Money is What You Make of It, Not How Much You Make

Because I write a lot about money and opine a lot about money, I tend to get all of the usual types of responses that are almost entirely, in my opinion, generic, and all easily debunked or argued against. The rich are all greedy and just want to hoard the money. Workers are exploited with low wages. You can't get ahead in the world if you don't make a lot of money. You can't live on the kinds of wages most companies provide.

My favorite one is, I can't afford to save, therefore how can I invest?

In part I say easily debunked or argued against because, like most people, I started at the bottom. Not the top. Yet despite that it has not stopped me from being financially secure, getting ahead, or being able to take advantage of the myriad wealth building opportunities everyone has no matter where they exist financially.

Yes. There are limits. But what the real limit is, is how little people recognize what the real opportunities are, how accessible they are to everyone, and what opportunities are afforded us by what the rich have created to have a shot at joining their ranks on some level.

I am not going to say it is easy. By no means. But nothing that is worth doing in life ever is. It's hard because it is supposed to be. It is hard because the challenge is what drives us forward despite what limitations we have or what hurdles we have to overcome.

I took my first job working for Dominoes Pizza at 14 years old putting circulars on doorknobs advertising pizzas to potentially hungry customers. They paid me $2.85 an hour. That was in 1987. In 1992 I went into the United States Navy and, according to my Social Security statement, by the time I got out in 1996 I was making $13,418 a year.

I started investing shortly before I left the navy. And granted, my expenses were low because I lived on the ship during the time and most of my food was paid for. I started investing with roughly a few hundred dollars. 

But I had a mindset. Live on 80% of your income and sock away the 20% you don't need. When I left the USS Enterprise (CVN-65) in April of 1996 I had a total savings stash worth only around $3k. That was from money saved as well as money earned from investments.

Even 10 years later, according to my Social Security statement, I was only earning $36,951. But during that time I had real expenses. I bought my first investment property when I was 26 in 1999. Most of the downpayment and my ability to do that was based on proceeds, dividends and gains earned on saved money in the stock market.

I continued to save and invest at rates of 20% or greater, acted frugally, and continued to invest and learn about various strategies in the stock market. 

Never once did I ever think of the rich people I worked for as greedy. Never once did I allow myself to feel exploited. Never once did I complain about low wages, and certainly I was mostly always paid low wages.

I worked for big companies like Quad Graphics, Kraft Foods, Coca-Cola, Smurfit-Stone Container Corporation, and Nestlé. I even did a short stint as a pest control guy for a small company called Batzner Pest Management in New Berlin, Wisconsin.

My best year was at Coca-Cola, working in mid-level management and earned $60k. After Coca-Cola I took pay cuts to take on new challenges, and my last full year at Batzner I only made about $36k. The key here is that no matter how much money I made or didn't make, I never deviated from the plan. I never made an excuse to stop saving or to make changes to my investment goals and strategies.

The one thing that remained static was my thinking that it never matters how much you make, but rather it matters what you do with it.

More importantly, throughout my earning career one thing I never changed was my lifestyle. If I made $60k in my best year at Coca-Cola or $36k in my best year at Batzner Pest Management, I was living the same way, saving the same way, and investing the same way.

I even took time off frequently between jobs. In fact, between Nestlé and Batzner, I took nearly two years off.

Because of my investments, my bottom line changed little. My money was making money for me, and while it may not have been a period where I was necessarily getting ahead at the same rate as before the hiatus, I was still not going backwards.

And because despite the lack of new income coming in from a job, my money was still earning an income, and my lifestyle did not change much.

I will admit I did have to make some adjustments. But not unlike adjustments I had to make after I left Coca-Cola and took major pay cuts to do that. I was always viewing money not as a crutch or a limitation, but rather as an opportunity. 

If I look at my entire lifetime to date W-2 wages, from 1989 to 2022, according to my Social Security statement, my lifetime earnings to date are roughly $975k. Breaking that down that's roughly an average annual earnings of $29,546 a year.

I won't tell you what's in the "bank" now. But I can tell you it is an impressive amount of money considering what I ever had to work with. And that amount that's there now could never have been achieved if I had accepted for myself, the generic responses I get now when I talk about money or opine about it.

I lived on paltry wages and saved and invested them. I held a long-standing belief that opportunity is there for anyone who wants to take the time to learn about them, understand them, and exploit them as opposed to ever telling myself that I was the one being exploited.

In other words, rather than make excuses, I took action. I never once was able to allow myself to be convinced I was the underdog and doomed to poverty by the system or by circumstances not necessarily in my control.

I instead made my own circumstances and controlled my own fate and dictated my own financial future. I took hard the stance, no one can stop me from achieving what I want, because I have seen others before me do it. I always saw the possibilities. 

In no way was my desire to ever become a victim of circumstance or blame others for financial issues I may have had along the way. My financial existence was mine in the making, and mine to determine. If I took a job that paid a wage I didn't like, it was never once thought to be the responsibility of my employer to kick more money into my paycheck. It was my responsibility to kick more money into my paycheck by making decisions to increase my wages or wealth through finding a better job or making decisions about money I was already making to increase its value or worth.

When I write about or opine about money, I am doing so from a point of view of someone who never made much money but was able to build wealth anyway. It's part of the reason I am so strongly opinionated about it. It's why I get a little hot under the collar when someone says to me, "Yeah, you just say that because you have money."

You're just another rich guy lecturing the poor.

But I wasn't always that guy. I was the other guy. The guy who averaged under $30k a year who got somewhere despite it. Do you want to call $30k a year a decent wage? Hardly. And again, I lost ground several of those years, taking time off between jobs. Living off investments and making no income. And despite low wages and year-long hiatuses, still made my way through it. Still walked away with more money than I left off with.

The bottom line is that if you want to be a victim, that's a choice. If you want to allow yourself to be limited financially by circumstance, that's your choice. If you don't want to participate in the opportunities everyone has to get ahead, that's also your choice.

But it's not the rich guy's fault. It's not the cheap boss' fault. It's not societies fault. It's not the government's fault. It's not wage disparity's fault. It's not rich business owners or shareholder's fault.

It's yours.

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Retiring Early Is About the Little Things

Most of the time when we think of saving money, the word 'sacrifice' comes immediately to mind. And while it is true that starting the process of saving money may require some of that, the end goal is to accumulate the money by making small changes in the short term so that money is more readily available down the road for life's little pleasures, and having more freedom to pursue them without robbing yourself in the short term to enjoy them.

It is important to identify what those small changes are in order to maximize them. It may be as simple as cutting out that daily coffee at an expensive coffee shop, or even cutting out the K-Cups, or even the higher end premium coffee beans or blends we may buy. Switch to Folgers or Maxwell House, or even a store brand so long as you can stomach it. Maybe keep a package of the better stuff for a weekend treat.

Other things that can be cut-down may be those expensive energy drinks. If nothing else, don't buy them at gas stations where the price is usually ramped up. Buy them at your local grocery store, and by all means look for sales if you really can't bear cutting them out altogether.

Fill water bottles from your tap before you leave the house. How bad is tap water really? It's really just a mind over matter thing in all honesty. You can do the same with soda on the run. Buy the soda in 2-liter bottles and fill smaller bottles before you leave the house. A 2-liter bottle costs about the same as a 20-ounce bottle on the run, so you are actually saving quite a lot of money on this doing it this way.

There a number of things, if you examine closely enough, you can probably live without, or at least curb to save a little bit of money. I could make a ton of suggestions. Most of them are even likely to be cliché and very well known, or even obvious. The key is to identify for yourself what is important and what is not in your daily spending habits. And again, keep in mind that what you should be examining are the little things.The nickle and dime stuff. Not necessarily the bigger things.

Okay. One other small suggestion before I move on; start the habit of slushing in your checking account.

What is slushing? It is sort of like the idea of tossing your loose change into a coin jar to cash in later. Simply round up any transaction you make out of your checking account—if you do an annual audit or reconciliation of your checking balance you should be able to determine how much you have slushed and be able to make a good decision about what to do with it.

So what do you do with any savings? It is important to put that money you are not spending to work. I will tell you now it is best to avoid putting the money into a savings account since generally speaking, you earn so little interest it is simply not worth it. Besides that, the key to building your money and creating more value is by beating inflation. Something a simple savings account, and nowadays even a CD, simply will not do.

So, you want to have your money growing in the markets. Even with the ebb and flow of the stock market, history has proven time and time again without waiver that over time, the markets always grow. And if your money is in the market, so will your money grow. But, you do not need to be Warren Buffet in order to achieve a respectable gain on your money. Putting your money into a simple fund that tracks the S&P 500 has always been a good, sound place to put your hard earned, and well saved money.

I do recommend learning all you can about the markets since those in the know do better over time. But the idea here is just to get you into something simple that will provide a better bang for what savings you are able to muster.

The key here is two-fold. You are trying to retain as much of the money you earn today as you can in order to have more of it tomorrow and into retirement. These days I use my money for both of those things. Income replacement, and retirement funding. At some point, having saved and invested over time, it is not so much of a surprise that what you earn in dividends may meet or beat what your actual paycheck is. And once this is accomplished, this is what I mean by putting aside those little things today to enjoy them (and actually be able to afford them) once you have accumulated enough money that it becomes a virtual cash gifter that just keeps on giving.

Haste makes waste is something most people don't apply to money matters. But hastily buying that latte today will surely waste an opportunity to put $5 to work today that could be worth $10 in eight years based on the track record of money doubling in the markets about every eight years. When you start thinking about the dollar here and the dollar there, and what those dollars are worth over time, and how much they earn in dividends and other gains, it starts to make perfect sense. And even should be a little bit exciting.

One last thought, pertaining to the slushing. So, you might say, "But I don't use my checking account.I charge it," to which I would simply say—

If you had money you would not have a need for the credit card, and may be just one of the other little things keeping you away from getting beyond just working for your money and living paycheck to paycheck.

What Job Loyalty Means To Me

The short answer? Only a fool will allow himself to be beholden to anyone for his livelihood. I think of a job like I think of a business. It will make decisions that are imperative to keep the business afloat, and growing, regardless of how that affects the people in the business. That's just smart business and really nothing personal.

Don't get me wrong. I will continue to stay with any company that is doing all of the things that are right for maintaining my own business. That is, having the ability to pay my bills, having the ability to enjoy upward mobility, and having enough free reign to pursue my personal interests as it applies to money and ultimately my livelihood, present and future.

My boss is a jerk is not necessarily a reason to leave a company any more than my boss is a really nice guy is a reason to stay with a company.

For me it boils down to one question. Does the company have the meat to allow me the ability to get where I want? If the answer is no, then just like a business will decide that having 500 employees is not beneficial to the bottom line and reduces their workforce to 400 at the expense of 100 people now out of a job, deciding to leave a company behind is simply the right business decision regardless of any other factors, if it is determined that the company that you work for is stifling your ability to meet your own  personal business' needs.

When YOUR business affects the health and stability of MY business, it's not about loyalty. It's about doing what's right for the health of MY business.

No business I have ever heard of longs to have its doors shuttered just because it wants to be loyal to someone or something.

I am not loyal to a company. I am only loyal to my business. And as it should be, just as much as the company I work for is not loyal to me, but to its business, I should be loyal to my business.

You cannot and should not ever consider yourself a simple employee. And moreover, you should never allow yourself to become a simple employee. In  other words, you must make it your primary goal to afford yourself the ability to become an individual business within the framework of any company you work for, and thereby afford yourself the ability to make decisions about how you proceed based on what you can do as opposed to what you must do.

Why do people stay in jobs that don't have the meat? The simplest answer is because they have put themselves into a position to need their employer to support at least the continuity of their own personal business and equate that to the idea that they are being loyal to an employer that is taking care of their needs. At that point it really isn't about loyalty. It's about simple survival. But some people will mistake that as being taken care of by their employer to maintain the status quo, and thereby will take whatever comes to them.

Most of the time, people are just getting by. Your own personal business is being sustained, but it's on a treadmill, your business is running in place, and at any moment the belt can break and you will be sent reeling onto your hindquarters with egg on your face.

In this sense, one is more like a slave to their job and to their company than an individual person able to decide for himself or herself what the best next step is in expanding their own personal business. That is a hugely dangerous and foolish position to be in.

I work for no one except for myself. Plain and simple. In reality? I have no boss other than myself so long as I understand the needs of my own personal business and the ability of the company I work for to have the meat to allow me to do what I need to in order to make my business a winner.

The moment that I decide that is not the case, I walk. Regardless of the inconvenience to the company I work for. Regardless of the consequence of the people I worked with. Regardless of the impact of my decision on the livelihood of others. It is a business decision that is made with regard to the needs of my business, and nothing else.

Nobody else, and no other business matters except my own. And that is exactly the way it SHOULD be.

Loyalty to a job means to me that a person is in need of their job. Not in control of their own future, their own destiny, and not in control of the future expansion and growth of their own personal business.

The old saying that a fool and his money will soon be parted sort of applies here. If you rely on being loyal, you are likely leaving opportunity, and potentially money as well, on the table. No successful or smart business ever worries about who gets hurt in the process, and certainly they don't worry about competitors who get taken out either. They do what is right for their business, and so should you consider your own personal business above all else.

However harsh it may seem, loyalty to anyone but yourself is simply a good way to ensure that others around you will thrive while all you get to do is survive. In essence, you will forever be beholden to someone else for your livelihood.

It may seem selfish. But at the end of the day any smart business is in business to become a powerhouse and grow and make money. If you think of yourself as a business, then it just makes sense to pursue your needs above the needs of all others, including the company you work for.

A boss it a title. A business is an entity. And where I come from? A business trumps a boss. The only time a boss trumps a business is when he is allowed to do so. I choose to be a personal business and trump my boss. And a boss only has power when his business trumps the business of the other personal businesses around him. If the businesses around him are strong and powerful, concession is the right order of business. And then the reality becomes that what is actually taking place is partnerships.

To my mind, loyalty is a fool's game, pure and simple.