Smart-Budgets, Never Eating Alone & The Lean Economist

edited May 2014 in Wealth Hacking

Hey everyone. 


 


Recently my interest for entrepreneurship and social-projects have been on a big upswing and


so one of the paths I have fallen into recently is the nits and grits of budgetting for a less stressfull lifestyle.


 


Looking at people like Tim Ferriss (The 4 hour work week), Keith Ferrazzi (Never eat alone),Eric Ries (The LEAN startup) and Leo Babauta (Zenhabits) I feel I have gained some insight into how one could go about planning and managing ones personal economy, create positive-lifestyle-feedback loops in a vision & mission focused budgeting system and create a meaningful-psuedo-spiritual factor in all of this.


 


These are all importent parts of experiment-driven projects im working on in my life and I would love to boil all of these concepts down to a single chart or tutorial without losing value in the process.


 


So I am looking for any thoughts possible on the subject of making this type of vision & mission driven smart-lifestyle-budget.


 


Some resources I like are:


 


Comments

  • StevoStevo Upgrade in Progress

    This is something that I feel like everyone keeps a secret but should be openly shared. It can be the difference between being wealthy or not.


     


    I'll give my system as an example:


    1. over your pay period, calculate out your bills. Round up where possible.


    2. organise for them to be paid immediately after you get paid, in the relevant amounts. e.g. if you get paid weekly but have a monthly bill, make the one weekly payment every week.


    3. include the amount you will save as one of these bills and transfer that out at the same time.


    4. whatever is left is money you can do anything with: save extra, spend, etc.


     


    Also, I have given myself a fixed amount for food each week, and also a fixed amount of "fun money". This has avoided many money arguments with my wife, since my $100 is completely up to me to decide what I spend it on, and the same goes for her $100. Some weeks you don't quite spend it, other weeks you spend a bit more, so you have to take less the following week. Life happens.


     


    What's your system? Do you have one?


  • The secret to wealth is simple SPEND LESS THAN YOU EARN, PAY YOURSELF FIRST.


     


    Most people can't figure that out. Tim Ferries has a lot of great ideas, with a lot of hyperbole. His 4HWW was great, but you then learn it's total bullshit because Tim only claims that doing things he doesn't enjoy is work.


     


    Lifestyle costing is pretty simple though and smart. I've been practicing the above for the better part of my twenties and have just started a process of reducing my lifestyle as I plan to take my family on the road fulltime.

  • 1. Read Secrets of the Millionaire Mind. This book will revolutionize how you see wealth and the entire money game. I highly, highly recommend it.


     


    2. Personally, I have five separate accounts at my bank. One for necessities, one for investments, one for saving, one for giving, and one for luxury/play. This is ridiculously simple and profoundly effective in my own personal finances. The VERY day that I receive my paycheck, I log in to my online bank account, and transfer 10% into savings, investments, giving, and luxury/play. Then I cover my necessities with the remaining 60%.


     


    If the above percentages are too high, I recommend the following: cut back your expenses as much as possible (cancel cable/subscriptions, less eating out, etc.) and simply adjust the percentages according to the cost of your monthly necessities. The MOST important step is that you set aside these future-oriented funds, as SOON as you get paid. Don't wait two weeks to deposit "whatever is left" into a savings account. There won't be anything left. Pay your (future) self first and your life will be exponentially better.


     


    I also recommend the following books: The Richest Man in Babylon, Think and Grow Rich, I Will Teach You to Be Rich, The Greatest Salesman in the World, The Genie Within, and The Millionaire Fastlane. Wealth is an inside game. People who win the lottery are statistically financially worse than before within 2-5 years. It is - ultimately - not about how much you make, but how much you keep and what you do with it.


     


    Seems like you are on a great path! The books listed above are centered mostly around personal finance and wealth accumulation, but you mentioned a desire for a vision-mission kind of lifestyle, so I recommend the following: The $100 Startup, Start Something That Matters, The Fire Starter Sessions, and Crush It. These all center around creating an income/life around your passions and greater purpose.


     


    Hope this helps! :)


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    When I'm not eating delicious, Bulletproof food, I spend my time reading, listening to podcasts/audiobooks, lifting, traveling, and helping people to:

    1.) become a more powerful version of themselves and 2.) create real income online. I have to admit, my life is quite fun! :)

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