Financial Tip #3
Know where your money is going, or it will control you!
That means tracking what you spend and where you spend it !!!
As I preached to my children, one of the most powerful tools we have in life is the ability to choose. We all make choices. Some of those choices are good and some are poor (my kids can tell you about our talks about poor choices). Regardless of the choices made, however, there are always consequences to our choices. One of the most important choices we all make is how we spend our money.
I have been using Quicken for the past 14 years. I track every major and minor expense we have. I can tell you how much I have spent on McDonalds each year (way too much). I can tell you how much gasoline I have purchased each year... and can provide evidence that in spite of the high gas prices last year, the real impact was not that great! I can tell you exactly how old our hot tub is and what it cost... and what the yearly cost is over the life of the hot tub, and can tell you that a replacement is about the same cost as the original in today's dollars, even though it appears to cost much more.
The point is, that I do not believe you can make appropriate choices in life without data, and a way to turn data into information. With information and data, you can make decisions on how spend less or save more, and the choices become easy... and I would dare say much better.
When we first got married 34 years ago, my brother-in-law Emerson gave me a Capital Family Financial Planner. This was way before computers and Excel spreadsheets. It was a manual spreadsheet with various categories to track your expenses on a monthly basis. We used them for several years. You added up the rows and the columns each month and then totaled them for the year. (I recently found a stack of them in the basement...what a blast from the past) But after several years, we stopped... too much work. There were gaps in the months... It just seemed like busy work.
Problem is, as we look back, the many years that we did not track our expenses were the very years that we made some poor choices... or ended up with a lack of choice in our spending because we had no data.
It wasn't until we woke up one day 15 years ago and realized that we were spending every dime we had and had nothing saved, and our kids were rapidly approaching college that we realized that money was controlling our lives and our choices.
I started using Quicken.... and in time became obsessed with it. It gave us control and better choices. It literally changed our world. We finally had control over what we spent.
Regardless of the tool you use, track what you spend. Know where it is going. Then
armed with data and information, you will have the knowledge needed to make appropriate choices.
Your money will never control you or your choices, if you control your money.
Wednesday, April 29, 2009
Tuesday, April 28, 2009
A Dream Dashed by a Crash
For a number of years now, I have toyed with the idea of getting a motorcycle. The thrill of riding down the road with the wind blowing in my hair (oops- too late- no hair!)… Well the thrill of the open road has been really compelling. My neighbor owns a motorcycle shop and I have been known to hang out there to drool and dream. My brother Randy has a new one. Two of my neighbors own them. They all take these great trips on the open road… real freedom. I often moan with envy as they roar down the street.
During this past year I thought that I had moved one step closer to fulfilling this little dream. Kris and I rented mopeds in Estes Park and loved it. Again on Washington Island in Wisconsin we rented mopeds and toured the island at ease, stopping at various beaches, forests, etc. Wow. Even a moped is cool. We didn’t think we looked too goofy with our helmets, etc. I loved it. Hey, Kris loved it.
I thought that I had a chance. In addition to the motorcyclists in our neighborhood of 13 houses, I have 3 other neighbors when own mopeds. They get over 100 miles per gallon. Kris even went to a moped dealer and priced them out with me.
Again, wow- we can get into 2 mopeds for under $2100. What a deal. Just think of the money we could save in gas (one of my favorite things is saving money). I thought I could justify the moped in gas savings… wrong. It would take over 5 years to pay for them in savings, and that was when gas was over $4 per gallon. Do the math. After all, we live in Missouri where it rains and snows.
But still, the lure is compelling. Or at least it was compelling…
On our way back from Texas from our cruise, we were driving thru Dallas. On I-35E as we rounded a curve on a 4 lane interstate, a motorcyclist no more than 40 yards in front of us wiped out. His cycle went careening down the inner lane, and he lay on the pavement, sprawled out, right in my lane.
Kris is screaming at me not to hit him… but there are cars on either side of us, and I am going 70mph. I lay on the horn and slam on the brakes, and veer off just to the left of him…squeezing between him and the car beside me, who moved over too just in time. I seriously almost ran right over him! As we passed him, Kris said that he was obviously bloodied all over his face, and I as looked in the rear view mirror, he was staggering around in various lanes, with cars swerving all over the place.
Kris called 911. She told the operator where we were and what the cross streets/exits were around us. The operator kept asking “are you in the Farmer’s District”. What the heck is a Farmer’s District? I repeated the cross streets to Kris. Same question in reply. The operator finally asked to talk to the driver. I again told her where we were, and the situation… she again asks me if we are in the Farmers District. I said I don’t know what a Farmers District is, and she said that she would transfer me to a 911 operator in the Farmers District. After 2 minutes on hold, I hung up. I have to simply assume that somebody else got help to the poor guy.
Now, as I writing this, the local news is reporting that a motorcyclist wiped out and later died on Highway 36 and I-229 here in St. Joseph.
Finally, I spent some time watching some moped riders the other day… you know, they really are goofy looking motorcycle wannabes.
Now here are the lessons-
1. If you are in Dallas, look for the Farmer’s District (actually it is an area in the Dallas metropolitan area, but why have your own 911 operator in the first place- and by the way, we were nowhere near the Farmer’s District, as our cross streets would have indicated)
2. If you ride a motorcycle you could die (but we all gotta go sometime)
3. Don’t try to justify buying a moped or motorcycle as a way to save money…can’t be done!
4. You won’t be seeing me on a two wheeled vehicle other than my bicycle. Kris won’t let me get a moped, let alone a motorcycle.
5. I am going to keep telling myself that I am way too cool to be seen wearing a goofy helmet and riding a dinky little moped.
During this past year I thought that I had moved one step closer to fulfilling this little dream. Kris and I rented mopeds in Estes Park and loved it. Again on Washington Island in Wisconsin we rented mopeds and toured the island at ease, stopping at various beaches, forests, etc. Wow. Even a moped is cool. We didn’t think we looked too goofy with our helmets, etc. I loved it. Hey, Kris loved it.
I thought that I had a chance. In addition to the motorcyclists in our neighborhood of 13 houses, I have 3 other neighbors when own mopeds. They get over 100 miles per gallon. Kris even went to a moped dealer and priced them out with me.
Again, wow- we can get into 2 mopeds for under $2100. What a deal. Just think of the money we could save in gas (one of my favorite things is saving money). I thought I could justify the moped in gas savings… wrong. It would take over 5 years to pay for them in savings, and that was when gas was over $4 per gallon. Do the math. After all, we live in Missouri where it rains and snows.
But still, the lure is compelling. Or at least it was compelling…
On our way back from Texas from our cruise, we were driving thru Dallas. On I-35E as we rounded a curve on a 4 lane interstate, a motorcyclist no more than 40 yards in front of us wiped out. His cycle went careening down the inner lane, and he lay on the pavement, sprawled out, right in my lane.
Kris is screaming at me not to hit him… but there are cars on either side of us, and I am going 70mph. I lay on the horn and slam on the brakes, and veer off just to the left of him…squeezing between him and the car beside me, who moved over too just in time. I seriously almost ran right over him! As we passed him, Kris said that he was obviously bloodied all over his face, and I as looked in the rear view mirror, he was staggering around in various lanes, with cars swerving all over the place.
Kris called 911. She told the operator where we were and what the cross streets/exits were around us. The operator kept asking “are you in the Farmer’s District”. What the heck is a Farmer’s District? I repeated the cross streets to Kris. Same question in reply. The operator finally asked to talk to the driver. I again told her where we were, and the situation… she again asks me if we are in the Farmers District. I said I don’t know what a Farmers District is, and she said that she would transfer me to a 911 operator in the Farmers District. After 2 minutes on hold, I hung up. I have to simply assume that somebody else got help to the poor guy.
Now, as I writing this, the local news is reporting that a motorcyclist wiped out and later died on Highway 36 and I-229 here in St. Joseph.
Finally, I spent some time watching some moped riders the other day… you know, they really are goofy looking motorcycle wannabes.
Now here are the lessons-
1. If you are in Dallas, look for the Farmer’s District (actually it is an area in the Dallas metropolitan area, but why have your own 911 operator in the first place- and by the way, we were nowhere near the Farmer’s District, as our cross streets would have indicated)
2. If you ride a motorcycle you could die (but we all gotta go sometime)
3. Don’t try to justify buying a moped or motorcycle as a way to save money…can’t be done!
4. You won’t be seeing me on a two wheeled vehicle other than my bicycle. Kris won’t let me get a moped, let alone a motorcycle.
5. I am going to keep telling myself that I am way too cool to be seen wearing a goofy helmet and riding a dinky little moped.
Sunday, April 12, 2009
Saturday, April 11, 2009
I Missed Good Friday
This is the first year ever that I have not gone to worship on Good Friday. Kris and I decided last month to take this cruise leaving immediately after Easter Sunday. We knew that we would miss Good Friday... and that seemed ok.
We made it to Maunday Thursday... I sang in the choir and we celebrated the Eucharist. We will worship Easter Sunday at Covenant Lutheran Church in Houston (the pastor there writes a daily devotional I have been reading for over 10 years).
But I really did miss worship! I missed the piece of the rhythm of the liturgical season it is a part of. I missed the black paraments. I missed the somber music. I missed the remembrance of the death of Christ. This morning I read Chad's face book entry where he said "bummer, Jesus died". Sad, but awesome. But today, as I wait for Easter, the rhythm seems off kilter.
I do not believe that I will miss Good Friday again!
I underestimated the importance in my life. This evening as I sit in our motel room, I wait in eager anticipation of the celebration of the Resurrection tomorrow morning!
It is a celebration that I never want to miss.
We made it to Maunday Thursday... I sang in the choir and we celebrated the Eucharist. We will worship Easter Sunday at Covenant Lutheran Church in Houston (the pastor there writes a daily devotional I have been reading for over 10 years).
But I really did miss worship! I missed the piece of the rhythm of the liturgical season it is a part of. I missed the black paraments. I missed the somber music. I missed the remembrance of the death of Christ. This morning I read Chad's face book entry where he said "bummer, Jesus died". Sad, but awesome. But today, as I wait for Easter, the rhythm seems off kilter.
I do not believe that I will miss Good Friday again!
I underestimated the importance in my life. This evening as I sit in our motel room, I wait in eager anticipation of the celebration of the Resurrection tomorrow morning!
It is a celebration that I never want to miss.
Sunday, April 5, 2009
You Are Created for Good Works in Christ !
In Paul’s letter to the Ephesians, Chapter 2:10 we are reminded that- “We are what God has made us, created in Christ Jesus for good works, which God prepared beforehand to be our way of life”. One way that we have enjoyed playing out this “way of life” recently has been our involvement in Kiva. We learned about Kiva while listening to a radio podcast during a trip to Yellowstone with our son Chad and his wife Lynde.
Kris and I have just recently funded our 21st loan thru Kiva. Over the past 18 months, we have helped fund loans to people in Togo, Kenya, Pakistan, Cambodia, Bolivia, Sierra Leone, Nigeria, The Dominican Republic, Lebanon, Nicaragua, Viet Nam, Paraguay, Azerbaijan, Indonesia, and Mozambique. Our portion of these loans have been only $25 each, while the total amount of each loan these people have received have ranged from $250 to $2200. We choose to re-loan monies as they are paid back to other recipients.
Our money is pooled with the money from people from around the world to make these loans possible. We have joined people from all across the US, and Poland, Australia, Belgium, Israel, England, South Africa, Chile, Mexico, Canada, Brazil and virtually every other 1st and 2nd world country to make these loans possible. Retirees, newlyweds, workers, students, children, people from all walks of life have joined in these loans. The money has been used for such diverse purposes as buying an additional milk cow, to repairing a taxi, to purchase inventory for a small grocery store, to buy seed for a harvest, to buy a new sewing machine, to buy flour for a bread shop, etc. You get the drift. Important things that make a small business work. Important things that allow parents to earn money to feed their children.
We have been struck by the impact these loans have made to the recipients. These are truly life-changing opportunities. These are real loans, often at interest rates of 20 to 25% versus loans of 30 to 60% in their local regions. What amazes us is the fact that people take these loans seriously. Of the 21 loans we have made, 7 are totally paid back, 13 are making regular payments and are on-time. We have had one loan default, due to the death of the head of the local micro-financing agency. (Simply no one else is there to take over). Loan terms vary from 3 months to 14 months on our loans. Our loans are made to Kiva interest free. They work with local micro-financing agencies to qualify, distribute and receive payments, as well as working as coaches for these small businesses.
Overall, the default rate on loans made thru Kiva is 2.06%... the delinquency rate is 2.09%. I wonder what that has to say about our North American Society. In the 4th quarter of last year, the consumer delinquency rate was almost 3.22%, with 7.88% delinquency in mortgages. The default rate on student loans in this country was 6.9% last quarter and is expected to rise to 9% by the end of 2010. By 2010 the corporate default rate in the US will likely be over 23%. Importantly, very few people here are paying 20 to 25% interest and most of our consumer loans have not been made to buy the things these people are buying with these loans.
Since 2005:
· Total value of all loans made through Kiva $66,650,360
· Number of Kiva lenders worldwide 471,742
· Number of loans made through Kiva 95,392
· Percentage of loans made to women 77,84%
Join us in supporting this work. For more information go to www.Kiva.org or email us for more information.
Zainab M.Akram Group from Pakistan - our latest recipients
Kris and I have just recently funded our 21st loan thru Kiva. Over the past 18 months, we have helped fund loans to people in Togo, Kenya, Pakistan, Cambodia, Bolivia, Sierra Leone, Nigeria, The Dominican Republic, Lebanon, Nicaragua, Viet Nam, Paraguay, Azerbaijan, Indonesia, and Mozambique. Our portion of these loans have been only $25 each, while the total amount of each loan these people have received have ranged from $250 to $2200. We choose to re-loan monies as they are paid back to other recipients.
Our money is pooled with the money from people from around the world to make these loans possible. We have joined people from all across the US, and Poland, Australia, Belgium, Israel, England, South Africa, Chile, Mexico, Canada, Brazil and virtually every other 1st and 2nd world country to make these loans possible. Retirees, newlyweds, workers, students, children, people from all walks of life have joined in these loans. The money has been used for such diverse purposes as buying an additional milk cow, to repairing a taxi, to purchase inventory for a small grocery store, to buy seed for a harvest, to buy a new sewing machine, to buy flour for a bread shop, etc. You get the drift. Important things that make a small business work. Important things that allow parents to earn money to feed their children.
We have been struck by the impact these loans have made to the recipients. These are truly life-changing opportunities. These are real loans, often at interest rates of 20 to 25% versus loans of 30 to 60% in their local regions. What amazes us is the fact that people take these loans seriously. Of the 21 loans we have made, 7 are totally paid back, 13 are making regular payments and are on-time. We have had one loan default, due to the death of the head of the local micro-financing agency. (Simply no one else is there to take over). Loan terms vary from 3 months to 14 months on our loans. Our loans are made to Kiva interest free. They work with local micro-financing agencies to qualify, distribute and receive payments, as well as working as coaches for these small businesses.
Overall, the default rate on loans made thru Kiva is 2.06%... the delinquency rate is 2.09%. I wonder what that has to say about our North American Society. In the 4th quarter of last year, the consumer delinquency rate was almost 3.22%, with 7.88% delinquency in mortgages. The default rate on student loans in this country was 6.9% last quarter and is expected to rise to 9% by the end of 2010. By 2010 the corporate default rate in the US will likely be over 23%. Importantly, very few people here are paying 20 to 25% interest and most of our consumer loans have not been made to buy the things these people are buying with these loans.
Since 2005:
· Total value of all loans made through Kiva $66,650,360
· Number of Kiva lenders worldwide 471,742
· Number of loans made through Kiva 95,392
· Percentage of loans made to women 77,84%
Join us in supporting this work. For more information go to www.Kiva.org or email us for more information.
Massan Aziado our first recipient from Togo in July of 2007
Zainab M.Akram Group from Pakistan - our latest recipients
Friday, April 3, 2009
Who Do You Think You Are...? God ?
My son Andy made some wonderful comparisons between the relationship Yacob and his parents have with the relationship we have with God. (See his blog for his words…they really are good! Go to www.andyandbecky.com )
It reminded me of the relationship I have with my children and those around me.
and…
It got me thinking about how similar God and I are. Yep, God and I are a lot alike. After all, according to the writer of Genesis, I was made in God’s image (Genesis 1:26). So, there is part of God’s nature that is similar to my own nature. Me, in all my glory …sometimes I act like God, or at least I can claim that God acts like me.
You want evidence; look at some of those wonderful stories in the Old Testament, in particular, the stories in the Pentateuch. Look at how God displays God’s nature. Look at the conversations God has with people like Abraham, Joseph, and Moses.
I have spent the last few weeks reading Numbers. During the wandering in the desert, the people complain of eating nothing else but God’s gift of manna. The people wanted meat… so God says if they want meat, “I’ll give them meat. I will have them eat meat until it comes out of their nostrils”. (Numbers chapter 11). My response exactly. I am sure I used those words or something very similar on my kids on many occasions.
Later in chapter 14, the people grumble again and actually threaten to rebel. This really makes God angry and for the second time during the exodus, God threatens to strike the people down and start all over. Evidently, it was just not worth it. God says in essence, “in spite of all I have done, this is how they pay me back”. The people were just plain ungrateful. God told Moses that he would create a new people from Moses and the faithful remnant, a people who would really appreciate God. My response exactly. My kids acted ungrateful on many occasions, in spite of all that I did for them… I think that I threatened to sell them off or something of that sort.
It takes the arguing and cajoling of Moses to “calm God down” and “bring God back down to earth”. Moses tells God that if the people are destroyed, the Egyptians will hear about it, and “they will think poorly of You!” Gods’ reputation would be damaged. After all, God is supposed to be “slow to anger”. So God changed God’s mind. Hmm… sounds just like Kris and people at work have to do to me at times to keep me in line.
Then God responds to Moses, “I have forgiven them just as you asked”… My response exactly!
God goes on and says, “…but they won’t get to live in the land I gave them”… My response exactly!
So you can see that there are times in my life that I can act just like God… and I am sure there are those around me who would agree, or at least they would claim that I can act as though I am God, especially at work.
Not sure this is a good thing. I am pretty sure that God does not see me as too God-like. However, there are pieces of God nature that I really do strive to imitate or reflect. I heard a sermon on the radio a few months ago where the pastor said it is a compliment and should be a goal to be “mistaken for Jesus”.
“Hey, aren’t you Jesus” or “Hey, you’re acting just like Jesus”.
I really do want to imitate Jesus. I want to be gentle… to be serving… to be loving… to see the best in others… forgiving others…seeking and doing justice. But I would imagine that seldom my kids or those around me would mistake or accuse me of being Jesus. Think of the irony- me in all my glory…to be God-like but not Christ-like.
So, I guess at the end of the day, I simply pray that I have acted like Jesus…. but not that I acted too God-like.
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