We’re back after a short break, but what on earth happened to the weather? When it starts to rain, after a week of scorching hot sun you know British summertime has arrived!
Our three part series on “Ten practical steps to becoming more self sufficient” generated a lot of interest, but still no comments! So far, we’ve had one comment posted, and based on our site analytics and the use of our contact form, we know we have an increasing number of readers. We can only conclude you are a shy crowd! C’mon get involved! The more we talk, the more we all learn!
In particular, and based on feedback, point 28 “Alternative Investments” generated significant interest and therefore I thought we’d explore self sufficiency from a financial angle in more detail.
As I’ve said several times, if you want to be remotely self sufficient you need to clear your debt. I think that message has got across loud and clear.
You also need to legally minimise your tax footprint. We’ll deal with that another time.
Right now I want to share something very important with you.
This is probably one of the most important financial things I’ve learned. I learned it at an early age and my daughter (she’s nine) has already learned it. Despite that, we all forget this simple lesson and therefore it’s time for a reminder. It is powerful…yet simple, incredibly important…yet obvious. I really hope this article begins to make you ask yourself some questions, and if you do that, and are brutally honest with yourself, this may be the most important article you read in your life!
Here’s a statement that will put you in the right mindset:
“It’s not the person who has the most income who is necessarily the wealthiest. It is the person who hangs on to the biggest proportion of his or her income”.
Let’s explore that a moment.
As people’s income increases, typically so do their outgoings. Quite often this is because we spend our money on “treats” for one reason: “because we deserve it after all our hard work”.
Really? Do we? Do we REALLY deserve to spend our hard earned income on a piece of clothing (sorry ladies), or an electronic gizmo (men, you know this is you!) with a limited life? Think about it. Do we REALLY?
NOW THINK ABOUT IT AGAIN!
NOW THINK REALLY HARD ABOUT IT YET AGAIN!
The average person spends the majority of their time each week working. That is lost time, spent on a worthy endeavour, but it’s probably not something you’d choose to do unless you are one of the enlightened and lucky people who is living their dream, and is passionate about what they do! Good for you, if this is you! We’re all trying to get to where you are.
So for those hours spent, you get paid an amount of money. Your job over the next month is to work out how you can hold on to as much of that money as possible. This is your escape route. This is your opportunity to work towards a happier self sufficient life.
Why are you doing this? Well, every pound you save is a seed. It has an opportunity to be invested in something that can provide you with freedom and a benefit for the rest of your life.
How much does that Starbucks coffee cost? How long does it last?
THINK ABOUT IT.
