There Are Always Options

So it's Thanksgiving Day and my family is driving to Wichita to celebrate the holiday. We are getting close to my parents' home when I hear a clatter under the hood. I pull over thinking something has come unclipped and needs to be reattached, but no, it is the serpentine belt coming apart. The outer two edges are flopping wildly, slashing at vacuum hoses, etc., under the hood. Doesn't look good, but at least it didn't break!

We made it to my parents' home. My brother-in-law came out to pick up our family (he has a minivan, too!) to take us to the place of our Thanksgiving celebration (not feeling so festive at the moment). He loaned us his van after taking his family home so we could get back to my parents' and return for a visit the next day. Instead of visiting my sister, my dad, my brother, and I worked on the van, replacing what seemed like everything on the passenger side of the motor (including the water pump for you Dave Ramsey fans). Total cost: $140 and a lot of inconvenience on a holiday weekend.

The advice I want to pass on today is simple, but we often bypass it in the stress or emotion of the moment.

Consider your options

But what do I know about repairing a car? It is so cold and this is a special weekend. I should spend it with family, not repairing the car. Again, consider your options.

Who do you know that could help? My brother-in-law was willing to help with a ride and a temporary vehicle. My dad and brother were willing to help with the repairs (both time and expertise). All I had to do was lay down some pride and frustration to allow for the blessing of their generous gift. More than likely you know someone who could help. You just have to ask. Whatever happened to neighbors and friends helping each other? Don't let the spirit of giving lapse. Look for opportunities to help others and ask for help when you need it.

What must be done and what can wait? I am often tempted to do things that are unnecessary for convenience. "While I'm at it, I might as well..." Thankfully, I don't use credit cards. Back in those days, I would have not only rationalized the repairs to the van, but probably a new set of tires as well! While a new set of tires might be nice, and even needed in the near future, they were not necessary to fix the problem at hand. So, if they weren't in the plan for the month, they should wait. Especially when facing something unexpected, stick to the necessary. Times of crisis are not the best to make decisions - especially financial ones.

What can you really afford? You can afford whatever you can fit into your budget for the month! But isn't this what an emergency fund is for? Yes - and no. I could have coughed up several hundred dollars that Friday to have a shop do the work. It would have been well within the $1,000 baby emergency fund we have in the bank. It was VERY tempting. Don't use the emergency fund unless you have an emergency - and almost nothing is really an emergency. If everything is an emergency, you won't have an emergency fund left when a real emergency comes along! Try, if at all possible, to find it in your budget.

What are you willing to do to win? Stay focussed on the goal. Remember, there are times when we "live like no one else so later, we can live like no one else." Even though it was in my emergency fund, I am closer to my goal of being debt-free because I didn't spend the money on labor. It took some effort, some discomfort, and inconvenience, but in the end it was worth it. I got to spend some great time with my dad and brother, fixed the van, and was actually able to budget the repair into my December budget rather than tapping the emergency fund. Remember, it's your behavior that leads you to win.

This post is not to toot my own horn, but to give a real-life example of how it is done. I run into people all the time who have lots of excuses why they are not getting traction financially. They "don't have a choice." They refuse to consider their options.

You may have to take your car to the shop because you truly cannot do the repair yourself and don't know anyone who can help. That's okay IF you truly have no options. It may not even be your car that is the concern. But whatever you are facing, always consider your options.

Make exploring and utilizing the options you have a habit. If you are willing to do a little extra work, suffer a little inconvenience, and allow some people in your life the opportunity to help, you will find there are many different ways - many options - to solve the problem you are facing, whether it is financial or otherwise.

Getting a job (part 2)

Earlier I wrote about my friend who had lost his job but lost no time in finding several very realistic prospects. I believe one reason he was able to capitalize on those prospects was that he had guarded his good name. Today's post discusses another reason he is going to win.

2) The proactive approach always wins. He began his search the day he lost his previous job. He looked at all job options rather than limiting his search to a narrow industry or job type. He didn't sulk or take a break, but he took care of the important business right away. He got the unemployment insurance claim process started so that if he needed it, it would be ready. He sent out resumes, searched online job postings, and networked with everyone he knew. He and his wife addressed the personal finance side of the situation. What's more, they had already prepared for the eventuality of an emergency occurring. He sought counsel.

I often talk to people who are looking for jobs. They send out resumes in a shotgun blast and wait for callbacks. It's not going to happen for them. They don't get interviews. Don't think I'm minimizing the difficulty of finding a job, especially in a tough economy. But people are being hired every day. It might as well be you.

a) Prepare for emergencies (they will happen). Because he had prepared (had an emergency fund), the stress of losing a job was somewhat diminished and my friend had the emotional and financial capital to take some time to make a good transition.

b) When you're knocked down, get back up. Don't sit and sulk for two weeks before you engage in the process. You were planning to go to work tomorrow before losing your job, so go to work tomorrow looking for a job instead.

c) Keep seeking until you find. If at first you don't succeed, try, try again! Follow up. Call again. Learn to distinguish yourself. You have only a few moments to make an impression, so be ready. Unending persistence will pay off. Read The Go-Getter by Peter B. Kyne. It's an old book that will teach you how to be one!

d) Do whatever it takes. Lay down your pride and even your dreams for a while. If you still aren't finding what you need, secure temporary work to survive. There are jobs out there. They may not be in your chosen field and they may not be appealing long term, but when you face a crisis (like losing your job) and you aren't prepared, you don't have time to wait for the perfect opportunity.

These two posts are not an exhaustive list of what to do if you lose your job, but represent my initial observations after talking to my friend about his situation.

Getting a job (part 1)

I received a phone call from a friend recently who had lost his job. It was all very sudden and he was asking if I had any advice on how to proceed without getting into a big mess. I asked him a few questions and found that he was doing everything just right. He already had several interviews scheduled and was working several other job leads. He and his wife had reviewed their budget and knew exactly how much income they needed to replace to keep all the bills paid. They had some emergency savings that could carry them for a short time. I really had nothing to add except some encouragement.

I was particularly interested in the fact that he had several interviews while others I have spoken to have had none. How did he do this? And in "this economy?"

1) Guard your good name. Understand that your decisions today affect your tomorrow. Some of the job openings my friend applied for had many other candidates who were disqualified during the background check investigation phase of the process. His good name served him well. This point is easily overlooked, especially while we are young, but consider it carefully when you interact with others, both in your job and outside your employment. You never know when someone you meet might be sitting across a desk from you or have the option of sending you a customer.

a) Treat customers well. My wife and I recently stayed at a bed-and-breakfast that has outstanding service. We made it a point to tell the owners how impressed we were with the evening innkeeper. They said they had hired her from a store in which they often shopped. Their satisfaction as customers led them to think of her when they needed a new employee. And if you ever want some time away in Kansas City within walking distance of the Country Club Plaza, we highly recommend the Southmoreland (http://www.southmoreland.com/) for your stay.

b) Treat vendors well. Again, you never know when you might be knocking on their door to apply for a job. I have found that treating others well, even when you are a customer pays off. I have easily resolved potentially tough situations by remaining calm and extending grace, even when the "customer service" was lousy. I have done this regularly with vendors with whom others rarely reach a resolution (e.g., mobile phone providers). It doesn't always happen, but often. Have you ever taught your kids about the Golden Rule? Why, as adults, do we forget the simple lessons in life?

c) Be careful not to burn bridges when you leave employment. Leaving on bad terms may have future consequence. It may lead to a bad reference or take your freedom to apply for a future position in that company. The Bible says that as far as it depends on you, live at peace with all people. And as an aside, remember that God knows you lost your job. If you truly believe He has a plan for your destiny and you trust Him, you can walk in peace even when you lose your job. To gain some insight on this point, study the life of Joseph (starting in Genesis 37).

Another recent example of how the past interacts unexpectedly with the present is a business that recently got a very beneficial lease contract. The lessee was referred to them by a person who had an association with them many years ago. Many years prior, the business had no idea the relationship would lead to a referral in the future, but when you understand that your decisions today affect your future in unforeseen ways, you will tend to guard your good name by treating people well and parting on good terms.

"Choose a good reputation over great riches; being held in high esteem is better than silver or gold." -Proverbs 22:1 (NLT)

I'll stop for today. Next week I'll discuss the next reason I think my friend has been so successful finding great job opportunities.

On taxes, the wealthy, and spreading it all around

Join me, if you will, on a little anecdotal jaunt... On second thought, let me warn you that you may not want to. This could be painful or even maddening to you. Ok, if you aren't up to reading the tough stuff, just skip to the end.

There has been a lot of talk in the news lately about these implicitly selfish wealthy people and the weak middle class. Now I fit firmly within the middle class category, so nothing I write is from pure self-interest. But I have been thinking...

Most people by now surely have heard that the top 1% of taxpayers pay around 35% of all federal income taxes; the top 5% pay around 55% of the whole; the top 10% pay around 66%; and the top 25% pay around 84%. No matter on what the latest or most precise percentages are because the general idea is clear, and this post is all about general rules. They do, after all, become general rules because they generally are the rule.

There is no reason in the United States today that everyone cannot be a millionaire. Well, there is a reason, but I'll get to that later. The formula is very simple.

Like I said, I have been thinking. What makes rich people rich, middle class people middle class, and the "underprivileged" poor? In general terms, the same reason everyone is not a millionaire. Follow with me...

When wealthy people make lots and lots of money, what do they do with it? Let's see...they buy nice homes (except for Warren Buffet), they buy expensive cars (except for Sam Walton), they buy other stuff, they invest, they save, and they give. I notice their names on university buildings, hospitals, and church wings (for those churches that put names on wings). No, it seems the wealthy spread their wealth voluntarily to accomplish a number of charitable purposes. So why does the government need to get involved? And anyone in nonprofit work knows how most organizations are able to do extraordinary things because of the extraordinary generosity of a few, to whom much was given. Interesting.

So I'm curious, would raising taxes on the wealthy beyond the great amount they already pay be an attempt to shift those dollars away from charity to the government? Would the government be better at determining how to use those dollars for social good than the donors who actually earned the money? I am envisioning foreign countries I have visited. They have a "strong" middle class that relies on government to do and build everything. There are no names on hospitals or other "institutional" buildings. The wealthy are those in the government bureaucracy or with close ties and they don't do much charitable giving except with public money. Government is strong. Charity is weak. Okay, so that was admittedly a rant. But it's my blog and you had fair warning.

What about the middle class? What might we do with a raise, a bonus, or a tax refund check? Move toward becoming wealthy? WE PAY OFF DEBT, right? Now that is a great answer. But it begs the question, where did the debt come from? The answer to that question can often be found in another question. Why does the middle class stay the middle class over long stretches of time? Ouch. We stretched on the home purchase, filled it with nice furniture, kept up on the latest gadgetry, and entered the process of either leasing or making perpetual car payments. Middle class neighborhood are filled with all the stuff of wealthy neighborhoods but lack one fundamental similarity - the money to pay for it all. We have no savings, our giving is pathetic, and investing is out of the question.

This one could be touchy. The "underprivileged"? I have seen many people face insurmountable odds, but make wise choices, and press through to thrive. These were most often uneducated and certainly underprivileged folks. For example, most of our immigrant populations. And the Jewish communities that have faced persecution and discrimination that have thrived with little intervention. I recently heard of a local country club that opened up membership to Jews within the last 7 - 10 years. Astounding. Anyway, so what keeps poor people poor over long periods of time? And I could ask along with that, who has seen the greatest success in actually combating poverty in the United States - government or charity (so should we raise taxes or incentivize wealth and charitable giving)? When poor people receive a windfall, they rarely know exactly where it went, but certainly it is gone. It might go to the retail shopping outlet, a car dealership, or any number of places. I would venture to say it never goes to charitable giving, saving, or investing.

Poverty is a curse. The way to fight it is to get people out from under the curse, not to throw money at them. Studies have shown that if the world's wealth were evenly distributed, disparities would return within 6 years I believe. As the old proverb says, "A fool and his money are soon parted."

Thank you for letting me get all that off my chest. I feel better now.

Now for the reason everyone in America today is not a millionaire...

Yes, if you have read many of my posts you might have guessed it - BEHAVIOR - and that starts with you, not the government (not even the president).

So let me give you a little formula for success that I may have previously shared.

Give.
Save.
Then spend.

Or, as financial expert Ron Blue testified before Congress, "Live on less than you make. Then save and invest the difference over a long period of time."

You can do it. It is up to you. When your behavior follows these steps, mathematics takes over and abundance is automatically created. No matter who is president and no matter what the tax rates become, following these principles will naturally lead to wealth and success. And what do you do then (besides pay more taxes)? As Dave Ramsey says, "Once you have lived like no one else, you can live like no one else and you can give like no one else."

Don't wait on government. And don't worry too much about government (but DO get informed, think it through on your own - don't just listen to campaign rhetoric - and VOTE!). I could go on for hours, but I'll stop. Let me leave you with this verse that stretches out over this whole discussion-

"11Your power is great, and your glory is seen everywhere in heaven and on earth. You are king of the entire world, 12and you rule with strength and power. You make people rich and powerful and famous. 13We thank you, our God, and praise you. 14But why should we be happy that we have given you these gifts? They belong to you, and we have only given back what is already yours." 1 Chronicles 29:11 - 14 (Contemporary English Version)

Read it in several versions to let the truth get planted deep within you. And remember what my Dad told me right about this time of year in 1992: "That's why we put our trust in God instead of men." Wise words.

I don't get out much

Last weekend, my wife and I had some time away. We stayed at a bed and breakfast on the Plaza, ate out, and shopped. It was a fun and refreshing weekend.

One thing we noticed was the lack of quality service at most of the stores in which we shopped. No smiles. No greeting. No expression at checkout.

Now admittedly, I don't get out much, so maybe this has become the norm. But back in the day when I frequented retail shops more often, I usually got friendlier service. Our innkeepers were excellent. Waiters and waitresses were great, but most of the retail service was lousy at best. Some of the people made no acknowledgement at all that we were present.

"So what is the point," you might ask. I reflected and prayed about this from a couple of angles that I wanted to pass on today.

How to respond to poor service:

Smile. Be kind. Be generous. Be gracious. Bring light into their day. You just never know what they are facing. (You could add many more things here)

How to give good service to others:

Smile. Be kind. Be generous. Be gracious. Bring light into their day. You just never know what they are facing. (You could add many more things here)

Yes, I'm aware the two answers are identical. No, it was not a copy-and-paste error. The two answers should be the same.

Treat others as you wish to be treated - no matter how they treat you and no matter the other circumstances you are facing. Wikipedia calls it the Ethic of Reciprocity. Others call it the Golden Rule. I call it the Word of God (see Matthew 7:12; Luke 6:31). Jesus said, "This is a summary of all that is taught in the law and the prophets."

Join me in considering how you are treating others in your life this week.

Seek Wisdom in Troubled Times

These days, it is easy to get lazy in our thinking. No longer do we watch the news for news, we now watch for analysis. In fact, many entire shows are devoted to analysis of and commentary on the "news." Yes, the analysts abound and we hardly know how to think for ourselves.

If you are careful in your choice of analysts, you will arrive at good conclusions most of the time. But if not...

Now I firmly believe in evaluating writers, analysts, bloggers, etc., and finding a choice few that you really feel represent your approach, viewpoint, and ethic, but don't leave the thinking to them. Don't allow your inquiry to stop there. Don't get lazy. Do your own research. Consider your "advisors." Reach your own conclusions.

Keep learning. Keep reading. Keep thinking! And don't forget to inquire of the Lord as your Chief Advisor. The Bible says He gives wisdom freely to those who ask.

"If any of you lacks wisdom, you should ask God, who gives generously to all without finding fault, and it will be given to you." - James 1:5 (NIV)

It takes wisdom to navigate this world with it's abundance of information so readily available.

As you hear about all the turmoil, remember, the news media is owned almost exclusively by corporate giants interested primarily in profits, not news. They report what sells in the way it sells ("If it bleeds, it leads."). Don't let them tell you what you "need" to know.

One of the results of living in God's Kingdom and seeking His wisdom should be peace (Romans 14:17). And you'll not likely find that in the media, in the analysts' reports, or in the commentary. But if you'll learn, read, think, and seek God's Kingdom first, you might catch a different view of world and financial events. You might find wisdom.

"For wisdom is more profitable than silver, and her wages are better than gold." - Proverbs 3:14

The article link below is not from a Christian viewpoint necessarily, but is one I found interesting and wanted to pass along for your review as you read, learn, and think for yourself - and perhaps wonder whether civilization as we know it is about to come to an end. Note the date it was originally published. The world didn't end then either.

Economic Chronicles: The Money Mirage

Click here http://www.aier.org/research/commentaries/158-the-money-mirage-an-introduction for original article.

Seasons of Correction

"...[E]conomic conditions influence homeownership. The rate [of home ownership] fell during or immediately following most business-cycle recessions, with the most sizable and lasting decrease taking place after the double recession of 1980-1982. The only recession that did not result in a downturn in homeownership was the recession in 2001, a period of extremely loose monetary policy." (emphasis mine)

- Commentary by Polina Vlasenko posted by the American Institute of Economic Research (http://www.aier.org/research/commentaries/533-home-ownership-in-the-united-states)

I think it is notable that the blowout in the housing market and economy came after the government intervened in the natural course of things in 2001 with "extremely loose monetary policy." People were overspending, buying houses beyond their means, and rather than allow or even encouraging wrong behavior to be corrected, the government did the opposite. So people pressed on in ignorant bliss until it eventually, it all began to fall.

Market corrections are natural. They fix problems that exist in the markets. They clear the incompetence from certain workforces. And they should be allowed to occur (perhaps even embraced). Corrections, pullbacks, and downturns are natural seasons of life. And like the four seasons, each passes with time into a new season. Important things are happening in the process. Lessons are being learned.

If you are expecting the government, or the next president to solve your problems, it won't happen. There are success stories during all economic conditions - and they didn't originate in Washington. Take the reigns of your problems and go to work making a plan and following that plan. Your life should not be governed by the media, economic conditions, or who is in the Oval Office. One of Stephen Covey's Habits of Highly Successful People is being Proactive. Happen to your life. Don't wait for someone to fix your problem.

Opportunities still abound in this great Land. Jobs are still being landed. Businesses are still being formed. Houses are still selling (even in Michigan).

If you have made a big mistake, there may be some consequences to pay. Take the hit, make the change moving forward, and head toward a better and wiser future. It is going to take hard work and exploring lots of options. Apply again. Make some more phone calls. Try a new agent. Keep exploring. Keep trying. Never Give Up! Persistence is the key.

A common list of the failures of Abraham Lincoln (along with a few successes) is:

1831 - Lost his job
1832 - Defeated in run for Illinois State Legislature
1833 - Failed in business
1834 - Elected to Illinois State Legislature (success)
1835 - Sweetheart died
1836 - Had nervous breakdown
1838 - Defeated in run for Illinois House Speaker
1843 - Defeated in run for nomination for U.S. Congress
1846 - Elected to Congress (success)
1848 - Lost re-nomination
1849 - Rejected for land officer position
1854 - Defeated in run for U.S. Senate
1856 - Defeated in run for nomination for Vice President
1858 - Again defeated in run for U.S. Senate
1860 - Elected President (success)

You might notice, he never gave up.

Galatians 6:9 (TNIV) says, "Let us not become weary in doing good, for at the proper time we will reap a harvest if we do not give up."

As always, if I can help you walk through an issue in your life, please contact me.