Investing and Budgeting—The Financial Warrior Mindset. In the Beginning.
Are you ready? Ready to take down that debt?! Now that we know what our attitude towards money is, we have to combat that by creating a Financial Warrior Mindset. What is the Financial Warrior Mindset? The Financial Warrior Mindset is the ability to take a challenge and overcome it with discipline andrelentless persistence.
In the police academy we are told things like:
“Never give up.”
“Have the will to survive.”
“Keep fighting.”
Along those same lines in Marine Corps Boot Camp, I was told things like:
“Improvise, adapt and overcome.”
“Semper Gumby.”
The Marine Corps motto is Semper Fidelis—which translated is “Always Faithful.” So Semper Gumby’ just means “Always Flexible.”
What developed your mindset? As a Field Training Officer in the car with a police trainee, we are constantly asking, “What if this happens, then what will you do?” We have to develop our financial mindset to do the same thing. If I buy this, then what won’t I be able to buy, and how much will this really cost me if I put it on a credit card.
Now visualize this, If someone tried to hurt you or your kids—what would you do? You would attack with relentless persistence and overcome the assailant no matter what the adversary unleashed on you.
You need to have that same overwhelming passion to conquer debt.
I learned from Dave Ramsey about the “debt snow ball.” Mr. Ramsey believes that you should pay off the smallest debt amount first so you see progress.
I see things somewhat differently. Let me tell you why. I have a real fear of snakes so I’ll use snakes for the explanation. If I were trapped in a cage with three different snakes, saw-scaled viper, a king cobra, and a tiger snake, respectively in order of most deadliest to least deadliest. I would look at them and size them up. That being said, I can physically and mentally do one thing at a time. So what would you do?
I would go after the most deadly snake, the saw-scaled viper, first—because it can cause the most injury or death the quickest.
Just like your highest interest credit card or student loan. AKA: The Viper. It is draining your finances. The average interest rate on a credit card is an astounding 16.12%. That’s insane.
Let’s say I have a $20,000 credit card balance with an interest rate of 16%. And I choose to pay this off in 5 years—my monthly payment would be $486. Over those 5 years, I would have paid an extra $9,181 in interest!
You need to get your head in the game and make a commitment to remove that debt from your life so you can start the path towards financial freedom.
Recently, I finished reading Dr. Kevin Gilmartin’s book Emotional Survival for Law Enforcement a second time. As I neared the end, I came upon the bolded section Survivors Control Their Financial Well-Being. Here, Dr. Gilmartin discusses the relationship between those who stay in shape and how it results in better handling of their finances.
Let me say that again in ampler terms. In the Marine Corps—the saying goes: KISS.
Keep It Simple Stupid.
Improve your physical self, improve your financial self.
You will feel better about yourself when you exercise. Even if it is 10 or 15 minutes of HIIT, High Intensity Interval Training, or an active rest day where you get outside and take a walk.
Remember, the Physical Warrior Mindset will improve the Financial Warrior Mindset.
Review:
Your Assignment.
Not in a relationship—list your highest interest debt. Evaluate your exercise routine
In a relationship—list your highest interest debt and ask your spouse to list their highest interest debt. Evaluate your exercise routine.
For example:
- American Express, Balance $10,000, Interest Rate 12.9%, Monthly Minimum Payment $100
- Student Loans, Balance $48,000, Interest Rate 5.8%, Monthly Minimum Payment $399.89
***highest debt
- And so on…