Conscious Living

Choosing How We Fill Our Lives

Let Joe Do The Talking

An Easy Way To Introduce Your Money Or Your Life

Avoiding Credit Card Traps

The Dollar Stretcher

A year or two back, when I spent a chunk of time with a friend on his sailboat, sailing to Mexico and in the Sea of Cortez, a mutual friend commented that life aboard a sailboat is anything but simple.

He's right. We always had to fetch water and ice and propane, and the boat itself was an endless ongoing project. Aboard a boat, there's always maintenance and repairs because everything degrades and fails much faster than on land. The part of all this that I feel he didn't quite understand is that I love these projects! I'd get up early, and get started with projects on deck before the tropical sun and heat became fierce. I'd head down below during the heat of the day, cooking, cleaning, and so on. Eventually I'd take a siesta, and then get back up top to accomplish a bit more as I drank a cold cerveza and chatted with the folks on neighboring vessels as the sun set. Later I might be off to town for a bit of entertainment before going to bed and doing it all over again. Life was always busy, and I enjoyed it immensely.

What my friend didn't see is that while a simple life often appears complicated from the outside, the central elements remain simple. This core simplicity enables conscious choice in how we live the majority of our lives.

Living simply is often equated with doing less. This is a common desire among those with complicated, seemingly out-of-control lives. Yet as we simplify, we sometimes discover that we don't necessarily want to do less in life. Rather, we want to consciously choose what we do, instead of feeling endless obligation from external forces. Living simply gives us this freedom. That's why I call it Conscious Living. Let's look at some examples:

• Ann has lived a simple life with few obligations for many years, which enabled her to take a year away from work to complete a major house project. When she returned to work, she switched to non-profit work that she finds to be in closer alignment with her values. Now she's reducing her work hours in order to spend more time working in the community. Although she will be working fewer paid hours and making far less money, she plans to remains as busy as ever, doing precisely what she loves the most.

• Jan simplified her life in the '90s to focus on what matters to her. She reduced her work hours a few years ago to be able to spend more time with her family, her community, and the natural environment. Now she is developing a close relationship with her grandson, getting to know her neighbors, and leading a monthly forum at the local library, all while continuing to take extended camping trips.

• A few years ago I took a position with a large environmental organization at its headquarters overseas. My colleagues there came from a wide variety of cultures and nationalities. Most of them had moved there from their home countries just as I had, and relished in the experience of cultural immersion and passionate work. The simplicity of their core lives enabled them to take this leap.

• I simplified my own life over a period of years in the mid-'90s. This gave me the ability to try new paths in life. I left corporate work in 1999, and left paid work entirely in 2001. I've traveled, I've sailed, I've fallen in love, and I've changed career paths altogether. Now I'm always busy with something, but it's something I consciously decide to engage in.

The core element in all of these stories is a simple life. All of us keep our possessions down to a comfortable level. We stay out of debt. We save. We keep the number and size of our monthly bills very low. In short, we have reduced our "needs." As our "needs" dropped, we found that responsibilities to care for and pay for possessions fell away. Dropping services that didn't really satisfy us and time commitments that didn't fulfill us gave us our time back. We were free to fill our lives with our "wants." Our lives remain busy and full of what we want to do! We strive to live consciously, in alignment with our own personal values and life goals.

Simple living isn't necessarily about reducing the amount of what we do in life. That's merely one choice which becomes available to us when we live simply. Simple living is about giving ourselves freedom to do precisely what we find to be most fulfilling.

About The Author

Fred Ecks (on the web at www.pobox.com/~fredx) was a full-time software engineer for many years. He happened upon Your Money or Your Life in 1994 and started saving a large percentage of his income. He ultimately stopped working for paychecks in 2001. He now spends his time helping others who strive to simplify their lives in addition to bicycling, running, taking classes, and volunteering for non-profits.

Note: Mike Lenich is a long time member of the Your Money or Your Life Speakers' Bureau. Mike and his wife Linda became Financially Independent (FI) several years ago and since then have volunteered their time introducing others to the nine-step program in Your Money Or Your Life, by Joe Dominguez and Vicki Robin. Joe, who passed away in 1997, originally introduced the program in a one-day workshop that has been preserved in the audio and workbook course Transforming Your Relationship With Money (now available on CD) and in the best-selling book, Your Money Or Your Life. I asked Mike to write this article in order to share his insights about a new, very successful way to introduce the program to others. Given the current state of the financial world, this article and the program it introduces seem particularly timely.

After nine or so years of introducing folks to the Your Money Or Your Life program via one-on-one talks, Study Guide sessions, Speakers' Bureau presentations and church gatherings, my latest attempt was by far the easiest and one of the most successful...

I let Joe do all the talking!

I had a feeling that if folks could hear the whole program in one sitting, they might be more inclined to get started and stay motivated. That's how Linda and I got started: We listened to the Transforming Your Relationship With Money audio and workbook course and we never, ever had a thought about stopping or not reaching FI (Financial Intelligence, Financial Integrity, Financial Independence).

After thinking about it for a while, I decided that the next time someone requested an introduction to the program — instead of doing a standard presentation or beginning an eight week Study Guide session, I would offer an all-day workshop using the audio and workbook course. In early 2005, that's just what I did, and it went over very, very well.

Here's what I learned...

It was easy to do: There was little preparation — just grab the tapes, my CD player and order a dozen extra workbooks from The Simple Living Network.

A local church offered the space. We selected a date and time, sent out announcements through The Simple Living Network, church groups, Voluntary Simplicity Chicago, and all the other contacts on our "interested" list.

I had no sign-up sheets. I just kept the whole thing open: "Here's the date, time, and place; let us know if you're coming, and if you're not sure, just show up." We had 14 attendees (3 just "showed up"), and everyone stayed the entire time (9:00 am to 5:00 pm).

I had nothing to "prove:" Joe "proved" how the program works throughout his presentations. Completely missing in this approach were the usual comments such as, "This won't work for me..." any arguments about how this program is dated and won't work in today's financial and global world... AND, a sense of burden on me, as the presenter, to "carry the FI message forward."

Joe took it all, answered it all, and clearly gave responsibility to the listeners (listen to the very last segment, "More" — he really rocked the group when he said, "I've done all I can. Now it's up to you. This is a hands-on program. Nobody else can do anything for you. Get your hands on it and give it a try. You'll see what I've been talking about."). As folks were leaving, it appeared to me everyone recognized it was up to them. What a relief!

The "dated" material was an advantage. Yes, an advantage! Several times throughout the day, "dated material" added validity to the program.

Example: Joe says, "I know what you're thinking. Interest rates are so low now. Why buy at 7%? I'll just wait for them to go back up to 12%. Those highs were an anomaly. Historical interest rates are between 2 and 4%. I wouldn't be surprised at all if 10 years from now we're back down to 4%." Bingo! There was quite a murmur at that statement.

We stopped the tape to briefly discuss the reactions. Everyone seemed to really buy into the nine-steps at that point.

Collecting the workshop fee was easy: I collected $12 for each workbook (to recoup the purchase price, shipping and handling). Folks made a donation to the church, and we ordered pizza and salad for lunch ($4/person). I had a batch of homemade scones and a pot of coffee and tea in the morning. Very simple. Very easy.

Follow-up/next steps: As we concluded the session, everyone asked, "What's next?"

After a little discussion, we agreed to meet again for two hours the following month. We'd use "Open Space" techniques to create a meeting agenda. The meeting theme would be "Implementing the Nine Steps."

Several folks asked if we had the audio course for sale — they wanted to continue learning and reinforcement. I didn't have any with me (I will next time) and instead directed them to The Simple Living Network pointing to the bookmarks enclosed with the workbooks.

It was that simple!

One month later we reconvened as a group to discuss "Implementing the Nine Steps." Those attending had made very clear progress, and we even had someone new who had "heard about it." This session too was easy to facilitate.

Introducing the Your Money Or Your Life program using this technique is easy to pass along. Not too long ago I gave a one-hour talk to a different church group and added a few things from the audio program workbook. For 90 minutes following my presentation, folks asked questions — including how to introduce others to the nine steps. I told them it is easy to do: pick a date and time, get the audio program, order some workbooks, press "play" and let it happen. They immediately balked saying, "But we don't have the expertise!" I told them, "You don't have to — the audio program has all the expertise. Just get it started."

Three members of the group came forward and did take charge. I won't have to be there. They'll take care of it. And, Joe will do all the talking!

PS: Here's an e-mail we received following our first audio course and workbook workshop:

Hi Mike & Linda!

I really enjoyed Saturday's class. Sunday I looked at the workbook, got our monthly tabulations, and did the graph (income, expense and savings). I was so pleased with myself. Joe must have inspired me that it was time to do this. It's been two years (since we started Your Money Or Your Life) and we finally have the graph up on our fridge.

We were offered a one-year 2.99% interest rate on an existing Visa account that we didn't use very much. We wanted to use the card to make a very large purchase with the intent of paying it off within one year.

Luckily we checked the "fine print." The original purchase will be at 2.99%. But any subsequent purchases on that card will be charged interest at 15.99%. There's a huge red flag - the original "loan" must be paid off before any payments will be credited to the new purchases that are made. So what we pay every month goes toward the 2.99% charge and, for example, the airline tickets I later purchased with this card will continue to accrue 15.99% interest charges until I pay off the original purchase sometime next year.

I said we're lucky because we understand the rules and have put the card away until it's paid off. I shudder to think how many people don't catch this little quirk.

SB is right. Many people are being tripped up by the fine print in credit card agreements. She's fortunate to have caught on before charging up a bunch of stuff at a pretty stiff interest rate.

Credit cards have come a long way. A generation ago there was a 'one size fits all' approach. Today, you can choose cards based on their fee structure, interest rates, cash advance provisions or even the rebate offered. But, with all those choices comes the responsibility to know what the credit agreement says.

The agreement will specify what the card issuer can do with the account. The language isn't always easy to understand. If you have trouble figuring out what something means, call the card issuer and ask for an explanation. Don't use the card until your question is answered.

All that fine print is actually a blessing in disguise. It will tell you how the card issuer intends to take your money. All you have to do is to read and understand the credit agreement. There's no reason to get caught. Most of the traps can be avoided if you know where they are.

Be careful of zero or low rate offers. Low initial rates typically are only for a limited amount and a short time period. The agreement will explain which purchases or balance transfers are eligible for the low rate. It will also say what you'll be charged for other non-eligible purchases. That's the trap SB uncovered.

You might also find that cash advances and balance transfers carry a different, higher interest rate than other purchases.

You would expect that variable rate accounts would have changing interest rates. But, even so-called 'fixed' rates can be changed. They're only fixed for 15 days.

When you get the card in the mail don't assume that you're approved 'up to $5,000' as advertised and that your credit limit is $5,000. Depending on your credit score, you could be approved for something considerably lower.

Understand what happens when your account goes 'over limit'. Don't assume that they'll automatically refuse to accept a purchase that puts you over limit. Most will actually let you go over limit, but then penalize you with fees and higher interest rates!

Another trick is to send you a card that's different than the one that you applied for. You could be turned down for the card with the low-rate balance transfer but issued one without that special feature. If you use the card you will be accepting the terms on the agreement that came with it, even if they're different from the one that you first applied for.

You'll find other little tricks in the fine print. For instance, it's common for the "grace period" to expire early in the morning. You can be pretty sure that the mail delivery will be later in the day. So your payment needs to be there a day early.

Look for something called "universal default." It means that if you're late on another payment, the interest rate on this account will be increased.

Finally, the lender will have a provision in the agreement that allows them to change the agreement. All they have to do is to notify you of the change in writing. That means that you need to read everything that comes from the issuer. Some have been known to send out amendments that look like junk mail. If it comes from your card issuer you need to open and read it.

SB has learned that you can use credit card rules to your advantage, but if you don't know the rules your almost certain to lose the game.

About The Author

Gary Foreman is a former financial planner who currently edits The Dollar Stretcher www.stretcher.com website and newsletters. You'll find hundreds of articles to help you make the most of the time and money you already have. Visit today!