How to prepare for a natural disaster

My world is on fire.

As you may have heard, much of Oregon is burning right now. Thanks to a "once in a lifetime" combination of weather and climate variables -- a long, dry summer leading to high temps and low humidity, then a freak windstorm from the east -- much of the state turned to tinder earlier this week. And then the tinder ignited.

At this very moment, our neighborhood is cloaked in smoke.

Continue reading...
More about...Home & Garden

Accentuate the positive, eliminate the negative

When Kim and I go to bed each night, we spend time casually browsing Reddit on our iPads. It's fun. Mostly.

She and I enjoy sharing funny animal videos with each other (from subreddits like /r/animalsbeinggenisuses, /r/happycowgifs, and /r/petthedamndog). Kim dives deep into /r/mapporn and /r/documentaries. I read about comics and computer games and financial independence.

But here's the thing. After browsing Reddit for thirty minutes or an hour, I'm left feeling unsatisfied. In fact, I'm often in a bad mood. After browsing Reddit, I have a negative attitude. My view of the world has deteriorated. Why? Because for all the fun and interesting things on Reddit, it's also filled with a bunch of crap.

You see, I also subscribe to /r/idiotsincars and /r/publicfreakout and /r/choosingbeggars — and dozens more like these. These subreddits highlight the worst in human behavior. And while viewing one or two posts from forums like these can be entertaining and/or interesting, consuming mass quantities of this stuff leaves me feeling dirty. (Plus, there's the Reddit comments which tend to be juvenile, dogmatic, and myopic. Reddit comments are so bad that Kim refuses to read them.)

It's taken a while, but I've come to believe that Reddit -- or the way that I use Reddit, anyhow -- is a net negative in my life. It causes more harm than good.

I've been thinking about his concept a lot lately. Behind the scenes, I've been making many small, subtle changes to my environment and daily routine. My aim is to decrease my depression and anxiety by removing people, things, and experiences that are net negatives and replacing them with people, things, and experiences that are net positives.

Continue reading...
More about...Planning

We didn’t start the FIRE: The true history of financial independence

I used to be a collector. I collected trading cards. I collected comic books. I collected pins and stickers and mementos of all sorts. I had boxes of things I'd collected but which essentially served no purpose.

I can't say I've shaken the urge to collect entirely, but I have a much better handle on it than I used to. A few years ago, I sold my comic collection and stopped obsessing over them. Today, I collect three things: patches from the countries I visit, pins from national parks, and -- especially -- old books about money.

Collecting old money books is fun. For one, it ties to my work. Plus, there's not a huge demand for money manuals, so there's not a lot of competition to buy them. (Exception: As much as I'd love a copy of Ben Franklin's The Way to Wealth, so would a lot of other people. That one is out of my reach.)

One big bonus from collecting old money books is actually reading these books. They're fascinating. And it's interesting to trace the development of certain ideas in the world of personal finance.

For instance, there's this persistent myth of "lost economic virtue". That is, a lot of people today want to argue that people were better at managing their money in the past. They weren't. Debt (and poor money skills) has been a persistent problem since well before the United States was founded. It's not like we, as a society, once had smart money skills and lost them. The way people manage money today is the way they've always managed money.

Or there's the notion of financial independence (and the closely-related topic of early retirement). The standard narrative goes something like this:

When you read old money books, however, you soon realize that FIRE isn't new. These ideas have been kicking around for a while. Sure, the past decade has seen the systemization and codification of the concepts, but people have been preaching the importance of financial independence for about 150 years. Maybe longer.

Today, using my collection of old money books, let's take a look at where the notion of financial independence originated.

Continue reading...
More about...Retirement

Introducing “Morning Musings”

Update! I've had a couple of people email to ask if I plan to host these videos here on the blog. The short answer is "no". The long answer is "maybe eventually". But I realized that I could make it easy on folks by embedding the Morning Musings playlist at the top of this article. So, here it is. In theory, this should get updated whenever I post a new video. This is an embedded playlist, and the most recent video should appear at the top. (In theory.)

For years now, I've wanted to start a Get Rich Slowly channel on YouTube.

Well, I guess that's only partially correct. I have a GRS channel on YouTube; it's just not very active. So, I guess what I mean to say is that I want to have an active GRS channel on YouTube.

There are lots of barriers, though, all of which are purely mental. I worry about how I look. I worry about how I sound. I worry about production quality. I worry about the amount of time this will all take. Basically, I'm paralyzed by the need to be perfect.

Continue reading...
More about...Administration

Action creates motivation

Human beings are interesting creatures. I'm fascinated by them. That's probably the reason I was a psychology major in college. It's certainly the reason that I believe (strongly) that everybody is talented, original, and has something important to say. (That bit of philosophy is something I picked up from Brenda Ueland's marvelous book, If You Want to Write.)

People are awesome — even if we're each flawed in our own way.

One thing I've noticed over the past few years is the dichotomy between knowing something and doing something. It's one thing to understand a concept or fact intellectually; it's a completely different thing to experience a fact or concept, or to put it into practice.

Continue reading...
More about...Psychology

I am the one thing in life I can control

Three weeks ago, I drove from Portland to Colorado Springs to participate in Camp FI, a weekend retreat for people interested in financial independence and early retirement.

Under normal circumstances, I wouldn't drive this distance. It's a 1300-mile trip that takes at least twenty hours to cover. Or, if you're me, it's a 1400-mile trip that takes 23 hours of driving spread over two days.

But, in case you haven't noticed, we're in the middle of a global pandemic, and although I'm not nearly as cautious as many of my friends, I don't relish the idea of confining myself to close quarters with dozens of strangers for hours on end in an airplane. Besides, I like to drive. And I love the beauty of the American west. And I needed some time alone to think deep thoughts — and to listen to the Hamilton soundtrack over and over and over again.

Around noon on Day Two, as I exited I-80 in south-central Wyoming, I was listening to Hamilton for the fourth time in 24 hours when I was smacked in the brain by a lyric I hadn't heard before. I pulled off the side of the road to think about it -- and to make some notes.

Continue reading...
More about...Psychology

How to talk with your parents about their finances

Talking to your parents about their finances probably seems like one of the most awkward you conversations you could ever have. I'll bet it ranks right up there with the sex talk your parents gave you when you were a kid — or that you’ve had with your own children.

I grew up in the South, where we don’t talk about money or sex. So when I asked my mom where babies came from, she told me a man and woman "make love". That’s it. That was the extent of the conversation.

I have three kids, so clearly I figured out where babies come from. When my oldest was 10, she asked me where babies came from. I didn’t say something vague like, “A man and woman make love.” I simply told her the basics. She then looked at me – and remember, I have three kids – and said, “Ooh, you did that three times.”

I decided to be upfront with my kids because I wanted them to know they could feel comfortable talking to me about a topic that many people consider taboo. Like the money talk with parents, it’s only as awkward as you make it.

However, unlike the birds and the bees talk, you cannot figure out your parents’ finances unless you actually get the details.

I learned this the hard way.

Continue reading...
More about...Relationships

Great lessons from great men

Because I write a personal finance blog, I read a lot of books about money. I'll be honest: they're usually pretty boring. Sure, they can tell you how to invest in bonds or how to find the latest loophole in the tax code. But most of them lack a certain something: the human element.

Over the years, I've found that it's fun to read a different kind of money book in my spare time. I've discovered the joy of classic biographies and success manuals, especially those written by (or about) wealthy and/or successful men. When I read about Benjamin Franklin or Booker T. Washington or J.C. Penney, I learn a lot — not just about money, but about how to be a better person.

Here are some of the most important lessons that these books, written by and about great men of years gone by, have taught me.

Continue reading...
More about...Psychology

What is a robo-advisor? An introduction to automated investment tools

One of the joys of writing a money blog like Get Rich Slowly is the continuing self-education. I'm always reading and learning about personal finance. A lot of the times -- as in the past month -- this education is about esoteric topics. I'm currently diving deep into the history of personal finance, a subject that's interesting to me but admittedly not of much practical use in the modern world. (Today in the mail, I got a book about advertising and the use of credit during the 1920s. How's that for esoteric?)

But sometimes, this self-education does have practical uses, and it's stuff that I can share with you folks so that you too can become better educated.

For instance, I have a huge blind spot when it comes to so-called "robo-advisors". When I stopped writing here in 2012, robo-advisors existed but they hadn't yet become a Big Deal. By the time I re-purchased this site in 2017, things had changed. Robo-advisors had become a major force in the investment industry -- and I was clueless about what they were.

I've remained (mostly) clueless for almost three years now. I have a general idea of what robo-advisors are and how they operate, but only in the broadest sense. During our weekly planning call on Monday, I mentioned this blind spot to my business partner, Tom.

"You should write about robo-advisors," Tom said. "If you don't know what they are, I'll bet there are plenty of readers who don't know either. Do some research, write it up, and then everybody benefits."

Tom is a smart man.

Here then is my research into the world of robo-advisors. What are they? How do they work? And who should use them? Let's find out.

Continue reading...
More about...Investing

“Saving rate” vs. “savings rate” — What’s the difference?

Those who know me well will tell you that I'm something of a pedant. I'm not proud of it.

Left to my own devices, I'm one of those who'd go around correcting everybody's grammar. It grates on my nerves when people mangle their usage of "me" and "I", for instance. (It's never okay to say, "She gave that to my wife and I." And you can't make "I" possessive: "My wife and I's house is big." Blarg!)

That said, I've learned to let things go in my old age.

Continue reading...
More about...Money Basics