frugal2free

For the love of the work

 

 

 

 

 

 

At a large conference a few years ago I was enthralled to listen to John Stockton. 

I was impressed with this  intense competitor because of his humility.

A year later as he was inducted into the Basketball Hall of Fame I was

further intrigued as he gave all the credit to

team mates, coaches and most  importantly to family.

He kept saying he was lucky and he hadn't done anything great.

But as I dug deeper into his greatness I learned Stockton was "lucky" because he worked.


 The number of games John Stockton missed in his first 13 years in the NBA is 4.  He showed up to work 99.6% of the time!

His legendary team mate seemed to have the same work ethic.

Karl Malone missed 5 games in 13 years. The Mailman showed up to work 99.53% of the time.

Their nemesis had a pretty strong work ethic too.

The total number (excluding knee injury) of games Michael Jordan missed before he retired the first time is 7.  MJ showed up to work 98.9% of the time. (see also MJ's use of strengths & weaknesses)

In the last few years some players have slipped a little in their work ethic.

65. The number of games missed by Carmelo Anthony in 8 years. 90% attendance.

130. The number of games missed by Carlos Boozer in 9 years. 82.4% attendance.

Carmelo's and Carlos' work ethic stands in strong contrast to their predecessors.

If you love work you are a long way to becoming successful.

Love work (the verb and maybe even the noun) and then show up to do the work and the money will follow.

Of course what you do with the money is up to you.

What is your ideal size?

 

 

 

 

 

 

 

 

 

 

 

 

 

Frugal is a word that seems to connote sacrifice and meager portions.

It's original meaning  is to enjoy life. (Latin frui)

To have and enjoy whatever you want to the fullest.

It means discovering the right size, number or quantity for all of your purchases.

Enjoy the nice things you've been given without trying to find more happiness

beyond sufficient.

(Of course each persons sufficient varies). 

Every purchase doesn't need to be (biggie sized)

or increased in number in order to find true joy.

Sometimes one small steak tastes better than a giant sandwich.

Often one trip to the park is more enjoyable than an annual pass to an amusement park.

So ask yourself on every purchase,

What is the ideal time and expenditure to obtain the most joy possible?

 

(Photo courtesy Just2Shutter)

Dreaming & Doing

 

 

 

 

 

 

 

 

 

As I chatted with a few ladies at the bank, one asked what
my plans were after work. I mentioned  I was taking my family
to Disney on Ice.

One lady commented she would have to save up for a few
months to go with her daughter.

Another lady said she would love to go,
but it's too expensive to take her grandchildren.

I don't believe such rhetoric. 
My family has gone to Disney on Ice for the last 2 years, total expenditure for 11 tickets:  $36.50.

Here is the break down:

2011:

5 tickets 20th row cost , $18.  

4 tickets won in a contest and we bought the 5th.

2012:

6 tickets for the 12th row: $18.50.

We donated books to get 5 tickets free and bought the 6th.

Factoring in some beverages and ice cream we spent $65
for 11 tickets and condiments at Disney on Ice over 2 years ( less than 3$ per month)

Just like the two ladies at the bank, many considered it a big dream to attend such a fun,
memorable event.  They are right, it is. But it is also completely attainable. 

 

Some people might say," Well you won 4 tickets, I can't do that"  or "Most people can't donate books to get free tickets.  While you may not win tickets (we were lucky) you can search out ways to save money on big events like these.  My wife follows a blog that alerted her to the book drive, which led to getting 5 free tickets.  Without that knowledge, it would have changed our ability to go to Disney On Ice.  Because she actively sought out information on how to get her goal, she found the discounted, or free way to go.  There are plenty of attractions, events, business that offer deep discounts on specific days, or ways to get in free all together.  For example, Utah Hogle Zoo, has a free zoo day, October-March on the last Wednesday of each month.  The average savings, $9 per person.  The Museum of Natural History, in Salt Lake City, UT  is free the first Monday of every month, savings $5 per person.

When you know what you want, and you want to find a way to get it for less or even free, your mind will find a way.  If you don't look for what you want, you'll never find it. 

Here are the basic steps to getting your goal.

1. Know your goals/ dreams.

       2. Discuss them with family, friends, your face book community, get ideas on what to do.If necessary,cut other things out of your budget that prevents you from getting your goal.

      3. Find ways to reduce the cost of your dream.

      4. Pursue it.

Your goal is easier to achieve than you thought.

 

 

 

(Photo courtesy Kenneth Cratty)

Hypnotic hoax

 

 

 

 

 

 

 

 

I was a Junior in High School when a trained hypnotist visited our  Psychology class.

He claimed he could make a cheerleader kiss a not-so-cute guy.

She almost did.

It was fun to watch him hypnotize people.

Some people fell completely under the "spell" while others weren't effected at all.

Later in the class he caused people to feel like they were in a hot desert.

He told us about the hot sand, the blistering sun, and the lack of water. 

The heat wouldn't relent.

Students began to sweat and wipe their brow.

Finally the hypnotist had to stop because some of the

students were beginning to get too hot in a classroom that was only about 68^o!

 

Belief is what separated those who did whatever he said

and those who maintained their senses.

Are we currently hypnotized by monthly payments?

Do we think payments are essential to existence? Has it become a family tradition?

Does it just seem normal? Do we always think of the monthly payments instead of our ability to buy something with one lump sum?

James "Cash" Penny hated monthly payments so much that

he refused to accept credit cards at his stores until he retired from J.C. Penny.

A Ferrari salesman once told me the difference between Mercedes buyers and Ferrari buyers.

The would-be Mercedes-Benz buyer asks, "What is the monthly payment?"

The would-be Ferrari buyer pays cash and thus has no need for monthly payments.

Signs that we are hypnotized by monthly payments:

 We brag that a "payment is only____."

"They said my credit score is really high."

"I just got a raise so we can afford to buy____."

 

Count the number of people you know who have refused to be

burned by the monthly payment /hypnotic hoax. Who do you know

who has paid off her home? Cars? Business? Credit cards?

Medical bills? Line of credit?

Start a new tradition by refusing to be hypnotized.

 

 

(photo courtesy winnord)

 

Diversity & diversify

4'8

 

                                                                                                                                                          7'6

Is diversity among people good? Absolutely.

Physical challenges, upbringing, and education attainment
make us look or act uniquely, but that is a good thing.

Shared vision and values are enhanced by differences.

My Dad grew up in Utah, stands a little over 6 feet tall,

and attended college for a brief time.

My Mom grew up in New York, stands 5'4, and has attended

5 universities and colleges with multiple degrees in various fields.

They both value family, America and their Spirituality. 

They use their differences to live their values.

Every good team needs players short and tall, fast and slow.

Peyton Manning is very different from the former Bears Super Bowl hero
William The Fridge Perry, but both added value to Super Bowl teams.

Diverse people in a family, business or a community
is not the goal, but  a means to an end (greater unity, better ideas, and
more fun). Diversity for diversity sake is not nearly as powerful as
diversity as a tool for a better society.

We don't seek to invent/force diversity, we embrace it.

Diversify your assets? Some financial pundits say never and others say always.

Both have merit. If and when to diversify depends on you.

You don't want too many irons in the fire or you will
lack the focus necessary to win big.

But if your only asset is a rental home on Hurricane Alley then you might
need additional assets.

If you diversify simply because you are financially ignorant, then
 no amount of diversification will help you. "I don't understand business so I bought stock (ownership) in 100 businesses via a mutual fund."

Diversify to spread risk and increase cash flow, but not to mask a low financial IQ.

 

 

(Photo courtesy Wikipedia)

 

Tax rates of the top 3 GOP offer valuable lessons

 

 

 

 

 

 

 

 

 

In the last few months Americans have heard about Presidential contenders' tax rates

over and over again. 

As a quick recap.

2010 effective tax rates for GOP Presidential contenders

• Romney     13.9%

• Santorum  28.3%

• Gingrich     31%

All three candidates earned plenty of money ($500,000-$21 million).

And all three  obeyed the tax laws.

So why the variation?

Mitt Romney told the media he used advisers and most of his income came from past investments. (Capital gains on investments are taxed at 15 percent rather than as much as 35 percent, the rate for ordinary income).

Rick Santorum told America that he does his own taxes. Most of his income was ordinary income (consulting and appearances) taxed at 35%.

Newt Gingrich didn't disclose who does his taxes, but his returns show that most of his income also came from consulting and appearances. Thus his income is taxed as ordinary income too.

All three had charitable contributions ranging from less than 2% (Santorum) to over 10% (Romney).

Lessons:

• It's wise to invest throughout your life because the tax rate is much less on capital gains from investments as compared to ordinary income.

• Tax advisers help  keep taxes legally low. If you DIY taxes, then have a tax expert check your work (two intelligent friends of mine have saved thousands in taxes by using an accountant).

• You can give much to charity and still be well off.

It's tempting to criticize the high income of others, but  look at their income as proof that  American free enterprise works.

Then use investments, accountants and giving to lower your taxes.

 

 

 

 

(Photo courtesy Arvid Balaraman)

 

 

 

Image via Wikipedia

 

 

 

 

 

 

 

 

 

 

 

 

Image via Wikipedia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vulnerable: What your enemies know that you don't, but should

The weaknesses of professional athletes are exposed to millions of people. 

And like the ancient Greek myth of Achilles heel:

a fatal flaw exposed to an enemy can cause the downfall of a seemingly invincible warrior.

Basketball Centers rebound, block shots and score with amazing prowess, but their enemies have discovered their vulnerability: free throws.

Hack-a -Shaq was a technique teams implemented to hit Shaquille O'Neal to force free throws rather than have him dunk.  It worked.  Shaq's Achilles' heel was free throws (52.7%). 

Wilt Chamberlain too was woeful at the free throw line (51.1%).

And now Dwight Howard (59.0%) exposes his Achilles' heel at the free throw line.

Three men who have dominated their position with massive bodies and honed skills, but they have a huge vulnerability. These amazing athletes could have won many, many more games had they improved their weakness by 5-10%, but they didn't. 

Another Center, Kareem Abdul-Jabbar, mastered his weakness. His free throw percentage went up by over 8% over his career and he even ended his career at an exceptional 72% free throw percentage.

It is difficult to admit we have some glaring weaknesses too. Maybe too many donuts, too much house, expensive car payments, financed vacations, scant savings, or pricey entertainment. The marketers and salespeople know what we are prone to spend money on, but do we? Ask your friends and family to know where you are apt to spend a lot of money.

When I was in the 6th grade I badly injured my right hand. For weeks I couldn't play basketball unless I dribbled and shot with my left hand. When my right hand finally healed I was very proficient at left handed layups, hook-shots, and dribbling.  My weakness had become a strength.

Practice making your current money challenge a strength.

Financial challenges will come.  Will our Achilles' heel be exposed?

Or will our weaknesses/fatal flaws be a new found strength?

 

 

(Photo courtesy Rasmus Thomsen)

Ears to hear & the most important financial advice ever

 

 

 

 

 

 

 

 

 

 

 

 

 

Listening is not hearing. We can listen for a long time and never hear.

Hearing is listening and applying.

We have listened to many financial truths over the years, but have we heard?

Get out of debt/ save/ prepare a budget/coordinate with your spouse/

plan your purchases/invest wisely.

But we don't need more and more advice, we need ears to hear.

 

The most important financial advice to hear now is

whatever aspect of financial literacy you struggle with the most.

The person prone to spend money every day eating out could try many things

to get financially healthy, but the most important thing to do is eat home-made lunches.

 

 

(photo courtesy Sippakorn)

Everything and anything

 

 

 

 

 

 

 

 

 

 

Advertisers inundate us with a message that serves them well.

"You can have everything you want in life."

The message doesn't serve us well.

It creates glut and clutter and frustration.

We amass possession upon possession until we feel no

joy because we have "eaten to dullness (thanks Ben Franklin)."

Attempting to get everything we want turns us into consumers and hoarders

instead of creators and givers.

"Give me, give me" should become "let me help" at some point in our lives.

We can get anything we want (the promise of America), but not everything we want (glut). 

And that's a good thing.

 

 

 

(photo courtesy worradmu)

 

Friends cause (invisible) stretch marks

For many years my family would take a trip to Northern California

to visit some amazing friends.

In-N-Out, darts, bike rides, trips to the Bay Area , and Ruth's Chris for steaks were some of the side benefits to our visits. The real reason to visit was because our friends changed us.

These trips were catalysts  to immense growth as the family we visited caused us to think big.

This family caused us to stretch, to dream, and to get better.

We often discussed dreams and visions of  our future family-life  and professional life.

Additionally the family was (and is) knowledgeable of many areas that my family is interested in.

We talked, played and ate as we formulated life philosophies.

On one memorable trip we were inspired to start a business that allowed me much more time with my family and we made the decision to buy a family travel vehicle.

Many mothers dread stretch marks: the visible sign a body is growing to accommodate a new life.

Although most people would never welcome stretch marks,

they  remind us of the joy "stretching" can produce.

When excellent friends stretch us and encourage us to be better we don't get literal stretch marks,

but we stretch (become better people) because of them.

Are you spending enough time with those who help you be a  better person?

Do your friends challenge you to stretch in every part of your life?

Friends help us to be better, but love us for who we are.

They kindly, sometimes invisibly, stretch us.

 

 

 

(photo courtesy photostock)