford Expedition that looks relatively normal, except for the fact that it’s completely “rollin on dubs”. We’re talking 24” chrome rims. It also might have the ever-questionable “faux engine vents” on the front fenders. Why do people put those on their cars? They’re not even functional. They’re stupid. Also, when you’re driving in your car, can you see your rims? Can you see your engine vents?
The last group of cars you’ll notice outside is owned by the Kool-Aid drinkers. These car buyers saw a commercial on TV that said they would be getting a fantastic deal on this shiny new car, if they dropped everything and bought it RIGHT NOW. They read the Consumer Reports reviews, and they knew exactly which Red Tag vehicle to snatch up – before they’re gone! These are your current year, freshly washed, no-extra-options vehicles. Some of them are hideously designed, but they’re great cars!
Here’s my question. Why do so many people decide to put so much time, effort, and money into an item that will be inactive for approximately 93% of ownership? You drive 30 minutes to work. Maybe you spend 30 minutes on the road going out to lunch. 30 minutes home. 30 minutes to the kids’ soccer practice and back at the end of the day. That’s 1.5 hours out of 24 hours in a day. 6.25% of your day is spent driving your car.
The media markets cars harder than virtually any other product. It is constantly drilled into our heads that we need the latest and greatest – or we won’t be happy. Try this little test for me. Watch the BMW commercial. Get all pumped up about driving like a superhero across the mountainside. Then, go buy the BMW, and find that mountainside road that has no traffic. Drive to work feeling like a superhero – in stop-and-go, 5 mph average speed traffic. Doesn’t feel the same as the ad made you think it would, does it?
I am all for technology. I think cars are great tools. I think they are extremely useful, and I don’t think they should be taken away from anyone. However, I think society has over-indulged in cars. We spend 2,000 hours a year working to spend a third of our paychecks on car payments, repairs, inspections, gas, insurance, and fluffy steering wheel covers when we’re not even using the cars 93% of our lives.
The next time you step into your freshly-waxed baby and turn the key, think of all the amazing things you could do in your life if you called off your love affair with cars.
Written by cbte on February 19th, 2010
When I was 18 years old, I ‘bought’ a car. A beautiful Volvo S70. I was so excited to own a car! I was going to be able to drive everywhere, whenever I wanted, as often as I wished. However, the car came with a catch – a ten-thousand dollar loan from a credit union. It was initially set to be paid off in 60 months.
Imagine that. I get all excited about getting my first car, but along with it come five years of servitude to a bank that knows nothing of my joy. Something’s off there, isn’t it? I ended up paying the car off in less than two years because I so disliked the idea of owing someone else money.
Jump five years in the future. I’ve just finished college. I have a bachelor’s degree in electrical engineering! How exciting! Now I get to build the computer chips that make the world go round, and live happily ever after. Right? Wait… I paid for most of my college education with part-time jobs, full-time jobs, and scholarships – but I still had an extra ten-thousand dollars left in student loans. What’s with this recurring appearance of ten-thousand dollars in debt?
Now jump nine months in the future, to the present day. I just paid off the last bit of my student loan. I don’t owe any money to anyone! Not a dime owed on a car note, a mortgage, a credit card, or a student loan. I got my current full-time job on the last day of November 2009. I sent in (clicked the online button for) the last payment of my student loan in mid-February 2010. I am completely done, and I will never borrow another dollar again. It’s an amazing feeling of freedom!
Some people might think I should have been investing my hard-earned money, rather than paying off my debts. Perhaps an investment with a larger rate-of-return than the interest rate on the debts would have put me at a larger profit today. Increased levels of debt bring on increased levels of risk. So, no thanks – I’ll stick with paying off the debt.
I’m now working on building a six-month emergency fund. Six months of expenses – packed away in a money market account. For me, it’s ten-thousand dollars. Yep, there’s that 10,000 number again. The first two times I encountered that number, I was its slave. Now, it will be my slave. Can you believe that?
With a six-month emergency fund in place and my retirement contributions at 15% of my salary – and being only 24 years old – if I retire at 70 years old, with 10% annual salary increases, and investment rates-of-return at 12%, I will retire with $38,904,646. You might think 10% is a bit high for the annual salary increase. I’ve consistently been a top-performer at the places I’ve worked, and I constantly strive for 10%. That’s why I choose 10% for the calculations. What if annual increases were only 2%? And what if the rate-of-return was only 8%? I would still retire with $5,908,878. Wow.
Of course, if you read this blog often, you know that my lifestyle is one of minimalism. This means I’m probably not going to jump up the corporate ladder my whole life – ultimately leading to these gargantuan retirement numbers; however, I will still strive to make at least $50,000 per year – doing other unorthodox things. What if that’s all I made until retirement, with the original 15% contribution? Let’s see. With 15% contributed of a yearly $50,000 income, and a rate of 12% return-on-investment, I will retire with $19,523,915.
It baffles me that people rely on the government for sustenance after retirement! There is so much potential for winning with money! You know what I didn’t even calculate into this equation? I’m going to get married some day. With two $50k incomes per year – and no increases EVER – the above number jumps to $39,047,830. Unbelievable.
The whole point of becoming debt-free is attaining the freedom that comes with it. When my six-month emergency fund is full, I will be free to choose whichever career path I want. If I want to design a website that might take two months to start earning a serious income – I can do that. I have no obligations, and I have money in the bank (shawty whatcha drank?). The possibilities are now endless. My end-goal is to have a $50,000 emergency fund, but the first stop on that ride is $10,000.
I hope this motivates you to make the changes necessary in your life to become debt-free. It will require serious restraint, and you’ll get made fun of along the way, but I guarantee you it is worth it.
Written by cbte on February 17th, 2010
Valentine’s Day has come and gone. Did you eat lots of chocolate? Did you do something romantic for your sweety? (I did.) Did you give up on your New Year’s Resolutions?
Whoa! We were being all friendly and personal there, and then I had to go and ask that crazy question! What on earth could I be getting at? I’ll tell you. The average New Year’s resolution lasts until Valentine’s day. Yep, just a month and a half.
Have you given up on a recently set goal? Maybe you didn’t even realize when it slipped to the back burner. None of that matters now. What matters now is that you make your goals your top priority. The instant you lose traction with your goals, you kindly let mediocrity into your life.
Don’t stop reaching further. When it feels like you just can’t create any more, can’t push any harder, can’t give any extra – keep going. That’s the point that separates the “same old” from greatness.
Don’t wait until January 1 rolls around again. Resolve now. Resolve to be better. Resolve to be great.
Written by cbte on February 10th, 2010
You’ve heard it all before, on midnight cable TV. “Buy our product, and you’ll be a millionaire in a week!” Instant gratification sounds great, until you realize that there’s really no gratification after the instant has passed. What are we missing? Why isn’t life as easy as we’ve been told it would be? There must be a blue pill somewhere…
I’m here to tell you that there is no magic bullet. There is no overnight solution. If you want to truly achieve your minimalist and financial goals, you’re going to have to work hard.
However. There is one change you can make in your life today that will instantly improve your quest for minimalism and financial freedom. It’s a idiculously simple change that you may find extremely difficult. This practice is far from ubiquitous today, but if you start now, your progress will rocket toward your goals.
“No.” It’s that simple. You have to start using the word that has for so long escaped our society. You have to start saying “No.”
No, you don’t need to go out to eat 6 times this week. No, you don’t need another LCD TV to hang on another wall, in a room you don’t even use. No, you don’t need 7 more shirts to hang in your over-crowded closet.
As soon as you start saying no, you’ll begin to feel the reins of control fall back into your hands. No longer will your envy of others govern the purchases you make. And do you know what happens when you stop swiping the card at every moment’s impulse? You have more money!
Also, your strides toward minimalism become larger and larger. Or should I say, smaller and smaller 
The less you buy, and the less you concentrate on buying, the more intense your focus becomes on minimalism. It’s more than just buying less stuff. It’s about taking the materialism out of your life and focusing on things that matter, like relationships, travel, and experiences.
How long has it been since you said no? Are you afraid of what might happen if you start? There are only 2 possible outcomes – it will improve your life or it won’t. Also, if it doesn’t improve your life, you’re not doing it right. Stop letting your emotions dictate your life, and start saying No.
Written by cbte on February 10th, 2010
When you get to the end of the month, and you watch your checking account decrescendo to a number smaller than the number of bananas in your kitchen, do you ever wonder where the money went? When asked to list their monthly expenses, most people would reply with:
-rent/mortgage
-car payment
-car insurance
-phone/cable/internet
-credit cards/loans/other debt payments
This sounds about right, doesn’t it? But if those are the only expenses for the month, where did the rest go? There’s eating out, entertainment, and trinkets. That’s all, right?
What do you think you spend on your car on a monthly basis? I’ll break down my car expenses for 2010, as an example.
– Car payment: none (paid for)
– Insurance: $110/month
– Gas: $160/month
– Oil Change: $35/3 months
– New Tires: $240/year (cheapest available tires)
– Car Repairs (during 2010)
– Brake Rotors and Pads: $380
– Tie-rods and Tie-rod ends: $100
– Fuel Injector Seals/Fuel Filter: $40
– Wheel bearings: $100
– CV axle: $140
– Heater core: $160
– Registration: $56.50/year
– Inspection: $14.50/year
– Parking fees: $40/year
I perform all of the above repairs myself, so multiply each one by about 3 and you’ll get the estimate cost of having a mechanic do them for you. This is only a fraction of the cost of vehicle ownership, but let’s add up what we’ve got so far. The above list totals up to $4,651.
Not only is that (a minimum of) $4,651 of potentially extra money every year, it’s also a potential decrease in monthly obligations. That’s $387 per month that I will be able to put towards something else. If you put $4,651 per year into an 8% rate-of-return investment, you’d have $251,544.12, after 20 years. Wow.
Not having a car also forces you to be more efficient. Whether you’re going to take a bus, a cab, or ride a bike, you’ll have to plan your excursions better than you do with a car. Buses have a set schedule. Bikes don’t (normally) go as fast as cars. Cabs aren’t waiting to go in your garage.
Dropping the car also means dropping mental baggage. When you don’t have to constantly worry about the transmission going out, you can focus more on the things that matter in life.
My personal goal is to be completely car-free by 2011. If I can do it before that, I most certainly will. If you’ve successfully gone car-free, please tell me about your experiences!
Written by cbte on February 9th, 2010
I am this close to being debt-free. I won’t tell you exactly how close I am, but I promise to devote an entire post to the joyous event, upon its occurence. Why am I paying off all my debt? Why have I made the choice to never borrow money again? The answer is multi-faceted, but simple.
I don’t ever want to feel like I have no control of my circumstances. As a matter of fact, I want to always be in complete control of my circumstances. With no debt and a minimalistic lifestyle, there’s no burden to stay in a stressful job. The main reason people put up with jobs they don’t like is to pay the bills.
When you have a student loan, a car loan, credit cards, and a mortgage, you can’t just walk away from your 9-5 obligation. When a family is counting on you to put food on the table – and you have the aforementioned debts – you don’t have the option of leaving your stressful job.
Granted, I don’t have a family to provide for yet, but I don’t want to ever be in that situation. I choose to maintain a lifestyle that allows me to make my own decisions – not my debt.
What freedom will this give me? The most important freedom to me is the freedom of adventure. I love learning and trying new things. I have a very difficult time doing the same thing for an extended period of time. Living a minimal lifestyle that costs next to nothing to maintain gives me the freedom of constantly trying new things.
Maybe tomorrow I’ll want to design and develop a website powered by Ruby on Rails. Maybe next month I’ll want to perform bike restorations for people with old neglected bikes. As long as I meet a minimum income requirement, I can do virtually anything I want! Isn’t that cool?
There’s a very good chance that somewhere along the way I’m going to become intimately interested in a very specific skillset, and I will begin to focus completely on that skillset. Once this happens, I will have found my niche – where I’ll focus all my future efforts. When I get to that point, I will have, without a doubt found the thing that makes me truly happy.
That’s why I’m becoming debt-free. I will no longer wake up and think, “Oh boy, here goes another long day.” If I’m fed up with what I’m doing, I’ll do something else. It will be that simple because I won’t have major financial obligations to hold me down.
So ask yourself, do you want total control of your life? Are your Platinum Reward Points really worth it? Do you want Sallie Mae to forever occupy your guest bedroom?
Take control. Take your life back. Be debt-free.
Written by cbte on February 9th, 2010
Do you ever wonder what you’re meant to contribute to the world? Do you ever wonder if you’ve achieved success? What does success even really mean?
If you’re confused about any of this, you are not alone. Many people become more bewildered every day, about these very things. Perhaps you feel out of place at your job, in your classes, or with your friends. It’s extremely common. Most people just don’t want to talk about it.
If you feel like your life is not a true reflection of you, you’re headed in the right direction. You realize that you want to make a change, and every day spent in your current situation is a reminder of what you don’t want. Don’t be depressed because you despise your job – be elated that you know exactly what not to do for the rest of your life! Take your displeasure, and transform your life into something awesome!
Success is defined by a desired result. If you want to cook breakfast, and you cook breakfast, you’ve been successful at cooking breakfast. Don’t use the term loosely and base your life on that loose definition. A millionaire is not by default successful. He or she is only successful at being a millionaire. Just because you don’t have what you want right now, you’re not instantly unsuccessful.
Get Some Small Wins
If you’re feeling down about one area of your life, look at all the other things you’re doing well. Maybe you’re not in the job of your dreams, but your relationship is going just swell. There’s something to celebrate! Perhaps you’ve been keeping up a workout regimen for more than 2 weeks. Way to go! Start getting some small wins, and the big wins will come in stride.
If your goal is to achieve (your definition of) freedom, start aiming for it now. Stop obsessing over the things you dread in life, and make a plan to change them. Once you make the plan, do it! Donate all those extra clothes, start your weekly running routine, start applying for funner jobs. Don’t get caught up in the “little man can’t get ahead” mentality and give up completely. You have too much potential for that. The fact that you’re reading this post shows that you want change badly enough to go and get it.
So you want financial freedom? Freedom to live anywhere? Freedom to work where ever you please? Get out a pen and paper, write your goals down, tack them up on the wall, and get to it! There’s no time better to succeed than right now!
