Monday, November 24th, 2008
That’s right! The wifey has now been bitten by the layoff bug. Her entire department is no longer with us. I came home for lunch to play Call of Duty 4 on the XBox 360. While I was in the middle of spreading my wrath on some inferior victims I got a phone call from the wifey. She informed me that she’d been let go.
Right away I knew she was serious but for some reason I didn’t even feel an, “awe damn” moment. Truth is, I’ve been telling her for the longest that she needs to find another job. She was comfortable so she stuck with them. Now they forced her hand and she’s currently unemployed.
Now we have to find a way to get health insurance since we were using her health benefits. It doesn’t help that we found out a couple of weeks ago that we’re expecting our 5th child (July 5th ‘09). Meanwhile, I’ve been researching some health insurance possibilities. Besides the expensive COBRA option ($775/ per month) to continue our same benefit coverage, I’ve been using ehealthinsurance.com to get some much more affordable quotes.
All in all, it’s not ALL BAD. For starters, she gets a severance package of 14 weeks pay (2 weeks for the 7 years she’s been there), 1 week of profit sharing as well as her 21 days of vacation pay. To top it all off, she still gets $423/week in unemployment benefits. So once again, our layoff situation may have us coming out smelling like a rose.
It’s feels GREAT to not have worry about a job loss. But at the same time, this is the 3rd big event to happen to us this year in the negative column. 3/21, I Lost my job (quickly found another one). 9/23, I lost my grandfather (he passed away without suffering or anything). Now this.
Notice the trend? Despite the hurdles, we’ve managed to take things in stride and be ok. I feel like everything is changing as I feel that the bad comes in threes. Our luck is finally turning and I’m optimistic about the next couple of months.
For starters, I’m in the middle of opening up a second business (tattooing). I hinted on it earlier in the year and it’s finally coming to fruition. MOdify Tattooing, LLC will be up and operational by the first of the year.
Well here’s to a GREAT ‘09. First round’s on me!
Posted in Inspirational, Personal debt, relapses | 2 Comments »
Sunday, November 9th, 2008
Live Below Your Means
Live a comfortable life, not a wasteful one. Do not spend to impress others. Do not live life trying to fool yourself into thinking wealth is measured in material objects. Manage your money wisely so your money does not manage you. Always live well below your means.
A penny saved is a penny earned.
- Benjamin Franklin
1. Redefine your definition of “rich”. – “I remember sitting in a cubicle at my first professional job staring at a picture of an SUV I wanted to buy (and eventually did). Now, I sit in my office and look at the pictures of my kids, and just outside my window I can see the beater I drive sitting in the company parking lot. What a difference a decade makes! To sum things up, my definition of being rich is having enough money to meet my family’s basic needs, a few of our wants, and to be able to give some away to others.” – via Frugal Dad
2. Borrow and share. Everyone wins! – “We borrowed a DVD from a friend instead of renting or buying and had a little snack from our own fridge! Way cheaper than using gas to drive to the theater/rental place, paying for a movie, and paying for a snack.” – via My Dollar Plan
3. Avoid the mall. – “Going to the mall is not entertainment! We used to go when we were bored. Of course, we usually ended up spending money while we were there. If you need clothes, then shop sales or go to stores that offer name-brands at a discount. You can save a ton on these items if you are a smart shopper. Dave Ramsey says, “Never pay retail!” We probably save $15 to $30 per month by staying away from the mall.” – via My Super-Charged Life
4. Limit your intake of advertisements. – “Advertising sucks. That’s the cold, hard truth. It’s engineered to make you feel like you’re incomplete, that you have an unfulfilled need, that you’re not good enough.” – via On Simplicity
5. Buy with cash. – “You can’t spend money you don’t have. Many bank accounts provide overdraft protection, so even with a debit card, it’s easier to go over your account balance than you think.” – via Simple Mom
6. Find a better deal and actually SAVE the difference. – “Regardless of what they sell, if you’ve switched companies for price reasons, save the difference. Think of phone companies, internet access, cell phones, credit cards, and others.” – via The Wisdom Journal
7. Adhere to a long-term investment strategy. – “I’m a long-term investor. The stock portion of my portfolio is spread over several mutual funds, a few ETFs and a few individual stocks. Each and every one of these holdings was carefully chosen, after thorough research. I believe in these stocks and funds. I consider them as my best bet in growing my money - LONG TERM.” – via MomGrind
8. Curb your consumerism! – “Have you ever watched how a child can play with a cardboard box for hours, and leave the toy that came in it by the wayside? How is it that children can enjoy themselves without a lot of “stuff”, but we as adults feel the need to reward ourselves by buying more stuff?” – via Billionaire Woman
9. Stay Healthy! Medical problems drain bank accounts. – “James M. Rippe, M.D is a best-selling author, world-renowned cardiologist, and founder of the Rippe Lifestyle Institute. He explains that if you look at all the risk factors for dying, the one that is most predictive is fitness level. In addition, an older person with high cardiovascular fitness is healthier than a younger person who is physically inactive. By increasing your fitness level, you can actually roll back your biological clock.” – via Abundance Blog
10. Stay in and relax. – “So, think about it the next time you go out. Are you going for with a purpose? Maybe the solution is to not go out at all. Stay home and save! Save up for something you really want or need.” – via The Jungle of Life
11. Gradually prepare yourself for a rainy day. – “Even when things are going great, and you feel on top of the world, you must always be prepared for a change. If you take the time and patience to set yourself up properly, then when things to take a turn for the worse, you will be prepared to handle it. If you live above your means, then when the slightest change occurs, you will not be prepared to adapt. Financial flexibility is more important then keeping up with the Jones’.” – via Yin vs. Yang
12. Stop competing. Forget about the Jones’ altogether. – “If getting rich makes us happy, then why don’t countries as a whole get happier as they grow wealthier? They discovered that as a country gets wealthier there’s no overall increase in happiness. Why? We continually compare our wealth against that of others. We are competitive and envious. Add to that the fact that Western countries encourage people to strive for more and more, and you have a formula that spins many into depression.” – via Color Your Life Happy
13. Get out of the “easy street” mentality. – “I think there is too much emphasis on the quick fix or the easy option in today’s society. For example taking diet pills to lose weight instead of the “hard option” - exercising and eating well…. money is sometimes being used as a substitute for hard work. Do you think there is an increasing expectation that you can get want you want by throwing money around instead of working hard and “earning” it? – via Forever Change
14. Avoid impulse buying. Buy things you truly need. – “Don’t you just love the excitement you feel after coming home with a new TV? Driving home in a new car? Opening the box on a new pair of shoes? I sure do. But, from watching the behavior of myself and my friends I’ve found that the new quickly becomes just another item. The excitement of novelty passes quickly.” – via Think Simple Now
15. Time is money. Properly manage your time. – “The fewer tasks you have, the less you have to do to organize them. Focus only on those tasks that give you the absolute most return on your time investment, and you will become more productive and have less to do. You will need only the simplest tools and system, and you will be much less stressed. I think that’s a winning combination. Focus always on simplifying, reducing, eliminating. And keep your focus on what’s important. Everything else is easy.” – via LifeDev
16. Find ways to give without spending. – “Want a quick, easy and (almost) free way to be guaranteed that you’ll make someone’s day special? Send them a letter. Why not set aside some time this weekend to sit down and write to a few people? If you don’t enjoy writing, try buying some nice postcards of your home town. If you’ve got an artistic streak, why not design your own note cards? You don’t have to write a long letter for it to be effective. It’s the thought that counts and the personal touch that makes it special.” –via Dumb Little Man
17. Don’t let greed and deceit get the best of you. – “According to Stephen R. Covey, if you reach an admirable end through the wrong means it will ultimately turn to dust in your hands. This is due to unintended consequences that are not seen or evident at first. The example he gives in The 8th Habit is: The parent who yells at their kids to clean their rooms will accomplish the end of having a clean room. But this very means has the potential to negatively affect relationships, and it is unlikely the room will stay clean when the parent leaves town for a few days. Now, to return to the topic of wealth, I think it is possible to see much of the world’s current financial problems as stemming from people who wrongly believe the ends justify the means. My advice? It is fine to aspire to wealth, but don’t lose sight of the means to accomplishing it.” – via The Change Blog
18. Never ever pay retail. – “You can easily save hundreds of dollars a year on clothing purchases by waiting for sales or shopping at discount retailers like Marshalls. Better yet, avoid name brand clothing all together.” – via Marc and Angel Hack Life 
Posted in Generate income, Inspirational, Personal debt, education | 4 Comments »
Friday, November 7th, 2008
Jesse Jackson, Colin Powell, my mother and countless others around the world had the same sense of accomplishment, pride and overall acceptance at 10pm CST once it was official that Barrack Obama was named the 44th president of the United States.
Obamas victory was a victory for America. Not because of the majority vote but because of it’s significance. His winning the election signifies the country is moving well past the hate filled days of slavery, white pride and power. It instead lays the foundation for us to stick together and to know that we can and will prevail in the face of adversity.
My only regret of it all is that my grandfather didn’t make it 3 extra months in order to celebrate in the moment. I can imagine him now, tearing up and snotting with his tissue in hand while showing admiration for something he thought he’d never see in his lifetime.
America, we have a chance to do something special here. Barack preaches personal responsibility for all. Some think he’s their savior for their financial woes while forgetting that it was their bad spending and debt habits that got them there in the first place.
THAT’S RIGHT! It’s time for YOU and ME to become personally responsible for our actions. By doing so, first we must educate ourselves. We must know that prime mortgages are a precursor to failure. We must know that, “keeping up with the Jones” will have us as stressed as them.
So before looking for a handout with foreclosure help or jobless claim help, think about what got you there in the first place. It wasn’t Obama, IT WAS YOU!
Prime lending? You have to educate yourself instead of getting caught in the NOW moment.
Jobless? (again) You have to educate yourself instead of looking for someone to magically pick you out of a lineup in order to secure employment.
Of course there’s circumstances that go beyond this article where things aren’t so pronounced but then again, maybe they are. Maybe if we’d take personal responsibility those unpronounced things may not happen to us also.
Posted in Inspirational, education, goals, purchases | 1 Comment »
Saturday, November 1st, 2008
I’ve Been away for a while and I apologize. I’ve been swamped with different projects and things. I’ve been paying really close attention to the market lately because of it’s downward spiral. It’s actually a good thing it’s like this.
Think of it this way… There’s a big sale at the moment. Instead of commodities such as clothes and other goods… It’s stocks and mutual funds.
To put things into perspective… I’ve lost 40+% from my 401k & IRA as well as other investment options. It’s horrible news for the short term but GREAT news for the long run. Not only am I will I get that 40% back down the road but with the prices I’m currently buying in at I’ll be gaining 40% on those purchases.
I’ve taken out $25000 recently and $20000 of it is going on long term investing. I’ve been really paying attention to the ticker (OIL). It’s currently REALLY low and bound to rebound once the summer rolls around for you short term investor’s.
Also at this time the ticker (FNARX) is a mutual fund I use in my Roth IRA investments and it’s bound to make a huge comeback long term as the world grows more dependent on natural resources.
Of course, I’m not a professional and you should always seek the help of one when thinking about investing. At the same time, I’m just informing you of what I’m going to jump in really soon.
I’ll keep you posted. I think I’m going to jump in on another one of these days when the market takes a huge dive Hopefully really soon. I have to admit it’s scary timing the market but considering we’re in our lower 30’s we have a lot of time to play around.
Til next time…
Posted in Generate income, education, purchases | 1 Comment »
