We Hit Our Goal

This month my wife and I hit our end of year target! A net worth of over 75,000! We did this through a long term commitment to frugality, investing, and savings. Through out the past 4 years we have paid off debt, cash flowed my wife's college expenses, invested heavily in the markets, and set up an emergency fund. Through out the "Great Recession" we experienced job loss, car problems, health issues, and family crisis. In no way is our story perfect or am I gloating. I do however want to take a moment out of my schedule to mark a milestone in our commitment to each other. 

Thanks to everybody who has posted on my blog in the past and may each and every one of you find peace through sobriety and freedom from debt!

The stock market is volatile, should I continue to invest in my IRA?

Stock market volatility is certainly a stomach churning phenomena. Especially while the markets are on the decline our emotions tend to kick in and tell us, "whoa, this is dangerous, let's slow down, let's take our money out where it is safer."
Is this type of approach really the best way to handle your money? Absolutely NOT. If you are brave enough to get onto the roller coaster than you must find the strength to ignore your fear and allow the ride to finish. Really the stock markets as well as all markets are driven by only two emotions, 1. Greed 2. Fear , whether a market is up or down is simply an indication as to which of those emotions is winning out with the populous. By recognizing these emotions you will be better equipped to make wise decisions with your investments. Personally I am a buy and hold type of investor, I have fully funded my Roth IRA for the past couple of years and intend to do so indefinitely. In order to neutralize the effects of any emotions on my investments I have decided to fully automate my investments. What I have done is taken the full annually allowed contribution which is currently $5000 and divided that amount by 10, this gives me approximately $500 to invest during the first ten months of the year, the last two months of November and December are a buffer in case I don't reach this goal in time, in addition if I am fully funded by November than I have extra cash flow during the Holiday season. I have set up inside my IRA a total of 5 mutual funds, which I searched for and researched on my own, I have 1 mutual fund representing each of the following categories,
1. Large Cap Stocks 
2. Medium Cap Stocks
3. Small Cap Stocks
4. International Stocks
5. Bonds
This gives me a nice amount of diversity in my portfolio. Given my age of 27 I have decided to allocate 20% to each category. While many would advise me that I don't need to be exposed to bonds at this stage of my life I have found that the bond fund provides a bit of a buffer against the extreme volatility of the stock market, helping to smooth out some of the ride, in addition they provide a monthly income stream. As I get older I may decide to up this allocation to create a more conservative portfolio but for no 20% is working for me. I want to have the majority of my investment working hard in the equities market.
As I stated my investment is totally automated. This takes the decision making out of hand allowing me to focus on other matters without watching the day to day drama of the market. In addition this automated investment plan allows me to effectively dollar cost average my investments. During up months I am buying less shares of each mutual fund, and during down months I am buying more shares of each mutual fund. Over the long term this disciplined approach to investing has shown through research models to yield the best returns.
At my age even though I have a decent amount snow balling in my IRA , in a sick kind of twisted way I hope that the market stays injured, and in a depressed state for years to come. I have over 30 years for these investments to work for me, and the longer the market stays on sale the more shares of stock I will be invested in. In other words while the market is cheap I hope to take as much advantage as I can.

Please share with me your investment approach. Do you have any recommendations for me to make my approach better?

Is it better to constantly repair my old car, or buy a new one?

Recently I had a discussion with a friend of mine about his new Mitsubishi Lancer. While this is a very nice car I happen to know that he did not pay cash for the car, but rather financed it and is stuck with a monthly payment. I didn't even have to ask him why he purchased it, he came right out and said : " I would rather have a car payment on a new car with low miles, than have to worry about my transmission going out or something major happening on my old car."
And there you have it, this reasoning is in my opinion one of the most used and most widely excepted reasons for purchasing a new car. In the end this reasoning is nothing more than a justification for over spending.
This reasoning is why the average car payment in the united states is up around $480, this reasoning is also why poor people remain poor, or in this instance lower middle class stay lower middle class. Until American's change the way they view the coveted new car, their finances simply will always be riddled with debt and payments.
I'm here to tell you that you can BREAK FREE from this slavery to debt mentality and break the justifications that cause this behavior.
On the surface this sounds reasonable, after all who wants to shell out $1500 for a transmission especially when this cost is unexpected and the timing could be detrimental. However when you step back and take a look at the numbers you will see that PAYING TO HAVE YOUR OLD CAR PERIODICALLY FIXED IS ALWAYS CHEAPER THAN CAR PAYMENTS!!!
The reason I say this is two fold :
1. When you add up your monthly payment, lets say you buy an "economical" car and your payment is "only $300 well south of the average, how much are you paying annually? Well simple math says that $300 x 12 = $3600. While it is certainly possible that in any given year your maintenance costs for your old car may come close to this amount, it is nearly impossible that you would incur these costs year in and year out. For example if this year you were forced to put $2000 into a new transmission for your old car, that transmission will likely come with a warranty, and it will likely be good for many years to come. The truth is you will always save more money by simply fixing your car than you would having a car payment.
2. The depreciation costs on a new car are ASTRONOMICAL ! As soon as you roll off the lot you just lost a big chunk of change. New cars typically loose 30% of their value within the first 3 years. If you buy a $20,000 car ("economical model") than you will loose at least $6000 in value in the first 3 years. It's highly unlikely your maintenance costs on your old car will come any where close to this figure.

So now you have two solid reasons to hang onto that clunker and ride it out for a couple more years. If the maintenance simply becomes too much of a hassle factor stick to a strict budget, set aside a couple hundred dollars a month and save up for a reliable used car , one that you can pay cash for. This type of planned budgeted purchase will put you into a much stronger position financially and will put you one step closer to financial security.

Please share your comments about this subject, I'm eager to hear about your car purchasing choices!

Paying Cash For Everything!

Are you one of those folks who uses your credit card for your day to day purchases. If so you are not alone, in fact most American's use plastic for day to day purchases for many reasons. However I'm writing this post to plead to those of you who are in financial troubles to CUT UP your cards and change the way that you view your money. I'm not asking you to change your spending, simply to change the way in which you purchase. Give yourself a 30 day opportunity to put this into practice. This trial run will teach you many things about your purchasing habits. Paying cash for everything will bring you back into reality with your decisions. It is a proven fact that people with credit cards pay approximately 30% more for there purchases at fast food restaurants than those who are paying cash. Is this a coincidence? I don't think so. Paying in cash for everyday purchases such as groceries, gas, entertainment, etc. will force you to accept exactly what your habits are instead of detaching the purchase from the reality with plastic.
Give it a try, what do you have to loose? Just your money.
Please post a comment if you give this a try or are struggling with this idea.

The Debt Ceiling, Does it matter?

This post is in response to all of the fear mongering that I see from both politicians and the media regarding the debt ceiling. While the debt ceiling is certainly important and has implications if left alone, I would not at all be surprised if the hype has once again surpassed the reality of the situation. Again and again I hear on the media that this would be "the first time in history" that the U.S. would default on it's debt. This is simply not true, in the past 120 years this country has defaulted in one form or another approximately 4 times. In each of these instances the world continued to turn, and the country continued to function. Financially each time the value of the currency was devalued. This puts cash at risk, however assets such as commodities, stocks, real estate, all ultimately benefit from a devaluation. In addition any outstanding debts become artificially less significant. Ultimately I believe this is what this country is trying to do, devalue the currency with out the public knowing it's plan, this would enrage retiree's and those with large amounts of cash. For the lower class in this country the defaulting of the debt could prove to be a great thing, and ultimately will accomplish yet another transfer of wealth in this country (think real estate bust). The ones hurt the most are those with the most cash. Those with large amounts of unsustainable debt ultimately will be "bailed out" by this deliberate devaluation.
Ok, so that being said what should YOU do? Well, I wouldn't hold US treasury bonds, In addition I would trim my cash positions. Ultimately real estate is the ideal investment during this time period as it has already been pummeled and provides an excellent hedge against inflation. If you can purchase real estate with cash at this time, I say DO IT. Ten years out this could prove to be one of the finest financial moves you have ever made. If you are unable to purchase real estate with cash, the next best option is a well diversified stock portfolio which in the past have shown good performance during periods of inflation. Lastly I would look to commodities, however a word of CAUTION , you are jumping on the most popular band wagon and most commodities are very expensive. You could be buying into a bubble if the economy doesn't react as violently as the world is preparing for.
Hold on it's going to be a bumpy ride, but just remember just because the ride is bumpy doesn't mean that it can't be prosperous.
Discussion Question : What are you doing to prepare for a potential US default on it's debt?

3 Years of Sobriety !

Woohoo, just writing to let all of my loyal followers know that on June 20th I passed the 3 year mark of sobriety. As my sobriety continues my life continues to improve in clarity and quality. Sobriety brings potential back into your life, potential to me is a lot like hope, but hope with a plan. If you feel that your life lacks hope, or your unsure what your doing with your life, than I strongly encourage you to consider sobriety. By no means am I asking you for a life long commitment, all I ask is that you give sobriety a try. Try it , for today, don't pick up that first drink. In the morning when you are not suffering from a hang over you will thank me, and if you find that you enjoy that feeling of health and vigor, don't pick up that first drink. All we have in life is this moment , right now, don't plan next week, don't plan next month, or next year, just right now don't pick up that first drink. You will find that as you allow your life to unfold with out the influence of drugs or alcohol many of the "reasons" that you drink will seem to vanish.
             Many people drink because they "need" a drink to deal with the stress in their life. The insane aspect to this theory is that the drinking is the cause of the stress. And so the cycle continues. It takes a break, and a few steps back from this cycle to see exactly what was going on. Three years out from this cycle affords me with the viewpoint to share my wisdom with you. Give up the poison, give up the stress, it's not worth it!

Receiving a Raise During the Recession!

Today I was informed that I will be receiving a 10% raise. This comes as a result of moving up the pay scale during my electrical apprenticeship. If anybody is interested in becoming an electrician or enjoys electrical work I strongly recommend you look into your local I.B.E.W. union hall. The IBEW (international brotherhood of electrical workers), is one of the last true unions to exist in this country. Through a true apprenticeship program in which apprentices are taught the trade through both classroom and one the job training, the IBEW helps thousands of families, and produces some of the finest electricians in the world. Through balanced negotiations with it's contractors the IBEW assures for it's members higher wages, better benefits, and safer working conditions far exceeding any comparable program. I work very hard at my job, dedicate myself to my studies, and have been richly rewarded for my time and energy.
It's amazing to me to hear people in this county cry about "good" jobs going overseas never to return, yet the same individuals will jump on the anti union bandwagon. I don't understand it, people say we need good jobs , yet vilify the few remaining organizations that fight for these jobs. Go figure?

Overcoming the Fear of Success

Why is it every year we hear of Lottery winners , who two or three years later are completely bankrupt? Why is it that many, when given a windfall, quickly find a way to waist these newly found resources? Why is it many will go through life, with their head to the grindstone , never to actively pursue something better?
Simply put, these individuals are gripped by a fear of success. What do I mean? Well, it's my opinion that many people in life have become comfortable in the current circumstances they find themselves in. The longer this condition is allowed to exist, whether it be poverty, addiction, homelessness, etc.... the more comfortable the individual becomes in the surroundings. When an outsider offers a hand up, or this individual is presented with an opportunity to pull themselves out of this mess, more times than not the individual will shrink back and find a way to fight the opportunity. This is no less true of all of us who find ourselves in a "cozy" job. Perhaps we have held down the same position for many years. Perhaps we have lived in the same city our entire lives. Perhaps we our circle of friends is a tight knit closely audited group. All of these examples personify one point, that as human beings we are comfortable with consistency. Why is this a problem? Well if we have been consistently broke, or consistently fall into the same behavior or addiction. Or we are comfortable with our plot in life that we will not exceed to something extraordinary, we are settling for ordinary.
Do not allow the fear of the unknown to stunt your growth. I'm now rapidly approaching 3 years of sobriety in my personal life, in suit with this my financial life has made a complete 180 degree turn and my family is on the path to success. Everyday I see this path becoming better and better, yet deep down in side of me there is a fear, a desire to sabotage everything and revert to my "normal" life of pain and recovery, peaks and valley's, extreme ups and downs. For all of us in recovery this is a battle. We in a since become comfortable with the battle, we in some deep sick way enjoyed the cycle's of becoming high, and then later mending the problems associated with our addiction. This cycle provided excitement and entertainment. It provided pain and joy simultaneously, and as many of us are aware it is as much this cycle that is addictive as it is the actual substance itself. When we break away from this cycle our lives begin a different cycle, one of perhaps shallower lows and more subdued highs, but overall the trajectory of our life begins an upward climb. Perhaps unnoticeable at first this upward climb will take us higher and higher through life, until one day we may look over the edge and say "Whoa" it's a long drop! At this point do not fear! Do not be afraid of success! Do not be fearful of accomplishing everything you deserve in life! Allow yourself time to become comfortable with this new success and fight the urge to revert to your former way of life. It is God's desire that each us achieve great things in our lives. Sometimes we just have to get out of our own way and allow him to take us to places we could never imagine.
Thanks to everybody who took the time to read this ramble, and to each and every one of you listening, know that you can do it! One day at a time.

Successful Short Sale

We are coming into tax season and I'm sure that this brings a lot of stress and anxiety for most. For my household however this tax season was something to be thankful for. Last week I received 1099-c forms from my former mortgage holder. A 1099-C is a cancellation of debt for showing that the bank has charged off your debt from their books. In addition to these forms I have received "Satisfaction of Mortgage" letters on the accounts.
The Short Sale process is not easy, and it's certainly not a smooth ride, but now officially 1 year later it's looking like we are emerging from the storm. Thanks to the grace of God we were provided with an awesome real estate agent, patience, and a little bit of wisdom to navigate this road. The choices that we made previous to this train wreck were both immature and unnecessary. Looking back on it there are many things that I would do differently. I guess one of the biggest blessings that have come out of this trial are a stronger faith in God, and also I greater knowledge of the bibles principles with regards to handling money. I've heard it said that Jesus spoke of money more than love, (not sure if that is correct, but it could be considering all the parables involving money).
Our recent trial with this short sale and the debt forgiveness reminds me of Jesus parable of the slave who owed his master a huge amount of money, the master forgave this HUGE debt, but then the slave went and put his hands around the neck of somebody who owed him a tiny amount of money. He certainly was not appreciative of what he had been forgiven and didn't "pay it forward" in his own life. I don't want to be like that, it's clear to me that God had a hand in this process, I felt him guiding us the whole way through, now that we are on the other side it's important that I continue to rely upon him for guidance, and not fall back upon my own understanding!
To everybody striving to stay sober, and obtain a debt free life I wish you well.
May God continue to bless your efforts.

Gaining Steem

Without getting into too much detail I just wanted to let everybody know that I feel that I am making progress in my life. Things are starting to go my way, the little sacrifices that my wife and I have been making over the past couple of years are starting to mature and show fruit-age in the form of lower debt, increased education, stronger faith, better health, career opportunities, etc... 

A little update on my sobriety :
I celebrated my 2 year sober date on 6/20/2010 , so I guess now I'm somewhere around 26+ months of continuous sobriety. The past couple of months have been smooth sailing in this regard, the cravings seem to have reduced significantly after around 18 months. I'm looking forward to staying sober today, and for many today's to come.

A little update on our financed :
After years of storm clouds our financial lives are starting to see rays of sunshine. We emerged from a short sale on our property in February of this year, and we finally received paper work stating that the deficiencies that had remained have been worked out. After years of being upside down on the property what a relief it was to finally be moving onto another chapter in our lives. We are continuing to live within our means, to save aggressively, we are maxing out our Roth IRA's this year and hope to continue this habit going forward. The only debt that remains from our previous mess are two car notes which we are continuing to pay. Last month we actually hit a positive net worth of 20k. 3 years ago it was somewhere around a negative 120,000 . 

A little update on our career advancements :
My wife recently received a promotion and with it a 10% raise. She is now enjoying her days at work much more than before and is excited about the future possibilities with the company she is with. Personally I was moved to a much more reputable electrical company. So far so good. I'm in my 3rd week with them and am enjoying the work tremendously. Also on Friday I will be starting my second year of schooling in the apprenticeship. 

An update on our spirituality:
 Perhaps the most important improvement in our lives has been our spirituality. Without sounding too preachy I've regained a lot of faith in god as I have personally seen his hand leading us through this journey and into countless blessings. It was really faith in him and his principles that has caused this turn around in my life. Without the help of God none of this would be possible.

Thanks to everybody for reading my blog , please feel free to share any comments

Focus

    The art of focus is difficult to master, and this is especially true in recovery. When we stop using, stop drinking, stop doing whatever it was that was hurting us we want instant benefits. We want to immediately see the good results of our discipline and self control. With the effects of drugs or alcohol safely out of our systems we are able to see clearly our circumstances and often have a tendency to look way off into the future to see where we think we should be. I've often sat and thought to myself  "Wow, I've been sober this long, what will my life be like 10 years from now, or 20 years from now, or even next year". While it's exciting to look to the future and to plan and to see where your life might lead we need to be cautious not to loose focus on the present moment.
     As an alcoholic the only thing I have control over is the current moment. I didn't achieve 2 years of sobriety by sitting down one day and thinking "I'm going to not drink for the next 2 years", rather this was achieved by sitting down daily and thinking "I'm not going to pick up a drink today" , or early on in recovery "I'm not going to pick up a drink this hour, or even this minute."
    Yes only the decisions that we can make today, this hour, this minute are the ones that matter. Stay focused on the present moment. When I start to think about not drinking for another year, or 10 years, or even for the rest of my life, it can be overwhelming. Just as detrimental is thinking about the past, "How different things would be if..." "How would my life look if I had done this sooner" .... etc.
    Just stay focused on today, this hour, this minute. Our life , where we are today, is a direct result of our thoughts and our decisions made one at a time, and accumulated over time.
    In this present moment you are either moving in a good direction, gradually improving your life, or you are moving in the opposite direction hurting your life. You probably won't even notice the effects of the decisions that you make today, in fact you might not even notice the effects of good decisions that you make for weeks, months, or even years, but you have to trust the process! The compounding of good decisions, of good thoughts over time can only yield good fruit. Stay focused on the present, make good decisions today, and let the rest handle itself. Best wished to all of you in recovery!

2 Years of Sobriety !

This week marked 2 years of continuous sobriety for myself. A lot of things have changed for the better during this tumultuous time . My marriage is stronger, my faith is stronger, my finances are stronger, and my self esteem is gaining ground. I'm finally starting to walk around with my head held high again , and to look forward to life with a smile. For those of you who are on this walk, keep up the good work! It's worth the effort.
Where will my life be in two years? Stay tuned to find out!
Discussion Question : Where are you at in your sobriety/recovery? How has your life changed? 

Putting it All Together

 Any golfer will know the frustrations of putting it all together. There are days I will go golfing and my putting is awesome, but I can't drive the ball if my life depended on it. Other times, I can launch the ball straight down the fairway no problem, but my short chipping game is off. Sometimes my chipping is great, but my irons are screwed up. Putting it all together is elusive to say the least. (if you are not a golfer I apologize for my illustration).
For me right now life is just as frustrating. There have been times in my life when I was making a ton of money, but I was being stupid with the outflow my spending. Other times I've been able to make advances in personal areas of my life, such as my sobriety (coming up on 2 years shortly) , but something else seems to give.
Right now I'm at a point in my life where I am learned discipline, trying to expand my spirituality and relationship with God, am being patient, frugal, penny pinching like a mad man, but the income is elusive.
One of these days it's all going to click. The income will match my discipline to financial soundness. My sobriety will yield the fruit-age of solid relationships. And overall responsibility and wise actions will bring peace of mind and serenity.
Still it eludes me.... Call it bad timing from the economy.... Poor career choices on my part.... I dunno , something is missing. It's frustrating to say the least. I don't know what I need more, a good kick in the pants, or encouragement.

I read a book a while back called "3 Feet From Gold" which speaks about a guy who owned a gold mine during the gold rush, and he dug and dug and dug, and eventually just gave up and sold his mine for pennies on the dollar. Well, turns out he didn't learn how Gold runs along veins in the rock, and because of this lack of education he didn't realize he was literally only 3 feet from tapping into one of the largest gold finds during the gold rush. True story....  Interesting Gold Rush Stories

I feel like that right now. I keep putting one foot in front of the other, keep pecking away at the rock, but am not seeing the gold.

Discussion Question : Has success eluded you in one way or another, and what do you do to keep a good attitude and proper perspective?

Dealing With Change

It's been said "the only thing that stays the same is change". Yes, life comes at us fast, and along with life comes change after change after change. Success and happiness depend largely upon our ability to adapt to change and to "roll with the flow".
Compare a white water rafter with the torrent rapids of a river. Which one is in control? the rafter or the river? Who ultimately has the power? the rafter or the river? While the skilled river guide may be equipped with a paddle in hand and knowledge of the rapids to come, he is only going to move in one direction, and that is downstream. He can tweak his velocity, maybe shift a bit, but at the end of the day he is going to move downstream with the river, regardless of his skill level.
How does that illustration teach us something about life?
Well, we may have a paddle in our hand, we may even have multiple paddles, we may have a direction in mind that our life will take. And all of that is great, but... Remember that life will have it's rapids, it will have it's currents, and ultimately in the big picture of things we are along for the ride. Enjoy the ride! Don't fear it. Don't try and fight it. Just enjoy the ride!

Beware the Trap of Coupons

I was reading a blog post over at one of my favorite financial blogs moneyning.com . It was about his typical day of activity and how he and his wife used coupons to "save" a couple of bucks. It got me thinking about a fact that few American's really take the time to think about. What is this secret? .....???

COUPONS ARE ADVERTISEMENTS

What do I mean by this? What I mean is large corporations pay big , and I mean big money to have these coupons designed, printed, and marketed to the masses. Now, why in the world, would a company pay big money to send you a coupon where you in turn pay them less for their product? Could it be that the profit margin is large enough to absorb the lower price? Could it be that they have a plan for you to purchase in the future from them and spend more money with their company? Absolutely!

What's the Point? ...

Coupons are great, but, If you are using coupons to purchase items that you wouldn't purchase without them than you are doing yourself a disservice. Many people use couponing, or searching for "deals" and sales to justify their spending. The truth is most of the time these individuals could benefit more by sticking to a budget and not drifting outside of it simply because something is a good "deal".

Using coupons for groceries, specifically items you would have purchased anyways is a great way to save money. The Coupon Mom is a great example of this. But please do not fool yourself, using a coupon for $1 off a fast food chain, or 20% your local restaurant, buy one get one free smoothie's, buy one get one free latte frappe mocha iced whatever, etc.... is NOT being frugal. You are falling into the plans of the advertisers yet again.

COUPONS ARE ADVERTISEMENTS, and should be treated as such. Impulse spending is impulse spending, whether you have a .50c coupon or not!


Discussion Question : Do you agree or disagree with any or all of my thoughts on coupons?

Why I Fired My Credit Card Company

Yesterday I did something that I have been meaning to do for a while. Inside my filing cabinet I have a dvd case, and inside the dvd case I have stored several of my seldom used credit cards that I used to "build" my credit. I finally got around to closing these seldom used accounts. There are a couple of reasons that I decided to close these accounts.
1. I recently put together a list of all of my current accounts by number and status. I did this in the form of a spread sheet that will go with my living will. If something were to happen to me I want my loved ones to not have to worry about my financial mess, rather they will find that everything is organized and uncluttered. Closing these unneeded accounts was part of this process. When I saw just how many open accounts I currently had I knew I wanted to tighten things up.

2. With the new laws coming into affect this year chances are good that these companies will turn to hitting customers with inactivity fees in order to offset some of the lost gains this new law will take away.

3. Probably the most important reason that I decided to do some house cleaning with my cards was that I have decided to live 100% debt free for the rest of my life. Having 4-5 credit cards really made no sense. Actually it was just something in the back of my mind saying " oh you haven't used that card in a while, why don't you put $5 on it and then pay it so that it stays open " . And then every month while I was paying my bills I always had to check and make sure that the balance was $0 and often worried that maybe I would forget to pay one of those $5 balances. All in all, the little bit of stress and worry was not worth the offset of the little bit of a credit score hit I took closing the accounts.

I do still have 2 cards that I currently use. One is with my bank and the balance shows up on the same page as all of my other accounts with that bank, so It's very easy to maintain that card and not have to worry about a balance that I didn't know about. The second I use specifically as a gas card for my wife and me and we pay it off in full every month. My future goal is to move to a cash system for the gas and to close that card down. I'm not sure If I will keep the one card with my bank open or not.

On one of the cards that I closed the account manager was pleasant and didn't cause me much headache. But on the other card they treated me as if I were a 5 year old child who didn't know how to manage my accounts. They spoke down to me as if I were uneducated and had no clue as to how a FICO score works.
It took about 5-10 minutes of listening to the account managers bull before he finally did what I persistently asked for. By the end of the call my ears were beat red and I was fuming.

If you breath on a credit card application a card will show up in the mail, but to close down an account seems to take a shareholder majority vote, and executive approval from the CEO and CFO (not seriously, but they don't make it easy)
Now why would that be the case? Is it because the credit card companies are out to help us? Do they have our best interest at heart? If you believe that, than you have a long way to go in your financial journey.

A book and plan that I swear by, that has had made a personal huge change in my life is "The Total Money Makesover: A Proven Plan for Financial Fitness " - Dave Ramsey.




Discussion Question : Would you be willing to part with your credit cards? Why or Why Not?

Be Determined to Finish What You Start !!!

Much of my early 20's was spent jumping from one adventure to another. I would sometimes go through 2-3 jobs in a single year. I was attending college but quickly dropped out as I wasn't sure why I was there. My career path had no definition. What I decided to do with my money would change from day to day with no real direction. While this was certainly a fun and exciting way to live, in the end it was unrewarding. In my mid 20's I began to wise up to the old saying "Finish What You Start".

Successful people see a goal, and follow through. They have an idea, and then pursue it whole souled. Small bumps in the road or even a strong headwind will not cause them to change direction.

About 3 years ago I put all of my determination and energy into one main direction. I want to become and stay 100% debt free. It wasn't quite fashionable to be frugal yet when I decided to become debt free. And my determination certainly will not fade when (if) the economy does return to normal. No this decision was not a recession driven decision or one of necessity, but one of faith and determination.

A second decision that I made was to apply for a spot in my local Electrician's Apprenticeship program. Out of 1500 applicants I was selected and received one of 40 spots here in my local union. I was so happy at first to learn that I had made it into this field. And I was determined to see this through even though it meant years of grunt labor and a 5 year schooling program. I recognized that the error to my previous endeavors was that I didn't see things through to the end. Now a couple of years later the economy has shattered the labor market here in South Florida and I am desperately trying to hang on to my determination to see this through. In the past I would have given up and started something new. This time is different. I believe in the long term prospects of this career choice and I am viewing the current job situation as temporary. I am not simply going to give up and what I've started because it hasn't worked out exactly the way I viewed it. I am going to finish what I've started.

This is 2 simple ways that I am trying my hardest to finish what I've started.

Discussion Question : Is there anything that you wished you had finished that you gave up on? and What have you followed through on that you are grateful for? Please feel free to comment as your insight is much appreciated.

Picture Your Life as a Cruise Ship

Sometimes I think about the path that my life is taking and I become anxious. I want things to work out immediately. I want to see more results from my current decisions. I want to see progress. ...
Sometimes in life we need to take a step back and realize that change is a process and it happens gradually. For me personally I've made drastic improvements in my life over the past 2 years. The biggest was becoming and staying sober. Secondary to that I have made progress with my marriage. Also I've been able to navigate through some sticky debt issues and gain at least some control of my finances.
So why am I frustrated? In a perfect world I would be making faster progress in all of the above. For example, I've been accepted into an excellent electrical apprenticeship program. The competition was tough but I did land a spot, the down side, I live in South Florida and I have had all of 5 weeks of work in my new career field in the past 18 months. I'm constantly reminded that this is a cyclical thing and that the future is looking better, but man I'm ready for my life to take off. ...
ok breath... take a step back...
I like to view my life as a large cruise ship. Right now I'm turning things around. But if a cruise ship wants to change directions it does not happen on a dime. It's a slow gradual process. It takes TIME. I'd made some really stupid and poor decisions in my life for many many years. Now I've made good decisions for the past 2.
Our life is a result of the day to day decisions that we make one day at a time. As badly as I would like things to move faster all I can do is focus on the decisions that I need to make today that are best for my family and myself.

Discussion Question : What helps you to be patient with your struggles?

6 Simple Ways to Save on your Electricity Bill

For my first few blog posts I've wrote mostly about the effects of addiction on savings. For this post I'm going to get down to some very simple nitty gritty ways to save money on your electricity bill. Please feel free to comment and share additional ways that you save!

1. Install a Programmable Thermostat
These thermostats usually range in cost between $20-$60 depending on the level of options. But even a simple $20 programmable thermostat can do the trick. Simply put if your only running your A/C or heat when your actually at home your saving money, big money. Your A/C / Heat Pump is usually the biggest electricity hog in your home.

2. Tweak Your Water Heater
You can do this in three simple ways. Lower the heating temperature of the water. For most households a tank temperature of 120 degrees is plenty hot and obviously the lower you set the temp the more you will save. You can also install water efficient shower heads. This not only saves water, but also reduces the amount of water that must be heated through your water heater, this save you $$$ !!! Lastly you can install insulation around the tank itself and the lead water pipes. (this is more important if you live in a cold climate where your tank may be in the garage or basement)

3. Fridge :
Turn up the temperature of your fridge - There is a balance between optimal food freshness and temperature. Keeping your fridge at near freezing temperatures and your freezer at sub zero temps is wasting electricity and in turn $$$.

4. Lighting
An easy switch is replacing your incandescent bulbs with energy efficient CFL's. Many people complain that the light is too "artificial" or white. If this is you, look for the newer bulbs that are categorized as "warm white". The past couple of years have led to cfl's being much more pleasing to the eyes.
(in the coming years LED's will be the bulb of the future, but for now they are usually too expensive to justify the upfront costs)

5. Optimize your TV
When you first open your new flat screen LCD/Plasma HDTV it is coming with settings that are not only usually too bright but also not the optimal viewing experience. You can do a search on the internet of your make and model TV and find professionally optimized settings for your set. Turning down the back-light and brightness can not only use less electricity but it will also lead to greater enjoyment of your TV, and longer bulb life.

6. Computer/Laptop
When possible leave your computer off, and use a laptop instead, they consume much less electricity. Also make sure that you are enabling sleep or hibernation modes on your machines so that they reduce electrical use when you are not using them. If you must use a computer set up all of your peripherals on a power strip and turn off everything when you are not using them. the same is true for your tv/surround sound system

These simple steps can save you big on your electricity bill.

Discussion Question : What tricks do you have for saving on your electricity bill?

Trading Addictions

Trading Addictions :

When we become sober we face a trap of simply trading one addiction for another.
Some things that people will trade:

No Alcohol = Increased Smoking
No Smoking = Increased Snacking
No Drugs = Working more (workaholic)

While some addictions are certainly more detrimental and more dangerous than others, the only route to true sobriety and serenity is BALANCE in all aspects of our lives. Learning to eliminate the extremes of our lives is a key step to sobriety. For me I enjoyed the challenges of ruining my life and then trying to dig my way out of the problems (sick.., I know :) ) The extreme ups and downs will do nothing for your life long term, but they create the illusion of fun in the short term.

Leveling out/ Balancing our lives is a day to day effort. What are some ways we can do this?

1. Daily Meditation -
This doesn't have to be down on a yoga mat, or a zen like experience.... but simply put every day take a few minutes of peace and quit and relax and center your thoughts to the present moment. Try and remove anxieties and stress from your mind, focus on your breathing, and just be in the present moment.

2. Stick to a sleep regiment -
For me my alcoholism was partly a "self medicated" remedy to insomnia. What is the #1 thing you can do to get your sleep pattern back on track? Get up at the exact same time every day... no matter what... if you don't sleep one night still get up at the exact same time every day. Eventually this habit will cause you to be tired by bed time.

3. Continue to Improve Your Life -
Every day spend a little time doing some educational/inspirational reading. Evaluate where you are currently and where you want to be in the future. Take small steps to make it happen. For me simply not picking up a drink today is an improvement in my life. It takes a while of continued sobriety for your "life improvement" to become apparent, but believe me.. you will hit a point where your life is drastically better than it was when you were drinking or using. You will reach a point where you see the benefits starting to snowball and you will use this momentum to keep you doing the right thing, one day at a time of course.

Discussion Question : Do you struggle with balance in your life? What has helped you?

As a Man Thinketh - by James Allen

Today I read a book called "As a Man Thinketh" by James Allen. At just 78 pages this book was a quick enjoyable read. The basis for this book is that if you can control your thoughts, than you in turn control your life. This book is part inspirational and part philosophical. I found myself completely lost in it's pages and plan on reading this book maybe once a month to reinforce it's ideas into my life.
Over the past 24 months I have found myself drastically changing my thought process, and in turn my life has drastically changes. While this book isn't as foo foo as "The Secret" , it does rest along the same basic concept.

Do you have a victim mentality? Do you struggle with positive thinking? Do you want to change your life for the better? If so read this book, it's going to be a staple in my library.


Discussion Question : Do you feel that your thoughts can change your circumstances?

Alcohol Free + Debt Free = Success

My goals for the rest of this year :

1. Stay Sober
2. Become 100% debt free
3. Continue to learn and grow
4. Find meaningful employment

As you see sobriety is at the top of this list for me. With out sobriety I cannot reach any of my other goals. The amount of money that I would spend on alcohol and alcohol related entertainment make it very hard to save money, or pay off debt. When I am drinking am I really able to learn and grow as an individual? Nope... And lastly when I drink I have a hard time finding the energy and drive to find and hold a meaningful job.

Sobriety has a trickle down effect on your life. It won't happen after a day, a week, or a month... But when you are able to seriously put down the bottle and begin working to improve your life, good things happen!

Discussion Question : In what ways has sobriety benefited your life?

Welcome to my Blog !

Welcome to "Alcoholic Millionaire". The purpose of this blog is to fill the void between sound financial advice and sober living. Personally i'm coming up on 2 years of sobriety. Looking back I've realized not only the emotional, and physical damage of my past actions, but also the DETRIMENT that drinking and addictive behavior has had on my finances. Searching the web I've found little help for those of us who want to improve our lives financially and struggle with the added difficulty of addiction or an addictive personality. It is my hope that though mutual sharing and your posts that we can all learn from each other. In the end my goal for each and every one of you is serenity. Please join me in this journey!

Discussion Question : What affects have addiction had on your finances?