Dec 12, 2016
#55: Scott Alan Turner used to be a money moron. (In his
words.)
He traded a Jeep for a Porsche in his 20s, purchased a 3,000 sq.
ft. house with two mortgages, and bought luxury furniture on
credit.
The Porsche cost him $800 per month. The house cost $200,000. The
furniture? Who knows.
Scott didn't have a budget and never tracked his spending. He only
knew that he could afford the monthly payments on these luxuries
... until one day he realized his mortgage was due in a few
weeks.
And his bank account was rather empty.
And he didn't have an emergency fund.
Oops.
Scott realized he was drowning in debt. So he decided to make a
change.
He sold the Porsche and paid $6,500 cash for a truck.
He paid off his credit card.
He aggressively attacked the mortgage on his house.
Step-by-step, he made strides toward improving his financial
future. After listening to Clark Howard on the radio, he realized
it was important to free his money from the grip of debt and put it
toward savings and retirement.
Once he got married, he sold his house and downsized to his wife's
town home. They then downsized to a 1,000 sq. ft. rented house, and
downsized once more to a 300 sq. ft. bedroom with his in-laws.
Throughout all of this downsizing, Scott kept saving money. He
eventually saved enough to become a millionaire at age 35. Today he
writes and speaks about personal finance full-time. He hosts the
Financial Rock Star podcast. And he's stayed debt-free -- including
mortgage-free -- since 2009.
How did he go from money moron - buying expensive cars and
furniture - to disciplined saver?
He can answer that question in one word:
Contentment.
He doesn't need to buy more, because he's happy with what he
already has.
Scott credits his frugality to feeling satisfied with his
possessions, rather than running on a hedonistic treadmill of
always wanting more.
While he still appreciates fine craftsmanship -- a gorgeous house,
a designer car -- he realizes that he doesn't need
to own luxury items. He can appreciate art and design
without making a purchase. He prioritizes spending on his values:
more time with friends and family; more life experiences. He
doesn't spend to impress others, which is a losing game.
Discover Scott's fascinating philosophy on the link between
frugality and contentment (and learn from his money mistakes!) in
this episode.
Enjoy!
-- Paula
For a full list of resources, or to leave a comment, visit http://affordanything.com/episode55