Blog 379 – 08.19.2016

One of the great gimmicks of the credit card companies to encourage you to get in debt and to stay in debt is a credit card program they call “Cash Back.” Like the far older, tested, and true “Sale” it is just a ploy to make you think you are saving cash when really you are spending on credit, making more debt, and therefore paying way more in interest. That is not very encouraging you might say.

My encouraging word on the subject of money is the word my daddy said over and over but I like most did not listen to it or practice it – “Save”. If you have no savings you undoubtedly are in debt. You are a virtual slave to your creditors and to your employer. With the Seven Dwarfs you must sing, “I owe, I owe so off to work I go.” Yeah, I know they really used the Lone Ranger’s word “Hi Ho” not “I owe” but mine sounds funnier. Debt and working at a job you hate are neither very funny subjects.

Many of us are so deep in debt that we almost despair of ever being able to retire and figure we will just have to work till we die. Someone has said that winning the lottery is the only viable plan for getting out of debt or retiring that many Americans have. Might I suggest a possible Plan B to supplement that lottery idea just in case you are not as lucky as you think.

Some say that the first thing you need to do is pay off your debts beginning with the ones with the highest interest rate. I disagree. Keep making your payments paying more than the minimum if you can but first things first. Paying your debts is a lot like losing weight. If it comes off fast it usually comes back on fast. Like you have to change the way you think about food to be fit and stay fit you have to change the way you think about money to become debt free and stay debt free.

Begin your wealth creation by paying yourself first. Before you pay your bills remember you owe it to yourself to be wealthy. Stop poor mouthing. When you are even tempted to think that you are poor say out loud, “I am rich. I have more than enough. All the riches of the Universe are mine, mine, mine.” Don’t believe it? You will and to help you believe it when you get paid stash at least ten bucks away and not for a rainy day (We’ll get to emergency money later) the ten bucks is to begin a cash stash you might want to refer to as your FU money which stands for (You know what it stands for but if you have a problem with those two words FU can stand for “For U” money. I like the first meaning better because it says to your creditors “FU, I don’t need to use your money I have my own money” and to your employer, “FU, I am working here because I choose to, so treat me right and pay me what I deserve or I will find a better job.” FU money is not for emergencies, to buy a new car, new dress or to bail your buddy out of jail, it is “For U” money so you will have and maintain visible proof that you are not poor, penniless, or without tangible resources. It is really just a small symbol of your unlimited potential and resources.

One way to watch your FU money grow faster is to give yourself a raise often and to park a large percentage if not all of your unexpected income there. Always pay cash and save your change.  Think of the change as money you are paying yourself each time you make a purchase – a real “cash back” program. Do not give your change to one of Walmart or McDonald’s favorite charities. Only a very small percentage ever gets to the charity anyway. If you cannot resist giving away some of your cash leave larger tips and shock that panhandler by giving him or her a twenty but not out if your cash stash.

Let all your charity donations be deliberate and on purpose. Give away what you no longer need or want. (Do not give away your FU Money. Remember that is For U.) It is a great way to give gifts, help others, and clean out the clutter and make room for the new things that are coming your way as they always do to rich people.

Step Two in your Wealth Creation and Management plan is as soon as your FU money cash and or change adds up to $100 exchange it for a hundred dollar bill. Bigger denominations are harder to turn loose. Learn to cherish those one hundred dollar bills that are a growing sign of your independence and a proof that you will one day be able to pay off all the debts you owe. Then hide the Benjamins away where none but a beneficiary can find them and then only after your die. Leave a note, a treasure map, not a will. Visualize that person pleasantly surprised to have that wind fall after you no longer have need of it. No will, no probate, no inheritance tax, strictly a cash under the table deal, a treasure map with clear instructions as to how to locate and secure the cash. Nothing says you have more that enough than a big box of Benjamins. Your FU money should always be kept in cash (hundreds) and nearby, secret and secure. No one should know the exact amount but you. It is nobody else’s business.

On the subject of change, do not pay to have anyone count your change that is a rip off. Like most surcharges. Most banks have counting machines and will count it for free if you have an account with them and they will be happy to give you a Benjamin for your change. Still I recommend you count and roll your own coins. Do not trust your wealth creation or management to anyone else. They have a vested interest in growing their own wealth not yours. Wrappers are very cheap by the bag at Walmart. You can afford it. Every time you get one hundred dollars in coins trade it for a Benjamin and add it to your stash. You need not become a miser to enjoying counting your own money and watching your FU cash stash grow. Counting and rolling your own coins will be a constant reminder that your are getting richer by the day.

When you have a minimum of five thousand dollars in your FU money start a separate savings account for a reserve or rainy day emergency fund.  You will want to aim at an emergency fund big enough to live on for at least four months if you needed too and to pay those unexpected expenses that always come along. Then and only when you have that full emergency fund in place start putting what you were putting towards your rainy day fund toward your interest debt payments and thrill as one by one you see each of those balances drop to zero while your FU money continues to grow and your emergency money is there to take care of unexpected expenses.

After you have paid off all your debts start one more savings account and call this one “TBM Bank, The Bank of Me.” This new bank is meant to finance all your business ideas, large ticket purchases, and those exotic vacations to distant places you have dreamed about for so long. But remember it is a real bank and you should pay back what you take out with interest. I guarantee the TBM Bank will provide you a lot more fun and security than dreams of a big lottery win ever will for the vast majority of people. It might surprise you all the opportunities to make money, having capital will make available to you. Then when you say, “I am rich, rich, rich.” you will start to believe it.

If I had put these steps into practice when I first started getting money I would have not only have saved myself a pile of money but also have saved myself a lot of frustration. Wouda, coulda, shoulda, Pal. There is no point crying over spent money or spilt milk. Ten bucks and pocket change is all it takes to start growing your own fortune. Start today.

To summarize:
Pay yourself first. Start with ten bucks every time you get paid.
Use cash, stop using credit.
Save your change.
Do not pay anyone else to count your change or manage your wealth creation.
Change the coins and cash you stash to $100 bills and hide the Benjamins watch the pile grow and do not let it go. This is your FU money not to spend just “For U.”
Do any and all charitable giving deliberately.
Donate what you no longer need or want. Make room for the abundance that always comes to the rich.
Think of your FU money as your freedom guard it and do not turn loose of it.
When you have a minimum of $5,000 in FU money start a separate savings account to build a four month safety net, rainy day, emergency fund.
Never stop contributing to your FU money but when your Emergency Saving Account is flush start putting what you were putting in that account toward pay off of your debts.
After all debts are paid off start yet another separate savings account called “TBM, The Bank of Me” from that bank finance your dreams.

And remember to remind yourself all along the way, “I am rich, rich, rich.” For you truly are and will have a box of Benjamins, an Emergency Reserve Account, be Debt Free and own your own bank as proof of how truly rich you are.

I happen to think that as a child of the Universe we are all rich but for those of us who have believed The Great Lie that there is not enough to go round it just might take a box of Benjamins (that you only touch to add to) to prove how rich you really are. If you find this works for you be sure you make me the beneficiary of you secret cash stash with a detailed treasure map. I would sincerely love to travel the world treasure hunting. Only kidding – Live Long and Prosper. I am working on my own box of Benjamins and plan to finance my own fun, travel, and adventure. I do not need or want your FU money I have my own, thank you. And so should everyone.

Your friend and fellow traveler,
David White