Austerity ventures away from the economy and inflation and discusses practicality
“Don’t find fault, find a remedy. Anyone can complain.” Henry FordI’m Austerity Jones and I wanted to use the same quote to start as G Spot did during the Masters week, but this one was a little different and also from a great man. I think it is very applicable for where we are about to go in this economy. If you listen to the news, there is no shortage of people talking about the national debt levels, the bond market driven by suppressed interest rates, the stock market bubble, the real estate bubble, and student loan debt. We are being told to buy the dip, buy bonds, buy gold, but I don’t buy into any of it. I don’t blame the government or the Fed or Biden for inflation or Trump for the debt or Congress for everything. It’s easy to complain just watch tv or social media and you will see how it is done everyday. No, we need to be practical.
Practicality: interest in or inclination toward actual work or activity as opposed to theories or ideas.
Warren Buffett says the best investment you can make is in yourself. That’s what being practical is all about. The government isn’t here to save you, a bailout isn’t designed to save you. You do you. If you work in an office can you take a class and develop newer and better skills… Perhaps you can go earn a new promotion or if bad times arrive, you will be more valuable and the last to get let go. Can you use your spare time to learn a new skill? You don’t need to watch the Real Housewives or the Project Runway. Take your phone and check out how much time you are on your phone each week. Take that daily average and write it down. Set a goal to reduce it by 50% and replace that time with a worthwhile activity. What you need to do is to insulate yourself from living paycheck to paycheck. You need to learn to live within your means; I have discussed being frugal, but you can only limit your spending so far, so focus on increasing your earnings as well. Start a side hustle with that time and in 6 months you will have something to show for it. You will have some money or some experience and both can serve you well. That’s being practical.
What’s the difference between a house divided and a house with 4 televisions. The house with four televisions will still stand. Check yourself and your current inflation laden portfolio at your front door. Every asset class has risen in the last few years from baseball cards to housing prices to Tesla stock. Housing prices have risen, but that doesn’t mean it will go on forever. Do you need another 1,000 sq ft or do you need a $60,000 Tesla to commute 5 miles to work? Don’t confuse genius with a bull market. Ask yourself- do I need to take on more leverage? What would I do if I woke up tomorrow and lost half my wealth. How would I react if I lost my job? How would I be prepared? Keeping up with the Jones’ isn’t being practical. The goal is not getting to live in the penthouse, but it is to avoid going to live in the outhouse. It doesn’t get any more practical than that.
C Thomas doesn’t let me give financial advice and I won’t start now for fear of upsetting the alphabet police, but if the investment conversation begins “what you don’t understand is…” That isn’t very practical. If you can eat it, drop it on your toe and have it hurt, or get paid from its current profits then that might be practical. I challenge all of you to be more practical in this week’s Have More Grace Challenge. Be practical about one thing, just one but be completely aware of what you are doing and do it purposefully. IT can be as simple as being full after a meal and turning down dessert. You don’t need it. It can be seeing a pair of shoes and instead of reaching for the credit card and your Amazon Prime account it can be no. I don’t need them. It can be simply drinking a couple more glasses a day because it is good for you. But it is practical and it is an action. Once you do the first action, then you can build on it, but it all starts with one.
“Work is one of the best educators of practical character.” Samuel SmilesSincerely yours,
Austerity Jones
Born on this date:
Aidan Gillen,
Sachin Tendulkar,
Barbara Streisand,
Shirley Mclaine,
Morgan Earp,
Lydia Ko,
and the long bearded quack who started for two years in college at quarterback ahead of NFL number 1 overall pick and 4 time Super Bowl Champion Terry Bradshaw.
When I was younger I broke into the police station and I stole all of the urinals.
Did you ever get caught?
No when asked by the local newspaperman if they had any leads, the police spokesman said “we have nothing to go on.”