Alan Watts: What If Money Didn’t Matter?

Alan Watts was a “British-born philosopher, writer, and speaker, best known as an interpreter and populariser of Eastern philosophy for a Western audience.” I actually stumbled upon his readings via a trailer for Days of Our Youth, a movie about people who grew up to be professional skiers.

Anyhow, he turns out to be pretty popular but if you haven’t heard of him before, I think listening to his voice is the best way to experience it:

Here is a transcript of the YouTube video above:

What makes you itch? What sort of the situation would you like? Let’s suppose, I do this often in vocational guidance of students: they come to me and say well, we are getting out of college and we haven’t the faintest idea what we want to do. So I always ask the question: What would you like to do if money were no object? How would you really enjoy spending your life? Well it’s so amazing as the result of our kind of educational system, crowds of students say ‘Well, we’d like to be painters, we’d like to be poets, we’d like to be writers’ But as everybody knows you can’t earn any money that way! Another person says ‘Well I’d like to live an out-of-door’s life and ride horses.’ I said ‘You wanna teach in a riding school?’

Let’s go through with it. What do you want to do? When we finally got down to something which the individual says he really wants to do, I will say to him ‘You do that! And forget the money!’ Because if you say that getting the money is the most important thing you will spend your life completely wasting your time! You’ll be doing things you don’t like doing in order to go on living – that is to go on doing things you don’t like doing! Which is stupid! Better to have a short life that is full of what you like doing then a long life spent in a miserable way. And after all, if you do really like what you are doing – it doesn’t really matter what it is – you can eventually become a master of it. It’s the only way of becoming the master of something, to be really with it. And then you will be able to get a good fee for whatever it is. So don’t worry too much, somebody is interested in everything. Anything you can be interested in, you’ll find others who are.

But it’s absolutely stupid to spend your time doing things you don’t like in order to go on spending things you don’t like, doing things you don’t like and to teach our children to follow the same track. See, what we are doing is we are bringing up children and educating to live the same sort of lives we are living. In order they may justify themselves and find satisfaction in life by bringing up their children to bring up their children to do the same thing. So it’s all retch and no vomit – it never gets there! And so therefore it’s so important to consider this question:

What do I desire?

Alternatively, Gavin Aung Than of Zen Pencils turned the quote into a very cool comic:

alanwatts_zenp

Stuff like this is always controversial. Too dreamy? Too hippie? My current opinion is that it all depends on the person. Some people don’t have a strong affinity towards anything, they may value safety or prestige other things. (Is that really wrong if that’s what they want?) But to some people, they do have a latent desire, and reading such stories is like a wake-up call. Yes! That thing that you always think about in the shower, or right before you go to bed? Yes you should try that!

In the end, I think if you are going to spend a huge chunk of your life doing anything, then it should be at least be aligned with your personal beliefs. Only you can decide if that is currently the case, or if a change must be made.

Must, Should, and Financial Freedom

mustIf you struggle with your inner compass at times like I do, definitely read this thought-provoking and inspiring article The Crossroads of Should and Must by Elle Luna:

Should is how others want us to show up in the world — how we’re supposed to think, what we ought to say, what we should or shouldn’t do. It’s the vast array of expectations that others layer upon us. When we choose Should the journey is smooth, the risk is small.

Must is who we are, what we believe, and what we do when we are alone with our truest, most authentic self. It’s our instincts, our cravings and longings, the things and places and ideas we burn for, the intuition that swells up from somewhere deep inside of us.

When reading biographies and interviews of notable people, those who made seemingly bold decisions often remark that it really wasn’t. They just did it. It was a Must. I always wonder if it was also scary for them.

Looking back, I wonder if my own moves were by choice or not. Did I choose to quit my stable job with the bi-weekly paycheck and instead go back to school while supporting myself with online projects? Was I scared? Probably. Did I have any other choice? I only remember that I couldn’t do the job anymore.

Whenever I start feeling like others are controlling my destiny instead of me, I start to panic and plan my escape. I believe this fear of losing control is why I like to hoard money. Money gives you time to work towards a Must:

Money can be a bridge to the freedom of exploring Musts. And it often doesn’t require much. But it does require determination. Money can be used to buy you a day, a week, month of time to work on a Must, which may amount to nothing. Or it can be used to buy a sweater, a suit, a car — the value of which is obvious and low risk.

The article speaks of aligning your everyday actions to your dreams. Your job should be your calling. An artist. A tech start-up. A food truck.

That is a worthwhile goal and while it is important for me to like what I do each day (which I do), I feel differently. Not needing money from a job at all and having absolute freedom to do whatever I want (paid or not), that is what I crave. That is what I think about in the shower. Achieving financial freedom is my Must.

Financial Literacy Cartoon for Kids Starring Warren Buffett

smcSecret Millionaires Club (SMC) is an animated series about a group of kids learning how to make good financial decisions and solve business problems. Episodes are available online for free. Their mentor is none other than Warren Buffett! Here’s part of a Reuters interview with Buffett regarding his involvement.

Q. How do financial literacy and entrepreneurship fit together?

A. Not everybody’s going to be an entrepreneur, but everybody should be financially literate. Financial literacy is a base requirement like spelling or reading or something of the sort that everybody should acquire at any early age. The financial habits you develop when you are young are going to go with you into your adulthood. But you can’t be an entrepreneur unless you’re financially literate.

They also run the annual Grow Your Own Business Challenge (GYOB), a nationwide contest for entrepreneurial kids aged 7 to 14. This year’s finalists included an intergenerational online community, a custom bow tie business, a worm composting kit, and a community garden that also helps feed hungry children. You can watch their pitch videos on YouTube.

After watching a few episodes, they are actually pretty good. The concepts are short (~5 minutes long) and digestible. Here’s the first one:

 
Starting a tiny business may be the funnest and thus most effective way to teach kids about money. As a parent, I’d much rather do that than give them an allowance and then force them to “save” a certain percentage. (Is it really saving if it’s not optional? Sounds more like a tax.)

Book Review: Young Entrepreneur’s Guide to Starting and Running a Business

youngentI believe that entrepreneurialism is, like many things, a combination of talent and learned skill. Some people will take to it naturally, but a great many more can become successful and independent business people with the proper inspiration and guidance. I plan to help and encourage my daughters to set up their own micro-businesses once they are teenagers, whether it is coding apps or starting a booth at the farmer’s market. Some things you can’t learn from a book.

Oh wait, this a book review! Anyhow, since I love the idea of young folks starting businesses I took the opportunity to review a copy of the revised 3rd edition of The Young Entrepreneur’s Guide to Starting and Running a Business by Steve Mariotti. (I received a free review copy of this book from the publisher, as apparently did most of the Amazon reviewers. If you are a blogger, check out Blogging for Books for review books in your area of interest.)

This is a rather thick paperback at nearly 500 pages, and it uses that space to try to be a little of everything:

  • A reference book, covering everything from basic accounting and balance sheets to legal structures (corporation vs. sole proprietorship vs. LLC) to franchising.
  • An easy-to-read guide for beginners, which means that the treatment of all the above topics is concise and simplified (and thus not very thorough or detailed).
  • A collection of inspirational case studies from the non-profit group Network for Teaching Entrepreneurship (NFTE), which the author founded. You’ll read about many young folks who started their own business in various fields and most of them plan to continue working on them through college and beyond. Sample businesses include website design, party DJ, landscaping, sport or fashion apparel, and Honest Tea.

In the end, like many things that try to be all things to all people, it ends up not being great at any one single thing. It is somewhat all over the place. The book spends time telling you to save money by plugging in your computer and printer into a smart power strip to reduce “vampire” draw. A bit later, it wants to help you prepare for franchising and an IPO. Huh?

Personally, I would tell a young reader to just read all the “An Entrepreneur Like You” case studies first, and see if they have the fire to just go ahead and try to get that first customer. Then, after some successes and failures, they can use this book as a resource to answer any specific questions. How many young people want to read about OSHA regulations or double-entry bookkeeping before making their first dollar?!

For me, I did enjoy reading the case studies but for the other stuff I’d probably just look up on the internet as needed. I might read the marketing section again. All in all, this might make a nice gift for a recent graduate or young person that has shown some entrepreneurial spirit.

Economy of You Book Review: Stories About Starting Your Own Microbusiness

Microbusiness. Nanobusiness. Solopreneur. These new terms were created to describe the one-person businesses which Kim Palmer profiles in the new book The Economy of You: Discover Your Inner Entrepreneur and Recession-Proof Your Life. Some people turn their business into a full-time job, while many keep their 9-5 jobs and run their ventures on the side. Palmer herself is a full-time editor for US News and World Report as well as a “side-gigger”, selling virtual financial planners on her Etsy shop Palmer’s Planners.

In terms of a synopsis, I would describe the book as breaking up the interviews of a number of solo entrepreneurs into major themes like:

  • How they discovered their idea or niche
  • How they built a support network for help
  • How they earned their first customers and grew from there
  • How they balanced their new business with a full-time job, family, etc.
    1.  
      Overall, the book is definitely more inspirational examples and idea generation than actual nuts-and-bolts guide on how to run a solo business.

      I enjoyed reading it, and here are my own impressions and takeaways from the book. Hopefully they will also help you decide if you should read it.

      A true microbusiness just needs one person and hardly any start-up money. This is my own definition, but I think it is appropriate. When I look at the people profiled in the book in addition to of all the business that my friends have started on their own, hardly any of them need more than maybe a few hundred dollars to get started. Website design. Writing a blog. Handcrafted jewelry. High-quality natural soaps. iPhone apps. Selling online coaching and e-books. If you need venture capital, it is not a microbusiness. Even if someone ends up owning a bakery, they often started by catering or baking custom cakes. You need enough personal ability and energy “saved” up to start, not money.

      You already know if you want to be a solo entrepreneur. Starting a microbusiness is definitely not for everyone. Do you have an itch in the back of your mind, an idea that you have been nursing for long time? Are you so enthusiastic about something that you wouldn’t mind it entering what used to be your free time? Many people are quite happy keeping their job and their play time separate. Finally, read this following book excerpt by Palmer after making her first few months of sales.

      As gratifying (and useful) as it was to earn that extra cash, it didn’t even begin to get at the satisfaction that my Etsy shop gave me. Each sale affirmed by ability to create something of value, a skill I sometimes doubted that I had as freelancing rates plummeted during the recession and writing jobs dried up. I had a new identity; I created and sold money planners. I began daydreaming about ways I could expand and new products I could design.

      There is no guarantee that your solo business venture will be wildly successful. But if just the act of doing it and getting a few readers or customers will give you great satisfaction, what have you got to lose? As noted, the start-up costs should be minimal. I started this blog with an $8 domain name, free open-source software, and web hosting for under $10 a month. 9 years later, I’m still doing it! :)

PO Boxes Now Offer Real Street Addresses, Accept UPS and FedEx Packages

For a few years, I had a UPS store private mailbox for my small business address instead of a Post Office box because of a couple of factors:

  • Private carriers like UPS and FedEx didn’t deliver to PO Boxes.
  • PO Boxes were not “real” street addresses, and thus I had to provide alternate addresses anyway with credit cards and other business accounts.

I recently discovered that both of these issues had been fixed some time in 2012 for many PO Boxes (but not all) with the introduction of “Street Addressing”. Taken directly from a USPS.gov webpage:

[...] with Street Addressing, a customer’s mailing address may be either the street address for the Post Office where their PO Box is located, followed by # and the box number, or PO Box followed by the box number. Some merchants do not allow shipping to a PO Box address. The Street Addressing option enables customers to receive packages and deliveries from private carriers who require a street address for delivery, such as UPS and FedEx.

Using their examples, instead of:

PO Box 3094
Collierville TN 38027

You can ask for mail to be sent to:

131 S Center St #3094
Collierville TN 38027

[Read more...]

Self-Employed Lifestyle Design from the 1970s: The Incredible Secret Money Machine Book

What is success? Perhaps you think of a new idea, get some venture capital, grow and scale like crazy, and then you sell it after a few years for mega-millions. More traditionally, you work your way up the corporate ranks, become a manager/executive, and make good money that way. Or perhaps you start a small business and expand it over decades. All are good and fine.

However, there are people out there that take yet another path. Their priority is to be able to do what they enjoy without interference and get paid adequately for it. These micro-businesses are self-funded, independent, and happy that way despite the inherent drawbacks. One person. No bosses. No employees. Some get rich, some don’t.

Which bring me to this book, The Incredible Secret Money Machine by Don Lancaster (see free download link below). First published in 1978 and updated in 1992, this is one of the few books that I’ve found that celebrates the idea of a person working for themselves and that being enough. There is a lot of outdated references in the book along with a “hippie” vibe, but also a lot of timeless ideas. To give you an idea of whether your personality aligns with this book, here are his four basic beliefs:

1. You have to be heavily into a technical or craft trip on a total lifestyle basis.

The absolute single most important thing in your life has to be doing something technical or artistic in a better and a different way than anyone else. [...] Your own trip has to be the absolute center of everything you do, everything you work with, and everything you believe in. Doing it has to be much more important to you than making money, more important than worrying about what people think, and more important than behaving, competing, or complying the way that other people think you should.

2. You must want to stay in control.

[Read more...]

Tweaking Common Advice: Take Risks While You’re Young

A common piece of advice I’ve heard is “Take risks while you’re young.” This is often applied to personal finance, in terms of trying to land a higher-paying job, starting a new business, or pursuing your passion. The thinking goes something like this:

  • The older you are, the more likely you’ll have a spouse or partner that depends on your income, or at least they’ve become accustomed to how it makes their life more comfortable. They may not be supportive of having it disappear while you chase a dream.
  • You’re more likely to have children, who will take up all your free time and you’ll (hopefully) be happy about it.
  • You’re more likely to need to take care of your parents. Simple addition tells us that if you’re in your 30s and your parents had you when they were in their 30s, that means they’re in their 60s or 70s.
  • Basically, as you get older the more likely you’ll have more responsibilities and less time.
  • More responsibility increases the importance of income stability over income potential.
  • Less time means you can’t go on crazy streaks like 100-hour workweeks on your startup (or 60 hours on your side start-up on top of your regular 40 hour/week job).
  • On top of all that, older often means less energy.

[Read more...]

Your Entire Financial Life in One Deceptively Simple Chart

Time for fun with charts! A famous chart in the early retirement community is The Crossover Point from the book Your Money or Your Life, which shows that you’ve reached financial independence when your investment income equals your monthly expenses:

Fellow blogger Adrian of 7million7years also shared a related chart from Chris Han of Quora, where wealth is the shaded area between your income and expenses:

Specifically, if you plotted all your income and expenses over time, the shaded area between would the amount you’ve saved your entire financial life. Bigger shaded area, bigger nest egg.

[Read more...]

Links: How to Make Money in the New Share Economy

Forbes has an article about how the share economy is taking off. The primary focus is on AirBNB, which lets you rent out a room in your home with ease and last year booked around 15 million nights of stays. I’ve written about some of these sites before, and while I mostly forgot about them, some people are going quite well with them. “Almost anything you can buy new, you can also rent from a stranger.”

One person lives off of income generated by renting his house out whenever he can (while he cordons himself off to an unattached area). One person makes more money dog-sitting from home than working at Starbucks. One person rented his car out part-time for more than the monthly payments, so now he has three cars being rented out. Yet another drives his car around ridesharing every night and is basically a taxi service. These people may be the exception rather than the rule, but is it proof that the next generation of millennials really don’t care about ownership anymore? Is it better to just have access to whatever you need when you want it? Peer-to-peer everything!

Here’s an infographic from the print version of the article that lists sharing websites of all types from around the world, with the data source being Rachel Botsman of CollaborativeConsumption.com.

Here are links specifically dealing with sites that allow you to make money from your own stuff (US-focused only) – be it a room, a car, or your power tools:

What Is Your Holstee Manifesto?

Apparently I completely missed this when it first became popular, but the Holstee Manifesto is a set of ideals put forth by the founders of Holstee, a small apparel company which only sells environmentally-conscious and sustainably-sourced products. (Holstee = Holster + Tee, which I don’t think is even sold anymore.) I discovered it today only due to a LivingSocial deal selling a large poster print for $30, designed by Rachael Beresh.

My favorite line is actually “If you are looking for the love of your life, stop; they will be waiting for you when you start doing things you love.” (Although it didn’t happen to me… I was just working a part-time gig to help pay for college.)

What would my own manifesto include? Definitely something about freedom, but that could be taken as similar to doing what you love and following your passion. The difference is that I also appreciate being able to do required and difficult things, as long as I get to do it my way. I hope that made sense.

Instead, I suppose I’d add that if you want to “Keep up with the Joneses”, well, the truth is the Joneses are nearly broke, live paycheck-to-paycheck, and will work until they are quite old. Being different than the Joneses is the only way to go; there are many ways to do so but you have to pick one and be *proud* of it.

Caine’s Arcade: Creative Kid Entrepreneur + Follow-Up

If you haven’t seen this film about 9-year-old Caine and how he turned loneliness and boredom into his own cardboard video game arcade and an inspirational phenomenon, you must watch it now:

There’s also now a follow-up clip with Caine, his $200,000 college fund, kids he’s inspired, and the Imagination Foundation the filmmaker started:

Finally, check out the Cardboard Challenge happening on October 6th at locations around the globe. Very cool.