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Friday, June 29, 2007

"The Total Money Makeover" (Chapter 2)


Continuing the theme of attitudes, Dave Ramsey's 2nd chapter is entitled, "Denial: I'm Not That out of Shape."

For many, this is the major attitude that must be overcome. I know it was for me, before Leah and I got serious about money.

People with this attitude can look at someone in their family or neighborhood who is worse off than they are and say, "See, we've got more stuff than they do." To ask a simple question: why are you worried about stuff???

Many people are leveraged to the hilt! They are paying on a mortgage, 2 cars, 5 or 6 credit cards, student loans and 2 or 3 personal loans. They are, literally, one bad day away from total financial disaster. We need to stop using thoughts like, "I only have $5000 in credit card debt," or "It's student loan debt, so it's not that bad."

We need to learn to see debt as a problem, but a problem that can be overcome. Overcoming debt takes change, though, and change is hard for many people. Quoting page 15 of the book:


Change is painful. Few people have the courage to seek out change. Most people won't change until the pain of where they are exceeds the pain of change.

It is when we look at the person in the mirror and are able to say, "I have a money problem," that we are able to begin attacking that problem.

Look in the mirror...then continue with the book!

Sometimes It Hurts

Getting out of debt isn't easy. It takes focus. It takes sacrifice, at least to some degree.

But sometimes, like today, it hurts a bit.

I know we aren't supposed to be attached to "stuff," but some "stuff" has sentimental value, and today we got rid of two pieces that were a little hard to get rid of.

First, we put some things in a yard sale with a neighbor. We didn't have enough items to have our own, so we asked if we could just combine with them. They were kind enough to allow us to do that. One of the items was a futon that we bought just before moving to Haleyville. It was our "big piece" in a den in our first house in Haleyville. Not a major loss, but it still was a part of us that moved from Somerville to Haleyville.

But, the other WAS a big deal. About 5 minutes ago, a guy drove off with a car. My 1991 Ford T-bird sold on eBay yesterday, and the man came to pick it up today...and actually hauled it off! This was the car that Leah and I dated in. We took it on our honeymoon. It's been to Kentucky many times. Faughnmobile II is no more.

But, while getting rid of stuff like this hurts a bit, the cash in my pocket is really helping things. And, then, when I think of going to the bank tomorrow to put that cash on our loan...things really start to brighten up!

...and it's just "stuff" anyway!

Gas $$ Saving Tips: A Review

Today we posted our 21st and final gas saving tip. We hope you have found these helpful. Some may save a little, while others may save a lot, but add them all together, and you've got some good tips.

Below are links to all 21 tips.

Tip #1: Use GasBuddy.com

Tip #2: Keep Your Tires Properly Inflated/Use Nitrogen

Tip #3: Combine Trips

Tip #4: Buy Gas when the Temperature is Cooler

Tip #5: Walk or Ride a Bike

Tip #6: Don't "Top Off" the Tank Excessively

Tip #7: Buy Gas on Wednesday

Tip #8: Don't Jackrabbit

Tip #9: Use the A/C Sparingly

Tip #10: Use Cruise Control

Tip #11: Use the Lowest Octane Gasoline Your Vehicle Can Handle

Tip #12: Don't Stop if You Can Avoid It

Tip #13: If You are a Member, Buy Gas at a Discount Club

Tip #14: Avoid Excessive Warming Up of the Engine on Cold Days

Tip #15: Don't Pack Heavy Stuff

Tip #16: Don't Idle too Long, but also Don't Start and Stop the Engine Excessively

Tip #17: Remove Anything that Causes Drag

Tip #18: Anticipate Hills

Tip #19: Buy a Hybrid

Tip #20: Change the Oil (General Car Maintenance)

Tip #21: Use Overdrive Gears when Possible

Got other tips, or thoughts on any of these? Please feel free to leave a comment.

Gas $$ Saving Tip #21

I am nowhere near a "mechanical" guy. Dave Barry once said of himself what I often think about myself: "I'm the kind of guy who, if the 'check engine' light comes on will fix it by putting duct tape over it." That's very much like my level of mechanical know-how.

So, I do not understand how today's tip works, I just know it does. When Possible, Use Overdrive Gears. Obviously, this does not mean to use overdrive when you are traveling at 25 mph going to the grocery store. But, when you are going highway speed (especially on the interstate), this is a great way to gain a few mpg.

Thursday, June 28, 2007

"The Total Money Makeover" (Chapter 1)


In the opening, and brief, chapter of The Total Money Makeover, Dave Ramsey tries to get the reader to understand that the problem lies with them. So often we want to blame our troubles, including our financial woes, on others. We need to answer the question Ramsey asks on page 3: "Are you ready to take on the guy or gal in your mirror?"

What a great question!

Chapter one is the first of the "attitude" chapters, as I call them. We need to take a look around and see what is happening to our finances. Ramsey is very forward in pointing out that, if things were going swimmingly with our money, we wouldn't have bought the book! He teaches us to try his way--all the way. While later chapters will actually unveil the plan, he wants to lay the groundwork now that it takes a total effort (and, if you are married, a total team effort).

Chapter one also gives the "motto" of The Total Money Makeover: "If you will live like no one else, later you can live like no one else." That statement is found at the bottom of every single page of the book, so the reader will continue to see it and believe it. To explain the motto, Ramsey writes:


It's my way of reminding you that if you will make sacrifices now that most people aren't willing to make, later on you will be able to live as those folks will never be able to live. (pages 5-6)


Chapter one is brief, but a very good introduction. Some will not want to work, so will not continue reading. I hope you will be different from them. This book contains valuable information in upcoming chapters.

Gas $$ Saving Tip #20

My dad would be very proud of the tip for today. In fact, I think most dads would. This is one of those tips that your father always told you to do, but, to be honest, you never figured out the reason for until you were older.

Change the Oil. In fact, this tip really includes all general maintenance (air filters, tire rotations, etc.). Time and again it has been shown that, when a car is properly maintained in a general way, that car gets better gas mileage.

If someone changes your oil for you, it is worth the couple of extra dollars for a "full service" visit. They will check all the things that need checking to insure good mileage. If you change your own oil, don't forget to check the other things as well.

Wednesday, June 27, 2007

The Total Money Makeover: An Overview


For those trying to get out of debt, books by Dave Rasmey are often recommended. I listen to his radio show about once a month (we can't get it where I live, so I have to listen via internet), and I have seen him at a live event in Birmingham.

He is probably best known, though, for his books. The Total Money Makeover simply walks readers through two major sections.

  • The first part of the book (chapters 1-5) deals with how to view money. Myths about money are discussed as are attitudes.

  • The second part (chapters 6-13) deals with Ramsey's "baby steps" to wealth.

In these reviews, I will simply give my impression of each chapter of the book. I own the book and have read it cover-to-cover three times. While I don't follow everything in it, I see the wisdom behind the book.

Overall, the book is helpful, and I hope you will see the value of picking it up as we discuss each chapter, starting tomorrow.


If you wish to order the book, you may click on the ad below.



Dental Insurance: Is It REALLY Worth It?

Since I haven't been to the dentist in about 2 and a 1/2 years, and Stacey hasn't been in 5 or 6 years, we're starting to plan to go to the dentist. Since we don't have dental insurance, this post is personally one that I have been examining with great interest.

Cost of Premiums: Two alternatives will be examined.
1. BCBS Dental Insurance - True dental insurance for an individual and spouse through Arkansas Blue Cross/Blue Shield is $55.20 per month, or $662.40 per year.
2. Dental discount groups - These discount groups are not true insurance, but can be purchased for pretty cheap and give considerable savings at some dentists. One example is Dentemax Discount Dental Plan available through dentalplans.com. The cost of this plan is $150 per year (and that includes any dependent children).

Expenses in Need Without Insurance: I called the dentist office I plan to go to for the first time here soon for prices. $130 for a new patient exam and x-rays, $50 for the cleaning. Assuming both Stacey and I do an initial visit, plus an extra visit each (say $80 for that visit, cleaning and exam), and that we have one filling (at $100...estimated based on this dentist's prices compared with those here) the price for all of this without any discounts or insurance would be: $620. However, I don't think the extra visits or a filling would really be that much from this dentist.

Cost of Premiums + Deductible in Use
1. BCBS Insurance - There is a $50 deductible for fillings and other covered restorative services. Coverage is 80% for preventative and minor restorative services. Thus for the visits listed above with this insurance: $114 'co-insurance' + $50 deductible + $662.40 = $826.40.
2. Discount Plan - In depth checkup twice at $33 each; 6 month checkup twice at $22 each; Adult Teeth Cleaning 4 times at $43 each; One filling at $65. Total cost: $347 at the visits + $150 for the plan = $497.

Conclusion: Dental Insurance really doesn't make sense, unless you are going to be needing major restorative service (in which case the BCBS plan above only pays 50%, and pays out a maximum of $1,000 per member per year . . . so it still might not be worth it). A dental discount plan may be very beneficial, depending upon where you live. I would have to drive at least an hour to find a dentist which accepts the discount plans described, so it's not worth it to us. Since I've only had one filling ever in my life, I don't expect to need any for a lot longer. So dental insurance and discount plans aren't for me. Instead, we'll try to deposit a little extra each month into savings, and spread it out over time in that way, “self-insuring.”

NOTE: Over the following weeks I will return to this series (Insurance: Is It REALLY Worth It?). I believe it will be beneficial to examine car insurance, cell phone insurance, and extended warranties or service protection plans, although perhaps not in as great of detail. If you have other types of insurance you would like me to examine, post a comment, and I'll consider doing so. This is the last post concerning insurances relating to health, though.

Gas $$ Saving Tip #19

The tip for today may not be feasible for everyone. It certainly is not for me at this time. However, if the cost is worth it, this may be the best tip of all:

Buy a Hybrid.

Many people, though, see "55 mpg," go out and get themselves into major car debt. Hybrids are not cheap. However, if you are going to use the car primarily for city driving (stop and go), and you can get a nice used hybrid at a decent price...and can pay cash for it...then this tip may save you a ton of money.

To help you do some research, here is a link to hybridcars.com. While, obviously, they are trying to get you to purchase a hybrid, the site is still good for a starting point in your research.

Also, it's not too far in the future that we will see cars that are all electric. In fact, Chevrolet is coming out with the Volt, possibly by the end of the year. Here is some information on that car.

Gas $$ Saving Tip #18

Monday afternoon, I broke this tip, oddly enough because I was thinking about this post!

Today's tip is Anticipate Hills.

You know how you are rolling along and then, all the sudden, out of nowhere, there is this hill?! Okay, you know it doesn't work that way. We usually know where hills, especially large hills, are. And, when we get half-way up and then press down on the accelerator, we kill our gas mileage!

The best way to handle hills it to give your car some extra "juice" for the last 100-250 feet before ascending. Do this, and you will save a lot of gas, especially if you are in extra hilly terrain.

Tuesday, June 26, 2007

Shall Our Brethren Go To War Alone?

The flea and an elephant crossed the bridge. When safe on the other side
the flea said to the elephant, “Boy, we sure did shake that bridge, didn’t
we?”

That little story is all too characteristic of what we see in many congregations of the Lord’s Church. A minority of the people do a majority of the giving and supporting the work of the congregation. Christians must come to understand the shared responsibility they have with their brothers and sisters within the congregation. In chapter sixteen verse two of Paul’s first letter to the Corinthians, Paul instructed that “each one” of the Corinthian Christians was to lay something aside. Every single Christian has shared responsibility in the Lord’s Church; that is true in regards to our financial giving as well. However, far too often in the Church today some people give 25% while others will barely give 2%. This problem has been caused by people not carrying their fair share of the load. The story is told that J.P. Sanders saw a group of ants carrying a dead grasshopper along on their backs. Looking a little closer he saw that some of the ants had climbed up on the grasshopper and were just getting a free ride. God wants His children to get off of the grasshopper and start carrying their share of the load.
One of the greatest examples of this shared responsibility is seen in the Israelites occupation of the promised land of Canaan. In Numbers chapter 32, before Israel entered into Canaan, the tribes of Reuben and Gad requested that they be allowed to settle in the land of Jazer and the land of Gilead. They desired this land because they were cattlemen, and they saw that the lands of Jazer and Gilead were good for cattle. Moses replied to their request in Numbers 32:6 with some very penetrating words saying, “Shall your brethren go to war while you sit here?” Moses was making the point that the tribes of Reuben and Gad had an obligation to support the other tribes of Israel as they went to conquer the land of Canaan. The leaders of these two tribes reassured Moses that they would not abandon their brethren. The Bible tells us that Reuben and Gad were allowed to occupy that land only after they fulfilled their obligation to help their brothers and sisters take possession of the land of Canaan.
In the Church today we are at war with the army of the Devil in the same way that Israel was at war with the pagan nations of Canaan. Paul stressed this point throughout his writing. In Ephesians 6:11-13 Paul encourages his brethren to, “Put on the whole armor of God, that you may be able to stand against the wiles of the devil. For we do not wrestle against flesh and blood, but against principalities, against powers, against the rulers of the darkness of this age, against spiritual hosts of wickedness in the heavenly places. Therefore take up the whole armor of God, that you may be able to withstand in the evil day, and having done all, to stand.” He admonished Timothy in 1 Timothy 6:12, “Fight the good fight of faith,....” And in 2 Timothy 2:3-4 he warns, “You therefore must endure hardship as a good soldier of Jesus Christ. No one engaged in warfare entangles himself with the affairs of this life, that he may please him who enlisted him as a soldier.”
This war which Paul describes can be won, but we need more preachers, more missionaries, and more benevolent acts so that the love and Lordship of Jesus Christ might be demonstrated to a lost and dying world. All Christians must understand that they have a responsibility to the Lord and the Church not to let their brothers go to war while they just sit there and do nothing. All Christians must take their responsibility seriously to support the war effort. That includes people of all ages, people of all economic levels, people of all social statuses, and people of all different situations in life. If one is a Christian then he has an obligation to give to the Church.
While most would deny the truthfulness of “faith only” salvation, too many of those same people in the Church are practicing “faith only” religion. They say that they believe in Jesus Christ. They say that His body is the most important thing in their lives, but they fail to demonstrate that faith by parting with their precious money. James said in James 2:17-18, “Thus also faith by itself, if it does not have works, is dead. But someone will say, ‘You have faith, and I have works.’ Show me your faith without your works, and I will show you my faith by my works.” Which is worse? Preaching “faith only” salvation or practicing “faith only” salvation. I would hate to be guilty of either on the Day of Judgment.
Wendell Winkler in his book Giving With a Purpose, a Promise, and a Performance illustrates this idea of working together by referring to the fact that the Empire State Building does not fall because every brick bears its own weight (44). We must all bear our own weight so that the Church of our Lord may stand strong and tall. Ask yourself the question, “If everyone in my local congregation gave in the same way that I give, what would be the result?” Would you have to let the preacher go, stop supporting those on mission fields, and close the doors because the light bill couldn’t be paid? Or would you be able to support more missionaries, give the preacher a raise, and reach out to the community in ways that your congregation never has before? We must not allow our brethren to fight the good fight and go to war alone. We must carry our own fair share of the burden of the cross of Christ. We owe that to God, and we owe that to our brethren.

WYTI Links: 06.26.2007

I'm doing these a little early...I will be moving stuff throughout the day.