- Dora the Explorer is singing about cocaine. Is that why my kids have so much energy? #
- RT @prosperousfool: Be the Friendly Financial “Stop” Sign http://bit.ly/67NZFH #
- RT @tferriss: Aldous Huxley’s ‘Brave New World’ in a one-page cartoon: http://su.pr/2PAuup #
- RT @BSimple: Shallow men believe in Luck, Strong men believe in cause and effect. Ralph Waldo Emerson #
- 5am finally pays off. 800 word post finished. Reading to the kids has been more consistent,too. Not req’ing bedtime, just reading daily. #
- Titty Mouse and Tatty Mouse: morbid story from my childhood. Still enthralling. #
- RT @MoneyCrashers: Money Crashers 2010 New Year Giveaway Bash – $7,400 in Cash and Amazing Prizes http://bt.io/DDPy #
- [Read more…] about Twitter Weekly Updates for 2010-01-16
Personal Finance, Canine-Style
No matter how many excellent books you read, or how many experts you consult, sometimes the best advice comes from beast out fertilizing my yard. My dog is pretty smart. At middle-age, she’s got no debt, no stress, and no possibility of being fired. I asked her what her secrets are, and she gave me 5 rules for managing her finances.
- Sniff around. You never know when or where an opportunity will present itself. Keep your eyes open and look in some unusual places and you may just find the golden opportunity you’ve been waiting for. Jacob and Susan D’Aniello have a multi-million dollar franchise called DoodyCall. They have turned themselves into millionaires, starting with a shovel, a leash, and a plastic bag. Never be afraid to look your future in the eye.
- Don’t be afraid to sniff a butt. It’s important to know who you are dealing with, especially when your are making life-changing or expensive decisions. If it doesn’t smell right, bare your teeth and back off. Seriously, in most situations, you can trust your gut instinct. Especially if that instinct is telling you to run away. Read everything you sign. If you don’t understand it, find someone who does. Know what you are getting into at all times. Get referrals. Call the Better Business Bureau. You are in charge of protecting your own interests.
- Lick your own butt. Watching your emergency fund grow is nice, but not everything is. There are some aspects of personal finance that are downright unpleasant, but ignoring them is worse. You can’t ignore an upside-down budget forever, or it will never get fixed. Sometimes you just have to grit your teeth and do what needs to be done, no matter how distasteful. But keep the mouthwash handy.
- Bury a bone. Minds out of the gutter, please. Save for the lean times. You may have two bones today, but what about tomorrow, or next week? What if the bone-fairy never comes to visit again? Make your surplus last, because you never know when life will whack you with a newspaper. If you don’t have an emergency fund, start one. Today. Now. Go set up an automatic transfer of $10 per week. Now. If you don’t have an emergency fund, everything is an emergency.
- Wag your tail. Don’t be afraid to enjoy the good things. When you make progress on your debt, congratulate yourself. Take credit and take pride in what you’ve accomplished. It’s more important to be happy than rich, so don’t obsess over the little things, or the material things. Enjoy your family, enjoy your job(or find a job you can enjoy), enjoy your life.
Maybe I shouldn’t write while watching my dog poop at 5AM.
Update: This post has been included in Festival of Frugality.
My Net Worth
I last did a net worth update in August. I don’t worry much about tracking my net worth, but I’d like to know where I sit at the beginning of the year. If I’m going to track it, I’m going to share it.
This is where I was sitting in August:
Assets
- House: $252,900
- Cars: $19,740
- Checking accounts: $1,342
- Savings accounts: $5,481 I
- CDs: $1,101
- IRAs: $10,838
- Total: $291,402
Liabilities
- Mortgage: $31,118
- Car loan: $0. Woo!
- Credit card: $20,967
- Total: $52,085
Overall: $239,317
Here is my current status:
Assets
- House: $252,900 (-0) Estimated market value according to the county tax assessor. This will be going down in a few months when the estimates are finalized for the year. It hasn’t gone down, yet, so I’m not counting the change, yet.
- Cars: $20,789 (+1049) Kelly Blue Book suggested retail value for both of our vehicles and my motorcycle. Wee! Value went up on things I intend to drive into the ground!
- Checking accounts: $3,220 (+1,878) I have accounts spread across three banks. I don’t keep much operating cash here, so this fluctuates based on how far away my next paycheck is.
- Savings accounts: $6,254 (+773) I have savings accounts spread across a few banks. This does not include my kids’ accounts, even though they are in my name. This includes every savings goal I have at the moment.
- CDs: $1,105 (+4) I consider this a part of my emergency fund.
- IRAs: $12,001 (+1,163)
- Investment Accounts: $1,155 (+1155) Occasionally, I run across some stocks that can’t possibly go down. I’ve only been wrong once on this front, but I never risk an amount that would be painful to lose.
- Total: $297,424 (+6022)
Liabilities
- Mortgage: $29,982 (-1136)
- Car loan: $0.
- Credit card: $18,725 (-2242) This is the current target of my debt snowball. This has actually grown a bit over the last week. I did a balance transfer that cost $400, but it gives me 0% for a year, versus the 9% I was paying. That will pay for itself in 3 months, while simplifying my payments a bit and saving me almost a thousand dollars in payments this year.
- Total: $48,707 (-3378)
Overall: $249,717 (+9400)
2011 Totals
- Assets: $297,424 (-1441)
- Liabilities: $48,707 (-10021)
- Overall: $249,717 (+9580)
I had two goals in August: Get an IRA rolling and save an extra $2500.
The IRAs I have are just sitting. I haven’t done anything to boost them, in any way, so hurray for the free $1163!
My savings have only grown my $773, but the $1000 I put in the investment account 3 weeks ago came from my car fund, so it would have been a growth of $1773, which isn’t bad at all.
I would still like to kill that credit card debt by August, which I think is doable. My crazy goal is to get rid of it by the end of May.
On 4/15/2009, I had $90,395 in debt. Today, it’s $48,707, so I’ve paid down $41,688 in just under three years, for an average of $1263 per month. That average is down $92 over the last few months. I blame our insane Christmas.
Overall, we had a good year. Paying off my car loan while paying down $4800 in credit card debt feels good. Now, I need to make 2012 better.
Mastermind – The Best Personality Type
A few of the best personal finance blogs have decided to post on a theme. It’s a personality type blog carnival.
After taking the Jung Typology Test, I discovered that I am an INTJ; a Rational Mastermind. Specifically I am I(78%) N(12%) T(75%) J(44%).
What does that mean, you ask?
It means that I am rare. Fewer than 3% of the population has my personality type, which is Introvert iNtuition Thinking Judgement, but the intuition is close to Sensing, making me almost an ISTJ, or a Guardian Inspector.
From Wikipedia:
- I – Introversion preferred to extraversion: INTJs tend to be quiet and reserved. They generally prefer interacting with a few close friends rather than a wide circle of acquaintances, and they expend energy in social situations (whereas extraverts gain energy).
- N – Intuition preferred to sensing: INTJs tend to be more abstract than concrete. They focus their attention on the big picture rather than the details and on future possibilities rather than immediate realities.
- T – Thinking preferred to feeling: INTJs tend to value objective criteria above personal preference. When making decisions they generally give more weight to logic than to social considerations.
- J – Judgment preferred to perception: INTJs tend to plan their activities and make decisions early. They derive a sense of control through predictability, which to perceptive types may seem limiting.
- S – Sensing preferred to intuition: ISTJs tend to be more concrete than abstract. They focus their attention on the details rather than the big picture, and on immediate realities rather than future possibilities.
To summarize the personality of a mastermind: We are big-picture planners. We see patterns other people miss and use that to solve complex puzzles and problems. It’s not possible to follow a thought through the head of a mastermind, because thinking comes with a ton of free association. We may be watching an episode of Spongebob, and something Patrick does will trigger a domino-effect of seemingly unrelated thoughts that will lead a conclusion, out of nowhere. Often, we aren’t aware of the process.
We don’t do crowds, at least, not often. Good conversation with good friends is better than a party full of people we barely know. Crowds are draining. A quiet night at home is a good night, but that’s not saying we-re shy. We just don’t enjoy keeping up with small talk and polite chatter. Get us on a topic we’re passionate about and you won’t shut us up. Get us in a group of people we care about, and we can be the life of the party.
As a group, we are ambitious and deliberate. We are capable of making firm decisions, confidently. Confidence is one of the hallmarks of a mastermind, but one I don’t have to the normal extreme.
We are obsessive focused. When we get set on a problem, we focus in a way that leaves other people stupefied. Time goes away. The rest of the world fades. You may have to shout to get our attention. Sometimes, our minds will drift in the middle of a conversation, and we’ll lose track of who’s saying what. It’s rude, but that doesn’t change the way we are wired.
We don’t do emotion. We are rational and get frustrated with people who make decisions based on emotion. This makes it hard to connect with others, but that’s okay, because it’s better to have a few extremely close friends than a crowd of mere acquaintances. Unfortunately, this can make relationships difficult, too. The benefit to dating or marrying an INTJ is that we carry our focus into relationships. We take our relationships seriously.
We are inwardly-focused, so we spend quite a bit of time examining ourselves. This can lead to a long series of self-improvement projects, but none get taken on as a mere fad. They are planned and dissected before even being mentioned to others, let alone undertaken.
We take criticism well, but if you can’t back up the critique with facts and reasoning, don’t bother. Rational, remember?
We are driven by a need to understand. Once we understand, a given project or line of thought may be abandoned. Until we understand, very little can shake our focus.
Self-promotion is difficult, since we don’t get into the heads of others well. They should be able to see the obvious benefits without being told, right?
Now, to cross a bit of the ISTJ into the mix.
An Inspector is duty bound and loyal, to an extreme. They are dependable workhorses. Under stress, they can get stuck on the things that could go wrong, which would explain why I miss out on the confidence brought by being a mastermind.
To summarize me:
- I am a planner.
- I am extremely focused, to the point of obsession.
- I am driven to learn new things, constantly. Few of those things are incorporated into my life, long-term.
- I don’t cheat. Taxes, games, relationships, etc.
- I am intensely loyal, but to very few people or causes. I don’t end relationships quickly or easily. That said, when it’s time for them to be over, I can break it off with little regret.
Security, improvement, planning, learning, thinking, loyalty, honesty, integrity.
That sounds about right.
Now you know a bit about how I tick. What’s your personality type?
What D&D Taught Me About Finance
I admit it: I’m a geek. I’m not a hobby geek who only geeks on the weekends. I’m a full-fledged, licensed and certified geek. I am a geek about so many wondrous things that it’s hard to list them all. My wife knows, my kids know. It’s not much of a secret. One of my many geek qualifications is my sordid history of gaming. Role-playing, tabletop only. If that’s gibberish, it’s okay. Nobody needs to understand my geekitude but me.

I started playing Dungeons and Dragons more than 15 years ago. There were no live chickens or human sacrifice. Just a small group of geeks, proto-geeks, pseudo-geeks, and the occasional nerd playing DnD in a poorly lit room for several hours. We laughed, we cried, we fought evil, saved the world, and raised the stock price of an assortment of caffeinated beverage companies.
As the man said, I told you that, so I could tell you this:
DnD taught me many things. It taught me THAC0 calculation, dice-identification, and the fact that no woman, anywhere, considers tabletop roleplaying to be an alpha-male trait. “I’m a level 73 kinder warrior-mage-thief” is not a pickup line anywhere in the world, even Gen-Con. Remember that. Also remember, the singular of dice is die. If your are talking about one, it’s a die. Get it wrong and I will throw a bag full of dice at you and make you dig out the purple, sparkles-like-a-vampire, 27-sided die from among the hundreds of other dice.
DnD also taught me some surprising things about the world of personal finance, which is not a part of a planar campaign.
All the best toys cost too much. At the current exchange rate of 10 silver pieces(sp) to 1 gold piece(gp), potions of extra healing will drive you into debtor’s prison. Just as a sword of extra-slaying +10 will cost you everything you earned raiding that castle for the last 6 Wednesday evenings, so will a big screen TV set you back a full month’s salary. Don’t risk your life or sell your life’s energy for something fleeting, just because it’s “the best” or the newest gadget, geegaw, or artifact.

Never sell your soul for a castle or a horse. When the Baatezu come to offer you a “no money down, 0% for a year, all-expenses-paid, surrender-your-first-born” deal for a castle or the prettiest horse in the park, take a cue from the former First Lady. Just say no. Spending money today that you have to pay for tomorrow is almost always a bad idea. Don’t spend your soul, spend your savings. Don’t buy something until you can afford it. A Lexus or an Arabian, a mansion or a rambler. Are any of them worth auctioning your future?
Your armor isn’t stronger just because it’s shiny. A suit of Full-Plate of Protection-From-the-Charms-of-Bar-Wenches +5 may look pretty, but it’s not going to help against the orcs, kobolds, or trolls unless, of course, they are wearing skirts and sitting on a bar-stool above a sawdust-covered floor. Does the shiny new iPod really provide a benefit, or is it just a shiny gadget to woo the ladies?
A good sword is necessary to keep your stuff. This is a not a call to self-defense, or mugger, err, orc-slaying–though why that’s ever viewed as a negative is beyond me. You need to be aggressive in defending your loot. Call your credit card companies and demand they turn over the booty, err, lower your rates. Tell your friends to step away from the Diamond Ray of Disappearance, err, expensive outings or you will chop off their heads, err…no wait, that one can stay. I think my friends may be scared of me.
[ad name=”inlineleft”]The promised reward for completing an adventure isn’t the only way to make money. Sure, the local duke(your boss), may be willing to pay you a chest of gems(your salary) for defending the town from the ravages of the Tarrasque(your job), but that isn’t the only way to make money. You could do your job, collect your pay, and go home at night, but why? Don’t forget to pick up the loot along the way. If you spot the shiny penny, grab it, whether it’s abandoned gold, a new idea for a niche-blog, or a chance to turn your leisure hobbies into money. There are thousands of ways to make money outside of your day job. Every one will help your bottom line.
It takes cunning to slay the dragon. When tackling your debt(dragon), wading in swinging your sword may be emotionally satisfying, in the short term, but long term, it’s just a painful method of reminding yourself that you are crunchy and taste good with ketchup. Make plans. Have a strategy. Come out a winner. Then, sit down for beer and dragon steak. Goal-less, plan-less attacks fail in the long-term.
Update: This post has been included in the Carnival of Personal Finance.
Swamp Finance
I wrote this post was as a guest post a year ago, to answer the question, “What is the best financial advice or tool you have found or been given?”
Once upon a time, there was a young man–an arrogant man barely out of childhood–who thought he new more than anyone he had ever known, trusted, or respected. In his arrogance, he left his family and friends behind to enter the wilderness in search of a long lost teacher.
He found the teacher. He even managed to convince the teacher to accept him as his pupil.
However, he didn’t change his ways. He insolently ignored the fundamental lessons, assuming he already understood them. When he was rebuked by his teacher, his only defense was to whine that he was “trying”.
“Do or do not. There is no ‘try’,” replied Yoda.
These words of wisdom represent one of the most fundamental rules of personal finance, or even life, itself. If the best you have to offer is a half-hearted “try”, you will never succeed.
When my wife and I decided that it was time for our debt to die the death of a sad specter of self-loathing hiding in a cave, we went at it with a relish that would have launched a poor astromech droid to the freakin’ moon!
We never said we’d give it a shot for a month and see how it went. We knew that we either needed to succeed or we’d have to file bankruptcy. We didn’t try, we did it. Rather, we are doing it. Friends told us it was impossible to live without credit; that we were foolish to try. They were right, so we didn’t try.
Similarly, when it was time to get started on a college fund instead of hanging our hopes on scholarships, we just did it. Sure, we started the fund with just $10, and it is only growing by $10 per month, but it’s there and it’s growing. When we get our debt paid off, we’ll see exactly how close we can get to giving our kids a self-funded full ride to college.
When it comes time to get the things done that you know need to be done, the trick is to do it. Don’t make excuses. Don’t “try” to find time. Just make it happen. Cut up your credit cards, make your budget, or sell the stuff you don’t need. Whatever it is, do it.
There is no try. There is only DO!