Our Declaration of Financial Independence

  1. We will spend less than we earn. Saving a little out of every dollar we bring home is the foundation of independence. Without it, we can't build equity in our home, we can't invest for the future, and we can't be ready for challenging times. We promise to pay ourselves first, always.
  2. We will use our home as a savings account. Besides shelter and comfort for our family, the role of a house in our financial life is to build equity. We will have a healthy down payment when we buy. We'll choose the mortgage that lets us pay down the principal fastest. And then we'll leave that equity safe where it is instead of spending it on things that don't last.
  3. We will take care of our money. It's not enough to have money in a bank. We will put it where it will grow. We'll keep track of it. And we'll check every account we have every year to protect ourselves against fraud or escheatment.
  4. We will defend our credit worthiness. Good credit is going to be precious in the years to come. We will pay our bills on time. We'll borrow only when we need to and in amounts we can comfortably pay back. And then we'll do just that.
  5. We will actively manage our debt and avoid living beyond our means. We will buy only what we can afford and only splurge on things we truly love.
  6. We will know the cost of borrowing. The interest lenders charge us is real money, too. When we buy a mortgage or finance a purchase, we'll figure out what that interest is really going to cost in dollars, add it to the purchase price, and ask ourselves if it's still worth it.
  7. We will invest for the long term. Futures are built out of patience and prudence, not luck. We will not put off being a saver because we think there's a lottery win in our future, in Vegas or on Wall Street.
  8. We will take care of the things we have. We work hard for our money, and it's disrespectful to waste it - or the planet - by treating our possessions as disposable.
  9. We will remember what matters. We are not the things we own. If we have to spend and spend on bigger, more impressive things to keep up with our friends, then they are not our friends at all.
  10. We will be heard. Our representatives in government and the corporations we deal with need to know that we are paying attention. If we're silent, we're accepting the status quo, and the business practices that got our country into this situation will continue. We are not going to accept that.
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  • Diane H.

    We are a retired couple now and living comfortably. In our early 30′s my husband was suddenly unemployed. With two young children it was tough. We struggled through it with mortgage payments and a small balance on our credit card for some time but survived. That period of time taught me a lesson about debt for the rest of my years. If you can’t afford to pay off a credit card don’t charge on it. Where is common sense these days with so many people in debt? Too bad ING can’t reach the masses and teach them sound financial principles. If you don’t got it you can’t spend it.

  • http://none Suzanne L. Heywood

    Since I started saving with ING I have taken three trips (2 to St Barts one to Vienna) Helped my neice with some tuition for college, secured lodging for several family members for holiday ceebrations and kept myself in check with credit cards. I am forever grateful and the $25,00 check to start was the ‘zinger,”

  • http://www.thefrugalspot.com Jean

    This Declaration of Financial Independence is a great idea. I hope more people sign the oath and take control of their financial situation and their life!

  • New in Life

    Newly on my own and fresh in life, I made every mistake a new person in life could make. I was in the real world for the first time and in debt. I was beyond embarrassed and felt shameful the day I had to ask my mom to bail me out of the debt I made. She happily helped, kind of. She loaned me the money (interest free) and set me up with a plan. Figuring out how much money I made, what bills I had to pay (rent, electric, phone, etc), how I would pay her back and set me up an allowance that she made me manage. It was $75 a paycheck (every two weeks). I took that $75 in cash and put it in my wallet. When it was gone, I was done shopping. No more groceries, partying, etc. I learned that if I wanted to do something more, I would have to save my “extra” money for that. I learned how to bargin shop. Since that day, 9 years ago, I have put away more then $80,000 and I’m well on my way. I now have a beautiful home in Italy, I have beautiful “things” and a car that I love… Plus I have a retirement fund, mutual funds, and a nice just incase cusion of $80,000. Every parent needs to help their child know what it’s going to be on the outside… gentally… teaching… If they don’t know how to do this, find someone that can.

  • GAIL ANDERSON

    I NEED HELP ON WHAT TO DO WITH 70,000 DOLLARS IN MY CHECKING.

  • Kelly the Loser

    I have to remember not to read these. They remind me of what a loser I am. Renting a house that costs more than I make in a month. All that and I still have to eat. I wish I had the same problem as Gail Anderson. I know what to do with the 70,000 in checking. I could live on it for 4 years or so. I don’t have that much. I will never have that much. Reading these things make me want to do myself in. I can’t sign this. If I did I would have to give things up like food and electricity. I don’t think I can manage.

  • askaboutrudy

    Hi everyone. Another good name for this would be, “The 10 Financial Commandments”, or the 10 Commandments of Financial Success”.

  • askaboutrudy

    I totally copied and pasted this Declaration on a MS Word document for future viewing, and spreading. Cheers.

  • Me

    I pay off all credit cards each month. Use only those that give back some cash. I never vacation, don’t waste money on having a cell phone, cable or buying new clothing when the old ones still fit, drive maybe 500 miles a year.

    Being mortgage free is nice. I wouldn’t have it any other way.

    I probably should spring for some health insurance at some time, but for now skip docs, eye, and teeth appointments when possible. Gotta be careful about what they may talk you in to.

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  • Charles Butler

    discriminate between wants and needs, and necessary vs optional and NEVER carry a balance on a credit card except in a real emergency. A credit card is a handy thing, and if you are smart you can buy things and actually float the cost for several weeks. Throughout human history 10% was been the max interest, credit cards can destroy you with obscene interest rates if you do not have the self control to take advantage of them.

  • It’s a Slow Process

    To respond to Kelly the Loser, remember that IT TAKES TIME. I’ll grant, reading comments sometimes can make you feel bad. I read about folks saving $80k in less than a decade and I say “well done. Are you magic?” This is because I, and I suspect you, aren’t yet in a place of good financial income. I’m working on that, but it’s never going to be quick. That said, in the three years since I graduated college, I have gotten better and better at minimizing my necessary bills. If your house costs more than your income, then you need a different house. If it’s mortgaged, that’s more complicated, but you’ll be able to sell it eventually. If it’s rented, then you only need to hang on until the end of your lease. And then you find something else. My first rent was $650, and I was living on savings and absolutely insufficient income. My second rent was $600, because I split rent on a big house with many people. My current rent is $500, I’ve used the time to find better and better jobs, my husband found a job, and I’m working towards a really modest career. Never going to make a LOT of money, but if I increase my income while keeping my spending this low, I’ll make out alright.

    Summarize: it took me two and a half years to stop stressing out about money. If the Declaration is out of your reach right now, then so be it. Figure out the steps it’ll take until normalcy, THEN read about normal finances.

  • Gregory

    It’s tough but it is possible to follow the declaration.

  • monkeyMom

    we needed a car, we financed said car, at 19%……the only loan we could get now said car cost us an addl 3K in repairs, and we have only had it 3 mos…. and they gave us a 5 yr loan, the bank we have the loan at is a credit union, is there any way to “transfer” the loan to someone who will give us a better rate before we drown under this car and the amount its gonna cost us in the long run? we can’t do a huge lump sum payment especially, after all the repairs. and it was a used car…? any ideas

  • Been There

    I don’t have a home, but I plan on following the rest of these steps. My (now ex) husband and I entered into a debt management program and in 5 years we have almost paid off $40,000 in debt – just a few more months to go. Living off of only our earnings and not using credit cards for 5 years was difficult, but ended up being a great way to recognize needs vs. wants. Now that I am on my own, it’s a little harder to put money away, but I’m still doing it. Just remember, every little bit helps! Even if you can only put $5 a week into savings, do it. It adds up.
    I do plan on getting a credit card once I am debt free, but I am going to be MUCH wiser about how I use it. If one of my cats gets sick and needs to go to the vet, or if I have a car repair that needs to get done, I need to have the money to take care of it. If I do buy a non-emergency/non-necessity item with a credit card, i will make sure that I can pay the bill in full at the end of the month. It’s tough to do but it is possible.

  • Jalombian

    i was paying 8.99%, i just recently applied through myAutoloan.com to see if i would get approved for a re-fi, and multiple companies compete to re-fi your loan. Depending on the year and mileage of your car you’ll get great offers. I was able to get my interest down to 4.19%. hope this helps, and good luck.

  • Tmcgee82

    Very inspirational especially during this time of year. It’s extremely important to stress fiscal readiness to our families and youth as we usher in the New Year.

  • gottasave2

    one thing that I found to help me was paying a little extra every month. I don’t think any bank will do a refi this soon into the loan, but after a year, maybe 18 months, they will. I had a used car and the payment was almost $400. Each month I waould pay extra on it, between $20-$50 (whatever I could afford). A year later I refinanced, and the payment went down to about $250. Paying a little extra at the begginning of the loan, even if its just $5-$10 a month, will help save you a lot later, even if you don’t refinance the vehicle. This will keep you from paying so much interest. I hope this helps!

  • B. Bourland

    Make passive income a priority! If your job or health fails you you won’t be cut off and left without incoming money!

  • Jntprkns53

    put our money where it will grow? Like .05% CDs?

  • Minnesota guest

    many options available for 1% on savings right now, and ING offers close to that, 0.85% or so

  • Mona122463

    the truth,and nothing else matters.

  • Lizsev10

    gettin a credit with low interest and /or no interest for 1 to 2 years transfer you high interest credit card to that one..Do you have any credit cards like that ? I ahve a savings acct with ING

  • Lizsev10

    I am on social security and cannot save need to consilidate my credit cards to low interest and try and work out a plan for saving a little bit at lease

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