Just Stuff...

Life Advice…

If you are looking for ways to have fun with your kids, try joining the YMCA. I think it costs about $80 per month, and there are so many things to do. So far, we have utilized the pools and racquetball courts. Josh and Jonah start a baseball league through the Y in June.
Yesterday, the kids went swimming while Tracy and I played racquetball and ran on the treadmills. They had a huge water slide that dumps into the deep end of the Olympic size pool. Josh and Jonah both did great, but Jonah slid into the water and pretty much sank. He has no body fat what-so-ever, and he apparently can’t swim either. They all have fun in the 3 foot deep kids’ pool, and he is able to jump or push off the bottom and glide in the water. Without a bottom to push off, he doesn’t do so well… The lifeguard went in and got him. It would seem swim lessons are going to be a priority for Jonah.

I typically listen to AM Talk Radio, but I am so very tired of hearing about Hillary and Obama. I switched to a new channel and found the Dave Ramsey financial show. I have listened to it for a week or so, and it is very inspiring. America today depends on credit for most of their purchases. Dave teaches the idea that we should be debt free except for our mortgages, and pay cash for everything we buy. Tracy and I are not there yet, but we are almost debt free except for our mortgage and our car payment. It is a good thing, too. Once my Intel job is finished in June, our single income from RK Mechanical just does cover our personal living expenses, and we will have about $500 per month left over. That $500 will go fast when you think of buying clothes and shoes for three boys, medical and dental co-payments, a little bit of entertainment costs, school lunches, etc. December06 to October 07 (when I went back to work at Intel) was a huge learning experience for us. We learned how to live on necessities only, and not have extras. It takes a great deal of discipline, but we know we can do it when needed. When I was in the Navy, I had an odd way of looking at finances. If I had a credit card with a $5000 limit and a $2000 balance, I saw that as $3000 left to spend, not $2000 of debt. Now I look at credit cards as an emergency only fund, and to avoid buying on credit if possible. I spoke awhile back about “financial houses of cards” in reference to the combination of business and personal finances. Looking at finances from Dave Ramsey’s point of view, as opposed to my old ideas when I was younger is very healthy! It takes a shift in how you view money and it helps you to determine the difference between wants and needs.
The last 18 months have been tough financially, but things have worked out and we have learned a great deal. Dave Ramsey has the following four goals to set, no matter where you are in your finances:
1. First, put $1000 in the bank. This is your operational slush fund.
2. Pay off all credit card debt, car loans (may require getting rid of your car), student loans, etc. (all debt except your house).
3. Save 3 to 6 months of your personal budget and keep it in a separate savings account. This is your emergency fund. If your house payment, utilities, groceries, insurance, gas, etc cost $2700 per month, then save $8100 to $16,200 for an emergency fund.
4. Work on paying off your house to get completely debt free.
If you look at your budget and your outgoing funds are more than what you have coming in, you have a couple of options.
1. Evaluate your necessities and see if you can get rid of any. Having cable TV is great, but not really necessary. If you have a cell phone, do you really need a home line? A $350 car payment could go away if you sell that car and buy a used car for $3000 or $4000. Will it be as nice as your new car with a payment? No, but it frees up your car payment amount to pay down debt.
2. Get a second job. You won’t miss the cable TV you cancelled if you are working another 20 hours a week. Even if you get a low paying job as a second job, it will help to pay down debt and won’t be a permanent situation. Working 20 hours a week at minimum wage in Colorado yields $7300. One year of this job will wipe out a couple of $3000 credit card balances. If you can get a part time job at $10 per hour, that will bring in another $10,400 per year before taxes.
3. Get creative and think of other ways to save…

If you can teach your kids to save for retirement when they are 20, it will drastically change their lives. If a 20 year old saves $300 per month for their whole adult lives, they will have 14 million at age 73. If they do so until age 63, they will have 4 million for retirement. $320 sounds like a lot to a 20 year old, but should be achievable for most people. I have had $320 or higher payments on a credit card balance. If you pay that off, or never develop that debt to start, $320 should not be a burden on your budget.

OK, enough basic financial advice. The biggest thing I can say about these simple concepts is that I am sorry I didn’t follow them all of my adult life.

As far as my job goes, I have been planning to finish my Intel commitment at the end of June and be done with this ‘two full time jobs’ ordeal. It was not so tough for three or four months, but it is getting harder. I heard last night that Intel may not decommission this plant. They can operate/maintain the plant in a standby condition for a number of years for what the decommissioning budget would be. It would still be an asset up for sale, or could be potential added capacity to Intel if the need arises. The last I have heard is that they plan to make a decision at the end of May. If they choose not to demo/decommission, then there will be opportunities for a decent length contract there (3 to 5 years). That would be appealing… I’ll have to hang tight and see how all of this pans out…