Wealth Bear Trap! Watch out.....

Today’s Bear Trap built up over the last 10 years, is derived from very low interests rates. Its allowed ever greater consumption with no growth in income. More stuff, more excess, but little real extra wealth is what most income from wages and salaries and loans is spent on.

Low interest rates have many economic commentators and politicians saying “hey high debt is fine because interests rates are low and not going away anytime soon and we all have a job- don’t we?”. Don’t look to them for guidance for what’s right.

This is a trap and it has teeth like those used for hunting bears. 90% of the population is standing inside the jaws of this bear trap, inches away from triggering it, if the world doesn’t do it for them first.

You have to view things through a new lens of what matters in order to make change easy and to step from the bear trap and into real comfortable wealth.

Start by going away for a weekend with your partner and no-one else (hopefully a nice pleasure!). No phones. No TV. No sport/activities. Now spend hours just being in the moment- get bored even.

Sit and be still. See what’s around you and let your mind wander to things not about work, money or family.

Half way into the weekend, ask yourself this; “I/we have 15 years to live and healthily so; and then I/we drop dead! What do I want to do over these 15 years? How do I want to make an impact on the world around me and on those I care about?”

Now write it all down. Don’t qualify or dispel any of it. It doesn’t matter how crazy it sounds. Just get it down and allow yourself to imagine what it’s like. Share this with your partner once you have enough written down. It’s harder than you think. 1 year is easy, 20 allows you too much slack.

This will take time and several goes at it. Be patient; take a few months of various large and small conversations and moments. Above all be courageous to let go of all the typical excuses you may come up with. For example, ‘I’ve got kids to educate, responsibilities, a career, a mortgage - I can’t just throw all that way’.

Change by increments nothing radical. Reduce not cut out. Forget about what your friends and colleagues will say. It’s not their life, it’s yours! This will be a road less travelled, but boy what a great road to travel along. Try these small changes to begin;

• Halve eating out and reduce by 1/3rd what you spend each time. Buy no new clothes for 6 months.

• Don’t trade in your car for another one for at least the next 7 years (if its less than 5 years old)

• Don’t buy a new phone or gizmo UNTIL it crashes. Then replace with ‘ -2.0’ behind the latest version

• Just 2 credit cards. One in your wallet the other locked away and not accessible via your phone either.

• No more trips to Bunnings for ‘home improvements and no buying anything for the house for the next year

• No major purchases of anything for the next year

• Be the inverted snob in your circle of friends (never have the best or latest in anything)

• Place all screens in the house on a timer. Just 1.5 hours per day. (Your kids won’t die and nor will you).

• Turn off all mobile phones and internet after 7pm.

Don’t spend what is saved from the above. Spend 15 minutes on a set time each week and calculate what hasn’t been spent. Keep a tally. List what you spent on Pleasures and what’s spent on Gratifications. Why this seemingly random list? In the next instalment we will explain why.

Some great freads to inspire you: Motivated Money (Peter Thornhill) Sell up, Pack up and Take off (Stephen Wyatt) The 4 hour Work Week (Tim Ferris) You Unlimited (Christopher Lyons) The Subtle art of Not Giving a Fuck!