Moving to Lifestyles

Being a member of The Other 1 Percent really isn't so much about just money.  The One Percent may claim the same thing, but the reality is, their money is what sets them apart in the deep, deep belief of Capitalism.  I'm not holding that against them.  The 98% claim to have standards against The One Percent that would better serve all mankind.  To be honest, I would of course financially fit into the 98%, probably not even as high as the middle, but I simply do not share their priorities.  It's my personal belief that a sudden redistribution of wealth would result in the money migrating back to the same hands, once again in a very short time.  That thought is far from original.

Although I don't consider myself financially wealthy, I have invested in assets, rather than consumer goods.  That is a big difference between The One Percent and the 98%.  While the 98% claim The One Percent should be more giving, very few of the 98% are as generous with their own earnings as they expect the wealthy to be.  It's fairly safe to say, the 98% spends a larger percentage of their available cash on what they want for the short term, than the wealthy do, whom they are attacking.  It's just that the wealthy have more dollars to play with.  There are some in this country who inherited their money, but the self-made One Percenters paid a price that most of the 98% can't even imagine, much less willingly accomplish.

I can't relate to The One Percent.  Money doesn't seem like a security to me.  Stock investments are clearly in the control of the powers that be.  Gold and silver are only of value if there are buyers or those who will accept it in exchange of goods.  Paper and coins are not edible, the paper will burn, but not long enough to keep anyone warm.  Paper and coins are not substantial protection against the elements of nature.  The reality is, we live in a society in which the rich will remain rich, because they are in control of what is purchased, and most of the poor will remain poor, because they subsist on wages to purchase consumer goods, which are not assets.  There is no investment for gain in the financial choices of most of the 98%.

The main difference, as I understand it at this time, is the Other 1 Percent are drawing a different line between needs and wants, and investing toward that end.  The Other 1 Percent is a lifestyle, rather than just another percentage placeholder in the economic imbalance of our society.

The Other One Percent is moving to our Lifestyles Section and we're adding a link to a more mainstream concept in investments and business, just to stay abreast of where our economy is really heading.

Wealth

Just what it is to be wealthy?  What is the definition, these days, of weath?  Are Bill Gates, Oprah Winfrey, and Warren Buffet an example of what it is to be wealthy or do they just have a lot of money?  By worldly standards, money and wealth seem to be interchangeable terms.  How many of us are discounting our "net worth" because we aren't millionaires?  I could launch into all the other things in life that are of value, like relationships and health, and those are clearly important; but I'm going to keep it practical and tangible.

My children think I live like a squirrel in winter and I suppose a number of people think living off the land is a sign of poverty, but the truth is, I like the way I live.  My total monthly bills are less than the average car payment.  That's not to say, expenses don't come up, because they do.  Things break and they wear out, but those are incidents rather than regular expenses.  By maintaining a low monthly budget, financial stress is minimal.   Also by maintaining a low monthly budget, when expenses do arise, they are simply met and life moves on.

As a society we tend to measure wealth by accumulation of money and status, but I have a different perspective.  A friend and I were talking the other day and I don't think I gave indication of my shock, but she mentioned expenses and what it would take to live "comfortably."  To be honest, I don't think I'd be comfortable having to deal with that much money.  I'd be trying to figure out what I was supposed to actually do with that much money.  I'd feel obligated to start some sort of philanthropic organization or something.  That would be a huge responsibility for me, a burden actually. 

My definition of wealth affords freedom from financial stress.  One of my true marks of freedom is the way I handle my bills.  On a monthly basis, I have two personal bills and usually one business expense.  Those three bills go over the visor in the buggy, until my semi-monthly trip to town.  In less than five minutes, those checks are made out and in the mail.  All other expenses are handled in cash.  

Living debt free, and stress free is wealth.  Less junk to dust would be even better.  More importantly, though; when it comes to true wealth . . . Having enough to share, at a moment's notice, is wealth.

Wise Counsel

I'm feeling a definite urgency to get my financial house in order.  I'm not building bigger barns, but what I have felt led to store, I know will bless someone, if tonight, my soul is required of me . . . I'm not a money hoarder by nature, but I do not like to spend carelessly, and I abhor waste.

Cast thy bread upon the waters: for thou shalt find it after many days.  Give a portion to seven, and also to eight; for thou knowest not what evil shall be upon the earth.  Ecclesiastes 11:1-2
In my case, I see it this way for earthly matters.  Water, Sustainability/food, Land/Real Estate, Stock, Energy, Cash/Holdings, Precious metals, Long Term Dividends



In sorting through financial decision and economic planning I have two sources of counsel.  My Heavenly Father, YHWH and my earthly father, Daddy.  Both are very accomplished and very, very economical.  My Heavenly Father owns the cattle on a thousand hills, and my earthly father owns several acres of rangeland which he rents to cattle ranchers.  There is a connection . . . Abba is Master and Creator.  Daddy is a steward and caretaker, and in this annexed Roman empire, also a taxpayer!

I came into a bit of money as of late.  It was really strange.  It seemed as if, every place I turned there was some unexpected money.  It wasn't large amounts, but it did add up.  That in itself seemed significant.  I'm not one given to nickel and diming, so it didn't take long to see there was a definite accumulation of funds happening.  Then there was the gift from Abba and the gift from Daddy, that really compelled me to make a few decisions!  Here I'm sitting with unexpected cash and found money.  I already know from Scripture, burying it is out of the question!  And with the interest rate set by the Federal Reserve, the bank is no different than digging a hole.  Precious metals seem to be on the decline from the artificially inflated pricing through this recent Great Recession, so I'm watching for those opportunities.

I prayed, and I called Daddy.  Interestingly Abba and I had virtually the same discussion Daddy and I had.  With both of them, I discussed the fact that paper money had virtually no value, and that banks could basically not be trusted.  We also discussed a credit line that would not be revolving, but simply a number for transaction in the event of economic breakdown.  I discussed land and precious metals with both Abba and Daddy.  Also discussed, was the topic of "stock!"  I liquidated my Wall Street portfolio in late 2006 or early 2007 per the leading of YHWH.  My stock is now four legged, and as Daddy pointed out, is yielding higher earnings than Wall Street.  Not to count chicks before they are hatched or goats before they arrive, but on average; the herd more than doubles annually, yielding about a 150% increase in dividends.  Chickens produce enough eggs to keep me in eggs, as well as able to sell and donate many dozen, while still producing hatchlings to replenish the flock.

The beauty of this stock plan is the fact it doesn't depend upon any backroom deals or market fluctuation.  There are months in which goats sell higher than other months, but I also have the option to let them graze another month, at virtually no cost through the summer.  So far, unlike Wall Street, livestock prices are not terribly volatile and there's certainly been no steady decline.  Livestock prices basically depend upon seasons of birthing and breeding, and rain regarding pasture.

When it comes to land, I cannot manage as much as my Heavenly Father or my earthly father.  I'm maxed out at 10 acres.  Between 10 and 40 acres is more than I can manage without real farm equipment, and the big operators won't touch less than 40 acres for anything, so . . . for now, 10 acres it is.    When seeking the land, I had heard specifically that it was to have a well.  That covers land and water!

I've even had to figure in the long term tax situation.  In speaking with Daddy, I told him, I couldn't afford the taxes on his land in his state.  The thing about land, though; is it really doesn't take much to afford one self-sustainability.  That's not to say an income from farming, but it only takes a few acres to pasture one's own milk supply, meat and eggs, and have a garden of fresh produce.  Even on ten acres, with flocks, herds, and a garden, I have enough room to fence off a temporary space for a new experiment when an idea hits, as well as rotate pastures.  The orchard appears to be coming along nicely.

Daddy introduced the next topic in our conversation, and it also was one I'd already discussed with Abba.  He said energy was a good investment, but not for short term profit.  He was of course referring to stock, but never used the term, other than to mention the long term dividends.  I sat listening to his wisdom, realizing, I had already invested in energy.  Another wind turbine and solar panels arrived less than a week before this conversation.  Just like he described, this "investment" wasn't for short term profit or turn over, but for long termed dividends.  If Messiah tarries, it could still be a blessing to folks long after I'm gone.

So, in both conversations, confirmation was established.  Water, food, land, stock, precious metals, available funds, and energy, all of which, are "holdings" of which I am called to be a faithful steward.   If I am doing this according to the Will of my Heavenly Father in covenant with His Son, the long term dividends will prosper now, leave an inheritance; and the relationship is for all eternity.

Out of Balance

Our economy is out of balance.  Of course, we all know that on some level, but this imbalance is unprecedented in recent history.  Usually the price of precious metals and the cost of land maintain some sort of correlation.  With the collapse of real estate and the Stock Market back in '07-'09, gold prices were driven up in panic.  Silver followed to a point, but it stayed a bit more stable, only spiking for a short time in 2011.

Obviously, I'm not suggesting that we lay up earthly treasures.  We are not to trust in silver and gold, but rather to see it as an indicator that the economy is more unstable that we are being led to believe.  We absolutely cannot trust in anything that is temporal.  These temporal things are very good indicators, however; as they change we can see the correlation they maintain or lose in the changes.  I'm not a history expert, but as far as I know, this is the first time that precious metals have been artificially inflated to offset the Federal Reserve's zero percent interest rate.  

I had shared with someone in late July or early August of 2011 that gold would begin to drop, and selling was a good idea.  Gold is not really a practical savings plan for future use.  If an economy is using precious metals, making change for even small gold pieces becomes quite challenging.  Now that gold is really just an investment attached to paper, it's just part of the Stock Market and Banking.  Then a couple of years ago, someone asked me what I thought of buying silver at that time.  I told them I believed it would be coming back down around $17.00 an ounce.  I also felt that would be an indicator of more economic instability.  Silver has now dropped to that price range, actually even posting under $17.00 before closing on Friday. 

I don't think we need to run out and buy gold and silver at these lower prices.  What has caught my attention in this recent decline of value, is they are no longer comparable to the price of land.  After the collapse of the housing market, land began to increase in cost, but not necessarily in value.  An acre of land will still only produce so much.  If grain prices drop, and subsidies are reduced, mortgaged farmland will not pay for itself.  The actual value of land is what it will produce.  Although currencies have come and gone throughout history, land and precious metals have always had a comparable value, regardless of inflation, until now.

When I bought this homestead, silver was just under $15.00 an ounce and undeveloped land was between $1500.00 - 3,000.00 an acre, depending upon the size of the acreage.  Larger acreages went for less per acre.  Even small acreages were less than $5,000.00 per acre.  Now, silver is hovering below $17.00 and has been dropping in the last 30 days, while land, even large acreages are bringing $5,000.00 - $10,000.00.  There is still no sizeable new housing construction and cities that were hard hit in the last recession have not rebuilt.  There is little left to lose in another economic recession.

Take inventory, count the costs, and see what is truly of value.  We have just about reached the end of being able to kick the can down the road . . .  The crashing of the stock market sent folks into panic mode for gold, which is not proving to be ready to launch new panic.  The last ditch effort to prop up the economy appears to be survivalist gear for surviving ebola.