Full disclosure: This blog is backdated. I was wrapped up with work for 10 hours on January 17th, followed by hiking 6 miles with my Meetup hiking group, coming home in time for dinner, call to my girlfriend, and heading off to bed, turning in a bit later than I wanted to.
Today, I did something I hadn’t tried in a few years. I sat down and created a budget. Over the years, I’ve mostly kept track of my finances in my head, which sometimes has worked out okay, but mostly hasn’t. My big problems have been impulse purchases and falling behind while in crisis, or after a disaster, and all those years I spent way too much money drinking, both at bars and at home.
I’ve been reading some Dave Ramsey material. Of course, he’s the wildly popular radio host of The Dave Ramsey Show, about getting out of debt and managing money. Seemed like a good place to start. I used the Dave Ramsey Quick Start Budget printout.
My key discovery- no real surprise here!- I spend almost as much as I earn, even after cutting many things out of my budget long ago, such as daily beer drinking, and dining at restaurants. In the past, at times, I was able to eat, drink, and be merry a few nights per week. I had multiple sources of income back then.
Here is a really good blog post by Brian Eisenberg called What Makes People Buy? 20 Reasons Why. This list is worth a look, if you wonder why you buy things.
While I’ve had some problems with emotional spending (“retail therapy”), I’m not really a fear buyer or one who must have all the latest fads. My #1 problem is buying due to addiction.
I am presently still a one pack per day cigarette smoker. I quit a few years ago, last over a year until my new band Moonshine Millionaires had a smoke break at the El Camino Restaurant & Bar in Bardstown. I caved. I quit another time for six months. Both times I used nicotine replacement therapy, having the most success with the patch. The best way to buy cigarettes is the get the lowest price on a full carton, which I have almost never done. Denial is very powerful, so of course, feeling that “you might quit any day now”, you just buy one pack at a time. You might quit tomorrow. Why buy 10 packs? Of course, years go by and you are still a daily smoker. The problem with buying one pack at a time is that means you stop at a gas station every day to get a fresh pack, and what usually happens? You buy other times, like a soda, candy, snacks, or decide you also want a six pack of beer. That pack of smokes can become a $20 sale for the gas station.
Over the last couple of years, I’ve also become addicted to energy drinks. My main brand has been Rock Star since Handy Food Mart in Bardstown has them for $.99 instead of $2.50. I also drink Venom Black Mamba, which is only $.99, when I can find it. I don’t like Monster. Red Bull is probably my favorite, but I can’t afford to spend $4-$5 for a drink. It wasn’t uncommon for me to spend $2.50 on energy drinks. I had gotten up to 2-3 energy drinks per day. Empty cans were littering the floorboard of my car. I’ll bet the average amount us energy drink users spend is around $1500 – $2000 per year. Having an energy drink once in a while wouldn’t be so bad. After stopping my habit of 6-12 beers every day, I can now go several months without a beer and never abuse it anymore. Hopefully, I will be able to do the same with energy drinks. Right now, I don’t want to pay through the nose for this newer addiction. I drank my last Rock Star on January 7th, purchased at a Circle K near the Arizona State Fairgrounds in Phoenix.
Another discovery I made is that my job requires a lot of my time and yet, I still remain a working poor person who is unable to save or pay off debts (and also maintain his addictions, of course), or deal with any kind of emergency. I thought about it, and this has lead to my having a poor attitude and resentment about work, but I can also see a LOT of money problems have been my own damn fault too. Right away, I can see that I will need to cut all unnecessary expenses to put what little money that is toward debt and savings.
I will need to work overtime on a regular basis or find a better paying job. In the past, I supplemented my income with cover bands, but I am no longer able to do that and still be present in my kids’ lives since live music is weekend work (my time with the little ones) and usually a much bigger commitment than you think it will be, with many demands on your time.
Starting February 1st, I will start a 66-day mini-project of spending 15-30 minutes each day making some effort to look for more income. This can be anything. Setting up a LinkedIn profile, browsing Craigslist looking for a random one-time gig, looking through Want Ads for a better paying job, anything toward earning more money.
I will be using the Dave Ramsey Plan, trying to get as far through the first three Baby Steps as I can during 2017.
- Save $1000 Emergency Fund.
- Pay off Debts using “Debt Snowball”.
- Saving $4800 (approximately 3 months of my living expenses)
Deng Ming-Dao on Cooperation:
Today was a good entry in Tao 365. I’ve really similar passages in the Tao Te Ching. Deng Ming-Dao says “true leadership is a combination of initiative and humility.
- When we join some kind of group, we gradually become a part of the group. There will be mutual influence.
- We influence the collective, and we are shaped by our company.
- To influence others: We need to know when to act, when to be passive, when others are receptive to us, and when they will not listen.
- There will be both frustration and success.
- Maintain our position or change it, if there is a better position.
- Credit is never taken. The best leader should be obscure, not drawing personal attention.
- Credit is awarded when people realize it was the subtle influence of the leader that brought success.
The Daily Stoic: Reboot the Real Work
To quickly summarize today’s chapter, Holiday is saying that making an effort improves the quality of your life and the world. Just do the work. Let go of the past and begin now.
Tomorrow, I will discuss some personal goals I’m laying out for different areas in my life.