I’ve always had a beef with that societal notion of Happiness, and when reading the book Flow on what makes people enjoy life, I realized why. “Happy people” in the media always seem to be rich, thin, beautiful, lucky, brilliant, or talented – all unattainable notions to me or the average Jane. In the book Flow, an analysis of what makes people truly happy, it turns out none of those things drive Happiness at all. And in a recent update to the influential book The Millionaire Next Door, on how ordinary people achieve financial security, the message is similar. Ignore external messages; ignore social media; ignore commercials. Or as a folk singer once said, “it’s an inside job.”
I will note at the outset that this is a somewhat paradoxical entry. I’m telling you to read my explanation and advice on how to improve your life by ignoring other people. This reminds me a little of the Steve Martin bit where he would say, “Now, repeat after me, ‘I will not say things that other people tell me to say’…all together now….’”
But bear with me. The keys to discovering wealth and happiness are not avoiding other people’s advice or ignoring your friends and family, but rather learning when to react to cues from society and the environment and when to ignore them.
The Millionaire Next Door by Thomas Stanley and William Danko
Let’s tackle wealth first; it’s easier. The Millionaire made a very strong impression on me when I first read it 15 years ago. Since many have asked me how I have figured out how to leave the corporate world early, I would point to these principles. The book was based on large scale studies of affluent families and found that people accumulating wealth would probably not be recognized as such. They drive older cars, spend on few luxuries, and save the fruits of their hard-earned labor. They don’t tend to play the lottery but do understand the “miracle of compound interest.” They do take financial risk in keeping with appropriate rewards – save money, leverage money, but don’t gamble money. A key theme is to ignore “keeping up with the Joneses”: affluent people don’t purchase things because their neighbor has them.
Continue reading “The Key to Wealth & Happiness: Ignore Other People (and other Paradoxes)”
St. Urho is the patron saint of Finland, and March 16th is a celebration day for great merriment and drinking throughout all of the North. As it says on www.sturho.com, St. Urho was the saint who drove the grasshoppers out of Finland, saving the wine crop. His colors are Royal Purple and Nile Green. He did this by uttering the phrase: “Heinäsirkka, heinäsirkka, mene täältä hiiteen” (roughly translated: “Grasshopper, grasshopper, go to Hell!”).
Now, you might perhaps suggest that there are no grasshoppers in the coniferous forests and ice lands of Finland, where 25% of the land lies above the Arctic Circle. Thank to St. Urho, of course! You might perhaps suggest that Finland is not particularly known for its great wines, but neither is Ireland known for its vodka despite the ballyhoo about the potato crop. And Finland is known for its great drinking, as it ranks 9th in the world for death by alcoholism, compared with the US which is a mere 39th and Ireland which is way down at #63.
Continue reading “Happy St. Urho’s Day!”
When doing someone’s taxes, divorce seems to be the most painful situation to handle. The dissolution of a household and its financial entanglements are difficult to pick apart. Even standard questions about whether there’s alimony or who provides 50% of the household support for children push emotional buttons. It’s also very hard to tell someone they’ve been under-withheld and have to pay, especially when they’re making less than $30,000 a year. The financial entrails of the tax year reveal volumes about the miseries and joys within people lives – worker’s compensation claims that speak to turmoil on the job, brand new exemptions heralding a childbirth, or filing statuses that change from Single to Married to Single, Single to Married to Widowed to Single again.
Since transitioning out of my corporate job, I have navigated – by accident or fate – into helping prepare taxes for two services. My venerable friend Jeff, also a former bank finance employee, had mentioned for a couple of years his involvement with a volunteer program that handles taxes for low income earners. The program has many names – VITA, TCE, or Earn it! Keep it! Save It! – and many sponsors, from United Way to AARP, all including training, software, and processes under the aegis of the IRS. This sounded like a good way to redirect my energies while deciding what else to do with my time (aside from blogging for you good readers). As I was completing my required exams to certify, I was also asked out of the blue if I wanted to work a few hours a week by my local tax preparer, and it seemed natural to be entering tax data on two fronts, one for free and one for data-entry level wages. Continue reading “Your Tax Dollars at Work”