Posts Tagged ‘financial independence’

CAMP ACCOUNTANT HAS ARRIVED!!!

Note: Camp Accountant is postponed for now. The original planned weekend is two weeks after FinCon and the same weekend as the tax extension due date. A large number of accountants wanted to attend, but couldn’t due to the due date. There were also several complaints the event wasn’t in Wisconsin. Colorado is an awesome place, but a lot of bloggers promote Colorado; it was felt I should promote Wisconsin. We can satisfy all these issues by having Camp Accountant in West Bend, Wisconsin at the Cedar Valley Center & Spa the week following the Novel-in-Progress Bookcamp, a program I’ve been involved with in the past. Sorry for the inconvenience.

 

The Event you have been waiting for your entire life had finally arrived! Camp Accountant is Here!

I don’t know about you, but I’m tingly all over. Camp Accountant is different from any camp you’ve attended in the FI community. All proceeds go to support the local Boys and Girls Club. In fact, all the registration money is collected by the Club. They pay for the cost of running the camp and put the rest to work serving the community. Everybody wins! Many of the venues are provided at low or no cost so more money ends up helping the Boys and Girls Club.

The first ever Camp Accountant is limited by the size of the venue so register early (details and links at the end of the post for registration and accommodations). First I need to share details. Read to the end for a special surprise!

Karen (she can share her full name if she wants) put this thing together. That means she did all the work. Please acknowledge her efforts. These things take time and cause stress so I am tremendously grateful for Karen’s efforts.

Karen and I have communicated during the planning process. She put together an information sheet so I’m going to cut and paste her words because she said it first and better:

 

Location – Salida Colorado — main location 419 D Street

 

Cost – $400 per person.

Participants – 30 people.

 

What this is all about –

 

Have a great time meeting like-minded folks, bike and hike around the Rocky Mountains in Colorado; learn cool stuff about accounting and how it supports our road to Financial Independence.

 

Keith from the Wealthy Accountant is hosting this event.

 

Lodging is not included in the event – it takes place in downtown Salida, Colorado.  Lots of camping and lodging nearby, all info provided upon registration. All lunches and most dinners are included in the cost of the ticket.

 

The camp will be a fundraiser for the Boys and Girls Club of Chaffee County. This amazing program supports youth in a rural county in Colorado.

 

A bonus of supporting the Club is that Colorado residents attending the camp will receive a donation letter for $200 that will equal a $100 credit on their Colorado state taxes.

 

Boys and Girls Club

 

Salida, Colorado is a very economically diverse community. As a small town of 5,000 people, there is no other after school programs for working parents that are affordable, and no other enrichment programs for families of limited means.

 

This program supports our local youth in many ways. Kids are with staff for homework help. They join structured programs to follow interests as diverse as sewing to robotics, and have a chance to be physically active instead of home alone in front of a screen.

 

The Club needs its own building to guarantee its future, instead of renting space and moving every few years. The opportunity to get word out about supporting the Club through the Wealthy Accountant blog could help us get a building so that the youth served by this program will have a permanent home.

 

Link to the Club website – http://www.bgcchaffee.org/

If you want to donate – http://www.bgcchaffee.org/Donate (click green button to donate online)





This is what the FI community is all about. We share ideas to improve our own lives and pay it forward so the upcoming generation can enjoy the same.

Here are answers Karen provided to important questions:

 

FAQ’s

 

Can I come just for the day?

 

The space will only hold so many comfortably, so we will only have tickets for the whole event.

 

Where should I stay?

 

There is camping, Airbnb lodging, and a couple of B&B’s all near the site. Details of lodging and transportation will be sent upon registration. Most locations for lodging downtown are within walking distance of under a mile.

 

Is registration refundable?

 

No, but we will try to find a way to transfer tickets to people on a waitlist.

 

Who is hosting this event?

 

Keith from the Wealthy Account Blog is hosting the event.

Snap Pea (Karen), a longtime reader of the blogs and OG of the FIRE world, is helping coordinate all the logistics, and is crazy excited for the fundraiser for her local charity.

 

For profit event?

 

No. Information on the club is linked above.

 

Could I or Should I bring my rugrats?

 

While there is a lot to do in the area, the setup isn’t good for kids running around if the weather is bad. They would have more fun with a non-attending person around. If you do want to have kids and/or partners join for meals, please email for availability and rates to cover food costs.





If you have any additional question use the contact button on this blog. I’ll do my best to calm Karen down, ah, work with Karen to get you an answer.

Here is the planned itinerary.

 

Tentative Event Schedule

 

Thursday, October 11

 

5 PM

 

Intro: evening at the Salida Hostel.  Beer, wine and appetizers (enough for dinner) provided.

 

Friday October 12

 

9 AM: meet at 419 D Street for a bicycle ride or hike around the Salida area. There are mountain bike trails, road bike routes along low traffic county roads, and hiking trails all nearby.

This activity is dependent on weather – coffee and conversation at the site is the alternate plan.

 

Noon: Lunch at HQ

 

Intro talk by Keith, Q and A’s, etc. (I promise not to upset stomachs.)

 

4 or 5 PM: beer at the site or nearby park, happy hour, dinner on own downtown Salida.

 

Saturday, October 13

 

8:30 AM: Yoga with a volunteer leader – for those so inclined.

 

9:30 am: Event – talks, Q and A, discussion topics, power presentations, breakout discussions

 

Noon: lunch at site

 

1 PM: Event – talks, Q and A, discussion topics, power presentations, breakout discussions

 

5 PM: happy hour and BBQ. Volunteers from Chaffee Boys and Girls Club will be helping with the BBQ.

 

Sunday, October 14

 

10 AM: coffee and conversation, possible 5 min power talks, hanging out.

 

Noon: sandwiches and leftovers for lunch, organized event ends.

 

1 PM: Mountain bike rides and trip to local Hot Springs for those inclined. Car-pool organized by participants.

 

Afterparty –

 

The after-party will continue in Salida, Colorado –

 

Stay longer and come check out our volunteer coordinator’s business – www.salidainnandhostel.com The Inn is set up as a friendly and social place to continue the fun after the Camp.

Salida is near several hot springs, hiking and biking trails and just a cool little town.





I’m happy to do all the talking, but for this to work best we need participation from others. Taxes are always a hot topic, especially with the new tax law in effect. I’ll answer questions personally as well.

We also need volunteers to give short presentations. Topics should be of interest to the FI community. Those active in real estate should consider a short presentation on the real estate market, RE values around the country and rent rates. Frugal living and early retirement are always of interest. And don’t be afraid to step forward and share some travel tips. Just because a certain unnamed accountant prefers to avoid travel doesn’t mean other wealthy accountants feel the same way. (For the record your leader is a slightly nuts!)

Here is additional important information before I provide the registration links:

 

Lodging–

 

We recommend staying in the downtown area. Salida Inn and Hostel www.thesalidahostel.com the Palace Hotel https://www.salidapalacehotel.com/ and the Simple Lodge https://www.simplelodge.com/  are all within walking distance.  We also recommend Airbnb as many locations are within walking distance.

 

Camping/RVs – There is a lot of free camping just outside city limits on public land. There is also a nice private campground just on the outside of town, as well as a public pay campground called Salida East.

 

Transportation to Event

 

There is one bus a day to Salida — it leaves in the afternoon from downtown Denver, to get there from the airport you take light rail. It works best if your flight arrives quite a while before the bus leaves.

http://expressarrow.com/

 

Renting a car is highly recommended unless your flights really work out for the bus.

 

The Colorado Springs and Gunnison airports are much closer — you would need to rent a car from them.

 

I come from a small town so I’m excited about our venue. The boondocks are my home and anytime my tail is planted in the outback I’m a happy camper.

This is going to be such an incredible event. Registration is on Eventbright.

 

Register Here!

 

Now for the surprise! I’m donating all my time and all my travel and lodging expenses are coming out of my pocket so the Club gets more of the proceeds. Airfare between the Accountant farmstead and Denver is really, really cheap; like $100 or $150 per person. Buuuut, Mrs. Accountant and I are driving so we can spend more time checking out the sights along the way. And since I’m driving there is a strong possibility a case (or ten) of the world famous Spotted Cow beer only available in Wisconsin will be smuggled in the truck of a wayward accountant willing to share.

I’d say the first beer is on me, but we all know it’ll be more than one.

See you at Camp, kind readers. There will be loads of powerful information for you and a future for the kids. And that is what life is all about.



Create Your Own Basic Income

The universal basic income doesn’t solve all inequality problems. It might even make the problem worse.

I don’t know who first came up with the idea of a universal basic income. My earliest exposure to the concept was from Sinclair Lewis’ 1935 novel It can’t Happen Here. There is no doubt the idea was around much longer.

It’s an age old story. Mechanization and technology will destroy all the jobs. Computers and machines will do everything so people will be left with nothing to do but wander around the cities and countryside with dazed stares.

The solution is to provide a basic income to everyone so income inequality is reduced. The cause is noble; the solution fraught with problems. If you have freedom, you have inequality; if you have equality, you have no freedom. The real question is: how much inequality will society tolerate?

In the United States we have a modest solution in our tax code called the Earned Income Credit. People with a low income qualify for a refundable credit to compensate for their poverty level earning. It also happens to be the area of the tax return with the most fraud.

Around the world experiments with a universal basic income are in the planning stages, ready for implementation on an experimental scale or recently concluded, as we saw in Finland.

What is certain is that more people than ever are ready to try a universal basic income. The Finland experiment was concluded early without plans for a wider roll-out. I take this to mean the results were less than hoped for. If anything, it probably exacerbated inequality problems as it encouraged more people to work less.

This isn’t a debate about the merits of a universal income. The video below is one of many discussions on the issues. I don’t agree with all the comments in the video, but they do provide ample starter fuel for an argument discussion. We will focus our attention on something more important today: creating your own personal basic income.




Back to Basics

At times I will sound like a rabid liberal when discussing universal basic income and an unrepentant conservative at other times. I am neither. Rather, the issues are complex and it is nearly impossible to stand firmly on one side of the aisle at all times.

The FIRE (financial independence, early retirement) community is a perfect example. These people (most people if we are honest) look forward to the day when they can either retire or live a semi-retired lifestyle. There is nothing wrong with such an attitude. I even argue it’s a healthy one. A universal basic income will only make it easier for people to achieve their magical goal. An extra thousand dollars a month can do wonders for those determined to build a nest egg large enough to retire early.

Unfortunately, it also encourages disengagement. If a basic income doesn’t work as planned in a place like Finland (where many feel it was a failed experiment) then it is unlikely to work anywhere at all. Higher taxes to pay people not to work will not bring the best out of a society. Social safety nets are necessary for a moral society, but there is a difference between feeding hungry people and providing unemployment benefits and giving everyone a handout.

All that said I still love the idea of a basic income. Notice I didn’t say “universal”. Don’t take this to mean I think people should be left out. Quite the contrary. Anyone who really “wants” a basic income should be allowed to have one! And I’m going to show you exactly how you can get your very own basic income.




Perception

In its broadest terms a universal basic income provides everyone in the community with a minimal amount of money every month just for being above ground. The cost is prohibitive, but if machines do all the work due to increases in technology and automation, there is nothing left for people to do to earn the money needed to buy the stuff automation is producing. The idea is to tax the crap out of the automation processes and spread it around.

Since this story has been around in one form or another since mankind decided to move from manpower to draft animals, we have plenty of reference points to learn from. The most import thing learned is that people over blow the consequences. In 2008 the world was coming to an end and now we are at full employment and then some. The next economic slowdown will bring the basic income idea front and center again. Don’t fall for it.

But if you are anything like me you wouldn’t mind a juicy check showing up every month like clockwork as a base line to the household budget. The universal basic income is always some modest payment sure to bankrupt the government while providing modest improvements (if any) to families. What I propose is far more draconian. Rather than few hundred or a thousand dollar per month, I suggest something a bit north of there.

A universal basic income is small thinking. It doesn’t do enough to really solve the problem. But if $3,000 or more shows up each month early retirement is in the cards! So how do we get the government, anyone, to send us $3,000 or more each month?




A Multitude of Basic Incomes

The small thinking mindset requires the government to tax and redistribute massive amounts of money. Worst of all, the beneficiaries of the basic income are reliant on one source for their bonus. This is just plain stupid.

What you need is multiple sources of basic income flowing into your bank account on a regular basis. The source of your basic income should also be more secure than the next vote in Congress!

Here is the secret. The wealthier you are the more likely you are to be receiving the multiple payments of basic income. In fact, the total of all these streams of income aren’t so small. Now I, as a wealthy accountant, will share the secret to the crowds. If you read my body has been found in a ditch somewhere you’ll know the bourgeoisie got to me. Too bad the word will already be out.

By now I’m certain you figured out what I’m talking about. Multiple streams of income are the hallmark of wealthy people. There is nothing preventing you from engaging in the same activity regardless your economic status. A lower income means you start slower, but you can still start.




Sources of Basic Income

Sources of basic income are everywhere. Index funds provide an income stream in the form of dividends. A side hustle can line the household budget nicely.

Passive income is where it is really at. Dividends and interest are nice. Rental income can be much larger than dividend income with a smaller investment. Income property can provide a steady passive income stream without hardly any net worth! (I recommend you pay down the mortgages as fast as possible for a margin of safety.) The trick is buying the right properties.

Free money! Woo-hoo!

I’ve provided plenty of ideas in this blog for generating additional income. A side hustle as a forensic accountant is a fun part-time job that pays like a full-time job. Selling tradelines on the side is another way to feather your personal basic income program. No tax increases required. Here is one last link to an article on a dozen high income part-time seasonal jobs.

The ways to produce passive income is nearly endless. You should always maximize retirement plans for maximum tax benefits. Even in a nonqualified index fund dividends and capital gains are taxed at a lower rate than ordinary income. Income properties generally have higher cash flow than reportable profits on a tax return.

The universal basic income is a grand idea whose time will never come. When machines and automation destroy jobs, new opportunities arise. People in the vinyl record business lost their job in the 1980s. More jobs were created than lost in the CD business. Digital is doing the same today. Yes, the horse industry died when the automobile showed up, but the automotive industry is the largest employer in the U.S. today. And it’s not just the manufacturers. Repair shops, gas stations and the oil industry have more than made up for the lost jobs raising, training and feeding horses.

Technology and automation increases efficiency which means we have a better quality of life and standard of living. This is a good thing and not to be feared! I know it seems scary out there, but remember all the Chicken Littles frantic the sky is falling. The sky is fine. And brighter than ever, I might add.

Social safety nets are the moral thing for a society to provide. A constant struggle for the “right” amount of safety net will drag on until the end of time. What you need to understand is a basic income is yours to have. You decide the amount.

Your personal basic income will start small with one rent check, one dividend payment, one tradeline sale. Reinvesting your great fortune only grows your basic income larger each month. Soon, you can have a basic income greater than your financial needs. Then you can step back and let the next person enjoy your old job while you live on the multiple streams of income. In the new basic income world, fewer people will need a traditional job. But you will still provide value to society without working yourself to death.



Wealth Building Resources

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

PeerSteet is an alternative way to invest in the real estate market without the hassle of management. Investing in mortgages has never been easier. 7-12% historical APRs. Here is my review of PeerStreet.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. Quickbooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

A cost segregation study can save $100,000 for income property owners. Here is my review of how cost segregations studies work and how to get one yourself.

Amazon is a good way to control costs by comparison shopping. The cost of a product includes travel to the store. When you start a shopping trip to Amazon here it also supports this blog. Thank you.

Financial Independence is Getting Easier Every Year

Build the life you want. Control money rather than having money control you. #goals #financialgoals Early retirement. #success #wealthIt’s hard to see when watching at the speed of life, but there is no doubt it keeps getting easier to reach financial independence. Some in the crowd might disagree with me. The statistics are clear, however. As the hand of time ticks by the human race is finding greater and greater opportunity at every turn until now when it is laughably easy to reach virtually any financial goal.

But we need to start at the beginning.

In the Beginning

Depending on whom you ask, humans (Homo sapiens) have been around for around 300,000 years. For most of this time we were limited in our conversion of energy into useful tasks. Men, women and children all contributed to their subsistence lifestyle.

Because energy input determines so much of quality of life (as will soon become clear) we need to use a consistent measure of power. Energy is best describes in joules and power by watts (W). This allows a better understanding of inputs by humans over time.

A human can sustain around 100 W of labor. From the beginning when modern humans started its own branch of the family tree until the third millennium BCE, the most power mankind could muster was limited by the backs of the very same people. It took several hundred thousand years before mankind figured out a way to utilize more than the limited 100 W of power available from an average adult male.

Sometime during the third millennium BCE people learned to harness draft animals and their sustained 300 – 400 W of sustained labor. Not satisfied with the several fold increase, humans experimented with different ways of harnessing draft animals and even breed animals for greater labor.

Over thousands of years the maximum prime movers (draft animals in this instance) slowly increased until around 1000 of the Common Era when horizontal waterwheels came into wider use, providing up to 5,000 W of power. (The waterwheel was employed earlier, but not widely or in a modern sense.)

What took over a hundred thousand years to move from 100 W of manpower to draft animals and their approximate 350 W of power only took four millennium to reach the technology of the waterwheel. As slow as it moved it was still an improvement. Progress was slow because people needed to expend all their resources to survive. Draft animals allowed more land to be tilled which meant more people could be fed and better.

By 1800 steam engines surpassed 100,000 W (100 KW) of power. The late 19th Century brought water turbines, driving the maximum power of one unit to as much as 10 megawatts (MW).

The pace of energy use expanded rapidly. Life was still harsh for many people, but the goods and services available grew as more prime movers grew more and more powerful. Subsistence living was declining. Life was still hard, yet more people than ever had a better diet. Also, more people than ever before were able to live an upper class lifestyle. As power use increased due to technological advancement, fewer people had to work to cover the basics of living for the entire community.

The rate of increase accelerated until 1960 when the largest steam turbine reached 1 GW of power.




Modern World

The more technology increased the power of a single prime mover, progress advanced in efficiency.  The first draft animals could replace three or four men max. By the 19th Century better harnesses and certain horse breeds could do the work seven or more men.

Waterwheels increased in size and efficiency until steam turbines were invented, catapulting the power available in one unit (prime mover) to unheard of levels.

Start living your dreams today. Financial independence is easy if you follow a few simple rules. #easystreet #personalfinance #financialindependence #FIRE #earlyretirementThermodynamics places a limit on the maximum power that can be extracted per unit of coal or other energy source. Steam turbines also have theoretical maximums. The first steam engines were extremely inefficient. Advances in efficiency were slow at first, increasing faster until the gap between best performance and the maxima narrowed.

The first steam driven machines operated at less than 1% efficiency to over 40% today! While 40% seems like there is lot of efficiency left to wring out, there is only modest possible improvements available.

Home heating has come even further. Heating a hut with grass or dung has serious disadvantages. Wood was a major improvement once tools were invented to cut trees versus the limited supply of branches available on the ground. Early gas furnaces enjoyed 40% or less efficiency; today homes have gas furnaces up to 97% efficient.

Lighting has an even greater efficiency improvement. Candles convert between 0.01% to as much as 0.04% into light. Edison’s first light bulbs were 0.02% efficient. The first fluorescent bulbs in 1939 were 7% efficient. In the year 2000 a lumen of light in Britain cost 0.01% of what it did in 1500 and 1% of what it did in 1900 (see reference at the end of this post).




The Ease of Wealth

We will now switch from the historical use of power to how the above information yields increased ease in acquiring financial independence.

It seems like wages have been stagnant forever while prices continue to climb. The data tells a different story.

Overall Adjusted Average Salaries, Five Year Increments

Adjusted for inflation, wages have been flat for at least 50 years (see chart)! Before anyone become alarmed, know that wages are what drive inflation. When wages increase it eventually is reflected in the prices of goods and services, kind of.

Natural gas and gasoline prices have been steady to lower over long periods of time, adjusted for inflation (see charts). Natural gas has been up and down, but is basically unchanged since the mid-1990s even before considering inflation or the unadjusted growth in wages. All this while vehicles are larger than ever with more gizmos and home gas furnaces are the most efficient than they’ve ever been.

Historical gasoline prices in today’s dollars.

Inflation causes the most angst. In 1913, when statistics were first kept in the U.S., the CPI-U started at 9.8. The latest CPI-U (April 2018) stood at 250.546. What cost a dime is now 25 times more expensive. The average worker earned around $300 per year in 1910! (A competent accountant could earn $2,000! I would like to think I’m competent so, adjusted for inflation, I should make around $50,000. Looks like this competent accountant is doing a bit better than expected. Bet you are too.) In 1918, after the inflation of WWI, the average household earned $1,518, which is, adjusting for inflation, less than the average household income today.

Inflation is real and affecting household budgets. But while prices are increasing, wages are oscillating around the baseline, adjusted for inflation. At first glance we might be depressed to learn we’ve made no progress. However, wages and inflation only tell part of the story.

A hundred years ago many homes lacked indoor plumbing. We’ve rectified that problem since. Electric appliances have been added to the daily luxuries of life. Over the last 30 or so years we have added computers, internet and smart phones to our list of luxuries. You’re probably reading this on a smart phone.

Natural gas prices haven’t moved at all while wages and efficiency have continued to climb.

Increased efficiencies are where most of our increase in living standard comes from. Wages mimic prices as efficiency keeps rolling along. Energy costs have gone nowhere fast over the last century. But what we do with that energy has changed radically. Heating our home takes less than half the natural gas of 50 years ago. Of course, our homes are twice as big so we’re still broke. The electricity needed to light our homes has decreased to such a level that it is an insignificant part of our budget.




Money for Nothing: FI for Free

Frugal today is nowhere near what frugal was a century ago! What we consider austerity would get us laughed back into our time machine if we had such a machine to transport us back in time. Most households spend less than 10% of household income feeding the family. There was a time not that long ago when 50% or more of the budget went to feeding hungry mouths. Back then the house didn’t glow at night the way our cities do today.

As technology allows us to utilize energy resources like never before, we have a lifestyle never before enjoyed by any species in history. And it gets easier to reach financial goals!

Once upon a time all but a few worked till the day they died. A select few, very few, enjoyed a life of luxury supported by the backs of the masses. Then draft animals were put to work, allowing for a larger population and a better diet. Later coal, oil and gas powered the turbines of industry and heated our homes. More work horses (steam turbines, et cetera) meant we could delegate the most back-breaking labor to machines. We went from nearly 100% of the population working in the fields to under 2%. The freed labor did other things. Many spent more time in educational pursuits; some did nothing at all, choosing to live longer with mom and dad.

Some lived frugally for a few years and retired early.

In the U.S. 49% of the population works a traditional job. That percent has probably crept up in the last year so we might be over 50% as of this writing. Young children and the old are understandably unemployed. Still, of working age adults, we are near the multi-decade low labor participation rate. What gives!

The answer is rather simple. Our use of energy resources continues to become more efficient while wages remain stable and prices are moving in tandem with wages over time. Productivity slowly grinds higher. After centuries of progress, the cumulative gains have made it possible for large numbers of society to pursue other interests. Food is plentiful thanks efficient use of energy. Even with half the population not engaged in traditional employment, we still have abundant food, shelter and clothing.

Financial independence keeps getting easier and the trend will remain intact! There is no excuse to not have financial wealth. None. We are so rich today with abundant resources and technology we can throw away massive amounts of money on interest to support debt. This is unheard of in history. Debt was always considered bad, if not an outright sin. Governments had debt, but regular people who knew better followed the adage: neither a lender nor borrower be.

Mass media has brainwashed us into thinking things are hard. The 2008 financial crisis was not that bad compared to reality of 100 years ago. The Great Depression was bad. The Irish potato famine was bad! When was the last time you heard of a famine in a developed country? It’s been a long time and for good reason. The only reason less developed countries starve is because they have not implemented the prime movers the way developed countries have. Once you use the energy resources efficiently you can move food from any part of the planet to wherever a drought or blight is affecting crops.

We live in an age of abundance like never before. We need to start acting like it. We need to feel grateful for our largess. It’s easier than ever to save a massive percentage of our income and invest it safely into index funds. You can retire early with plenty of financial wealth because you live in the most awesome time in history. All thanks to the never ending increase in energy utilization and increasing efficiency of its use.

Reference

Smil, Vaclav 2017. Energy and Civilization: A History: Cambridge, MA: The MIT Press (Pages 397 – 407 were used in the writing of this post.)

 



Wealth Building Resources

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

PeerSteet is an alternative way to invest in the real estate market without the hassle of management. Investing in mortgages has never been easier. 7-12% historical APRs. Here is my review of PeerStreet.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. Quickbooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

A cost segregation study can save $100,000 for income property owners. Here is my review of how cost segregations studies work and how to get one yourself.

Amazon is a good way to control costs by comparison shopping. The cost of a product includes travel to the store. When you start a shopping trip to Amazon here it also supports this blog. Thank you.

A Free College Education Made Easy

It is possible to get a college education without loads of debt. Learning scholarship application tricks that work is a key ingredient.

The last time it snowed more in NE Wisconsin was March of 1888. That’s a long time ago.

My oldest daughter, Heather, was home from college when the storm hit. It was so bad they closed the college so she stayed with us an extra day. Our family bonding time consisted of shoveling wet, heavy snow a good part of the day. Such is the way of things in the Northwoods.

April snowstorms melt fast. The days are long and the sun is high in the sky. Cold temperatures fight a losing battle.

But when record snow falls it takes time to clean the roads and melt the piles. We should have the last of the piles melted by May 1st.

Heather’s car had to stay outside because the garage is full. With modest coaxing I got the AGCO tractor started and started moving most of the snow out of the way. Heather’s car was the last thing we dug out.

The next day the roads were plowed and it was time to head back to college. On the way back her car died for no apparent reason. The car was towed to a shop south of Neenah for repairs. The bill came to nearly $500, a princely sum for a college student.

As bad as Heather’s luck was, it could have been a lot worse. She saved and invested for several years before committing to college full-time. Still, she is determined to finish college without a penny of debt. (So far, so good.)

But that isn’t the reason why car problems were nothing more than a hiccup along her college journey. And her story can help countless others attain a college degree without cost.




Slow Start

Heather had grand ideas when she reached adulthood. She wanted to attend Full Sail University in Florida on dad’s dime for an art degree. I’ll save you the damage to your eardrums and refrain from my response.

At the time Heather was selling artwork and stashing it away into investments. She is quite good at a variety of art forms. What she struggled with was scholarships and dad wasn’t in the cooperating mood.

Then she got the idea she would go to college (art again) in Thailand. She got her passport (more on that later) and sent the school $500. The short story is she never went to Thailand. She did get one heck of an education for the lost $500 and the cost of a passport. Truth is she wasn’t ready to be alone in a foreign country. Yet.

Then she looked into a school in Missouri that was affordable, but it wasn’t what she wanted. Then she toyed with Japan and more seriously with South Korea. The only place she didn’t want to go to school was some of our affordable options right here in Wisconsin.




Seeing the Light

Dad made it clear he wasn’t paying for any college costs unless Heather found some scholarship money. It wasn’t that Heather didn’t try. She applied to a hundred or more scholarships without a nibble.

The first turning point came when Heather decided the local technical college was an okay place to start her formal education. She busted her tail working to fund her education so dad relented and provided a modest—around $2,500—of financial support. When my kid puts in the effort I’ll do my best to help them.

Choosing a local college and a career she could reasonably expect to earn enough at to calculate a return on her education investment gave dad hope. Heather likes to travel the way I like to nest on the farm. Heather wants to see Asia. She is in love with the cultures and peoples. The only thing missing was some scholarship money to grease the process.

Now that she was going to college close to home she was able to get some small grants and scholarships. Most of it was state or local government provided. Wisconsin chipped in $300 and the Department of Vocational Rehabilitation (DVR) invested around $1,000. (DVR provided support because she has her own tutoring business and she has some medical issues.)

Proud parents posing with their daughter.

Still, scholarship successes were scarce. I read a book by Ramit Sethi (I Will Teach You to be Rich) years before where the author claimed he had so much scholarship money when he attended college he was able to save and invest some of the funds since they weren’t all needed for college expenses. I was concerned Heather was unable to apply the same procedures to her college funding.

Sethi was slamming one scholarship after another while Heather couldn’t get them to open the envelope. Something was wrong. When something isn’t working it doesn’t mean you double your efforts doing the same thing. You just go nowhere twice as fast!

Dad had no solutions. College was a different animal back in the early 1980s. I had my own home (didn’t live on campus) and paid my own way. Scholarships weren’t necessary because $1,000 would cover a semester easily, including books, with a meaningful remainder left over for social activities.

Heather is like her dad: knuckle-headed. She wanted to go to college so bad it hurt and she wasn’t going to be denied. Mom and dad are supportive, but we will not give a free ride. Eighty percent of a college education is getting there. If you want to make it in the business world you better be able to figure out how to get an education without visiting bankruptcy court.

Money was tight her first year. She wanted college to be self funding; no dipping into long-term savings either. She studied hard and has a 4.0. And she never stopped researching scholarships and other college funding opportunities. She also clung to her dream of teaching English as a second language in China.

As Heather approached the first year as a full-time student (she was taking a class or two prior) opportunities she never knew existed were exposed to her. Since she has a tutoring business several organizations were interested in helping her. Her college started a Fox Trap Pitch Contest. (We live in an area called the Fox River Valley and the Fox Cities.)

Heather tackled this contest the way she did everything in school, with unrelenting effort. First prize was $1,000. Want to guess who won first place. Yup! My daughter! All I can say is, “Good genetics. Especially from the paternal side.”

The pitch contest did more than help her promote her business and raise capital. It taught her how to pitch an idea, like maybe to a scholarship. And this is where it gets interesting. In the last few months she finally figured out how to pitch her business and submit to scholarships in a way that works.




Unlimited Opportunities

You can’t imagine how proud I am of my oldest daughter. She never quit no matter how down she got or depressing it was to work without results. (My youngest shares the same attributes so I’m proud of her, too.)

The best part is she knows how to do it herself. If dad wrote a check Heather would still be clueless on a good many things. I would have robbed her of the most valuable part of her education!

Remember how I said Heather wants to go to China to teach English as a second language? Well, her degree is for teaching. She is also leaving in a few weeks for China to teach for a month. She has been contacted for job interviews when she gets there. When her month is done it is back to Wisconsin to finish another school year. She will probably tutor via internet during the school year and head back to China for a much longer stay after she graduates. Her passport was a worthwhile expense after all. BTW, China instantly gave her a 10 year work visa.

China and the United States are two very different cultures. But as Warren Buffett has said all along, the United States has the “secret sauce”. In the last week he added China to the list saying China also found the “secret sauce” economically. With two great nations and cultures, with a heaping bowl of sauce bridged by my daughter and her efforts, the human race is destined for glory never seen before. (Yes, dad’s pride is swelling.)




Grabbing the Chance

Things were different when I went to school. Higher education is expensive today. Student loans are out of control. School counselors want to help students manage loans. Heather was quick to interrupt when the topic came up to explain she wasn’t interested in loan. God, that kid is smart. Mom had to have done something right because I’m not that gifted.

Scholarships are everywhere. Large numbers of scholarships go unawarded due to lack of interest or quality entries.

Heather was recently elected vice president of the Wisconsin region of Phi Theta Kappa. She gets to do more of that traveling she loves now and is guaranteed another scholarship. This one could be meaningful, if you know what I mean.

As a side note, Heather tried to convince me Phi Theta Kappa means “the smart ones” in Greek. Dad was suspicious and looked it up. Good one, Heather. And yes, I know you’ll be reading this. BTW, it means “wisdom, aspiration, purity.”




A Scholarship for Every Wealthy Accountant Reader

Some things I can’t do no matter how important they are. I’m not in the trenches when it comes to college funding.

Heather is getting an education on how to get an education. Therefore, I asked her to write a follow-up article to this post which she promised me in a week. If all goes according to plan I will publish Heather’s post next week on how she discovered how to write killer scholarship applications that work.

I think she will also include other resources she has used. For example, her college has a service called SALT. The SALT program has a massive clearinghouse of scholarships where the college helps you submit a quality application. And it’s FREE! Just be careful when they try to help you with getting student loans. Student loans are the last line of defense when all other options are exhausted. When you stand firm expecting scholarships to pay for your education, the counselors have to up their game to help you. Make it clear you want scholarships, not debt!

My opinion on college has been published before. Education is the most important thing you can do to improve your life. Most education happens outside the classroom! That doesn’t take anything away from a formal education. College is about learning and making contacts.

Next week, if all goes well, you will make a powerful contact with Heather.

Finally, remember Heather’s $500 car repair bill? She discovered there is a program at the college where they will help pay one major expense per year, in Heather case, up to $500. She kept her eyes open for opportunities removing a car repair bill from the budget.

Smart, girl, don’t you think?



Wealth Building Resources

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to skyrocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

PeerSteet is an alternative way to invest in the real estate market without the hassle of management. Investing in mortgages has never been easier. 7-12% historical APRs. Here is my review of PeerStreet.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. Quickbooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

A cost segregation study can save $100,000 for income property owners. Here is my review of how cost segregations studies work and how to get one yourself.

Amazon good way to control costs and comparison shop. The cost of a product includes travel to the store. When you start a shopping trip to Amazon here it also supports this blog. Thank you.

The #MeToo Movement and the Loss of Intimacy

Romance should not die with the #metoo movement. It is possible to love and respect at the same time.

The event of my life happened on April 2, 1987. It was the most unlikely of events and was totally an accident. Unfortunately you can’t enjoy what I experienced. The modern world no longer tolerates that kind of thing.

The spring of 1987 was a calm part of my life. I owned my own home, I had money and I was living the dream. Only one thing was missing.

My lust to learn goes back to my childhood. With plenty of free time I could read from sunrise to sunset. I would walk to the corner café for a cup of coffee and dinner most days. I would putz around the place and yak with the local farmers as I swilled my coffee. To prevent my underwear sticking to my ass or crawling up thereof I would hop behind the counter and pour coffee. The patrons loved the conversation so the owner comped most of my meals and coffee.

As much as I was enjoying life I was lonely. (And young!) The farmers were a mild diversion and books were a mild form of cocaine, but there was still something missing.

I would take a class or two at the local college those years. Eventually I met some people I really enjoyed talking with so we started to take the same classes. A degree made no difference to me so I just took what interested me with an emphasis in having a friend or two in each class.

The spring of 1987 was different. The loneliness was becoming unbearable. I had my eye on a cute girl in Microeconomics. She was heavy on the makeup, but had the look I found intoxicating. I tried to make small talk with her. I thought we were making a connection.

One day a group of guys were sitting in a side area with plenty of windows discussing historical issues. Some of the other guys had the class; I didn’t. My love interest was listening to the conversation.

At one point another guy participating in the conversation said something I felt was effeminate. My love interest was very offended and let me know about it. The gloss was off the rose. There are things worse than loneliness.




The Truth

The next semester our small group, including my prior love interest, moved on to Macroeconomics. It was the spring 1987 semester.

Class was Tuesdays and Thursdays from 4 p.m. to 7 p.m. Tuesday was fine, but there were issues with Thursday. You see, our group was a bit on the frugal side and next to the college was The Image, a bar connected to the bowling alley. Thursday night was happy hour and if we got there before 7 we could buy a drink (I was a soda guy back then) for $1 and we could eat all the tacos we could scarf down.

Our group must have been charismatic because the professor understood our plight and agreed to cut breaks short so class could end 10-15 minutes early on Thursdays.

So far so good.

But as frugal as our group was we also needed to get out and enjoy life a bit, too. Every so often we would make plans for a Friday night at The Image. Then the fateful event happened.

The Image had a dance floor and contemporary music. We danced as a group but dating among our own was rare. I had no interest in any female members of our group. In fact, some of the female members of our group were later invited to my wedding.

On April 2, 1987, a meek girl with a sad face was dancing with her friend center of the dance floor. I had to meet her; I had to know her story.

She was the most beautiful woman I ever saw. Girls like that don’t date guys like me. But the pang of loneliness was too strong to ignore. I gathered my courage and walked onto the dance floor and asked if I could join her and her friend. She nodded.

Why I didn’t pass out on the spot is beyond me. God probably loves crazy fools. We danced a few more songs and then left the dance floor and talked. It was loud and it was hard to make a real connection. We enjoyed a slow dance. Did I mention God, heaven and a few other out-of-this-world feelings I had?

The beautiful woman turned pale when I gave her my name. She didn’t tell me her name. I was disappointed.

I begged her to return the following week. To my surprise she did.

Instead of dancing we left The Image for the sitting area of the bowling alley where it was quieter. (Now you know how loud the music was.) We talked for hours. The connection was instant. I found my soul mate. If only she feels the same.

She finally shared her name. Sue. Her name was Sue. (She doesn’t like to be called Susan because that is what her dad called her when she was in trouble.) She told me she was engaged a few years prior to a guy with my name. It explained a lot.

She still refused to give me her phone number or address, but did say she lived near only a few blocks away, pointing in the direction of her home. She mentioned the name of the avenue, but not the exact address.

At the end of the evening I walked her to her car. I was rewarded with a hug. Sue promised to return the following week. We would see each other sooner.

 

Somewhere around midweek I started missing Sue. (I missed her sooner, but I was able to control myself for a few days.) After class (it might have been Thursday, but knowing me it was certainly Tuesday) I decided to take a ride down her street after class.

I couldn’t believe my luck when I saw her car outside a home a few blocks up from the college. Emboldened by my prior luck I stopped. I contemplated the risks Sue’s dad might own a gun. Lust got the better of me.

Sue’s mother answered. Sue came to the door. She invited me in. I was the luckiest man alive.

That was 31 years ago. We were married one year and six days after we met. A few weeks ago we celebrated 30 years of marriage and I never regretted a one.




The Fantasy

When in a crowd I tell the story a bit differently now. I like to tell people the basic beginning facts where I met Sue, we danced, she wouldn’t give me her name or address or phone number and I walked her to her car.

Then I add I decided to drive up and down every street close to The Image until I found her car and made a nuisance of myself.

I think my fantasy story is more entertaining. And people like to think it’s funny. At least they used to. Up until the #metoo movement.

A Different World

If I pulled the stunt I did 30 years ago I would be drawn and quartered by the #metoo movement if not arrested. There’s even a good chance a few from the movement will criticize me for not knowing how the future would turned out and didn’t adjust my behavior accordingly back then.

Under today’s unwritten rules a lifetime of happiness for Sue and me would be sacrificed. Two beautiful daughters would never have been born. And we would never have celebrated our 30th wedding anniversary. What a waste!

Yet, the #metoo movement had to happen! Had to. With a wife and two daughters I feel deeply for the rights and safety of girls and women. Men can be cruel and even violent. Rare is the man suffering catcalls walking past a group of women. Women are not as lucky.

As important as the #metoo movement is, there are real problems with the revelations. So many women—if statistics are correct a majority of females (women and girls) suffer from harassment, assault and rape—are victimized that when they all come out with their story it is overwhelming. It begins to feel normal. And that is really bad.

So many women (and girls) have been abused that it is easy to start thinking every female is a victim and every male a scumbag. Nothing is further from the truth.

There are degrees of inappropriate behavior. (You can shoot me later for my opinion.) Rape and abuse of children is always the ultimate bad when discussing these issues. Touching is equally bad, but rape still is worse.

The real problem is communication. If men are honest they all have to admit saying or doing something inappropriate at one time or another. It could be as simple as an insensitive comment about appearance. As innocent as it was meant it still can cause harm because men have no idea how raw the nerves on women are after a lifetime of unrelenting male behavior.

Men who agree with the #metoo movement find themselves in a corner. What can they say without causing harm? What is an innocent inquiry could be construed in a harmful way.




The Hateful

As important as the #metoo movement is we must be careful. When a mere accusation becomes a conviction of guilt in the public arena we risk destroying the movement which offers so much hope for women in the future. Accusations are front page news and for good reason. People we thought highly of did some pretty shitty things!

But not every accusation should be treated equally. I saw an article in The Economist several months back where they listed all the famous people accused of inappropriate behavior. One man was listed with his photo. The inappropriate behavior? He made her feel “creepy”.

It gets uglier. Lawrence Krauss is an American cosmologist I highly admire. He talks English when explaining the complex issues surrounding theoretical physics and cosmology, two subjects I am very interested in and spend serious time studying.

In February of this year Krauss was suspended with pay from his position at Arizona State University due to a BuzzFeed article accusing him of inappropriate behavior and comments. He also resigned from positions in charitable organizations to prevent his attendance becoming a distraction.

Here is the funny thing. Nobody has accused Krauss of anything. Nobody! A news article (it’s on the internet so it must be true) was published with the intent to harm. That’s it. I’m not privy to all the facts, but what I do know concerns me. Nobody has complained over anything Krauss has said or done even when it was made public people were to come forward with anything they had.

That is really messed up and doesn’t do any good for society or the #metoo movement.

Risk/Reward

There is absolutely no doubt women and girls are abused and experience unwanted vulgar comments on a regular basis. The sheer volume is no longer an unspoken concern, but a raging crisis!

Every woman must be allowed to tell her story. We must also take appropriate action. If the accusations make it likely more women will be harmed immediate action must be taken as a precautionary. If imminent risk is not present we need to wait before passing judgment.  The incidence of false claims is low, but still present. We can’t allow a movement with so much to offer to suffer due to a few questionable claims. The risk is too great.




Lost Intimacy

Men are getting gun-shy. The newsfeeds are so filled with women victimized by men that men are feeling they are all guilty. On some level most men have said hurtful things. But an inappropriate comment shouldn’t stigmatize a man for life!

And men are not alone in saying things they shouldn’t. My office is all women so I hear what the ladies say and sometimes even I get uncomfortable. (I don’t avoid hiring men; they just don’t apply for the job.) I try to tone it down when they get boisterous with variable success.

The females in my office are a good bunch, but if men acted that way around women the boom would be lowered and the #metoo movement invoked. I might be the boss, but shouldn’t feel uncomfortable around female employees. Or should I?

When women talk about women stuff guys look nervously for the exits. Uncomfortable doesn’t mean wrong! Yes, my staff talks girl-talk because they are all female. I turn and walk the other way whenever I can. Just because it is uncomfortable for a male, me, to hear something doesn’t mean they are saying bad things. (Except when they think it would be funny to dress the boss in drag. Not funny.)

Love should be warm and soft, not cold and barren.

Men and women are not that much different. We say and do things from our perspective, our worldview. Inappropriate touch is always wrong. Words can be wrong while not crossing a line. Anything insinuating unwanted sexual contact is always taboo and deserves a strong reaction.

The #metoo movement is causing some unwanted results. As men feel more and more isolated they are pulling back from intimacy. What Sue and I enjoyed 30 years ago is less likely to happen today. Why would I, or any man, pursue a love interest the way I did? That’s inappropriate behavior! And over 30 years of wedded bliss and two wonderful girls would never have existed.

The #metoo movement needs to find a middle ground where men and women can coexist.

The world is different today. The internet makes it easy for men to satisfy their, ah, needs without a human being present. Sorry for being so blunt, but it has to be said.

Women want intimacy and complain men no longer provide it. A simple hug is a social crime so men avoid all contact.

Let me be clear on what I am and am not saying. I’m not talking about sex. You can have sex without intimacy. That is what prostitution and strip clubs provide. Sex can include intimacy, but intimacy doesn’t require sex.

Intimacy is the emotional and personal connection between two people. Co-workers can have it; so can lovers. In each case it is a different level of intimacy. Soldiers on the battlefield must have a non-sexual intimacy sometimes referred to as trust. As you can see, intimacy has many flavors.

The intimacy I’m concerned with today involves the interpersonal relationships between men and women. Most women hunger for intimacy. Honest men admit the same. If I had to give up my snuggle-time with Sue my life would be greatly diminished. And for the record, snuggling is not for the young only. After 30 years of marriage I enjoy a warm snuggle more than ever. Pinky (my cat) only wants to snuggle on her terms. Sue is open to compromise to my delight.




What Does This Have to do with Personal Finance?

A frequent refrain in the personal finance arena involves happiness. Bloggers love to talk about the “why” of early retirement and financial independence (FI). FI can bring us happiness, we are told.

I think they are all wrong! Your goal isn’t happiness; it’s joy. You just don’t understand the difference between the words and it does make a difference.

Happiness is generally triggered by an external event while joy comes from within. Winning the lottery brings a lot of happiness upfront. That is why a leading book on Stoicism is called The Joy of Stoicism and not The Happiness of Stoicism. (Yes, I know I butchered the title. I did it to fit my storyline.)

We want happiness, but crave joy. When I felt lonely I was still happy, but longing for joy. Sue brought me happiness and I allowed it to bring me joy. No matter what happens, what is in here (pointing to head and heart) is what will bring me joy and Sue will always be in here.

What value is financial independence or early retirement if you don’t have joy? If happiness is what you want pretty much anything will do. But joy. That is a whole different animal.

I am well aware how long this post got. I’m still not sure I got everything out I wanted to say.  The #metoo movement is so important and still at such risk of burning out before desperate changes are made in our society.

While changes are necessary to allow women to live without threat of assault or abuse, a common ground must be found where a man can pursue his love interest in an appropriate manner and not be branded. Chivalry should never be dead.

Most women enjoy being courted. It feels good to be wanted by someone you find appealing. Men must learn boundaries. It is easy (with a look or a word) to get permission to hug. This isn’t a hard game to learn: you don’t touch an intoxicated woman sexually; you never touch without permission even if you’re married (there are still boundaries in marriage; that is why mine is still strong after 30 years); offer intimacy before offering sex. Intimacy is more fun than sex! Sex is better with intimacy!

Or you can succumb to the alternative—prostitutes and strip clubs—a world devoid of intimacy. And a world I don’t want to live in.



The Greatest Secret Between Debt and Wealth

Learn the secret of the wealthy and how they start each day with a bonus while those in debt are subservient to their master.

There is a secret seldom spoken of by the financially independent. Those in the know can hear echoes of the secret periodically in the utterances from great financial leaders like Charlie Munger when he said the surest way to get in financial trouble is with the three Ls: liquor, ladies and leverage. Then Munger’s buddy, Warren Buffet, laughs about the comment in an interview saying Charlie was joking about the first two; it’s leverage where all the trouble lies.

Did you miss the secret? Unless you are loaded (financially, not with liquor) there is a good chance the greatest secret of wealth whistled past your left ear unnoticed.

Here is the secret for those who missed it:

When you are in debt the clock works against you. Every morning when you wake—weekends, holidays, sick days, birthdays and work days—you are already behind. The mortgage, credit card, car loan, et cetera, all tacked on interest the second after midnight. Long before you rolled out of bed and poured your first cup of coffee you need to work to pay the interest before you have money for food, clothing, shelter or entertainment.

Here is the secret if you weren’t paying attention:

Saddled with debt the clock works against you. Tally up all your debts and calculate the interest accruing daily. Now you know why it’s so hard to get ahead. It isn’t your wage; it’s you! You forgot to do the math and now the universe is teaching you a valuable lesson. If you survive. More on that in a moment.




Here is the secret if you were distracted by the bright lights:

If you have no debt you start each day with a clean slate. You own nothing to anyone as you start your day. You still need to take action to cover your daily needs, but at least you are not behind before you start.

The secret again is:

Without debt, but with investments, interest accrues to your account before the coffee is brewed. Dividends were earned, wealth created.

The secret again:

Investments in interest baring accounts build slowly, yet daily. Investments in index funds means virtually every purchase by every man, woman and child added something to your nest egg. Each sale added to the coffers that pay you dividends. Each sale adds value to the companies you own in the index fund. Each sale is part of the wealth creation process.

In case you missed it, the secret is:

Without debt and a load of investments you have millions of people on your payroll managed by some of the brightest and most educated people in the world. They work hard for a salary. They work hard making you rich!

 

***In debt you are a slave; without debt you’ve broken the chains and ripped open the shackles and threw them into the abyss.

Without debt you are free; without debt and in possession of wealth, each day is yours to use as you chose.***

 




Pay attention! I will repeat the secret one last time:

Debt turns you into a slave! Every day you owe your master. Every day! He is a cruel, heartless master. When the clock ticks past midnight the interest for the day ahead is due.

Only those without debt and in possession of investments are free! Those with wealth are free to live each day as they choose. They can build or create more value or take time to reflect on a life well lived. You can share it with family and friends. Without a harsh master demanding your soul you can walk any path you choose. Any path.

 

I could go on for another 2,000 words, but it would be to no avail. This doesn’t need a long story. The message is short and simple. Even a child can understand it. It requires the poison of mass media to brainwash you into wanting more than you need on a short term of slavery, ah, easy payment plan.

 

Copy this post and paste it on the refrigerator door so you see it first thing in the morning.

Paste a copy on the bathroom mirror so you can read it as you brush your teeth.

Carry a copy in your pocket close to your heart.

Never forget the message. Read it again and again until it is internalized. Only then is the ultimate secret of wealth personally yours.

 

Now you know the secret:

1.) Get out of debt.

2.) Invest constantly in broad-based index funds.

3.) Live the life of your choice.

 

Now that you know the secret you are free. Perhaps for the first time in your life.



Wealth Building Resources

Personal Finance is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Finance is free?

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to skyrocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

PeerSteet is an alternative way to invest in the real estate market without the hassle of management. Investing in mortgages has never been easier. 7-12% historical APRs. Here is my review of PeerStreet.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. Quickbooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

A cost segregation study can save $100,000 for income property owners. Here is my review of how cost segregations studies work and how to get one yourself.

Amazon good way to control costs and comparison shop. The cost of a product includes travel to the store. When you start a shopping trip to Amazon here it also supports this blog. Thank you.

Countdown Clocks

Countdown clocks abound. The most ominous is the doomsday clock counting down to Armageddon. With 26 days to the tax due date here in the States tax professionals are counting down to a less tragic event.

Early retirement was something I dreamed of from high school on. I was attracted to the seasonal nature of the tax profession. The ease at which tax offices can be sold also held my interest. The original goal was to build the business, save like crazy, invest said monies and take an early bow. I decided I should at least enjoy my profession if I’m going to give it my all. The unintended consequence was that I couldn’t unplug as planned.

By the time the birthday cake reached 40 candles I was ready to retire to a quiet and secluded life. Pulling off the Band-Aid fast was tried to no avail so I started a countdown clock. I published it on an old blog. The countdown clock listed the years, months, days, hours, seconds and even tenths of a second. That baby really had a lot of action on the right side.

So I could adequately plan my transition to Easy Street I set the clock at three years. I started an active search for buyers. Serious investors showed up. As the clock ticked down I started to visualize my life in retirement. I hated what I saw and chickened out.




Time Counts and Keeps Counting

When I was a young man I tagged along with my dad as he went to meet the owner of a restaurant in a small town near where I live. The restaurateur was in the final stages of selling his baby. He put 15 years into the venture and did rather well. I was perplexed over why he would quit at a time when he was at the top of his game. Now I realize how often professional athletes make the same mistake I did back then. He then gave a nugget of wisdom that has never left me. “If you can’t make enough to retire from a business in 15 years you never will.”

As the conversation went on he expanded his philosophy. He said the first five years you work like crazy to get the thing off the ground. The second five year period you start making real money. The final five years you should turn obscene amounts of money and if you save and invest there should never be a demand to work again for you.

Wisdom shows up from unlikely sources. An afternoon ride with dad turned into a learning experience. Learning experiences are everywhere when you are open to the knowledge.

In a way the restaurateur had a countdown clock he started the day he opened the doors. In a way I did too. The difference is I didn’t follow through.

Life is too short to waste on things you don’t enjoy. Part of the excitement of life is the feeling we had as kids on Christmas morning. Wanting is far more pleasurable—and memorable—than having. Once the gifts are opened the excitement is over!

Countdown clocks provide adults with the same opportunity. It’s common for people to have a countdown to vacation or retirement. Expecting parents countdown to the expected delivery date. Now if baby would just adhere to the schedule mom and dad would be grateful. (Baby will provide many more disappointments after messing up the delivery day. And a diaper or two hundred.)




Should Everything Have an Expiration Date?

We’re all familiar with countdown clocks in all their manifestations. The real question is: Should we embrace the countdown clock?

I personally think the countdown clock is one of the most powerful tools we have if used properly. As much as I love tax work I’m still feeling the burn as we approach the deadline. I don’t start the countdown clock in February. I’m still fresh and full of lust for another tax project. Now, with a couple months of endless sitting and pounding out returns, I’m ready for the expiration date to arrive. (Twenty-six days and counting as I write, but accountant’s already know that.)

Life should be exciting and filled with anticipation. Expecting a child is awesome (I’ve done it twice so I know), but as Mrs. Accountant can attest, there comes a time when you want that creature cut out of the womb!

Anticipation only works if there is a release at the end. My business exit countdown clock lost its punch when I removed any chance of an expiration date. It also lost meaning.

There will still come a day when I no longer can walk the mile. It would be a dirty shame if I continued on my current path until I was unable to perform in an acceptable manner. There is a sad story behind that.

When I started my practice I hired an extraordinary tax professional. Her name is Bev. For decades she lived the dream of seasonal labor with plenty of time the rest of the year to pursue additional dreams. Bev’s husband worked for my dad’s business. Bev handled books for another business of my dad’s. She also had experience working in other tax offices. She was good at what she did.

Then that thief we call time left his mark. Bev grew older and I sometimes like to say she lost a step as she approached 70, but that isn’t the reason I didn’t call her back one year. The last few years she worked for me the weather of NE Wisconsin made life miserable on Bev. When the temperatures dipped below zero as it does every winter, Bev struggled getting from her vehicle to the door of the office. It wasn’t a long slog either. The cold just took her breath away and it started to scare the hell out of me.

If anything ever happened to Bev because I kept inviting her back for one more year I could never forgive myself. I planned the exit for the last few years she worked for me. Eventually there was no question. She had to take a knee.

Bev is now a client. She is due any day now. I am grateful for all the years she gave to my firm.

If only I could garner the courage to treat myself with the same respect.




Expiration Isn’t the End!

Only one expiration is the end and we all get that one right the first time.

A countdown clock can create anticipation for a vacation, wedding day, retirement party or any other event. Letting go is really hard for some people. Remember who you’re reading.

A countdown clock, an expiration, doesn’t mean the end; it should signal the beginning of a new adventure. Bev was hurt when I told her my concerns for her health. She knew I was cutting her loose. Bev is a lot like me. She would have died running the obstacle course for my company. As her employer I had an obligation to make sure she didn’t die for the cause. Bev deserved an awesome retirement and is enjoying one. Another tax return isn’t worth risking your life over.

There are countdown clocks I have adhered to. When this blog came around I had a difficult choice to make. I have a farm, a tax practice and a new blog. One had to go. I farmed most of my life so I decided it was time to take a different path. There might be a day when I return to my roots. (You can count on it.)

I started a countdown clock to liquidate the farming obligations. Now I have a few chickens for personal consumption. Breakfast is on my ladies.

One end was also a new beginning. You can do anything, just not everything. Choices must be made. Everything should reach an expiration point.

Expiration opens opportunities. I can set a countdown clock in my office without walking away from the profession! I can hire more qualified tax professionals and train them. I still get the thrill of tax season without the pain of endless hours in a chair. (For the record, that sounds mighty nice about now.) Clients sometimes hate I don’t take every last stinking step myself. They don’t know what they are asking for. Most men (and I say men because we are weak compared to the more civilized gender) run until they break. Clients will not like that either.

Now that we have the farm sold (okay, I still own the farm; it’s just devoid of animals at the moment) and the tax practice has an expiration date, what about this blog? Oh-oh! Did I strike a nerve?

I haven’t started a countdown clock for my practice though it is for sale at the right price. (Note: It’s cheaper now than latter in the year.) Realistically I’ll be around for the foreseeable future. But I may not pound as many numbers as I once did.

A flashback to the days when Bev and Jeff haunted the halls of Tax Prep & Accounting Services, Inc.

I’ll let you in on a secret. I spend more time reviewing tax returns than preparing them. Keep it quiet though. Clients don’t have a clue. If clients ever find out they’ll be glad to hear I reviewed every return this year. (So far.) That will change as the calendar rolls a few more years into the future. It’ll be gradual. New and old employees will do more of the work and the world will never know.

The countdown clock has begun.

And as for this blog? I’ve been writing since high school. Finished my first novel my senior year. (Or was it my junior year? I always forget. Age.)

I’ve written other blogs, published books, sold magazine articles and short stories. I even published on content farms. (Notice I didn’t provide any links. Not all material is worth reading. Even your favorite accountant needed a growing and maturation phase.) There is no doubt I will write until the day I die.

But I also wrote what I now call my skanky blogs in the flash fiction TG community. I did it for four years and the traffic was seven to eight times more than this blog. I had my reasons for writing the material. One reason was I always wanted to learn to write flash fiction people would read. I worked that out of my system. Next!

All good things must end. Today isn’t that day for this blog or my practice even, regardless what I say while in a sleep deprived coma. Tax work, consulting and this blog are here to say for at least a few more years.

But if I did start a countdown clock and place it front and center on the home page it might bring back some of that excitement and anticipation.



Church of FI

Sunday service at the Church of FI.

Back in the old days the FI (financial independence) community was a different place. Advice was simple and straight forward. King Solomon reminded us to avoid lending or borrowing. Nearly half the parables of Jesus have to do with money and wealth.

The simple message sold well. So well in fact it became ingrained in religious dogma. The goal was honest. Work hard, save and you will enjoy your old age.

The old school in the Church of FI made the most of a basic message. The advice and values were handed down generation to generation. It lasted for one simple reason; it worked!

The early FI community didn’t have a cool name to draw a crowd. Solomon had proverbs and Jesus had parables. Short stories with a powerful message were the perfect device to hand down important information through the ages.

The early days of the Church of FI are similar to the early days of Christianity when there was a Catholic church. The learned may recall the word catholic (little c) means universal. The Catholic Church was therefore the universal church of God. There was one message, one literal scripture, one true triune God. The FI community for millennia was also an all encompassing philosophy.

Some philosophical movements contained the truths of FI, but had other motives. Sophists, Epicureans, Christians, and let’s not forget the Stoics. But that isn’t what our story is about today. Today we will explore what happened to that FI community of old and how is survived (so far) to become the cult classic so loved by business media outlets everywhere.




The Eve of Reformation

If something is working fine, break it to see what makes the darn thing tick. You know, like killing the goose that lays the golden egg so we can mass produce the goose.

For thousands of years the perfect FI message did the job it was intended to do. But as the Industrial Revolution convinced man he could do better a more scientific approach was needed. By the early 20th Century intelligent men were popping the hood to figure out how the goose laid that darn golden egg.

The path to the FI temple is filled with obstacles.

In 1926 George Clason gave us The Richest Man in Babylon. The story resonated because it basically outlined the same message from the ages. The message delivered in parable was also comfortingly familiar to the more religious time. The story of how a rich man saves money boils down to “Pay yourself first”. It worked back then and works now! Our ears find familiarity in stories advising to save first and spend what is left rather than the foolish other way around.

Now that the ice was broken it was time to dig deeper into the details. Dale Carnegie showed us How to Win Friends and Influence People in 1936 followed by Napoleon Hill’s Think and Grow Rich in 1937. Hill also did something unheard of up to his time. He researched his topic by interviewing the wealthiest people of his time: John D. Rockefeller, Charles M. Schwab, Henry Ford, Thomas Edison and more. The scientific genie was out of the bottle. The goose lived and we now knew a bit more about how those golden eggs were produced.

The scientific revolution in wealth creation brought a new wave of FI leaders willing to spill the beans. Ben Graham published The Intelligent Investor in 1949 and the world has never been the same. Graham’s great disciple is none other than Warren Buffett who proved you can do very well stuffing your money in equities.

More and more books and seminars were to follow. No one had a clue a schism was on the horizon in the FI world. The Reformation was here. The Catholic Church would survive, if smaller, and would never be the only game in town to protect souls, ah, financial fortunes ever again.




Ninety-five Theses

Ever since the reformation of the FI community took place scholars have debated what caused the schism. Some say it was boredom, others our advancing way of life and technology. Me, I say it was the internet.

Before the internet you had a limited avenue to spread your message. Printed material and word of mouth dominated. Television and radio allows for a broader audience, but these forms of media needed a message with mass appeal. Save money! The majority of people didn’t want to hear it. Besides, you can’t take it with you.

(Yes, kind readers, the tone of this post has changed. I set the scene and now my warped sense of humor is bubbling to the surface where I wanted to end from the very beginning.)

Ointment for the anointed.

The internet changed everything. Never before could a young man see a naked, ah, sorry wrong story.

The internet allowed every niche an audience. If you had an interest in conspiracy theories you could now spend all day on YouTube and websites conspiring until you bleed from every orifice. And people didn’t mind since you were comfortably locked in your mother’s basement.

A lot of false starts dominated the early internet days. Several blogs found a following in the FI community, kind of.

You see, the blogs weren’t true canon. The Church of FI had a specific set of rules handed down by God to Moses and passed along to us. The internet gurus were NOT following the rules. They added something to the text! HERETICS!

What is it they added, you ask? RE! Yes, RE, as in retire early. This was the greatest sacrilege in the history of FI! FI was now FIRE to many, as in hell FIRE if you get my drift.

Wealth was always important to the Church. (How else you gonna toss some coins into the plate on Sunday if ya ain’t got nothing to toss in?) Work ethic ranked nearly as high as wealth. This crazy notion of retiring was heresy. Work was good for the soul. Retirement was for old worn out people. To retire before you were practically dead was more than the Church could handle. It was time for a few excommunications, as if that ever worked.




Protestant Explosion

The ninety-five theses were spiked to the church door for the world to see. A few fearless crusaders broke from the catholic church of FI to create the FIRE community. We’ll call them Lutherans in honor of Martin Luther and his behavior back in 1517.

The Lutherans embolden a whole new crew of people predisposed to FI thinking, but preferred a less rigid orthodoxy from the catholic faith. These crazy religious fanatics took the RE thing the nth degree. Most loved the RE idea, but needed something to fill the empty spaces. A large number wanted to fill their days with a side gig or start a business. In essence they traded one job for one they could be boss in. They became the person they loathed at their day job.  These guys are the Baptists and Episcopalians of the FI world.

The Church of FI mascot.

Then we got the true whack jobs who thought they would gallivant around the world. These FIRE people couldn’t wait to break out of their cubicle and get on a plane/boat/car to go someplace else. This group splintered fast into even more sub-sects of the shattered FI religion. One group traveled the world; another enjoyed travel closer to home in an RV or even ditched a terra firma home for the RV. Most FIRE community travelers found ways to hack the system with credit card rewards. Travel was virtually free and certainly cheaper than living in a normal house. These folks are the FI communities Mormons and Jehovah’s Witnesses.

I saved the best for last because it is the smallest (and newest) sub-set of the fragmented FI world. Yes, these are the people who reach FI, refuse to quit, keep working their day job or business and enjoy home life with nary a thought given to travel.

Your favorite accountant falls into this last category, I’m sad to say. Travel is punishment to me and my kind (grammar police can send their comments to. . .). I wake up early, excited to get to the office. I love my work life and am fulfilled by it. I create value in my daily duties and as a creature of habit prefer to keep doing what I’ve always done. I guess that would make me the Westboro Baptist Church of the FI world.

My kind is wont to carry signs outside FIRE conferences where they make their travel plans and other such acts of sacrilege. We picket airline counters and RV centers wearing burlap on a regular basis. We’re a fun bunch of guys when you get to know us.

We also think we’re purists! Our Westboro Baptist Church is closer to god and the real FI community of antiquity. We work hard at our job or business and come home to our farms and workshops to build stuff with our hands. We think we’re better than you and we are! Dammit!

Our Diverse Community

(The meds kicked in so we are back to our serious voice now.)

I hope my attempt at humor made you smile. The humor part of this post IS a parable of sorts (in a sick religion). The FI community is more than just a bunch of frugal people working to improve their minimalist skills. Members of the Church of FI have different levels of comfort along the frugal scale. Some bike everywhere while some stay attached to their car habits. Some are minimalists living with virtually no belongings. Others try to live on a set amount of money each year; say $25,000 or less (U.S dollars, living in the U.S. or traveling).

Conferences and meet-ups are now everywhere! You can meet fellow FIers around the world. Very few weeks exists anymore where you can’t attend a FI/RE gathering.

Unfortunately there is one part of the community who will not be there. Yes, the Westboro people love the community and its values, but would rather stay at home with family and local (versus loco) friends. If you plant a FI gathering close to their home they might attend. Maybe.

The FI message didn’t always reach the masses in the past. The message may not have resonated. With the FI schism we are a more diverse group than ever. All races, creeds and genders are represented and welcomed.

As we open our doctrine the old canon is expanded. FI/RE had a slash between them in the past. The catholic church didn’t care much for the protestants and the same applied in the return direction. Soon we realized we all worship the same god: FI. The catholics (FI) and the Protestants (RE and all their cousins) are back together as one (FIRE).

It’s a wonderful place, our faith. All are welcome.

The next time you hear a knock at the door, answer it. When you open the door it might be two young people who say, “Can we talk to you about our faith in financial independence and early retirement?” Do yourself a favor, let’em in.

 

(I know how easy it is to offend writing a post like this one. No offense was meant to anyone’s religious faith. Please enjoy the humor and consider the message. It’s important enough for me to stop picketing airports.)