Your Real Wage

April 30, 2009 4 Comments

"Empty Pockets" by National Collegiate Scouting Association @ FlickrWhen someone asks you how old you are, the answer is simple.  All you need to do is figure out how long you have been alive.  You may have heard of the website Real Age where you can calculate “the biological age of your body, based on how well you’ve maintained it.”  Based on this information, your body may actually be younger or older.  It is an interesting idea to the concept of age and it makes a lot of sense.  If you’ve ever seen someone who doesn’t take care of themselves, it is clear how time can weather a person.

What about when you are asked how much you earn?  Your default answer may be your gross annual wage, but is this an accurate representation of your real wage?  I have been reading a book by the title of “Your Money or Your Life” and it is in this book where I originally encountered the concept of real wage.

By considering what the authors of “Your Money or Your Life” say about real wage, I’ve decided that it isn’t so simple as stating your annual or hourly wage.  There are countless factors which need to be considered.  When calculating real wage, we need to consider the following:

The first deduction from our earnings comes in the form of taxes.  We have state taxes, Federal taxes, and FICA taxes.  These taxes represent a large portion of your earnings.  Just how large of a portion?  To help emphasize this point, in 2009 the average American worker will have to work until April 13 in order to pay their tax burden.  That’s right.  All the money you’ve earned for the past 4 1/2 months belongs to Uncle Sam.  You are working for free.  Isn’t that a wonderful thought?

Aside from taxes, something most people don’t consider is how much time is spent outside of work for work related activities.  How much time is spent preparing for work and commuting?   We brush our teeth, take a shower, comb our hair, put on make-up, get dressed, take the children to daycare.  We accept these things as being a regular part of life, but is that the reality?  Obviously we must maintain basic hygiene, but ask yourself, “Do you spend just as much time preparing for the day on the weekends?” 

What about commuting?  How much time do you spend going to and from work?  Many people have significant commutes and may travel an hour or more to and from work.  Maybe you fight rush hour traffic.  This is time spent directly towards work, which you aren’t getting paid for.    This time needs to be considered when you are figuring your real wage.

Many people need time to decompress from work.  This includes anything you may do in order to wind down from your day.  Maybe you stop at the pub after work or like to relax on the sofa while you zone out in front of the television.  What about taking an expensive vacation in order to “get away”?  All of these activities we engage in in order to decompress require time or energy.  Again, this is time which is directly related to work and should be factored into our real wage.

Time isn’t the only thing which should be considered.  We must consider all of the “insignificant” expenses that are directly related to our work.  Here are some things to consider when figuring out the out of pocket costs directly related to your work:

How much money do you spend on gasoline and oil changes for your car?  How much wear and tear to your vehicle is a result of your commuting to and from work? 

Do you need to follow a certain dress code which requires you to purchase office clothes?  How much money do you spend maintaining a wardrobe which is primarily worn at work?

Do you purchase beverages while on your break?  Do you go out for  lunch at the deli down the street? 

Do you spend money on child care expenses so that you can work? 

Have you ever been obligated to contribute money for a co-worker who is having a baby even though you’ve never had a conversation with her outside of the office?

Obviously calculating your real age can be complex.  There are many factors and variables that must be considered.  I encourage you to figure out how much time you spend preparing for work and commuting as well as the expenses associated with your employment.  You might be surprised by the results.

Filed under Employment, Money

My Dumbest Financial Decision

April 29, 2009 4 Comments

the-far-side-comicI’ll be honest, I’ve made some poor money decisions in my life.  I’ve found myself drowning in credit card debt, financed a depreciating asset, and have even had to resort to paying my rent with the “help” of payday lenders.  Obviously I’ve made some stupid choices regarding my money.  Despite all of these mistakes, none of them compare (in my mind) to the dumbest financial decision I’ve ever made.

My dumbest financial decision may not have been the most costly choice I’ve made regarding money.  No doubt I’ve wasted more money with my credit cards through my inflated spending, interest charges, late fees and penalties.  What was my dumbest financial decision ever?

The dumbest financial choice I have made is cashing out my 401(k) after leaving a former employer and purchasing a touchscreen DVD player for the dash of my car.  Why do I feel that this is my worst financial decision? 

By cashing in my account I sacrificed 3 1/2 years of saving.  Now that I am beginning to understand more about finances and compounding interest I realize that my decision has robbed me of any potential future growth on my money through the loss of that time.

Not only do I regret a missed opportunity, saving money is hard and takes effort.  I sacrificed all of my efforts throughout the years by cashing out the account.  Making up for that lost money is impossible.  I can save more money, but I can never replace that lost cash.

I gave a lot of money away by cashing out.  I had to pay taxes on my withdrawal as well as a 10% penalty for cashing out early.  That adds up to a significant portion of the entire account balance.  This is money that could have been earning interest.  Instead I gave it away to Uncle Sam.

Not only was cashing out the account dumb because of the financial implications but also because I bought a touchscreen DVD player for my car.  There was a point in time when I concerned myself with material possessions, and this is one of the things I purchased. 

To make matters worse, I have not used the DVD capabilities because it is illegal to use while driving.  In order for the player to operate I have to be parked with the emergency brake engaged.  How often do you find yourself sitting in your car long enough to watch a movie?  Me either.  This wasn’t something that was disclosed to me at the time of purchase by the salesman, nor something I would have even considered.  I was blinded by the bells and whistles of the new gadget.  I would have been better off sticking with the factory installed CD player since I am completely unable to utilize the options available on my fancy DVD player. 

Now that I am once again faced with the decision of where to put my 401(k) account, I know exactly what not to do, and won’t make the same dumb decision twice.

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Please visit the ”Carnival of Everything Money” which features links to numerous personal finance blogs about frugal living, money management, debt & investing, including this site!!!

Filed under Life, Money, Retirement, Savings

Lessons From a Free Kayaking Class

April 28, 2009 1 Comment

One of my goals is to kayak at the Apostle Islands in Northern Wisconsin.  I have never been kayaking or to the Apostle Islands, but both are something I’ve wanted to do for a while.  Having never been in a kayak and knowing next to nothing about the sport, I was excited by a photocopied flier at our local fitness center advertising a free kayaking course.  I signed up immediately.

Apostle IslandsWhen the day finally arrived I wasn’t sure what I would be getting myself into.  I was glad to have my girlfriend and another couple of friends taking the course with me.  There was a brief introduction into the different types of kayaks available and the cost associated with each.  After the introduction we were able to get to the meat of the class; test driving them.

The first boat I tried was a whitewater boat, which is small by design but too small for me.  After trying a variety of different boats of varying types, lengths and styles I finally found one that seemed suited for what I desired from a kayak; ease of use.  I won’t need to use a whitewater kayak for my trip to the Apostle Islands and I didn’t need an ocean kayak.  I had settled into one somewhere in the middle.

When I was searching for kayaks before taking this class, I was clueless that there was any difference in kayaks except that some where longer than others.  As a typical consumer I had always just assumed that bigger was better.  Luckily I learned that it wasn’t so simple by taking this course and now I know the differences between kayaks.  If I would have purchased a kayak before this course I would have ended up with something much too large for my needs and would have probably hated kayaking because I was using the wrong equipment.

At this time I have no plans of buying a kayak, but still hope to be able to accomplish my goals of kayaking at the Apostle Island sometime this summer.  I’m sure I will be able to find a place to rent one that fits my needs.

What is the moral of this story?  Do your research before making a major purchase.  Even if you aren’t able to participate in a course that allows you to engage in hands on learning, the internet is a great place to do research.  There are many websites about whatever you are interested in.  A lot of these websites have a knowledgeable community willing to answer any questions you have.  Get involved with these communities, they are a wealth of information.

Don’t buy blind.  If I would have bought that kayak a year ago, I would have regretted my decision each time I used my kayak.  Don’t make a decision based on an assumption you hold but have no evidence to support your assumption.  Educate yourself before making a major decision, not only when making purchases, but also in your daily life.

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Please check out the ”All Things Eco Blog Carnival” which features links to numerous environmental blogs with tips about going green, eating organic, saving the environment, and enjoying nature,  including this site!!!

All Things Eco

Filed under Apostle Islands, Education, Spending

Making the Best of a Bad Situation

April 27, 2009 3 Comments

Friday was my last day of work before being laid off and many people wished me the best of luck in my future.  With all of the well wishes, I began to wonder how much “luck” influences a successful future.

"My Destiny" by kh2rac @ FlickrThere is no doubt that there have been many people who have been in the right place at the right time and found themselves in a lucky situation.  There are people who win the lottery.  At times I have felt that luck was responsible for what had happened to me.  I found $10 on the ground and felt lucky, but was it really luck that was responsible?

People feel as though their lives are guided by destiny and have a predetermined course of events which is beyond their control.  To a certain degree I agree that people have a destiny in life, but I do not think it is a predetermined nor beyond our control.  Each choice we make in life is like choosing a direction.  By making a choice you have eliminated the alternative. 

That isn’t to say that if the decision that was made was not the best choice that we are unable to change our course.  Oftentimes the best way for a person to learn is from their mistakes.  By making mistakes we are able to understand what works and what doesn’t, what is right and what is wrong.  It is better to take chances and make mistakes than it is to live life cautiously and never take a chance at all.

There are times in life when fate seems to take control.  Something happens in our lives that was just meant to happen.  After a long history of bad relationships, a chance encounter with a nice young lady turns into a lifelong love story.  A person who has a constant run of bad luck may accept that this is their fate.  Fate is something that I do not believe in.  Things happen to people, some good and others bad, but it does not mean it is fate and it does not mean that you can’t change it.  If you feel as though you never catch a break in life it isn’t because of fate, it is a result of how you chose to live your life.  Any number of things control our fate and they are all things we have the power to change; attitude, fear, motivation, desire, ability.

Ninety percent of the world population practice some form of religion.  They feel as though God (Buddha, Allah, Jehovah) control their lives and what happens to them is of a divine origin.  I will not contest the theology of billions of people, however I am reminded of a story about a man who lived by a river:

A man heard a radio report that the river was going to rush up and flood the town.  The radio report suggested that all the residents of the community evacuate their homes. Instead of leaving his home, the man said, ‘I’m religious. I pray. God loves me. God will save me.’

The waters rose up. A guy in a row boat came along and he shouted, ‘Hey, hey you! You in there. The town is flooding. Let me take you to safety.’ But the man shouted back, ‘I’m religious. I pray. God loves me. God will save me.’

A helicopter was hovering overhead. And a guy with a megaphone shouted, ‘Hey you, you down there. The town is flooding. Let me drop this ladder and I’ll take you to safety.’ But the man shouted back that he was religious, that he prayed, that God loved him and that God will take him to safety.

Well… the man drowned. And standing at the gates of St. Peter, he demanded an audience with God. ‘Lord,’ he said, ‘I’m a religious man, I pray. I thought you loved me. Why did this happen?’

God said, ‘I sent you a radio report, a helicopter, and a guy in a rowboat. What the hell are you doing here?

Destiny, Fate and God all seem like good options for excusing our situations in life but by doing this we are only limiting our possibility.  If we don’t take matters into our own hands and do everything we can to make our lives the way we want them to be, things will never change or get better.  There will always be exceptions to the rules, those who will get lucky, but why should you rely on luck when you already have the ability to change your life?

There are plenty of people who feel as though life has dealt them a bad hand.  If you are one of these people, it is time to change the way you think.  Stop focusing on the negativity of the past.  Instead, focus on the opportunity of the future.  You can change your life, you can improve your life, you can be a success.

There may be people, places and things in life that are restricting your potential.  Don’t blame others for where you are in life.  It is easy for us to blame these outside influences but it doesn’t help fix anything.  By blaming our problems on anything other than ourselves we are only further perpetuating our circumstances.

Luck isn’t something we need in order to have a successful future.  What we do need is the determination to change our situations, the ability to overcome our fears and the opportunity to break free of what is restraining our potential.  All of this falls squarely in our hands and we are responsible for improving our lives.  That isn’t luck.

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 Please check out the ”Carnival of Personal Finance #202 – The Lao Tzu Edition” which features links to numerous other personal finance blogs about frugal living, money management, debt & investing, including this site!!! fire-finance

 

Filed under Attitude, Behavior, Potential Tagged with , , ,

Hundred Goals Top 10 Albums of All Time

April 26, 2009 5 Comments

While working out today I was listening to music on my MP3 player and thought it would be fun to make a post about what I consider to be the 10 Best Albums of All Time.  It might be a good way for my readers to get a better feel about who I am and what I enjoy.  I don’t consider myself to be very well-rounded in my musical tastes and that will show when reading my list.  That is okay, I know what I like.

Hundred Goals Top 10 Records of All Time:

10) AC/DC- Back in Black

Why I like it:  AC/DC is one of those bands that I grew up listening to and have enjoyed throughout my entire life.  I chose this album over all their others because it is loaded with great songs that get your foot tapping.  Some of my favorite AC/DC songs aren’t on this album, but I would still say it is the best album overall.

9) Bob Seger & The Silver Bullet Band- Greatest Hits

Why I like it:  When I was road tripping across Nebraska I played this album repeatedly because it fit so well with where I was at that moment, both physically and emotionally.  The songs on this album are timeless and the lyrics have great meaning, especially  “Turn the Page” and “Against the Wind”.

8) Hatebreed- Supremecy

Why I like it:  It gets me motivated.  It puts me in a positive frame of mind, like I can conquer anything.  When people hear me coming (I listen to this LOUD in my car) they probably wonder why I like listening to a guy screaming into a microphone.  The truth is that I love hard and heavy music, but not all bands that play this type of music are good.  Hatebreed has a powerful message about self-empowerment and conquering personal demons.  It is very positive music.

7) Staind- Dysfunction

Why I like it:  This is one of those albums that is good for so many reasons.  It is heavy when it is appropriate and Aaron Lewis is an amazing vocalist.  Staind was one of my favorite bands for quite a while and I was fortunate enough to have an opportunity to meet Aaron Lewis after an acoustic set.  Every song on this album is amazing.

6) Slipknot

Why I like it:  If you want to work out like never before, you should be listening to this album.  The fast drumming and screaming vocals get my body moving faster than I ever thought possible.  The sweat pours out of me but I want to push harder when the screaming gets louder.  If you don’t listen to hard music when you workout, you should try it, you’ll get fantastic results.

5) Metallica- …and justice for all

Why I like it:  This is another album I grew up and have enjoyed my entire life.  The songs on this album are easily the best compositions Metallica has ever written.  I especially like the song “One” because it has such a range of melody, from slow to fast. 

4) Tool- Aenima

Why I like it:  Simply great music.  Maynard James Keenan is nothing short of a genius and it shows in the complexity of the music on this album.  Listening to the album from start to finish is more than listening to music, it is an experience all of its own.  If you haven’t listened to Tool before I recommend you check out some of the music from this album.

3) Brand New- The Devil and God Are Raging Inside Me

Why I like it:  Brand New is a relatively new band to me, only listening to them for a little over 2 years now, but they have quickly become one of my favorites.  Their music is different from a lot of what I typically listen to as it is much more mellow and laid back.  The messages in their lyrics are powerful and carry a lot of meaning.  I like to listen to this album when I am skateboarding because it flows so well.

2) Marilyn Manson- Antichrist Superstar

Why I like it:  Most people look at Marilyn Manson and automatically respond to his strange appearance.  Their opinion of him has been determined and they don’t give his music a chance.  I really enjoy all of his music but I chose this album because it is the one that introduced me to his music.  There are a lot of classic songs on here that almost everyone knows, whether they like Marilyn Manson or not.

1) Pink Floyd- Wish You Were Here

Why I like it:  Simply said, I like this album because of the music.  It is great!  If you want to relax at the end of the day, this is the album to listen to.  Pink Floyd’s music is timeless and they were way ahead of their time when they were creating music and are still ahead of their time!  There has been no other band who could do what Pink Floyd has done musically. 

I hope that even though I probably listen to a much different style of music than you may that you will check out some of these bands, you may find yourself enjoying them as much as I do.

Filed under Random Thoughts Tagged with

Is Dave Ramsey a Cult Leader?

April 26, 2009 5 Comments

If you have spent any amount of time reading about personal finance, chances are you have encountered the name of Dave Ramsey.  Websites and blogs are devoted to his personal finance methodology.  People offer each other financial advice based on what Dave says to do, “Well, according to Dave you should…”  You would be hard pressed to find a personal finance blogger who won’t say that Dave Ramsey’s advice hasn’t influenced them in some way, including myself.

Dave Ramsey- Cult Leader?What is it about Dave Ramsey that makes his advice so great?  Maybe it is his charming smile or shiny bald head, but I think there is something more to his appeal than his appearance.  Let’s see if we can figure out what it is about Dave Ramsey that makes him so exceptional.

Dave is the host of a radio show aptly named ”The Dave Ramsey Show”.  This show is broadcast across the United States on more than 300 radio stations and has over 3 million listeners each week.  He is also the author of the New York Times Bestselling book “The Total Money Makeover” as well as other highly successful books discussing personal finance.

He markets to “ordinary” people and claims to have been able to help hundreds of thousands of people become debt free.  Dave has a bold approach which is what I consider to be his most appealing quality.  He demands that people take responsibility for the situation they have found themselves in.  By making the reader or listener take responsibility for their own actions, their own stupidity and/or the mistakes they have made in their life he is empowering them by allowing them to realize that they got themselves to where they are today and they also have the ability to change that situation.  That is the real appeal of Dave Ramsey.

Dave’s financial advice is incredibly basic, practically common sense, and he is aware of that.  It is in this simplicity that he is able to create his methodology which can work for everyone, no matter who you are and no matter how bad of a situation you are in.  He offers hope to those who feel as though there is nothing to hope for. 

Though his principles are simple, they are not easy and require hard work and sacrifice.  A person must make sacrifices or changes to their lifestyle if they expect to improve their situation.  What you’ve been doing so far has gotten you exactly where you are today, and obviously that isn’t working for you or else you wouldn’t have his book in your hands.

I like a lot of what Dave has to say about motivation and intensity.  I am not a Dave Ramsey purist and I don’t follow his program as it is outlined in the book.  I respond to the overall theme of the book which is to get intense, make sacrifices and get out of debt and onto the path towards financial freedom.

Here is a breakdown of the steps outlined in “The Total Money Makeover”:

1) Establish an Emergency Fund- Dave suggests having $1,000 in the bank as a buffer against emergencies before you begin working towards eliminating debt.  This is sound advice as you don’t want to have to break out the credit cards in order to pay for something you should have prepared for.

2) Debt Snowball- Here you list all of your debts in order from smallest to largest, then begin paying off the smallest balance first (making minimum payments to the rest).  Once the smallest debt is paid, you roll the payment you were making on that debt into the next smallest bill.   You continue rolling the payments over into the next debt until you have eliminated all of your debts.

3) Fully Funded Emergency Fund- After you have effectively eliminated your debts it is time to fully fund your emergency fund.  You should have at least 3 to 6 months worth of expenses saved. 

4) Maximize Retirement Savings- Planning for retirement may seem like a long way off for some of us, but the earlier you start the better off you will be when you are finally able to retire.

5) College Fund- If you have children, Dave suggests saving for their education in order to give them a good financial start in life.  This is a touchy subject for people as some people disagree and think a child should pay for college on their own or work their way through.  As someone who has had to pay for college on my own (with the help of student loans), having help would be nice, but there is something to be said about doing it on my own.

6) Pay off Mortgage- Forget the tax credit on your home loan interest, it isn’t worth it.  Get the loan paid off as quickly as possible so that you can become entirely debt free.

7) Build Wealth Like Crazy- Save as much money as you can.  Begin investing.  Dave suggests mutual funds, and I would have to agree.  You are able to get diversification rather conveniently and they have performed well historically.

8) Live like no one else- “If you live like no one else, later you can live like no one else.”  This circular reasoning has kept me motivated many days at work and while I was paying down my debt.  It means that if you are willing to sacrifice the “pleasures” of today in order to prepare for your future, when the time comes your life will be better than those who weren’t willing to make those small sacrifices.

Is Dave Ramsey a cult leader?  Of course not.  He has good ideas and knows how to market those ideas very well.  His book was the first financial advice book that I ever read and it has made a huge impact on my outlook on money and life.  It opened my eyes to the mistakes I was making with my money and made me realize that I was stealing money from my future.  Since reading his book I have made it a mission to become financially literate and re-evaluate my priorities.

I highly recommend to everyone that they read “The Total Money Makeover”, it may just change your outlook as well.

Filed under Dave Ramsey

Ease of Credit, Pain of Cash

April 25, 2009 3 Comments

I have been working towards becoming debt free for my entire adult life.  Ever since I was 18 I have had some sort of debt.  It started out small and as time continued to pass my debt accumulated.  Instead of having a credit card with a low limit I managed to add multiple credit cards, store cards, personal loans, auto loans and student loans to my list of debt.  (Click here to read about my journey into debt).

1808119723_a466c70b08Despite all of these liabilities hanging over my head, I continued to spend.  It was easy to whip out the plastic and buy whatever I wanted with no regard to whether or not I could actually afford it.  I had paychecks coming in every week to pay my minimum payment.  I thought this way for many years and it wasn’t until I was on the verge of disaster that I began to realize that things weren’t working.

My financial turnaround has been a complex transformation.  It was hard for me to change my cycle of impulsive buying and accumulation of material possessions.  There were times when I felt as though I would just DIE if I wasn’t able to buy a new pair of jeans.  In time I realized that I didn’t need to be buying so much stuff.  I also began to understand how my spending behavior today would affect my financial future.  If I didn’t stop my self-destructive spending, there would be no financial future, I would be a “work ’til I die” kind of guy.  That didn’t make me feel very comfortable.

I began to scale back on my purchases and cut my spending.  I was able to eliminate all of my debt, with exception  of my car loan and student loans, by February of this year.  The feeling of reaching this milestone was amazing.  Instead of paying for my past I could finally focus on planning for my future.

Without having debt draining money out of my life, money no longer seemed hard to come by.  Payday would roll around and I would actually have money left over.  Now I didn’t need to pay for things on credit, I could afford to pay for them with money I had earned, not money that I was borrowing.

Paying for things with my own money has brought a feeling of conscientiousness about where my money is being spent.  I attach more emotion to my spending now that the money is coming directly from my bank account.  When I was using a credit card, I was focusing on what the monthly payment would be.  I didn’t care if I was spending $1,000 on something I didn’t really need if the payment was only $50 a month.  That didn’t cramp my style.

The purchase of my bicycle was my first major purchase of an item with my own money, and it hurt.  It hurt knowing that the money I had worked to earn and had saved to have would be gone.  I really wanted a bicycle and I went through with making the purchase, but it wasn’t an easy decision to make.  On the other hand, had I been making the purchase with borrowed money, chances are I would have bought a much more expensive bike and there would have been no emotion attached to that money which I just spent.

The more I drift away from using credit (I still use it for convenience, but pay it off immediately), the more emotion I attach to my money.  It is my money, I earned it and I don’t want to toss it around like it is going out of style.  When I was in debt and using credit, it didn’t matter to me because it wasn’t my money and I hadn’t earned it.  Credit cards make access to money you don’t have too easy and it is because of this easy access that we tend to overspend when using them.  It doesn’t matter what the balance on our cards may be, it only matters that we can make the monthly payment.  That is a terrible frame of mind to be in.

Put your credit cards away and work towards building a healthy financial future; one where you can actually afford to pay for something with your own money, not money you borrowed from someone and stole from your future.

Filed under Debt, Money

Links to Make You Think- Last Day of Work Edition

April 24, 2009 Leave a Comment

Today is my last day of work before being laid off.  When the announcement was first made about getting laid off it came as no surprise to me as I have seen the storm clouds building on the horizon for quite some time, but for some it seems as though they were taken completely off-guard. 

I have seen a mix of emotions the past week which I had not seen during the previous layoffs.  There are people who seem lost as they felt they would be able to devote their entire working lives to this company, only to be cast out in the cold with no plans of what comes next.  There are others who are confused and don’t understand why this is happening to them.  Some people are angry at management for being less than forthcoming about our future.  Still others, like myself, feel as though this could be an opening door to further opportunities.

I end my employment with a shred of disappointment, wishing I’d been able to hold on just a few weeks longer in order to become vested in my retirement account, but overall thankful for the opportunity to set out on a new journey in a new direction.  I am free to start fresh and reinvent myself.  I feel as though I am about to embark on an entirely different phase in my life.  It is my rebirth in many ways.

Here are some articles from around the web which I expect to be of interest to my readers:

I love sarcasm nearly as much as I dislike smoking.  The Weakonomist wrote a great article titled “Cigarette Smokers Rejoice: You Don’t Burden Society With Healthcare Costs”.  I hope you enjoy the sarcasm as much as I did.

Many of my articles on Hundred Goals talk about saving, planning, frugality, values and goals.  One thing I don’t talk about much is spending.  BripBlap has an article titled “Why I Spend” which makes a good connection between earning money and spending it responsibly in order to live a full live.

To compliment the article at BripBlap I want to include an article from kclau about “Learning to be Happy with Less“.  We don’t always need to buy Stuff in order to have full and enjoyable lives.  We should value what we have instead of worrying about what we don’t.

To those who have been affected by layoffs, remember the words of Eleanor Roosevelt:

“Yesterday is history, tomorrow is a mystery, today is a gift.”

Filed under Link Collection

Hundred Goals After 100 Days

April 23, 2009 4 Comments

Yesterday officially marked my 100th post at Hundred Goals.  Reaching the hundred mark feels like an accomplishment.  When I first starting writing I wasn’t sure which direction I wanted my blog to progress towards.  At first I thought I could write about my journey towards accomplishing a list of 100 life goals.  I soon realized that there was a plethora of other subjects I could write about and not simply make a list of my accomplishments.

"Success" by .sweetcaroline @ FlickrThe first goal on my list was to eliminate my credit card debt.  While working towards completing this goal, I realized how important finances are to our success, and to achieving our goals.  This link between finance and goals became the tag line to the site; “Achieve Your Goals While Managing Your Finances.”

While writing about personal finance is something I enjoy, there are other topics I am passionate about.  A lot of my subjects have an eco-friendly undertone.  Our Earth is finite and taking care of it should be just as much of a priority as is living a frugal, debt-free lifestyle.

Here is a short list of some of what I consider to be some of the better articles I have written since I started out on this writing journey:

Dream a Little Dream- This is my very first post.  This was before my list of goals was complete and discusses briefly why I decided to begin writing my blog.

Stupid Is As Stupid Does- Here I write about my journey into financial Hell.  If I hadn’t found myself in this situation I may have never realized how I was hurting my future.

Get Out of Debt Quick!  6 Easy Steps to Financial Freedom- Countless websites claim to have a magic bullet to wipe away your debt fast and easy.  I take a different approach, one that requires a person to admit that they screwed up, that their debt is their fault and that they have the power to fix their situation.

Finding Meaning- Each of us have different priorities and ways of feeling that our lives are valuable, here I discuss my values and what is important to me.

I’m Not Giving Up My Life- Some people don’t want to give up their life of purchasing Stuff in order to prepare for the future.  I don’t want to give up my life either.

Prison Walls of Barbie Dolls- In this article I discuss how we build our own prison by accumulating Stuff and debt.

Master of Our Own Slavery- How do the choices we make today affect our freedom in the future?

Over the last 100 days I have come to realize that there are many challenges to maintaining a website.  Finding time to write a daily article can be a challenge.  I have a busy schedule with work and school and blogging requires a significant amount of time.  Not only do I need to write an article that has something worthwhile to read, but I also need to spend time reading other blogs, magazines and news articles in order to keep my brain juices flowing.

Finding things to write about hasn’t been much of a problem so far.  Even if I don’t have an article planned for the day, just a few moments of staring at a blank text box is enough to motivate me to write something.  Not only do I need to focus on writing an article which is interesting, and hopefully fun, for my readers, but I need to work on building an audience.  This is probably the biggest challenge of blogging.  My site statistics look a lot like a roller coaster, huge up and downs from day to day.

I am beginning to feel that I am finally finding my voice, something I was concerned about when I first began writing.  My writing seems to have improved as well.  Instead of working towards reaching a certain word count, I write about what is on my mind, even if it is only a couple hundred words or more than 1,000.

This website has also allowed me to focus inward on my values and give them real consideration as I put those values into words that are being read by an audience.  It is easy to say that you value something, but it is entirely different when you actually consider why you value these things.  It brings them closer to your heart and the more consideration you give these values, the more important they become.

I want to thank everyone who continues to visit my blog.  Having people read my words is very rewarding.  One hundred down, many more to go!!!

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Please check out the ”Carnival of Pecuniary Delights #4: Living Green & Saving Green Edition” which features links to numerous other personal finance blogs about frugal living, money management, debt & investing, including this site!!!

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Filed under News

Invest Like Warren Buffett

April 22, 2009 1 Comment

I received the latest issue of Fortune magazine in the mail the other day and found myself staring at the Oracle of Omaha, Warren Buffett.  The caption next to his photo basically says “Warren is ‘wild about’ such and such company, shouldn’t you be?”

Warren BuffettWarren Buffett has found himself in the position of being something of a beacon of hope for investors.  He has spent his life investing and is quite successful at it.  So successful in fact, that he is one of the richest men on the planet (second only to Bill Gates as of this article).  With a reputation like that, there is no reason why the average investor shouldn’t follow his every move in order to become wealthy along with him, right?

I have a problem with following the advice of any single person blindly.  It boils down to doing what you are told rather than making informed decisions for yourself.  Why is following the moves of Warren Buffett any different than following the advice of Jim Cramer?  Is it because Buffett has proven himself to be wise and savvy in the ways of investing?  Is it because he knows more than you do?

Warren Buffett is not your average investor.  He has power, something you and I do not possess.  He is able to invest in a company and sit on the Board of Directors, keeping the management team in line and offering advice and suggestions of how to improve the company.  His ability to do this helps him have control over the future of his investments.  Wouldn’t it be nice if you had that power?

What can you do to invest like Buffett?

The first thing you need to do is to find a company you might want to invest in and research that company.  Don’t listen to the advice of your cousin Joe and invest your money in the hot new stock.  By the time there is a “hot new stock”, it is too late and you’ll be jumping on board right before the stock tanks.  Follow these wise words of Mr. Buffett himself:

          “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

This is a great philosophy for investing.  Had I followed this advice when I was trying to make a quick dollar by investing in Washington Mutual just before it went bankrupt, I probably wouldn’t have invested my money in them and would still have that money available to me.  Instead, I saw the possibility of making a quick dollar, and I could have if I would have pulled out sooner, but the end result was due to buying a weak company because of the price of its stock.

Another technique Buffett uses is buy and hold.  As Warren says, “Our favorite holding period is forever.”  Even the best day traders end up with returns inferior to those who buy and hold over the long term.  Why?  Commission and capital gains taxes.  For the little guys it doesn’t make sense to be actively trading.  We do not have the kind of money required to offset the commissions and taxes we would pay by making frequent trades.  Your best chance at success is investing in strong companies over the long haul.

Should you be following Warren Buffett’s every investment decision?  That is a choice you need to make as an individual.  If you were to ask The Oracle, I have a suspicion that his advice would be this:

         “Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well.”

That says a lot about whether or not you should be doing what Warren Buffett is doing, straight from the mouth of the Oracle himself.

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Typically if you’re searching for good CD rates then a bank is a pretty obvious place to find CDs. However, banks are often overlooked when people are looking for credit cards. Banks are a great place to find a new credit card, especially if you’re trying to open a new credit card. A bank is more likely to give you credit if you already have a relationship with them.

Filed under Investing

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