Financial Peace - Lesson 10 - Fuition to Tuition

Whew today has gotten away from me! Last night Matt and I attended our 10th week of Financial Peace University - it was all about saving for retirement and planning for how to pay for college tuition in the future. I came loaded with questions (what if my kid/s don't want to go to college? How can we take mini-retirements throughout life instead of save it all up for the end?). - So, we took lots of notes.

On retirement planning:
Too many people use the READY-FIRE-AIM approach to retirement planning. That’s a bad plan. You need to aim first. Our assignment is to determine how much per month we should be saving at 12% interest in order to retire at 65 with the amount we need.

A little bit of math:
If you save at 12% and inflation is at 4%, then you are moving ahead of inflation at a net of 8% per year. If you invest your nest egg at retirement at 12% and want to break even with 4% inflation, you will be living on 8% income.

Step 1: Annual income (today) you wish to retire on: ________________
Divide by .08
(Nest egg needed)equals: ________________

Step 2: To achieve that nest egg you will save at 12%, netting 8% after inflation.
So, we will target that nest egg using 8%.

8% Factors
(select the one that
matches your age)
Your Years
Age to Save Factor
25 40 .000286
30 35 .000436
35 30 .000671
40 25 .001051
45 20 .001698
50 15 .002890
55 10 .005466
60 5 .013610

Nest Egg Needed $ _______________
Multiply by Factor X _______________
= _______________

Be sure to try one or two examples if you wait 5
or 10 years to start.

(So to retire on an $80,000 year standard of living, divided by .08 = $1 million nest egg needed. Multiplied by factor .000436 = $436 a month towards retirement to reach that nest egg.)

VERY eye opening!

On College Planning:
The cost of college education continues to soar and is near astronomical proportions at private and Ivy League schools. The average annual cost for tuition and housing for an in-state student at a public four-year college is over $11,000 and the average annual cost for tuition and housing at a private university is over $27,000.

Even with those numbers, you don’t have to go into debt to send your child to college. You just have to start thinking ahead. There are some excellent ways to save and safely grow your money in order to invest in your child’s education.

As soon as your child is born and is issued a Social Security number, you can set up an Educational Savings Account (ESA). The ESA is basically a mutual fund specifically marked for educational savings. You must make less than $200,000 annually, married filing jointly, in order to open an ESA. You can put in up to $2,000 annually per child (after the first calendar year, where you can put in up to $500). You can have several ESAs; however, the total of them can only be $2,000 annually per child. That money will grow completely tax-free when used for higher education and can even be moved around to different mutual funds.

Another option is the 529 college savings account. You are allowed to invest up to $10,000 annually with a 529 administrating company. This company invests wherever they think is best based upon your child’s age. With 529s you have very little control over how aggressive or diversified your investment is. These companies are usually very conservative and the investment typically yields an 8 to 9% rate of return.

There is a 529 plan that allows you to pre-pay for your child’s college tuition, but you should NEVER do that. The rate of return is based on the rate of increase in tuition costs, which is around 7%, and this is a terrible return for a long-term investment.

The best investment method for your educational savings is the ESA. Anything above and beyond should go into a 529.
________________________________________
WHEW! It was an overload of information, but oh so good. It really helps us stay on track with our saving goals.

It feels like a long way off, but considering how fast my twenties flew by... :)

Happy Wednesday, all.

Kitchen Disasters and Delights

I spent some quality time in the kitchen this weekend. There were numerous disasters, many attacks of the giggles, a huge mess and a lot of dirty dishes.

It all started Friday night. Matt and I made our favorite healthy pizza - it is super easy and inexpensive. First...

Mmmm whole wheat Greek pita bread! Take a look at a pita bread slice. They are perfectly portioned for a personal pizza. Whole wheat too - so for me, that means my blood sugar won't crash an hour after eating a slice (white flour does that to me...).
You simply take a couple out, put some spaghetti sauce on it and layer it up with your favorites. We put on all sorts of veggies and mozzarella, and topped with a splurge - olive$. They are pricey, but worth it.
You can't really mess up pizza too much! You can, however, really bomb a batch of cookies if you use poor quality ingredients. Like margarine, for example. We were given a couple pounds of Imperial stick margarine, so I thought I would use them up in some cookies for a church bake sale. This is what happened to the cookies (on a non-stick pan...):
That's the way the cookie crumbles... when you can't get the darn things off the cookie sheets!
Those were the first tears. Messed up cookies! SO! I moved on to bake cupcakes instead. I had beat a pound of butter and a pound of sugar together to make pound cake, and was dropping in the eggs one at a time when SPLAT! I accidentally dropped the whole darn egg in the mixer, shell and all!

Open the floodgates...I bawled my eyes out! Now I had nothing to contribute to the bake sale, a ton of wasted food, a messy kitchen, and it just made me feel like a total failure! Poor Matt - he tried to offer to pick out all the egg shell pieces out of the cake batter for me. I was all red-faced and embarrassed. Looking back now, it is pretty funny! We ended up taking a nap instead of rushing our baked items to the church and that was just what we needed. When we did get to church we found that they were overflowing with treats - my lack of a contribution would not be a problem at all! The rest of the night ended up being a blast :)

Sunday was a new day. We'd been given a huge flat of strawberries, and I wanted to process them for freezing (smoothies). So I cut 'em up, added some frozen blackberries and raspberries to the baggies, a scoop of protein powder and flax seed in each bag too and they are ready to go for a quick smoothie after our long runs!
To top off our weekend we made awesome Italian sandwiches for dinner Sunday night. And, there was still a little daylight so we could enjoy the view! We are weirdos. Man I look a wreck here, but loved the random photo we shot...
So, there you have it. How was your weekend?

Some Blessings & Laughs

I loved this when I came across it while bored at work yesterday online...too cute!

I am savoring a little quiet at work today as the weekend ahead will be fun but pretty busy.

We tend to "pack it in" a bit - I am so excited to be able to spend time at home but I also have a home to take care of. So, in between loads of laundry and some baking that needs to be done, I'm sure we will still get our long run in and maybe relax to a movie. I LOVE the weekends...but I do have to be intentional about resting, too.

The biggest blessings about this week included some great time with friends, being given 4lbs of gorgeous (HUGE!) strawberries (and eating a ton of 'em) and lots of laughter. Randomly at 4:30am this morning, Matt said in his Arnold voice, "Do you want to be a farmer? Here is a couple of acres!" from the movie "Last Action Hero" that he'd recently watched. Giggling in the middle of the night is pretty awesome :)

We were also finally able to "pay it forward" as promised to the dear friend that gave us my engagement ring. We gave away the Ford Mustang this week, and the recipient was a very grateful college student - a good friend of Matt's. He is thinking of ways to pay it forward too, and that is so cool to think about. Even cooler is the money we save insuring the Mustang each month is about how much money it costs to cover the difference in gas usage in our Bronco. It is a guzzler, but it gets us around town.

Have a GREAT weekend, all! I'll try to remember to bust out my camera this weekend :)

Dreamlines

Recently, I just finished reading Tim Ferris' book, "The 4-Hour Workweek". It is really interesting, I actually read it because Matt loved it and was always laughing out loud when he was reading it. We are hoping to get some ideas for our business from it, so I wanted to understand the information. I'd have a hard time summarizing the book here, but there was one section that really got my attention. It was on "dreamlining" - where you ask yourself some specific questions to elicit a response that can help you to create some important changes in your life.

I thought it would be great to blog about. Here are some of the questions (and a few of my answers). I believe this exercise is to help you consider other things you can do vocationally, but it really got me all excited in my heart because I was reminded that yes, there are some things that I am good at - and I was created to do some great things!

What are you good at?
Cleaning, organizing, list-making and crossing things off that list. I'm good at making Excel spreadsheets, housekeeping, hospitality, and staying busy. I am also good at encouraging others and inspiring them, from what I've heard. I'm also good at being funny and a goofball at times... but I think there is a difference between what I am good at and what I like to do, also.

What could you be the best at?
I could perhaps be the best mom, mostly because I don't need a lot of sleep. I could also be the best wife, because so far so good :). I could be the best at making lemonade when I get lemons - so far so good with that, too :)

What makes you happy?
Coffee dates with Matt, journaling, reading, running, tackling daunting projects (and finishing them), family, babies, friends, God, travel, relaxing when I can. Cooking and baking make me happy, and especially when I get to cook for others and they like what I have made.

What excites you?
Financial peace, health and fitness, getting people connected, helping others, and a good cup of coffee always works. I also get really excited when I see folks take action to deal with a situation. I get excited when I think about travel and this whole wide world that is to be explored.

What makes you feel accomplished and good about yourself?
Crossing a race finish line ALWAYS does that. A hard days' work (with that to-do list all scratched off), a meal well made, obedience, climbing a mountain (real or figurative), finishing a project, taking action when I see injustice.

What do you enjoy sharing or experiencing with others?
I enjoy fellowship with others so much - whether 'just the ladies' or with a big group of friends. I love telling funny stories and making people laugh. I enjoy sharing my faith journey, my love for all things Anne of Green Gables, and funny stories from childhood.

Consider yourself tagged! What are some things you are good at? Don't be modest and all polite - you know you are good at stuff. Spill it ;)

Financial Peace - Lesson 9 - Mutual Funds

I thought this class would be interesting! I wondered why Dave recommended investing primarily in mutual funds, and the class had so much data in it on the long-term benefits that outpaced single stocks, bonds, fixed annuities, and CD's. Plain and simple data - it works.

It feels like it will be awhile before we can get serious about investing though since we have such a mountain to climb to get done with baby steps 2 and 3 (getting rid of all debt and saving up 3-6 months worth of expenses). I do have my 401(k) in mutual funds though, so that feels good that we are at least getting the ball rolling...

Some class notes:
Investing options may seem overwhelming. Whether it’s stocks, bonds, mutual funds, CDs, annuities, or money markets, there’s so much to choose from.

Remember, it’s never too late to start investing, especially with today's life expectancy climbing. The best way to invest is to be out of debt first. Make sure you diversify. Don't put all your eggs in one basket, and only work with investment advisers who have the heart of a teacher (not the heart of a salesman).

Dave recommends spreading your investment amount evenly across four different funds:
Standard Diversification
25% Growth & Income (a "middle of the road" approach to investing that falls between aggressive growth funds and conservative income funds.)
25% Growth (equity stock -shares- fund that invests in fastest growing firms, typically growing at an average rate of 10 percent per year, with capital appreciation as its primary objective)
25% International (those funds that invest in non-domestic securities markets throughout the world.)
25% Aggressive Growth (A mutual fund that invests primarily or exclusively in high-risk, high-return securities.)

Conservative Diversification
25% Balanced
25% Growth & Income
25% Growth
25% International

Investing is a scary thing for many people. The thought of putting your hard-earned money into a wealth-building tool that isn’t 100 percent guaranteed can be daunting. But much of the fear surrounding investing is due to a lack of knowledge. Now that you’ve learned a little bit about mutual funds, aren’t you excited about the potential your money has?

In closing...some thoughts.
Matt and I talked about how we don't want to be so caught up in building up our bank account so we miss out on living life. We actually want to take intentional "mini-retirements" throughout life instead of waiting for it all at the end of our life. There were stories shared in class of colleagues that retired and passed away a year later. We want to take serving-vacations, educational trips with children, and times of unplugging, on purpose. If this means that we have a little less at the beginning, so be it. We will have some great memories and stories!

What do you want to do with your retirement time and when?

Happy Wednesday, all!

A Night Off

Matt had an old housemate of his come to visit us and stay a few days, and it was so wonderful to have a night off from cooking and enjoy something new! The menu last night was some Turkish cuisine, and it was divine. We love Monday nights because it is for the most part a low-key night - the rest of the weekday evenings are full!

Matt and I kicked off our 16-week marathon "Rookie" training plan this week! This is what our new schedule looks like:
Mondays - a quality run (3 miles last night)
Tuesdays - cross training (did weights and core workout this morning)
Wednesdays - an "easy" run (this week 4 miles)
Thursdays - a "tempo" run - times of going faster and slower
Fridays - a "rest day" to prepare for the Saturday or Sunday long runs
Saturdays - an easy long run (easy meaning you are not racing!)
Sundays - a rest day, but we'll play tennis :)

Since we still have a few more weeks of our FPU class on Tuesday nights, I have to wake up at 5am and do the workout then. Matt does it later in the day on his own.

Sure, it is a significant time commitment, but to run with a partner is wonderful. We are training together, and that means some quality time talking about important stuff, too. We are excited for a marathon this summer!

Tonight is FPU class - on mutual funds. I'll be back tomorrow with my class notes :)

Happy Tuesday, all!

I Am...

*In desperate need of a haircut*
Ok, so really I fro'd my hair out for the camera. :) Matt helped me straighten my hair last week, and I took a "Before" picture, then forgot to take an after. Oh well!

I am also:

*Needing to remember to take more photos. I made some great meals this weekend and forgot to take pictures to prove that yes, I can now cook...a little...

*Not good at making Stroganoff. I forgot have the ingredients and put in A1 Sauce instead of Worcester sauce. Still, it had steak in it so Matt loved it! I also made buttermilk pancakes this weekend that were super healthy - I added whey protein and flax seed. They were GOOD, and even better with my mom's homemade plum syrup :)

*Living in a clean house once again. After my doctor appointment on Friday, I used the rest of my off day cleaning, organizing, and cooking! I loved it!

*A genius for coming up with uses for leftover turkey. I made AWESOME chili on Friday, and when Matt got back from meeting with clients all day he was greeted with a hot bowl of the good stuff - super easy too! In a slow cooker: 2 lbs of cooked turkey (two filled sandwich sized freezer bags), 3 cups of cooked kidney beans (also pulled from the freezer - I get 'em dry and cook and store them for soups). Then add a 28 oz can of stewed tomatoes, a small can of mild green chili's, 1/2 an onion chopped up, a cup of water, and 2 packets of chili seasoning. SUPER EASY!

*SO proud of my sister-in-law, Annie, as she just ran in her first 5K over the weekend! I warned her that she'd get addicted to crossing finish lines...

*VERY blessed to have such a funny husband. We laughed all weekend, as usual.

*A little buried at work. I am learning when the busy and slow times come...right now it is just a little too busy. BUT - grateful for such an interesting job!

*Healthy - just have really ugly tonsils. I need to be really proactive about taking better care of. So, nothing serious, thank GOD! It takes me 10 minutes to do my whole oral care routine at night. That is long enough to run half a mile! Brush, floss, rinse, gargle, WaterPik...geesh! Thanks so much for thinking of me and all your prayers - I am sorry I took so long to put up an update. I blame being home with gorgeous weather!

How are you?

Happy Monday, all!

Thursday Laughs

Yesterday was a HOOT!

Matt's headlight went out - we changed it in a Napa Auto Parts store parking lot using a pocketknife to unscrew the screws. Had to do it before dark so we did not get a "fix-it!" ticket...

Went to the pub...on St. Patrick's Day...and it was SO PACKED! We HAD to have some fish and chips though, and Matt wanted a green Guinness...so we found a table and cleared it ourselves. We noticed another couple looking for a place to sit - so we invited these strangers to dine with us! Fun times.

We split a platter and ordered a couple small house salads. The food arrived quickly and then we could not find our waitress anywhere! We looked around, asked other staff, and NO ONE would help us when it came time to pay our bill and get to Bible study on time. Needless to say - we bailed. WAIT one second: we DID pay our bill - we just went back to the pub after Bible study was over and paid it then when it was less busy. I still felt a little guilty...but we tipped REALLY nicely :)

Then, at 1:30 in the morning I had a dream that my alarm went off. I turned to Matt and said, "I am going to just get up before our alarm and get ready". I grabbed my glasses and phone and went to go get dressed, and noticed the time. I thought it was 5:30! I am SO glad that I did not get too far into getting ready before I made the error...

TODAY is my FRIDAY because I am taking tomorrow OFF. I got in to see a throat doctor, and I figured why not just take the whole day off? This month has an extra weekly check anyway :)

I feel really good that we will have some answers soon. In the meantime, thanks for your prayers and thoughts! Stay tuned for the results...

Financial Peace - Lesson 8 - BIG O'Bargains

This weeks' Financial Peace University lesson was on Stretching Your Money - by getting BIG, big bargains!

Here are my class notes:

You may not be the bargain-buying, negotiating type, but if you’re going to get gazelle intense and make the most of your money, you’ll have to start looking for ways to save money by shopping for big, big bargains.

If you need some ideas to help you get started, try these tips:
Keep your eye on the calendar. If you buy your winter clothes in the summer and your summer clothes in the winter, you can literally save hundreds. Even if you buy a car or house during the off seasons, you can save big. That whole supply-and-demand thing really is true!
Get outdated techno. Be willing to buy last year’s models of TVs, DVDs, computers and digital cameras and you can save tons. Chances are the bells and whistles added to the latest versions aren’t worth the hundreds that you’ll save!
Comparison shop. You may always shop at one particular store, but venture out to find big bargains at stores you may have never visited before. Discount stores and second-hand shops are fantastic places to find deals and save big-time! You can even hop online to find sites that compare products and stores to help you find the best value.
Make a deal. Don’t be afraid to negotiate for a lower price. If you’re shopping with cash, your chances of making a sweet deal are a lot better.
Get to know eBay. Buying stuff at online auction sites is another way to get nice, slightly used items. Just make sure you buy from reputable sellers with a high positive feedback ranking.
Be patient, be willing to negotiate, and educate yourself about what items are on sale during certain seasons, and you’ll be saving big before you know it!

The Lucky Seven Basic Rules to Negotiating:
1. Always tell the truth.
2. Use the power of CASH.
3. Understand and use walk-away power.
4. Shut up. (Let them do the talking - talk their way down when you don't say anything!)
5. Say "that's not good enough" and see if you can get a better deal.
6. Good guy, bad guy
7. Use the "if I" take away technique.

Places to Find Great Deals
Estate sales
Individuals
Public auctions
Couponing
Garage/yard sales
Flea markets
Repo lots
Refunding
Foreclosures
Pawn shops
Classified ads
Consignment shops

I think the most important lesson that I learned was how important it is to be patient when making a big purchase, and to not be "married" to a buy - you won't be able to walk away when you must! Also - to not be afraid to ask for a better deal. I tend to be a bit shy on that one, but then again, I hate to shop...

It was a great lesson indeed!

Did anyone notice the Google logo for today? I love it!

Happy St. Patrick's Day all - we are celebrating with some Fish-N-Chips at a local pub tonight (we set aside $$ just for the event!). We're splitting a platter, but mostly for health reasons!

In closing - do any of you have a great bargain deal that you got? Do share your story!

Happy Wednesday, all

We're a Team

5:30 am - the alarm sounds. Definitely have to hit snooze once, I'm all warm and cozy!

I'll make the coffee, because I am really good at it and sweeten it just right.
He reads to me from Proverbs, and we talk and laugh before it is time to go.

He has a song in his head, humming it loudly. I find the song on the iPod, and we have an impromptu dance party in the living room.

Now more fully awake, we head to the van pool by 6:50am.
He drives me there and back - just for that extra time together.

I work from a laptop at a winery, and on breaks I talk on the phone.
He works from his laptop in our home, and on breaks he makes the bed and does dishes.

We run side by side on an evening run, excitedly talking about the future, our plans, dreams, and goals.

Dinner is made together - he cooks the meat and I'll prep the vegetables. We sit side by side, give thanks to God for His provision, and enjoy a quiet meal together - well, almost quiet, because usually we are laughing (he quoted that movie line, I made that face, he said that joke).

He scrapes off the dishes, and I load them up.

We sit side by side with our laptops, enjoying downtime together after a long day. He shares some news from the Wall Street Journal, I share about the talks over the phone that I had.

As we turn in for the night, more dream building takes place - vocational dreams, places we would like to go, financial goals, hopes for our family. They are sweet, sweet talks.

Then - WHACK - he gets me with a pillow, and shows me a wrestling move from when he was in the 7th grade. We allow the giggles to subside enough to say a little prayer before lights out.

I fall asleep still grinning, cuddled rightupnexttohim.

I have the *best* team mate.
I never knew marriage would be this much fun.
(I love you, Matt! Thanks for the new blog banner too, you are so talented!)

Running the race: Lessons on the Race course for Life‏

(This is a guest post by my precious husband, Matt! Tech nerd, consultant, movie-line quoter, and Rockband star..)

Running the race: Lessons on the Race course for Life

This weekend, Ruhiyyih and I ran a 10K. Though we've run farther in training together, and she has run much farther on her own (doing two marathons and the full training for them), this was the first race that we ran together. For me, it was my second 10K.

It was a great time. For my part, I didn't feel any anxiousness at all. After all, it was just another day of running. 10K is just 6.2 miles, and we've been running 5 and 6 miles for several weekends in a row now getting into “pre” training for marathon season.

It was just a lot of fun hanging out with Ruhiyyih, like always. We talked, ran and just did our thing.

A few observations that can be taken as lessons on life showed themselves as a result of the race:

We focused on running our pace, not worrying about how fast or slow that is compared to everyone else in the race. We weren't there to take first place. We were there to finish the race.

Lesson One: Winning is finishing.

What matters is getting across the finish line. This has application for a variety of things. Usually ones that are tied to specific goals over short periods of time. Not all of life has a finish line; most of it doesn't as a matter of fact. It's meant to be enjoyed while you are on the trail, not just at the sweaty end near the porta-potties.

How else does this play out in life? How about this: An older couple I know (meaning older than us), who's kids are in college now, had a plan for their investing. In the Tech stock boom (and subsequent bust), all of their friends were making a killing in Tech stocks. Or so it seemed. “Everyone was doing it”. It looked like they were missing the boat. Their plan was giving them the returns that the plan was supposed to provide. In short, the plan was working. They were on track. But those “killings” were just too tempting, and they switched what they were doing just in time to get killed in the bust. Oops. Finishing at an even pace is better than attempting to short-circuit the process for what looks like faster results. And this is often true outside of racing and investing. The principal transcends the example.

Lesson Two: Run your pace.

Very intentionally, we focused on running our pace, and letting everyone else run theirs. Why? If you try to run a faster pace than you can maintain, you will at the very least burn out, and possibly risk injury. It's not worth those things to keep up with the “Joneses”. Just run it in the way you know works for you and let others worry about that for themselves.

I briefly met another couple. They were young, fairly newly married, no kids, and were just starting out building a life together. They wanted to get a place of their own to make a home in. This was in January 2007 at the height of the housing boom in Sacramento, CA. They got talked into buying not one, but two houses, both with Option ARM loans. ARM means “adjustable rate mortgage” and the 'Option' part of it means you have multiple options for how much you pay every month, usually four options:

- A specified minimum payment (usually not even covering the interest for that month)

- Interest only payment (only the interest that accrued for that month)

- 30-year fully amortizing payment (a standard 30 year loan program. The house will pay off if you pay this amount every month for 30 years)

- A 15-year fully amortizing payment (the largest amount on a set monthly schedule. It would pay off the house in 15 years if payments were this amount every month).

This can (and I stress can, but no guarantee) be a useful loan vehicle: for investors. It is designed for investors, who need to manage their cash-flow, don't plan on holding onto the houses for very many months, know before they buy what their exit strategy is, and know how much they should make on selling worst-case scenario (as opposed to pie-in-the-sky best case scenario if the planets align, and the moon is blue). It is not the way a long-term home owner usually buys a house, and for good reason. When this couple bought, the market in California has been going up astronomically for years straight. They bought into the hype that said they were missing out if they didn't get on the bandwagon. They bought the idea of being landlords in renting house #2 out, before they had any experience in house #1 in the first place. In short, they allowed themselves to be sold on someone else's pace.

Lesson Three: Know yourself.

This is implicit in the previous lesson – you can't run “your” pace, if you don't know what it is. This is a trial and error kind of thing. That's why training is important (read: experience). If this is your first time out on the course, then you don't have previous experience to judge against in how you'll do. In that case, you better get some solid coaching. Pace may even change over time and training. Currently, in our running, Ruhiyyih and I aren't working towards that. For some runners, that's the main thing they are working on: getting that goal time down. Whichever way, you can't really make progress until you know where you are. The principal carries over into investing, home buying and a myriad of other things as well. You've got to know yourself.

Lesson Four: No need for comparison.

This has a lot of application in life in general. Very often, the person who cares about hitting a target in your life by a certain pre-set time is you and only you. We don't know everything, and so there may be a very good reason that you need to have a spouse by 27, a house by 30, a luxury vehicle by 35, a nest-egg by 45, and so on. But very often, these are arbitrary mental deadlines that we impose on ourselves that no one else actually cares about. We get sold through movies and advertising that the “Joneses” are achieving these status symbols, and that we are somehow inferior people if we don't attain them ourselves. Very often, people with more income than you, are living at a higher debt level and therefore, have 'further to fall'.

For us this weekend, it meant not worrying about being passed by other runners. We just kept our pace steady because we know what we can keep up for 6 miles. On the last half of the race, we noticed something funny – we'd been passed by a number of runners that ran faster ahead, and then had to walk for bit. When they stopped to walk, we'd pass them – at the same pace we'd been going. Then they'd run faster and pass us again. Repeat. At the end, they'd burnt out, and had all fallen behind us. Not that we were concerned with that ourselves, but it illustrates the lesson: you don't need to keep up with the “Joneses” and compare yourself.
I hope you enjoyed Matt's story. When he shared it, I thought he would be the one to tell it best. ;)

Happy Monday, all!
Love,
Ruhiyyih (& Matt!)

Insured and...Irish

Thanks so much for all of your suggestions, feedback, and prayers. Matt and I talked extensively. I realized that I needed to get my rear into gear and get to a specialist. We also did lots of research into different health plans, and settled on one that we can somewhat afford.

SO! As of Monday - I am insured. It is a pretty good plan, running around $230 a month. Also, I got the hookup with a local Otolaryngologist (Ear/Nose/Throat) and I have an appointment for next Friday. I will get a cancer screening - paying cash for that, but it will put our fears to rest.

To celebrate the good news of health insurance and a doctor appointment, Matt and I are going to run in a race! I know, we are weird. And, very Irish :)
This is going to be an awesome weekend! Well, aside from losing an hour Saturday night (thanks Daylight Savings Time)...

Tonight Matt is hosting a guys' game night at our house. I am going out with the ladies!

So here's to hoping we can complete a 10K (6.2 miles)on Saturday morning. We are running the St Patty's Foot Race here in Tri-Cities. We are excited and ready!

Then of course, to-do list tackling in between some downtime. I do love weekends...

Some Thoughts on Health

Thank you all so much for your helpful comments on my blog post on insurance. It was really informative!

As Matt and I are trying to acquire more insurance, we've started crunching the numbers. We do not know how long it will be until the business that Matt is starting will actually earn an income. We talked last night about him picking up a part-time job while spending the other part of his day doing the design and consulting work for our business. There are so many variables to think about here that it is tricky. He has signed an agreement to do some consulting work in the area, but that has not yet started yet - and we are unsure when/if it will.

My ongoing health issue with the chronic throat infections needs some serious attention. I had a teary moment at Bible Study last night; we were singing a song and I got all blubbery. The truth is: I am scared it is something serious. I need to see an ENT (Ear/Nose/Throat) doctor, and soon. Without insurance, it means paying out of pocket. We have an emergency fund...but I am having a hard time bringing myself to use this fund. I'd rather try to get on some insurance soon and then see the doctor. It will be harder to GET insurance if something serious is indeed discovered. :(

So, we are stuck in this decision-making-what-to-do-and-in-what order thing.

We talked with our pastor for an hour last night (thanks Josh) and brainstormed some additional vocational things we can do to come up with the additional income to cover insurance. I feel so grateful that my paycheck covers nearly everything - we are just a little short.

I am not sure if I am asking for suggestions, prayer, or both. I guess I just needed to share that I am struggling, but that God is good - all the time. It is just hard. Matt and I are well-educated, smart, capable individuals trying to make it in a tough economy. Add to the mix this health scare...it is just not fun.

Sorry to be a bummer today. The good news is that tomorrow is Friday and that I don't need to worry. Because worry does not change things: action does.

Financial Peace - Lesson 7 - Clause & Effect

WHEW this class was informative! Matt and I both left feeling so much more empowered as consumers as we were equipped with knowledge that will have us saving thousands of dollars over time. (And we thought the class on "insurance" would be boring!)

Here are some class notes, as promised:

Insurance can be confusing and tedious. But it’s a vital aspect of everyone’s financial plan. Insurance is an essential financial planning tool. The purpose of insurance is to transfer risk. Without proper insurance, certain losses can bankrupt you.

Whether it’s health, homeowner, car, life, or disability, you have many insurance options to choose from. You have to make insurance a priority, learn what you need, and get it now. Determining whether a higher deductible, which brings a lower premium, will save you money in the long term.

Insurance You Gotta Have: Basic Types of Coverage Needed
1. Homeowner’s or Renter’s Insurance
2. Auto Insurance
3. Health Insurance
4. Disability Insurance
5. Long-Term Care Insurance
6. Identity Theft Protection
7. Life Insurance - TERM ONLY! "Cash Value" is a total rip-off!

Regarding Car Insurance:
According to Car-Accidents.com, 6,328,000 car accidents occurred in the US in 2003. That same year, there were 2.9 million injuries and 42,643 people killed due to auto accidents. According to the National Center for Health Statistics, car accidents were the leading cause of death and injury in the US in 2002.

Insurance is an unpleasant topic for most of us. When paying those premiums, it sometimes feels like money is just been thrown away. But in light of these statistics, insurance is a necessary part of living. Accidents happen, Murphy moves in, and there’s no easier place for accidents to occur than behind the wheel.

This week we want to give you some tips for making your coverage as affordable as possible.

1. Shop for a policy with a higher deductible and bank the extra money for emergencies. You should also increase your liability coverage.
2. Don’t pay for personal injury protection, also known as medical payments coverage. If you already have health insurance for yourself and your family, it will cover any medical bills you would have after an accident.
3. Have your agent write the policy in such a way that the total amount paid per accident and per person are the same. Many insurance companies will only pay a fraction of your total policy for each person injured. Making sure the amount per accident and per person match will ensure that you avoid a lawsuit.
4. Make sure your policy covers the cost of a similar-sized rental car should your car have to go into the shop after a wreck. This will save you hundreds of dollars.
5. Shop around and don't just ask for a quote. Give the agent exact numbers on the coverage you need.
6. Ask for discounts. They give them for everything from having safety features like airbags or anti-lock brakes to taking a defensive driving class.
7. Drop collision insurance if you have an older car. If the collision part of your insurance is significant, you can bank that money and self-insure. Wouldn’t you rather pay yourself than the insurance company?

There are several types of insurance that are simply unnecessary, but auto insurance is one thing you can’t afford to live without.

I was really impressed with the sections on disability and life insurance. We are determined to find a way to have this coverage soon, as the testimonies we heard regarding them were inspirational.

The one that hit heaviest: long-term health coverage. It is absolutely NOT necessary to have this insurance before age 60, but it is critical to have it after 60. With nursing home costs in the thousands per month, it is a must-have. It got Matt and I thinking about our parents. If they do not have it, we will get it for them - because one of the biggest challenges our generation is going to be facing soon is not putting our kids through college - it will be taking care of parents!

I left the class feeling a little heavy hearted because we are so severely under-insured. We have auto coverage right now, and that is it. For women, that "security gland" is telling us drop everything and get insurance! The thing is, it is really expensive - and we are still in the start-up phase of our business. It will be awhile, unless I get hired on full-time at the winery. So, we are praying for provision, and looking into other options. Still, it is scary. We did learn about Health Savings Accounts (HSA's) - they are a great way to acquire coverage if you can save up for the deductible (and build savings tax-deferred).

There you go. A little (big!) lesson on INSURANCE! (GET IT!!)

Planning Plans

It is no secret that I am a planner.

When Matt and I were in Chicago, we passed by a family where a child was asking his mom, "Mommy why do we always have to have a PLAN?" and she calmly replied, "Because I am the planner, baby!" It was adorable, and so right on.

I love daily routines (devotional time, coffee with Matt in the morning, checking email, blogging, budget updating, exercise). I love making plans for the future (trips, races, big purchases, home improvements, etc.)

I had to laugh after a call with Matt this morning, "Hey love! Can we use that tax reimbursement to go out to a movie? Did you make that smoothie I sent you the recipe for? The savings plan for the summer trip to Montana is coming along nicely. I'm excited for the St. Patrick's Day Foot Race this weekend!" - all in one breath.

Poor Matt. The funny thing is, I think he really appreciates all my planning. After a run on a sunny Saturday, I have an extra water bottle and snack in the car. On a Tuesday night, I've pre-made our dinner so we can have a picnic before FPU class (and save time rushing home and back after work). On Thursday mornings he can count on me placing an order for two Americanos with room at our local Starbucks - a budgeted item to help keep things fun.

Is it a temperament thing or just a habit to be a planner? I have a weekly planner book I carry in my purse, and I have an online one as well. I LOVE organizing things and love sites like realsimple.com and helpful online tools like mint.com. Am I a weirdo?

We are planning a summer trip to Montana to run a marathon and do some hiking. This is the first time we have both just saved up for a big item instead of putting it on a credit card and paying it off. So, we had to start saving six months in advance! But, it feels good.

Tomorrow morning the coffeemaker will turn on automatically at 5:45 am and it will help usher in a new day of dreaming and planning. Even when life feels like another day of coffee/commute/work/commute/eat and an event or exercise - it is busy and full. I still have to plan downtime, because otherwise - I would totally pack it in. That is why Matt is so good for me - we really balance each other out. I never liked sitting through a whole movie before, but it is a different experience when you are cuddling with your hunky husband!

Do you overplan? Underplan? Free spirit or a nerd?

Happy Tuesday, all :)

Some Firsts

What an awesome weekend. By Friday night I was *so* ready for date night with Matt. We made haystacks for dinner (like overloaded taco salads!) and watched "Everybody's Fine" on DVD. Good flick, great dinner - SO restful at home!

On Saturday morning, I did a photo shoot for my pastors' wife that just had a baby at the beginning of February. It was my baby shower gift for her since we could not afford much else! I had so much fun...


It was my first-ever baby photo shoot. I learned a lot! First of all - it is a lot easier to take pictures of newborns when they are asleep. Secondly, I don't think I am very good at it. Thank goodness this was just for fun - I am far from professional!

Saturday afternoon Matt and I ran "the bridges" here - two huge spans criss-crossing the Colombia river, in 60 degree weather. It was an awesome five-miler! Then we tackled a bunch of errands, one after another, to just get them all done. After we had purchased all our weekly groceries I had about $15 leftover from the budget, so we bought me a cheap tennis racket! So Sunday after church we had our first picnic outside as a married couple, and a wonderful first game of tennis together :)

Matt had a grin on his face the whole tennis game. I love his grinning cheeks!

Ah. A first baby shoot, first picnic with Matt as my hubby, first tennis match together (first time picking up a racket in a good five years too...). I also cooked up my first turkey noodle soup in the crockpot, using leftovers.

It was a great weekend. How was yours?

Thinking About...

I have had a lot of things on my mind this morning...I thought I would share a few things that I am thinking about:

...the fact that I eat about five meals by 3pm. Dinner is the last one at 7. My appetite is crazy sometimes! "First" breakfast at 6am, "second" just before 8 when I start work. Third meal at 10 at breaktime. Lunch at noon. Another snack or coffee around 2:30...Good thing that they are (mostly) small meals!

...my passion for having financial peace - for all. I got all excited today talking to a co-worker about suggestions for building her savings (using stuff I learned in our class). I am eager to help people, and this is an area that I get really pumped about. For Matt and I, it has been ignorance up until this point of why we are in the situation we are getting ourselves out of now. Once you have the tools, you can't wait to put them to work and see some results!

...how hard Matt has worked on our business' web site this week. He is so creative! I am thinking that we will be up and running soon - and I want to help with the bookkeeping side of our business so much. So excited...

...how working at the receptionists' desk all week at the winery while she was on vacation has been one of the hardest tasks ever. I have paged someone to call themselves, directed all sorts of calls to the wrong people, and been heartbroken over how many people are looking for work :(

...how I REALLY need a new hairdo but I don't want to spend the money. With summer coming soon, I can't imagine having long hair that goes past my shoulders (and still be a runner in that heat?!)

...I really miss Facebook. I only check it for about five minutes in the mornings. It is blocked at work, and I don't like to spend time on the computer at night, unless it is a few minutes after dinner and before we leave to go on a run.

...only two weeks of vacation a year at a normal American company means that you will need to get a new job every three years or so in order to really get out and do some vacationing. Or, be a teacher. :)

...how I think too much...

...that I have a wonderful husband (I love writing that: I have a husband!)

...I miss being in a women's Bible study. I love our co-ed one we attend, but I miss "just the ladies"....

...I need to try the new Dark Cherry Mocha that is now being offered at our local Starbucks...

And finally...I am totally thinking about how tomorrow is FRIDAY = date night = excuse to stay in and just spend time with Matt!

Happy Thursday, all!

Financial Peace - Lesson Six - Buyer Beware

Another great FPU last night! This weeks' lesson was called "Buyer Beware". I loved this one because we want to be armed with the right kind of questions when we can actually afford to buy big items someday. It was a really humorous presentation - how many of us have had buyers remorse or a similar regret?

Here are some of the notes!

"Much of the financial distress we experience and the stupid tax we pay could be avoided if we were just a bit more cautious about retailers, advertisers, credit card companies and the tactics they use to reel us in. Knowing how hard they work and how much money they spend to thwart our plans for peace and freedom should cause us to buckle down and get serious about changing our approach to spending."

If you’ve just learned about some of the schemes about which you need to be more aware, check out these practical tips for some fantastic ways to avoid being taken by scammers.

Practice patience. Waiting just 24 hours before making a major purchase is the best way to be certain that you’re not impulsively buying something or just buying because a salesperson is pressuring you.
Stay accountable. If you’re married, be sure to include your spouse in major purchasing decisions. You’ll balance each other and keep each other on track. If you’re single, find someone who will keep you accountable when it comes to big buys.
Get educated. Be sure you completely understand any terms or deals and even the products or services on which you spend large amounts of money. One of the most common places for scams and lies is the car lot. But if you get as much information as possible ahead of time, you won’t be taken in by the standard one-liners and sales gimmicks.
Do it yourself. There are many companies that insist that you cannot live without their service or product. But, chances are, you can do it yourself. Cleaning up your credit is just one example of something you can do yourself. But there are countless ads (you know you’ve seen them) from companies who tell you they are the only ones who can help you. Don’t fall for their tricks.
Don’t buy the lie. Savings accounts, air miles and cash-back bonuses are all highly-touted incentives that credit card companies offer to keep consumers enslaved to their card. But oftentimes those incentives are laden with misleading fine print and tricky strings attached. Don’t let them talk you into their card just for the airline miles or a few bucks back at the end of the year. You shouldn’t be playing with snakes anyway!

Buyer Beware List: Beware of the following as a consumer...
- 90 Days Same-As-Cash
- Zero-interest loans
- All credit cards
- “Let me check with the manager.”
- Impulse product offers
- High-pressure sales tactics
- Get-rich-quick schemes
- Zero-risk investments
- Cosigning loans
- Anything that sounds too good to be true

As a review:
Phrases like "90 days same as cash" and "no interest until 2010" are meant to lure you into debt. Fall for these tricks, and you could end up paying substantial “stupid tax,” otherwise known as mistakes with zeros on the end. And remember, for major purchases (larger than $300), always wait 24 hours before buying. If you are married, always communicate with your spouse.

My favorite part of the class was the reminder that no amount of stuff will provide contentment or fulfillment!

On a side note: Yesterday went MUCH better than Monday, and today is a whole new day as well. I think spring is in the air too...

Kitchen Therapy

Yesterday was hard. First thing in the morning at work, I got word that I had done a huge project all wrong. I mixed up two pricing categories that affected so many different departments = stressing out a lot of folks :( So - I cried for about an hour at work as I did the corrections (for the next six hours). Then, when I got home, I cried on Matt's shoulder for about an hour too. I could not make the tears stop!

When I finally recovered (thanks to his joke-telling, and a few comedians we pulled up on YouTube...) I was on the mend. Matt and I got to work in the kitchen making Turkey Biscuits - a tradition in his family that he was teaching me.
You take a traditional biscuit recipe, roll it out like you are making Cinnamon rolls - but fill the dough with cut up pieces of leftover turkey! Super easy, and heavenly with some homemade gravy on top.

2 cups flour
1 Tablespoon Baking powder
1/8 teaspoon salt

Mix together, then cut in:
7 Tbsp butter (no shortening for me, ick!)

Add 3/4 cup cold milk and mix with your hands. Roll it out on the counter, fill with turkey, and roll it up like a log. Cut out biscuits, bake for 15 minutes.

Enjoy :)

(Today is a new day. All fresh with no mistakes in it!)

Matt's 35th Birthday Party

The birthday boy had a blast yesterday at his party - it was our first time hosting at the house together, too! It was a 60-degree day out - so I washed all the windows and we opened them up - so wonderful to feel a fresh breeze in the house.
What a handsome guy! He had asked for a "chocolate cake with cherries" so...well, this is what I came up with:
But it was on the ugly side and not suitable for candles, so when a guest arrived with this massive cake from Costco, we fixed it up to be the birthday cake:
We were cracking up about something...I wish I could remember! I think it had to do with me helping him to blow out three of the candles....(old man...)

I love my hubby! What a fun time!
We situated the living area to seat a lot of folks. So, that is what it looks like right now. I am so eager to buy and install some white "floating" shelves for that bare, royal blue wall!

I also cooked a turkey! My first one,ever. I learned to late to cook it breast-side-down, but will do that next time. Oh well - it will provide some good protein this month. I boiled up that carcass for stock, too.
Overall, it was a fantastic day. Sort of a nightmare to clean up, but chipped away at it all evening and by the time Matt and I settled in for a movie at 7:30, it was spic-and-span again.

I would say it was one awesome weekend. We ran six miles on Saturday in 60-degree temps, too. Then Sunday had more sunshine for us = great view out the windows!

The gorgeous view out the back porch:
So funny how after such a fun weekend I can feel so exhausted on a Monday...

Well I gotta go take the cake leftovers to the breakroom now. Yes, I hauled all the sweet stuff out of the house this morning. Well, accept for the ugly (yummy) cake that I made... :)

How was your weekend?