Life Makeover

There is a popular show on television (or was since I don't have television anymore) called Home Makeover. The premise of the show was that a crew of people went into a home and redid an entire house in a matter of days. It was interesting to see how something went from entirely rundown to a masterpiece in less than a week. Of course, it helped that experts and a large sum of money were available. Nevertheless, the outcome was that the entire situation was changed quickly.

Life Makeover

The truth is that most people could use a 'life makeover'. When you look at how most people are living, it is tragic. We live in a world (at least in the Western culture) where opportunities and freedoms should be prevalent. Yet, it seems that most suffer under the plight of slavery. No matter how much money they earn, they are still indebted to someone else. Basic decisions seem to be made by others in an effort to keep up. Many work, as an example, just to pay the bills. Their entire careers are spent to do nothing more than 'make ends meet'. Life doesn't have to be this way.

Another simply fact is that people are horrifically overweight. Why do I mention this point? My reasoning is because this is something that almost everyone can do something about in light of what the consequences are. The medical community does not keep it a secret of what awaits someone who carries an extra 50 or 100 pounds around. Diabetes, heart disease, and death are all part of the equation.

Health and finances are two areas that we all should focus our attention upon. These are the aspects where one can instantly begin a 'life makeover'. Of course to do this, one needs to alter his or her thinking. Fortunately, this is something that can also be done in an instant. Just like with the television program, you life can be radically different in under a week.

Mental Makeover

I write a great deal about the importance of mindset in all we do. Out of our thoughts spring all action. Action is the bridge between the invisible world (our mind) and the physical world. Everything you see around you started as a thought. Most, however, use their thoughts negatively as opposed for positive gain. For example, they think about that ice cream sundae with extra whipped cream and syrup. As a thought, this hold no destructive power. Sadly, most succumb to it and end up ingesting the sundae.

A minimalist mindset is a terrific way for everyone to begin this makeover. I find that few are in a situation where they have 'too little stuff'. Instead, most are at the other end: they simply have too much crap. Going through and eliminating all the excess from their life is an effective beginning. Many need a course in the difference between wants and needs but those who are honest realize that they don't need most of what they think they do. You can survive without cable television (and that $70 a month bill). I am living proof of that.

Looking at the world differently is what is required. Most believe what they were taught. And what was that? Topics such as material wealth is what determines a person's value were drilled into us. We are concerned about the opinions of others because that is what we were taught. Dogma is swallowed without questioning because to do so would be heresy. The truth is your life is too precious to waste by being under the rule of others. Blind faith is what causes people to blow themselves up for an idea. We saw this in WWII with the Japanese fighter pilots and we see it today with suicide bombers. While most will acknowledge the flaw in this thinking, few really ever question their own.

Understanding that it is our thinking that creates our successes and failures is the fundamental premise behind this change. In short, it requires us to admit that we look at things improperly. Society will allow us to cut ourselves slack and achieve less than is possible. The reasoning is the world loves mediocrity. Everything is done in a way to tear you down. Success is for the strong; the weak succumb to the intentions of others.

Become the Minority

The minority in our culture is not based upon race, creed, ethnicity, or religion. Instead, the minority are those who are willing to go against the mainstream thought and reach out for the ideal that is offered. In my viewpoint, the one thing I think people need to focus upon is freedom. There is no honor in being enslaved against your will. Ignorance is another thing that should not be held in virtue. The fact that most are completely asleep in their lives is no excuse. I am here to start the revolution that wakes people up. Do I think that most will? Absolutely not. However, I am seeking out the few who have the mental strength to break free from the chains of bondage placed upon them by society. I want to find the minority.

Few people are willing to engage in this level of internal search. That is why most blindly follow the path laid out for them by others. It is easier to remain part of the masses as opposed to stepping out on their own. Strength is not the average person's strong point. That is why they are called sheep (flock is another word). Living contrary to what is commonly accepted is not on the agenda.

The world is in need of people who are opposite this ilk. A life makeover entails understanding that you can make a difference and that big things are possible. Everyone seeks harmony while succumbing to the desires of the powerful. They look to organizations or institutions which enslave them. Obedience is the calling of the day. My idea is different. I believe what is needed is people who are willing to alter their lives individually. The status quo no longer works. Life is full of plenty of bloodsuckers. It is time to cast them off. Individual power, when coupled with others, has the ability to ascend all ladders of society. It is now time to focus upon our own life and let others fend for themselves. Time is too valuable to waste upon the ingrates we encounter on a daily basis.

The Ego

Why would a blog about freedom deal with the subject of 'ego'? Does this mean that we have now entered the realm of psychology? Absolutely!

The reason why I am going to touch upon this subject is because it is our ego that causes us so much destruction and turmoil in our lives. I found that freedom is given away piece-by-piece simply because many listen to the ego. If they were able to control this animal, their lives would be enriched to a much greater degree.

Wealth

Everybody needs to decide for themselves what it means to be wealthy. For many, it means having all the nice cars, houses, and art collections. This is something that is wonderful to attain if one is able to keep it in the proper perspective. Sadly, most do not. Instead, they allow these items to own them. The possessions become the most important thing. This is the ego at work but few realize it.

To me, wealth equates to freedom. That is how I imagine it in my mind. Therefore, one who is not free is not considered wealthy by me. Sure that person might have a lot of money or things but the truth is that most are working their pants off to maintain it. People of this ilk are often over stressed, leveraged, and walking the fine line of economic collapse. They spend long hours trying to maintain their standards only to realize at the end they cannot take it with them. Few spend time in their dying days wishing they spent more time at the office working. Regret is commonplace among these people.

Wayne Dyer writes in many of his books about detachment. Now, I am not going to get metaphysical with you because personally I find it a waste of time. My preference is for the basics of the here and now. Regardless of that outlook, My. Dyer brings up some valid points. The essence of life is not wrapped up in things, achievement, or 'stuff'. Certainly those things are all nice. However, it is when one allows the ego takes over that those ends start taking control. And, the danger lies in the fact that enough is never enough for the ego. More is the mantra of this motivator. No matter what is achieved, the ego needs to be fed a larger quantity. Happiness can never result. This leads to an unsatisfied life.

That is why I believe a wealthy person is one who attained freedom in his or her life. This is a concept that holds true without regard to the amount of money attained. It is vital to point out that this is not proclaiming that poverty is the means to this end either. Hear me clearly when I state there is nothing wrong with material things or assets as long as they are held in their proper perspective. And, the only way to do this is to remove the ego from the situation as much as possible.

Self Esteem

A healthy self esteem is one of the major components of living a free life. When you consider the things the ego makes us do, you quickly realize that is the path to slavery. Consider all the creditors the average person is responsible for paying. How many of those purchases are made by the ego? Do you think a person with a healthy self worth needs a 'McMansion' that he or she cannot afford? Does a person of this nature buy an expensive foreign sports car amassing a large monthly payment for the next 60 months? The answer is NO. Someone who is healthy in this manner makes smart decisions based upon economic reality.

Personally, I could care what my neighbors think. My life is not lived according to their viewpoints. Recently, I realized that many of the people in my neighborhood purchased new vehicles. Now, I am a realist which leads me to believe these people did not pay cash for these automobiles. Instead, the finance these purchases. This is exchanging their time for a new asset. Sadly, it is one that will not appreciate. New vehicles depreciate the minute they are driven off the lot (that means goes down in value). Therefore, these people have years of payments for something that is going down in worth every month. Their car will be used long before the payments are completed.

This brings up the question, did these people need to purchase these cars? In my estimation they did not. From what I could see, they had vehicles that worked. In fact, some of the ones they got rid of are newer than the cars I have. Thus I surmise that ego was a factor in these purchasing decisions. Since I am not concerned with what others think, I am quite content to drive around in my automobiles that total 23 years of age between the two.

Please bear in mind the ego will use every tactic to take control. If you asked my neighbors if ego was the factor in making the decisions, they would deny it. They would state a host of other reasons for purchase like the reliability of a new vehicle (warranty), the deal they got, or the fact that their older car needed work. Whatever the reasoning, it never can justify the freedom sacrificed. Simply put, if it weren't for the ego, these purchases most likely would have not been made. But, few ever think of freedom until it is too late.

Therefore, I believe it most important for us to realize that our ego is a powerful mechanism that will only create misery and pain. The solution to this outcome is to continually work on our self esteem. The truth is that what you drive is not a reflection on you in any manner. Madison Avenue would like to make you believe that it is but that is incorrect. The qualities that reside within you are not contingent upon what you wear, the brand of show you wear, or any other material object. If you are a worthy person, it is because of the qualities you exhibit in your daily life. There are a lot of jackasses living in wealthy neighborhoods. At the same time, some of the best people are routinely overlooked because they don't exhibit the material wealth. Instead, they are people who are comfortable with themselves. They understand that things do not make them better people.

Understand this concept and begin to make purchasing decisions accordingly.

Thinking Differently

There is a saying 'if you want to get the results others get, do what they do". While this is true, there is a point that this outlook misses. The truth is that the only reason we do what others do is because we think the way they do. Therefore, if you want what others have, model your thinking after theirs.

Of course, this brings me to the point that I feel encompasses most of society: few pay attention to what they think about. Instead, they default to a particular mindset that was created by the environment they grew up in. This is where the term 'group think' comes from. People of the same ilk tend to think the same.

When it comes to freedom, my belief is that we need to think differently than the average person. The reason why I say this is because most people are woefully unhappy with their present state of affairs. They live existences that are mired in average. Exceptional, intoxicating, or motivating are not terms applied to how they live. Instead, because of the decisions that are made on a daily basis, people end up being slaves. They allow society to take over without a fight. The indoctrination process ensures that submission is almost completed by the time one reaches adulthood.

If you are going to continue to think in the same manner as everyone else, then you are assured of following in this same pattern. Strategic rebellion is always a good thing. Of course, the word strategic guarantees that we are not rebelling just to rebel. That is a childish approach. This method means that someone actively looks at what society promotes and consciously decides what applies. In each instance, one needs to ask, is this belief helping or hindering my life? The answer dictates whether that belief remains or is removed.

I write often about the importance of thinking. There is nothing more crucial than taking control of your mindset. It is the one factor, if selected, that you can control in all instances. Considering freedom in everything you do is a route that few take. Most never consider the impact of present decisions on future freedom. For example, when one buys a car, he or she usually looks at the monthly payment as to whether it is affordable. Rarely does one take the time to really consider how this decision will affect future freedom. A monthly expense compounded over a number of years equates to a big loss. The opportunity cost of the car is high when compared to investing that money at an average return.

Understanding the mistaken thinking that the average person presents on a daily basis is vital in our pursuit of total freedom. Over the next few posts I am going to spell out some how this appears. Beginning the process in our mind will ensure success. Remember, it isn't the actions of others that we are concerned with but, rather, the thinking behind it.

1000%

This is a concept that makes so much sense but is rarely applied in most people's lives. Looking around at the way the average person approaches his or her life, it is easy to realize that most operate on only a few percent. What do I mean by this? Basically, those who live exceptional lives approach everything with 1000% effort. They give all they have to the task they are confronted with.

Getting Results

One of the major factors in determining the results we get is the energy which we approach a particular task. Those who are able to summon the motivation to give all effort attain a greater degree of success than those who do not. This is an idea that has been around for ages. Those who give it their all achieve more. It is that simple.

Of course, I am preaching to the choir since everyone experiences this in life to one degree or another. Have you ever noticed how effortless it is to be totally committed to a task when it is something that you love? There are times when we have 1000% effort and are completely focused upon what we are doing. During those intervals, we experience a greater degree of success and happiness. Some people call it being in the zone.

However, success in life is not determined by how well we do those things that we love. The truth is that the level of achievement we attain is a direct result of how well we do those things that we dislike. Life mandates that we engage in certain activities which are not pleasurable in our eyes. Paying bills is something that comes to mind. Nevertheless, this is something that all of us have to do. Approaching this task in a lethargic manner will result in us making mistakes. It also indicates how we engage in the other tasks in life that we detest. Operating at 1000% means that we approach everything with the greatest amount of energy and enthusiasm we can muster.

Getting results sometimes means getting past the 'chores' in our lives as quickly as we can. It also means that we do them to the best of our ability. Certainly many of these tasks are not life and death. But as I said, they are an indicator of our overall outlook.

Go As Far As Possible

Most people settle in life. They adopt the outlook of a slave because society establishes it. People follow the edicts of our culture by believing in what is promoted. We enslave ourselves financially with our purchasing decisions. Career paths are followed even though they are detested for fear of changing. People spend their lives married to a man or woman they dislike simply because dogma says to split is a sin. The bottom line is that living exceptionally is not in the plans for most people. Instead, they opt to sacrifice their freedom in every manner.

A 1000% mindset means that all is going to be attained. We live in a world where you have 360 degrees of possibilities. You can do whatever you want. When you adopt the principles that I write about here and seek to implement them with all the effort you can muster, you will see far different outcomes. The world literally can become your oyster.

I often write about the importance of having the minimalist mindset. Here is an example of how you can do something at 1000%. Approach the stuff in your life with the outlook that you are going to declutter to the max. Get rid of all the excess you can with the knowledge that this is one major step to your living a free life. Seek to control your spending by only purchasing that which is truly needed. Seek the least expensive approach to those things that you do require while saving the excess. Start studying, learning, and implementing ideas for investing to enable your money to grow. Find those things in your life that are enslaving you and eliminate them immediately. A change in outlook is often all that is required.

Quantify

The idea is to quantify your level of effort and motivation. While doing this in every situation is a bit neurotic, the point is to start to focusing on increasing your level as you approach things. Of course, statistically speaking we knowing that 100% effort is the maximum. Thus, 1000% is unrealistic. I use this number to emphasize going all out in everything.

Which brings up the next hindrance: we know that 100% effort in all we do is not feasible. There simply are times when we are tired, frustrated, or bored. It is these moments that a system to quantify our efforts is helpful. If, for example, we are approaching something that will we give 10% effort to, is it possible to go to 20%? Notice how we didn't move to 100% but, rather, simply tried to double our efforts. Certainly giving 1/5 of our abilities is not something that is too out of line. This is something that most of us can handle in every situation, wouldn't you agree?

Since we believe this is possible, recognize the happened. We just doubled the amount of effort and motivation we normally had. How do you think this will affect our results? I tend to believe, that over the long haul, we will attain a better outcome because of this. That is how powerful a quantifying system can be.

Therefore, whatever you are doing from now on, simply ask yourself what level am I at presently. Determine a number and seek to improve on it. If you find you are at 30%, seek out ways to make it 40% or 50%. Any increase will result in a more positive outcome for that particular task. However, the big payoff comes when you develop the habit of continually raising your life to another level. This is where you start move from the average life to the exceptional.

Begin using this tactic today.

Law of Diminishing Returns

This is a concept that is crucial to understand if you are to enjoy freedom in your life. As I wrote on a number of occasions, managing your financial resources is a vital part of this quest. The majority of society throws away their freedom one decision-at-a-time. Their slavery is insured by each transaction. Most fail to understand the concept that it isn't what you earn but, rather, what you spend that matters.

Impulse Buying

The first thing that absolutely destroys people is the urge for instant gratification. This often comes in the form of impulse buying. A person sees an item and he or she just 'has to have it'. It is as if life will cease to exist if one fails to make this purchase. My experience dictates that nothing is of this epic proportion. The truth is that your life will continue if you do not make a particular purchase.

Impulse buying is what provides the marketers with all their power. People do not realize how they are enslaved simply by their actions in a store. Have you ever noticed how great consideration is given to how things are displayed? This starts with the design of the packaging to how things are placed in a store. All efforts are taken with the intention of creating an urge within you that needs satisfying.

This is what leads to the impulse buy on your part. Items that fall into this category of purchase are not planned. One only makes a decision to purchase after receiving the stimulus in the store. Sales are one of the most popular methods utilized. One understands that he or she doesn't need the item yet the idea of passing up the opportunity to save 75% is just too much. This is the classic example where the unenlightened person thinks 75% was saved when the truth is that 25% was spent.

Diminishing Returns

The next part of this idea is that concept of diminishing returns. What this basically means is that you will not want the particular item as much as you want it when you are in the store. Over time, the return it provides in terms of your desire lessens. Most of us have experienced this in one form or another. Think back to a time where there was something that you 'just had to have'. What happened when you got home. In many instances it was put into a closet only to be left there for months (or years). Your excitement for the item waned.

Getting back to our example, this is how one can spend 25% instead of saving 75%. If an item is not needed, and is ultimately not utilized, then money was wasted. Nothing is for free. Even though the item was on sale, the cost advantage did not outweigh the rapid decline in returns. The diminishing return factor hit immediately upon arriving home. Every day people model this same behavior. Avoiding the diminishing returns by resisting impulse purchases is one step to financial freedom.

Familiarity

The other aspect where diminishing returns enters into the picture is with the idea of familiarity. Applying this idea to purchases will enable one to save substantial sums of money. Again, most people fall into the trap of paying extra for something that will soon be familiar.

To explain this concept, I only need to point to how people take things for granted. When something is new, we appreciate it (in some instances). However, the longer we have the item, i.e. the more familiar we are with it, the less we value it. We simply take it for granted. I suppose this is human nature which means we are all apt to fall into this. Therefore, it is crucial we know how this affects our purchasing decisions.

I will offer an example that we discussed recently while do our evening walk. We live near the beach but not on the beach. It is about a 10 minute drive for us. Of course, being beach lovers and people who enjoy the scenic view of the ocean, the mention of purchasing something right on the beach occurred more than once. However, it is quickly dispelled by this concept.

There are many people who buy on the ocean simply for the view. They like looking out and seeing the water. The same is true for people who are up in the mountains. People of this ilk like the panoramic picture presented each time they look out the window. However, most of them fall prey to the law of diminishing returns.

Here is why:

When something is new and unfamiliar, we are apt to pay the most attention. Thus, one will enjoy the view the most when he or she first moves into the house. As time goes by, the view becomes less noticeable. It is still there while presenting the same grandeur. However, the person's outlook changed. The scenery became so familiar that one hardly notices. Of course, this changes when relatives come by and mention the wonderful view. Then the home owner might give it a passing look.

The reason why returns are involved is because the is a financial price involved. When the house was purchased, monies were exchanged. And, when one opts for a beachfront property, he or she is paying a premium for the view. This is alright as long as it is appreciated. However, as was shown, once the view isn't enjoyed to the same degree, the person is left with the same inflated mortgage payment. Hence more money is paid for less in return.

To put numbers to this, I came up with a price of $250,000 for a beachfront condo versus $125,000 for a house in another area. While the numbers might not be accurate the concept is. Let us suppose these units had a mortgage payment of $2,500 and $1,250 respectively. Under this scenario, the owner is paying $1,250 for the view (I realize other factors might be involved in a purchasing decision but you will understand the point). This means our owner is spending $15,000 a year to experience the law of diminishing returns.

That is a healthy sum no matter how wealthy you are.

The Solution

How do we avoid this situation? The simply answer is to not purchase. Go with the lower priced alternative for one simple reason. Ownership always breeds familiarity. It is the nature of having something for a long time. When you see it day after day, it becomes the norm. Owning equates to the law of diminishing returns.

That being said, do you know what does not offer this? Renting. When one rents something, it doesnt have the chance to become familiar thus is apt to be appreciated to a greater degree. In our culture, this method is overlooked except in areas that do not seem to make financial sense (leasing cars is an example).

Getting back to our example about the beach condo, one could establish greater freedom by renting as opposed to buying. Now, please do not mistake that to mean long term renting since the same thing results as purchasing. What I mean is to rent a place on the beach for a short period of time to ensure the enjoyment remains high.

In our example, I could save $1,250 a month by opting for the lower priced property. With this money, I could save for a really nice vacation on the beach. In my area, I found a place I could rent for $1,200 a week. Thus, my week on the beach is paid for after only one mortgage payment. Financially I am freer since my mortgage is lower and I will appreciate the view because I only have it for a short period of time. A week is not enough time for the law of diminishing returns to kick in.

One final thought: I can do this every year if I desire while saving myself almost $14,000. The fact that I am able to control my emotions when making a purchase allows me to experience greater freedom in my daily life. As you can see, suddenly I can afford something that is typically reserved for well to do.

Remember this idea the next time you are faced with a purchasing decision.

Entitlement Mindset

Have you ever noticed that people walking around today feel they are entitled to have certain things? It is almost as if they believe it is their birthright to enjoy some of the finer things in life. The fact that they cannot comfortably afford them is irrelevant. What matters is they are able to purchase the product because doing without is unfathomable to them.

Debt: Fuels Consummerism

People can afford to buy what they cannot afford. This is something that the last couple of generations have experienced. Being able to pay for something is no longer a barrier to 'owning' that product. Instant gratification is provided by walking out of the store with the item...today. Saving up to make the purchase seems to have drifted the way of the rotary phone (some of you might need to look that up in a search engine). It is an archaic concept that is in need of restoration.

Debt is the engine that fuels most people's spending. The reason why people can afford what they cannot afford is because someone is willing to underwrite it. Credit card companies are the most common ally in this effort. They give consumers billions of dollars each year in 'free' money. Enter into a store and walk out with a product even if you find yourself a few hundred dollars short. Just charge it. Plastic allows us to stretch out our dollars.

This phenomenon has done something to us as a society in general. Basically, it allowed us to enjoy a standard of living that is higher than we could afford. If you look at the average household debt, you will realize there were tens of thousands of dollars worth of products and services received which never should have been purchased. People simply overextended. Yet, when they are told, they get belligerent about it. Money, in particular their spending, is a touchy subject.

Entitlement Mentality

Our culture is infected with the mindset that says 'I deserve'. Again, the idea of being able to afford is of little issue. Most are conditioned to go into debt to buy those items which provide instant gratification. As long as you can afford the monthly payment, all is well. Thus, one believes he or she is entitled to a new car every couple of years. Big screen televisions and $400 cell phones...add it to the list. I want it therefore I should have it. No longer are the 'toys' in life reserved for the affluent.

It is a well known fact that the poverty stricken areas are filled with Xboxes, Ipads, laptop computers, big screen t.vs, and $150 sneakers. These are items which should be out of reach for people who are in this financial situation. But not here. People believe that it is their given right to have the things that everyone else does. If someone else can afford, then I should have it too. And this is why so many live in slavery.

I recently saw an article where a woman was upset because an organization that she went to for assistance with her power bill was not offering help due to budgetary cutbacks. This woman's story appeared on the front page of the newspaper. She was one who was employed so she had money coming in. This is not a woman who sat around all day abusing drugs and alcohol.

You would think this is a woman who needs legitimate help. Well, I am certain she could not pay her power bill. However, I do not believe she is a victim of circumstances. The reason is what appeared in the background of the picture of her. Directly behind her was an Xbox hooked up to a big screen television. Of course, this situation is compounded by having a stack of games that run $50 apiece. Thus, I conclude this person is not a victim since she was receiving monthly help with her electric. She is one who simply opted to spend her resources on luxuries as opposed to the necessity.

This is what I mean about entitlement mentality. People feel they should have the things about the basic necessities even if it means sacrificing them. Here is a women who couldnt pay the electric yet had money for luxuries. She, and more accurately her children, felt entitled to the games. The idea of not being able to afford them never entered the equation. Of course, this lesson is being taught to her children too.

This practice is not limited to the poor. At every level of the financial spectrum people are impoverishing themselves with their choices. This woman chose to spend it on games and other entertainment; the middle class leases automobiles they cannot afford; the upper middle class buys a McMansion. Regardless of the dollar amounts, the truth is that overspending as a result of entitlement mentality is a quick path to slavery.

The Solution

People need to break free from this mindset. Freedom is not made up of entitlement. The truth is that we leave this planet with exactly what we came in with: nothing. However, for the time we are here, we make choices as to how we live our lives. If you feel entitled to something that you cannot afford, you are positioning yourself to having to work for your creditor. That is slavery. Freedom means being able to live your life as you see fit. Most people spend their entire lives working and have little to nothing to show for it at the end. They followed the dogma society spelled out only to find it wasnt true. Sadly, this realization comes to late.

Freedom means knowing that you do not need 'things' to establish your worth. Living within one's means is about enjoying the comforts of life without having to overextend yourself. When people overextend, whether it is personal, a business, or a government, bad things happen. It usually is only a matter of time before the house of cards come tumbling down. Being entitled and being free are at completely different ends of the spectrum. Most of society feels entitled, thus they are not free.

Value versus Price

There is a big difference between being frugal and cheap. Those who think they are the same miss an important distinction. In this era, with all that is transpiring, being frugal is a worthwhile goal. However being cheap is not. Ultimately being cheap is costly. However, frugality never goes out of style as a key to freedom.

The best example I heard distinguishing the two is that a person who is cheap will drive all over town looking to save a couple cents on a gallon of gas. A frugal person will make the best decision of what is available but realizes the long term impact of trying to 'save a few pennies'.

Value vs. Price

Many of you have heard this lesson taught over the years. There is a price to every item we buy and that is distinguished by the cost of it. However, all items have value to them. This is much different than the price. Cunning shoppers always seek to find items that have values which exceed their cost. This is what is termed a bargain.

Value is not dependent upon cost although there is often a correlation. The truth is that it is common for higher priced items to be a better value than lower priced ones. In essence, the more something costs the better value. This is because of a characteristic called quality. Quality costs money. People will often pay double or triple the cost of an item to gain the quality advantage.

Footwear is a prime example of where quality makes a difference. You can pick up a pair of sneakers for $9.99 from Wal Mart. This sounds like a terrific deal until you consider the fact that at this price the item will lack the quality of a decent shoe. To gain this advantage, you would need to spend at least 3 times the money. Thus, you might be better off with a $30.00 sneaker.

Why is this? To understand this concept we need to evaluate the 'usability' of the items. We will presume that we might get a year out of the cheap sneaker with just average wear. This is because we know the materials used are not designed for durability. When we look at the more expensive sneaker, we find that with average use, if it is a decent shoe, we might be able to get 4 years out of it. Thus, when we break down the cost per year, we see the more expensive shoe is a better value.

To go one step further, we might also be able to make the case for a $50 sneaker. Depending upon the quality of that product, we might get 6 or 7 years out of it. This again will come out far ahead of the $9.99 item while providing much better support on our feet (an added value).

Name Brands

We need to be mindful that this concept hits a ceiling where one ends up overpaying thus creating inferior value. Name brands are often an example of this. Many people will spend extra for a name brand item. These are priced higher than an off brand. While these products often provide the security of knowing what you are getting and will indeed have a higher standard of quality, this does not offset the increase in pricing. Much of the price of a name brand is made of up one expense: marketing. Major brands spend hundreds of millions of dollars in advertising. This cost is factored into each product sold.

Using our sneaker example, we will presume that we get a decent quality item for $39.99. This might have a name we recognize but isn't the top of the spectrum. Now, let us compare that with Nike Air Jordan's for $129.99. Are you going to tell me the Air Jordan's are 3+ times as good in terms of the quality? Will they provide a far greater degree of support to warrant this money? The answer is no. People who pay for these sneakers are making a statement. In essence, they are buying the name. Personally, I prefer to wear my sneakers instead of reading them so the name on the back matters none.

We see this across the board with names such as Izod, Nieman Marcus, and Nike. People are paying extra for the name at the expense of value. While they are terrific products offering quality, this does not compensate for the added cost. In other words, money is wasted. The price far exceeds the value.

Esteem

There is an old concept that is called 'keeping up with the Jonses". What this means is that people make decisions based upon the ideal of impressing someone else. This is a person who operates from a place of fear. Anyone who suffers from a low self esteem will fall into this trap. He or she is worried about what the others think. Thus, name brands are helpful in presenting an image that 'I am someone'. Of course, when it all comes down to it, does what is writen across one's chest really make a difference in his or her worth? And, if it does, is that a person someone you really wants to interact with?

The truth of the matter is that people who buy the name brands are often compensating for a lack within themselves. It is interesting to notice that oftentimes the people who are engaging in this behavior are not the ones who can truly afford it, but the ones who have to stretch to get there. They lack the income to comfortably shop in this arena but do so because it is a status symbol. The belief is that wearing a high priced item makes them important. Personally, if you are one who purchases something that you cannot afford because of the perceptions of others, you are a fool. Get your importance from within and stop worrying about what others think. I n the process you will save a whole lot of money.

It is always interesting to note how esteem enters into people's purchasing decisions and, often, to their own detriment. Here is a prime example. In the 1980s and 90s, Jaguar had a line of automobiles that had the reputation for being service intensive. Now, these are 'high end' automobiles that cost a lot of money to offer status. Sure they offered many other things in return for the high price tag but the trade off was the car was in the shop quite often.

Now we compare this to the high end Toyotas, Hondas, or, even Fords. I know a guy who would drive nothing but Ford Crown Victorias. Each car he brought was not retired until he put over 250,000 on it. And, I can say that he was not easy on a car. The aforementioned brands cost a lot less money then the Jaguar yet were substantially better in terms of the way they ran. Thus, the person who paid more for the Jag actually received less in terms of value.

This concept shows how having to buy something because of status is costly. Sometimes, the product that provides the status offers little else.

Freedom

What does this all have to do with freedom? Simple. Bad decisions create an environment where we are imprisoned. I often make the point on this blog that what you take in as an income is not important. The key factor is how much you send out on a regular basis. Paying too much is one surefire way to cut your cord to freedom. Most people spend their way into slavery. They volunteer for it with every purchase. It matters little how much you make...if you spend most of what you take in you will be left with nothing.

Does everyone run out and buy a Jaguar? Of course not. But I will tell you that I drive through many middle class neighborhood with new vehicles sitting in the driveway. These people all are carrying a car payment for the luxury of having a newer vehicle in the driveway. I will tell you $300-$400 a month adds up into some big money. Naturally, many compound the problem by having two new cars sitting in the driveway. In this instance, just double the chains around their necks.

Can you tell me the difference between a $6.99 hamburger for lunch and one that costs $9.99? When you get down to it, is there really any difference between the two? The answer is usually not. The dining experience might be a bit different but does that really matter when you are sitting on the toilet the next day eliminating that burger from your body. In the end, the difference was $3.

Again, freedom is given away with each financial decision that we make. I have a person very close to me who made over $100,000 each year for the past 30 years. Do you know how much he has to show for it? Not very much. He is closing in on 70 and still needs to keep working because even though he took in over $3 million, he sent out a similar figure. This man is not free. He is still operating as a slave because he lacks the financial wherewithal to spend his time as he chooses. Instead, he has to keep on working to support his lifestyle (i.e. spending).

Controlling your costs is paramount regardless of how much you take in. This is the key to being free. Those who cannot are destined to live long existences as slaves. The workplace is full of people like that. They earn decent incomes but must continue because they make poor decisions at every turn.

How much do you want freedom? This is a question that everyone much answer.

Freedom Realized

A couple of weeks back I wrote an article about physical freedom. In this I mentioned how important being physically mobile is. I noticed that I was out of shape which hindered my freedom. My lack of stamina in walking meant there were things that I could not do.

One of the activities was walking a trail at a local park in our area. This trail is 3 miles in length through preserved area. It really is a nice walk but one that does require a bit of stamina.

Since I wrote the article about the physical freedom, I have walked everyday (but one when I was physically ill fending off a cold). My efforts were concentrated upon building up my stamina by walking for between 40-60 minutes. I also was able to stretch the distance to 2.5 miles.

I am happy to report that I was able to walk the entire trail today without stopping. The 3 mile trek was complete in under 1.5 hours. While the weather was questionable early, it turned out to be a lovely day. While on the trail, another goal was set....to be able to do it twice. We decided that it would be nice to bring a lunch down there and perhaps walk the trail on each side of a meal. This makes for an inexpensive day which provides wonderful benefit.

By the way, the total cost today was a couple of gallons of gasoline. This is in keeping with my goal of having experiences without tremendous expense.