“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..
lyle @ the Joy of Simple says
Hey Joshua and thanks for a thoughtful post.
I’ve been enjoying a simple life for over twenty years and while I was never “converted” into the lifestyle, I found that how I was living fit in with many of the simplicity tenets we adopt.
I have never owned a car, I always pay cash for whatever I buy (thank you mom), I also do not drink, nor do I smoke or do recreational drugs.
What I do do, is live an enjoyable life teaching guitar and writing on my blog and while I am not a die-hard minimalist, I am a die-hard simplicity lover :)
Take care Joshua and thanks again for some great pointers. All the best.
Lyle
Lisa says
We do most of the things on this list as well, and not only is there the safety of knowing we have money in the bank to cover pop-up expenses, but there’s the added benefit of no money fights. Ever. In six years of marriage. Even when we had to replace both of our cars at the same time. :)
One thing I would add to your list is to have a financial goal. For us, it’s really hard to maintain focus if we aren’t working toward something. That’s what motivates us to stick to cash, or to remind ourselves that we don’t NEED that new thing all of our co-workers are raving about. It’s also what allows me to not feel guilty about working full-time with kids in daycare. We’re a few months away from paying off our house (yippee!!!), and I can say with 100% certainty that the amount we are putting toward our mortgage every month is always far more than what we would come up with if we were sticking the money in a savings account. For us, that goal is what has motivated us to do most of the things on your list.
Love your blog. Keep it up. :)
Kayla Dawn Thomas says
Wonderful post! My husband and I follow almost all of these principles, and we live with great financial peace.
I don’t fully agree with the never retire step. While I don’t condone retiring and sitting in a chair flipping channels for twenty years, I do think that retirement allows people to follow their dreams. It may mean leaving a job that didn’t completely satisfy you and freeing up time to start a business or write a book, which would technically mean you were still working. :) Retiring also frees up time to spend with family you might not otherwise have the opportunity to spend time with. There is also the freedom to volunteer and serve the world in other ways.
You had an amazing boss to offer you the priceless advice of living on one of your incomes. Not everyone has that kind of guidance when they are young. Kudos to him/her.
Lisa says
I completely agree with you! The reason we live the way we do is so that we don’t have to do what we’re doing now, forever.
tashanicole says
Great article!
I have never understood the principle behind number 7 though. Where did this 10% figure come from? I don’t believe there should be a “set amount” that we give to charity. Doesn’t that take away from it being from our heart, if it’s more of an obligation? I always think of the example in the Bible where Jesus said that the poor widow who only put in two small coins gave more than all those dropping in money because they dropped in out of their surplus and she gave out of her WANT. I believe we should all help out our fellow man, but don’t put a specific amount on it. And also, many times it is better to give of ourselves and our time than it is to simply give our money away.
Alesea says
The principle you don’t understand is exactly from the Bible you point about.\
Hope this helps.
Jennifer G says
10 % is in the O.T. when it came to supporting the Levites (the priests of the community, who did only that and needed community support to survive). N.T. does not set aside a specific amount and actually specifies only to save to support Paul while he was preaching the Gospel at a specific location and then no longer saving once he had moved on to preach somewhere else.
10 % to church or charity is not required (most places) but it sure does make you feel good when you can afford to do it.
joshua becker says
In Matthew 23:23, Jesus points out the expectation that our 10% gift would continue. If anything, the New Testament argues 10% should only be considered the starting point. It moves quite seamlessly from tithing to giving.
tashanicole says
At no time were first-century Christians commanded to pay tithes. The primary purpose of the tithing arrangement under the Law had been to support Israel’s temple and priesthood; consequently the obligation to pay tithes would cease when that Mosaic Law covenant came to an end as fulfilled, through Christ’s death on the torture stake. (Eph 2:15; Col 2:13, 14) It is true that Levitical priests continued serving at the temple in Jerusalem until it was destroyed in 70 C.E., but Christians from and after 33 C.E. became part of a new spiritual priesthood that was not supported by tithes.—Ro 6:14; Heb 7:12; 1Pe 2:9.
tashanicole says
As Christians, they were encouraged to give support to the Christian ministry both by their own ministerial activity and by material contributions. Instead of giving fixed, specified p. 1111amounts to defray congregational expenses, they were to contribute “according to what a person has,” giving “as he has resolved in his heart, not grudgingly or under compulsion, for God loves a cheerful giver.” (2Co 8:12; 9:7) They were encouraged to follow the principle: “Let the older men who preside in a fine way be reckoned worthy of double honor, especially those who work hard in speaking and teaching. For the scripture says: ‘You must not muzzle a bull when it threshes out the grain’; also: ‘The workman is worthy of his wages.’” (1Ti 5:17, 18) However, the apostle Paul set an example in seeking to avoid bringing an undue financial burden on the congregation.—Ac 18:3; 1Th 2:9.
Sowm says
Great post! I need to work on #7 though. I give away on occasions (birthdays/deaths/anniversaries/weddings) but I still haven’t been able to cultivate a habit of giving away regularly.
Paul says
Great photo! It’s one of mine I put up on unsplash, I’m stoked to see it on a site I read regularly :)
joshua becker says
Dude, that’s awesome! I use and send people to unsplash all the time. Thanks so much for your contribution and making the world a little more beautiful for everyone else.
finishedby45 says
“View work as a contribution.” Brilliant! So many of us who are on our way to financial freedom see quitting our jobs as the light at the end of the tunnel, which tends to make us miserable while we’re still working. Your way of reframing the concept of work is much appreciated.
joshua becker says
There is something to be said for “working just for the sake of work.” Our work ought to bring value to others around us. It ought to be a contribution to others—even selfless. And in that thinking, we find joy and freedom in it.
katie bulmer says
couldn’t have said it better myself. When you live that way you forget you are “weird” but i like it :)
Kathleen says
My husband and I found our happiness after we sold our car and our first retirement home in Costa Rica (with all its contents minus a few boxes of personal mementos and clothes) and decided to collect experiences instead of things. We chose to rent a small furnished townhouse in the middle of a beautiful U.S. city and walk everywhere or take the train or bus. When our time here is complete, we will choose another city in the world and experience life there. We are far less tempted to buy things because they no longer fit into our idea of a great life.
Donovan says
I just got back from Costa Rica, Kathleen. It seems like a great place to practice living with less to me. But either way, its sounds like you’re traveling light and enjoying life!
Mary Cannette says
I love your site and agree with most of it. I retired at 65 and it has been the joy of my life. I garden, read, do things with my family and friends, volunteer at church and my Granddaughter’s school, bake, cook, and so many things. I am 70 now and I did go back to work as “emergency relief” which amounts to 2-4 days a month. But, I believe in retirement 100%….it is good to relax and do things you never had time for.
joshua becker says
Keep contributing. You have so much to offer Mary.
ren says
Love your kind and encouraging words Josh and Mary.