Episode-1749- Financial Preparedness the Modern Survivalist Way — 47 Comments

  1. Hi Jack,
    About ads in the middle of the podcast.
    I think that I like them in the beginning of the show because I can FF and just listen to the whole show uninterrupted easier. That being said, form a advertisers point of view (the one who helps pay some bills), I bet they would prefer I listen to their ads. I listen to a lot of podcasts daily and it is very common to have ads in the middle and it doesn’t offend me.
    In the middle = ads get listened to more often
    (Happy financially supportive advertisers)
    In the beginning = I can skip real easy if I want
    (Happy non-financially supportive listener)

    My two cents…
    Thank you for ALL you do Jack

  2. Wow I sure had to crack up. yeah the mindset has to change first. I have done the flip flop.

    As a kid I considered us “poor” we never had what others had. Mom always had a garden & would can or freeze food. She always made stuff from scratch. Even bread. I remember thinking man some day I will make enough money so I can eat Wonder Bread and not this home made bread. Clothes were either sewn some times out of old curtain fabric that she got from yard sales. If not sewn always from a rummage /yard sale. We had a black and white small hand-me- down TV, old beat up bikes, If you wanted money you worked for it. My first business ever selling squash door to door out of my wagon. I was in the 4th grade. I would was cars. Take little kids out to play. One time got a job at a motorcycle shop. I would dry the bikes off when it was raining. Got 5 cents an hour. I would stand out in the rain and just dry my little heart out. Now the guy that owned the store thought I was funny. I figured it was job security because the bikes would never get dry in the rain. Then I would go in and dust the dry bikes and clean the corners of the floor. I made over $1.00 in one day!! man I was RICH. The guy gave me a huge bonus for working so hard. LOL

    As a teen used car, used clothes, no walkman, no modern music. Learned to sew on a treadle sewing machine, type on a manual type writer. I would go to the neighbors and bake bread in their wood oven an pull weeds in their garden. It was funner at someone else’s house. They were poor too in my mind. We had 5 kids in our family they had 8. Guess it was the kids that made us poor.

    Met hubby. His family had Chef boyrdee mac and cheese in a box. They even got pudding in a cup no making it from scratch. Hamburger patties were pre frozen and shaped . It was nothing to go out to eat and grab a burger. With it fully loaded AND fries AND shake New clothes every school year. Stereo’s music 8 track tapes in the NEW cars. Man they had a very nice big new house. Fancy furniture. They went on trips went to the movies had jewelry Man they even had WONDER BREAD!!! They would hunt and fish. They had a boat so crabbing shrimping fishing all that rich people stuff. Yee haa landed me a rich boy. HAHAHA

    Oh yeah hubby had a job and a very very very nice car. That first Christmas together way back in 79 he asked me what I wanted. All I really wanted was a very small stuffed animal Eyeore. He would not accept that as a real answer. So being the smart ass I am I said fine I want a fur coat & a gold watch with diamonds. Um yeah not good to be a smart ass. He got me a fur jacket and his mom and dad got me a gold watch with diamonds in it. UGH. I was horrified how could I wear a dead animal? I hated jewelry especially watches. Well couldn’t hurt the future inlaws feelings. But future hubby had to learn. He took the coat back. I told him I really wanted a small stuffed Eyeore. that was it. He wanted me to get a big one. NO I DON’T WANT A BIG ONE. That was our first argument. One of many. I settled for the money and went and bought my small Eyeore and put the rest of the money in my piggy bank. LOL How was I suppose to know that was going to go on for years and years. DECADES.

    The babies came along and I made my own baby food. We were poor. I grew my own food. Any that I could in pots or the edges of the patio in the apartment. The neighbors yard or friends yard. I sew some of my own clothes. Hubby would still ask what I wanted for gifts and every time he would buy me perfume or jewelry. Oh man the wedding ring. All I wanted was a very very small thin plain band hand carved out of wood. Lord luv a duck he had this huge ugly diamond picked out. His mom helped him. NO NO NO NO. Settled on a gold band with beaded edges.

    By the time baby # 2 came around we had a bit more money. So no more hand washing cloth diapers or using the wringer washer. This was in 84. Still made some baby food. Still had a garden although small since we lived in apartments. Still cooked most food from scratch. If hubby went hunting with a buddy we would cut the meat ourselves. One time the only thing they brought home was a rattlesnake. Now that was a fun thing to cook. Was not going to have any part of cleaning it though.

    A friend stopped by saw what we were doing. I was wearing jeans that I had sewn myself. The boys had flannel shirts that I had made. Rattlesnake on the BBQ with home grown salad. Home made bread and home made chili. Home made apple pie and we were going to make ice cream later. Home made popsicles for the kids. The baby was eating home made baby food. The apartment was decorated as what would be called today shabby chic with a bit of steampunk thrown in. After the tour my friend says “well I bet your car is all decked out too. I would have never thought you were a yuppy richy type person. Only gourmet food and fancy custom made clothing. I figured you more the simple type”.

    Talk about getting smack between the eyes with a 2×4. hahaha Here all this time I thought we were poor. Now some 37 yrs later my parents are multimillionaires with several rental houses. Living how they want. Traveling all over the world as they want. Summer houses winter houses. Well dad passed but he did as he pleased. Hubby’s folk 250k mortgage in debt up to their eyeballs. Dam near lost every penny in 08. If it was not for an inheritance they could have easily been homeless. Not to mention all the health problems and being over weight from all the premade crap in a can food. When they try to eat healthy they buy low fat cookies and low fat chip then drink diet soda. They still charge every thing. So very very sad.

    Me and hubby? Took him a good 20 yrs to believe me when I said the perfect date night is a camp fire with a hotdog on a stick or can of stew. Gifts he’s got it down now I think. Chainsaw that I can handle, saws all, screw gun, new shot gun just for me. He even made us matching wedding bands out of scrap titanium from work. They are beautiful. He still had a bad habit of charging things which was easy to fix with the new rose clippers he bought me. Took me 20 yrs to put my foot down and say NO to new cars. If they are not 7 yrs old and in cash we don’t buy.

    LOL thanks for the trip down memory lane. My how things have changed and changed back again. Not a week goes by where some one does not say “man you guys are so lucky to have fresh grown veggies and grass fed free range meat and eggs to eat. You must have really good jobs.” I can only say yes we are very lucky and have worked hard. Inside I am thinking Nah we are just lucky to be poor. hahaha.

    On Dec 31 2015 we paid of the balance of our mortgage a few minutes before midnight. WOO HOO. Worked hard saved and pinched every penny as hard as I could. Now almost 3 months of being debt free the battle of staying out of debt has started. It’s so easy to justify sometimes. Well we could have that new floor covering now or the new roof now. We could borrow enough to pay someone to put the new roof on. Yeah we could have it now. BUT IF we don’t have the cash to pay for it now then why would we want to pay even MORE for the same thing. (interest on the loan) yeah I can’t afford that so I will pay 2 times the amount. Now that is stupid. Keep on pinching Work on other things that don’t take money. A need is a need only if someone or something is going to die. Still a bit of mind work to be done. Now to practice living on 50-75% less than we are use to In training for retirement. LOL

  3. Great story Roundabouts. Some of my favorite memories are of times when we were poor. It makes you appreciate it more.

  4. Hi Jack
    Question off topic. What you recommend for information about laying out Swales on contour lines on a property as far where to start? I have watched a few of your videos on the subject. Please let me know.
    Thank you

    • Hello Bill, A good place to start is the lowest point on highest property line.

  5. Hi Jack
    Sorry if this is the wrong place to give the feedback, but I mostly lurk.

    I prefer the ads up front.

    I don’t mind listening to ads at all, and I don’t skip past them, I just find the episode flows better all in one piece. It’s really not a big deal and I’m not complaining about the great work you put out into the world for free (MSB member but you don’t require it so I call it free), and if being in the middle works better for the sponsors to prevent skipping or whatever, no worries. Just saying since you asked.

    Love the show,

    • Ditto on the ads up front. As a listener, I do tend to skip by them (about 80% of the time), knowing that I may miss an announcement. I really want to get into the show, though. I don’t like the break up in the middle of the show either, but have noticed that I haven’t skipped it yet.

      I think it serves the advertisers better in the middle as well, since it’s a little less easy to skip them.

  6. I’m behind on my podcast listening and haven’t got to this one yet. But for any other plant nerds out there, you should grow Ginko just for the historical value! It was one of the very first trees that diverged from ferns about 300 million years ago, and is nearly unchanged the entire time! It is referred to as a living fossil, because it is a very useful marker in fossils to tell the age of the items near it. We have a 100+ year old one at the Detroit Zoo, and it is a beautiful tree that is very unlike what most trees look like.

    I picked a few leaves and figured I would munch on them raw, for some reason thinking it would be like spinach or kale… I advise against that, it tastes exactly like what you would imagine eating a handful of regular grass tastes like. 🙂

  7. Hey Jack…

    Just before Christmas my wife and I started something called the 52 Week Challenge. She saw it on-line somewhere and we both decided to do it. Basically you put money in a jar every week for 52 weeks starting with $1 and ending at $52. So week 1 you put in $1, week 2 $2, week 3 $3, etc. At the end of 52 weeks you end up with $1378. We are doing this on top of our regular savings, which isn’t much right now as we are paying down debt, but it will all add up in the end. That is our way of saving just a little bit more.

  8. Sponsor spots at the beginning please. I find it jarring to jump out of the main subject to “and now it’s time for something completely different” (actually if you did it with that flying circus reference, ads in the middle might go better;).

  9. Please put the advertising back at the beginning, I think it screws up the flow of the show in the middle.

  10. Putting the ads in the middle of the show might do well for feedback/expert council/call-in shows where there are clearly demarcated topics, but it’s disorienting when the ads break up somewhat related content.

  11. I agree with the above commenters. The ads in the middle of a stand alone show is disruptive and breaks the rhythm. It’s like watch a movie on TV as appossed to from a DVD, it’s just not as good.

    I think it works for Q & A shows and expert counsel shows where there is already a clear break point between questions. Even on these shows, I prefer ads at the beginning

  12. Great show. Personal finance is one of my biggest struggles. We’re finally tightening up our budget after years of frivolous spending and have been able to find enough room in our finances to dedicate 40% of every paycheck to debt reduction and still have enough to live comfortably on when we were literally living paycheck to paycheck before.
    I have found the YNAB software really useful personally.

    As for the ads I personally prefer to get the ads out of the way at the beginning. I prefer not switching gears in the middle of a great topic or conversation to hear ads.

  13. Jack, you’re totally on with the first two points. “Broke” is a person’s state at a point in time. “Poor” is a person’s way of life. You might not be poor, you might just be broke. It’s much easier to change “broke” than “poor.” If anyone feels that they’re trapped in that mindset, I suggest reading “Rich Dad, Poor Dad” which addresses it pretty thoroughly.

  14. OK jack, I’ll bite. How is financing a depreciating asset (overbuying on a vehicle) a “smart debt”? Not sure if I follow your reasoning on that.

    • It depends. Every vehicle has cost and they all depreciate, so financing makes sense when the total numbers make sense.

      If I can buy a brand new vehicle at 2.9% financing and preserve my financial reserves we have a good start.

      If the vehicle is used for business we have to eval lease v purchase closely but the write off alone for some will exceed the payment.

      How much driving do you do, how critical is it to your life, what are the total numbers.

      Right now we drive a LOADED and I mean LOADED 4Runner for 318 a month on a lease which included a bit of extra mileage. Buying it cash was 42K, a used one three years old with 40K miles still runs over 30K in good shape, perfect lease vehicle.

      At 36 months I have options

      1. Convert to a buy.

      2. Assuming I don’t damage it, they pay me 1300 dollars for my remaining share of it and I walk away, yea they pay me.

      3. Turn it in and get the 1300 applied to a brand new one, walk out 30 minutes later with about the same payment.

      In return I get a rock solid vehicle, I know my wife is safe in and it won’t be on the side of the road, even the oil changes are covered in the lease. We will never exceed the base warranty.

      I put 2K down so I have this vehicle for 36 months for 13K and can get 1300 for it at the end of three months.

      Say I go buy a vehicle for 13K cash, what do I get, what will it be worth in 36 months? How many repairs will I need to make to it if it is putting 15K miles a year on it? What options do I have when it is a total POS and I need a new one?

      Conversely I paid about 20K cash for my F350, I put may be 5,000 miles a year on it. I would never buy that truck new for 65k and finance under my current situation, it would just be very stupid to do.

      I bet you like Dave Ramsey!

      His problem is he doesn’t do the math, he has a one size fits all solution that actually costs people a SHIT load of money.

      Say I bought my 4Runner and financed it, I would have a payment about double the lease, guess what at 36 months, I would only have been ahead by about 800 dollars if say I convert the lease to a buy. Why, Toyota wants customers like me for a high resale vehicle like that. They know the odds are 90% that I will just pick a new color next year. Repeat business and a cherry pre owned car for them to sell, to someone thinking they got the better deal.

    • Oh another example, my son is driving a brand new Nissan Altima, payment, 129 a month, 1,000 down, 36 month lease, walk away at month 36 and he has to pay 500 dollars in an exchange fee, or roll it over to a new lease.

      Numbers, he pays 5,644 to drive a car for 36 months that is 100% covered by warranty and brand new. In the end you need to call it 6,144 if he walks away, but it actually has a 1,000 dollar trade value if he takes a new lease.

      Tell me what type of car you can drive (including repairs, new tires, etc) for 36 months for 6,144?

      Now yea, I totally beat the shit out of the sales manager on the price but that is what you do!

  15. Jack,

    Great show! I’d love to hear more discussion, or even a whole episode on breaking “Poverty Consciousness” without slamming full on into being a spendthrift. I know this is something that I struggle with.

    I had a good childhood, had everything we needed, but we did have to work for our spending money, didn’t have lots of new stuff, etc. However, somewhere along the line I got the idea that “I don’t have enough money for really anything” and “spending money is BAD”. So even making wise purchases, not going cheap on important things, etc. is painful for me. I’ve talked to my brother about this, and he has the same hang ups. Both of us are in our 20s, and intellectually I know that we’re both doing much better financially than the vast majority of our peers. That said, I still struggle with a healthy relationship with money, and really don’t like dealing with it, or thinking about it.

    Anyway, if you’re looking for topics, I think that some strategies that you have used to break that poverty consciousness both in you and your son would be awesome!

    Thanks for the show!

    • Sounds kind of “woo woo”, I know, but I broke my poverty consciousness by saying to myself several times a day: “I am abundance”. This brought universal traits of abundance into my own consciousness. I know…its really “woo woo out there” but……it works. The subconscious mind must be worked on to effect change in your life and that is one out there subject :).

      Another great one that works is the Sedona Method. It helps you release all your fears and worries and anxieties about money. If you are willing, give ‘er a try.

      • Nope it ain’t woo woo and it does work. Many people suck simply because they tell themselves they suck day after day, sub consciously. If it works for negative it will work for positive as well. Life won’t just get better, but you will recognize opportunities to make it better.

  16. Jack,
    I love ads “later” like today. I like it that you got right to the meat and potatoes today……..LOVE my meat and potatoes…..and didn’t mind listening to the ads later, they were like part of the narrative. Usually, I skip ’em when they are first. Instead of asking, I would have just moved them. Hahaha. Opinions are like arm pits, everyone’s got them!


  17. Hi Jack, Ads in the middle are more disruptive when listening to a show. However I understand if that’s where it makes the most business sense to have them. I agree with above that it may work better for call-in/expert counsel shows though. Thanks for all you do!

  18. Prefer the ads at the beginning so that it doesn’t break up the main content. But whatever you decide to do is fine, I can easily fast forward through them no matter where they are. I don’t mean that to sound rude, its just the truth. Just like DVR at home – I skip the commercials 🙂

  19. I vote for the ads at the beginning as well. Your sponsors have been with you so long that any long time listener has the ads memorized and new listeners don’t know how many times to hit the jump ahead button to just get past them and onto the topic. I find it does interrupt the flow of the show as well. Not a deal breaker for me but I figured I would give some feedback.

  20. Hey Jack.

    Another great show… I have been listening for a couple of years now and have heard you talk a few times on this issue, each time learning a lot.

    I do take issue with one point regarding good and bad debt. I believe education can be a good debt if used in a targeted fashion, not always a bury it in the ground and plant a tree on it debt as you’ve previously stated. I grew up as a farm kid, traditional dairy (family farm style) and was certainly not more than lower middle class. I went to college and medical school and now am looking at 1-2 million dollar per year income as a spine surgeon for the investment of 150k, a pretty good return.

    I absolutely agree that not everyone should be going to college and if they do it should be for an actual career that needs it. I guess I just don’t think it’s as absolute as you have previously stated regarding being a bad debt.

    • Spine surgeon, well you are .1% of those in debt and there are people in debt for more than you with a degree in gender studies. So yea, if you are going to be an MD and specialize in something that advanced, you don’t need my advice on educational debt, but you are such a minority that you are in the best way possible irrelevant to what I had to say.

  21. RE: the Sponsor segment, for a Just Jack show (and probably for an interview show), I don’t like it in the middle because it breaks my concentration on the subject and it takes a while for me to refocus after the break. It’s why I don’t listen much to terrestrial radio. But I think for shows that change topics quickly, like feedback, call in or expert shows, I wouldn’t notice it since the topics are varied.

  22. You are 100% right on the financial liars…my wife used to constantly be on me about having her company financial adviser come and talk to us. When he did finally show up, he had no knowledge of the current laws, or any plan at all. Not surprisingly, at the end of our short conversation he told me, ” you know more about this than I do”. I could ramble, but I believe that statement says it all. How can you show up at a persons house, have no plan, and not even know what the max contributions, or the company match % is? Absolutely pathetic….

  23. I much prefer the ads at the beginning. I have listened so long that I could probably recite most of the ads from memory so I usually skip them. I listen to the show while driving and will prep the podcast to play the actual show content before I start driving so as not to have to mess with my ipad while im driving. The ads in the middle break up the flow of the show and I get stuck without the ability to prep the show and just listen. Put the ads back at the beginning please.

  24. Hey Jack.

    On the hoses, im not sure of the brand but we have a store chain up here (montana) called north 40 outfitters, used to be called big R, basically a tractor supply type store they have the good quality red hoses like what your describing in 90′ lengths. something to look out for. thanks for the show.

  25. Greetings Jack,
    When it comes to getting started with investing some of your advise is old school. You have several times said the education systems will shift. Investing education has made the shift. Open an account at Think or Swim for $2,500. You get two accounts, one real, and one Paper Money. Trade and invest in the Paper Money and lose nothing, but learn. There dozens of FREE online learning opportunities and FREE seminars in major cities like Dallas this coming Saturday.
    I see investing and trading like permaculture. You need to learn by study, doing and observing. Think Oak Tree, it takes a long time but it can get real big. OK, just for fun Google “Tasty Trades + Karen”.
    Folks, trust me on this one, you can and should start early, risk very little or nothing, but get started ASAP.

  26. My personal favorite quote credited to Von Goethe – None are more hopelessly enslaved than those who falsely believe they are free.

  27. Another vote for leaving the ads at the beginning for Just Jack and Interview shows. When the show has multiple parts, I think moving the housekeeping into it works fine. When you (and a guest) are taking us deeper into an idea, its a bit jarring. And when I am listening to 2 or 3 of those shows driving to my farm each week, the housekeeping is actually a nice time to fully digest what was said and get ready to listen to the next one.

    • You are about 12 episodes behind, I introduced the new format last week, ads back to the front but MUCH shorter, MSB blurb moved to the end of the show blended with song of the day. Intro of about 2-3 minutes about the topic of the day right out of the gate, 99% of the feedback has been very positive give it a shot. There is the one percent but you can’t please everyone.