A Penny Saved

Auction Tip

JD — Mon, 15 Mar 2010 12:28:47 +0000

In my neck of the woods we are entering auction season. Everything from antiques, to horses, to houses, to junk is sold this way. Sometimes it is an all day event, even with food vendors set up at the location.

If you happen to be going to an auction in the near future you might want to remember this “tip” I picked up from a friend’s story the other day regarding one of his auction experiences.

He and his wife packed up a number of items to sell at an auction. While at the auction they decided they might bid on some things, and they went their separate directions to find “bargains”. He found a table he thought would be useful and proceeded to bid on it – and he won the bid! He was so excited and ran off to find his wife to show her. After finding her and showing her his prize, she was not so excited – he had just bought the table that they had brought to the auction to sell! The “prize” now sits on their porch.

When going to an auction it pays to remember what you brought to sell! It also pays to be on the same page with your spouse regarding things to keep and things to get rid off. Fortunately my friend and his wife still laugh about that event, but now they are a little more careful at auctions!

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Sunday Thought 78

JD — Sun, 14 Mar 2010 12:44:56 +0000

Do you try to do everything yourself? Maybe it’s time to realize that we all may need some help.

In Exodus chapter 18, Moses is doing everything, and I mean everything. From morning until night he is working with the people. He can never rest, and the people are becoming disgruntled because they are not getting the answers they need because they have to wait on this one man (who is overwhelmed with responsibility).

Along comes Jethro, Moses’ father-in-law. He sees what is going on and his jaw drops to the floor in shock and disbelief. He goes to Moses and tells him that he cannot do it alone – get help! To Moses’ credit, he realizes his mistake, accepts the wisdom of his father-in-law, and gets the help he needs.

We too, all need help. Let’s not try to go it alone as Moses was doing. We may not only be hurting ourselves if we do, but also others. But like Moses, let’s realize our mistake, and get the help we need so we can live our lives to the fullest.

Poverty Simulation Seminar

JD — Thu, 11 Mar 2010 13:10:17 +0000

I was invited and on Tuesday I attended a Community Action Partnership (CAP) Poverty Simulation Seminar (now that’s a title!). What an amazing experience.

CAP brought together individuals and organizations from our community who in some way work with or come in contact with those living in poverty. As a pastor I received an invitation (our church does financial counseling, food vouchers, and in some cases meets benevolence needs). There were about 100 people there, plus volunteers who helped run the poverty simulation.

Upon arriving, each individual was given a lanyard with a plastic card that had your “name” on it. For the next hour you were to become that individual. I was a young man of 25 (not bad!), who was employed at minimum wage, but was homeless (not good!) with a girlfriend (played by another individual at the seminar) and baby (age 1). We were to work together to lift ourselves out of our situation.

The hour (actual time) was to represent one month in the life of the individual. Every fifteen minutes would be a new week. After 15 minutes the whistle would blow and you had to get back home (or in our case to the shelter) and then begin your new week.

The event was held in a large gym, and ringing the outside of the gym were various businesses, government services, nonprofit organizations, etc. There was a pawn shop, cash checking service, grocery store, even a jail which had numerous occupants through the event. The volunteers were very good at their roles – some would be helpful, others would give you the wrong forms, close early or be on break, etc. Also throughout the seminar you could randomly receive a “luck of the draw” card which could give you extra cash (like win the lottery) or give you a set back (flat tire, dentist bill, etc.).

The hour was very intense. Between “working” and standing in government lines we couldn’t get anything done. In fact the simulation was so intense that the individual who was “my girlfriend” had to stop and leave the room – her blood pressure was so high that it set off her diabetes!

After the hour was up we had a chance to debrief our experience. The theme around the room was one of feeling desperation and hopelessness. It was a very good simulation of what millions of Americans go through everyday just to survive. It gave me a better understanding of what can work or will not work when you are trying to help others.

If you ever get a chance to do this type of simulation in your area definietly take advantage of the opportunity. It will definitely make you think and possibly change your attitutde or misconceptions about being poor.

Swap Party

JD — Wed, 10 Mar 2010 12:40:43 +0000

I was reading Better Homes & Gardens because I was in a doctor’s waiting room (waiting for my wife – sinus infection). Anyway, I came across an article talking about hosting a “swap party”.

The basic idea is that you invite 5-8 friends to your house, and each person brings up to 10 items that they want to give away (the number of items should be predetermined). After arriving, tags are placed on each item, and then each individual is given tickets to “purchase” items. Ideally, each person could leave with up to the same number of items as they brought (but they don’t have to take that many). You will have to work out if more than one person wants the same item (bid with your tickets, etc.).Any items left unclaimed are then packed up together and given to a charitable organization like Goodwill.

This can be a win-win for everyone – you get rid of things that you no longer need and declutter your house. You may bring home some items that you want, and charity gets the rest. And everyone can have fun!

Target Sales Training

JD — Tue, 09 Mar 2010 12:47:29 +0000

My family and I were in Target buying a birthday gift when all of a sudden there were like a dozen employees standing around with a trainer explaining to them how to “help” customers. Being naturally curious I listened in for awhile. What these new employees were really being trained to do was not help customers but to sell them more products.

If you ask a Target employee for help about diapers, they are supposed to also mention or ask if you need wipes. If you need help in electronics about a DVD player, the employee will ask you if you have cables. It was one big sales training event.

It was a reminder to me that salespeople are really there to help the company, not necessarily there to help you – unless, like I said, it helps the company. So the next time you are shopping at Target, or anywhere for that matter, remember that a sales person’s “help” comes at a price. Don’t let them sell you what you don’t need. Know what you want / what you need and stick to it.

Sunday Thought 77

JD — Sun, 07 Mar 2010 13:02:40 +0000

Do we own our possessions or do they own us? In my life, much to my shame, I think it is a little of both.

There is a story in Matthew chapter 19 where a wealthy young man comes to Jesus and asks what good thing he should do that he could obtain eternal life. Jesus asks this man if he keeps the commandments, and the young rich man says yes. The young man than presses the issue and tells Jesus that all these things I have kept (commandments), then he asks Jesus, what am I lacking? Jesus tells him to sell all his possessions, give to the poor, and come, follow him. This wealthy young man than turns away grieving.

The young rich man thought that he owned much, but in reality the things he had owned him. They kept him from something more important that he desired.

Do the things that we own keep us from doing something more important that we desire? Let’s try to keep our wealth, our possessions in proper perspective, and not let them control us.

A “New” Financing Component used by Bankers

JD — Fri, 05 Mar 2010 13:17:30 +0000

I recently read an article by a banking group called Mission Management and Consultants, LLC , who are mortgage bankers and project finance specialists. They work with nonprofits and schools in their financing needs.

According to their article, historically there were four components that bankers and underwriters would look at in determining a borrower’s fitness for a loan:

Income of the borrower (ability to pay the new loan)
Equity in the project (how much are they putting down, what % of the project is being financed)
Stability of the Leadership of the organization (how long has leadership been in place, what is the turnover rate for leadership, etc.)
Stability of congregation (if a religious organization) or enrollment (if school)

After all that has happened in the economy, the article talked about bankers using a fifth component – Liquidity when looking at credit approval. Liquidity is a measure of cash on hand. Based on their requirements, they like to see at least 4-6 months of operating reserves in place.

Although individuals are not companies or nonprofits, these 5 components are not bad measures for us to use – especially if we are thinking about taking out loans for cars, projects, etc.

Is our income adequate to service our current debt without that debt being a burden?
Are we putting enough down on the project? I would never recommend putting 0% down. I think the old rule of at least 20% down is still a good guideline. If you can’t do that, you may want to rethink going ahead.
How stable is your family situation? Is divorce on the horizon? Are there major changes coming – a new baby, sickness or death of a loved one? These life events need to be factored in.
How stable is your work environment? Is your industry prone to layoffs? Your company stable?
Do you have an adequate emergency fund (liquidity)?

Although these are not all the factors, it is a good place to start to evaluate your current financial situation. With these 5 factors in mind, how are you financially?

Auto Insurance and Accident Update

JD — Thu, 04 Mar 2010 13:09:19 +0000

Well, we finally got our Ford Explorer back from the repair shop (Thanks Guys!). Everything looks great, even better than it was in some places! And everyone is doing fine – my wife had a little whiplash but she is okay now. Our overall experience with the insurance companies was good. Our insurance company, Erie, paid the medical part and they came through. The other party’s insurance company, Progressive, paid for the accident repair (since it was their fault). I was quite impressed with Progressive – they were good to work with and paid everything they were supposed to. We had no hassles.

Since the accident I have been thinking about insurance, so this weekend if I can find some time I want to review our policy and see if I need to make any changes. It’s a good thing to do on an annual basis, but I must admit it’s been a couple of years since I’ve done it. Not the best to wait until after an accident (much better before!), but fortunately everything was covered. I especially want to look at our collusion coverage and our deductibles to see if they are good for our situation.

If you haven’t checked your insurance in a while, it might be a good time (before an accident!) to review your policy, either to look for savings or more complete coverage, whichever you need.

The Great Toy Clean-out is Finished!

JD — Wed, 03 Mar 2010 13:18:56 +0000

The girls rooms are clean! They sparkle! You can find things! It only took two days (this includes going through clothes to see what they have outgrown). There must have been 7 grocery bags of stuff we took out of their rooms – clothes to give away, papers and broken toys to be thown out. Ugh – it is amazing how much they collect in six months.

It’s not like we buy tons of stuff for them. We spend $50 per child at birthday’s, and a little over $100 at Christmas on each girl. Then throughout the year we may buy a couple of things. However there are Grandparents! But still, how do they get so much stuff into their rooms? Things must multiply under the beds!

Some of the toys and clothing we will give to friends, and we may have a bag or two that will go to a Goodwill Store (tax deduction!).

The good news is that now they should be able to find things – like socks which they said they did not have enough of but now their drawers are overflowing since we found the missing pairs.

Now we are good for another 6 months. I wonder what amazing things we will find next time?

The Snow Saved me Money!

JD — Tue, 02 Mar 2010 13:07:30 +0000

One snow cost me money, the last snow saved me money.

We live in a really windy area. The last snow storm, although only a few inches, came with high winds that caused drifting. I had left one vehicle in the garage – the garage door was drifted shut. I left the other vehicle at the top of the hill predicting that my garage doors would drift shut – unfortunately the way the wind came it drifted that vehicle in also. We were stuck.

We had been planning on going to a restaurant that was having a special. They have a smorgasbord and they were only charging $5 per person because of a “grand reopening.” So my family and I were going to take advantage of that special (more than 1/2 off per person) and we had invited my parents to come along. It would have cost us $35 (7 people), plus tip and taxes – probably about $50. Not bad for 7 people. However we had already spent our restaurant budget for the month of February.

Well, being snowed in canceled our plans. We were bummed. But the more I thought about it, the more I realized that it was probably a good thing. We had gotten caught up in the promotion, and even though I didn’t have the money we were going to find a way. It’s not that $50 would have been the end of the world, but we are really trying not to overspend right now, and are trying to save our pennies as much as we can.

This was a good reminder to me how hard it is to save and resist temptation. That special was tempting. Yes it would have been fun, but it would have set us back. And right now we really can’t afford setbacks. And again, although it was only $50, sometimes temptation is bigger – that furniture store deal, or the car deal, or the vacation deal.

I’m glad we didn’t get to go – in fact my wife and I are both actually really happy that it didn’t work out. I guess a snow storm can be a blessing and a teacher!