How One Man Wiped Out His Debts and Achieved the Life of His Dreams- Trent A. Hamm
I am personal fan of Trent Hamm’s blog The Simple Dollar. So I was very curious about this author’s journey of debt freedom. The book contains the usual wisdom that is present in most of the finance books. But the book is not easy to follow as the author has written it in retrospect instead of sequential flow in one’s life.
The words of wisdom from this book are :
- To put it simply, people who wrote down their goals and followed up on them achieved substantially more, leaving those without written goals behind.
- Long-term goals are put short-term goals in an appropriate context.
- In his book Objective Happiness, Daniel Kahneman describes the peak-end rule, which states that we judge our past experiences based on our strongest emotional response (the peak, which can be positive or negative) and on how it finishes (again, either positive or negative).
- Frugality to five simple rules. If you keep these five rules in mind when you evaluate your spending, you’ll always find happiness and freedom, both now and in the future:
- Don’t give up the things you love.
- Find inexpensive ways to enjoy the things important to you.
- Never go shopping without knowing exactly what you want. If
- Use the thirty-day rule for any unplanned purchase.
- Distinguish between what’s “important but not urgent” and what’s “urgent but not important”—and choose wisely between the two.
- Success in the global economy requires young people who stand out beyond the test scores and the old checklist of extracurricular activities. The world demands a more well-rounded skill set, one that goes far beyond classroom learning and branches into how they approach the world.
- In her book Mindset, Dr. Carol Dweck argues that there are two basic mindsets that define how people approach the world. “Believing that your qualities are carved in stone—the fixed mindset—creates an urgency to prove yourself over and over.
If you have only a certain amount of intelligence, a certain personality, and a certain moral character—well, then you’d better prove that you have a healthy dose of them. It simply wouldn’t do to look or feel deficient in these most basic characteristics.” On the flip side of the coin is the growth mindset.
“This growth mindset is based on the belief that your basic qualities are things that you can cultivate through your efforts. Although people may differ in every which way—in their initial talents and aptitudes, interests, or temperaments—everyone can change and grow through application and experience.”
2. The fixed mindset is one of inadequacy, of a sense that you can never really stack up to your competition.
- Independent learning is a lifelong skill that pays dividends over and over again throughout your personal, professional, and financial life.
- The more a person uses their faculties for learning new things, the easier learning new things becomes.
- If you want something different out of life, you need to try something different and change the rules a bit.
- Albert Einstein. It speaks to a fundamental truth about the world: “Success comes from being different, not from simply repeating the moves of everyone else.”
- “Live Like No One Else So You Can Live Like No One Else”
This is quick read for regular readers but personally I like Trent Hamm’s blog more than his book. But it is refreshing view to improve one’s finances by taking inspiration from the debt freedom journey of the author.