Excerpted from the 30-Day Million Dollar Challenge

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CONTENTS Preface Advice 101 J.D. Roth, Get Rich Slowly Jaime Masters, Eventual Millionaire J. Money, Budgets are Sexy Yoni Dayan, Money Under 30 Melanie Lockert, Dear Debt F.T., Million Dollar Journey Miranda Marquit, Planting Money Seeds The Frugal Gene John, Frugal Rules Joe, Retire by 40 Stefani O’Connell Steve, My Wife Quit Her Job Sam, Financial Samurai PT, PT Money Paula Pant, Afford Anything Bonus: Interview with Brenda K. Uekert, PhD Good Reads

PREFACE This excerpt is from the 30-Day Million Dollar Challenge, which I created to give hope and tools to people who think that a $1,000,000 dream is impossible. I set the goal at $1,000,000 because that’s a number that provides many people with a sense of security about the future. While some readers may think $1,000,000 is just the start and will never satisfy all their desires, others will see this benchmark as an achievement that allows them to takes risks and make solid lifestyle decisions.

Now before we proceed, it’s only fair that I share my underlying values. Believe it or not, I’m really not into wealth. I have few wants and needs and live in a middle-class neighborhood in a house that I own outright. Perhaps my biggest splurge comes from occasional international travel. While I’ve hit a net worth of $1,000,000, I totally get the idea that money doesn’t buy happiness. But as someone who has survived poverty and near homelessness, it affords me the luxury of peace of mind.

If someone had told me twenty years ago that I would be writing a Million Dollar Challenge, I would have laughed them out of the room. And then probably cried as I considered my predicament. I was a newly-minted PhD who couldn’t get her career launched. The entire American dream had become a bitter myth. I was in my early 30s and life looked bleak. My hand-me-down car was failing. I was working minimum wage jobs and living in a horrid basement room. I was desperate. And depressed. And hopeless. Fast forward to today and—thanks to a couple of good breaks—I have reached the point of financial freedom. And for me, that has meant the freedom to create a new career as the founder and owner of the Early Exit Academy.

I was in my early 40s when I became obsessed with net worth, spreadsheets, early retirement, and financial independence. I had a lot of ground to make up, but I finally hit my $1,000,000 net worth mark, partly thanks to the advice I

found online. I am pleased to bring you advice from 15 of the top personal finance bloggers.

Finally, here’s the disclaimer. I am not a personal finance expert. The information in this document is provided for your information only. You may want to check with an expert before making any financial moves. Also, I use affiliate links. If you make a purchase using one of the links to an Amazon product, I’ll receive a small proportion of the purchase price. It doesn’t affect your purchase price and it allows me to provide free resources to readers.

ADVICE

What’s the best action someone can take to build a net worth of $1,000,000?

That’s the question that 15 popular personal finance bloggers answered as part of my 30-Day Million Dollar Challenge. And what a terrific lineup of bloggers who contributed their advice. Here’s the whole gang:

Afford Anything

Budgets are Sexy

Dear Debt

Eventual Millionaire

Financial Samurai

The Frugal Gene

Frugal Rules

Get Rich Slowly

Million Dollar Journey

Money Under 30

My Wife Quit Her Job

Planting Money Seeds

PT Money

Retire by 40

Stefanie O’Connell

And I hate to burst your bubble, but it turns out there really isn’t a secret to building a net worth of a million dollars! The advice is basic – invest early, educate yourself, grow the gap between income and spending, plan and track, and change your mentality. Sounds simple enough, right?

After sifting through all the great advice, there’s a common theme. Most of our contributors started their blogs to detail their own personal struggles with money. They found success, and in many cases, financial independence, after changing their mentality. Stefanie O’Connell turned her life around when she stopped focusing on what she couldn’t do and built a business based on the things she could do. Paula Pant from Afford Anything spent too many years “thinking small,” clipping coupons when she should have been focused on building her income. What drives a change in mental perspective? It’s a greater

purpose, a personal mission statement – something mentioned by both J.D. Roth of Get Rich Slowly and Miranda at Planting Money Seeds.

What’s the biggest financial MISTAKE you ever made?

I really enjoyed reading about the financial mistakes of our 15 bloggers! It’s a good reminder that everyone makes mistakes on their journey to financial freedom. The most common mistakes mentioned were:

• Buying stuff because it was cool • Buying a house at the peak of the real estate market • Selecting an expensive college or picking the wrong field of study

A taste for credit cards was the curse for many of our bloggers. For example, J.D. Roth and John from Frugal Rules developed credit card habits while in college and spent years “mired in debt.” Jaime from Eventual Millionaire and Miranda from Planting Money Seeds struggled with debt after buying too many things because they were “cool.”

Buying a house used to be a sure bet … until the housing market imploded. “Timing is everything” has special meaning for a several bloggers. J. Money from Budgets are Sexy bought a house at the peak of the market, with no money down and “completely on a whim.” Sam, aka Financial Samurai, bought a Lake Tahoe vacation property right before the real estate market bombed. Financial mistake? Yes, but it didn’t feel like it at the time!

Another mistake mentioned by some bloggers was their choice of college or field of study. Yoni (Money Under 30) hasn’t gotten a lot of mileage from his degree in social psychology, and Frugal Gene regrets attending an expensive private university. But I had to chuckle as I thought of my PhD in sociology – not exactly a lucrative field. And 20 years ago, I would have told you it was my biggest financial mistake too. Today I can say it has led to an amazing career and respectable salary. Sometimes, big mistakes turn into wise choices.

Does money buy happiness?

This is the question I didn’t ask, but wish I had! I am well on my journey to financial independence, but I still struggle with creating a healthy balance in my life. I was struck by Joe’s (Retire by 40) comments that retiring early was his worst financial decision, but it was the right decision for him. He offers a pleasant reminder: “Money isn’t everything.” Similarly, J.D. Roth listed his favorite post as How to Be Happy and Lead a Meaningful Life. History proves that money doesn’t buy happiness, but it’s HOW you spend the money that makes all the difference in the world. Spend it on yourself and you won’t be nearly as happy as if you spend it on others.

J.D. ROTH, GET RICH SLOWLY

Website: GetRichSlowly

What’s the BEST action someone can take to build a net worth of $1,000,000?

ALL of personal finance comes down to one fundamental action: Spend less than you earn. People hate hearing that. They want the answer to be more complicated but it's not. If there's a secret, it's this: The wider your gap between your earning and spending, the quicker you'll achieve your financial goals. So, the best action a person can take to build a million-dollar net worth is the same "best action" they should take for achieving ANY financial goal: Supercharge your saving rate. Do everything in your power to increase the gap between your earning and spending.

The best way to lower expenses is to focus on the big stuff, such as your home and your car. These two expenses alone make up half the average American budget. (This isn't speculation. It's what the stats show.) If you focus on lowering only these two expenses, you'll do more to help yourself than all the fussing you'd ever do with clipping coupons and haggling for lower utility bills. At the same time, do whatever you can to earn more: switch jobs, ask for a raise, start a side hustle. By reducing your expenses while increasing your income, you'll begin saving big bucks. Aim to save half your income. Sounds tough, I know, but if you can do this, you too can build a net worth of a million bucks.

What’s the biggest financial MISTAKE you ever made?

I've made so many financial mistakes that it's tough to choose just one. Looking back, though, I really regret having developed a credit card habit while I was in college. It started with me trying to spend to keep up with my classmates, who were wealthier than I was. It evolved into my using credit cards to buy all sorts of things that I didn't need. At my lowest, I had over $25,000 in credit card debt. For seventeen years, I was mired in debt, and it felt terrible.

What is your all-time most FAVORITE post?

I've written thousands of articles so it's tough to choose just one. Ultimately, though, I think my best piece is only tangentially related to personal finance. It's this long article about How to be Happy and Lead a Meaningful Life (this currently lives at Money Boss, but soon will move to Get Rich Slowly). But for those just starting out, I have an article about finding purpose—a step that many money bloggers skip—and that's too bad. The article is What's your Why? How to Craft a Personal Mission Statement, and that’s a key part of achieving financial success (and success in other areas of life).

Jaime Masters, Eventual Millionaire

Website: EventualMillionaire

What’s the BEST action someone can take to build a net worth of $1,000,000?

START tracking your net worth every month—the awareness of looking at it and tracking (whether it goes down or up!) helps you stay accountable and on track for your goals.

What’s the biggest financial MISTAKE you ever made?

Which one! I have bought way too many things brand new because they were "cool." At 22 years old I was $70,000 in debt and had a $250,000 mortgaged house and a brand new car. The lesson learned was that I could not control my life choices until I had a handle on my personal finances. (I was stuck in a job I hated because of all that stuff!)

What is your all-time most FAVORITE post?

One of my favorites—short and simple: What is True Wealth?

I HAVE BOUGHT WAY TOO MANY THINGS

BRAND NEW BECAUSE THEY WERE "COOL."

J. Money, Budgets are Sexy

Website: BudgetsareSexy

What’s the BEST action someone can take to build a net worth of $1,000,000?

I'm a slow and steady type of guy, so for me it's all about maxing out those retirement accounts every year and taking advantage of all the compound earnings (as well as the tax benefits). So I personally max out both my SEP IRA (like a 401(k) for self-employed people) as well as my Roth IRA, and know that so long as I do those two things no matter what, my money will be just fine over time :) And of course it’s all invested in low-cost Vanguard index funds.

What’s the biggest financial MISTAKE you ever made?

Buying a house at the peak of the market, with no money down and completely on a whim. Everyone I knew was buying their first houses and I thought it was just something you "should do," without really asking myself if it was something I truly *wanted*. Fortunately, we were able to afford it and it forced me to pay attention to my money more (and start my blog and completely change my life!). However, never again will I do things just because everyone else is. Home ownership is no joke, and there's nothing at all wrong with renting if it better fits your lifestyle (or wallet).

What is your all-time most FAVORITE post?

Hard one! I'd say our all-time most popular series are probably our Net Worth Updates, but as far as favorite articles, I wouldn't know where to begin as we've published over 2,000 of them over the past 10 years. Recently however, here is one I really liked and thought was super helpful for people—especially those who are "stuck" and just needing a little push: $20 Does the Trick!

Yoni Dayan, Money Under 30

Website: MoneyUnder30

What’s the BEST action someone can take to build a net worth of $1,000,000?

I could give you some investing advice here. Buy this ETF or that cryptocurrency. Try 100% stocks or 100% bonds. Mutual funds or robo-advisors. There's no end to the number of specific strategies people could take that might (MIGHT) lead to big savings. But the most effective way of building up your net worth doesn't involve a specific winning strategy, but a simple change in mentality. People need to incorporate their long-term savings plans into their day-to-day decision making.

Everything you do, every dollar you spend, comes at a cost to your future self. It's very easy to lose sight of this because the costs of savings are immediate, while the benefits are abstract and long-term. So when you're thinking about little purchases, like how much to spend at the restaurant on Saturday night, or big items like whether or not to rent the renovated and furnished apartment uptown that's a bit over your budget, pause and consider your future self. Do him (or her) a favor. Because these decisions will add up.

What’s the biggest financial MISTAKE you ever made?

Like many people my age, I made a big mistake in selecting my field of study at university. My dad really encouraged me to study law or accounting or medicine, but I decided to follow my heart and pursue a bachelor's degree in social psychology. Of course, years later I'm still paying for that decision, quite literally, both in the form of the remainder of my student loans, and in the constant stream of "I told you so's" my dad feels compelled to throw my way whenever he gets a chance. Just last Tuesday he mentioned again that "it's

EVERYTHING YOU DO, EVERY DOLLAR YOU

SPEND, COMES AT A COST TO YOUR FUTURE SELF.

not too late to become a doctor." I just turned 30 and haven't studied hard sciences since high school.

Picking a field of study is a major decision, perhaps the first one we make as adults. Without getting into the whole "spoiled millennial" trope, I want to say that it's so so important to be practical with what you study. I ended up going back to school later in life to pursue and MBA, and although I didn't love it, it's certainly helped further my career much more than my undergraduate did. Still not a doctor though…

What is your all-time most FAVORITE post?

My favorite post on MU30 is David Weliver's personal story of how he got out of debt. David's been a personal inspiration for me, and I'm so happy to be getting a chance to work with and learn from him. The article itself details the steps he took to pay off $80,000 of debt in just 3 years. There's a lot to learn there, both in terms of specific strategies, but also in terms of the mentality that's required to lead a financially healthy life.

Melanie Lockert, Dear Debt

Website: DearDebt

What’s the BEST action someone can take to build a net worth of $1,000,000?

The best action someone can take to build a million dollars is to invest early and invest often. Stay in the long game and watch your cash grow!

What’s the biggest financial MISTAKE you ever made?

I've made so many mistakes! I didn't ever negotiate until I became self-employed. I paid the minimum on my debt when I could have afforded more. I depleted my emergency fund to pay off the last of my debt, which bit me in the butt later on.

What is your all-time most FAVORITE post?

My favorite post is my debt-free declaration post:)

F. T., Million

Dollar Journey

Website: MillionDollarJourney

What’s the BEST action someone can take to build a net worth of $1,000,000?

From my experience, anyone can build a significant net worth if they plan accordingly. My spouse and I are just regular salaried employees (my wife has recently left the workforce), and we managed to get to the million-dollar net worth milestone before we turned 35. How did we do it? We followed these five steps: (1) Set a goal; (2) Track your Progress; (3) Cashflow (Saving) is King; (4) Pay off Debt; and (5) Invest for the Long-Term.

What’s the biggest financial MISTAKE you ever made?

For one reason or another, I have a mental block when it comes to deploying ALL of my capital into the stock market. In other words, I have a tendency to hoard cash. I have been getting better over the years, but it has been a pricey mistake during this bull market.

What is your all-time most FAVORITE post?

My favorite and perhaps my most popular post is my Financial Freedom 101 article. It goes into detail the five steps above on building a significant net worth that ultimately leads toward financial freedom.

Miranda Marquit, Planting Money Seeds

Website: PlantingMoneySeeds.

What’s the BEST action someone can take to build a net worth of $1,000,000?

Figure out WHY you want that net worth. You'll never stick to any plan—whether it involves earning more, spending less, or doing both—long-term if you don't know why you're doing it. Get clear about what matters to you and why you want it. That way, when things are tough, and you want to quit, you'll remember your reasons and values and have a better chance of pushing through and doing what you know you should. What’s the biggest financial MISTAKE you ever made?

Honestly, it was probably all the money I spent on things I didn't really care about. Before I figured out my values and priorities, I just spent a lot uselessly. If I could have all that money back—and invested—I'd be so much closer to $1 million right now. What is your all-time most FAVORITE post?

Actually, my favorite post is one that I wrote recently: Will Lattes and Avocado Toast Really Destroy Your Financial Future? It's a look at how I figure out what's worth spending on, and how I prepare for the life I want to live.

GET CLEAR ABOUT WHAT MATTERS TO

YOU AND WHY YOU WANT IT.

The Frugal Gene

Website: TheFrugalGene

What’s the BEST action someone can take to build a net worth of $1,000,000?

Invest in yourself. Invest in an affordable, in demand, practical education and get that cushy career in the bag. Now excel at that career and make your rounds saving. You don't have to go crazy and compare saving rates. Anything above 30% is good. Do your due diligence and peck away at those retirement accounts. In less than half a lifetime, that's going to be the most effortless $1 million you will make.

What’s the biggest financial MISTAKE you ever made?

Pretty much the opposite of my own advice above! That's why I know the advice I gave above is good. I'm still regretting my undergrad decision to attend an expensive private school. I also regret my field of study. I was too young to think I knew what I wanted to do for the rest of my life. College was a time and money waster for me. But my silver lining is to remember I also have a lifetime to fix that mistake.

What is your all-time most FAVORITE post?

Here’s my favorite post, which correlates to the first answer. Some people do it right and have all the luck.

John, Frugal Rules

Website: FrugalRules

What’s the BEST action someone can take to build a net worth of $1,000,000? One of the best ways to build a net worth of $1,000,000+ is read. Yes, things like paying yourself first and watching what you spend are very important, but reading tops the list in my opinion. If you look at most surveys of self-made millionaires they often list regular reading as the top thing they did to reach that status. Reading does two things—grow and learn. You can read anything from biographies of individuals you admire to books about growing your career and, of course, finance. Reading on a regular basis not only makes you more well-rounded, it also helps you learn from those who are successful—giving you insights to what you can do to do the same.

What’s the biggest financial MISTAKE you ever made? I've made more than my share of financial mistakes though I think the biggest one I ever made was in college. I discovered credit cards while in college and graduated with $25,000 in credit card debt. I also misused student loans, totaling another $25,000 in debt—and this was 20 years ago! I used both to finance a life I wanted but could not afford. I didn't view money as a tool to get what I wanted in life, but as something to simply buy stuff. That stuff didn't make me happy in the long-run as I was addicted to the feeling of buying something new. It took me five years to pay off the $50,000 in total and I vowed then to never be in the same situation again.

ONE OF THE BEST WAYS TO BUILD A NET WORTH OF

$1,000,000+ IS READ.

What is your all-time most FAVORITE post? This is one my favorite posts on Frugal Rules. It was the result of a conversation I had with a contractor, where he opened up to me about his finances. He was convinced he and his family could do nothing to improve their finances even though the issue was staring right at them. I like the post because it shows us that one simple change can do a lot of big things for your money.

Joe, Retire by 40

Website: RetireBy40

What’s the BEST action someone can take to build a net worth of $1,000,000?

Grow the Gap. The Gap is the difference between what you make and what you spend. You’ll never get anywhere if the Gap is negative or too small. Invest the money and you’ll be on the way to $1,000,000.

What’s the biggest financial MISTAKE you ever made?

Retiring early is definitely my worst financial decision. I was making good income and I could have earned a lot more if I continued to work. There is no question we would have been better off financially. We could have saved and invested all of my income and given a big boost to our net worth. However, money isn’t the only consideration in life.

Retiring early wasn’t a good financial decision, but it was the right decision for our family. My old job was taking a big toll on my physical and mental health. Who knows what would happen if I continued working and becoming more miserable? Life is much better now for our family after 5 years of early retirement. I’m making much less income as a SAHD/blogger, but we are much happier. Money isn’t everything.

What is your all-time most FAVORITE post?

Why I Gave Up My Engineering Career

Stefani O’Connell

Website: StefanieO’Connell.

What’s the BEST action someone can take to build a net worth of $1,000,000? It might sound obvious, but increasing your income is one of the best things you can do in service of your net worth. Yes, you need to learn to live within your means so that you have money to save, invest and grow, but if you don’t have enough money flowing in, you’re not going to have enough money to set aside for the investments and growth that’s necessary to hit the million-dollar mark. So ask for a raise, cultivate a side hustle, and improve your skill set so that you can command a higher salary.

Cutting back on your expenses is inherently limiting, you can only save so much. But your capacity to earn more is unlimited. So consider putting more of your energy into the earnings side of your wealth building equation.

What’s the biggest financial MISTAKE you ever made? I spent far too much of my 20s underearning. I thought I was limited by my lack of experience, my lack of skills, and my seemingly irrelevant degrees in psychology and acting. But I’ve come to find that all that time I was focused on what I couldn’t do was really just time that I was overlooking what I did have to offer – skills, value and knowledge that have helped me build a successful business and an income that allows me to save and invest meaningfully.

What is your all-time most FAVORITE post? I can’t pick a favorite, so I’ll have to settle for the most recent: The Myth of the 10% Savings Rate.

Steve, My Wife Quit Her Job

Website: FinancialSamurai

What’s the BEST action someone can take to build a net worth of $1,000,000? Getting on the investing bus as soon as possible. The general trend for stocks, bonds, and real estate is up and to the right. Combine aggressive savings with a risk-appropriate investment portfolio through your 401(k), IRA, and after-tax investment account is something everyone can do. But if you want to really hit it out of the ball park, building a business where you own all or a majority of the equity is where you can truly get rich. The internet has made this easier than ever before.

What’s the biggest financial MISTAKE you ever made? The biggest financial mistake I made was buying a Lake Tahoe vacation property in 2007, right before economic armageddon. I bought the property for $710,000 and thought I got a deal because the seller had bought the property for $810,000. But the property proceeded to plunge in value by 40% during the depths of the crisis! The mistake was believing my income at the time would keep going up or at least stay level. I was 29 years old and thought I was on a great career path that couldn't be rocked.

I still own the property today (no welching!) and the price has recovered. The value of the property is less than 5% of my net worth now so it doesn't really matter. However, as a new father I'm looking forward to taking my baby boy up there when he's old enough to walk and run! I buy property for lifestyle first, income second, and appreciation third.

What is your all-time most FAVORITE post? Here is a pertinent post that is quite popular: The First Million Is The Easiest.

GET ON THE INVESTING BUS AS SOON AS POSSIBLE.

PT, PT Money

Website: PTMoney

What’s the BEST action someone can take to build a net worth of $1,000,000? The best thing you can do for your net worth is to invest a large percentage of your income (>25%), automatically each month into low-cost index funds, and start ASAP. If you have any consumer debt, pay it off and don't create anymore. To fast track your efforts, start a business or invest in rental real estate in addition to your investing.

What’s the biggest financial MISTAKE you ever made? My biggest financial mistake was not starting to save a large percentage of my income early on. I waited until I was almost 30 to really get serious. If I had started aggressively in my early 20s I would likely already be well beyond a financially independent state.

What is your all-time most FAVORITE post? My favorite post chronicles the savings/investing effort of my 30s: How to Save 20% of Your Income (Consistently) Each Year in Your 30s.

Paula Pant, Afford Anything

Website: AffordAnything

What’s the BEST action someone can take to build a net worth of $1,000,000?

Increase the 'gap' between your income and spending. Ignore the debate about "earn more vs. spend less" and instead cut to the heart of the matter: growing the gap between those two numbers in the most optimal way possible. Then invest that gap into income-producing assets like index funds and rental properties.

What’s the biggest financial MISTAKE you ever made?

Thinking too small. I spent many years so focused on clipping coupons and selling $5 items on Craigslist that I overlooked my ability to start a business and boost my earnings. When I used to earn $31,000 per year, boosting my savings rate by an additional $100 per month had a limited upside. But when I focused on earning more by starting a business and investing, everything changed.

What is your all-time most FAVORITE post?

The 12 Essential Lessons You Must Learn About Money & Life.

BUT WHEN I FOCUSED ON EARNING MORE BY STARTING A BUSINESS AND INVESTING, EVERYTHING CHANGED.

BONUS INTERVIEW

Brenda K. Uekert, PhD The Five Journeys

Below is an interview that I conducted for Fred at Money with a Purpose. I hope you enjoy it!

Tell us a little about yourself

I’m a single mom with a PhD. I had a fabulous career and am now an entrepreneur. I’m in my mid-50s; my adult child lives thousands of miles away, which makes me an empty-nester. I am a blogger (www.thefivejourneys.com), and I am creating the Early Exit Academy (www.earlyexitacademy.com) to help people become financially free so that they can leave the traditional workforce early, if they so desire. I live in Virginia, but my roots are in the Midwest; I grew up on the family dairy farm in central Wisconsin.

Tell us a little bit about your career path.

I have a doctoral degree in sociology from Syracuse University. I wrote my dissertation while working full-time for the University of California. That job disappeared in the midst of a state budget crisis and it took me more than three years to find another salaried job with benefits.

My first big break came in Atlanta, where I became a Crime Analyst for the police department. This was back in the late 1990s, way before the CSI craze. That led to a wonderful research position in the DC suburbs, where I evaluated the effectiveness of programs carried out under the Violence Against Women Act (VAWA). Several years later, I moved to southern Virginia to work on court reform issues. There I specialized in domestic violence, elder abuse, and adult guardianship matters.

I DID WHATEVER I NEEDED TO DO

TO ENSURE THAT I WOULD NEVER LIVE IN POVERTY

AGAIN.

In April 2018, I was fired after 16+ years of dedicated service. It’s a long story, but I was burned out and could no longer tolerate the dysfunction and toxicity of upper management. Since then, I’ve focused on reinventing myself and building the Early Exit Academy.

When we talked about doing the interview, you said you knew quite a bit about adversity. And I completely agree! Walk us through some of that.

Timing is everything, and I entered an academic market at exactly the wrong time. When I was 30, I earned my doctoral degree, got laid off from the University of California, and moved to Arizona. I tried my hand at creating a small business – it didn’t work.

From there, I moved back to my home state of Wisconsin and picked up an adjunct faculty position at a University. Basically, I received a small wage for teaching college courses—no health insurance and no benefits. The adjunct position turned into a dead end, so I moved to the Atlanta area, where my sister lived and offered a free couch.

By then, everything I owned fit into my little Honda hatchback. And once in Atlanta, I had a difficult time finding work. Eventually, I lived “underground,” paying cash to sleep in a cockroach-infested basement apartment each night. It’s hard to explain the desperation and despair during those days. I was applying for jobs and leaving off the PhD, because the degree made me “overqualified” for too many jobs. I grabbed whatever work I could find, even a $6/hour job at Target.

Truthfully, I was simply surviving. One of my lowest moments came when my trusty Honda started to fail. The A/C stopped working, but the heat worked just fine – what a great way to spend a summer in Atlanta! And then things got worse—the car could barely top 45 mph, which made for a white-knuckled drive on the freeway. And the first mechanic I took it to wanted cash to fix it. What cash? I remember pulling into a parking lot and just crying. How was it possible that my life was so screwed up? I racked up credit card and personal

debt during this time. And I had no health insurance. No retirement. No savings. I lived in absolute poverty and wondered if I’d wasted all those years getting an education.

Recently, I looked at my social security earnings history. And there were my earnings from 1995, the depths of my horrid life. That was the year I turned 32. I earned $3,317. While money can’t buy happiness, poverty only buys despair. Some days, all you can do is decide to wake up and live another day. Back then, too many days were spent simply surviving.

Wow! You’re right! You’ve endured a lot over the years. What was the key for your getting through it?

It may sound strange, but I wrote about this in one of my blog posts - How a Fictional Character Saved my Life. I created an alter-ego. Someone who was smart, passionate, and had her life together. I outlined a series of mysteries featuring my bad-ass character, and by doing so, I found an escape from the cockroaches and gloom, if only for a short time. That’s what kept me going. While I’ve never done anything with those outlines and drafts, my fictional character saw me through some dark days.

The odd thing was that my love of a good mystery fed into my excitement over a job posting for a position as Crime Analyst. I downplayed my PhD to get the job. And that job opened the door to an amazing career. I would not be where I am today had I not endured those years of poverty and taken the risk of relocating to find better opportunities.

The financial consequences had to be significant. How did you overcome that? What, if anything, did you change about your finances as a result?

Absolute poverty. That’s where I was in my early 30s. I owned nothing other than debt, and that was probably over $20,000 at the time. When I caught my break in Atlanta, I moved into my very own one-bedroom apartment. It was an enormous step up from the cockroach basement. The first thing I bought was a

new bed, and I remember the sheer joy of lying on my luxurious mattress. But I held off on buying other things. I used a lawn chair for furniture and didn’t bother buying a television for quite some time. To help pay off debt, I signed up for a credit card debt management service, which worked extremely well for me. I diverted most of my income toward the debt, so by the time I made my move to northern Virginia a year later, I had paid off most of my debt.

Once in Virginia, I began to earn a decent salary. I’ve always had to rely on myself—I never had a partner who could provide a second income and there’s no inheritance coming my way. For the most part, I treated my paycheck as if it had to support two people. My goal was to put half of my take-home pay into retirement, savings, and investments. I did whatever I needed to do to ensure that I would never live in poverty again.

While I was living frugally, I didn’t get interested in personal finances until I reached age 40, when I realized I had reached $100,000 in my retirement funds. That seemed like an awful lot of money, but I didn’t have any plans written down on paper. Then I discovered David Bach’s Smart Women Finish Rich book. David talks about a dream fund, and I just about lost my mind – I’d never heard of a dream fund. I grew up working class, so we focused on savings and retirement. A dream fund? Wow! What a concept. That really sparked my imagination and I wondered what life might be like if I didn’t have to rely on a paycheck. That’s what really pushed me toward Excel spreadsheets, net worth calculations, and money geekdom!

What encouragement would you offer to anyone who might be dealing with job loss or business failure?

I had always worked hard and produced high-quality products. And I had expected the PhD to open doors for me. I learned the hard way that jobs can disappear in an instant, and the next “best thing” might never drop in your lap. In hindsight, here are my suggestions for those dealing with a job loss or business failure.

1. Don’t stop at Plan B. I have to admit, I didn’t even have a Plan B when I was downsized from my job at age 30. I had Plan A—get a tenure-track faculty position. That was it! I couldn’t imagine that Plan A would fail. I was naïve. Not only should I have written down a Plan B, but I needed a Plan C, D, E, and F. Had I truly considered a worst-case scenario, perhaps I would have saved myself the troubles that lay ahead?

2. Network, network, network. I believed in the meritocracy—my education and the quality of my work would be sufficient to land me a great position. While I eventually created a wonderful career, my lack of networking really hurt my chances. And at this point in my life, I’ve witnessed many people receiving cushy jobs based on who they know, rather than what they know. It’s not a fair playing field. So build connections and then call on them when you need a helping hand.

3. Surround yourself with positive people. If you’ve lost a job or your business failed, you already have enough self-doubts and worries that you just don’t need constant reminders of your shortcomings. Sometimes you might have to distance yourself from close friends and family members who provide little more than criticism. Build a community of supportive, energetic, happy people who can encourage you as you rebuild your life.

4. Save until it hurts! Losing my job in my 50s was a whole lot easier than when I was in my 30s for one simple reason—I had built enough financial freedom to have choices. I bought time and I bought opportunity. My savings and investments outside of my retirement account allowed me to invest in a new enterprise and to build a new identity. When times are good, save as much money as you can—preferably, at least one year of expenses in a non-retirement account. And then if your job disappears for whatever reason, you might find yourself walking out the door with a smile on your face!

One final word: When you return to your great successful self, stay humble.

GOOD

READS

30-Day Million Dollar Challenge (Kindle)

The Automatic Millionaire

The Total Money Makeover

I Will Teach You to Be Rich

Dear Debt

Think and Grow Rich

The Recovering Spender

The Year of Less

Meet the Frugalwoods

You are a Badass at Making Money

Why Didn’t They Teach me This in School

The $100 Start-Up

Your Money or Your Life

How to Retire Happy, Wild, and Free

Your Playbook for Tough Times

The Snowball: Warren Buffet and the Business of Life