How Much Is a Crack Worth?

My neck is starting to get better, thanks to my chiropractor. I'm finally able to turn my head to the side (though with much pain). A conversation I had with a friend sparked today's post. Here's what he said: "I can't believe you'd pay a chiropractor 50 bucks for something he can do in 5 minutes. What a rip-off!!!"

That's an interesting perspective. What is a chiropractor worth? My treatment did cost $50, and he did, in fact, only take 7 minutes to perform the adjustment. That means I effectively paid him $430/hour for his time. Is a chiropractor $430/hour?

Trick question; it's irrelevant. I don't pay a chiropractor for his time; I pay him for the impact he has on my life. I don't care if it took him 7 minutes or 70 minutes; I walked out of his office with more function and comfort than when I walked in. So yes, it's 100% worth $50 to me!

This is the problem with so much of how we look at business and culture. We try to judge everything and everyone by the lowest common denominator. How long did it take them? How much did the inputs cost? What are the business's overhead costs? What's the embedded profit per item, and in my skewed opinion, is it reasonable? How many years of education/training did it take for them to perfect their craft? It's all rubbish. None of it means anything.

Once in a blue moon, a prospective client will ask me to break down the number of hours I plan to spend on them to justify the price of my coaching package. In that moment, I immediately know they aren't the right client for me. I'm selling them life change, not my time. The moment they try to boil it down to my time on a per hour basis, I know it's not a good fit.

You probably live on both sides of this. As a consumer, you make hundreds of purchase decisions every week. Instead of trying to boil something down to its lowest common denominator, simply ask yourself if the outcome of purchasing this product is worth the price. It's that simple. In my case, it's not asking if paying my chiropractor $430/hour is a reasonable price, but rather, if $50 is worth my ability to function in life. Yes, please take my money, Mr. Chiropractor!!!!!

You also live on the side of the seller. Everyone is selling something. Whether you're a business owner or an employee for a company or organization, you're selling something. I strongly encourage you to spend less time focusing on the features and benefits of your product/service and more time on the impact your product/service will have on someone's life. People don't care as much about features and benefits nearly as much as they do about how their life will be better as a result of purchasing from you. Tell them. Show them. Shine the light on impact. That's ultimately what people want......and what people need.

Is my chiropractor worth $430/hour? I don't know, but I can confidently tell you that $50 is a steal of a deal for me to be upright and functioning. Impact. Always impact.

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Closer Than You Think

I recently stumbled upon a few surveys that were beyond concerning. Here are the headline numbers from each:

• 69% of American workers believe they could work until retirement age and still not have enough money to retire.

• 68% of Millennials don't believe they will ever be able to retire without receiving a meaningful inheritance.

Neither of these is surprising, but still concerning, nonetheless. Americans, on the whole, are tremendously underprepared for retirement. I feel that way on a family-by-family basis, and the average and median retirement savings numbers also back it up. We are woefully prepared for the next chapter of our lives, which is a deeply concerning trend.

However, I have good news for you today. Strike that, great news!!!!! I have great, amazing, fantastic news for you today. If you've been trying to make progress on the retirement front but feel like you're not getting as far as you had hoped, you're probably closer than you think.

Last week, I met with someone seeking investment advice. In his words, "I've been saving for nearly a decade, and all I have to show for it is $100,000. I'll never get to a million. I don't even feel like it's worth trying anymore."

My response: "Congrats, you're a third of the way there!!! Keep going!"

Him: ..............

Now, it's obvious that $100,000 is not 33% of $1M. Any idiot can tell you that. From a sheer dollar perspective, he's only 10% of the way there. However, investments (if done right) don't work on a linear scale. In the financial world, we call it compounding. When our money is invested, we make money on our money. Then we make money on our money plus the money we previously made. Then we make money on our money plus money on the money on the money. It's a cycle that speeds up over time.

Here, let me show you with an illustration. This is an example where someone invests $500/month and earns an average of 9% per year over the long run. We obviously won’t earn a consistent 9% over time (it will be a bumpy road for sure), but this makes for a useful visual:

As you can see, it takes a little more than 10 years to accumulate the first $100,000. That was the hardest part, and often where people get frustrated and give up (i.e., the studies referenced above). However, because of the power of compounding, the second $100,000 only takes five-ish years (half as long!). The third $100,000, only 3.5 years. All the way up until that last $100,000, which takes just over a year to complete. From a time perspective, you're halfway to your $1M goal by the time you hit $200,000. Crazy!

This is a concept that's hard to wrap our minds around, but is so freeing once we do. I do my best to beat this into the head of anyone who is feeling discouraged by the process. It's so easy to give up along the way if we don't understand just how powerful this compounding thing will eventually become.

Don't be discouraged. Have a sense of urgency, yes, but don't feel defeated. Keep pushing through, and let compounding do the heavy lifting for you.

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It’s All a Game

Social media went wild a few days ago when someone posted a video while walking around a Target store. Specifically, he was shopping for Christmas trees. One particular tree was priced at $122.50, but underneath, it read, "Reg. $175 | Save $52.50."

Oh wow, this is a great deal, he thought! Then, he spotted something else. Each physical tree box had a little white sticker on the exterior. When he peeled back the sticker, it read "$120."

To summarize, Target is telling its customers that this tree regularly sells for $175, but it's going to sell it to you today for a screaming deal at $122.50. Meanwhile, the company that manufactured the tree is stating on the box that the tree should cost $120.

The collective was furious. Theft, fraud, immoral, ripping us off, evil corporations......the list goes on. Needless to say, people were upset. I, however, feel differently about it. I call it marketing. Target (or insert any other retailer here) can say whatever it wants and price it whatever it wants. It's our job, as consumers, to decide if said price is worth the value it brings to our lives. If Target wanted to price that tree for $10,000, they are free to do so. They probably wouldn't sell many (or any!), but that's what the free market allows. On the flip side, they are also free to price them for $25. Doing so would likely result in an immediate sell-out, but again, that's their business. If they wanted to say that the tree is regularly $500, I suppose they could have done that, too. To me, that's the entire business model of Kohl's.....IYKYK. Companies have been employing these tactics for decades......maybe centuries!

Today, as we experience Black Friday, the official start of the Christmas season, I encourage you to ignore the noise. Try to push aside all the mixed messages you're receiving from companies. Everything that's communicated to you is to achieve one goal: Motivate you to purchase their product.

But when we look at every opportunity through the lens of cost vs. value added, we can make a clear and confident decision. I don't care whatsoever what a product normally sells for. All I care about is whether $x price is worth the y value a potential purchase will add to my life.

Don't be fooled. Don't be discouraged. Don't be manipulated. Don't be influenced. If we go into these types of environments knowing their motivations and the tactics they might use to trigger our actions, we'll make wiser, more prudent decisions.

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The $10 Fast-Food Burger

$10 for a fast-food burger?!?!

As I was on my way home from the cattle ranch last night, I knew I needed to stop somewhere for food. I had decision fatigue after a long week, so my brain wasn't working very well. Then, I saw it. There was a Hardee's approaching on my right. I hadn't been to Hardee's in more than a decade, so it seemed like a decent opportunity to break that sad streak.

"I'll have a Frisco burger. A double, please."

As I processed my payment and collected my receipt, it dawned on me that I had just purchased a fast-food burger for $10. $10? What in the world!

A few minutes later, I hopped back in my car with my overpriced fast-food burger. Probably not a wise decision on my part, but it was quick and it was food. Oh well, I can't win 'em all. Then, something changed. I opened the wrapper and took a bite. Whoa! For being a fast-food burger, that's one heck of a fast-food burger! It was delicious.

In a matter of 30 seconds, my posture shifted from "I just made a bad choice" to "Please, take my money, Hardee's."

It was a classic case of price vs. value. On the surface, the price seemed expensive. However, once I was able to rationally compare the price to the value, it felt fair.....more than fair.

For as often as I write about the importance of always comparing cost vs. value, I almost fell into the trap of judging something solely based on price. That delicious cheeseburger was a fantastic reminder to always keep this concept in perspective.

It's a small and silly example, but that cheeseburger is a great metaphor for our day-to-day lives. We come and go, making decision after decision. If we're not careful, we can easily make choices based on price, ignoring the value. I'm guilty of it, and I'm sure you are, too. So, this weekend, as you venture out into the world, always remember to weigh the value as you're making decisions; you'll thank yourself for doing so.

Oh yeah, and maybe swing into Hardee's for a Frisco burger!

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Impact, Not Features

I was talking to a friend about her business. She has a unique business model and sells an even more unique product. On the surface, it's not really my jam. I'm not particularly interested in this field, and it doesn't resonate with me on any emotional level. However, my role wasn't to love her product, but rather to add value to her business in helping her see things more clearly. 

I asked her to explain the product. She began sharing about all the features and what a customer would get for the money. Interesting, indeed, but how much does it cost? When she told me the price, I immediately grimaced. Ouch, that feels expensive! I asked her to shift gears. Instead of telling me what a customer would get, I wanted her to explain how it would impact someone's life. Oh, now I was interested! She shared some really interesting perspectives about how a customer's life would improve because of this product. Then, she added, "And they will be able to use it for the rest of their lives." 

In that moment, her product's questionable price felt like the world's biggest bargain. You mean to tell me that for only $____, my life will be positively impacted in XYZ ways and it will be so for the rest of my life?!?!? Sold! Where do I sign up? I was hooked. In just five minutes, this went from a product I have no genuine interest in to one I NEED in my life. I’m completely enthralled by what she’s doing!

If you're a business owner, take note of this paradigm shift. However, I don't want to expound on this from a seller's perspective. Instead, I want to flip the script and focus on the buyer's experience. As consumers, we too often get bogged down by the features and benefits of a product. We look at the price and compare it to the features, then walk away. If we were wise, we would instead look at products and services through the lens of impact. 

How will this product or service impact my life? What difference will it make in my journey? How will it make my life easier? How will it make me more productive? How will it improve my health? How will it increase my longevity? What joy will it add to my day-to-day life? 

My experience is that when we look at prospective purchases through this lens, it completely transforms how we measure cost/benefit. What might have otherwise felt expensive can quickly become a bargain. Conversely, what might have otherwise felt cheap can quickly become a ripoff. 

I feel like most of my personal purchases fall into what culture would classify as "wasteful." However, each one is specifically curated to maximize the impact on my life. I don't buy much for myself, but when I do, the value it adds to my life far outweighs the cost.....even if the cost might seem higher. 

As consumers, we should focus far more on impact, and much less on features. If we can make that mental shift, we can begin playing an entirely different game. 

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The Cost of Being Human

I received dozens of messages on the heels of my recent credit card article. In the post, I highlighted how 46% of credit card holders (approximately 100 million people in America) don't pay off their balance every month. In other words, nearly half of the people who use credit cards carry debt due to the use of said credit cards. This is a pretty shocking statistic considering every single person who uses a credit card claims they never carry a balance.

I have to admit, though, that if 46% of people carry a credit card balance, it means that 54% of people don't carry a credit card balance. If you live in this camp, chances are you're more than happy to throw that fact in my face right about now. I've written about this topic before and podcasted extensively about it, but there's a sneaky little behavioral science quirk that plays a bigger role in our lives than we'd like to admit.

Even if we never pay a single penny of interest or carry a balance from month to month, we're still subject to the psychological consequences of disconnecting the purchase from the payment. When we buy something today that we don't actually pay for until upwards of a month from now, it impairs our decision-making. This is a scientifically proven concept. In fact, studies have shown that we spend 10%-30% more when using a credit card than we would have if we used cash. Further, we're more apt to make purchases that we wouldn't have made at all. Ouch!

Here's an interesting note I received from a blog reader who has successfully managed to use a credit card for many decades without carrying a balance or accruing any interest:

"I always thought I was using our one credit card responsibly because we paid it off every month. That is, until my wise daughter suggested I look at my list of credit card purchases and see how many I would have made if I had to pay cash for them. I realized I made a lot more impulsive purchases when I use a credit card, even though I never carry over a balance from month to month."

This. This right here. She's so, so right. I applaud her humility and vulnerability in this statement. You know how I know it's true? She's human, and we humans have this psychological quirk. That doesn't mean we're dumb or irresponsible......we're human. It doesn't mean we're being reckless or foolish.....we're human.

I'm not mad at people for using credit cards. I don't look down upon them. Yes, people can still be successful when using them. At the same time, my mission here is to open people's eyes to the unseen costs and hidden psychological forces of utilizing this little piece of plastic technology. Nothing is free, as they say.

I, for one, will continue to live a life free from the behavioral and financial consequences of credit cards, and I'd encourage you to do the same. Either way, press on and have a great weekend!

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The Oz Next Door

Oh man, I took some HEAT heat after yesterday's post. Yes, some productive feedback, for sure. But the heat was hot. One particular criticism caught my eye:

"You throw around all these statistics, but there's literally not one person in my life who is struggling with credit card debt."

I'm sure you've seen The Wizard of Oz; it's a classic! My favorite scene in the movie is after 93 minutes of being made to believe Oz is so great and powerful, the curtain is pulled back to expose him as a fraud. It turns out he used smoke and mirrors to portray himself as this great and powerful wizard, when the truth was he was a frail old man.

This might come as a shock to some, but you probably have an Oz living next door to you. You probably have an Oz in the cubicle next to you at work. You probably have an Oz in your family. That fancy-looking couple at church? Possibly an Oz. The "rich" person you tend to get jealous of? Possibly an Oz.

In my work, I have the privilege of seeing behind the curtain of hundreds of households. The world sees what it sees, and in many cases, they see a great and powerful wizard. Unfortunately, what's really behind the curtain is a proverbial frail old man.

What appears to be wealth is really debt.

What appears to be freedom is really slavery.

What appears to be success is really destruction.

What appears to be wisdom is really tomfoolery.

What appears to be sturdy is really fragile.

I could tell you story after story after story of wealthy-looking people who appear to be the definition of success, but are on the brink of utter destruction.

I've witnessed so many tears from people who make $500,000+ per year, live in mansions, drive luxury vehicles, have a social media timeline full of exotic travel pictures, and have status in their community.

In many of these cases, credit cards aren't what directly propelled them into a financial spiral. Their car loans, lifestyle creep, and hefty mortgages did the initial damage. However, almost every one of these situations eventually results in brutal credit card debt. The credit cards become the symptoms of destruction, and the boat anchor that prevents the ship from ever floating again. They can always sell a car or a house, but there are only two ways out of credit card debt: grind it out or file for bankruptcy. It's the silent killer that's draining the hopes and dreams of an entire generation.

You absolutely know dozens of people who are deeply impacted by credit card debt; you just don't know which ones. They are hiding behind their curtains, hoping to maintain their appearance of being a great and powerful wizard.

Moral of the story: Never be jealous of the people around us. They might be an Oz. Instead, live with a posture of contentment and humility, pursue meaning, and never allow the desire for more to pollute your peace.

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Just Pay It Off Each Month, They Say

Credit cards are our best friends... until they become our worst enemies. Unfortunately, we never know when that tipping point will come. One minute we're fine, and next our financial life is ruined. I've been on a crusade against credit cards for nearly 15 years, and there's no better topic to stir up the hate train than to discuss my disdain for them.

First, no, I don't use a credit card. I used one from age 18 to 30. Then, after much research about the cold, hard data, the predatory nature of the product, and the behavioral science implications, I drew a line in the sand and decided to permanently ban them from my life.

A quick FAQ:

• What do you use if you don't have a credit card? We use debit cards.

• What about the risk of your card getting stolen? Our cards have been stolen multiple times. It's annoying, but you aren't liable for loss.

• What about travel? You NEED a credit card for travel. I've traveled to more than 30 countries with only a debit card. It works great.

• Don't you need a credit card to book a hotel room? No.

• Don't you need a credit card to rent a car? Some companies, yes; other companies, no.

• You use your debit card for online shopping?!?! Haha, yes. Every single day of my life.

• Don't you want to build credit? No. I haven't had a credit score since 2015.

Here's one of the primary arguments FOR using a credit card (primarily to collect those sweet, sweet points): "Just put everything on a credit card and pay it off every month. Just be responsible!"

The truth is, that's not what people do. In theory, yes, that's a great idea. However, in practice, the data shows something much different. My coaching experience already tells me this is true, but data recently released by the Federal Reserve paints a clearer picture.

• There are currently an estimated 268 million adults living in the United States.

• 81% of those adults, or 217 million people, own a credit card.

• Of the people who own a credit card, 46% (100 million people) carry a balance each month.

"Just put everything on a credit card and pay it off every month. Just be responsible!"

This principle works really, really well......until it doesn't. And today, unfortunately, 100 million adults in the U.S. are (secretly) living in the "until it doesn't" reality. This is ripping families and lives apart!

"Well, it must be the young, irresponsible people who are being stupid with their credit cards."

• The demographic most affected by carrying credit card balances is 45-59-year-olds, with 54% of cardholders carrying a balance from month to month. "Only" 44% of 18-29-year-olds carry a balance.

"Well, if people made more money, they would pay off their credit cards instead of carrying a balance."

• Even in households earning $100,000 or more per year, 38% of cardholders carry a balance from month to month.

Credit cards aren't a math problem; they are a human problem. Credit cards aren't a responsibility problem; they are a psychological problem.

Something to think about today.

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A Good Ol’ Fashioned Audit

Never underestimate our human instinct to practice the status quo. It's so much easier to keep doing what we're doing, even when doing something different would be in our best interest.

Nowhere is this concept more applicable than when I'm meeting with new clients. While my client might have been doing the same things for the past decade, I challenge every category in their budget. It can be a startling moment for people. Yeah, I understand you've been paying $25/month for xyz service for the past 15 years, but does it add more value today than it's costing you?

You wouldn't believe how many expenditures in our lives fall into the camp of not being as valuable today as they once were. Yet, we keep them around out of habit (and the path of least resistance). Here's one example. One of my clients is paying $80/month for a service. Upon asking them about it, they said it's something they've paid for about 12 years......so, naturally, it should stay. I asked a few more challenging questions. Turns out, they don't utilize the service nearly as much as they used to. Meanwhile, the price is nearly triple what it used to cost. If they are using it half as much as they used to, and it costs three times as much as before, it's only 1/6 as valuable to their lives as it once was. Through that lens, it became the world's easiest cancel.

After going through this exercise across their entire financial life, this couple managed to cut nearly $400/month of expenditures without giving up much value. Overall, huge win! A good ol' fashioned audit can be a breath of fresh air.

As the year comes to a close, I challenge you to perform a good ol' fashioned audit on your finances. Seriously consider what's adding value, and what's not. It's not about spending less, but rather ensuring that you're getting as much value (or more) than you're paying. Some cheap expenditures are rip-offs, while some expensive expenditures are bargains. It's an interesting exercise, and one I think you'll be grateful for engaging with. Happy hunting!

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So?

One of my friends is at a crossroads. On one hand, he absolutely hates his job. It's soul-sucking and has repeatedly beaten him down for the past decade. On the other hand, he has some very clear and definable ambitions. He knows exactly what he doesn't want to do......and he knows exactly what he does want to do. There's one thing that stands in his way, though. "What if I'm not good at it?" Fear. More specifically, the fear of failure.

My response was concise: "So?"

We humans are so hard-wired to avoid failure that we'll willingly endure decades of misery in order to prevent ourselves from failing. In my opinion, the fear of failure is the number one reason why most of us don't pursue the things we want most.

What if nobody buys my book?

So?

What if I don't make the team?

So?

What if she's not interested?

So?

What if they don't hire me?

So?

What if the business doesn't take off?

So?

I, too, used to fall in the fear-of-failure camp. Then, something happened. Instead of asking myself, "What if I fail?" I started asking myself two different questions:

• "What's the worst that can happen if I fail?"

• "What if I succeed?"

In most cases, the worst-case scenario of failure had less to do with actual loss than it had to do with bruising my own ego. It was a pride play!

On the flip side, the answer to my "What if I succeed?" question was usually far more amazing than my "What's the worst that can happen if I fail?" answer was terrible.

This eventually morphed into a new conversation that would play out in my head each time I experienced self-talk.

• "Negative blah blah blah."

• "So?"

• "More dumb negative blah blah blah"

• "So?"

The power is in the "So?" In a world that not only tells us we can't, but also that we shouldn't, I think we should change it to we CAN and we SHOULD. Yeah, crappy things could happen, but so?

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A Heavy Anchor

A huge shout-out to the couple that granted me permission to share this story. I pray good comes from it, and that my harsh-ish words can move the needle in their marriage!

Picture this. I'm sitting face-to-face with a couple. They are stressed, frustrated, and borderline depressed. The tension in the marriage is palpable. You could cut the desperation with a knife. Finances are killing them! Specifically, a lack of income is killing them.

Oh yeah, I should probably add one more piece of information to the picture: Their monthly take-home income is $22,000. Yeah, you heard that correctly. $22,000/month......every month. And according to them, there's simply not enough money to keep the train on the tracks. Or, as they put it, "It costs a lot just to survive these days!"

At one point in the conversation, I pointed out to them that just their monthly housing cost (plus utilities) rivals what most people in their town make in a month. They looked at me like I had an alien growing out of my forehead. Again, I tried to put into perspective just how much money they make. They continued to stare at the alien apparently bursting from my face. I explained that the client I met with earlier in the day (who coincidentally lives 1/4 of a mile from them) has a total take-home income of about $7,000/month (and is thriving!). The wife looked like she was either going to have an aneurysm and/or hop over the table to stab me.

I don't know about you, but most people don't even dream about making $22,000/month take-home. In fact, most people probably wouldn't even know what to do with that type of income. Yet here I was, talking to a couple who were lamenting that $22,000 isn't enough monthly income to even survive.

I was getting nowhere. I asked them how much money they made early in their marriage; "Probably $4,000/month." Well, that's a bit different from their current situation. "But the world has changed a lot since then." Fact check: That was seven years ago.

Here's the harsh truth. Unless we're willing to live with humility and contentment, there's no amount of income that can satisfy us. The problem with more is that every time we get more, more is still more.

I offered a few suggestions for how this couple could create financial margin. In some families' situations, it can be challenging to open up much-needed margin. This family, however, has a treasure trove of options for swiftly and materially lightening the tension in their finances. Want to know where they landed? The husband is going to pick up some extra work on the side (nights and weekends) to see if they can make a few thousand more per month.

Here's my promise to them. If they stay on this course, we'll be talking a few years from now. They will be making $25,000-$30,000 per month, yet feel just as broke, stressed, and resentful as they do now......if their marriage survives.

They deserve better than this. You deserve better than this. We all deserve better than this. Don't let the curse of more pull you down.....it's one of the heaviest anchors ever created.

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Rock Bottom

There's a saying I've been using for the last decade: "Okay is the worst place to be." There's nothing worse than being okay in xyz area of life. Okay isn't good enough to thrive, but also not bad enough to change. Slotting ourselves in the okay lane is a first-class ticket to stagnation....and eventual slow-burn failure.

I see this play out over and over again with people and money. People who are doing okay are the ones who will end up in the worst places. For better or worse, rock bottom is the blessing of all blessings. Hitting rock bottom is typically the catalyst that triggers massive change. You know who doesn't hit rock bottom? People who are doing okay.

There's one particular area of Northern Vessel that we've done okay with for the past three years on the operational side. Never good, never bad. However, it's one area I've been standing on my soapbox, yelling about how we need to step up our game. Since we've been stuck in okay land, there's no chance of making meaningful change. Something awesome happened this week, though. We hit rock bottom! We finally reaped the consequences of not handling ourselves with excellence. We screwed up, and we're paying the price. Okay quickly turned to rock bottom, and guess what (!?!?), we're ready to make some meaningful changes. As always, rock bottom will allow us to transform this aspect of our business and thrive like never before.

I never root for people to fail. However, I feel terrible for all the people in my life who live in the land of okay. I want so much better for them, but okay is their worst enemy. I never celebrate people's rock bottoms, but I rejoice in the transformation that's on the table when it does come.

I don't wish for you to experience a rock bottom, but I believe you deserve far better than just okay. I don't know what area of your life I'm talking about here, but you do. You absolutely do. Don't settle for okay, and please don't wait for rock bottom to be your wake-up call. Rock bottom will certainly wake us up, but let's not require that outcome before stepping up our game.

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Never Enough Income

Do you ever think to yourself that xyz issues would be solved with more money? If only I made $1,000 more per month! If only I made $2,000 more per month! There are so many financial priorities, and it never seems like there's enough money to go around. First, yes, if our basic needs are not yet financially met, more money will absolutely help close some critical gaps. What I'm about to talk about is the scenario in which basic needs are met, but other financial desires are at play.

I recently had this conversation with a client. This couple makes more money than ever before, yet at the same time, there doesn't seem to be enough. How can that be?!?! How is it possible to make twice as much as we once did, yet still not have enough?

Here's why. There's never enough income. Our human instinct is to conceptualize how making x more dollars per month would magically fix it all. From my experience, however, that line of thinking is futile. People who make $75,000 think more is the answer. People who make $150,000 think more is the answer. People who make $300,000 think more is the answer. People who make $700,000 think more is the answer. Believe it or not, but I've worked with people who make $3M per year who think more is the answer.

There's never enough income. I know it's a depressing thought, but I have good news. While we can't fight our way to success by driving our income upwards, there is one thing we can control. I once heard it said this way: "Wealth is the difference between what we have and what we want." In other words, if our wants keep going up and up, there's never enough money to satisfy the craving for more. On the flip side, if our wants are kept in check (i.e., contentment), what we have is enough.....more than enough.

This is the very reason why families who make $60,000 can feel wealthy while families who make $400,000 can feel financially stressed. It's not about what they make; it's about what they want.

In my 20 years as an adult living in the real world, I've learned that my financial well-being is far more influenced by my contentment (or lack thereof) than by how much money I make. It’s a humbling reality!

What about you? Are there areas of your life that you could/should want less? Is your hunger for more eroding your contentment? What steps would you need to take to widen the gap between what you have and what you want? It's a worthwhile endeavor, and fortunately for all of us, one we can absolutely control.

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Grateful For That Kid

Yesterday's post highlighted the inevitable reality that someday, future us will become current us. What seems old to us today will eventually feel young. Included in my post was a cautionary tale from an old friend who is learning this harsh reality in real time. The post ended with the following: "Yes, you're younger today than you will be someday. At the same time, however, 20 years from now you'll still be younger than you will be someday. Current you is always the youngest version of you. Please help yourself help yourself. Your future self will thank you."

In a fun little twist of fate, I had a related conversation with a client just hours after yesterday's post was published. This client, mid-40s, is in the process of making a huge life transition. Culturally, it's an odd decision. However, it's one this couple has earned through two decades of discipline and wise decisions. Here's an exact quote from the husband: "I'm very thankful for 23-year-old me."

I'm sure 23-year-old him had no idea what his life would look like in his mid-40s, yet at the same time, he respected future him enough to make some powerful, delayed-gratification decisions. Now, decades later, he's about to reap what he sowed. It's such a beautiful example of this concept.

40-something-year-old him isn't as young as 23-year-old him, but 40-something him is the youngest he'll ever be. And now, also being a 40-something, I too realize that being in our 40s often feels like being in our 20s. We feel young. We feel healthy. We know who we are. We know what we value. Life can be pretty dang awesome.

Now, this couple will spend the next season of their lives creating an entirely new reality that will forever transform their family. All because that 23-year-old kid had enough awareness and respect for his future self to live with wisdom and discipline.

No, we can't go back in time and get a do-over. I don't see any DeLoreans sitting in my driveway. However, regardless of how old you are, you're the youngest you'll ever be. You still have a chance to help your future self live the life they deserve. Please don't let them down.

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Turns Out Old Isn’t Old

Let's rewind the clock 20 years. It's 2005. Times are good. The economy is booming, and we haven't yet experienced the wrath and destruction of the Great Financial Crisis. I was 24 years old, new in my young career.

One of my friends was about six years older than me.....right around 30. Over drinks, we shared a conversation that I've periodically thought about for two decades. It's a conversation that might hit close to home for you. My friend was known to be impulsive, the proverbial life of the party. During one of our conversations, the topic of money came up. While I wasn't making the wisest of financial choices back then, I did understand one important concept: Investing for the future is imperative.

My friend had a different philosophy of life. In his words, we might die tomorrow, so we might as well have as much fun as we can now. And even if we don't die tomorrow, why wait until we're 50 or 60 to have fun, since we'll be too old to enjoy ourselves by then anyway.

Nearly twenty years have passed since that conversation. Guess where my friend is today. He's 50.....and healthier than ever. In his words, he's at the peak of his life. Just one problem: His 30-year-old self took that perspective seriously and thoroughly enjoyed life, leaving nothing for "old" him. Today, he sits at 50 and has no idea what his future will hold. Life is full of doubt, uncertainty, and stress. Will he have to work involuntarily forever? How will the bills be paid? There's not enough money to save for the future and actually enjoy life today.

I feel so terrible for him and his situation. He's between a rock and a hard place, and unfortunately, there's no redo button. That's the problem of having the attitude he had when he was younger. We ALWAYS become future us. Current me will someday become future me. A time will come when I am forced to live in the reality established by younger me. On one hand, that's the scariest concept in the world. On the other hand, it's so empowering.

Every day we wake up, we have the power to help future us. Each positive step we take is a blessing for future us, while each mistake is a curse for future us.

Yes, you're younger today than you will be someday. At the same time, however, 20 years from now you'll still be younger than you will be someday. Current you is always the youngest version of you. Please help yourself help yourself. Your future self will thank you.

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Rewriting History

What movie completely changed the way that you see the world? Have you seen any movies that fundamentally changed you? For me, there's one particular movie that messed me up in so many ways. Memento. This film was released 25 years ago and now sits at the #57 slot in IMDB's top-rated movies of all time list.

I don't want to share too much about it, as I suspect far less than half of our readers have seen it. If that's you, go watch it immediately! I just checked, and you can stream it for free on Amazon Prime. The entire concept of the movie is mind-blowing in and of itself, but at its heart is a concept that has long resonated with me: Our very human ability (and inclination) to rewrite history.

I recently spent time with a couple that is struggling. They've always struggled with finances, and money-related stress seems to be playing on repeat in their marriage. Every week, every month, every year. Stuff happens, and they can't get control of it.

Something interesting happened during the conversation. When I asked them to share what sequence of events led them to where they are today, they weaved together a peculiar story. It was a gut-wrenching story of misfortunes, unfairness, and bad breaks. Here's what makes their story peculiar to me. I knew this couple for the entirety of this 10-year stretch they were speaking about, and my recollection is much, much different than the story they shared with me. In my version of the story, each season of misfortune was triggered by a tremendously poor decision on their part. Yes, the pain and suffering they experienced aligns with my recollection, but the causes of said turmoil were a completely different story.

In my opinion, this couple rewrote their history. They didn't do it to lie or manipulate. Rather, their engineered story stems from an attempt (consciously or subconsciously) to soften the feelings of regret and resentment. It sounds wild, but I think each of us has a predisposition to do the same. It doesn't necessarily make us liars, but there's a certain risk in this behavior.

If we rewrite our history to soften our own personal responsibility, it creates the potential for us to repeat our own troubling past. When we don't face reality on reality's terms, we're apt to make the same mistakes again. When we don't force ourselves to experience the consequences of our own actions, it enables us to make more harmful decisions in the future.

This couple in front of me had a choice. They could face reality on reality's terms......or believe the rewritten history. If they continue to believe their rewritten history, there's very little chance they can overcome their behavioral and financial hurdles and end up in a good place. However, if they face reality head-on and commit to doing it differently going forward, there's no limit to the amount of beauty they can experience together.

I speak this concept as if it's easy. It's not. It's simple, but far from easy. However, some of the simplest things in the world are the most powerful. This is one of them.

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Hyperbole For the Masses

Plunged. Tumbled. Sank. Crashed. Tanked. The media has had no lack of hyperbolic words to describe what happened to the stock market on Friday. People are losing their minds! If you aren't aware, the U.S. stock market fell by approximately 2.7% on Friday. Based on the dozens of texts I've received since then, many people are anxious.

"Market Falls Off a Cliff," reads one international news outlet headline. If you're casually scrolling the web, what do you do with a headline like that? I'll tell you what many people do. They start to get scared. Is it warranted? Should people be worried? Is now a great time to be fearful?

Well, it depends on what your goals are. If your goal is to never see your account balance fall below where it is today, then yes, you should be terrified. However, if your goal is to end up in a good spot years or decades from now, no, you shouldn't be worried in the least.

One of my friends specifically asked about how badly the stock market got crushed on Friday. After all, the hyperbole used to describe those events makes it sound like doomsday. Please allow me to put it into perspective. After the market fell by 2.7% on Friday, we are down to a level that had never before been achieved since the Civil War.....until 9/11/2025. That's right. The price of the stock market today is at level that was an all-time high less than a month ago. Here, maybe this chart will serve as a clear visual:

This chart illustrates what the last five years have looked like for the U.S. stock market. That tiny little blip in the upper right-hand corner of the chart is Friday's "plunge." It's about as scary as a Halloween-themed show made for toddlers.

Will the stock market experience a far more significant decline? Probably. When will it happen? No clue. None of that is important, though. What's important is that we continue to practice the "do nothing" strategy and simply live our meaningful lives. Let the market be the market because the market is always the market. P.S., that's a good thing. We have the greatest stock market that has ever existed, and 155 years of proven data to back it up. Therefore, I love letting the market be the market because the market is always the market.

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My Collections

In yesterday's post, I confessed that I don't personally collect anything. Everyone around me seems to have collections, but my life is seemingly void of collectibles. Does that make me weird? Am I missing out? I challenged our readers to share their viewpoints and perspectives on collecting. I so much appreciate your insights.

After much consideration, it dawned on me that I do, in fact, collect things. However, instead of collecting material things like I used to when I was younger, my collections look different now. I'm not sure how I missed it so badly yesterday, but it turns out I'm indeed a collector. Here's what my collections look like:

• I collect memories.

• I collect experiences.

• I collect photos and videos.

• I collect trips.

• I collect countries visited.

• I collect food eaten.

• I collect sights seen.

• I collect first-time endeavors with my kids.

• I collect impactful moments with those whom I have the honor of serving.

I totally missed the mark yesterday when I was focused too much on the physical, and not enough on the intangible.Those things I listed above? I cherish them so much, and if I'm honest, I pursue them violently.

I recently read a study about why time seems to go faster as we age. Turns out, there's a scientific answer for it. Our brains measure time in significant events: first-time experiences, landmark moments, profound experiences, etc. When we're younger, we naturally have more of these moments in our lives. The world feels new and exciting. We're more likely to be adventurous. We have a childlike wonder.

Then, as time passes, that childlike wonder begins to fade. What once felt new and exciting starts to feel bleh. When I was a kid, I remember the astonishment I felt each time my family drove into downtown Chicago. The buildings, the lights, the sounds, the people. It was all so....intense! Today, though, it's a different experience. I took my family there a few weeks ago. This time, it was just a cool city. I still love Chicago, but the wonder has somewhat faded.

This is why it's so important for me to collect memories and experiences. The more often I approach life with a childlike wonder, the more significant events get seared into my brain. How has this panned out? The 20 years from age 18 to 38 seem like a blur, gone in the snap of a finger. On the flip side, the six years from 38 to 44, intentionally approaching life with this new mindset, have felt like two decades. I've had more monumental memories and experiences in the past six years than I did in the 20 years prior to that, combined. That's very cool to think about; that's very depressing to think about. But I'm going to focus on the cool here!

Collect memories. Collect experiences. Collect impact. The act of collecting that which is intangible is a tangible effort toward a more meaningful and enduring life. I'm not even sure if that last sentence makes sense, but upon 15 reviews, I'm gonna stick with it!

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As Simple As a Name

A few years back, one of my clients had a big, big dream. It was the type of dream that practically everyone in his life (but for his wife and me) told him was "stupid." It was "reckless," "irresponsible," and "selfish." In other words, he had a pretty awesome dream!

Like many people who pursue crazy dreams, it can be tremendously scary to walk away from a decent income and start over at something much lower. In this particular family's case, they would soon experience a 70% decrease in their monthly take-home income. Therefore, we needed to make a plan!

For each of the nine months leading up to the scary transition, the couple would set aside a chunk of cash in their emergency fund. After bulking up this fund, they would then be able to take monthly draws from it, as needed, to supplement their monthly income in the early stages of their new scary life.

One problem: the mere idea of drawing down their emergency fund felt terrible. As the husband put it, "I'll feel like I'm failing.....an emergency. I don't want my life to feel like an emergency." Even though that's what the money was supposed to be used for, he couldn't emotionally or mentally get over the idea of drawing down on his bulked-up emergency fund to feed his family.

Therefore, I suggested something ridiculous. "Change the name of the account." That's why they pay me the big bucks (haha!). They thought it was a stupid idea, but the conversation continued. If they are setting money aside for this very purpose, then drawing these funds as needed is the fulfillment of the dream. It's not a failure, but rather the realization of the dream! Therefore, I suggested they change the name of that account from "Emergency Fund" to "The Dream Fund."

While ridiculous, it's exactly what they needed. It completely flipped the switch from a behavioral science perspective. Instead of viewing the depletion of that account as a loss, they experienced it as the planned execution of the greatest adventure of their lives.

Fast forward to today, and they no longer have The Dream Fund. They made it to the other side of their scary transition, and instead of having a dream fund, they are living their best dream life. It hasn't been easy, but it's been one of the most meaningful endeavors they've ever experienced.

I'm so proud of them, and I love thinking about their story. Sometimes, it's as simple as a name. We humans are weird beings. We tell ourselves stories and twist around our own thoughts. We get in our own way and sabotage our own best interests. On the flip side, if we can hack our own behavioral quirks, we can get to the other side of a truly amazing life. Yes, it's ridiculous. But also, yes, it's awesome.

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Everything and Nothing

I was casually reviewing the finances of a young couple a few weeks ago; all normal stuff. Item by item, we checked off my list. Then, we got to savings. "How much do you have in savings?"

"We have $25,000 in our savings account."

"What is that account used for?"

"It's used for everything. We just throw money in it whenever we have extra, and that savings account is used for everything."

"By everything, do you mean nothing?"

***Uncomfortable laughter arose from both spouses.***

I want to share a massive behavioral science hack when it comes to saving. If you just blindly and arbitrarily dump money into a savings account that's intended for everything, it's actually used for nothing. Why? Because when something is for everything, then every penny spent on something is another penny that can't be spent on something else. We become paralyzed; everything becomes nothing.

The natural next step is that we simply become hoarders. If our savings account is for everything, then there's no amount of money that's enough. After all, everything is a lot of money.....infinite money. Thus, we simply hoard.

Then, if we're hoarding money into an "everything" savings account, there's a series of opportunity costs:

• We don't actually save for our future needs in life.

• We feel guilty for spending money on wants.

• We don't get around to investing for our future.

• We don't even get close to opening up our generosity.

Everything stalls at the blind saving.

Here's my suggestion. Open a series of savings accounts. Name them. Give each a purpose. Needs savings. Wants savings. Then, in your monthly budget, specifically allocate money to them. Actually fund them. If you say you're going to save $500 in your Travel Fund savings account this month, move $500 into your savings account this month.

Once that happens, it's technically already been spent: travel. Therefore, there's no doubt what that money is to be used for. It's sitting in a dedicated savings account specifically for you to enjoy on a trip. No guilt. No second-guessing. No doubts. It's already been saved. Now, enjoy! The same goes for every other category. Be specific. Be intentional. Don't psych yourself out. Honor the promises you made to yourself.

This one little hack can transform our relationship with money. I encourage you to give it a shot!

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