Please email me at:
![Jason [at] LiveRealNow [dot] net](https://liverealnow.net/wp-content/uploads/2010/11/email.jpg "Jason [at] LiveRealNow [dot] net"){kind=small}
Or use the form below.
[contact-form 1 “Contact form 1”]
Budget Lesson, Part 1
budget” width=”300″ height=”185″ />Over the next few weeks, I will be going over my budget in detail.
The first section is income, but that’s straightforward. A line for each income source, bi-weekly, monthly and annual totals. Simple.
Before we start, a word on the organization. There are five columns:
- Category – This is the description of the line item.
- Cost – How much do you pay for this item?
- Time – What is the frequency of the payment? Valid values are ‘m’, ‘q’, ‘y’, ‘w’ for ‘Monthly’, ‘Quarterly’, ‘Yearly’ and ‘Weekly’.
- Monthly – Cost and Time are combined to calculate the monthly expense, to make it possibly to budget. If this is $100, I need to set aside a C-Note each and every month to make the payment when it comes due.
- Yearly – This column is mostly informative. It’s helpful to see this in comparison to my annual pay.
The first section I am actually going to address is discretionary spending.
- Groceries/Dining $475.00 – We don’t budget heavily for groceries, which would be a surprise if you saw me. At the smallest I have ever been, fit, I was never small. We shop smart, buy in bulk when it makes sense, and rarely eat out. We also keep cooked rice and beans in containers in the refrigerator as a cheap and healthy way to stretch almost everything we eat.
- Discretionary $250.00 – This gets used for household items, like toilet paper and soap. It also get used for the odd book or movie, or to cover the gaps between the other categories and reality.
- Baby stuff $60.00 – We have two children in diapers. ‘Nuff said. This category does get progressively smaller as the baby items are outgrown and the children get potty-trained.
- Gas/oil $200.00 – Gas and auto-maintenance. This is actually higher than monthly costs, allowing us to set some aside for larger maintenance issues.
- Clothes $15.00 – All of our dressers are overflowing, so this is strictly replacement cost for the time being. Our kids wear a lot of hand-me-downs.
- Blow Money $50.00 – Occasionally, habitual shoppers need to shop. If they don’t do it on-budget, they will do it off-budget and kill the whole idea.
Initially, we used a “virtual envelope” system. We had a spreadsheet and every time something was spent in this category, we entered the amount and stopped when the category was spent. Didn’t work. We are going on a pure, cash-only system as of the first of the year. No money, no spendy.
Budget Lesson, Part 6
It’s been a month since I’ve written a post for the budget series, so I’ll be continuing that today. See these posts for the history of this series.
This time, I’ll be reviewing my non-monthly bills. These are the bills that have to be paid, but aren’t due on a monthly basis. Some are annual, some are quarterly.
- School Lunch – This could be cut by sending a bag lunch. We pay about $1.25 per day for school lunch. At that price, I don’t think I can beat the nutrition, let alone the convenience of the meal. We pay this whenever the account gets below $10.
- Property Taxes – We pay this semi-annually. This bill goes up every year due to the ****** ***-******* ******-******* who don’t care about their constituents making ends meet. ******* ***** ******* *******. Huh. Who knew WordPress came with a censor? I could move, but I’d have to get out of commuting distance to get this down much.
- Life insurance – I’ve got two quarterly life insurance policies. I can’t get these much cheaper, but I should be able to next year. The questions asked if I’ve smoked in the last three years, and that will be up on Halloween.
- AAA – It’s only been recently that I’ve owned vehicles reliable enough to avoid paying my AAA dues for me. I could cancel this, but for $80 per year, the hotel discounts make it a wash. One vacation per year comes close to making the difference.
- Vehicle Registration – The only way to cut this would be to get rid of a vehicle. I don’t think that’s possible for us. We work in opposite directions and, for at least one quarter per year, spend too much time chasing around for activities.
- Daycare – We’ve been using our current daycare provider since my oldest(10) was one. When my youngest turns 2 in June, our costs will go down. Without one of us quitting our job, this bill can only go down as the kids grow up.
- City Bill – This bill combines our garbage, water, and sewer. With three adults, three kids, and 5 animals in the house, reducing our garbage level is difficult. We do try to manage our water usage in the summer, to keep that down.
- Web host – I have a few domain names and a hosting package to handle my side hustles and miscellaneous projects. This is a deductible expense. I have been allowing my domain names to expire if the project isn’t being actively pursued.
- Memberships – I have annual dues to two organizations. I’m making payments on lifetime memberships, so these will be going away in about 18 months.
Reviewing this list, there doesn’t seem to be too much I can cut and accomplish any meaningful savings. Am I missing something?
Dealing With the Police 101
Last night, a friend called me up and asked me to accompany him to the police station. The police had knocked on his door, waking up his girlfriend while he was out. When he called, they wouldn’t tell him why they wanted to talk to him. Was it an ex trying to make his life difficult or one of his employees getting investigated?
This friend has had a number of interactions with the police, but never learned how to deal with them. Before we left, I gave him a crash course in “stay out of jail”.
Lesson 1: The Police Are Not Your Friends.
During an investigation, you are a suspect. They are looking for a conviction. There may be a “good cop” trying to “help you out”, but he is trying to put you in jail. “Protect and Serve” doesn’t mean you. In general, it means society as a whole. During an investigation, they are serving the interests of the prosecutor.
Generally, they are going to look at you–as the target of their investigation–as the enemy. This is normal. They spend all of their time dealing with scumbags and s***heads. Naturally, they start to assume that everyone who isn’t a cop will fall into one of those categories.
Don’t get pissed when they act rude, ignore you, or anything else. It isn’t a lack of professionalism, it’s just a different profession. They are using interrogation techniques that have been proven successful. Ignore it and focus on Lesson 2.
It will feel wrong to disobey the authority you’ve been taught your entire life to obey. You’re not. You are standing by your rights. Nobody cares about your future more than you do. Certainly not the guy investigating you.
Lesson 2: Your Lawyer is Your Friend.
The second a police interaction starts to look like they are investigating you, demand your lawyer, then see Lesson 4. When you demand an attorney, they stop asking you questions. You can take it back and start talking, so again, see Lesson 4. It’s your attorney’s job to talk to the police and, if necessary, the media. It’s your job to talk to your attorney.
You don’t need an attorney ahead of time. Criminal defense attorneys are used to getting calls at 3AM. It’s part of their job. If you have a low enough income as defined by whatever jurisdiction you are being investigated in, you can get a public defender. That’s better than nothing, but I’d prefer to hire a professional shark, even if it means mortgaging my future. Prison is a big gamble.
Lesson 3. Consent is Your Enemy.
The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.
“Officer, I do not consent to any search and I would like to speak to my attorney.” Remember this. Memorize it.
They need probable cause, a warrant, or permission to search your stuff. Never agree to it. Don’t stop them if they search anyway, but never, ever agree to a search. If the search is done improperly, your lawyer(see Lesson 2) will get the results of that searched thrown out.
It isn’t possible to get into more trouble for standing by your rights. There is no crime on the books anywhere in the US called “Refused Consent to Search”. Your day will not go worse because you defended your Constitutional rights.
Lesson 4. Shut Up.
I know a few defense attorneys. According to them, most of the people in jail either committed a crime in front of a bunch of witnesses, or they talked their way into jail. Shut up. You’ll want to either justify or defend yourself depending on the circumstances. Don’t. Shut up. It may be one of the hardest things you ever do, but keep your mouth closed. The only thing worse than talking is lying. Don’t lie, just keep quiet.
There is nothing you are going to say that will make your interrogator invite you home for Christmas. He isn’t your friend, you won’t meet his parents, you aren’t going to his birthday party. There is absolutely no win in talking to him. Shut up. The answer to every question is “Lawyer.” If the only thing you say babble is “Lawyerlawyerlawyerlawyerlawyerlawyer”, you’re probably not going to do too badly.
In your car, the dynamic changes a bit, but the principles don’t. When a cop pulls you over, don’t argue. You can’t win an argument with a cop on the side of the road. Be nice, be polite, and as soon as possible, pull into a parking lot and take as many notes about the encounter as you can. If you are planning to fight whatever he pulled you over for, don’t give him any reason to remember you or spin his official report to make you look bad. Again, shut up. Catching a theme?
Gambling With Your Future
If you are being investigated by the police, your future–or some part of it–is on the line. While you are gambling with your criminal record and your freedom, don’t forget that you are an amateur in this arena. The police, the prosecutor, and your attorney are the professionals and the stakes can be huge. Keep your mouth shut, call your attorney, and thank me later.
FINCON13 After Action Report
I spent most of last week at the Financial Blogger Conference, or FINCON.
First, since this is a personal finance blog, here is what it cost:
Hotel: $695.75 – I paid $119 per night, plus taxes and fees. The travel rewards on my credit card will be making this go away.
Airfare: $211.80 – I bought early and live next to a Delta hub airport. This will also be getting erased by my credit card rewards.
Ticket: $175.84 – I got a $25 discount for being a repeat attendee and I paid an extra $99 for the Bootcamp extension, which was 2 extra days that–alone–made the whole trip worthwhile.
Food: $203.53 – This includes a $90 splurge meal at Ruth’s Chris, which I was looking forward to for months before the conference.
Other – $113 – I brought $183 in cash with me. This was used for some meals not included above, cab fare, and tips for bartenders, housekeeping, and the concierge. I always tip a bartender, even if it’s an open bar. It guarantees fast service and full-strength drinks all night.
Total cost: $1399.92
Total after credit card reimbursement: $492.37
Now for the important part: Was it worth it?
Yes.
The Bootcamp was a fantastic time to meet–and actually get to know–other bloggers. There were only 50 of us, instead of 500 at the main event, so we were able to break into small groups and brainstorm useful projects and activities. I learned more about podcasting than I ever had before and I got a chance to share some of what I know about SEO and managing virtual assistants. In the larger sessions, questions are rushed and people are shy.
I got to beat up on my comfort zones.
I presented some awards with Crystal at the Plutus Awards ceremony, which means cracking jokes about Canadians in front of 500 people who don’t know me. I regularly stand and teach 30-50 people, but that’s always a warm crowd on a topic I know extremely well. This was new for me.
I sang anatomically explicit songs to strangers during the Bootcamp karaoke night. Selections were from Monty Python, DaVinci’s Notebook, and Denis Leary.
I was on a panel, by surprise. I was asked to be available if I were needed for questions, then got dragged to the front of the room for the entire session. I would do that again.
That’s 3 things that were all well outside of my comfort zone, but I’m happy I did them. I don’t believe in not doing something simply because I’m afraid to do it.
Random gatherings are fun.
From people stopping by our staked-out territory in the lobby, to a surprise game of Cards Against Humanity in the lobby bar with Joe and Len to having a discussion about the meaning of “No” when you’ve got a pre-determined safeword, it was a good week.
The last 5 days were easily the most extroverted days I’ve ever had. Since I didn’t force myself into any large groups for long periods of time, I never felt drained like I often do in similar situations. It’s good to find a balance that let’s me meet and connect with other without exhausting myself. I am seriously an off-the-charts introvert, even if I’m not even a little bit shy.
FINCON was totally worth it. I was excited to go, and I’m excited to start acting on what I’ve learned, including being a part of a new mastermind group, with the awesomest lounge lizards in the PF world.
Avoiding Financial Traps & Saving Money on Big-Ticket Purchases
This is a guest post written by Jason Larkins. He writes at WorkSaveLive – a blog he started to help people change the way they think about their finances, careers, and lives.
Who doesn’t like to buy stuff?
Okay…I’m sure there are a few of you out there that take pride in never buying a new “toy,” but I know personally that I LOVE stuff!
Not to the point that I make dumb financial decisions that jeopardizes my family’s financial well-being, but I do have that natural American desire to have nice things and to be able to do fun stuff!
If you’re in the market to buy a Big-Ticket item (i.e. a new car, TV, or other technology gadget), what are some of the things you should be thinking through as you contemplate making the purchase?
The first mistake people make is buying on impulse. The massive majority of Americans don’t even have a thought process when it comes to buying toys, so that’s why I decided to dedicate a post on a few things you should ponder.
3 Financial Traps You Should Avoid
1. Avoid spending extra for add-ons, or features, that you’re never going to use.
It is easy to get an appliance or technology gadget that has a ton of amazing features on it – but why pay for them if you won’t use them?
Consider buying the item that may be a step below what you’re looking at.
I know that I personally love the thought of having an Ipad 2, but am I really going to utilize it to it’s full capabilities?
Probably not!
It doesn’t mean I shouldn’t have one, but it does mean I can look at the older Ipad and save some money. Or, I can avoid the purchase altogether if I don’t think it’s going to be worth the money.
2. Be cautious with offers such as “no money down,” “90 days same as cash,” or “12 months interest free.”
Nearly 88% of the “90 days same as cash” offers are actually converted to payments because the purchaser couldn’t pay off the bill before the offer was up.
3. Don’t buy it just because it’s the cheapest.
Always be sure to do research prior to your purchase – check consumer reviews and product reviews. Saving money may not be worth it if the product breaks down quickly or doesn’t have the functionality that you’re looking for.
3 Strategies to Save Money
1. Prepare for large purchases and pay cash for them.
If you can’t pay cash for the item, then there is a good chance that you can’t afford it.
Determine how much money you will need to spend on a particular item and save up for it! This is going to help you in a couple of ways:
- It will help you avoid buying on impulse.
- If it takes awhile to save up for the item, then this will give you valuable time to really determine if it’s something you WANT badly enough to pay that kind of cash for it.
- It will allow you to ask for a DEAL. Every retailer pays a fee to run a debit/credit card. If you’re paying in cash the worst you can do is to ask for that 2-3% discount the store would be saving!
2. Buy at the end of the month, or at the end of the year!
Consumers rarely think of this, but it’s important for you to know that every store (and store manager) has monthly/yearly sales to report.
If they’re wanting to close out the month/year strong, they’re much more inclined to offer you a deal on whatever you’re buying!
3. Avoid the extended warranty!
Insurance (in general terms) is the act of transferring risk – the more people that pool money together to help mitigate risk (buy insurance), then the lower the cost of the insurance becomes.
The reason to avoid the extended warranties is because the cost you’re paying to cover your item also includes: commissions paid to the retail store, overhead for the insurance company (wages for employees, building costs, utilities, etc), and some profit for the insurance company as well.
Sure, you may be in the miniscule percentage of buyers that has their item break down on them, but the reality is that it’s unlikely.
If it was likely for your item to break down, then the insurance wouldn’t be available because it wouldn’t be a profitable endeavor for the insurance company (and they’d be out of business).
Whenever you’re buying something that has a large price tag, you should develop a process that you think through before buying it!
Always pay in cash, get a deal, and make sure you actually need everything you’re paying for.
