Author Archives: Jessica

5 Common Myths about Minimalism

by Jessica Dang
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Throughout human history we’ve never had so much stuff in abundance that we would voluntarily choose to have any less than we can get. Given the chance, it’s in our nature to take everything we can for the sake of survival.

But in modern times, taking has gone way beyond the necessities of food and shelter, and consumerism has taken over to the point that we’re killing our own people and destroying our own planet for the sake of the latest gadgets.

Thankfully, in the last couple of years, things have turned the other way and the minimalist movement has picked up momentum.

While I’m happy that news about minimalism has become mainstream, I’m not a big fan of articles that show people sitting like monks in their bare one bedroom apartment with a toothbrush and a towel laid out in front of them.

These articles only show one type of minimalism, and in my opinion intimidates regular people for who it isn’t feasible to live under such extreme circumstances.

There is still so much misunderstanding around what minimalism actually is. Here are the top five misconceptions I hear most often:

Top 5 Myths

1. You can only have 100 [or insert number here] things or less. Don’t you dare have 101 things otherwise you’ll have to get rid of something! Only kidding, there’s no need to keep strict numbers on your possessions. Just follow the general rule of only having what you need, clear out every now and then, and you’ll be fine. The world will keep turning if you have a few more things than an arbitrary number plucked from the sky, yet people think that minimalists are obsessed with counting each sock. There are some who do, but the rest of us spend our energies actually living our best lives.

2. Your home/walls/furniture can only be white, no fun allowed. Although I’m a big fan of minimalist interior design, it’s really only a Pinterest/Tumblr hobby, not reality. Let’s look at the bigger picture. Rather than focus on the things that we don’t have, or are depriving ourselves of, let’s focus on what we do have, and which of those things give us the most joy and add value in life. This applies not just to how we decorate our homes, but also to the people, commitments and things we spend our time on/for every day.

3. You can’t want or have nice things.  Let’s be clear, cheap is different from frugal. Being cheap means buying things of low quality that you’ll have to replace after it breaks. Frugal means buying only what you need, and looking for good deals for things of good quality. Therefore, you can be frugal, but still buy expensive things because you expect it to last a long time. In any case, even if it is a nice thing, if you need it, you’re allowed to buy it! So called ‘minimalists’ might frown at your fifth pair of shoes, but if you need an extra pair because running and hiking shoes are actually different things, you can have both!

4. You need to be a young single male who likes to backpack around the world. Er, no. You’re allowed to join The Minimalist Club™* whether you’re old or young, male or female, or if you have a partner or family, even if it means you’ll have a couple more things, they’ll still let you in. Kids need clothes and toys and you can’t just wear the same two things every day because you have to look respectable at work. You can live out of an actual house if you wanted, and you don’t have to travel if it’s not your thing. We all want different things in life, and as long as you can afford those things that are useful or make you happy, you’re allowed to have them.

5. You can’t get attached or sentimental about anything. Minimalism isn’t hard-core non-attachment Buddhism. You’re allowed to like the things you own, or feel sentimental about things that mean a lot to you. We’re all human after all, and we all have a favourite mug/sweater/keepsake that would make us unhappier if we lost or broke it. As long we bear in mind that although stuff will inevitably be in our lives, life is not inevitably about stuff.

If all this sounds to you like I’m making excuses for ‘non-minimalist’ habits, then you’ve still got minimalism all wrong. There aren’t any rules. People think that minimalism as a lifestyle means having less, when in fact what it really means is having more. Don’t fall for these misconceptions—do your own research and find the path that suits you.

*Unfortunately there is no such thing as The Minimalist Club™

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Minimalist Meditations — July to September

by Jessica Dang
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The latest posts on Minimalist Meditations from July to September:

“If only we could find strength and stability within ourselves, instead of relying on our belongings, other people, or things we can’t control, perhaps we’d be much happier people.”
— Invaluable practices for everyday life: Minimalist Meditations on Equanimity 

“Minimalism isn’t just about decluttering, it’s about learning to lower your materialistic expectations in life and being more grateful for the things you do have.”
— How to be happy now: Minimalist Meditations on Expectations

“Most things worth doing are hard, and hard things need your whole heart in it to do right.”
— What stops us from really living? Minimalist Meditations on Distractions

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My Minimalist European Trip Packing List

by Jessica Dang
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By the time you read this, I might be wondering the streets of Old Town in Prague, admiring art in the museums of Vienna, or bathing in the spas of Budapest… checking cities off my List.

I’ll be mostly offline while I’m travelling, so for this month’s post we’ll take a break from the personal finance advice and go back to basics. Here’s a list of all of the things I’m taking for my minimalist trip to Europe. I’ll be carrying one backpack containing:

  1. One pair black jeans
  2. Two button shirts (that don’t need ironing)
  3. Two t-shirts
  4. Jacket
  5. Pyjamas
  6. Book (this month I’m reading Walden)
  7. Notebook and pencil (for diary entries, thoughts, ideas, sketches etc.)
  8. Sleeping eye mask and ear plugs
  9. Toothbrush and toothpaste
  10. Face wash and face cream
  11. Shampoo and bodywash
  12. Hand sanitiser
  13. Hair comb
  14. iPhone with battery and cable
  15. Power adapter

Not pictured: my iPhone which I was using to take the photo, my passport, flight/travel papers, wallet, and underwear for privacy, and the pair of shoes and socks I’ll be wearing.

That’s it! These are things I’m not taking:

  • Too many toiletries/makeup—I’m not planning to look/smell homeless, but as a tourist I doubt people will pay too much attention to what I look like. Also, coconut oil is a great multi-purpose skin moisturiser, lip balm, hair conditioner etc. which saves me having to take too many travel bottles.
  • Extra clothes—I would rather pay a few Euros for laundry/drying than carry too much around with me since I plan to do a lot of walking.
  • Gadgets/valuables—apart from my phone which I’ll be using for directions etc. I won’t be taking any other gadgets (including DSLR, see below), my watch, or jewellery or valuables that can get stolen.
  • A towel/hairdryer etc—too bulky, I’ll be staying in a mix of hostels and Airbnb which provide them.

I’ll fly with just carry on, so everything will fit in a medium sized backpack (about the size that would fit a 15 inch laptop) that weighs 6-8kg. Even though I’ll be taking very little for the trip, I’m not worried—I’ll mostly be in big cities so if I really need something, I can just buy it.

In a new exercise in mindfulness, I am deliberately not taking my DSLR so that I will spend my energy enjoying the sights in real life (gasp), rather than photographing them. If I like how something looks, instead of taking a photo and rushing off, I intend to spend an extra few minutes appreciating it in person. I might even sketch it into my notebook (I’ve been inspired lately by Leonardo da Vinci to write/draw more things down).

I could have packed more, or I could have packed less. Everyone is different, and everyone needs and likes to have different things. From my previous travels, I’ve learned what works for me and what I’m comfortable with.

Have I forgotten anything? Let me know what you think! In the meantime, check out the latest posts on Minimalist Meditations on Equanimity and on Expectations.

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A Minimalist Guide to Money and Investing — Part II

by Jessica Dang
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This is the second part in my Minimalist Guide to Money and Investing. You can read Part I here, which explains my views on Motivation and Environment, and Mindset and Education.

You can also read about my Minimalist Meditations on Wealth and Money. This post will be about:

3—Accumulating Capital and Allocation

So you’ve decided that you want to be an investor. You’ve worked hard to change your pre-existing views about money, and you’ve been reading and learning a tremendous amount about investing.  You want to have a life of freedom, but it doesn’t come cheap. How do you get started?

Well, either you save money to get started, or you make money to get started.

Saving money to invest—How much money you have depends on this simple formula:

Money You Have = Money earned – Money Spent

If you want more money at the end of the day, you can either earn more, or spend less. That’s it. But if it’s so simple, then why do so many people get it wrong? They don’t earn enough, or they spend more than they earn, which means they have little or no money left by the end of each month.

Even worse, if the money leftover is negative for long enough, people get into debt, which can spiral out of control. I understand that it’s not easy for everyone. Some might not be able to find a job, others have family to take care of. I never said it was going be easy, but most of the time there is something that can be done—downsizing, reducing purchases, eliminating entire bills/subscriptions/memberships, anything!

One of the great side effects of living a minimalist lifestyle is all of the extra money you save from deciding that you don’t need so much junk in your life. Not only that, but if you use those savings wisely, it can buy you things worth way more in the future.

I like to call this reducing your life overhead. Overheads usually refer to the costs of running a business, but there’s no reason why it can’t apply to your life. Keep your overheads low and even if you don’t earn a lot, you’ll have some ‘profit’ leftover.

I had a very average salary when I worked full time. I chose to live in a city where rents were reasonable and I didn’t need to drive a car. I had a capsule wardrobe of work clothes, only went out occasionally, and I ate well but not expensively. By the time I quit my job, whereas most people would barely have enough money to make ends meet, I had nearly a year and a half worth of savings that I could fall back on to pay the bills. If I was even more frugal, I could have lasted two years or more.

But I didn’t want to just live off my savings. My intentions were to use my savings to buy freedom. I wanted to use at least a chunk of my funds to generate a passive income with so that I didn’t have to work again. I will go into more detail about how I did this below, and in a future post.

Making money to invest—On top of your existing savings, you can always try to earn more money to invest. Generally, the more money you start with, the more quickly you will reach financial freedom, if that’s your goal. This doesn’t mean that if you have a million dollars you can just do nothing, it can quickly run out if you don’t use it wisely to generate more dollars.

Even after leaving my job I continued to earn money via various online jobs. A quick Google search will show all the different ways you can make money online.

There are so many ways to make money if you keep your eyes open for the opportunity. Even within the realm of property, there is a lot of advice on how to start investing even if you don’t have a penny. For example, you can do something called ‘rent-to-rent’ (google it) or you can build a network (free), source deals (free or nearly free), and package and sell them to money-rich/time-poor investors for a fee (usually in the region of a few thousand dollars). This is just one example to prove that if you are resourceful enough, you can definitely make money in this world. 

Okay, enough about savings. Once you have some money, how should you use it?

Capital Allocation

What you decide to use your money for is absolutely crucial. It’s what differentiates you from the Scrooges and the spenders and it determines whether you succeed or fail.

Firstly, if you have any expensive debts, you must get rid of them first. Any returns you make in investing are not likely to cover things like credit card debt, pay day loans, or anything with a very high interest rate.

It would be like trying to fill a tub with a huge hole at the bottom. You have got to close the hole(s) first. Some cheaper debts such as student loans may be okay to keep as long as you calculate that the yields you’ll get with investing will outweigh the cost of the loan. This may depend on your personal circumstances.

You may end up having to work extra hours, take on a second job, or be very frugal for periods of a year, or two years, or more. However long it takes, it’s worth the peace of mind to become debt-free.

Secondly, after covering your debts, you need to have enough earnings and savings to cover your living expenses and then some, so that you have a nest egg for emergencies. Some people suggest one or two months, especially if they have specialised skills where they can always find a job, but I would recommend having at least three or six month’s contingency for expensive emergencies.

Finally, only when you have some money left over after all that (it can be as little as a few dollars) you can start investing.

I will talk more about how specifically to invest in the next blog post, but the basic premise of most investments is that you are investing for income and/or capital growth.

What this means is that some of your investing will be to make a short term return (yield) and some will be to make money in the future (capital). A lot of investments are a bit of both, such as shares which give you a dividend and hopefully go up in value over time, and property, which will hopefully give you rental income in the short term, and capital income in the future.

You will need to allocate your investments so that you earn some of both—enough short term returns to cover some or all of your monthly expenses, and enough in future capital growth so that you will have (sometimes a lot more) money in the future as well.

So what did I do in the end? After making sure that I had my basic needs covered at least for the next few months, I ended up investing a chunk of my savings into property. I chose property because it’s one of the only things you can borrow money to invest in. Also, the short term yield (the rent) will help cover my monthly expenses to live, and the long term capital growth will help me grow my income and wealth in the future. I also chose it because I live in Manchester, an amazing city that is booming at the moment and a great place to invest in property, for now.

On top of my own money, I managed to borrow some money from family, and I took out a mortgage after carefully calculating that the apartment(s) I wanted to buy would return a profit after expenses. I will go into the details in the next post, including examples of my income/expenditure/profit figures.

A brief note about borrowing money and where to allocate your debts—there is such a thing as good debt and bad debt. ‘Bad debt’ costs you money, like when money is borrowed to buy depreciating assets or liabilities, such as a car or a holiday. When you use money in this way, it costs you. ‘Good debt’ on the other hand is money borrowed to buy assets that generate money, such as property that has a rental income higher than the cost of borrowing. The property can also be sold with a healthy margin over how much you borrowed. Overall, this means you’re making money.

The key here is to have a plan. Know your numbers—how much money do you earn? How much money do you spend? How much do you have to/want to invest? When can you start?How much do you want to earn from your investments? When by?

A lot of people don’t think about these sorts of questions and go plodding along in their working life, and shopping every other weekend without stopping to think about what they are doing. Both time and money are a limited resource. They can be foolishly wasted, or they can be invested wisely to generate more free time and more money to spend.

I will write more about my specific property investments in my next post, and how you can get started with investing even if you can’t afford to buy a property yet.

Resources

The Complete Guide to Property Investment — Rob Dix

I will refrain from recommending more than one property book. This is one of the best ones I’ve read, and it will give you a good idea of how making money in property works from beginning to end. I also recommend all other books by Rob Dix, and their Property Hub website. I go to their UK meetups every couple of months to discuss property and network with other entrepreneurs.

 

 

The Compound Effect: Jumpstart Your Income, Your Life, Your Success — Darren Hardy

A great book about how small actions can lead to big results. If you think you can’t be a millionaire one day, it’s because you’re thinking about millions of dollars right now, not one or ten dollars, which will compound into hundreds and then millions in the future if you make the right decisions. This book isn’t just about money, but also about how all of the life choices you make today will affect you in the future.

 

The Magic of Thinking Big — David Schwartz

If you want to make it big, you have to think positively, optimistically, and proactively—in other words, think big. My copy of this book is full of notes and bookmarks. Containing inspirational stories and phrases like “When you believe, your mind finds ways to do” and “In everything you do, life it up,” I’ve read this book more than a couple of times and can’t recommend it enough.

 

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Minimalist Meditations — May and June

by Jessica Dang
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The latest posts on Minimalist Meditations from May and June:

Minimalism isn’t just about having less stuff. That’s only the beginning.
—Why we get rid of things: Minimalist Meditations on Opportunity

I was 300 metres away when it happened.
—Staying strong: Minimalist Meditations on Tragedy

We all need to find our own definitions for success, discover our own self worth, and learn how to balance all the forces that pull us in different directions.
—If I were a sin: Minimalist Meditations on Greed

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A Minimalist Guide to Money and Investing — Part I

by Jessica Dang
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One of the most frequently asked questions I receive from readers is how I earn and manage money, and how I was able to create a passive income so that I could quit my job.

In the past, I’ve been reluctant to share too many specifics, as it is a huge subject and I’m not a financial adviser. Furthermore, everybody’s situation is different, depending on their job, earnings, age, risk appetite, city/country and economic environment. With so many variables, there’s no way I could speak for everyone, so the best I can do is talk about my investment journey.

In these posts, I’m not going to tell you how exactly to invest (entire books have been written on this subject) or recommend one particular course of action over another. I’m not telling you what you should, or shouldn’t do. Rather, I want to share my own views on money and work, how my views on wealth have changed over the years, and how I approach investing, earning and spending now.

When I talk about ‘wealth’ in these posts, although I am discussing material and monetary wealth (something that is not often discussed by minimalists as a good thing!) I am well aware that money is not the measure of one’s worth. Please see my Minimalist Meditations on money and wealth for my views on this.

I’m going to share how I went from a full time corporate employee working 50+ hour weeks to earning the same amount of money but only working between 1-6 hours per week on a passive income, all from a minimalist’s perspective. By ‘minimalist’, I don’t mean that this post will be a simplified, dumbed-down article about investing basics. It will be about how I have applied various minimalist philosophies to my approach to investing, for example, how I’ve been able to educate myself in various types of investing so that I’m able to select the type that works for me (in this case, getting fair returns by doing as little as possible so that I have time for things that are more important).

I’m not saying that it is every minimalist’s aim to quit their job, lie on a beach, and do nothing at all. Nor am I saying that having or not having money defines minimalism in any way. You can be a minimalist in a hut, or a minimalist in a mansion. Minimalism means something different for everyone, and for me, minimalism has always meant freedom. Freedom to choose what I wanted to do, when I wanted to do it, where I wanted to go, and who I wanted to spend my time with. It means directing my limited resources of money, time and energy away from what people think of me (the size of my house, car, wardrobe etc.) towards things that actually matter to me, like giving to those in need, and spending time reading, creating, travelling, and with my friends and family.

Everything I’ve always wanted to say about money (almost!)

I’m going to be very frank about the subject of money here, because I think there are some hard truths in this subject. It won’t be to everyone’s taste, especially people who don’t want to admit that they are unhappy or doing anything wrong. I’ve heard a lot of excuses in my time. The worst approach I’ve heard people have is complaining how everything is stacked against them, how they’re ‘just not lucky’, or resenting people who have been successful in this way, but doing nothing about it.

I also don’t expect everyone to agree with everything that I say, which is fine too. I’m always willing to hear other people’s opinions and learn something new, but if you don’t have anything helpful or constructive to say except for poo-pooing on somebody’s else ideas, you can save your precious time and stop reading now.

If you’ve read this far and want to carry on, good for you. There is a lot I want to say, and because it is quite a complicated subject, I will break it down into multiple posts in linear steps, although life rarely works in a straight line. For the sake of easier understanding I’ll start with the basics.

This post:

  • 1—Motivation and Environment
  • 2—Mindset and Education

Future posts:

  • 3—Accumulating Capital and Allocation
  • 4—Investing and Income
  • 5—Your New Life
  • 6—The Past (Reflecting) and the Future (Giving)

I’m going to try to fit in everything I’ve always wanted to say about money in these posts. The reason why I say ‘almost’ is that I’m sure there’ll be things I’ve forgotten and will want to add later, or edits, clarifications, and answers to readers’ comments in the future so the above post ideas are subject to change.

Before we start, I strongly recommend reading a previous post I updated recently 5 Ways to Get Rich for Free about some basic yet important ideas about money.

1—Motivation and Environment

Most people don’t just stumble upon investing. We’re not taught it at school, and it’s not a natural instinct or something that is instilled in us as children—that money can be made other than the route of school -> university -> job -> promotion(s) -> retirement = success.

There’s usually a trigger that sets people on the path of investing—usually a person, or an event. For me, my trigger was realising (over a period of a few years) that I never wanted to work in an office again. There were times when I enjoyed myself, but after a while, I felt conflict with my inner self, the person who I wanted to be. Working long hours in a meaningless corporate job felt like it went against my philosophy of minimalism, not because I owned a couple more things, but because I felt I had much less freedom. I was cash-rich, but time-poor. Even if I changed jobs, I would be subjecting myself to the same things I hated (long hours, pointless meetings, office politics etc), just with a different job title. So I quit the world of work to get my life back.

I want to stress that I don’t recommend this approach to everyone, especially if you’ve got people dependent on you. At the time, my life overheads (ie. what I was spending on a day-to-day basis) was very low, which meant at the time of quitting I had enough savings to pay essential bills and food for about 18 months. I had a vague idea that I was going to use some of those savings to do something on my own, although what it was exactly, I hadn’t figured out yet. For most people, I recommend getting any side businesses or secondary income streams off the ground first, before quitting your main income source.

For me though, I knew that I could always get another job if things didn’t work out, and I could always fall back on a couple of online work-from-home jobs I used to have. So my basic needs were taken care of, but I needed to quit to have the time and energy to pursue all the other things that I had neglected while I was working. As well as start my vague business idea, I wanted to have the energy to get fit, to read, to write more, to travel, and to continue my language studies, among a lot of other things.

Your motivation for investing is important because it shapes what you decide to do, how you go about it, and how long it takes you to achieve whatever goals you have. You need to have the internal drive for it, otherwise you’ll get bored, or lazy, or both.

You are also affected by your environment. External factors such as your local economy, your job situation, and the kind of people you surround yourself with all affect what and how you do things, and the results you’ll obtain.

In my case, I didn’t want to work in an office. I hated the early mornings and long work hours, so I decided I would find a line of work that generated passive income. This means I wasn’t going to start an Etsy (not that I have the talent for it) or any other labour intensive business. I didn’t want to swap one full time job for another, and I didn’t want a job that was paid by the hour/day because that would mean I was trading my precious time for money.

I wanted to find a way of earning money that allowed me to put in an initial amount of work, but then after that income would continue to roll in, rather like someone writing a book within a few months and getting royalties for it forever. After a lot of research, I found that I lived in a city where there were huge business opportunities in property. The market was growing, with lots of young people wanting to live here, and prices to buy and rent were steadily rising. Investing in property fit my requirements—if I was able to buy a place (it is slightly capital intensive to buy an apartment but I will tell you how I did that in a future post) the rental income would continue indefinitely.

Once I had an area in mind (property investing), I could start building a foundation of knowledge…

2—Mindset and Education

With investing, if you just dive in, you’re probably going to get hurt. And it will be painful. I wasn’t stupid, so before I did anything, I spent months learning everything I could about about the practical aspects of investing, from how inflation works, what ETFs are, how to make a start-up, to the psychology of investing. I read a lot of books and information online about property, all of the monetary and legislative aspects involved, and researched the market in the city that I lived in. I lived and breathed investing, absorbing everything I could, and learned a huge amount. I’m still learning every day.

One of the most important things I learned from the book ‘Secrets of a Millionaire Mind’ by T. Harv Eker is about people’s ‘money blueprint’. Your blueprint is how you think about money, largely influenced by how you grew up. For example, if your parents have always told you that “money is the root of all evil”, or that “rich people are greedy”, you might still believe it today, and the thought subconsciously holds you back from earning too much because you don’t want to be seen as evil or greedy. Resentment towards the rich is what causes people to stay poor. (Here, I use ‘poor’ not as a derogatory term, but as a practical word to describe people who live paycheck to paycheck, but don’t want to be. I’m not making any sort of moral judgement for or against people who are ‘poor’, or ‘rich’ for that matter, but when talking about money in this context, it’s important to honestly say that there are definitely people who are poor (in monetary terms) but wish they could be more financially free.)

This resentment causes people to not do anything about their work/money situation. They go wherever the flow is taking them in their jobs, and they don’t do anything about their spending habits. They let other people influence them on what they want to buy, and their saving/investing habits may be poor or non-existent. They might even be fearful of any other type of work, such as starting their own business because it’s ‘too risky’ and they would prefer the security of a job. There isn’t anything wrong with living like this by the way, I’m all for enjoying life the way it suits you. If you love your job, good for you (honestly!). However, if you don’t enjoy working, then the constant spending on expensive things means working more than you have to, which means you’re spending half of your life unhappy, as was my case.

Also, people who are not financially literate may think that the only way to earn money is by working a ‘normal’ job, which is simply not true. We live in an amazing world now where there is so much money to be made, and you don’t have to have a lot to start with. People with closed mindsets think that any other way of earning money apart from working is ‘risky’ or at least, so complicated that they could never understand it, so they don’t try. Confusingly, some of these people who are so scared of risk would happily buy lottery tickets. The worst I’ve heard are people who think that investing is in some way ‘cheating’, and that one doesn’t contribute to the economy if they don’t ‘work’ for 9 hours a day. To that, I would say that there are a lot of people who have more to contribute to the world than paper-pushing.

On the other hand, people can have a mindset that money is abundant, and is there for anyone to earn if they have the openness to identify the opportunities, the creativity and tenacity to pursue them, and perseverance when things get difficult. I admit this isn’t the most natural mindset, it’s usually learned out of necessity. My immigrant parents who didn’t go to school didn’t have a choice but to earn money with their own bare hands, literally. They missed out on learning how to read but at least they were never conditioned to follow societal conventions about work. They hustled and worked hard, and did everything themselves until they got to the comfortable lifestyle they have now. I was lucky enough to go to school and college, but it took me years to learn this lesson.

Lest you think I come from a place of privilege, I would like to share that apart from the hustling mindset, I wasn’t given anything above and beyond what most kids my age got (in fact, I would argue with my background I had a lot less) but I have always worked extremely hard. Because of our family’s poorer financial situation while I was growing up, I was always looking out for ways to make money. I started my own eBay wholesale business when I was 15, and have always managed to support myself so that I didn’t have to rely on my parents’ small amount of money. During college, while other students were partying or spending their loans on holidays, I had two jobs and never allowed myself to get into debt.

I am not saying that all you have to do is change your mindset, and you’ll automatically become rich. I know it’s not that easy. You can’t just dream about it and be a bit brave and you’ll be a millionaire. People who truly live in poverty face huge obstacles that aren’t just up to them to ‘think’ their way out of.

But for the majority of people, it’s essential that they have the right mindset because first they have to believe that it is possible for them to be rich, at least then, they can try to do it.

As with anything, it’s it would be almost impossible to accomplish if they didn’t think it was doable from the beginning. 

The good news is that your mindset is not set. You can learn to change, for better or for worse. Being rich or poor isn’t a dichotomy, it’s a spectrum that you can move along at different times in your life. Poor people don’t have to stay poor, and rich people don’t necessarily stay rich. People can become rich by work, inheritance, or winning the lottery, or lose it by spending above their means, getting into huge debts, or gambling it away.

Whatever your mindset is right now, without the appropriate one, you’ll never be financially free. That’s fine for some people, but that’s not how I want to live my life. I want to be free so that I can choose what I want to do with my time. Your mindset is your choice. You can choose to be rich. 

The other points I want to briefly make are:

  • There are a lot of things about money that we are told that are simply opinion, not fact.
  • If more people stopped to question their assumptions about work and money, they would be much better off.
  • Environment plays a role, but I believe that you decide whether or not you will be rich.
  • Investing means ‘using money to make money’, and you don’t need a lot to begin with. In fact, you can start with $10, so there are hardly any excuses.
  • People overestimate the risks, and underestimate the potential benefits.
  • Money doesn’t make you good or bad, it magnifies who you are—if you are already greedy, you’ll be greedier with more money. If you’re already generous, more money would make you more generous.
  • Having money isn’t the aim, having freedom is.

So I adjusted my mindset and went about educating myself about the world of investing. I learned about the different options available, and the risk/reward profiles and advantages and disadvantages of each method. See below for some resources. Knowing the basics, I was able to draw up simple calculations and work out whether or not my business would be profitable. From my research, I identified that there was money to be made, now it was just a matter of going after it…

This post will continue next time with:

  • 3—Accumulating Capital and Allocation: how I got the money to get started, and how I decided what to do with it.
  • 4—Investing and Income: how I actually went about investing my money, and how I get an income.

In the meantime, please let me know what you think of this topic. You can comment below, or contact me on Twitter or Facebook.

Resources 

They don’t teach you about money at school. I wish they did, a lot of people would be much happier, and would have much healthier attitudes towards money. I’m not a millionaire (yet) but I would have certainly become ‘richer’ earlier and more quickly if I started earlier. Instead of just complaining about it, I went about changing my views, and therefore my life. Here are some of the best books I read that helped me get there:

Secrets Of The Millionaire Mind: Think Rich to Get Rich

As I mentioned above, this book taught me that making money was all in your mindset. It’s hard to believe, but how we think about money can hold us back from making it, or push us to find ways to make it even though the odds seem slim. It also talks about how different mindsets aren’t necessarily right or wrong, but work in different ways, and in some cases even complement each other, as in the case of couples/partners. I recommend this book to people who think that becoming a millionaire is impossible without winning the lottery.

Rich Dad Poor Dad: What The Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! 

This book taught me the basics of liabilities vs. assets. If you don’t know what these mean, you need to start with this book. A lot of things that people are taught about money, like how home ownership is the most important thing in the world has ruined them financially. At the very least, people would have been much better off if they could distinguish between buying things that put money in their pocket, or cost them their long term future. That’s the difference between people who stay poor or become rich. That’s not to say that you can never buy your own home or a nice car if you wanted to, but people do this when they can only just about afford it, and therefore they don’t or can’t invest, which if they did, a few years later they could buy their house ten times over.

The Snowball: Warren Buffett and the Business of Life

If you want to be the best, you have to learn from the best. It might sound cliché, but if Warren Buffet is the most successful investor in the world, wouldn’t you like to know how did he did it? This is the most detailed biography of his life published, it’s a very long read and perhaps you don’t learn a lot as much about how to invest as much as you learn about what investing really means. Warren Buffet delivered newspapers as a boy, and had to borrow money to get his business started, but he never doubted he could be rich. Then he made billions.

Blogs: I recommend checking out Afford Anything and Financial Samurai (I read every post).

More resources to come in future posts, enjoy!

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Minimal Student has graduated! You can subscribe to weekly updates on the new blog Minimalist Meditations via RSS, email, Twitter or Facebook.

Minimalist Meditations — March and April

by Jessica Dang
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The latest posts on Minimalist Meditations from March and April:

How do you keep going when things get difficult? If you don’t have a good answer, you won’t last long.”
—Find your reason: Minimalist Meditations on Why

“You can own 1,000 or 10,000 things, so long as everything contributes to your life in a meaningful way.
—Debunking the biggest minimalism myth: Minimalist Meditations on Quality

“There are two ways to be rich—to get everything you want, or to want everything you have.
—There is such thing as a get rich quick scheme: Minimalist Meditations on Money

“Your net worth is not your self worth. Your bank balance has little do with what your true value is, or how rich you really are.
—When money costs too much: Minimalist Meditations on Wealth

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Minimalism and the Pursuit of Perfection

by Jessica Dang
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If you could see the WordPress dashboard for this blog, you’ll find hundreds of crappy drafts. For every post published, I have at least 5-10 drafts that will never see the light of day.

It takes a lot of brainstorming, bad ideas, poking, prodding, and feet dragging to get a single post out. Most of all, it takes time. In fact, I wrote the original idea for this post in 2011. You can imagine how my book is going.

But by being persistent, something eventually comes out of it. If you’re lucky, it might even be good. Sure, there are posts that aren’t as popular as others, but that’s okay, because there are as many posts that exceeded my expectations.

There are two types of pursuits—you either have to get perfect results, or you don’t. If you’re building a bridge, it needs to be precise. Fortunately, most things fall in to the latter type. It’s better to try and get something done, than not doing anything at all because it can’t be perfect.

There’s no such thing as perfection. Art, business, science, life…everything is one big experiment. Sometimes you’ll get something wrong a hundred times before you get it right once. Nobody learned to walk without falling.

Minimalism is the same. Doing a little bit is better than none. You don’t ‘become minimalist’ overnight, or even over a couple of months or years. There’s no final, perfect goal. It’s a continuous practice of shifting your mindset and making the best decisions you can. You’re allowed to have lapses. There are no rules, so who’s to judge you?

Embrace the struggle. Anything worth doing is difficult. The discomfort weeds out the wannabes. The hardship is what makes it an accomplishment. As Roosevelt said,

“Nothing in the world is worth having or worth doing unless it means effort, pain, difficulty… I have never in my life envied a human being who led an easy life. I have envied a great many people who led difficult lives and led them well.”

Book I’m reading now: Bird by Bird: Some Instructions on Writing and Life — Anne Lamott

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Minimal Student has graduated! You can subscribe to weekly updates on the new blog Minimalist Meditations via RSS, email, Twitter or Facebook.

Minimalist Meditations — January and February

by Jessica Dang
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In case you missed the announcement, I have moved on from monthly articles on Minimal Student to weekly updates on my new blog Minimalist Meditations.

Here are the first few posts from January and February:

First post—Welcome

“Minimalism is more of a philosophy than just a lifestyle choice. It is a way of thinking that questions the way most of us are raised”
Minimalist Meditations on Meaning

“It’s a minimalist gift that keeps on giving”
Minimalist Meditations on Kindness

“To be comfortable with living with less, you have to believe that there will always be more.”
Minimalist Meditations on Abundance

“Minimalism is a discipline. It doesn’t come naturally to most people. But if it was easy, everyone would be happy. Happiness takes a lot of work.”
Minimalist Meditations on Discipline

If you enjoyed these, you can subscribe to the new blog via RSS, email, Twitter or Facebook.

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Minimal Student is graduating

by Jessica Dang
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I started this blog seven years ago at the beginning of my minimalist journey.

It was 2009. I discovered a lifestyle movement that talked about the joy of having less. I learned about how being obsessed with buying and owning material possessions is a recipe for an unhappy life, and it resonated with me. I began to write about it.

At first, I was mainly concerned with stuff and how to get rid of it. I wrote about decluttering and one bag living. It suited my nomadic lifestyle at the time when I was living, working, and exploring several different cities and countries.

Eventually I returned to the UK. I was approaching my mid-20’s, and everyone around me was settling down. I moved into my own apartment with the single suitcase I had been living out of.

I got a corporate job and it was everything I ever wanted—or at least, I thought I wanted. I was paid well and got promoted, but the environment was so tough I began to change as a person. I struggled to find balance. I started buying more things to make up for the creeping unhappiness I felt doing a job which I realised, deep down, was ultimately meaningless. It took a long time, but in the end I found the courage to quit. I ended up starting my own business which gave me the freedom to do what I wanted. I took back control of my own life.

At every stage of my life, my perspective on things shifted. The more I experienced, the more convinced I was that many of the conventional ideas we’re supposed to follow—such as working in a soul sucking job in order to pay your bills and buy stuff until you’re either 65 or dead—didn’t really stand up to scrutiny.

In turn, the direction of Minimal Student has followed me on my quest, moving on from ‘how to declutter’ articles to ones about the tougher questions—what is important in life? What does success really mean? How can I be happy?

I still have more I want to share with the world that isn’t just limited to young people or students. By trying to keep things relevant to the blog name, some of the articles I’ve written have been held back from being able to reach a wider audience. As my readers have grown, the blog has to as well. The Minimal Student community is made of readers of all ages, and from all walks of life. I want to reach out to them too.

So I have decided to start afresh. Don’t worry, Minimal Student isn’t finished. I will always be a student of life and will continue to study what it means to live. However, I will be doing so under a new blog, Minimalist Meditations (www.minimalistmeditations.com) which I am working on expanding the ideas for my book that I’m hoping to finish and publish this year.

To make the transition easier, Minimal Student with continue to exist for a little while, before all of the links will redirect to the new blog URL. All of Minimal Student’s social media will also be renamed.

The good news is that I will be writing a lot more often, and you can keep up with new posts I write and publish by subscribing via RSS or email, or following me on Twitter or Facebook.

I don’t claim to have all of the answers, and in no way have I reached ‘the end’, but I can reflect on what I’ve learned in the past several years and what I, no doubt, will learn in the future. Feel free to join me at Minimalist Meditations on this path towards finding a life of happiness.

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