Soldier of Finance (4 page)

You too have a choice. You don't have to join the military to change your life, but the analogy of being in the Army might help you determine the choices you need to make. The obstacles that stand in the way of success are enemies to your future. To overcome them, follow the approach a soldier takes when he goes into combat:

• Learn discipline.
  
• Train yourself to deal with the financial situations you will face.
  
• Plan a campaign to systematically learn how finances work and then implement those lessons to achieve your goals.
  

Soldiers of Finance are people who commit to whatever it takes to change the direction of their lives and overcome whatever is preventing success, thus building security for themselves and their families. If any of those goals describe
you
, then
you
are a perfect candidate to become a Soldier of Finance.

A Soldier of Finance has to always be alert and recognize that the enemy could be all around at any time. If the enemy is engaged in a full-fledged assault, you may have to take drastic measures. At the age of 25, Adam Baker found himself on what he called the “typical American life path.” He was—in his words—
“doing just fine.
” He had a start-up real estate business and a girlfriend who was finishing college to become a teacher. She also was
“doing just fine.
” Adam tells their story:

“Now, years later, I understand the ‘just fine' was code for ‘I haven't missed a payment.' We had each found a way to juggle our ever-increasing monthly payments on our limited incomes. For us, that was just fine.

The 18 months that followed were…interesting. Courtney accepted my proposal; we married within the year, and pregnancy came knocking a few months after the wedding.

Dazed, married, and pregnant, we had come down with a hardcore case of house fever, car fever, and just about any other consumerist fever you can imagine.

We had managed to collect two car loans, several credit cards, a line of credit at the jewelry store, a loan from parents, and more than $50,000 in student loans. The total damage was just over $80,000 in non-mortgage debt throughout the various loans. We knew the next step well: buy a house and fill it in with a bunch of crap. And yes, we were looking.

Luckily, a life event jolted our system and made us reevaluate our priorities. A month after celebrating our first anniversary, our daughter Milligan was born. During the pregnancy we began to give our financial situation a closer look, but things didn't really sink in until we brought her home.

Looking back, I guess we were willing to be risky when it was just the two of us. We were willing to bet on our success down the road to pick up the bill of our lifestyle desires now. Fortunately, we realized we weren't willing to wager Milligan's future.

We finally came to terms with how limiting our debt made our lives, how much it weighed on our freedom. We made the decision right then and there to take back control over our life.

At first, we struggled with the basics of budgeting, tracking spending, and curbing our impulses. But we quickly found that the more we simplified our financial life, the more empowered we became.”

 

Are you ready to get started? One of the responsibilities of a sergeant is to check efficiency on basic skills, what we called Warrior Skills or Common Training Tasks, which include everything from evaluating a casualty to performing maintenance on a vehicle. These skills are considered essential for every soldier to be considered combat ready.

The Go/No Go test that follows has been adapted for a Soldier of Finance. Each chapter contains its own Go/No Go evaluation to check your progress. Be honest as you check the appropriate response for each question.

Go / No Go

If you scored more
No Go's
than
Go's
, drop and give me twenty push-ups. That won't actually help your finances, but at least you can stop feeling that you deserve some sort of punishment for being a failure. The truth is, your situation is far from hopeless. So get over that emotion and come back to reality. This is not a test. It is an evaluation that demonstrates what needs the most work. If you acknowledged a problem that you have ignored most of your life, then you have made progress and no punishment is required. You now understand some of the tasks we will address in this book.

• Overcoming financial problems starts with getting to the root of why you are in the position you are in.
  
• There are two reasons people don't make changes: (1) they don't know what to do, or (2) they are intimidated.
  
• To change, you need to understand what is holding you back and, just as important, what would motivate you enough to make a change.
  
• Many people struggle with finances. But it doesn't have to be that way: You have a choice.
  
• A Soldier of Finance is a person who has become committed to the process of financial discipline and training in order to develop a systematic strategy for financial success.
  
• Evaluate the areas of personal finance in which you need to work, but don't get discouraged. The situation is not hopeless.
  

I, Jeff Rose, do solemnly swear that I will support and defend the Constitution of the United States against all enemies, foreign and domestic; that I will bear true faith and allegiance to the same; and that I will obey the orders of the President of the United States and the orders of the officers appointed over me, according to regulations and the Uniform Code of Military Justice. So help me God.

So began my official military career. I took an oath.

A couple of preliminaries occurred before that moment; I arrived at MEPS (Military Entrance Processing Station) and was subjected to a thorough medical exam. I'll come back to that experience later. Essentially, the Army had to be sure it actually wanted me. There were a few papers to sign. And I had to be sure I actually wanted the Army. Once everyone was certain that we wanted each other, I was sworn in. “I, Jeff Rose…”

“It might seem on the surface that this was a frivolous formality. For many people, talk is cheap. It means little in terms of the bigger picture of life. How many times have people said to you, “Let's get together for lunch,” and that's the last you hear from them? Or how often have people carelessly told you they would do something that they never got around to?

This oath felt different. Perhaps it was the formality. Perhaps it was the way the military embraces traditions. From the beginning, the oath of enlistment carried great weight in our thinking. We didn't take it lightly, for a couple of reasons.

First of all, we instinctively knew that the day might come when our lives depended on the faithfulness of our buddies to that oath. From that moment, we were all dedicated to the same purpose—serving our country and supporting each other in the process. The implications of commitment were clear and hung over us like a banner.

Second, there's something powerful that happens when you state your commitment clearly, out loud, in front of witnesses. No longer an idea for the future or something you will do one day, the oath becomes a definitive starting point from which you can measure your progress and your success. Your personal honor is engaged and quitting is no longer an easy option. The oath gives you a clean point of transition. Life is about to change.

Becoming a Soldier of Finance requires a similar moment of commitment. You are about to change your life. The financial habits that have caused you difficulty in the past need to change. You are about to embark on a training regimen that will give you the skills and knowledge to replace your old way of handling money to something far more stable and successful.

I encourage you to take this step seriously. Do not just read over it, believing that mental agreement with what you read is enough. Make it formal and make it real. Raise your right hand and read the Soldier of Finance Oath out loud. No one will come after you if you default, other than possibly the IRS and a few credit card companies, but hearing the words come out of your own mouth will help close the door to going back. New training is about to begin and procrastination is no longer acceptable. This oath gives you a clear starting point.

Ask yourself a simple question:
“Am I serious about gaining control of my financial life?
” If the answer is yes, then the time for commitment is now. Raise your hand and repeat after me:

I (NAME) do solemnly swear that I will support and defend the principles of the
Soldier of Finance
survival guide; that I will bear true faith and allegiance to the same; and that I will obey the orders of
Soldier of Finance
and the directives presented in the Soldier of Finance doctrine. So help me God.

In the
Soldier's Handbook
, the Oath of Enlistment is followed by the Soldier's Creed. I found it useful to refer to it from time to time as a reminder of the commitment I had made. The Creed reminded me of things like, “I am an American Soldier,” and “I will never quit.” It reiterated my training with declarations like, “I am disciplined, physically and mentally tough, trained, and proficient,” and “I am an expert and I am a professional.”

As a Soldier of Finance, you also have a Creed to help you stay on course, a reminder of why you are learning the lessons of this book. It is a statement of personal values and of your mission in life.

SOLDIER OF FINANCE CREED

I am a Soldier of Finance.

I respect, but do not worship, money.

I control my finances, they do not control me.

I plan my money mission carefully and execute that mission.

Turning my back on fads and status, I focus on what is important.

I am honest, fair, and prepared.

I am ready for future events, both planned and unexpected.

I stand ready to learn, earn, invest, and share.

I am a Soldier of Finance.

We recited the Soldier's Creed as part of the initial ceremony, and then we stepped into training to begin living it. That made it official. We didn't yet possess the skills needed to be
good
soldiers—that would take a little time—but we nevertheless were soldiers. Likewise, you are now officially a Soldier of Finance. Time to train.

There is a logic to Basic Training that isn't always obvious until you look back. When a drill sergeant was screaming obscenities in my face and ordering me to do push-ups, I got the distinct feeling that he wanted nothing more than to break me down and destroy me. It was during those times that I asked myself, “Why am I here?”

Looking back, I realize that before they ever started yelling, they provided everything we would need to survive the training and come out strong and prepared. The Soldier's Creed answered the question, “Why?” We were there to serve our nation.

An intellectual understanding, however, is not much motivation when you're under pressure. I can guarantee you, I never once thought about the president while the drill sergeant yelled. My drive to perform to the best of my ability came from a desire not to let the buddies in my unit down. If I screwed up, it reflected on them, and I did everything I could to keep that from happening.

Throughout history, memoirs from soldiers everywhere indicate that they never fought for the abstract notion of the motherland. Soldiers fight for each other. Combat forges an immediate and tangible bond between them. They are family. They learn to trust each other, depend on each other, and watch each other's back.

I believe the most important thing the drill instructors did in Basic was push us into supporting each other. One of the first things they did was introduce us to our Battle Buddies. Everyone was assigned another person with whom to form an intimate friendship. We stood in line in alphabetical order, and our Battle Buddy was the person next to us.

That was the guy you got to know. We were required to learn everything about that person. We had to find out if he had brothers or sisters, where he came from, what he did in his childhood, where he went to school, his likes and dislikes.

To impress how important Battle Buddies were, we were subjected to spontaneous quizzes. At any moment, day or night, a drill sergeant could walk up and throw a question at you. “Private Rose, what is your Battle Buddy's father's name?” You had to know the answer. If you didn't, you did push-ups or you got smoked. They knew that mutual support would be absolutely vital when we got into combat. Your Battle Buddy was the person you knew you could absolutely lean on and confide in when you needed it most.

When I went to Iraq, my unit was filled with Battle Buddies. These were the guys I knew would have my back if something happened. If I were injured, they would come and get me. If they were injured, I would come for them. If I needed help, they would be there. If they needed help, I would be there for them. And I knew that if I needed a good butt-kicking, they would do it.

As you step into the shoes of a Soldier of Finance, you will need a Battle Buddy. Let's be brutally honest from the start: The mission you are preparing for will not be easy. Your financial situation is the result of a lifetime of thinking and acting a certain way. Change doesn't just happen. It takes time and effort. You will be faced with obstacles and challenges that you have never wanted to put yourself through.

And you can't do it on your own, no matter how tough you think you are. If you could, you wouldn't be reading this book right now. You will need a support system to back you up.

A Battle Buddy isn't necessarily your best friend. He might be, but more important, he must be someone who will always be honest with you, even if it's unpleasant.

In the military, my Battle Buddies were the guys in my squad. As a Soldier of Finance, my number one Battle Buddy is my wife. She has been the one person I have always been able to confide in, who knows me better than anyone. She understands my goals and what I want to accomplish. She is there to encourage me, to pick me up on days when I'm frustrated or upset, and she's there to cheer me on.

My wife knows my weaknesses and what I need to work on. I've always been more of a spender than a saver. “Frugal” was not a word in my vocabulary through most of my life. My wife, as a good Battle Buddy, keeps me in check.

Of course, being a good Battle Buddy means commitment on my part, too. I know her goals and dreams and I'm there to support them. Naturally, we share goals and we work together to achieve them. When I went overseas, we set a goal of paying off some debt we had acquired, specifically laser eye surgery and her engagement ring. We also committed to building up our savings to $5,000. By communicating those goals and working together, we pushed and encouraged each other, ultimately achieving what we set out to do. I recall that many of our phone conversations during my time in Iraq involved discussing the progress toward our goals, and our excitement when we saw the progress we made. I doubt either one of us could have achieved anywhere near as much on our own. I know I couldn't.

Your Battle Buddy can be a friend, spouse, close family member, or even your financial advisor. The most important thing is honesty. The concept of a Battle Buddy will occur frequently throughout this book. Your Battle Buddy is your cheerleader, your accountability partner, and your conscience.

Before you get too far into the Soldier of Finance training, make sure your support system is in place. If you know anyone who may make a good Battle Buddy, now is a good time to broach the topic with him or her. It's not weakness to acknowledge that you need help. Find a Battle Buddy today and take charge of your life.

Not everyone makes a good Battle Buddy. Because so much trust is involved, you have to be sure the person you choose is trustworthy. And you have to be trustworthy yourself.

We had a term in the military for a soldier who was not a good Battle Buddy. He was a “Blue Falcon.”

That rather odd name is an attempt to clean up a much more graphic term. The initials for Blue Falcon, “BF,” were originally the first letters of a term I'll refrain from printing here. Let's just say that the “B” stood for “Buddy” and the “F” stood for a classic word of profanity. A BF was someone who screwed his buddies. We just called them Blue Falcons.

To illustrate how this looked in Basic Training, the drill sergeants played a lot of mental games with us. For example, we were often required to stand in formation for as long as thirty or forty minutes at a time. Typically we would be at parade rest or at full attention, with our hands at our sides, heels together, and eyes straight ahead.

Thirty minutes might not seem like a long time, but when you can't even flinch, you start to notice nagging little itches and muscle pains. With drill sergeants lurking behind, an itch can become a torment. Anyone who got caught in the slightest movement brought down the wrath of the drill sergeant immediately, but not just on the person who moved. The entire platoon paid the price, usually by assuming what we euphemistically called the “front-leaning rest position.” That meant push-ups, and lots of them.

We could get smoked for a wide variety of infractions. If someone showed up in formation without the proper gear, everyone paid. If someone didn't have his
Soldier's Handbook
in his cargo pocket, everyone paid. If someone didn't have enough water in his canteen, everyone paid. Blue Falcons were those soldiers who got in trouble and everyone paid the price.

It is important that you be aware of Blue Falcons in your life. Choose a Blue Falcon as a Battle Buddy, and you are liable to get screwed.

Understand that the Blue Falcons you are most likely to encounter are not people who want bad things to happen to you. They don't usually think they are doing anything wrong. Often they are your family members, and that often makes it very hard to deal with them.

I loved my dad, but he was a Blue Falcon at times. He not only had bad financial habits himself, but he recommended things to me that would have caused similar problems if I listened to him. Observing how he used his credit cards, for example, I saw that he was constantly in debt and struggling to keep up with the payments. But that didn't mean he recognized his problem. He filed for bankruptcy twice. One time he borrowed $8,000 from me to help pay off some of his debt, and when he realized he wouldn't be able to pay me back, he took out a life insurance policy for that amount with me as the beneficiary.