Save! Save! Save!

The United States financial system is set up to enslave you. In fact, the entire Western world is based upon this idea. Financial domination is something that the powers that are seek to maintain and grow. Anyone who ever experienced debt knows the hole just gets deeper.

Misuse of Debt

We recently witnessed the crash of one of the biggest bubbles the world ever saw. The housing crisis that results from the credit expansion of the last decade is filtering through every segment of our society. Unemployment is at record levels with people feeling the pain. There are few who are not affected in some way.

The entire episode was the culmination of the misuse of debt. People spent more than they could reasonably pay back. While there are many reasons this took place (and places to point the finger), the truth is that people were given money who didnt deserve it. The greed of the banking industry to keep the mortgage pipeline full overrode common sense underwriting standards. Now, we as a nation, are left picking up the pieces.

Debt is a wonderful tool to use as long as one keeps things in proper perspective. Leveraging is a legitimate way to make money. In fact, it is truly one of those financial mechanisms which creates tremendous wealth. However, as we saw, when in the wrong hands, it is catastrophic. People who use every dollar of credit offered will end up destroyed. I would say that most of the masses fall into this category.

Savings

Have you ever noticed how the political figures never stand up and say we have to save more. Whenever a crisis hits, the mantra is for people to keep spending. Their viewpoint is to keep the economy churning regardless of the outcome. The impact on the individual is not in their mindset. Ultimately, as is always the case, the individual minion gets stuck holding the bag.

Fortunately, I am here to tell you something different. If you hope to be free and exist on any type of high standard of living in the future, you MUST save. Following the behaviors of the past will doom you to the same failure. There are millions of people who are teetering on the edge of financial insolvency who have no idea. The net worth of the United States, both as an entity and a collection of individuals, is less than zero. At some point, that rooster will come home. And the time is not so far along

The who create bubbles are engaging in a high risk game. Many of the 'market makers' know exactly what they are doing. They have the knowledge and connections to ride the bubble up and bail at just the right time. The average person does not. That is why saving is so important. It allows us to enter into the game only when things are at an optimum for us. Following the herd is not a sound financial plan.

Those with money are able to make more money. Ensure that you are one of these people. Begin the process immediately of saving all that you can. Reduce your entertainment expense as much as you can. Cut out those unnecessary expenditures. Cancel your cable. Do everything in your power to start amasses some money in savings. This will allow you to be ahead of the next bubble when it pops. A contrarian outlook here is extremely beneficial.

Freedom: Personal Responsibility

This Friday, Atlas Shrugged The Movie, opens up in theaters across the country. Here is one of those films that was self financed by an individual in an effort to get the message out there. The total cost, of which is only the first installment in what is presumed to be a 3 installment series is $20 million. This is a not a tidy sum compared to the common Hollywood film. However, since this message is one that the Hollywood elite deems useless, this cannot be considered one of their films. In essence, it was made by outsiders.

Personal Responsibility

Ayn Rand is one of the 20th centuries greatest minds. Her writings still are studied to this day. She has influenced the beliefs of millions over the last 60 years. Atlas Shrugged is perhaps her most famous work. While it was a fictional novel, we see much of what she wrote about playing out today in the Western world.

Rand was a proponent of personal responsibility. She detested dogma much in the same way I do. Her belief system moved her to the Atheist end of the spectrum. Religion held little value whatsoever in her opinion. Of course, the handouts of the government ranks up there with the Crusades in terms of abominations. She felt that only a true society could flourish where individuals made it based upon their own accord. Sadly, this is not the America we see today.

Since I am a proponent of freedom, I feel that the writings of Ayn Rand are worthwhile. She hits upon some fundamental issues which we collectively failed to ensure. Personal liberty was one of her highest values. This is something that we have tossed aside in favor of the Kool-Aid the politicians feed us. Many will point to Barack Obama as evidence of this. However, George W. Bush was no better. He forced the Patriot Act down people's throats in the name of "The War On Terror". Different part, same result.

Freedom Isn't Free

There is a price for freedom. It does not come free. The lives that were sacrificed (and still are) to preserve our values in armed conflicts over the years show how high the price truly is. Of course, not all of us need to go to this extreme. But, we do need to stand up and contribute.

America is a nation of lazy, stupid, immature, and excessive people. While many will think this characterization harsh, look around. You will see I am correct. We are a culture of mindless boobs who watch American Idol on our big screen t.v.s which were financed along with everything else we have. We are the 'give me' generation who wants everything served up to us on a silver platter. Our obesity rate is approaching 60% because people are too lazy to get off their butts and exercise. It is far easier to be a slave to the couch then to implement free will. This is the status of the average American.

Of course, we see this in people's voting patterns. They cast their ballots for the person who is going to give him or her the most. We are a nation of handout with recent reports stating that 1/3 the country receives a check from the government. This is hardly the world that Rand saw in her visions. Her belief system laid in the opposite direction. She felt that people had a responsibility to take care of themselves. Productive achievement was man's noblest causes. This idea excludes the couch potato crowd.

Slavery Is Upon Us

150 years ago the first shots of the Civil War were fired. This was the costliest war in terms of American lives ever fought (it makes sense since every casualty, no matter which side, was an American). Many believe this war was fought over slavery. It was not. Instead, the Civil War was a battle of power. The South simply did not want the North dictating how it was operating. The issue of slavery was a rallying cry. Power (and money) was at the core.

Today, we are losing the war of slavery as a nation. The country is in hoc to foreign countries to the tune of trillions. At the same time, we are dependent upon foreign dictatorships for our energy while siphoning off trillions more from our pocketbooks. I already mentioned how we stand on the individual level with our excessive habits. Overall, America is fat but about to be put on a very low calorie diet.

I suggest everyone take the initiative to get his or her house in order. Start with your financial situation. Stop being a slave to your creditors by spending like a teenager at the mall with mommy's credit card. Only purchase those items which are absolutely needed. Of course, this entails learning the difference between a need and a want. Those who believe that an IPhone is a need are way off the reservation.

Ayn Rand spoke as a prophet. Naturally, I will emphatically state that she is not some God to be revered. Her insights were based upon observations of governmental systems that operated for centuries. However, her vision of the state of America is eerily true. Today, we are at the crossroads. We must decide who was are and what we stand for. Most people will not do this. Instead, they will follow blindly right off the edge of a cliff. The powers that are will ensure this. Remember this idea the next time you believe that it is too difficult to step out on your own and question your life. That decision might be costly.

I encourage everyone to hit up this movie this weekend. If you want more information, check out the official website.

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Debt Is Not Freedom

There is a great debate going on at the federal and state levels about the amount of debt our governments are racking up. There are many who feel that we can continue to spend without any penalties. However, there is also a growing band of individuals who feel that perhaps it is time to stop running up debts that our children will have to pay for.

So what is the answer? Personally, as a lover of freedom, I feel that debt is an albatross around the neck of anyone who bears it. Look at what is happening around the country and you will see how bad things are. At the personal level, people are entering bankruptcy because of their spending. And, at the governmental level, now that revenues are decreasing, the over spending of the past is coming home to roost.

Debt is a jailer. The other day I put up a video about the Federal Reserve and the banking system. This is simply the originator of all debt. From here, it grows until it is around your neck. Debt is the noose that someone else can close at anytime.

People work their entire lives to pay their bills. Look at the average savings rate and you will see this. People simply have nothing to show for their years of effort. They are slaves in the highest sense. Their entire working existence benefited someone else. To me, this is the epitome of slavery.

Everyone seems to think there is an income problem. This is the American way of thinking. Sadly, for most, it is absolutely inaccurate. The truth is that there is plenty of money coming in. What causes the problem is spending. We see this in both individuals, companies, and governments. The truth is excessive spending amounts to volunteering to live as a slave. It is that simple.

Consider the plight of the American people the last decade or so. We felt we were entitled to live the 'high life' regardless of whether one could afford it or not. The idea started that we were to live in the nicest house money could buy. The term McMansion" was born. Of course, this then extended to the nice automobiles (new not used) and vacations to exotic lands. Since free cash was not available for these ventures, the refinancing of the homes because our ATM. At the same time, we were racking up credit card debts to the tune of tens of thousands per household. Nobody believed there would be negative consequences of all this spending.

Of course, we all know what happened. The housing market collapse bringing with it the entire global economy. Suddenly, people found themselves either unemployed or underemployed. And guess what came knocking at the door? The debt collectors. Overnight, millions of people could not pay their mortgages, car payments, credit card balances, and home equity lines. The negative side of debt reared it's head. Why was anyone surprised? The idea that one could get away without 'paying the piper' was insane. The day of reckoning always comes.

Basically, if you are to be free, then you must realize the importance of eliminating all debt from your life. Those who continue to carry this around are guaranteeing they will remain enslaved for the rest of their lives. The lessons are clear but few seem to want to learn them. Debt = Slavery. It is that simple.

I believe the American people, and most Western societies, need to acclimate themselves to living about 25% lower than they were. As a culture, we spent at least 125% of what we brought in. It is time for families to deleverage. Sadly, I feel that few will. Most are going to carry their ignorance back into the same hole again. We are terrible students of history. For whatever reason, we believe that 'this time will be different'. It never is.

I suggest you start the process of eliminating any debt you have immediately. Take any extra money and pay off your credit cards now. Remove that burden from your life. Start to exist on a cash basis. If you can afford it in the moment fine. But, if you lack the funds, then you are to pass on the item. 'Charge it' is removed from your vocabulary.

The mindset needs to change. Get rid of the idea that you are entitled to anything. The truth is you are not. You are entitled to what you can pay for. That is a motto you need to adopt. Again, it is freedom we are after and that comes with a price. Many had to lay their lives down for that. Your contribution to that cause is to be in control of you desires. Instant gratification needs to be replaced with discipline. This is the path to freedom.

Detesting The Rich

I had a discussion earlier this evening with a friend of mine. He and I differ in our political views so our banter can get somewhat heated. However, we both like to play (and make money) in the stock market so we cast our differences aside in an effort to share knowledge which will pay off in dollars. Tonight we came across the mindset of attacking the rich.

Many seem to feel that the way to better economic prosperity is to take from the rich. They believe that the way to economic growth is to 'level the playing field'. Without going into a long detailed discussion about the merits of this point of view, I will state that the best way to get along with this idea is to become one of the rich. Instead of detesting them, join their ranks.

Society teaches that we are stagnant in our place in life. Politicians like to talk in terms of class warfare. Terms such as rich, middle class, and poor are thrown out without any reference. The trouble is that nobody explains what this means. For example, we hear about the elimination of the middle class. Okay, if that is true, please define what middle class is. How much money does one need to make to enter it? At the same time, where is the line between this group and rich? Therefore, how can you detest what you cannot identify?

That being said, the concept that is applied is evident. People are stirred up because of jealousy. They feel it unfair and unjust that someone should have such excess. This is where politicians are able to pull the strings of others. Instead of getting riled up at the 'unfairness' of it all, set out to change your life. The truth is that the only life that should matter to you is yours.

For those who live in the United States, there are still huge opportunities to get ahead. The stock market (and other investment vehicles) are tremendous mediums for achieving this end. It is amazing to me how little most people know about this arena. Consider the fact that they will slave away for 40+ hours a week to earn $X per hour. Yet when it comes to the money set aside for investment, they put it in the hands of a financial adviser (read salesman).

Did you realize that earning 20% return is a fairly common occurrence? Of course, you will not hear this from the mainstream media. They will tell you that 96% of the money managers cannot beat the S&P. That is true. Does that mean you cannot? My experience is that anyone can. It is a big advantage to be able to enter and exit a stock (or option) in an instance. Money managers have millions of dollars in their positions. The time it takes to unravel them is weeks. This single fact offers a huge advantage to the small investor.

The point here is not to get into a financial discussion. My premise for writing this is that freedom entails focusing upon the financial aspect of life. Many will spend 40 hours a week to earn peanuts in terms of pay but wont spend 5 minutes learning about investing. Ironically, it is easier to exceed your income in the financial arena than most realize. Trust me when I tell you that making $30,000 a year in the stock market is nothing.

Of course, none of this will ever take place if you detest the rich. Your internal makeup comes through in all that you do. Remember this. It is highly unlikely that you will become what you despise. Therefore, get rid of the notion that the rich are deplorable slugs designed to be hated. If you want to get back at them, become one of them and walk in their circles. Then you can tell them personally what rotten sons-of-bitches you think they are. Short of that, you are falling victim to the whims of the political elite. The class warfare game has been played for centuries. Remove yourself from this battle.

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Beliefs

What do you believe? This is an important question but one that few ever consider. Instead, they just accept what is given to them as if it is law. Sadly, society has a way of misleading people into doing things that make them unhappy.

Blind Faith

Many engage in blind faith. I feel dogma is dogma no matter who is issuing it. Many will swallow all the rules that others put forth without even a thought if it makes sense. The religions of the world have survived based upon this ideal for centuries. Of course, the governments of the world are no different. Blind adherence to any type of dogma is dangerous.

Those who cannot think for themselves are bound to live as slaves. We see people do destructive things all the time in the name of faith. Take the suicide bombers. Here is a group of people who are willing to blow themselves up for a cause which promises eternal happiness. Perhaps they do receive the eternal life they are seeking. However, is it worth end one's life here on a supposition? Obviously not.

Question

The solution to this ailment is to question all that you believe. Why do you think the way that you do? Is it because you consciously chose a particular path or is it because someone taught you this was 'correct'? This process is crucial to breaking the stranglehold that others have upon you.

Beliefs lie at the center of all we do. To not question our beliefs is to engage in a life that is not our own. Under these circumstances we are at the folly of others. As shown, society has a way of injecting into us what we should believe. Those who stray from the norm are ostracized in ways designed to bring them back in line. This conditioning starts as a child and lasts throughout our entire lives. The key is to stop it as soon as you are aware of what is occurring. Now is the time for you.

Freedom is something that everyone should value. Sadly, few do. Become one of the elite in terms of taking over your own life. Living according to the edicts of others is slavery. Most everyone we encounter is a slave. This is the opportunity for you. Being different is a way to break free from the norm. All cultures love those who excel. Following the traditional dogma will result in mediocrity. Jump start your life by questioning all that is going on.
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Societal Slavery

Have you ever considered all the different ways that society enslaves people? If you spend some time thinking about the average person's week (or you own), you will see exactly how people are controlled by others. Freedom is something that most people give away without nary a thought. To them, the decision about what is in front of them is much more important that the long-term affects. Sadly, this is what leads to lifelong imprisonment.

Out of School and Free

For most of us, the time where we have the most freedom is immediately after getting out of school. We spent fours years getting a diploma and suddenly we are done. Now we have 365 degrees of possibilities ahead of us. We can go in any direction. Few have anything tying them down geographically. They can live anywhere they desire. Family is not part of the equation for most people at this point, thus, free from the burden of spouses or children. Of course, this does not last.

People would be much better off if they were conditioned to maintain this state. The truth is that we are taught to go in the opposite direction. Debt is something that is commonplace within our culture. Why pay for it when you can charge it? That is the mindset of the last two generations. The entire economic collapse was a result of massive overspending at all levels. Yet few seem to learn the lessons being offered. Fortunately, for those of us who do, it is an opportunity that hasn't existed in 60 years. We are witnessing a culture change whether people realize it or not.

Job

You boss is one of the most powerful jailers in your life. When you consider what you do for a few measly dollars each week, it is truly criminal. Of course, each one of us does it willingly and without hesitation. There is not a single person who signs a 'slavery clause' in any employment contract. Instead, we make choices the necessitate showing up each day to earn that paycheck.

Why do I start with the job as the jailer? The answer is because most people hate their job. Monday is the national day of mourning each week. Few wake up on that day excited they are going to work. Studies show that it is the day that is most people call in sick.

And why is the job able to exert this much influence over the average person? Again, we see the answer in the behaviors of people. The truth is that people's spending drives them to live for their creditors. People do not profit from their work lives but, rather, the companies these people do business with are the beneficiaries.

Keeping Up With Others

I guess we can consider it human nature to want what others have. We see this in children. They often mention the desire to have something because 'Jimmy's mom bought him one'. Of course, we know the absurdity of this conduct in children.

Or do we? It is ironic to see this same behavior in adults. The truth is that most are immature when it comes to this outlook. A large percentage of our population believes that what other think is important. This causes them to take many actions which are destructive to them. It is a battle that is waged endlessly without a winner. Actually, cancel that. The winner is every company that promotes their product in this matter.

We see people assume large monthly car payments so they can drive an expensive foreign automobile. These same people were also caught in McMansions taking on mortgages they could not afford. Designer labels are purchased no because of the value in terms of quality provide as much as the name recognition. Therefore, we create an endless loop of having to work to substantiate our spending.

Beliefs

Ultimately, it all comes down to what we believe. However, this is another area where many get themselves in trouble. Few have ever considered what they believe and why. Instead, the blindly accepted the dogma that society delivers. Whatever those in power are selling, we are buying.

The idea that the opinions of others means something is a belief that most are attune to. They never get past the notion that it is up to us to judge our own lives. The thoughts other others, especially those we do not know, are meaningless. Adopting this outlook is a powerful step on the road to freedom. Remember, this entire concept starts in the mind.

Analyzing what we think and we is one of the methods of breaking free from societies chains. It is of paramount importance to consider that most of what we were taught was done with the intention of enslaving us. Sure, the people who offered these lessons were well-meaning people. However, we must hold in our minds that they were most likely slaves also.

Society teaches obedience. Those in power truly do not want people to express their individual choice. This applies at ever level of the spectrum. The 'rule makers' do all they can to get people to follow blindly along. Insane amounts of money are spent on items that offer little to no value yet the masses are caught up in the hysteria (the Cabbage Patch craze comes to mind). Each decision that is made, if not moving towards the path of freedom is enslaving one deeper. And this is exactly what society wants.

If you want to live freely, you are going to have to go counter to what the norm is. Start your journey today.

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.

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.

Freedom From Procrastination

Here is a universal truth: No success is every achieved without action. This is a statement that needs to be implanted firmly in your mind. Too many seem to believe that success is a matter of luck. However, few realize the action that is required to get to the point where 'luck' occurs. There is an old saying that holds true: the harder I work, the luckier I get.

The Archenemy

Do you know what the archenemy of success is? The title of this blog post ought to give it away. Procrastination will never lead to success. In fact, this single trait does more to destroy one's chance of advancement than any other quality. Procrastination is cunning and powerful. Most who are afflicted with this disease are rarely aware that it exists.

Success is a result of action. Usually, it is continuous action extended over a long period of time. Procrastination is the archenemy of this because it breeds the exact opposite. The result of procrastination is inactivity. Naturally, as is seen, procrastination, by its very definition cannot create success.

3 Ways To Overcome Procrastination

1. Make a list:

Many procrastinate because they do not know what to do next. A list is a helpful way to create a 'blueprint' for the action taken. Unlike some of the 'experts' who write on this subject, I find that the best list is the simplest. Instead of trying to determine the most 'important' activities (also called 'large stones'), just write down 5 things that you need to do. Then start doing them.

To show how simple the list can be, here is what I wrote that I need to get done this evening:

-walk, workout, stretch, write blog post, and shave head

The first few items were completed without waste. My tendency to procrastinate was removed since I know what the next action is.

2. Give yourself a deadline

Many believe that the operate better under pressure. While I am not here to debate that point, I will state there is plenty of research to the contrary. Nevertheless, if you are one who is convinced you excel only when getting close to 'crunch time', then I suggest you set a deadline for whatever you are faced with. For example, if you use the aforementioned list, give yourself until 8:00 PM to complete it. Instead of allowing circumstances to dictate what you do, create the 'pressure' yourself.

3. Tell someone else

Accountability is something that we all need. Sadly, most of us fail at holding ourselves accountable. My own personal experience is that we will let ourselves off the hook by buying into the excuses we create. These excuses are the rationalizations that we use to uphold our inactivity.

Involving another person helps us to create that accountability. Thus, if you are faced with something that requires action, tell someone what needs doing and when you will complete it by. Insist that person check up on you to make sure you did what was intended (this might require some explaining but most serious people will applaud your efforts). I found this type of accountability will remove procrastination in most instances. The reason is simple: the fear of losing 'face' is a more powerful than the internal mechanism that is making us procrastinate.

Freedom

One cannot be free unless he has control over himself. Whenever we are allowing our internal fears to control us, we are a slave. My entire existence is dedicated to the elimination of the chains that bind me. While it is easy to mention the external ones like a job working for someone else, the truth is that my own mind is my greatest jailer. Anything that I can do to overcome the obstacles it puts in my way helps to free me from bondage.

Procrastination steals time and energy away. I found that most actions take less than 30 minutes (in fact most less then 10 minutes). Yet, a person will put that activity off for days, dwelling upon it the entire time. The simple fact is that it is often easier to take action immediately and move on. This affords one the opportunity to utilize time as he or she sees fit.

Long term success is the result of a series of steps in a particular direction. Like DeNiro said," it took me 10 years to become an overnight sensation". Freedom is something that each of us needs to work for on a daily basis. Unfortunately, we are our own worst enemy in this pursuit. Of course, the advantage to that is we can do something about it. Overcome your personal limitation in an effort to achieve this end.

Start by kicking procrastination to the curb. Take a couple activities you are putting off, write them down, and go do them. Use one (or more) of the techniques above and watch your results increase immediately. This will help you break free from the bondage of procrastination.

True Goals

This is the time of year when people actually give goal setting a chance. However, as we know from the experiences of those around or, perhaps, ourselves, most do it via the New Year's Resolution route. Unlike true goals, this is where someone has a wish for something to happen in the New Year coupled with a mediocre commitment to achieve it. This is where most fail before they ever get started. Instead of committing to the ends fully, they mentally give a half-hearted effort.

True Goals

Goal setting experts will tell you that a goal must be a few things to be effective. To start, it must be measurable (more is not quantifiable). It also needs to be a stretch outside your present level of comfort. It must be in the positive and it must have an end day.

For example losing more weight is not a goal since dropping 1 pound over 5 years would equate to success. If this is your intention from the start, I believe your standards are way too low. Goals should be something that motivates you to excel.

At the same time, we all know the saying that 'you do not see a UHaul behind a hearse'. Another way people phrase this is that 'you can't take it with you'. In other words we leave this world with what we entered it with: NOTHING. Accumulating all the toys, trinkets, and assets in the world will not change anything when we are dead. Everything anyone ever amassed was left behind.

Therefore, perhaps it is time to set some True Goals. Instead of concentrating on the amount of money you can earn, or the number of cars to own, maybe it is time to focus on experiences. It is a novel concept to many but this is in keeping with the minimalist thinking. Anyone who looked at this particular path knows that experiences are held dearer than things. Therefore, it is best to create some goals of this nature as opposed to the typical 'thing-based' goals.

The Ultimate List

John Goddard is a world famous adventures. Years ago he set out a list of 127 goals that are a bit different from the average list people put together. Follow the link to his site and take a look at what he put down. Notice how owning a ferrari, waterski, or condo in the mountains is nowhere on the list. In fact, there is nothing material on the list; it is all experiences.

To me, this is the ultimate goal list. I am reworking my list to model this somewhat. Now that I have altered my thinking, I realize what I focused upon all those years was not very fulfilling. My aim now is to be free to experience all that I can in life. Having a 'blueprint' is a terrific way to get started. How can one know where he or she is going if there is no plan of action? A goal list is a plan of action that one can follow.

Thus, in your time of reflection, start to think about what you can experience in the New Year as opposed to what you can get. Too often people write that they want to make X number of dollars. That is terrific if one knows the reasoning for that money. If it is just to sit in a bank and make one feel good about oneself, then it isn't very worthy. However, if this goal is to provide the resources to move one closer to a lifestyle of freedom by providing the basis of investment income, then that is something that will motivate someone.

Remember, in the end we all leave with nothing. Therefore, create a list of true goals that are rich in experiences. This is what we all should concentrate on in 2011.

Important Vs. Unimportant

The minimalist lifestyle comes down to this simple premise. While many refer to needs vs. wants, I think it is even a more personal experience. Sure, we as human beings have certain needs. If it was a matter of simply identifying what is needed, I could eliminate almost everything in the house. Certainly I don't need a coffee mug since I really do not need coffee to live. In fact, if I were so inclined, I only need the basics in nutrition to remain alive and water. Everything else in my house is a luxury.

Naturally, I am not opting to follow this course of action. Therefore, when I think about the transformation over the last few weeks, I am realizing that getting rid of the unimportant is making time for the important. The shedding of Netflix is a prime example. At one time in my life I thought I needed cable. I shuddered each time I imagined going without television. Since the beginning of the year, I am cable-free. Netflix was a great assistant in making this a reality. Now, I decided I can forgo this service also.

In the last week, I found that the old habit of turning on the idiot box was still with me. However, since it wasnt connected to a service, the television was not turned on. This left me with a great deal of time. And, that my friends, is the crux of the situation: what do I do with this new found time? The obvious answer is to focus upon the important.

This revelation is tied to something else that I noticed. Whenever I look at my life and the actions that are in it, I have a tough time determining what is important. As mentioned, I once thought some type of television service was important. It is not. Now, I am faced with the challenge of really establishing what is truly important in my life.

I have full confidence I will uncover the deeper levels of this exercise over the next week. Presently, I am undergoing a 'plan of action' exercise to establish my road map for the next 12 months. It is a truly beneficial experience for me and helping me to concentrate upon the important vs unimportant. My goal is to eliminate the waste in my life. Everything is subject to review. Getting to the core of what is going on is crucial to me.

Do you know what is truly important in your life? Most will say they do and, perhaps, that is true. However, do their actions reflect it. Many will say health is important to them as they are carrying around 25, 50, or 100 extra pounds. Here we see the actions not matching up with the values. Therefore, is it really high on the list of important factors.

Congruent living is another thing that I am seeking. As a seeker of freedom, I am faced with the prospect of matching my actions with this outcome. That is my present quest. Eliminating all that is truly unimportant to me is a component that sets me on the proper path. The unimportant is truly only a distraction. If I really don't value it, why have it? The answer is becoming obvious to me.

Traditions

It is amazing how quickly the mindset changes when one adopts the minimalist outlook. Here, it is not even a month since I started this journey and yet I see such a radical change in how I perceive things. While there are some hard choices coming down the chute, I realize that my mindset is what will carry me through.

Xmas time is approaching and I find myself thinking about what a waste of time a lot of this is. Now, dont get me wrong. I know there are people of faith who take this time of year very serious since it is central to their mindset. However, there are so many who do not fit into this category.

I noticed an interesting thing the other day. My mom sent me a check for Xmas since I never tell her what I want. Hell, anything she would buy me most likely would end up in the recycle pile. Cash is something that I can always use. However, there was an interesting situation that arose.

My mom sent me $150. That was very nice of her and I do appreciate it. In return, I purchased her a nice wooden statue of a cat. She likes them and I think it will look nice at her house. Also, since my daughter is driving, I am giving her money for Xmas to help her offset some bills. When I totaled all of it up, it was a wash. What I took in is what I gave out.

Now, I know the holidays are not a time to profit. My point is why go through all the complication of the process. Why didnt my mom just send my daughter the money, buy herself the cat, and avoid the middle man (me) altogether? Yeah, I know, this isnt the spirit of Xmas.

But this got me thinking at a deeper level. How much of our lives is dictated by tradition? Why do we do things every year without even considering how they were done? Because we, as a rule, are a lazy population. Questioning is something that children do but adults are broken of that habit. The indoctrination into society includes buying into the traditions that are established for us. So,we blindly follow without thought of how insane our behavior is.

Thus, I understand the foolishness of this Xmas tradition. Giving gifts is wonderful in many instances. Yet, in my case, I was simply following blind tradition. Now I am aware of it. Does that mean I am going to stop in the future? Not necessarily since I know the expectation is there on the part of others. Nevertheless, it is the awareness that is important. From here on any time I adhere to this tradition I do so with my eyes open. If I opt to follow it, that is on me.

Look at the traditions that you obey like a dog. I am sure there are many that you never questioned. Uncovering these helps to locate those areas where we give power over to others. Freedom cannot exist without this awareness.

Physical Freedom

Have you ever pondered how your physical shape limits your freedom? I have recently and it terrified me how enslaved I am. And, you need to consider the fact that I am in better shape physically than 90% of the people out there. Yet, I still understand how my lack of physical abundance is limiting.

Distance

How far could you walk if you had to? Actually, let me rephrase this: how far could you walk if you wanted to? For most people the answer is 'not very far'. The simple truth is the western world is out of shape. We have the largest population in terms of waistline in the history of mankind. We are seeing developed nations with obesity rates hovering around 50%. That means 1 in 2 people is at risk health wise. And, please bear in mind that someone who is obese isnt a person who needs to loose 20 or 30 pounds. We are talking about people who are carrying around an extra 100 pounds or so. This is a catastrophic situation that few are paying attention to.

Nevertheless, I am not here to solve the country's ills. I know that the majority of people live like brainless robots. They follow the crowd right into the jail. Whatever the public is promoting, that is what these fools are gobbling up. In this instance, it is literal.

Get back to my initial question, we know how our physical state affects all areas of our lives. Those who ail physically are unable to achieve things in other areas of life. The emotions are directly linked to how we feel. Thus, whenever we feel bad, we are sabotaging our chance of success.

At the same time, there is a tremendous world out there to see. However, few have the ability to see it unless it comes across the internet. Few people have the stamina to hike all day to see an out of the way monument. Nor can they make the trek 5 miles into the woods to see nature in all it's glory. Whatever the reason, the fact that people cannot walk further than their mailbox is a sacrifice of one's freedom.

Resolving to be Free

My driving passion is to be free in my life. I examine all areas in an effort to create structures which will allow me to move towards this end. Therefore, when I realized how debilitating my physical limitations are, I realized how it needed changing immediately.

As many of you know, I love photography. It is a hobby that I picked up over the last year or so. I am also blessed that within an hour of my house there are a plethora of national and state parks which to walk. Along these trails one sees nature undisturbed. It is something that I enjoy.

However, the fact that I had approximately a three mile limit means that I am unable to pursue this endeavor as much as I would like. This places a limitation on me. Of course, in my mind, that is self imposed slavery. The fact that I cannot walk 10 miles uninterrupted is nobody's fault but my own. My laziness constructed this prison in my life. The only way out is to remove it through serious exercise. That is what I committed to do.

90 Day Commitment

Over the next three months, I committed to walking every single day no matter what. A radical shift in my activity is required to break me out of this quagmire. That is what I decided to do. I started it before the new year, almost in tandem with the start of Winter. So, basically, by Spring, I plan to have a radically different outlook.

As I was determining what I would do, I opted to forgo the traditional goal setting method and instead focus upon a plan of action. I want something that is under my realm. This stems from the personal value that my life is my responsibility. Dedicating efforts upon those things which are out of my reach is asinine. Ergo, I am opting for action and letting the results fall where they may.

My plan is simple...walk everyday for the next 90 days starting at a distance of 2.5 miles and working my way up towards the 5 mile mark. I will accomplish this by increasing the pace I do it in while lengthening it incrementally. At the same time, I also committed to snacking on celery, broccoli, and carrots as opposed to other nutrition free snacks. Finally, I am going to stretch each day to increase my flexibility since that is another way that one can be physically limited.

I detest not being free in any area of my life and the fact that I am faced with this challenge is exciting to me. Any time I can break a chain that is holding me down, the better I feel. Freedom is something that we all have to fight for on a daily basis. Those who willing accept what society offers soon find themselves enslaved. The way out of this trap is to fight with complete vigor the second you realize something is holding you captive. For me, in this instance, it is my physical state. Now, I am doing something to alter that.

And, while we are at it, how is your physical state? Perhaps you are captive also.

Because I Own It

Yesterday, in the post titled Saving For A Rainy Day, I listed a reason why pack rats hold onto things. The mindset that 'I might need this' means people hold on a large quantity of stuff that they end up rarely using. I pointed out in the post that often people can replace those items at minimal cost if the need should arise.

Next on the list of excuses is the 'because I own it' idea. This is another reasoning mechanism that leads people to hold onto things which should be discarded. There are millions of closets full of items which have not been touched in years. Yet individuals continue to hold onto them as if their life depends upon it. This is another concept that I shed as I embarked upon the journey into minimalism.

Here is the simple truth: just because an item is paid for, that does not mean that you should hold onto it. This statement is accurate whether we are referring to minimal or a large expense. Whatever the cost, that money is spent. While one might not make that purchase today with the new minimalist outlook, the fact that he or she is holding onto something that is paid for is equally inane.

"Because I own it" is not a valid reason for keeping something. The only reason is "Because I use it". Items that sit idle in a closet are only taking up space. The value was lost the second you left the store. Recouping it can only occur by selling it. Besides, if you aren't using it, why not give it to someone who will.

Being a minimalist means that we only hold onto items that are definitely used. Anything else is just taking up valuable space and energy. If it falls into the later category, then it must go. This is another step in the process of taking back one's freedom.

Communal Living

The mention of this term evokes images during the hippie movement in the United States in the late 60's and early 70s. People 'dropped out' by moving to remote locations called communes. In these communities, the idea of personal property vanished and was replaced with the concept of sharing. If you need something, just take it. Clothing, rooms, even lovers were all part of the community. Everyone pitched in for the benefit of the community.

Not So Far-Fetched

If you ask the average person about the communes and the idea of communal living, they would tell you that is was an idea practiced by immoral sex freaks and has no basis in a civilized society. While I will grant the notion of 20 or 30 couples living together is extreme, there is a certain validity to the mindset. Also, while I am not sure of the practicality of it with such a large group, I will show that it is something that is in keeping with the minimalist mindset.

Sharing resources is nothing new. Most people understand how there are times when it is best to combine 'forces' for maximum benefit. We see this both at the personal and business level. In fact, I argue that communal living is a common part of society.

Divorce-The Path To Poverty

The last 20 years witnessed a massive explosion in the divorce rate. At the same time, the poverty level has jumped to historic proportions. While I am not going to claim that the poverty rate is exclusively caused by the divorce rate, I will maintain that it has a part to do with it. If you understand the financial impact on people in this arena, you will see how it goes against the communal living idea.

If we remember, the basic tenet of communal living is sharing of resources. What happens within a marriage? All assets are shared between the individuals (called a family). Therefore, two people are responsible for only one household. There is one rent/mortgage payment, electric bill, and cable provider. In short, you have two incomes going towards one set of bills. All resources are shared between the individuals.

This is the common way the majority of western society lives. Of course, with divorce, we see the exact opposite happen. Now, instead of two incomes going towards one set of bills, the divorced couple assumes two sets of bills since they are in two different households. Suddenly, everything is doubled. What was once a comfortable standard of living now becomes a struggle for at least one party (if not both). The financial resources are split.

When we look at those impoverished, it is common to find single mothers occupying this space. They are the ones who are hit the hardest since they have to maintain a home while depending upon child support or other benefits in many instances. The fact that two incomes arent available makes it impossible to get ahead. This is the plight of the average divorcee in this era.

Minimalism Is The Answer

Before I get into the concept of communal living as I see it, I want to make a point about the average person we just mentioned. Now, please bear in mind that I am not 'picking' on the downtrodden as much as showing the mentality which is so prevalent in our culture (it exists among the middle class also).

People simply have too much stuff. They assume financial obligations without thinking about the long term merits of their actions. The simple truth is that most people in this country do not realize what 'poverty' really is. Anyone who traveled to lands such as Ethiopia or Haiti knows exactly what I am referring to. The United States, and most western cultures, have an incredible standard of living in comparison even on the low end. People here are worried about what to get the children for Xmas while starvation is rampant in many parts of the world.

Therefore, I assert we simply over indulge. The minimalist mindset will help to eliminate a great deal of poverty. For example, I believe that most 'poor' households have cable television. Why does someone who is making $12,000-$18,000 pay over $100 a month for a service like this? The answer is because they believe they are entitled to it. Well, I have news for you. It is possible to live without cable television. Eliminating this single expenditure can recoup almost 10% of these people's income. How do you think that will affect them?

Alas, this is something that most people never consider. It is beyond the comprehension of the average American to live without this service. And, that is why most are destined to remain enslaved. Freedom is for those who approach things differently. A minimalist mindset is what allows one to make the proper decisions.

Shared Housing

Once you realize how important it is to become a minimalist, one then sees how communal living is a practical avenue to pursue. While I acknowledge that establishing 'hippie-type' communes is not rational for most, I will assert that all should look at sharing resources. Besides, it is already something that most people do within the confines of marriage. Why not simply extend this idea outwards?

Before answering that, I will state that again we see the 'entitlement' mentality enter the picture. Many seem to believe they are entitled to their own place. We often hear a statement such as 'I value my privacy' as a reason for living alone. This mindset causes people to forgo their freedom. It is what straps people financially while enslaving them. Trust me when I tell your privacy is costing you tens of thousands of dollars.

It is not uncommon to see an single individual or couple in a two or three bedroom house. In this instance, it is up to that person to cover all the bills. While one has rationalization for living in this manner, the truth is that a fortune is wasted. But that is the American mindset.

What are the options in this instance. The first is to downsize to a single bedroom apartment. However, in many instances this is impractical. So what is another way for one to rectify this problem. In short, applying the idea of communal living is the answer. If this person (couple) brought in another to live under the same roof while sharing expenses, they would be a lot better off. Yet, as was mentioned, few ever consider the possibility.

Let us use as an example $1,000 in rent or mortgage. If this is something that one has to lay out on his/her own, then the total expenditure is 12,000 a year. Throw in cable, electric, and water and you can easily run up a tab of $15,000. In many instances this accounts for a large percentage of an individuals take home pay.

Now, let us move another individual into the picture. The same expenditures exist at the same rate with a few increasing because of a second person. For example, you might see a minimal increase in the water and electric due to additional usage. However, the rent/mortgage payment and the cable remain the same. So, let us say the additional person add $1,000 to the total annual tab, we now have $16,000. Yet, because there are two people paying the bills, each person is responsible for $8,000. This is a savings of $7,000 a year.

Of course, this is something that is fairly common within the United States. We see many who have roommates to help share expenses. However, I am trying to emphasize freedom through a minimalist mindset. So, we go one step further.

Coupling Up

This is an idea that really makes the above example turn on its head. There are many couples who move in together as a way to share resources (and yes they have other reasons for it). Nevertheless, this situation will see the two people share expense while living in a two bedroom house or apartment. While they are much better off than the single person in the same situation, they are far from realizing freedom. This can be done by cutting things even more.

How can this be done? Simply by adding another couple to the living arrangement. Now, instead of 2 people sharing the expenses, there are 4. Thus, each person's obligation is reduced even further (to $4,000). Couples who live with other couples under the same roof are able to exert tremendous economies of scale over the basic living expenses. Of course, this does mean one will give up some of his/her privacy.

Communal living is a economic goldmine. It is a way for people to minimize the impact of the basics in life. We all need shelter; it is something that we cannot live without. However, it often makes up the largest portion of a person's budget. By reducing it down as much as possible, one is able to enjoy a financial windfall. How do you think your life would change if you made $30,000 while having to pay $4,000 for your overhead? Suddenly, you have a fair bit of money to invest as a means of garnering more financial freedom.

Communal living is something that we will see this country get back to. In the 'olden' days, generations of families were housed under the same roof. All pitched in for the common good. Somewhere along the way we lost that idea. The entitlement and 'more' mentality set in. Now people are paying for those choices. The insight provided here will assist you along your path. There is not reason why you should bear the full burden simple because society tells you to 'live alone'. Communal living has many practical benefits which we all should explore.

Saving For A Rainy Day

This is the mantra for pack rat that justifies keeping an insane amount of stuff. The way people behave, you would think they were all part of the boy scouts: always prepared. No matter what the circumstance, one wants to be ready. Of course, as I found out, this is in direct opposition to the minimalist mindset.

As I was embarking upon my journey, I realized that I had a lot of stuff that fit into the 'in case' category. What I mean is that I had a ton of items I didnt need but hung onto on the off chance I might need them. Naturally, this led to a lot of space in my life being taken up.

An example was tonight when we were going through a basket. We uncovered a multitude of bottles of sample size shampoos and conditioners that the hotels give you free when you stay. When I asked, the response was, I keep them in case we go away. Well slap me twice and call me Suzie. This is insanity if I ever saw it.

Needless to say, I can tell you what shampoo is going to be used first in our house. The truth of the matter is that my life is focused upon creating freedom, thus some options were put on the back burner. In the next year, a trip to Europe is not on the agenda. Therefore, the need for travel size shampoo and conditioner (I am bald by the way) isnt going to be necessary. We will use them up and be done with that concept.

This is not uncommon. I am finding a bunch of stuff that falls into the same category. The sad part of this is that many items are replaced for a minor outlay of money. Honestly, if we were to travel tomorrow, how much would a bottle of shampoo cost? A couple of bucks. Besides, if we stay at a decent motel, there will be more of the sample size bottles there.

And that is the lesson. Why retain things that are easily replaced at a minimal cost. I understand that getting rid of things is wasteful. However, sitting unused in a closet is not the best use of something either. Get rid of it. I find that many of the items I am tossing, if the need for them should come up, I can run to the hardware store and buy the items needed. It isnt a big deal.

Of course, this concept is baffling to the pack rats. That is why most are held hostage by their stuff. They cannot envision life absent of a closet full of stuff. To a person of this ilk, no matter what happens, they will be prepared. As a minimalist, I would rather be free from the burden of all that stuff and buy it if the need should arise. Consider this when you come across something that you 'might' need. My philosophy is that might means get rid of it. Unless I am certain I am going to use it, it goes.

From this point forward, there are no rainy days to prepare for.