I had resolved to blog each day of the summer. I haven't gone to bed yet, so can this count as Saturday's post? Please? After all, it's still June 25 in California (and Wyoming).
I had a fascinating conversation with a friend about getting one's economic house in order. This is something that Dave Ramsey, Clark Howard, and many other personal finance gurus map out for their audiences. It's something that Sherry and I started some time ago. My conversation tonight helped me understand some of the steps that we've undertaken. Here they are:
1. Understand where the money is going (for us, after-the-fact budgeting)
2. Start to address debt (paydown some, eliminate others)
3. Shift from plastic to cash and coin
4. Truly understand interest.
5. Start saving money more aggressively and creatively
6. Set savings goals
7. Explore opening additional streams of income
Perhaps shells or layers is a better way to think of these steps. I believe one can be moving on multiple levels at once. I believe some levels (like level 2) don't end for long periods of time. Some levels don't have a goal of 100% fulfillment (like level 3). But this is largely the path my wife have taken to become better at home economy.
And, yes, I use the term home economy, or personal economy. I like it better than "home finance" which, I think, can be a bit too narrow of a focus. More on this later.
Saturday, June 25, 2011
Friday, June 24, 2011
Weeks
My first week at home with the two kids concluded this week. I think it took me the whole week to re-figure them out. They've grown by a year (no kidding). But that year has led to rather different children. I think my greatest challenge will be to not get lulled into a false sense of security: they entertain one another and themselves so well it's easy for me to relax and disconnect. They don't realize they're bored when they do get bored. If anything, this will be a summer of acting preemptively.
Frankly, I think my job as a dad was average. I'd give myself a B or a C. But I did learn from the week, and one of the most powerful lessons I've pulled from teaching is to not let one sub-par week infect or pollute the next. Learn from a weak or disastrous week, treat the next as a great reset learning from and disposing of the week that was.
Speaking of the week that was, my time without op-eds was therapeutic. The world didn't change much: the NFL is still in lockout, the Republican field of candidates looks similar to what it was last week. the big boys and girls in Washington still don't know what the heck to do with our debt, the economy is still stuck in irons. It was a good week off.
The hidden surprise was how good it was to step away from personal finance news for one week. I think that is what has made me best calm down my appetite for news.
Oh, and the week certainly helped me chew through 400-some pages of East of Eden.
Frankly, I think my job as a dad was average. I'd give myself a B or a C. But I did learn from the week, and one of the most powerful lessons I've pulled from teaching is to not let one sub-par week infect or pollute the next. Learn from a weak or disastrous week, treat the next as a great reset learning from and disposing of the week that was.
Speaking of the week that was, my time without op-eds was therapeutic. The world didn't change much: the NFL is still in lockout, the Republican field of candidates looks similar to what it was last week. the big boys and girls in Washington still don't know what the heck to do with our debt, the economy is still stuck in irons. It was a good week off.
The hidden surprise was how good it was to step away from personal finance news for one week. I think that is what has made me best calm down my appetite for news.
Oh, and the week certainly helped me chew through 400-some pages of East of Eden.
Thursday, June 23, 2011
A surprising discovery
So, today I thought it would be fun to take advantage of the kidsbowl(kinda)free.com deal. I left at 1:15 to arrive at a bowling alley around 1:40, thinking that Thursday around 2 pm would be a light time for a bowling alley.
Boy, was I wrong.
Apparently the one o'clock hour is high time for the retirees of Montgomery County to come on out and bowl. Lane after lane was filled with gray-haired competitors. And they were good. A quick glance at the score board indicated that most of them were throwing spares and strikes.
We bailed. Too long a wait with a 3- and a 5-year-old. The kids took it well. We instead went to the King of Prussia Mall, which thought it still shines, has completely lost its appeal for me. Are we witnessing the death of the mall as we know it? Too many empty storefronts, allegedly because stores wanted to move within the mall.
- - - -
As for kidsbowlfree.com . . . I'm not saying it's a bad promotion. But there's a real "There is no such thing as a free lunch" thing going on. Of course shoe rental is mandatory. And, of course, a parent will have to accompany the kids. For as much as I love bowling, I always feel like there's great chances of feeling foolish with a trip to an alley: whether it's the goofy shoes, the public shame of frequent gutter balls, or the chance that you might not be able to get a lane.
One feels like a fool when calling to see if it's a good time to go: foolish for wasting time if the answer is "it's pretty quiet now" and foolish if one isn't part of the cliques that are bowling leagues.
Now as far as cliques go, I find bowling leagues to be highly unoffensive, even loveable.
I really do feel like an outsider at them, though.
Oh well, tomorrow I'll be foolish enough to take the kids to see a much-anticipated sequel at a theater on opening day.
Boy, was I wrong.
Apparently the one o'clock hour is high time for the retirees of Montgomery County to come on out and bowl. Lane after lane was filled with gray-haired competitors. And they were good. A quick glance at the score board indicated that most of them were throwing spares and strikes.
We bailed. Too long a wait with a 3- and a 5-year-old. The kids took it well. We instead went to the King of Prussia Mall, which thought it still shines, has completely lost its appeal for me. Are we witnessing the death of the mall as we know it? Too many empty storefronts, allegedly because stores wanted to move within the mall.
- - - -
As for kidsbowlfree.com . . . I'm not saying it's a bad promotion. But there's a real "There is no such thing as a free lunch" thing going on. Of course shoe rental is mandatory. And, of course, a parent will have to accompany the kids. For as much as I love bowling, I always feel like there's great chances of feeling foolish with a trip to an alley: whether it's the goofy shoes, the public shame of frequent gutter balls, or the chance that you might not be able to get a lane.
One feels like a fool when calling to see if it's a good time to go: foolish for wasting time if the answer is "it's pretty quiet now" and foolish if one isn't part of the cliques that are bowling leagues.
Now as far as cliques go, I find bowling leagues to be highly unoffensive, even loveable.
I really do feel like an outsider at them, though.
Oh well, tomorrow I'll be foolish enough to take the kids to see a much-anticipated sequel at a theater on opening day.
Wednesday, June 22, 2011
Damage on the South Forty
A fairly powerful little storm rolled through Lansdale today. It might have killed a tomato plant, a pepper plant, and a pair of potato plants. A couple of observations:
- How easily nature can destroy the fruits of man's toil.
- How terrifying storms must be to people who depend on what they grow.
Tuesday, June 21, 2011
Comparative Advantage
Pardon another economics-fueled post.
So I'm one year from the target date when I really want to convince my wife to trade in her beloved Honda Civic. I've been agonizing over what we should get, agonizing that it couldn't be a minivan. Two growing kids, ambitions of great family vacations, and the forethought that we'll often be hauling more than just Sam and Caroline to this-and-that at church, scouts, and school means we need space. But a minivan? Oh, no, never that. Instead, we look at the Ford Flex's love-it-or-leave-it styling (for me the former, for my wife the latter), the large-rear-ended Honda Crosstour (a/k/a the Cross-turd according to several automotive sites), or, well, we don't know.
It's starting to hit me that perhaps we as consumers are foolish looking into the fashionable automotive Swiss Army knife that is the Crossover or SUV. For alleged utility that is rarely used, one concedes back-seat comfort, ease of egress, and fuel economy. In trying to find a vehicle that can haul people short distances, haul them and their stuff long distances, weather the weather, and still be pleasant to drive we have found a flawed jack of all trades.
I wonder if a family in our neighborhood has it right. Four kids: two cars. One is a equipped to the brim minivan, the other is a compact four-door. Two cars, two specialists.
Coincidentally, I stumbled upon this insight from Motor Trend.
A fundamental concept in economics is that trade makes people better off. Essentially, we are better off as individuals and as a society when we specialize in one area rather than be jacks of all trades. In many ways, it makes sense. The world is better off since Steve Jobs decided to specialize in creating iProducts, that I specialized in teaching high school Social Studies, that my brother-in-law specialized in music. The alternative: we're each subsistence farmers.
Two hundred years ago this area was peppered with self-sufficient and relatively prosperous family farms. Montgomery County is far richer now as a home of teachers, engineers, police officers, architects, and construction workers.
Perhaps it's true for autos as well. You want to drive? Get a sedan. You want to haul? Get a pickup. You want to move people? Get a minivan. Only the rare family needs to do all three of those things. Most of us can subsist with two of the three. Besides, it might help us plan our time and use of other resources more purposefully.
So I'm one year from the target date when I really want to convince my wife to trade in her beloved Honda Civic. I've been agonizing over what we should get, agonizing that it couldn't be a minivan. Two growing kids, ambitions of great family vacations, and the forethought that we'll often be hauling more than just Sam and Caroline to this-and-that at church, scouts, and school means we need space. But a minivan? Oh, no, never that. Instead, we look at the Ford Flex's love-it-or-leave-it styling (for me the former, for my wife the latter), the large-rear-ended Honda Crosstour (a/k/a the Cross-turd according to several automotive sites), or, well, we don't know.
It's starting to hit me that perhaps we as consumers are foolish looking into the fashionable automotive Swiss Army knife that is the Crossover or SUV. For alleged utility that is rarely used, one concedes back-seat comfort, ease of egress, and fuel economy. In trying to find a vehicle that can haul people short distances, haul them and their stuff long distances, weather the weather, and still be pleasant to drive we have found a flawed jack of all trades.
I wonder if a family in our neighborhood has it right. Four kids: two cars. One is a equipped to the brim minivan, the other is a compact four-door. Two cars, two specialists.
Coincidentally, I stumbled upon this insight from Motor Trend.
A fundamental concept in economics is that trade makes people better off. Essentially, we are better off as individuals and as a society when we specialize in one area rather than be jacks of all trades. In many ways, it makes sense. The world is better off since Steve Jobs decided to specialize in creating iProducts, that I specialized in teaching high school Social Studies, that my brother-in-law specialized in music. The alternative: we're each subsistence farmers.
Two hundred years ago this area was peppered with self-sufficient and relatively prosperous family farms. Montgomery County is far richer now as a home of teachers, engineers, police officers, architects, and construction workers.
Perhaps it's true for autos as well. You want to drive? Get a sedan. You want to haul? Get a pickup. You want to move people? Get a minivan. Only the rare family needs to do all three of those things. Most of us can subsist with two of the three. Besides, it might help us plan our time and use of other resources more purposefully.
Monday, June 20, 2011
A first day of summer
The start of summer gives me a good chance to see how my kids have grown. And the report . . .
Sam no longer needs a nap.
Caroline still does.
Caroline is fearless at swimming lessons.
Sam should've been riding a bike a year ago.
They are good at entertaining themselves.
They need Dad to prompt them to challenge themselves.
That is all.
Sam no longer needs a nap.
Caroline still does.
Caroline is fearless at swimming lessons.
Sam should've been riding a bike a year ago.
They are good at entertaining themselves.
They need Dad to prompt them to challenge themselves.
That is all.
Sunday, June 19, 2011
The not-so-secret-secret-savings-account
Sorry. Time for a foray into consumer economics.
It's something I created five years ago. As I became more budget conscious, I decided to create a savings account to save up for fun stuff. Here's what I put in:
Problem is, I can think of four things I'd really love to have. I'm burning to buy a Nook, even though I'm not a super-avid reader. An SLR digital camera would be cool. Oh, a new laptop would even be nice. And, let's not forget, nav system for my car.
Yet there's an adage in sports: if you have two #1 goal tenders, you have no #1 goal tenders. I think this applies to my savings quandry. If I have four things I really want to buy, I don't have anything I really want to buy. So, it's time to apply the 30-day rule: If July 19 arrives and I still want any of the items, maybe then I should act.
Or, I can limp along in my life of abundance and do without the four items: we have a new iPad that I'm just untapping as well as a library card. We have a point-and-shoot camera that's pretty nifty. I signed out my work laptop for the summer. I'm good with maps. Besides, my wife has said a nav system would diminish my usefulness.
Maybe it's time to get away from things and saving up for events. Maybe it's time to lock away that money for 6 months in low-yield-CD purgatory.
It's something I created five years ago. As I became more budget conscious, I decided to create a savings account to save up for fun stuff. Here's what I put in:
- spare change
- any five dollar bill I receive
- reimbursements
- birthday / Christmas money
- side job money (admittedly a small stream of revenue, at least right now it is)
Problem is, I can think of four things I'd really love to have. I'm burning to buy a Nook, even though I'm not a super-avid reader. An SLR digital camera would be cool. Oh, a new laptop would even be nice. And, let's not forget, nav system for my car.
Yet there's an adage in sports: if you have two #1 goal tenders, you have no #1 goal tenders. I think this applies to my savings quandry. If I have four things I really want to buy, I don't have anything I really want to buy. So, it's time to apply the 30-day rule: If July 19 arrives and I still want any of the items, maybe then I should act.
Or, I can limp along in my life of abundance and do without the four items: we have a new iPad that I'm just untapping as well as a library card. We have a point-and-shoot camera that's pretty nifty. I signed out my work laptop for the summer. I'm good with maps. Besides, my wife has said a nav system would diminish my usefulness.
Maybe it's time to get away from things and saving up for events. Maybe it's time to lock away that money for 6 months in low-yield-CD purgatory.
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