Sharpening The Saw

Working in any industry can have any multitude of effects on your skills in your chosen field.  Some jobs hone your skills to the point that you are capable of doing that one task better than anyone else.  Some jobs expand on your skill set, giving you more tools in your toolbox of knowledge.

Then there are some jobs that take your tools away from you, giving you an entirely new set of tools.  This can make you uncomfortable with your tasking, it can make you bored with your new job, or it can give you a new challenge that you had not yet faced.

I have experienced the whole spectrum.  I have had jobs that challenged me from my work ethic to just my ethics.  But, the job that gave me the most satisfaction was the job that I had the most problems with.

The company I worked for was cutting employee benefits while demanding that the employees work "extra" hours (off the books).  The selling points were either "you're lucky to have a job" or "you won't get promoted if you don't play the game."  Both of which did not sit well with me, and is part of the reason that I left and accepted a job elsewhere.

The job was the best job that I have ever had though, and here are the reasons:

1. It demanded that I learn new skills, AND apply them daily. 
2. It challenged my belief system.
3. It contained some manual labor. 
4. The responsibilities of the job were very apparent. 
5. It meant working on exciting stuff. 

Those just happen to be my five keys to an enjoyable job.  I didn't even know that number 2 was in my best interest or would make a job more enjoyable, but they all help.

Number 1 meant that I was constantly challenged.  I cannot be happy in a job that doesn't challenge who I am and demand that I get better.  

Number 3 (we'll get to number 2 in a minute) meant I got out of the office and got sweaty.  This may not be a key for everyone, but I grew up in an oil field town so manual labor is just part of the daily grind.  Theodore Roosevelt said:

“It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly; who errs and comes short again and again; because there is not effort without error and shortcomings; but who does actually strive to do the deed; who knows the great enthusiasm, the great devotion, who spends himself in a worthy cause, who at the best knows in the end the triumph of high achievement and who at the worst, if he fails, at least he fails while daring greatly. So that his place shall never be with those cold and timid souls who know neither victory nor defeat.”

I can't even try to put it better.

Number 4 is key to someone that like responsibility and strives to achieve.  The job had military planes, foreign planes, projectiles, and protesters.  When people protest your job, you are either doing something wrong or right but either way its important.  Having a job that requires you to be accountable means that you feel like the work you are doing is meaningful.  That can be the difference in a 40 year grind or a life of happiness. 

Number 5 should be a key for everyone.  I worked in airplane hangers that could house Air Force One.  I worked on things that required me one up the Mythbusters.  I was never not excited to go into work, even if it meant a 60 hour week.  I loved it. 

Number 2 was the most shocking to me, and was not apparent until after I left.  When a job challenges your beliefs it gives you a reason to complain, but more so it gives you a reason to be invested in your lively hood.  Being able to complain about something meaningful means your not just a whiny little bitch but someone that is informed and cares.  It gives you purpose at your job, and if gives you a sense of "fight the power."  Even if someday you might be that power, you feel like you can makes changes. 

If you are not happy in your current job, take a look at my keys to a good job.  Maybe you can borrow a few of them and make yourself happy. 

Real Estate Agents

I finally started working with a real estate agent and I am starting to notice a pattern.  They don't really listen to what you want.

We were fairly specific in what we were looking for in a place to live.  We wanted a two car garage, washer and dryer in the unit, a certain amount of HOA fees, within a certain distance from where I work, and a certain price point.

Apparently, what the agent heard was "You're willing to pay that much."  Of the ten listings he has shown us, only two have had the two car garage.  Every single place he has shown us has HOA fees over $350.  That's high even for San Diego.

It isn't like I haven't experienced this before.  When I bought my car the dealer kept trying to add options or get me into a car that was more expensive that what I wanted just because I said I could spend more.  I understand that they are just trying to make as much as they can, but just give the customer what they want.

Even when I send the agent listings that I have found myself, he/she disregards them.  He/she either tells me that some are in escrow or that he can't show us those listings.  I understand both answers, but at the same time I don't.  If you can't show me what I want then I will need to find someone who can.

This whole process of looking at places, getting a loan and all the extras is more difficult than I originally thought.  I understand that buying a house is a huge decision, one that requires tons of research and time, but one would think it would be easier than this. Any tips from experienced house hunters would be welcomed/encouraged.

Extra Cash On The Side

When money is tight, you have to  be able to be creative when it comes to bringing in extra.  Here are some not so creative ways to make money, but applied correctly can be very creative.

1. Sell everything not tied down- Take a look around, do you have anything you absolutely need?  What about that old computer, gaming system, do you have an old car cover, or weights.  If you're handy I'm sure you have old car parts lying around.  Those can get you at least $20 a pop. 
2. Charge for talents or hobbies- If you have an extra marketable talent you shouldn't give it away for free.  Maybe you're good with cars, tell your friends you'll do their brakes for cash or something in trade.  Maybe you're good at tutoring, knowledge is power and people should pay you for it. 
3. Drive that old beater-Do you have an older car that you don't drive?  You should probably drive that before you drive your brand new Mercedes.  First of all, the operating costs of older vehicles are much lower and keeping the miles down on a brand new car keeps the re-sale value way up.  Think long term not short term when it comes to cars.
4. Rent out that extra bedroom-Do this with only people you trust.  Don't let some stranger live in your house.  We all know someone that needs a roof over their head at minimal cost.  Just think how cheap $300 a month is, now imagine your rent being that much lower. 
5. Use free offers more- Restaurants.com and Groupon would love to take your money, and trust me its worth it to get a nice meal for 1/2 off.  You know you're going to eat out, don't fight it, embrace it just make sure you get a good deal.  

Those are my best tips for today.  As 5 eludes to, cutting costs is the next big way to save money. 

Other Ways to Save Money

The best way that I have found to save money is DIY projects.  Being even somewhat handy can save you tons of money over the course of a  year.  This can include anything from big projects to small projects, but they all add up to saved money.

DIY can be anyting from making your own pot holder out of an old towel rack, or even doing your own brakes. The point of DIY is to cut out the paid labor, and potentially lower the price of replacement parts.

For example, doing your own brakes can save you hundreds of dollars.  Just recently I was told that the brakes on my new car needed to be replaced.  The quote they told me was $750.  That seemed a little ridiculous since all new rotors and pads would only run me $500, but whatever they need to make a buck.  Instead I replaced the brake pads myself and it only cost me $150.  Thats $600 extra in my pocket and it only took me an hour because I had help from a friend, and I know what I'm doing.

This weekend, I replaced the windshield wiper motor, and blower motor in my 20 year old truck.  A mechanic would  have charged $400 for the job, but I got the parts for $100 and it took 5 hours of my Sunday to get it done.

Cars aren't the only place you can save tons of money.  Being able to do basic plumbing can save you hundreds as well.  I'm not talking about re soldering pipe or anything crazy, but understanding how a trap works and being able to unscrew a piece of plastic.  Having a basic skill set (and a camera) can go a long way in saving you money.  It can also fight off that "I'm Bored" feeling that you get.

Some people view these things as chores, but you should try to view them as making "extra" money.  Having that mindset will motivate you to do the job.  Especially if you want to use that extra $200-$600 from one job on something you want.

Dollar Shave Club Is Genius

Another idea that I wish I had.

Tips for Finance

Just going to share some quick tips that helped me with my finances.

1. Mint-What is Mint?  It is an online portfolio manager.  The makers of Turbo Tax came up with this great way to manage your money.  You simply create an account and link any accounts you want to manage.  They can handle anything from a brokerage account to basic checking.  I love it because they offer great tips on how to save money, and have a great budgeting tool.  I'm sure some banks have similar setups, but Mint is a great way to track all your money.
2. Checking Accounts-With Bank of America charging fees for accounts and Wells Fargo doing the same, it is hard to keep your money yours.  I suggest going with an online bank or credit union.  They offer great interest rates so that you make money on your money.  They also refund any ATM fees, now any bank just became your bank.  The only draw back is depositing checks.  If you don't have direct deposit it can be awhile before you see your money.

Those are my two tips for today.  I'll update with more as I go. 

House Hunting Experience

This week I met with a loan specialist.  I talked to them about what I was looking at and what I could afford.  I told them how much we could afford monthly, and they went from there.  After doing a credit check, they came back with numbers on the high end of what I had told them.

Honestly, this didn't surprise me that much.  I know that the bigger the loan they give me, the better it is for them.  But, they completely disregarded on piece of information that I gave them.  I told them to factor in $250 for HOA dues.

For those of you that don't live in a big city, Home Owners Associations (HOA) charge you a fee for living where ever it is that you live.  This is common among Town Homes and Condo's.  You aren't just throwing money out the window however.  They take care of the cleaning of the outside of the property, maintenance, and sometimes you get cable and water.  HOA fees range anywhere from 150-500 depending on where you live, what you get, and how many people live there.

Now, disregarding that little piece of information threw off their entire estimation.  Instead of a 200K loan, they went up to 220K.  They also charge me a higher interest rate because they wanted to use a different type of loan.

I had to correct them, and put them back on track given their mathematical error.  This cost them another day, and it cost me precious time.  When I am in the housing market, I want someone who understands my needs.  Also, when estimating a price for someone, it is always better to come in under rather than over.  Coming in over gives people sticker shock, rather than "Oh I can afford better than that."

This whole house shopping experience has been an adventure so far and I haven't even seen a place yet.  As someone that plans every detail to ensure success I am sure that everyone working with me on this process will eventually hate me.  I have made my peace with that.

In the future, I suggest that you talk with a loan specialist early in the process.  Do not let them do a credit check unless you are intent on buying however.  This will lower your credit score.  I suggest knowing your credit score and asking them to proceed with that.  Knowing the value of the loan is one thing, but I specifically asked them to work from a monthly payment perspective. This meant that whatever they came up with worked with MY budget, not what some computer said I could afford.

Basic Life Math

Essentials:

• Food is something that everyone needs.  If you make your own food you are already in good shape because you can save a lot of money preparing your own food and eating leftovers.  Budgeting for food is easy, you eat three meals a day and you eat for an average of 30 days per month. Thats 90 meals in a month, and if your meals cost $5 then you spend $450 on food a month.  If you like to drink or eat out then your food bill will be a lot more expensive.  If you have someone else that you need to feed then you can double that.  What I do for a food budget is break it down to groceries and eating out.  Groceries should take up the majority of the food bill, and the budget for eating out is more a treat.  
• Rent is not something everyone has, but the majority of people out there aren't pretty enough or lucky enough to get a free place to live.  For my rent budget I went with a condo community since some of the essential bills are already taken care of.  In our complex we do not have to pay the water bill which can save $50 a month. Other communities you can also get free cable, water, trash, etc that can save you more money over having an apartment. 
• Clothing is another essential that almost everyone has to have.  Instead of buying the newest thing you can find, shop sale sites or big sales at stores.  I know I have found half my wardrobe at Banana Republic for very cheap.  6pm is also a very good site to find good clothing for less.  Knowing when to buy and being willing to spend the money can actually save you a lot in the long run.  I know I have a problem when it comes to the spending part.  I always think that it will get cheaper and it never does. 

Non-essentials:

• Transportation can actually be an essential for most people, I know it is for me, but for some people it isn't.  Buying a good road bike and biking to work if you live close enough can save you $100 in gas a month, meaning the bike will pay for itself very quickly.  If you live far from work you can actually ride a train and save yourself tons of gas. 
• Entertainment is not an essential in life but it can relieve stress.  Look for deals on Groupon, LivingSocial, or just look on regular websites.  If you like to go out and drink then try to find good happy hours.  Drinks are expensive and saving half off your monthly tab could be hundred of dollars. 
• Electronics are so integrated into every day life that we all have them.  From TV's to cell phones we all need these things.  If you do need a new phone, TV, or computer try logicbuy since they seem to have great deals on everything.  

Hopefully these little tid bits help out. 

Tricks of the trade

 Growing up in middle america, a person can have a different understanding of wealth.  We like to call it "ends meat" in small towns.  How much do we need just to get by?  That is the monthly thought process.

When you move from small town middle america you run into sticker shock all the time.  I know I did.  Gas is a dollar cheaper per gallon back home.  Rent is a third as much...a THIRD.  Food is cheaper, insurance is cheaper, everything is cheaper.



When you have a math degree and an insane amount of greed you look at everything in terms of dollars and cents.  It all adds up and quickly in the city.  If you use as little as 50 gallons of gas a month, you save $50 back home.  If your rent is $1500 in the city, back home you could have a great place for $750.  Or, if you want a house you can build a great one for $200,000, but if you live in a big city you can buy a crappy one for $600,000.

Those are the big things people think about when moving, but what about the smaller things.  Food is actually more expensive out here.  It has to be more expensive out here because everything costs more out here, but that's not the point.  Electricity is more expensive, not by much but it is.  Every single thing that you can think of is more expensive.  

A lot of this seems like complaining more than comparison and that's a fair point.  The city does have some things that a small town does not.  I mean there is always something to do in a city.  You can go to one of 50 theaters, go to shows, parks, sporting events, or one of a million hobbies.  If you like guns, they have gun ranges or archery ranges.  If you are lucky enough, some cities even have beaches.  This all adds to the allure of the big city, but for some it's not worth the price.

When you weigh the pro's and con's of your living situation, take into account how much more it is where you are moving.  I make 24% more out here than I would have in the middle of nowhere, but that doesn't cover the actual cost of living.  Also, if you aren't getting raises to the tune of 3% per year you are actually getting a pay cut because of inflation.  Perspective changes so much when you move, but the goals remain the same.