Time and Money

The free and slaves look at time and money differently. In short, people at each end of the spectrum have a different priority. Understanding this difference will assist you on your path towards freedom. Part of the process is to duplicate that which free people do.

Time For Money

Welcome to the life of 95% of the people in the western (and I am sure the eastern) world. This is a fundamental concept that people were taught from a young age which leads to total slavery. Individuals who follow this dogma can never attain any type of freedom. It is a life that is filled with imprisonment.

The concept that enslaves these people is trading time for money. Society is built upon this protocol. Everyone is told from a young age to 'get a job'. Sadly, the ones offering the advice are slaves themselves but do not realize it. Thus starts the inter-generational slavery that is so prevalent in our culture. One slave passes along the bondage to his/her offspring. It is a wonderful system for those in control.

This concept is effective because of the value people have. Few realize how valuable time is. Instead, they place money higher up on the scale of things they hold dear. Consumerism feeds the belief by promoting the definition of success. The net result is that even when people make more money, they are just as poor. Remember, it is not so important how much comes in as opposed to what goes out. Yet people still value money greatly.

The Free

Does everyone follow this idea? The answer is no. There are many people who place their priorities in a different order. Most will acknowledge that money is important. However, the free opt to place time higher up the scale then money. Instead of trading time for money, these people trade money for time.

The other night we were out walking and looking at the Xmas decorations. I am certain if we had been out on a Saturday afternoon a couple of weeks before, we would see homeowners hanging their lights, wreaths, etc... This is an annual ritual all over suburbia America. Everyone knows it occurs with most participating. It is 'normal'.

My question is how long does it take to hang Xmas lights? We can safely presume a couple of hours. Therefore, millions of homeowners spend anywhere from 2-5 hours decorating their properties for Xmas and a similar amount of time taking them down after the New Year.

Do you think this is something that Brad Pitt does? Can you picture him standing outside his mansion on a ladder tacking up Xmas lights? While there is a chance this might happen, I find the odds are against it. Why? Simply because a man like Brad Pitt exchanges money for time. He is not going to sacrifice 5 hours of his life when he can pay a few hundred to have it done (or maybe thousand depending on the number of lights). The time that would be spent on this task is recouped by paying someone else to do it.

Balance

Many will believe I just told them to hire out all the chores around the house. This is not the case. If you read any of my previous posts, you know that economical living is a high priority for me. However, I needed to illustrate the concept to you so that you realize how enslaved you really are.

The free approach life in a far different way than the average person. When you really consider it, time is the most valuable resource there is. We can always make more money. You can never recoup lost time. Once it is gone, that is it. Brad Pitt knows this...do you? If you are exchanging 40 hours a week at a job you detest solely because of the check you receive at the end of the week (or every other week), then that is something to take a look at. You are living according to the time for money concept.

Therefore, if you want to break free, it is crucial that you begin to transform your mindset to the money for time. What are you wilingl to trade off to get more time? Of course, I am not suggesting you go and spend money elsewhere. Hell, if you are like the average person, you need to focus upon not spending. But, by implementing the minimalist mindset, you are adopting the money for time mentality.

Using the Xmas lights as an example, instead of hanging them yourself and spending that time, you could simply opt not to put them up. I know that thought is outlandish to some of you. But, once again we come to the point as to why are you putting them up? Is it something you enjoy or do you do it to appease others? If it is the later, then you are behaving as a slave.

The truth is elimination often takes care of both time and money, thus increasing both. If we dont have to spend it, then, theoretically, we dont need to earn it. Also, without buying it, then the time spent engage in that activity is regained. It is a win-win.

Freedom is all about spending time the way you prefer. In the above example, if you are one who loves hanging Xmas lights with the family, then by all means do it. However, do not blindly engage in a behavior without asking about it first. Freedom is something that is fought for on a daily basis. And, it is a battle that starts within your head. Understanding the time/value relation and how your value of each affects all that you do is a good beginning. Consider this concept in depth while looking at your life. I believe you will really be awakened at what you find.

Minimalist Principle: 80/20 Rule

Part of the idea of being a minimalist is to succeed in life with the minimal amount of resources utilized. Most often this applies to physical things. One of the first steps in my entry into this life was to declutter by going through all my things and scaling down. This process allowed me to free myself mentally, emotionally, and physically of the excesses in my life. I immediately felt freer as a result of this method.

Another area that the minimalist mindset applies is in terms of effort. Here is where the 80/20 principle comes into play. Anyone who is unfamiliar with this idea is missing one of the keys to life. In its simplest form, the 80/20 rule mandates that 80% of our results comes from 20% of our efforts. Of course, this principle can be expanded to all areas of life.

80/20-Focus

Focus is one of the things we must learn how to control. The 80/20 rule offers us an outline of where we need to place our attention. Consider this depth of this idea for a moment. 80% of the results come from 20% of our actions. By definition, that means that only 80% of our actions net us 20% of our outcomes. Therefore, we want to concentrate our minds upon the things that get us the most benefit.

In other words, we are seeking to maximize our return. In business, according to this rule, 80% of the profits will come from 20% of our customer base. Thus, we want to cater our efforts to this part of our customer list. The same is true in our relationships. 20% of our efforts will garner the most impact with our loved ones. 80% of all that we do has minimal impact.

As you can see, this concept holds up in all circumstances. What about you clothing? Do you find that you wear the same items regularly while some articles are only pulled our once or twice a year? If you are like most people who follow this principle, that is the fact. Therefore, we might be able to eliminate 80% of our wardrobe with minimal impact.

Time Management

Time management is a crucial skill we all need to hone. The truth is that time is the recourse each person is allocated equally. No matter what you status in life, we all get 24 hours a day. That does not change regardless of who you are. Donald Trump, with his billions, get the same number of minutes as the homeless person. The difference is what each of us does with the time.

The 80/20 rule enables us to focus upon those activities which have the greatest payoff. Eliminating all the 'busy work' helps us to forge a more profitable life. Those who seek freedom need to take control of his/her time so as to maximize the efforts. Most people wake up each day to go to a job they despise so as to pay their bills. The financial slavery most operate under as a result of their spending means they do not have choice of how to allocate their time.

What makes this matter even worse is that most waste many of their hours at work on senseless activities. This is done in an effort to appease the boss and protect one's place within the organization. No sane manager would fire anyone who is continually busy. The truth is that 80% of the actions could be immediately eliminated without much consequence to the company. Nevertheless, we will never see this happen in the corporate world.

As a seeker of freedom, you can approach things in a different way. Knowing and applying this principle frees you to pursue matters how you see fit. What is most important to you in life? Answer this question and spend the majority of your time in pursuit of this. That is the key to fulfillment. The highly successful know this principle intimately.

Waste

It is a startling revelation to learn that 80% of our efforts are basically wasted. The key to the minimalist mindset is to eliminate all waste in one's life. Excess is a part of all of our lives. Reducing our lives to the minimal means we are free to concentrate the important things. Plus, we have a greater incentive to appreciate that which remains.

Consumerism is the archenemy of freedom. We all have spent money (another valuable resource) on things that weren't essential. After the purchase, we place the item in a closet only to uncover it when we go through the declutter process. In short, we wasted money and closet space on something that need not be purchased in the first place.

If we carry this concept in all we do, we can see how our efforts are instantly empowered. Freedom is achieved by shedding the excess and only engaging in that which is important. The 20% is where our success and happiness lies. Spending the majority of our time on these tasks streamlines our lives. We enjoy greater fulfillment, more success, and increased happiness while reducing the effort spent to get there. This is the power of the 80/20 rule.

Apply this concept to every area of your life. Here we see minimalism in effort net physical results.

Slavery

The enslavement of society is incredible. In America, we believe that we live 'in the land of the free'. However, when viewed through the proper eyes, we realize that most Americans are far from free. In fact, they are in the opposite situation: they are enslaved. Sadly, this is a voluntary enlistment. People state that there are over 2 million people held in captivity. In truth, I doubt there are that many who live in freedom.

The Top 1%

Society talks about the Top 1%. Usually, this term is applied to those in the upper echelon financially. For example, the Top 1% of wealth holders. The question is why would anyone care about these people? The answer is because they represent freedom in the minds of most people. While this is not something that most acknowledge, it is factual when you know how the mind works.

Humans value what they do not have. Since most of society tends to work to pay its bills, we are envious of those who do not face the same difficulty that we do. The upper class of any society usually lives a lifestyle far removed from that of the average person. In our minds, these people live the 'good life'. It is a world where problems are optional since we know they do not face the same issues we all do. Since most people seem to be afflicted with either financial or job challenges, we tend to determine that the elite are problem free. Of course, this is totally false.

What the Top 1% of people represent is that class that can basically do whatever they want, wherever they want. It is an exotic lifestyle. We seem them traveling to foreign lands, staying in hot spots across the globe. Their days are spent on Rodeo Drive purchasing the finest goods the world has to offer. They have time and money, two commodities the average person is without.

It is true, these people are free. They live a lavish lifestyle where they can afford most anything they want. Their incomes are so great that spending is rarely a concern. Of course, as I pointed out in my last post, many find themselves in trouble because of their excess spending. However, barring this situation, most of them find they are free from the financial woes many of us face.

What We Earn

Did you realize the average person earns well over $1 million in his or her lifetime? Yet, at the age of 65%, most people are broke. In other words, they managed to earn and spend $1 million. This is absolutely appalling. How can this happen? The simple answer is people are slaves. Thus, they did as they were shown.

Consumerism is the enemy to freedom. Madison Avenue is infested with geniuses who are experts are creating marketing campaigns which separate us from our money. We basically are told what products we need to purchase and how we need to acquire them. 0% down, no interest for 12 months, buy here pay here. All these concepts are meant to satisfy the immediate gratification craving while putting off the day of reckoning...having to pay for it. Thus we are on a vicious cycle that we cannot get off.

People work full time (if they are lucky) to generate income to satisfy their cravings. Quite simply, if one wants an expensive automobile, he or she, with good credit, goes and finances it. Leasing programs allowed one to get into a car otherwise unaffordable. Of course, along with this comes the 36 monthly payments at a few hundred dollars a month. Not a big deal with you take into account the fact that we earn over $1 million in our lifetime.

However, that is not all. We do the same things with our homes, electronic equipment, and trips. Credit card balances are at an all-time high. People are so far in debt they barely keep up with the payments. Of course, we are told by debt consolidators to refinance all that debt at a fixed cost. This sounds good until we learn what the terms of that transaction really is. In the end, it is more slavery.

Why Do We Work?

Why do people work? To earn money to pay their creditors in most instances. That is the honest truth. People are driven into financial slavery by their own spending habits. Most of the civilized work would be completely bankrupt if they lost their jobs. We are now seeing this happen in millions of cases. People who claimed to be free were really living a lie. They didnt have any wealth. Everything was leverage. Therefore, someone else had dibs on all the goods one has. Now, when it comes time to pay up, most are finding they cannot afford it.

Of course, we can make this claim about employees. But what about those greedy business owners. The truth is they are in even a worse situation. Most of them are enslaved to their business. At least an employee can take his/her two week vacation. A business owner, even when away, is still responsible for the business. Thus, he or she never really gets free from it. The business has enslaved the owner. This takes on larger proportions when we realize that many owners earn a fair bit more than the employees and, thus, have a higher standard of living. That is another way of saying they spend money in larger denominations.

The Slave's Existence

A slave gets up and works all day long with nothing personal to show for his or her efforts. The fact is that a slave exists only for the benefit of another. When people work at jobs because they need the money, what does this say about this person's motive. He or she shows up and someone else gains. Of course, most will point to the owner. Actually, I do not believe people work for companies or specific owners. Instead, they work for their creditors.

Financial slavery is alive and well. Many proclaim it is because companies do not pay 'sustainable wages'. Hogwash. People earn enough money...just look back to the above number. The problem is people want to spend money they do not have. Our culture is such that everyone feels entitled to spend like the Top 1% without a thought of what is required to live that way. We want it now and we will have it. Money is no object. Few ever consider the consequences of their actions until it is too late. Nevertheless, the belief is that 'I am entitled'.

And this is the other area where people are slaves. Dogma is alive and well because people blindly have faith in it. Whether it is government, religion, or our relatives, the result is always the same. Whenever one adopts a belief system of another without questioning the validity or practicality in one's life, that person is enslaved. We witnessed people die for their faith and/or country. My question is did these people ever consider what they were defending? I hypothesize that few ever do.

The only way to be free is to examine what you believe and why. Why do people spend excessively in an attempt to feel better? Because he or she believes it will work. And where did this belief come from? Simply, someone taught it to them. The same can be said for any belief system. A free man questions everything to determine whether it suits his needs or not. This is not commonplace among society. Slavery of the mind is the greatest jailer ever created. Sadly, few even realize they are imprisoned.

Freedom Buster: Spending

What do these celebrities have in common?

Nicholas Cage
Billy Joel
Meatloaf
MC Hammer
Marvin Gaye
Bernie Kosar

The answer is they all went bankrupt. Each of these individuals earned millions of dollars but ended up broke. Why is that? Certainly many were victims of bad management advice while others got involved in investments that went bad. And still others had money stolen by dishonest lawyers and accountants. However, for everyone who suffered a fate like this, there are thousands who got there simply as a result of overspending.

Spending is the archenemy to freedom. People who cannot control their spending end up living as slaves. Their entire existence becomes a continual battle in earning enough to pay off the bills. Sadly, this is true whether one is bringing in millions or thousands. The end result is the same.

Have you ever thought about celebrity lifestyle? Leaving aside the fame, what makes it so attractive. To me, it is the freedom they have to do what they want. A person in this category does not have to get up and go to 'work. Instead, they choose the projects they opt to be involved with. This is how they generate income. Of course, it is a sound philosophy as long as the spending is kept in control. The second the spending starts to exceed the revenue, one starts on the path to bankruptcy.

The Hollywood crowd is not known for their minimalist lifestyle. Therefore, they tend to spend lavishly on houses, cars, and other exotic items. While their careers are successful, making the payments is commonly not a problem. However, more than a few suffered a reversal of fortunes where their careers dried up. At these times, the financial obligations can overwhelm even the most famous of people.

How does this all relate to your life? The philosophy is identical even though the numbers will change. Your path towards slavery is paved whenever you allow your spending to get excessive. Whether one is upside down to the tune of $500 a month or $5,000, the simple truth is that one's bills cannot be paid. In both instances the income was smashed by the spending.

So, how do we attain freedom? To me the best approach is to start by decreasing the expenses as much as possible. If you are able to reduce your monthly outlay by 50%, then you only need half as much money to live on. Therefore, if all other aspects remain the same, you will have excess every month. Invest the difference in an asset that yields a decent annual return and you will find that you are getting further ahead. This is the secret to building wealth. However, none of it is possible without first controlling one's spending.

We have all heard of the high income, high expense people. These are those individuals who earn a substantial salary but have little to show for it. I personally know people who cannot afford to retire even though their income is in excess of $100,000 a year. Spending put them in a hole that it will take years to get out of. Of course, habits do not change on their own so unless something is done, these people continue along the same path.

Understanding this concept will allow you the chance to enter into the 1% who live in freedom. Most of society operates as slaves. By controlling your need to buy, you will be able to establish a life based upon freedom principles. This is what the high income earners who do not find themselves enslaved do. Yet, contrary to popular opinion, one does not need to have tremendous cash flow to attain this state. Reducing your financial obligations to the bare minimums will lead to freedom.

The minimalist mindset is a terrific asset to have in this quest. When you look around you at all you have, can you tell me how much of it you really need? Most people have far more than they ever could consume or utilize. Truthfully, how many televisions does a person need? Do you need to continually get a new vehicle? Is a monthly cable bill mandatory for your existence? Can you get by on less than a 2500 square foot house? If you answered yes to these questions then I will say that you are perfectly suited to live as a slave.

It is easiest to control one's spending by purchasing only what is needed while minimizing the dollars spent on treats. Most people have too much 'stuff' in their homes. Getting rid of things through a decluttering process is an excellent way to begin the minimization path. However, a far better way is to never purchase the items to begin with. People literally enslave themselves with every financial decision they make. Sadly, it seems to happen $20 at a time.

Controlled spending is your path to freedom. Money is something that we simply need to get by in this culture. It is the medium of exchange that allows us to acquire the goods and services that are needed. However, excessive spending is the fundamental cause of many of the problems we face in the world today. Look at the various economic conditions of most governments, businesses, and individuals and you will see a spending problem. Countries are quickly becoming enslaved by the debt they are amassing. The rules apply no matter what level one is referring to. Spend to much and you will be a slave. It is that simple. Spending is the biggest freedom buster there is.

Another Chain Broken

Part of my itinerary with Freedomquest is to reduce my expenses down to the bare minimum. This allows me to break free from the bondage of societal norms that much quicker. I notice how much I spend on a monthly basis without getting proper value for it. Most services are good, however, not worth the money in light of what is paid. And, I am not particularly referring to the dollar amount either.

Netflix offers a wonderful service and was instrumental in helping me break my addiction to cable. Without this, I am not sure I could have gone 'cold turkey' with cable like I did at the beginning of the year. Nevertheless, I was able to survive without having the 250 channels including HD (not that I had a HD television).

Yesterday, the decision was made to cut ties with this company. This is a decision that came about as a result of a number of factors. To start, Netflix is increasing their monthly subscription, to $9.95. The $1.00 increase isnt a big deal especially since I could have gone to a streaming only program which would have saved me a dollar. Now, I save the entire amount.

The second factor that went into this decision is the fact that I am in the process of breaking all the chains that hold me down. While the $9 a month is not a significant amount, I realize that it is still $100 a year. My conclusion that people kill themselves with the minimal purchases is at work here. Everything decision I make has to be with the idea of freedom. Television, or more specifically, movies do not lead to that end. Instead, I only receive entertainment. Now, I am going to pay myself $100 a year to learn to entertain myself.

Once I reached this conclusion, I went online and checked my account. I will state that I did not hit the cancel button as of yet for one simple reason: Netflix shuts the account down immediately and does not issue refunds for partial usage. Therefore, I figured I should utilize what I already paid for.

At this point I should mention one risk I am running. By not canceling immediately, I risk changing my mind. To someone less committed, I would say that once the decision is reached, go again and sacrifice the last couple of weeks. For the price of $4.00, it is worth not putting the forward momentum in jeopardy. I opted for this path simply because I understand my commitment to a radical life change. Anyone who is having torn feelings about it needs to break that chain at once.

This step is another one that I have taken in the last couple of weeks. At this rate, I believe I will attain my ultimate goal of being free within a reasonable period of time. My freedom goal is well within reach.

Waste Everywhere

Since I really started adopt the minimalist mindset as a foundation for my life, I notice how much waste is everywhere. This shows that I am grasping the concept completely. I am happy with the progress that is being made with my mental outlook. It is amazing to realize how the decisions people make shows how they are into living as slaves.

The other day, we went to drop off the converter box to the cable company. This was one of the steps I took over the last year to reduce my financial indebtedness to the large corporations. Getting rid of cable and the associated bill that went with it was one of the best things that I did. (If you really want to change your life, call your television provider and cancel it right now). Nevertheless, while standing in line, the lady ahead of us was going in the opposite direction. She was getting her service hooked up and she got the entire enchilada. When all was completed she got 6 HD boxes with two of them having the recording capability. Of course, this means that at her house there are already 6 HD televisions which shows a huge expenditure even on the low end. Now she will have a $220 a month bill on top of it all.

What is the waste here? How important is television really? Consider for a second that mankind survived thousands of years without this medium. Therefore, unlike food or water, it is something that we can do without. This particular lady is throwing her financial freedom away to help the profits of some faceless corporation. The sad fact is that she has no idea what it is costing her.

Here is an example of how much it costs her. $220 a month over the course of 5 years will come to $15,317.04 if invested at 5% return (my math might be off since I did it all by hand but you get the point). Now, let me ask you, do you think this person could use this money for a better purpose? Can you imagine the trip one could go on with this type of vacation fund? Instead, each month she will make a payment towards supporting someone else to entertain her family. In my opinion it is a high price to pay.

Freedom is a valuable commodity that people toss away with every decision they make. The above example show how this woman is sacrificing her future ability to do what she wants by having a service that ultimately provides little value in return. Sure there are lots of wonderful programs on television. But, I stand by my assertion that none of them are worth the price ultimately paid.

Freedomquest is the process of retaking our freedom back. To me, this all starts in the mind. Noticing where other people waste their precious resources is just one step in the process of acquiring the freedom mindset. Being a minimalist allows one to look at all the physical items that people spend money on. The ultimate question always is was value received for it? Many will claim yes based upon their consumption mentality. However, the truth is that few really understand the difference between a want and a need. This is paramount to the minimalist lifestyle. Eliminating all excess is a freeing experience. There is some pain involved because of the conditioning that we have. Nevertheless, we can see with clarity how much is wasted throughout our lives.

Start to notice the waste that is around you. Be mindful of what others are spending money on. Relate this back to your own life. I am certain you will see how your freedom is being given away with each purchase.

Minimalist Mindset: Treats

Treat: anything that affords particular pleasure or enjoyment (dictionary.reference.com)

As I make my excursion further into the minimalist lifestyle, I realize how much is wasted throughout the course of our lives. Today I make the correlation between a treat and waste. Isnt it interesting that the average mentality assumes that a treat is expensive. Why shouldn't it? Madison Avenue is paid huge sums of money to ingrain in us exactly what we need to think. When it comes to 'treats' we are taught to think of extravagance.

The above definition does a terrific job capturing the essence of what I am referring to. It is something, either an item or an action, that affords a particular pleasure. One other caveat that I would add to this is that it must be something that is different from the norm. Watching the same program on a weekly basis is not a treat since it is something that is part of the normal routine.

While I considered this subject, what first struck me is how people turn what should be a treat into a regular activity. For example, eating out should be an activity that is done as a treat. Instead, most people find themselves doing this a few times a week (or more). Therefore, the treat is lost since it is part of the normal pattern.

A second idea that came to me is that the treat does not have to hit a certain dollar amount. The definition above fails to contain the words expensive, costly, or regal. Certainly a treat could be those things but it not necessarily. That led me to conclude that one needs to alter the what he or she thinks about a treat.

Why do I mention all of this? My reasoning is simple if you understand Freedomquest. Most people live the slavery existence because they have no control over their finances. The average person earns over $1M in his or her lifetime yet have little to show for it at retirement. You would think that with this type of money earned, one could put away 10% which is $100,000 if the person earned no interest. However, most fall short of this.

What happens to all that money? One of the biggest problems is people 'treat' themselves all too often. When this occurs, income that could be invested is squandered. An example is the outlook of spas. We all saw the commercials where we are told to treat ourselves to a nice day at the spa. "Pampering" is what it is called. After all we deserve it.

My question is what does this pampering cost? $100? $200? $500? Honestly I have no idea but I know it can easily run into hundreds of dollars. And what do we get for this pampering? Obviously the person feels really good after (until he/she has to pay the credit card bill). That is the benefit. Therefore, it was all worthwhile.

Which brings me to my next question: how does this person feel 3 or 4 days later? In most instances, I presume that relaxed feeling is gone. Life has taken over. The money is spent yet the person feels the same as always. The treat was fleeting.

And that is the very point about treats...they are fleeting. The enjoyment or pleasure is only temporary. Whether it is a nice dinner, a day at the spa, or concert tickets, the net result is the same. The sensations felt in the moment dwindle as the next few days pass. Usually within a week, if it takes that long, the enjoyment of the treat is completely gone. So, why do we pay huge sums of money to give ourselves a treat. That is like a dieter giving him or herself a treat by eating an entire box of chocolates. Not very sensible is it?

Therefore, a major shift that needs to be made is to 'minimize' your treats. Rather than spend hundreds of dollars on something that is fleeting, make your purchases less costly. If you are going out to dinner, do not spend $50 a plate on something that will ultimately end up in the sewer system. I can attest that a dinner that costs a fraction of that amount ends up in the same place. Expensive treats simply do not make sense.

The minimalist mindset applies to every area of your life. Trying to cut corners only ends up costing you. If freedom is your ultimate goal, be sure you are truly committed to taking the action that will get you there. Looking at the world through minimalist eyes will assist you in taking the proper action. This is how important the mindset truly it.