A Different Taking on Creative Saving

At my local bank, they have a giant banner of an attractive professional woman beaming her broadest smile while containing the slogan, "Saving is the new spending."

That's a great sentiment.  Unfortunately, it is merely wishful thinking.  My research indicates that with high unemployment, anemic interest rates and high debt levels, saving is at virtually an all time low.  That is an unfortunate reality.

For my money, I think David Bach is one of the best sources for creative saving.  I've read all his books and while I don't agree 100% on some of his priorities, (eg. he says 'pay yourself first', while I advocate giving to God first), I really like his ideas on ways to save and making it 'automatic'.

I also stumbled on an article over the weekend that has a slightly different take on saving.  So in the spirit of offering a wide variety of viewpoints to encourage thinking and good money management, I'm linking to it here. I want to send up a big thank you to Yahoo Finance for posting it in the first place.

Sustainable, Self Sufficiency - The Third Phase of the Revolution, Part 3

Let's Review:

In phase one, we began giving 10% of our income to God, became debt free and started saving 10% of our income in various investments like mutual funds through our 401k.  We also started an emergency fund.

Phase two has seen us start a process of raising our giving and saving to 20% of our income.  In addition to a 6 to 9 month emergency fund, we are storing up a minimum of 6 months supply of staple household goods, also in case of emergency.  The logic behind this is simple; if a time of long term income loss should strike, we will be able to survive and even thrive in those circumstances.  The formula behind phase two is built on Bible passages in Genesis and Leviticus. 

I freely admit, that phase two is easier for Brittan and me than it would be for some, because it is just the two of us.  Two people require less income and fewer stored goods than a larger family.  But it seems to my simple mind, that it is even more important for a larger family to think ahead.  I'm just sayin'.

Phase two was still in formulation when a perfect storm came together to create phase 3; sustainable, self sufficiency.  First, the economy was sitting on a 'bubble', which, as you are well aware, has burst.  Second, political direction of this country became quite unsettling to me as I heard about a future of higher taxes and increased Government control of all areas life.  I am not interested in any Government oversight of my life, aside from National Defense.  Third, I began resenting the ever increasing prices, and ever dropping quality of produce and other supplies available from supermarkets and big box stores.  Fourth, I started reading the labels on things I put in my grocery cart and grew disconcerted over the chemistry experiment that has become the American diet.  Fifth, I began thinking about factory farming, both in terms of row crop agriculture and that of livestock.  Sixth, my health was falling apart, including severe obesity and a variety of heart and nervous system disorders.

I looked at all these things and was not happy.  I am not the kind to take adversity lying down.  I'm a fighter.  I have taken my share of 'beatings' in life, but I won't stay on the mat.  It's not the way I'm wired. 

I'm also a control freak.  I need to be in control of my own circumstances, my own destiny (note:  I freely, willingly, totally know that ultimately, God is in control.  That fact comforts me.  But God's control should liberate me to act, rather than medicate me into complacency or resignation).  I have a few good years left before my 'sell by' date and I will not surrender the reigns to any man, organization or Government.  If I want a better life, better health, better environment, it is my responsibility, and no one else's, to take steps to ensure that.

Over time, a plan of action came together.  I'll describe it in part 4.

Sustainable, Self Sufficiency - The Third Phase of the Revolution, Part 1

My financial journey has been a scenic one.  It has taken many twists and turns.  Some of the views have been breath taking.  Others have been rather terrifying.  But I have enjoyed every minute.  I love sharing my story and my vision for universal financial freedom with anyone who will stay still long enough to listen. 

Now that we are debt free (except mortgage, but that will be soon enough), I have turned my attention to what it means to live a 'debt free lifestyle'.  I thought I would move down a path of 'wealth building', but that one is well worn, having been travelled by many who are far more knowledgable than I.  Two of the great ones are: Dave Ramsey and David Bach.  I love their wealth building ideas.  Since they've already done the heavy lifting, and since my name isn't Dave, I took another path.  Fortunately for me, my bride has been willing to walk this new trail with me.  I am a lucky man.

As you might guess from the title of this weblog, I call it "Recession Proof Living".  The website will be, www.recessionproofworld.com.  The space is reserved, but not yet built.

If you read IOU NO MORE, you know I introduced the subject of putting your finances on 'Cruise Control'.  If you haven't read the book, get a copy right away.  If you can't afford a copy of your own, borrow one.  I'm serious.  The plan will change your life.

Turns out that for and ADD charged, Type A male, like me, 'Cruise Control' was boring.  Smart, but not satisfying.  So I began to investigate why I was feeling unsatisfied.  I came up with several answers. Some  were spiritual, some were political, some were personal.

Politically, I am very concerned about the direction of this country.  Both parties worry me.  I see Govt. getting bigger and the American wallet getting smaller.  My 401k hit the tank like everyone else's did.  I have no confidence in the future of Social Security nor in taxation.  I began to ask myself what would happen if this country had a total meltdown.  What would life look like?  Would a 3 to 6 month emergency fund be enough?  Were others wondering the same thing?

Personally, I am a control freak.  I need to be in control of my own destiny.  And I felt at the mercy of the Government, my employer and the big industries that dominate supply, demand and pricing of commodities and other necessary goods and services.  I look down the road and am bothered about what I see.

I'm not a Global Warming believer.  I hate fear mongering politics disguised as concern for the earth.  Bah.  Humbug!  But I do have some things in common with the environmentalist fringe.  I don't like the way we're mishandling resources.  Traditional farming methods are destroying the soil quality of our planet at an alarming rate.  We are washing tons of chemical fertilizer waste into rivers and streams, poisoning the water and the life dependent on those waters.  And whatever you do, don't get me started about commercial animal production....Oh, by the way, have you looked at the label on a can of pretty much anything we put in our shopping carts on a weekly basis.  We are pretty much ingesting the entire periodic table.  I'm thinking that might not be a good thing.  And we're paying for the privilege. 

On a final personal note, I was born to live in the country.  I need room to roam.  I need to work in the soil with my hands.  I need the fresh air, the livestock....the manure.  Green Acres is the place to be.  Living in the suburbs, spending hours of my day in commuter traffic, punching the clock, is not 'cruise control'.  It's torture.

But it was reading the Bible that changed my whole perspective.  God has a way of grabbing hold of me, shaking me like a rag doll and pointing out my obvious blindness.  What I discovered about saving and giving was life altering.  It was also liberating.  Phase two of the Revolution came directly as a result of my Bible study.  Phase three is, I believe, a natural consequence of phase 2.  I'll start explaining myself next time.

"Cash for Clunkers", A Trojan Horse of a Different Color?

The President's Cash for Clunkers program has, by most reports, been a tremendous success. Big enough that Congress has 'gone back to the well' for more cash to back it. Where are they getting that cash? Oh, that's right, from the very tax payers who are asked to buy the cars. So in essence, we're being asked to pay taxes to support our tax credit. Anyone dizzy from this circular reasoning yet?

It is not the logic, though, that has me miffed. What has steam coming out of my ears is our Government bribing Americans to get into debt. As already mentioned, it is disguised as a tax credit. But it is a tax credit paid for by tax payer money. It is marketed as a call to 'save the environment, but is in reality an attempt to bail out the newly Government owned Automobile companies. It is billed as a way to save money at the pump, but is in reality a way to get Americans into debt. It may very well turn out to be the automobile version of the 'subprime mortgage'.

Oh, and because the 'clunkers' are all being destroyed, the inventory of cheap used cars is being dramatically reduced, forcing low end used car buyers to pay more. And, finally, the program is pushing up the prices of new cars, which were falling.

Debt is bad. But when it's debt on a depreciating item (I can't bring myself to use the words, depreciating asset, because that sounds like an oxymoron when debt is attached to it), it's doubly bad. If you have not fallen into this trap yet, I urge you to look away. Don't inhale that new car smell. Don't let the 'fever' weaken your resistance. Stay on your winning plan of recession proof living.

On the happy front, I found an article that says the 'Cash for Clunkers' program may be losing some momentum. We can only hope. Read it HERE.

I Love My Garden

It's hard for me to describe how much I enjoy growing fruits and vegetables. Of course, the money saving is part of it. The fresher, healthier food is part of it. The exercise is part of it. But there is something healing, even spiritual that happens when I work to grow things or deal with animals and livestock. I have subsistence, sustainable farming in my blood. All I'm missing is the farm.

I hate my camera phone. I really should get myself a real camera, but I'm including some seriously over exposed pics of cantaloupe, cherry tomatoes, summer squash and some yellow hot peppers I don't recognize. They are part of a "Caribbean Mix" of pepper seeds. I can assure you they are sweet and they are HOT!

Herb Garden

Brittan and I planted our herb garden yesterday. We decided to make it an inside 'kitchen garden', meaning, the majority of herbs will be grown in a space in our kitchen. We took a couple of the grow lights from the basement and put them up under one of our cabinets. We went to the Kingdom of Wal-Mart and bought some colorful pots, then went to work planting our seeds. Because we wanted something bright to add visual interest, we paid a little more for the pots than we normally would. There are quite a few herb sized plastic pots (6 to 8 inch) that can be obtained for less than $5. Another great option is to cut milk jugs to the size you want, or to use things like sour cream or cottage cheese containers. Simply poke some drainage holes in the bottom, place a saucer or something under them to catch any water that drains out, and away you go.

Even with spending a little extra for colorful pots, we were able to plant 10 different herbs under grow lights for less money than growing 7 herbs in one of those fancy 'aero garden' thingys.

Don't misunderstand, I don't hate the 'aero garden'. I'd have one in a minute. They are excellent space savers and produce great results. I'm just into saving money. An outside herb garden would have been less expensive still and could be used to add visual interest via a window box or an herb patch near the house. Our rosemary, for example, is planted in an urn and looks like a little tree. We keep it on the front porch during warm months and move it inside to the entry area during the winter. I will put one of my chive pots outside and let it go to flower later this summer. I happen to think chive flowers are pretty.

Finally, our seeds and soil together cost us around $18. We will have visual interest and a tasty harvest all season (including drying some herbs for the winter) for far less cost than buying fresh or dried at the market. Another side benefit, Brittan and I spent a delightful day doing something fun together.

Let me finish with an important safety tip. Last year our herb garden failed miserably because we over watered them. Most herbs, except chives, aren't all that demanding. And cilantro pretty much hates water. Do you homework first. Have fun, eat well, save money.