Ten Commandments of Goals & Money

November 28, 2009 2 Comments

"Ten" by koDesign @ Flickr

“Accomplish Your Goals While Managing Your Finances.”

At times, the two seem to be at odds with one another.  How can a person manage their finances when goals are oftentimes lofty dreams of indulgence?  A waver in one direction has an immediate impact upon the other.  The secret to is to find balance.

For the past year I have been toeing this line in my own life.  I have managed to pay off the last of my credit card debt and paid my car loan off more than a year early.  At the same time I spent a month traveling North America, spent a night under the stars of a clear California sky and climbed Mount Saint Helens.  This experience has brought me to some conclusions.  I’ve singled out the ten most important things to consider when you begin your journey towards accomplishing your own life goals.

The Ten Commandments of Goals & Money:

1) Know Thyself: Any successful journey in life requires some degree of foresight and planning.  Your future is no different.  Take time to consider what your values are and where your passions lie.  Create a list of goals and search for a common theme.  Use this as a compass to help orient yourself in the direction you want your life to take.

2) Happiness Is NOT “Out There”: Our focus frequently rests upon what we do not have or those things that are not ideal in our lives.  We set goals as a way to better our lives, not realizing that our focus on improvement is the reason we are dissatisfied with our lives today.  We trick ourselves into believing that happiness can be found in a pay raise or that a boob job will make us beautiful.  This isn’t the truth.  Happiness cannot be found “out there”, it comes from within.

3) Follow Your Heart: Too often we ignore what is in our hearts, opting instead to think with our head.  While our brains have great capacity for extraordinary intellectual achievement, sometimes they hinder our spirit.  Listen to your heart.

4) Money IS Important: Money does not equal happiness but money is important.  Without it, our focus would change from accomplishing goals to struggling to survive.  It is important to be fiscally responsible and to find a balance between today and tomorrow.  Seek harmony in your finances.

5) Know Your Priorities & Align Your Actions: There is a difference between saying and doing.  It is easy to say you value something.  It is not so easy to express your values through action.  It is crucial that we align our values with our actions if we hope to live a life which is in harmony with our priorities.  In doing so we are able to live guilt free, knowing that we are doing what we believe is the right thing.  At the end of the day we can rest our head upon our pillow with a clear conscious.

6) Modify Your Internal Dialogue: We are too hard on ourselves.  Instead of building ourselves up, we break ourselves down.  We focus on our flaws, the things that we need to improve upon.  We ignore our talents, our individuality.  Learn to love your imperfections, they are what make you unique.

7) Debt is Slavery: We may not be pulling a plow across the earth like our ancestors but we are no less of a slave to our debts, however, we are our own masters.  Whenever you feel it is time to break free from the binding chains of debt, you are in control to make that decision.  The more debt you accumulate and each dollar you waste is another day of slavery.  It doesn’t need to be that way…break free.

8) Stop Making Excuses: If you think about something long enough or hard enough, you can be certain that you will always find a reason not to do something.  Making excuses is not productive.  Stop.

9) The First Step is Always the Most Difficult: The hardest thing about going for a jog is putting on the shoes.  After that, things tend to fall into place.  The same can be said for most aspects of life.  Overcoming inertia is difficult and may require a leap of faith, a request for assistance or admitting you don’t have all of the answers.  This simple act may be the catalyst to major change in your life.

10) Knowledge is Power: The other day I was reading a blog post and read the following:

Uncertainty is caused by a lack of knowledge.  Hesitation is the product of fear.

This simple thought struck a chord and as I thought more about it, Fear controls so many aspects of our day-to-day lives.  We hesitate out of fear and fear what is unknown.  By educating ourselves we remove the unknown variables.  We eliminate the uncertainty.  The more we know, the more confident we become as an individual.  Knowledge is power.

Filed under Budgeting, Confidence, Debt, Education, Goals, Life, Motivation, Opportunity, Passion, Potential, Preparation, Prioritizing, Savings, Spending, Success

What is the Value of Money?

November 25, 2009 8 Comments

I have been doing a bit of reading lately about money.  I’ve begun to wonder about the way we value our currency.  What is it that gives money its value, or even gold for that matter?

I’ve decided that money in and of itself possesses no real value but rather, it is the belief in money that gives it value.  Things like gold and diamonds are nothing more than metal and minerals and without human demand are essentially worthless.  Money is nothing more than ink and paper, coins are simply bits of pressed metal, no more valuable than the morning newspaper.

Is money worthless, then?  Money is only worth as much as the value people place on it.  Money is only valuable if two or more people believe it to be.

To back up my hypothesis, I decided to try to pay for some of my purchases with foreign currency.  Why not, it is money, right?  I laid my blue bill on the counter for the cashier and he picked it up looking a bit puzzled.

“What’s this?” he asked me.

“Money,” I responded, amused with the situation.

“I’m not sure we accept that here,” he said.

“Really?  You don’t accept money?”

He put the bill back on the counter and I paid with an acceptable form of currency; plastic.  Some people might not think that this proves anything beyond foreign currency not being an acceptable form of payment in our country.  Maybe, but I think there is something more than such a simple explanation.

We don’t share the same faith in foreign currency as we do our own dollar, thus rendering it worthless in our markets.  Without the belief of worth there is no worth.  A dollar bill is not inherently valuable.  Our faith in our currency dictates its value.

Still not convinced?  In 1792, Congress passed the Coinage Act which established the US Mint and established the dollar as the official form of currency within the United States.  At the time of the act, the value of the currency was directly linked to weights of silver and gold.  This is no longer the reality.  The United States ended the Gold Standard in 1971.  We now operate on a fiat system which means that our currency is not backed by anything other than people’s faith in the system.

If money is more than paper and metal and really is valuable, why do economies collapse?  Why does the purchasing power of the dollar fluctuate?

Money is only as valuable as people believe it to be.  Value is a mental condition and not a physical reality.  Without faith in the currency, it has no value.  We do not believe in a blue bill, it is worthless in our economy.

What if we lose faith in our own dollar bill?

***

Please visit the ”Carnival of Personal Finance #233: Welcome to Webcomics” which features links to numerous personal finance blogs about frugal living, money management, debt & investing, including this site!!!

Filed under Money

A Sustainable American Lifestyle

November 22, 2009 1 Comment

For my Environmental Sustainability class I am writing about ways that the typical American household can reduce their environmental impact without sacrificing the quality of their life.  My areas of research are in electricity and water use.  Here are some ideas, as well as some statistics for you to consider in your own life.

Electricity

With only 5% of the world’s population, America consumes 26% of the world’s energy supply (EcoEarthWalk.ca). To generate this electricity, we rely heavily on coal, a fossil fuel which contributes to smog, acid rain and global warming. Coal accounts for 50% of the United States energy production (pbs.org). According to the Union of Concerned Scientists, a typical coal burning power plant emits 3.7 million tons of CO2, the equivalent to cutting down 161 million trees. In addition to carbon dioxide emissions, coal burning power plants also release sulfur dioxide, nitrogen oxide, carbon monoxide, mercury, arsenic and lead (ucsusa.org).

Water

The average American uses between 80 and 100 gallons of water each day. Most of this water is used in flushing toilets and bathing (usgs.gov). While 71% of the planet is covered in water, less than 1% is fresh and available for human use (usgs.gov). At least 36 states are facing water shortages in the next four years (alternet.org). Water shortages are not limited to the Western United States. The Great Lakes are shrinking (newyorktimes.com) and states including New York, Georgia and Florida are all facing water shortages or will be in the future (alternet.org).

What Can You Do?

Reducing your impact on the environment doesn’t require any dramatic shifts in your lifestyle or quality of life. Many of the changes are small but can have a major impact on reducing your consumption of electricity and water. Reducing your consumption also means saving yourself some money. Here are some of the ways that you can reduce your environmental impact:

Electricity Consumption

Install Compact Florescent Lighting: CFLs use 75% less energy than standard incandescent light bulbs and will save over $30 in energy costs over their lifetime. They also last 10 times longer than a standard bulb which means less maintenance around the home (energystar.gov).

Flip the Switch: In addition to switching to CFLs, turning off the lights when you are not using them will save electricity and money.

Use a Power Strip for Electrical Appliances: Estimates indicate that as much as 10% of your total home energy use is a result of phantom power, the energy consumed by electronic devices in Standby mode (therenewableplanet.org)

Replace Old Appliances with Energy Star Appliances: When the time comes to replace an old appliance, chose an Energy Star Rated Appliance. According to Energy Star: “Energy Star qualified appliances incorporate advanced technologies that use 10–50% less energy and water than standard models.” (energystar.gov)

Unplug Chargers When Not In Use: Even when your cell phone chargers are not charging your phone, they are still drawing electricity. Unplug them from the wall after your phone is charged.

Water Consumption

Lower the Temperature of Your Water Heater: “For each 10°F reduction in water temperature, you can save between 3%–5% in energy costs.” Water temperatures can be lowered to 120° F without any noticeable change (EnergySavers.gov).

Pee in the Shower: Brazilian environmental group SOS Mata Atlantica says that by peeing in the shower, the average Brazilian household can save 1,157 gallons of water if it avoids flushing the toilet once a day for a year (huffingtonpost.com). If they can do it, so can we!  Watch their video, it is cute!

Turn Off the Water While Brushing Your Teeth: The EPA states that turning off the faucet when you brush your teeth can save 8 gallons of water a day; 240 gallons a month (epa.gov)

Use a Dishwasher: Consumer Reports claims that using an efficient dishwasher can actually use less water than washing dishes by hand! (consumerreports.org) Save even more water by only running the dishwasher when it is full.

Take Shorter Showers: Peeing isn’t the only way to save water in the shower. By taking shorter showers, you can save up to 60 gallons of water compared to taking a bath. A typical bath requires 70 gallons of water while a 5 minute shower only uses between 10 to 25 gallons (epa.gov).

Conclusion

Doing your part to save the environment doesn’t require large sacrifices that will lead to book or movie deals like No Impact Man and we don’t need to live in a cave without money like Daniel Suelo.  Creating a sustainable lifestyle is about making small changes that will result in a large difference in your consumption levels.  Being Green and environmentally friendly isn’t just for Hippies anymore.  The financial impacts of reducing your costs add up to money in your pocket.  Who doesn’t like that!?

Filed under Environment, Savings

My Life’s Unsung Heroine

November 21, 2009 1 Comment

I’ve used this website as my forum to share many of my life’s proudest moments.  From climbing my first mountain to jumping out of an airplane and bungee jumping, I’ve shared these moments with all of you.  What I really fail at when I share these stories is in talking only about myself, my feelings, my experience of the process.  As you read my blog you might not realize that I am never alone in my accomplishments.  My girlfriend, Erin, has been with me almost every step of the way.

Without her along for the ride (or climb, or jump, or fall) I’m not sure how many of my goals I would have accomplished.  She has been a huge support, even though she may not realize it.  My accomplishments are also her accomplishments and I wouldn’t change that for the world.  Challenging each other to push ourselves harder and to share in our victories has strengthened the bond we share as a couple.

Standing at the top of Mount Saint Helens with our arms around each other sharing the beauty surrounding us was worth every ounce of effort it took to get there.  When neither of us thought we could reach the top, our encouragement never ended and when we finally made it to our destination, I was more proud of her accomplishment than of my own.

After watching Erin jump out of the airplane when we went skydiving, a smile crossed my face and seeing her falling out of the sky erased my own fear to do the same.  After catching up with her as we floated towards Earth, we hovered next to each other, bumping parachutes as she blew me a kiss.  The world was a million miles away and here we were, surrounded by nothing but the wind, sharing this moment of victory with signs of our affection for one another.

Having her alongside me during my moments of accomplishment have made each of the moments even more meaningful and memorable.  She really is my life’s unsung heroine, my life’s love and true passion.

Filed under Life, Relationships

What is Your Master Plan?

November 21, 2009 Leave a Comment

"Sail boat" by Nuno Vasco Rodrigues @ Flickr

Without goals, our lives are like a ship without sails.  The winds of potential blow strong against our mast but with no sail to capture the energy we are left stationary, floating quietly with no command over the direction the waves push us.

Having goals allows us to hoist our sails high into the air and in an instant we are skipping across the surface of the water.  Our sails are filled with energy from the wind and our eyes are focused on the sliver of land that has just peaked out from the ocean blue.  Our destination comes into focus and as we arrive upon the shore we have learned a powerful lesson; if we create goals and harness our ambition & passion, we will realize our dreams.

If we are ships upon the sea with no focus or direction, what can we do to raise our sails and capture the wind?

Something I don’t spend much time discussing is the power of long-term goals.  My list of 100 Goals consists mostly of milestone accomplishments, things that once accomplished can be crossed off the list.  Crossing a goal off the list is a moment of satisfaction; knowing that I’ve done something great and meaningful in my life but once that goal is crossed off, it is done.  The moment has passed & I am looking forward to the next milestone that I can work towards accomplishing.

While I wouldn’t change any of the experiences I’ve had in using this method to accomplish my goals, the question that begs to be answered is this: “What happens when I have accomplished everything I want to do in my life?  What will I be left with?”

The answer is to have a Master Plan; a series of successive goals that will ultimately lead to what we envision our Perfect Life to be.  A Master Plan requires knowing where you want your life to be and figuring out a way to get there from where you are today.   It requires you to be proactive and take intentional steps in order to make your plan a reality.  It requires discipline, determination and flexibility.

Creating Your Master Plan

Too often we find ourselves ignoring our dreams of a Perfect Life because we tell ourselves that they are not grounded in reality.  Before we allow our desires to blossom into anything more than a passing thought, we stifle ourselves.  We are blocking our own success and happiness.  There will always be a reason why we “can’t” do something and now it is time to ignore those excuses and begin to create your Master Plan.

Close your eyes and envision your Perfect Life.  What do you see?  Are you working with panda bears in a sanctuary?  Are you backpacking the Appalachian Trail?  Maybe you are relaxing in your backyard drinking lemonade watching your children playing on the swing set.  No matter what you see, you have found your destination.  Now it is time to figure out how you will get there.

Usually at this point you would push your dreams aside with thoughts of “reality”, all the reasons why you are unable to pursue your dreams.  I want you to consider all of these excuses about why you can’t follow your dream but I need you to change your perspective.  Instead of using them as reasons why you can’t follow your dream, think of them as challenges to beat.  Don’t use them as an excuse any longer.  Use them as motivation.  Instead of feeling overwhelmed, find a way to overcome these challenges.  Your plan should be ambitious yet realistic.

The next phase in accomplishing your Master Plan is to figure out what steps you must take in order to position yourself to make your dream possible.  Will your Perfect Life require a career change?  Do you need to further your education? If your Perfect Life requires you to get a degree or certificate, enroll in classes, even if that means taking one class a semester for the time being.  If you need to change your career, start submitting resumes and begin networking with people who are in the field that you want to break into.  Prepare to Quit Your Job.

Ultimately, your Master Plan is about having a long-term goal to pursue while using short-term goals as a means for making progress towards your Perfect Life.  A Master Plan is not something that happens overnight.  My own Master Plan has been in the works for nearly 5 years, and I am only now really beginning to fully understand what it is that I want in my own life.  Progress is slow but steady and each day is a new opportunity.  Today is your opportunity to make a change in your life, an opportunity to start working towards your Perfect Life.  No more excuses, no more hesitation.  Today is the first day of the rest of your life.  You decide what that means for you.

Filed under Behavior, Career, Education, Employment, Goals, Motivation, Passion, Potential, Preparation, Success

Goal #96) Pay Off My Car

November 17, 2009 7 Comments

Six weeks ago I wrote about my ambitious goal of paying off the remaining $3,670.66 of my car loan.  At the time, I wasn’t sure if I would be able to pay it down to zero.  I rolled some numbers around in my head and figured that if I was able to entirely eliminate my discretionary spending during the next six weeks, I might be able to do it.

Today, after six weeks, I am proud to say that I was able to pay off my car by the deadline I set for myself, plus 8 hours.  There were some times when I wasn’t sure I would be able to do it, when I spent more money than I should have.  I almost wasn’t able to accomplish my goal but I stuck with it and kept my commitment to doing what it took to reach the end.

I had to “sacrifice”.  I had to sell Stuff in order to make up for the money I spent.  I did whatever it took to make this happen.  Now that I am free from my car debt I am looking forward to my next debt; my Student Loans.

When I looked at my Student Loan account, even though I had a mental number that was relatively close to the actual amount I owe, seeing it in black and white gave me a sick feeling in my stomach.  Instead of feeling overwhelmed, I’m feeling fired up!

I’m working to develop a game plan to attack this debt as ambitiously as I can so that I can have all of my Unsubsidized Loans paid off before I complete my Bachelor Degree.  I have a year and a half to make this happen and it is possible but will be a challenge and a lengthy obligation.  If I stick with it, I will have more than 50% of my student loan debt paid off and possibly even more if everything goes well.

Look for an update in the future with numbers and a solid repayment plan!

Filed under Accomplishments, Debt, Goal Updates

Update: Goal #8) Travel to Iceland

November 14, 2009 9 Comments

When most people think of traveling to an exotic location, images of a desert island hidden deep within the South Pacific come to mind.  An exotic destination would not be somewhere that the sun never rises during the winter & never sets in the summer.  A rugged and unforgivable land created in a place where the earth is literally tearing itself apart, where the winds are constantly howling and 10% of the country is perpetually covered in ice and glaciers.  Exotic doesn’t typically include eating traditional foods such as rotten shark fins or boiled sheep head.

For me, nothing seems more enticing than all those things mentioned above, which is why traveling to Iceland has been on my list of destinations for quite some time.  It may not be the typical vacation destination but that is exactly the reason I want to travel there.  What the island has to offer is a unique opportunity to experience a culture a little different from my own, to witness some of the most spectacular natural views the world has to offer and immerse myself in the natural conflict of what has become known as “The Land of Fire and Ice”.

On November 7th, we set a date for our trip (May 15-May 22, 2010) and purchased our tickets with Icelandair!  I am very excited that I will finally be making the trip I have been lusting over for years.  A week really isn’t enough time to do much more than scratch the surface of this amazing landscape but I hope to get some dirt under my fingernails in that short bit of time.

I am certain that there will be at least one future trip to Iceland during the winter months to brave the never-ending dark and battle the brutal cold in order to witness the Aurora Borealis.  That trip will be quite interesting as well, and I look forward to a perpetual night.  I’ve read that the air is so crisp and cold during the winter that you can actually hear the energy of the Northern Lights crackle as they move across the sky.  Spectacular!

Filed under Iceland

Some Thoughts on Gift Giving & the Holidays

November 7, 2009 3 Comments

"Green and Red Christmas Ornaments on White" by Mike Dykstra @ Flickr

My girlfriend and I share our birthdays less than two weeks apart and this year when she asked me what I wanted for a gift the choice was easy; nothing.  While there are random things that I want, I am beginning to move away from the belief that we should purchase gifts for people as a sign of our affection for that person, especially at a time when gifts are “expected”.  When my birthday came around I wasn’t disappointed by not receiving a gift from my girlfriend, was more than satisfied with the birthday card from my mother and thrilled that my sister made a donation to Mothers Against Drunk Driving.  What mattered was that people were thinking of me, not what they bought for me.

As my girlfriend’s birthday neared I asked her what she wanted and was not surprised when she told me that she didn’t want anything but in the back of my mind I asked myself, “Is this a trick?”  When the role was reversed and it was me who was in the position of “expected gift giving” I began to feel uneasy about not buying her something.  I asked her at least a dozen times what she wanted and each time she told me the same thing.  Nothing.  When the day finally arrived I wished her a Happy Birthday and we went about our lives as usual.  As the hours passed I was feeling haunted by not doing something or getting her anything.  I was filled with guilt.  I grabbed my phone and asked if she wanted to go out to dinner for her birthday.  She agreed and we went to a restaurant of her choice and I picked up the bill.  Spending the time together and sharing in conversation over the course of the dinner was far better than giving her an object as a sign of my affection for her.

As the holidays approach, all of us will be thrust into the season of expected gift giving.  How can you opt out of consumerism without looking like a Scrooge on Christmas morning?  Having recently been in both roles of giving and receiving after making the choice to opt out of the consumer lifestyle, I may have some insight.

As a young boy I really enjoyed all of the presents I would get.  Like any child, I had a hard time falling asleep on Christmas Eve.  I was so excited about all of the wonderful gifts that would be carefully wrapped and pouring out from underneath the sparkling Christmas tree.  As I get a little older I have a different feeling about those same gifts.  I feel that we are representing our affection towards each other through pieces of plastic.  We are misplacing our love for each other.

Often we feel that we must quantify our emotions, that there is a correlation between the price of our gifts and our love for the person we are giving them to.  Not to mention the anxiety we feel over whether the person will actually appreciate the gifts we are giving them.  The other side of this, of course, is when we receive a gift that isn’t what we expected or up to our expectations.  We may feel that the giver is unthoughtful or cheap.  There are far too many emotions wrapped up in the holiday gift giving experience.

Raising awareness of your decision to opt out of consumerism is an integral part of the process.  You don’t want to show up at the door without gifts in hand when last year you bought for everyone in the family.  Inform your family about your choice to not purchase gifts and be sure that they know that you do not expect any gifts from them.  Be concise in your explanation so they understand your feelings, don’t just inform them that you won’t be buying gifts this year.

Opting out of consumerism is not an excuse to opt out of the holidays.  Spending time with family and gathering around the dinner table to eat a home cooked meal is irreplaceable and the real spirit of the holidays.  Sharing the holidays in the company of your loved ones is more meaningful than any gift you can give.  Taking time to have a conversation, to really connect with people, is far more lasting than a chunk of cheddar cheese.

You may find that you are feeling pangs of guilt as the holidays approach.  If that is the case, find a meaningful way of communicating your appreciation for the people in your life.  A Hallmark Christmas card is a poor substitute for a handwritten letter.  You might try showing your love with a pile of your famous chocolate chip cookies.  The options really are limitless and none of them will be found at the Mall of America.

Filed under Consumerism, Family, Holidays

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