Financial Advice for those wanting to be an O/O

The amount of money you have, had, or will have is not a consideration when it comes to mental health, in my opinion. If you are whole upstairs, money, nor legalities will make any difference to your quality of life. That is a mental state.

If you are the kind of person that is stressed about where your next meal is coming from, you cannot objectively determine your wants from your needs…from my experience. An example is Maslow’s hierarchy of needs. I think that’s where poor choices come from. Sacrificing long term needs with short term desires or what you think is necessary today.

Of course you need to apply accounting principles. I’m familiar with GAAP. I’m rusty and not up to date, but I think you’ll see our differences in the definition of “principles.” Accounting “principles” guide legislators in talking as much money out of your pocket as they can legally find cause for. When they can’t, new principles are created. For example, how many years in a row that you’ve been filing taxes that you had to learn new rules? It will not end. In fact, I guarantee that not every cpa and attorney keep up with all the changes so that you will benefit. Just ask any truck driver that has fired their cpa because they weren’t getting them full deductions. Then, when you leave interpretation of the rules, everybody licensed to represent your interests will do so according to their level of knowledge and skill, not because of the rules themselves. Does that make sense?

therefore, I’ve tried to simplify things in my life. Instead of being concern with every detail, I look at guiding principles. If I have no money coming in for the week, month, or year, I would go without. Some will charge their expenses to continue their lifestyle. It’s hard to cut back from a comfortable life but some can do so very easily.

From my experience, folks get caught right there…when they can’t make a change in their way of thinking and try to continue living beyond their means. That’s why I say it’s all mental. The money and accounting methods don’t matter. Seriously, I’ve spent a few dollars in my time. I’ve also lived out of my car as a single dad when my oldest daughter was only 9 months old. That said, I determined connections between us all are the most important thing, not how much I can provide…because it can all disappear in the blink of an eye. If you can lose it all, why allow money to be the cornerstone of your well-being?

Cash flow is honestly the only equation that matters. That’s all the banks care about when entering your data into their spreadsheets. You know why? Because they are calculating cash flow to figure out if you can pay them back.

Yes, there’s a lot that goes into cash flow and the strategies to get there but there’s no one solution. It all depends on your goals. In my opinion, my financial goals are secondary to my mental health. My current financial situation is a result of my actions that were guided only by what’s best for my mental health. Second was what’s best for my family. Then, after that is decided, it’s easier to plan out what you want to accomplish financially.

To offer some applied money strategy, my personal strategy is to own nothing in my name and I only have one years operating expenses in the bank. Every dollar I make goes to buy equipment or resources for my farm. Because I am happiest when working in the dirt. I have no other investments because as a principle, I don’t need them. I don’t believe in legacies for the kids either. I will support them as long as they pursue their passions as opposed to chasing a dollar.

Going back to Dave R and his books…he’s not wrong. Maintain positive cash flow (however is best for you and your situation) and keep a level head. It’s much harder to do than it seems.

 

Understandable however, back in May 2022 when the prices of used trucks were 40% higher is that still a beneficial factor for used opposed to new not rising more then 10%. With New there is extender warranty opposed to used from a dealership. Don't get it twisted, I definitely wanted a used truck however the price scale escalated daily and it was impossible to obtain. A dealer at Peterbilt gave me a break for a brand new one off the line. I can't see someone paying the same price for used truck as a newer one? How is that beneficial?

 

I know quite a few different people who share your same perspective so it's obvious it resonates and creates satisfaction. Thinking deeply about what one wants to accomplish and in what way pays dividends. I couldn't agree more that reaching your goals is much harder than it seems at times.

 

Unique one off situations clearly require plugging the numbers of the options at hand to see which is most beneficial but the choice between new and used at the same price is an obvious no brainer.

Over the course of a career how often will that situation present itself? In my opinion very seldom.

I am biased in favor of repeatable processes that scale. The situation you outlined has a very low probability of being repeatable in my opinion and if it can't be repeated it can't scale.

 

Um, sure.

 

I’m writing it all down!

 

No, he doesn't

 

And his $20 million mansion

 

And that is where the pride/greed/gluttony comes in, he brags about his season tickets to the Vols and the Titans, really, you're tryign to help people and that's what you're bragging on.