Tightrope: Break out of the spend, spend, spend routine
— -- Everyday I get something in my e-mail about surviving in these tough economic times. And for each, I push the delete button. No, it's not that I am hiding my head in the sand and pretending that times are great. It's more because I write a column about developing your business from a point of balance and simplicity and surely my readers know that it doesn't mean shop til' you drop or until you overload yourself and run into bankruptcy.
According to the AARP Bulletin, we live in a time when the national debt is approaching $10 trillion. The projected federal budget deficit this year so far is $492 billion, the actual deficit could be closer to $700 billion.
And that's just the beginning. The average American household is now buried under mortgage debt of $84,911, car and tuition loans of $14,414, home equity loans of $10,062 and credit card debt of $8,565 — totaling, and outstanding debt of $117,952. The worst is that, according to Federal Reserve statistics, the average household savings this year will be only $392.
With the above knowledge in mind, if you aren't living a simplified lifestyle, now is a good time to start.
You might think that being an entrepreneur and simplifying your life don't go hand in hand. But if you are looking forward to a comfortable retirement, or to ease the strain of a tough economy, simplicity is the formula.
My all-time favorite nonfiction book is The Millionaire Next Door, by Thomas Stanley and William Danko. According to the book, most millionaires reach their financial status because of their simple lifestyle. Most are first-generation entrepreneurs, with plumbing, extermination, repair companies or other such small-service businesses. The book points out, interestingly, that huge incomes don't create millionaires. Most of the self-made millionaires earned $60,000 to $100,000 a year.
The trick is simply to spend less and save and invest more.
Self-discipline is the key to a simple life. Start by trading material trappings for more freedom and less financial stress. Take a look at some of the little things that you choose to buy and ask yourself before the purchase if you really need it.
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