Lazy Man and Money

Boston, Snow, Guitar Hero, Casinos, and Personal Finance links

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My wife and I are wrapping up our trip in Boston today. Tomorrow we are on the road back to San Francisco. We had reservations to go to CBS Scene (I hear it’s similar to ESPN Zone), but the 6-8 inches of snow has put those plans on ice (excuse the pun).

Yesterday, we used up the last of our Circuit City gift card to get a complete Guitar Hero set (guitar, drums, microphone, etc.) I had to think a couple of times about it because we hadn’t planned on spending the nearly $200 that it costs. Even after the gift card, it was an $150 unplanned expense. We have the money, so it’s not a big deal, but I still like to research such purchases more. I only know that many, many, others seem to like it and it could be good entertainment if we have guests over. There are three Tool songs – so that will be great fun. We just have to figure out how to transport it back to San Francisco.

We went to a casino on Thursday. I know it’s not typically a smart use of money. I am a very conservative craps player and never lose much over the time I’m there. My wife and I gambled for 5 hours. She made $15 and I lost $15. I can’t complain about that.

We are pretty happy about the cost of this trip to Boston. We used frequent flier miles that my wife got from her work travel. We rented a car for around $30 a day using military discounts. We stayed at Hansom Air Force Base for $38 a night – it’s as good as places I’ve paid more than $100 a night for. It comes with a fridge and microwave, so breakfast was Lean Pockets from the commissary for about $1.25 a package (two breakfasts per package). So not including entertainment and gas to visit people, we spent about $500 for the two of us for the trip. I hope this doesn’t come across as boasting, but I hope to illustrate how it’s possible to take advantage of opportunities our situation. You may have similar situations.

Money Writers:

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I was also included in these two carnivals.

Can You Plan for Unexpected Expenses?

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When I think about the unexpected financial expenses the first thing that comes to mind is emergency funds. Most of the experts agree that having 6 months of income set aside for a financial emergency is necessary. In my head, that financial emergency is almost always the loss of a job. Perhaps that’s because I’ve been there when I lost my job in the dot com melt-down of 2001. (In many ways, I think that’s where the “work smarter, not harder” attitude of Lazy Man was born. I had worker pretty hard and rose up the ranks in the company – until the company was bought by another. All the social capital I created was worthless with the new management.)

While job loss is certainly a very valid reason to have an emergency fund (especially so in today’s economy), lately I’ve been thinking about bigger problems. What about health care? I have very good health insurance, but many aren’t so fortunate. What if my mom’s health care is lacking and I have to take care of her? What if my brother hasn’t listened to me about getting life insurance to ensure that his two newborns are provided for in the Worst Case Scenario? These costs can transcend the costs of 6 months of income.

Perhaps I’m becoming a worry-wart, trying to figure out all the ways that my hopes (and plans) for early retirement won’t be derailed. I can’t possibly cover every scenario, can I? I can’t have insurance for every possible occurrence, right? Yet, accepting defeat doesn’t right either. There are people who can withstand unexpected expenses.

I’m starting to realize that I not only have to plan for the security of myself and my family, but I have to plan for others as well. Does anyone else spend time thinking about this before it happens or do they simply react after the fact?