Asuswrt-Merlin vs Cisco

I recently saw advice to buy a Cisco RV130W instead of buying an Asus router such as an RT-AC66U and souping it up with Asuswrt-Merlin. I can see both sides of the argument but in the end I favor the Asus solution when I consider Asuswrt-Merlin vs Cisco. Here’s why.

Now, if you’re arguing business vs personal use, there’s no contest. In a business setting, buy the Cisco.

Read more

Computer burn in explained

Computer burn in explained

I’ve worked several different shops now that seem to have a misconception about computer burn in. So I’m going to explain it.

I think there’s a misconception that if you let a computer run with a light load for a while, it somehow gets stronger, and ready to handle a big workday load.

I’m 5’9″ and weigh about a buck-fifty, so trust me, I know a non-bodybuilder when I see one. And computers aren’t bodybuilders. Read more

Step 1 to landing a security job: Become conversant in security

So last week, I wrote about the difficulty of landing a security job and promised to explore it further.

And I think the first key, and what should be the most crucial key, is being conversant in security. Having a certification is one thing, but at the end of the day, the biggest thing it means is that you passed a test. It’s possible to pass a certification test and not be able to talk intelligently about security. So in the process of interviewing, you can expect to have to answer a pile of questions, and if you don’t answer those questions well, you won’t be offered a job. Read more

Is it better to be a consultant or an employee?

I ran into a former supervisor from many years ago at the local Home Depot this evening. We had a pleasant discussion. It reminded me of a question I asked, right around the time he and I last talked. I asked whether it’s better to be a consultant or an employee.

Here’s what I would say to my 2005 self if I could, somehow. I present it here since I know someone else must have the same question.

Read more

Phase-change memory could change everything

I won’t call it a revolution, because I wrongly predicted that RISC (in the form of DEC Alpha and Motorola/IBM Power PC) would start a revolution. But Micron released a new form of memory this week that promises to at least be a game-changer.

It’s non-volatile like the flash memory in your cell phone, digital camera, or SSD, but with a longer life expectancy, and it’s much faster. It’s fast enough to potentially use it for system memory, as well as storage.
Read more

How to become a millionaire in 10 years (safely)

I saw a blog post today called How to become a millionaire in 10 years. The majority of commenters dismissed it outright.

I don’t like that attitude. The plan makes some assumptions that aren’t always true. But having the plan is an important first step. What’s impossible now might not be impossible in a few years, so it makes sense to do what you can now.The plan, in brief, is this: Invest $996 a week, get a 12% return, and in 10 years, you’ve got a million bucks.

Let’s look at the first objection. It is optimistic. Unfortunately, the guy who floats that figure the most frequently is exaggerating. But you can come close by tweaking your strategy a bit. Twelve may be a bit optimistic, but it’s probably close enough. If you’re pessimistic, use a figure of 7% and adjust the rest of your math.

It may be tempting to try to do better. I suggest not. Average returns are all you need. Warren Buffett has said repeatedly that it’s better to spend your energy increasing your earning power rather than trying to outperform the market.

The second objection was that the numbers were just too unreasonable, so how do you become a millionaire in 20 years?

That’s easy. Save less. According to this handy calculator, $1,100 a month for 20 years at 12% more than does the trick.

Or you can save $2,000 a month for 15 years and pass the million mark.

So the math is sound. Let’s tackle that really big objection: How in tarnation do you come up with $996 a week to save? (And no, you don’t have to already be a millionaire in order to do it.)

The key is the same as paying off debt quickly. Don’t try to do it all at once. Take some baby steps. If the best you can do is half that, you still reach the goal in 15 years. Start by saving what you can, then ratchet it up when you can.

I set out to find a large number of common ways that people can save $996 per week (or more). Step one is the big kahuna, which will save most people a cool $24,000 a year right off the bat.

Step one: Pay off your cars and your mortgage. Between a house and two cars in the driveway, it’s safe to say most families are spending $2,000 a month. Some are spending a little more, others a little less. The trick here is the debt snowball. Look at your statements, pick the car you can pay off the soonest, then scrape together whatever extra cash you can and pay that much extra every month until you have that car paid off. Then take what you were paying on that car, and apply all that money to the other car. After that, apply all that money to the house.

Chances are very good that you can pay all of that off in less than seven years. The biggest reason why is because banks generally won’t loan you more money than you would be able to pay off in that timeframe. The reason for the subprime mortgage crisis was because banks started ignoring that rule and giving loans to pretty much anyone.

If you are a middle class family that manages to pay the bills somehow, some way every month, I’m reasonably confident in saying that you can pay off all your debt in seven years, then dump that car and mortgage money into an index fund and be a millionaire in another 20.

What about cars in the meantime? Drive the paid-off cars as long as you can, then replace them with the least expensive vehicles that are practical. Given a choice between driving a Lexus and looking like a millionaire, or driving a Toyota Corolla and being a millionaire, personally, I’d choose the latter.

So this gets you roughly halfway there. Let’s see if we can nickel and dime our way to the other half.

Step two: Live off one salary. If you’re married and your spouse works, try as much as possible to live off one salary and bank the other. This was the strategy my in-laws used to pay off their debts (rather than the debt snowball). If one of you brings home $26,000 a year or more after taxes, that gets you the other half immediately. Congratulations.

If step two is impractical or impossible, or doesn’t quite get you there, here are some smaller steps to get you there.

Step three: Put your raises and windfalls towards savings, rather than lifestyle changes. Someone I know was talking just yesterday about a job opportunity that paid a cool $30,000 more than he makes currently. “Lifestyle change!” he said excitedly.

Personally, I’ve never been able to make that kind of a jump, although I’ve made a couple of much smaller jumps since 2006.

Unfortunately it’s often difficult to get much of a raise from a current employer–the money comes when you change jobs. If you’re able to, say, move to a new employer and get a raise of around 10 percent, that takes care of a few of your 52 weeks. Do that every 2-3 years, and you can work your way towards the goal.

This strategy can take care of about four weeks.

Step four: Bank your tax refund. If you get a tax refund every year, instead of using that money to buy something, put it towards the goal.

In most cases, I would think the tax refund takes care of anywhere from 1-3 weeks.

Brown-bag your lunch. Early in my career, I ate out pretty much every day. My day started with a cup of coffee and a doughnut in the cafeteria ($2), and on a good day, lunch cost another $5. Eventually I realized these habits were costing me almost $1,400 a year. Brown-bagging isn’t free, but I figure brown-bagging every day costs less than $400 a year.

That’s another week, or possibly two.

Cut the cable and phone. My local cable provider charges up to $70 per month for some of its packages. Basic cable costs $40, which is still outrageous. If you can live without cable altogether, you can get anywhere from half a week to 3/4 of a week right there. If not, cut back as much as possible.

So how do you live without cable? My wife and I rent movies from Red Box about once a week. It costs a dollar. Other than that, we watch over the air TV. Sometimes there’s nothing on, but when I visit people who have cable, a lot of times there’s nothing on at their house either. The DTV changeover means there’ll be more local channels–many PBS stations are broadcasting on several frequencies, and DTV stations have a range of about 120 miles, so there’s a decent chance you’ll be able to pick up stations from nearby cities that you couldn’t get before.

So try it. If you can’t live without it, cut back as much as you can.

The same goes for your phone line. Are you paying for Call Notes? Cancel it and get an answering machine. Call waiting? Cancel it unless you can’t live without it, but in this day and age when everyone has cell phones and e-mail, I’ll bet you can. Call forwarding? Cut. If you buy everything Southwestern Bell tries to sell you, you can easily pay $50 or more per month for your phone line. When I ordered phone service, I asked for just a dial tone, and repeated the request every time they tried to upsell me. I pay just a shade over $20 a month for my dialtone. I can receive all the calls I want for free, and make all the local calls I want for free too.

By cutting back on cable and phone, most people should be able to save another $996 a year.

Take a long, hard look at the cell phone. Do you have two cell phones with $99 ulimited talk plans? Do you really need two?

Cricket offers an unlimited talk plan for $35 a month. But you may be able to save even more by cutting down the number of cell phones you have, or just getting pay as you go phones for emergency use and sharing phones as much as possible.

And keep in mind that a landline lets you make all the local calls you want. Ditching the land line and going all cellular may be trendy, but it’s not always economical.

My wife and I have one cell phone with a plan that costs us $30 a month, plus a pay-as-you-go phone that we refill as needed, for $25 a pop. It ends up costing us $10 a month, on average.

I can see how someone could potentially save another week’s worth by getting stingy with the cell phones. Maybe more.

Save on your utilities. Buying a programmable thermostat and setting it to not work as much at night and to minimize heating/cooling during the hours when we’re not home saved us a bundle. To the tune of $100 a month.

Weatherproofing the house helps too. Put film on the windows during the winter, and put weatherstripping on all the doors. I also went into my basement, where the utilities come into the house, and found a number of holes for wires that are much larger than they need to be. I filled those in with putty to keep the elements out.

If you really want to be a stingy Scottish miser, invest a few hundred dollars in a whole-house fan. These fans can replace all the air in your house in a matter of minutes. So in the morning when it’s coolest, you can open some doors and windows, run the fan for a few minutes, then shut off the fan, close the house back up, and give your air conditioner a big head start.

Also, for some reason society says we should keep our houses at 70 degrees in the summer and 80 degrees in the winter. Why? We keep ours at about 75 during the summer and between 70 and 75 in the winter. Once you get used to it, it’s comfortable. The savings aren’t exactly peanuts.

Using fans can help keep the air moving, making those temperatures more tolerable.

Squeezing the utilities ought to take care of another week or two.

Go out less. I know some people who easily spend $100 a week going out on Friday nights. Rent a movie from Redbox, have a couple of drinks at home, and save the difference, which is five weeks’ worth.

Cut the Starbucks habit. Do you start off your day with the stereotypical $5 cup of coffee at Starbucks? That’s $1,050 right there. Bank $996 to cut off another week, and you have $54 left to buy a coffee maker (if you don’t have one) and a year’s worth of reasonably good coffee.

Cut the bottled water habit. If you drink three bottles of water a day, that’s commendable because it’s healthy, but you’ve also fallen for the biggest scam in recent memory. Cut the bottled water, buy a water filter, and bank a thousand bucks.

Cut back on expensive hobbies. I’d rather not think about what I used to spend on my Lionel train habit. I know some people spend five figures a year on theirs. I was never that bad, but at its peak I know I was spending more than $1,000 a year on it. I’ve cut back, and the last two or three years I’ve probably spent a couple hundred.

I think it’s safe to say that most households have at least one or two expensive hobbies that could be cut back and still be enjoyable. Buy less and try enjoying what you have. Or buy used instead of new.

Or perhaps they could (gulp) be eliminated, for the time being at least.

Call this one another week’s worth.

Use the library. I know someone who is a voracious reader, which is admirable. She reads a couple of books a week, easily. That’s admirable, but the problem is she buys all these books at retail. A book collector might perk up and call it an investment, but there’s very little collectible interest in Nicholas Sparks and Nora Roberts. She buys the books, reads them once, and then they sit on the shelf until she gives them to someone.

She probably could save $1,000 a year by using the library instead.

Eat out less. Eating out once a week at $20 a pop easily works out to $1,000 a year. Cut that back, whether it’s by eating somewhere less expensive or just eating out one less time, and you’ve got another week’s worth of $996.

Use public transportation to go to work. The average person commutes about 20 miles a workday. That’s $2,436 a year if you go by the IRS standard mileage rates, which factors in depreciation and maintenance on top of gas. The savings wouldn’t quite get me a full two weeks’ worth due to the cost of a monthly pass, but it would get me close. Call it two weeks.

Buy used and generic when possible. I’ve read that the poor are less likely to buy generic than the wealthy, out of fear of being ripped off. The fear is usually unfounded. Generics usually are made in the same factory right alongside one of their brand name competitors, and the only difference is the label that gets put on in the end.

But let’s talk used. Last week my wife and I bought my son about $80 worth of toys, but we paid $4 for them. They came from a church rummage sale. They were a bit dirty, but we ran them through the dishwasher to clean and sanitize them (they’re plastic). The swing was missing the strap to strap him in, but we replaced it with a belt from a thrift store, which cost another dollar. It fits perfectly.

At the same rummage sale, I bought myself a button-down shirt for a dollar. It looked new. I remember paying $20-$25 in a store for something comparable.

I bought the shoes I’m wearing right now at an estate sale. They didn’t look like they’d ever been worn, and I checked the fit before I bought them. I’ve been wearing them for more than a year now. I paid $3 for them. They would have cost me $50 in a store.

Most people buy a new computer every three or four years. I buy off-lease business computers every three or four years instead. They’re better built so they’re less likely to break (I’ve never had one break on me), and a $100 business PC that’s a few years old will be about as fast as a new computer that costs about $500. So I figure this practice saves me about $400 every three or four years.

I once saw someone in line ahead of me at a department store try to drop a thousand dollars on new clothes. He had several nice shirts, some nice pants, socks, some nice ties. I was pretty impressed with his haul. The problem was he tried to buy them on credit, and was denied. My work clothes mostly come from secondhand sources. They don’t look as nice as what that guy had, but what good does it do to look nice if you can’t pay your bills?

I figure it’s pretty easy to save a thousand or two a year by buying generic and used stuff.

Be careful with the flex-spend account. Back when I was single, I was annoyed because every year HR made us attend a meeting trying to coerce us into signing up for a Flexible Spending Account (also known as a cafeteria plan). These plans made no sense for me whatsoever. Some years my medical expenses were $100. Some years they were $200. Other years they were $20. So if I put $1,000 in, as they tried to convince me to do, I would have been wasting a lot of money. Being in the 14% tax bracket, at best I stood to save $28 if I had a $200 year. But if I put in $200, then I might turn around and have a $20 year and waste $180.

Now I’m married and my wife is diabetic. In this case it’s a no-brainer. We sat down and figured out how often she goes to the doctor, and what she spends on supplies in a given month. Her expenses are predictable, and high enough to make it worth doing. Between her expenses and having a son, I put the maximum in, since babies are always needing various FSA-eligible things, and they go to the doctor on a regularly scheduled basis.

If you’re in the 28% tax bracket and you put $3,000 into an FSA, being able to use pre-tax dollars for those medical expenses saves you about $840 a year. Not quite a week’s worth, but close. You can probably scrape up the other $156.

But if your medical expenses are always really low, you can save a bundle by not putting anything in such a plan. Employers love these plans because people frequently don’t track them very well, and anything left in the kitty at the end of the year goes to the company. It’s a great way to steal from your employees, frankly, and that’s why HR departments push them so hard. If you don’t need one, don’t put the money in, and pay yourself instead.

I think it’s safe to chalk up judicious use (or non-use) of an FSA as another week’s worth.

Be careful with AFLAC. AFLAC is a similar thing. My employer’s HR loves to push AFLAC on us. “I have three kids. I know I’m going to make at least one trip to the ER every year, and that pays for my AFLAC,” the pitch goes.

Think it through. I have a peculiar talent for injuring myself with sharp objects. But I’ve found that my best bet is to go to urgent care when it happens and put it on my FSA. Urgent care always gets to me faster than the overburdened ER, and it costs half as much. I did the math, and AFLAC just didn’t make sense. One trip to the ER didn’t cover a full year’s worth of AFLAC.

Maybe when my son gets older and starts playing sports and stuff, AFLAC will make sense. I’ll revisit it then. But do the math yourself, rather than just taking HR’s pitch. They’re salespeople. Their job isn’t to help you, their job is to make the company money by taking back as much of your salary as possible.

Making the right decision on AFLAC isn’t going to save you a full week’s worth, but it can make up for a shortfall.

Get a side gig. I’ve come up with more than 26 week’s worth of common ways to save $996, but not all of them will necessarily apply to everyone. Having a side gig is a good way to make up the shortfall. I can tell you to mow lawns or fix bicycles or make quilts, but I’d rather let you find something more ideal, since the best thing for you to do probably isn’t the best thing for me. Here’s a series of questions to ask yourself to help you find a side gig.

What do you enjoy?
Is there some service that you can provide at a better value than your potential competitors, whether it’s because you’re cheaper, or because your work is higher quality?
Is there some product that has resale value that you know how to find and then resell some way, after making any necessary repairs?

Basically, you need to find a product or a service that you already know well and enjoy that allows you to add value to it. Don’t quit your job to do it; do it on weekends or evenings with the goal of making a bit. If you can make $50 a week, that works out to $2,500 a year. That’s a reasonable early goal, then build it up from there. Some side gigs grow into full-time jobs but others don’t. Your chances of succeeding are much better if you don’t try to rely on it as a full-time job.

Start small, then let it grow (hopefully) to fill whatever number of $996 shortfalls you have in a year. And as you gain skill and experience, it could potentially grow beyond that, either allowing you to reduce some cutbacks, or achieve the ultimate goal more quickly.

So there you have it. Not everything in this list applies to everybody. But I would say the majority of these things do apply to anyone who can call themselves upper middle class. Such a family can take this list, find 52 things, and join the ranks of the wealthy in a decade or two, if they’re willing to let savings take priority over keeping up appearances.

But I also suspect that pretty much anyone who owns a home and two vehicles can probably take this list and find lots of things they can cut. They might not be able to find a full $996 a week for all 52 weeks of the year. So it will take them longer, but it’s possible. Making some sacrifices now in order to have financial independence later is worth it.

The most important thing is to put everything on the table. The year 2005 was my turning point. I lost my job, and it seemed like everyone who needed IT people couldn’t afford them. Stretching the pennies was necessary for us to stay afloat when I was in between jobs. Eventually I found one. The cutbacks that allowed us to make ends meet while my best source of income was doing odd computer jobs also allowed us to pay off our house early after I regained steady employment.

With the house out of the way, financial independence certainly is my next goal. I’m not sure that this formula is precisely what I want to follow in order to get there. But it’s important not to dismiss such formulas immediately just because they seem difficult or nearly impossible.

The key to success, financial or otherwise, is to take difficult problems and find solutions, rather than dismissing them immediately as impossible. One strategy is to break the problem down. This problem conveniently breaks down into 52 smaller problems. I’ll admit I had to sit and think a very long time to come up with 52 smaller answers.

I just have one more thing to say. Please try. I’m currently reading a financial book written in 1975 that said the average U.S. household headed by someone aged 24-34 had $2,500 in savings. In today’s dollars, that’s a shade over $10,000. Today, the average household has zero savings and around $10,000 in credit card debt, on top of car payments and rent or a mortgage. That has a lot to do with why our economy is such a wreck right now. We can’t buy any more stuff because we’re paying too much in interest.

It’s not too late for one or two generations to rise from these ashes and buy our country back. So let’s do it.

Why small business is better than big business

Technophilosopher Paul Graham (whose essay on Bayesian filtering spurred the development of one of the more popular methods for blocking spam) has some thoughts on what companies ought to learn from open source and blogging.

I really liked this quote: [Those who] run Windows on servers ought to be prepared to explain what they know about servers that Google and Yahoo don’t know. I know Google and Yahoo are a whole lot smarter than anyone I’ve worked for who runs on Windows.

But the most poignant bit for me was this: People work a lot harder on things they like.

I believe this is why successful small businesses are successful. Millionaire owners of small businesses often work very long hours–possibly 10 or even 14 hours a day. But many of them probably don’t realize they’re working those long hours because they enjoy it.

I’ve noticed this with my wife when I work with her. She doesn’t keep track of the hours she works because she doesn’t care. And at the end of my workday when I come home, we might spend most of the evening working, but at the end of the evening, we’re no more tired than we would have been if we’d spent the evening sitting on the couch watching TV.

As I watch the rise and fall of companies in the computer industry, I see this same pattern. Why can’t Microsoft sustain the growth of its early years? There are lots of reasons, but in the very early days when Bill Gates and Paul Allen actually spent time writing code alongside their employees, everyone worked excruciatingly long hours, but they did it out of choice. Microsoft is notorious for trying to force those kinds of hours out of its workers today (the book Microserfs details this in general). Could the reason every Microsoft operating system released in the last 15 years has been delayed be because they’re just a labor, rather than a labor of love?

I think that has a lot to do with it.

And I think this is the reason why I’m not a fan of big business and never have been. Don’t get me wrong; I’m no fan of big government or big labor either. Big anything is out of touch and can’t help but focus more on self-preservation than on the things it’s doing and why those things are interesting and important. I can’t necessarily tell you why any given thing is interesting or important but I can tell you without even seeing it that it isn’t because of the amount of money it can make.

Nickel and dime your way to prosperity

An old friend and I have been talking a lot about debt elimination these past few weeks. With any luck, both of us will be completely debt-free by age 45 at the very most, and probably sooner.

The trick is to dump as much money as possible into debt retirement. As recently as November, the interest on my Honda Civic was costing me $1.40 a day. Think what you could do with that $540 a year you’re paying in needless interest.

The challenge is finding the money to use to retire debt.Some of these tricks will only save you a few cents. You must get yourself over the it’s-only-25-cents mentality. That quarter can either work for you or against you. A quarter paid at the beginning of a 30-year mortgage saves you more than a dollar by the end of the loan. Can you find a safer way to quadruple your money? I doubt it.

If and when you have no debt, dump those pennies, nickels, dimes, and quarters into an index fund. An index fund just buys you the same stocks that are in the Dow Jones Industrial Average, or some other index. Historically, these funds double in value every seven years. Great Depression, Schmeat Schmepression. Dump a quarter into an index fund and don’t touch the investment, and in 28 years, it’s $4.

So let’s find some creative ways to get some quarters.

1. Pay your bills online. This potentially does more than save you the 37 cents in postage. My gas and electric companies both have arrangements with checkfree.com to allow online payments free of charge. I was invariably late in paying them, which subjected me to interest payments. The other nice thing about Checkfree is that it schedules the payment for the due date. So if by chance you have an interest-bearing checking account, that money can work for you until the last possible day. You probably won’t save more than a couple of bucks a month this way, but that’s $25 over the course of a year. If someone offered you $25 without any strings attached, I doubt you’d turn it down.

2. Make car and mortgage payments as soon as possible. I may be showing my ignorance here, but interest paid to me on most accounts I’ve had is calculated monthly. Interest on my car is calculated daily. So, making that payment as soon as my paycheck shows up in my checking account reduces the principle, thus reducing my interest payments by a few pennies a few days early. It’s only pennies? I’d rather they be my pennies than Honda’s.

3. Use credit wisely. I remember one day a few years ago, I was at the grocery store and instead of pulling out my debit card, I pulled out a credit card accidentally. I thought how awful it would be to have to pay for life’s necessities on credit.

But if you’re disciplined, and you have a credit card with rewards–and we should be talking cash here, not merchandise–then it makes sense to pay for life’s necessities on credit. Take a look at my Discover Card bill, and you’ll see the bulk of it is things like gasoline, groceries, my telephone bill, and $20 trips to Kmart, which means I was probably buying stuff like toothpaste and deodorant and other household necessities. I pay the balance in full every month, so the result is essentially some bank paying me to buy the things I’d need to buy anyway. This nets me about $80 a year. I never see a dime of it–I apply it directly to the card’s balance.

4. Buy a programmable thermostat. The cheapest programmable thermostats cost about $30. They can easily save you that much in a month. During my 8-hour workday, my thermostat only heats the house to 56 degrees in the winter time. It cools it to 82 in the summer. During waking hours and on weekends, it keeps the house at 70 degrees in the winter and 75 in the summer. During sleeping hours the temperature raises or lowers by 5 degrees depending on whether it’s summer or winter. I used to have $300 heating bills in the winter months. Now I have $175 bills. That’s still ridiculous, but it leaves me money to actually do something about it.

5. Cut out the sodas and snacks. I used to routinely spend $1.50-$2.00 a day at the vending machine and the cafeteria at work, buying coffee, soda, and snacks. Over a 240-workday year, well, do the math. The 34.5-ounce can of coffee in my fridge (it lasts longer when stored there) is marked 9-26, the date I bought it. I expect it will last me until the end of the month. So that can of coffee will last me five months. I buy the off brand, so I can sometimes get one of those cans for between $3 and $3.50. So my morning coffee costs me 2.3 cents. I quit drinking soda entirely and I pack a granola bar in my lunch. Over the course of the past year I am sure I’ve saved $300.

6. Pack your lunch. Lunch at a sit-down restaurant almost always costs you $7. Fast food usually costs at least $5. The cafeteria at work is usually $3-$4. Sometimes I pack leftovers that would otherwise get thrown away, so they’re essentially free. It’s fairly easy to pack a lunch for $2. Again, do the math over 240 days. Do you want to spend a house payment on lunch every year, or do you want to spend a car payment instead?

7. Eat out less. A couple of years ago I was dating a girl who had to eat out 3-4 times a week, at least. Usually it was places where I was lucky to get out for under $20. I always paid, of course. I couldn’t figure out why I didn’t have any money. But with a little creativity, it’s entirely possible to make dinner for two for $4. You can make a fairly impressive dinner for two for $10.

8. Shop the cheap stores. St. Louis has five different chains of grocery stores. At the top of the ladder is Dierbergs, followed by Schnucks. A third local chain, Shop ‘n’ Save, generally beats the Schnucks and Dierbergs prices by a few percent. But now I do most of my shopping at two stores that white-collar professionals rarely visit: Aldi and Save-a-Lot. In most cases the quality of the product is the same. But when I can get a loaf of bread for $.99 versus $1.59, the difference adds up quickly. For the things Aldi and Save-a-Lot don’t carry, I still go to Dierbergs, but I rarely spend more than $10 at Dierbergs now, unless they’re running a big sale on something.

8. Buy generics. A lot of people are afraid of generic products because they feel they might be getting ripped off. You’re actually a lot more likely to get taken with a costlier brand name. I’ve found the quality of most generics to be as good as the name brands. When it isn’t, I try a different generic the next time. Eventually I’ll find a generic that’s as good as the big name brand, and save a bundle. I’ll buy the name brands when they’re on sale, but aside from that, my pantry is full of generics and I don’t care who knows about it.

9. Don’t spend a dollar to get 14 cents. A common excuse for not paying down your house is that the interest is tax deductible. That may be, but you’re getting pennies on the dollar. My car payment was costing me $1.40 a day until I paid it way down.

It’s tax time. That means you have a piece of paper that tells you exactly how much interest you paid on your house last year. Are you paying $14 a day to inhabit a house you supposedly own? That tax deduction only reduces the net cost to $12. I can think of better things to do with $12, and I’ll bet you can too.

10. Don’t spend your windfall all at once. Are you getting a tax refund? Did you get a bonus? Have you been working a lot of overtime lately? It’s OK to reward yourself and/or your family. But don’t blow all of it indulging yourself. Spend 10 percent of it, tithe 10 percent of it, and use the rest to retire debt, and dream of the day when you have no mortgage payment and no car payment and every paycheck is a windfall.

11. Save your pennies. Coinstar, the makers of those change-converting machines in grocery stores, says the average household has $90 in loose change scattered about the house. A fairly painless way to save money is to dump your change into a jar at the end of the day, rather than spending it on frivolous things. At some point, convert the money into a more usable form, then apply the windfall rule to it.

12. Cascade your debt. I pay extra on my car every month. When the car is paid off, I’m going to start adding that amount to my mortgage payment every month, except in case of emergency. I estimate I can have my house paid off in about five years by doing this.

13. What will I have to show for this purchase? This is key. Before you spend even a quarter, consider what you will have to show for it by buying it. Just because you walk past a candy store in the mall doesn’t mean you have to go in and buy something. If you’re lucky, all it’ll do is rot your teeth and make you fat. You could have paid that quarter into your mortgage and turned it into a dollar.

Some purchases are unavoidable. In a couple of months, I’m going to need new tires. I can think of a million things I’d rather do with that money, but I need it. That’s OK. I’ll have it.

The trick isn’t to live in total self-denial, but to exercise restraint. Most of us live like millionaires, but the problem is that we’re spending our million dollars instead of letting it work hard so we don’t have to work as much. And it’s killing us.

Pretentious Pontifications: R. Collins for President

R. Collins Farquhar IV, Aristocrat and Scientist.

To the directionless American people.

Greeting:

As my most recent endeavor received little appreciation, it is my great delectation to announce my decision to devote my considerable talents to solving the world’s problems.George W. Bush is in the back pocket of large corporations in a time when there are only two corporations, Intel and Microsoft, who are worthy of any trust. John Kerry is in the back pocket of labor unions and other leftist organizations.

Matters such as war and the economy are best left to the aristocracy, and not to amateurs such as these men. And, being an aristocrat, I have adequate means to support myself for eight years, so I can work without the distraction of trying to tread water above the poverty level on a meager $200,000 salary.

Therefore I am running for president.

John Kerry says he will reduce U.S. dependency on foreign oil but he does not say how. This is because this is a popular idea to which he has given no thought. Some political consultant told him this is what the rabble wants to hear. As even a simpleton like my brother David knows, the way one reduces dependency on oil flowing in from countries that hate you is by increasing your dependency on oil flowing in from countries that do not. Alaska has oil. Alaska is not even a foreign country. Venezuela has oil. We already buy oil from Venezuela. We should keep doing that. Russia has oil. We have money. We need oil. Russia needs money.

I will not state the rest of the obvious.

Now let us tackle the difficult matter of war. Being of rich Scottish heritage, and being descended from warriors who nearly succeeded in overthrowing the King of England except for a minor technicality of being betrayed by the French, I know a few things about war. I know more than a few things about winning a war.

I suppose only an aristocrat would notice such things, but it is very appropriate that our troops wear green camouflage, for many of them are not battle-tested. This is part of the reason why we are not winning the wars in Iraq and Afghanistan. It is painfully obvious to my aristocratic eyes that our troops need more seasoning before we send them off to fight in either of those two countries. Therefore, I propose we declare war on France in order to give our troops an opportunity to learn how to fight a war and gain confidence by absolutely trouncing an enemy. This trenchant and sonorous victory would give our troops confidence and rid us of a distraction. While routing the French army would not provide total preparation for facing the much better-trained guerrilla troops in Afghanistan and Iraq, it would certainly give them confidence, and confidence is 90% of everything.

The economy is easy to turn around. The aristocracy needs to spend more of its pin money. And when unemployment increases, the aristocracy needs to take on more manservants.

There remains but one problem, but hear me out, for I am going to turn that problem into a tremendous advantage: My age. The reports are true that I am but 29 years of age, which is well short of the 45-year requirement. However, I am in possession of an evil twin brother, who, incredibly, is also 29 years of age. Our combined age of 58 is well over the legal requirement. The advantage is that my brother, whom some consider more personable than myself, can take to matters that make presidents popular with the populace, such as jogging, drinking coffee at McDonald’s, looking at trains going around Christmas trees, signing books, making appearances at sporting events, dedicating libraries, granting interviews, and other such examples of woolgathering. He obviously will not know what is going on, but that is okay, because it will make this presidency appear peccant and naive, but such are the hallmarks of recent U.S. presidencies. Meanwhile, I can be tending to vade me*censored*presidential affairs, such as having my manservants bathe me, and then I can tend to a grueling 4-hour workday, whose tasks will include turning around the economy, bringing jobs back to the United States, and winning wars.

With an identical twin frolicking about the country acting as an aegis, it will be impossible at all times to know my whereabouts. So my misguided fans who like to give me fan letters soaked in alcohol and set on fire, or give me a 21-gun salute all by themselves, will not only have to get past the Secret Service, they first will have to figure out where I am. The additional Secret Service agents needed to protect two co-presidents will help the economy, offsetting some of the abstruce disadvantages of having such an ignoramus in such a prominent and redoubtable position.

My vice president, of course, will be none other than Jacques Pierre Cousteau Bouilliabaise le Raunche de la Stenche. He will, of course, be my main deipnosophist, and act as a fountain of yeasty jeremiads.

My time has come. My country needs me.

Not only do I appreciate your vote, I deserve it.

How to get rich–the Biblical way

Money is a controversial topic in Christian circles. On the one hand you’ve got people who say money is the root of all evil. The other extreme says if you do the right things, God will reward you with health and wealth and who knows what else.(This was the topic of my Bible study last night, in case you’re wondering. And I’m short of material, so I’m recycling. I’m also mixing in some insights people shared.)

For the record, 1 Timothy 6:10 says money is a root–not the root–of all kinds of evil. That’s somewhat less of a strong statement than saying it’s the root of all evil. So, money causes problems, yes, but it’s not the cause of every problem in this world.

To see some other causes and symptoms of evil, see 2 Timothy 3:2.

Isaiah 55:2 asks why we spend our money on what is not bread (when the Bible says “bread,” it’s frequently referring to the necessities of life such as basic food, clothing, and shelter) and on things that don’t satisfy. The main reason we do it is because we’re surrounded by messages that say this product or that product will change our lives. And while some products have changed lives, let’s think about it for a minute: Those kinds of things tend to come along once a generation, if that. I’m talking about things like the airplane, the automobile, and before those things, the railroad. Computers belong in that category. But the soda we drink is not going to change our lives, at least not for the better. Drink soda instead of water and it could make your life worse–regardless of what that 7up commercial with the bear says.

The American Dream is to give the next generation things the previous generation doesn’t have. Some have said that dream is dead, because we’ve become so affluent that we can’t think of what the next generation can possibly get that we didn’t have.

But it’s not working. Our kids have entertainment centers in their room that give a more life-like experience than the movie theaters of 20 years ago. They’ve got videogame machines that play better games than you could find in an arcade a couple of years ago. They have everything imaginable, and yet they’re all on ritalin and prozac. Meanwhile, their parents are both working, to pay for those two luxury SUVs and the next big home improvement project and all the toys and all the drugs that are necessary to keep themselves and their kids afloat in the miserable life they’ve built together.

My dad wasn’t always there for me. It seemed like most of the time he wasn’t. But it’s safe to say that when we ate dinner together 5 or 6 times a week, it was unusual. Most weeks we ate dinner together 7 times a week.

My American Dream is for my kids to have two full-time parents. Screw the luxury SUVs and the $300,000 house in the suburbs. My Honda Civic has more ameneties than I need. I’ll drive it for 15 years so I can have more money when things that matter crop up.

I told you how the Bible says to get rich. And maybe you’d argue I haven’t answered that question yet. I think Isaiah 55:2 can lead one to wealth that’s very enviable, but, yes, the Bible also tells how to gain material wealth. Check Proverbs 13:11. It’s especially relevant in the era of dotcom billionaires.

You’ve seen stories of wealty people who nickeled and dimed themselves to the poorhouse. What Proverbs 13:11 says is that you can nickel and dime your way to prosperity as well.

What the Bible doesn’t say is how, so I’ll share the concept of opportunity cost, which is one of two things I remember from Macroeconomics. I don’t know how many other people in my class picked this up from the dear departed Dr. Walter Johnson at Mizzou, so I’ll do my best to make my examples clear.

Opportunity cost says a 13-inch TV does not cost $99. That’s the amount written on the sticker, but that’s not the price. The price is about 30 lunches at my company cafeteria.

The monthtly cost of driving a new car every three years is about half my mortgage payment. But my mortgage will be paid off in 28 or 29 years and my house will be worth more then than it is now. In the year 2031, I will have absolutely nothing to show for the car I’m driving today. Those people who buy a $2,000 used Honda Civic or Toyota Corolla every few years and drive it until it dies have more money than you think they do.

Assuming you work about 240 days a year, two cans of soda every workday from the soda machine at my employer will cost you $240. But not really. What happens if you invest that money in what’s called an index mutual fund, which follows one of the major indices, such as the Dow Jones Industrial Average? Historically, you’ll gain about 10% per year on your investment, which means you’ll double your money every 7 years investing that way. (That’s taking into account times of bad economy, like today, or worse.) Anyway, I just grabbed my calculator. If you take that $240 and dump it into an index fund, in 35 years you can reasonably expect it to be worth $7,680.

The real cost of a can of soda is sixteen dollars. Unless you’re not going to live 35 more years. But unless you’re going to die tomorrow, the real price is considerably more than 50 cents.

There are a total of 118 verses in the NIV translation that use the word “money,” and considerably more talk about the concept without using the word. Of those, Matthew 6:24-34 is poignant, as is Ecclesiastes 5:10-20. What I take from them is this: If you build your empire 50 cents at a time, you’ll never be as wealthy as Bill Gates. But you’ll have more than you need, and you’ll be happier than Bill Gates, and you’ll sleep a lot better.

And if your name is Jackie Harrington, I suggest you start selling autographed 8×10 glossy photos of yourself. Sign them, “Bill Gates just stiffed me for 6 bucks! Jackie Harrington.” Sell then for $10 apiece to people like me. Then put the money in an index fund. Then in 35 years, when you’re a millionaire, write a thank-you letter to Bill Gates.

WordPress Appliance - Powered by TurnKey Linux