budget

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Dear Jack: 6 Months of Living in Our New House

4 years, 8 months.

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Dear Jack,

As they say… time flies when you’re having fun.

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That must be why it definitely doesn’t feel like we’ve been living in our new house for 6 months.

A week ago made 6 months that we began moving in our stuff and began sleeping there; but it took a solid week after that before it felt like we truly living there and not simply still moving in.

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As of today, I wanted to document what our house looked like at this point in history; so I walked around room to room, taking pictures.

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One of my proudest decisions in staging our house is that we purposely don’t have a TV downstairs in the living room. It’s important to me that conversation is not stolen in our house.

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If I could come up with a theme for our house, it would be this: Quality time.

That’s so important. We have to make the most of our time together despite our busy schedules as individuals.

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As you read this years from now, I want you to hear me say this once again:

We worked very hard to get into this house.

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It required paying off all our debts (including cars and student loans), then living by an extremely strict budget (including no smart phones), in order to start saving for the down payment on our house.

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Something that was very important to Mommy and me was to make sure we raise you (as well as any future siblings) in a good school system. To do that, we had to move to the “right” county: Williamson.

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We pour our lives into you. We want the best for you. Being able to live in this house makes me feel like our family is exactly where we need to be.

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Living in this house has truly made us happy, content, and at peace. Our quality of life has never been better.

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But again, this wasn’t handed to us.

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And it’s not simply about how much money you make, as much as it is how you manage the money you do make. We worked very hard to get here… and still do.

Love,

Daddy

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Lottery Commercials Don’t Target People Who Are Good Money Managers

What’s the first thing I’d do if I somehow ran into a very large amount of money?

Lottery Commericals Don't Target People Who Are Good Money Managers

You guessed it. I would immediately pay off the mortgage on our brand-new house. It would be quite the celebration!

Because I know that I’m paying nearly 100% interest for the 1st half of the life of that loan.

I wouldn’t care about a new car, or a boat, or a big trip. All I would care about would be paying off the mortgage.

Then… placing the rest in savings and investments.

From there, I might consider a family vacation or newer cars; but that would be my last priority.

Yet I’ve never seen a lottery ticket commercial or an injury lawyer commercial showing a winner who joyfully exclaims, “With the money I won… first, I immediately paid off the mortgage on my house, then put the rest in savings and investments, so that I’ll actually be making money for the rest of my life instead of losing it quickly just because I have more!”

Granted, that’s what I’d say.

But apparently, that’s not what the targeted audience for lottery ticket winners or injury lawsuit winners would do, based on what is portrayed in these commercials:

When I see these kinds of commercials, I know that the marketing department for the lottery and injury lawyers are not baiting people like me, who have learned the hard way by living in debt for years, but who finally became debt free after following the teachings of Dave Ramsey, and who are now focused on paying off a mortage ASAP, to better save and invest all future income from there.

Of course, I’m not against the lottery or injury lawyers; I see good in what they do.

I’m just simply deconstructing some of the psychology involved in some of their marketing… the way I’ve pointed out in the past that fast food logos almost always include red and yellow as their main colors to try to make you slow down (like you do at a yellow light) and stop (like you do at a red light) for their restaurant.

Lottery Commericals Don't Target People Who Are Good Money Managers

It appears that lottery commercials are trying to make people think that if they regularly “invest” in lottery tickets, they will stand a decent chance of living the rock star (or rap star?) lifestyle, by blowing the money on depreciating liabilities, instead of assets that will hold their value; or in legitimate, profitable investments.

Perhaps this is what the advertisers want people to think when they their commercials:

“You deserve more money than you know how to manage, so once you win, spend your money on consumer items shown in this commercial, ones that immediately lose their value once you buy them, instead of ones that keep or gain value.”

Lottery Commericals Don't Target People Who Are Good Money Managers

Like I said, I’ve yet to see a lottery or lawsuit commercial that portrays the winner immediately paying off their mortgage with the money; then going on to save and invest the rest. I’ve never heard that even mentioned in one of these commercials, yet it’s the very first thing I would care about.

It really shouldn’t be that ironic.

So apparently, people who make lottery ticket commercials and injury lawyer commercials don’t have me in mind as a marketable demographic.

Maybe then it’s not that ironic that back in 1999 when I woke up in a hosptial after having been knocked unconscious after wrecking on a bike, and an injury lawyer was there as I opened my eyes, offering to help me “win the money I deserve,” I politely thanked him, but turned him down.

And for the record, I rarely buy a lottery ticket.

1 Comment Posted on parenting, Storytelling

5 Impractical Ways To Save Your Family Money In 2013

January 1, 2013 at 1:17 am , by 

2 years, 1 month.

Dear Jack,

From first glance, we look like apretty normal American family. If people only knew…

As for this time around, I would like to focus on 5 impractical ways that our family saves money…

I’ve heard it said that Generation Y parents are predicted to become much like the penny-pinching generation who was our age during the Great Depression.

Well, I believe it. Here’s the how and the why.

These are 5 impractical ways we as a family save money:

1. We don’t pay for cable or satellite TV. Instead, we pay $7.99 a month for the Netflix streaming plan. We have unlimited access all the shows you love, like Thomas & Friends and Sesame Street; for Mommy and me, there’s Lost and The Office. That’s not even mentioning all the movies that are available.

2. We don’t pay for Internet on our phones. Since we’re already paying for wireless Internet for our house and because our jobs don’t directly depend on it, it’s difficult for us to justify paying even more for Internet so we can play Angry Birds on our phones while we’re bored. Because honestly, as your parents, we never have time to be bored. I wouldn’t mind that, though.

3. We hardly ever go out to eat. By hardly ever, I mean, on a bad month, about twice. While the documentaryFood Inc. conveys a message that a family of 4 can eat for less on McDonald’s Dollar Menu, that’s not accounting for the fact there won’t be leftovers the next day. Shunning restaurants saves money.

4. We don’t update our electronics or possessions that cost over $100. My iPod has a cracked screen and its charge only lasts about 2 days. The screen of our 2006 model TV is only 30 inches wide, yet the length of it is nearly just as long. Oh yeah, and it’s been struck by lightning, so parts of the screen are discolored. Mommy and I have had the same cell phones for well over 2 years, but because Verizon recently started charging an “activation fee” for their “free phones,” we decided to just keep our old ones. In other words, if it ain’t dead, don’t fix it.

5. We live by a strict weekly budget, on an Excel spreadsheet. Like financial guru Dave Ramsey says, “If you don’t tell your money where to go, it will tell you where to go.” It’s impractical to account for every dollar spent, but knowing that we are projected to reach “debt free” status in 2013, I don’t mind living an impractical lifestyle.

So what if we shun credit cards and cable TV like the plague, or perhaps more relevantly, like high-fructose corn syrup? Mommy and I are obsessed with telling our money where to go.

We’ve learned the hard way. Just a couple of years ago, our money was telling us where to go. As for 2013, Lord willing, we will finally be free of debt.

Somehow, becoming debt-free is one of the most practical things I can think of.

 

Love,

Daddy

3 Comments Posted on Nostalgia, People, Uncategorized

The Modern Day Tortoise

 

The principle of “working smart” is often seen as the shaggy, scruffy twin brother of “working hard”. Working Smart isn’t actually lazy, it’s just that he earned an online Master’s degree in time management and puts it to good use. He’s good at not wasting his time on daily goose chases, but stays consistent with the mundane tasks plus gambles on high-end pay-offs on a constant basis. I am a self-proclaimed Smart Worker. That doesn’t mean I don’t work hard; it means while I’m working I may not look busy, but I still end up being just as productive (if not more) than those who look busy while working.

I see the fable of “The Tortoise and the Hare” as a visualization of Working Smart vs. Working Hard. The tortoise isn’t bothered by the hype around him; he stays on the steady path. He knows the importance of patience. He keeps his eyes on the prize as his competitors burn their best energy on passing him. And later on when they grow tired or bored, his consistent progress wins him the prize.

As Dr. Phil says, “you do what works for you.” I have been Working Smart, not hard, my whole life. It was officially 1992 (5th grade) when I realized I wouldn’t actually need math beyond basic algebra, or science beyond a baking soda and vinegar volcano, since I knew I’d never want to be an engineer or doctor. I also noticed that though I had never studied for a spelling test, every week I got “105” for my score (I always got the “challenge words” right too) and that my Reading and English classes required little effort, yet those classes challenged me in a fun way. Instead of trying to be an all around great student, why not just focus on what comes easy for me and get by on the other stuff?

Stress causes cancer, heart disease, and loss of hair. Working Smart involves avoiding unnecessary stress when at all possible.

I was the dreaded nightmare to school officials when it came to those yearly standardized tests to measure the school system’s progress; I only tried on the English and Reading sections because they entertained me. For the rest of the subjects, I either marked “C” or made a cool diagonal design down the Scantron. Then I just daydreamed afterwards. Because it didn’t effect my personal grades and I knew it. I had proven my true intelligence by knowing not to worry about a Communist test that couldn’t hurt my individual grades.

When it came to gym class, I Worked Smart too. Dodge Ball was my favorite. While all the aggressive kids ran out to the front lines when the game began (and got hit right away) and made ballsy moves like attempting to catch the opponent’s ball in mid-air (causing a higher risk of getting out if they missed the catch), I just walked around, looking busy in the back row. Ten minutes into the game, I would actually start playing. And that’s when I got aggressive. I usually at least made it to the Top 5 every time because by that point most of the biggest threats were already out of the game. Tortoise vs. the Hare. Working Smart vs. Working Hard.

When I chose my major in college, I obviously ended up being an English major. (Enter joke here that I earned a “B.S.” in English.) My first couple of years of college I got by with B’s and C’s, because I was forced to take Science and Math classes I would never use.) But I ended up graduating on the Dean’s List. Why? Because my senior year was nothing but “400 level” English classes. Nothing but my specialty. So of course I’m gonna graduate on the Dean’s List my senior year of college when I only do what I’m good at and love.

I knew that unless I wanted to work in a specialized field (like being a lawyer or banker) that my English degree would be general enough and well-rounded enough to help me get a decent job. And my plan worked. In a general sense, what I do for a living is hire clients looking for a job- a sort of staffing agency. I have a quota to meet every month. This has been my job for the last 3 ½ years and for almost every month, I’ve had the highest numbers in my department. In fact, last month I had the highest numbers ever of anyone in the recorded history of our company.

And it’s not because I’m “the best” or “really good at what I do”. It’s because I work smart. I learned the art of personality mirroring: I mimic the pace, accent, and amount of aggressiveness of the person on the other end of the phone. I look for red flags that indicate a client would be a dead end for me and if that’s the case, I get off the phone as soon as possible so I can be available to talk to the clients who are most likely to be a fit. I am painfully truthful about the pro’s and con’s as I talk to clients. And they notice it. That builds trust. It’s a formula I follow. Follow the formula and the equation will work itself out.

I see life in a unique way; there is no gray, only black and white. Either something is, or it isn’t. My subconscious has directed me to Work Smart in all I do. Every day as I drive on I-65 to work, there is a two mile stretch on the interstate that slightly curves to the right. I stay in the “slow lane” going about 67 mph, while all the drivers who want to go fast stay in the “fast lane” travelling at about 80 mph. But since I am in the inner lane, I stay parallel to the “fast” cars for the entire two miles, yet I don’t risk my safety by breaking the speed limit on a curve.

A Smart Worker is to always keep a high-end pay-off project on the backburner; a passionate hobby that one day could make income on the side. For the first 12 years of my life, I wrote and illustrated stories. For the next 13 years of my life, I wrote and performed songs. And since I’ve stopped doing that, I started writing non-fiction.

For me, I can’t escape a lifestyle of Working Smart. Looking back, it’s why I hardly ever dated in high school and college- I Dated Smart. It’s why I’m on the Dave Ramsey plan for finances (every dollar is accounted for in a budget, are credit cards are the devil) – I Spend Money Smart. It’s why I’m so strict on what I will and will not eat- I Eat Smart. It’s a matter of focusing on what is best for future, not the most fun at the present day. But a future that is better planned for, will eventually make a better present time.

I should never be a motivational speaker for school kids on this subject, granted. Just the idea of “working smart, not hard” is offensive or misunderstood by many. Working Smart isn’t superior to Working Hard, but it is my way of life. I know no different. I get bored and uninspired when I Work Hard. It seems to work for a lot of people though.

The truth is, the world is full of people who Work Smart, not hard. These are the Mark Zuckerberg’s (who created facebook at age 21 and now at age 25 is almost a billionaire) of the world.

I choose to Work Smart:

1) Focus on what comes easy and exploit it. And just BS through everything else.
2) Time is more than money- time is life, so spend it wisely on what matters.
3) Less stress equals better quality of life.

2 Comments Posted on Storytelling, Uncategorized

Pickles Make for Good Reading Material- Episode 3

At some point in most people’s lives, they receive an unlabeled manila envelope in the mail.  They open the envelope only to find an unmarked VHS tape.  Then they struggle to find their VHS player underneath a bunch of stuff in the junk closet.  They play the tape.

A sophisticated man in a tweed jacket with a pipe tucked in the pocket introduces himself.  He explains to the viewer that also in the envelope is a check for $50,000.  The catch is that the money has to be spent within one month and it can’t be used for charity, vehicles, electronics, clothing, Internet investments, advertising for the intent of profit, food, home repairs or upgrades, education, medical bills, or gifts for other people.  The man in the video admits that he really liked the 1985 movie Brewster’s Millions which he is basically stealing the concept from, just on a smaller budget.

 

 

When that day comes in my own life, I have already decided how I will spend the $50,000.  Though the rules clearly stated I can’t use the money for advertising with the intent of profit, it didn’t mention advertising with no intentions of profit.  I would purchase “deep thinking” billboard signs.  The content of the sign would be designed to encourage deep thinking and healthy conversation for passers-by.

 

 

The first idea I have for a billboard would be one that said, “There are 3 words in the English language that end in ‘gry’.  ‘Hungry’ and ‘angry’ are the first 2.  What is the third one?”  This is a riddle someone got from an e-mail forward back in 1998 that they read to me.  After several years of trying to figure it out, I realized that there must be no 3rd word.  So that would probably make a pretty good billboard to keep people’s minds going.

 

 

I have mentioned before that I want to punch teenage boys in the face that wear those annoying, pointless, attention-grabbing t-shirts that can be found in the $9 section at Wal-Mart.  Smart Alec comments like “I’m out of my mind.  Be back tomorrow.”  Or the shirt that has a camouflage design but has neon orange letters that say “You can’t see me”.  However, there are some I made up that would work pretty well on a billboard.  To be driving down the interstate, and see a billboard that reads “What?”  Or “You tell me.”  That would be alright.

 

 

But my favorite billboard to try out would be one with a giant pickle where the middle had been hollowed out with a knife.  The caption would read:  “Welcome to Pickle Holler.”  This would cause people to engage in a healthy debate with others in the car.  Some would say it means that they are passing through a country neighborhood called Pickle Hollow but because of the cultural language difference the word “hollow” is pronounced “holler”.  Others would realize that the picture is a play on words because the pickle has been hollowed out.