Wow, You're a Life-Saver! Part II

Repetition is the Essence of Pedagogy

In the last column, we focused our attention on five financial tools of engagement that life-savers use to not only thwart monetary self-sabotage, but also hone proactive, capital accumulating practices:

1. Life-Savers carry calculators

2. Life-Savers carry big bills.

3. Life-Savers carry business cards.

4. Life-Savers carry pen and notepad.

5. Life-Savers carry chips on their shoulders. 

Practice with Principle Makes Perfect

Life-saving is not just about tools and practical tips. Life-saving is a philosophy and way of life based on principles of personal accountability, delayed gratification, balance, single-mindedness, and creativity. In order to practice the habits of life-savers, it is crucial to first internalize their underlying philosophies. 

Life-Savers do not hate, they appreciate (literally).

Saving money would be easy if the products and services that corporate masterminds introduce and push had no style, added little convenience to life, and did not cater to human vanity. But they do! Sitting on a $4,000 leather couch imported from Italy may evoke the feeling of being ensconced in velvet, silk, satin, and other materials soft and buttery to the touch. Navigating the curves and turns of a windy road with ease in a $40,000 luxury car also elicits intense sensations that range from excitement and peace to invincibility and control.  Similarly, purchasing trendy clothing, designer shoes, and lavish accessories stroke the human psyche's craving for immediate gratification, want of recognition, and desire for (perceived) superiority.

Life-savers are realists and do not disparage the allure, aesthetic, and appeal of these type of items. What life-savers as realists clearly understand, however,  is that these items depreciate (often exponentially) after years of wear-and-tear, once driven off the showroom floor, and if not taken care of. Instead, life-savers buy items that conserve their value and appreciate in 

worth : index funds, mutual funds, 401ks, continuing education courses, commercial and residential properties, copyrights, and art and leave fantasies of the acquisition of excessive material trappings for fairy tales. 

Life-Savers  prefer inconspicuous consumption over conspicuous consumption. 

The motivation behind conspicuous consumption is the want to impress others and convey an elevated socioeconomic--whether true or not. The purchase of visually stimulating items such cars, clothes, mansions, yachts, country-club memberships, and electronics project and promote this image.

Conversely, inconspicuous consumption gives the impression that one is of low or moderate means and status. Life-savers thrive on this perception. It not only eliminates the jealousy and envy that may accompany the flaunting one's good fortune, but it also minimizes risk for robbery and injury. In other words, subscribing to a philosophy of inconspicuous consumption allows life-savers to build wealth through high-income earning, low attention-grabbing assets (i.e. land, stock, bonds, leases) while maintaining their financial privacy and anonymity.

Life-Savers rebel with a cause.  

Most of America is financially illiterate and financially reactionary. This makes those that are fiscally savvy and proactive in wealth accumulation stand out and stand alone. They live below their means, differentiate between wants and needs, safeguard against unnecessary debt, protect their credit scores, create emergency funds, take advantage of tax-shelter options such as tax-deferred annuities (TDA), individual retirement accounts (IRAs) and other  long-term economic planning. 

Knowledge and insight garnered through study and practice comfort life-savers as they  encounter the glaring manifestations of financial ignorance-- disdain, suspicion, exclusion, and mockery from chronic spendthrifts--while on their long and often lonely journeys toward financial security and prosperity. 

Life-savers prepare for the worse, hoping for the best. 

Not everything goes according to plan. Despite attention-to-detail, hardwork, and immaculate planning, there are things that are essentially out of our control. (i.e. natural disasters, accidents, death). With life being unexpected in nature, life-savers buffer themselves from unforeseen financial blows by always accounting for them in their planning. They keep emergency funds, insurance contacts, and liquid financial reserves updated and readily available. 

Life-Savers worry about their names, not brand names. 

 Your reputation and history for repaying loans and handling debt is crucial when you are seeking to establish a solid financial identity, especially in the eyes of loaning agencies. Your credit score, the numerical indicator of your creditworthiness, dictates your level of success in applying for loans, securing investors, or even purchasing a cellphone. 

As a result, life-savers pay close attention to what they sign their names to. They understand that in agreeing to the terms of a loan, a new account, or credit card that they are ultimately responsible for managing payments. This is particularly why life-savers are averse to co-signing loans, agreeing to open accounts in "my mama name", and establishing joint checking and savings accounts even with the closest of loved ones.