Recently I was taking my routine, virtual stroll through all of my financial accounts when I noticed something funny – and I most certainly don’t mean “ha ha funny”. My CIT savings account was only returning 2.4% APY. That’s odd, I thought. I’m almost sure that had been at 2.45. I did a little checking and sure enough, I was right. Now I don’t want to miscommunicate here; I understand why this happened and I don’t blame CIT Bank for it. Our long overdue recession has started and not only have rates stopped rising, but they’re actually already coming down slightly. Futures traders have even priced in one to two decreases by the FED by the end of the year. So I’m far from the only one making this call and it doesn’t surprise me in the least to see CIT Bank, a for profit business, doing what management feels needs to be done to protect the bottom line in changing conditions.
That said, what’s good for the goose is good for the gander. When conditions change, I also re-evaluate what I’m doing to make sure it still makes sense. Here’s a recent example in case you think I’m making this up. So I spent a half hour or so on good ol’ Doctor of Credit doing a little research. It turns out that currently, the highest rate on online savings accounts that don’t require absurd shenanigans like 10+ debit card (yes, people apparently actually use the things; but they shouldn’t) transactions per month is currently 2.51%. However, interest rate isn’t the only consideration. Many bank accounts also pay bonuses up front, which can quickly shift the balance when we’re talking about such low numbers. After all, in the grand scheme of things, 2.51% is still an awful return on investment, even if I do feel that cash is king in current circumstances.
So ultimately, and somewhat coincidentally, I decided not to
move my savings account money very far, at least from an alphabetical
perspective. I’m moving it from CIT Bank to Citi Bank. Citi’s online savings
account pays 2.36%, even less than the 2.4% that started this whole conundrum
in the first place. However, by performing a little financial gymnastics, which
basically just involves making sure I stay within the rules of the promotion, I
can also get it to pay me a $400 bonus for keeping $15k in the account for
sixty days – more than the CIT account would have paid on that amount in an
entire year! And meanwhile, I’m collecting the 2.36%, virtually the same rate
as CIT was paying, on top of it.
How does the math work out on this? With $15k in the CIT account, I would have made $364 in interest over twelve months. But with that same $15k in the Citi account, I will make $459…in two months! If left in the account for the same twelve months as the CIT Bank account for the purposes of making an apples to apples comparison, that figure becomes $758. That, ladies and gentlemen, is what we call a win. The only downside here is that unlike credit card reward money, bank account bonuses are taxable income. But that’s more about credit card reward money being in an extremely privileged class of its own than it is about this being a bad deal; almost any income under the sun is taxable – even income that isn’t income at all in some cases (Ever hear of imputed interest? Look it up. It’s disgusting!).
The way I see it, there are two lessons here. One is that you should be regularly evaluating your available options, particularly when something changes with your current one. I preach that all day long. But the second lesson is one I need to be taking to heart myself going forward. Given our current economic circumstances, I’m not compromising on holding as much cash as possible until further notice. But with available interest rates on cash being as pathetic as they are, and with sign up bonuses being as large and plentiful, it could very well be worthwhile to move savings account money around two or three times a year. For example, if there were three options as good as the Citi bonus available (I don’t believe there are; but there are others that are close and again, conditions are always changing), I could make over $1500 in a year on $15k of cash – a damn good return considering it’s 100% risk free. Yes, it would be a little bit of work, but with emphasis on the “little” part. When all is said and done, I will have less than an hour into this little project. Would the extra $1200+ over and above what the CIT Bank account would have paid without any bonuses be worth three hours of my time? You bet your sweet ass it would! I do pretty well for myself (for now…) but I don’t make anywhere near $400 an hour…yet.
Happy Monday Everyone! This is the very first post in my Annual Expenses series. If you didn’t see the introduction post that summarizes all of my expenses, check it out here. I plan to go into detail on every category with a post on one each Monday. Over 2017 and 2018, I spent an average of $1300 per year on auto maintenance and repairs and I believe I could spend a bare minimum of $500 per year if I had to. This, in particular, is an expense I am able to spend a lot less than I otherwise would on because I do as much of my own work as possible. I try to only do that in areas of life where it is worth my time and with most shops charging at least $70-80 an hour for labor alone, not including marking up parts, this is definitely one of those. Here come the details.
First off, that $1300 number would be significantly lower if
I hadn’t done what I consider a minor overhaul on the truck I had until near
the end of 2017. At a total cost of roughly $1500, I replaced all four sets of
brakes (pads and rotors on the front and all drum components on the back), the
two front wheel hub assemblies, and most of the steering and suspension parts. This
would likely have cost at least two to three times that figure if I’d had a
shop do the work. That said, there would have been some cost savings since
there was a lot of overlap in the labor. That was why I did all that at one
time; not everything needed to be done right away but it made sense to do it
all as long as I was going to have everything apart. Whether you do your own
work or pay someone else to do it, this is something I recommend you think
about. It usually won’t make sense on a newer vehicle, but on an old dog like
my truck, it certainly did since anything that wasn’t already bad was
definitely likely to be before long.
I wasn’t able to do all of it myself, mind you. When doing
steering and suspension work, an alignment is usually required when you’re
finished and that requires expensive equipment and know how. But by doing most
of the work myself, I got basically everything done that my high mileage truck
would need to keep running reliably for at least a few more years, aside from
basic maintenance. I’m not a mechanical genius by any stretch but with auto
repair work, you can find instructional videos on just about any repair for
your specific vehicle on youtube. If you are at least a little bit mechanically
inclined, have a basic set of tools, and particularly if the repair is on the
less complicated end, like brakes for example, I highly recommend this route to
learn a new skill and save a ton of money.
What do I do in a normal year? I spend roughly $200 on oil changes with what I believe is the best oil money can buy (Amsoil), I clean and lubricate my performance/reusable K&N air filter and cabin air filter for free, I have the tires rotated every 5k miles or so (done for free at Discount Tire, the best tire store I’ve ever found), and that’s about it for routine stuff. I also spend money on other maintenance items like brakes, coolant, transmission fluid, etc, but none of that has to be done every year. I went into detail about those kinds of items here. I highly recommend you keep all the basic maintenance up to date on your vehicles. It will cost you some money and time on the front end but in the long run, it will save you tons of both. While your costs will vary based on which additional maintenance items need to be done in a given year, if you keep up with it, your average annual cost should be around $500. Note that this is for one regular vehicle. If you have a truck or SUV it will be more and if you have a giant diesel truck or you buy a vehicle that is known for mechanical issues (avoid that by checking out this post), it will be a lot more.
I do spend a little extra keeping my vehicles clean and
waxed/polished because I can, because I like the look of a clean car, and
because keeping the paint looking good will keep the resale value as high as
possible. In my case, this costs me $20 per month on unlimited, high quality
car washes, and maybe $5-10 per year on wax and polish. These aren’t things you
would absolutely have to do for a car to operate properly, but if your car looks
nice now, keeping it that way will most likely more than pay for itself when
you end up selling it.
That’s about it. If you have any questions or comments,
please leave them below or send me an email at firstname.lastname@example.org. Next
week, Monday, I’m going to be covering my Cash Donations category in this
series of posts.
Holy cow are we in some suddenly dark days! I’m seeing some genuinely good people and businesses getting hurt and some being taken down altogether and it is all happening so quickly. And this, of course, only intensifies my problems. I’ve seen this recession coming on paper (or at least screens, the 2019 equivalent) for a couple of years now and while I may have made some early calls, I would much rather have been early than late. And more importantly, I believe we are now almost definitely in it. I see more real world signs of it every day and I hear similar reports from my contacts all over the country. If you haven’t started preparing yet, I strongly recommend doing so right now because you won’t get a better opportunity. Anyway, mercifully, another Friday is upon us and here are some random observations and anecdotes from the week.
Don’t Let Car Dealerships Take
Advantage of You Because You’re Lazy
In spite of
what I wrote above, I have been quietly watching the market for my next vehicle
for a while. I’m not saying I will pull the trigger any time soon, but as I
believe I’ve mentioned before, I typically watch the market for months before I
so much as set foot on a dealer’s lot. I don’t just want to take the internet’s
word for it; I want to know for a fact whether a price is good or not. Plus, I
predict some amazing recession discounts on cars this time around. Plus, I
enjoy the research. Yes, because I’m weird like that.
Anyway, I’ve noticed that these “no haggle” dealerships have gotten very popular. I’ve also noticed something else; their prices are absurdly high! I’m talking 10-15% higher than average in most cases! After doing a little googling and perusing some forum posts, I’ve confirmed that this is exactly what it appears to be – another example on the long and growing list of times American companies have had the balls to fairly openly exploit laziness for profit – and succeeded at it. Two quick notes on this.
One – and I
know this doesn’t apply to all of them, but only some of the very most millennial-ly
ones that may as well be throwing in a year’s supply of avocado toast with their
overpriced cars – but any dealership that will not let you inspect a car in
person first at a minimum, needs to be avoided at all costs. Cars, particularly
used ones, are not commodity items. If you aren’t going to test drive one
before you buy it, you deserve whatever you get. And if you’re not willing to
spend a hundred bucks or so to have a qualified mechanic check a used car out,
you’re taking an awfully huge risk. Sure, you may get lucky. But you could also
wind up out thousands and thousands of dollars. And sure, some of these “dealerships”
allow returns. But do you really want to stake that kind of money on these
policies being honored? Better you than me if you do. But then, I’m just a car
freak who has done extremely well with car purchases over the years. Not only
have I had to do almost zero repairs beyond preventative maintenance, I have
even pulled off the seemingly impossible feat of selling one car for a profit
after driving it over a year and another for exactly what I paid after driving
it for several months. But then, I don’t like to toot my own horn…
dealers literally believe they can overcharge people by thousands of dollars
because the average person either doesn’t even have the courage to sit and talk
to a salesman (or woman), or is too lazy to do so. Are you really willing to
validate that theory for them? For the sake of all of us, I hope not. But based
on the fact that some of these companies appear to be extraordinarily
successful, it would appear the mob has already spoken. In any case, at the
risk of sounding like your parents, do you want to get ripped off just because
a million other people have been?
Aldi Now Accepts Credit Cards
This could be old news, I don’t know. I stopped going to these stores years ago because I didn’t like playing roulette with the possibility of getting stuck waiting in line for fifteen minutes because there was one employee in the entire store. Also because I don’t do business with anyone who doesn’t accept credit cards outside of incredibly rare, possibly life threatening circumstances. Anyway, I stopped in to an Aldi for the hell of it recently and was pleasantly surprised to learn that the company has joined the rest of the civilized world in accepting credit cards. Someone must have had a eureka moment and realized that not accepting by far the most popular payment method on earth to save a few nickels per order, which could easily be accounted for in the pricing of everything (again, like the rest of the civilized world does it), might not be quite the brilliant business tactic they had once thought it was. No, no sarcasm here at all. And by the way, speaking of spare change, I genuinely believe the quarter deposit thing they do with their carts is brilliant. I don’t know if I’ve ever seen one freely roaming a parking lot en route to damaging someone’s several thousand dollar vehicle because someone else is a lazy, entitled asshole. My goodness, I’m in an interesting mood today. But I promise this is happy, if cynical. Remember, Friday.
line thing still happened. As it turned out, the only employee in the store was
in the bathroom. There was a line about half the length of the building when he
came out. I probably won’t repeat this experiment anytime soon. But if you’re
looking for absolute bottom line grocery prices, this store may be worth a
visit for you – especially now that you don’t lose out on 3% of the
purchase price (it’s actually 5% until the end of June with Chase Freedom)
because management doesn’t believe in pricing its products according to the
costs of doing business with the vast majority of all possible customers. Seriously,
charging credit card users extra is basically like installing pay toilets in
the bathrooms since a few people may have a phobia of using public bathrooms or
something. Or in the case of shady gas stations, who tend to discount their
cash prices by several times anything approaching a possible credit card
merchant rate, putting up a giant “IRS, please audit me!” sign outside one’s
place of business. And not accepting them at all? Well, it’s their business,
not mine. Yes, as old fashioned as I can be, I get incredibly irritated when
people fail to adapt to the overwhelming convention of the times in this
particular area. We are all hypocrites; the only difference is that some of us
are at least willing to admit it. Anyway…
Time to Make a Dietary Change
Sugar is the devil. We all know it deep within our sad little souls and just in case we’re intentionally ignorant anyway, there are about forty million studies rightly screaming it. Recently, I finally accepted that I’m weaker than I need to be at standing up to its cocaine-esque charms. So I’m cutting it out. No, not all of it. We all have to find a balance that works for us in life. In this case, I need to be somewhere between excessive, gluttonous consumption at will, where I have been for much of my life, and eating only what I grow on my isolated, non GMO (if that is even possible given the selective breeding that has gone on with just about all crops for hundreds, if not thousands of years – but I digress), 100% organic farm in the middle of some God forsaken backwater town no one ever visited, let alone lived in, on purpose.
The logical choice seems simple. I’m not going to try to police every gram of sugar out of my life. Cutting out only the stuff that is primarily sugar (cookies, my beloved Nutella, my even more beloved Freddy’s chocolate custard concrete mixers with various mix ins, etc) will amount to a major improvement for me. I recall reading somewhere that habits take seven weeks to form so I’m going to do two months for good measure. I started on Tuesday so that means I’m going until July 28. I’m hoping that by then I won’t even want the stuff anymore. But we’ll see how it goes.
Words are all well and good. But without numbers, how much do they really mean? I’ve decided that in order to make this blog as valuable as possible for readers, I need to make it specific. As such, I’m going to give you a very intimate look at an important element of my personal finances. In particular, I’m going to show you what I spend on EVERYTHING. Obviously this is all specific to me, but to illustrate things more vividly, I’m going to go into detail on each of these “line items,” one post per week. Hopefully it will give some folks an idea or two on how to cut expenses without sacrificing anything that’s important to them.
Before I jump into the numbers, here is some basic
information about me for context. I’m a male in my early thirties with no
dependents (not even pets) and while I spend my share of time with certain young
ladies, I live alone. The numbers below are average figures between what I
spent in 2017 and 2018. In 2017, I lived in an upper middle class Milwaukee
suburb with a relatively moderate cost of living. But for most of 2018, I lived
in the Galleria area of Houston, which is pricier than almost anywhere in
Wisconsin, but still very reasonable for a wealthy part of a major city.
I work as an outside sales rep in the commercial finance
industry. That affects a couple of areas of my spending. First, since I expense
around half a dozen restaurant meals most weeks, I don’t have much desire to eat
at restaurants in my personal life and as a result, I spend almost nothing in
that category. This also cuts down on my grocery spending somewhat, although I
like to cook and spend fairly liberally on groceries for the meals I do buy.
Second, in spite of my employer’s generous vacation policy, actually taking
advantage of it would cost me much more in income than in any other way. Plus,
I travel a lot for work, resulting in general travel fatigue, and I’m single. So
this is just not an area I spend much in. However, I consider both restaurants
and vacations luxury spending categories and thus, if one were trying to live
as economically efficiently as possible, these numbers would still be very low.
As I said above, I’ll get more specific about what I do in
each area in subsequent posts. But in general, my lifestyle (note, I said
lifestyle, not spending; the difference between the two is the foundation of my
financial success) is somewhere between middle class and upper middle class and
I save over half my gross income. In other words, there is plenty of fat in my
expenses since I pretty much do whatever makes me happy. No economic
constraints limit my spending besides my desire to increase my net worth
The first number in each category is what I actually spent;
the second is about what I would spend if I needed to live as economically as
reasonably possible. I will note that the most advantaged living situation is
two productive people under one roof, assuming they can trust one another and
are on the same page financially. When I lived with my ex-wife and we were
working on paying off a mountain of student loans, we spent more than my bare
bones total figure below but didn’t come anywhere close to doubling it (keep in
mind the figure is for one person, not two). So it is definitely realistically
achievable. If you are astute, you will notice that I’ve omitted one very large
expense: taxes and fees. In the interest of keeping things at least somewhat
private, I’ve decided to leave that exact figure out, at least for now. I’ll
simply tell you it is less than the total of all my other expenses but not by
much. Plus, there is only so much one can do to limit that number when the
majority of your income is W2. I’ve been investing more of my time into improving
that situation and if I find success, I may post about it at a later date.
Anyway, here we go!
My Average Annual
Expenses Between 2017 and 2018
Auto maintenance/repairs: 1300 (500)
Cash donations: 2100 (subjective)
Clothing: 700 (100)
Food – groceries: 1700 (1200)
Food – restaurants: 500 (0)
Fun: 2100 (300)
Gas: 2800 (1200)
Gifts: 1200 (200)
Household expenses: 700 (300)
Housing: 12,600 (6000-10,000)
Insurance: 3000 (2000)
Medical: 900 (0)
Memberships: 300 (300)
Other: 2400 (0)
Supplements: 100 (0)
Technology services: 500 (350)
Utilities: 1100 (600)
Vacation: 300 (0)
Vehicle depreciation: 2100 (500)
Total: 36,400 (13,550-17,550)
How did I arrive at these numbers? And why the range in the housing
category for the minimalist budget? You’re just going to have to stay tuned to
I occasionally hang out with early retirement minded people. Some of them have already taken the plunge, some are thinking about it more and more as I am, and some are much earlier in their financial journeys but are intrigued by an alternative to the “work till you’re either dead or wish you were” program that has been the standard for far too long. Easily the most common question I hear being asked of the people who have already retired ten, twenty, or even thirty years before the traditional age, is “what about health insurance?”
And I admit that was one of my first questions as well. Most
people I’ve met answer this question in one of a few disappointing ways. Some
were able to negotiate some sort of arrangement with their final employers,
some have a spouse that is still working, and many are structuring their incomes
in such a way as to be eligible for subsidies on individual coverage under the
Affordable Care Act. None of these is workable for me. My current employer will
likely be neither willing, nor able, to make any deal with me, I don’t have a
spouse who can keep working so I can “retire,” and I can’t stomach exploiting
badly written legislation for personal gain – particularly not when I’m
currently paying a substantial share of the associated bill.
After I recently learned of some significant challenges my current employer is facing, which threaten not just my job and those of many of my colleagues, but the company itself as a going concern, I’ve been thinking a lot about my options. I could find a similar job at another company. Since I started my latest job search, there have certainly been some encouraging signs that this will be a viable option – although nothing has come to fruition just yet. But aside from maintaining the status quo as an employee/entrepreneur hybrid, I’ve been looking at other, more adventurous options. One common thread among many of them would be stepping out from under the umbrella of having an employer at all. And this has brought the health insurance question back to the forefront.
But as I’ve begun to explore the issue, I’ve actually been
very pleasantly surprised by what I’ve learned. It turns out individual health
insurance is both fairly straightforward and less expensive than I had
anticipated. I acknowledge that things would likely be different if I had dependents.
But at roughly $15k per child, per year, for as long as one is willing to keep
the financial umbilical cord intact, having children is one of the most expensive
financial decisions a person can make. That is one of several reasons I’ve
personally opted out.
Anyway, I searched around and Blue Cross Blue Shield appears to be king of individual health insurance in my neck of the woods. By simply entering my birth date, non-smoker status, and zip code, I was presented with a menu of options ranging from the most minimalist plan at roughly $320 per month to something approaching the top of the line plan I have now at nearly $700. I didn’t see an annual payment option but if one is offered with a decent discount, it would amount to an awesome churning opportunity. One nice thing that I believe came out of the ACA is that it appears all plans now cover the one annual preventative appointment we should all be going to. Of course, that is priced into the premiums. But I digress. Beyond that, as a relatively healthy young adult, I’m almost certain to spend somewhere in the $0-1500 range per year on health care expenses, meaning paying an extra $400 a month for a high end plan that would cover most of that doesn’t make sense. I will note that there are subsidies offered for people with surprisingly high income limits. Sadly, I’m in the group that pays handsomely for those subsidies to be offered, and don’t anticipate that changing, so I’m paying full freight for my own coverage no matter what. But your results may be different – particularly if you have kids. And as the birth rate continues to decline, it is very likely that we will all see the government using more mechanisms like this to force people like me to subsidize your procreation efforts. For what it’s worth, that will likely offset at least a portion of the additional costs you would face in areas like this.
Ultimately, my choice would be a plan that costs $332 per
month because it is the cheapest HSA eligible option. With a deductible of $6k,
an out of pocket limit of $6650, and no prescription coverage until the
deductible is met, I would almost definitely be paying all of my costs beyond
the annual preventative appointment. In most cases, I would probably not even
use the insurance, instead opting to negotiate directly with doctors since my
insurance would effectively cover nothing anyway. I’ve heard there is often significant
room on the pricing if you aren’t forcing the provider to deal with an
But this is where it becomes important to calculate things out for yourself. If you tend to spend a lot in health care costs, it may make sense for you to go with a plan with higher premiums but more coverage. One thing to consider is that it’s not necessarily the end of the world if a plan doesn’t offer prescription coverage (it can’t if it is HSA eligible). Thanks to a wonderful website called Good RX, anyone can pay much less than retail prices for prescriptions whether or not they have insurance. Don’t ask me what kind of sorcery makes it possible, but this can be an absolute godsend if you don’t have prescription coverage and yes, I did use it back when I worked for an employer that offered a very minimalist coverage option.
I’ve mentioned “HSA eligible” twice now. Why? HSA stands for
health savings account and it’s a hidden financial gem. Unlike an FSA, which is
garbage unless you have health care costs you can forecast very reliably, an HSA
is a tax advantaged account that can be built into quite an asset. To put it
simply, it is a miniature Roth IRA for health related expenses only. This year,
an individual can contribute $3500 into one. The money can be invested in
whatever you want, provided you’ve chosen a good provider, and as long as you
don’t spend it, it will grow tax free just like a Roth IRA. It does ultimately
have to be spent on health care expenses, but given the state of the industry,
I don’t believe any of us will have too much trouble accomplishing that. In
fact, remember that quarter million dollars the media is always screaming about
you having to pay for your health care expenses during your traditional
retirement years? Well, if you contribute the max to a Roth IRA for twenty or
thirty years and don’t use any until you retire, that is more or less covered –
without dipping into your other assets. As usual, a little knowledge can go a
long way towards putting out the fires of mainstream ignorance. The important
thing to keep in mind with HSAs is that only certain more minimalist health
insurance plans are eligible for them. If you have a lot of health care
expenses now, you may be better off with a “Cadillac” plan paired with an FSA.
No one can tell you definitively without specific information; I recommend that
you run your specific numbers yourself to figure it out.
But in my case, a disaster only health insurance plan and an
HSA are a home run combination. The only problem is that pesky “Cadillac” plan
I have now. But given that I’m kicking in well under $100 a month for it, and
that’s tax deductible by the way, it’s obviously the best option available to
me as long as I’m with my current employer. However, once that relationship runs
its course, likely by the end of this year, it’s nice to know I will have some
great options available to me and that they won’t be nearly the financial
disaster the media would have folks believing they are.
We’ve nearly made it through another week – at least those of us who work conventional hours have. Here are some quick tips and recent observations to celebrate the coming weekend.
Listening is a lost,
but crucial art.
Back when he was just a regular NFL quarterback and not the center
of a controversy the media hasn’t completely stopped exploiting for ratings,
page views, etc to this very day, Colin Kaepernick was in a commercial for some
incredibly overpriced noise canceling headphones that involved him easily
ignoring very hostile Seahawks fans. At the end, the slogan “hear what you
want” is displayed. Much like paying a premium price for very pedestrian
headphones, the slogan was rather unproductive.
This week, I had a conversation with a customer that made it
painfully clear he had been taking this approach quite literally in numerous
conversations we’d had over more than a year. Not only had he missed some
fundamental, incredibly important points, but he had apparently been operating
under the assumption that what he “didn’t know” (I put that in quotes because
I’m still not sure I believe anyone could have every one of the conversations
we had and still not know things that were repeated so emphatically, so many
different times, in so many different ways) couldn’t hurt him, and that
everything would work out in a very advantageous, but tragically impossible way.
Based on this wildly inaccurate view, he wanted to make a decision that would
likely have cost him tens of thousands of dollars over the remainder of this
year and much more in the long run. I like the guy, but the sheer absurdity of
what he apparently believed almost made my head explode. It was a visceral
moment that forced me to understand that my efforts are simply not
accomplishing anything in his case. Anyway, when I informed him of the almost
certain consequences of the decision he wanted to make, he immediately changed
his mind. But clearly this was the first time he had ever listened when I told
him these things and he had managed to walk all the way to the edge of a
financial cliff while ignoring me repeating them again and again.
Listening doesn’t always have implications that expensive,
but sometimes they can be even more important. How many relationships have
broken down because one person stopped listening to what the other was really
saying? How many medical mistakes has this caused? How many decisions that
affected thousands of people have been made based on faulty or incomplete
information as a result? The costs of this phenomenon aren’t even quantifiable.
But one thing is certain; we can all do better in life if we go into
conversations with the goal of gaining whatever information the other person is
trying to share with us first. Not only will we make better, more informed
decisions, but relationships will improve. I’m working on improving in this
area myself and I recommend everyone do the same!
If you’re buying a
greeting card, the dollar store is your friend!
Obviously if you want something to last a while, the dollar store is a questionable choice at best. But if you’re buying a folded piece of paper with canned words on it for the strict purpose of having something to give someone versus not, you’re about to save some money. Rather than paying the ridiculous amount of $3-5 (or more!) for something that will most likely be in the garbage within ten minutes of receipt (multiplied times goodness knows how many per year), you can buy the same damn thing for a buck – or even fifty cents if you choose certain cards! Will this turn your financial situation around on its own? Not likely. But it will save you 80% or more on this particular purchase, which happens to be repeated many times, year after year. And perhaps more importantly, it will help you stay in the mindset of being financially intentional – accomplishing 100% of your goal without spending more money than you have to. This mentality will save you a ton more money if applied to all areas of your financial life.
Game of Thrones is
The ending, along with the entire final season, was ever so
slightly controversial. I don’t believe in ruining good entertainment for busy
people so I’m not going to post my thoughts on it yet. And besides, my opinions
are still swimming around upstairs as they form, almost solidify, break down,
form again, etc. But rest assured, that post will be coming in the next couple
A couple weeks ago, I switched from Republic Wireless to Mint Mobile, the company with the little green marketing spokesfox. Republic worked out great for me for over four and a half years and I have nothing negative to say about the company…except that it changed its pricing scheme in a way that would have effectively doubled the price for light users like myself when I wanted to upgrade my phone. So when it finally came time to do that, I first did what any financially conscious person would in that situation and re-evaluated the market. It turned out that while it was a price increase of about $5 per month from what I had been paying, Mint still came in about $5 cheaper than the new price Republic would have charged for what I do; and it offered 3gb versus 1 on top of the cheaper price. So I gave it a shot. I wanted to give y’all a quick update on how it has worked out.
So far, there isn’t much to say because Mint has done
exactly what it promised to do. In almost half a month, I’ve used just over
half a gb of data since I’m on WiFi the vast majority of the time. And to give
it a good, fair test, I haven’t made any effort to avoid using data whatsoever
beyond setting the phone to use WiFi when available. So unless I use about five
times as much data for the remainder of the month as I have in the first half,
I won’t hit the point where I start getting throttled. As for quality,
everything has been great. Calls are clear, I’ve had zero reception issues or
dropped calls (Mint uses the T-Mobile network; Republic uses Sprint), text
messages go through, and data speed is more than adequate in the rare circumstances
when I need to use it. The setup process was very simple and it took me less
than ten minutes from unboxing to having a fully functional new phone.
Being a relative luddite by design, I’ve been predictably thrilled with the upgrade from the Moto X1 to the X4 and with a little bonus I didn’t even anticipate (keep in mind that the X1 was my very first smartphone). I hadn’t realized I would still be able to use my existing phone as a WiFi device. That is a kick ass development since the only real problem I had been having was call related (and even this likely had more to do with Republic Wireless than the phone itself) and being able to continue using it this way for probably at least a few more years is worth much more to me than the few dollars I could have gotten in return for recycling it. Aside from that, I’ve particularly pleased with the X4’s speed, battery life upgrade (I only charge it every other day so far), fingerprint sensor, camera upgrade over the X1, and very fast charging.
The one downside about the phone itself is that the speaker
SUCKS for listening to music. But I use a Bluetooth speaker I got on Amazon for
ten bucks around my apartment so that’s not a huge deal. The only other
annoyance, aside from the dramatically increased phone size that comes with making
just about any upgrade these days (Why do they assume we want to carry around
laptop sized phones? Or am I the one making an assumption in thinking other
people don’t want that just because I don’t?), was having to add a second type
of charger (USB-C) and cable to the birds’ nests of them I keep at home, in my
travel bag, etc. But everything has its price and that lighting quick charging
of my new phone is no exception I suppose.
Overall, I’m very happy with this change. It sure is awesome
when a company delivers on its promises and thus, I’m more than happy to
recommend Mint Mobile to anyone! And as always, my recommendation cannot be
bought; I’m not being compensated in any way for saying this. Even if you use a
lot more data than I do, Mint is still a great option for you at $20 for an 8gb
cap and $25 for 12. Happy smartphoning!
There is no denying it; a good diet is key to both physical and mental health. For years I fought against that concept, insistent that if I worked long and hard enough in the gym, I could “have my cake and eat it too.” And while I was successful at staying in above average physical shape that way, I ran into two problems. First, I could never completely outwork an overindulgent diet. The only way I have ever gone from good shape to great is by being disciplined about what I eat and when. Second, as I’ve gotten older (I’m in my early thirties now), the degree of difficulty has increased. Dietary sins I could easily have shrugged off in my early to mid twenties result in significant punishment today – both in my appearance and in the way I feel.
In my experience, eating enough good stuff isn’t too
difficult. I love eating protein so getting enough of that is easy, although I
mostly stick to chicken and fish with beef being an occasional treat. I force
two to three servings of fruit and three or more servings of vegetables down my
throat each day in the form of green smoothies in the mornings and evenings.
From there, I just make sure there is some sort of vegetable element included
with most meals and I have that covered. I make sure to get a moderate amount
of decent quality carbohydrates, which is easy since I enjoy them. Making
things as automatic as possible and minimizing the number of decisions I have
to make helps me to maintain a solid baseline diet.
But one area has always been a thorn in my side. I love junk
food. And I’m not one of those people who has only a sweet tooth or only likes
salty/savory snacks. I’m an all of the above kind of guy, and a gluttonous one
at that. So I want to talk about what I’ve done to combat that – what has worked,
what hasn’t, and what I’ve learned from it. It probably won’t all apply to you
but if any of it gives you an idea that helps, then I consider this post a
success. So in no particular order, here we go.
1. Some things have
I loved soda (that’s “cokes” for my native Texan friends) as
a kid. Thankfully, I wasn’t allowed to have it at home very often but when I
was out of the house – hanging out with friends, for example – I went to town!
I distinctly remember being “up north” (a Wisconsin term to describe “vacationing”
in an even colder, more economically challenged place than your actual home,
which is more than likely easily characterized by both of those already) as a
young lad with some relatives when I consumed five sodas in a single day and
wound up throwing up multiple times that night. I loved the stuff. But in my
early twenties, I learned that it’s basically poison and almost immediately, I simply
stopped drinking it. At no point have I felt any urge to “relapse” and as a
result, I haven’t had any soda in a very long time. I’m almost exclusively a
beer or wine guy when it comes to alcohol, so no, not even in mixed drinks. I
have absolutely no idea why this was so easy for me but sadly, that hasn’t been
the case with other forms of junk food.
2. Moderation has not
been a successful approach at home.
Over the years, no matter what I’ve told myself, I’ve
learned I simply can’t keep junk food at home. I’ve tried everything I can
think of and the result is always the same; I start with the best of intentions
(I will make this last two weeks…), then make little bargains with myself (I
will eat tomorrow’s allotment today, but then NONE tomorrow), then break them
in favor of other less restrictive ones (It’s football season – I’ll eat the
rest of this bag this weekend, but then I won’t open another until next
weekend), until finally, I simply accept reality and wolf down whatever is
left, swearing to never buy it again. The take away here is pretty simple; I
don’t keep junk food at home. Lack of access has proven very effective.
3. Associations can
I don’t believe in drinking milk. At all. I wish I had known
what I know now as a child when I guzzled it like water. Clearly my Mother hadn’t
done as much research on milk as she had on soda; or perhaps the science hadn’t
gotten as far with one as it had with the other. But live and learn. Anyway, at
one time, my ultimate junk food weakness was Oreo’s – a product (note, I didn’t
even use the word food) that requires milk in order to be enjoyed properly. It
was very rare for a package of those evil things to last three days. If I was
doing well, I could limit myself to a single ROW at a time. And I didn’t often
do well. Thankfully, when I stopped drinking milk, Oreo’s no longer did it for
me. I even tried once but without milk, it was like going to the beach without
it being warm outside. It just didn’t make sense. So in that case, cutting out
one bad thing made it much easier to cut out another. This is a concept that
could probably be useful elsewhere…
4. There are
definitely degrees of bad choices when it comes to lunch options and my body
knows the truth.
As an outside sales rep, restaurant lunches are a reality of
life. This was before my working days, but I went to a McDonald’s in 2010 for
the first time in many years. I was involved in a big group activity, we were
in a hurry for lunch, I was not in charge of the group’s decisions, apparently
there was no decent alternative anywhere in the vicinity, there was peer
pressure, etc. It happened, and I paid the price. Almost immediately, I felt
like my stomach was going to explode. And it lasted for the rest of the day
until I gave in, went to the bathroom, and threw up. I didn’t have to try to do
that so much as I just had to stop preventing it from happening. My body’s
tolerance for the purest form of garbage food had been gone for some time.
Today, all I can think of when I see those golden arches is that experience and
I have not repeated that mistake again.
I do go to fast food restaurants sometimes, but only if they
serve some form of actual food. For example, I go to Chick Fil A and get just
about any of the entrees, a large superfood side salad, medium fries, and
water. That’s a pretty decent meal for a hungry, athletic man. If I want a
burger, I go to a place where they cost around ten bucks but you get actual
meat. Five Guys used to be a good example, although based on the last few times
I’ve visited, it seems like they’re going downhill. Also, Five Guys is
definitely a bulking phase only restaurant and even then I only order the small
versions of everything. I enjoy the abundance of quality fast casual options
here in Houston which, again, serve mostly real food. Or I go to any of a
handful of good sub shops – or if there are no good sub shops around, I resolve
to plan my day better, sigh, and go to Subway. Every now and again, I will go
to Freddy’s and splurge big time. If you’re not familiar with Freddy’s, you’re
both missing out and lucky at the same time. I fully prepare for a rough
afternoon on those days (although still not McDonald’s rough), but Freddy’s is
5. A balanced
approach works best for me – but again, not in the house!
Lately I’ve settled into a system that seems to work pretty well. I have a good “base” diet that covers the important things as I described in the second paragraph of this post. I eat in around a ten hour window, which is a relaxed version of an experiment I tried that was way too effective at weight management for a guy that looks and feels best carrying some extra muscle and is willing to sacrifice the exposed six pack look to do it. Seriously, if you want to maintain an extremely low fat/low weight build, this is almost definitely one way to accomplish it. From there, I enjoy life without letting things go off the rails. I get myself a coffee in the lobby of my apartment at least once a day (free and great quality – just one of the many perks of living where I do) and if I want to also indulge in one of the cookies they regularly have out, I do. Same goes for Costco samples. As long as it’s not IN my home, it doesn’t become excessive.
I generally eat nutritionally decent, but enjoyable food,
but I do allow myself a single cheat meal per week, complete with the happy
ending. No, I’m not talking massage parlors, you degenerates. I haven’t had to
pay for that stuff…yet. I’m talking dessert. For a guy in his early thirties
that spends a lot of time in the gym and wants to look like it, but also wants
a little of what Joe Rogan, a man I actually couldn’t stand as an MMA hype man
but love as a podcast host, regularly refers to as “mouth candy,” it works. For
now. But keep in mind that things are significantly more difficult for me today
than they were five years ago and five years from now, I will probably have to
re-balance what I’m doing to adapt to the continuation of that trend. Whatever
happens, I will try to maintain some food related enjoyment, even as it will
almost certainly dwindle closer and closer to none.
The 5 Second Rule: Transform Your Life, Work, and Confidence
with Everyday Courage (2017) by Mel Robbins
I decided to read this book because I had been impressed by
a couple of Mel Robbins’ speeches I saw. In writing, Robbins has the same firmly
positive, but realistic tone. Her five second rule seems like a gimmick but it
also seems to help tons of people so it’s worth trying. While it hasn’t worked
very well for me, I am incredibly over analytical and going through a stressful
time in my life at the moment so virtually nothing is working well for me. I
believe you are very likely to have better results.
There were two things I liked the most about this book.
First, it is very human. Robbins is very open about the struggles she has had
and acknowledges that everyone will have some of their own. That said, she
advocates finding ways to push through those struggles and succeed in spite of
them. Second, while it is a very easy book to read, it is clear that a
substantial amount of research went into it. Robbins distills things into very
simple concepts but it’s clear she has a well earned understanding of
psychology that has made it possible. I believe just about anyone could learn
at least something valuable from this book that would help them improve in life
so I highly recommend it.
The Honest Truth About Dishonesty: How We Lie to Everyone –
Especially Ourselves (2013) by Dan Ariely
I’ve been a Dan Ariely fan for quite a while now. His work
all falls between psychology and economics and the links between the two are
fascinating. I’m obviously not the only one who thinks so as Ariely has come
further and further into prominence in recent years. This particular book was a
lot of fun to read – although it was also a little eye opening in some
uncomfortable ways. It very vividly illustrates a concept I’ve believed to be
true for quite some time now; namely, we are all full of shit and the only real
differentiating factor is how honest we are about it.
This book goes into detail on numerous experiments by Ariely
and others that attempted to identify the significant factors that affect the
lying and cheating that make up a much larger part of life than most of us would
ever believe or admit. If you’re anything like me, this book will have you
thinking a lot about your own life and feeling slightly uneasy plenty of times.
But I’m a big believer in having information, even if it’s not the information
I wish I had, versus living in blissful ignorance.
And somehow, through all of this rather dark topic, Ariely
manages to maintain a light hearted, and even often humorous tone. My sense of
humor may be darker than most, but I chuckled to myself several times while
reading this book. Overall, this book taught me more about the dark side of people,
including myself, and kept me reasonably entertained in the process. I was
already a pretty big fan of Ariely’s work so factor in my bias, but I highly
recommend this book.
I wasn’t always where I am now with money. As a newly minted adult with a full time income that seemed substantial at the time, I thought the world was my oyster. I had zero respect for the value of the dollars in my possession. If I saw something I wanted, even a little bit, I bought first and asked questions later. If my friends and I were bored, dinner and/or drinks would solve the problem – maybe with a movie or a round of golf thrown in for good measure. And if I had a bad day, setting some money on fire for any reason, or even no reason at all, seemed to ease the pain. I probably wasted tens of thousands of dollars on almost literally nothing productive in just a year or two. Had I continued along that path, my financial life would be an unmitigated disaster today and I would have been part of the multitude of people who are woefully unprepared to retire in spite of living in the richest country in the history of the world.
Of course, this wasn’t healthy behavior and after I realized I had been working for a few years and had virtually nothing to show for it aside from some stuff that was mostly worth pennies on the dollar I had paid for it, I wised up pretty quickly. But as a relatively wealthy, still young adult, I’ve noticed that most people seem to have either missed that lesson or skipped it intentionally. Maybe they weren’t blessed (seriously) with the harsh reality of financial scarcity when they were kids like I was. Maybe they simply can’t bear to admit the truth about what they’re doing to themselves. Or maybe they simply prefer the bird in the hand of doing what is easy today to a much more prosperous future that isn’t 100% guaranteed, even if it is extremely likely. I really like the way my new Houston real estate mogul friend explained the concept in this post.
Whatever the reason, I see people driving their financial
cars with the e-brake on almost everywhere I look. I’ve long since learned not
to be “that guy” so I neither give unsolicited advice, nor ask any questions
that might lead anyone to the unpleasant experience of looking in the
figurative mirror. In my experience, if people want help, they ask for it and
if they don’t ask for it, they don’t want it. But I often have to stifle a
strong urge to try to help people anyway when I see them destroying their
financial futures because I know how much pain it will cause them in the long
Don’t get me wrong; I don’t consider myself even remotely
frugal and I hate everything about the term. There are very few aspects of my
life where I’ve chosen to spend the absolute minimum possible, or even close. I
live in a luxury apartment that costs more than double what a bare bones living
arrangement would. My car has leather seats, almost 300 horsepower, more electronics
than the spacecraft that took the first astronauts to the moon, flashy 18 inch
rims, and so much more; and I’m probably going to make a huge upgrade from that
in the next year or two. I eat and drink what I want, when I want, where I want.
If I wanted to take a vacation, there would be no practical limits to where I
could go or what I could do and given how difficult it is to find the time, I
wouldn’t be likely to waste the opportunity by going cheap. I could go on and
on but the point is that I’m in no way deprived of anything I could imagine
wanting in life.
So how am I different than my young adult self in the way I handle my money then? Aside from having tons more at my disposal, everything I do is intentional. Spending money is a means of accomplishing some specific purpose – not a pastime or a figurative drug I use to tamp down unpleasant emotions. If I get the notion to spend money, I think about it first. Is it necessary? If not, it’s a want, not a need. If it’s a want, is it something that will truly contribute to my life in a positive and meaningful way? If so, what, exactly, is my goal in spending this money? What is the best way to accomplish it? What is the most cost effective way? Where does it make sense to be on that spectrum in this particular context (between maximum utility and maximum cost efficiency)? Sometimes, I buy the best. Other times, I go with the cheapest option that accomplishes everything I want it to. On very, very rare occasions, I go with the absolute cheapest option. The important thing is that if I’m spending money, I know why I’m doing it and why I’m making the specific choices I am about it. And the good news is that while it may have seemed tedious when I was starting out, over time, this thought process has become almost automatic for me.
This may sound pretty obvious and to some of you, it
probably is. But there are tons of people out there who seem to have no clue
why they’re making the financial decisions they are. And there are tons of
people who are totally broke. And both groups are large enough that there is
almost definitely substantial overlap between the two. For anyone who resides
in both, you need to make some dramatic changes if you want to improve the
situation. Being intentional with your financial decisions, both large and
small, will almost definitely help. Not only will your finances improve, but
you will probably find yourself feeling calmer and happier. Have a wonderful
weekend, everyone! And if you’re in Houston, hopefully you either have a boat
or know someone who does – because that’s what it’s going to take to get very
far down the road pretty soon if this rain doesn’t let up.