My new year's resolution this year is to have no resolutions! That's right. While other people are writing their lists and checking them twice, I decided to have nothing to do with this time-honored tradition.
A few days ago, I dutifully wrote my list of 100 goals for the year. I am a rather list-y person and have, until the last few days, always had a list of things to do. Actually I am known for my lists of things to do and occasionally I write lists of things for other people to do (this is what hastened my departure from my business's main client--seems the new Chairman of the Board was not used to me and when I wrote him a list of things he needed to do he literally flipped out. He was raving about me working for him not the other way around and he was actually turning purple as he was telling me this. That was when I figured out we wouldn't be compatible working together. That was also the impetus for me to close up shop, sell the house, move, and now embark on a year of travel). But I digress.
Anyway, I looked at my list of 100 goals. I thought about them. I dreamed about them. Then I wondered why, when at the very moment that my calendar has exactly zero appointments on it for the entire upcoming year, I would jump back into my compulsive need to structure all of my time. So I deleted the list from my computer and gave myself the give of having nothing to do for the foreseeable future.
I do have one resolution this year, however. And that is to let each day unfold and see where it leads me. There will be a few parameters, of course. Mostly I will be limited by my finances, or the lack there of. So I anticipate some interesting but relatively cheap/free experiences. I also intend to exercise daily (we'll see how long that vow lasts), and I want to write. Everyday. I have about 75,000 words of a book written that needs to be polished than shopped to a publisher. Also, I want some sort of adventure or new experience every day. That's about it. So my one resolution for the year is to do nothing and let life show me where I am supposed to go. Happy New Year!
Thursday, December 30, 2010
Monday, December 27, 2010
The Great Tampon Shortage
Yes, you read that right and no, I never thought I would write such a thing but I was surfing the net a couple days ago and ran across this story which lead me to this story and this story. In a nutshell, ob tampons which many women (including myself) swear by are suddenly unavailable. Then I hopped over to eBay and Amazon. Surely if there is a shortage these pillars of the free market system would know and according to the prices that are now listed on these sites--from $20 to $90 a box for what usually costs $7 a box--there must be some kind of problem.So out I went the next morning in a hunt to bulk up my stocks (actually I was running pretty low and knowing that I was nearly to my monthly PMS freak out, I thought I would be proactive--although I was freaking out a bit nonetheless). I went to Walmart first, no luck. Then Target, no luck. Then Fred Meyers which is a large chain store in our area and their shelves were bare too. Finally I stopped by a small pharmacy which I rarely see anyone shopping at and I raided their shelves. Imagine the surprised look on the cashier's face when I stepped up to the counter with literally an armload of tampons. She didn't ask and I didn't say anything. I then stopped by Safeway, a grocery store, and got their last two boxes so I am set for a while (after spending nearly $100! ouch).
When emotion gets wrapped up with your purchases, sometimes common sense goes out the window. And you can't really tell a girl being held hostage by PMS not to be emotional. Sure there are other tampons out there but I don't much care for them as I thought ob was perfect. There are even better, more logical options out there, namely the DivaCup and similar products which are reusable silicon cups that...well suffice it to say that hubby NEVER wants to hear another explanation of what a DivaCup is. But I did do some thorough research and when I get over the ick factor and possibly more desperate, I may give it a try. FYI, for more than you ever wanted to know about "alternative" feminine hygiene products, click here. And yes, these alternatives are way cheaper than mainstream products (a one time purchase of $25), way greener (you aren't throwing away wrappers and disposable products because you reuse the product forever), and better in other ways as well (I didn't know you weren't supposed to flush tampons until one day our mainline drain got clogged and the young plumber guy went to work on it and asked if anyone had flushed a mop down the toilet...yikes). So hopefully the powers that be will get the situation figured out and my favorite product will soon be restocked but until then, I am hoarding my supply (hubby did kind of look at my pile of product then look at the prices on Amazon and got dollar signs in his eyes but I told him not to even think about it...).
Friday, December 24, 2010
25 Things I Am Thankful for This Holiday Season (And They Are Almost All Free!)
Merry Christmas to you all! Here's my list of 25 things I am thankful for this holiday season:- My hubby. He's awesome! I can depend on him 110%.
- My family (and the hubby's family). They are all awesome as well.
- My friends. Again...awesome people all.
- We got an offer on our house and will be able to sell and still make a profit (always a good thing in this economy!).
- The internet. It helps me work, earn money, stay in touch with others, and most importantly learn about anything and everything I am interested in.
- Money in my wallet. Actual cash. This hasn't always been the case.
- Having a warm and safe house to live in.
- Having more than enough food to eat.
- Living in a country that is relatively safe and free.
- The prospect of a new year and a new life.
- Readers for my blog! (Thanks to you...yes, YOU!).
- Mail that brings me Christmas wishes and occasionally presents. I love presents!
- Not being in debt :)
- My good health. And the hubby's good health. Priceless!
- Public transportation, libraries, free community events, stores that give out free samples...stuff that I appreciate more and more as my income is coming to a screeching halt.
- CraigsList. It is a free service that is allowing me to sell all of our possessions before we move.
- Grocery stores with fully stocked shelves (this is not always the case in many of the places we travel to).
- Planning and looking forward to exciting travel.
- Being a minimalist...and realizing that I don't need much "stuff" to make me happy.
- God. I don't really go to church except for as a tourist, however I believe that God puts me where I am supposed to be and makes amazing things possible.
- Being able to help others (financially, by providing needed things, or just by being able to provide good advice that turns out well for them).
- The ability to read and write. These two skills have, by far, provided the most joy and inspiration in my life.
- Having a very good and relatively easy life. When I see they way that others live and some of the tragic/horrible/traumatic things people have gone through, often through no fault of their own both here and abroad, I am truly thankful for the life I have.
- Having so many possibilities. There are really no limits to the things we can accomplish!
- Technology. Yep, I am a pretty big tech geek.
p.s. Here is a cool picture that one of my wonderful friends gave me. He and his wife spend their retirement years making religious pilgrimages and always bring back the most amazing pictures. This is one of my favorites.
Thursday, December 23, 2010
Pretty Soon I Won't Own a House Anymore...
The good news--we got an offer on our house today for our full asking price!
The OK news--an offer doesn't mean a sale until I get the signed deed of sale papers in my hot little hands (ie: there are so many things that *could* go wrong and stop a sale that I won't be too excited until the sale is actually final).
The bad news--I have owned a house since I was 19 years old and I was looking at my key chain today and have exactly two keys on it, one to my PO Box and one to hubby's car, which technically means that I don't own ANYTHING (legally I still own a house but probably not for long and my house key is in the lock box for the realtor and my key ring is very, very empty!).
Surprisingly, I feel very light and not at all unhappy about not owning anything, although it just seems an odd circumstance to find myself in.
Some back story: I have been working full time since I was 16 years old. I bought my first car at 16 (with payments of course...nice intro into consumer debt...) and I bought a house (granted it was nearly 100 years old and something was ALWAYS breaking in it) when I was 19 years old because I wanted the type of security that I thought owning a house conveyed (I had previously lived in about a dozen places and I wanted to feel rooted).
Sooo...I have always equated owning a home with being responsible and rooted in the community and that somehow home ownership was a "better" choice than being an apartment dweller or worse, living in a trailer (fyi I grew up in a trailer so I'm not slandering those who do, it's just that in our area owning a house was considered much better than any other living option).
Owning a house is good for a number of reasons. When you have a house full of kids, you don't have to worry about being too noisy for the neighbors and you don't have to worry about the kids messing up the apartment to the tune of losing your security deposit. You can paint the walls, pound all the nails you want into the walls, and put in chartreuse carpet if you like. A house is a place for family to gather, there is nearly a guarantee that you will build equity in your house which can be looked at like a savings account or retirement fund (definitely not the case over the past couple of years), you have a "permanent" address, and you become part of a neighborhood.
But there is also a down side to owning a house which I never really looked at before (or maybe I didn't want to acknowledge before). Houses aren't cheap even if you have a stellar interest rate and low payments. If something goes wrong in the house YOU get to pay for it (we've replaced carpet, linoleum, hot water tanks, appliances, a furnace, siding, a roof, etc). If you own a house for years, it's nearly a guarantee that ALL of those things will break at one time or another...a house is a huge financial responsibility! You can't pick up and travel at the drop of a hat since you need to care for and maintain your home or find someone to do it for you. You can't quickly move away from mean neighbors, harsh climates, natural disaster areas, and other things that you can do easily if you are a renter. You, of course, NEED to work so you can pay your house payment, and a house can also be a psychological burden. I have known quite a few elderly relatives (mostly women because they tend to outlive the men) who held on to their houses way longer than they should have because they felt like it was their duty even if the house was falling down around them and even if they would have actually been much happier in a retirement community in Florida. But no, they struggled with maintaining the house as best they could, maintained the yard as best they could, paid bills to heat, air condition, and decorate houses than once housed large families but which they were now the sole occupant of. Which isn't to say that retirees shouldn't live out their life in their own home, just that is shouldn't be a socially or psychologically imposed requirement.
Now, my views on home ownership are not nearly as rigid as they used to be. I have learned that a "home" is more important than a house and that financially sacrificing yourself for a house which society deems as "necessary" doesn't make much sense at all. In fact, some of the blogs I follow are from people who are technically "homeless" but have truly amazing lives. Like these people, these people, and this lady. I have found more of a feeling of "home" in the run down apartments of illegal immigrants than in grand mansions. I have also seen people much less stressed and enjoying more time with their families and hobbies when they didn't have a huge mortgage hanging over their heads.
I am hoping our foray into joining the ranks of the "homeless" will provide even more lessons on actually living instead of just acquiring. Can I get an amen?
The OK news--an offer doesn't mean a sale until I get the signed deed of sale papers in my hot little hands (ie: there are so many things that *could* go wrong and stop a sale that I won't be too excited until the sale is actually final).
The bad news--I have owned a house since I was 19 years old and I was looking at my key chain today and have exactly two keys on it, one to my PO Box and one to hubby's car, which technically means that I don't own ANYTHING (legally I still own a house but probably not for long and my house key is in the lock box for the realtor and my key ring is very, very empty!).
Surprisingly, I feel very light and not at all unhappy about not owning anything, although it just seems an odd circumstance to find myself in.
Some back story: I have been working full time since I was 16 years old. I bought my first car at 16 (with payments of course...nice intro into consumer debt...) and I bought a house (granted it was nearly 100 years old and something was ALWAYS breaking in it) when I was 19 years old because I wanted the type of security that I thought owning a house conveyed (I had previously lived in about a dozen places and I wanted to feel rooted).
Sooo...I have always equated owning a home with being responsible and rooted in the community and that somehow home ownership was a "better" choice than being an apartment dweller or worse, living in a trailer (fyi I grew up in a trailer so I'm not slandering those who do, it's just that in our area owning a house was considered much better than any other living option).
Owning a house is good for a number of reasons. When you have a house full of kids, you don't have to worry about being too noisy for the neighbors and you don't have to worry about the kids messing up the apartment to the tune of losing your security deposit. You can paint the walls, pound all the nails you want into the walls, and put in chartreuse carpet if you like. A house is a place for family to gather, there is nearly a guarantee that you will build equity in your house which can be looked at like a savings account or retirement fund (definitely not the case over the past couple of years), you have a "permanent" address, and you become part of a neighborhood.
But there is also a down side to owning a house which I never really looked at before (or maybe I didn't want to acknowledge before). Houses aren't cheap even if you have a stellar interest rate and low payments. If something goes wrong in the house YOU get to pay for it (we've replaced carpet, linoleum, hot water tanks, appliances, a furnace, siding, a roof, etc). If you own a house for years, it's nearly a guarantee that ALL of those things will break at one time or another...a house is a huge financial responsibility! You can't pick up and travel at the drop of a hat since you need to care for and maintain your home or find someone to do it for you. You can't quickly move away from mean neighbors, harsh climates, natural disaster areas, and other things that you can do easily if you are a renter. You, of course, NEED to work so you can pay your house payment, and a house can also be a psychological burden. I have known quite a few elderly relatives (mostly women because they tend to outlive the men) who held on to their houses way longer than they should have because they felt like it was their duty even if the house was falling down around them and even if they would have actually been much happier in a retirement community in Florida. But no, they struggled with maintaining the house as best they could, maintained the yard as best they could, paid bills to heat, air condition, and decorate houses than once housed large families but which they were now the sole occupant of. Which isn't to say that retirees shouldn't live out their life in their own home, just that is shouldn't be a socially or psychologically imposed requirement.
Now, my views on home ownership are not nearly as rigid as they used to be. I have learned that a "home" is more important than a house and that financially sacrificing yourself for a house which society deems as "necessary" doesn't make much sense at all. In fact, some of the blogs I follow are from people who are technically "homeless" but have truly amazing lives. Like these people, these people, and this lady. I have found more of a feeling of "home" in the run down apartments of illegal immigrants than in grand mansions. I have also seen people much less stressed and enjoying more time with their families and hobbies when they didn't have a huge mortgage hanging over their heads.
I am hoping our foray into joining the ranks of the "homeless" will provide even more lessons on actually living instead of just acquiring. Can I get an amen?
Wednesday, December 22, 2010
The Art of Compromise
As we were rolling full steam ahead on our plan to clear out our house (it's nearly half empty now!) and get ready to travel, I noticed that hubby was looking sadder and sadder. Although he is pretty much on board with our plan, he seriously hates change. He is firmly stuck in his rut and happy to be there, however, if there is something I want to do he will dutifully follow along. So along he is going with this half crazy plan to sell everything and travel the world before deciding when and where to settle down again.
We (I) had originally intended to sell literally everything before we left but hubby said that he really didn't want to be 62 years old and only have the items he could fit in a backpack to his name. Did I mention he likes security and stability? Also, he is from a very class-oriented culture so he feels like people judge him by the stuff he has and if he doesn't have anything he would be nothing. Well that made me take a step back. I really feel like my plan is sound and that he will appreciate the things we will be able to do without the huge overhead of a house and possessions to weigh us down, but when you are married you do need to take the other person's feelings into consideration.
Over the years we have learned to compromise on quite a few things--he is a hoarder and I am a minimalist, having lots of stuff makes him feel happy and comfortable yet for me, having lots of stuff makes me feel like the weight of responsibility is piled up on my shoulders. So we have worked around our various conundrums quite well. I just think that the sudden rush of all of his possessions being sold and carried away really got to him.
So here is the compromise...I checked with a local storage place and for $50 a month we can store some basic stuff that he really wants to keep (a bed, a futon sofa he loves, and a dozen crates of personal possessions). Hubby seems a bit happier to have some stuff rather than to have no stuff. The second thing I did was go to check out some senior apartments in our area. The apartments are small but so is the price, the locations is great, the building is new, and they have tons of amenities. I presented this option to hubby so that if we got tired of traveling or hanging out with relatives (our original plan was to "homebase" out of his sister's home however hubby said he would prefer his "own" place), there is always the option to rent an apartment that would meet all of our needs. Again, he seemed relieved to have another option besides "grab your backpack and we'll land somewhere".
And therein lies the art of compromise. When you are making plans for anyone other than yourself, jarring changes may be a bit overwhelming to them and of course they may push back rather than go along, so it is always a good idea to provide a variety of options so that they can feel like they can have some sort of control over the situation.
...Gee all of that and I don't even have a psychology degree!
We (I) had originally intended to sell literally everything before we left but hubby said that he really didn't want to be 62 years old and only have the items he could fit in a backpack to his name. Did I mention he likes security and stability? Also, he is from a very class-oriented culture so he feels like people judge him by the stuff he has and if he doesn't have anything he would be nothing. Well that made me take a step back. I really feel like my plan is sound and that he will appreciate the things we will be able to do without the huge overhead of a house and possessions to weigh us down, but when you are married you do need to take the other person's feelings into consideration.
Over the years we have learned to compromise on quite a few things--he is a hoarder and I am a minimalist, having lots of stuff makes him feel happy and comfortable yet for me, having lots of stuff makes me feel like the weight of responsibility is piled up on my shoulders. So we have worked around our various conundrums quite well. I just think that the sudden rush of all of his possessions being sold and carried away really got to him.
So here is the compromise...I checked with a local storage place and for $50 a month we can store some basic stuff that he really wants to keep (a bed, a futon sofa he loves, and a dozen crates of personal possessions). Hubby seems a bit happier to have some stuff rather than to have no stuff. The second thing I did was go to check out some senior apartments in our area. The apartments are small but so is the price, the locations is great, the building is new, and they have tons of amenities. I presented this option to hubby so that if we got tired of traveling or hanging out with relatives (our original plan was to "homebase" out of his sister's home however hubby said he would prefer his "own" place), there is always the option to rent an apartment that would meet all of our needs. Again, he seemed relieved to have another option besides "grab your backpack and we'll land somewhere".
And therein lies the art of compromise. When you are making plans for anyone other than yourself, jarring changes may be a bit overwhelming to them and of course they may push back rather than go along, so it is always a good idea to provide a variety of options so that they can feel like they can have some sort of control over the situation.
...Gee all of that and I don't even have a psychology degree!
Saturday, December 18, 2010
Our Annual Bill Paying Plan
For most of my financial life, I have got by just paying the "minimum payment due". Obviously not a good thing, especially when paying credit card, car, and other debt because you can justify any loan amount if you are only looking at "small monthly payments" as opposed to the total amount owed.
Fortunately, our debt is just about paid off so there won't be any minimum monthly credit card or car payments, however, now I am looking at the monthly payments on our regular bills and have come up with a new annual bill paying plan. Here's how it will work:
I hope to reduce these bills even further in a few ways: obviously health insurance will be a constant bill and at this low price I am more than happy to pay it however it will drop in half in a couple of years when hubby goes on Medicare. We think that eventually we may sell the car and be totally car free so that would preclude the need for car insurance. Our cell phones will eventually be of the pre-paid variety and I think our taxes will be reduced significantly beginning in January because I won't be working (my goal is to live so minimally and need so little that we end up paying zero taxes). Tithing will continue as usual at 10%, and while we are in the Philippines next month, I will talk to the grandson's family about setting them up a small business of some sort with some seed money so that they can pay for his school out of the proceeds of the business thus ending our commitment to pay his school fees for the next decade or so.
Obviously there will be other variable costs we will pay just for living like food, clothes, sundries, and "rent" of sorts to whoever we are staying with but these will be reduced as much as possible (and will be some good topics for future blog posts!).
Fortunately, our debt is just about paid off so there won't be any minimum monthly credit card or car payments, however, now I am looking at the monthly payments on our regular bills and have come up with a new annual bill paying plan. Here's how it will work:
- Our current debts include a mortgage payment (which includes property tax and house insurance), health insurance, car insurance, water, garbage, sewer, electric, gas, cable, cell phones, tithe, school for a grandchild, and taxes.
- As soon as we move (our house is in the process of being sold) and we become nomadic, our bills will drop to health insurance, car insurance, cell phones, tithe, school for the grandchild, and taxes.
I hope to reduce these bills even further in a few ways: obviously health insurance will be a constant bill and at this low price I am more than happy to pay it however it will drop in half in a couple of years when hubby goes on Medicare. We think that eventually we may sell the car and be totally car free so that would preclude the need for car insurance. Our cell phones will eventually be of the pre-paid variety and I think our taxes will be reduced significantly beginning in January because I won't be working (my goal is to live so minimally and need so little that we end up paying zero taxes). Tithing will continue as usual at 10%, and while we are in the Philippines next month, I will talk to the grandson's family about setting them up a small business of some sort with some seed money so that they can pay for his school out of the proceeds of the business thus ending our commitment to pay his school fees for the next decade or so.
Obviously there will be other variable costs we will pay just for living like food, clothes, sundries, and "rent" of sorts to whoever we are staying with but these will be reduced as much as possible (and will be some good topics for future blog posts!).
Monday, December 13, 2010
I Love Free Stuff!
I am holding onto my money so tight these days that ole Ben Franklin is practically screaming. So how do I keep my money instead of letting it run through my fingers like it usually does? Easy, I go in search of free stuff, including:
- Hubby's computer got a virus. His first thought was to haul it over to the Geek Squad but I used Google to figure out the problem (indeed it was a virus) and how to fix it (reboot the computer in safe mode then restore it to an earlier restore time point). I was so surprised I was actually able to fix the computer and hubby was amazed too!
- And to prevent the virus from happening again, I went to www.download.com and downloaded some free (but good!) anti virus software (AVG). They also have all kinds of other software to download on the site at no charge.
- Instead of hunting for the perfect calendar for my purse and paying for it (I may be the last person on the planet to eschew the calendar on my smart phone for a calendar booklet), I simply had hubby stop by his bank and pick up free calendar booklets that they hand out this time of year. I actually really love these small calendars which are the perfect size to fit in my purse but still have big enough spaces each day to write down the stuff I have to do. Best of all, they're free!
- Walking through the mall a few days ago, I came away with free samples from See's Candies and Hickory Farms. Yum! Also, although the membership isn't free (actually it is for me as a client gives me a free membership card each year) you can also fill up at no charge by walking through the food section at Costco a couple of times...we sometimes do this on Sunday's when we are bored (and hungry).
- My library is growing thinner as we get rid of nearly everything we own. But I was bored the other night and looking for a good book to read and seeing as how all I have now are a bunch of non fiction books and not a single trashy romance brain candy novel at my disposal, I went online to www.amazon.com and downloaded their free Kindl e-reader for my computer then went to town downloading free books from the site. I got some great reads absolutely free!
- I went to our community library today and checked out some books. I almost always hang out at Barnes and Noble and just read books from the shelves but when I go there it is my habit to always buy a drink in their cafe which now runs about $4 a beverage. Instead of depleting my money and increasing my waist size, I decided to give the library a shot and found a whole stack of great books. For free!
- CraigsList is awesome...and free! Since we are in the middle of getting rid of nearly everything we own so we can travel for the next year or so, I can't rave enough about the free ads I can place on CraigsList. CraigsList is hands-down the best way to advertise the stuff I have for sale and we have been able to get rid of plenty of things at reasonable prices this way.
- Filling out a simple form got me a $50 Visa gift card which just came in the mail today. Actually I did have to buy a smart phone through my wireless carrier but I got a great deal on it because I renewed my contract with them. When I got the phone, they gave me everything I needed to fill out to get the rebate which I quickly mailed in and ta-da, the gift card came in the mail today. I know some people who think it is too much hassle to fill out rebate forms but it is usually super simple and definitely worth the small amount of time it takes to do this.
- And then there is my penchant for whining and throwing a fit, especially when I have a consumer problem. Actually I probably am not that bad but when I had numerous problems with said smart phone above, I went to the retail store and called their customer service line to complain (a lot). The result after having about five issues with the new phone was a replacement for the phone and they are even sending me another phone absolutely free so I will end up with two brand new phones, one of which I will eBay and get the cash from it. Complaining works!
- Leftovers are free too, relatively speaking. I mean you have already paid for the groceries or restaurant meal so why let the leftovers go to waste? Americans throw out literally tons and tons of food each year. I used to be one of those people but now we make a conscious effort to eat as many leftovers as possible and therefore waste very little food.
That's all I can think of now. Besides, my leftover turkey is warming up in some gravy and is just about ready to pour over some leftover rice for dinner tonight.
Thursday, December 9, 2010
Financial Transparency
I was trying to think of a catchy title for this article but thought that the title "If you don't pay attention to your money it could lead to embezzlement, various forms of addiction (gambling and drugs for example), and affairs" seemed a bit long and off-putting. It is however, the truth. As I have seen a few times with businesses and more than enough times in families, when there is only one person watching the money, there is a lot more temptation to do stuff with the money that you shouldn't do. These are the things you should do with your money, whether it is money in your business or money in your home (obviously if you are single and have no one to answer to this may not be as applicable):
- You should have a written budget at the beginning of each month which lists what money is coming in and where it is going. When everyone knows how much is coming in and how much is going out (as well as where the money is going to) there is less of a chance that the money could be diverted and used for illicit purposes (ie: used to fund a shopping or drug addiction).
- There should be a clear separation of powers when it comes to your money, meaning that one person is not in charge of everything when it comes to banking, writing checks, paying the bills, etc. Although I would like to give you the gristly details of a business that is still under investigation for financial mismanagement, I can't. Suffice it to say that one person was in charge of the money for years and no one else in the business knows exactly where the money went because there was only one set of eyes on the entire financial process...it will probably turn out to be a lengthy and litigious situation.
- Everyone who has access to the money should account for both income and expenses in writing and this tally should be balanced against the bank statement each month. Unfortunately, this is how my friend found out that her husband was having an affair. He would take money out of their account, not write down what it was used for, put money back into the account to cover the purchases, and he never thought that she would know that he had bought various things for his new girlfriend because they weren't in the habit of balancing their bank registers against their bank statements and she rarely even saw a bank statement come in. Until one day she did look at the statement and that was pretty much the end of their marriage.
- Each person should have a small "slush fund" of sorts. In business, of course, you want clear accounting and receipts for everything, however money represents power in a relationship and each person in the family should have a small (notice I didn't say large) amount of money that they can use as they please and not have to account to anyone for it.
The bottom line rule is that there should be no lying and complete financial transparency with your money. If you or your spouse or your employee needs to lie about money then there is a big problem. It might be a communications problem (like I said before, a power "you can't tell me what to do" issue) or it could signify something bigger (like hiding money to use for a gambling problem).
Wednesday, December 8, 2010
10 Things About Your Emergency Fund
My emergency fund has saved me on more than a few occasions. Everything from late checks to car problems to house problems have been quickly remedied because I had the cash on hand to cover the "emergency". Here's ten things I have learned about having an emergency fund:
- $1,000 is a good amount to start with for an emergency fund. Although some people say you need six month's worth of living expenses in your emergency fund, when you are digging out of debt, a smaller emergency fund is fine. Let the bulk of your extra money pay down 18% debt instead of parking it in an account earning a paltry 1%.
- You can put $1,000 in an emergency fund in fairly short order. When I first heard (from Dave Ramsey) that I needed an emergency fund, I was so deep in debt I thought there was no way I would be able to put that much money aside and not use it. After all, nearly every day I was having a financial emergency (usually of my own making). However, it is amazing what you can do when you are 110% focused on a goal. I CraigsListed stuff, I eBayed stuff, I sold my jewelry, I forced myself to put money into the emergency fund first before paying anything else. In less than a month I had my small emergency fund set. And you can too.
- The stars will conspire against you as soon as you get your emergency fund set up. I don't know what the deal is but I have heard this from many people. As soon as they had an emergency fund, emergencies started happening on a regular basis. I remember our furnace went out in the dead of winter ($985), the car's engine started sucking air (I'm not sure what the problem was but it cost over $800 to fix), another car problem cost $900+ to fix, someone threw a rock through our window (I think they had the wrong house but the damage cost $500 to fix)...you get the idea. The good part was that we had the money in our emergency fund to fix these problems where as before we would have just added it to the credit cards, paid the minimum monthly payments, and ended up even further in debt.
- When Murphy's Law starts hitting you from all sides, you need to refocus your efforts, and any time your emergency fund drops below $1,000 you need to immediately work to build it up again. Eventually another cosmic law takes over and the emergencies seem to taper off leaving your emergency fund in tact for longer and longer periods of time.
- Your emergency fund can be used only for emergencies. Your emergencies. It is tempting when you have money "just sitting there" to qualify all kinds of things as an emergency. Your retail therapy sessions, your friend's latest crisis, a much needed vacation, etc. Don't do it. Unless there is a possibility you could DIE unless you use the money (no furnace in January certainly qualified) then don't touch your emergency fund.
- You want your emergency fund in a safe, yet liquid, place. This generally means a bank savings account. Leaving that much cash at home can be too tempting to you (and burglars!). Putting the money is a CD or IRA means you can't get at it when you need it without penalties.
- You can use your emergency fund for inspiration. When I first put my emergency fund together and got the bank statement showing that I had a little over $1,000 in my savings account, I posted the bank statement right next to my computer where I would see it every morning. This inspired me to keep working at paying off my debt. After all, if I could have $1,000 on a bank statement with my name on it, I could do anything!
- Don't tell anyone about your emergency fund. I don't know about you, but most of my family is flat broke. If they had heard I had $1,000 in cash, they would have come up with all sorts of very convincing reasons that they needed to "borrow" money from me. And from experience I know that they are generally never able to pay me back. It is just easier all around if you keep your emergency fund to yourself.
- Make your emergency fund work for you. Now that you have some money, you might as well make it earn its keep. Unfortunately, interest rates are super low at this point, however make sure you are at least earning something on your money by putting it in an interest-bearing account.
- Your emergency fund should grow just as soon as you pay off your debts. This is another Dave Ramsey rule and it makes absolute sense. When you are debt free, you will have lots of extra cash to put towards growing your emergency fund to what is normally considered adequate--about six to nine month's worth of living expenses. The good news is that this number will now be lower than when you began your journey because your living expenses will be minus all of the debts (and therefore monthly payments) that you just paid off.
Do you have an emergency fund? If the answer is no, I can't recommend highly enough that you make putting together a small, $1000 emergency fund your most important task. Start now!
Tuesday, December 7, 2010
Bad Habits
I would probably be wealthy, or at least have more money, if it weren't for my bad habits.
- My worst habit is Starbucks and assorted other coffee shops. Oddly enough, I can't stand the taste of coffee but going to a coffee shop nearly every day is a habit that is #1 making me fat, and #2 making me broke. For the record, I will often have a hot chocolate or a green tea frapuccino instead of coffee. Anyway, it is hard to change this habit because, at least in our area, going to coffee shops whether with friends or alone is just something many people do each day. Coffee shops are a great place to socialize and also a great place to relax (my favorite Starbucks is located in Barnes and Noble where I can both relax and read which are my two all-time favorite things to do). But when you do this every day it becomes a habit and when you have a habit that includes parting with your hard-earned cash each day it becomes a black hole for your money. Not good.
- My second worst habit is buying stuff for people. I guess I am a people pleaser and I also have the habit of seeing things that people "need" and wanting to get it for them. Case in point, I went to the Coach outlet store this weekend and I found the perfect bag that I have been looking for (it was even 50% off retail plus an additional 30% off so it was a super bargain). But that wasn't the problem. I had planned to buy the bag and I had the cash to buy it, however my sister was shopping with me and on the spur of the moment I decided to buy her something as well. Even though I had the cash to buy her a purse, it wasn't something I had planned. She was looking at the bag wistfully and I knew she couldn't afford it and it only took about thirty seconds to justify my purchasing the bag for her--she has five kids, she is a great, hard-working mom, she never treats herself, she has never had a Coach purse and has always really wanted on, Christmas is coming up... I tend to do this all the time. If I can make someone happy by getting them something, I can instantly justify the purchase. At least now I am limited by the cash I have to spend. It was much worst when I had a wallet full of credit cards...
So with my looming unemployment coming up, I am now more aware than ever that I need to reign in my bad habits. How to accomplish this is another question.
Monday, December 6, 2010
Link Round Up: Finance Edition
My favorites list is getting a bit full, here's some of the interesting/useful financial links I have bookmarked recently:
Sunday, December 5, 2010
50 Tech Tips
Here's all I know about technology. Some of it is free, most is useful, and all should be interesting. Enjoy!
- Best way to keep in touch with the family: FaceBook
- Best way to keep in touch with online friends: Twitter
- Favorite way to video chat online with friends: Yahoo Messenger
- Best way to text friends in Asia: Chikka
- Best way to find help with any problem: 211
- Best way to make free phone calls: Skype
- Best free email (I pay $20 a year to get rid of the ads): Yahoo Mail
- Best news and info agregator by topic: AllTop
- Best news and social media agregator: PopUrls
- Best web host: Webhero
- Best cell plan (I have an old plan with an excellent rate): TMobile
- Favorite cell phone: MyTouch Slide
- Favorite search engine: Google
- Best place to sell small electronics online: EBay
- Best place to sell other stuff: CraigsList
- Best place to book travel: Travelocity and Orbitz
- Favorite blogging host: Blogger
- Favorite web design software: Expression Web
- Best place to find free CSS templates: Free CSS
- Best place to find free software: Download.com
- Best online tech reviews: CNet
- Best online message board: Ask Metafilter
- The digital camera that I use: Canon PowerShot 1300
- The digital video camera I use: Flip Mino Ultra HD
- The bag I carry my tech stuff in: TimBuk2
- Favorite office software: Microsoft Office Professional 2007
- Favorite free office software: Open Office
- I earn ad revenue via: AdSense
- I receive money online via: PayPal
- Favorite link shortener: Bitly
- Favorite social media blog agregator: LifeRemix
- Best free photo optimizer for the web: Web Resizer
- The only places I shop online: REI Outlet and Amazon
- The mapping program I always use: MapQuest
- Favorite place to get some consumer satisfaction: Consumerist
- Favorite news site: CNN
- Most interesting blogging platform: Tumblr
- When I need to find a Spanish verb conjugation: Spanish Verb Forms
- When I need financial inspiration: Dave Ramsey
- When I want to keep up with the latest tech news and info: LifeHacker and Wired
- My favorite online geek: Kevin Kelly
- My favorite online aspy: Penelope Trunk
- When I need some news of the world: All You Can Read
- When I need gift ideas for the geeky people in my life (myself included): Cool Tools
- Best place to watch videos online: YouTube and Hulu
- When I need to find my nearest volksmarch: AVA
- When I need to find a nearby walk/run: Map My Run
- Or when I want to find some sort of other physical activity in my area: Active.com
- Useful: 20 Places to download free ebooks
- Useful: Universities with the best free online courses
Thursday, December 2, 2010
"How Can You Do That?"
I was at the bank today, doing one of the myriad tasks that I need to get done before we leave next month, and the banker I was talking to about switching around a couple of accounts asked why I was doing this so I gave him a quick "we are planning to travel for the next year or so" which kind of brought everyone in the office to a stand still. His manager came over and sat down and started chatting and the ladies in the few desks that were near his seemed to be inordinately interested in our conversation.
Both of the bankers wanted to know how we could possibly do such a thing (btw, as they were asking if they could sign me up for a credit card because they saw in my account that I didn't have one of their bank credit cards...go figure).
So I gave them my quick recap of how we really could do such a thing, using their question about the credit card as a segue. I simply told them that we are able to do such a thing because:
Both of the bankers wanted to know how we could possibly do such a thing (btw, as they were asking if they could sign me up for a credit card because they saw in my account that I didn't have one of their bank credit cards...go figure).
So I gave them my quick recap of how we really could do such a thing, using their question about the credit card as a segue. I simply told them that we are able to do such a thing because:
- We don't use credit cards or carry debt.
- We drive one old, paid off car.
- We are selling our house so we won't have house payments to make.
- Our kids are grown so we don't need to worry about #1 supporting them or #2 all of the extra stuff that is involved when you travel with kids.
- I have (a currently very small) income from my online businesses.
- We have some, but not a lot, of savings.
- Hubby is retired with both a pension and social security (it is an adequate amount to live on in the US yet it some foreign countries such an income would allow us to live very, very well).
- We have minimal stuff and in fact, we are selling off almost everything we have.
That was probably way more information than they expected but they certainly paid attention. The bottom line, is that you can pretty much have anything you want--a nice house, a brand new car, travel, a closet full of designer bags, the latest and greatest tech stuff--it just depends on what your priorities are. It may be difficult to have all of those things at the same time due to financial constraints but if you want one of those things, it is entirely possible to dedicate your work and your income to having said item.
Wednesday, December 1, 2010
(Another) Update: I Quit My Job Today. Wow.
I heard about a guy named Dave Deshler who made last year (or was it this year?) his "Year of Awesomeness". Unfortunately I've Googled and can't even find a web page about him, only a two sentence blurb about his project in Backpacker Magazine.
I fully intend to make 2011 my Year of Awesomeness but decided to get a jump start on the year by making my first definitive move today. I met with the Board of my businesses main client today and terminated my contract with them effective December 31st. Now for some businesses, that might not be a big deal, after all, you can get other clients, but for me, this was definitely a big deal. Firstly, they are my main client, the one which provides the income to pay my mortgage, and I have been with them for over eight years. Secondly, as many will tell you, because the economy is so crappy, now is hardly a good time to make oneself purposely unemployed. Thirdly, I have never actually quit a job without having something better lined up and in this case, I have exactly nothing lined up. Yikes.
But, after all of the drama at the organization over the past few months, doing this just felt like the right thing to do. It seemed like the natural time to let this situation dissolve into the past and move forward with new projects (what projects, I have no idea).
So here I sit, pondering my future, wired up on caffeine, and feeling unusually free for the first time in decades.
A possible omen of better things to come...I ran across a book at Barnes and Noble today (I think the title was How to Stop Worrying and Start Living) which had a great quote to live by. The way to awesomeness (I'm paraphrasing) is to stop worrying about yesterday, don't worry about tomorrow, but focus on today and be awesome (again, paraphrasing). Definitely words to live by. I can hardly wait to see what awesome things I will do tomorrow.
I fully intend to make 2011 my Year of Awesomeness but decided to get a jump start on the year by making my first definitive move today. I met with the Board of my businesses main client today and terminated my contract with them effective December 31st. Now for some businesses, that might not be a big deal, after all, you can get other clients, but for me, this was definitely a big deal. Firstly, they are my main client, the one which provides the income to pay my mortgage, and I have been with them for over eight years. Secondly, as many will tell you, because the economy is so crappy, now is hardly a good time to make oneself purposely unemployed. Thirdly, I have never actually quit a job without having something better lined up and in this case, I have exactly nothing lined up. Yikes.
But, after all of the drama at the organization over the past few months, doing this just felt like the right thing to do. It seemed like the natural time to let this situation dissolve into the past and move forward with new projects (what projects, I have no idea).
So here I sit, pondering my future, wired up on caffeine, and feeling unusually free for the first time in decades.
A possible omen of better things to come...I ran across a book at Barnes and Noble today (I think the title was How to Stop Worrying and Start Living) which had a great quote to live by. The way to awesomeness (I'm paraphrasing) is to stop worrying about yesterday, don't worry about tomorrow, but focus on today and be awesome (again, paraphrasing). Definitely words to live by. I can hardly wait to see what awesome things I will do tomorrow.
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