The RBC Philosophy
So what is Retired by Choice all about? In no particular order, I believe:
The children are our future. Teach them well and let them lead the way.
There is hope. No matter what your financial position, no matter how much you make and how much you owe, I believe that it is possible for everyone to get out of debt and become financially sound. Retired by Choice exists to promote this belief.
Money is important. It isn’t and shouldn’t be the most important thing in your life, but it ranks up there. Without money it is very difficult to survive in our society.
Money should be kept in perspective. As important as it is, there are many things that should me MUCH more important to you. Health, Relationships, Family, etc.
Money = freedom. Many people see money as a means to getting the things they want (i.e. money = stuff). I see money as the means to having the freedom to do whatever I choose. I think the difference is profound.
You need to know how to manage your finances properly. Throughout your lifetime you will make decisions every day that relate directly to your finances – important decisions that often have an impact for years into the future.
You already know how to manage your finances properly. The key to sound financial management is easy and well-known. It all boils down to one simple concept: Spend less than you earn. It really is THAT simple. Of course there is more to it — everyone has a unique financial situation and that uniqueness can add layers of complexity. But in the end if you can’t spend less than you earn you will never be financially stable.
You will make many financial mistakes. Everyone makes mistakes and poor decisions that impact their finances. I have made (and continue to make) HUGE mistakes – especially in the beginning of my life. It is how you deal with those mistakes that matters.
Many people do not manage their finances well. Whether it is because of a lack of interest, lack of motivation or just plain not caring many people simply don’t do a good job managing the financial aspect of their lives.
Debt is bad. In general I believe that owing money to others is bad because it gives you less control over your finances.
Interest sucks, unless you are receiving it. I love receiving interest, but I absolutely LOATHE paying interest. Funny how that works isn’t it? To me every penny I have ever paid in interest is a penny I have wasted and no longer have to spend/invest/save.
Saving is good. In general I believe that the more money you can save the more freedom you will have in your life. Much of Retired by Choice is about getting you into a financial position where you actually have choices, not just be tied into a certain path.
People need to take responsibility for their financial actions. If you make a decision you should be willing to live with the consequences. Too often in society we look to blame others for our own failures. In particular, bankruptcy should be the rare exception rather than the norm.
Credit cards are not evil. This may surprise you, but credit cards are not the cause of our societal financial woes. The way people use credit cards is the problem. I use credit cards for most of my purchases, but I also pay the entire balance off each month.
Banks are not evil either. Banks exist to make a profit for their owners just like any other corporation. The difference is that banks “sell” money instead of selling goods or services. Nobody is forced to use a bank. We do so because banks are convenient and offer services we are conditioned to think we need. Although it is less convenient to do so, it is entirely possible to go through life without a banking relationship. I know people who have.
Mortgages are a necessary evil for a lot of people, but they are a horrible deal financially. I’m not a big fan of paying interest so the fact that I don’t like mortgages should be no surprise. Yes, I have had a mortgage in the past like most other people. I totally get that the vast majority of people can’t afford to come up with enough cash to purchase a house. I get it, I understand why people (including myself) need them, but I still think mortgages are a very bad deal. One day I hope to show the numbers, but this means breaking out the math. Math is good for about two things: starting arguments or putting people to sleep. I try to avoid math as much as possible and I urge you to do the same.
Math sucks. See above.
