Continue reading ‘Money Tips from Hipsters’ »]]>

Welcome to 2013 everyone! I entered into the new year with a cold, and I was out of commission for 10 days. No better way to start the new year right?! I love the new year, and the opportunity to start fresh. I enjoy looking back on what went well over the last year, and what went wrong, as it allows me the opportunity to look forward on what I want to make right in my life. The new year makes me think about what areas of my life I can improve on, and what areas I need to scale back on.

In the area of money, I know looking back can be depressing as you reflect on money spent, accumulated debt, or how much you don’t have. Have no fear, I am here to encourage you along your journey. As a blogger who writes about life and finances, I am always looking around me for new ways to manage my finances. I have come with these money tips, that are straight from the streets of San Diego, and were taught to me by the life of a Hipster.

Hipster Money Tip #1: Don’t Buy Designer Clothing – Used Clothing can be cool too. Shop at thrift stores to search for cheap throw back clothing. Multiple layers and patterns is the key (see image). If you have no luck at the thrift stores, just borrow your girlfriends jeans.

Hipster Money Tip #2: Don’t Waste Money on New Music – Buy used Records for cheap at a record store. Learn to listen to the classics like Marvin Gaye, Ella Fitzgerald, Miles Davis, and Dianna Ross. There are lots of ways to cut back on entertainment. Music, movies, internet, and cable alone can take up a large chunk of your monthly budget. Utilize companies like Redbox and netflix to meet your entertainment needs at a lower price.

Hipster Money Tip #3: Don’t go to the Salon – Dye your own hair or shave half your head yourself in order to save on hair and beauty expenses.

Hipster Money Tip #4: Don’t Shave – Guys, grow a mustache, or a beard and cut back on your own shaving product expenses. Ladies, grow out your armpit hairs and allow the breeze to blow your arm hairs. There is no need to waste time on maintaining your body hair, just let it grow and breathe. Or check out the Dollar Shave Club, and shaving will only cost you a $1 a month.

Hipster Money Tip #5: Don’t Drive – Shop local, walk your neighborhoods, and ride your bike to your local grocery store. This will save you lots of money on gas, provide exercise, and overall improve your quality of life. Or just buy a Prius.

Hipster Life Tip #1: The truth about Hipsters is they live out their passions and express who they are in multiple ways. I actually aspire to be a hipster one day, but my wife won’t let me . Whether you like Hipsters or not, you have to appreciate that Hipsters have found ways to cut back on their expenses and still be stylish. Look around you, there are life lessons to be learned from all walks of life. Learn from the Hipsters.

-Matt

Photo Credit: Single Dude Travel

Continue reading ‘No Car Payment’ »]]>

Do a little dance, make a little love, get down tonight! Imagine me doing a little shimmy and shake dance throughout my house. Scary picture, sorry. The reason for all the dancing is my wife and I paid our last car payment this month. Our car payment was $160 a month, and we have been making that same payment over the last 4 years. It feels incredible to no longer have a car payment.  We are now considering what to do with the “extra” $160 a month, now that it is freed up from the car payment.

One option would be to add the $160 to our debt snowball, and pile on more cash to our student loans. This would rapidly decrease the amount of time it takes to pay off our student loans. We would be contributing $460 a month to student loans, which would allow us to pay off the debt 2 years earlier (December 2015). Another option would be to start contributing to a Car Fund. $160 would go into the car fund each month, and it would eventually go towards the purchase of our next vehicle. $160 each month over the next 4 years would give us a balance of $7,680, towards our next car. As you all know cars are not cheap, and they are a necessity, so I am leaning towards the second option.

After initially wanting to go with the car fund route, I crunched the numbers using a student loan calculator. If we continue to pay $300 on our Student Loan, we will be finished paying the loan off in December 2017. If we add the $160 to the Student Loan each month, we will pay off the loan on December 15th, 2015. From December 2015 to December 2017, if we added $460 a month into a Car Fund we would end up with $11,040, to put towards a new vehicle. If we had an end date of December 2017, we could shoot for two different outcomes. The first outcome is to continue paying the $300 on the student loan, and save up $7,680 for a car. The second outcome would be to pay off the Student Loan by paying $460 a month, and have $11,040 in savings for a car. Sounds like a no brainer right.

The truth of the matter is if we pay off the loan by 2015, we will then have $460 additional each month to use as needed. That is a huge chunk of money freed up, and a big stress reliever by having no remaining student loan payments. This goes to show how big of an impact the debt snowball can have on your finances. If you’re willing to stay the course and add $50 to $100 more each month, that can make years of difference in your debt payment plan.

I encourage you to continue pushing towards your debt payment goals. Its been a long three years for us in this journey; we have gone through some lulls, and setbacks in our finances. In the long run though, I can see how our persistence will pay off. Although there is so much to think about financially, I do see the light at the end.

For those of you that have experienced success in your debt snowball repayment plans, feel free to share/ encourage the rest of us in the comments below.

-Matt

Continue reading ‘Discover Your Mission’ »]]> About a month ago I participated in a training course called 7 Habits for Highly Effective People. The training is based on the popular book by the late Stephen Covey. The purpose of the training was to gain some tools and habits to become a more effective supervisor and manager, but in the end I gained so much more. I discovered part of my mission.

During day 1 of the training we were asked to work on a Mission Statement. To help facilitate that process we went through an exercise where we wrote out what we wanted our life to look like in five years, and we imagined what we wanted to be doing at that point in life. During the writing and reflection time some of my deep heartfelt passions were spelled out on paper, and it became clear that I currently was not fulfilling any of those passions or dreams. The key items that came off the page during this exercise were things that I truly enjoy doing:

- Being Outdoors
- Seeking Adventure
- Working with Youth
- Being a mentor

The following weekend after the training ended, I began a quest to find ways to live out these clear passions, and I came across Outdoor Outreach. Outdoor Outreach seeks to transform the lives of At-Risk Youth by connecting them with activities in the great outdoors. This organization incorporates the love that I have for the outdoors, as well as the desire I have to mentor youth. My first step was to get involved by volunteering, and my first volunteer day is this weekend. My second step was to become a part of what the organization is doing around my city, so on the right side of the page you’ll notice I am raising money for their Annual Reach the Peak adventure race. All money raised goes towards the educational programs, and trips that Outdoor Outreach puts on for these youth each year.

My encouragement for you is to take a moment and write out your Mission Statement. Do the exercise of writing down where you want to be in 5 years, and allow that to direct you towards your next steps. Not everyone gets to do what they love as their job, but everyone can find ways to spend time and energy doing what they love. In my case, I was looking for my job to fulfill all my passions and my life mission, but sometimes your job merely funds your life mission.

-Matt

Continue reading ‘Pay Now and Save Later’ »]]> How can I explain my absence and lack of consistency lately? I have been trying to blog based on new inspiration, or out of a desire to blog, instead of out of the need to blog.  I don’t know how often you can expect a post from me, but please stay tuned, and hopefully you will find encouragement when I post about recent life events and financial quandaries. Follow me on twitter if you want to converse more frequently.

Today’s blog post is about areas in life where it is better to pay more now in order to save more later. There have been two instances lately where I was given the opportunity to pay a little more upfront in order to save a lot later. The initial payments were painful, but the savings in the future just made perfect sense.

In the first situation I bought four new tires for my truck, and it was going to cost me $59.99 for alignment. The serviceman said that if I paid $160, I would receive lifetime balancing on my truck. For as long as I own my truck and I returned to this service center, I could get free balancing. My truck is only 5 years old, so you can imagine how many balancing appointments I will have in the future. I do realize that this particular business has essentially guaranteed my business for the lifetime of the truck, but I could technically just come in for balancing. In this case, I paid $100 more, and saved possibly $1000 over the lifetime of my truck.

The second situation has to do with my cell phone. I recently was promoted at work, and part of my new positions responsibilities is the need to be On-Call after hours. In order to fulfill these responsibilities the company provided me with a cell phone. Last November my wife and I signed up for new cell phone plans, so I wasn’t close to a new upgrade or cancellation. So in this case my predicament was keep paying for a cell phone I didn’t need, or pay the cancellation fee. Turns out it was $320 to cancel my phone, which would save me $70 for the next 9 months. Again $320 is tough to swallow at first, but the savings over the next 9 months far out weighed the initial $320.

What about you, what is one situation where it made logical sense to pay more now, in order to save later?   Would you rather pay the cheaper price, or wait things out, in order to avoid paying the large amounts up front? I look forward to your responses.

-Matt

Continue reading ‘Living Abundantly with Very little Money’ »]]>

Although I am frugal by nature, thank you Grandpa for passing it down to me, I am not frugal to the point that I stop living. I was reading a blog post by Laura Vanderkam about Not living Simply. She encouraged her readers to not live simply, but rather take advantage of the life that you have now.

A perfect example of this is my oldest sister. She currently has 5 kids, and this is their last few weeks of summer break. She could have kept them home for the last few weeks before school, because it’s hard to go do anything with 5 little ones. Instead though, she decided to head out by herself with the 5 munchkins and go to Papa’s farm. Money, time, effort, and lack of sleep were all good excuses for not going, but she knew that a week on the farm with Papa would be lifelong memories for her children. Those 5 kids are only children for so long, so its important to make the most of that time.

Money should not stop you from enjoying life or experiencing life. If you are at the point that you’re obsessing about money to the point that you’re unhappy, give it all away. People can live on very little money all over the world, and still have extreme joy for the life they have. Don’t let money hold you back from really living. Americans have a skewed perception about needs and wants, and it can be easy to look around and feel like you have very little to be happy about.

Go camping, go fishing, go to the beach, throw a frisbee at the park, have a bbq at your house, invite people over for a meal, and allow yourself the freedom to enjoy life despite your financial concerns. If all a dog need is a comfy place to lay, a long walk, and some good food, then I think we can find ways to live abundantly with very little money.

-Matt

Continue reading ‘Long Term Savings is Not Cool’ »]]>

The United States Savings rate for retirement is on decline for the third year in a row. Studies show that 43% of people have less than $10,000 in saving for retirement. I have noticed this trend in my own generation, as well as in my own life. Why is it so difficult for us to save for the long term? The answer resides in the fact that long term savings is the opposite of our cultural norms.

When was the last time you saved up tweets for a year, and then dispersed them all at once at the end of the year. How long does it usually take you to try the new restaurant up the street? A year? Two Years? Or the next friday night? Saving my logins to Facebook for over a year would be unheard of. Our culture runs at such a rapid pace that if you save for the long term, you’re guaranteed to miss out on the NOW!

New fashion styles go in seasons, giving you only a few months to quickly buy up the latest trends, or cross your fingers that your new favorite jacket makes it to the clearance rack. New technologies are upgrading so quickly that you two year old cell phone looks like it’s from the stone age. Our culture tells us to consume now, or miss out on the latest commodities. Buy now, or never experience true happiness.

Long term savings is boring. There is no instant gratification, there are no highs and lows, but just consistent discipline of putting money away for another day. You might as well wear a No Fun Badge on all occasions.  As much as we all could try and spin it Long Term Savings is not cool.

The act of saving for long term items can be extremely discouraging, because your instant gratification nerve is not being stroked. The moment that Long Term Savings becomes cool is when you pay cash for your next car, you become debt free, you pay more than a 20% down payment on your house, or when you realize that you have over $2 million saved for retirement. That’s cool.

Although in the moment long term savings is a drag, a cramp on your style, and not cool to everyone around you. In the end it provides you more than the next gadget can provide, peace of mind and financial stability.

-Matt

[Photo Credit]

Continue reading ‘Paralyzed By Fear’ »]]>

I am currently reading a book with a few other friends, and I came across a sentence that gave me some insight into the person that I have become.  The sentence reads, “People don’t want to be told that their experiences were wrong…” This sentence struck a chord with me, and I started to see that many of my decisions were based on fear of being wrong.

In my past I have stayed away from relationships that might not work out, I tried not to involve myself in activities that people would frown upon, or make a decision that would reflect negatively on me. Instead I have sought after safe, secure, and rational decision making. Some people live with no regrets, but I tried to live with no wrong experiences.

The problem with that mentality is it can be paralyzing state of mind to live in. No human being can live like that. I have a long list of wrongs, and experiences that I do regret. By I am now mature enough in my own identity to see how those experiences have shaped me.  It’s like a tattoo that you got when you were 17, it wasn’t wrong to get that tattoo (unless it was a snake on your neck), but that tattoo is a reflection of who you were in that moment of your life. My hope is to change my mentality from making decisions out of fear, to making decisions out of convictions, passions, and love.

When your passions drive your decision making, your life will feel less safe, and more alive. Your passions will compel you to take risks, be bold, and bring change. I encourage you to experience more and question less. Don’t fear failure, but rather fear mediocrity.

-Matt

Photo Credit

Continue reading ‘What is a Payday Loan?’ »]]>

A payday loan is designed to be a short term loan that is secured by a future paycheck.  These types of loans rely on the borrower being able to show proof of employment or other payroll records.  However, some companies are now offering wonga online cash loans without having to provide any documentation.  Here is what you need to know about the payday loan process.

How They Work

The payday loan process works by a lender providing a short term loan to a borrower that is to be repaid quickly.  The typical loan term is one day to one week.  To qualify, the borrower typically only has to provide a paycheck stub.

If you want to take out a loan, you simply need to go to a payday lender.  The lender will typically ask for a postdated check in the amount of the loan, plus interest and fees.  On the date the loan is due, the borrower is supposed to return to the lender and repay the loan in person.  If the borrower doesn’t, the lender may cash the check.

However, many lenders are now moving online and requiring less documentation.  If documentation is required, it can typically be provided by email, scan, or fax.  This allows borrowers to request a loan in the privacy of their own homes.  Once the loan is approved, the money is direct deposited into the borrower’s account. And when the loan is due to be repaid, it can be electronically withdrawn.

Who Is Getting Them?

People of all income levels and histories!  In fact, there was a recent article by The Guardian that highlights how Payday Lenders are Opening Shops on High Streets, highlighting how lenders are moving into more affluent areas and creating better looking store fronts to attract higher end clients that may not have visited them before.  This just continues to show that payday loans are becoming more popular to help people get by when needed.

-Matt
Photo Credit

Continue reading ‘Rise Before the Sun’ »]]>

Last week I came across an article on Fast Company and I was immediately intrigued by the title. The article was an excerpt from a book titled, “What the Most Successful People Do Before Breakfast.” The author, Laura Vanderkam, gives a bird’s eye view of how CEO’s, School Dean’s, and other highly successful people spend their mornings. My initial thought was that successful people take advantage of the early morning hours to be extremely productive prior to corporate meetings, interviews, or travel. I assumed that CEO’s are slaves to their jobs. For the most part though, the most successful people take the opportunity to rise before the sun in order to balance their lives.

Working moms wake up early with their kids, and dedicate the early morning hours to connect with their little ones. CEO’s rise before the sun to take care of their bodies by running four miles, and by eating a nutritious breakfast. Others wake up early to focus in on their spiritual life; so they pray, read, or meditate prior to doing anything else that day. Each successful person had to make a decision about what was most important to them, and they chose the morning to allow time for those areas of their life.

Laura Vanderkam asks her readers to imagine what a great morning would look like in their life. She goes on to encourage her readers to then take the steps to build that habit into your daily routine. My biggest take away from this short book was that we each own the morning. No job owns our morning, no spouse or child owns what you do in the morning (except if you still have an infant at home). Just like in personal finance we encourage people to pay ourselves first, you also can pay yourself first with how you spend your morning. The morning is your time to spend as you wish. Use that time to strategize your career plan, to connect spiritually, to contribute to your health through yoga, or to spend more time with those closest to you. Whatever your morning looks like I encourage you to rise before the sun, and pay yourself first.

I imagine my mornings as a time to clear my head and think about how I want to spend my day. I might not take the authors advice and do the same thing every morning to form a habit, but their may be a season of life when that is needed. I will take her advice and take advantage of my time to either run before the day begins, or I may make coffee and think about where I currently stand in my career, and where I want to be in a year or two.

The stories and suggestions in this book are a great resource for how you could spend your morning, and it will show you how a few changes in your daily routine might make you more successful in life. The book will only cost you $2.99. I am not paid to do this review, but I was so encouraged by the book that I felt the need to share.

-Matt

Photo Credit

Continue reading ‘Connect’ »]]>

I have been thinking about community lately, and how much the human race naturally seeks to belong to something.  This is why the internet has been such a incredible phenomenon, because it allows humanity to connect in more ways than ever before. Facebook allows people to connect with people of the past, present, and  even make new friends. Twitter allows you connect with people of your personal interest, bloggers, celebrities, corporations, and close friends. Successful start up companies of the last 5 years have all been related to creatively connecting individuals in a new way. Youtube, Instagram, Pinterest, Facebook, Twitter, Linkedin, etc… The list goes on, but the common thread is connectivity. Connectivity is not limited to the internet as social groups still exists. Running clubs, bike clubs, tennis clubs, HTML clubs, blogger clubs, and book clubs all still happen on a weekly basis. The purpose of those groups is to connect on a common interest, and do the things you enjoy together.

The human race was created to live in community with one in another, and what I am realizing is humans thrive when they are connected in a deeper way with others. I say thrive, because think about the feeling you have when you first meet someone and you realize the other person enjoys similar things. For instance, I meet another dude at the coffee shop, and we start talking about TV shows (I know random), and he brings up that his favorite TV show in the last 10 years was LOST. I love lost too!!! Instantly we have a connection, and I know that I am not the only one in this world to have that same feeling. There is something monumental about that feeling of not being alone.

Not being alone on loving the TV show Lost is a silly concept, but to not be alone in the hurt of a miscarriage can be life changing. When humans can connect on the pains of life, there is healing in the knowledge that someone else has been down that same road as you. There is healing in that connection, because you understand one another differently than anyone else can understand you. You both have a common bond of going through similar pains.

Humans thrive off of similar desires for the world. Individuals cannot make an incredible impact on the world alone, but as a group they can bring about significant change. As a leader in business, as an entrepreneur it is important to surround yourself with other individuals with similar passions to help you achieve your professional goals, or to support you in merely living out your convictions. Individuals are looking to connect with each others common interest to achieve something.

The purpose of this post today, is to encourage you to connect in a new way. In order to thrive in life you need to be a part of some form of community. In order to heal you need to connect. One area of connection/community that we didn’t discuss is the importance of vulnerability in your connections. Vulnerability can be a scary thing, because we fear rejection and think we are alone in our feelings. The truth is, vulnerability opens your life up to more connections with people. Take a risk, connect.

-Matt

Photo Credit