Think in solutions, not problems.

Everybody always talks about money being the root of all evil.

Money & wealth begins with a state of mind, you have to lose the ‘broke’ mindset to get a ‘rich’ mindset. Having money and earning money is one of the greatest feelings there is on this world. Having no money in your bank and nothing coming in is one of the shittiest feeling you ever have.

Anyone in poverty can really agree with it that having to stress how you are going to eat, paying for a roof over your head or even figuring out how you are going to put gas in your car on your way to work is going to suck. If you are in this situation you have to make sure to get out of it. Figure out what the reason is that you are in this situation. You first have to analyse in what kind of situation you are, this way you can figure out a solution to the problem.

First accept that you are in the gutter, then find out what you can do about it. Today the day you can find everything on the internet. You need to get out of debt because the bills get to high? You can find how to.

You ain’t making enough? You can find how to.

Especially if you live in the west, the odds are ‘very good’ for you. We have the opportunity to change and the capitalism climate accepts it, if you want to make more money in a country like Iraq or Syria its going to be very hard and in such environment you are busy thinking about surviving. If you live in America or another western country, you have all the opportunity there is.

But you have to think! Thinking the correct way will create opportunity’s for you. Don’t say there is no way I can fix this shit, the human brain is very  creative and bright enough to find a solution to every problem as long as you stay positive in it. If you say there is no way, than you are not going to think further and you won’t get a solution for your problem. So stop whining about it and find out what you can control. Don’t stress about things you can’t control.

The issue with this is that eventually the problem will get so big that your stress levels will get an all time high that you’re not able to sleep anymore, any further than this and you will land in the hospital.

So get moving, get your money thoughts straight.

Problems create Solutions.

abstract blackboard bulb chalk

 

Focus on what you can change, you’re not stuck in the situation you are in right now. Get out of it, make more money, get out of debt, save some money, move to another location where you can earn more, start a business and provide value for people.


DO IT NOW, 

not tomorrow,

START NOW.

Until next time,

Uuldriks Financial.

 

How can you save more money

Save, save and save!

Once you have a nice income you have to make sure that your savings rate is going up.

Most people begin to spend more money once their income rise. But you are on a different path then ‘most’  people. Because the average person is broke. To get something most people don’t have, you need to do something what most people don’t want to do.

Savings rate is one of the key factors in your beginning of becoming above average. If you tell people that you would like to become an above average person and focus on becoming rich & free, most people will look at you like you are the freaking devil or something. Which I find strange because everybody wants and deserves a positive, great and rich life. But people don’t believe they can have it all.


People believe if you are rich, you are evil and nasty.

People believe that if you focus on having a career that you can’t have a great family life. But wealthy people believe that you can have both.

What I try to tell you is that you need to focus on your own life for advice. If the herd gives you advice and you think about it, letting your mind wander back into negativity, you will get the same results as you had before. You need to learn to follow your own mind and not get distracted by your surroundings. Don’t listen to them, but don’t even try to get into an argument with them, your just wasting your precious time that could be spent building a business.

Why should you focus on saving more?

Because when you save more money, you can invest that money into your ‘asset’ column. The only way to become rich is that you have control over your time. The way you can get control over your time is that you don’t have to work for a paycheck, rather for luxury or if you love the job you are currently doing.

Only assets can bring you this comfort. But before you get comfortable, you will need to become uncomfortable.

Example :

– Living on way less than you make, try to save 10% or more from your income and keep increasing your savings rate as you continue building your savings account.

– Driving an old and cheap car for a long time so you can save more.

– Skipping that nice dream house you and your wife want to build/buy. You can buy it later when you are free from all your stress.

– Not keeping up with your loser friends that want to keep you spending money on beer & other shit.

– Letting that new iPhone stay in stores and keep your old cell phone just a year longer. Once that ‘new’ iPhone ain’t new anymore, buy it on discount. 

These are the key ways for you to save more. Not searching for the cheapest gas station in town, saving money on buying only rice and beans, skipping that morning latte, that’s all bullshit. Do you really think a millionaire cares about $2,50 for a coffee and do you believe that will make him poor? Of course it will save ‘some’ money but it won’t make such a difference that its better not to stress about it.

You don’t need to keep thinking about that little stuff if you want to become abundance.

Saving money is fucking great, but saving on every single thing is going to depress you and it will make you quit saving. Once you keep putting away a few dollars to save on a latte or whatever, you will miss it so much that you will want to go out and spend a lot more money on a car or laptop that you like.

So you are saving pennies and because you get so depressed, you will want to go out and spend dollars.

This is not the correct way to save money.

Focus on what makes you poor.

The reason why most people are poor is that they spend too much on housing, cars and stuff. These are things we think we need to impress people we don’t like. So we have to stop trying to impress everybody with our shit. Its time to make a change for the better and save some cash, stack that paper, create more dollars for yourself.

That $300.000 house can wait and let someone else buy into that $30.000 car, you are off for a different future then the sheep. Even if people learn to save from their parents or society it is always for a car or a vacation. I definitely believe that a vacation is a great way to spend your money. But it’s not going to create an income for you and you should look for ways to put those savings to good use.

Its time to take life by the balls and go your own fucking way.

Its time to save and stack that money so you can invest it. Use it for a down payment on an investment property to create yourself some rental income. Then use that money to save more and invest that money again, so on, so on. Before you know it, you will become rich.

How are you going to save that money? How the hell can I find financing? The answers are everywhere. We have our articles that are concentrated on saving and getting out of debt.

Articles like :

Do you live for your house?

You don’t need a car payment

Are you in debt?

Check these out if you want to go more in detail on how to get out of debt. The number one reason why people can’t seem to find more money to save is because they all give it to their bank.

Investment financing.

How can you find financing? Well go on google and ask, why not turn around the debt position you now hold with your bank and use their money to make yourself an income. Instead of giving all your money to them? Pay off your loans so you’ll achieve a good credit score of paying them back, put down a good down payment of 10 – 50 % and you will have the opportunity to get financing for investing. The problem is in the mindset, if you keep asking such questions like how to this or how to that, you are not going to do anything to improve your situation. It’s just a form of procrastination.

If only keep thinking about problems and not solutions you won’t come up with a creative idea for a solution. Like asking someone you know that can provide for you the correct service or contacts to get you closer to your goal or how much down payment you really need to get $200.000 for an investment property, these are real and useful questions.

But first focus on your thinking, if your thinking is out of balance and still stuck in the poor mentality you won’t get the real success you want. Real succes is only achieved by being grateful what you already have. From that position on you can focus on the value that you provide and not only the money. Because purpose and happiness through growth is the only way to keep going.

Once you achieve your money goal, you can always make it bigger.

So focus on saving your money, achieving gratitude and getting a wealthy mindset.

These 3 things will keep you going and make you way happier then any material possesion you think will make you happy.

Once these 3 things are in position and you have achieved your money goal, you can celibrate with something as fun as a nice car, nice house and dream vacations. Enjoying life.

So first save your money, invest it and then spend your invested money for the nice things you would like out of life.

achievement-bar-business-chart-40140.jpeg


 

Until next time,

Uuldriks Financial.

Why living frugal can bring you ever lasting wealth

Can being frugal give you the way to riches and wealth?

The way you can achieve being a wealthy person or family is that you create value for this world in forms of services or products to the people. But to keep your wealth or income is to become frugal.

Once you have created this value and you receive your harvest, then you should save a portion of this harvest. Once you save a portion of your harvest you can plant the seeds to grow more harvest in time. This is called compound interest.

The harvest is the income you receive for providing value to the Marketplace. Your boss, your company or clients that you serve through your own business.

With that harvest you have to pay for your expenses that you occur like things you have to pay to provide a ‘good’ life for yourself and your family. If you have a business then a portion of the harvest goes to the business expenses to further provide and expand you empire to a greater degree.

After paying all the necessary bills you have with the harvest. You have the option to spend money on things you would like to buy. The problem with most people is that they go way overboard on the spending part of the harvest. They don’t focus or even thinking about planting seeds for the future.

Planting seeds is highly important for building a wealthy future. If you don’t plant seeds you will have nothing in the future. If all you do spend, spend and spend you will destroy the opportunity to reward yourself with freedom that you deserve.

Grow that money tree!

Money tree

So what is the plan?

The way to get a better grip on your future is to become more frugal.

So

DON’T WASTE YOUR MONEY.

A lot of people think being frugal is something of the past, something from an era where there was not a lot of food and work was impossible to find. A situation like the great depression in 1929.

But being frugal has nothing to do with that, sure a lot of old people still have the same mindset because their parents or themselves have experienced major poverty in their life time and that is completely understandable. But the issue with having a ‘broke’ mindset is that it will control your entire life.

I personally believe that thinking the frugal way is that you want the most out of something. That things you buy with your money will last forever so you don’t have to keep investing money in such things.

If you search a coffee maker, find one that is reliable and brings a lot of value for the money you put into that thing. In that way it is worth the money you buy it for. You don’t want to be buying a coffee maker every single month because of a shitty design. Wasting your time and your money away.

You should always search good items if you want to buy something and keep in mind that you need to keep it untill it dies. Once you decide what you want to buy and you want to keep it forever. Then your mindset will be different. You wont just buy something because you will see it. You will wait before buying and researching different kind of items for which one is the best fit for you.

The best bang for the buck.

The problem is that you can go overboard with the idea that more expensive is always better. You can buy yourself a $150.000 BMW but it will get a flat tire the same way a BMW for $5.000 would have. So don’t use that excuse to buy something very expensive. I have personal experience with this guy at work, he has this crazy expensive car to show off and has a lot of problems, it’s always in the shop. The car I own is way cheaper and my time is more on the road then in the freaking garage paying shit for a shit car, wasting money away.

Don’t go into a new car dealer and buy yourself a new car just because you had some maintenance with your older car. You will never be cheaper with a new car. For the money a new car depreciate, you can rebuild your entire car and have some money left over to give to people and have some new friends.

You want to find the perfect time where something has depreciated to a point that you can buy it on a cheap price and the product has a lot of years left in it.

An example.

Say you are looking for a new car. You want a nice and reliable one. The reason you want to upgrade is because first off you have the money set aside from your emergency fund and paid off your debt.

Second reason is you car is old, rusty, not very comfortable and breaking down on about every corner right now.

My suggestion would be to look for a car that has had the biggest depreciation hit, that means looking for a car 3 – 5 years old with low miles. Take in consideration that the higher the cost of the vehicle, the more it will depreciate.

A Kia rio from 2018 new is around : €19.995.

A year later with around 10.000 miles its worth : €15.000.

If you take a look for a Kia Rio that is 3 – 4 years old it will take a big step from that Original price of €19.995.

When we take one from 2013 with around 40.000 miles you have to pay : €8.900 for the same car that is 5 years older.

Thats a depreciation hit of -€11.095, that spread over 5 years is -€2.219 each year. A lot of people don’t even have that money in the bank. How retarded are you if you accept to let that money flush down the toilet. And this car doesn’t even depreciate that fast.

Let alone if you buy that Mercedes or beamer.

ONLY BUY IT IF YOU CAN REALLY AFFORD IT!

—————————————————————————-

How to determine what you can afford?

So how can you determine how you can afford something? Like a car, a house or just a new couch?

How much to spend on a house?

For a house it is very easy but hard to adjust. I would suggest 20 – 30% of your ‘net’ pay. Because people are way to easy to buy a house that is very high in monthly payments. People are manipulated in thinking paying a lot for your house is a safe investment and that you need to buy as much housing as you can. Because that way you can live very nice and have something for the future.

But most people are ‘broke’ and don’t have money left over for things they really want to do in their lives. If you really love to have a nice house, want to spend a majority of you income on it then maximize your spending to 40% your net pay. This way you can buy your dream house, but don’t expect to do a lot of traveling and buying nice cars because it’s a choice you have made.

So if you make $3.000 / month, spend $1.200 / month on housing. What I personally think is fucking crazy. I make around that money a month and spend like $400 on housing. I would rather suggest you pay no more than 25% off your net income on housing. Putting the limit on $750 / month.

It’s all about priorities. My priority is freedom and positive cash flow brings that freedom.

What is your priority?

Being frugal or a house?

What about a car?

We’ll most people get a car payment, its understandable if you don’t have any money in the bank. The average person doesn’t even have $1.000 for an emergency, so how the hell can you come up with an extra $20.000 for a new car?

You cant and that’s why you get a car payment.

How much is the max you pay on a car?

We’ll we described above that a car depreciate like crazy and if you want to build up some money you have to really think drastically about a car purchase.

Do you love cars and you don’t bother to pay a lot for it? Sure you can splurge a little bit once you have your other priorities at place like some savings for when shit hits the fan.

I really love cars but I would suggest that you wont pay for a car that is more then 25% of your net pay.

Lets say you make $25.000 / year that means the maximum car you can afford is $6.250.

Making $50.000 / year? Means you’re not going to the beamer dealer for a brand new 5 series, you are going to be content with a used 3 series for $12.500.

$100.000 / year ? Well now you are going into the nicer cars area, used Mercedes or a new car. Putting the purchase price at around $25.000.

This way you can enjoy nice cars, be frugal in your ways and still have some money left over for other parts in your life.

Why do I suggest no more than 25% of your net income? Because the car is going hill fast value wise and if you splurge $40.000 on a car, your money that you worked for is going to be worth nothing in a couple of years.

Using a % of your income is a great way to focus on creating more income, you want a nicer car? Well find a way to grow your income so you ‘may’ afford that dream car.

What is my cars value regarding to my income?

More like 7% because the car I own at the moment depreciated very fast. The reason for this was extra ‘diesel’ hate created by our governments. Thanks for that!

So best thing to do is to keep driving this hunk of junk until it destroys itself.

The only thing you have to remember after getting that nice car is to drive it untill the wheels fall off. if your out buying such a car every single year, you’re gonna be fucking broke.

And remember pay cash.

What is your priority?

Being frugal or a car?

What about stuff like furniture?

Some people really like having a nice interior in their house and I can understand that you love a nice couch. Nothing wrong with that.

But having too much and spending too much on ‘stuff’ is a great way to be forever broke. You can always buy a new and nicer thing, that’s the entire problem with consumerism.

Sure you can like it but the enjoyment of that item can wear off quite quickly. If you want something, you need to wait at least a month before buying. This way you can save more and really think about if you ‘really’ want it. If this is the case you may buy it, because you will keep the item that much longer.

If you buy on impulse your excitement wears of in like a week.

Delayed gratification gives you more contentment from the item you want to buy, because you will always know how long you waited for that particular item.

So how much should you spend on that?

I would suggest that you put 10% off your net income a side and save it to buy something you like. Spend that 10% however you like, its something you reward yourself with after saving month after month for a long time. Lets say you make $3.000 / month and that item is $600?

Put that 10% Aka $300 / month for 2 months . Once those 2 months are over you got your money and 2 months thinking if you still want the item. That’s real delayed gratification.

And remember pay cash.

What is your priority?

Being frugal or stuff?

What about just plain fun money?

I put a personal spending limit for 10% of my net income. You make $3.000 / month? We’ll spend no more then $300 a month on fun stuff. Going out to drink with friends, taking a day off for the beach or going out for diner with your girl.

You can spend money very quickly eating out or drinking. That’s why I recommend getting that $300 out of the bank and put in a box in your house.  Every week you take out some of that money, like $75 and you can use it however you see fit. Is the $75 gone that week? Gotta wait until next week until you can go out again.

This way you can enjoy your money, learn to grow your income more for more fun money and not spend crazy on just dumb shit like 66 beers every month.

And remember pay cash.

What is your priority?

Being frugal or beers?

How this effects your frugality.

So how is this going to effect your thoughts and frugality?

We’ll once you’re in the mindset that you set up yourself budget wise in what you really want and you save on the rest, you’re frugal. You are focussing yourself on what you love to spend on and things you don’t care about have no need for spending.

If you want to drink & go out a lot and you spend only 20% off your income on housing, then you can do that.

Once you really think about where you want to spend your money and you save the rest, invest those in seeds and make it grow, you can achieve being a wealthy person.

It’s very simple :

Live below your means!

See you later,

Uuldriks Financial.

 

How much investing power $100/month brings.

You want to learn something very interesting?

The power of investing.

Not only investing large sums is powerful, I will show you that little amounts do count. If you don’t have a lot of money yet and can only set aside so little you are still way ahead of the crowd that spends paycheck to paycheck.

Lets see how much we can make out of this shall we?

Say we make around $1.600 a month and our bills are around $1.500, including some fun and savings money.

We have our $100 left over every month, we are young and want to do some investing. A very wise way to start investing is try to fail. Failing with $100 is fine, saving up 3 years worth of money and losing everything is like a personal stock market crash. So you don’t want to be ending up like poo that gets flushed down because of all the hectic on the market.

The market is mostly controlled by big investors, manipulators, stock market news, banks and most importantly emotions like greed & fear.

Always keep in mind that 80% of the stock market is controlled by people trading with greed & fear in their thoughts. You will also experience it. I had it and I sometimes still do, it’s just a fact about investing. You need to base a long term investment around principles. That’s why you need to research your investing a lot when trading in particular stock companies.

I would suggest if you are new and want to try it out a bit to go for index funds, ETFS and big blue chip stocks, these blue chips stocks are the gigantic companies like Google, Exxon, Amazon and Apple. These are mostly listed on the big stock exchanges like the DOW, S&P500 and foreign like the german DAX.

Most of these companies need money and time to get a significant return but you need to remember one thing. The guru from the stock market has explained it in 2 of he’s rules and these are DON’T LOSE MONEY. 

Yes these are the words of the almighty Warren Buffet.

This guy is freaking great regarding amazing long term returns and being humble as a poor guy living in the Ghetto. Money and humbleness, what a great way to be rich.

Anyway,

We have our $100 in our pocket. So what are we going to do with that money?

Invest it once?

Invest it every month?

Lets check out the possibilities here.

Investing $100 once.

We get our $100 dollar bill and put it in an index fund that follows the S&P500 or another exchange so we get a safe return on our money.

The average rate of return on the S&P500 over the last 90 years is around 9,8% a year. Meaning that the $100 you invested 90 years ago is now worth $653.011,54 !

That’s a lot of money right there.

A shame you can’t enjoy that because your body is already rotting away in that casket under the ground after 90 years. At least you made your kids happy spending all that dough you put away for them.

But let’s be realistic here, putting away some money for your children is fine but you want to be enjoying some of your hard earned money yourself right?

The S&P500 returns like 9,8% every single year are also not very realistic. 7% would be a safer bet.

$100 invested at 7% a year profit would still be $53.469,48. But that’s a lot different then the $653.011,54 you would have got netting 9,8% a year. Now you see what compound interest can do for you, just 2.8% more, but over the long run it brings such a difference.

If you count in inflation 2 % a year, your money is now worth only $8.917,95. That is a very big difference from that $53.469,48 or the big number $653.011,54.

You can see that keeping inflation in your mind is a very important key in making your money grow over the long term.

What about investing $100 every single month?

Now we know that investing $100 only once and waiting for a return of 3000% over 90 years is not really something we want to be doing, we are going to invest that $100 every single month and see if it makes a big difference.

We take our $100 every month and we are going to put it into our 7% S&P500 index fund. We are going to invest for 40 years which is way more realistic than 90 years.

Not including inflation your balance will be $265.643,62 after 40 years.

For setting aside only $100 a month and investing our money in an index fund, it’s a very nice amount of money to have at your old ages. It won’t last forever because it just aint enough. But its nicer to have an extra $270.000 to your disposal. Most people don’t even have a couple of bucks in the bank. So take the $270.000 or nothing? I would take the money every day.

The average 60 year old has $172.000 in hes retirement account. This is the average! meaning some are above that, but a lot of people are below that! That’s just insane. You really think you can retire on only $172.000?

Adding that extra $270.000 would give you a lot of extra money in such a situation. Getting you $442.000 in your account. Once you want to take 4% a year from that account is a heck a lot more than only $172.000.

4% on $172.000 = $7.000 a year. A nice addition in income if you work, but not something you can live off.

4% on $442.000 = $18.000 a year. a whole lot better if you include a pension, but you ain’t living a luxury lifestyle on $18.000 a year. You will need to be almighty frugal in your old ages to comfortable live.

In my opinion you need more than half a million dollars in your account to comfortable retire in your old ages. We are not focussing on retiring because the irony is that you will be looking into the ages where you are going to die. Nobody wants a lot money just to die right? But we all grow older and when we can’t do our work or we don’t enjoy it anymore because of our age we need the ability to ‘retire’ .

Personally I believe you will need to have at least 1 million or more to really retire comfortable. especially if you take in account that over 40 years, everything is more expensive because of inflation.

You don’t want to focus too much on retiring but you sure need to keep in mind that you need ‘some’ income once the capabilities to work are finished or you want to retire early.

Investing $100 once is not a good idea, investing it every month is a way better method to create a nest egg over the long run. You should be doing some of it, even if you are on dire straits.

Investing 10 – 15% of your income.

If you don’t have a very high income and you are an average person making around $26.000/ year. Which comes out around $2.166/month.

Take a look where you can cut some costs like Housing, your car or just plain buying too much Shit. If you can save some in monthly cost than great. You can use those savings for investing.

After you focussed yourself on saving some money and got your savings rate at 15% from your $2.166 income you are setting aside $325 every month. Once you save this for the long term, you are going to have a nice nest egg later on.

$325 invested every month for 40 years at a 7% rate, is going to be $863.341,77.

4% from $863.341,77 will be $34.533,67 a year.

Giving you an income of $2.877,81/month. That’s more than your income and all you have to do is invest that money every month in an index fund. No special things like bitcoin or real estate investing. No stress regarding get rich schemes and other bullshit.

Just keep putting that money from your account > your investing account, reinvest everything. When your old and want to retire take out 4% a year from that account > normal bank account and your set for life. Easy peasy.

You won’t get rich this way.

One word of caution, you won’t get really ‘rich’ this way. This just shows you the power of putting some of your income to work for your future. Everybody should do this to have at least some money for later.

The real way to get rich is to provide value for people and selling that value at a good market price, selling products or starting a company in simple terms. More on that later on.

Until next time,

Uuldriks Financial.

 

”You will not get rich saving a portion of your income.

But never saving is the way to being broke FOREVER.”

 

How to make your old car last forever.

This will be a post about your ‘old’ car to make it go lots and lots of miles before it breaks. Or to make sure your new car will break the record of miles for that model. This way we can proof to you that you don’t need a freaking car payment .

My current daily driver.

Currently I drive a BMW E46 build in 2004. powered by a 2.0 liter diesel engine. It has around 165.000 Miles or 264.000 Kilometers on the dash. I’m doing my best to make it last forever, until they ban Diesel or when it costs too much in repairs. The car is currently worth around $1.000 – $2.000 or so, so driving it into the ground is the next best idea. Maintenance is not bad at the moment, I will be recording what the costs are to keep the car running.

I bought the car last year on July 2017 and driven it now for more than 1,5 year. We’ve been to Hungary and back. Next month we’ll be going to Luxembourg and back. Probably next year to Croatia and back through Italy. We will see how the car holds up and what the maintenance costs will be.

The things I changed on the car because it needed it:

  • One new coil spring because 1 was broken the moment I bought it. (So I knew this).
  • Serpentine belt, Got it changed because it was making ‘slippery’ noises, Didnt need to but I didn’t want to risk breaking it.
  • I changed the oil now 2 times in 40.000km. I plan to change it every 20.000km full synthetic.
  • Tires just got changed in December 2017. Got them at a good price, €70 each. So €280 for 4 new ones. All season, no changing tires until they are finished.
  • I’ll keep it updated how the maintenance will continue. Next year in March there will be the yearly check we have in the Netherlands: the APK. We’ll see how the car will hold up.

So what is the beamer doing on diesel consumption? It aint eating fuel as much as I thought, but I also drive as an old guy.

My average is around 1 liter on 19 KM. Factory consumption is 1 liter on 17 km, so I get a win there.

Average 44.7 Mpgs.

I probably can get it even better to 1 on 20 kms. But no highway and city driving then, only 80 – 100 km roads.

So you are going to ask when am I gonna cut to the chase and tell you how to keep your car lasting forever.

We’ll this is one of the biggest ways to keep your car in good condition. Driving it ‘easily’. Don’t go hard on it.

Especially when you cold start it and aint driving it warm. Depending on the car’s engine size, your car will at least need around 10 miles to warm up your oil. For most people in the Netherlands that will most likely be 15 to 30 minutes drive. Be sure to wait 1 minute before driving away. Once you start your car, all the oil will be inside the oil container and before it is at all the right places to smear, you need to have some patience. Don’t start the engine and directly put your pedal on the metal like all other 99% of the people complaining about oil leaking out of their car.

The oil system is the most important thing in your idea for letting the car run forever. Always let your oil get warm! Don’t drive your car for like 2 miles and stop it. It will get sloughed up and your metal bearings wont get the accurate oil smearing.

If your job aint that far away go on a bicycle or get a car with a small engine. The smaller the engine, the less time it needs to warm.

I use to drive a Volkswagen polo 1.2 liter diesel for more than 1 year. It took around 5 – 10 minutes to get warm, my 2 liter  BMW really needs 20 to 30 minutes to warm up. Depending on weather conditions. These minutes are driving minutes at around 2.000 rpms, idling for more then 5 minutes is only wasting fuel. 

Keep in mind that in the winter, once the temperature goes under 0 celsius, you will need to drive more to warm up the engine. When I drive to work in winter my car doesn’t even warm up to normal operating temperatures.

Anyway, lets talk about some key systems we have in our cars.

How about the oil system?

You can say the oil system is one of the key factors in keeping your car in mint condition. It’s the heart of your engine, pumping the blood through the engine parts.

Lubrita_HowTheLubricationSystemWorksInAnEngine

picture by Lubrita.com.

Changing your oil is an important key to keep it running well. Experts used to change it every 5.000 – 10.000 km. But with the new synthetic oil, I would suggest 10.000 to 20.000 km. Also depends on weather and driving conditions. If you always drive your engine warm and don’t drive in Siberian like weather conditions then 20.000 km will do fine. If you live in cold weather conditions and you don’t drive long to work/groceries then I suggest changing it every 10.000 km.

Do you drive even lower than that? Then I wouldn’t really focus on the kilometers/miles that you drive, but change it just every year. Oil contains ‘shitty’ chemicals that decompose in time, so the time length is very important too.

Be sure to keep a check on the oil level, it may be that your car uses oil. If your car isn’t using oil then be happy, you got yourself a great engine! Does it burn or use oil? Then be sure to keep a checklist on how much oil it uses.

Keep a journal with the date, how much miles and how much you filled the engine up. And check if you are within the responsible limits of oil use for your car.

I check my engine oil level every 2.500 kms to make sure the engine doesn’t use oil.

Oil consumption depends highly on the age and wear of the car. The older the car, the more its ‘normal’ that a car can use some oil. If you just got yourself a brand new car and it uses about the same as your old one, then the car has an issue that can take a lot of work to repair.

If your ‘old’ car burns oil, say around 1 liter in 2.500 – 4.000 km that would be normal. If your ‘new’ car burns the same kind of oil, you will be pissed of because of such a shitty ass car.

When your old car begins to use more than 1 liter in 1.000 km the car will begin to show some serious issues. If you don’t get it repaired or checked then the chance will be that you’ll get a serieus repair bill underway. My suggestion will be to check how much the repair will costs. If it’s over the value of your car then I would suggest trading it in for a different car.

My own car has around 165.000 miles on it and doesn’t use any oil whatsoever. So I’m Lucky I have a very good engine and i’m planning on keeping it that way.

What happens if you forget or save on oil changes?

We’ll the engine will clog up on oil sludge, the oil will become thicker and stick to engine parts. Meaning the smearing it suppose to do, wont happen and circulation will get harder. Lack of oil pressure and flow will appear. meaning oil circulation will stop and the parts will continue moving metal on metal. The metal will get very hot and melt itself stuck, melting the engine like the terminator did in terminator 2.

So get your oil and filter changed on time.

The filter is there to filter out the ‘shit’ from your oil, so get the filter changed too. Don’t save on it, it’s not worth the money.

How about the cooling system?

The cooling systems that cars have are : Liquid cooled engine or air cooled engine. 

We will be talking about a liquid cooled engine, because that’s what most of the engines use today.

how-the-coolant-circulates

Picture by howacarworks.com.

The cooling system is also a very important key in your car’s engine. The cooling system is responsible for keeping the engine ‘cool’ enough to prevent severe engine damage. So it’s highly important to keep the cooling system in mint condition.

Meaning that you keep your eyes open on your cooling liquid. All cars have a reservoir that you can open, it contains an indicator on how much is in the reservoir and how much is min/max. If the indicator is low, then you will need to fill it up until the indicator in around mid/max. Be sure to check your cars manual what kind of coolant is required in your car, there are different ones. my car uses a blue one.

Be sure your engine is cool enough before you open the reservoir! the water is very hot after driving and steam will blow out if you open it when it’s too hot. The best time to check it is before you start your ‘driving’ day when the engine is cold.

Also be sure the liquid is clean, no ‘bubbles’, fatty or oily look. If the liquid is dirty or bubbly. There is definitely something wrong.

Bubbling means there is false air going in the cooling system. The reason there is false air going into the coolant is that a leakage is present in the system. If the liquid is dirty then the most common reason is that an other liquid is leaking into the coolant. What is on the other side of the coolant? Well that most likely is your great black gold called oil.

Believe me you don’t want that beautiful oil into your coolant. Once you have that issue, you better of just trading in that car for a different (better) one. Because the repair will be very expensive and there is a chance that it doesn’t even fix the problem.

Other systems that are important are :

  • Cleaning system for your windows.
  • Brake system and the fluid it uses.
  • The Gas that you pump into your tank.
  • Other miscellaneous

These systems are part of the normal maintenance that you do every year or every 15.000 miles or so. You check them or let them get checked by a mechanic and then your good to go. A different part is of course the gas you put in the car.

You should find out which gas pump gives you high quality gas or diesel. This is very important. The cheap one may save you 10 cents a liter but if its dirty as fuck, it will create extra carbon build up inside the engine.

Unless you drive like a gazillion miles a day, it won’t save you that much money. So find out if there is a gas pump that has good quality: Shell, Exxon or total can most likely bring you some good quality fuel to pump into your car.

You should see it as a long term investment.

If you keep eating pizza and hamburgers your health will fail over the duration of your life. But eating healthy can give you a lot of benefits along the way.

You ain’t gonna be dumping pizza’s in your car everyday and expect it to last forever.

One of the key factors in driving a car very long is also of course, choosing a good car. The reviews I have read about my Bmw where very good. It’s also a diesel, so I’m sure the engine can achieve a lot of miles. I believe one of the best cars are Toyota Camry’s, Honda accords or Mitsubishis. You should check out everything about the car you want to drive and buy. Check out what the common issues are with that car and how much these repairs can cost. If there are little repairs that are caused by wear then you should not worry about it too much unless you are searching for a new car.

If the car has real issues, like oil dripping, engine failure, electrical failure, over heating, things that just keep failing inside the car. Then I would suggest looking at a different one.

Even if you get the best car and go to check it out. If the car runs like shit and the engine under the hood looks like shit, the owner probably sucked the life out of that car and you don’t want to be the one fixing that bullshit. I would suggest bring somebody with you that has some knowledge about car engines. so he can give you some advise on how the car has been taking care of.

If there are some hefty issues it will most probably come up in a test run. Be sure to take that before you buy!

If what you want is reliability and good gas mileage I would still suggest taking a diesel over a gasoline car.

You can say whatever you want that diesel sucks and hybrid/electric is gonna take over the world. But they havent found a car that can achieve as many miles, that is as reliable, not having to charge your batteries and not having a lot of problems as a diesel engine. Why do you think the diesel engine is considerd the ‘work’ engine. Its the engine that drives the load. That puts the power for work. Not speed. But loads and loads of heavy stuff.

Until there is a reliable replacement for that kind of utility in the world, I will never replace diesel if you drive a lot and need a ‘good’ car. But it varies in what kind of country you live in. America doesn’t have a big eye for diesels and after the Volkswagen group fucked up the entire ‘good’ idea. I don’t think it will be making a come back in the states.

Lets say you don’t drive a lot or diesel costs way to much in your country, then I can understand you will get a gasoline engine. There are certain advantages in having a gasoline engine. Small engines today have likely the same gas consumption as modern diesel engine.

But where I live it’s still a good idea to own diesel, so ill be enjoying it for a while as long as it drives good and its cheap.

Anyway,

Keep on driving your car clean and mean.

Let it run forever by driving in a slow pace, saving some money on car repairs and speeding tickets.

Until later,

Uuldriks Financial.

 

 

Is saving the way to wealth?

Saving your money and putting it in a sock or letting it grow in your bank account, is that really a way to find wealth and freedom?

We’ll lets find out.

What is saving?

Saving money is conserving a percentage of money or ‘income’ for a date in the future. You don’t spend it now, so you can use it at a later time.

The most common reason why people save money is to spend on something like a car or a house. Maybe a vacation or 2. And that’s fine.

But what a lot of people forget is that the money we currently or used to have are all currency’s used to trade for something you want.

Before we had money we used the barter system to trade things with Each other, but its proven that this way was way harder than accepting 1 currency that we all can use to trade things with. So a smart person, Lydia’s king Alyattes minted the first coins and later the chinese people created paper money. Because they started using ‘currency’ and left the barter system behind, trading began to easily grow around their country’s.

The problem with currency is that the value it contains is created by the trust it has given by the people. Example: If everybody trades their dollars for Yen because China takes over the entire world, your dollars will lose all their value. Bye Bye to your pile of cash under your matres. You saved your entire life for that money and now its all useless, That’s a fucked up situation.

So the reason we save our money is to exchange it for something, specifically something that ‘grows’ in value or provides an income.

They call them Assets. Meaning Stocks, Real estate, flipping cars, buying old cars and keeping them to increase the value. Other assets are businesses or royalties from creating books & video’s.

A huge Asset is your time and the value you bring with your time for other people. You can get paid sincerely for it.

If you don’t invest your money it will get worthless like the example above. There is a silent destroyer of your hard earned money and that is ‘Inflation’. Inflation is the rising costs of goods and services that you buy because the value your money is going down. Take a look at your monthly bills every year, there will be a steady increase because the companies that offer their services want to keep their profits at a good rate. The inflation Rate means how much inflation increases in percentage per year.

Most times your boss ain’t as nice for your salary to increase at the correct inflation rate and you are than getting behind on everything. Keep building up inflation over 50 years and most people who didn’t focus on this problem will begin to lack funds to even buy cheap things in life. People will complain about gas for their car, driving to other ‘states’ or here in Europe to different country’s because it’s just a few cents cheaper there. This is a shit show on wheels man, be carefull about inflation.

You don’t want to be worrying about gas becoming $10 cents more expensive next year.

The average inflation rate for the United States from 1913 untill 2018 is 3.15 % per year. So this means that the average savings balance  $33,766,49 is losing $1.063,64 of value every year. Poef, just gone. You could spend it on something nice right? Sure you do.

Well lets say you get that money that’s stashed under your matres and put it safely in a bank savings account. One of the best interest rates we can find is the Ally bank savings account wich provides 1,85% annually. This interest rate would give you $624,68 year, meaning with that kind of inflation rate you are netting -$438,96.

Inflation rate from 1910 untill 2010: (Source wikimedia).

1200px-US_Historical_Inflation.svg

That’s not a great way to grow your money. You will never get rich saving your way to a million bucks. Banks are in the business of making money and not losing it, so the interest rate you will receive will never exceed the rate your bank will ‘loan’ you money.

You will have to find an other way to grow your money to the status of wealth.

Should you have some money in your bank and in your wallet? Sure, you always need some money incase shit hits the fan. Your car could break down or you can experience a layoff or 2 in the future and you will need to be prepared for these nasty situations.

I would say to at least save 6 months of your monthly expenses and if you’re a 1 income family or you can’t find a job easily increase that amount to 12 months of savings.

If you spend $2.000 a month on your ‘recurring’ expenses, things like food and housing that would be like $12.000 – $24.000 in your savings account. Maybe you can save some money on things like car gas and spending in the personal area if you are out of a job, meaning you can use your saved money for a longer time.

Once you have reached your savings goal to de-stressing your family’s financial situation you can focus on the bigger goal and that means creating financial independence for yourself. Meaning you can do whatever the fuck you want and never having to stress about finances again.

Be sure to pay any ‘bad’ debt off before you start your journey to saving 6 – 12 months of expenses, because you sure ain’t gonna get more of a return then your credit card rate of 18%. Pay that shit off before you start anything else.

You want to save and pay off debt? That’s useless man, when you pay off a credit card and an emergency comes your way without a savings account, you can still get money from your credit card to pay for the emergency. The chance that it will happen is also very slim. Paying off car payments or personal loans is in a different category as these loans usually don’t let you take money from it if you need the money. So be sure to at least get $1.000 in your bank account for nasty situations like a flat tire on your car.

Once you pay off your bad debt and achieved your savings goal. You can focus the rest of the money on investing to grow that money.

Most people invest in :

  • The stock market, be it 1 stock or multiple stocks like an index fund. The index fund is one of the best and safest ways to grow your money over a long time. Long term vision is required for this. You won’t get rich fast this way. The index fund will follow the DOW or S&P500 and give you an average 9,7% rate per year. Beating inflation easily. These returns will vary every year. From -5% to 13% a year.
  • The real estate market, investing in a single family home or multiple appartement building. The most common way is putting a down payment of 20% and borrowing the rest from a bank. Using that money to buy a home and renting it out for more than the costs of the mortgage and maintenance per month. Netting you a profit and a cashflow. Cash flow is one of the best things you can get from investing. The average profits a year are around the 10%.
  • Building a business, investing in a business or building your own from scratch. Takes a lot of balls, patience and time for you to build a succesful business. So it’s not for everybody but you can make a lot of money once you achieve success. But you can also fail, if you quit…. If you are a hard worker and have good ideas why not go your own way? Working at a job is not rewarding for a person that works hard, you will never get richly rewarded for your actions. Because the boss man will always need to earn more than you to profit, remember that.

 

These are some great ways to grow your money, but you will first need to learn to save your money. That’s the first step to financial greatness. If you are still living paycheck to paycheck or deeply in debt you will first need to get out of that mindset and situation. The current savings rate for the US is a meager 4% a month. That’s just to little, no wonder the average person can’t get ahead. it will take you more than 45 years to just save 1 year of living expenses. By the time you will retire, you can be really proud of yourself that you finally achieved your savings goal of 12 months expenses. And now you can live 1 year from savings in retirement and then you will have to get a new job.

That’s a no go, don’t you agree?

My personal savings rate is currently 20 – 40% depending on how much I earn each month. But I used to save 0% like everybody else and it is very stressing that you ain’t got no money to pay bills once you are in a dire situation. What I did is cut all the unnecessary bullshit like a big house, car payments and useless junk. Sold it all and got my expenses as low as I could. Housing payment under 20%, no car payments and no new iPhones.

It’s all about priority. Some people want the latest stuff and if you still do then get rid of that shit, because it’s costing you a lot of money and your future. Do you really want to be stressing about every financial decision and eating dog food in your 70s? Not me, I rather live a time without and enjoy 10x more later, than living like trash later on.

When you can save a lot of money monthly you can also use it for different things. Like buying a nice car to enjoy and driving it for a long time. Taking your family on a vacation without worrying about the cost. Saving for a nice house and paying for it in cash.

Be sure to remember this:

”Cash flow that brings you money right into your bank, without being constrained by monthly expenses, is what brings inner peace and financial enjoyment”

Once you have money that is free from recurring expenses like car payments or other debt payments you can feel freedom.

Freedom from working untill you die because you can’t retire.

Freedom from stressing about how to pay your bills every month.

Freedom to do whatever the fuck you want.

How would you feel if you don’t have to pay your housing payment anymore? Taking the average payment of around $1.033 a month, you will have an extra $1.033 every month for yourself to spend or to invest.

This is the difference between the poor mindset and the wealthy mindset. Focus on creating ‘net’ cashflow right into you bank account. So you can create more cash flow, untill you have enough to live off, then you can live life wealthy and free. No more Job, No more stress and no more working for the ‘man’.

So is saving the way to wealth?

Sure, in a way it is.

Savings rate is very linked to having wealth in the long term.  If you don’t save your money, you will always be poor. Once you saved your money, invest it like the rich or get killed by inflation. Be sure to out perform inflation rate, keep your eyes on it every year so you can decide what goals you need to create in your investing strategy. The most common way is the stock market, netting you ‘after’ inflation, around 4 – 6 %.

This is the way to wealth, by saving and investing.

Be sure to check out the book: The Richest Man In Babylon, writing by George S.  Clason. Where the most idea’s for building wealth come from and this book will teach you how to make money, keep your money and investing it to grow a wealthy future everybody desires.

Keep stacking that paper, watering it and letting it grow until your nice money tree arrives.

Until later,

Uuldriks Financial.

 

 

 

Why we work

You don’t want to work ?

Why not?

The reason most people go to work is that they need to provide and pay for stuff every month. Which is a shit reason to work, I tell you that.

I can completely understand that you need to work to provide for yourself and your family. Those are things you need to keep up and if you like your job then you will enjoy that.

But wouldn’t it be better if you can build something for yourself and not stuck to a 9 – 5. At least build something next to your job so you can have ‘more’ control over your life.

When you control more in life, you have more choices and you can provide a way better life for your family. Once you got have that, you can do what you want.

A lot of people get payed good money but they waste it on dumb shit. So the first choice you have to make is to get out of that sticky situation. You maybe got $2.500 a month coming in your bank account and wasting $3.000 a month… Wtf are you doing?

First get insight how much is coming in and where the hell you are spending that $3.000. Spending most of it on your Housing or your Car? Check this out:

When you got that figured out, find a way to sell those things and find a cheaper alternative. You have to live like nobody else does, once you get out of that negative situation, you can live life like nobody can.

And don’t even get me talking about credit card debt.

Get out of that situation now… you are making somebody else very rich, giving them 17% every time you pay your bill. Its insane.

Mostly its bullshit crap you could have payed cash for if you just delayed getting that new iphone, iPad or tv for a few months. That ‘new‘ thingy is by the way not ‘new‘ in like 2 months. After those 2 months Apple is already busy thinking about the new marketing strategy, so you can swipe your bondage card once again. Swiping yourself to work another 50 hours this week for that fucking phone….

Get rid of it.

Then save all of that money you don’t spend anymore. Once you have some money you can buy yourself the freedom of choice. To choose a better job or no job and focus that 50 hour a week on your own business. If you have $30.000 in the bank and little to no expenses you can go your own way.

You can also choose not to work for sometime and experience free time for traveling or experiences.

But.

A big but,

there is a double-edged sword with ‘not’ working.

If you think drinking pin a colada all day on the beach is something to live for, your living a very shallow life. You don’t want to die away that way, you need a purpose in your life and the best way is creating something. Once you build something ‘Great’, you can use that to inspire others and give back, like Arnold Schwarzenegger always said.

And this is true, I’m not some old grey guy that is giving you this advice. But once I helped somebody with something, I always feel great. Especially if you can find somebody that takes it at the correct way.

When you see this person thanking you for whatever you meant for them, you get the greatest feeling ever.

And this is the ‘purpose’ of good work.

No matter in what way you achieve this, through a ‘job’ or at your own ‘business’ .

Personally I believe your own business is way better, because there is no BOSS holding you off on your decisions.

in ‘Your’ business, you are the one making the shots. Not some jerk that can hold you back just because you wasn’t on that team building day, kissing his ass.

You know that feeling right? Your girlfriend, boyfriend, son or daughter comes to you, because they want some quality time with you. Your really love to go and cuddle or whatever you are into. Spending just time right? We’ll aint gonna happen because you need to be going or else your gonna late for work. Come on, that’s no life!

Enjoy your work, if you don’t, find an other way. Don’t give up, because you have your entire life the time to find out. Ain’t nobody too young or too old to start something.

The thing that you need to start is in your ‘gut’. You don’t know what you need to do? Well you already know every time you ask that question. What is the biggest thing you like and love doing? The thing that everybody comes to you for. You are the expert at that ‘thing’.

Selling furniture, fixing cars or cutting grass. Whatever you can think off, you can monetize on that.

So, get out of debt, be a minimalist, find a way to become good at something and give back!

That’s the correct reason to go to ‘WORK’.

Stay busy and creating,

Until later,

Uuldriks Financial.