Weekly Roundup – Loose Change Edition

We have moved and settled into our home – well, at least we’ve moved! It will be a while before we unpack the last box, especially since I went back to work today and left a house full of boxed up stuff for the family. Pretty sad when you go back to work to rest up!

Over the weekend, while packing, I came across a handful of change. With my coin jar already packed, and time running out to move, I felt like tossing the change in the trash bag and moving on. But that would have really hurt me!  After all, the $1.30 I collected under sofa cushions represented about a year’s worth of interest on a $100!

Can you believe some people actually throw money away? Don’t believe it? Check out the fifth article below.

The Frugal Roundup

7 Critical Ways You Need to Take Your Life Off Autopilot. Here is a great list of things that you should really focus on. (@ My Super-Charged Life)

Redbox Testing $2 Per Night Rentals. Redbox has started testing $2 per night rentals. Will you still rent from them with that type of increase? (@Your Money Relationship)

A Little Food Planning Goes a Long Way. It’s always a good idea to plan your meals ahead. You can save a ton of money and always have what you need. (@Million Dollar Journey)

Master Your Money with a Financial Health Day. When you have your financial health day, make sure you involve you spouse in the decision. (@ Get Rich Slowly)

Why Throw Money Away? Yeah, this person really throws money in the trash. Seriously. (@The Suns Financial Diary)

How to Become a Successful Secret Shopper and Supplement Your Income. Need some extra cash to beef up your budget? Become a secret shopper! (@Generation X Finance)

Best of the Rest

Apathetic Debtor

The following guest post is from Neal Frankle of Wealth Pilgrim. Wealth Pilgrim is on my short list of daily reads. After reading the post, head over to Neal’s site and sign up to receive his posts.

Several weeks ago a young couple visited my office. Their situation wasn’t all that unique.

He’s a teacher and she’s a CPA. Together they take home about $100,000 a year – not too shabby.

They had a little under $10,000 in credit card debt – mostly from their wedding. They also had a $20,000 car loan and $65,000 in student loans. Not the end of the world.

They had about $20,000 they saved since before they were married. I suggested they take $10,000 and get rid of the credit card debt pronto. They agreed to do this.

Up until this point of the story – I liked what I was hearing. After all, they are a young couple with plenty of upside income potential. I wasn’t crazy about the credit card debt they had accumulated but it only came about as a result of the wedding – not a slow creep of living beyond their means on a monthly basis. I wasn’t too concerned.

However, I started to sweat when we went through their monthly expenses.

While they were in deed paying down their debts, they had the option of doing so much faster and weren’t taking advantage of that opportunity.

Instead, they were spending $400 a month on personal trainers and a whopping $1200 a month on dinning out with friends. This $1600 was only the tip of the ice berg. Together we figured they could easily cut a total of $2500 off their monthly spending.

I showed them that once they did that, they’d be completely out of debt (including the student loans) in about 3 years. Then we looked at what their financial life would look like if they continued to save that $2500 a month. The picture looked very rosy.

So why was I sweating it?

Because they didn’t seem all that interested.

They came to me looking for a solution to their debt problems. I showed it to them and they shrugged. I just didn’t get the feeling they were willing to roll up their sleeves and really do the work.

Forgive me, but I think part of it has to do with their youth. They were enjoying life and maybe they figured they could always get out of debt and cut their spending “manyana”.

This was frustrating to me because I know that for many people, “manyana” never comes.

I couldn’t find the right words to get them interested in taking action to get out of debt and on the path to financial freedom.

Was there something I could have said? What would you have said in order to motivate this couple? Is it a case of leading a horse to water and therefore, a lost cause? What’s your take?

The Real Costs Of Depression

It is no secret, I’m sure, to long-time readers that I’ve been floundering a bit the last couple months. My full-time job has been getting the best of me lately, with several project deadlines looming around the end of the year. My Mom’s death in September has made focusing on anything besides grief difficult the last two months, though I have had to try to put one foot in front of the other and get back to a semi-normal routine. Because I am a glutton for punishment, we have also decided to move this month.

sadness111009
Sadness” by Eric Perrone

While all those factors have conspired to affect motivation in several areas of my life, what has really suffered is my writing. Thanks to a number of close blogging friends, I have had no shortage of guest posts to present here at Frugal Dad (Neal from WealthPilgrim.com is sharing another great one with us this Friday!) since they learned of my mom’s passing. These breaks in the action are welcomed, but I do feel a little guilty for not cranking out material at the pace I once did.

Just yesterday I missed my first Monday post in nearly two years of blogging. I wasn’t motivated to write. I had an incredibly busy weekend of packing and moving boxes, etc, and when I finally sat down late Sunday night at the keyboard there was nothing left. No witty budget concepts. No rants about self-reliance. No new reviews to tell you about. Had I finally run out of things to say?

Fortunately, not yet. I had simply run out of steam. I was losing focus, and not just with my writing. I am not sure if it is depression or just the normal grieving process, but after losing a parent (who also happened to be my best friend, besides my wife), you sort of go through a period of just going through the motions.

I wake up, eat a quick breakfast, kiss the wife and kids and drive to work. I check my email, my to-do list, keep busy, leave in the evenings, play with the kids a while, work on the blog and go to bed. But when I go to bed feeling completely exhausted I can’t recall the specifics of the day. Did I even ask my kids how their day was at dinner? Did I remember to send that status email on the big project at work? Did I remember to pay the utility bill online? And for just a moment, just a split second, I don’t even care. I just want to go to bed to put this day in the books and do it all again tomorrow.

The problem is when you find yourself in one of these funks the days just start to slide by. Life starts happening to you, instead of you being in control. The budget gets relaxed. Old, bad spending habits come to the forefront again. You stray from healthy eating and start refueling on crap from fast food restaurants and vending machines. You distance yourself from loved ones. And the worst part? When you are going through it, you aren’t even aware it is happening.

At some point you snap out of it; like a fog lifting in the middle of the morning. Things start to become meaningful again. It is at this point that you recognize the days have been sliding by, and you start grabbing for moments before they can get by you. Yes, I’ll be at my son’s next football game, and instead of watching alone at the fence down from the bleachers, I’ll be among the other fans cheering for our kids’ team. Yes, I will again be my former productive self at work. Yes, I will balance my checkbook and take a stab at a new budget for the next month. I will re-engage life.

This was really just a long way to say thanks for sticking around during this tough time. I have some exciting ideas for the blog in the coming months, including a few spring projects I think you will enjoy (mostly related to square foot gardening, living off the grid, etc.). I’m going to rededicate myself to getting back to my frugal roots over the next few weeks, and hopefully my writing will reflect that focus.

Finally, if you are reading this and feeling blue, or more than blue, I suggest you talk to someone. It doesn’t have to be a professional holding a psychology degree, though I would certainly recommend one if you are experiencing signs of depression. Go out to lunch with a close friend and open up about what you’ve been feeling. Sometimes it helps to simply get things off your chest, and let someone else know what you are going through. Whatever you do, don’t ignore the symptoms and let too many days slide by.

End 87 Percent of Problems at Work in 72 Hours

The following guest post is from Neal Frankle of Wealth Pilgrim. Wealth Pilgrim is on my short list of daily reads. After reading the post, head over to Neal’s site and sign up to receive his posts.

If you encounter personal conflicts at work – I think I may have stumbled upon a major contributing factor and how to solve most (or at least some) of these challenges.

Ready for the root cause of most of your work issues?  Here it is:

You (or the people you work with) forget why you go to work.

This may sound overly simplistic but let me share a story that will illustrate how powerful this really can be.

Tim, an old friend of mine has a long history of short stints at work. That frustrates me. He is a super-qualified, high-profile media guy.  He’s personable, intelligent and……can’t keep a job.

He’s been married for 2 years.  His wife Patti is working her tail off trying to keep them afloat and she’s just about had enough. She sees how qualified Tim is but thinks he gets himself fired (on purpose or subconsciously) because he’s lazy.  She doesn’t want another 40 years of this kind of life.  She’s threatened to leave if Tim doesn’t get it together.  If that wasn’t enough pressure, the couple is just about to lose their home to foreclosure.

You can imagine that Tim was really relieved two weeks ago when he got hired at one of the most prestigious media companies in the world.

I asked him how it was going when we spoke a few days ago. His answer knocked me out of my chair.

He told me that his boss made a slight “remark” and it really made Tim angry.  He was already complaining about his new boss and was “re-thinking” his decision to take the job.

Tim may have had a justifiable gripe but I didn’t think it mattered. I just couldn’t believe he was complaining.  Here he had an opportunity to work again – and the alternative was foreclosure and divorce.

It occurred to me that Tim was either completely insane or he was going to work for the wrong reasons.

I asked him to tell me why he goes work and this is what he came up with:

a.   To support his family.

b.   To be of service to the company he works for.

c.   To contribute to the world.

Intellectually…very nice.  But to me, his answer wasn’t complete.

I asked him if there were other reasons. He couldn’t come up with any so I suggested he also goes to work to be:

a.   Important

b.   Right

c.   Liked

d.   Looked up to

e.   Taken care of

f.    Powerful and strong

I gave him examples of how he sought out those payoffs time and time again.

For example, I asked why he reacted so strongly to the remark his boss made.

I suggested that it was because we wasn’t getting what he wanted – which was to be important, strong, looked up to etc..

If all he wanted to do was to take care of his family and contribute to his new firm and the world, he would have let that remark made by the employer roll off his back…right?

Tim takes what other people do and say personally – especially at his job.  As a result, work… doesn’t work.  That’s why he usually finds himself unemployed shortly after he lands a job.

I suggested that he has a real opportunity to turn this situation around once and for all.  If you struggle with the people at work, this exercise can help you too:

1.   Write down why you think you go to work.

Like Tim, this list probably includes paying your bills, taking care of your family, doing a good job for your employer, advancement etc.

2.   Write down all the social and psychological payoffs that you don’t want to admit to.

This is show time.  You have to be honest.  Part of the reason you go to work is because you have social and personal needs that have nothing to do with money.  Nothing wrong with that.

You probably want to enjoy yourself.  Why not?  You spend more of your waking time at work than any other place….right?  You want to be liked and respected…..who doesn’t?

In moderation, these are all just human needs and they won’t get you into trouble.  The real rough water starts when you want to be “important”.

This is something you may not want to admit to – I certainly don’t.  But if you find yourself at odds with others, it may be something you need to look at.

This is all about ego.  It has nothing to do with why you are really go to work.  If you allow your ego to call the shots at work – always looking for a way to be revered by your co-workers or employer, you’ll alienate everyone around you.  Just don’t be surprised when you don’t have a job.

Even if you are the smart one, it doesn’t matter.

If you go looking for worshipers at work, you’re going to tick people off.

You may not realize what you are doing but other people do.  Need proof?

When the guy in the next office is positioning….you see what he’s up to…right?

Well…guess what……he knows it when you are doing the same thing.

3.   Keep this list on your desk at all times.

You’re only human.  You aren’t perfect.  You have character flaws; everyone does.  Review this list often and it will help you remain aware and “awake”.

Don’t beat yourself up – but it’s time to put a leash on your ego.

When you catch yourself trying to flex your muscles for all the wrong reasons, call it out.  Laugh at yourself and tell your co-workers that your ego must have gotten the better of you – then get back on track.   Don’t have a 3-day seminar on the subject but don’t try to cover it up either.  If you make a mistake, be honest about it and then move on.  Believe me, the people you work with will be amazed and appreciate your honesty.

4.   Don’t expect the world to be perfect.

Believe it or not, not everyone is going to read this post.  Your boss might be a huge ego freak and you can’t change it.

Realize that it’s not about you.  If she’s looking for ego strokes and by so doing, puts you down, she probably does that to other people too.  Don’t take it personally.  I know that’s easy to say and hard to do.

If it gets to be too much, you’ll need to look for a different boss somehow.  I’ll leave that part to you.  Just don’t allow someone else to push your buttons if you can.

What make me such an expert on this subject?

I spent years trying to make sure everyone know how smart I was.  When I didn’t get what I wanted, I went ballistic.  I had to do a lot of work on myself in order to stop doing that.  I’m not perfect…but I do it considerably less now.

That old behavior cost me so much time, life and love. It almost cost me everything.

That’s why this is such a hot button for me.

I still blow it from time to time.  When I do, I try to call it out and move on.  When people at work try to prove how important they are, I just try to remember that I have the same character flaw and it helps me stay calm.

Pardon me.  After all the years I spent making this mistake, I just think it’s really dumb to struggle when you don’t have to. If you are clear about why you go to work and get back on track when you forget……..most of your work challenges will disappear.

How about you.  What do you think is the main cause of trouble at work? How does it impact you?  What have you done about it?

Weekly Roundup – Moving Edition

We are in the midst of the dreaded packing, sorting, selling, tossing phases of moving. Nothing reminds you of just how much stuff you have like the process of packing and moving. Fortunately, we don’t have far to go, so we have looked upon the move as a positive opportunity to simplify our household by clearing it of clutter.

Just yesterday we rounded up all our old clothes, jackets, etc. that we no longer wear and plan to give them away to shelters, and other charitable organizations in our area that may need them (there is particularly high demand in the winter months). I’d encourage you to go through your closets and find an old jacket, or set of blankets that you no longer use, and find someone who could use them. A good place to start is with churches, missions, shelters, and organizations such as The Red Cross and Salvation Army.

The Frugal Roundup

The Argument Against Frugality. Not on the frugality bandwagon yet? These reasons for not being frugal may change your mind. (@The Sun’s Financial Diary)

100 Goals. I came across this site the other week and thought it was pretty cool. It chronicles a guys attempt to complete 100 goals he has for his life. Check it out! (@Hundred Goals)

“What Works For You” Can Be a Trap. The personal finance theory of “do what works for you” comes into question. (@Consumerism Commentary)

Ditch Productivity For A Day: 12 Great Sites To Kill Time & Have Fun. Sometimes it’s OK to sit down and unwind. (@Dumb Little Man)

Avoid a Financial Holiday Hangover This Year. Great steps for avoiding the dreaded holiday credit card bills in January. (@Generation X Finance)

Best of the Rest