How to develop your PLAN

[Russ H]

Placeholder for more detailed response.

Great start. :smx9:

-Russ H.

 

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[memenode]

Hmm ok.. I'll jump in and see what happens. I think I actually already lead a pretty simple life in terms of expenses and inventory of stuff and regarding core values and things I love to do I've been inspecting myself with help of some advice from Brian Kim (briankim.net) and Napoleon Hill's "Think and Grow Rich" so I did the list of desires, picked one, did some desire and faith boosing exercises and am now in the "primary plans and actions" stage.

My goal is to start making $5000 a month with my web publishing business by September 9, 2009 (yeah I picked a 999 date ). In this first planning stage I'm coming up with ideas and candidate web projects which I have to pick one which I'd ride to this goal.

Now..

Core values

freedom
independence and privacy
clarity of thinking
spontaneity and flexibility
open mindedness
kindness and love
tolerance
financial security
achievement
integrity and honesty
growth
music
writing
technology
wealth
rich mind
design and creativity
escapism
thinking
curiosity
knowledge
convenience
serenity
vision
safety
power
passion and motivation
advocating
pursuit of a cause

Things I like to be around

My computer.
Inspiring people.
Out on a nice starry night
In a techy environment.

What I like to do

Writing about my interests and beliefs.
Thinking.
Listening to trance and ambient music.
Building online projects..
Debating or discussing
Making electronic music (though haven't done in a while)
Watching movies, especially scifi
Partying (occassionally).
Playing 3D games.
Tinkering with software (trying programs, tweaking etc.)
Exploring the web, watching videos.. for stuff of interest
Chatting on IRC.
Building computers.
Help others in self liberation and self growth..
Designing logos and graphics
Watching the night sky.
Throwing a party (Never done, but would like to do).
Shopping for tech stuff, especially computers..
Talking.. (whe I get a chance)

Monthly expenses

I'm living in a cheap flat with my sister (in Europe, Croatia) and this is probably lower than most americans are used to.

$435 a month. My sister covers food and sometimes water/electricity bills, but if not (water/electricity) then it's $540).

This is slightly variable though, but I'll try get it in a habit to track my expenses and thus be more precise about it. I don't spend much anyway so.. it shouldn't be a problem.

Basic needs

This flat.
Food.
Electricity, water, internet, phone.
This computer. (needed for my biz).

I make a basic living from my online biz, but as mentioned above I'm looking to drastically grow it in the coming year.

What I'd need to grab from a fire?

My hard drive (or whole computer since it's actually quicker, disk has to be unmounted).
My wallet and maybe my mobile phone. They're small.

What would I want to grab?

My computer, speakers and LCD.


As a web publisher and with most interests revolving around internet and computers, or pursuable through them, my computer is most of what I need to be happy. Call me a computer geek if you will, I sort of am!

My inventory

I should take a little time off my weekend for this, but it's really not much stuff. Still there are a few drawers here which might contain a few items I don't really need, though I did organize them recently...

Cheers

 

[Russ H]

Excellent work, memenode.

Just curious: You've set your monthly goal at $5,000, but only spend about 1/10 of that currently.

Do you think you'll be tempted to stop when your passive income hits, say, $600 a month?

Or will that only give you more motivation?

-Russ H.

 

[memenode]

Thanks Russ.

Actually, I already hit $600 on average.

But it would motivate me further because I want to be able to do more things, from material stuff like buying a car, deciding on a place to live in the world and buying a house there, investing into even bigger ventures that somehow help the causes I believe in etc.

What I spend now is only for quite a basic living. I don't go out much, don't spend much on extras. For example, I'm postponing buying a new touch screen mobile phone, a bigger SATA hard drive and am even conservative on domain name and web hosting expenses etc. because I still don't feel quite so secure financially. What I make is basically "just over" the basic line, not to mention that it's on the old web sites which I've lost some of the interest on (so I'm now attempting to create something new and more motivating yet more profitable).

Also the global economy isn't in a really good shape and the prices are going up while the dollar value is going down (generally).. so I need a lot more to secure myself, let alone get to the point of being able to save for big things.

And I don't want to EVER take a loan. I've never been in a real debt and I intend to keep it that way. I've heard too many horror stories about loans and I just don't feel good knowing I owe money to someone. If I'm buying a house, for example, it's gotta be from savings, or a payday from some investment. I don't want a big house anyway.

 

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[andviv]

And I don't want to EVER take a loan. I've never been in a real debt and I intend to keep it that way. I've heard too many horror stories about loans and I just don't feel good knowing I owe money to someone. If I'm buying a house, for example, it's gotta be from savings, or a payday from some investment. I don't want a big house anyway.

By being afraid of loans you are missing one of the most powerful investment tools available: Leverage. This is what helped a few here to make millions. Instead of being afraid of debt maybe you need to study it a little bit to see when it is right to use it, and how.

 

[memenode]

By being afraid of loans you are missing one of the most powerful investment tools available: Leverage. This is what helped a few here to make millions. Instead of being afraid of debt maybe you need to study it a little bit to see when it is right to use it, and how.

Hmm, alright, maybe I should consider that at some point, but something tells me that now isn't the right time to think about loans.

I mean, if there is a chance to increase my earnings without taking any loans then that seems to be the right way to do it. I suppose somewhere down the road though, once I've lined myself up better financially so that I have an income stream that can back up my ability to pay back what I borrowed, borrowing might be something to leverage, but I'd be very careful with that and start with smaller amounts.

But for now, it seems right to avoid it.

Thanks

 

[max momo]

Hi, Glad to join this thread, been following it for one entire year now!:smx19:

I’ve seen this topic develop over the internet a few times now and must say this thread proves a shining example. Love that the thread isn’t rushed. Also poignant – to me -that the thread began right before 9/11 and is why I am just posting now. [September, Fall, Change in the air, Back-to-School, new beginnings.]

The Exercise
I’ve actually gone through this exercise, In Full, about three cycles now and in part, more or less, any number of times. The Exercise transformed, for me, into a fine method for information processing and a repeatable and scalable forum for critical thinking and systems analysis.

First started The Exercise, formally, in early September 2000 – mostly as a result of having a few “A-HA†moments and reading a few “A-HA†books starting in 1998. In late 98 I finally came out of a haze and asked “Why am I broke and in debtâ€.

By early September 2001 I actually had written out my core values and what I wanted to accomplish in life in fair detail. And a couple days later, 9.11.01 happened and made me reconsider: What really changed? Were my goals still the same if everything else changed? Did anything, or would anything change – really change, down to fundamental makeup? Did I change?

ACTION
Well 911 came and went and there have certainly been many more significant changes in my life before and after. There’s the rub, your goals do change over time because YOU change and YOUR position relative to everything else changes. Once you really learn what The Exercise does FOR you, then you’ll continue to implement the lessons and resultant skills across various other platforms and applications and grow what YOU can do for OTHERS.

2. And then my fiancée and I completed The Exercise on our COMBINED values, actions, expenses, goals…

3. And then I repeated (and continue to do so) The Exercise for my financial and professional endeavors.

The Exercise continually enlightens the consciousness as you delve into yourself and REALLY answer the questions in a forthright and meaningful fashion.

For those that started The Exercise, but got bogged down (there are a whole host of reasons why that happens) don’t get discouraged. Taking stock of one’s emotional/physical/social/financial and spiritual life isn’t’ for the self-absorbed or uninformed or those dead-to-the world and themselves.

Indeed, you awaken or revisit those places in yourself which may have lied dormant for quite some time.

Like many of you, when I just woke up and initially began The Exercise I was amazed at how far deep in debt and denial, and just plain ignorant, I had been.

And for those of you lurking on the thread, or who have started but hit a roadblock, stopped progress and now are dejected, take heart – it happened to many of us.

In fact, I was first challenged to write down my goals for the first time in 1991. I didn’t do it and actually held the temerity to tell the coach who challenged me that I would finish it and provide to him soon. And I never did…

It took the first “A-HA†moment to jar me out of the stupor and I didn’t truly write my goals out ON PAPER for the first until late 1998. [On Paper proves important. The chasm between dreaming and establishing goals simply comes down to putting pen to paper – a small matter but a Large Step. That gulf between dreams and goals we now know to call ACTION.]

After I started tracking my expenses (to the penny) on Jan 1, 1999 I REALLY got into it. As a Point in Fact, I saved EVERY receipt throughout the year and on (per recall) the first day of September that year I actually took a brown paper bag full of those receipts to Burning Man and threw it on the fire pyre and watched a year of consumption go up in smoke to the drone of voices, drums, techno and sights and sounds I’ve never experienced before or since.. .

At that moment I realized how those few ounces of paper actually weighed a Very Heavy Load on my psyche and pocketbook.

RESULTS
The goals that my then fiancés (now wife) developed are still in my briefcase just a few feet away. And yep, I still have the year’s worth of notes documented EVERY PENNY that I spent, in my archives.

I’ll spare all the details from this post, but suffice to say I WITNESS HERE that it worked for me, both personally and professionally. As my financial endeavors have developed, blossomed, struggled, failed, and rose again, those skills and abilities – and the self honesty – it takes to realistically employ The Exercise improved practically every facet of my life since it forces personal accountability which then allows accountability to outward people and goals.

Hence, at this point I personally no longer feel the need to write out my goals or expense in this thread. Over time I have built a number of systems to continually do so and implement in the Big Four financial concerns: 1. Real Estate, 2. Internet Business. 3. Investing and 4. Career.

Indeed, I have collected a fair amount of The Exercise results, thoughts/notes/analysis etc. and shaped them into my blog which goes back to the beginning of 2000 (probably over 500 pages now), which is just part of the website I developed, and have also formed the outline of a book on personal finance that I’m writing. For that matter, many of the lessons I have learned I have shared with many folks in my life and the posters at numerous forums. In fact I’ve read many posters here since I joined the RD forum in early 2004 and continue to follow the development over at this site.

And of course, The Exercise continues and the opportunities to share lessons learned forms a dandy reason to establish This Forum, and This Thread.

The way I look at it, if you stop (or never start) posting here, may it be because you are posting/acting/developing EVERYWHERE else….

 

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[kwerner]

Time to rejuvinate this thread....

Since Russ is holding out on sharing the NEXT steps of the Plan until more people participate, I figured I'd jump on board and contribute...


My Core Values

- Adventure / Discovery
- Thrill seeking / Risk taking / Anything that gets the heart pumping and makes you feel truly "Alive"
- Happiness
- Involvement of friends / family in activities I enjoy
- Consideration & Respect
- Positive attitude
- Being around people that motivate / inspire me
- Trust, honesty, & loyalty in relationships
- Personal growth
- Doing your best
- Self-reliance
- Providing security for family
- Leisure
- Faith
- Freedom
- Achievement
- Humor


Things I Like To Be Around

- My wife and kid
- The ocean
- The beach
- Sunshine
- Passionate / motivated / inspiring people
- New discoveries / New journeys
- Fireworks
- Laughter
- Puppies & children


Things I Like To Do

- Travel
- Road trip
- Go on a cruise
- Drive
- Sex
- Play on the beach / In the ocean
- Eat good food
- Laugh / Make friends & family laugh
- Almost any activity / sport that's thrilling / exciting
- Earn money without having to labor for it
- Wear fashionable clothes
- Sit outside on a clear night and gaze at the stars
- Spend QUALITY time with my wife and son
- Help friends with (basic) personal financial planning
- Tour new homes
- Learn, Grow, & Discover
- Act like a kid again, playing together with my son

 

[kwerner]

Part II: Taking Action

...the first question of TAKING ACTION is: How little can I live on?

What do I need to survive?

And once you know the bare minimum it will take . . . how much does that survival existance cost, per month?

How little can I live on? Well, if I were to go to the extreme and sell my SUV, house, and most material possessions, like Russ suggested in the "Taking Action" thread, and go with a completely MINIMALIST lifestyle - I figure my expenses would cost me about $1,500 a month. (But then, of course, I'd have quite a bit of extra cash available to invest, not only from the sale of my possessions, but also from my dramatically reduced monthly expenses - which, I assume, is his point in this exercise).

Here's how I came up with the $1,500 a month figure:

Car - Spending $4,000 on an older, but dependable, car. Monthly Payment: $125 (on 3 yr. loan)
Mobile Home - Find a bargain for $10,000; it's not fancy but provides basic shelter. Monthly Payment: $450 ($250 month loan payment + $200 month lot rent)
Health / Disability / Life Insurance - $180
Auto Insurance - $45
Maintenance - $40
Clothing - $25
Food - $300
Gasoline - $125
Electricity - $80
Entertainment - $40
Household Necessities - $50
Phone - $40

Total - $1,500

And that would cover pretty much all my needs for "survival existance".

If you are motivated, try to write down what you think your current expenses are (rent or mortgage, prop tax, insurance, car expenses, etc) each month. For expenses that occur only once a year (like dental appts or vehicle registration), divide by 12.

You're on your way to determining your "bare essentials"!

-Russ H.

My average monthly expenses are quite a bit higher than my "survival existance" expenses I budgeted in the above exercise.

Mortgage - $787
Car Payment - $0
Health / Disability / Life Insurance - $186
Auto Insurance - $72
Phones / Internet / Cable Services - $183
Electricity - $74
Heating - $42
Water - $35
HOA Dues - $11
Trash - $22

Groceries & Household Goods - $427
Dining Out / Fast Food - $389 (I should easily be able to reduce this down to $150)
Entertainment - $111
Gasoline / Auto Maintenance - $227
Gym Membership - $45
Clothes - $40
Miscellaneous - $75

TOTAL (AVERAGE) MONTHLY EXPENSES: $2,726


And since I know Russ has been hounding everyone to tally up your expenses "down to the last penny", I included my actual expenses for the month of September (from using my debit card for all purchases - and this is how I came up with some of the figures above). But keep in mind that I had some highly out-of-the-ordinary expenses in September (mainly the clothing and Amazon.com purchases) - but as Yves had said, unordinary expenses can creep into your budget each month.


September Expenses:

Mortgage: $787.54
Health / Disability / Life Insurance: $185.80
Auto Insurance: $72.25
Phones / Internet / Cable Services: $183.26
Electricity: $74.42
Heating: $41.80
Water: $35.52

Groceries and Household Goods: $427.43
Doctor Visits / Medicine: $44.77
Dining Out / Fast Food: $389.42 (holy crap!)
Amazon.com Purchases: $84.16
Annual Credit Checkup: $23.95
Entertainment: $111.45
Gasoline / Car Maintenance: $226.83
Gym Membership: $44.59
Business Expense: $95.00
Clothing: $265.30 (crap, again!)

TOTAL EXPENSES FOR SEPTEMBER: $3,093.49 (yikes)


So, what did I learn from this excercise? The biggest thing probably would be the fact that I can get by with significantly less expenses (just how I convince my wife of the fact is another story). And also, although I'm certainly not living beyond my means - I'm also NOT saving an additional $18,000 a year that I could be if I reduced my expenses by $1,500 a month (as I could by keeping the "survival existance" budget).

 

[Russ H]

KWerner-

Good Stuff. :smx9:

Rep speed for you!

-Russ H.

 

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[marktech101]

Thanks for the help!

 

[kwerner]

OK, let's recap:

If you're truly, madly, deeply involved in this exercise, by now you've:

1. Identified your CORE values and characteristics
2. Examined your needs, wants, and likes.
3. Started to TAKE ACTION-
-tracking your daily expenses
-identified some spending habits and expenses that are, well, eye-opening

1. Check
2. Check
3. and Check

Part Three: WAKING UP! (taking stock of what is essential)


If you've been doing the exercises, chances are you've had a few big surprises, especially this last phase-- tracking every penny going into and out of your life.

What Happened?

If you're in shock right now, that's absolutely normal. For some of you, this is the first time you'e started to become financially aware of what's going on in their day to day lives.

Kinda like waking up from a dream.

When I first did this exercise, I felt like I had awakened and was now living-- a NIGHTMARE!

My first reaction was shock. Then denial ("these expenses were unusual this month"). Then, after I'd tracked expenses for a few months, I discovered-- to my horror-- that I had "unusual" expenses each and every month.

Dang.

Turns out, I was just being a typical American consumer. Eating out, driving my car(s), and buying stuff.

Buying LOTS and LOTS of stuff.

A sickening amount of stuff.

Stuff that I never used. Or used only occasionally.

Stuff, stuff, stuff.

Those of you that are pack rats know just how much stuff you buy and never use-- it accumulates and takes over your life.

And those of you who are adept at "purging" things that aren't used have been spared the awful truth: That you are essentially working hours/weeks/months, to buy STUFF . . . much of which, you never (or rarely) use. By getting rid of it (giving it away, loaning it to friends, throwing it out, or (gasp!) selling it cheap)-- you are like a tub full of money with a slow leak at the bottom. As you constantly get rid of the things you don't use, you don't realize just how much all of this STUFF is costing you.

I agree 100%. We have rooms in our house that we don't even go in anymore because it's cluttered with so much "Stuff" that we don't use anymore.

Voluntary Simplicity

The route I took, once I realized how much STUFF was weighing me down, was inspired by a quote from Henry David Thoreau:

"Our life is frittered away by detail. Simplify, simplify."

I looked at my life, and at what I spent-- and for virtually everything-- I asked:

"Is this essential to my life? My happiness?"

And most important:

"Can I live without this?"

After doing this for a few weeks, I was stunned.

Virtually *everything* in my life was "nice to have around", but not "essential".

Another way to look at this is: If my house was on fire and I can only save what I can carry, what do I choose? (this assumes that every living creature in your home is already out safely).

What I would grab?

My answers (back when I first did this exercise as a single guy, 15 years ago):

I'd grab my photos from traveling the world. And my guitar.

That's it.

Everything else could go.

Everything else was not essential to me-- and was replaceable, on some level.

Note that this was 15 years ago, when I was a younger, single guy. Now, my list is shorter:

Nothing.

The only things that are absolutely essential to me are my family and pets (which were excluded in the above exercise).

Everything else, while nice to have, is just STUFF.

It can be replaced. And if it can't, I could live just fine without it.

*********

I know what you're thinking.

"He's full of cr*p. He'd grab something if he had the chance."

You're right.

I'd grab my laptop, or backup hard drive, because I have so much of my life in there (past work, etc), and my wallet, because it has my ID and credit cards (enough to survive without anything else).

But both of those things are not ESSENTIAL to my continued existence. I could live without them.

**********

Time for some fun. Remember, this is not a REAL fire (in a real fire, you get you and your loved ones out, right away, and don't go back inside!).

What would you grab?

Could you live without ALL of your stuff?

If not: What is ESSENTIAL to your life?

What are the things you cannot live without? (remember, people and pets are excluded from this exercise).

(Let's assume that, if you have insurance, it would cover the losses within 30 days).

-Russ H.

What I would grab:

- Photo CD's
- Identification Cards (Birth Certificates, Drivers License, Debit Card)
- Laptop (Because I have business info on it - might be a good idea to back up this data onto a external hard drive and add it to the photo cd's and ID cards in my fireproof safe.)


Thanks for encouraging everyone to think about this Russ, so we can make plans to have our most valuble possessions safe and secure or readily available to grab in case of a real fire.

:cheers:

 

[kwerner]

OK, time to extend the "STUFF" concept:

If you've been following along, you now know what you absolutely need in case of a fire-- your bare minimum essentials that are irreplaceable, or at least (in the case of prescription drugs), essential to survival.

Now comes the hard part:

Let's assume you HAVE to move, and you must leave most of your belongings behind.

Similar to the fire exercise-- with one catch:

You WILL NOT replace anything. What you take now, is all you will have to live on.

And here's the kicker: You need to bring only the things that will keep you happy, and allow you to continue living the life you choose.

What I would bring:

- SUV
- My kid's car seat
- Debit card and cash
- Driver's license, ID's, and important documents
- Photo CD's & Home movies
- Bible
- Laptop
- Allergy medicine, Tylenol
- One week's worth of clothes for each person
- My kid's favorite teddy bear, blankey, and some of his favorite toys (Thomas the Train sets)
- Cell phone
- Wedding rings
- Shaving bag w/ toiletry items (toothbrush, toothpaste, razor, etc.)
- A few dishes, glasses, and silverware
- Some cookware
- Vacuum cleaner

Um, I think I'm getting a little off track here... Russ said:

Whatever you do, remember the 2 rules:

1. You need to keep things required for day to day survival, at a minimum

2. You need to keep anything that you feel is essential to your happiness.

So, with that in mind, what else would I take that I would feel essential to my happiness?
You know, the thing of it is, is that as long as I have my wife and kid with me, the rest is truly just material - replacable or not, it's really not that big of deal - most of it is just "Stuff".

...look at each and every item you own, and ask, "How does this contribute to my life?"

I did this w/an excel spreadsheet, putting estimated replacement value in the column next to each item, and using another column to mark the item as essential, or not essential, and which non-essentials I needed b/c they made me happy.

-Russ H.

Okay, now this part is definitely going to take longer... I went through one of the bedrooms this weekend (inventorying everything in an excel spreadsheet and taking digital photos), the rest of the house may take a little while - I'll post my progress this weekend...

:smxB:

 

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[Deege]

Part I.

CORE VALUES (What Is Important To Me)

-Freedom
-Family
-Friends
-Health
-Happiness
-Loyalty
-Working hard to get what i want
-Growth
-Prosperity
-Honesty
-More (brain dead)


Things I Like to Be Around

-People without a negativity "aura" as i like to call it.
-A lot of trees.
-The Ocean
-Family
-Friends
-Computer
-Juice
-All animals
-Non-Conforming people.

Things I Like to Do (Activities)

-Surf, Snowboard, Skateboard
-Chill with friends and family
-Listen to music
-Think
-Sleep
-Hang with the Girlfriend
-Live

Part II.

Tracking Down Expenses

My expenses are minimal, maybe 5 bucks here and there, being only 15 my parents kind of have my back.

I may spend up to 50 of my own dollars a year. (Dont have much of an opportunity to make money at the time being.)


Part III.

Basic needs

-Family and Friends
-Food
-A place to live


What I'd need to grab from a fire?

My Wallet, Cell Phone(Which acts as my music player,iPhone) , A snack, Running Shoes, Animals.

What would I want to grab?

My Computer, My T.V., Guitar, Skateboard.

_______________________________________________________________________

It may seem kind of useless for me to post since i neither have an income or expenses. But this is where i stand, and i want to get ahead before im 18. Way ahead.

Cheers.

Goal for Monthly Income: NaN

 

[Charmed Angel]

This is a Great Thread Russ! I have just spent the most part of this day reading your thread and following the activities.
I did the activities as I read through your original post. I put them in a word document that I can reference when I need to.

The "Who Am I" was something that I find to be very valuable and I'm very greatful that you pose this question. I have learned a lot just from doing everything in your original post. This brought me to notice certain influences in my life that take away and distract from the very person that I am.
My Plan

Step One 1 Who Am I?

Core Traits (my deepest values and morals)

Spontaneous

Empathic

Helpful

Giving

Loving

Leader

Trainer

Inspiring

Enjoy family and friends

Director/ Manager

Independent

Open minded

Healthy

Outdoors

Learning

Confident

Classy/ Elegant

Achiever

Winner

Integrity

Spiritual

Loyal



Sometimes Wanting is Better than Having (list of things I “wanted†but never used)

Some of the cloths in my closet

Because I didn’t feel comfortable in them, I liked it but it wasn’t me.

Touch up paint for my truck

Because I didn’t feel like getting everything together to get it done.



What do I REALLY Want?

Managing Projects

Train others How To

Spend time in Arizona and Pittsburgh

Travel more

Someone to share and build my Life with

Bring cheer, inspiration, and peace of mind to others

Live a free Lifestyle



Things that I love to do.

Swim in dry climates. OU

Drive. SP, IN

Rockclimb. OU, HE, AC

Go to starbucks. CL

Gamble in Vegas. SP, WI

Watch a couple of TV shows.

Go to the park. OU, HE, FF

Play games with friends and family. FF

Build stuff. LN, AC, CO

Off roading. OU, AC, CO

Learning. OP, AC

Lead. LE, DI, CO

Meet other likeminded people. OP, LN

Spend time with friends and family. FF

Cuddle. LO, GI, EM

Spend time in the sun. HE, OU

Reach goals. LN, LE, DI, CO, AC, WI

Race cars. SP, WI, CO

Figure stuff out. LN, DI, IN, CO, AC

Fix things. CO, AC, HE

Make money. CO, IN, LE, DI, AC, WI, GI, IN, CL,

Stuff that I have done recently, have not done recently.

Step Two 2 Taking Action.

How little can I live on.

Track expenses Every Day

1177.17 last month Oct 2008
Identify spending habits

I spend too much on cigarettes and my truck. Other than that, I have drastically cut my expenses over the last 6 months since I've started tracking my expenses. I moved in with my parents, eliminated bills for things that I did not need, don't eat out more than twice a week, I drive less by only driving where I need to and not eating out much any more (my gas bill has gone from 670 a month to 100 a month). The biggest thing I noticed by tracking my expenses was that I was spending too much money on things I wanted and did not need. So, now I ask myself everytime before I buy something, "is this something that I need right now." If not, I don't buy it.

What is essential? (if there was a fire, what would I grab?)

Birth cert.

Wallet

Laptop

Phone


I have most all of my stuff in storage in Arizona that I haven't seen since April. When I came to Pittsburgh I drove my truck and brought two bins and two suit cases of cloths, a pillow, my laptop, phone, and some tools. That is all I have been living with, that is mine, for the last 7 months, and to be honest I haven't worn half the cloths that I brought with me. :smx4:
This has helped me even more to practice the "if you don't need it now, don't buy it" rule. I have realized over the last few months that I don't need anything but food, shelter, and cloths... and running water too. All the other things that I have just make things more convenient, like laptop, phone, etc.

Is there another step coming Russ?!

 

[Russ H]

Awsome work, Charmed Angel and Deege.

REP SPEED for you for DOING THE WORK ! ! !

Next steps? I truly haven't had critical mass on the last step (expected it to be a bigger "aha" for those doing the exercises), so I haven't added additional items.

Let me assume that it's my shortcoming for not communicating the last step better.

I'll work on how to do this first, and post.

-Russ H.

 

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[kwerner]

Next steps? I truly haven't had critical mass on the last step (expected it to be a bigger "aha" for those doing the exercises), so I haven't added additional items.

Let me assume that it's my shortcoming for not communicating the last step better.

I'll work on how to do this first, and post.

-Russ H.

I was going to ask you about what the next steps are. I thought you might have just forgotten them; after all it has been over a year since you originated the thread.

Looks like I left everyone hanging on the final part of my plan - inventorying the house and describing why I decided to keep certain items and how they contribute to my happiness. But I guess I was a little fuzzy about the details of what you're looking for on this part.

But I can tell you this much - living "simply" or without having the extra unneccessary items around the house that you just have to pick up / clean / maintain is the way to go.

At least until you can afford a housekeeper to pick up after you and all of your extra "stuff".

 

[LightHouse]

Whew, sorry to bump an old one. Russ i tried to send you a note on this but can not. Anyway, i am a product of my preaching, taking more action and not tracking. IE, when i get the idea i DO it instead of sitting around doing nothing. Typically do not spend on any unnecessaries if i do not have to.

All great and fine right I'm out there doing something making money working towards my goals...... WAIT.... what are my goals? what are my plans to purchase a house etc etc? CRAP....


I have no idea!

Which has lead me back here to the roots of this forum and these threads. I am on the highway with no GPS/directions. I am moving just not sure where. Sometimes that can be a blessing but lets be serious, that blessing can only last until you are in the dark back roads and totally lost!


Lesson learned thus far, While taking action is good, try to figure out where you are going at the same time! If not Start now!!! ahah


Anyway i have condensed the pieces into a work doc that i will go over tonight and DO the exercise. I am going to try to actually make a plan of my life... that way when asked i have an answer and also a direction to base major decisions off of.


Thank you for taking the time to do this Russ!

-Chris W

 

[Russ H]

Chris-

As one of our posters has in her sig:

"Speed is irrelevant if you're going in the wrong direction."

Good to hear you're getting back on track-- looking forward to seeing your exercises!!! :banana:

-Russ H.

 

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[LightHouse]

Chris-

As one of our posters has in her sig:

"Speed is irrelevant if you're going in the wrong direction."

Good to hear you're getting back on track-- looking forward to seeing your exercises!!! :banana:

-Russ H.

yes, i know i am headed in the RIGHT direction.... or is that left?

Anyway, my road ahead is foggy, My new goal is to make goals. We shall see how it is going to turn out. I think this exercise will take me a bit longer than i anticipated. The finance portion should be fairly easy because i do not spend on useless junk. I also signed up for MINT.com almost a year ago (maybe less) and have a year's worth of data purchase by purchase (rarely use cash) So i can see my trending and quickly spot things that seem off.


So thank you again SIR! I will be stopping by the other major planning and goal threads after this is done, one by one.

 

[Russ H]

Lighthouse-

Goals are like speed.

They are irrelevant if they take you down the wrong roads.

DEFINE who you are first.

Then, ;earn how to PURSUE YOUR DREAM.

-Russ H.

 

[callmelucid]

appreciate you making this thread!

Step 1:

a)

• i love bettering myself
• i love trying to think of ways to perfect things
• i love helping people
• i love being spontaneous
• i love being around fun and energetic people
• i love the sense of accomplishment
• i am very competitive
• i am philosophical
• i love to think
• i enjoy the small things in life
• i love to always be doing something

b)
honestly, i love the 80-20 principle and am a poor college student. therefore i basically have my essentials. something i can see me being compulsive with though is food. i tell myself i want unhealthy food but i get it anyway for the utility. i usually get too much too so i end up stuffing myself and not feeling satisfied after. it wastes money/time/and goes against me trying to better myself.

c)
starting businesses
finding myself
travel with friends or family
do something random with the family

d)
havent done in a while
everyday

eating
reading
politics
discussion
going on adventures with friends
traveling
making money
women
listening to music
poker
investing
working out
water raft
ride my bike really fast
road trips
drinking with friends and random people
walking around big cities
playing with animals
understanding a new concept
sleeping


Part Two

bare essentials:
room, shower, food, bed, water, a means of progress, a car, casual clothing, at least one nice suit

cost: around $435/month for my situation

rest coming soon...

thanks again for posting this. i have found it helpful so far

 

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[CardinalsFan]

Core Traits:
-Family
-Health and Fitness
-Happiness
-Good Character
-Active Learning
-Music
-Reading
-People

Things I like to be around:
-different kinds of people
-anything that gets my adrenalin pumping
-anything competitive
-the gym
-my jeep
-the beach and the sun
-outdoors
-music
-parties of any kind
-driving anywhere
-teaching anything
-new things and experiences
-the fam
-people who are better than me at something/can teach me a thing or two


Things I like to do (activities):

-playing and watching any type of sport or competition
-working on the jeeper
-working out and teaching people about health and fitness
-cooking
-going out
-being spontaneous
-traveling
-being with family and friends
-reading
-driving
-anything too crazy for the next person to do
-listening to music
-eating
-chillin
-much more


Goals:

• to live a life worth living, to be excited about every day
• to not have a JOB
• to be financially stable with passive income
• to make time by making a ton of money
• to be loved by the people I love
• to be a valued role model
• to never stop learning

Last Months Expenses:

Brutally honest? I started this on a really bad month…a road trip to vetch and spring break, but here it is anyways.

$391.91-spring break (everything including hotel, gas, food, sunscreen, alcohol, cover charges ect)
$186.99-food and hygiene products
$118.01-gas
$180.51-fast food
$110.76-alcohol and cigs
$57.50-domain names
$50.13-clothing
$26-laundry
$22.02-books

My parents pay my rent most months now and they also cover my insurance. They just started giving me some money for my cell phone so I took that off the list as well.

Total: -1143.83

Last Months Income:
523.66

Net Loss:
-620.17

!!!!Now im freaking out!!!!

but I refigured the numbers and I am no where near that bad on the typical month but I am still spending about $20-60 more than I make each month. What a dumbass…seriously. At least I had saved up for spring break way before I went.

What I would grab in a fire:
Wallet, cell phone, and keys

Inventory:
I have a bunch of crap I don’t need now that I think about it. I’m about to hit up ebay for sure.


Thanks Russ, this really opened my eyes.

 

[Russ H]

You're welcome.

Rep Speed for taking the time and effort to actually DO the exercises-- start on that inventory and separate out all the stuff you don't use-- it will make your life easier-- AND-- you will probably have an "aha" moment about where some unnecessary expenditures have gone!

-Russ H.

 

[kwerner]

Thanks for updating this thread CardinalsFan; I'm hoping Russ will reveal the next phase of the plan soon.

 

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[Russ H]

OK, lots of folks have done the exercises.

And I guess I've been hoping for a few "AHAs!" here--

After you started tracking your expenses, and looking at all the STUFF you owned, what happened?

Any AHAs?

(I know Yves had some, and WildAmbitions).

Anyone else?

-Russ H.

 

[kwerner]

I guess I've been hoping for a few "AHAs!" here--

After you started tracking your expenses, and looking at all the STUFF you owned, what happened?

Any AHAs?

EXPENSES
I discovered:

• Eating out is expensive
• Our food bill is one of our highest monthly expenses - and we don't even go out to eat at (nice) restaurants all that often - mostly just fast food restaurants here and there to pick up something quick
• We need to earn more (passive) income! :smug2:
• Traveling is a worthwhile, but expensive, hobby - however, thanks to Jill's tips at the B&P it may get a lot more affordable
• Being frugal with your expenses helps you have more $ for investments / business ventures / opportunities
• If you're still living in the rat race, your expenses shouldn't increase proportionately with your income, the way most Americans do (they begin earning more, so they start spending more) - this only traps you in the rat race for a longer period of time

STUFF
I discovered:

• We have a lot of crap we don't use anymore (ie. breadmaker, household goods, etc.)
• We own waaay too many clothes (especially my wife - she has dozens of clothes in her closet that she's never worn - still have the price tags on them)
• Every toy made for 1-2 year olds is colored yellow, red, and blue and they have an amazing ability to reproduce themselves in the corner of my basement - I swear they're like rabbits!
• Kids have entirely waaay too many toys
• Buy your kids' toys at garage sales (you can get them for next to nothing) - then, when they outgrow them, you can resell them on Craigslist and make a profit (I know it's silly, but it's funny, and it's true)
• We really don't try to keep up with the Joneses (46" in. LCD TV, stainless steel appliances, new car every 2-3 years, etc.) and because we don't, we have extra money set aside for investments / business ventures / peace of mind (aka "security" fund) / opportunities
• It's amazing how many people that we would consider "poorer" (for lack of a better term) than us HAVE the 46" LCD TV's, $500 video game systems, the newest car, etc.
• In my opinion, "poor" people and "rich" people have completely opposite values when it comes to money - "poor" people want to spend money, "rich" people want to earn money (and preferably as passive income)
• Okay, off my soapbox...

 

[Russ H]

Woot woot!!! :banana: :banana: :banana:

That's more like it-- how about all the other folks who have done the exercises?

-Russ H.

 

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[Russ H]

Buy your kids' toys at garage sales (you can get them for next to nothing) - then, when they outgrow them, you can resell them on Craigslist and make a profit (I know it's silly, but it's funny, and it's true)

Or . . . start a toy library. Get a storage space that you open 3x a week for 3-4 hours, staff it w/volunteers.

You can get TONS of toys from folks whose kids no longer play w/them.

And let's face it-- once a kid plays w/a toy for a few weeks, it loses its appeal. So you just bring it back to the toy library, and take out a different toy!

-Russ H.

(pssst-some longtime girlfriends do the same thing w/their clothes, I've heard ).

 

[kwerner]

You know, you could really be on to something here. I like the way you think Russ. Speed +