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Mortgage Race, Part 2

As I mentioned last month, Crystal and I are in a race to pay off our mortgages. The loser(henceforth known as “Crystal”) has to visit the winner. Now, since–judging by the temperature–Crystal lives in Hell, I think it would be good for her to visit in the winter. There something about the idea of going ice fishing, staring at a hole in the ice while sitting on a 5 gallon bucket, cursing the day I was born.

Today, she threw down the gauntlet again. She has apparently decided that, since her prerequisites are met, she’s going to win. Sure, she’s closed on her house and built her savings back up to $20000, but it doesn’t matter. I’ve sent a small army of arson-ninjas to keep her from getting ahead. They are so small, they can only carry tiny matches and single drops of gasoline, so the damage they can do is tiny, but it will add up. Just a word of advice: if you hire an army of arson-ninjas, go for the upsell and get ninjas that are at least 2 feet tall. Anything less is just inefficient.

When I announced the race last month, my mortgage balance was $26,266.40. Today, it is $25,382.53. In three days, there will be another $880 applied to the principal.

In February, our renters will move in and we’ll conservatively have another $650 to pay. When that starts, our balance should be around $23,000. Adding a portion of the rent payment should mean we pay off the house in May 2014. However, when I bring in our side hustle money, that will bring us back to September 2013.

Crystal’s projected payoff is July 2013, so I’ll have to hustle.

Net Worth Update

Misc

Welcome to the New Year. 2013 is the year we all get flying cars, right?

Here is my net worth update, along with the progress we made over the course of 2012.

As you can see, our net worth contracted by about $11,000. Part of that difference is due to selling our spare cars and–against my better judgement–taking payments with a lien on one of them. That is supposed to be paid off within a couple of months. If not, I’ll play repo man again.

The other part of the difference is in the final preparations for our rental property. The only things left to do are sanding and polishing the hardwood floors and cleaning the living room carpet. The final push to get to this point cost some money. All told, we’re nearly $30,000 into getting the house ready to rent. For the naysayers who think we should have sold it, we would have spent more getting it ready to sell.

Other than that, we’re not doing poorly. Our credit card is still being paid off every month and our mortgage is shrinking. If things continue to go well, we’ll have our truck paid off in a couple of months and the mortgage by mid summer.

I’m the Bad Guy

Finance, Life, Relationships

My wife and daughters are active in a saddle club, even though we don’t own any horses. We’ve been borrowing them for shows when my girls compete.

My wife’s cousin has been trying to sell one of her horses for a few months. Because this horse has alpha-male problems, it has to be kept in a stall. Stall boarding runs $450 per month as opposed to $200 in a group paddock.

Since my girls love this horse, Cousin continually tries to convince my wife to buy it.

My wife’s response is “Jason won’t let me buy a horse, yet.” Then all of her friends get to complain about how I’m not supportive.

Uhhh, no.

We are $10,000 away from paying off truck. We’re $23,000 away from being mortgage-free. After that, we’re planning to rent out the house we’re in and buy a hobby farm.

Yes, Mr. Unsupportive is planning to uproot everything and move to the country so my wife and daughters can have horses on site.

Shame on me. I’m such a jerk.

In a couple of years, I want to buy a $450,000 spread on about a dozen acres and let my wife’s dreams come true.

Or, we could buy a couple of horses now and never have the money for a down payment.

Or, we could buy the farm now, buy the horses now, spend every last cent of our savings on a down payment, spend more than half of our income on our mortgage payment, never get ahead, and end up losing everything.

Such a jerk.

This is a case where we have to do everything in the right order, or it will all come tumbling down on our heads in a few years. If I have to be the bad guy to avoid screwing ourselves later, so be it.

How come my back hurts?

Business, Finance, Relationships

My favorite book series is the Sword of Truth by Terry Goodkind. It’s a good sword-and-sorcery, good-versus-evil fantasy.

But I’m not here to talk about that series. Rather, I’m going to talk about one particular scene in book 6, Faith of the Fallen.

There’s a scene where Richard, the protagonist, ends up in a socialist workers’ paradise, where the government controls distribution and everybody is starving. Jobs are hard to come by, because everything is unionized and unions control access to work. That’s a non-accidental parallel to every country that has embrace socialist principles, or even leans that way. Go open a business with employees in France, I dare you.

So Richard goes out of his way to help someone with no expectation of reward. This person then offers to vouch for him at the union meeting, effectively offering him a job.

This is the conversation that follows:

Nicci shook her head in disgust. “Ordinary people don’t have your luck, Richard. Ordinary people suffer and struggle while your luck gets you into a job.”

“If it was luck,” Richard asked, “then how come my back hurts?”

If it was luck, how come my back hurts?

Seneca, a 2000-year-dead Roman philosopher said, “Luck is where the crossroads of opportunity and preparation meet.”

I won’t lie, I’ve got a pretty cushy job. I make decent money, I work from home, I love my company’s mission, and I kind of fell into the job.

By fell into, I mean:

I started teaching myself to program computers when I was 7.
I worked in a collection agency collecting on defaulted student loans to put myself through college while I had a baby at home.
When I graduated, I went out of my way to help anyone I could, which positioned me for a promotion, getting my first programming job. The first one is the hardest.
I spent 3 years studying the online marketing aspects of what I’m doing, with no promise of a payoff.
I launched a side business in the same industry as the company I work for.
I built a relationship with an author to include his books in the classes I teach. He happened to move to the company I’m with.
I offered advice–for free, on a regular basis–on certain aspects of his business and his responsibilities with this company.
He offered me a job.

That’s 25 years and tens of thousands of dollars spent earning my luck. How come my back hurts?

I have a friend on disability. He has a couple of partially-shattered vertebrae in his back, but he keeps pushing off the corrective surgery because the payments would stop after he heals. He refuses to get a regular job, because his payments would stop. He lives on $400 per month and whatever he can hustle for cash, and he will make just that until the day he dies. And he complains about his bad luck.

His back literally hurts, but not metaphorically. His bad luck is the product of deliberately holding himself down to keep that free check flowing.

I have another friend who made some bad decisions young. Some years ago, he decided that was over. He took custody of his kid and started a business that rode the housing bubble. When the bubble popped, so did his business. Instead of whining about his luck, he worked his way into an entry-level banking job.

He put in long (long!) hours, bending over backwards to help his customers and coworkers, and managed a few promotions, far earlier than normal. His coworkers whined about it. He’s so lucky. If it was luck, why does his back hurt?

We make our own luck.

If you bust your ass, working hard and helping people–your coworkers, your customers, your friends, your neighbors–and you are willing to seize an opportunity when it appears, you will get ahead. When you do, the people around you who do the bare minimum, who refuse–or are afraid–to seize an opportunity, who always ask what’s in it for them, they will will whine about your luck.

When they do, you will get to ask, “If it was luck, how come my back hurts?”

Power

Finance, Life

At 8PM Friday night, our power went out.

We had 70 MPH straight-line winds and horizontal rain. Trees came down all over the neighborhood. Two houses down, 3 tree played dominoes, creaming the house, the fence, and two cars.

How did we do?

The skeleton I keep hanging in my tree lost its right shin-bone and we lost power. So did 610,000 other people in the area.

It’s interesting to watch what happens when the power goes out.

I’m assuming every generator in the area sold out. I don’t know, because I already had one. I do know that most of the gas stations near me ran out of gas on Saturday. Most places were out of ice, too. Batteries were hard to scrounge.

The restaurants that either didn’t lose power or had backup generators were raking in money all weekend. Sunday morning, McDonald’s had a line of cars backed up an entire block.

Our power came back on Monday night. 74 hours of living in the dark ages. We had to read books on paper and cook all of our food on the grill.

We did okay. A few years ago, when the power went out for a day, I bought a generator. Saturday morning, I finally had a reason to take it out of the box.

The generator cost me $450. Over the weekend, we put about $40 worth of gas into it. That kept our refrigerator and freezer running, saving at least $5-600 worth of food. Two neighbors filled up our available freezer space, so that’s another $200 worth of food that didn’t die.

That’s a $500 investment to save nearly $800 worth of food.

Pure win.

The generator also allowed us to keep a couple of fans running, which is great when the power goes out when it’s 90 degrees outside. We also fired up the TV and DVD player at night to help the kids settle down for bed. This is one time I was glad to have an older TV, because cheap generators don’t push out a clean electricity that you can safely use to run nice electronics.

We have a couple of backup batteries for our cell phones, so we got to stay in touch with the world. We borrowed an outlet at our rental property to charge the batteries when they died.

We had about 5 gallons of gas on hand, which was convenient, but not enough. I’m going to grow that. A little fuel stabilizer and a couple of 5 gallon gas cans and we can be set for the next time gas runs out.

We cooked everything on the propane grill. I keep two spare propane tanks on hand, but we didn’t use them. Sunday night, my wife made spaghetti on the grill. The hard part was keeping the noodle from falling through. Nah, we threw the cast iron on the grill and cooked away. Had pancakes and bacon made the same way on Sunday.

We had to buy more lanterns. We had two nice big ones, but at one point, we had 9 people in our house. That’s a lot of games, books, and bathroom breaks to coordinate with only two main lights. This weekend did teach our daughters that the emergency flashlights are not toys. Two of them had dead batteries that needed to be replaced.

Going out to dinner Monday evening was a treat. We sat in a building with air-conditioning!

All said, we spent about $250 that we wouldn’t have if the power would have stayed on. That’s $40 for gas, $80 for dinner(you try feeding a family of 5 for less than that at a restaurant that doesn’t have a drive-through) and $130 on new lanterns. The lantern bill caught me by surprise, by a lot, but now we are set for next time.

How would you do without power for three days?

IQ Tests

Life

I dislike stupidity. Particularly willful stupidity.

The problem is that you can be having a conversation with some one that you don’t realize is stupid, then they whip out the dumb-hammer and steal some of your IQ points by osmosis.

I hate that.

Since my lobbying efforts to have the willfully stupid get identifying facial tattoos seems to be failing, I’ve developed a system. My system helps me identify willfully stupid people and allows me to ignore anything they say, or–more likely–walk away as soon as I’ve identified them.

Here’s my system:

If someone expresses a specific opinion on a specific topic, I know they are an inefficient use of air and should be ignored, preferably from a different room.

What topics? I don’t pick topics that are necessarily controversial. For example, politics. I’m a died-in-the-wool Leavemethehellaloneitarian. Commies who want to take my money to fund stupid programs or stupid people aren’t a part of my IQ test. They’re just misguided. I’ll pat them on the head and change the topic, because I’m not interested in being either a history or an economics teacher.

The topics I go for are straightforward. It’s a matter of “If you believe this, you are beyond help.”

What topics?

The moon landing was a hoax. Buzz Alrdin actually got the honor of punching one of these idiots. I won’t get into the science here because–as I said–I don’t want to be a teacher. Just 2 points from a human nature perspective: 1) The Russians were watching and good tell where the radio signals were coming from. If they could have embarrassed us, they would have. It was a Space Race. 2) Conspiracy 101. 13 people can keep a secret if 12 of them are dead.
9/11 Truthers. There’s too much stupid rolled up in anybody who think 9/11 was an inside job. Engineering, human nature, cinematography, and critical thinking are all topics they can never master. Just walk away. They probably won’t notice they are talking to a wall for a while, anyway. If they do get offended, it’s no big deal, because there’s no way they can remember your name longer than it takes to take a couple of breaths. Seriously, they became Truthers because it’s the only job they could get that didn’t mind retraining them after each coffee break.
Holocaust Deniers. I almost skipped this one because it’s hard to describe them without resorting to language I try to avoid here. Ten million people died as a direct result of evil. Evil that ran a successful PR campaign on television. Evil that was witnessed by millions as it was happening, and by tens of thousands more as the concentration camps were liberated and mass graves were uncovered. If you deny this, you are not only beyond help, you are beneath contempt.

There are some other groups that get this to a lesser degree. Anti-vaccinators get a pat on the head. They are benefiting from the herd immunity provided be the people who get their kids vaccinated. If the rest of us went that route, we’d grow some fabulous epidemics again.

What about you? Do you have a shortcut system for recognizing people better left ignored?

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