Anyone ever read anything by Larry Winget? I've read at least one of his books and found him to be pretty funny (and in line with my thinking most of the time.) He certainly tells it like it is which is what I especially appreciate.
Here's a recent interview with Larry where he addresses how simple it is to succeed financially:
I really don't emphasize easy as much as simple, and I do think there is a difference. Everything in life comes down to simple things. If you want to lose weight, all you have to do is eat less and exercise more. If you want to have money, earn more and spend less. That's all it takes. I do sum up the book by saying what's easy to do is just as easy not to do. It's easy not to take action. I think people are attracted to hard solutions for one reason: If they don't make it, they have an excuse for failure. When you hit them over the head with the simple approach, you don't leave them a way out.
Good point -- there is a difference between "easy" and "simple." The basics of what it takes to succeed in personal finance are simple to understand for most people, but they aren't easy. Why? Here's an example: spending less than you earn is a very simple concept to understand -- you simply spend less than you earn. It's very, very basic. That said, it's not easy to spend less than you earn because to do so you need to have discipline, something that requires sacrifice, diligence, contentment and a whole host of other attributes that many Americans find difficult to develop. Issue after issue in personal finances is like this -- investing, planning for retirement, making more money, etc. -- simple, but not easy.
So maybe I should change the title of one of my top posts from How to Get Rich in Three Easy Steps to "How to Get Rich in Three Simple Steps", huh?
Nice post! And Larry's question (i.e. why is simple often NOT easy to do?') set me thinking. The cause IMO is our irrational mind:
A lot of advice is abstract ("spend less"), which is already a handicap. The translation into something practical ("stop buying lattes") is left to our mind. Our flawed mind. For instance, when told to spend less, one of the first translations we may think of is forgoing lattes. A highly unpleasant idea; one that can't be true! Our mind aborts its search for other viable ways to save (1st flaw), and now tries to disqualify the no-latte idea ("I know rich people who drink LOTS of lattes!")(2nd flaw). This is hard-wired and happens so fast we don't even realize. We ditch the ridiculous no-latte idea and the ridiculous advice to spend less, and go buy a lottery ticket and a latte. As usual. :-)
What you'll want to do when giving financial advice, is to give varied, concrete examples, to set the other person thinking and free his mind from running in loops. The really good blogs, like this one, have inspiring posts.
Posted by: F | January 22, 2009 at 09:03 PM
...have inspiring posts, that do exactly that.
Posted by: F | January 22, 2009 at 09:05 PM
Sometimes spending less isn't an option.
I'm trapped in an overpriced housing situation I can't resolve on my current income, and I can't find any way to increase my income in this economy.
Posted by: poor boomer | January 22, 2009 at 10:54 PM
I was just reading elsewhere that the path to true wealth isn't with spending money but saving money. Being thrifty is the best and surest way to a happier and wealthier future.
Posted by: Credit Loans | January 23, 2009 at 05:41 AM
It's true, the things that are worth doing aren't easy, but they're usually simple. I easily get bored with simple things. That's why I read motivational blogs like this one. ;)
Posted by: Tarah | January 23, 2009 at 12:21 PM
Re: I was just reading elsewhere that the path to true wealth isn't with spending money but saving money. Being thrifty is the best and surest way to a happier and wealthier future.
Frugality can't be the answer; I live on $950 per month and I'm perpetually broke.
Posted by: poor boomer | January 23, 2009 at 06:42 PM
I think Larry hits the concept dead on. It's so much "easier" to be lazy and take zero action in one's life because then they aren't responsible for failing. If you make it super simple than they've got no where to go. I am working with a team on this exact thing, take action if you want to change something in your life that's not working whether it's money, relationship, health, fitness, etc. I believe the victim era is over and people are ready to take responsibility and action for themselves and when they succeed they will be proud of the action they took.
Posted by: Katstan | January 25, 2009 at 03:49 PM
Maybe, it's easy to learn, but difficult to master?
Posted by: Tom | January 31, 2009 at 12:06 AM