Are You in Business Bondage?

Two of my favorite authors are the late Larry Burkett and Tammy Strobel.    Tammy offers wonderful perspective as one committed to social change via simple living.  Larry focused on doing money and business from a Christian perspective.

On the topic of freedom, Tammy offers this, “Downscaling from a suburban, 2 bedroom apartment, and 2 car life to an urban, 1 bedroom apartment, and no car has given me a sense of freedom and lightness. Our stuff doesn’t own us anymore. As long as we have each other and our cats, we will be good to go.”

Larry has an entire section of his book Using Your Money Wisely:  Biblical Principles Under Scrutiny on the subject of “How to Identify Business Bondage”.  The principles of which I will share below.

These two concepts are best taken together.  Many of us found ourselves in business bondage not because we loved the work, but because our lifestyle was out of control.  We lacked the freedom that comes with downsizing our responsibilities in favor of family and loved ones.   Freedom unleashes us to work hard for measured times knowing that work fulfills one of many obligations.

For those still trapped in business bondage, Larry shares these four basic symptoms.  For more in depth reading, buy his book on Kindle (kindle rather than physical book because of the clutter).

• SYMPTOM #1 – OVER-COMMITMENT TO WORK OR SUCCESS
• SYMPTOM #2 – AN AIR OF SUPERIORITY
• SYMPTOM #3 – SELFISHNESS-INDULGENCE
• SYMPTOM #4 – CONFUSION-DISORGANIZATION

For more on Tammy and Logan’s fabulous and inspiring journey to freedom, go to her website and buy her books.

I Pooped my Retirement

I remember the realization I had in 2009 following a recent move.  Our kitchen was packed tightly, family was in from out of town, and we had to feed us all.  That month was the first time I had kept a written expense log….what a month to begin right?  To my horror (even to this day I am horrified), we spent $1200 on food/restaurants that month.    GULP!

At $1200 per month, I was turning my retirement funding into the excrement that follows a good meal.  I needed to get a grip.

Many of us fall into the “going out” trap.  Whether it’s a $60 bar tab or a filet mignon at the favorite steak place, eating out should be a planned and special event.  Going out to eat years ago was practically unheard of.  The price to pay for convenience, ambiance, and taste of constant restaurant-ing…could be your future.

What did we do?  From that moment on, we used restaurants as a category for our monthly budget.

1. Use the envelope system.  Working around a bunch of 20-somethings, the notion that someone in 2012 would use CASH is hideous.  Paper money still exists believe or not and it spends without 3rd party verification.  Our family does all regular (non-specialty) purchases with cash.  That includes grocery store, food and sundries, gasoline, etc.  The purchases that are every month regardless go into cash envelopes.  Personally we bought a $3 coupon holder from the big box store and box of small envelopes.  Nothing special.  Once a month we make a trip to the bank, cash a check in to the correct denoms, and place those in envelopes for use.
2. Man up!  I understand you’re tired, need to blow off steam, and you’re entitled because you work hard.  Man up Nancy! Let’s put the big boy pants (big girl panties) on, go home, tell the kids NO, and open up a can of something.  Especially if you’re in financial straits the written budget with no cheating is your fool proof method of being safe.    Beans and rice are broke people food because weeze BROKE PEOPLE!  Let’s not stay that way; take control.
3. Keep a blow it coin drawer.  Using cash always produces massives amounts of coins.  My family and I keep every coin we get in change, find on the ground, and/or rob from the tray in the gas station.  We have place a line on the very large coin jar and once the cumulative coin mass reaches that line…we roll it and BLOW IT!  Usually this means dinner in the fancy restaurant; perhaps a toy for one or both of my little critters; a pedicure for the bride.  This rewards us in staying on task with our budget and realizing that every little bit counts.

How do you guys stay on food budget? I’d love to hear your ideas and comments.

Breaking the Smartphone Addiction

I spent the last eleven years in the telecommunications industry.  Basically I was a front line seller and manager at those dreaded wireless stores that so many of you hate and despise.  Because of this, I have a unique perspective when it comes to all things smart phone and being cheap.

1. Is it really that important?  Folks we are absolutely addicted to staying in touch without enjoying those around us.  My mother commented yesterday how generations seem to have their technological musings that captivate large portions of attention.  Instead of quality time, 350 channels wash over us while we are constantly checking that Facebook timeline.  Consider those we ignore by default.
2. Can I do this cheaper somehow?  Currently with my iPod Touch (birthday gift) and my iPad (won in a contest at work), I can SMS friends and family at all times when connected to WIFI.  I have combined services with family members and thus we pay roughly $50 for two devices and have virtually unlimited minutes, texting, and web.  Sure it is a little inconvenient scouring for a free WIFI hotspot when I leave my home.  For those frustrated by that, see #1 and unplug for a while.  This forces me to do just that.
3. Opportunity Cost.  What I spend each month on the smartphone addiction is cash lost to other things that are far more important.  Perhaps I have medical bills, student loans, or trying to put some $$ away every month for the future.   Being in the wireless industry, it was nothing for a family of four to pay in excess of $300 per month, $3600 a year for these blasted devices!  Compare that $3600 to the $600 I will spend for basic devices and wifi only gadgets.  $3000 is a lot in opportunity costs.

Time will tell how long basic phones and WIFI only devices will be around.  Know that my cheap self will have to see the costs drop significantly before I take the plunge.

Confessions of a Pig Patriarch

Ok here it is…I suck sometimes at being a husband and Dad.   All men are pigs.  Period.  No further discussion.  It is just to what extent we as men have hammered our “pig-ness” into submission at any given moment.

This morning was spent at our storage unit.  Back in September 2011, my family and I packed our grad school campus apartment, quit my job, and moved two states away to live with my parents.  We had some savings but even that gets consumed rapidly amidst diapers, rent to my folks, COBRA, and splitting other expenses.  As of the writing of this post, I am still unemployed.  Because we could not fully combine our stuff, we have a storage unit full of the excess.

I confess to rapid hot anger every time I open that garage type roll door.  So there I was, three days before Christmas mind you, yelling at my sons, 3 and 6, and my wife in the middle of our storage unit.  Yelling about what? I don’t even recall; I’m just so angry at having the excess crap.  Why can’t everyone get on board? We haven’t touched this junk in 3 months, why are keeping this?  ARRGGGHHHH…

Somebody has a problem here…and that somebody is ME!!  My wife, ever gracious, accepted my apology as did my sons.  I had truly raised my desire for de-cluttering over my family.  Nothing but God should ever be ahead of those three individuals.  Having the rest of our time at the storage unit, a drop off at the recycling store, and Wal-Mart to think about what I jerk I’d been, I offer these simple lessons that I learned.

• Love and lead.  You cannot shove others into being on board with a minimalist life.  You must love them well and lead them into how you found downsizing, saving money, and living a simple to be worth the effort.
• Patience.  You did not acquire all this junk overnight; it will take a while to sort it.  Women like decorations and keepsakes guys…you don’t have to get it; you just have to GET IT
• Teach them.  I am determined to pass the values of saving money and simple living on to my children; but never ahead of those we love.   God says it best, Deuteronomy 4:9  “Only take care, and keep your soul diligently, lest you forget the things that your eyes have seen, and lest they depart from your heart all the days of your life. Make them known to your children and your children’s children

Protect Yourself at All Times

CLARK HOWARD (I use his name in all caps because he is indeed the godfather of all things cheap) reported this story about several grocery stores and gas stations.  The scammers would disguise themselves as those who normally maintain self-service credit card terminals.   Upon entering the store, a card reader/skimmer would be placed within the self-service machines.  Once activated, the crooks are now able to capture all information on any card processed through that terminal.

In all reverence to Dave Ramsey’s debit card only policy, this is why I personally keep credit cards.  Our household budget is run on a zero based budget in line with Dave Ramsey’s Financial Peace University.  My view is that all retail in store purchases should be made with cash.  However, with two small children strapped in the car seats, our family uses pay at the pump for gas.

CLARK says it best, “At the gas station, if you choose to pay by debit card as a pay-at-the-pump transaction, a big hold is put on your checking account. The hold could easily be $100 or $200 for just $20 of gas. So again, you run the risk of insufficient funds charges if you have a low account balance and outstanding checks. If you must use a debit card at the gas stations, pay inside with the cashier, not at the pump.

But I prefer that you pay by credit card or cash at the gas pump or grocery store as a general rule. If your credit card is breached, you can dispute any phony charges that show up and a new card will be issued to you. It’s that simple.”

While Visa or MasterCard will indeed honor disputes to your debit card, any NSF fees or overdraft charges to your checking account because of debit card holds and/or fraud would be the responsibility of owner…no thanks.

Two takeaways

• Inside a store, always use cash for day to day item purchases such as food, clothing, sundries, etc.
• When using pay at the pump, always use a credit card or cash.