Rich vs. Poor

 

         T. Mary Eker gives us 17 ways the internal finance “blueprints” differ between poor folks and rich folks:

(From his book “Secrets of the Millionaire Mind“.)

 

1. Rich people believe: “I create my life.” Poor people believe: “Life happens to me.”
2. Rich people play the money game to win. Poor people play the money game to not lose.
3. Rich people are committed to being rich. Poor people want to be rich.
4. Rich people think big. Poor people think small.
5. Rich people focus on opportunities. Poor people focus on obstacles.
6. Rich people admire other rich and successful people. Poor people resent rich and successful people.
7. Rich people associate with positive, successful people. Poor people associate with negative or unsuccessful people.
8. Rich people are willing to promote themselves and their value. Poor people think negatively about selling and promotion.
9. Rich people are bigger than their problems. Poor people are smaller than their problems.
10. Rich people are excellent receivers. Poor people are poor receivers.
11. Rich people choose to get paid based on results. Poor people choose to get paid based on time.
12. Rich people think “both”. Poor people think “either/or”.
13. Rich people focus on their net worth. Poor people focus on their working income.
14. Rich people manage their money well. Poor people mismanage their money well.
15. Rich people have their money work hard for them. Poor people work hard for their money.
16. Rich people act in spite of fear. Poor people let fear stop them.
17. Rich people constantly learn and grow. Poor people think they already know.

25 “What If” Finances Questions

         The economy is on life support. Times are hard and the vast majority of American’s finances are simply limping along. If you are fortunate enough to have a steady income and money to spare after a paycheck, it’s time to ask yourself the tough questions. Are you saving all that you can be? Are you casually wasting money in the present on things you want but don’t need? Is your future secure in the event of a lost income stream? Here are 25 questions to ask yourself to determine if you are where you need to be financially or if you belong somewhere in the “Needs Improvement” category.

         1. What if the government seized your assets and froze your accounts? Emergency funds in a secure, FDIC insured account are wonderful. But those accounts get insured because the government is involved. They can put a lock any one’s account at any time, even giving sketchy reasons behind it. If those accounts are frozen, you will need a temporary fund source to survive. Ideally, you want to keep about $1000 emergency cash at home, in a safe. This will also benefit if something immediate occurs that doesn’t allow you to get to the bank, or if the power grid drops and ATM’s are no longer an option. It’s also wise to keep about $300 in your car in case you become stranded on the road and have no access to your accounts.

         2. What if the economy does not recover? We should all develop the skills to tighten our wallets and find ways to save money. Constantly update your resume and keep yourself available for work. If you have a job, do whatever you can to maintain it. If they try to lay you off, ask if you can take a cut in hours or pay instead. Bargain shop and save as much as you can from whatever you make. Remember the golden rule: save 10% of your income.

         3. What if a sudden, unexpected medical emergency comes up? Not everyone can afford health insurance. That is one of the many challenges facing this nation. Our medical industry is not made to benefit the people who need it most. If you can afford health insurance, be sure to cover yourself and everyone in your immediate family. If you can get benefits through your job, do not opt out. If health insurance is not an option, consider this staggering statistic: the average bill from just a standard emergency room visit is $1500. Do you have that much tucked away? If not, and you are without insurance, you better start your emergency fund account pronto.

         4. What if the cost of food continues going up? Food is getting more expensive then ever to grow, transport, manufacture, and sell. Taxes have gone up on food sales. To counter the cost of production, most companies are raising prices and lessening volume. You should stockpile long lasting foods now, not only for emergencies, but in case those items double in price later on. Starting a small garden at home is a great way to lessen the damage food does on your wallet. Start buying generic products now so that when the name brand companies raise their prices, you will already be used to the taste of generic outlet brands. Find ways to save money on food by eating at home and packing your lunch. Avoid fast food as it has the least nutritional value of any food you waste money on.

         5. What if a loved one dies and you suddenly find yourself needing to pay for funeral arrangements? Research shows that the typical funeral costs any where from $4000 to $6000 depending on what services you require. A lot of people buy plots and tombstones in advance to avoid unnecessary financial burden to the loved ones they leave behind. Creamtion is also a much cheaper option. Many city services will bury your loved one for a small fee. But a lot of municipal councils are doing away with that service. Think about this stuff now, as it’s going to happen.

         6. What if you or a spouse loses a job? Any financial expert will tell you that you should at the very least have 30 days worth of expenses saved back for emergencies. Some will argue that 6 months is better. And still others will tell you that in the current economy saving for a year isn’t too far fetched. Unemployment is skyrocketing. Some people have been out of work for years. Do you have extra skills to take on a side job? Are you prepared to take a pay cut to get a job at a fast food restaurant? Are you mentally prepared to cut out monthly expenses such as cable and other services? Get your wallet and your mind ready for the possibility that you won’t always have a job.

         7. What if you are in a car accident and your vehicle is destroyed? This is possibly one the most devestating things that could happen to a large family. Suddenly the parents can’t get to work, the kids can’t get to school or extracurricular activites. Aside from any medical bills, now you have to pay for the cost of replacing your car. Ensure that your insurance covers whatever your car is worth. On top of that, always drive safely and follow the rules of the road. Keep your car well maintanenced and check fluids. Prevention is the key to avoiding automotive disaster.

         8. What if your home is burglurized, burns down, or gets ruined in a natural disaster? Everyone should have some type of home owner’s insurance. It’s cheap and can cover a large amount of expenses. Even if you live in an apartment, you can get a $25,000 policy for about $300 a year. That is nothing compared to the peace of mind you’ll feel knowing that you can get help if all your belongings are destroyed.

         9. What if cash becomes a comodity nobody wants? Some advice here would be to stockpile at least $250-$500 worth of coins. Nickels, dimes, and quarters. It would be wise to invest in some gold and .99 silver coins. Learn how to trade and barter so that if no one wants to take your cash, perhaps they will swap items with you. Learn the value of your items so you can know what you have to trade with. Develop haggling skills and frequent flea markets to see how this type of business is done.

         10. What if you were forced to retire today? This question is more for the seasoned readers. If you are getting up in years and the prospect of retiring is looming in the distance, you should be prepared for this life changing event. Do you have enough saved? Is your porfolio and 401k ready for the transition? Can you live comfortably for the rest of your life and what you have? If no, you have some serious work to do. For the younger crowd, start saving for retirement now.

         11. What if you could change ten things about your finances? What would they be? A learning exercise. Get a slip of paper, make a list, and then act on your desires. Things will never be different if you don’t get real with yourself and make a change. Start today. You are in control of your financial destiny.

         12. What if you could write a letter to yourself ten years in the future and ten years in the past? What would you say? Another training exercise. Write both letters and be honest. You might surprise yourself.

         13. What if your finances took a turn for the worse and you had to move to a smaller place? Prepare yourself for the possibility. This will help you figure out what’s most important to you. What items do you keep and take with you? What would you force yourself to leave behind? Honesty is the best policy would it comes to the future. You may at some point have to downgrade your life. Are you mentally and emotionally prepared for that?

         14. What if you physically lost the ability to work or care for yourself? Who would you rely on? How would you cope?

         15. What if you never took the steps to right your ship? Pretend you stayed a slave to debt. Pretend you kept living paycheck to paycheck. Pretend you never disciplined yourself to do better and to get ahead in life. Now imagine what the outcome of such a life would be. Look into the future, say around your retirement age. Are you content, living comfortably with money to spare? Are are you still working, maybe two jobs, probably for someone younger than you? Do you want to work until you die? It’s time to get your game face on and make whatever necessary changes you need to for a happy, successful, and secure future.

         16. What if you had to immediately come up with $5000? Could you do it? This is important to consider. Thing about ways you could raise immediate cash. Pretend you had no emergency funds or cash. What could you sell to raise money? How could you pull the funds together? Side jobs, donating blood, selling belongings, and even asking relatives for help might have to be considered. Are you prepared to do these things?

         17. What if you suddenly find yourself in legal troubles? It would be wise to always keep an attorney on retainer just in case. Find one with a cheap rate and make sure they are available when you need them. They might not be the best long-term lawyers, but for something immediate and brief, say perhaps a bail hearing, they will be handy to have just a phone call away.

         18. What if you find yourself in need of major home repairs? A water pipe bursts, flooding a whole floor; a beam cracks and part of the ceiling collapses; the roof starts leaking; the refrigerator stops working. These are all things that can and might happen. These types of things are exactly what emergency funds are for. Be prepared for the worst and you’ll never feel the stress of an unexpected expense.

         19. What if you had abslutely no calvary coming to the rescue? Say something horrible happens and you suddenly find yourself without friends or family, completely alone and without any assistance. Could you mentally cope? Could you financially survive? Do you trust yourself enough to fix your problems? If not, you had better start gaining the knowlede you need now. Learn how to write a check, pay a bill, obtain a loan, file an accident report, or keep a budget. There are somethings you need to rely on yourself for. Your own finances should be one of them.

         20. What if a friend or family member unexpectantly asks you for money? You should be financially wise enough to know whether you can afford it or not. If you can spare it, do so responsibly. Don’t over extend yourself or cut into your savings or budget. Only give if you have extra. If you can’t lend the money out, then learn how to honestly and politely tell them “No.” So often we put ourselves at risk to assist those we love. To be financially stable you have to learn when to not give in. This technique helps when dealing with children who want, want, want.

         21. What if you find yourself on the verge of becoming a new parent? This is a scary idea. Children are expensive. Especially in the first year. The best advice you can get on this matter is to save in advance and plan when to have your children. Use contraceptives and some form of birth control. Avoid unexpected pregnancies. Suddenly having another mouth to feed can be a daunting task. Don’t take it on unless you are prepared to deal with the consequences.

         22. What if the stock market crashes? This question is for my investment readers. You can read numerous nightmare stories onlne about investors who put all their money into one nest egg. For some stocks, for some mutal funds, for others a company 401k. You should never put all your money in one place. It’s good to expand and keep many options open. A person should have a diverse porfolio. Invest in stocks, put money into a 401k, have a retirement high-yield savings account, maybe get a few government bonds, or put cash into a CD. Physical investments are a good idea to. Gold and silver coins will always be valuable. Keep yourself spread out to avoid losing everything at once.

         23. What if you died today? Let’s face it, everybody is going to die. When don’t know when or how. So if this happened, are you prepared to leave your loved ones behind with a secure future? You should have a Will in place to delegate left behind real estate, finances, and belongings. Write “In the event of my death…” letters to everyone close to you. Tell them how you feel and leave them instructions. Be sure to leave behind access codes, keys, and the location of anything you might have kept tucked away. Get a life insurance plan so that your family will be financially stable without you. Make sure any health insurance, work documents, or financial options have the beneficiries clearly listed and defined. Don’t leave anything to chance. Tie up the loose ends now and rest easy knowing your family is taken care of.

         24. What if your bank starts charging for the use of a debit card? If you are with Bank of America, you might have already jumped ship. The news is full of other banks thinking of falling in line with the BoA $5 charge. The thing to remember here is that banks are hoping you will abandon the debit card and take out a credit card. Don’t fall for the trap. Recent law changes modified how much banks earn for debit card transactions. They make more money off of credit card transactions and interest rates. They want to charge you for the debit card to make you interested in credit cards. It’s a scam to make money in the dirtiest of ways. You’d be wise to either try to change banks or to just pay the fee and stick to using the debit card. $60 a year is a hell of a lot better than paying insane interest charges on a credit card every month.

         25. What if you won the lottery? We’ll end this post with a bit of fun. Get out a sheet of paper and just write down all the things you’d do if you won a megamillions jackpot. Keep the list tucked away somewhere. You never know, you just might get lucky someday.

Death To The Dollar

         The news is buzzing right now with an idea that’s been thrown around: getting rid of the U.S. Dollar. The paper dollar has long been a staple of our economy. Backed by gold and trusted virtually everywhere in the world, the U.S. Dollar has proven to be a fundamental importance to the American way of life. Sadly, there are those within Congress and the Federal Reserve who feel that paper money is becoming a burden and have begun circulating the rumor that perhaps we’d be better off without it.
         As a way to reduce the deficit, the Federal Reserve has made claims that making paper money is expensive and a waste of tax money. (Disclaimer: The U.S. Dollar is not actually made from paper, but for the purpose of my post I am calling it paper.) The Federal Reserve minted billions of gold dollar coins. Most of those coins rarely see the light of day, being kept locked away in the Federal Reserve. The prospect of doing a little house cleaning has got the Reserve jumping on the bandwagon of trading in the paper dollar for the coin dollar. But is this really the best of ideas?
         We have all felt the annoyance of having a pocket full of coins and sitting down in our car and having that change fall out and get lost, never to be seen again. Change is hard to hold on to. It can slip out of your pocket and be lost forever on the floor of a movie theater or the cushions of a restaurant booth. Most vending machines are not designed to take the large, thick dollar coins, but most all of them have paper money slots. Wallets, purses, and envelopes are all designed to functionally hold, protect, carry, and utilize the dollar bill. Just the sheer weight of a coin versus paper money and the thought of carrying clanking metal in your pocket is enough to deter anyone from being interested in this.
         Bills are convenient. They can be easily transported or mailed. They make any transaction a breeze. And there is nothing better than cold, hard cash when making purchases or trying to haggle a deal. Just ask anyone at a garage sale, flea market, or pawn shop. Bills come in the most popular forms of a one, five, ten, twenty, fifty, and a hundred. So this begs the question, if coins replace the paper, will a separate coin be made for each bill? If not, imagine converting fifty one dollar bills into fifty one dollar coins. Doesn’t sound very pleasant does it? If they do make a separate coin for each bill, how would we differentiate them from each other and from the other coins already in existence? What materials would be used and what president’s image would be utilized? Another thing that will have to be considered is the dozens of other coins we have already. Pennies, nickels, dimes, quarters, half dollars, golden dollars, all of these will still, presumably, be in circulation. Anytime we make a purchase, we will get a mountain of coins back as our -quite literal- change.
         If you stop and think about it, it would seem that all the time, effort, and money spent on this project wouldn’t be worth the miniscule amount of savings that are being claimed by the committee. First off, you would have to initiate some sort of recall for paper money. The sheer massiveness of trying to round up and trade in every paper bill in the world can’t even be fathomed. It’s an impossible task. Secondly, assuming coins would be made for each bill, then entire committees would have to be assembled to design each coin. Then materials would have to be gathered and actual coins would have to be produced. Another lengthy assignment. Lastly, after the coins are made, you’d have to get them into circulation. Banks would have to be converted. Every single store in the country would need to have their bills swapped out for coins. Considering the lack of appeal and interest in the already minted dollar coins, this all appears to be an idea that most businesses and consumers would not be behind.
         Another problem with coins is that they can’t be verified or traced. Bills have serial numbers and authentication strips that show up under black lights. A consumer can go online and trace the origin and recent purchases used with a bill in their possession. Coins have no verifiable imprints and include no serial numbers. One would assume that counterfeiting a coin would be much easier than a dollar bill. How does the committee plan to accommodate this huge oversight?
         The smart idea would be to do away with coins altogether. Make every sale an even dollar and then we can all stick to paper. The coins can be kept for collectors and personal minters. Whatever isn’t preserved can be melted down and used for other purposes. With the rising cost of food prices a pocket full of quarters hardly gets you anything in a vending machine anymore. Most individuals use bills for vending machines. A lot of machines have now been retrofitted with credit card readers making physical money a thing of the past.
         Coins are the most primitive form of money. Ancient civilizations used crudely stamped coins, misshapen and no two alike. A stack of coins will take up more space, with less worth, then a stack of bills. The Federal Reserve will be hard pressed to find any citizen who is happy to go along trading a hundred dollar bill in their wallet for a hundred bronze coins in their pocket. It’s impractical and burdensome. The committee tossing this idea around has cited various numbers about how much money it would save the government in the long run. Meanwhile the government continues wasting billions on Homeland Security initiatives in order to control and document every citizen. Billions more are wasted on foreign aide and unsubstantiated wars. Trillions are wasted on failing businesses who wouldn’t know an accountant if one applied for a job as CEO. Looking to the fringes of unimportant issues to save money is not the way to fix the ever increasing debt of this country.
         Nothing vital will be earned by trading in paper bills for metallic coins. In the long run, it will prove to be a horrible initiative and a taxing change. The U.S. Dollar may be declining, but there’s little evidence that China will be more accepting of a physical coin over a dollar bill. It seems more like swapping out a flat tire with another flat tire. The real issue is not in the dollar itself, but in the economy it’s trying to fuel. The economy and the politicians with their hands in the piggy banks are the things that need swapped out and replaced. Switching from a paper system to a coin system feels like a cheap ploy to avert everyone’s attention away from the fact that regardless of what the physical currency is, the U.S. Dollar -and the government backing it- aren’t worth a damn these days.

Dress To Survive

         We’ve all heard that old adage, “Dress for success!” Looking your best is, for most people, a subconscious event that occurs every minute of the day. We want to be perceived as successfully, or intelligent, or, for some, wealthy. There’s nothing wrong with dressing to look your best. For the modern day prepper, though, it’s wise to add a layer of practicality to your wardrobe.
         With the winter weather fast approaching, we are often too busy dealing with the holidays to concern ourselves with safety or even survival. As a child, how often can you remember your parents saying, “Just throw a coat on, we’re only going to be outside for a second while we unload the car?” You put on your Sunday best, which involves nice looking –but not weather ready– clothes, and pile into the van. Your parents, dare I say it, were right most of the time (there, I said it, mom). Usually, you wear a jacket just to keep you from getting covered in snow in the thirty seconds you have to leave the car and get to the front of a store or relative’s house. But what happens if that casual family outing turns into a drastic story for survival?
         If you take your prepping seriously, then you have to entertain the idea that anytime, anywhere disaster can strike. You have to be as prepared as you can possibly be for winter emergencies. Having warm clothes, a way to start fire, or even something as simple as a blanket can be the difference between life and death. Each year approximately 100,000 people freeze to death due to cold conditions. Of those, 70% ice and snow related deaths occur inside an automobile. Another 25% of those are people who’s car became stranded and they wondered out into a storm to seek help, but instead went to their deaths. The statistics don’t lie. Around 95% of winter deaths occur while people are away from their home and trying to get somewhere in their car. According to the Department of Motor Vehicles, approximately 10% of all accidents in 2009 were caused, at least in some part, by the snowy or icy road conditions. Starting to get the picture? Winter weather is nothing to play around with.
         When you are dressing to leave the house in cold temperatures, remember this motto: Dress to Survive, not to Arrive. It just might save your life. Sure, maybe a t-shirt and jeans and light leather jacket might be enough to walk to your car, and then get out of it at the end of your journey. But what if you lose control of your car? You hit a patch of black ice and your car swerves off the road and goes down a bank. All of a sudden, that t-shirt and jeans with a light jacket seems like a bad idea. Dress warm with thick boots (always check your boots for holes to avoid water getting in your shoe) thick socks, a warm non-cotton sweater (try wool, it will keep you warm even if it gets you wet), an undershirt, and pants that will help keep your body heat in. You might not be the most fashionable person in the room, but you’ll never have to worry about freezing to death. Even if it doesn’t seem that cold out, always take your coat, hat, gloves, and any other garments –scarf, ski-mask, etc– with you. If you don’t need them, then just leave them in the car. But never venture out without at least the bare necessities for winter weather. Remember, it’s easy to take layers off if you get too warm, but if you’re too cold there’s no way to make clothes appear out of nowhere.
         As always, keep your car winter ready as well. Check the fluids regularly. Keep emergency supplies in your car including, but not limited to: flares, a blanket, a lighter, can of burning fuel gel, case of water, food for a couple of days, emergency space blanket, extra pair of clothes, and something to give your wheels traction should you get stuck. A nice piece of cardboard, an old floor mat or rug, or maybe some snow chains if you can afford them. Know your area. If your state is prone is bad winter weather, you should make yourself that much more prepared. If you’ve lived there long enough, you know the annual routine of winter. Saying “I didn’t know” when a tragedy happens won’t be enough to save yourself or your family. Be aware that accidents can happen anytime, and they normally occur when you least expect them. Stay safe, stay aware, and most of all, stay warm.

         For more tips on staying warm if you get stranded, check out THIS article by Off Grid Survival.

Stocking Stuffers

         Christmas will be here before you know it. Generally buying presents for people is a fairly easy exercise. But filling the stocking can be difficult. It’s small and shaped awkwardly. So where can we find tiny gifts to fill this holiday tradition? Well, if you’re frugal and want to save money, you should get some free samples of everyday items and use those to fill the stocking. You can get perfume or cologne fragrance samples, handy travel items such as Emergen-C drink mixes or Shout wipes, or you can even get free food samples. These might not seem like the best ideas, but they are free and compact so you can fit them easily into the stocking. If you already have a few items for the stocking, these free samples will make nice fillers. Check out websites like AllYou.com or SweetFreeStuff.com or MyFreeProductSamples.com. I subscribe to several free websites and get emails once a day with all sorts of free samples. You can get coffee samples, energy drink samples, cookie samples, detergent samples, perfume samples; you name it and you can probably find it. So before you pull your hair out looking for something tiny and useful, check out what these free sample websites have to offer. But start ordering now as some companies take 6-8 weeks to deliver.

Financial Discipline

         Times are hard. Wallets are thin. The American family is struggling. Sound familiar? You’re probably one of them. The writer of this blog sure is. The news is filled with reports of families taking drastic steps to just keep their heads above water. A father dumpster dives for food and things he can sell to feed his family. The Occupy Wall Street movement has spread into protestors targeting the homes of rich people. Some of our very own citizens are so stressed by the lack of employment that they are considering moving to the other side of the planet just to find a job. And these are just things happening within our own shores. The once coveted U.S. Dollar is growing less valued which is in turn causing turmoil in the European market. Financial structures within a multitude of countries are all collapsing on themselves. Governments are weakening as the voice of the poor is heard ringing throughout every land. It seems the recession is not limited to just the Red, White, and Blue. We are all feeling the backlash of failing big business, government bailouts, and corrupt politicians.
         Incomes are down and the workforce is dwindling, even though most experts claim the recession is over. For a lot of the average, 40-hr-work-week employees, the prospect of financial security seems like a joke. Most people fortunate enough to have a job are working paycheck to paycheck, bending over backwards to try and make the ends meet. So what should we do? As a typical citizen, unfortunately, there isn’t a whole lot you can do to get the government in functioning order. Things are bad. It feels like no matter who we vote into office, the bottom line isn’t met and we still suffer. It can be overwhelming and daunting to imagine change on a nationwide or global scale. Instead, look within your own self for change. Just because the government is horrible with their money and bad at making financial decisions doesn’t mean you have to be. You can stop, right this moment, and move forward with a new focus on your money. Here is a simple set of guidelines to help add the discipline to your finances.

 

• Avoid Credit — A lot of financial advisers will hiss and moan at this. However, the economy has not recovered. The dollar is down, and interest rates are on the rise again. Cut up your credit cards, pay off loans, and do not take anymore credit out. Forget about your credit score for awhile. Pay off your debt, starting with the smallest sum and keep going until you don’t owe a thing to anyone. Right now you want to get out of a debt and save up some cash. It might be wise to invest in long-term, high-value items as well. Purchase some pure silver and gold coins. Stock up your pantry with foods and supplies that have long shelf lives. Don’t follow in the government’s footsteps and continue increasing your debt. Stop borrowing, stop owing, and be self-contained. Save up for big purchases. If you can’t afford it, you don’t need it.
• The Golden Rule — You need to go back to the basics of finances: spend less than you make. It’s that simple. If you over extend yourself, you set your whole financial picture up for failure. Another golden rule to follow is to save 10% of your income. Regardless of how much you make, every time a paycheck comes in, put 10% away and save it for an emergency.
• Cut Wasteful Spending — There are huge lists of things you can do to save money. Just doing a Google search for “Ways to Save Money” will get you a hitback of 28 million pages. You can save money on your grocery bill, on the utilities, on car maintenance; any and every possible aspect of your life probably has a list to cut back spending. Cook at home and pack your lunch instead of eating out. Maintain your oil and tire pressure to lower the frequency of needing gasoline for your car. Purchase generic products at stores instead of name brands. Look for sales and coupons in weekly advertisements. Keep a budget and stick to it. Make a list of everything you spend for a month and then examine the list for areas you need improvement. Just by making several small changes in your spending, you can save hundreds –if not thousands– of dollars a year.
• Avoid Life Changing Decisions — If you are in financial hardships, be honest with yourself. The economy isn’t getting better anytime soon. Now is not the time to have a child, adopt a pet, buy a house, or take a lease out on a car. Put those types of plans back on the shelf for a year or two. Give the country time to bounce back and make sure you get your own finances in a stable place. If you are already in debt, big life changing decisions will dig you in even deeper.
• Make Substitutions — If you are used to constantly going out or spending money on things that would be considered wants and not needs, then it’s time to buckle down and make some tough decisions. There are lots of places out there with cheaper or even free ways to still continue doing the things you love. There are $1 movie theaters out there. Libraries are a great place to borrow movies, cds, and books for free. Museums are constantly doing free admission days. Public parks and hiking trails are generally free. If you are use to paying $100 a month for cable, try switching to a service like Netflix or Hulu. You can save hundreds a year while still getting all your favorite shows. There are substitutions out there for virtually anything. You just have to want to save money and be willing to put in a little time to do a bit of research.

         Financial discipline is your own responsibility. The government and big banks want you to make careless mistakes. They grin from ear to ear when people come in to request a big loan. The government wants you spending what you don’t have so they can take what you don’t own and use it against you. It’s a cat and mouse game and sadly the consumers are the mouse. This isn’t a Tom and Jerry cartoon either. In the current state of economic depression –let’s call it what it is, we’re all depressed– the government is pouncing on people in debt. Free yourself from the cycle. Relieve the stress of high spending expectations. You don’t have to have an 800 credit score in order to be happy. You don’t even need a credit card to be happy. By unlatching yourself from the chains of debt, you relinquish the fear of the unknown. You take away the strength of the fear of losing your livelihood. Empower yourself and your pocketbook by disciplining your finances from this point on. The government doesn’t have any bailouts for ordinary citizens. Don’t count on assistance and don’t follow the example of big corporations. If the government and big business knew what they were doing, the country wouldn’t be in dire straits. Best of luck and remember that anybody can change for the better. You just have to be willing to accept change.

Winter Auto Checklist

         We are just about midway through September. The end of the year causes time to fly by at an alarming rate. And although most of us don’t want to think about it, it doesn’t change the fact that winter is soon upon us. So today I’m going to leave you with a checklist of things you want to make sure you do with your vehicle in order to prepare for the bitter cold and, possibly, a stranded situation. Here is a checklist to prepare your car for Old Man Winter:

• First, be sure to check your alternator and battery. I believe AutoZone will still do this type of test absolutely free of charge. Have them run a diagnostics and determine if everything is good to go. It won’t take but five minutes of your time. If there is a problem, correct now before you get into your car and have to go through the gut wrenching feeling of despair when you hear the silence of your engine not turning over. Also look around your battery for corrosion or rust. Clean with a steel wool scrub pad if any is spotted. If the damage is too severe, replace the cables.

• Be sure your tires are in good working order. Check the tread and air pressure. Cold air can cause air to leak and under-filled tires can be dangerous in even clear conditions. Don’t get stuck out in the open with bad tires on an icy winter road. Speaking of the wheels, might be a good time to get your brakes checked out and okayed. And don’t forget your spare. Make sure it’s filled with air and in good repair.

• Check your wiper blades and ensure they have a good tread too. If it’s heavily snowing or sleeting, you want to be able to keep visibility as high as you can.

• Keep fuel in your car. This seems like a no brainer, but a lot of struggling families may only put enough fuel in the car to get them through the week. This is dangerous. If the gasoline gets too low in your vehicle it could freeze the entire line and then you are in for a world of expensive repairs. Keep your gas tank at least half full at all times. And try using some Heet water removal with every fill-up to help cut down on the risk of freezing fuel.

• Another good idea is to maybe have your radiator flushed and filled. Most oil change places will do this for $40-$60. Get some fresh antifreeze in your car to make sure the engine is protected from the bitter cold.

• Test your heater BEFORE it gets cold. Nothing worse than firing that heater up for the first time and getting cold air. Make sure your heater works, and works well. It could be the difference between life and death. Ensure that your defrost works in both the front and rear windshields.

• Another cheap, helpful preparation you can do for yourself is replace your current windshield washer fluid with winterized fluid that will help melt snow off your windshield.

• Check all exterior vehicle lights to make sure they are functioning properly. Replace any burnt out bulbs. If visibility gets bad, being able to see your lights might keep another driver from plowing into you.

• Lastly, once winter hits and the snow falls, salt trucks will be out in full swing. Keep in mind that salt eats at your cars exterior. Be sure to get a car wash every once in awhile during the winter to avoid any damage to your car’s body.

         Next I will discuss some items you might want to consider keeping in your car in case of an emergency situation that leaves you hunkered down and isolated out in the cold with only your stalled car to protect you. There are some items that are essential to avoiding hypothermia, frostbite, exposure, or starvation. Here’s is a brief list of need-to-have items that no winterized car should be without. Add to it for your specific needs. You may also consider doubling or even tripling quantities if you live in a specific bad winter weather area.

1. Warmth – This is by far the most important consideration for winter. Cold exposure can kill you faster than you might believe. Make sure your car has emergency blankets, a thermal blanket, and if you have room try to keep an insulated sleeping bag in the trunk. Get a thick, warm change of clothes and change of shoes to keep in a bag in your trunk. If you happen to be out and get soaked with freezing snow, a quick change of clothes could save your life. Keep an extra shirt, sweater, pants, underwear, thermal socks, sweater, gloves, hat, ski mask, scarf, and boots rolled up in a bag (or in the above mentioned sleeping bag). Keep an emergency candle, waterproof matches, a lighter, and a can of cooking fuel in the trunk. Get some hand warmers (these are insanely cheap at Walmart for a mere $.50 and can stay warm for up to five hours) and keep them in your glove box. Might also be a good idea to have a flint firestarter around (this should already be in your car’s normal emergency kit). Starting a fire might be your best chance of survival should you need to abandon your vehicle. A couple flares is always a good idea as well.
2. Food and Water – You can go a pretty long time without food. Maybe even longer than normal in cold conditions because your body tends to slow down in the winter. But everybody needs water or we perish pretty darn quick. Keep some granola bars and candy in your glove box. Get a couple of MRE’s and bags of jerky and keep them stored away. If it stays really cold all winter, you could even throw a cooler in your trunk and store cold meats and other refrigerator foods inside it. Keep a small cooking pan in your car too in case you need to melt snow to drink (never eat cold snow for water as it uses too much energy for your body to reheat and digest it). Keep a couple gallon jugs of water or maybe a case of bottled water in your trunk.
3. Flashlights and an emergency weather radio are a must to ensure your survive an emergency. Get a hand crank radio and maintain the batteries in your flashlight.
4. I’d recommend getting a battery starter and keeping it in your trunk. They sell giant types that can be recharged at home and connect directly to your battery, or they sell smaller compact models that work through your cigarette lighter adapter. Be sure to take this out every few nights and recharge it. Also be sure to keep a handy pair of jumper cables in your trunk. These are relatively cheap and can save the day.
5. Get a vehicle charger and spare battery for your cellphone. Keep your cellphone’s battery charge above 50% (treat it like your gas tank!) and be sure you always have it with you. If you are trapped under a snowbank it can be used to make emergency calls or help the authorities locate you. A dead cellphone never did anybody any good.
6. Put some spare cash in your glove compartment. Maybe $100-$200. That can be your “just-in-case” fund. If you break down in a strange town, it might keep you functioning (hotel, food, taxi cab) until someone can come pick you up. Also keep a roll of quarters in your car for vending machines and pay phones.
7. Keeping some cardboard and a bag of salt in your trunk can help get your wheels out of a rut. Without traction you could just spin over ice and never get any where. Better safe than sorry.
8. Keep some de-icing spray and an ice scraper in your car. Can’t stress the importance of this enough.

         Prepare now, while the weather is warm and you can get everything stowed away without your fingers going numb. Being prepared may be the difference between staying warm and getting frozen. Just one simple thing tucked away can save your life, your limbs, and your car. Prepare yourself for the harsh reality that yes, it can happen to you. Plan ahead and come out with your livelihood intact.

Government Bonds Poll

Empty Wallet, Empty Stomach

         Today I noticed a sign posted on the vending machines at work. It stated that on September 10th, the price of sodas would be going up. The sign stated that due to the raising cost of food and labor that they had no choice but to raise the prices. I’ve read articles about the ever increasing price of food and the diminishing quantities of food you’ll be getting -basically paying more for less. And although I’m sure the grocery store has slowly been shrinking boxes and raising prices, this was the first time I really took notice of it affecting me on a personal level. Hard times are coming to this country. Soon riots won’t be fought over winning Championship teams or police brutality. Someday in the near future people will rob you for food and water. Desperate times make desperate people. Corporations are running on fumes. The status quo has to change. They’ll begin it by laying off workers and closing factories. That much we’ve seen already. After that, they’ll stop trying to make fresh, healthy alternatives and just process everything to sell you void, nutrition-less products. This has been the norm for years now. Then they’ll give you less of their product but charge you more for their services. Your dollar won’t stretch as far. Your food won’t last as long. Eventually this will all lead to people stealing and killing one another. If you are a prepper, you are already somewhat in the mindset of expecting this. If you are not a prepper, than I would strongly recommended preparing yourself and your family. Store long term food and water. Begin hoarding foods with long shelf lives. Sometime in the near future food and water will become a scarce commodity. So how can you prepare for the worst?

Stockpiles – Everyone should be prepared for long term emergencies. Regardless of the price of food or the possibility of food shortages, in the event of a long term catastrophe – such as earthquake, hurricane, tornado- it’s vital to have food on hand for you and your family to survive off of. There are tons and tons of products out there with five year shelf lives. Get them and stockpile away. Start off with a 72 hour pantry. Have enough food and water for your family (and pets!) for three days. Once that is accomplished, slowly grow that number out. Increase it to a week, then two weeks, then a month. Slowly over time, try to at least get up to six months worth of supplies. But keep in mind that every once in awhile some products need to be used and replaced. Check expiration dates once a month and keep track of when things may go bad. No sense wasting money by letting things spoil. Some foods that last a long time are military MRE’s and numerous canned goods. Several companies sell safely sealed five year water supplies. Try to avoid dehydrated foods as they will consume vital water supplies in order to properly eat them. Be sure to store goods such as sugar, salt, spices, cooking fuels, grains, flour, and multivitamins. Your favorite foods might one day run out, build up your supplies now and prepare for the long haul.

Gardens – Growing your own fruits, vegetables, and herbs will be extremely vital in order to survive a catastrophe. Not only that, but if food becomes scarce, you will have your own organic, fresh supply on hand. Be sure to do some research and find foods that are symbiotic to your landscape. It will be a waste of time and money if you try to grow something that isn’t native to your soil. Also learning how to can goods and salt meats will help you preserve and stockpile fresh ingredients throughout the non-harvest seasons. Experiment with it now, before it becomes a way of life so that you can build your confidence and skills for the real deal. Start small: perhaps a small collection of herb pots on the window sill. Grow something, keep it alive, and use it for cooking. Once you become aware of how to tend for smaller plants, branch out and start growing larger things. Once you really get the hang of it, start a garden. Instead of paying someone else for their labor, learn to do it yourself.

Homemade – One of the best things you can do for yourself is learning how to take raw ingredients and turn them into your favorite foods. We’ve all grown accustomed to purchasing prepackaged, already cooked foods from the store. But how many of us could make a loaf of bread from scratch and bake it to a golden crust perfection? Learn how your favorite foods are broken down. What are the main ingredients? What happens if you forget one or use too little/too much? Find alternatives for cooking without a stove or a microwave. By learning to cook and bake from scratch, you can save yourself hundreds of dollars in grocery bills. And you can stockpile long lasting ingredients to be combined and cooked later. The best possible example I can use is bread. You can’t stockpile bread. It goes bad, turns moldy, and decays at a fairly rapid rate. However if you know how to make bread, you could stockpile flour, water, wheat, grains, and all other pertinent ingredients, then you’ll be able to make fresh bread any time you please. If you know how to make casseroles, pies, bread, noodles, catch and filet fish, or hunt and skin wild game you’ll be able to provide for yourself if the worst case scenarios come true.

         The cost of food is only going to go up. Unless humans somehow evolve to need less water and nutrients, our daily requirement isn’t going to diminish any time soon. We all need food and water. It is as necessary to our survival as air. Keep an eye on the things you buy. Pay attention to trends in prices and volume in packaging. Be aware of what you’re getting for what you’re paying. If it starts to get too expensive, stick to the basics. Fresh produce, lean meats, no empty, sugar-filled foods. The only person concerned about what you are eating is you. Take care of yourself. The big processed food companies are only worried about the margins and profit.

The Flip Side

         Today my office went out for lunch for one of our employee’s birthday. My boss drove us and we rode in his very nice Chevy Malibu. The car is beyond comfortable. Very clean and loaded up with a bunch of extras. XM radio, customized seat temperatures, OnStar, you name it. The car made me feel envious. I am still driving my car from 2003, a little Honda Civic. It’s got a giant crack in the windshield, a scratch on the left side that’s starting to rust, small cracks on the right side that have already rusted, a somewhat deteriorating interior, a long stain on the hood from battery acid, and a bungee strap underneath that holds the protection cover for my exhaust in place because it rusted off and was dragging on the ground. My boss’s car made me wish I had something newer. But then he and another co-worker started talking about his car payment. And she started talking about how she just refinanced her lease. And I had to smile to myself. My Honda is a little run down, sure. It’s old, not flashy, leaves much to be desired, but it’s reliable. It’s good on gas. And most importantly I own it; bought and paid for, with a title in my safe. See that’s where we all get caught up in the rat race sometimes. We see the shiny things other people have and it makes us jealous. It forces us into desperation where we make decisions we wouldn’t normally make. I could have easily got swept up in it all and gone out this weekend to get a new car. But when I stopped and thought about it, I realized I don’t need a new car. My Honda is my own. I know what each little scratch and dent is from. My car is me. I’ve never broken down with my car. Never had to spend a fortune repairing anything. And the only money I spend on it is gas, oil changes, and preventative maintenance such as replacing the air filter, belts, or battery when it needs it. Sure, my boss is a few months younger than me. And he dresses very immaculate. He has a house and a brand new car. I’m sure his girlfriend is beautiful as he has mentioned dating models before. But what is the price of all that? Something else he has that I don’t is a mountain of debt. So I sat back there in his backseat in my blue jeans and t-shirt and just had to shake my head at myself. Not all that glitters is necessarily gold. Don’t strive to be like The Joneses. Just strive to be the best you possibly can be within your means. And always keep in mind that looks can be deceiving. Sure someone may appear to have the perfect life, but you don’t know what they do when they get home. You don’t see the stack of bills, the maxed credit cards, or the phone calls from past due accounts. Be thankful for what you have and never underestimate the value of owning your things without letting them own you.

Productivity Boost

         ”No great achievement is possible without persistent work.”, so says Bertrand Russell. And it’s very true. Everyone expects life to hand them ease and luxury on a platter and that it’ll be served in exactly the flavor they want. But for those of us with feet planted firmly on the ground, we know that isn’t the case. If you want to succeed, you have work increasingly hard at it. You have expect and accept failure. You have to learn to pick yourself. You have to push on. You also need to keep a clear picture of what it is you really want. You need to keep your goals organized and your To Do List constantly updated. Know what you want to do, but keep in mind why you want to do it, and be sure to track how you can achieve it. What is your end game? What is the ultimate goal of your goals? We can all sit around daydreaming and wishing on a star, but a truly successful person is organized, constantly in motion, and always thinking three steps ahead. But how do we accomplish this? It’s simple really. Just get yourself a Never Ending To Do List.
         I came up with this concept earlier today when I thought of some really important things that didn’t really fit the structure of my to do list for today. So here’s what you do: Get a notebook, of any size you choose. On the outside cover, merely write The Never Ending To Do List. Inside that notebook write down everything thing you need, want, have to do. Don’t date anything, don’t prioritize (at least not at first), and don’t put anything in any particular order. Success doesn’t come in one swift event. It happens through tiny baby-steps. You have to skip the stone several times across the water to reach the other shore line. Figure out what your goals are, what your intentions are, and then write down everything you need to do to secure your future. It can be small items, such as getting business cards. Or it can be a grand gesture, like hiring an agent to handle your affairs. Don’t limit the book to just your career dream, though. Make the to do list for all of your life. Finances, family, friends, retirement, goals, dreams, ideas, health, etc. Anything you need to accomplish in order to become the best person you can and should be needs to be listed.
         When you think of a new To Do, write it down in the notebook. Don’t back burner it in your mind (Or worse! Forget it entirely!). Write it down where you can see it. Let it become a real goal that you have clearly declared. Keep track of your comings and goings. Unfetter your mind and let a simple piece of paper keep you motivated and aware of what you need to do next. If you accomplish a goal, put a thin line through it. You’ll slowly start to fill the notebook up with finished tasks. Start off small, with easy goals that you can finish quickly. The success of the smaller goals will snowball into greater success with bigger tasks. As you become more comfortable and you get into a routine of using the notebook, you can then start experimenting with priorities. You can change the color of your ink; use red for my important, higher priority To Do’s. Use a highlighter for high catching tasks that need to be finished quickly. Use the margin to fill in dates next to time sensitive tasks. It’s important to never lose focus on what you need to do for yourself. Most To Do Lists are short and simple, written daily, and then discarded at the end of the day. But the steps we take towards our security in happiness aren’t done in a day. It takes a long line of hard working, organized, and focused days to accomplish what we want. Nobody else will keep track of your life. It’s up to you to pay attention to what you are (and aren’t) doing to realize your dreams.

Hopefully yours is far more complex than this.

Teach Your Kids About Finances

         Kids aren’t dumb. They pick up on subtle, hidden messages behind everything you do. If you are open with them, it can help them learn about life and better prepare them for their future. Despite how independent they act or how many times they tell you that your wrong, children actually learn by example. They will watch what you do and say. And they will act in just that way as they get older. Be honest with them, and let them read you like an open book. Be frank about finances so that they can mimic your success and avoid your mistakes. Teach them about savings, budgets, credit cards, and other types of debts. Teach them not only how to acquire money but how to appreciate it and use it wisely. If you lose your job and the whole family needs to tighten their belts, be honest about it. If everyone is on the same page it helps to cut down on stress. There are many things I wish my parents had taught me about finances. It took me 27 years to learn things the hard way. If I had someone showing me the ropes early, I might not have had such a mess to clean up.
         So what should we teach the next generation? Well, presently, we more than likely do not want them to learn anything from the government. These days it seems that if you are big enough and fail hard enough some government official comes in with a big, million dollar check to bail you out. But we all know in the real world that doesn’t happen. As a citizen, if you fail, there are dire consequences. You can lose you car, your house, your livelihood, or even your marriage and kids. If Wall Street and the collapsing auto and real estate industries show us anything, it’s what NOT to do with your finances:

         *Don’t Lie To Yourself – Be completely honest with yourself about where you stand financially, and be realistic about where you want to be in a year, five years, ten years, twenty years. Don’t sugar coat the reality. If you are in debt, say it out loud to yourself in the mirror. Make your financial problems (or successes) something solid that you can wrap your head around. Get out paper and keep track of your expenses. Write it out, talk about it with someone, just to give it real structure. The auto and real estate companies inflated themselves and lied to everyone about what was really going on. When the truth finally came out, the entire economy suffered tremendously. Don’t kid yourself into thinking your worse or better off than you are. Be truthful about your money so you can get a clear picture of what you need to do or not do.

         *Dumping Money On A Problem Doesn’t Fix It – Sometimes people get in way over their heads. They get into debt up to their eyeballs and can’t make heads or tails of what steps to take to recover. They do desperate things such as taking out loans or transferring balances to new credit card accounts. But this doesn’t solve the immediate problem. It only compounds the interest you are paying and increases the amount of debt you own. It is never wise to use debt to try and get out of or cheat another debt. The auto and real estate industries basically imploded. Stocks plummeted, the markets crashed, and the American people suffered. But instead of changing laws, and putting policies in place to protect American citizens, the government just threw billions of dollars at both industries. The result? A bigger government debt that shows absolutely no signs of decreasing, a terribly long recession that indicates a slow road to recover, and cars and houses that nobody wants from companies still not making any money.

         *Wasting Money On An “Expert” Is Just That: Wasting Money – Don’t overpay someone if they are doing a dismal job of running things. In fact, avoid hiring them at all. You wouldn’t pay a plumber $10,000 to fix a leaky toilet and when he left it leaked even worse than before, right? Well that’s basically what the auto companies did. CEO’s were –and still are– paid millions of dollars to pretty much run their respective companies into the ground. Once the industry collapsed, dozens of CEO’s took leave, taking with them millions in severance packages on top of their ridiculous annual salaries. No penalties were issued, no one was fired, and amazingly nobody was jailed over the entire ordeal. The CEO’s just took as much money as they could, bailed out, and left everyone to worry about themselves.

         *When You Panic, You Make Irrational Decisions – When the curtain was pulled up and all the variables were shown, the government just about lost its mind. Officials saw what was there, realized that a potential collapse in infrastructure was on the horizon, and they made what in retrospect was a drastically bad decision. Instead of taking the time to think about the problem and come up with logical solutions the government, for the most part, went with the first idea that came into it’s head. They started writing checks they couldn’t cash made out to bankrupt companies who had a free rein with the funds but had absolutely no idea how to manage money correctly. In a cruel twist of irony, the government issued billions of dollars without keeping an eye on things, and the companies just went on failing as they had been for years: wasting money, over paying unsuccessful leaders, and investing in erroneous revenue policies. If you get into a financial emergency or find yourself obtaining a sudden debt, don’t immediately jump to attack the problem. Take a deep breath, sit down, and calmly get the facts straight. Figure out what happened, solutions to fixing it, and how you can avoid the mistake in the future. If you dive in too soon, you can find yourself reeling, caught off guard, and digging yourself an even deeper hole. Keep yourself in a rational frame of mind. Identify each pro and con, then and only then make a plan to act.

         Those are just four examples of what big auto, real estate, and the U.S. government taught us. I could make the list go on and on, but I’m sure we get the point. If we set our children up to take over our debts and continue running the same rat race we do now, the economy is just going to get worse. It’s time to change the course and raise a generation of intelligent, savvy, and rational economist who make the best decisions with their money. Before your children become adults you should try your best to teach them the smart things to do for financial security. Here’s a list of my top ten things all kids should know before they are ready to trek out on their own.

 1. You aren’t owed anything. No one is going to hand you anything. Nothing is deserved. If you want to get ahead in life and become financially secure, you need to do it yourself. You have to work hard, save frequently, and spend frugally. You are responsible for your future. Don’t expect handouts, and certainly don’t begrudge someone their success. If they seem happy, 9 times out of 10 they worked their butts off to get it. You should do the same. Don’t be surprised if life constantly throws you lemons. Just be prepared with sugar and water.

 2. Don’t be average or normal. The average, “normal” American has mountains of debt. The only reason being buried under debt doesn’t seem bizarre to people is because most tend to think that in order to be happy you have to get things on credit. Avoid debt like the plague. Going into debt is pretty much like getting cancer. It slowly eats at you and your money, especially with high interest rates. Don’t stumble into the pitfall of taking out loans and credit cards. Don’t take on payments you can’t afford. Debt is no good. Save your money and try your best to pay cash for everything. Struggling to make ends meet is not normal! Don’t believe the hype that to “fit-in” you need to have a car payment on a Mercedes.

 3. Save, save, save. First, save for emergencies. Second, save for your future. Third, save for yourself. Bottom line, save as much as you can whenever you can. At least 10% of every income you receive should be saved. If you can do more, do it. Allow your savings to grow. Become secure with your money. Save for a worry-free retirement. Anybody can go waste their money on junk. But strong-willed folks know the value of “a penny saved is a penny earned.”

 4. For big purchases, ask yourself some important questions. Whenever you decide to buy something that costs more than $500, you need to stop and interview yourself about the item. Do you need it or do you want it? Can you really afford this item right now? Are you getting this on credit; and if so why aren’t you saving up and paying cash for it? Will the purchase of this item hurt your ability to pay bills or put food on the table? What kind of value will this add to your life? Obviously, if the answers to these questions are negative, it’s probably not a wise idea to waste the money. If you decide this item is worth your money, and you are 100% sure you want to buy it, wait on it. Think about it for 30 days and then buy it. Avoid making impulse buys as they generally tend to be for rarely used or eventually discarded items that in the long run waste your money.

 5. Give yourself a K.I.S.S. There’s a fundamentally easy acronym to use in all aspects of your life. The word K.I.S.S. which stands for “Keep It Simple, Stupid.” Live within your means, save as much as you can, don’t surround yourself with junk that you don’t need or never use. By keeping everything simple, you remove the clutter. Whether it be with your finances, your home, your job, or your relationships. Keep yourself organized and take your time. Don’t stress, but get the job done. Work efficiently and limit the excessive lifestyle.

 6. Always continue learning and growing. As you get older, never stop trying to learn new things. You can save a lot of money by learning to do things yourself. Take classes, read through DYI websites and how-to videos, and check out books from your local library. By having numerous skills you can save thousands of dollars in your lifetime by being able to fix things yourself. Learn to be self-sufficient. But be weary of taking on projects that are beyond your means. If you are unsure or it seems dangerous, call a professional in.

7. Appearances aren’t everything. A lot of times, as kids go through middle school and high school, they start focusing on the wrong things. They start wanting the best things in life because they want to be cool and fit in. They surround themselves with what, at the time, seem like the “popular” kids. They idolize all the things they have and how they seem to have the “perfect” life. Sit down with your kids and talk to them about mortgages and car loans. Explain that those cool kids probably come from a family who is swimming in debt. Not owning anything you have is not the perfect life; that is merely a debt slave life. Show your kids that although you may not have the most expensive, newest items, the things you do own are all yours and nobody can come and repossess them. In the long run, your kids will appreciate you being involved with their life more than never having you around because you have to work two jobs to pay off the enormous car loan. Teach your children about judging quality of character, not quantity of items, to enable them to surround their life with respectable, caring, and smart people. Teach your children to not be shallow and possession hungry. Keeping up with The Joneses is a never-ending marathon that nobody can win. If you spend your life trying to acquire wealth and luxury items merely to impress others, you end up living a pretty miserable existence.

 8. Although your credit score is important, your identity is even more valuable. Be sure to always protect yourself. If you have to get involved with a loan, credit card, or mortgage, don’t allow yourself to be suckered into scams or frauds. Keep your name, birth date, and social security number protected at all times. And only give that information out to verified, insured companies. Shop around to find the best interest rate. Don’t just jump into a low limit, high interest credit card. When dealing with debt items, always keep in mind how signing that contract will affect your credit score. Be sure to check your credit score annually and report any errors immediately. There is nothing worse financially then having someone else ruin your credit by posing as you. And always be aware that your credit score is just that – credit. Credit is a debt; borrowed money. Your credit score is just how much debt you can obtain. It’s not as important as you might think.

9. Retirement is the end game for everybody, so start saving for it as soon as possible. Every child needs a checking account to learn about managing money, but they should also have a savings account to learn about tucking funds away. Help your children learn about the cost of living as they get older. Teach them what to expect when they get into their old ages. Give them the knowledge they need to start saving at a young age so that someday they can retire earlier. Talk to them about your own retirement accounts and your plans for the twilight years. Be honest about the possibility of social security not existing. And definitely make sure you explain all types of retirement accounts as well as the fees, taxes, and government rules for each one.

 10. Lead by example. Your greatest concern as a parent should be your child’s future. And despite how much we try to protect them from the dangers of the world, a lot of times we fail to protect them from our own mistakes. Children are very impressionable. They emulate you because secretly you are one of their biggest heroes. They want to be just like you when they grow up. So don’t smoke, don’t drink excessively, and be honest with your children. If you can’t afford something say so. If an item isn’t in the budget, explain what a budget is, how it works, and why what they want isn’t in the budget. Enjoy the simple things in life. Interact with your children. Teach them about finances, about manners, about love, about respect, and about all the wonderful things in life. Mold them to be free-spirited, intelligent, and financially responsible. It may not change the world, but it’ll give you peace of mind that a least you are breaking the norm and raising a child who won’t waste their time and money. Work hard and expect your kids to do the same. Don’t tell them what to do, show them what to do with your own actions. Give them the knowledge and watch them surprise you.

They hold our hearts, they hold our future.

5.8 DC Earthquake

         The news has been a buzz this week with stories about the recent 5.8 magnitude earthquake that hit the eastern coast of the United States. It was the first earthquake of it’s kind in that area since the 1800′s. Following up this earthquake a massive hurricane named Irene is coming violently to that same coast line. This is a prime example to show you that disaster can strike any time, any where. And it doesn’t necessary just stop with one event. In less than a week, a region was hit with an earthquake and then a hurricane. Mother Nature doesn’t wait for you to be prepared. The unexpected can hit at any time and can be layer after layer of tragedy. It’s better to have a kit and a plan but not need them than to get overwhelmed with disaster and have no measure of personal assistance in place. I’ve said it before, but I’ll repeat as often as possible: THE GOVERNMENT WILL NOT BAIL YOU OUT. If you expect for FEMA to ride in on silvery manned white horses baring gifts of food and water and clean clothes, you seriously need to reevaluate who you vote into office. The government can not save us all. And as Hurricane Katrina showed us, sometimes no one is coming. This earthquake hit the DC area. What if it had crippled the government? Taken down the White House, killing hundreds of our leaders? Then if Hurricane Irene hits Florida and causes devastation, who’s coming to the rescue? Nobody. You need to prepare yourself and your family. Today I’m going to be discussing some earthquake survival tips. You might think the area you live in is immune to such things, but the entire crust of the earth is under constant pressure. At any given moment tectonic plates can shift causing tremors, earthquakes, or even sinkholes. Although you might not live right on a fault line, a powerful earthquake usually includes tremors and aftershocks which can ripple out for hundreds of miles.
         The most important thing to remember during an extremely violent earthquake is that your home gas and/or electric power as well as your water need to be shut off. Know how to do this and do it immediately. If there are downed power lines, your home line may be prone to surges that can electrocute you and fry your electronics. Powerful electric bursts might also make things such as computers and tv monitors explode. Play it safe and turn your fuse box off. If an underground gas main is ruptured during the quake, this can cause enormous amounts of problems. Leaking gas is toxic and can asphyxiate you, your family, or your pets. If a spark connects with leaking gas it can cause an explosion that could easily kill you or potentially start a fire. Water mains can flood or become contaminated. It’s vital to your survival to keep your cool and to shut these things off before doing anything else. Especially shut off the grids if you have to evacuate. No one wants to come home to a burned down house or to a house full of useless electronics.

The U.S. Earthquake Zones

         The picture above is FEMA’s graph of hotspots for earthquake activity. But just because you live in a zone outside of the deadlier zones doesn’t mean you can’t be affected by tremors and aftershocks. If you happen to live in a highly active earthquake zone, there are several things you can do to prepare prior to an earthquake strike.

• Make sure you have plenty of food and water stocked up. In case the roads are badly damaged, aid might not be able to reach you. Have enough food to take care of your family. And don’t forget your pets! They need to eat too. FEMA recommends that the average adult needs at least 3 gallons of water per day for survival and hygiene. This amount can fluctuate depending on age. Plan accordingly.

• Be sure to have a solar powered or hand crank emergency radio to keep you in the loop with what’s going on. This is especially important if a bulletin is released that your area needs to evacuate.

• Prepare your home by making it sturdier and more durable in the event an earthquake happens. Suggestions usually range from securing bookshelves to wall studs and getting strong latches for cupboards to strapping water heaters down securely and moving heavier items to lower storage areas. Avoid hanging pictures or other decorations over your bed.

• Make a plan in advance. Find a secure space in every room in your home where you can drop down low without the risk of something falling on you. Train yourself and your children for survival.

• It is also recommended that you keep flashlights and dusk masks stored ready for use. An earthquake can leak all kinds of dust and dirt into the air. A mask can help you avoid trouble breathing, allergens, or even asthma attacks for those who suffer from them.

         If you suddenly find yourself in an earthquake scenario, take steps as quickly as possible to keep yourself safe. If indoors, get under a strong table or desk to avoid anything falling on you. If you can’t find anything to hide under, try to get in an interior doorway and brace yourself against the frame. Only do this if you are sure the frame is secure and won’t collapse on you. Be sure to avoid bookshelves and other furniture that can fall on you. Try to get away from windows and be prepared for fire alarms or even sprinkler systems to go off. Most importantly, do not panic. Most earthquakes do not last very long. Hold out, keep your head protected, and try to ride it out. If you are outdoors and on foot, get to a clear space, away from buildings, trees and especially power lines, and get down on the ground. Wait out the tremors. If you are driving, pull the car over in a safe spot away from anything that could potentially fall on you. Stay in the car and wait out the quake. Again, try to keep a rational head, keep yourself protected and wait it out. Whether indoors or out, find a secure spot where nothing can fall on you and wait until the earthquake is over. Statistically most fatalities during earthquakes don’t happen from ground movement. Most people are killed because of falling debris or collapsing buildings.
         In the event you find yourself trapped under debris there are some important guidelines to follow to ensure your survival. First, assess yourself. Can you wiggle your toes and fingers? Is your breathing impaired? Does anything hurt? Are you bleeding? If you find yourself in good working order but simply trapped, try to find a light cloth to cover your mouth and nose with to avoid breathing in dust and debris. The universal “Help Me!” signal is a set of three. For someone trapped, you should find something large that makes noise, and hopefully vibrates, and tap it three times. It doesn’t have to be continuous, but every 30 seconds to a minute, tap three times to let rescue workers know you are trapped. Do not light any matches as there may be a gas leak. Try not to move too frequently and cause dust to kick up. Stay calm and conserve your oxygen. Most importantly, do not try to dig yourself out. You have no way of knowing what’s above you and a shift in debris could cause the entire structure to collapse completely on top of you.
         If an earthquake strikes and you are fortunate enough to be prepared and not get trapped under debris, immediately get your family outdoors. If the integrity of the building you are in has been compromised, it could collapse. Once outdoors, check over yourself, your family, and your pets. Check for injuries, especially bleeding. Look for bruises and scrapes. In animals, check for awkward breathing or heavy, unnecessary panting. Lastly, earthquakes do not normally just happen and then end. Most times after the earthquake, tremors or aftershocks can be experienced for several hours or even a few days. Expect this and inform your family so no panic occurs. If you live near a coastal region, it’s especially important to have an emergency radio available to listen for updates regarding tsunamis, as these are common if an earthquake strikes near or in the ocean. People have a tendency to grow fearful during natural events that are beyond their control. Earthquakes happen and will always happen. The plates beneath our surface are constantly shifting and ever changing. Be prepared, make a plan, and do your best not to lose your nerve if an earthquake should happen. The earthquake might take you by surprise, but survival should not.

The earthquake earlier this week was around 5.8, which isn't too severe but can still cause many problems.

Daily Personal Kit Project Pt 2

The OverBoard Waterproof Back Pack

         About ten days ago, I posted a blog about developing my own personal daily survival kit using the OverBoard waterproof backpack. I’ve been slowly developing it into something unique that is not quite as diverse as a Bug Out Bag but is definitely useful as a “Get-Out-of-Dodge-and-Get-Home” type of survival kit. As promised, for every new item I add to it I will post details on here so that I can hopefully give you, my readers, a chance to gain new ideas on survival and perhaps get different perspectives on what others might use to survive. My first add-on to this wonderful backpack was to add some paracord. Paracord -or parachute cord- is generally a lightweight nylon kernmantle rope that was originally used for suspension lines in US parachutes during World War II. Once these ropes – or cords as most like to call them – were used in the field of battle, soldiers often found many other handy ideas they could be used for besides jumping from planes. Fast forward to modern time and paracords have been used by a vast array of organizations ranging from NASA to the Marines and even to everyday preppers like myself. A good rope can be a huge advantage in a survival situation. Paracords have a wide range of uses, and they are terrific for any survival kit as they virtually weigh next to nothing and cost just about the same. Lots of companies and brands sell different kinds of paracords. I went with an actual military grade just to ensure a long-lasting, reliable life. Most paracords are designed using a braided sheath made up of high number of interwoven strands giving each line a relatively smooth texture. The all-nylon construction makes paracord fairly elastic and, depending on the application, this feature can be an asset or a liability. But unless you are using the rope to go rock climbing, this generally isn’t a concern.

Strong, Cheap, Necessary.

         I purchased Rothco Paracord via Amazon.com for a fairly cheap price. I ordered two 50 foot strands of black Type III nylon paracord. I would have preferred a straight 100 foot shot, but it wasn’t practical for my small backpack. The paracord from Rothco has a 7 core strand made of 100% nylon. Each cord has been tested by a U.S. military contractor and has been certified for up to 550 lbs. Made completely in the United States, the cords boast a thin diameter of 5/32 inches. For the price and the durability, you really can’t beat it. I started by weaving one strand onto the left strap of my bag. My thinking is that by utilizing a basically free space on my bag, I don’t have to take up any additional space inside and it doesn’t make the bag any more bulky or uncomfortable. It was a very slow process, but I took my time and made sure I packed the rope tight and wove it in a straight, winding-up pattern. Tied off at the top around the carrying handle already built into the bag, I finished the left side and quickly started the right. The right side was definitely neater and completed faster than the left as I had spent time perfecting the technique I used. In the end, I finished the project and now have 100 feet of paracord attached neatly and almost inconspicuously to my pack. Granted, having wound it and tied it off I cannot get to it in a real hurry, but at least it’s there should I need it.

Half way done. The right strap came much easier.

The finished product. Quite nice looking.

         That being done, I added a few smaller, simpler items to the pack that might come in handy. I took four quarters, stacked them, and then taped them together. Having a few quarters is essential in case cell phone communication drops during an emergency. Chances are good that landlines will stay be okay, so keep quarters with you for payphone usage. If all else fails, at least you have $1 for an emergency vending machine candy bar if you need it. I also added a small bungee cord that is attached hidden in plain sight to the outside of the bag. A bungee is useful as it can be developed into a makeshift fishing hook if needed, or can be employed as a hanging device if you need to put some water to boil over a fire. In the event of something tearing, I could also use the bungee cord as a temporary clasp to keep something sealed until I can secure it properly. Inside the pack, I clipped two large safety pins into the actual bag’s factory tag. Safety pins are invaluable and have many uses. All three items I just mentioned have been added to my pack and have taken up no additional space, nor added to the weight or bulk of the pack. So far I’ve added four helpful items and I haven’t even started to fill up the pack yet! It’s great beginning to my project. There will be more to come once I begin to add new items.

Small, but very useful items.

Bungee cord easily added into the makeup of the backpack.

Safety pins neatly hidden away for a rainy day.

Helpful Links

         I’ll admit, I am feeling very lazy today. I have a lot of work to do at my real life job, and I really don’t feel like posting a long thought out blog on here today. But disaster waits for no one. So instead of bailing completely, I’m going to just give you a nice list of helpful sites that can assist you in getting prepared. I’ll try to put an even mix of financial and survival links. Maybe you’ve seen them before, if so I apologize. However, maybe there will be a few new ones and you can access them to get some new ideas. I will definitely be back at it tomorrow with a more thoughtful post. For now, check out these links:

(Disclaimer – I would never post a link to a scam website. All of the links listed below, to the best of my knowledge, are reliable, secure web pages that only offer help and have no negative or malicious intents. Always use caution when web browsing to protect your system and your identity.)

Government emergency preparedness for business owners: Ready Business

Government recommended emergency supply list: Ready Supplies

FEMA’s emergency citizen preparedness guidebook: Are You Ready?

Extensive Survival Training Site: DelMarva

The top 50 survival blogs: Survival Top 50

Wise Bread’s top 100 finance blog list: Top Personal Finance Blogs

Art of Manliness how-to of survival shotguns: Ultimate Survival Shotgun

Very specific emergency kits: 1-800-Prepare

Red Cross small checklist: Red Cross Be Ready

Red Cross CPR Training Classes: Take a Class

Large collection of first aid kits: First Aid Kits

Life Secure’s website, lots of helpful information: Emergency Solutions

The five basic survival skills: 5 Basic Skills

Amazing weapons survival gear: The Tactical Gear Store

One important word – medicine. This site is priceless: Antibiotics

Advanced training course: Learn To Return Survival

Scout, Tracker, and Survival School: onPoint

The Underground Survival Network: Vivos

Money advice, financial guidance: Smart Money

Your one stop shop for all things a preppers wants/needs: Off Grid Survival

The low down on business and consumer information: The Consumerist

A very simple, yet effective survival blog: Totally Ready

Helpful financial articles daily: Get Rich Slowly

Financial talk, in lamens terms: The Simple Dollar

A book by Joseph Knowles: Alone In The Wilderness

A book by J.J. Luna: How To Be Invisible

         In retrospect it actually took a lot of work and time to imbed all the links in this article. So I really didn’t save myself any trouble or time. Oh well, at least I got some links out there for your benefit. I will frequently post more links in the future. Thanks for stopping by today. We’ll be back to true form tomorrow.