Discussion is encouraged!  However, only 1 comment per person will be counted towards GRABBBR, so please, no spam.  For more information about GRABBBR, including how to gain additional entry points, visit the official GRABBBR page.

OK. I lured you with the Giveaway, but what is this belated birthday stuff?  Confession:  Personal Finance by the Book was one year old on July 1!  Knowing it was sometime in July, I had been planning to mention it this month.  However, when I checked it a couple of days ago, I learned that it had come and gone.  Oh well, not to worry.  I had already scheduled my featured GRABBBR post on July 7, so this is an opportune time for me to celebrate my belated birthday by being part of a giveaway.

So What Are My Reflections on One Year of Blogging?

Getting started

I would never have taken the initiative to start my own blog.  Never.  But my friend Jeff Rose at Good Financial Cents took me under his wing and patiently mentored me and patiently encouraged me and patiently walked me through the maze of getting a blog started.  Did I mention that Jeff has lots of patience?  Thank you Jeff.

It is a lot of work.

Some people can probably just write something and post it.  Not me.  My first draft is always atrocious.  I need to let it season overnight, look at it with fresh eyes and dig in again.  By the time something is ready to post, I have worked it over several times.  This being said, I really do enjoy the writing process.  Good thing…I wouldn’t keep it up if I didn’t.

Running a blog is not easy.

I am far from a techie anyway, so the mechanics of operating a blog site are a total stretch for me.  I am a work in progress and often feel intimidated and overwhelmed with the technical aspect of blogging.

The blogging community is amazingly supportive.

First, understand that I am not an extrovert.  I don’t consider myself an introvert either, but, when surrounded by strangers, I am not the type of person who will introduce myself.  Therefore, getting to know fellow bloggers has been a challenge for me.  This being said, I have met numerous amazing people via blogging.  It seems that once the ice gets broken, I am able to loosen up and simply be myself.  After all, fellow bloggers have much in common.  I still am backward when it comes to asking for help, but I have been amazed at the willingness of the community to reach out and help each other.  The blogoshere is a great place.

Blogging is very satisfying.

I have heard it said that nothing worthwhile comes easy.  I believe it.  I already said that blogging is hard work, but that hard work is what makes it worthwhile and satisfying.   My goal has always been to help others navigate their their financial and spiritual journeys, so the feed back lets me know that others appreciate my efforts.  Just yesterday, I received this comment, “Thank God we have the real and indisputable EXPERT and his name is Jesus Christ. His book is the Bible. Thanks Joe for working to share these basic principles with your readers.”   A comment like that will keep me energized for weeks!

My high points

• The offer to be a staff writer for Christian PF has been the high point of this year.    The request was a real shot in the arm at a time (the six month mark) when my blog seemed to be stagnating.   I still have the email printout request on my desk, as a reminder that good things often come just at the right time.
• Another high point was coming in runner up in Free Money Finance’s March Money Madness contest with Debt Free in One Year: A True Story.
• Showing up on Page One of Wise Bread’s Top 100 Most Popular Personal Finance Blogs was exciting.  Thank you Yakezie community!
• Other high points come sporadically when one of my posts is chosen for Best of Money Carnival or Best of the Best in Money and Finance Carnival.

What is next?

I wish I could say that I have a clearly strategized plan for Personal Finance by the Book, but I don’t.  I like to plan in time segments; checking and evaluating at stops along the way.  Right now my number one goal is to get more viewers.  A bit of monetizing would be nice too.  Timewise, I will check with myself again in six more months.

Thanks

I want to thank every one of you for taking the time to read Personal Finance by the Book.  To know that what I write is worthy of your time is a huge honor.  Thank you.

Now: make some comments, sign up for my RSS feed and Newsletter feed and follow me on Twitter!  You might just win one of the GRABBBR prizes!
photo credit: Indy Charlie

The book “Aftershock” by Weidemer, Weidemer and Spitzer documents economic predictions by people who should have known better but didn’t. Here is a sampling:

• Prediction: “A very powerful and durable rally is in the works. But it may need another couple of days to lift off. Hold the fort and keep the faith!” Richard Band, editor Profitable Investing Newsletter, March 27, 2008.

What actually happened: At the time of Band’s comment, the Dow Jones industrial average was 12,300. By December, 2008 it was at 8,500.

• Prediction: “AIG could have huge gains in the second quarter.” Bijan Moazami, distinguished analyst, Friedman, Billings, Ramsey, May 9,2008.

What actually happened: AIG lost $5 billion in the second quarter of 2008 and $25 billion in the third quarter. It was taken over in September by the U.S. Government.

• Prediction: “I think this is a case where Freddie Mac and Fannie Mae are fundamentally sound. They’re not in danger of going under…I think they are in good shape going forward.” Barney Frank (D-Mass.), House Financial Services Committee Chairman, July 14, 2008.

What actually happened: Within two months of Rep. Frank’s comments, the government forced the mortgage giants into conservatorships and pledged to invest up to $100 billion to each.

• Prediction: “I think Bob Steel’s the one guy I trust to turn this bank around, which is why I’ve told you on weakness to buy Wachovia.” Jim Cramer, CNBC commentator, March 11, 2008.

What actually happened: Within two weeks of Cramer’s comments, Wachovia came within hours of failure as depositors fled. Steel eventually agreed to a takeover by Wells Fargo. Wachovia lost half their value from September 15 to December 29.

• Prediction: “I think you’ll see (oil prices) at $150 a barrel by the end of the year”. T. Boone Pickens, one of the wealthiest and most respected oilmen today, June 20, 2008.

What actually happened: Oil at the time of Pickens’ prediction was around $135 a barrel. By late December it was below $40.

• Prediction: “I expect there will be some failures…I don’t anticipate any serious problems of that sort among the large international active banks that make up a very substantial part of our banking system.” Ben Bernanke, Federal Reserve chairman, February 28, 2008.

What actually happened: In September, 2008, Washington Mutual because the largest financial institution in U.S. history to fail. Citigroup needed an even bigger rescue in November.

Why don’t they tell us the truth?

How do you feel when your read these failed predictions? Angry? Confused? Miffed? Cynical? I probably feel some of all. And while I don’t claim to know another person’s motives for their actions, I have some theories about why these “experts” didn’t tell us the truth.

They do not know the truth.

They may be “experts”, but (being charitable) I concede that many really had no clue to the imminent housing, banking and stock market collapses. But then should they be called experts?

Finally: someone who tells the truth

They have agendas which are contrary to the truth.

Again, I don’t claim to know another person’s motives, but T. Boone Pickens, an oil man, is not likely to make negative predictions about oil. Richard Band, editor of Profitable Investing Newsletter, knows that dire market predictions will normally curtail investing.

Predicting failures could make a leader seem inept.

Barney Frank, as House Financial Services Committee Chairman, may have realized that failures of Fanny Mae and Freddy Mac could be reflections on his leadership ability. Same with Federal Reserve Chairman Ben Bernanke in regard to impending bank failures.

They honestly believe that knowing the truth is not a good thing.

Have you ever had someone hide the truth from you because they didn’t think you could “handle it”? Have you ever heard, “what you don’t know can’t hurt you?” If you are like me, once you learn that a friend or relative withheld the truth because it was “for my own good”, I feel patronized…and angry. It may be that certain experts simply don’t think that us normal down to earth citizens have the fortitude and integrity to deal with reality, so they keep it from us.  Is “arrogant” a fitting word here?

The doctor/disease analogy

If your doctor knew you had a life threatening disease, which of these would you prefer:

• Not telling you because your disease would reflect poorly on his ability as a doctor?
• Not telling you because he didn’t think you could deal with the truth?
• Telling you the truth?

You want the truth of course. I realize that economic forecasting is not as an exacting science as practicing medicine, but, be it a doctor, a politician, or an economic pundit, I want to know the truth.

Whom do you trust?

I don’t want to become a cynic, but recent history has given me little reason to trust the so called economic experts. I have therefore vowed to do something far too few of us do: think for myself. I might not get it right either, but at least I know my own motives. And I am the expert in one financial arena: my own finances.

How about you? How do you filter economic predictions? Whom do you trust? Why?

photo credit: LowImagination

photo credit: Shot By Darko

Grandma Moses did not begin painting until she was in her 70s

However, I am inspired by the accomplishments of those who didn’t get their starts early in life. Jean Eugene Atget, now considered one of the world’s greatest photographers, did not begin until he was 40. Renowned American folk artist Grandma Moses did not take up her craft until she was in her 70s and, Terri Tapper, at age 50, became the oldest female certified kiteboard instructor in the USA (and possibly the world).

From the web site Museum of Conceptual Art, these are accomplishments from people of the following ages:

Age 10

• Swiss psychologist Jean Piaget published a scientific article, based on observations of an albino sparrow near his home.
• Future United States Senator Claude Pepper carved the words “Claude Pepper, United States Senator” on a tree.

Age 20

• Bill Gates dropped out of Harvard and co-founded Microsoft.
• English novelist Mary Shelley wrote Frankenstein, or The Modern Prometheus, which was immediately successful.
• Jane Austen wrote Pride and Prejudice, her second and most famous novel.
• English author Elizabeth Barrett Browning published her first volume of poetry.

Age 30

• Mark Twain published his first short story, “Jim Smiley and His Jumping Frog.”
• Physicist Armand H. L. Fizeau measured the speed of light.
• Donald Trump persuaded bankers to lend him $80 million so he could buy the Commodore Hotel.
• Bill Gates was the first person ever to become a billionaire by age 30.

John Glenn, at age 40, became the first American to orbit the earth

Age 40

• John Glenn became the first American to orbit the Earth.
• Harriet Beecher Stowe, a mother of six who occasionally wrote for magazines, published Uncle Tom’s Cabin, an antislavery novel of such force that it is generally recognized as one of the causes of the Civil War.
• Jean Eugene Atget, now considered one of the greatest photographers, took up photography.

Age 50

• Terri Tapper became the oldest female certified kiteboard instructor in the USA (and possibly the world).
• Samuel Adams directed the Boston Tea Party.
• Larry Silverman of Ballston Lake, NY, achieved his 3rd-degree black belt in karate.

Age 60

• Playwright and essayist George Bernard Shaw completed a play, “Heartbreak House,” regarded by some as his masterpiece.
• Italian sculptor, painter, playwright, draftsman and architect Gian Lorenzo Bernini began designing churches.

Age 70

• Judy Brenner, who had recently run the Boston Marathon, chased a teenage shoplifter 100 feet and helped hold him until police arrived.
• Benjamin Franklin helped draft the Declaration of Independence.
• French actress Sarah Bernhardt had a leg amputated but refused to abandon the stage.

Benjamin Franklin was 70 when he helped draft the Declaration of Independence

Age 80

• Jessica Tandy became the oldest Oscar recipient for her work in Driving Miss Daisy.
• George Burns became the second oldest Oscar recipient for his work in The Sunshine Boys.
• American writer and physician Oliver Wendell Holmes published “Over the Teacups,” which displayed his characteristic vitality and wit.
• Christine Brown of Laguna Hills, California flew to China and climbed the Great Wall.

Age 90

• Chagall became the first living artist to be exhibited at the Louvre museum.
• Pablo Picasso was still producing drawings and engravings.
• Chemist Paul Walden was still giving chemistry lectures.

Age 100+

• Alice Porlock of Great Britain published her first book, Portrait of My Victorian Youth, when she was 102 years old.

Your age

Here is your assignment: Try plugging in your own age at Museum of Conceptual Art to see what other people were doing at that same age.  Then post a comment on the most remarkable one.

Probably the most notable (interesting?) accomplishment of anyone my age (63) was accomplished by Countess Rosa Branicka, a wealthy Polish noble, who performed breast cancer surgery on herself and lived to be 82.

Am I inspired? Well, uhm, maybe I should try kiteboarding.

photo credit: jepsculpture

photo credit: gfpeck

I realize that the best way to stretch the life of your mower is to treat him right. But for those of us who are less than meticulous about equipment maintenance, naming him works pretty well. Read on for the story of Lazarus the Lawn Mower.

The Purchase

When Mr. McCarver, owner of McCarver’s Lawn Mowers and Small Engine Repair, placed the green mower in my new 1990 Silhouette van, he polished it with a shop towel and solemnly addressed me, “Now you need to understand that this mower is made for mowing lawns, not yards. You DO understand, don’t you?.”

“I’m sorry,” I stuttered. “But what is the difference between a yard and a lawn?”

Mr. McCarver gripped the mower tightly as if he might take it back. His voice quivered slightly as he patiently explained, “A lawn is a smooth turf, free of sticks and other debris. A yard is whatever one grows or mows. You ARE going to use this machine for a lawn, aren’t you?”

I knew that I had better agree if I was going to get him to loose his grip, so I murmured, “Sure. A lawn it will be.”

He eyed me suspiciously, but slowly released the mower and handed me the receipt. I jumped in my van and drove away before he changed his mind, but I knew that I was not the type to manicure my yard before mowing it. I silently prayed that Mr. McCarver would never come checking on me.

First Few Years

Still, I tried. The first few years I picked up the big sticks before mowing, and, per Mr. McCarver’s instructions, I even ran all the fuel out of it before storing it in the basement each winter.

But then one winter I sort of forgot. Well, not actually forgot. I just decided that my basement was crowded and maybe leaving it under the deck wouldn’t be a bad idea for just one winter. That next spring it started the first pull. “Maybe”, I mused, “that smarty McCarver doesn’t know everything.”

It was that same spring when I decided that it would be much easier to grind up the sticks with the mower than go to all the trouble of picking them up. I still glanced around to make sure McCarver wasn’t spying on me, but I finished mowing my yard (definitely not a lawn) and felt quite proud of myself.

Old Green Dies

Thus began a new era in the life of my mower: I started calling him “Old Green” and I left him outside every winter and mowed sticks whenever I wanted. Still, he kept running, year after year. Because the volume of his roar increased gradually, I didn’t really notice or care. Josh, my oldest son, noted one advantage of having Old Green on the job was how he blocked the sound of the passing trains.

Then, one year, Old Green started showing his age. His deck had developed rust spots and the blade was permanently rusted onto the shaft. Feeling a tad of compassion, I started putting a washtub over him when he was not working.

It was that same year that Josh (the son who had made snide remarks about Old Green) called. “Dad, my lawn mower is dead. Can I borrow yours?”

Although I thought he owed Old Green an apology, I consented. “Sure, come get him. Just treat him right.” I realized that I sounded strangely like McCarver, who had long ago closed his shop and moved to the country.

An hour later, Josh was on the phone again, “Dad, I hate to tell you this, but Old Green just quit. He made a loud noise and then stopped dead. I can’t even pull the rope.”

“Sounds like he is done for.” I said. “Roll him out to the curb. If no one grabs him, the trash man will.” I hung up the phone with a lump in my throat. Old Green was finally dead. I went shopping for a new lawnmower, but somehow none of those shiny new ones seemed right, so I returned home empty handed.

Resurrection

Two weeks later Josh called again. “Dad, you won’t believe this. Old Green sat there all this time and no one picked him up. So, just out of curiosity, I pulled the rope and he started right up!”

“Well then, bring him back home.” I began to grin. That was the day we started calling him Lazarus.

Lazarus made his homecoming in fine fashion. He started right up, roared loudly and finished my entire lawn without stopping. This is a good time to mention Lazarus motto: “Once I start, don’t stop me or I won’t start again.” Those were his terms and I respected them.

When Lazarus started getting snagged on some of my smaller lawn bumps, (sorry..YARD bumps) I thought something was seriously wrong with him, but a closer examination revealed that I had hit so many roots that his nose was bent downward. No problem. I turned him upside down and hammered his nose back upward. It was a heady thing for me to be doing bodywork on a lawn mower and Lazarus, with his new nose job, felt so spunky he roared smoothly over the yard like he was new. However, I started noticing that the grass and the ground up sticks were shooting up and hitting me. Those rust spots on the deck had become cancerous. Out came the duct tape. I applied several long strips which didn’t stick all that well to the grimy deck, but succeeded in deflecting the debris stream from shooting directly at me.

Sometime before the season ended, Lazarus decided that his safety bar (the thing that is supposed to kill the engine when you let go of it) didn’t really need to work. This apparent malfunction was no surprise to those of us who already knew his motto.

Lazarus’ last season

The following spring, I rolled him out from under the deck, inspected the frayed duct tape and pulled the rope. Twice. With last year’s gasoline in him. And Lazarus responded with his familiar roar. “I am ready for another season,” he screamed as the neighborhood dogs wailed their disapproval.

Lazarus did fine that first mowing, but on his second time out, he let loose a high pitched screech before stopping altogether.  Smoke rolled from him and the pull rope would not budge. I trudged back in the house and gave Janice the bad news, “I think Lazarus’ motor has locked up. I guess he is really gone this time.” There he sat for the rest of the day, right where he died. Occasionally I would go try the rope, but it wouldn’t budge. Finally, at dusk, I concluded that he was really dead, so I went to push him out of the front yard. On a whim, I pulled the rope one more time and Lazarus bellowed to life, scattering the birds from all nearby trees. I was so happy that I mowed the rest of the yard in the dark.

I used him about a dozen more times, but eventually his deck cancer spread, the duct tape wouldn’t hold and I needed safety goggles (a hockey mask would have been better) to protect me from the constant barrage of sticks and debris. Lazarus was getting dangerous. It was a question by Jonathan, my youngest son, that actually cinched his retirement, “Dad, what are you going to do when Lazarus’ engine falls through the deck while you are mowing? His shut-off doesn’t work you know.” For just a moment my mind formed the image of a screaming engine, blade attached, breaking free from the rest of the mower and chasing me around the yard like the Tasmanian Devil.

Putting Lazarus to rest

I am sure there was resignation in my voice as I took a deep breath and responded, “Jonathan, you make a good point. It is time to put Lazarus to rest.”

I parked Lazarus in the basement, telling myself that I would use him for parts. But because all of his parts are rusted together or rusted through, I knew I was just kidding myself. Still, who knows? I bet if I asked him, he would bellow, roar and spew sticks. What else would you expect from a mower named Lazarus?

Epilogue

I eventually gave Lazarus to a handy man who promised to recycle whatever usable parts he still had.  My current mower is a used green one (very similar to Lazarus)  that I paid $50 for. Does this one have a name? Not yet, but once he earns one I will gladly tab him with it.

I have a hunch that giving him a name will extend his life an extra five years.

Have you ever given your lawnmower a name?  How about a car?  Do you think it lasted longer after being named?

This post has been included in the following carnivals:

Best of the Best in Money and Personal Finance Carnival hosted by Len Penzo dot com Whoo Hoo!!

Carnival of Money Stories hosted by Earn Give Save

Festival of Frugality hosted by Money Obedience

Money Hacks Carnival hosted by Learn Save Invest

Baby Boomers Blog Carnival hosted by Baby Boomers US

Carnival of Financial Planning hosted by Green Panda Tree House

I know that you have been doing this personal finance blog thingy for a while now, so I figured some tips from your uncle would be appreciated. I don’t want to come across as sanctimonious but you really need to understand that you are off track on much of what you purport.

For example, you talk about saving your money before making a purchase, as if there is virtue in delayed gratification. Where, dear nephew, did you get such a screwballed idea? Who knows what tomorrow will bring? Not me, that’s for sure. Why should you deprive yourself of the finer things of life? By waiting, you may never have that new car or dream home, so get it today. Have you heard that phrase “Live like there is no tomorrow?” Well, ahem, excuse my bragging, but I said it first. Remember: you only go around once in life, so grab what you can.

Which reminds me of my next concern: Joe, you may be kinfolk, but I am deeply disappointed to hear you telling your readers to avoid debt like a plague. Rubbish! If you are going to live the good life today, debt needs to be a financial tool you use at every opportunity. I realize, for those of your ilk who disdain debt, this may take some getting used to. But trust me my boy: with time you can develop any good habit to the point that it becomes second nature. Why, I remember when owing more than my annual income bothered me, but I am proud to say that I have successfully inoculated my conscience to such silliness. Today (and here I go boasting again) my total debt is several times my annual income, and I increase it every year. By the way, I don’t subscribe to your discussion of “good” debt and “bad” debt. I have never found a debt I didn’t like…it is all “good”.

While we are speaking of debt, it hurts me deeply to hear you spreading nonsense advice such as “You can’t borrow your way out of debt”. Joe! Where did you ever get such a notion? I have been borrowing my way out of debt for years and it is working just fine for me. After all, it is the American way.

And this drivel you write about not “keeping up with the Jones’”! Another of your urban legends my boy! Even if things get a bit tight, keep smiling and wearing expensive suits and driving those new cars. What your neighbors think about you is always more important than your bottom line. Remember: image is everything.

Joe, I know you believe in individual responsibility, but you just don’t live in the real world. The challenge is to find someone to blame: someone who is not powerful enough to retaliate and someone who is already an adversary. I have found the perfect scapegoat is anyone who has come before me. I strongly recommend that you try this tactic, Joe. It will move the heat from you to someone who can’t defend himself. And, best of all, you will never have to be accountable. Sometimes my genius astounds even me!

Whatever else you do Joe, always ignore history. Some do-gooders will tell you that you are on the same path as others who ended in ruin. Balderdash! When you hear such nonsense, I want you to put your fingers in your ears and your hands over your eyes. Remember: just because it happens to others doesn’t mean it will ever happen to you. Joe, you are my nephew and you are too big to fail.

Now Joe, about raising children. Far be it from me to meddle in your family affairs, but I must speak up. You seem to think that denying them what they want is a good thing. And making them work? Joe…Joe. Don’t you realize they will turn on you? Your goal is two fold: keep them liking you and keep them dependent on you. How will you control them if they ever make it on their own? You need to get off your high horse and give them whatever they want!

I hope these tips have helped you, Joe. I would share others but I need to go answer the phone. It is probably that pesky collector again.

Love,
Uncle Sam

This post was included in the Carnival of Personal Finance hosted by Four Pillars

“If you follow instructions, you will have little problems with your house. If you take shortcuts, you will be taking it apart and doing it over. Now. Are you ready to listen?” George Waterman was never one to sacrifice clarity for tact, and, as we slurped water in the 100° heat, we decided that we had better listen up.

I admit that my first encounter with George that summer of 1996 wasn’t all that positive. As an adult sponsor of a high school youth mission trip in Reynosa, Mexico, I was thinking, “He sure is bossy.” But he needed to be. As missionaries for World Servants, an international organization dedicated to overseeing short term mission trips, George and his wife Jan were responsible for not only the construction of a dozen 12’ x 16’ houses that week, but also the well being of dozens of high school kids. In retrospect, they needed to be tough.

Mexico 2009 Our VBS Group

Only two years prior, George and Jan (both around 45 years old at the time) had left their lives in Michigan to respond to God’s call to mission work. George had been a very successful sales rep; they had two children, a beautiful home and the world at their fingertips. But God called; they answered and found themselves in the swelter of Mexico.

In 1997, George and Jan’s world was further disrupted as when local businessman Aaron Berman dedicated a large plat of land just outside Reynosa to be used as a camp for children and a retreat for the training and encouragement of the local pastors. Aaron, a very Godly man, showed George and Jan the barren acreage, shared his vision, and then looked George in the eye, “You are going to build it.” Aaron was not a man to be refused, so the Watermans apprehensively accepted the challenge. “George”, quipped Jan, “does not know how to build a dog house, much less a camp.”

Mexico 2009. My son Jonathan with his buddy Juan Pablo

They named their mission Vamonos (“let’s go” in Spanish from the Great Commission found in Mat 28:18-20), created a preliminary site plan and went on tour from Mexico to Michigan and back through the East Coast, sharing the vision and asking for partners. The response was less than encouraging: about $3,000 in donations and gifts for the first phase building that would cost over $100,000. Not knowing what else to do, they felt that God wanted them to use what money He had provided, so they spent the $3,000 building a road from the main highway to the location of that first building. Upon completion of that road, they received a check in the mail for $10,000….enough to pour a foundation and start the structural steel work. As the $10,000 was getting spent down, more donations came…all totally unsolicited. And so it went, month after month, year after year. Of course the camp was being used at every phase of construction, but after the main dining area was built, dorms were built, a chapel was built, a modern water purification plant was built. Today this camp (see photos) is truly a tribute to God and is used regularly to honor Him.

From left: Chapel, Dining Hall, Utility Building and several Dorms

Our church in Southern Illinois has continued to partner with George and Jan over the years. I have been on about ten trips; all four of my kids have been on trips and my youngest son has been back several times. Although we help out at the camp, George would always plan projects with the local churches, sometimes making simple repairs but always having Vacation Bible School. VBS is a blast in Mexico because we can simply walk along the roads, announce “Escuela Biblica” and the kids come running from every direction.

Worship Service in the Dining Hall

Short term mission trips have been a wonderful part of my life. The memories of going with my kids when they were in high school, seeing their love of the local people, and watching them process how people can be very happy with very little “stuff” has been cemented into my mind forever. The relationships that I have developed with my fellow believers are cherished and the excitement that builds as we plan yet another trip (nearly every year) is a huge part of my life.

Don't leave home without this book!

I want to encourage you to consider taking short term mission trips. Read Craig Ford’s posts Short Term Mission Trips: Worth the Cost? and 11 Missionary Care Package Ideas to give you all the great info to be thinking about. And make sure you purchase Craig’s “Handbook for Short Term Mission Trips“. Craig KNOWS missions and knows how to write about missions. He leaves nothing out of this handbook; it should be required reading for each high school or college student even considering taking a mission trip and an absolute essential for the adult leaders.  The book is being offered at a 25% discount until midnight March 12.

And hey. All sales profits from my blog site will go to support “Vamanos”, the mission ministry of George and Jan Waterman. Click here to learn more.

photo credit: mateoutah

As I look back on my 39+ years of marriage, I can say that I look forward to another 39+ years of marriage.

I can also say that working together on our finances has been a huge factor for the success of our marriage. We certainly have made our share of mistakes, but we have learned (usually by our mistakes) not only better ways to manage our finances, but better ways of talking and discussing the goals and values that money represents.

With apologies to Antoine de Saint-Exupery, John Lennon and Erich Segal, I would like to share some great love quotes and how they just might apply to marital finances:

“Love does not consist in gazing at each other, but in looking outward together in the same direction.” Antoine de Saint-Exupery

Making a budget together is love. Budgeting is much, much, more than crunching numbers. Sure, the numbers themselves must balance, but what the numbers represent is vital.   Husbands and wives: listen up. The time you spend together discussing your budget is critical for the well being of your marriage. Why? Because how you spend your money is a snapshot of your core values. Granted, this discussion may become testy. The two of you come from different backgrounds and bring different values into your marriage, but this is the opportunity for both of you to become real, to disagree openly, to work toward joint goals and eventually arrive at values that are congruent. The bible says that “the two shall become one” and Antoine de Saint-Exupery defines love as “looking outward together in the same direction”.

“We’ve got this gift of love, but love is like a precious plant. You can’t just accept it and leave it in the cupboard or just think it’s going to get on by itself. You’ve got to keep watering it. You’ve got to really look after it and nurture it.” John Lennon

Making your budget work is love. If all you did was agree on a budget and then stick it in a drawer,  you have just gone through an exercise in futility. True love comes through the nitty gritty of living it out. This requires ongoing communication, re-evaluation and accountability. Keeping a budget means keeping the budget promises you made to each other. Making it work is hard work. But that hard work is the sacrifice that demonstrates your love for each other. Like John Lennon said, “You’ve got to really look after it and nurture it.”

“True love comes quietly, without banners or flashing lights. If you hear bells, get your ears checked.” Erich Segal

Consistency over a long time is love. This one sneaks up on you. As years pass and the two of you realize incrementally that your plans are working, you develop a deep appreciation for each other. It has taken time, but you have become one. Those diverse values that you brought into your marriage have melded into common values. You have both learned that what is good for your spouse is also good for you, and you discover that you instinctively put the other first. With time, you experience a depth in your relationship that you never thought possible. Like Erich Segal said, “True love comes quietly, without banners or flashing lights.”

“I want to grow old with you.” Adam Sandler in “The Wedding Singer” and me right now to my wife.

This one is for you, Jan.

This post was selected for The Carnival of Personal Finance hosted by Get Rich Slowly

photo credit: griffithchris

Before I go any further, I will state unequivocally,  “It depends.”

Not everyone needs to hire a broker. But what should you consider before making your decision? Just like buying anything else, you should balance the cost against the benefit to determine which way the scales tip. Hopefully, this article will explain these costs and benefits with enough clarity to help you make your decision.

Assumptions

If you decide to hire a broker, I am assuming that you are going to hire the very best in your area, which means that I am also assuming that you are going to conduct interviews of several firms before selecting one. After all, you are hiring them for a job, so ask pointed questions, such as how many homes they sold last year, how they advertise, and exactly why you should pay for their services.

What can you expect from this high energy broker?

• He knows the current market, so he will establish an objective market price for your home by showing you several comparable sales. He will also give you “days on market” statistics to let you know realistically how long the sale will take.
• He has an inventory of potential buyers. He knows who has been looking, what they have been looking for, and if your house is a good fit for them.
• He understands financing and how to qualify potential buyers. He can tactfully learn which prospective buyers can actually afford the purchase and which ones can’t.
• He understands the complexity of real estate transactions. As a licensed professional, his job is to look out for any potential problems that could bushwhack the sale.
• He is motivated. He knows that he will not make a penny unless he sells your house.
• He will pay for all advertising.
• He will give you tips on how you can make your home more marketable.  Be it curb appeal, cleaning clutter or staging, he see things you may overlook.
• He is an expert at negotiating, and as a third party negotiator, will save you the stress of face to face negotiating with savvy buyers.
• He will show the house, allowing the potential buyers to ask candid questions that they may not ask if dealing directly with you.
• He will present all offers to you, in writing, and explain the nuances of these offers.
• He will expect you to sign a contract, which will include the time frame you have hired him for and the commission rate (commonly around 6% of the sale price of the house).

What can you expect if you decide to sell the house yourself?

• You will need to do your own research of comparable sales in comparable neighborhoods in order to establish the market price. This step is critical. You need to know clearly why you are asking what you are asking so you won’t waffle in the middle of a negotiation. If you start out asking too much, the house will sit on the market too long and then, when you lower the price to what it should be, buyers will be skittish because they think there must be something wrong with the house. If you ask too little, you might sell it right away, but will probably be wondering if you left money on the table.
• You can expect potential buyers to be clever negotiators. Because you aren’t using a broker, some will expect you to share that “savings” with them.
• You will need to understand financing in your area so you can differentiate between prospective buyers and lookers.
• You will need to hire a Real Estate Attorney to draw up the sales contract and also check other paperwork to prevent snags in the transaction. Depending on where you live, this might cost between $300 and $800.
• You will need to do everything else the realtor would have done, including paying for advertising and showing the house.

Other considerations

• If you have a mortgage on your unsold house and also on your new house, you will need to sell quickly to minimize the number of double payments you will make. You will therefore probably want to hire a high power realtor.
• On the other hand, if you are in no hurry to sell, you may want to try it on your own.
• Don’t automatically assume that the commission fee is money from your pocket. A report by the National Association of Realtors shows that the average home in America using a realtor sold for $230,000 while the average home without a realtor sold for $198,000.
• If hiring a broker, you should request a three month contract instead of the more common six month contract. Why? If you discover you hired a slacker, you don’t want to be stuck with him for six months.
• You should also check into NOT giving the broker “Exclusive Right to Sell”. Doing so takes away from your right so sell, meaning your broker still gets his commission even if you find the buyer.

So…should you hire a broker?

If you are experienced in selling houses, are adept at negotiations, clearly know the market value of your house and are prepared to take it on yourself, then you should.

However, if you are like most people, you should consider hiring a professional broker.

Like I said, it depends.

What has your experience been in selling your house? Would you recommend hiring a realtor? Why or why not?

This post was included in the following carnivals:

Consumer Boomer hosted by Consumer Boomer

Baby Boomers Carnival hosted by Baby Boomers US

Carnival of Money Stories 2 hosted by My Journey to Millions

Economy and Your Finances Carnival hosted by One Mint

photo credit: mariachisamurai

Evidently, being a bank teller did not convey the image he wanted to share with his classmates. But this incident causes one to ponder how we judge success. Has our concept of success become so skewed that we are embarrassed to be faithful spouses, diligent parents, and solid citizens? Does success need to be something spectacular or could a hard working mechanic, truck driver or construction worker be considered successful? How about the single mom who is balancing her life in eight directions while trying to do the best for her children? Or the stay at home mom who has decided that investing her life into her children is more important than investing in her career?

Before your read any further, stop and answer this question: how do you measure success?

How did you do? Isn’t easy is it? Somehow success needs to incorporate our values: what they are and how well our lives reflect them. Success needs to be dynamic: an ongoing process of achieving dreams while dreaming new dreams. While a successful life should have some stopping points, reaching success should never mean stopping.

One never magically arrives at success, for reaching a peak in life will only give you a view of another mountain worth climbing. Success, therefore, is found in the process.

So I ask again, “how do you measure success?” Here is a borrowed definition I like,

“Success is the progressive realization of worthwhile goals.”

If you are already in the process of realizing worthwhile goals, you are already successful. I congratulate you and wish you a truly successful 2010.

This post has been featured in the following carnivals:

• Baby Boomers US

• Money Hacks Carnival hosted by 20s Money

• Carnival of Money Stories hosted by Consumer Boomer