I’m going to tell you the secret to solve 90% of life‘s problems. The thing is, the society of the XXI century doesn’t like it:
Don’t spend money on crap.
There, it’s a magical and simple solution. Let me explain why:
1) Most of our real “problems” today are caused by money. If you belong to a first world country, it’s highly doubtful that you’re going through real troubling situations like third world countries with no money do. Think like a country: save money, and you won’t have difficulties covering food, shelter and other basic needs. Once you solve those issues, the rest of the problems become less worrying.
2) We are living in a vastly consumerist society, where money can “buy” happiness, that it’s usually materialized in gadgets, expensive clothes, and other unnecessary stuff. We know this, but we still fall victims of it. I’m not going to tell you to be completely frugal and refrain yourself from enjoying some of those luxuries, but I will tell you to be selective. You should choose, not avoid. Decide some things that you’ll enjoy and don’t go buying every thing that comes your way. This way you get to have fun, to focus on cars, phones, Armani suits, or whatever it is you like, and you can save the rest for things that matter.
3) Things like death, love, friendship and many others are not “problematic” per se. There’s no way to avoid them, so I don’t consider them problems, I just consider them life. Let’s refrain ourselves from considering losing a loved one or getting divorced equally important dilemmas as not being able to buy a car or a pair of shoes that we like.
4) You never know when you won’t be able to keep producing money. You can’t trust the current system of retirement to last for much longer. Save now to be relaxed later. The last years of your life shouldn’t be spent worrying about making ends meet.
Spend wisely and you’ll enjoy the easy life.
What do you think? Can life be that easy to solve?
Carlos,
I think you really hit it out of the park with number 4.
“You never know when you won’t be able to keep producing money. You can’t trust the current system of retirement to last for much longer. Save now to be relaxed later. The last years of your life shouldn’t be spent worrying about making ends meet.”
That right there is gold. Especially when we’re young, we don’t spend the effort to look far into the future. It is also the fact that we live much longer after retirement than ever.
But for me personally, the reason point number 4 hit so hard is because I’ve personally seen family members go from rags to riches to rags because of their outrageous spending habits.
One family member had a business, easily and consistently raking in 7 figures, but everything had crumbled to poor choices and alcohol induced spending.
Another family member who was doing 6 figures also lost most of it due to chasing tail. Now he’s another chump trying to get by.
So, the take home lesson here is to ‘Save for a LONG rainy day’ because we never know what awaits us in the future.
Thanks Carlos!
Well, then what should we spend on? I think that you CAN reach a point where you can see what is crap and what is not. Yes, we are very delusional, but when you realize how much that spending is hurting you, you may start seeing the light, the truth.
I do agree that it’s very hard to make some people realize this, and maybe they are a lost cause. But I’m positive that you and others as well will take something out of this post and apply it to their own life next time they see that piece of clothing that looks so good.
I would like to add that a couple of the most important decisions for myself in life have been the choice of my work/job and the location of where I live. Consider how much time we spend at work and how it is just a means to make money for many people, i.e. compensation for the “hardship” and then using money to compensate for that “hardship”. Consider what you contribute to this planet through your life. Do you want to make an impact/have a legacy? For me that is more important than saving money to retire.
Don’t get me wrong: I contribute to a 401k and have life insurance, etc. to protect my (and my wife’s) quality of life, but don’t forget that you could die tomorrow, so don’t waste too much time worrying about tomorrow. The last shirt has no pockets.
And: I know very few people who could (e.g.) buy a house without taking a credit. You might consider that “crap”, but I like “owning” my home rather than giving money to a landlord.
YMMV
Tobias, thanks for your input.
I completely agree with your first paragraph, but I don’t consider those things problems, I consider them goals. Many people couldn’t care less about other people or about making an impact.
I also agree with living life! Like I said, choose instead of avoid.
The house thing is debatable, but to each his own thing 😛
Pretty simplistic view, and not sure if I agree with this 100%. While money is a huge factor of one’s life, most of life’s problems could simply be solved by a shift in your attitude and thinking. When I was broke, and blaming everyone else for my problems life always seemed to suck. But when I started to see myself as blessed, and became thankful, and began to shift habits, I eventually came out of poverty.
With more money your life becomes more enjoyable. You are not worried about weather or not someone is going to turn off your power, if your tires go flat, who cares buy new ones. While I am a bit of a minimalist, I’m not as much of one as I used to be. I have stuff, and I like my stuff.
I remember Daniel Gilbert stating that more money makes you happier up to a certain point. Once you’re pass that, it doesn’t matter how much money you make, so I’m not sure I agree.
Stuff is ok, as long as you choose which stuff. There’s no fulfillment on buying everything.
Money makes things easier and makes it easier to enjoy life. If you have an abundance of it, you can do whatever you like and go where ever you like. My point wasn’t in buying stuff, but to touch more on your point for saving. People buy crap thinking that brings fulfillment, but really it’s the people and relationships and things you do that bring real fulfillment. Money when you have it, can make more things happen and it make easier to focus on the real things in life. Rather than worrying if the lights are going to get cut off or weather or not you can enjoy a steak diner and night out with your friends. Make sense.
Money definitely helps. I’m not against having it. I’m against not knowing what the hell to do with it, and therefore doing wrong things with it.
Again, once you pass a certain point. Of course being able to pay for gas and water will make you happier.
It’s so difficult to avoid the disease of consumption, especially here in the U.S. where it’s constantly in your face and people define themselves and others by what they do and what they have. You’re not what you do and you’re not what you have. I think it’s very easy to get caught up in this, especially in the cities. I know I have been guilty of it now and then, but I consciously try to keep everything in perspective and try to limit my purchases to the essential.
Being conscious is the hardest part Hugh. Consider yourself wise and lucky. The rest is a piece of cake.
ahahaha awesome post! words of wisdom.
There are lots of schools of thoughts on why we buy the stuff we buy.
The one I like most is “we buy all the useless crap to help us reproduce”. There is an assumption from both guys and girls that you need to spend money to find an acceptable mate. Guys need fancy cars and big houses while girls need make up and shoes.
Until I got over this assumption – which some may disagree with – I continued to buy useless crap.
Taking the standpoint of a minimalist is a beautiful way to disarm all forms of social pressure that encompass buying things.
If someone says – “you wore that shirt 2 days ago!” say “so? I spend my money on experience not consumption” or something equally as corny like “why do I need more clothes?” or “I have everything I need”. seriously, it works if you believe it.
That being said, i still spend lots of money on experience. does that equate to useless crap? I do have investments, but I could have at least double of what I have now if I didnt spend on experience.
My experience is in the form of travel, socialising (food/drinks), and leisure activities (scuba diving/rock climbing/motorcycle riding).
some people would say that is all useless crap and I should be putting all that money into my retirement fund.
where as I say, I have 40 years of work and only 6 years left of my “20 somethings” so what is more valuable? experience while I have my youth? or a comfortable retirement while im old?
The goal is obviously both but what if you had to choose?
This year Im aiming for both, but if I have to choose, I will choose experience with youth. Maybe I’ll reassess next year.
Experiences are never useless crap. A constant seek of knowledge and wisdom is one of the most fulfilling ways of living. A new car won’t make you wiser.
With a title like that, How could I not read it? And a great post to top it off. Fortunately I don’t really own anything save me macbook pro, a sweet slr and a quality watch. They travel with me round the world and the four of us are pretty content but a great point to make none the less.
Let me know ho you solve your 10% my friend 😉
It’s even possible to live with no money at all.. According to Heidemarie Schwermer..
Times article: http://women.timesonline.co.uk/tol/life_and_style/women/article6928744.ece
And another site about a film that’s created about her: http://www.livingwithoutmoney.tv
Inspiring?
You bet.
LOVED this Carlos. You are right – it is so simple. I have a guest post up at http://www.totallyuniquelife.com at the moment called ‘do you have to work full time?’ where I talk about how not spending money on crap could mean that you could work less. thank you
Haha, so simple right? Less spending, less work, more quality time 🙂 We are on the same page Jen!
But what if you have a lot of disposable income which allows you to buy lots of crap? 🙂
Interesting to hear your story Carlos. How much money did you leave behind from your corporate job, and have you managed to replicate it in your new lifestyle?
Gracias.
I would still be careful, you never know what the future will deliver.
A lot, and no, I have not been able to make as much now that I do my own thing. Heck, maybe I’ll never will. And I’m totally fine with that, I’ve never been happier, I’m replying to you from the beach with an orange juice in my hand, and I’ve realized that I never needed that much to begin with.
Thanks Samurai 😉
“Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.”
~from David Copperfield by Charles Dickens~
The basic concept is timeless and while often repeated can never be said enough times to make the majority people understand. As Carlos states we’re currently living in a “vastly consumeristic society.” At least this has been my experience here in the US. This ideal, which is constantly reinforced and glorified by mass media coupled with the ridiculously low standards to qualify borrowers leads to a one-two punch on most peoples personal finances. No job, no proof of income, NO PROBLEM! Enjoy your $10000 credit limit. Don’t worry about the fine print that says you’ll probably need to sell your first born child to make a dent in the balance after you max it out, miss your first payment, and get to enjoy a 29% interest rate for the rest of your life (or until you file for bankruptcy).
I have to agree with Bytta though that the second half of #3 left me scratching my head a bit (the first part makes sense). I don’t think anyone but an incredibly emotionally detached or selfish person would consider a death or divorce on the same level as being unable to make a purchase they wanted. Can you clarify at all?
I think that looking at life as a problem (or a numerous set of problems) to solve is a difficult approach. I’d rather view it as something to be experienced. Good, bad, or ugly.
I see that I wasn’t clear on my writing, and I’m sorry for that. Copying my reply to Bytta:
“When I say they are “life” is because everyone goes through them, love, death and many others. But not everyone goes through the “problem” of not being able to buy a car or a pair of shoes.”
I agree with your last statement, but you can’t say that it’s not a catchy title 😉
Thanks for the clarification. Makes much more sense that way. Touche. 🙂 It is a catchy title that probably snagged more than a couple curious Tweeters.
“You should choose, not avoid”
That’s the best habit someone can obtain. When you select what you really need or want to buy, what you want to live, then you are being yourself.
TV ads, Internet ads, billboards… They all invite you, consciously or unconsciously, to purchase things you really don’t need. Just incorporating this advice in our life will make us be ourselves and take control of our decisions.
Completely agreed Alain, thanks for the comment and support 🙂
I don’t get your point number 3.
“Let’s refrain ourselves from considering losing a loved one or getting divorced equally important dilemmas as not being able to buy a car or a pair of shoes that we like.”
Do you mean losing your friend is not as important as being able to buy a pair of Manolo?
Getting divorced could also scramble up your financial well-being; certainly it’s not “just life”.
If you have not spent money on crap your whole life, your divorce won’t scramble you up as much.
When I say they are “life” is because everyone goes through them, love, death and many others. but not everyone goes through the “problem” of not being able to buy a car or a pair of shoes. Hope that clarifies it 🙂
I like the approach that all of our other problems are “just life.” I guess it might really be this simple…
But then again, are problems with money sometimes “life,” too?
No, because many people (those that have it figured out) don’t go through those money problems. We all lose loved ones, go through break-ups, etc.
As I like to say, It’s possible to have it all… Just not all at once.
I like how you point out that we can still spend money on things we really like, Carlos. So many people think we’re rich for the cars we drive, but we are so not… We just found what, for us, returns the maximum happiness for the money spent and that’s where we spend most of our free dollars. 🙂
Haha, I love your first sentence. Maybe it’s not a matter of money but patience? Good stuff Meg!
I guess Homer Simpson was right “Money is the cause of and solution to all of life’s problems.” Oh wait, that was Beer. Sorry about that.
I totally agree Carlos, Spend less than we make and find the real value in life,
By the way, only YOU can determine what that REAL value is.
For me it’s popcorn and “dulce de leche.”
Good stuff, the number one goal is not the fall into the trap of debt. Once you start the cycle it’s quite vicious and you need to constantly fuel it. People who have a nice car, nice house, nice boat but all on debt, can’t afford to quit their jobs because they would loose it all. Without debt, you’re free to maximize the money you have and do whatever it is you love!
The rat race can be quite terrible indeed. Thanks for the input Alex!
That simple maybe, these things are rarely ‘easy’ 🙂 Interesting point though, and definitely worth attempting.
Never easy, but simple is a good step. It’s up to you to make it easy or not.
Haha! I think everyone should print that out and put it in their wallet, attach it to their credit and debt cards
You should see this video 😉
http://www.owlsparks.com/decisions/the-napkin-of-logic/
Please don’t post pictures of your feet again. They are revolting.
Thank you.
Not mine.
Seriously, that’s pretty damn bad!