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Nix the lawn service?

Dear Dave,
We currently pay to have our lawn mowed each week. This expense is figured into our monthly budget, but we’re not quite out of debt yet. My wife says this is a luxury at this point, and I should cut the grass myself until we’re out of debt. What do you think?
Ty

Dear Ty,
I think it depends a lot on your income. If you’re a surgeon making $350,000 a year, then making lawn care part of your monthly budget is probably pretty reasonable. Now, if you’re only making $26,000 a year, you probably need to get behind the mower and start pushing it yourself!

Is this a snobbish attitude? I don’t think so. It’s a simple matter of mathematics. What is your personal time worth in the marketplace, and should you be plying your trade out in the world rather than mowing the lawn?

Let’s say you’re an attorney who charges $400 an hour. In that case, you’re probably going to be better off out there lawyering—especially if you’re trying to get out of debt—than you would pushing a mower. But if you make $12 an hour, it’s a good idea for you to be cutting your own grass, isn’t it?

Whether or not something is a “luxury” depends on your own personal income and financial situation. That’s how I look at it.
—Dave

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Why retirement before college?

Dear Dave,
I noticed that your Baby Steps list puts saving for retirement before saving for your kid’s college fund. Sending your kids to college would come first on the timeline, so why do you suggest this?
Jen

Dear Jen,
I advise this approach because everyone is going to retire someday, unless, of course, they happen to die before reaching retirement age. Retiring and eating are necessities. College is a luxury. Lots of people succeed in life without going to college, and thousands have worked their way through college. I worked 40 to 60 hours a week in college, and I still graduated in four years.

Having a college fund set aside by your parents is really nice, if they can afford that kind of thing. But you can go to school by getting good grades, applying for scholarships, working your tail off, and choosing a school you can afford. I believe in education, but there are lots of ways to get a college degree other than having your parents foot the bill.

The last time I checked, there aren’t any good ways to retire except for getting yourself ready for retirement. I mean, you can always live off Social Insecurity and buy that great cookbook, “72 Ways to Prepare Alpo and Love It,” but I don’t consider that a plan.

In short, college funding is not a necessity. That’s why it follows saving for retirement in the Baby Steps. Should you try to save up for your kid’s college education? Sure, if you can. But there are lots of parents out there who won’t be able to pay a dime toward someone’s college education. And that doesn’t make them bad parents!
—Dave

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Sep
02

Are You Prepared?

By Parkey Thompson · Comments (0)

I was on my way to a meeting early, before the sun was up, this morning.  Driving down the interstate, fighting the wonderful Atlanta traffic, the overhead traffice message board flashed the following message – “September is Nation Preparedness Month”.  Did you know that?  Honestly, I was not prepared for that at all.

It is a great reminder that we need to be prepared.  As I write this, hurricane Earle is churning in the Atlantic.  Having spent some time on the coast this year, I can only imagine what residents are feeling, watching and anticipating.  I told my wife last night, “for the sake of all those who listened to the weather people, I hope those computers are right”.  As a side note, weather personalities are the only positions that can get their job deliverables right less than 50% of the time and still keep their job.

What if it was you?  What if you we facing a hurricane and you had to evacuate?  What if it was a fire?  An earthquake?  What about the death of a loved one?  Are you prepared?  Are you ready to move forward with the necessary information you need to get re-established.  Sadly, most are not.

Do you have all your accounts listed for someone, maybe yourself, to have the information ready for their immediate use?  Important papers identified and locations known?  Most do not.  Are you prepared?

I have a document titled “Your Love File”.  It is a basic list of the things you need to have in place to carry on in the event of  disaster or your death.  It is simple, but lists many of the things that we don’t think about daily and surely not when facing a calamity.

If you would like a copy, please send me an email to parkey@imoutofdebt.com .  I will get that copy to you for you to begin your planning.

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Categories : Life, Planning
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Sep
02

Are You Prepared?

By Parkey Thompson · Comments (0)

I was on my way to a meeting early, before the sun was up, this morning.  Driving down the interstate, fighting the wonderful Atlanta traffic, the overhead traffice message board flashed the following message – “September is Nation Preparedness Month”.  Did you know that?  Honestly, I was not prepared for that at all.

It is a great reminder that we need to be prepared.  As I write this, hurricane Earle is churning in the Atlantic.  Having spent some time on the coast this year, I can only imagine what residents are feeling, watching and anticipating.  I told my wife last night, “for the sake of all those who listened to the weather people, I hope those computers are right”.  As a side note, weather personalities are the only positions that can get their job deliverables right less than 50% of the time and still keep their job.

What if it was you?  What if you we facing a hurricane and you had to evacuate?  What if it was a fire?  An earthquake?  What about the death of a loved one?  Are you prepared?  Are you ready to move forward with the necessary information you need to get re-established.  Sadly, most are not.

Do you have all your accounts listed for someone, maybe yourself, to have the information ready for their immediate use?  Important papers identified and locations known?  Most do not.  Are you prepared?

I have a document titled “Your Love File”.  It is a basic list of the things you need to have in place to carry on in the event of  disaster or your death.  It is simple, but lists many of the things that we don’t think about daily and surely not when facing a calamity.

If you would like a copy, please send me an email to parkey@imoutofdebt.com .  I will get that copy to you for you to begin your planning.

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Categories : Life, Planning
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