Recently I started reading this book called “The Elephant in the Room” by Ed Baker.
It’s very well written, short, and approachable. And one of the things I enjoy about it most is how it gets straight to the point.
So I’ll do the same thing for you today.
The elephant in the room is our behavior. Specifically our behavior concerning money.
Our behaviors will have the greatest impact upon our financial future.
And while this may seem obvious to some, I want to point out what wasn’t said.
It’s not about the:
- Retirement accounts you choose
- The stocks you pick
- Amount you make a hour
- Budgeting app on your phone
- Success of failures of your past
But it is about :
- Your behavior.
“Obtaining financial success is simple. Change your behaviors today for a better future tomorrow”.
Talkers VS. Doers
At the time of this writing I’m 28 years old, and I’ve already lived long enough to see that:
“Some people are all talk”.
This won’t be a negative post, but it will be realistic.
For example, how many people do we know who said in January of this year they were going to get serious about their finances?
(And where are they now? I rest my case).
Reality Check : I’d be the first to tell you that I was among that group for many years.
Always promising. Always hoping. Always wishing.
One day I’d really get serious about getting better with money. But with that procrastinating mindset, that day never came.
At some point I had to finally do something. I had to transform from a Talker to a Doer.
And that’s what this book is all about.
Rather than focusing on specific stocks or trying to earn the ideal amount of money per hour, it encourages us to focus on our behaviors.
Question:What are you doing today to give yourself a better financial future?
Insanity Defined
Insanity has long been defined as doing the same things over and over and expecting different results.
I would add the following to the above definition.
Insanity is doing the same thing as everyone else and expecting your outcome to be different.
Another definition of insanity
So when will your behaviors finally change?
What will it take for you to make up your mind to be different from the crowd?
One of the greatest pieces of advice I’ve ever heard in relation to finances is this:
“Stop caring what other people think about you”.
Great Financial Advivce
Too often we exhibit detrimental behaviors because we don’t want to “look broke” or “miss out on all the fun”.
When you allow people who don’t pay your bills to affect how you spend your hard-earned money, you’re in serious trouble.
Talkers say :
- I’ve really been thinking about starting a budget
- I know I need to get on top of my finances this year
- I love (insert financial guru’s name here) but it’s just so hard not to have my (insert money trap here)
Doers do:
- Have a budget
- Actively save money. Even if it’s a dollar a month.
- Listen and act on the things the learn
One of the biggest differences between a Talker and a Doer is that a Doer will act on new information as soon as possible.
Even if their actions aren’t initially perfect, they still act on what they now know.
They understand they are in the process of seperating themselves from the crowd.
Small pain can lead to great gain.
The Shocking Truth
Everyone will pass on and leave this world one day. Unfortunately there will be some who heard all their lives what they should’ve done to have financial peace and independence.
But they never transformed from a Talker to a Doer.
Consequently they pass on and leave their spouses struggling to pay for a funeral. Children have no money set aside for college. The family has to leave their home because they now realize how they never could afford it to begin with.
Too little, too late.
The constant fear of being “different” from the crowd kept them in a financial headlock till their dying day.
Practical Steps To Better Behavior
I’ll list a few problematic behaviors and possible solutions to them.
Eating out
Without a doubt restaurants are fun, convinient, and a great way to bond with friends. On top of all that, all you have to do is shw up!
Someone else will seat you, bring you a drink, and your meal. They’ll speak kindly to you and reappear often to make sure you’re having a great time.
But how much does this cost?
That’s the question we should be asking ourselves. Because whether we are eating out for our lunch breaks, or for dinner, it all has a cost that adds up quickly.
If you spend $10 a day at lunch, Monday -Friday, that’s $50 a week. Plus the cost of gas to get you to those places.
Eating dinner at a restaurant (or buying to-go) also costs significantly.
It takes time to go grocery shopping and to cook, but it is well worth it. Rather than giving your money to restaurants, buy your own groceries and cook your own meals.
Your future self will thank you for it.
Car notes
Imagine working a job so you can pay a hefty car note.
Now imagine driving that car to your job so that you can
What’s the big deal? Everyone has a car note right? Wrong. Some people purchase a $5,000 car with cash instead of financing a $20,000 car over 5 years.
That way they can keep more money from their job in their pocket. The lower their expenses, the more money they keep.
Peer pressure
When was the last time someone asked about your budget before they invited you out?
If you’re making minimum wage, is it smart for you to go to a restaurant with friends where the appetizers alone cost $20?
Consider this. If you’re making $7.25 a hour, it will take 3 hours worth of work to be able to afford just a appetizer! Don’t get me started on drinks, the entrée, or dessert!
Instead, learn how to say no. No is a complete sentence. You don’t owe anyone a explanation either.
Another thing you could try is suggesting something more affordable like buying a drink and relaxing in the park.
Key Takeaways
- Find out what your values are and pursue them.
- Understand the very real power of Delayed Gratification
- Beware of the dangers of Instant Gratification
- Never ever but never try and keep up with the Joneses
Conclusion
Hopefully today’s blog post has inspired you to take action.
Today is the day to start making a difference in your behaviors. You have the greatest influence on what happens with your money.
Don’t rob yourself of future happiness by indulging in vanity today.
Just a little food for thought.
Until next time, yall have a good one.
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