Personal Finance Book Review #1: Your Money or Your Life

I read the first edition of Your Money or Your Life a couple of years back and recently purchased & re-read the updated second edition. This is the book that for most people turns on the light bulb in their mind that the consumer-economic treadmill has an off-switch. For me, that book was Robert Kiyosaki’s Rich Dad Poor Dad (my next review) which I had read a few years before this book. Both books advocate living below your means to generate positive cashflow which can then be put into income generating assets … and thus, with time and steady investing, can free oneself from the wage-slave world.

Your Money or Your Life is unique in that it has you align your spending with your inner moral compass … and prompts you to reflect on your money choices and to determine what is “enough” for you (not anyone else) and recognize what parts of your lifestyle gives you the most joy – and how to think of ways to enjoy that lifestyle rather than to consume that lifestyle (my third review on Killing Sacred Cows goes into more detail on the consumption of things, such as “leisure”).

There are no complicated formulas in Your Money or Your Life, but there is a lot of tracking of your spending, working to align your spending to your morals, and tracking the passive income generated from assets. The authors use 30-yr treasury notes as their example of an ideal passive income vehicle due to its stability and tax advantages, although at the time of the first addition interest rate return was significantly higher than today. After careful reflection of what is truly important to you, they recommend spending freely (almost) on some aspects of your life, but downscaling your life (perhaps radically) in other aspects.

Where your income comes from is examined against the true cost of employment, with fewer “life hours per dollar” being the goal (for example, does your job require lots of expensive clothes, a long commute, or therapeutic treatments or vacations to “de-stress” – these should all be considered in the “life hours per dollar” exchange). Once passive income exceeds your expenses (which over time expenses have been minimized and tailored to maximize your specific happiness or satisfaction ideals) you are then free to spend time how you determine – on social goals, with your children or grandchildren, or using a skill that you love but wouldn’t be able to make a living at – and do these long before being of “retirement” age.

I have not asked an aunt and uncle if this is the exact path they followed … but while everyone else in my family was climbing the socio-economic ladder, they were paying off their modest house, driving used (and paid for) cars, and living simply in general. Scoffed at in the roaring 2000’s, during the recent economic downturn on they’ve started to look pretty smart and still enjoying “early” retirement which includes family and travel.

My only complaint about this book is that it does not put as much focus on how to align your income with your morals as it does your spending. Be warned: Once you align your spending to what is really important to you, it becomes harder and harder to accept money from a job that does not support those same morals (and that likely means a reduction in income!).

Mindfulness: Mindful Motion & Mindful Non-Motion

In a recent rant (last post), I chastised a celebrity doctor (who is a real ER M.D.) who recommended housework as a way for women to de-stress. It was perhaps a little too easy to pounce on the fact that recommending housework to women wasn’t the greatest idea. And, now that I got that out of the way, I will defend the poor Doctor and agree with him that even housework can be a meditative retreat.

Most of us know the feeling of Mindful Motion … that all-consuming concentration where the mind-chatter stops, and we forget about everything else and are fully in the moment. Usually this happens when we are engaged in some hobby – whether it’s while golfing, scrapbooking, or playing a musical instrument. Most of us don’t think to apply this “mindful motion” state of mind to other activities (such as cleaning or doing laundry) because often conditions are less than ideal for concentration and focus – such as doing housework while there’s a screaming kid or two in the background, or doing three chores at once, or planning dinner while folding shirts. In my opinion, it is far easier to start with practicing Mindful Non-Motion.

Mindful Non-Motion typically takes the form of meditation, but I like to expand the idea to include making time for sleep (adequate sleep, not “just enough to get by” sleep!), soaking in a bath, and sitting in the outdoors feeling the sun while listening to birds sing. What surprises many of us is how difficult it is to DO NOTHING! And once our bodies are still, it’s even more difficult to also have the MIND do nothing. No thoughts of meal-planning or other to-do’s. Just BE. Experience the moment.

Mindful Motion has the same difficulties of “just being in the moment” – it requires doing what needs to be done and nothing extra. When we calm the mind and use our body in an experience we can de-stress … yes, even while doing housework. No doubt about it, this takes practice. So, start to make an effort to do everyday chores in a mindful state rather then the usual “mindless” state (in which our mind is occupied by so much else). You may find that it can in fact be a source for de-stressing. Some would even call it Zen.

Rant: 8-Ways to De-Stress?

In my morning perusal of news on the internet, I clicked on Yahoo’s posting of a video and Shine article “Dr. Travis’ Top 8 Ways to De-Stress”. Ok, I don’t watch “Doctors” so I don’t know for sure if this guy is a doctor or just plays one on TV – given the depth of his advice, I’d assume the latter (but no ... he is real MD). Here’s the link to the original article.

http://shine.yahoo.com/event/the-thread/dr-travis-top-8-ways-to-de-stress-2407334/#comments

Below is my summary of his recommendations (paraphrased). Note that the title should have included that this list is “for women”. Can you guess what my beef is with this?

To de-stress, women should:

1) Cook.

2) Clean (He called it “De-Clutter”).

3) Do Laundry.

4) Work Out (He says to "earn your couch time").

5) Don’t Get Fat. (Ok, here he does recommend “breathing and meditation” but that is so the stress doesn’t make you fat.)

6) Make Sleep a Priority. (This should always be the case, not just when stressed!)

7) Laugh.

8) Get Together with Girlfriends (and Laugh again).

Numbers 1-5 sure seem chauvinistic to me. I mean … really? Cook? Clean? Do Laundry? Just what does this guy think women who are at home do all day? And guess what? For women who work outside of the home, they are the ones still doing the majority of the household chores. So here are my recommendations:

1) Practice Meditation or Yoga. I think the medical industry stands behind the benefits of both for stress-related illnesses, such as reducing high blood pressure and boosting the immune response.

2) Go for a Walk. For me, the more “back-to-nature” the better. If a nature park is not nearby, a walk through the neighborhood is still recommended. However, I believe a change of scenery is best … so get out of your own neighborhood, if possible.

3) Take a Bath / Have a Home Spa Afternoon or Evening. Put on your favorite calming music album, or maybe an audio book, and pamper yourself.

4) Mow the Lawn – just because this Doctor Dude in the video segment said “a woman wouldn’t mow the lawn” (again, this guy needs to get in touch with reality). Now, I realize that usually men do prefer to mow the lawn over cooking and cleaning – and that’s my point! Doing something physical that is different is a great way to blow-off some steam.

Of course, all of these require getting someone else to take care of things like watching the kids in order to be present in the moment, and with that maybe Dr. Travis’ list could make sense as well.

One last note: As one woman’s comment pointed out, how did SEX not make this guy’s list?

Product Review: Healthy Pet ™ Cracked Pine Cat Litter

In my effort to reduce my garbage going to the landfill to near zero, I realized that I was going to have to do something about the cat litter waste that was comprising ~90% (and probably 99%, by weight) of my remaining garbage. A friend had found a local company, Green Dog Cleaning Company, with a pick-up service for composting cat litter. And so, the search for and transition to a biodegradable/compostable cat litter began.

Even before I found out about Green Dog Cleaning Company, I had tried to find an acceptable biodegradable cat litter. I never liked clumping litter due to the “tracking” mess (and with two cats, it can get bad if one isn’t sweeping up all the time), and the cats equally disliked pellets – both paper and pine – as demonstrated by their NOT USING the litter box (which then required even more of a clean-up than the clumping litter). Finally, I bought a bag of Healthy Pet ™ Cracked Pine litter. It smells nice, absorbs odor and urine well, and the cats don’t mind the texture. As with non-clumping clay litter, cat pooped gets scooped daily. The Green Dog litter pickup service provides a 2.5 or 5 gallon bucket, lined with a compostable liner, every week. The fee for me is about $5 per week, and it’s worth it to me to not send garbage to the landfill (with mined clay!). If I quit my garbage/recycling service, which I am close to doing, it will pay for itself.

Right now, in the greater Portland Oregon area the only store that I know of that carries the Cracked Pine Cat Litter is Fred Meyer. If there are others, let me know. The lack of availability at more stores and the plastic packaging are my only complaints.

There you have it, two recommendations in one: 1) Healthy Pet Cracked Pine Cat Litter (Healthy Pet also has other varieties, including a clumping litter, but they may be hard to find), and 2) Green Dog Cleaning Company (and they pickup/compost Dog waste as well).

Green Dog Cleaning Company in the News (The Oregonian)

Republican Friends and Alternate Scenarios

Apparently, all my friends and acquaintances in home-related businesses (realtors, inspectors, fix-it guys, etc.) are all Republicans. And now my Republican handy-man is including me on his email list passing along various right-wing rants. I decided some time ago that I wouldn't let this stuff go by me without applying some good old-fashioned critical judgment. So, below is the forwarded email from "JB" and my subsequent response. Please add your own scenario in the comments!

The $50 Lesson

I recently asked my friends' little girl what she wanted to be when she grows up.

She said she wanted to be President of the United States .

Both of her parents, liberal Democrats, were standing there.

So I asked her, "If you were President, what would be the first thing you would do?"

She replied, "I'd give food and houses to all the homeless people.."

Her parents beamed.

"Wow...what a worthy goal," I told her.

"But you don't have to wait until you're President to do that.

You can come over to my house and mow the lawn, pull weeds, and sweep my driveway, and I'll pay you $50.

Then I'll take you over to the grocery store where the homeless guy hangs out, and you can give him the $50 to use toward food and a new house."

She thought that over for a few seconds, then she looked me straight in the eye and asked, "Why doesn't the homeless guy come over and do the work, and you can just pay him the $50?"

I said, "Welcome to the Republican Party."

...Her parents still aren't speaking to me.

Cindy’s response --

... Except that the story goes more like this:

There are two kids, a boy and a girl, each wanting to make $50 and give $25 to the homeless. The boy is offered yard work for $50; the little girl goes to ask her Dad: “Dad, I want to help the homeless, but I don’t want to do any hard work. What can I do?”

Fortunately, the girl’s father knows a thing or two about investing. He tells her: “I’ll let you buy a share of the rental units I own. For the $10 in your piggy bank, you’ll have a 2% stake in the ownership for this month. At the end of the month, you’ll get a 500% return on your investment.” At the end of the month, the little girl receives $50. Due to depreciation of the property (on paper only, the value of the property has continually increased), she owes $0 (0%) in taxes. Now that she has her hardly hard-earned $50, she decides the homeless person should get a job and spends the money on herself.

The little boy, however, agreed to do the yardwork. After pulling a couple of weeds, watching some movies on his iPhone, texting his friends and tweeting about how much yardwork sucks, he gets half of the lawn mowed and asks for his $50. Rather than face a lawsuit from the kids litigious parents, the homeowner gives the kid $50. The homeowner sighs and says to himself, “At least the homeless will get $25.”

Of course, the little boy’s income is EARNED income, so he must first pay taxes. Being self-employed income, he pays 12.5% to social security and 3% in medicare – Social Security and Medicare going to pay his Mom who hasn’t been able to work since her medical issues started, mainly due to not having the time to exercise and eat right during the time she was working and so is now on expensive medications. The other 15% goes to the maintenance of “infrastructure” of suburban sprawl (sewers, roads, stop lights, police to monitor stop lights, etc., which he’s not able to use since he’s too young to drive) and the creation of more sprawl -- all of which requires ever increasing amounts of oil, which requires strong military forces (because in the quantities that we need it, and the Middle East having the largest last reserves of Light Sweet Crude, it’s just easier to take it from where there is a bunch of it). So in the end, the little boy bitches about taking home only $35 of his “hard-earned” $50.

Then the little boy becomes enlightened. He gives $25 to the homeless, because they at least are not contributing to the rape and pillage of the planet, and takes his $10 to little girl to invest with her father – and he prays that they never change the tax codes that favor the rich!!

Free things to do in Boston

A recent trip back to my college town drove home part of why I enjoyed my four years there so much. Unlike many college students of other towns, I lived there year round and worked a couple of summers in the tourist industry. Being interested in both architecture and history, I explored a lot on my own as well as learning the answers to common touristy-type questions. In my recent 5 days back in Boston -- and unlike in my college days, this time with money to spend -- I realized how much one can do in the city for very little money. Here are the things that didn’t cost a dime.

1. Boston Public Library, McKim Building (Copley – Green Line): What a find! I never visited there during my college days, and I’m glad I didn’t since it has undergone a major restoration in the meantime. I had no idea that there were murals by John Singer Sargent (one of my favorite painters) on the third floor, a wonderful courtyard, and a palatial reading room. Boston is a true home for the intellectual. Art and Architectural tours are offered regularly and are highly recommended. It just so happened that the rare books collection was featuring the works of Margaret Fuller while I was there, and I found that worthwhile as well. If you reserve ahead (which I did not), one can go on an art and architecture tour the PRIVATE library, the Boston Athenaeum (Park Street – Green Line). This library basically spun off the Boston Museum of Fine Arts. Tours for the Athenaeum are Tuesday and Thursday at 3pm, and space is very limited and must be reserved ahead (it was booked more than a week ahead when I was there, so it’s on my list to do next visit).
2. Concerts at Local Churches: An evening I was there, the Old South Church (across from the Boston Public Library) was hosting an annual Hand Bell Choir Festival. Admission was free, but a donation of $15 was suggested (the proceeds going to their expenses and providing a two-octave hand bell set to a local school). Kings Chapel (Park Street – Green Line) has free recitals at noon most Tuesdays. I’m sure there are other churches with similar offerings. It is a great way to experience the interior church acoustics/architecture and hear great music at the same time.
3. Faneuil Hall (short walk from Government Center – Green Line): Be sure to go to the grand hall located above the Faneuil Hall marketplace. This historic spot is part of Boston Historic National Park and is staffed by a park services representative who will give a short talk on its historical and modern day importance every 30 mins.
4. Quincy Market (short walk from Government Center – Green Line): Right next to Faneuil Hall is Quincy Market – mostly an eclectic mix of take away eateries. Probably the best place to grab lunch and eat in the center of the hall or outside on benches of the shopping plaza.
5. New England Aquarium (Aquarium – Blue Line; or not too far from Government Center – Green Line): Visit the Harbor Seals at the Aquarium – no ticket required to visit them, just look for them behind the ticket office. Feeding times are listed, along with information about the seals that are residents. Smoke, the oldest at nearly 40 years old, was getting an eye exam (she now has cataracts) and a mini-check-up at the 4:15 feeding that I had watched. The other seals show off knowledge of commands (similar to sit, speak, and roll-over), which they demonstrate for food.
6. Old North Church (walk from Haymarket – Green/Orange Line): A stop on the red-brick “Freedom Trail” in Boston’s North End (what used to be referred to as Boston’s “Little Italy”), this historic church still has a congregation and regular services, so be advised – this is a church not a museum. The church, most famous for the “one if by land, two if by sea” lantern that sent Paul Revere (whose home is a museum in the North End a short distance away) on his midnight ride. The church and grounds close at 5pm. Suggested donation is $3 per visitor.

Free “non-things” to do in Boston:

1. Stroll Newbury Street. Leave your wallet and spend-thrift companions at the hotel, or else expect to spend a lot of time and money at the high end shops of this street. The sidewalks are wide, with bistro tables spilling out onto them. Languages from all over the world can be heard as one walks down the street.
2. Hang out in the Public Garden. After walking Newbury or Marlborough St, or Commonwealth Ave., enjoy the horticultural array of the Public Garden. Be sure to see the Swan Boats, the Island where ducks nest in the spring, and the “Make Way for Ducklings” statue.
3. Stroll the Park of Commonwealth Ave. “ Comm Ave” is a busy street but lined with beautiful buildings and bisected by green space.
4. Stroll Marlborough Street. Running parallel to Newbury Street and on the other side of Commonwealth Ave, this street is mostly lovely residential brownstones. Be careful of the uneven sidewalks! Sensible shoes are advised for most of Boston.
5. Explore Beacon Hill. Charles Street will get you off to start, but venture onto side streets to really find out what Beacon Hill is about. Acorn Street is still cobblestones. The Church of the Advent is worth a peek inside if their doors are open, the State House has free daily tours, and the Athenaeum is in this neighborhood.
6. Finally, Salem Street and Hanover Street in the North End are interesting and yet another “flavor” of Boston’s neighborhoods.
   

Not quite free, but worth it: a 7-day unlimited subway pass is $15 – because eventually your feet, which can get you everywhere in Boston, will get tired! Daily passes are also available.

And a final note on being a pedestrian in Boston – always look before crossing the street and completely ignore the “Don’t Walk” signs. The driver’s corollary to this is that pedestrians need to get the hell out of the street when (and it had better be before) the light turns green!

Just Me and My ... Trailer?

I know I haven't posted in a while. There's been a couple of illnesses/deaths in the family that has made spending time with family more important than anything else.

Life goes on ... but the ability to pack-up and get away is also important. So I have found myself the proud owner of a 17' 1969 Aladdin Travel Trailer. I spent this last weekend at a State Park not too far from Portland, and it was wonderful to get a mini-vacation -- a mini-vacation that didn't involve an airport or hours of driving. However, a regular two-day weekend just wasn't long enough to find the peace I was seeking in getting away.

I do have book reviews and essays to post. I know I need to get into the habit of posting after writing them. But until I do, here are some pictures of my darling travel trailer and of the beautiful surroundings I had this weekend.