Money Honey

Money Honey           January 5, 2013

            Money is misunderstood by many; mastered by most who try, using a few basic tools.  First tool / first rule: you don’t deserve those perks and extras you can’t afford just because you are a good person who works hard.  The world doesn’t work that way, and if you work that way, you are headed for all kinds of trouble.  You must take in more than you spend, at the very least over the span of a few years, and once you get your footing you must do it every year.  Develop a budget that works and stick to it. Carelessness can cost you years of comfort, and there are lots of places to get budget help.  Take care of the basics as priority one. 

            Second, you need an emergency fund.  At first, it should at least cover your insurance deductibles (which normally range from $1000 up).  This should be your top priority now.  You don’t get the cable, the camper, the ATV, or the golf clubs yet.  And you can take home-made lunches to whatever work blesses your life.  Put at least $1000 into your credit union savings account for emergencies only.

            Third, if you owe money, get out of debt as fast as you can—do what’s needed for financial independence.  Stop working for money lenders.  Many families pay $600 to $1000 or more in interest each month.  Get rid of expensive vehicles and toys that you can do without.  Replace them without borrowing.  Ask, “How much?” instead of, “How much per month?”  At some point you may (or may not) decide to purchase a home.  Save at least 20% for front money when you buy.  Get help (but not from the bank) deciding what you can afford.  Don’t make yourself house-poor.

            Fourth, if you have been under or unemployed, or are conscious and capable of reason, you know what a friend a BIG emergency fund can be.  Make one!  Make a BIG one.  Some suggest 3-6 months take home pay is about right.  But the economy is volatile and will probably stay that way.  I think your life will be better with a 6-12 month supply of money.  Do it in stages if you have to.  You be the judge.  These are tough times and you have lots of priorities with a claim on your money.

            Around here we think these four things are the starting point for Do-It-Yourself financial independence.  Do you really want to depend on banks, credit card companies, or Wall Street, or Congress (Get real!) for financial well-being?

Something Important to Share

Something Important to Share      December 14, 2012

            Christmas pulls at our heartstrings and our budgets.  This might be a good year to revisit what we value about the season and the society and country in which we are blessed to live.

            It’s a time to show our feelings for loved ones, and to honor the life of Christ; a time to renew the habits of nurturing, caring, and mutual consideration.  One way is by giving gifts, but there are many others.  In today’s hectic times one of the greatest gifts you can give is your time.  Do that as much as you can.  It’s the best part of the magic of Christmas.

Consider another kind of gift.  Skip a restaurant outing and donate your savings to a food bank.  Instead of dropping change in a red bucket, give $10.  Help serve meals at a community kitchen.  Donate and/or collect warm clothing to help others.  Fund a backpack for a hungry child.  These are just a few of the gifts you can give to society.

Thank a veteran.  Send a care package to someone overseas.  Express your wishes to Congress about supporting those who have served and are now dealing with physical and mental rehabilitation.  You can do this and a great deal more for our country.

Around here, we think that possessions mostly just clutter our lives.  So don’t go overboard giving things.  Don’t go into debt for things.  Instead of SPENDING Christmas, share it.  Wishing you all the very best. 

Professional Opinion

Professional Opinion          November 20, 2012

            My doctor said I should eat more donuts.  He was listening sarcastically to my chest at the time and when I said, “But…,” he interrupted with, “Breathe!  You’ve got to stop trying to look like an action figure and live a little.”  He’s a professional.  But so am I.

            “You mean a doll?  It’s not an action figure, it’s a doll.”

            “No,” he responded, rising to the challenge, “In this century, it’s an action figure.  Why not work a little less on your six-pack and join us—it’s 2012.”

            “Doc, it’s a doll,” I insisted.  “An action figure is a negative bank balance.”  That one got him.  He actually took a step back in disgust.  Pity fogged his glasses.

            “It sucks to be you, doesn’t it?”

            “I’m just sayin’,” I responded with smug satisfaction, “I spend a lot of time maintaining my six-pack and I’d think a health-care professional would respect that.”

            “You talk like you’re back on that negative nicotine patch regimen.  Are you up to the strongest dose yet?  You’re OK.  The nurse will get your papers.  Come and see me again soon!”  He disappeared in a blink, off to help the next health nut.

            I told this story to my wife that same evening.  She shook her head.

            “Bubba,” she said, “You love words.  You should know better.  When you say ‘maintaining’ you actually mean ‘replenishing’ you six-pack.  You spend time driving to the store to replenish it.  Way too much time.” 

She’s right.  Around here, we guess it might be a good thing if everybody opened a few less sodas, and ate a donut, maybe like every second or third doctor’s visit.

Time For Some TLC

A word about good management             November 15, 2012

            Prompt.  Good managers make prompt fact-based decisions once they have the facts.   They respect the needs of the people who are affected by their decisions.  Perhaps as never before, today’s managers must deal with uncertainty.  This does not interfere with prompt decision making by good managers. 

            Discover.  Decide.  Don’t embarrass the people and the organization you are charged with leading. 

Time for some TLC              November 15, 2012

            Americans’ emotions have been stirred viciously.  The political Right has been manipulated into a frenzy.  The government is giving away stuff to lazy and irresponsible, nay, un-American takers who will ruin our country.  The Left has been agitated into believing that the only un-American takers are the idle rich, and corporations.  They are going to starve our children and we’ll all die too poor to get adequate medical care.

            Farmers, who work hard, take risks, and face complex demands, may wonder why anyone needs welfare or the EPA.  They wonder if city people even know where food comes from.  Their counterparts, who work hard, take risks, and face complex demands, may wonder why anyone needs farm subsidies or the FFA.  They wonder if farmers even know where tractors come from.

            Truth is, our national attitude has been wounded.  We need to fix that.  Clearly, war no longer works to bring us all together.  So let’s not wait for a war.  Let’s come together as a country and a people with warlike intensity and courage.  Let’s ask ourselves to reason through our differences.  Let’s tell our political party manipulators to get back in the game.  Let’s recognize and call out misdirection and emotional manipulation when it happens.  Let’s take care of each other—treat each other with dignity, respect, and consideration—even in traffic.

            Around here, we think a little tender loving care can do amazing things.      

The Spin Cycle

The Spin Cycle        November 5, 2012

            Political ads have monopolized the third of every viewing hour that television rips from our souls for commercials.  Citizens united has made the word “monopolized” appropriate in this context, in a billion ways.  Everybody (almost) is tired of it.  Fear not.  Election day is coming.  Soon it will stop.  At least, for a while.

            Senate candidate and American hero Bob Kerry quipped that if he is elected, he will have to get right to work because by February politicians will all be thinking about re-election.  Politicians, unlike statesmen and women, are in the spin cycle continuously, extracting our reason and agitating our emotions—it’s their life.  It’s my idea of Hell.

            Spin works on us partly because we forget it between elections—even those emotional clingers.  They grab us, but deep down, we can spot the crap, and mentally we flee from it.  Still, as soon as we forget, we are vulnerable to the next wave, the next mind-numbing volley.   

            There is hope.  Like a drug, spin becomes less and less effective.  The cycle has to become more frequent until it is almost constant.  The shorter the cycle, the more resistant we become.  Exaggerations have to be increasingly dramatic.  Misdirection has to come closer to outright lying.  We’ve all seen enough “Big Lie” this time around to more skillfully spot it in the future.  The takeaway is this: it is important to learn to recognize manipulation, of any kind, even if we agree with the manipulator’s objectives.

Well, maybe not so hopeful for congress getting anything useful done, but at least there is some surcease from the effects of all those spin darts.