What is Your Financial Mindset? Are you FIREd up?

what financial mindset are you, are you fired up, fire, attitude, early retire retirement financial independance

How are you doing?  Are you happy with your trajectory in life?  Are you worn out?  Are you bored?  Are you just going with the flow of life? Or are you on the opposite end?  Stuck overthinking everything.  Treading water.  Unable to effect the positive change you would like to see in your life?  Do you know what you want out of life? What do you actually need?

 

Wow!  That was a lot of questions! However, these are things you actually need to ask yourself every once in a while.  So you should really go through each one.  Get a pen and paper, or even just pull up a notepad.  If you are not doing it already, you should live purposefully.

 

A helpful way to go about it is to identify where you are now and where you want to be.  This diagram can give you an idea of where you at with your financial values.  What is the most important to you? Production? Security? Freedom?

 

 

Money Values Financial Mindsets FIRE Freedom Time Security Reliability Production remote worker independent contractor 9 to 5 job

Values:

Reliability/Security:  Financial security is an overarching theme.  They cannot afford to or do not to wish to take any risks on if they will have money coming in consistently.  They would prefer to know when and where the money is coming from then earn more with a chance of famine.

Time/Freedom: The most difficult to fit into a circle, because they are literally all over the place.  They will work but it generally has to be a thing they would choose to do regardless of pay.  Or, they will work in short stints and quit to do other things. They work to live, not live to work.

Production/Motivation: These people like to see results, be it a fat check or their name on a prestigious paper.   They tend to prefer situations where there is no cap on their growth.

 

So how many values are you actively working for right now? I tend to view it in a tier system, with only one value being worked towards being tier 1 right on up to tier 3.  Are you ready to move up or are you happy with where you are at?

 

 

So What is FIRE?

 
F– Financial I-Independance R-Retire E-Early

 

 

It is where the Venn Diagram of financial values meet:

 

  • You want to have security and know you will have the financial where with all to survive if you lost your ability to work today.  Not an ambiguous time in the future.
  • You want the freedom to do what you want today, While not giving up your future. Be it lounging on a beach or volunteering your time.
  • You value productivity and want to see results sooner rather than later.  You are looking forward to doing your passion project because you surely have several.

 

 

Okay, so it is all well and good to want all those things.  Some of you might say that seems kind of unrealistic, how would one even get there.  It is possible!  People are retiring early all the time, you could be one of them.  You don’t have to wait for the government or an employer to give you basic income to live off of, you can create one yourself.  And it does not have to take most of your life to create, the only limitation is you!

 

 

There are four parts to freedom-
– Earn More
– Need Less
– Use debt, don’t let it use you.
– Invest in yourself.

 

 

If this is a new concept to you or could use some honing in this category check out you should read this related article: Are you tired of worrying about money?

 

 

 

Wanna get there?

 

Habits of successful people who have reached or are working towards FIRE.

 

  • They absorb as much information as they can. (networking, books, podcasts, blogs)
  • They celebrate different milestones.  They view old inexpensive cars, or better yet no car as a sign that someone is successful instead of that shiny new car fresh off the lot.
  • They know that experiences are more valuable than things.
  • They believe in working hard today for a better tomorrow, and that it is a mission that never ends.
  • They take action.  They know things will never be perfect but do it anyways.
  • They surround themselves with other like-minded people and know that this can be the difference between the wind under your wings and a pair of concrete boots.

 

Are you FIREd up?  What are you working on right now?  Did I miss anything?

 

How to be Smart: When Everyone Wants Your Money!

road-sign-464653_960_720Now while some of us are not very aware of our inner caveman, advertisers and con men hone in on that instinct-driven part of your brain every day.  They know what conditions allow for you to make impulse decisions.  The first thing you need to understand is they want you being irresponsible. They want you to be in a state that will allow for you to make a decision right now, because they will likely lose you otherwise.

 

I believe that the majority of people are good.   However, separation from the consequences of your actions through the internet, people just doing their jobs for corrupt companies, and the fact that the bad guys tend to use the shotgun method when scamming people has made trickery an epidemic in our world.  We have to be careful out there! If you get a bad feeling in your gut about something, don’t do it!  If it involves your finances, talk to someone you trust about it first.
It is also important that you use a good anti-virus software that alerts you to suspicious pages and links.  I use Malwarebytes.  They have a free version which is great.

 


    1.  Scarcity: This deal is selling out now!!! 100 people are viewing this now! Only 5 left!  You will never see this price again! So very rare is it in this day of surplus that there is a limited amount of something.  The truth is that in our consumer driven culture you can usually find the same thing or an equivalent for an equal or cheaper price elsewhere.  They don’t have to put popular concert tickets on Sale for them to sell out.  Pay attention to what the prices of the item on sale are, because the item will be on sale again, or even permanently that way, keep track of things you are interested in.  Don’t buy things on an impulse, wait, 24 hours minimum, or do a quick internet search for similar services, and if you still think it is a good idea, buy it then. 

 

    1. Energy Saving: Get a free Gift card when you do X, Doorbusters! These have a broad range of how bad or good they are.  They range from we will sell your information, sign you up for several services, and it will still be nearly impossible to get that free item; to loss leaders where they give you something for free or cheap to get you in the door to make other purchases.  Be very wary of these when you do not see them through a reputable business, if you do decide to do them be ready for a high-pressure sale and at the very least to be tempted by other items.  There is a reason they are giving something away; they are getting more out of it.
    2. Interest Piquing: Something has happened to your credit card, You’ve been chosen for a free cruise, I’m going to talk for 10 minutes to get you invested without ever telling you what the title was about, Outlandish Headline: You Won’t Believe who died!  These range from benign trying to get your click on their link so they can get you to look at their stuff to very malicious information phishing to steal your identity.  If you get an email that seems questionable or unexpected, make sure to check the email address to see if it looks suspicious.  Do not click on any suspicious links!  Go directly to the website and check it that way.  (Malwarebytes helps with these.) For National Inquirer Style headlines, just go to google and search it rather than clicking the link to find out if it is just click bait.  For an unexpected phone call do not give them any information about yourself, ask them to identify the company they work for, their names, and why they are calling you.  Remember you can always call the institution directly if it seems suspicious.  

 

  1. Intimidation: High-Pressure Sales, Extortion! These are hard to know about unless you receive a warning from somewhere else.  If you are going to go into a sales environment, check reviews of the establishment.  If you are going to a new city, do some searches on the internet about what scams are prevalent in the area.  These are more common than you would think, especially in tourist areas.
  2. Predatory: Predatory scams take advantage of an individual’s weakness.  Predatory programs for the poor such as payday loans, auto title loans, or any high-interest loans for quick cash, they take advantage of their desperation.  For the elderly or other commonly isolated parties, a common scam is getting emotionally involved with the person for the purposes of leeching money.  Predatory scams often prey on people who are trusting or naive, if it involves you wiring money to someone, especially someone in another country, steer clear!