Last weekend, one of her friends called to say they had rolled back the cutoff date to mid 2003. The first time around, it didn’t hurt many people in a really bad way. If you’re not familiar with the casino industry, many dealers work 2 or even 3 jobs. Most of the people who were affected the first time around were able to make up the hours at their second jobs, get by with fewer hours, or find a diffrent job outside of gaming.

This time it’s a little different. The ones who stayed on are those who actually depended on working full time for the casino. Many are married couples with kids at home, both working for the casino. I really feel for these people. I don’t know what the answer is, and I don’t know what I’d do if I were in their position. What I can do right now is pray for them and hope they get through all right.

I know one thing, I wish President Obama and the Democrats in Congress would stop trash-talking the economy. We’re not going to recover until consumers start spending, and consumers aren’t going to start spending until they have more confidence in the economy. Continually spouting off about how this is “the worst economy since the Great Depression” (it isn’t) doesn’t help anyone except the politicians playing on people’s fears for political gain. This is the change we’re supposed to believe in? It’s making me sick to my stomach.

Cheers,

Ken

Savings

I would like to increase our savings account by at least $12,000, not including interest earned. This sort of acts like an emergency fund, and also like a self employment fund. The eventual goal is to have 2 years’ worth of living expenses so both of us can quit our jobs and pursue self employment.

Investing

In 2008, I put $500 per month into a 403(b) at work. For 2009, I’m going to change this account to a Roth 403(b) and up my contribution to $1,266 per month (making my annual contribution close to the maximum allowed, $15,200). We will also fully fund my wife’s Roth IRA early in the year to take advantage of the current stock market levels. For 2009, I will also open my own Roth IRA and fund it to the maximum allowed.

As for what to invest in, my 403(b) at work is 100% in Fidelity mutual funds and will stay that way. Our Roth IRAs will be a mix of mutual funds and individual stocks.

Spending

My wife wants new blinds (our old ones really do suck) and I don’t know yet what that will cost. I also want to spend about $15,000 fixing up my Barracuda and about $3,000 on a deer rifle and related gear.

Conclusion

If we consider ourselves as living on one income, we will need to earn about $170 above what I make at work each and every day in order to meet our goals. A lot of this is covered by my wife’s earnings, but I’ve decided to make a goal of earning $170 net every day, above my regular salary. If we can achieve that, we should be OK even if both of us lose our jobs.

Cheers,

Ken

The Good

I managed to avoid all (most at least) of the bad habits that got me into so much credit card debt culminating in late 2007. I rebuilt my wife’s trust in me (still an ongoing process). I set up online access to ALL of our accounts so she can check on me any time, not just once a month when the statements come. This also eliminates the problem of statements getting “lost.”

We were able to fully fund my wife’s Roth IRA and put $7,500 into savings. This in spite of over $5,000 in repairs to our (only 5 years old and well maintained) Subaru. I may never buy a new car again. I was also able to purchase (with my wife’s permission) a really nice model railroad locomotive and a Glock 23.

We have a good budget plan in place. Although both of us are still employed, the possibility that one or both of us will lose our jobs by next June is fairly high, and we have plans in place to deal with that eventuality as well.

The Bad

Our retirement accounts lost about 40% in value. I’m not really too worried about this. We are at least 14 years away from being able to access this money without tax penalties, and I look at it as a good time to be buying.

The Ugly

I invested about $2,500 and a lot of time trying to start a second job as a Realtor. Despite the money and time, I wasn’t able to close a single transaction. Actually, 2008 was my third year of trying to break into real estate, but this year I finally promised my wife that if I didn’t have anything to show for it by year’s end, I would give it up.

Although I wish I had some monetary return on the money I spent, I did learn some valuable lessons. First, people who don’t think that Realtors earn their pay are idiots. Second, it’s very difficult to spend the time necessary to build a real estate business while holding another full time job, maintaining a family, etc. Third, I should have realized point number two after the first or second year.

In Conclusion

I feel we made good progress in our financial situation, and I personally learned (finally!!!) some valuable lessons about trying to start a second job. We are also well positioned for the coming year, regardless of what happens with our current employment. All in all, 2008 was a very good year. I hope yours was as well. If it wasn’t, then I hope 2009 is better for you.

Cheers,

Ken

The problem with New Year’s resolutions is that many treat them as a “thing” that will somehow magically transform their lives. As one of the hookers in Forrest Gump put it, “Everyone gets to start over.” Real life doesn’t work that way though. Self improvement is an ongoing process, not a once a year event. Change occurs over time, not at the stroke of midnight. It’s easy to come up with a list of resolutions, but actual change requires work. As my pastor put it in last night’s New Year’s Eve sermon, you can resolve to change or you can actually change.

I do think the end of a year is a good time to reflect over the past and look towards the future. It’s kind of silly, though, to come up with a list of things you need to change in your life in the coming year. If the changes are really important, why wait until January 1st to start working on them?

Cheers – and Happy New Year,

Ken

• Be Visible. No matter how well you do your job, if you are not visible you are pa=lacing yourself at risk. If people don’t know you’re there, you won’t be missed when you’re gone. Get out of your office and be seen.
• Don’t be a Maverick. Managers value teamwork. Make an effort to cooperate with other people and departments even (maybe especially) if they don’t reciprocate. Be easy to work with, not a source of irritation.
• Manage Yourself. If you finish a job early, turn it in early. If a job is going to be late, keep your boss informed, make sure it is late for a good reason, and don’t make excuses. If you are going through a slow period, proactively look for extra work.
• Update Your Skills. Becoming better at your job not only makes you more valuable to your company, but also makes you more marketable in the event you are laid off.
• Network. Check in often with customers and seek their feedback. Again, this makes you more valuable to your current company and increases your chances of getting leads on a new job if you’re laid off. If people think you’re a good worker, they’ll want to help you.
• Don’t Blow Off Social Events. Go to the company Christmas Party and any other events. Be nice to people. Don’t complain, openly worry, or engage in office gossip (especially negative gossip).
• Be On Time. Being late makes you look like a slacker.

All of this might seem obvious, but if you’re worried about keeping your job it’s easy to lose perspective and forget about the basics. I hope this list of suggestions is useful.

Cheers,

Ken

However, for me it is a dream that just won’t die. I want the freedom and potential wealth that can come from being my own boss. I’m not going to quit my job (yet) to get it though. What I’ve decided to do is make my life my business – “Me, Inc.” Here is what I mean:

• People have jobs, businesses have customers.
• People get paychecks, businesses generate revenue.
• People have bills, businesses have expenses.
• People have stuff (sometimes referred to as “junk”), businesses have assets.

I’m redefining my life in business terms. For example, instead of working for my employer, I provide services under contract to a customer. The money I receive for doing my job isn’t a paycheck, it’s revenue I receive for providing services to my employer (who is now my customer). And so on down the line in each area of my life. Maybe it sounds kind of silly, but I think redefining life in these terms will be beneficial – not only now, but when I’m ready to have a real business of my own.

Cheers,

Ken

Building wealth faster will require not just being frugal, but also increasing our income levels. In fact, earning more not only helps us build wealth faster, it also provides us with more financial security should one of us lose our job. If our whole strategy was based on saving as much as we can, the loss of one of our jobs would mean we would instantly have to start digging into our savings to make up the lost income.

On the other hand, by pursuing a strategy of increasing our incomes, we could weather a job loss without touching our savings. In fact, depending on the streams of income we can create over time, we could continue adding to our savings, even if one of us lost our job. My goal is to build enough income streams to replace the income from my wife’s job. That way, we will be well positioned if one of us were to lose our job.

Cheers,

Ken

1. The Wisdom Journal has a great list of 50 frugal things people should be doing. Although I have done some of the things on his list, I’d like to work through and finish all of them that apply to me.
2. I need to clean out my garage and dump a lot of stuff on EBay.
3. I have another web site that needs a lot of update work done and an Amazon A Store added.
4. I want to spend time doing research for an article on tithing I want to write.
5. I hope to net $50 every day during my time away from work.

I have a real problem with time management and self motivation, so this is kind of a test for me. If things work out (or not) at my job, I may be “Joyfully Jobless” next July, so I’m starting to look for alternative sources of income now.

Cheers,

Ken

Phillipians 4:19 And my God will meet all your needs according to his glorious riches in Christ Jesus.

The Housing Crisis – Are you upside down? If you can still afford to make your payments, then keep making them. Are you behind on payments and in danger of losing your home? Maybe your lender would be willing to do a loan modification. Remember that earth is just a temporary home – our true home is elsewhere.

John 14:2 In my Father’s house are many rooms; if it were not so, I would have told you. I am going there to prepare a place for you.

Unemployment – If you are unemployed, I am sorry for you. Realize that there are resources to help you get through this period. It might be a good chance to cut a lot of dead wood out of your life. It also might be an opportunity to find a better job or a better situation than what you had previously. Also remember here is another type of work besides a job.

1 Corinthians 15:58 Therefore, my dear brothers, stand firm. Always give yourselves fully to the work of the Lord, because you know that your labor in the Lord is not in vain.

What if you’re not a Christian? I think the same principle applies – don’t let yourself become overwhelmed. If you do, you short-circuit your ability to deal with the problem. As the matter of fact, I don’t feel you should focus all your energy on just solving problems. Change the way you see your situation. Spending all your time and energy solving a problem solves the problem, but it doesn’t give you a way forward to where you want to go in life, especially when new problems can keep coming at you. Invest in yourself right now. Gain knowledge. Make new friends. Expand your social and professional networks. Look for new and different opportunities. Your ability to connect with others and make adjustments are valuable assets during hard times.

God. I’m not advocating tithing. In fact, even though I’m a Christian, I don’t believe in tithing. I do, however, believe in giving money to support the work of the church, and also money to help the poor. Investing in God isn’t limited to giving money though. I can also invest my time and talents. This helps me stay focused on what is important, and not fixated on things that will eventually pass away.

Gold. Well, maybe not Gold, but a gold pan. I’m fortunate to live in an area that was rich in gold and other metals, and there is lots of public land to explore. With gold around $775/oz, it makes looking for it worth while. Even if I don’t find any, I get to spend an enjoyable weekend outdoors, and I can give my kids a lesson in local history. I’m also conveniently far away from places to spend money.

Guns. If you live in a rural area, another excellent investment. I recommend a 20 or 12 ga. shotgun, my favorite is a Remington 870. You can use this for hunting birds and rabbits, as well as recreational activities such as skeet and trap. Wild game is healthier than commercially raised meat, tastes better, and you get lots of good exercise acquiring it.

Girls. I know from personal experience that investing a little money and quality time in my relationship with my wifes pays dividends financially, spiritually, emotionally, and physically. Well worth it.

Green. Invest time walking or bicycling to get where you’re going instead of money on gas. The money you free up can be invested things that have a better ROI. Depending on where you live, you might even be able to install some personal wind generators and sell power back to the utility company.

There you go, 5 things to invest in during this “down” economy. Have fun, don’t take life too seriously, and remember that things are rarely as bad as they seem.

Cheers,

Ken