I've mentioned before, I'm a huge fan of the NFL's New England Patriots. (Stick with me a bit non-football fans.) At least one day of the week, you will find me my "Do Your Job" shirt. Quite honestly, I consider the team to be the best run organization in the United States... and possibly the world.
That may sound like exaggeration, but I submit this Tweet as strong evidence:
As you can see the Patriots were 9.5 underdogs (Las Vegas thinks they are going to lose badly) only 6 times this millennium... and they responded to this extremely rare situation by winning 5 of them. Last night's win was the latest example of them performing the feat.
I remember my second year, I was doing a cold tub at like 12 o’clock at night, at the facility, just happy to be on the team. Coach was there on the treadmill watching film, and we just so happen to walk out at the same time.
So I ask him, ‘Coach, it’s pretty unbelievable you do this all the time.’ And he goes, ‘It beats being a plumber.’
“Nothing wrong with plumbers or anything, but you know, it’s unbelievable.
I can recall Belichick being quoted saying a similar thing at least a half dozen times.
When you read my About page, I have four points for why I picked the "Lazy" adjective. The biggest reason is my slogan, "Making my money work, so I don't have to." (Shhh: I'm redesigning my site with this as my tagline like it was years ago.)
However, one thing that I've overlooked is that there are different degrees of "work."
For Bill Belichick, plumbing is a very bad kind of work. Personally, I'd go with heavy construction as one of the worst. On the other side of the spectrum, Peter Gibbons trades his office job for construction and he seems to love it.
Sometimes, I can understand the appeal of being a fast food restaurant worker. I wouldn't want to do it long term, but I can appreciate working rotely for some time. I often joke with my wife that I wash the dishes 7 times a day not because I like a clean sink, but because I like to give my brain a rest.
This meandering word-soup has brought me to two conclusions:
We may be able to agree that there are different levels of "work." We might even generally agree that some work is more unsavory than others. However, there are also some outlier exceptions for some people.
Money is the great equalizer when it comes to work. If you have enough money, you can quit anything that you consider "unsavory work" and do that thing you love within reason. (I had to add that last part because "Patriots coach" is already taken... and I'd be terrible at it.)
I'm starting to see the difference between "early retirement" and "financial freedom." The first can be thought of as "not working." The second can be thought of as "having the ability to choose your work (or not.)"
I shouldn't go into the biggest event, but I'm nothing if not transparent. Plus, I can't resist...
There's a bit of a fight going on with my wife's military benefits between the Department of Health and Human Services and the Department of Defense. I believe The Health and Human Services is right by the letter of the law they cited and we should receive the benefit. (Of course I'm going to believe that, right?) The Department of Defense is right in the practical case that it would come out of their budget.
It is a significant benefit in that is a completely life-altering change for us. I have enough trouble fighting MLM companies, so I'm going to let the Department of Defense slide just this one time. We were kind of singled out and if I were to fight it, there's a chance that they'd apply the policy to thousands of families rather than just a few.
Anyway, let's move on.
Last week was also crazy for another reason. It is probably more accurate to call it awkward.
It seems that helping consumers avoid financial pitfalls can get very expensive to me personally. I had no idea that Freedom of Speech/Press seems to apply only to the people who have tens of thousands of dollars to pay lawyers for long expensive trials. I imagined it was something like The People's Court or Judge Judy where I could simply show the court that I really care for people and that I've done the best research I can to help them. I figured that the judge would take a quick look, reprimand the bullying company, and throw it out of court in about 8 minutes. (Maybe 13 minutes if he or she wanted to lay into them for their behavior for wasting tax payer dollars by bringing it to court.)
That's not how it works at all. The cost of fighting a single lawsuit can easily be $100,000 or more. Heck, the NFL's lawsuit against Tom Brady to confirm a DeflateGate suspension has already run an estimated $20 million dollars. Imagine how much good you could do in some third-world countries with some of that kind of money?
When I plan our finances, I had made reasonable allowances. I know where the money for our mortgage and cars are going to come from. We live very frugally, so the other expenses are very minimal. Just as importantly, they haven't changed much over the years other than the addition of two children. While that sounds like it would be expensive, it hasn't been. Their grandparents have bargain-hunted to get great clothes at pennies on the dollar (Thanks Mom!). They don't eat much food (even though we try).
We know what things are generally going to cost if a water heater breaks here or there, it's no big issue. The emergency fund that we had in place is great and it covers us whenever there's a reasonable emergency expense.
Ironically, planning our finances so well can lead a financial difficulty. Let me explain.
I write my opinion of what I believe to be scams for the same reasons that Ethan Vanderbuilt states here. He explains it much more eloquently than I ever could, but he doesn't like to see people's entrepreneurial hopes turned against them.
Educating people on how to avoid those pitfalls is very important to me. A few days ago, a fellow blogger, Joe from Retire by 40 wrote about finding a meaningful life after retirement. I'm not retired, but my focus on educating people about scams is a huge part of finding a meaningful life. The emails and comments I receive from readers who thank me show me that I'm really helping people. Whether or not Le-Vel is a scam or what anyone's opinion of it is, the testimonials I've received for the Le-Vel article are extensive.
"Let’s keep this alive, because I’m guessing after 10 years you have saved people a whole lot more than what you are asking for in this pursuit of keeping your first amendment rights, and I’m grateful that you are willing to put yourself into the line of fire so that we have the opportunity to see the WHOLE picture."
For some reason, the awkwardness didn't go away. Instead it was replaced with questions:
The Thanksgiving Day article is always the most difficult article I write every year. I've always been uncomfortable publicly talking about how well I have it. Many others in the United States do not have it so well. And the percentages only get worse when I look at it from a global scale.
I have an awesome wife and the proverbial 2.5 kids (though I count our dog as full kid, we'll give him half credit). We have an exceptional degree of financial freedom and no health problems (knock on wood).
Professionally, I get a lot of satisfaction helping consumers with their finances. This year, I had many bloggers tell me that my website inspired them to not only take control of their own finances, but go on to influence millions of other people. Pat from Smart Passive Income seems like he's going to be CEO of the online world someday. I remember when he was writing for eHow trying to make a few bucks on the side. Phil Taylor of PT Money said that I influenced him when he was starting out. He's only went on to become the creator of FinCon, a conference that brings together over a thousand bloggers and financial company representatives each year.
As Hiro Nakamura in Hero's Reborn might say, "So many butterflies from one blog..."
Nowadays, my interest is in helping people retire early and saving consumers from getting scammed (with a special focus on MLM/pyramid schemes.) Traffic to the website this year just passed 2 million page views, which is a huge amount of people. I'll expand on this in the year-end review, but the macro-economics of advertising in online publishing are way, way down.
And that leads me to the final thing that I'm thankful for. There's no non-pandering way to say this, but it's you, the reader. I'm thankful that you keep coming back (and bringing friends). So let's close out this holiday strong and blast into the new year.
I'm also thankful that I'm not waiting in long lines for anything. I may pop into Old Navy which is having a 50% off sale on (almost) everything in the store. I could use a pair of new jeans. I've been scouting the online deals, but the best deals like Amazon's $35 Fire Tablet and Amazon Echo are products that I already have or don't need.
I have a friend who I think crossed the territory of "I've known him longer than I haven't." That's actually a paraphrased quote of his, but I'm stealing it, because it is awesome. We were on a road-trip recently and he asked me:
"So What Do You Actually DO everyday?"
He knows I'm blogger. It's kind of an usual job and I understand that people find it interesting. I don't remember if I went straight into the explanation, but if I didn't, I hope I pointed out that no one in 15 years has been able to figure to out what he does. He doesn't help his case by saying that doesn't know sometimes. (This is all a joke, because he's a manager of a very specialized division of a highly profitable tech company.)
The strange thing is that I didn't answer about anything related to blogging. I started off with getting the kids ready for day care... and picking them up. There are 2-3 dog walks in between. There's cooking dinner and lunch. I probably didn't mention laundry... I'm not sure my wife fully trusts me with that chore, but launder the safe stuff sometimes.
I also grocery shop at 5 different stores, which was a post ironically inspired by this very same friend. This sounds like it would take a lot of time and be very wasteful on gas, but they are mostly a couple of blocks away from my house. I am very efficient in grabbing staples from them and can get in and out of them in 45 minutes. It helps that I'm able to shop in off-hours when the stores are empty.
It also helps that I'm able to keep a database of great prices in my head. I can usually save 30-50% over what it would cost me if I did my shopping at the local Stop and Shop.
Oh and I mentioned the siesta. I usually wake up around 6AM, but today, I've been up since 4:30. Going to sleep around midnight means I nice little siesta of 45 minutes in the middle of the day. It is my favorite perk of working for yourself. I can't tell you how great it is to be able to work refreshed in the middle of the day.
So while I may have sounded extra lazy with the mention of a siesta, overall, I probably get by on less sleep than most people.
And this is where the conversation moved to another subject. Looking back at my answers, I probably sound like I live up to my name.
However, there are a few things that I probably should have mentioned. I think he knows them, but they certainly make a huge difference:
My wife works (4) 10-hour days
This means she has Fridays off. Blogging allows me to create my own hours. I'm going to be working extra Monday through Thursday to be able to take some time off with her... even if it is just doing errands. I effectively have an extra weekend day, but I also have to get the same amount done in less time.
Rental Property Duties
We've got three rental properties and no property manager. It's not like something is always broken, but it can feel that way. Add in primary residence duties and it is pretty significant.
I write articles. I write a lot of articles... more than readers here know. Some articles are quick and I can get them out in an hour. This one is probably going to come in at 2.5 or 3 hours. I think my blog post on Nerium took more than 20 hours.
The average reader can see that and get it. What the average reader doesn't see is all the stuff behind the scenes. It's like an iceberg where you only see the tip. There's so much more going on behind the surface. I've covered a lot of them back in 2007, but here's just some of the things that I have to deal with.
I'm the bookkeeper. I'm one who negotiates with advertisers. I'm the marketing manager. I'm the networking guy, making new relationships in hopes they pay off down the line. I'm the technology expert. That includes understanding how search engines work, to social media, to coding HTML and PHP. I even run my own Amazon Web Services server where I put on my Linux sysadmin hat every now and again.
I'm doing all this and keeping up with dozens of email inquiries every day. I'm doing all this while trying to read dozens of articles a day, which gives me inspiration to write new material.
I deal with lawyers. Oh do I deal with lawyers. I've got 4 of them working on various aspects of blogging, but I'll get to that in a little bit.
In short, the "blogging thing" is running a company from top to bottom. It may not be the best company and I may not be the best at all parts of it, but I've always loved doing different things. I get bored doing just one thing, so this works for me.
Here's What I Don't Do
This past weekend, I met up with an old friend and he asked what I did. I used to respond that I'm a software engineer, as I would view myself that way, but lately, I've just being saying it, "I'm a blogger."
It's a little like how my wife and I would talk around how we met. We met online in 2004. That was just something that did not happen. The news interviewed us for how unique we were. The stigma was that you must both be such damaged goods you couldn't meet in the physical world. A decade later, I wonder if people meet any other way.
In 2006, being a blogger was weird. In 2015, it is much less weird. In fact, most people find it very interesting as I said at the outset.
This friend's response was, "Oh yeah, I heard you disparage companies."
My first thought was: "Oh eff-no."
My actual response was something like, "I aim to help people find financial freedom by saving and investing in 401Ks, Roth IRAs, real estate, and other business ventures. I also expose MLM/pyramid schemes because they directly harm more than 99% of the participants from achieving this."
It wasn't that well-worded... a martini was involved.
I had to look up "disparage" when I got home, because I wanted to make sure I got the connotation right. I originally thought my problem was with the word "disparage", but it is fairly accurate. My real problem is with the word, "companies." While Enron and Bernie Madoff's company were technically companies, they earned all the "disparagement" they had coming to them as they were probably best described as schemes.
If you are running a company and making money by providing a helpful product or service to consumers, I'm generally cool with you. I've written about dozens of these companies, from Fitbit to NutriBullet to Aldi grocery stores.
If you are running a company that is trying to make money via some kind of scam or confidence trick, I'm going to call you out for it. Consumers deserve to have access to the information and make their own decisions.
I realize this post went in a few different directions. I don't often like to talk about my motivations for what I do or even how I do it when it comes to blogging. I don't think that's the interesting story. It's like a reporter talking about his daily process for chasing leads. I don't think the public wants to read a lot of articles about it.
Sometimes it is interesting to get a behind the scenes look. However, most of the time, I just want the actual story and not the details about how it came about.
This article is going to be emotional and strongly worded, so if you arrived here for a daily dose of personal finance take that link and run... or just close your browser window. I'd for you to come back tomorrow.
I couldn't look either of my sons in the eyes today. I tried. At the ages of 1 and 2, they knew something was "different", but they didn't know what.
Jake, my dog, gave me a kiss. When he was puppy, I got kisses regularly. Now he doles them out... as necessary.
It was necessary today.
I got my sons dressed. The youngest hasn't developed a passion for fashion. The oldest is very picky about wearing a dinosaur, an octopus, or a robot. Today we'd wear "star man" and we'd count... "one... two..."
At first he didn't understand, but today it was important that we all "matched." Even "Bubba" (his name for his younger brother) "matched."
When I brought the kids into day care, I was greeted with the words, "Well played." For the first time in 12 hours I cracked something resembling a smile. She didn't know it, but that's a catch-phrase of one of my best friends.
I am very lucky, my kids are very, very young... I don't need to explain it. They don't even know it happened. They'll surely ask me about it later. Later is great... I hope to have answers then. My heart goes out to all the mothers and fathers of 8-10 year olds today.
I've danced around the "it" for long enough.
"It" is the end of competitive sports.
I love competitive sports. No blogger ever harnessed their adrenaline to say, "In your face!" My wife, as a pharmacist, doesn't have those moments either.
Sports gives us that. Or at least it did...
Today competitive sports died... and a judicial system died with it...
I don't know how to explain to my sons that Tom Brady was suspended for suspected cheating.
How do I say:
It was a witch hunt to cover up the sting operation which lead to a biased "investigator" to ignore evidence to conclude that some part-time Patriot employee might have done something that they think Tom Brady might have been aware of?
I hoped to cover all this in this article, but I am too emotionally drained to do it now... I'm going to instead link to and quote relevant material to back it up.
And these two things were before the penalty came down. I have 23 browser tabs open about that.
I know some people will say that I'm a homer.
I'm fine with explaining cheating itself to my kids. I was Mark McGwire's biggest fan. I may one of the biggest baseball card collections of him in New England... but I stopped collecting in 1993. This was long before the home run records or steroids.
That's easy to explain.
I can't explain a ruling based on the lack of evidence... I can't explain how we penalize someone for what they were "generally aware of" when there is no definitive truth that it happened.
I have no answers when they ask:
"Wasn't this the guy who suspended Ray Rice for only two games for knocking his girlfriend unconscious in an elevator? Is being suspected for something really worse than that daddy?"
"Wasn't this the guy who gave a warning when teams illegally warmed up balls? What's different here daddy?"
I'm not saying that sports personalities should be role models, but let's be honest... they are. It's part of being famous. If there is one sports personality you'd want your kids to emulate, wouldn't it be Tom Brady? You may not have the best talent... you get drafted in the 6th round... you work hard and it results in unparalleled success... you make millions and marry a super model...
The NFL wants to end this story with (paraphrased), "and we think he might have talked with someone who might have done something that we aren't sure of... hence he's guilty."
This is the same league that is getting hammered from health advocates about concussions. It is the same league that spent the last year explaining the domestic violence issues (which is nothing new in the NFL). NFL, you really want to go after the best example of sportsmanship in the game... perhaps all of sports? Wow.
Yesterday, the NFL showed that there is no justice in the world. They've essentially said, "We are the judge, jury, and executioner... and we hire the people to give us results that make us look good."
Over the past 8 years, I've made a lot of calls here. Some have turned out very good (buying Facebook stock under $20) and some not so good. Then there's a whole other level that's 5 miles below the not-so-good, that's downright ugly.
It's not always to admit it, but sometimes I just have to count how many eggs I can fit on my face.
Yep, so that's a 40% loss of money. I feel like I should probably have some kind of reaction to this as it isn't typical. I'm trying to feel something (other than empathy for the Russian people). On the investment level, I'm thinking, "It's in a retirement account that I don't plan to touch for 30 years. I am fairly sure the country will figure it out by then."
And then I used dollar cost averaging to buy more shares during yesterday's collapse. That made me feel something... made me feel quite a bit. I got anxious. Here's a country in a perfect storm of having half its economy (oil) drastically devalued. It's getting trade sanctions from the US and Europe for their handling of the Ukraine situation. The Ruble has fallen faster than Johnny Manziel's career. (Too early? Should I have gone with Tim Tebow?) And I'm fairly sure they haven't recovered from Rocky beating Drago in 1985.
I'd say I summoned all my chutzpah to make the move, but it was probably closer to my stupidity. And where it goes from here will be dependent on factors I don't control and luck. (This article is not turning into the pep talk as I had hoped.)
It's interesting to look at the markets as I wake up today. In 24 hours, the ETF has been up around 10-12% from where I bought yesterday. It isn't nearly enough to wipe out the losses, but I'm now "only" about a 20% gain from breaking even. If they right the ship even a little bit, I think they could get there fairly quickly. If it were possible to get Putin to swallow his pride and work out some kind of deal with the Ukraine, the stock would probably skyrocket. I'm not holding my breath waiting for that one. And things could still take a turn for the worse.
Today there's something even more than Russia interesting on my short 15-stock list. Remember when I wrote, Should You Invest in Frontier Markets? It seems the answer to that question should have been, "Not right now..." It's down nearly 10% today. That's fairly surprising for an index fund that is diversified in a couple dozen countries. It is highly weighted towards Quwait and best I can tell they found some new oil there. You'd think that would be a good thing, but in a world of cheap oil, perhaps the last thing need is... more oil.
This should be a great lesson in diversification. Even diversifying across many countries can fall victim if one commodity, like oil for example, plummets. The other lesson is that, although I spent over 500 words writing about these two holdings, they combine to be about 3% of my investment accounts... and far less in terms of net worth.
Diversification taketh away, but diversification also giveth. I like it a lot better in that order.
The last few weeks have been interesting. I've seen money problems from two very opposite views. I apologize in advance if this article is a little nebulous, but it hits a little close to home.
In one case it is the very typical money problem that most people have... not having enough of it. However, in that situation, money is unfortunately problem 3rd, 10th, or 342nd on the list. In fact, it's easier to talk about money because it is a problem where I can provide guidance. It's the larger intractable problems ahead of money on the list that I can't. Yet, money is still a problem and I wonder if it was a source of those larger problems.
It would be interesting to pull a Mr. Destiny and see what would happen if some of the money issues were solved early on.
Sufficiently confused? Good.
Let's move on to the second situation. This one is even closer to home, because the money problem is with me. Maybe more specifically it is with this blog.
There's a perception of someone who has spent the last years writing about money. It seems like everyone around me thinks I focus my life around money. To some degree, they aren't entirely wrong.
However, if you just met me and didn't know I write this blog, you probably wouldn't have that perception. I'm really not into money as much as it may seem. I'm into the thing that money buys: love freedom. Money buys a roof over my head and Sookie Stackhouse on my TV. It buys someone cleaning my bathroom, which undoubtedly helps me avoid some unpleasant discussions with my wife.
It also buys me the freedom to look at a potential loss of a thousand dollars and say, "Hey don't worry about it." I said that a few hours ago and I'm hoping that the person close to me reads this and understands that it is really how I feel despite a perception that I'm focused on money.
It's been quite a ride this parenting thing. It's amazing to watch as they pick up new skills. The ability to smile, the ability to hold their own bottle. Our three month old just found his feet and his tongue. About one year ago, my 7 month old son discovered something new in the house though it had always been there. He discovered the television. He had seen it before, but only when positioned just so and with Baby Einstein on it. Never with the television shows aimed at the general audience.
If it was a few hours earlier, he would have seen the Red Sox hit a game winning double and Fenway park rock out "Dirty Water" by the Shandells. Unfortunately, it was the news covering the Boston Marathon Bombings. I'm sure he had no clue what he was watching and he's already forgotten it. I haven't.
A week later we had to drive to Children's Hospital for the most minor of surgeries. We had the earliest appointment which had us up at 4AM. Normally, I wouldn't have checked television or the internet, but for reason I did. The news was reporting that the Boston bombers were in a chase throwing bombs out their car. We didn't know if the hospital would keep our appointment, but we went in anyway as if it was a typical day. The entire region got shut down for most of the day while the search for the Bomber went on in Watertown, the town where I got my first driver's license. We weren't allowed to leave the hospital for hours. At some point, they took pity on us and let us get back to our dog, but only after the police conducted a thorough search of our car.
I'm sure there are hundreds, maybe thousands affected by the bombings that wish they had such stories that barely can be described as inconvenient. Nonetheless that's my story.
It's hard to imagine a bright side from such a tragedy. However, I think tragedy brings out the best in people. It galvanized not just Boston, but all of New England. The manager of the Boston Red Sox gives credit to it helping them turn a last place team to World Series Champions. I have to watch this video every few weeks to remind myself that it really happened:
Even if you hate sports and the Red Sox the video is worth watching.
Today, thousands of people will run the Boston Marathon. It has always received some national coverage, but it has never been what it will be today. Every television station will cover it. Every newspaper will write about it. This blogger has written about it. As President Obama said last year at this time, "the world will return to this great American city to run harder than ever and to cheer even louder for the 118th Boston Marathon."
This past Wednesday, my wife and I earned new titles: Mom and Dad. For the last several days, I've been thinking of what I'd write about it. It's such a momentous occasion that I figured I'd have an equally momentous, insightful, article about it.
What I do have is one observation that I hadn't heard in the millions of nuggets of information passed to me over the months...
Becoming a parent is amazing... no shock there. However, it is predictably amazing, which I think is unique experience. Maybe it's a lack of sleep, but I can't think of anything else that's so predictable. We had a full nine months of preparation. We had many friends go through it. Billions and billions of people on Earth have gone through it. It couldn't be more natural. At the same time, if all is going well, the end result is completely predictable... ten fingers and toes, two eyes, a nose, and some other anatomical stuff.
If anything comes up that's a surprise, it's a bad thing. There are no pleasant surprises. No baby comes out singing with perfect pitch or throwing perfect spirals. Yet, they are still amazing.
I'm sure everyone has something unique that they noticed about their baby. It's our first, so maybe all babies have this. However, we noticed that in the beginning stages of his cry for attention sounds very much like Peter Griffin's version of Axel F:
I realize that up to now, I've got nothing related to money in this post. I can't leave it at that. While on zero sleep I think I figured out a big issue with health care billing in the United States. I went for a TDAP vaccine booster and flu shot. The TDAP is a simple tetanus, diphtheria, pertussis vaccine. Pertussis (whooping cough) can be dangerous to kids, so they advise anyone with close contact to the baby to get it.
I called up my health doctor and told them about the baby and that my wife's doctor recommended I get it. My doctor agreed and scheduled me to come in. While there, she offered to give me a flu shot... seemed like a great idea. The two shots were administered by some kind of nurse's aid (if the girl was a day over 22 I would be shocked) with no doctor present (the doctor came in earlier and asked a couple of basic questions). The office visit, less than 15 minutes long, was billed to my insurance for $369. A quick internet search shows that flu shots are $30 at CVS, making the TDAP a $339 shot according to the doctor's office. My insurance decided to pay $196 of it, which the doctor's office took as payment in full.
The mark-up on the visit was incredible. A look at the this website suggests that the TDAP should have been $30. One wonders why health insurance prices are going up. Perhaps it's because something that should have cost less than $60 was billed for $369 and settled for $196. At the very least you'd think that my insurance should be able to negotiate a better rate than CVS offers the general public.
Yesterday I learned exactly how much an hour worth of work is to me. This is very important. When Energi Gal says that I'm not doing my share of the cleaning and suggests that we get a cleaning lady, I can figure out if this is really worthwhile to me. Today I'll look at Stage 3 in the plan, building my own budget. This is not going to be my favorite stage as I don't like to count each dollar going out. I just evaluate whether I need to spend the dollar or if the value that I'm getting for that dollar is worthwhile.
These days are very similar so, I'll combine them. I am supposed to allocate hours for living expenses, debt, and goals. The Simple Dollar recommends that I do it by the week. Unfortunately my living expenses is by the month (see my living expense information here). So I'll simply multiply that by 12 and divide it by 52. That means my living expenses are $343.52 a week. That allows me to figure out how much of my work week is spent towards expenses. I can't go into exact details without giving out my income. It's worth noting that the two goals from this day are motivational and psychological. Neither are much of a factor for me as I take an analytical view.
Today, I'm supposed to look at ways to reduce my expenses. Unfortunately after going over each of the suggestions there isn't a place where I can save. This comes as no surprise to me as I've read many articles on how to save money and there's not a lot of fat to trim.
In day 10, I look at the money that I saved in day 9 and note how those savings can get me closer to my original goals. Unfortunately, I was unable to come up with any savings, so my goals aren't taken any further.
There are three things from this day that really stuck out for me. The first is thinking about purchases at time spent instead of money. Specifically, "Money comes in, money goes out, and that's life. The truth of the matter is that every dollar we make is the result of some amount of time spent doing something for someone else."
The second thing of note is the "debt snowball." I couldn't disagree with this method more. The fastest way out of debt is to apply the payments to the debt with the highest interest rate. Some say it's best to pay off the smallest debt first, because it gives a psychological lift. I say, break out a spreadsheet program and calculate your debt. Calculate how much it will expand to next month if you made no payments at all. Then do the math of making a payment on the smallest debt and the one with the highest interest rate. You'll find that you can magically save money this way. It's a small accounting trick, but it should give you the same psychological boost - perhaps even more knowing that you moving toward your goal faster.
The third is my own little vice. I pretend that I have no debt, and thus could put all my money towards my goals, when in reality I have a home equity line of credit (HELOC). I play a little arbitrage game investing in Prosper earning interest rates that are more than my HELOC. The gains probably don't amount to much, but I am putting significant money towards the HELOC. In terms of getting closer to my short terms goals, one of my biggest ones is to get the "To Go" column of my Alternative Income (see box in the top left of the page) to $1389 by October of this year.
This is the day where I'm supposed to construct my true budget. I think in all the conversion of hours to dollars, I lost some of the meaning. I'm not a very strong budgeter to begin with and the conversion makes it that much more complicated.
I enjoyed this particular quote: "Maybe you realize how much of your life is spent in the 'now' and how little you're actually spending for the big things tomorrow. Maybe you believed you were planning well for the future, but you see some huge areas for improvement." If anything I've found that I'm planinng more for the future and didn't find a lot of areas for improvement. Then again, because I write about this stuff and lived it all my life, it's not surprising.
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