11 Ways to Reduce Financial Dependency
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TRANSCRIPT of 11 Ways to Reduce Financial Dependency
This is Canadian MGTOW. Having fun, and not giving a shit...
Today's MGTOW Money video is called, "11 Ways to Reduce Financial Dependency".
No, this is not advice to get a job and stop an addiction to welfare. Nor is this a video to reform a feminist from insisting on government hand outs.
I assume you have a job, but if you don't , there will still be a few points that can help you. If you want to be financially independent, the first unglamorous steps are to reduce your financial dependence. When you are financially dependent, it means that you are not only dependent on your job, but on banks, and on family members. As you continue to reduce your financial dependence you will be able to survive missing 1 paycheck, then 2, then 4, and eventually the ultimate destination of zero dependence on an employer.
As your savings and investments grow, and you become less dependent on your day job, there is a degree of independence in that alone. You also put yourself in a position to have more choices. Even if your goal isn't financial independence, by using the following strategies, you open the possibilities of taking a job that is lower paying but more fulfilling, less stressful, or simply less hours.
Minimize Your Monthly Expenses.
Also known as living below your means. Become realistic about needs versus wants. Food is a need. A fancier car to impress chicks, is not.
Use a smart grocery list. By smart, I mean do an actual meal plan based on what is on sale at your store, then draw up your grocery list based on that. This ensures that you are always buying stuff on sale. If grocery flyers are not convenient, they are all online.
Make you home energy efficient. Seal drafts, clean the coils on the back of your fridge (yeah, I know, I don't do that either), replace bulbs with the newer energy efficient ones. The new L-E-D bulbs no longer give off that creepy blue tinged light, like you're in some artsy film about a deep freezer.
Try out low cost hobbies. Even something simple like reading; there are tons of free e-books on the internet, and many audio books on You-Tube of all places. Some hobbies can actually pay for themselves like blogging, logo design, writing, online poker, sex, a side business, carpentry, investing, dumpster diving, and of course, minimalism!
Whatever you do, don't try hyper-miling. Those people drive like ass-holes.
The litmus test. If you are about to buy something that will impress other people, put it back on the shelf and give your head a shake. We spend too much money buying things to impress people we don't even like.
Avoid Credit Card and Consumer Debt.
I didn't want to include this on the list. Watch the local news, and chances are that in the next 17 to 20 newscasts there will be some idiot reporter once again talking about credit cards, how it is so unfair that un-secured debt has such high interest rates, asking clueless members of the public if they carry a balance, and the ever popular, "If you keep making the minimum payment, you will never pay off your balance!"
Here's what I do. I used a visa card that pays cash back. No fees. The interest rate is something stupid like 19%, but I never carry a balance. I avoid cards that give points because points are intangible to me. Spending tens of thousands of points for some waffle iron that probably won't last the same number of years you saved points for is not my thing. Getting 1% back on all the gas and groceries I buy is concrete, and there in black and white on your statement. Last year, I had enough to buy 3 or 4 waffle irons. I prefer pan-cakes though.
I always wondered if Aunt Jemima was married to Uncle Ben. I digress.
Use Windfalls Smartly.
A bonus, a raise, an inheritance, or just a bag of money you found in the woods, are all things you can get excited about and end up spending in a foolish manner. I've heard of too many people that bought a depreciating asset (like a car), some time-share, or some cottage that sucks money year in and year out.
When you receive a windfall, don't think of it in terms of the amount . Take the amount and realize at even 5% growth, it would be worth double in 14 years. A day of fun today, just puts off financial independence. Besides you will be too busy doing the cheap hobbies mentioned in the first strategy.
Paying off debt goes without saying. Make it a goal to be able to tell your friends that you are debt-free. I am 100% debt free. I don't own a house, but I am able to save up at least $900 a month, and that money goes straight to my financial independence goal.
Make Flexible and Cost-Effective Housing Choices.
Strongly consider renting. Renting comes without the expenses of homeowner insurance, property taxes, and things that you might not be aware of. Today's cheap shingles means you will need a new roof in less than 10 years. That furnace in the basement is essentially like owning a small car, except that when this one dies in the middle of winter, you might need to buy a new one that same day. Most people who own a house have most of their net worth tied up in it. Each time they move, they lose a certain percentage just in realty fees. In Ontario there is something called a land transfer tax. $250,000 which doesn't buy much of a house here, will set you back 1% in provincial tax. A general rule of thumb is that you will end up spending at least 1% of the home's value on general upkeep and maintenance.
With renting, you can easily move to where the jobs are.
If you do buy a house, lean towards smaller. Smaller houses mean lower property tax. If your stuff fills the house to the ceiling, chances are you don't have the time to actually enjoy it all. Either that, or you are one of those people that ends up on the show Hoarders. Seriously, what is it with the people on the show, Hoarders? Most of them drinking hundreds of meal replacement shakes, then leaving the empty bottles on the floor. I don't get it.
Choose a location close to everything. It might be worth paying a little extra in rent if you could for instance remove the need for a car. If you were able to remove the need for a car, you would save a ton of money. The cost of the car itself, maintenance, gas, insurance, registration, speeding tickets, not to mention the cost of therapy after you ran over that poor cat.
Poor, poor, Tibby.
Improve Your Résumé.
If you primary source of income is through a job, then your Résumé. is essentially your access card. Improving your Résumé will improve your access to raises, promotions, or at least better access to another workplace that has a more benevolent dictator.
Focus on project oriented work. Employers love people who can take a big task and bring it to completion.
Take opportunities to speak publicly whether it is at a team meeting, or in front of hundreds of people . It's all about getting your name, your face and your ideas out there. One software programmer I worked with was a pretty quiet guy, and had worked with me for 10 years. One day he opened the door for our CEO, who had forgotten his access card for our building. Once the CEO came in, he asked my co-worker if he was a new employee. Ouch.
Improve your education. If your workplace pays for courses, all the better. Don't forget to add these courses to your Résumé.
Build More Streams of Income.
A part-time job is the easiest way, but if you are like me, I work enough during the week as it is.
Try free-lancing a skill or talent that you have, and enjoy. One place to try is e-Lance.com
Create things that generate a steady, even if small, stream of revenue with little further work. Write an e-book for the kindle store, upload your artwork to a place like zazzle and sell mugs. Many more ideas are out there, you just need to use Google for something other than "BBW cream pies."
Lastly, invest your money in ways that offer a real return. If you really feel the need to speculate, in a single stock, bit-coin, or pork-belly futures, use no more than 5% of your savings for this.
Maintain a Healthy Cash Emergency Fund.
By cash, I do not mean actual paper bills under your mattress. This can easily be stolen. Cash simply means money that you can get within a few days without owing somebody. Credit cards do not count. Ideally this money should be in a savings account or a chequing account. Do not put the money in something that can go down in price. Even something like a 5 year federal bond can lose about 5% if interest rates rise 1%. Also be weary of something that looks apparently safe but costs money to sell (like a short-term bond ETF), or a term deposit that is either locked in for a year, or charges a penalty to cash in. Liquidity is key.
I personally keep a portion of my emergency fund in my chequing account to keep a minimum balance which then allows me to write cheques for free and use my banks ATM for free , with no monthly fees. The money I save is like earning 1% interest which is hard to beat with a chequing account.
Your Emergency Fund should be at least $1,000, but this is the very bare-bones minimum. Ideally it should be 6 months of living expenses. Much easier to do if you are MGTOW, rather than married with several spawn.
Develop Personal Happiness.
The term "retail therapy" should make you cringe. If it doesn't, stop watching this video. Seriously.
Eliminate any activities that revolve around spending money such as shopping.
Find things you enjoy that don't involve spending money, and do those things.
try to get your friends on board with free or inexpensive activities, unless of course the activity is more of a solo pursuit, like chronic masturbation.
Community groups are usually free to participate in, and are good ways to meet like-minded people. Check out Meet-up.com for such events. Supposedly being more involved with your community is shown to increase happiness; the exception being cities that are shit-holes.
Always have a plan. Have a plan for your plans and a backup plan for your backup plans and be a planner. You should plan ahead by investing, by saving and by planning, you will be much better at financial independence.
Don't let known big expenses sneak up on you. If you know that you will need to replace your car in the next 5 years, start saving up for that car starting now! I bought a used Toyota in 2004, and started putting away money every month since. That Toyota, is still going strong 11 years later, but in the meantime I've saved up enough to buy a brand new one, if I wanted to, in cash.
I once red that every hour of planning, saves you 3 hours of effort. Who can resist, a 200% return?
Stop Making Poor Financial Decisions.
Start saying no to things you simply don't need. The more you say no, the easier your life will become, and the simpler it will be. If you find yourself still wanting some gadget at Best Buy, do some research. Quite often I find that some gadget that is on sale for a good price ends up having horrible reviews, or is missing some important feature.
I've never been an Apple fan-boy, but just some minor searches on Google showed that the new Apple watch must be plugged in every single night, Also with heavy use, the battery might only last for 3 hours. Combined with a ridiculous price, the watch needs to be tethered to an iPhone if you wanted to track anything that requires a GPS. I personally hate jogging, but I would hate it even more if I have to do it with an iPhone in my pocket, just so that my watch can be able to track my distance.
Get Rid of What’s Holding You Back
Is something, or someone, holding you back by draining you financially? Get rid of it.
Do you have a desire to always have a new car? Get rid of it.
Tired of your newspaper being delivered in random places outside of your mailbox? Get rid of it.
Always complaining about the price of cable television going up in price? Get rid of it.
Getting rid of Cable TV was something I should of cancelled YEARS ago. I recently switched to cable internet, and even though I had cancelled my cable TV, I still get 15 or so channels coming through.
Repeat after me.
Get rid of it.
Get rid of it.
Get rid of it.
Following these strategies and putting them into action, you will get several side benefits.
you will feel less stress in your day to day life.
you will feel a greater sense of control and purpose.
you will no longer feel like a victim of circumstance.
you will have fewer rules in your life forcing you to live a life of restrictions.
This is a financial journey. Travel light!
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