Life Experiences Rule

“Focus on making yourself better, not on thinking that you are better.”

― Bohdi Sanders

Our consumer oriented culture has always told us that owning more will make us happy. The big house, a closet full of designer labels, will possessing more make us exponentially happier?  We cannot buy our way there.

There is a rapidly expanding belief that life experiences mean more than possessions.  The happiness found in making purchases fades away like empty calories that leave a need for more,  but experiences; no matter how small, will last forever.

I wanted to see if this was really true.

Last summer I went on a cruise with my sons.  I bought them some t-shirts and shorts for the trip.  When I asked them about these items they could not tell me brand or color. These were purchased just few months ago.Next

I asked them about an amusement park we went to more than three years ago.  Last minute thing as our original plans fell thru.  The smiles came along with the memories. They remembered how good that wood-fired pizza was, the rides, what they liked and what they didn’t.  They even remembered the smallest most insignificant details like the tan line on my collar bone and the bird that took some fries from us.

Ask yourself similar questions, I bet you will get the same answers I did.  Guess the experiences add more value.  Pay for experiences, not for junk.

I am not a financial advisor. I hold no fancy degree and as such this is not financial advice.  This is simply what I have done and recommended my children do when the time comes.

Source: Life Experiences Rule

Where Did My $20 Go?

One night not to long ago I arrived home from work and emptied out my pockets. Keys, wallet, two bucks and change and some pocket lint was all I found.I left with $20 that morning and got home with nothing to show for it.

I decided to find out where my hard earned money was going. This is what I found: A coffee when I arrived in the morning, lunch, another coffee in the afternoon and a snack somewhere along the way.  That was it, there was my money.

No grand scheme, or plan to make millions, I just thought I could save some money here.

 I started by getting three things: an envelope, a travel mug and a food container.  Took a twenty to work every day, but I also took my morning coffee with me and lunch on alternating days.  Nothing extra, just last night’s leftovers.

Whatever cash was in my pocket went into the envelope.  I work a six-day on, three day-off rotation.  After one cycle I had $61.  Not break the bank money, but substantial savings nonetheless.  Approximately $2475 in a year.

That money is going to work for me! In my opinion IRAs are the safest , most effective tool available for retirement savings.  Due diligence here. Some studies report a 10% yearly growth, while others report that due to inflation the growth is “only” 7%.

If were to contribute into an IRA, that $2475 could grow into $107, 940 in twenty years. Not bat  for a total investment of $47,000.  More than doubled my potential investment.  See the calculator for yourself.

To me, all things being equal, frugality is the easiest way to save.

I am not a financial advisor. I hold no fancy degree and as such this is not financial advice.  This is simply what I have done and recommend my children do when the time comes.