Last night I spent $25 to see the movie Hangover 2 with a friend. Twenty-five dollars! And that didn't include the popcorn and soda ($11, which she was kind enough to pay for). The movie was funny and the company was excellent, so I suppose it's money well spent, but I don't think I needed to see Zak Galifinakis' poorly shaved, lumpy head on the super "XD" wraparound immersion screen with ultra-surround sound, which apparently I paid a $2 premium on each ticket for. The seat were damn comfy though, I can't argue with that.
As my month long experiment comes to a close, celebrated with a larger than life biopic of the underground Thai party scene, monkeys and ladyboys included, I wonder how my habits as a consumer and personal financier are going to evolve from here. I'd like to think that the feeling of satisfaction I've gotten from making smarter choices is going to outweigh the attraction of instant gratification the world seems to constantly push down our throats. I could have declined the premium theater showing last night and waited an hour for regular old "D" theater...but I already had my wallet out and card in hand when I learned I was being extorted in the guise of some fancy tech bells and whistles that I'm not sure I even recognized during the movie anyway. So I bought the tickets and ground my teeth at the extra charge.
We are assaulted on all sides and at all times by this kind of crap. The hunt for value, quality and utility in a never ending sea of mass-marketed corporate sludge is a daunting task, to say the least. We're getting an IKEA here in Denver soon, and while I'm excited because I believe in their reputation for affordable quality furniture, I also know some of their stuff is junk and you have to be careful about what you get. And they're one of the more highly regarded "big box" retailers. Maybe that's true of any purveyor of goods, but it just seems more prevalent to me in the corporate retail setting. It's as if in the pursuit of profits the lowest common denominator of cost and quality are always met.
I like the idea of getting back to supporting smaller vendors and business. It's tough though. In order to do so you might have to drive a little further, or pay higher prices. I guess that's where the idea of value comes in. Is it worth more to help support a family business or a fledgling partnership instead of further lining the coffers of some profit-consumed mega-conglomerate? I'd like to think so, but I've got to protect my bottom line first. And that's where the conflict comes in. Make do with a morally and ethically superior purchase or spend less cash by going to Walmart?
I had a mentor when I lived in Philadelphia that used to practice what he called "recreational paranoia". In other words, always be on guard for someone trying to take advantage of you, but don't get stressed out about it. Take your time and look something over, consider it's quality for the price, and most importantly, if you can't afford it...don't frickin' buy it man! Maybe I need a little more recreational paranoia at times.
Tomorrow starts a new month. I've been debating if I should continue this blog or leave it encapsulated by the end of the experiment. I summed up in my last post that I know I still have work to do. Writing this blog has been a big part of staying (mostly) on track. I think I ought to keep doing it. Not sure I will keep updating it on Facebook though, after all we're grown up now. Paying our bills like big boys again. I guess if you want to keep reading, you'll have to check in on me here from time to time. For those of you that have stuck with me this far, I owe you all a great deal of thanks. I tried to write with some humility and honesty, and that feels vulnerable at times. I appreciate the support and good wishes.
So until next time, get paid, don't spend, and be careful if you ever get drunk in Bangkok. Seriously. I just watched a movie about it, that shit looks dangerous.
Tuesday, May 31, 2011
Saturday, May 28, 2011
Day 28: Approaching the Finish Line...Or Am I?
A month goes by fast. And it can feel endless at the same time. Earlier today I was reflecting on how events have transpired for me during this experiment, and with a couple of exceptions, I feel like I've accomplished what I set out to do. I curtailed, if not completely eliminated, wasteful spending. I learned a lot about my spending habits and what I need to do to change them. I made progress on past due bills and outstanding debts. I made mistakes. I exchanged some bad habits for others. I learned that I have a LOT of work left to do.
Like it or not, I need to keep in mind that this experiment is nothing but the first step in a long journey. Before all this trouble started, the layoffs, divorce, whatever, I used to think I had the next 20 years of my life figured out. I had a course plotted through my career, knew how I was going raise my family, had hopes even for an early retirement. That seems like someone else's life entirely now. Maybe in a way it is. I'm not really who I was back then. So much has happened to change my views on life and how to live it that I barely recognize that person I was just a couple of years ago.
But if I'm not that guy, then who am I? I'll try not to let this deteriorate into an existential identity crisis, but the question is a valid one. While it's certainly been a challenge so far, keeping ahead of monthly bills and saving what I can at the grocery store is only going to satisfy my ambition for so long. Eventually I'm going to want, and need, to move on to bigger things, and what little success I've had is already acting as a catalyst for that. I'm hesitant to move on too quickly though. I still feel like I'm not on solid ground. There are a few shadows looming over me that make me very nervous, and I'd like to get out from under them as quickly as possible. I'd rather not get specific, but one of the big ones starts with a "T" and ends with things you chop wood (and peoples' heads off) with. That's enough to make anybody nervous.
Moving forward into June, next fall, 2012 and further, I hope I can look back on this month and see it as the tipping point, the hammer dropping, the fire on the fuse. I can keep applying cliche metaphors, but you get the idea. I want all of this to stay near the forefront of my mind so that the daily process of living doesn't interfere with what I want to get out of life. That's been a challenge for me, and I'm still months, if not years, away from the position I want to be in. This is going to be less like a blitzkrieg and more like the trenches of the western front.
When I do get to that point, I want to be able to look down the road a little further and like what I see. Is early retirement still a possibility? I sure hope so. I like what I do professionally and find it very rewarding at times, but I'm never going to get rich doing it. I like the idea of becoming an entrepreneur, but it's a commonly known principle that you gotta spend money to make money. You only need to look at the title on the top of this page to see where I stand on that particular subject at the moment. Still, if the right opportunity and the right partners came along, I'd take a long, hard look at jumping ship from the working man's world and into my own business.
As for that early retirement? I'd like to think I'd be satisfied with having some property paid for and enough money in the bank and solid investments that I could work at what I wanted to, as much or as little as I wanted to, whether it generated a liveable income or not. By that time the little guy, god willing, will be all grown up and out on his own. Then the wind can blow me where it may. I sure wouldn't mind having my own tiki bar on a beach somewhere.
Or maybe I can go on a speaking tour with my hard earned formula for personal financial success...
Like it or not, I need to keep in mind that this experiment is nothing but the first step in a long journey. Before all this trouble started, the layoffs, divorce, whatever, I used to think I had the next 20 years of my life figured out. I had a course plotted through my career, knew how I was going raise my family, had hopes even for an early retirement. That seems like someone else's life entirely now. Maybe in a way it is. I'm not really who I was back then. So much has happened to change my views on life and how to live it that I barely recognize that person I was just a couple of years ago.
But if I'm not that guy, then who am I? I'll try not to let this deteriorate into an existential identity crisis, but the question is a valid one. While it's certainly been a challenge so far, keeping ahead of monthly bills and saving what I can at the grocery store is only going to satisfy my ambition for so long. Eventually I'm going to want, and need, to move on to bigger things, and what little success I've had is already acting as a catalyst for that. I'm hesitant to move on too quickly though. I still feel like I'm not on solid ground. There are a few shadows looming over me that make me very nervous, and I'd like to get out from under them as quickly as possible. I'd rather not get specific, but one of the big ones starts with a "T" and ends with things you chop wood (and peoples' heads off) with. That's enough to make anybody nervous.
Moving forward into June, next fall, 2012 and further, I hope I can look back on this month and see it as the tipping point, the hammer dropping, the fire on the fuse. I can keep applying cliche metaphors, but you get the idea. I want all of this to stay near the forefront of my mind so that the daily process of living doesn't interfere with what I want to get out of life. That's been a challenge for me, and I'm still months, if not years, away from the position I want to be in. This is going to be less like a blitzkrieg and more like the trenches of the western front.
When I do get to that point, I want to be able to look down the road a little further and like what I see. Is early retirement still a possibility? I sure hope so. I like what I do professionally and find it very rewarding at times, but I'm never going to get rich doing it. I like the idea of becoming an entrepreneur, but it's a commonly known principle that you gotta spend money to make money. You only need to look at the title on the top of this page to see where I stand on that particular subject at the moment. Still, if the right opportunity and the right partners came along, I'd take a long, hard look at jumping ship from the working man's world and into my own business.
As for that early retirement? I'd like to think I'd be satisfied with having some property paid for and enough money in the bank and solid investments that I could work at what I wanted to, as much or as little as I wanted to, whether it generated a liveable income or not. By that time the little guy, god willing, will be all grown up and out on his own. Then the wind can blow me where it may. I sure wouldn't mind having my own tiki bar on a beach somewhere.
Or maybe I can go on a speaking tour with my hard earned formula for personal financial success...
Sunday, May 22, 2011
Day 22: Newton's First Law
An object at rest tends to stay at rest. An object in motion tends to stay in motion.
In college I studied enough physics to choke a goat, but I never envisioned applying Sir Issac's observations to my own financial habits. This law is the substance behind the force we commonly call inertia and there are countless examples of its application in our world. If one were to change an object's inertia, one would need to apply some outside force on said object. For instance, when a car's break pads apply pressure and friction to the rotor, retarding the wheel's rotation, the car's inertia is reduced. Apply enough pressure and friction and eventually the car's inertia is reduced to zero. Simple, right?
This morning I made a payment on a debt that was 615 days past due. When I looked at the date on the last payment I realized it was from the month before I separated from my ex-wife. I think my old pal Newton would agree that was a significant outside force acting against the momentum of my debt repayment plans. Talk about pressure and friction. Sheesh.
I think the law holds true in both directions. Now that I'm moving in the direction of becoming debt free and gaining some financial stability I think it's easier to stay on top of it. And the more energy I put into the system as it rolls along, the greater my overall inertia. I just hope it doesn't turn out to be a big money merry-go-round. Those things always make me dizzy and sick to my stomach, especially when people are standing around it in a circle, spinning it faster and faster. Nope, it will be strictly linear momentum for me. Maybe someday I can even start to see some exponential returns.
Before I flog this dead horse of an analogy any further, I'll sum it up by saying it was good to get the ball rolling again today. I think a part of this battle is to not backslide once the "fast" is over, so I'm hoping that relating my spending habits back to things I already understand, and can visualize, is going to be a useful tool in staying on track.
The good news is, at least I sent a payment on the damn thing. It was a small victory when I sealed that envelope. I used to get some real satisfaction out of sitting down every month and squaring away bills and setting things in order. I suppose that suits my engineer's brain, but I've been so preoccupied with other things I had forgotten what a simple pleasure that really is. It was a good reminder.
PS: I'm aware of some of the conflicts between Quantum and Newtonian Physics. Stay tuned for my next post when I relate my income level to the sub-atomic particle known as the quark.
In college I studied enough physics to choke a goat, but I never envisioned applying Sir Issac's observations to my own financial habits. This law is the substance behind the force we commonly call inertia and there are countless examples of its application in our world. If one were to change an object's inertia, one would need to apply some outside force on said object. For instance, when a car's break pads apply pressure and friction to the rotor, retarding the wheel's rotation, the car's inertia is reduced. Apply enough pressure and friction and eventually the car's inertia is reduced to zero. Simple, right?
This morning I made a payment on a debt that was 615 days past due. When I looked at the date on the last payment I realized it was from the month before I separated from my ex-wife. I think my old pal Newton would agree that was a significant outside force acting against the momentum of my debt repayment plans. Talk about pressure and friction. Sheesh.
I think the law holds true in both directions. Now that I'm moving in the direction of becoming debt free and gaining some financial stability I think it's easier to stay on top of it. And the more energy I put into the system as it rolls along, the greater my overall inertia. I just hope it doesn't turn out to be a big money merry-go-round. Those things always make me dizzy and sick to my stomach, especially when people are standing around it in a circle, spinning it faster and faster. Nope, it will be strictly linear momentum for me. Maybe someday I can even start to see some exponential returns.
Before I flog this dead horse of an analogy any further, I'll sum it up by saying it was good to get the ball rolling again today. I think a part of this battle is to not backslide once the "fast" is over, so I'm hoping that relating my spending habits back to things I already understand, and can visualize, is going to be a useful tool in staying on track.
The good news is, at least I sent a payment on the damn thing. It was a small victory when I sealed that envelope. I used to get some real satisfaction out of sitting down every month and squaring away bills and setting things in order. I suppose that suits my engineer's brain, but I've been so preoccupied with other things I had forgotten what a simple pleasure that really is. It was a good reminder.
PS: I'm aware of some of the conflicts between Quantum and Newtonian Physics. Stay tuned for my next post when I relate my income level to the sub-atomic particle known as the quark.
Monday, May 16, 2011
Day 16: Halftime Extravaganza
I write this post today from a public place. I'm only half facetious when I say I think it solidifies my hipster cred to be blogging on my laptop as the passersby pass by. I could be at Starbucks drinking a $5 cup of coffee, or I could be at Baker Street Pub drinking a $5 beer. Both establishments offer free wi-fi as a way to suck you in. 500% markup beverage addiction enablers that project the air of comfort and relaxation as they peddle their tasty and overpriced wares.
But I'm not at the coffee shop. I'm not at the pub. I'm in a place more appropriate and yet less fashionable. I'm at the public library. Now this is free wi-fi...or at least wi-fi pre-paid by my tax dollars...that is if I wasn't late on my taxes. Borrowed wi-fi? Refinanced wi-fi? Whatever the correct term for it is, I'm just glad it was available to me as I kill some time before a dinner date. More on the date in a minute.
Until a few months ago I hadn't been in a library since college, or a public library since high school. I love to read, but it was as if as soon as I started being able to afford to buy my own books this giant treasure trove of FREE books ceased to exist in my stream of consciousness. How many boxes of books have I carted from apartment to apartment over the years? How many times have I actually un-boxed and re-read any of them? The answers are: too many and not nearly enough.
And it gets worse (or better depending on your relative amount of participation at your local library). The library has movies! and DVDs! Some of it is really good stuff too! And they let you keep it for basically as long as you want. It's like low-tech Netflix...err...or something.
I rediscovered the library because I wanted to introduce my son to it. He's 3 now and already showing some aptitude for letters and numbers, not to mention a startling knack for jigsaw puzzles. One Saturday morning last fall we jumped in my truck and drove the (very) few short blocks to the library. I had to literally drag him out of there and hour later. He didn't want to leave...and frankly neither did I. I had forgotten how much the simple pleasure of being surrounded by real, tangible, near limitless knowledge is a comfort to me..and it's all right there for the taking. I'm reminded of the scene in Good Will Hunting when Will rips on the Harvard grad student for wasting his money when he could have gotten the same education for $3.50 in late fees on his library card.
Will gets the girl too. "Do you like apples?" "Yeah." "Well I got her number. How you like them apples?"
Which leads me to part two of tonight's post. I have a date tonight. I intend to write a full post about the financial pitfalls that accompany the pursuit of eternal happiness with a mate...or even just a night out with some attractive company, but I digress. It's unlikely I will extract myself, and my financial fast, from this evening unscathed. I had lobbied for a quiet (and no cost) night in, watching movies at my place...which was denied by the other half of this engagement in favor of meeting for a bite to eat. Now this doesn't fit in at all with my plans for this month, and I certainly could have politely declined, but in the post-divorce, single parenting, 35 and over world, turning down a hot (or even luke-warm) date is akin to looking a gift horse in the mouth...and my date has much nicer teeth than Mr. Ed ever did.
I suspect that since she suggested we eat out that she will offer to pay. I'm prepared to cover my portion of the night if need be...and the entirety of the check if this ends up as something a little less...modern. Whatever the result, it's becoming more and more clear that not spending money while still being an active participant in the world I live in is a more difficult endeavor than I imagined.
But I'm not at the coffee shop. I'm not at the pub. I'm in a place more appropriate and yet less fashionable. I'm at the public library. Now this is free wi-fi...or at least wi-fi pre-paid by my tax dollars...that is if I wasn't late on my taxes. Borrowed wi-fi? Refinanced wi-fi? Whatever the correct term for it is, I'm just glad it was available to me as I kill some time before a dinner date. More on the date in a minute.
Until a few months ago I hadn't been in a library since college, or a public library since high school. I love to read, but it was as if as soon as I started being able to afford to buy my own books this giant treasure trove of FREE books ceased to exist in my stream of consciousness. How many boxes of books have I carted from apartment to apartment over the years? How many times have I actually un-boxed and re-read any of them? The answers are: too many and not nearly enough.
And it gets worse (or better depending on your relative amount of participation at your local library). The library has movies! and DVDs! Some of it is really good stuff too! And they let you keep it for basically as long as you want. It's like low-tech Netflix...err...or something.
I rediscovered the library because I wanted to introduce my son to it. He's 3 now and already showing some aptitude for letters and numbers, not to mention a startling knack for jigsaw puzzles. One Saturday morning last fall we jumped in my truck and drove the (very) few short blocks to the library. I had to literally drag him out of there and hour later. He didn't want to leave...and frankly neither did I. I had forgotten how much the simple pleasure of being surrounded by real, tangible, near limitless knowledge is a comfort to me..and it's all right there for the taking. I'm reminded of the scene in Good Will Hunting when Will rips on the Harvard grad student for wasting his money when he could have gotten the same education for $3.50 in late fees on his library card.
Will gets the girl too. "Do you like apples?" "Yeah." "Well I got her number. How you like them apples?"
Which leads me to part two of tonight's post. I have a date tonight. I intend to write a full post about the financial pitfalls that accompany the pursuit of eternal happiness with a mate...or even just a night out with some attractive company, but I digress. It's unlikely I will extract myself, and my financial fast, from this evening unscathed. I had lobbied for a quiet (and no cost) night in, watching movies at my place...which was denied by the other half of this engagement in favor of meeting for a bite to eat. Now this doesn't fit in at all with my plans for this month, and I certainly could have politely declined, but in the post-divorce, single parenting, 35 and over world, turning down a hot (or even luke-warm) date is akin to looking a gift horse in the mouth...and my date has much nicer teeth than Mr. Ed ever did.
I suspect that since she suggested we eat out that she will offer to pay. I'm prepared to cover my portion of the night if need be...and the entirety of the check if this ends up as something a little less...modern. Whatever the result, it's becoming more and more clear that not spending money while still being an active participant in the world I live in is a more difficult endeavor than I imagined.
Friday, May 13, 2011
Day 13: Ouch. From the baseboard to the rutted road and back again.
I've dreaded writing this post all day. Last night I went out to celebrate a friend's birthday and fell off the wagon, so to speak. I bought him, his girlfriend, myself, and another friend a round of shots, plus a couple of cocktails for myself. Exactly the type of purchase I set out to avoid this month. I'm disappointed in myself for caving so quickly, but I'm inclined to treat it as a lesson learned, re-shoulder the load, and trudge on.
So where is the lesson here? Well, for me, I'm compelled to be generous with my money in that setting. For many years as a bartender I enjoyed a liberal control of the libations at my disposal and often put that to good use for those in the bar celebrating a birthday. It's a small gesture that I find is often greatly appreciated. Unfortunately I'm no longer playing with the house's money, so a round of shots in a downtown bar carries a heftier price than it once did. Would the night have been any less fun for my friend and I had I not ponied up the cash for that round? Probably not, but it did afford us a few minutes away from the rest of the crowd and a chance to get a quick respite from the whirling dervish that is a birthday party in a crowded bar. I would say there's some additional value there than just what the drinks alone provided...or maybe I'm just trying to justify the irresponsibility of it.
I don't think an act of generosity or kindness should be avoided in times of financial duress, but like anything else I've filtered through this lens of financial responsibility, a little creativity and some careful planning go a long way to keeping expenses at a minimum. I was on the fence about going to the party in the first place and decided last minute to go. I hadn't really prepared myself to avoid the trap of spending money unnecessarily. If there's a lesson in it for me, it may very well be to take a minute before leaving the house and center my thoughts on goals loftier than what one night on the town can offer. Myopia strikes when I least expect it sometimes.
Where gifts are concerned I think it really is the thought that counts. I'm not particularly crafty or artistic, but I'm certain I could have come up with somthing for the same cost (or less!) as those shots that would have been more meaningful and more permanent and done more to cement our friendship than knocking back a couple of Purple Hooters did.
I woke up this morning and recommitted myself to the task at hand. I did not spend any money today, so I guess now I'm back on the wagon, no disrespect meant to those who use that term for something far more serious. I did briefly consider hitting up the McDonald's drive-through for a greasy hangover breakfast. Instead, I turned around, went back inside, and made myself a damn fine bacon and egg breakfast sandwich with ingredients I already had in the kitchen.
I'm certain this isn't the last time I'll be faced with this dilemma. The summer party season is upon us. I think I'll go back to being the designated driver and also hit up the flea market for that perfect, better than Hallmark, quirky, re-furbished ceramic chicken for the birthday boy's kitchen counter.
So where is the lesson here? Well, for me, I'm compelled to be generous with my money in that setting. For many years as a bartender I enjoyed a liberal control of the libations at my disposal and often put that to good use for those in the bar celebrating a birthday. It's a small gesture that I find is often greatly appreciated. Unfortunately I'm no longer playing with the house's money, so a round of shots in a downtown bar carries a heftier price than it once did. Would the night have been any less fun for my friend and I had I not ponied up the cash for that round? Probably not, but it did afford us a few minutes away from the rest of the crowd and a chance to get a quick respite from the whirling dervish that is a birthday party in a crowded bar. I would say there's some additional value there than just what the drinks alone provided...or maybe I'm just trying to justify the irresponsibility of it.
I don't think an act of generosity or kindness should be avoided in times of financial duress, but like anything else I've filtered through this lens of financial responsibility, a little creativity and some careful planning go a long way to keeping expenses at a minimum. I was on the fence about going to the party in the first place and decided last minute to go. I hadn't really prepared myself to avoid the trap of spending money unnecessarily. If there's a lesson in it for me, it may very well be to take a minute before leaving the house and center my thoughts on goals loftier than what one night on the town can offer. Myopia strikes when I least expect it sometimes.
Where gifts are concerned I think it really is the thought that counts. I'm not particularly crafty or artistic, but I'm certain I could have come up with somthing for the same cost (or less!) as those shots that would have been more meaningful and more permanent and done more to cement our friendship than knocking back a couple of Purple Hooters did.
I woke up this morning and recommitted myself to the task at hand. I did not spend any money today, so I guess now I'm back on the wagon, no disrespect meant to those who use that term for something far more serious. I did briefly consider hitting up the McDonald's drive-through for a greasy hangover breakfast. Instead, I turned around, went back inside, and made myself a damn fine bacon and egg breakfast sandwich with ingredients I already had in the kitchen.
I'm certain this isn't the last time I'll be faced with this dilemma. The summer party season is upon us. I think I'll go back to being the designated driver and also hit up the flea market for that perfect, better than Hallmark, quirky, re-furbished ceramic chicken for the birthday boy's kitchen counter.
Wednesday, May 11, 2011
Day 11: "Screws fall out all the time. The world's an imperfect place."
A frickin' can opener. I'm going to go spend money tonight on a frickin' can opener because mine is broken. Normally not an emergency purchase, but I'm having friends over for dinner tonight and the pot of turkey & black bean chili that is supposed to be simmering all day on my stove is not assembled yet for want of a cutting edge, a couple of gears, a hinge and two handles. "The best laid plans" and all that, I suppose. Up until the failure of that simple machine I had things lined up neatly for a zero cost and fun evening.
I'm sure the night is not totally ruined, I can still get the chili together after work, and technically a can opener is a "necessary" purchase, so the fast is preserved, but it got me thinking about the need for an emergency fund. Having a can opener break is a relatively small mechanical failure to overcome. Losing the transmission in my Xterra is something altogether more serious, and one I'm not at all prepared for right now. One of the financial gurus that was recommended to me, Dave Ramsey, advocates a $1000 emergency fund and I think that's a good round number to start with. Assembling that kind of reserve cash in the middle of extracting oneself from debt is a delicate undertaking, though. The dilemma for me is deciding how much is appropriate to set aside for the emergency fund when that money would obviously need to be withheld from making a payment on something already in arrears. I'm going to have to do some thinking on that one.
I overheard a conversation once in which one participant was giving another advice. His theory was that you should treat a savings account as just another bill that needs to be paid every month. Whether the amount of the "bill" is $20 or $200, it gets paid in its own time, just like all the others. I always liked that idea and as I am getting back to a regular and responsible track of making payments on time, and in full, I'm going to work that in. From what I've read so far and my own introspection on the matter, I'm learning that what mindset you put yourself in is just as important as the dollars and cents part of it.
The fact is, if something catastrophic were to happen right now I'd be up shit creek without a boat. I've just started clawing my way out of the hole I'm in and any significant unplanned expenses would send me tumbling right back down to where I started from...or even lower. Facing up to the reality of this situation is frightening at times, but I can't let fear be a deterrent or an excuse. There is simply far too much at stake for that nonsense.
I'm sure the night is not totally ruined, I can still get the chili together after work, and technically a can opener is a "necessary" purchase, so the fast is preserved, but it got me thinking about the need for an emergency fund. Having a can opener break is a relatively small mechanical failure to overcome. Losing the transmission in my Xterra is something altogether more serious, and one I'm not at all prepared for right now. One of the financial gurus that was recommended to me, Dave Ramsey, advocates a $1000 emergency fund and I think that's a good round number to start with. Assembling that kind of reserve cash in the middle of extracting oneself from debt is a delicate undertaking, though. The dilemma for me is deciding how much is appropriate to set aside for the emergency fund when that money would obviously need to be withheld from making a payment on something already in arrears. I'm going to have to do some thinking on that one.
I overheard a conversation once in which one participant was giving another advice. His theory was that you should treat a savings account as just another bill that needs to be paid every month. Whether the amount of the "bill" is $20 or $200, it gets paid in its own time, just like all the others. I always liked that idea and as I am getting back to a regular and responsible track of making payments on time, and in full, I'm going to work that in. From what I've read so far and my own introspection on the matter, I'm learning that what mindset you put yourself in is just as important as the dollars and cents part of it.
The fact is, if something catastrophic were to happen right now I'd be up shit creek without a boat. I've just started clawing my way out of the hole I'm in and any significant unplanned expenses would send me tumbling right back down to where I started from...or even lower. Facing up to the reality of this situation is frightening at times, but I can't let fear be a deterrent or an excuse. There is simply far too much at stake for that nonsense.
Friday, May 6, 2011
Day 6: Food for thought
One night last week, before the fast, I had Chinese food delivered for dinner. I had a friend over and we ordered enough that we both had a good sized meal plus some left-overs. The bill was close to $30. It was one of the purchases I mentioned in an earlier post as something I considered to be wasteful spending. Tonight the last of the rice from that meal went into a pan with some bean sprouts, diced green onion, a fried egg, and a little soy sauce.The result was a tasty and filling meal of homemade fried rice, as good or better than anything mama-san makes over at the Golden Dragon.
I've said before that food is my biggest weakness when it comes to indiscriminate spending. I'm blessed with a lean frame and a fast metabolism, plus I keep a pretty active lifestyle. At 35 I'm still within a stone's throw of the weight I graduated high school at. (If you're converting at home, one English stone is 14 standard pounds.) The result is that I get to eat pretty much whatever I want without any noticeable detrimental effects. I'm certain that it won't last forever, but so far I've been fortunate...or have I?
Never having to think about what I'm eating means up until now anything goes, at any time. 2pm breakfast burrito? Sure. 9pm frozen pizza and a plate of home fries? Why not? 10am helping of BBQ potato chips? Don't mind if I do. I've got Homer Simpson's appetite in Napoleon Dynamite's body. That isn't to say I don't make healthier choices at times. Last night for dinner I made a great meal of sauteed shrimp and pea pods next to a seared tuna filet. It was light, delicious, and healthy.
I love to cook, and often experiment in the kitchen. The aforementioned sauteed shrimp was covered in an orange-ginger glaze that I had reduced in a pan of pickled sweet onions. I hadn't tried it before, but it turned out great. I get a lot of inspiration from the chefs on the Food Network. They of the unlimited grocery budget and numerous prep and kitchen staff members. Cooking that way at home can get expensive.
So: bottomless pit for a stomach plus creative expression in the kitchen equals a hefty grocery bill every month.
For a while there it was completely out of control. I was spending hundreds of dollars a month on groceries for one adult male and one toddler. For all my ambition in the kitchen, my busy social calendar was keeping me away from it most nights, so food was going to waste, plus I was spending money on food while I was out and about. Food was getting thrown out of my refrigerator uneaten every week.
Eventually I got smarter about the quantity of food I was purchasing, if not the price. I was still on the Seefood Diet, even at the grocery store. If something looked good I threw it in the cart and didn't think much of it until the sticker shock at the register took full effect. Even then I chalked it up to my "skinny kid's gotta eat" mantra and went home to put groceries away and ignore the electric bill sitting on the counter.
A few months back I started changing my mentality about food shopping. I had begun to recognize that tossing produce out that had gone bad or ripping through two bags of chips in a weekend wasn't doing my wallet any favors. Especially when I was still hitting up drive-thrus on the regular or grabbing lunch twice a week from Qdoba and Smashburger. (Smashburger is off the hook by the way. That IS a tasty burger).
I knew that if I was going to make any headway in my financial situation I needed to get the food habit under control. Then I got to thinking that I could apply my culinary talents for good instead of evil. I started planning meals that would generate plenty of leftovers, then taking the time on a Saturday or Sunday evening to portion everything out. I had varying degrees of success with that strategy, but for the most part it cut into the grocery and fast food bills. This past Sunday was my crowning achievement. With the help of my friend Matt's Costco card and my decision to make this financial fast seriously, I brought home a gallon of pureed tomatoes and a gallon of plain tomato sauce. The result, when combined with a few cloves of garlic and some help from my spice cabinet, was a huge pot of marinara sauce, plus extra tomatoes and sauce separated in the freezer for later use. I boiled a box of spaghetti and cooked some italian sausage (also from Costco) and voila!, an entire weeks worth of hot lunches (and a dinner or two) neatly portioned out in my fridge for under $15.
So there are ways out there to be more efficient and cost effective with food money. Is a week's worth of marinara as exciting as, say, a bacon wrapped filet minon? Not even close, but with a little creativity and the right prep work, it turned out to be pretty damned good and kept me fed all week. An added benefit is that the more home cooked food I eat, the less I crave processed junk food.
I could write endlessly about food, recipes, ideas, delicious bacon, and any number of related topics. Maybe that should be the subject of another blog entirely. I'll close this post by asking for any input you've got on recipes with a high yield of satisfaction and leftovers. Bonus points if it's healthy too...but if not I'll just open another compartment in the hollow leg and keep on shovelin'.
I've said before that food is my biggest weakness when it comes to indiscriminate spending. I'm blessed with a lean frame and a fast metabolism, plus I keep a pretty active lifestyle. At 35 I'm still within a stone's throw of the weight I graduated high school at. (If you're converting at home, one English stone is 14 standard pounds.) The result is that I get to eat pretty much whatever I want without any noticeable detrimental effects. I'm certain that it won't last forever, but so far I've been fortunate...or have I?
Never having to think about what I'm eating means up until now anything goes, at any time. 2pm breakfast burrito? Sure. 9pm frozen pizza and a plate of home fries? Why not? 10am helping of BBQ potato chips? Don't mind if I do. I've got Homer Simpson's appetite in Napoleon Dynamite's body. That isn't to say I don't make healthier choices at times. Last night for dinner I made a great meal of sauteed shrimp and pea pods next to a seared tuna filet. It was light, delicious, and healthy.
I love to cook, and often experiment in the kitchen. The aforementioned sauteed shrimp was covered in an orange-ginger glaze that I had reduced in a pan of pickled sweet onions. I hadn't tried it before, but it turned out great. I get a lot of inspiration from the chefs on the Food Network. They of the unlimited grocery budget and numerous prep and kitchen staff members. Cooking that way at home can get expensive.
So: bottomless pit for a stomach plus creative expression in the kitchen equals a hefty grocery bill every month.
For a while there it was completely out of control. I was spending hundreds of dollars a month on groceries for one adult male and one toddler. For all my ambition in the kitchen, my busy social calendar was keeping me away from it most nights, so food was going to waste, plus I was spending money on food while I was out and about. Food was getting thrown out of my refrigerator uneaten every week.
Eventually I got smarter about the quantity of food I was purchasing, if not the price. I was still on the Seefood Diet, even at the grocery store. If something looked good I threw it in the cart and didn't think much of it until the sticker shock at the register took full effect. Even then I chalked it up to my "skinny kid's gotta eat" mantra and went home to put groceries away and ignore the electric bill sitting on the counter.
A few months back I started changing my mentality about food shopping. I had begun to recognize that tossing produce out that had gone bad or ripping through two bags of chips in a weekend wasn't doing my wallet any favors. Especially when I was still hitting up drive-thrus on the regular or grabbing lunch twice a week from Qdoba and Smashburger. (Smashburger is off the hook by the way. That IS a tasty burger).
I knew that if I was going to make any headway in my financial situation I needed to get the food habit under control. Then I got to thinking that I could apply my culinary talents for good instead of evil. I started planning meals that would generate plenty of leftovers, then taking the time on a Saturday or Sunday evening to portion everything out. I had varying degrees of success with that strategy, but for the most part it cut into the grocery and fast food bills. This past Sunday was my crowning achievement. With the help of my friend Matt's Costco card and my decision to make this financial fast seriously, I brought home a gallon of pureed tomatoes and a gallon of plain tomato sauce. The result, when combined with a few cloves of garlic and some help from my spice cabinet, was a huge pot of marinara sauce, plus extra tomatoes and sauce separated in the freezer for later use. I boiled a box of spaghetti and cooked some italian sausage (also from Costco) and voila!, an entire weeks worth of hot lunches (and a dinner or two) neatly portioned out in my fridge for under $15.
So there are ways out there to be more efficient and cost effective with food money. Is a week's worth of marinara as exciting as, say, a bacon wrapped filet minon? Not even close, but with a little creativity and the right prep work, it turned out to be pretty damned good and kept me fed all week. An added benefit is that the more home cooked food I eat, the less I crave processed junk food.
I could write endlessly about food, recipes, ideas, delicious bacon, and any number of related topics. Maybe that should be the subject of another blog entirely. I'll close this post by asking for any input you've got on recipes with a high yield of satisfaction and leftovers. Bonus points if it's healthy too...but if not I'll just open another compartment in the hollow leg and keep on shovelin'.
Tuesday, May 3, 2011
Day 3: What is essential?
Obviously it's different for everyone, but it's a question that needs to be answered. In defining what one "needs" in life to survive, it stands to reason all other acquisitions get defined as "wants", right? Is it that simple? To split everything into needs and wants and then only purchase wants after needs are provided for? Are there sub-sets and categories, overlaps and gray areas? I think the answer to all of those questions is "yes", but for the purpose of my exercise, I'm going to try and stick to basic, monthly needs. Those needs are the "essentials" I'm attempting to restrict my spending to during the fast. In the simplest terms, a person needs food, water, and shelter to survive, but that's a pretty meager existence when reduced to that level. I still need to operate in society as we know it. I'm not quite ready yet to establish my hermitage in the mountains, as appealing as that sounds some days.
So what's first? The big two are rent and car payment. As an aside I want to point out how much I loathe renting. I did it for over 10 years before I bought a house and now I'm heading into my 3rd year of renting again after. A quick estimate shows I've poured out close to $100,000 in rent in my life. That's a sizable chunk of a mortgage! and all that money went into someone else's pocket. The benefits of renting vs buying is probably best left to an entirely separate discussion, but it really grinds my gears when I see it laid out like that.
Back to the essentials. The car payment needs to get paid, period. It's a bank loan and letting it go delinquent would be a painful hit to my already damaged credit rating. Beyond that, transportation is vital in our world, and I live in an area that's spread out enough that walking or biking is impractical, at least where getting to work or taking care of my son is concerned. Car insurance, and insurance in general, is another racket that raise my ire, but again that's probably best left to a separate commentary. Gasoline is a necessity to make the car go, but at $3.50+ a gallon and rising, conservation is the name of that game.
Other monthly bills include gas & electric, phone, and cable & internet. Now the last three could be considered luxuries and I'd have a hard time arguing against it. I have a smartphone with a hefty data plan. I'm not sure the amount I use it justifies the expense. Yes a phone is essential in today's world, especially because I don't have an active land line, but a little analysis could go a long way to saving some bucks. It's an area I think I could, and should, trim back a little. As for the cable and internet I could live without both, and have, at times. I don't watch a ton of TV, but what I do watch is typically educational programming on cable. And cartoons for my son are now almost exclusively on cable. Does he need them? No, but he's delighted by some of them and I really don't want to deny him that pleasure. Network TV, for the most part, doesn't usually entertain me beyond certain sporting events. Internet is such a good tool it's hard to justify NOT having it these days. One might lament the rampant connectivity of our world, but when you need a certain piece of information it's hard to argue with it's resourcefulness.
The other bills that come in for me are student loans. That's been a tough one to manage since I got out of school. It's a significant portion of my monthly expenditures and usually the first thing that gets set aside when money is tight. I put student loans in the category of things I'd do differently if I could go back and try again. For starters I would avoid Sallie Mae like the plague. I work with three separate student loan entities and they are by far the worst. They change their policies randomly and without warning, their customer service is abhorrent, and god help you if you ask to defer some payments in a time of crisis. I've done some research on the company and they have a powerful influence in Washington that has allowed them to write their own rules as a lender. Stay away from them at all costs. Rant over, but the payment get made as they are an obligation I took on in good faith and need to repay.
After the bills, there isn't much left to tackle besides food. I intend to put up a separate post, or maybe more, about food. I love to cook and I love to shop at the grocery store. It's where some of my biggest impulsive purchases happen. In recent months I've tried to be more frugal as well as stock up on sundries when their prices drop, not necessarily when I need them. I know there are other tactics to be employed to cut the grocery bill and I intend to examine some of them later on.
So that's it. The monthly expenses that are "essentials". Seems pretty straight forward. Some of the bills are behind a month or so and need to get squared away. One other thing I'm going to try and do is line up some of the due dates so that I can pay bills in a couple of batches instead of having a bunch or random dates throughout the month. That should help make budgeting easier too.
The challenge now is going to be restricting my spending to just the items listed above. 3 days in and so far so good, but the next couple of nights I have some social engagements planned. That's going to be the real test. I've already decided to be the designated driver, which isn't the worst idea I've ever had. I'm also thinking I should eat dinner before going out, so the temptation isn't there to drop a bunch of cash on those damn delicious chicken wings and other fried bar foods. Wish me luck! Or more accurately, wish me self control.
So what's first? The big two are rent and car payment. As an aside I want to point out how much I loathe renting. I did it for over 10 years before I bought a house and now I'm heading into my 3rd year of renting again after. A quick estimate shows I've poured out close to $100,000 in rent in my life. That's a sizable chunk of a mortgage! and all that money went into someone else's pocket. The benefits of renting vs buying is probably best left to an entirely separate discussion, but it really grinds my gears when I see it laid out like that.
Back to the essentials. The car payment needs to get paid, period. It's a bank loan and letting it go delinquent would be a painful hit to my already damaged credit rating. Beyond that, transportation is vital in our world, and I live in an area that's spread out enough that walking or biking is impractical, at least where getting to work or taking care of my son is concerned. Car insurance, and insurance in general, is another racket that raise my ire, but again that's probably best left to a separate commentary. Gasoline is a necessity to make the car go, but at $3.50+ a gallon and rising, conservation is the name of that game.
Other monthly bills include gas & electric, phone, and cable & internet. Now the last three could be considered luxuries and I'd have a hard time arguing against it. I have a smartphone with a hefty data plan. I'm not sure the amount I use it justifies the expense. Yes a phone is essential in today's world, especially because I don't have an active land line, but a little analysis could go a long way to saving some bucks. It's an area I think I could, and should, trim back a little. As for the cable and internet I could live without both, and have, at times. I don't watch a ton of TV, but what I do watch is typically educational programming on cable. And cartoons for my son are now almost exclusively on cable. Does he need them? No, but he's delighted by some of them and I really don't want to deny him that pleasure. Network TV, for the most part, doesn't usually entertain me beyond certain sporting events. Internet is such a good tool it's hard to justify NOT having it these days. One might lament the rampant connectivity of our world, but when you need a certain piece of information it's hard to argue with it's resourcefulness.
The other bills that come in for me are student loans. That's been a tough one to manage since I got out of school. It's a significant portion of my monthly expenditures and usually the first thing that gets set aside when money is tight. I put student loans in the category of things I'd do differently if I could go back and try again. For starters I would avoid Sallie Mae like the plague. I work with three separate student loan entities and they are by far the worst. They change their policies randomly and without warning, their customer service is abhorrent, and god help you if you ask to defer some payments in a time of crisis. I've done some research on the company and they have a powerful influence in Washington that has allowed them to write their own rules as a lender. Stay away from them at all costs. Rant over, but the payment get made as they are an obligation I took on in good faith and need to repay.
After the bills, there isn't much left to tackle besides food. I intend to put up a separate post, or maybe more, about food. I love to cook and I love to shop at the grocery store. It's where some of my biggest impulsive purchases happen. In recent months I've tried to be more frugal as well as stock up on sundries when their prices drop, not necessarily when I need them. I know there are other tactics to be employed to cut the grocery bill and I intend to examine some of them later on.
So that's it. The monthly expenses that are "essentials". Seems pretty straight forward. Some of the bills are behind a month or so and need to get squared away. One other thing I'm going to try and do is line up some of the due dates so that I can pay bills in a couple of batches instead of having a bunch or random dates throughout the month. That should help make budgeting easier too.
The challenge now is going to be restricting my spending to just the items listed above. 3 days in and so far so good, but the next couple of nights I have some social engagements planned. That's going to be the real test. I've already decided to be the designated driver, which isn't the worst idea I've ever had. I'm also thinking I should eat dinner before going out, so the temptation isn't there to drop a bunch of cash on those damn delicious chicken wings and other fried bar foods. Wish me luck! Or more accurately, wish me self control.
Sunday, May 1, 2011
Day 1: How bad is it?
The truth is I really don't know. I have an approximate idea of how much I owe, and to whom, but if you asked me to break it down to the dollars and cents, I couldn't do it. This is a matter of some concern to me. I spent 5 years in an elite engineering program developing my ability to analyze data and apply higher order math to complex problems, and I'm not even sure how much I have left to pay off the damn degree. I've designed infrastructure systems for multi-million dollar construction projects, but I couldn't tell you exactly how much I owe monthly for car insurance.You would think something as mathematically simple as making sure the plus column exceeds the minus column wouldn't be out of my mental grasp, but I am humbled by my complete inability to do so up to now.
What I'm learning though, is that it's not just about the numbers. If anything, the money is just a way of keeping score for all the good and bad choices one makes. Facing up to this situation is forcing me to take a good hard look at a lot of things I could have done better, or would choose differently if I had it to do over again. Spending habits, educational and career choices, saving and investing, lifestyle choices, it's all right there laid out for me in my bank statement.
Speaking of which, I spent a little time with my most recent bank statement today. Last month I made eleven separate purchases under $20 on food, drink, or entertainment for a total of $88. Not one was anything I needed or got any particular value out of, other than some instant gratification. If I push that out to purchases under $30 on the same type of items. the total jumps to almost $200, and I had nothing to show for it at the end of the month except some empty bottles in the trash and some wrappers shoved into the door pocket of my truck.
Now I'm not against splurging from time to time, and I think a well prepared meal in a nice restaurant is as good a way to spend your entertainment budget, not to mention an evening out with good company, but somehow I don't think hitting up the Carl's Jr. drive-thru or stopping for a breakfast burrito at Tamale Kitchen qualifies under the same criteria. I'm nickle and dime-ing myself to financial ruin on junk food and beer. I can hardly believe it as I write it, but the numbers don't lie.
I received a lot of good feedback from my first entry here, and some good suggestions too. It seems there are some financial gurus out there with the recipe for success. I've done some reading on their websites and there isn't anything they advocate that isn't plain common sense. Except common sense is pretty uncommon these days, isn't it? I like some of the techniques I've read about, all of which start with the need to precisely quantify exactly what you owe and to whom. So that's my homework during this first week of fasting. I'll have plenty of extra time since I won't be staring slack-jawed at Chinese take-out menus or debating the merits of Colorado craft brewers' summer seasonals.
What I'm learning though, is that it's not just about the numbers. If anything, the money is just a way of keeping score for all the good and bad choices one makes. Facing up to this situation is forcing me to take a good hard look at a lot of things I could have done better, or would choose differently if I had it to do over again. Spending habits, educational and career choices, saving and investing, lifestyle choices, it's all right there laid out for me in my bank statement.
Speaking of which, I spent a little time with my most recent bank statement today. Last month I made eleven separate purchases under $20 on food, drink, or entertainment for a total of $88. Not one was anything I needed or got any particular value out of, other than some instant gratification. If I push that out to purchases under $30 on the same type of items. the total jumps to almost $200, and I had nothing to show for it at the end of the month except some empty bottles in the trash and some wrappers shoved into the door pocket of my truck.
Now I'm not against splurging from time to time, and I think a well prepared meal in a nice restaurant is as good a way to spend your entertainment budget, not to mention an evening out with good company, but somehow I don't think hitting up the Carl's Jr. drive-thru or stopping for a breakfast burrito at Tamale Kitchen qualifies under the same criteria. I'm nickle and dime-ing myself to financial ruin on junk food and beer. I can hardly believe it as I write it, but the numbers don't lie.
I received a lot of good feedback from my first entry here, and some good suggestions too. It seems there are some financial gurus out there with the recipe for success. I've done some reading on their websites and there isn't anything they advocate that isn't plain common sense. Except common sense is pretty uncommon these days, isn't it? I like some of the techniques I've read about, all of which start with the need to precisely quantify exactly what you owe and to whom. So that's my homework during this first week of fasting. I'll have plenty of extra time since I won't be staring slack-jawed at Chinese take-out menus or debating the merits of Colorado craft brewers' summer seasonals.
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