“You all laugh at me because I’m different, I laugh at you because you’re all the same.” — John Davis
Financial advice abounds everywhere we look. It is not difficult to discover. And yet, the statistics paint an ugly picture that it may not be working so well. The average American family still holds $6,700 in credit card debt and 76% live paycheck-to-paycheck (just to name a few).
Unfortunately, most people think more money is the answer. And while there may be some truth to this solution, most of us would readily admit that our most basic needs (food, shelter, and clothing) are financially covered. It appears then that most of our financial troubles are not based in need, but in cultural expectations—that because we live in a society based almost entirely on consumption and the promotion of it, we have too subtly bought into the lies and built our lives upon them far more than we realize.
Perhaps, then, the pathway to financial freedom requires a bolder, more countercultural approach. One that intentionally begins to question the messages we believe and looks elsewhere for answers. To that end, consider this list of 8 Bold, Countercultural Decisions to Find Financial Freedom.
Each of them questions culturally-accepted norms. Before you begin, know that we believe and practice each item on this list. We have found wonderful freedom in them. And whenever appropriate, I’ll share the story of how we arrived at each decision.
Eight Countercultural Decisions to Find Financial Freedom
1. Purchase based on necessity, not possibility.
Especially in large purchases, consider necessity over possibility. When we bought our first home, we went to the local bank for pre-approval. They approved us for a loan up to $135,000. And… we immediately started looking at houses up to $135,000. We based our search entirely on possibility. There was no consideration given to our actual needs.
When we found a new, higher-paying job, we were pre-approved for a $300,000 loan and… we immediately started looking for homes in that range. Our purchase became a heavy burden in payments, maintenance, and upkeep. During that season of life, we discovered minimalism. Our desire for physical possessions changed dramatically. As a result, when we moved into a new home two years ago, we determined our ideal house based on necessity, not opportunity.
Our payments are smaller. Our upkeep is easier. Our lives are more freed to pursue other passions. We have never regretted the decision. And I actively encourage others at every opportunity to purchase based on need, not possibility.
2. Never carry a car payment.
One financial decision that has had a profound impact on our financial well-being was our wise decision to always pay cash for our vehicles. Subsequently, we have never had a car payment—ever.
I bought my first car from my parents with money I had earned working at a local carwash. And all future car purchases were based on the most reliable car (or mini-van) we could afford with cash already in the bank.
We have never owned a brand-new car or one that turned heads in traffic, but we’ve also never felt stress or regret over a car purchase. And if you ask me, that’s a pretty fair trade.
3. In dual-income households, don’t spend the lesser income.
One of the most valuable pieces of financial advice we ever received came early in our marriage when both my wife and I were working. My boss encouraged us to live entirely on my income and save every penny my wife earned. We did just that. Her earnings became our first down payment on a home.
But more importantly, it prevented lifestyle creep from setting in. And when our first child was born, becoming a one-income family was an easy transition.
4. Avoid alcohol.
Countercultural? For sure. Financially-beneficial? Absolutely. Even-possible? Definitely.
I inherited the lifestyle from my grandparents. Both sets refused the consumption of alcohol for different reasons (some personal, some religious). But regardless of their reasoning, the pattern continued with my parents, myself, and my siblings.
While financial concerns were never a chief motivator, the decision has resulted in significant, personal financial benefits for us. Americans spend $50 billion each year on alcohol—despite the fact that 34% of Americans don’t drink. This is a significant expense for many families. Removing it completely returns a significant amount of discretionary income.
And adding other unhealthy behaviors to this decision results in even greater returns.
5. Never retire.
I learned it from my grandfather. He worked full-time until 7 days before his funeral at the age of 99.5 years old. I learned from him the value of work and the importance of seeing work as contribution. This view of work changes everything.
Work is no longer something to avoid or retire out of as soon as possible. Instead, work becomes joy. Now, just to be clear, it is still wise to plan financially for the future and old age.
The truth remains that our physical bodies break down and some types of work become difficult (or impossible in some cases) to continue. I would never argue against the importance of transition in life or saving for it. But getting set in a mindset that only looks forward to retirement without the possibility of embracing work during it is one that should be adjusted. And ought to impact our financial decisions today.
6. Pay with cash.
Every study reports the same finding: We spend more when we pay with plastic than when we pay with cash. And one of the most commonly offered pieces of advice for those trying to stick within a budget is to pay with cash rather than credit. Yet the strategy remains rarely used.
While we have only used the strategy off and on over the years, we have found great personal benefit each time. Not only does it help us stay within a budget, but it also helps us keep a tighter record of where the money is going. And greater intentionality in tracking expenses is advantageous regardless of your income level.
7. Give away (at least) 10%.
There are numerous religious traditions that teach the importance of giving away 10% of income. Personally, it is a financial philosophy that we have put into practice during times of both little and plenty.
Certainly, the gifts benefit the receiver. But more than that, the gifts benefit the giver. Generosity is an important step towards contentment. It brings the fulfillment and joy and meaning to life that is often sought in financial purchases and personal gain. It reminds us of how much we already have and how much we have to offer others.
And while it seems entirely counter-intuitive, one of the most important steps we have taken to financial freedom is to embrace the practice of giving some away.
8. Put the spender in charge of family finances.
While this may or may not suit your family’s unique dynamics, it has been entirely helpful for mine. I hold a college degree in Banking and Finance and Accounting was one of my favorite classes in high school (seriously, thanks Mr. Fink). I understand budgets, spreadsheets, assets, and liabilities.
But my wife is a bigger spender than me. And one of the most helpful actions we took as a family was to put her in charge of the finances rather than me.
Because our bank account levels were always small, she became far more careful with her purchases… and worked hard to keep me in line too.
Again, I don’t offer this list as an exact prescription for each reader. Each and every family situation is entirely unique. What has worked for us may not work for you. But if financial freedom has eluded you, earning more money may not be the answer. It may require a bolder, more countercultural decision to getting out of debt..
DJ says
I like it all, Josh. But that last point makes me nervous. I’m the soul earner and most of our debt is in my name only. If I put the spender in charge, I’m afraid my credit score would plummet. It all comes down to control and faith. Both of which I’m lacking right now.
joshua becker says
Each family is unique and each point may not be as appropriate for others. But #8 was a helpful shift in our family.
Ron J says
Great article. I would add another point; quit watching television or engaging any type of media that is primarily a vehicle for advertising. If you think you immune from the influence of advertising, think again. All of these ads attempt to make you feel dissatisfied with your current life, and promise to make your life better if you will only but their product. While most thinking people know this is false, we still fall for it, or they wouldn’t keep doing it! Every purchase begins with a whim or a want. Exposure to advertising creates whims and wants where none previously existed, so just don’t expose yourself to it, and be more satisfied with your life.
DJ says
Suddenly, Pinterest has done this for me. I am going to stop pinning. :)
Cameron says
Added benefit of disconnecting the television: not spending money for cable and not buying the latest flatscreens. Rather, use the computer to stream news, listen to public radio, and READ (now, there’s a concept)! Additionally, disconnect the landline: use SKYPE or Googevoice for no-cost phone calls. Prepay-cellphone plans are affordable.
laura m. says
Cameron: agree, we just got a new 40 inch flat LED but most cable shows are really a waste of time, like reality shows, other TV shows, not much educational except PBS and several others. Talk shows sometimes are educational. If I lived alone, I would ditch the cable and use an inside antenna having more money for giving to my favorite org. and charities. I read news, etc. online.
Rosalie says
Cameron, the only point I disagree with you on is disconnecting the landline. Ours is not terribly expensive and the plan on long distance calls is very good. Where we live, on a farm, and driving on country roads, cell service is poor. Calls are often dropped mid-conversation and texts are often received long after they were sent. My librarian and I agree with you whole-heartedly about the READ concept! :)
Cal says
Oddly, pinterest does the opposite for me. Being able to look at a collection of things without owning them somehow frees me from the desire to acquire that set of things.
Donovan says
Oddly, Pinterest has helped me become more interested in minimalism, not consumerism. There are still a lot of things one can learn using Pinterest. Try pinning different things. Just a friendly suggestion :)
joshua becker says
Very true Ron. Corporations don’t spend billions of dollars on television commercials because they think they can get you to buy their product, they spend that much money because they know they can get you to buy their product.
Kim says
Hi! Thanks for your blog/FB Page. I definitely agree with your philosophy. I am a huge fan of Dave Ramsey (www.daveramsey.com) and follow most of what you have shared. Thank you for what you are doing…..helping people see the bigger picture in life and leave a legacy! :)
Jo Bennett says
Your adage of spending based on necessity, not possibility, is a good one, Joshua.
This plays on our desire for immediate gratification. Flashy item now, but not enjoy what the possible extra money from downsizing could have done for us later. Un/fortunately we learn from experience what being strapped for cash feels like versus that sense of relief when not feeling stretched.
In Canada, the use of debit and flash cards for purchases is commonplace, so that’s my substitute for cash. When the account is empty, it’s empty! (I like being able to see a computer record of my spending too) In regards to credit cards, I only have one and the limit is quite low. This keeps my use of it in check. (it’s mostly used for reservations or for digital purchases) This forces me to pay it off monthly so I have access to that credit again. In case of large unforeseen expenses, I have a hefty credit line (low interest!) available if need. (I note here that we have provincial health care so I never have to worry about paying for a sudden hospital bill on a weekend!) How do I control the use of this credit line? The key is knowing my habits! I don’t have access to it online or at an ATM. Basically, I can be lazy so if I have to walk into my branch and ask them to withdraw money for frivolous shopping, then I won’t bother or I will think twice! haha! Both my husband and I do the finances together. Regular meetings encourages us to evaluate our goals and helps keep us both accountable.
As for a car, we don’t have one! (live in a big city with decent transit, or we walk/bike)
As for retirement, we are both self employed and enjoy it so we’ll likely keep at it for a long time!
Jo
p.s. My accounting teacher was Mr Finkelstein :-)
Gary says
Love your blog. Re: “never retire.” There are, of course, millions of “retired” people who work/volunteer for no money and contribute mightily to their churches, service organizations, schools, and other groups in their communities and elsewhere in the world. Retire from life? Never. Be good for nothing! And work for pay if it brings meaning and joy to others and yourself in later years — or like many older people today because they must financially.
joshua becker says
Thanks Gary. I agree wholeheartedly. “The best fruit grows on the oldest trees.” Keep contributing (paid or unpaid).
Seth says
This is really good stuff! This blog is slowly helping to change lives of myself, my wife and three daughters… Keep up the good work!
joshua becker says
Thanks Seth. Keep up the journey.
Victoria R. White says
Wow, we have lived our lives just like you explained above. I’m keeping this post to share with our children, nieces and nephews. Thank you.
joshua becker says
Great. Though I’m sure your example will be far more effective than this post.
chrystal says
Thank you for your articles and links to educational sites. Found your website a while back via the minimalists. Everytime I need a reminder and self-check on this simplifying track, I read blogs like yours. I found it hard to “achieve minimalism” at first and realised that it’s so much more than just paring down (although that is a highly recommended start!). I am seeing the change in my family life and hope to continue on this journey. It is definitely a countercultural one. Keep up the good work! Many Thanks.
joshua becker says
Thanks Chrystal. It’s a pleasure to be a small part of your life’s journey.
maggie s says
for the record, while Kim may have earned a paycheck for her work early in your marriage, she has never worked harder, longer, more selflessly, and more loyally since the paycheck vanished and the REAL work began!!! What she contributed to purchasing your house pales in comparison to what she has contributed to making it a home!!!
joshua becker says
I certainly wouldn’t disagree with statement. I hope I didn’t give that impression above.
maggie s says
NAWWWWWWW I know you better than that, Josh….just giving Kim (and moms everywhere) a shoutout!!
Kristi says
Thanks Maggie, I personally appreciate the support. In my experience, although my husband was more than willing to work while I stayed home, I found that I was never taken as seriously once my paychecks stopped. It’s a shame when priorities and values can differ so grossly.
Andrea says
God always takes you seriously and His opinion is the only one that matters! For both working and stay-at-home moms (me being stay-at-home) Jesus’ death and life is my validation! His alone is enough! Amen!
laura m. says
On retirement: People I know that are self employed and older ones that are semi retired work as a hobby, others like my husband took an early retirement at 62 since shift work wears you out over time and is hard on the family. We actually have more money now than when he worked, as we drive way less and did most our travelling years ago. If you work for a company and want to retire and have the money go for it; after all you can’t take the money with you as I’ve known some who never get to enjoy retirement. As for the 10% giving, most I know don’t keep track of what they give, like me they give when they feel the need to. Churches that demand 10% are money pits and in constant debt. Give to charities in your community instead.
joshua becker says
Thanks for the comment Laura. Sorry you’ve had such bad experiences with churches, my experiences have been different… of course, I’ve never attended a church that demanded 10%.
Monica says
My experiences have also been different. I’ve never attended a church that demanded any percent of my income. When doing our budget, we may cut out a lot of things but we feel blessed to be able to contribute 10% (at least) to spread the good news that we believe all people in all financial brackets are in need of. We’ve also noticed that as long as we have been giving 10% we have had all of our own needs met.
Katie says
My church does not demand a percentage either…I give because I feel blessed to be part of the community and I want to support the programs that are offered.
Cayla says
Thanks for the article and I love the blog! Laura, you’re probably right about most people not keeping track of what they give; most people don’t actually stick to a budget. That’s why the encouragement offered here is not to be like most people, but to be countercultural. In order to be responsible givers, we try to be deliberate givers. A certain amount is budgeted in and set aside at the beginning of each month. Then we can intentionally choose the causes we support, but we also can choose to leave room for spur of the moment giving. As our debt decreases or as our income increases, we can increase our percentage of giving as we maintain the same lifestyle. If we don’t give away everything that we budgeted for that month, we roll it over to the next month’s giving amount. We find this to be a fulfilling and sustainable way of giving financially, so maybe someone else will find it helpful.
Niko says
I love the comments of those who give for their own compassionate reasons, rather than a religious demand.
I would like to offer one piece of clarification: the Church of Jesus Christ of Latter-Day Saints is one of the churches that expects 10%, but it is one that is NOT in debt. I happily give that in addition to other donations to local organizations and programs not associated with my church.
Donovan says
My church has never demanded anything. The pastor mentions proper stewardship of our time, talent, and money ONE time per year, then doesn’t say a word about it the rest of the year. Our church has NEVER had to do a fundraiser and has always had its financial needs met by the sheer generosity of the congregation.
I believe this is the approach all churches should take toward stewardship. People are protective of their money, but also love to feel like they’re making a difference and contributing to a greater good.