Don't Take Wooden Nickels!

Tipping the wait staff in a restaurant has always been a much debated topic.  How much of a tip is appropriate is the most often argued part, however, some people seem to feel that they should not have to tip at all as it should be the restaurant's responsibility to pay their staff an appropriate wage.  I have never worked in a restaurant before but I do understand the importance of giving good tips.  These people are SERVING you.  They are doing this in exchange for money.  If you don't want to have someone SERVE you, go to a fast food place.  I always tip 20% unless I feel the waiter/waitress was either rude or they seemingly disappeared.  If the meal was bad, it probably was not the waiter's fault.  Be polite to the waiter and ask to speak to the manager to voice your concerns.  Just because someone is SERVING you for money doesn't mean you have the right to be demanding, rude, or demeaning.  They are human beings just trying to make a living and pay their bills.  Respect them!  There have been many times that I have seen the people at the table next to me be real jerks to a waitress because she didn't bring them the extra butter as fast as they wanted or some stupid reason like that.  If you get impatient easily then you probably need to stay home and cook for yourself.  If you are too cheap to pay someone 15-20% for SERVING you then stay home and keep that table open for someone who will pay them.  Respect your fellow human beings in every thing you do. 

Frugal Living Is Your Real Debt Consolidation.

On August 1st, 2008, I had finally had enough of playing the debtor's game.  It was time for a change, a radical change.  We were in debt a little over $100,000 which included the house.  I realize that 100k is not really that much because about 80k of it was the house, but I was just tired of playing a game that felt like tug-o-war against myself.  I am a natural saver.  I have been saving/investing 10%-15% or more of my income for most of my life so I only feel "right" when I am saving.  So I was trying to save over 15% of my income AND pay all the bills (credit cards did the yo-yo from $0 to $2500 to $0...etc) and continued to use credit cards.  My total investments kept going up but my debts kept going up little by little as well.  I was about to turn 40 and didn't see how I would ever really win this game unless I changed the direction we were going in.  Credit cards had to go.  They are not evil, just too convenient.  Since August 2008, We have paid off $39,000 and only have $61,000 left to go (only the house).  I am committed to be debt free by 12/01/12.
The crazy thing about paying all this money off is that our day to day lives really have not changed much, just our thought process.  We are not the overly frugal (in my opinion) people you read about on some blogs.  I do a lot of searching other blogs to get ideas on personal finance and I come across some really different frugal/cheap/wacked-out people.  Some people go way overboard in their frugality almost to the point of insanity.  Come on people, live a little!  It is very rare that you and your spouse are both equally on the debt freedom path.  One will usually be 100% committed to it while the other is probably just along for the ride.  If you are the 100% committed one, you will burn-out your spouse really fast if you change their life too drastically.  It is a give and take situation.  Come up with ways to make your lifestyle change look a lot less dramatic than it is.  If you enjoy going out to eat, still go out (less frequently) but only when a restaurant has special nights (example is $5 pizza night).  Still go on vacation, but have a budget and save cash for it.  Take the family on a long bike ride.  Go hiking at the state park (free) with the family. You will soon realize that you do not have to spend much money to have just as much fun as you did when you were building your debt.  Don't use the "trying to be debt free" thing as a reason to be a stick in the mud.  You might need to be a little more creative in order to have fun and spend less but in the end it will be worth it.

How To Get Out of Debt and Live Debt Free! Pay/Paying Off the Mortgage Early..Yes I Should!

I find that most people really don't care if they are debt free or not.  If they can "afford" their current lifestyle, they are fine with debt.  What they really are not factoring in is RISK. Something bad might happen.  More than likely, their lives will not continue to be exactly as they are now.  They fail to ask themselves "What if".  What if they lose their job?  What if someone in their family has a major illness?  Those "what if's" are scary enough to me to make me want to eliminate (or at least significantly reduce) the risk.  Follow these steps to start your path to debt freedom. 

Step 1.   COMMIT TO IT!   Decide that you are 100% DONE WITH DEBT!  No if, and's, or but's.  Credit cards are not an option, CASH ONLY.  Done.

Step 2.   BUDGET TIME.  Figure out exactly where you are and how you will get to your goal.

A written budget giving each dollar a name is important.  Track every expense. Know exactly when you will reach your debt free date.  Have little celebrations for each debt that you pay off. 

Step 3.  NEW LIFESTYLE.  Your old lifestyle was fun but expensive.  It got you into this mess, time to say goodbye to the old and into the new.  You will be more frugal in many ways.  Eating out will be a real special treat.  Figure out how to reduce every expense (cable, cell phone, energy bills, vacations, etc.) while still enjoying your life.  Don't be a miser, just live much more financially responsible.  Read/listen to Dave Ramsey for motivation & advice.

Step 4.  SELL MORE, WORK MORE.  How much "stuff" do you have that you no longer want or need? Put it on ebay or craigslist today.  Another stream of income is huge.  Find a part-time job that brings in the very valuable extra income to increase your debt payoff.

Following these steps will make you debt free (except the house) in probably about 2-3 years.  Kill the mortgage and you will be part of the really weird 2% of Americans.  Live debt free for the rest of your life.

Integrity for $100, Alex! Get a Clue.

What is integrity?  Do we know it when we see it?  How do you get it?  These questions ran through my mind this morning as I lay in bed.  I have no idea why I was wondering about integrity, but it got me thinking.  Does integrity run hand in hand with morals?  I know a guy at work who is a devote christian but I often question his integrity and ethics.  He seems to skate on the borderline of being ethical (he's in sales).  Is integrity only the results of actions or are your thoughts included in it?  For example, lets say that you book a vacation with a company that gives you a large discount with the requirement that you go on a time-share tour.  If you absolutely have no intention of even considering buying a time-share, does this show poor integrity?  To me, integrity is sort of a label.  If humans walked around with a sticker on their foreheads (based on their actions/thoughts) that had words such as "cheapskate", "unethical", "immoral", or "no integrity"-would it change how they behaved?  As I go through my path to debt freedom, I really don't want to be labeled as being cheap.  I feel like I am right on the border of being "frugal with some cheapskate thoughts".  I am always looking for ways to save money.  I use CFL light bulbs because they save me money, not because they save energy (is this wrong?).  Should I feel guilty when I recycle products only when it is convenient?  If at work I leave the lights on all day long even when I leave the room but at home I always shut them off (because it costs me money), should I feel guilty?  I would probably say I am a bit selfish in a lot of ways.  If it affects me, I care...otherwise-maybe not so much.  If I am not really emotionally upset about the Haiti disaster and didn't donate anything, does that make me a bad, uncaring person?  I'm not sure why I am having all these thoughts this morning, but I guess it never hurts to get a little philosophical. Too bad life is not more like Jeopardy, we would already have all the answers and just need to come up with the questions.

Vasectomy 101, The Real Truth. Is it Painful?

In 2009, I had an experience that I won't soon forget.  After delaying it for several years, I finally manned up and got my junk snipped.  That means I got a vasectomy.  Just the thought of getting the procedure done made me grimace.  Once I hit 40, however, I knew it was time to give in as I didn't want to be 60 years old when my "oops" was in high school.  I went to the initial consultation with the doctor and was a little surprised when he asked me to stand up and drop my pants.  He then proceeded to feel me up.  I thought that only happened when I went to the dentist.  He felt around my sack area and said "this will be a piece of cake".  He convinced me that it would be virtually pain free and that I would be able to work after a day of rest.  I should have known something was up when a friend of mine who had it done a few days earlier would only say "call me when your done".  He wouldn't tell me anything more and quite frankly I didn't want to know anything else.  As I got to the doctor's office to do the surgery, I started to feel really uncomfortable as the nurse who greeted me was smokin hot.  Noooo!  Why couldn't she be beastly, that's just wrong!  She escorted me back to the room and handed me a robe/sheet kind of thing and asked me to undress and put it on.  She said she would be right back in to shave me.  So I put on this backwards kind of robe and layed down on the crinkly paper covered bench.  She came back in and proceeded to lift up the sheet and flip my man-thing around a few times.  Think baseball, baseball...dead cats..anything but what she was doing.  Luckily I had already shaved myself so she didn't have to.  She said it looked good (huh?) and the doctor would be right in.  The doctor came in and the fun really began.  He started to grab and squeeze my junk like it was some sort of play-doh creation.  He took my left nut and pulled it to the far corner of the room and put a clamp on it. He did the same to the right one.  He then stuck a giant needle in each side of my sack and shot in some boiling novocain.  Now the real uncomfortable part was about to begin.  As he sliced open the left side of my sack, both my legs about kicked him in the jaw.  Ughh!!  He asked if I felt it.  "YES", I murmured.  So then he gave me another shot of novocain in each side.  Then he said that I would feel a "slight tug".... ZING-ZANG-POW!!  He pulled out my vas tube and sliced and diced.  I felt everything and it was not cool.  He then used some sort of sci-fi looking contraption that was plugged in and humming.  He put it up to the tube that he just cut in half and sent 4,000 volts of electricity through my scrotum.  I smelled my manhood burning.  Inside, I was doing the silent scream.  He then told me that I was halfway done.  I was thinking that there was no way the other side (my right) could possibly be as bad.  I was hoping the novocain would have fully kicked in and I wouldn't feel a thing.  FAT CHANCE!  It was worse that the first side.  Enough said about that.  When it was finally over, I stood up (looked at my red, black, and blue mauled sack) and tried to put on the jock strap that I had brought for after the surgery.  Here's some advice for you guys, if you are a waist size 34, do not buy a jock strap that says size 32-36.  It won't fit.  I looked at the package to make sure I didn't buy a youth size.  Nope, adult size 32-36.  My junk was being squeezed out of both sides and it wasn't pretty.  After dressing (gingerly), I walk out into the waiting room to meet my wife and I just shook my head and mumbled something at her.  The receptionist handed me a specimen cup that I was supposed to put a sample in and bring back in about 6 weeks.  This "cup" was more like the size of something King Kong would put a sample in.  More about that later.  That was the most unpleasant experience of my life.   The old bag of frozen peas joke is real, it was my best friend.  Luckily for me I was on vacation for the whole week following my surgery.  Eventually, when I needed to bring back my sample, I kept looking at the huge cup with the embarrassing low level of stuff in it.  To make matters worse, the cup tipped over in my truck as I was driving to the office and half the stuff leaked out (yea, gross).  I handed the receptionist my sample, mumbled something, put my head down and walked out of the office.  Good news, officially I'm sterile.

Where Does Disney World Fit Into Dave Ramsey's Baby Steps?

I completed my tax return and was thinking about what I should do with the refund I will get.  I find it kind of funny how my first thoughts with money are always "where should I send it" (as in IRA, mortgage, etc), while most of my friends & relatives are saying "what kind of should we go on".  Am I that big of a nerd? 
Why do I always think practically and most others think fun?  My refund is going to be about $6K (yes, I know about the tax free loan thing) so I can do several things with the money.  I also get a nice bonus from work about the same time as my tax refund.  I am thinking I will send $2K to my Roth IRA, $3K extra to the mortgage, $3K to an emergency fund, and finally a nice family trip to.  OK, so I too am kinda thinking about the vacation, but that is my LAST thoughts about where to send the money.  I pay myself first.  I have some in-laws who are well in debt that are getting a really large tax refund.  They are going to run out and immediately buy a trip to Mexico and another to Disney before they spend all the money on something else (like debt).  They both make good money, but they spend every bit of it (and more).  I am sure to them that I am the "cheap one" who needs to loosen up and have some fun, but I guess I will have more fun later on.  When our house is paid for (12/01/2012) and we are 100% debt free, I guess I will have to loosen up a bit and maybe show everyone how great it is to owe nobody nuthin.  How great will it be to be known as the "smart one" instead of the "cheap one"?

Are You Upside Down on You Mortgage? How To Become Debt Free

If you are up to your eyeballs in debt, it is time to get weird.  Time to shake-up your life & your lifestyle.  Whatever you are doing now is definitely not working so give something else a try.  Get some advice from some people who have been there, done that.   Dave Ramsey has literally written the book on becoming weird in his best seller The Total Money Makeover.  He recommends that you sell your vehicle if you can't pay it off within 18 months.  Buy a beater.  That would be step one (stop using credit cards-step 1a).  Can you really afford the house?  If mortgage payments are more than about 35% of your combined income then you probably can't afford it.  Sell it and scale down to a house at about 25% of income.  OK, so now you sold your nice cars and big house--that's different and weird (good).  Do you have an income problem?  If you are working at Taco Bell and trying to support a family then it is time to step it up and reach your potential.  You may have to work crappy hours (graveyard shift), but there are many jobs that pay well if you are not afraid of a little physical work.  If you are broke and only are working 40 hours a week then it is time to find a part-time job.  I see too many broke people who work Monday-Friday 9-5.  Would an extra $600 a month help your situation?  If so, you could make $600 a month in just about any part-time job working only 15 hours a week.  Too many people want to get out of debt but are not willing to make any sacrifices in order to do it.  Shut up, stop whining & get a life.  If you want to continue living exactly like you are now AND get out of debt, you are living in a fantasy world.  You are doing something wrong, so try the opposite.  If it feels weird, it is probably right.  Shake up your life and get radical.  Make a lot of sacrifices the next 5 years so that your remaining 40+ years will be debt free and weird.

A Wake Up Call From Someone Other Than Your Creditors

While unemployment rates are around 10%, I can't help but have an extra appreciation for my job. Too often people get in a rut with their job and just kind of go into cruise control. I look at my local area and see many of my friends who are laid-off with no real hope of going back to work for another 3-6 months. It makes me realize that I am very fortunate to have a stable job in an industry that rarely has lay-offs. I know that I have "stepped it up" at work by re-focusing and doing anything extra that I can to show my appreciation for my job. Don't be "the complainer" or the "five o-clock Charlie" unless you want to be the first on on the lay-off list. Imagine just how much worse off you would be if your job were eliminated. Scary thought. Times like this can be a much needed wake up call for those who are just going through a routine (rut). A new attitude is a great start and combine that with increased performance and you will help build your financial stability. Wake up now before it's too late.

Do You Want to Be Wealthy? Three Very Simple Rules/Tips to Make You Rich with No Debt Consolidation Per Ramsey & Commuta/Orman

1. Spend less than you earn. This is The most important rule..

-don't waste money, spend on "  value"

2. Invest your savings AUTOMATICALLY.  

Make it an automatic process scheduled regularly.

3. Repeat steps 1 & 2 for 25-30 years.

That's it. These are the "secrets". Very simple yet so hard. Most people fail in step one. Credit cards are DESIGNED to allow you to spend more money than you make. Using credit cards has no place in becoming wealthy. It's not how much income you make, it's how much you keep. I recommend keeping 20% of your earnings. Do this via direct deposit into 401k, employee stock, index funds, & IRAs. Can't afford to? You can't afford Not to! Make it a priority to save. Sounds weird, huh? Don't be normal, normal is broke. Anyone who truly desires to be wealthy will. They have no choice. Big difference between someone who wants to be wealthy & someone who truly desires to be. Napoleon Hill's book "Think and Grow Rich" is a must read. The law of attraction is more powerful than 99% of people can comprehend. Most people will laugh it off and make a joke how they wish they had a million dollars-oops didn't work. Once you understand the principle of this law, you are on the right path to financial success. While your at it, you might as well read "The Power of Positive Thinking" by Dr. Norman Vincent Peale. I have seen my financial success grow by leaps and bounds ever since I understood the power of these laws and principles. The day I truly desired (and thus did something about it) to become wealthy is the day my finances started to turn around. Three Rules (and one law) to live by.

Debt is Like Milk, 2% is Really the Best. The Best Home Equity Loan is Ziltch

Debt is dumb. You can not convince me otherwise unless you are borrowing to run a business. A business is an investment that is intended to make a profit. If you have a great business model and the one thing keeping you from starting up and making money is capital, then debt may be needed. Otherwise, debt is dumb. Personal debt is acquired for many reasons but most often it is because of a lack of discipline. People want things NOW. They will not wait a few months or years until they can really afford the stuff so they do the irrational act of borrowing money. You may say a home is a good reason to go into debt. I went into debt for a home as most others do, but to say it is GOOD is wrong. I truly believe that a home that you plan on living in will not make you money. Once you factor in the interest paid for the loan, the real estate taxes, upkeep & maintenance, improvements, insurance, etc..you will be lucky to break even when selling. In the long run it is cheaper than renting, but don't be fooled into thinking that home ownership is a good investment.  Live within your means (actually live a bit below your means) and save/invest the difference and your future will be better than 98% of Americans. Yes, only 2% of Americans have no debt.  No house payment, no car payment, no loans of any kind.  Those 2% are living like no one else.  What would you do if all your money was actually your money? Start to think like this and then the whole debt is dumb idea makes a whole lot of sense.

My Huffy Needs a Breathalyzer. Homebrewing Beer Hobby

Beer. That wonderful, wonderful word! I started drinking beer when I was pretty young. I have fond memories of my buddy and I riding our bikes to steal some brews out of his grandpa's basement fridge. We would each put a couple of beers in our pockets and ride out to the edge of town and drink them under the bridge. Let me tell ya, two beers at age 11 or 12 would make for an interesting bike ride home. Fast forward to now. I enjoy beer so much that now I make my own. Homebrewing is a great hobby. It is kinda like making a cake. You get all the ingredients and follow the recipe. I'm not talking about a Mr. Beer kit, this is the real deal. There are lots of great websites that you can buy the ingredients & supplies needed to make your own sweet nectar. The whole process from start to finish takes about 5 weeks. The best kick I get out of it is when I give a friend one of my homebrews and he is like "damn, you made this--pretty good". You just can't beat good beer, good friends, and a good bridge to drink under.

A Book a Day Keeps Ignorance at Bay. Top Audio Books to Become Wealthy

>The Power of Positive Thinking...Think & Grow Rich...The Richest Man in Babylon...The Strangest Secret...these are a few of my favorite audio books. Yes, I said audio books (me a lazy reader). I have a 30-minute commute each way for work and if I listen to an audio book it makes my drive seem like its about a half-hour (huh?).
> I guess one day I got tired of listening to the usual sports talk radio so I downloaded an audio book & have been hooked ever since. Why not learn a little something on your way to work? The morning starts out with a good cup of coffee, a good book (umm..audio book) and me paying attention to the road for at least half the time. Set the old cruise at 67mph (yea, I'm a rebel) and fill the brain with wisdom. Now I just need to figure out how I can do my taxes as I drive to work...