https://www.alainguillot.com/poor-people/

Poor people stay poor because they are afraid other poor people will judge them for trying to get rich. -Dave Ramsey I think this is very appropriate, we are victims of our environment and we are deeply influenced by the people around us. I have a few friends who are rich, and I try to learn as much as possible from them. I also have some friends who are poor and although I enjoy their company, I try not to be like them. In the artistic community where I navigate, people are often called “Sold out” if the primary reasons to produce art is to make money. The truth is that in North America, many people are poor because they prefer to be poor, they have all the resources necessary to get out of poverty, but there are psychological factors that prevent them from building wealth. Reasons Why People Prefer to Stay Poor Social Pressure: People often conform to the expectations of their social group. Most stay poor not due to a lack of resources—especially in an era when everyone has a supercomputer in their pocket—but because they don’t want to betray their social group. This is a sociological phenomenon known as “crab mentality” or “crabs in a bucket” mentality. This idea suggests that members of a community or social group may, consciously or unconsciously, prevent each other and themselves from achieving success or rising above their current status. Religious Beliefs: There are many religions that discourage building wealth. In Christianity, the Bible states in Timothy 6:10, “For the love of money is a root of all kinds of evil,” and in Matthew 6:24, “You cannot serve both God and money.” Islam teaches that “Richness does not lie in the abundance of worldly goods but richness is the richness of the soul.” Buddhism warns that attachment to material possessions and wealth can lead to suffering and distract individuals from the path to enlightenment. Hinduism views wealth as one of the four goals of life but emphasizes pursuing it in a balanced way that aligns with dharma (moral duty) and without greed. Self-Sabotage: Individuals from poorer backgrounds who achieve some level of success may feel like imposters or believe they do not deserve their achievements. This can lead to self-sabotage or not pursuing further opportunities. Breaking the Cycle Jim Rohn famously said, “Your net worth is the average of your five closest friends.” The people you spend the most time with have a significant impact on your attitudes, behaviors, and ultimately, your success. Although many of my friends are artists who struggle financially, I constantly seek the friendship and wisdom of those who are more successful than me. Steps to Breaking the Cycle: Surround Yourself with Successful People: In your environment, try to find the friendship of people who can guide and mentor you. Consume Inspirational Media: I constantly read books, listen to podcasts, and watch YouTube videos that motivate me. The messages are often repetitive, but they continuously reinforce the idea that I must do better. By adopting these strategies and changing your mindset, you can break free from the cycle of poverty and embrace a path to wealth and success.

https://www.alainguillot.com/inflation/

Inflation is high, and I can feel it. Food costs more, going out to restaurants costs more, and the cost of housing is going through the roof. Many of my friends are nervous and unhappy, and most of them are looking for solutions to cut costs.

Cutting costs is easy: you buy the bare minimum and only buy things that are on special, and you deprive yourself of this or the other thing, but there is a limit to how much you can cut cost. The solution has to be on the other side of the equation. Instead of looking for ways to cut costs, you could be asking yourselves, how can you earn more? There is no limit to how much you can earn, so if you look for solutions, you might find them.

A big part of inflation is the cost of labor. This means that if you are part of the labor force, you need to find a way to get paid more. If you are an employee, this is a good time to ask for a raise or switch to another company that will pay you more. If you are an entrepreneur, this is a good time to increase your prices.

Also, if you are an investor, you have no reason to complain. Inflation is currently about 3%, while if you are invested in any broad-based index fund or ETF, your returns are well above 10%. The S&P 500 is up 17% so far this year and 24% over the past 12 months. You should be celebrating.

In conclusion, try to find a way in which inflation is working for you and not against you.

https://www.alainguillot.com/frugality-2/

I have always lived a frugal life, but now as I am transitioning into retirement, I am questioning my frugality.

When I came to Canada, as an international student, I experienced financial hardship, like most college students. I was working under the table because I didn’t have a work visa and I hardly had enough money to pay for my food, my rent, and my tuition. Since then I developed the habit of excessive frugality. I didn’t see how I could earn more money, so I decided to go on the extreme of spending as least as possible.

This continued later on in life, I became a freelancer because I was never able to find a job that paid me a regular salary. Never in my work history I had a regular salary and I was always anxious about money, so I continued my habits of extreme frugality.

Along the way, I learned about the FIRE movement, which is based on only spending a small portion of my income so that I could accumulate enough wealth to retire early. This is exactly what I did, but this goal to retire early continue reinforcing my habit of extreme frugality.

Finally, this year I reached my FIRE number, and I aware that the mentality of extreme frugality is no longer serving me well. Now I have to learn how to spend more money and enjoy life a bit more.

I don’t follow any budget. Instinctively, I have an aversion to spending. For years, my trick was to pay myself first first. Once I deposited money in my bank account, I would allow myself to spend the rest. Now that I am retired, I withdraw a set amount from my broker’s account every month. If I need more, I just withdraw more.

This brings me to the subject of investing. Most financial advisors suggest that as you approach retirement, you should own less stocks and more bonds. I have mentioned it several times, that investing in bonds is shooting yourself in the foot. I am 100% invested in stocks and my money is growing at a faster rate than I can spend it.

I also feel fortunate to be a man. As a man I don’t spend much money on clothing or cosmetic, as many women do. I see some of my female friends spending money on beauty and fashion and I just shake my head and count my blessings.

I do enjoy spending time with friends, but that’s easy for me. My closest friends live only a few minutes away from my apartment and most of the time we open a bottle of wine and meet at the park. It’s easy and not expensive.

I find joy in the simple things of life, such as reading, writing, eating with friends.

I do have two advantages in keeping my expenses low. My rent is low, and I don’t own a car. I own a bicycle, I take the metro, I enjoy walking, and use a car-sharing service when I need to go far.

Since I mentioned walking, I walk about one hour ever day, that way I stay in shape and I don’t have to pay a membership to the gym.

Another advantage is that I shop at a small family grocery store close to my apartment where the prices are much cheaper than at the big brand grocery stores in Canada.

Also, I make it a point never to buy processed foods. I think that processed foods are poison to our bodies. I cook most of my meals at home. They consist of vegies, frits, and grains. I tend not to eat meat.

I have nothing of value in my apartment, most of my furniture I have is second hand. The only thing in my apartment that I really care about in my laptop and my two computer screens. Since I have nothing of value in the apartment, I don’t pay for apartment insurance. And of course, since I don’t have a car, I don’t pay for car insurance either. Finally, I don’t have any dependents, so I don’t need life insurance either.

I never eat at restaurants or order takeout if I am by myself, I can always prepare a meal in a few minutes. However, I do go to restaurants when I am with friends and that happens about once or twice a week.