Sorry the posting has been light of late. There are reasons for that, and I’ll get to it some other time. But I stumbled across this today and had to share. Barricade Garage is becoming one of my favorite YouTube channels for the humorous yet pointed way they look at modern issues. I think we would all be better off if we could look inward and examine our own ways of thinking and our own flaws before we attempt to tell everyone how to fix their own. That is true self-reliance.
Category Archives: Continual Learning
Your money or your life? It’s not that simple
About a month ago I began discussing an article from Wikihow.com on “4 Ways to Be Self Reliant,” by Trudi Griffin, LPC, MS. The article is more about relationships than what I would consider self-reliance, but she still makes some valid points. Today I want to look at her second point, managing money independently. She breaks money management down into six areas:
- Learn how to manage money
- Get out of debt
- Pay cash instead of using your credit card
- Keep cash on hand at all times
- Own a home
- Live within your means
To begin with Griffin warns against allowing others to manage your money. I agree with her basic premise, that you can lose your independence if you lost control of your money, but that depends on the nature of your relationship with that person. In most marriages one of the two usually assumes responsibility for managing the money. If you are good at communicating, have compatible financial goals, and trust one another it’s actually easier to have one partner take primary responsibility and keep the other informed. Her second concern is more valid: if the primary money manager is unable to continue in that role it may be very difficult for the other partner to step in. Even if you are not the money manager in your relationship, make sure you know how to access everything and are comfortable managing money yourself.
Griffin also encourages everyone to get out of debt, though what she really focuses on is keeping your debt manageable. According to her, your total long-term debt payments (mortgage, auto and school loans, and credit card debt) shouldn’t exceed 36% of your monthly income. If your debt payments exceed this level you should make every effort to get that debt load paid down as quickly as possible.
As a corollary to that, Griffin also advocates paying cash for everything, and to keep cash on hand (and in savings) at all times. This seems primarily to be to keep your credit card debt low, and I somewhat agree with this. If you have difficulty paying off your credit cards, or can’t resist charging more money on them, then by all means you should avoid using those credit cards. But if you have developed financial discipline and never miss making your payments because you’re able to set money aside to make those payments, there may be a way to make your credit cards work for you.
I recently read I Will Teach You To Be Rich, by Ramit Sethi. The man has some good ideas about acquiring, building, and managing wealth–and some ideas I’m less keen on. But one suggestion he makes is to put your regular expenses, as much as possible, on your credit cards and then set that money aside to pay the bill off quickly. If you get the right credit card you can earn travel miles or cash back rewards that amount to free money. I’m disciplined with managing my budget, and so I decided to try it. I haven’t put as much on my card as I could, but already within the past several months I’ve picked up nearly $250 of cash back rewards. It’s free money. But if you’re not so good at managing your credit card debt and paying off your account monthly, it’s best to follow Griffin’s advice and avoid credit cards altogether.
Griffin’s next suggestion is to own a home. I’m not as sure about this one as I once was. Right now interest rates are low, so you may only pay about 50% more than the cost of your house in repaying the loan. Depending on how long you live there, the value of the home may increase well beyond that. Our first house did just that. But you don’t always control how long you live somewhere these days. We had to move when I lost my job ten years ago, and the timing was terrible–the housing market had collapsed and I owed considerably more on that house than I could sell it for.
There’s also the maintenance costs and hassle of a house to consider. So far since moving into our house nine years ago we’ve replaced the roof, replaced the furnace, air conditioner, and water heater, and bought high-efficiency windows. Granted, that last purchase was voluntary, but that was easily an additional 30-40% the cost of the house we had to find within the first six years of buying it. That, on top of a myriad of other maintenance expenses through the years. If you don’t like or can’t afford doing your own maintenance, or if you can’t be sure how long you’ll be staying where you live, a house may not be the best option. Everyone needs to evaluate their priorities themselves in this area.
Last, but by no means least, we should live within our means. That usually means several things that have to happen. First, you need to know (or learn) exactly how much money you spend each month and where it goes. Second, where at all possible, and perhaps not matter what the sacrifice, you need to adjust your spending to where it is less than what you earn. Third, you need to continually monitor your spending and your justifications for spending and see how you measure up against your budget. You need to be willing and able to adjust your spending to remain below your means–and save the difference religiously.
Frankly, learning how to budget and how to stick to that budget is one of the most important skills one can develop for self-reliance. That’s pretty much the key to achieving financial independence and taking care of “future you.” Or perhaps your spouse and children after you’re gone. Usually in life there are only two choices: either your master your money or your money masters you. Money is seldom a kind master, but it can be a real friend when you learn to master it. Mastering your finances is a key step toward true self-reliance.
It’s the little things that count
I always get a little excited when I see the concept of self-reliance brought up in unexpected places or referring to aspects outside the usual “prepper” mindset. After all, my philosophy of self-reliance is much broader, and should be more applicable to everyday life by everyday people. So it caught my attention when I found “7 Tips for Increasing Self-Reliance” on The Law of Attraction.com.
Some of their seven points are somewhat familiar, such as “Accept Responsibility” and “Make Your Own Decisions,” but others are are a little less obvious–or at least less practiced these days.
Take Point #3: Learn More Practical Skills:
The more practical skills you have in your toolkit, the fewer chances there will be for you to feel helpless or need other people to come to your rescue. While you should feel free to call out experts to help you with complicated household problems and mechanical difficulties, it’s great if you can at least do the basics for yourself. Get some books or join some classes.
Try to get a better grasp of everything from plumbing to IT, electronics and cooking.
A few (dozen) years ago I spent two years in Australia as a missionary for my church. Before we travel to our assigned locations we spend anywhere from three to eight weeks learning teaching skills and, where necessary, a new language. From the beginning we are paired up with another missionary, who we will be with 24/7.
My companion was a really pleasant fellow from solid farm stock (Central Utah turkey farmers), but I was soon quite surprised to find he had no idea how to do his own laundry! Nor did he know what to do when he spilled dinner on his tie. Now, I won’t claim to have been anything but a burden on my mother up until that point in time, but she had at least taught me how to do laundry, how to cook, how to sew on buttons and mend pants. I gladly dispensed my wisdom to my companion, and I have definitive proof he was able to survive the entire two years.
A few years later while I was in college I went to an activity with a bunch of other college students. We decided to go get some ice cream or something afterward at a place several blocks away. While I was driving through campus I realized my tire had gone flat. I pulled over into a parking lot and started pulling out my equipment to change it for my spare.
Before long about a handful of young women from our group had pulled over to see if everything was okay. When I explained what the problem was and that I’d be okay, they all insisted on staying to watch. No one had taught them how to change a tire! I was only too happy to demonstrate for them, of course.
Whether it’s hanging a picture, or strengthening a wobbly chair, or reattaching things that come loose, there are a lot of simple tasks in life we can easily take for granted and forget to either learn or pass on. There’s no reason we should be helpless when it comes to using basic tools to perform simple maintenance tasks. Fixing a leaky faucet–or outright replacing one–isn’t difficult, but if you have no idea how to go about it you might be tempted to spend a decent chunk of money on something that shouldn’t take very long.
Learning some basic skills will pay off in spades sooner or later. And it might just help you get the girls! (Okay, not really. They were all impressed, but that’s about as far as it went.)
Work is essential
Mike Rowe has become something of a hero of mine. The man observes, thinks deeply, and explains himself very well. People try to impose a political agenda on him, but by and large his thoughts don’t lay with any particular ideology.
Recently he was interviewed by Dave Rubin, but don’t let that worry you. Their discussion transcends politics, at least in my view, and explores what I would consider the bedrock of humanity and a major pillar of self-reliance: the value of work.
I agree with Mike. It’s dangerous to our long-term survival as a country and culture, and perhaps even as human beings, to place too high a value on education and too low a value on work. I say this as a person who has an MBA and works a white-collar technology job. I can’t say I’m enamored with physical labor. But I’m not afraid of it. I’ve built a shed from scratch at each of the three houses I’ve owned. I’m used to doing most of the physical labor required for maintaining my property, be it fixing sprinklers, landscaping, laying flooring, or basic plumbing. And I do find shoveling snow to be oddly therapeutic. I only hire others when I need it done quickly, am concerned for my safety, or the skill-set is not something I can acquire quickly (or can afford to do wrong).
And I’ll tell you what, I’ve felt as much satisfaction from the physical things I’ve accomplished as from the “knowledge-worker” jobs from which I support my family. I’ve been involved in projects that save companies millions of dollars. I’ve saved people’s jobs with my recommendations. I’ve uncovered the causes some of the most daunting system errors. I get as much long-term pleasure from a bookshelf I’ve built.
That’s not to say I get no satisfaction from my education. I’ve also been a partner in building up a successful brick-n-mortar business using the tools I acquired in my MBA program, and that little venture has been one of the high points of my life. But this idea of education being the be-all, end-all of existence is ridiculous. My first degree was in Music. I enjoyed every minute of it. But ultimately that degree left me unemployed in Pocatello, Idaho (possibly worse than Greeeeenlaaaaand) and depressed out of my skull. And what got me out of it and into my career wasn’t my education, but my ability to learn. The two are not synonymous.
But whatever we do, I would certainly hope we derive more from it than a paycheck. There ought to be some satisfaction from the work itself. I would hope those who serve me in some capacity derive pleasure and satisfaction from their work. Sooner or later I’m going to need heart surgery, and I would feel much better knowing my surgeon is passionate about heart surgery, and not just viewing it all as just another transaction. I’d want him actively concerned about whether I live or die, and not just whether I’ll be able to pay him or not.
I’m not entirely sure where I’m going with this, except perhaps for this: it is foolish to denigrate physical labor, perhaps even dangerous. The point of our lives should not be avoiding work, or working only so we can play, or even working only so we can retire. Most of us will spend the majority of our adult lives working in some way. Hopefully we can derive a little satisfaction, a little pride in our work, along the way. And hopefully our society will learn to value that work, regardless of what it is.
Is college headed online?
Scott Galloway, a Silicon Valley prognosticator with a respectable track record is predicting the Cornavirus and resulting stop-gap measures of moving education online is going to become the disruption that changes the university system forever, with tech companies partnering with colleges to become hybrid, virtual campuses. In an interview with James D. Walsh of New York Magazine he had this to say:
Colleges and universities are scrambling to figure out what to do next year if students can’t come back to campus. Half the schools have pushed back their May 1 deadlines for accepting seats. What do you expect to happen over the next month?
There’s a recognition that education — the value, the price, the product — has fundamentally shifted. The value of education has been substantially degraded. There’s the education certification and then there’s the experience part of college. The experience part of it is down to zero, and the education part has been dramatically reduced. You get a degree that, over time, will be reduced in value as we realize it’s not the same to be a graduate of a liberal-arts college if you never went to campus. You can see already how students and their parents are responding.
At universities, we’re having constant meetings, and we’ve all adopted this narrative of “This is unprecedented, and we’re in this together,” which is Latin for “We’re not lowering our prices, bitches.” Universities are still in a period of consensual hallucination with each saying, “We’re going to maintain these prices for what has become, overnight, a dramatically less compelling product offering.”
In fact, the coronavirus is forcing people to take a hard look at that $51,000 tuition they’re spending. Even wealthy people just can’t swallow the jagged pill of tuition if it doesn’t involve getting to send their kids away for four years. It’s like, “Wait, my kid’s going to be home most of the year? Staring at a computer screen?” There’s this horrific awakening being delivered via Zoom of just how substandard and overpriced education is at every level. I can’t tell you the number of people who have asked me, “Should my kid consider taking a gap year?”
…
Ultimately, universities are going to partner with companies to help them expand. I think that partnership will look something like MIT and Google partnering. Microsoft and Berkeley. Big-tech companies are about to enter education and health care in a big way, not because they want to but because they have to.
Let’s look at Apple. It does something like $250 billion a year in revenue. Apple has to convince its stockholders that its stock price will double in five years, otherwise its stockholders will go buy Salesforce or Zoom or some other stock. Apple doesn’t need to double revenue to double its stock price, but it needs to increase it by 60 or 80 percent. That means, in the next five years, Apple probably needs to increase its revenue base by $150 billion. To do this, you have to go big-game hunting. You can’t feed a city raising squirrels. Those big-tech companies have to turn their eyes to new prey, the list of which gets pretty short pretty fast if you look at how big these industries need to be in that weight class. Things like automobiles. They’ll be in the brains of automobiles, but they don’t want to be in the business of manufacturing automobiles because it’s a shitty, low-margin business. The rest of the list is government, defense, education, and health care. People ask if big tech wants to get into education and health care, and I say no, they have to get into education and health care. They have no choice.
There’s a certain amount of sense in what he’s telling us. American universities have begun to lose sight of their original purpose: to dispense knowledge. They’ve become factories for wholesale social change, and in the process have added so much overhead to their cost structures that the price of their knowledge-offering has increased exponentially while the actual value grows increasingly questionable. And now the Coronavirus has shown students that not only is the knowledge product not worth the cost, but the online experience has diminished it even further. It seems doubtful that universities will be able to continue charging $50,000+ a year for Zoom classes. Where they once derided online universities such as University of Phoenix (my MBA alma mater) they may find themselves studying their models, perhaps even purchasing them outright.
However, if such a model is to work there will first come a major upheaval. Today’s teachers are ill-prepared for the online classroom. I’ve been watching as my sons have struggled with on-line school from their local high school. The quality and intensity of the assignments have diminished, while the teachers largely have retreated to a consulting role, not even attempting to teach the subject matter in even a virtual classroom setting (with the interesting exception of their release-time religious studies teacher). One son is struggling mightily to complete the two classes most critical to his future career plans because the teacher had largely left them on their own.
I don’t doubt there are teachers who can adapt, improvise and overcome, and perhaps even thrive in this new model, especially at the college level. As I mentioned above, I earned my post-graduate degree in a hybrid setting, long before video conferencing software became cheap and ubiquitous, and we were able to make it work. But we were all working professionals who had outgrown the need for classroom learning. We knew how to learn. This model may not work so well for K-12 education, and I suspect it won’t be applied any time soon.
The university system, however, is ripe for it. The real question is whether universities will be willing to give up their role as engines of social change and retreat back to mere education. Or will the corporate partners assist them in policing the minds of their students more efficiently than ever before? We may be on the verge of a fundamental ground-shift, and only time will tell if it was for better or worse.
The case for DIY
And speaking of Self Reliance Exchange, there’s another excellent article there about gaining the knowledge to do many things yourself. The writer (DDFD) uses the example of his car, and how you can learn a lot about your car and how it works just doing some of the basic maintenance. He still leaves some of the more specialized tasks to professionals for safety reasons, but there are many maintenance tasks that can be done yourself.
This article hit home a bit for me, as this is one area I’ve given myself a pass on. While I know I could learn car maintenance, I’ve avoided it by promising that I’ll just learn some skills that mechanics need so I can barter. But DDFD’s argument that you can learn a lot about your car by working on it makes sense. I really should do more of that.
It’s not easy. I like my mechanic. I want to make sure he’s still around when I need him. But would it kill me (or him) if I did a few of things things myself at least a time or two? Probably not.
British journalist becomes a mechanic for a day
Iain Hollingshead, writing for the Telegraph, decides to test out the theories in a book by Matthew Crawford on the benefits of working with one’s hands. He decides to help his favorite mechanic services his Alpha Romeo:
I have a minor triumph of my own when, after an hour of gentle, blokey ribbing for knowing nothing about cars, I mend a fiddly rear numberplate light. As we celebrate with a mug of builder’s tea, I’m surprised by how pathetically, disproportionately happy I feel. Then I remember Crawford’s words: “The satisfactions of manifesting oneself concretely in the world through manual competence have been known to make a man quiet and easy. They seem to relieve him of the need to offer chattering interpretations of himself to vindicate his worth. He can simply point: the building stands, the car now runs, the lights are on. Boasting is what a boy does, because he has no real effect in the world.”
Self reliance means skills, not just tools
Melanie Williams at Where Simplicity Leads has some excellent thoughts on the difference between tools and skills in self reliance:
When I was just getting serious about simple living a few years ago I read an article about self-reliance which really stuck with me. The author said that the biggest mistake people make when starting out is thinking that in order to become self-reliant they have to go out and buy a bunch of stuff. I remember thinking that was kind of funny–what kind of self-reliance is that? Self-reliance is really more about skill-building than it is about tool-getting, but in the early stages it’s easy to believe all you need are the right tools (or at least to believe that the right tools will get you a very long way).
Tools of course are important, and when we’re first adopting a simpler and more resilient lifestyle it might become very obvious, very quickly that all the tools and gadgets and gizmos we’ve acquired over the years are precisely all the wrong tools and gadgets and gizmos needed for self-reliance. Riding lawn mowers, microwave ovens, GPS navigation, bread machines, rototillers, dishwashers…not so important. Root cellars, chicken coops, grain mills, spades, shovels, buckets, jars…very important tools.
Read the whole thing. And not just because she uses the same blog template I used to! 😉