Monthly Archive

Sometimes, it’s hard to have the right answer. I’m not talking about getting the right answer, but having the right answer at all. Especially when everyone around you has the exact wrong answer.

A few months ago, I had a client that wanted out of stocks (good idea), and wanted to know where he should go. Ironically, my company offered the best rate for short term CD’s (Certificate of Deposit—basically, they are long term savings accounts. There’s limitations on allowed transactions for a set period of time, but you get more interest in return) at the time. I suggested he go with us. Another institution offered what looked like a better rate for a shorter period, and he went with them. Since then, EVERYBODY’S rates have gone down. I knew this was coming, and I told the client. He just didn’t want to listen. Well, now he comes back in wanting to get the same rates we were offering before, only we aren’t offering them anymore. In short, he’s a little screwed.

Again, I told him rates would be coming down, and I even showed how the rate he was being offered meant less money at closure than ours did. When he came back in, I gave him the best he could get, but it was still a lot less than what he could have earned.

Monday, I saw a rerun of HOW I MET YOUR MOTHER where two of the characters were in the process of making several financial mistakes. The running gag was that the friends would say the right thing, the frame would freeze while the narrator would say, “is what we should have said”, and then what really happened did. It was pretty funny, but I always think that show is.

Is it better to insist on giving the right answer all the time? It really depends on the big picture. In my client’s case, even though we are fairly close, I couldn’t tell him how stupid his decision was and how much he would regret it. The end result would be that he would have taken all his money out of my institution, he would have gone ahead and opened the inferior account anyways, and he wouldn’t have felt comfortable coming to me after it blew up on him. He would have lost a connection to someone who was looking out for his best interests. On the show, the end result would have been breaking up a close friendship with the same mistakes having been made. Nobody wins and everybody loses. The point is, sometimes doing the right thing (being a friend) is more important than being right.

In PF, there are thousands of “experts” out there who try really hard to be right, but are less concerned about doing right. Some do it because they don’t know any better, others do it because it amuses them to do so, and others do it because it is more profitable to do it than not. This happens in life too.

When you are faced with the choice of being right and doing right, make sure that the decision you make is one you are willing to stick with, no matter the consequences. Look at the big picture, and make the best decision you can.

This Valentine’s Day, turn off the computer, find that special someone, and be with them.  Spend like there’s no tomorrow:   and tomorrow?  Spend like it was today.  Of course I’m talking about time here.  It doesn’t cost any money to spend time with the ones you love, and you’ll feel better having done it.  Have a happy Valentine’s Day! 

I’m going to move on from moving out for a minute or two to talk about something that is of vital importance to Finance For Youth.

I was going through my blogroll today, as usual, when I stumbled on THIS STORY over at WISE BREAD. The gist of the story is about a bagger at a grocery store who has Down’s Syndrome. This bagger adds a personal touch to his every day work that resonates well with his customers and everybody that hears this story. I’m deliberately being sparse with details because I want you to read about it for yourself. Suffice it to say that this is a very powerfully moving story. There is even a video about it HERE, (head’s up, they will ask you to subscribe to their newsletter or buy their videos. I’m not saying not to, but I thought you should be aware).

I’m not sure if this is a true story or not. If it isn’t a true story, every one of us should be ashamed of ourselves. I want to believe that this kid cares so much about his job that he made it personal. I’d like to believe that we would all do that. If the story is true, I’d like to meet the bagger, just so I can shake his hand and thank him for teaching so many important lessons. If anybody can confirm this story, or the identity, please let me know.

For the rest of us, we need to watch this movie, read this story, and become this bagger at whatever it is we do. We need to, as he did, as I hope we all do, DO GOOD!

I’ve heard it said that you are either an ELVIS person or a BEATLES person. If that’s the case, I am resoundingly in the Elvis camp. I don’t like the Beatles, and I’m not a big fan of any of the original members. That being said, I can’t help but believe that JOHN LENNON had a point when he wrote INSTANT KARMA!” that resonates with me.

Last summer, I wrote about some issues that I had been dealing with. The gist is that an employee decided that they were going to try to take my job BY HOOK OR BY CROOK. She told management that I said some things: Some of the things, I did say, others I didn’t, and some were taken completely out of context. If she were a good employee, I’d have been more worried, but she wasn’t.

I refer to her in the past tense because she is no longer with the company. She was recently terminated for attendance issues. While I’m sorry whenever anybody gets canned, the truth is, I’m relieved. She was a bad employee, she had atrocious attendance, and she basically was nothing more than a drain on the company. Despite the fact that I would try to settle things so that we would be able to work in the same company, if not the same office, she continually tried to escalate confrontation with me. I wish she had been terminated for any of the above reasons, but I’ll take what I get here. She’s gone, and I don’t have to worry about her anymore.

I’ve said it before, and I completely believe its good advice: Don’t get mixed up with office politics. It takes away from your ability to effectively do your job, and there is always someone out there who can do it better. In her case, I hope she learns from the experience, and she becomes a better person for the experience. She had a lot going on in her life (all of which were her creation), and I think she just got in over her head. I don’t think she deliberately behaved badly, but sadly, some lessons have to be learned the hard way.

You may notice that my blogroll has changed a little bit.  Some sites go through and cull their blogroll to what they feel are their “best” sites.  Unlike these sites, I want to increase, rather than decrease the number of blogs I read.  I can’t believe that I have all the answers, or even all the questions.

Right now, there are three categories:  Stuff I’m reading, F4Y picks, and Finance For Youth Family.  The last one is pretty self-explanatory, it is comprised of F4Y sites, and sites from family members or very close friends.  The second one is comprised of sites that really uphold, on a consistent basis, the ideals of F4Y, Qualities of Success, and my personal belief system.  Right now, there aren’t any blogs there.  The first category is everything else I read daily.

Some of the blogs on my blogroll contain information or content that I don’t believe or agree with.  That’s okay, this is still a free country, and they each have something on there that I enjoy.  My inclusion of a blog into my blogroll isn’t an endorsement.  Thik of this site as my living room, and my blogroll is a stack of magazines I have on my coffee table.

The only thing I won’t put on are sites that are patently offensive, or sites that are not appropriate for my intended audience. 

If you have an interesting blog, or if you know of one, drop me a link to check it out!  Who knows, I might really enjoy it and it will end up on the new blogroll.

So, you’ve made up your mind to move out, you’ve talked with your family, settled all concerns they have, and are ready to leave. So you start packing? Not quite.

First, you have to make sure of a couple things: You need to make sure you have a place to go, and you need to make sure you have the moolah.

Most apartments will charge your first and last months rent as well as a “cleaning” deposit. The rules can vary depending on where you live, but a good rule of thumb is 150% of your monthly rent. Let’s say we’re talking about a studio that rents for $450.00 a month. This means you need to have $675.00 up front before you can move in. But that’s not all: You also need to have $450.00 by the time rent is due, and you need to have some basic living supplies such as food, a place to keep it cold, and somewhere to sleep. Depending on how frugal you can be, this might not hurt too much, or it may mean the difference between moving out this month and waiting an additional six months.

Also when thinking about money, we come back to income. Be sensible when you are considering moving out. I’ve mentioned how I have been fired a lot. Moving out is a little scarier for me, because I need to make sure I can always get that rent payment on time. I’ve been learning how to be better, and I’m going into a career field where being fired is less likely, but the thought still crosses my mind. If you are not really stable in your job (at least a year, but two or three would be better), DO NOT MOVE. First, you can screw yourself in the long run by not being able to afford living out of home. Second, and more importantly, moving sucks! Stuff is heavy, you are wasting a whole day, and then you have to start unpacking! You can never find everything. Now imagine having to do this twice, because you have to come back home. Even worse, imagine not being able to come back because your parents aren’t willing to let you (it’s not as heartless as it sounds or feels right now. Later, you will thank them).

Other expenses that may come up are utilities (some apartments pay these, but others won’t), transportation expenses (now that Mom and Dad aren’t chauffeuring you around anymore), clothing, maintenance and repair (sure most of this is done by your landlord, but if YOU break something or screw it up royally, you don’t want them doing it), and probably a host of others that might apply only to your situation.

As you can see, the price for moving out may become prohibitive rather quickly. With careful planning and budgeting, you can do it, but it will always sting in the wallet.

Anybody else have any other expenses that I didn’t include? Send a comment and let me know.