November Net Worth Review

Alright, alright - Let's get down to business.  We've had a lot going on this past month which effects our Net Worth results.  Let's get started and I'll explain throughout!

Cash - $17,135 (+$2,049)
Investments - $87,456 (+$4,087)
Home Value - $197,000 (+$17,000!!!)
Personal Assets - $50,892 ($0)
Less: Liabilities - $187,699 ($-930)

Here's how it breaks down:

Wow!  So, obviously the home value has increased!  A few weeks ago we decided to refinance our existing mortgage since PNC offers a super-sweet Home-Equity Installment Loan, which reduces the closing costs to $250! since they remove the need for title transfer and insurance!  So, we're going to get a lower interest rate of 3.77%.  Plus, we are going with a 20-year fixed rate tenor so we'll be reducing our principal more and more each month!  A huge WIN-WIN if I ever heard one!  What's the catch?  Well, the Installment Loan does not come with escrow, so we're on our own to manage the taxes and insurance payments throughout the year.  Although, the luxury of having that taken care of was nice - it does not match my desire to reduce interest and principal.  Plus, I was always a little fishy of how they handled it!

Assets -
Cash - A huge increase that was impacted by two things.  1)  November was a 3 paycheck month for me and 2) No mortgage payment this month.  Since we will be closing on the new installment loan next week, the mortgage payment was not required.  I could have made a payment - but didn't see the reason since the loan will reconcile everything in a week.  I may make an extra principal payment anyway.

Investments - Wow.  I was very surprised by the results of our Investment accounts.  However, most of that gain is offset as contributions of $2,822.  I was surprised because immediately following the election, the Dow fell 400 points due to impending fiscal cliff and the worry that Obama would screw it up since the House and Senate are republican.  For some reason though - the markets bounced back on decent manufacturing and Black Friday data.  So, the markets should be in flux for a small period, but the gains are nice to see!!

Personal Assets - The change in Home Value is due to the appraisal that was performed by the bank as part of the Refinance.  Personally, I was shocked.  I did not think the value could rise that high in 30 months, but I'm happy to admit I was wrong.  Location, Location, Location!!!  That really makes me feel good about potentially selling this house in the future - to think I could reasonably expect to sell it for $200k and only have to pay down $130 mortgage, makes for a very good return!!  That might make my desire for Income Property a reality sooner than I expected!!

No change in the car values since I researched them in October.  Every other month review seems appropriate based upon the depreciation levels.

Liabilities -
Mortgage - $130,524 - No change now, but they are pending.... 

Student Loans - $33,493 - We made 3 payments this month along with the 3 paychecks.  So, an additional $140 was knocked off. 

Acura Loan - $23,682 - First payment is in the books.  Long way to go!

Total Joint Net Worth - $164,784!!  ($147,784)

A huge increase based upon the new home value.  However, even without the new appraisal, our Net Worth increased $7k!!  So, we definitely had a very good month!!  I'm also encouraged because following the refi we should see bigger gains in Mortgage Reduction and we'll receive a slight increase in Cash as we now are responsible for Escrow, which has a couple thousand in already.  We'll keep chopping wood!!!

Going to the Ship!

ND is going to the National Championship!!!

SOOOO - Although we have our first child on the way and are saving for the next "Forever" home, we are being completely financially irrational and trying to make the trip to Miami!!!

$467 for flights to Orlando.
$725 for tickets to the game.

No problem.  Life was meant to make memories and none would be sweeter than a National Championship!!! 

I'm very excited and nervous.  The tickets are no guarantee and the Mrs. will be 35 odd weeks pregnant.  So, there is no definites regarding this game - but who cares.  Sometimes, you need to be irrational.

The debt paydown will continue as I'll just tap into our reserves - which were set aside for moments like this!!  We've been diligent about savings money and splurging can be very exciting and refreshing.  Ramsey fans can shove it because things like this happen only once every 25 years!!!

Go Irish!

October Net Worth Review

I really need to get back to the blog.  I've neglected it the past couple months aside from the Net Worth Review.  To be honest, it's been really hard to find the time - and that's not an excuse nor is it an embellishment.  School has picked up and I've really tried to concentrate at work and devote more time to that.  I let myself slack off and realized I need to do more at the office to set myself apart.  So, between that and the preparations for Little Peach - the blog has taken a backseat.

 

Cash - $15,086 (-$4,067)
Investments - $83,369 (+$623)
Home Value - $180,000 ($0)
Personal Assets - $50,892 (+$26,977)
Less: Liabilities - $188,626 (+$23,720)

Here's how it breaks down:

Obviously, there was a major purchase made during the month.  The Prof and I bought a new car!!!! (Everytime I say that I feel like Bob Barker!)  The Acura MDX is not sitting in our driveway being sweet!!  So, we paid $5k down and took a loan of $24.2k for a car worth $27.6k.  So, the major fluctutations are mostly explained through those three items.  I'm not thrilled about the taking out a loan like that, but we got a decent interest rate and the value was great.  Also, we had the cash ear-marked for this purchase since June, so no love lost there either.  However, I did get to create a new Loan Pay Down Schedule in my Super Sweet Spreadsheet!!!  Let the Debt Destruction begin!!!

Assets -
Cash - Decent month overall when you consider the $5k reduction for the car.  We put one of Laura's paychecks into Investments and used one to build up the emergency fund.  Also, we received some supplemental funds regarding Fantasy winnings of $50 and $150 for selling some books.  Not a lot, but every bit helps.

Investments - The markets took a hit this month as my return was actual negative (1-1.5%) for the month.  Most of that was due to II-VI's negative return of ~13%.  Easily the most frustrating stock to own ever.  Some people say to buy now that its low, but everyone fundamental mark is negative.  I don't see the upside.  We'll keep what we have since they were a gift, but I won't be adding to that.

Personal Assets - No Change to the Home Value.  Then we see the additional of the Acura less normal depreciation on the Sonata and Acura.

 

Liabilities -
Mortgage - $130,524 - Blah, Blah, Blah. 

Student Loans - $33,908 - A small change here as we've altered our strategy toward growth and away from paying down debt.  No big deal. 

 

Acura Loan - $24,194 - I told the Prof that we would be taking an aggressive approach to this debt in order to reduce the principal sooner.  We'll pay a bit more than expected per the 60 month amortization schedule to try and pay it off in 3 and half years.  Did I ever tell you I hate debt??

Total Joint Net Worth - $140,721

After all that we saw our Net Worth decrease $187.  Not bad considering the loss in cash and the markets in October.  November election looms so the markets could be volatile, but it is a 3 Paycheck Month!!!  So, hopefully we'll see some big gains.  Also, the Prof and I have some NFL Office Pools in action - hopefully we can get lucky over the next couple weeks! 

September Net Worth Review

Things have been pretty crazy around the Peaches household!  We've been anxiously preparing for the arrival of Logan and the family will be getting larger today as the sister is having her 2nd boy!  It's an exciting time and a good one to take a step back and monitor our progress:

 

Cash - $19,153 (+$146)
Investments - $82,746 (+$5,062)
Home Value - $180,000 ($0)
Personal Assets - $23,915 (-$747)
Less: Liabilities - $164,906 (-$457)

Here's how it breaks down:

Assets -
Cash - A solid month.  As I said last month, we're going to be super-aggressive within our savings, so excess cash will be put into Investments for growth.  As such, nominal gains are awesome!  It tells me we are budgeting appropriately.

Investments - A nice month for the savings.  We had about a 3% growth within the accounts outside of our retirement and savings contribution.  The markets were relatively steady this month and hopefully will continue to grow in the 4th quarter, as they have historically.  The presidential election may cause some fluctuation, but our contributions will not! 

Personal Assets - No Change to the Home Value.  Probably should have a realtor to the house soon, but probably not til the spring when it would show better.  The Sonata value decreased based upon our bi-monthly KBB check-in - just normal depreciation.

Liabilities -
Mortgage - $130,723 - Blah, Blah, Blah. 

Student Loans - $34,183 - A small change here as we've altered our strategy toward growth and away from paying down debt.  No big deal. 

Total Joint Net Worth - $140,908!!!

We've hit $140k!!  We're still far from our $170k goal - but the growth the past couple months has been fun to watch.  Due to our strategy change, I'm not sure I'll be continuing the Net Worth Review.  I may change it to an Investment Analysis and go into more detail there.  Until the baby comes, there hopefully won't be any earth-shattering changes to this line-up.  Small debt and property changes with increased growth in Investments.  Also, it might be more beneficial to chart my investments and track their progress . 

DIY Mechanic

Well, it happened on Saturday...

Our one car finally had something break down.  Although, the Sonata has been super sweet and relatively unbreakable during the first six years I've owned the car, it finally caused a major headache!

I put the driver's side window down to enjoy some fresh air on an awesome fall afternoon.  SSSCCCREEECHHHH!  The window was stuck!  It would not come back up! 

Agitated, I quickly tried to Heman the window back into place.  Nothing.
I turned the car and tried the power window button again.  Nothing.
I smacked the window.  Nothing. (Shockingly)

I called the dealership and made an appointment for Monday morning to have it checked out.  Unfortunately, they were extremely unhelpful when I asked if they would be able to move the window back into place - I was worried about rain or breakin if I kept the window down.  Nothing.

So, I got out my trusty tool set and began taking the door apart.  That's right - Mr. Accounting has tools and he knows how to use them!

Long story short - after several hours of blood and sweat, I finally had the door in many pieces, but I finally found the problem.  The cable wire for the Regulator had completely frayed.  It would not move within the pulley system because of the wear and tear.  I was happy to have found the problem, but worried about the cost to fix (even though I performed most of the labor already!)

That Monday, I took it to the dealership to see if it was covered under my Warranty or it was simpler to let them fix it.  They informed me it would cost $320 to fix!  $114 for the part and $206 for labor!!!  WHAT!!

I pestered them that I found the EXACT same part online for $61.99 - they didn't care.  They said it would only take an hour and half to fix - at $137/hour - Crazy!!

So, I said no thank you.  I walked into Advance Auto Parts and paid them $66 for the part (and taxes) and drove to my uncle's house to fix it.  An hour later, I had a new Regulator in place and a working window!!  Plus, I saved myself $254!!  Well worth the time it cost me.

As a result of this escapade, I learned a few things:
1.  The dealership will always rip you off.  They think they have you over a barrel and they gauge you with labor.
2.  The car is not as scary machine as most people think.  I'd bet that 75% of people just agree to whatever the dealership says without seeking alternatives.  However, the door is literally held together by 7 screws and several plugs.  The regulator is locked into place with plastic and the window has two screws keeping along the rubber track.  Taking the initiative to at least try and fix the problem saved me money and taught me not to overestimate a problem.  There is often a simple solution.

Can I Get a Timeout!

Side Hustle Update:
I joined the luxurious ranks of High School Football officiating!  Now I'm the guy throwing the flag, blowing the whistle, and getting heckled by fans.  It's really interesting!



I officiated my first game last weekend.  It was a JV game between two local high schools.  It wasn't the Super Bowl, but the experience was a lot of fun.  I got to throw my flag early in game when I noticed an illegal formation.  I was proud to have noticed that.

The execution of a referee (or line judge) is tough.  I was surprised how much goes on in a short period and how much I was responsible for.  Not only does a referee need to be able to follow the play, but he must monitor the action for any illegal activity.  Then, he must make the proper hand signal, blow the whistle and spot the ball.  I started to find my rhythm later in the game, but will admit that it was not easy to keep everything in check. 

For my services, I received $50.  Not bad for 2 hours on a Saturday morning.  However, so far, I'm still in the whole for the cost of joining a chapter and purchasing the uniform.  Tough first time expenditures.  I've spent $314 so far getting set up, but have recovered $90 from 2 games.  More games are to come to.

I've enjoyed my experience officiating so far, but do miss coaching.  I had to hold myself back a couple times during the game from offering advice to players or making a comment to the coaches.  I guess it's in my blood.  However, I'm excited to continue refereeing and grow in this business.  I understand the game and believe that that is half the battle for an official.  I could see myself on Friday nights very soon and possibly get into local collegiate football as well.  It's a great way to follow the game.  Plus, I had no idea how much some officials will run over the course of a game!!  I was sweating!

We'll keep tracking our Side Hustle progress and I'll post a synopsis later this year on all our supplemental earnings!  It's amazing how well we've done outside of our day-to-day jobs!

August Net Worth Review

Back from Ireland and time for another Net Worth Round-up!!!

 

Cash - $19,007 (-$12,439)
Investments - $77,684 (+$6,353)
Home Value - $180,000 ($0)
Personal Assets - $24,662 (+$0)
Less: Liabilities - $165,363 (-$2,975)

Here's how it breaks down:

Assets -
Cash - Whoa!  Let me explain:  First, I had my Fall Tuition bill come due in August, so there goes almost a $7k from the account.  Also, the Prof and I have paid down the Home Depot bill and will be putting more into our Investment account in the future.  So, I made a $2k deposit on Aug. 4, and another $1.7k deposit on Aug. 31 from the Growth account to the Investment account.  So, while the Cash balance fell, it actually just transferred into the account below. 

 

I also keep my tuition money separate in the Growth account.  It is money received as part of Student Loans and is earmarked for future tuition.  I should remove it from this analysis to avoid major swings like this month, but it is collecting some interest.

Investments - As I said above, some of the increase is due deposits made into the Investment account.  However, there is another $2k or so that was due to market appreciation, which was nice.

Personal Assets - No Change to the Home Value.  

 

Liabilities -
Mortgage - $130,921 - Another small incremental change.  Ho-hum.  It's depressing how small the changes are, but it's no big deal until everything else below is taken care of. 

Student Loans - $34,442 - Just a couple small payments here.  The change here will likely not be as large month to month as we concentrate on savings for our next house.  With the loans in deferment and the interest rate reasonable, I've decided to makes more sense to invest than pay down.  I'll still be making some payments to the high interest balances, but nothing earth shattering unless I hit the lottery. 

Home Depot Credit Card - $0 - New Kitchen is all ours!!  Two payments were made in August due to timing of the calendar.  It feels amazing to say goodbye to this debt.  $1,000 every month for saving or baby expenses!  I'm very excited!

Total Joint Net Worth - $135,990!!!

So, a decrease of $3.1k is not something I am happy about.  However, with the tuition payment of $7k, I'm happy it wasn't worth!  Plus, the HD card is paid off so that means more savings and growth.  Things are definitely looking up!!

 

 

New Side Hustle

The Summer is winding down and football camps across the country have started for Elementary School, High School, College, and the Pros.  For the first time in 18 years, I will not be partaking in any Oklahoma Drills or 2-a-days! 

That's the bad news.  I'm decided to put a halt to my coaching career.  I'll have further explanations later on.

However - Here's the Good News!  I passed my Football Referee Entry Exam!!

So, this Saturday, I will suit up for the first time as a High School football referee.  It's not glamorous or prestigious, but it will keep me involved in the sport I love, while padding my pocket a bit.

The Professor was definitely a little skeptical about me refing games and being gone all weekend, but then I told her that College referees can make up to $2k a game and she immediately liked the idea!  Ha.  My take home will be much less for a few years as I do JV High School and grade school games.  Still, $50 a game or $100 a day isn't anything to whine about.

Besides, I love Football.  I enjoy being around the game and understanding it better, especially at the youth level.  It's fun.  I hope to one day officiate college games just for the accomplishment and enjoyment, but for now, a chance to be around competitive football, good people, and make some money sounds promising to me.

Hopefully I'll be back under the Friday Night Lights sooner rather than later!!

Coach

July Net Worth Review

My oh my!  With a crazy work schedule and some vacation out West, July sure went by like a blur!  Let's see how the Prof and I did monetarily after much needed R&R.

 

Cash - $31,446 (-$326)
Investments - $71,331 (+$1,415)
Home Value - $180,000 ($0)
Personal Assets - $24,662 (+$0)
Less: Liabilities - $168,338 (-$2,111)

Here's how it breaks down:

Assets -
Cash - A slight decrease in cash this month.  Too bad fair, I'm not entirely sure why this would be especially since both the Prof and I had the Side Hustle working with Speed Camp and Summer School.  The vacation purchases were all put onto the Credit Card and will be paid off in two weeks.  The other unsual item that occurred this past month was we both had to renew our passports for our Ireland trip at the end of August. So, that's $220.  I'll have to look into this though.

Investments - Some more growth within the Investment accounts.  Most of the securities we hold all had marginal increases in June.  II-VI had some reversal and PSO also had a little reversal in a negative way.  They were both moving crazily that some push back was expected.  I'm still planning on doing more investing in the future, so this should go up but I'll be sure to track growth vs contributions.

Personal Assets - No Change to the Home Value.  The house across the street sold but we aren't sure of the sales price yet and it really isn't a comparable for us.  However, I will be thankful that their 8 greyhounds will not continue to bark throughout the mornings!!

 

Liabilities -
Mortgage - $131,118 - Another small incremental change.  Ho-hum.  It's depressing how small the changes are, but it's no big deal until everything else below is taken care of. 

Student Loans - $34,872 - Sayonara #1 Undergrad Student Loan!!  It was small compared to the Grad loans, but it feels good to only have 6 loans to pay as opposed to 7.  I may cool down on the repayment plan for the next couple months as the Prof and I save more cash for some unknown expenses.  It feels great to pay these down, but also hard since I still need to save for one semester. 

Home Depot Credit Card - $2,348 - Only two payments away.  I considered writing one big check to get rid of this Aug.3, but am going to wait a few weeks since we have some potentially large cash outflows in August and I'm cautious.  It will be gone shortly and I cannot wait.

Total Joint Net Worth - $139,100!!!

Another great month!  $3,199 Increase and close to $140k!  I'm feeling really good about our situation.  I have a tuition payment this month which will cause a hit to Cash, but overall, I'm extremely happy as our liabilities have fallen over $4k in 4 months and our Investments have performed well.  Once the HD Card is paid off, that will basically free up the Prof's entire salary for savings!!

 

When We Were Young

The Prof and I are going to the Dave Matthews Band Concert today!  I've never been to a DMB Concert before.  From what I recall, they are quite the experience.  However, things change as you get older.  Day drinking and concert craziness doesn't have the same appeal now as it did when I was 20-23!  I don't know when it happened specifically or why it happened, but I do know it happened.  I can't drink like I used to and I definitely can't last as long as used to.  However, I also don't want to.

As I prepare for an entire day of drinking and festivities - I can't help but think of all the things that either need to be done or will be done.  Tomorrow - Speed Camp at 9 AM (2 Hours).  Complete Financial Homework (3 Hours).  Meet with IS Group on Final Project (2 Hours).  Study for Side Hustle - Part 2 (1 Hour).  Laundry, Dusting, Cleaning - (1.5 Hours).  That's without thinking about sleeping or watching the Pirates game.  No where in that plan does it include 4 hours of couch crashing because I'm hung over.

Maybe I should lighten up and enjoy the moment.  I spend so much time planning and scheduling my day, week, or life that I miss the ride.  I don't want to miss the journey.

The Prof and I will be married for 1 year on Monday.  It's crazy to think its already been an entire year.  I've loved it and wouldn't change anything about it, but I also want to make sure that time doesn't just fly by and I miss it.  I want to enjoy every moment.  So, for once in my life, I'm going to enjoy myself today.  I can't worry about Grad School, Student Loans Payments, or the Next Housing Project.  Today (and this weekend) is about the Prof and I.  We are going to have fun and pretend we are young.  We are 28 - much too young to overcomplicate our lives.

Dream as if you'll live Forever.  Live as if you'll Die Tomorrow.

Dog Days of Summer

I've been very lackadaisical in my posting lately.  Fortunately, I haven't had much money issues to report about or go through.  We're all set to pay down the Home Depot Credit Card (YAY!!) and the Student Loans are getting chopped down bit by bit, but otherwise, it's a slow news cycle.

It's no excuse, but things have been quite busy on the home front.  School is winding down this month and group projects require painful amounts of scheduling and work.  In addition, the bank is doing well and June was an extremely busy time of year.  Lastly, the Prof and I are preparing for our 1 Year ANNIVERSARY and some exciting Vacations (SLC and IRELAND!)

The Prof and I are still working on some Side Hustle going forward - my Speed Camp is winding down but Craigslist and eBay has provided some windfall lately.  Also, I've looked into officiating youth football and basketball games.  So, as a former athlete and coach, I'm excited for the opportunity to stay in the athletic field without dedicating my entire free time to it (as coaching required).  Plus, the Side Hustle helps!

Lastly, I got some good financial news today!  Quizzle notified me that my credit score had not been updated in the previous 6 months.  So, I punched in my information and requested my free score to see if any movement had occurred.  To my surprise, my score jumped from 720 to 784!!!  I'm in Excellent Credit Range!!  I have to assume the major drivers behind it are:  1) Good standing on my mortgage - best form of credit there is, and 2) I'm now 4 years removed from the 2 Negative Reports (which are ridiculous - $97 in interest on Phone Bill) - but the further and further out I get is aiding my progress.  That score should definitely help if we decide to purchase a new car in the near future.

June Net Worth Review

June has come and gone so before the fireworks and barbeque of July 4th - Let's take a quick review of our Financial Progress!
Cash - $31,772 (+$3,842)
Investments - $69,916 (+$3,304)
Home Value - $180,000 ($0)
Personal Assets - $24,662 (+$1,412)
Less: Liabilities - $170,449 (-$1,611)

Here's how it breaks down:

Assets -
Cash - A significant increase in Cash during the month!  For one, we received an extra paycheck thanks to bi-weekly payroll cycle!  So, that was a huge plus.  Secondly, we saw ~$700 in Side Hustle income in June from my Speed Camp and the Prof's Ebay Sales.  Lastly, unlike May, the Home Depot payment was made the first day of July.  So, the total increase is a little artificial, but still some serious progress.

Investments - There's some bounce back I was hoping for!  After a dismal May, the markets stabilized and we saw progress in Europe.  Every investment we owned saw an increase except II-VI.  June was not kind to our wedding gift as the Asian Earthquake/Tsunami has caused reduced earnings estimates for FY2012 and 2013.  I'd be lying if I wasn't a little concerned about the LT success of this stock, but considering it was a gift and the family's involvement with the company - we'll definitely be holding on to it and hoping it comes back.  Buy Low, Sell High! 

Personal Assets - No Change to the Home Value.  No sales in the area, so we're going to hold steady on the current value.  We did see some depreciation on the Sonata, so that value fell about $100, but we also paid down and received the Prof's anniversary gift, so the new diamond will increase our luxuries value just a bit!  Better call my insurance agent.

Liabilities -
Mortgage - $131,315 - Another small incremental change.  Ho-hum.  It's depressing how small the changes are, but it's no big deal until everything else below is taken care of. 

Student Loans - $35,536 - A nice decrease this past month.  I will be paying off one of my undergrad loans this month!  While continuing to chop down the unsubsidized graduate loans.  Staying the course.

Home Depot Credit Card - $3,598 - Same value here.  The payment cycle was weird this month, but still scheduled to be paid off in August.

Anniversary Gift - $0.  The Professor received her Anniversary Gift and she LOVES it!  VERY HAPPY!! 

Total Joint Net Worth - $135,901!!!

Progress!! I was ecstatic to see the progress we've made the past month!  Especially since I've been a little down about our credit card bills the past two months.  However, I'm realizing it's more a situation where we're using the Joint Card more and Individuals Cards less.  I don't think are actual spending has increased, just the distribution.  Just need to keep on keeping on growing that NW!!

Paycheck Friday

Booya!  I love PayDay!

Unlike the Professor, my paychecks are always distributed on a Friday.  Every two weeks, I wake up a get to feel good about the work I do and my financial stability.  I'm not a person who works for the paychecks, but it does feel good to log into your account and see an influx, especially on a Friday.  It provides optimism for the coming weekend!  I can do anything - I GOT PAID!!!

I'll admit, PayDay felt like a much bigger deal when I first graduated college or when I was an intern during college.  Each PayDay made me feel like a millionaire.  However, a little bit of me still feels like a kid who won the lottery on PayDay.

I got Paid.  There's a Beautiful (but Hot) Weekend in the City ahead!  My baseball team is playing well and has an exciting series coming up!  Today is a Very Good Day!  Like I said - nothing like the eternal optimism of youth caused by a Paycheck Friday!!

College Football Playoff

Yesterday, college presidents agreed to a 4-team playoff format to determine the National Championship starting in 2014.  The semi-finals will take place in bowl games and the National Championship Game will be bid out to any city.  It's definitely a step up from the current format, however, a playoff is not always better.

1.  Why did we need to keep the tradition of the bowls?  Haven't we seen that the bowl games have worn out their welcome.  The crazy ticket/hotel requirements on top of declining ratings have shown that people are only interested in the National Championship.  The playoff makes the second-tier bowl games even more meaningless, especially if they are being played on the same day.  If not, they create travel issues for people because of their desire to maintain a bowl game EVERY night in January.  The season needs to end by Jan. 1 - stop dragging it out.

2.  Why only 4?  Every other college football playoff format has 32 teams.  In Division III, I had to eat Thanksgiving Dinner in my college cafeteria.  I had to study for finals after practice.  It's not a STUDENT-athlete issue.  It's a money issue.  Currently, the 4 team playoff will continue to maximize the regular season AND the post-season.  This means more TV viewers, which means more money.  Also, it's the easiest.  College football is old school.  They move incredibly slow and anything else would have been considered too drastic.  Remember - these are the same people that re-upped with the BCS for 10 years.

3.  What effect will this have on my Cable TV bill?  As my TV creeps up year after year, I can't help but worry that some astronomical amount by ESPN or CBS to showcase these games will get pushed back onto the viewers.  They have us over a barrel.  Either we keep cable and watch or we turn off cable entirely (and miss out on House Hunters!).  With more and more people turning off cable, this could be an interesting issue.

This post had little to do with finance, but I get tired of reading the same narrative on all the major news sites.  It's applause, applause, slap on the back, applause.  It's annoying.  Especially when people still know this is hardly the answer.  At least I hope so.

Home Office

I need to get my office space back!

I've always been a quiet studier/worker.  In college, I couldn't study in the dorm room or apartment, I had to leave and go to the Library for a few hours.  I don't like to waste time or be around all the distractions.  It's better to seclude myself entirely for 2 hours, then be around friends or in a group for 4 hours.  With work, I'm very similar.  I like to put my headphones on or go into "heads down" mode and get things done.  I'm at work to accomplish a specific job and don't like to be wasting time talking about last night's game or whatever else in going on at the water cooler.

At home - I lost my office area to storage a few months ago.  So, I'm currently set up on the dining room table - which is surrounded by distractions.  Big screen TV one room away, outdoors right behind me, kitchen stocked with food in front of me.  It's terrible.  This weekend, I need to re-discover my secluded office area in the basement.  Although it grungy and a little stinky down there, I'll probably be a lot more productive in the quiet.

Sometimes, you just have to put your head down and get things done.

The Benefit of Many Small Things

The Prof and I make decent money for two individuals in their late 20s (especially since one is a Teacher).  Obviously, we aren't satisfied with our current status and dream of the days when money is no object and expensive dinners out are normalcy.  We're not spoiled or rotten, but we appreciate and enjoy modern luxuries.  We work hard and sometimes we deserve the good things in life.

For the most part, we save the Prof's paychecks.  Her earnings do not come into play when paying off house, utilities, and my student loans.  Depending on the month, I rarely use it to pay off the credit card.  We do use her earnings to help pay down the Kitchen Renovation, but I view that as an investment, and not a straight expenditure (Yea, its debt, but reasonable and appreciable).

I've already noted that June is a 3 paycheck month for me!  Hooray!  Extra MOOLAH!

However, as I was reviewing our Mint account to see the student loan balance (I love seeing it go down right after a payment), I noticed something unusual about our income.  It was substantially higher this month considering we still had 2 paychecks yet to receive.  After some quick investigating, I noticed several NEW income streams this month:

My Side Hustle:  I've made an extra $300 working with kids and being outside.

Ebay:  The Prof sold a few nice handbags last month and the money was finally transferred into our account this month.

Rewards:  I received compensation for all the referral business that I brought to the bank.  Not a great deal, but another $250!

All in all, it was almost an extra $1,000 dollars that I was not expecting and had not budgeted for!  Those small little items can really add up and help reinforce the idea that Side Hustling pays off!  It's awesome to see the Mint Cash balance go up and the Loan & Credit Card balances go down!  That's the ideal scenario for Personal Finance.

The best part about all those extra items - that caused very little disruption to our daily lives.  The Side Hustle is the only major change and that's only a couple hours on Sunday morning.  The rest was just doing my job and selling old stuff!  Incredibly easy!

I've discussed it before - but it's been a very good month.  I'm so happy to have a wife who understands  the idea of sacrifice now (while in grad school) in order to achieve the small little things later in life!!

Why I Bought Whole Life Insurance

If you read or follow most personal finance people (Ramsey, Orman, blogs), they will all sell you on the idea of Term Life Insurance.  The baseline logic makes fiscal sense - the monthly premiums are lower and the coverage amount is greater.  Easy financial decision.

WAIT!!

Let's play Devil's Advocate.  I currently own a Whole Life Insurance Policy.  I am in my late (still hate saying that) 20s, never used tobacco, and my family has no history of genetic health problems.  I own a $150k policy for about $2.1k a year, or $176 a month.  I did some research and found that on average, a $1.5 MM Term Life Policy would only cost me ~$60 a month!

I could be saving $116 a month!!  I am so Stupid!!!   Oh wait....

Let's play a little hypothetical game and move to July 2032!  I've been making premiums payments for 20 years at this point.

Whole Life Insurance - After 20 years, I will have paid $42,244.80 in premiums.  Wow.  However, the Cash Value of the policy should be $32,079 (this isn't definitive based upon the markets, but a decent approximation based upon history of agency).  So, after 20 years, the Net Value is $(10,165).

Term Life Insurance - After 20 years, I would have paid $14,400 in premiums.  A difference of $27,844 compared to Whole Life.  Unfortunately, I've managed to live the entire 20 years (HA!  Just as I planned!), so the payouts were never received.  So, the net value of the Term Policy is $(14,400)!  Wait - that's worse than the Whole Life!!  I thought Term Life was great - what gives!!

In addition, the Whole Life policy premiums remain steady at $176/month even as I approach the age of 50!  Which is great! 

Under the Term Life Policy - since I've got kids/marriages/and retirement to think about, I'm going to renew my Term Life Policy.  However, now I'm 48, not 28.  So, I reduce my need in half to $750k.  That brings my monthly premium to $115!!  WHAT???  Oh man.

So, let's recap.  If you are young and can manage some extra payments now - a Whole Life Policy is a MUCH better LONG TERM decision.  The money output is better in the end and the flexibility is greater with the availability to cash out.  Neither is a fool-proof investment tool and should not be treated as such.  It's insurance - the company that offers it needs to make money.  However, when looking for flexibility and long-term gains, I'm sticking with my Whole Life Policy.

Battling Over Basis Points

Our checking account provides a very reasonable .55% interest rate.  However, its only on the first $25k within the account.  Anything above that number and the interest earned is at a rate of .10%.  Real weak.

Currently, we are going strong with $25k in the account. 

In a payroll oddity, the Prof and I got paid on the same day!  I can't recall it ever happening before since she's bi-monthly and I'm bi-weekly.  So, we had a nice influx of cash today but it has nowhere to go.  I talked yesterday about this being a 3 paycheck month for me and the credit card bill has already been paid.  So, now I'm just saving money until the mortgage and HD bill come due. 

For whatever reason, I'm been thinking about utilizing a different checking account to try and save money.  PNC is a great bank, but I've never really reasearched other options.  I could be earning more in interest each month by using Schwab, Ally, or someone else.  Perhaps this is short-sighted since I know I have a tuition payment due in August and our savings account will fall substantially at that point, but what if I can earn an extra 50 to 150 basis points in the time being.

It's worth investigating.  In addition, opening up a better banking account could open up better brokerage oppurtunities.  PNC is not a very brokerage place for small stock investing.  The BlackRock Funds do not very well - but those funds are LT.  Right now is a good time to buy (as evidenced by II-VI being priced 20% below last year's amount.  In addition, PNC stock is priced well below its normal trading level and it hasn't fluctuated in 10 years!  So, yes, I will be investigating other banking/investing options.  The simplicity of PNC VW and Checking accounts is great - but I'm sure there are better options as well.  It would be foolish not to have the discussion.

Perhaps I'm losing my edge.

R.J.

Finding Balance

There are good days, and there are bad days.

There are good weeks, and there are bad weeks.

There are good months, and there are bad months.

I've been struggling to think of something to write about this week.  Work has been much busier lately and doesn't provide the availability to sneak away to collect my thoughts.  It's Mid-Terms this week at school, so that's added some additional stress and late nights.  Plus, I've been in a good space.

June is a 3 paycheck month!  So, after getting paid on the 1st and paying off the credit card - I realized the Prof and I both have two paychecks coming this month!  Booya!  It helps ease any money drama for the time being.  Sure we could do better in a daily money management, but I'm tired of sweating the small stuff.  I'm tired of micro-managing and dwelling on the $5 lunch wraps and $20 drug store runs.  Life Happens.

It's time to stop wishing for the future and start living in the present.  We have good jobs, are ambitious about the future, and love each other.  Life is good.  It may make for bad blog writing - but it's a nice feeling.  Nothing lasts forever, but when you are living in the present - today is a good day.

Coach

Sup Homebody

It's amazing how quickly life can change.  On November 7, 2008, I was a carefree bachelor going out for a night on the town with the guys.  The world was my osyter and we were off to let off some steam from a busy week at work.

Today, I'm a married man living with a dog and a cat in a house in the suburbs.  It's Friday night and the only thing I want to do is sit at home with the Professor and enjoy eachother's company.  I don't want to drink until I can't remember anymore.  I don't want to buy $2 well drinks until my credit card maxes out.  I wanted to lay on my couch and talk to my best friend.  That's happiness.

The Professor asked if she was a homebody this past week.  I told her absolutely.  She loves lounging more than most people.  At first, she was a bit disappointed in my response.  As if that were a bad thing.  However, I look at it as we enjoy the comfort of home and spending time with the people who mean the most to us.  It's the Sunday afternoon dinners at the parents.  It's the Saturday evening game nights.  It's the weekend trips to graduations.  Being a homebody doesn't mean we're hermits.  Far from it.

We LOVE to travel.  We love to make plans with friends for concerts, games, or St. Patrick's Day.  We just like to plan things out and do things with people who are important to us.  I think back to our Wedding Day.  It was truly one of the greatest weekends of my life.  Not just because I married the Professor, but because of all the family and friends that were in town and celebrated with us the entire time.  From Wednesday to Sunday we laughed, hugged and partied.  We were real.  Everyone there was chosen by us to be there and they wanted to be there to celebrate with us.  No phony friends.  No casual acquantences you have to put up with.  No BS.  It was great.

I'm happy with where my life is.  I'm still striving for more success in my career and look forward to Coach Jr, but I wouldn't change this day for any other day prior to November 7, 2008.

Coach 

Make Money Off of P&W

I love reading Personal Finance websites.  I'm fascinated by the journey others take on their way to financial independence and how they push others to achieve the same.

After starting my first Side Hustle last month, I've been wondering where or if there are other options to do.  Aside from pushing myself at work and school, achieving some supplemental funds would really help with the extra things in life.  Paying down debt is great and very important, but lately I've been wanting to fund a Beach Vacation for the Professor and I, or stop taking money from my parents and in-laws and really cut the cords and grow up.  Every little bit helps while in school.

Could I make money off the blog? 

I'm not a great a writer (the Prof is) but I do have knowledge about Finances and genuinely want to help others.  I'm amazed by the small communities within other blogs that cheer each other on and motivate each other through the journeys.  I think it would be exciting to help others as the Professor and I share our stories of marriage, money, and life.  It would also require a tremendous amount of work to get started and maintain.  Effort is not an issue with the two of us.  We are two extrememly motivated individuals. 

Another reason I would like to do this.  I believe it would be fun to work with my wife.  It could be her outlet to vent about me or share stories of our marriage and desire to start a family.  I could share my money management stories and (hopefully) offer some insight for others.  It would be ours.  Right now, she has her teaching job, I have my Finance job and there is no overlap.  We both contribute to the household but it's tough to share stories about the day.  The blog would be ours to build and grow.  We could do it together!

There are no guarantees in life and its possible we'll never make a dime off P&W.  However, we'd always have a record of those years starting our life together.  The struggles, the triumphs, and happiness through marital bliss.

Things to ponder going forward.

The Value of Leftovers

Today for lunch I had a Reuben Sandwich.  It was delicious.  It was filling.  It was a day old!

I love leftovers!  It really has very little to do with my frugality!  It has more to do with simplicity.  I love eating quick and easy meals.  I enjoy my lunch at my desk so that I can work out at the gym across the street during my break.  I usually enjoy a small dinner in the evening.  My wife and I both work.  It's a pain to think of and put together a dinner EVERY (or any) night.  I realize there are "30 minutes meals" cookbooks out there - but who has 30 minutes when 60 seconds can be just as simple!

I've discussed already my wife's love of the crockpot.  It's quite possibly the greatest invention since the Internet (the Internet came into my life first).  One of the best part about it is that it makes enough food to last for several days.  So, everytime she starts filling up the crock, I know that my lunch and dinners are set for at least 2 days.  No worrying about making sandwiches in the morning, or if there is enough snacks to fill me up.  I'm good!  In addition - I'm getting a home cooked meal every time! 

Now - I'd be foolish if saving money wasn't at least part of the equation.  However, the food we cook or the restaurant leftovers were already paid for.  So, the savings aren't as large as most PF sites claim.  But, it is nice to think that if we control our grocery costs, that there won't be a multitude of $9 meals to track.  It's one grocery cost.  Again - Simplicity.

It's also interesting how people react when you re-heat something in the workplace.  Some people applaud the creativity and the money saving nature of packing a meal.  Others can't understand how I have time to make the meals or why I do when the building has a cafeteria.  Lastly, some just refuse to eat leftovers (my father-in-law).  I understand all sides.  For me, knowing that I can enjoy a quality meal, without hassle or wait is ideal.

I realize my tastes can change over time and perhaps as my income grows I'll worry less about minor meal costs, but I doubt my enjoyment of leftovers will change.  I believe that some things taste better the next day!  Lasagna.  Thanksgiving Turkey!  Easter Ham!  All taste better the next day!

What do you think?

May New Worth Review

It's been one month since we've taken a 5,000 ft fly-by of our financial progress.  So, let's review:

Cash - $27,930  (+$1,835)
Investments - $66,612 (-$4,460)
Home Value - $180,000 ($0)
Personal Assets - $23,250 (-$5,000)
Less: Liabilities - $172,060 (-$3,350)

Here's how it breaks down:

Assets -
Cash - An increase to cash as we received money upon selling the Prof's Passat!  We received $4,500 for the car.  Side Hustlin ($850) and selling items online ($100) should help build or keep steady this balance as we continue to pay down debt and build our savings for the Prof's next car.
Investments - Ouch.  Well, the stock market experienced its worst month in two years as the S&P and DJIA fell over 6% in May 2012, which is right in line with my 6.2% reduction in investment assets!  The losses were consistent across the board, and there's nothing too critical to take from it.  Sometimes the market bounces like it did in April, sometimes it falls flat.  There is a lot of pending crisis going on in Europe and China, and the U.S. isn't bouncing back as well as everyone hoped, but I believe the markets will move in the right direction.  Anyway - that's why I'm concentrating more on debt reduction than trying to play the market.  Interest expense is very real and I do not get that back.  The market should bounce back.
Personal Assets - No Change to the Home Value.  No sales in the area and aside from the back-splash in the kitchen, no major improvements to it.  However, we did sell a car!!  We sold Prof's car for $4,500.  We had it set around $5,000, but with the new tire, trunk latch, and possible oil changes due - I felt it was best to get rid of it and move on.  Besides, with taxes, insurance, and title transfer - the young couple paid over $5,000 for the car.  No other changes to personal assets.  The Sonata is pimping along!!
Liabilities -
Mortgage - $131,511 - Another small incremental change.  I considered refinancing it to a 15 year fixed rate, but ultimately don't think we will live in the house long enough to recoup closing costs.
Student Loans - $36,303 - As discussed earlier, I paid nearly $300 in interest this month so the overall balance is pretty good.
Home Depot Credit Card - $3,598 - Backsplashing costs were about $250 for the entire project.  In addition, to a calendar issue, we actually made 2 payments in May (on the 1st and 31st).  Three months to debt free on this one.
Anniversary Gift - 2nd to last payment on the Anniversary gift.  Again, it's not July and I don't want her to receive it until closer to the actually greatest day of my live (July 16th)!  Otherwise, no need to panic here.
Total Joint Net Worth - $125,732...

Ouch.  The stock market definitely affected our growth here.  While cash increased and debts decreased, we still lost over $4k in Net Worth due to the loss on our investment accounts.  It stings to that, but I'm really happy with our debt paydown.  $3,350 debt reduction is nothing to snooze at and if we keep up the attitude we should be able to buy the new car without having to finance it.  It won't be easy and would require a lot of discipline, but is defiinitely doable, especially if the markets keep struggling!

Home Brewery

I brewed my own beer!

After a month of preparation and waiting, I tasted my home-brewed beer for the first time last night.  Not to brag - but it was darn good!  It tasted much like a light lager brewed in the U.S. (Miller Lite, Bud Light)  I received the entire home brew kit for Christmas and had been waiting (or procrastinating) to make the first batch.  So, not only do I save money on beers for the next month or so, I can get to brag and call myself a brewmaker!

Will I continue to brew my own beer? 

I would really like to.  Mr Beer provided the ingredients pre-measured and partially mixed.  So, the entire process was incredibly simple using their system.  That being said, I'd like to have more creative in the brewing process to make different types of beers.  I'd like to brew a Stout, an IPA, a Hefeweizen.  So, I'm going to research ingredients and the brew process more to better understand my options. 

Brewing was a great way to spend an afternoon on the weekend and will help save money in the short term.  Two great things! 

I can't wait to share my first batch with others.  I wonder what else I do in-house to save money?  Distill my own Bourbon!!!!!

Coach

Student Loan Battle

Me and the Federal Government had a misunderstanding this past weekend.

So, as I've stated before, I'm on a major student loan paydown plan even while they are currently in deferment.  So, since I started my Side Hustle, I decided to make a second payment this May for $275.  When I checked my account balance on Friday (because I'm anal and check balances at least once a week) - Nothing Happened!

The balance was unchanged.  They had taken the entire payment and allocated among all 7 loans and only deducted the amount of interest owed.  I was disappointed.  I had hoped to see a big decrease in principal balance this month, since that is how the past payments had been deducted.  I am guessing that since undergrad loan consolidation, something got lost in translation.

After an email and a call, the primary $500 payment was allocated correctly to one individual loan as wanted.  So, the balance was attacked and some interest was paid down this month.  So, the principal balance didn't fall as far as I had hoped, but overall I reduced my debt in a major way.  This will in no way impact my desire to lower my student loan debt, but was just annoying!

I could have made them re-allocate the original payment, but that would have been simply reclassifying debt.  No reason to do that.  It just means I need to keep after the Side Hustle!

So, Student Loans due are now - $36,303.46!  Gotta Keep on Keeping On!!

Housing Projects

Happy Memorial Day! 

I realize I am a day late, but I wanted to get it out there because I had such an interesting few days.  The three day weekend was a great re-charge and thoroughly enjoyed by the Professor and I. 

However, there was one moment that bears discussing.

Our house does not have Central Air.  We use window units to attempt to keep the house cool during the summer.  However, on Saturday, it was 90 degrees and humid.  The AC units were not doing a very effective job.  The Professor was NOT happy. 

The trouble isn't sleeping or lounging around the house.  It's when she is getting ready and moving from bedroom to bathroom to TV room.  The circulation isn't great in the hallways and the upstairs is always hotter than the downstairs.  So - Meltdown insued!

Which brings me to our dilemma?  We obviously don't plan on living in our current house forever, but how much should we invest in it while we live in it.  Off the top of my head the projects that COULD be undertaken are:

1.  Renovate the Basement.  A major project which would include drywalling, installing ceiling, renovating a bathroom, and adjusting electricity (knob and tube wiring).  However, we would be likely to recoup the investment upon sale as it would be a major improvement to the single family home.

2.  Installing Central Air.  Having an estimate done this week.  Not sure the ROI would be worth it, but it would exponentially increase our (wife's) happiness levels.

3.  New Windows.  Most of the windows have already been put in place, but many in the Sun Room could be replaced.  This job isn't a high priority and would only happen with major lottery winnings.

Now - we've already updated the kitchen and done some pretty sweet landscaping.  My hesitation is around 1) ROI and 2) necessity.  I worry that a $10,000 Central Air installation or $30,000 Basement would not recoup the cost and we would not get the proper use out of it if we only live in the house for 2 more years.  We may live in the house for 5 years, but it's not definitive.  Perhaps these amenities would entice us to live in the house longer - even when children are in the picture.  I would not object to it while in the middle of student loan paydown and Net Worth build-up.  If I could get another great deal like we did for the kitchen, I'll seriously consider these projects.  However, I'm still nervous with the new car coming towards the end of year about new debt.  I may need to increase the Side Hustles!

Coach

Reality TV Economics

My wife loves Reality TV.  She loves the Real Housewives (all of them), the Sister Wives, the Bachelors & Bachelorettes, and the Teen Moms.  My DVR is jam packed with more trashy television than we know what to do with.  Seriously - she can't keep up with it all.  She has to speed through episodes or delete them because the allotment fills up daily.

Anyway, while studying for classes one night, she had an episode of the Real Housewives on from Jersey which discussed the pending bankruptcy of a show member.  The immediate reaction every person has is "How did she blow all her money? She must make millions from the show!"  I believe that's probably the reaction most people have about all people on TV.  They must be making loads of money on this.  So, I decided to look into it.

The Real Housewives:  On average they make anywhere from $50k to $100k per episode per season.  Within an 11 episode season, that can be $550k to $1.1 Million.  Certainly not chump change.  Not included in this is the likely additional $50k for season wrap-up and possible premiere party.  So, the cast member are not hurting.  However, let's look into what makes this show popular:  The Lavish Lifestyle.  So, I calculated the average home price in Beverly Hills (from Zillow) sold in past 30 days to be $4,667,300 for a 4 Bed, 4 Bath home.  It's a rough estimate and likely low but gives us a baseline.  Total principal, interest, taxes, and insurance payment would $25,782 a month, or $309,384 for the year, which if the cast member was making $100k an ep would equal 28% of gross income.  Right at the standard.  Now, housing is only part of the equation as the daily catered lunch parties and shopping trips have not been calculated.  So, while the cast members certainly make a pretty penny, they are not set for life based upon the lifestyle.

Teen Moms:  On average, the Teen Moms make $60k per season.  Again, a very nice salary for doing nothing (not demeaning labor or child care).  However, these individuals are as the show title suggests, only teenagers.  They have no college education and most have no high school equivalency.  Plus, they have a baby to care for and provide for.  So, a one-time lottery winning of $60k will definitely help, but in the long-run is a blip on the radar for these girls.

Sister Wives:  This was hard to find but a found an unverified amount of $75k per adult per season.  So, with 5 adults, that equates to $375k per season.  It's noted that this family lives a relatively modest lifestyle compared to the previous examples, but feeding 16 or so kids will obviously take a toll.  I haven't seen any of the adults work, but perhaps they also earn some supplementary income to help support the family.  Again, that would be a major difference compared to first examples.

Lastly, The Jersey Shore:  This is the outlier.  In Season 2, the cast members made $10k per episode.  In a 13 episode season, that was $130k to party and have a good time.  Ironically, the Jersey members are the outliers because of how they have been able to stretch their "brand".  They have almost all signed endorsement deals, spin-offs, or appearance fees.  They used the TV show to become celebrities and then capitalize on that. 

The Shore is the main reason people get into reality TV.  The oppurtunity to become a celebrity.  However, it's this 15 minutes that keeps the person coming back and trying to keep the fame going.  For example, Kate Gosselin's 15 minutes are up.  Her kids are adorable and they've experienced things they never would have if not for TV.  However, it also ruined her marriage and got them accustomed to a lifestyle that was unsustainable.  I have no doubt she is trying to set her kids up for life, however, it's a harsh "reality" to go through.  She has to become normal like the rest of us.  Perhaps, that's the problem with reality TV.  It's no more a reality than your average sitcom.  People on TV are portraying themselves as they want others to perceive them.  Eventually, the cameras will stop and money will not come.  Too many of these contestants are not prepared for the immediate success of the show and the immediate fall from it.

It's entertainment.

Educational Degrees of Separation

It's funny how the value of an education can be so different for different people.  Take the following three examples:

Sibling A:  Graduated from a superior University with a Bachelor's in Science and then went and got a PhD from a highly regarded research facility.  Wrote a post-doctorate thesis that had a title longer than some books I've read!  He is living a extremely happy life in Utah researching and doing what he loves.  He earns $40k a year.

Sibling B:  Graduated from the same University with a Bachelor's in History and Psychology, then received a Master's in Education.  Currently working as a teacher in the inner-city charter school system making $49k.

Sibling C:  Graduated from the same University with a Bachelor's of Arts degree.  He decided to forego Graduate or Law School and is entering the business environment as a Consultant.  He'll be making $60k.

It's interesting that the most educationally regarded, is earning the least, while the least educated will be earnign the most.  Obviously, the chosen professional work has a lot to do with it as consultants are well paid for lifestyle they lead.  Research professionals are not paid as much unless they find the cure the cancer.  I just think it's this is an interesting look at what society values and what we should be thinking about as National Student Loan Debt approaches or passes $1 Trillion.

Luckily, the siblings in this example graduated debt free, so they were able to think about their careers and the life that would provide the most enjoyment.  However, many people do not have this luxury.  Which is why I think that it is important to talk about a career after college with kids.  It may be tough for a 18 or 19 year old person to think about the rest of their life, but it's irresponsible for a child to take out $50k to $100k loans just to go to college, receive a philosophy degree and then have ZERO idea what to do afterwards.  As much as college has become the next step for nearly every student, Americans need to stop treating it as a 4 year vacation from the real world and bring it back to real preparation for a future.

I hope to be able to pay for my kids college education, but I'm not sure I'm willing to pay for them unless they are willing to work for it and have a life path.  College is fun and should be enjoyed - but the preparation must be there or it's a wasted investment.  Did I get an Accounting degree because I love it?  No.  I knew that a job would be waiting for me and it provided an entrance into the business environment I both enjoyed and did well in.  It would have been foolish of me to graduate with a Math degree even though I've always excelled in Math classes throughout my life.  What substance would that have provided? 

Value of Compounding Interest

I started the Finance portion of my MBA Degree last week.  After sitting through 8 classes of Marketing, Economics, Human Resources, and other pre-requisites, I finally had the necessary requirements to sit for Financial Management.  Finance is the most popular concentration in the MBA program - however, in order to take ANY other Finance related course, the introductory course was required.  So, as frustrating as it was to wait 4 semesters, I'm glad I can finally concentrate on this area and not have to worry about Leadership qualities or Marketing decisions.

To get started - the course started with a discussion on Discounted Cash Flows.  Basically, for anyone not familiar with the idea, the calculations necessary to determine how much money you should invest NOW, to have a specified amount in the future.  For example:  I'd like to pay for my kid's college.  If I estimate that I need at least $100,000 (probably light based upon tuition increase rates), how much should I set aside each year for the next 20 years to have $100,000.

The idea centers around a common investing mantra:  A penny saved is a penny earned.  So, obviously, I do not need to invest $100,000 over 20 years to achieve that amount.  In actuality, if I assume a 5% annual return on my investments (it seems crazy in current market volatility, but its actually pretty conservative), I would only need to invest $37,688.95 today to have $100,000 twenty years from now! 

That's insane.  That's the value of compounding interest!

I truly believe that most Americans have no clue what I just talked about.  That's really where the problem with debt and savings come from (aside from the refusal to live below our means).  The general public does not understand that you can make money off of money made!  The $37,688 investment will grow at 5% a year up to $100,000.  It takes time and patience, but the money will be there.  That's why it's so depressing that 49% of Americans are not saving for retirement.  EVERY LITTLE BIT COUNTS!  $200 a month for 30 years will turn into - $159,453.23!!  $20 a month still earns $15,945.32!

It's incredible to me.  With social security likely to be non-existent in 30 years - not taking advantage of 401(k), IRA, or personal investment accounts is just stupid.  I realize times are tough and some people struggle to find an extra $20 a month - however, if your life was on the line, would you be able to give up that iPhone?  I'd like to think so.

Life's Little Roadblocks

So, I mentioned earlier that the Professor and I sold her car a few weeks ago.  Well, the pain of being a single car family and sharing a car for the first time in our adult lives has reared its ugly head.

First, on Sunday, we celebrated Mother's Day with BOTH mothers and families at my parents home.  A gerat idea and saved us from having to drive back and forth for dinner/dessert (the pain of Professor being the only child in the area).  However, my father and brothers asked me to go golfing in the early afternoon.  So, I drove out to PTHS and back home, then back towards VBCC and almost drove home to pick up my wife and return.  A lot of driving.  Professor's parents were gracious to pick her up and bring her to my parents in order to save one trip, but still an inconvenience to be dependent on someone else.

Then on Tuesday evening, while I'm on the bus to class, the Professor calls and tells me that she walked outside to flat tire on our Sonata!  So, her planned trip to yoga had to be cancelled as she waited for AAA and then had to take it to NTB.  Again, a major annoyance to be stuck because of only having one car.  Now, if we had two cars we could not have avoided the cost of the tire or the trip to NTB, but it could have been done on our time, and lessesed the inconvenience.

Sidebar:  Tires are expensive.  I've now purchased two new tires in less than a month and it just amazes me how pricey they can get.  I'm scared to think what the cost will be once we purchase a SVU later this year.  I'm thinking $200 minimum for one tire.  Good thing I have plenty of buffer built in around our budget - these one time expenses killed the car savings this month, but won't put us in a hole!

The Professor is also very savvy.  She complained about blowing out 3 tires in less than a year and received a $30 discount on the tire!!  They won't take advantage of that blonde again!!

Anyway, we both knew only having one car could create some headaches as we adjusted to it.  We'll both have to plan things well and be mindful of the other person.  Like, in two weeks, I know that Professor needs the car all day to take her National Boards!!  I'm already thinking of house projects I need to get to (light fixtures anyone?).  However, the savings will definitely be worth it when we purchase the Professor's new SVU and don't have to worry about crazy interest payments!  Car payments are not "good" debt.  The value of the car will NEVER increase and always decreases throughout the life of the car.

Payment Cycles

The professor made a comment a couple of weeks ago that has stuck with me for some time.  To paraphrase because I don't remember it exactly, "my first paycheck goes to credit card debt and my second is saving for a car!".  Now, generally, I'm excited that she recognizes the value in saving for a car she wants and being able to pay it off.  However, something else about the comment has bothered me.

That every paycheck has a purpose before it is even earned!  Debt.

It got me thinking about my payment cycle and how things get paid.  Almost all of our payments come due either the last week of the month or the first week of the following month.  So, there is a two week flurry in which we see massive debt paydown and bank transactions going on.  It is got me thinking though because it basically means (based upon my bi-weekly payment cycle) that my first paycheck each month goes to the credit card bill and utilities and my second goes to mortgage and student loans.  As the professor has already said, her first goes to Home Depot and her second goes to a car payment (future).

That sucks.  We work hard and make decent money.  It's kind of depressing to know a month in advance where my dollar are going and there's nothing I can do about it.  Perhaps I've mentioned it before and I know we could reduce our credit card bill and get some relief, but we've already done that and this past month there were extenuating circumstances (Charity donation, Medical Deductibles, Car tires). 

Ultimately, it goes back to the goal of being debt free.  We could free up $2,500 a month without any debt.  That's more money for a bigger house, bigger retirement, and bigger giving!!

It's probably also my fault that I refuse to touch our investments or other savings.  We could wipe-out all our debts right now if we chose to, but don't need to.  So, we're living paycheck-to-paycheck (in a manner of speaking).

June is a 3 paycheck month!!!  Booya!  The little things.  Life's a journey and building that paycheck is the drive I need. 

Side Hustle #1

I started a business.

On Sunday, I met a small group of 14 year old men at a High School for the first Speed & Agility Session.  I've known these boys since they were in 4th grade and now I'm helping them prepare for High School next year.

I created a 12 week program that introduces stretching, agility, and speed techniques to these young men.  For the time and efforts, I'm charging each participant $25/session or $250/year.  I had 6 young men come to the first session and the parents were very enthusiastic and expressed the possibility of more coming.
I don't own any certificates or degrees in Sports/Athletic Training, but I have done just about every workout in the book and have forgotten more exercises than most people have ever done.  Besides, I genuinely want to help these kids.  I am charging the parents because of the time it is taking away from my wife and the commitment that is needed.  Besides, I've made this unassociated from the elementary school so that it does not look like any conflict to my coaching.  At some point, I need to make more money to help bring down the Student Loan Debt and build more savings.  If I can do it helping kids I know and have experience with, it makes sense.

The price isn't outrageous, but it will definitely help our finances.  I've always said that the community of St. Louise is full of very successful people and I would be an idiot not to utilize them as I build my career.  I keep coming back to the school because it provided a great base for my future athletic and educational ability.  Now, I'm in a position to be able to help and maintain strong contacts with very successful people in the area.  It's a Win/Win in my opinion.  I don't think it is any different than my father soliciting parishioners he knows for Fish Fry sponsorships.  I'm actually putting more work in.

So, what to do with the Side Hustle Funds:
1.  Pay Down Student Debt.  30% of all income goes to Student Loans.
2.  Professor's New Car.  30% goes to buy Professor's Dream Car - hopefully can avoid future debt.
3.  Gifts.  Professor's Anniversary Gift.  For Being AWESOME!
4.  Anything left over will go to Home Depot bill.  I hate that debt.  0% interest or not, it's annoying having to pay them $1k a month.

As you can see - I'm not doing this for much fun - I created a hole by going back to school and would like to get out ASAP and BCK (Before Children Comes).

A Manly Weekend

Wow.  That was quite a weekend/Monday.  Let's start from the top and review:

Friday:  We sold Prof's (We had our first blog post by Professor last week!) VW Passat on Friday evening!  Finally!!  We met the lovely couple at the AAA center so that if they really wanted the car, we could get the deal done that day and not have another flaker like the divorcee from New Kensington (I knew I didn't like him).  That being said, the car sold for less than I had originally hoped for, but was definitely satisfied with the sales price.  The car was too old for anyone to fork over anything over $5k.  Although the KBB had it slightly over, I can understand why the market priced it a bit lower.  No love loss.  Now, Teach starts dreaming of her Acura!

Saturday:  ROAD TRIP!! The family traveled to Erie for the little brother's graduation ceremony from University.  Hurray!  Get a Job!  I'm been thinking lately about congratulatory gifts!  Teach and I were blessed with great friends and family at the time of our wedding and we love and want to reciprocate it back to them.  When does the giving stop?  Is life just an eternal merry-go-round of cash?  Let's think of all the gifts that social etiquette says we give:

Wedding gift
Housewarming gift
Retirement Present
Birthday Present
Graduation Present (at every level)
Baby Shower
Wedding Shower
New Job
Anniversary Gift

I'm sure there are a lot more.  Now, I've said my goal for living debt free is to be able to give and give to those in need.  However, I'm not sure passing $20 bills back and forth between friends and family counts. 

Sunday:  Started my Side Hustle!  I'll blog about this tomorrow! 

Professor and I also FINALLY installed the backsplash in the kitchen!  We wanted to do it 6 months ago when I installed the tile floor and we had the kitchen updated.  However, life gets in the way and Teach couldn't find a design that she really liked.  With basketball over, school on break, and the design picked - we made our way to Home Depot and gathered up all the materials.

I was very impressed by Prof's enthusiasm and vigor to work and get the project done.  Her level of involvement during the floor tiling and shelf installation was to yell score updates for the game on TV (Steelers and Pirates).  I solved that problem by asking her to bring down a radio!! (Ugh 5-0 loss though).  Anyway, she tackled the job head on and it went really fast with her help!  I'm going to assess the financial damage on the kitchen later this month, but now that it is done - I'm really happy with the results.  Probably could have knocked a wall down and gone big time, but for this house and for us - it's perfect.

Why I'm Psycho

Ok, other teachers might not be completely psychotic.

But we’re all flirting with it.

I, in particular, have noticed a steady decline in my sanity since I’ve begun teaching.  I can’t make friends the way I used to in high school or college.  People I meet for the first time sometimes frown when I’m talking, or tip their heads to the side politely like my dog does when I talk to her through a cardboard tube.  I talk to myself ALL THE TIME-- not just in the car like I used to before I started teaching. I can pretty much cry on command. 

Why has this happened?  My other friends who have begun their career paths have also reported an increase in stress levels since joining the “real world,” but none of them are crazy.  My mom raised three children (one being me, who spent my childhood doing things like drawing elaborate scenes on the underside of our couch cushions with Sharpies) and she’s normal-- even nice.  Barack Obama has a terrible job and he seems to keep it under control.

It’s teaching, my friends.

Reason #1: We are tired.

Have you ever had to give a presentation for school or work?

Do you remember the preparation you had to do for the presentation?  Creating a Powerpoint, doing research, making graphs, charts, handouts.  You had to practice your presentation, think about what you would say, what order you would say it in, etcetera.  You put hours of work into something that might take 30 or 45 minutes, tops.  After you gave your presentation, how did you feel?  Proud, right?  But probably exhausted?  In need of a stiff, celebratory drink?

Teachers give presentations for 8 hours a day.  5 days a week.  And we plan these presentations or grade papers or fill out inane paperwork or answer hundreds of emails or meet with crazy parents for another 10-15 hours on top of that weekly.  Yes, it gets easier with time and practice, but it never gets less tiring.  In fact, the longer I’ve been teaching, the better and more elaborate my ideas get, and the more tired I am.

I’m not trying to get you to create a shrine to teachers in your home or feel sorry for us.  (We know we’re awesome enough on our own without other people’s help.)  I just want you to think twice before judging me for forgetting to undo my seatbelt before getting out of my car in the parking lot at the bank and almost strangling myself. 

We’re tired, and being tired can make people crazy.

Reason #2: We are in complete control for 8 hours a day.

I think this is the main reason I’m psychotic.

After growing out of a frighteningly bossy childhood, I spent the latter part of my teenage years and my time in college being very complacent, warm, and receptive to others’ ideas and concerns.  You would have described me, for the most part, as “laid back.” “Easy going.”  “Johnny-come-lately.”* I was always totally fine with whatever the group wanted to do; more than willing to accommodate those around me. 

“Heck yes I’ll lend you my favorite shoes!”

“Oh, you’re out of bagels?  It’s cool; I’ll have the breakfast tacos.  My other fave!”

“Oh, no worries about the loud music last night, neighbor--  I eventually fell asleep after awhile.”

I am not “laid back” anymore.

First, you have to understand that I have created an environment, my classroom, in which I have complete control.  Over EVERYTHING.  Not only do my students behave impeccably this year, but they know how everything works-- from turning in homework (no wide ruled paper, proper heading, no hearts or abbreviations or emoticons) to asking questions (“Fellow classmate Raul, would you mind moving your head for one moment while I copy the notes on the board?” not “UGH I CAN’T SEE”;  “I’m having trouble understanding,” not “MISS I DON’T GET IT.”)  We even have a system where they ask to use the restroom silently. Everything operates in the most efficient way possible, which allows us to learn in the best way possible.

Then I leave school and enter the world, where I have no control.

It makes me sad.

What do you mean, 5th red light in a row?

What do you mean, “Sold out?”

What do you mean, sassy drugstore employee?

I am not simply annoyed by these things; I become livid.  I find myself saying, “I just don’t understand why _________________.”  It’s usually something to this effect:  “I just don’t understand why (I can’t have my way).”

I have no idea why I was single for all those years!

(This reason also explains why teacher professional development days, particularly ones with old teachers present, are a joke.  These teachers have been in control for 8 hours a day for YEARS-- God help the man or woman trying to tell them what to do or how to do it. It also explains why first-year teachers cannot control a classroom.  See any post from the 2010-2011 school year for proof.)

Reason #3: Our job is violently important.

(I’m on this kick of using “violently” as an adverb ever since I saw The Pioneer Woman use it to describe the movement of her back fat.  That, my friends, is prose.)

Sometimes I think that America forgets that teachers fill young minds with knowledge.   And if America does know that, I’m pretty sure they don’t really get it. 

It would be one thing if we were cranking out burgers or graphic tees or expense reports.  We could meet up with our friends or go to concerts on weeknights.  We could email our friends from our work computers, or take a long lunch, or maybe only put in 75% one day.

But we can’t.  We’re creating scientists, writers, historians, Nobel Prize winners, moms, dads, farmers, executives, counselors and teachers. We’re investing in our students, not as commodities to be shuffled through the conveyor belt, but as individuals with unique visions and gifts. Some of us are putting in 150% to make sure that these people will hopefully leave the world a little better than they found it.

That kind of effort and pressure would make anyone a raging lunatic.

But it’s something worth being crazy about.

Love,

Professor