THE THINGS WE OWN REALLY OWN US
by Humberto Cruz, Corpus Christi Caller-Times

For years I've had the reputation of being "frugal," although "not wasteful" would be far more accurate. Yet I can go around our house and point to waste.

For example, the more than two dozen music CDs in my collection that I never liked much and never listen to anymore. Two polo shirts, each worn once, have hung in my closet for years.

For all the wasteful items on my list, I realize now I've traded five months of my life.
That's how long it would take me today, after taxes and work-related expenses, to earn the extra money I'd already have if I hadn't spent it on things I don't use, and had invested it instead.

That's the main lesson I took from the "Life or Debt: A One-Week Plan for a Lifetime of Financial Freedom" (Ballantine Books, 194 pages, hardback, $22.95). The author, South Florida resident Stacy Johnson, created and hosts the syndicated "Money Talks" segments that air on about 80 TV stations nationwide.

For those struggling to get out of debt, I highly recommend Johnson's book. But even if you have no debt, you can benefit. Johnson devotes 45 pages to "205 Ways to Save," such as buying Christmas decorations in January when prices are cheaper, and avoiding expensive extended warranties on appliances.

Still, the main thrust remains how to control expenses, get out of debt and stay out.

"My experience is that for every person who has money to invest there are 20 who first need to pay off their credit cards," said Johnson, a former stockbroker.

As the book says, "Becoming wealthy has almost nothing to do with income or investment know-how. Accumulating wealth comes from avoiding debt, living below your means, and investing sensibly and consistently."

Johnson's debt-busting strategy is also what I've advocated for years. Keep track of all your expenditures, so you can decide which ones are worth it. Eliminate what you don't need or is not a priority, and pay down your debt. Finally, invest the money you're no longer wasting in interest payments.

"Our willingness to trade our lives for things we don't really want or need comes as a result of moneylenders and other advertisers pandering to basic human nature," Johnson wrote. "But you may find that what brings you the greatest joy involves very little money, maybe none at all."