An Inconvenient Fee

It's Property Tax time in Georgia.  Oh, joy!  Regardless of any resentment or questions about value for money, it's time to pay.  As I normally do with bills, I went online to pay my property taxes.  Our local Govt. has a nice page so we can pay without the bother of writing checks or affixing stamps to envelopes and walking out to the mailbox. 

I went through the usual routine of entering all my information and debit card number.  I hit enter and get a 'review payment' page.  Nice touch.  It is there I noticed that there was a significant difference between the total I was paying and the actual tax bill. 

Reading through the darned thing, I discover a $58 'convenience charge'.  Convenience Charge?  $58?  I think not.  I already feel gouged by taxes and now they hope to get more with a convenience charge?  No, thank you.  I cancelled the order and am writing a check. 

The moral to the story is, always watch for hidden fees.  Some of them are doozies. 

In a related note, Suntrust Bank, where we keep our farming account has just announced the end of our free checking program.  We will be assessed a monthly fee if we don't maintain a minimum balance.  The problem is, we don't maintain anywhere near a $1k balance in that checking account.  We opened it for two reasons; 1. we want to keep our farm business as separate from our personal accounts as possible and 2. they offered us 'free checking'.  Well, now they've removed the 'r'. 

I have great news for Suntrust, we are going to make their administrative duties a bit easier.  We are closing our account.  That way they don't have to do all that adding and subtracting and fee assessing.  I'd rather have an account.  But I'm not paying fees for such a small regular balance.  So, we're going cash. 

Decision made.  As the radio commercial says, "Day one, living solid".  Much more solid without Suntrust fees.

The Irony of Expensive Bargain Grocery Shopping

Anyone who has read this blog or flipped through IOU NO MORE, knows that I really believe in bargains. Saving money, spending less than you earn, are mantras I've chanted for years. But I've modified one of my long held tenets, bargain groceries.

The more I study, the more disturbed I become regarding what we're putting into our grocery carts, and ultimately into our bodies. Have you read the ingredients label on a can of tomato sauce or a box of cereal lately? If you were to take a few items in your cart, sit down and google the list of ingredients, you would be horrified at what you are ingesting yourself and feeding your loved ones.

I can't help connecting the dots and finding a link between our desire for cheap food and our ever increasing health care costs. Common sense tells us that we can't fill our bodies with all these chemicals and avoid the consequences. Ever wonder at the growing numbers of colon cancer victims, ADHD in children, obesity? We're killing ourselves with food. And not just at the dollar menu (Why is fast food cheaper than fresh food? That's another story).

I don't really want to throw blame, we all, the grocery chains, manufacturers, big agra, big government, big pharma, consumers,  carry some of the responsibility. And we all can play a role in changing our diets, our health and our future. But it will have an associated financial cost at a time when many, most, families are living on budgets so tight the cash can hardly breathe.

Our cheap groceries are making us unhealthy, yet we can't afford to pay the prices for healthier choices. What are we to do? This is what you might call, a conundrum.

I am a proponent (and participant) in what's known as the 'slow food' movement. I believe in eating fresh, eating local and 'eating with the seasons'. B and I drink only raw milk, eat pastured eggs, grass fed meat and even make our own cheese and butter. We grow nearly all our own fruits and vegetables. We are on a plan to remove ourselves from the current retail food system. I hope millions will join us.

If you are on a budget, you probably can't do it all at once. I get that. Eating right, is expensive. It is a tragic reality. I recommend small changes. Every bite of something good for you means that many fewer bad things are entering your body.

Try buying a pound or two of grass fed hamburger. Maybe a dozen pastured eggs from a local farm. Support your local farmers' market. Grow a single tomato plant, or bell pepper plant. Make a window box for herbs or plant some in your flower bed. Many herbs are as pretty as they are healthy. Get creative.  One or two small changes are a GREAT start

Read. Research what you eat. Investigate. Start slowly if your budget requires, but by all means start. Drop us a note for more information if you have questions. Alternatively, check out our other blog, "Our Edible Suburb". I truly want to help you save money, but spending a little more up front on groceries, might just save you a ton of money in medical bills. Chew on it.

The Grocery Store: Is Bargain Hunting Killing Us?

Most of us scour flyers and the internet looking for bargains at the grocery store.  We know that Food is a basic necessity, and we want to feed ourselves and our families in as healthy and as inexpensive ways as possible.  We clip coupons, we rush from store to store in search of the best deals.  Grocery shopping becomes a road trip where we visit multiple shops to complete our lists with the least possible damage to our bank accounts.  I've done as much of that as anybody.  But is there a hidden cost to our bargain hunting?  Why is 'organic' and 'local' so much more expensive than 'non organic'?  Are eggs just eggs?  Why is one chicken $.79 a pound while another is more like $2 or more a pound?  C'mon, it's a chicken, right?  Maybe.  Maybe not.

Last year, I read "The Omnivore's Dilemma", "Fast Food Nation", and "The Vegetarian Myth", which all opened my eyes to different problems and issues related to our food chain and food consumption.  Some issues are nutritional, some are political, some are moral.  I recommend them to you, with the warning that they are not easy to read or digest (pun intended).  I did not agree with some of the world views or conclusions I read, but I do agree with the well researched facts and issues.

Over the weekend, Brittan and I watched "Food, Inc."  which is kind of a synopsis of the issues identified in the above mentioned books.  A kind of 'fast food' version, if you prefer.  There is a more detailed look at the movie at Our Edible Suburb.  Click on the link and have a look. 

Food is so important.  Wise stewardship of our finances, our health and our world is also important.  Balance is not easy.  You and I will have to draw our individual conclusions.  But it's a critical matter, so handle with prayer.

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.

Budget 101 - Yep It's That Time of Year Again (First in a Series)

Fall's here, footballs are flying, leaves soon will be, so it's time to start thinking about the Holidays and the New Year beyond.  It may come as surprise to you but 2009 is almost over and Christmas falls in December this year.

The Holiday Season (From Halloween through New Year), does amazing damage to the American pocket book.  We all know about Christmas and Thanksgiving, but it's quite impressive how much Halloween costs.  Besides mountains of candy, we spend a fortune on costumes and decorations.  Many communities are as extravagant in their Halloween decorations as they are with Christmas.  We are Americans.  We love lights.  We love opulance, we love gaudiness (Think Time Square or The Vegas Strip).  And apparently we love debt.

Well, it's time to kiss the whole debt thing goodbye.  Kick it out of the house and let it join the circus or something.  But we are through with it.  Right?  Right?......................

Ok, if you're still here, let's go over the basics of how we can accomplish all of our financial goals.  First, we have to have goals.  Let me suggest a few:  1.  Live on less than we earn, 2. Get out of debt, 3. Build a nest egg for the future, 4, Give to worthy causes, 5. Stop having to WORRY about money.

Those will do.  You might add some of your own related to vacations, education, buying a house, etc.  But the 5 above pretty much cover the core.

In this series, We're going to focus on #1, Live on less than we earn.  We'll touch on the other goals, but we won't stay long.  If you want a step by step plan on all 5 goals, you should check out IOU NO MORE.

I don't know many people who get excited about budgeting; at least not not at first.  But once we learn to do it right, budgeting is a lot of fun.  Ok, a little fun.  But, I guarantee you  that it's not a drudgery.

Think of it as "Fantasy Spending".  We all love to spend.  Back when I was a phone rep in a Call Center, as a part of our offer, we entered prospects and customers into a sweepstakes with a grand prize of $1,000,000.  We would ask people, "What would you do with ONE MILLION DOLLARS?"  I loved listening to the far away sound in their voices and customers spent that money in their imaginations. 

Think of a budget the same way.  It's spending the money on paper, before we spend it at the store.  Nerdy, detail oriented types love this part.  I've seen some people's budgets that rival a major coporation in their granularity. I don't recommend that.  Use something simple, but practical.  We've already done the outline work for you and if you like, you can get a basic budget plan for free right HERE.  Just tell us you want the free Basic Spending Plan and email it right out to you.

It's important to do a WRITTEN budget.  Doing it in your head just doesn't work.  As we say in the south, "That dog don't hunt."  Writing it down will help you focus and it will assist you in making sure you cover all areas.  If you are married, you should do this with your spouse.  It's ok if one of you does the heavy lifting.  But make sure you are both in agreement on the numbers and priorities.  Marriage is not about dominance or dictatorship, it's about teamwork and mutual submission.  You remember the ceremony right?  All that 'putting the other person first' stuff.  Well, budgeting TOGETHER is one way of actually doing what we promised.

Use a pencil rather than a pen.  I know, now I sound like the nerdy, detail oriented type (which everyone who knows me knows I'm not).  But I am practical.  There will be a great deal of erasing.  Pencils have erasers.  They are designed for work that has to be done over.  Ink pens..... not so much.  They are all about permenance.   Hey, what happened to my spell check.  It's missing..... bummer.  Ok, back to the subject.

You'll need a calculator and a copy of at least your most recent bank statement.  Good news, both are probably availble on the computer you're using to read this article.  You'll find the calculator under the 'accessories' tab in your start menu (if you are using a PC.  If you have a MAC, I have no idea.  I'm not cook enough for a MAC.  You'll have to find it yourself).  For the bank statements, go to your bank's website and log into 'online banking'.  If you haven't yet set up an online banking account, now is the time to do it.  If you already have one, you'll know that it's a great place to keep track of your spending patterns.  I check mine every day.  It's a safety thing.

Ok, you have a pencil, a budget form, some historical information and a calculator.  We're ready to begin.  In our next installment, we'll do just that.  We will look not only and the categories, but which order in which to budget them.  The order is mission critical.  But that will have to wait till next time.  I have to take a shower and go to work.

Is it the Economy Turning Dr Jekyll into Mr Hyde?

They are calling them, "Familycides". According to the press, it seems there has been an increase of them lately. The typical script goes: a man kills his wife and children, then kills himself. Neighbors, colleagues or family members discover the grisly scene and the authorities try and unravel the mess while the newswires feed the tragedy to the world.

Underlying an overwhelming majority of these familycides are serious financial issues. Usually a mountain of debt and often there is a hint of financial impropriety somewhere in the background.

We expect suicides to go up during economicly challenged times. In 1932, the height, or depth, of the 'great depression' suicides dramatically spiked. I remember at least one suicide that resulted from the Enron scandal a few years back. And just this past week, a leading financial officer of Freddie Mac, the troubled mortgage company, took his own life.

But now, we have these extremists, who not only kill themselves in a moment of shame and distress, but take those they love with them. How could anyone sink that far down the pit of depravity?

The media would spin this into a demonstration that we 'are in the worst financial downturn since the Great Depression'. I say, "Poppycock!"

First, we are NOT in the worst financial downturn since the Great Depression. So far, it's not even the worst in my lifetime. I remember some pretty bad times in the 70s and 80s, when interest rates and unemployment rates were considerably higher than today. When we leave emotions and hype out of the mix and put our present situation into historic perspective, we see an entirely different story.

One of the differences now is the amount of debt held both individually and corporately. Never in our past have so many owed so much to so many more. America and the world have leveraged ourselves to the breaking point. As the old parable reminds us, when a house is built on a foundation of sand, it will never withstand the strain of stormy weather, regardless of how lovely it might be. And for many families, businesses and nations, our financial houses are built on just such sandy places.

Back to our premise, for just a moment; it is not the economy that is turning peaceful family men into mass murderers. In Robert Louis Stevenson's novel, it was a potion that brought the evil, decadent Edward Hyde out of meek Dr. Jekyll, but the potion was just the catalyst. Henry Jekyll knew, or at least suspected, that he (we all) had a dark side. What surprised him was the immensity and strength of evil inside.

In the same way, financial crashes are not the root of familycides, or even suicides, but are merely the potions consumed that allow an inner dark side to emerge.

I would argue that the way to fix our economy is quite simple. Not very easy, but quite simple. We do it the same way we fix our personal economies, we spend less than we earn. We live within our means. There will be pain, embarrassment and frustration involved, but that's how we get there. I say no institution is too big to fail. In fact, for us to regain sound footing, some instutions MUST fail.... or reorganize and live again.

But we'll address that another day. Today, let's examine a solution to the rampage of murder and suicide that fills our daily news reports. First, not all of them are financially related. Many have to do with broken relationships. But all have one common denominator: despair!

Often there is anger, depression, fear and panic. Then hopelessness takes over and Mr Hyde is loosed. He inevitably leaves devastation in his wake.

The individuals who perform these dasdardly acts, have one piece correct, in a twisted sort of way. The only way to eliminate Edward Hyde, is to kill him. But that doesn't mean Dr. Jekyll must perish as well. And it certainly doesn't mean that the entire Jekyll household must be exterminated.

The Bible calls our Mr Hyde, "the old man". And he truly does live in all of us. When left to our own devices we are all capable of great corruption. Fortunately most don't take things to the ultimate extreme that family killers and mass murderers do. But we all have ugliness inside. The Bible reminds us that the "old man" must be put to death. He cannot be controlled, tamed or domesticated. He must be destroyed.

We do that by handing over the keys of our lives to Jesus of Nazareth and letting Him drive. It's called, 'repentance.' Repentance sounds like some kind of a demand, but it's really an invitation; Jesus said it this way, "Come to me all you who are weary and burdened and I will give you rest."

An economic turnaround will not repair the darkness inside us. But Jesus can. Just like we need to build our finances on new foundations, we need to rebuild our lives on a new foundation. It won't always be easy. And the stormy weather will still come, but just like in the old parable, a house built on the rock, will STAND.

My heart aches for the millions in fear and despair right now. I know the answer. I've experienced it. It works. HE works. I encourge you to read the Gospel of Luke in the New Testament. If you don't have a New Testament, go online to www.biblegateway.com and read it there. Talk about becoming DEBT FREE! It's even better than IOU NO MORE.