Easy-Come-Easy-Go Rider

Earlier this month, I sold my motorcycle. That’s a big deal for a guy who grew up, almost literally, on the back of his dad’s 1973 BMW R90S. It was a sweet-bitter moment (since it was more sweet than bitter) handing over those keys, but it felt really great to do something that­ had such a profound effect on my finances, goals and life in one fell swoop.

Financial: The first layer is easy. Since I owned it outright, selling the bike put a few grand into the budget for house projects and our mortgage-payoff scheme (more on that in the 3-Year House-iversary article next month!).

Goals: Selling the bike was just another part of our ever-churning simplification machine. It’s one less machine to maintain and feed, one less registration and insurance policy to pay for, one less vehicle to keep clean, store, and worry about. All of which ticks up our overall Peace rating.

Life: Finally, and most importantly, it was the right time to let it go. Things are shifting, priorities changing, and a motorcycle represented too much risk for what is – at the end of the day – a toy (a very cool and kickass toy, but a toy nonetheless). And I surprised myself how at peace I was with it. But maybe it’s not so surprising; my motorcycle served its purpose. I got in some great rides and memories, especially with my dad, which was a huge part of buying it when I did. He’s been riding for 40 years, and it was always a dream to have my own bike and go on long, sweeping rides together through the northeast, and it’s been incredible. A surprise benefit was when my friend Tim got interested, learned to ride and got a bike, and joined us. Even my initially recalcitrant wife, Courtney learned to love riding (tho she’ll admit, the new wardrobe was a big draw for her). Bottom line, I’m content with my time having the motorcycle.

Contentment is a big part of enjoying your life and the people and experiences that make it truly rich. It’s been said that, once above the subsistence level, the only difference between poverty and abundance is one’s level of gratitude. Enjoy the NOW, my friends; it’s all a beautiful ride!

My Frugal Valentine (Birthday)

My birthday falls upon Valentine’s Day every year, and this year was my 30th to boot!  I could’ve demanded a fancy over-the-top day of being showered with gifts, chocolates, flowers, and more, but you know me…I chose another route.  Andrew had already given me tickets to see Passion Pit Monday night (amazing!) and another major gift, so I made it my mission to find fun and frugal things to do yesterday.

We began our day (at 7am) with a mouth watering breakfast at Perreca’s in Little Italy of Schenectady.  I had french toast with their homemade italian bread and a side of home fries.  No, this was not too many carbs.  BIRTHDAY FREEBIE #1: FREE breakfast with my license as proof of my b.day!

Thank you for my incredible FREE breakfast, Perreca’s!

After moving into our house almost 3 YEARS AGO, we received a coupon in the mail for a FREE bouquet of 1 dozen roses from Felthousen’s Florist.  Andrew got this gorgeous bouquet for FREE people!  BIRTHDAY FREEBIE #2: 1 dozen roses!

A FREE flower is somehow more fragrant =)

After lunch at our favorite pizza place, Home Style Pizza, we booked it to the Regal theater to see “Warm Bodies”, the perfect V-Day movie for us.  A love story combined with zombies…who wouldn’t find this romantic?  BIRTHDAY FREEBIE #3: Got my movie ticket fo-FREE with a special Birthday Free Admission Regal Cinema pass from our Entertainment Book.  Hollah!

Thanks for my FREE movie, Regal Cinema!

Not only was my movie ticket FREE, but by using my Regal Crown Club card, we also got a FREE small soda: BIRTHDAY FREEBIE #4, plus a $2 OFF Popcorn coupon from the Entertainment Book.  We shared a small soda and small popcorn (plenty for the two of us) for only $4!

Hollah 4 dollah!

I don’t enjoy going out to dinner on my birthday because there’s always a huge Valentine dinner crowd out.  I don’t like crowds.  So, to do something nice for Andrew (because it’s not just my birthday), I attempted to make homemade heart shaped ravioli.  They came out pretty well, but next time I’d fill them with more cheese.  I was hesitant, as this was my first time making my own pasta (aside from gnocchi), and I didn’t want them to explode.  But…success!

Before sauce

After sauce

After a delicious homemade dinner (if I do say so myself), we hung out for a bit.  We met up with my parents after dinner so I could pick out a Fossil watch for my birthday.  It was at the mall that I got to partake in my final freebie of the day.

BIRTHDAY FREEBIE #5: FREE drink from Starbucks.  When the girl at the counter asked me what I wanted (because apparently you can have ANY free drink you want on your b.day…remember this), I said a mint green tea.  She looked at me land said, “You want a tea…for free…on your birthday?”  When she asked me what size, I started to say medium, and she interrupted me to tell me I wanted a large.  I’ll definitely get a fancier drink next year.

My free tea was awesome. I regret nothing.

There were many other things I could’ve had for FREE on my Valentine Birthday, but you have to sign up for them ahead of time.  I will remember this for next year.  We really got a kick out of seeing how much I could get.  It was an awesome day.  And it pleases me, and besides, Dave Ramsey would be proud.

Homemade goods made from Upcycled materials

Check out my GOOT. shop where I sell a variety of affordable things made from upcycled and repurposed materials.  Help me celebrate my 30th Valentine Birthday and enjoy 30% OFF anything in my shop until Feb. 14th!  Use coupon code GOOTIS30 at checkout.  Buy REpurposed…It’s a GOOT thing.

“No Credit, No Problem!” Upcycled guitar picks

Our FPU Story

Some of you know that one of the major influences behind my personal financial turnaround (that story IS coming soon, promise!) is the Dave Ramsey method. He’s the radio show host with the southern accent and hilariously old-school approach, and his financial books and course have turned around the finances of literally millions of singles and families. Courtney and I finished his Financial Peace University course right before the end of 2012, and we wrote about our experience on Dave’s My FPU Story site (full text below). While you’re there you can see our post (Ctrl+F for “Andrew E”) or check out other great stories of folks who are, in Dave’s words; ‘Living like no one else’!

“When my wife, Courtney and I first met we were two sides of a few financial coins. Historically, Courtney had never had debt; including car payments or student loans. I had hit rock-bottom just a few years before, drowning in a total of $55,000 in debt before a cancer diagnosis woke me up to change the life that had been gifted back to me, starting with my finances. On the current front, Courtney had excellent habits (a queen of frugality who saved money from every paycheck) but zero understanding of – or interest in – budgeting, investing and the more ‘sophisticated’ elements of finance. In climbing out of my hole, I had read every personal finance book I could get my hands on and was flush with knowledge and the early success of a new Dave Ramsey devotee. I could make a budget sing and dance, baby!

As we moved toward marriage we had some, shall we say ‘rousing discussions’ adjusting to our new life. I wanted her to get excited to learn more about money, while she was content to keep practicing good habits and letting me handle all the details. Just as parents don’t like taking money advice from children, I learned wives don’t like taking it from their husbands. I decided to go right to the source, and let Dave take over her education. By this point, all my debt had been cleared up and our emergency fund completed, we’d even begun paying extra on our mortgage (a concept she was immediately on board with), but I wanted us to power into the final Baby Steps as a fully-committed team! Courtney agreed to read “The Total Money Makeover” in 2011 and as she learned more about the power of a unified vision for the future, of working and dreaming together, she began to understand what I’d been trying to say. She got excited about the possibilities and agreed to attend FPU. We started just a few months ago, and as each week passed I was proud as punch to hear her reciting baby steps, explaining the difference between a Roth IRA and a 401(k), and proclaiming her gazelle intensity!

We finished the last lesson just before the end of 2012 and our communication and commitment, to each other and our plans, are stronger than ever. We paid an extra $9,200 on our mortgage just during the 13 weeks of FPU! We’ve gleefully become that couple that tells all our friends and relations about our ‘weird’ plan and how much peace we’ve gained in our lives. Some are even starting to listen! It’s a wonder and a pleasure to see a future free of debt and full of hope. It’s not something I could grasp a few years ago. Thanks to Dave and the whole team for the plan and the know-how, and thanks to my incredible wife for daring to dream a radical dream that has truly set us free!”

Kagami Biraki – Breaking the Mirror

The Japanese have a New Year’s tradition called “Kagami Biraki”, or Breaking the Mirror. It’s a martial arts ceremony that involves demonstrations of skill and a ritualistic meal of traditional foods (no actual mirror breaking occurs). The most important aspect, however, lies deeper – it is the recognition of your true self and your true circumstances, in not allowing your future to be dominated by the past. It’s a vitally important concept for anyone working to improve their finances.

Philosophy in Action: Kagami Biraki maintains that the mirror does not truly reflect the present. Although we think we see ourselves in the ‘now’, in actuality the mirror contains only our past because we look with ‘old eyes’ on our current similarity to remembered images. Every moment of every day we are literally being made anew, change is constant. The danger lies in being trapped by that remembered image, seeing only the past in our present, and worse – our present circumstances projected onto our future selves. Breaking the mirror means breaking the old patterns of how we view ourselves and recognizing what we ARE instead of what we WERE, seeing what COULD BE instead of what HAS BEEN.

Both Sides of the Coin: It’s a powerful concept (I wrote about it in terms of cancer survivorship on another site), but how does this affect your finances? There are myriad possibilities, but here are two examples of hypotheticals who held onto a negative or positive past. In either case, financial mischief ensues.

1. Rags to Missed Riches: “Stevie” represents someone who was once buried in debt, or lost a fortune in bad investments or a market downturn. After cleaning up his bad behavior and paying what was owed, Stevie understandably learned hard lessons about the right ways to handle money. But fear of those past circumstances could lead him past good lessons (budget, spend less that you earn) to pinching every penny and never enjoying his money. Or he might be so scared of the markets he keeps his savings buried in his backyard (or a savings account…arguably worse) and never invests again. Bottom line: Previous circumstances, and the fear associated with them, are preventing Stevie from capitalizing on their new reality.
2. Riches to Ruin: Surely a positive past wouldn’t lead to a bad future, right? “Carlotta” represents someone with a high income/high lifestyle. Carlotta made $300,000 per year, and lived in a $2 million McMansion with a lavish lifestyle (expensive cars, luxury cruises, etc). If she suddenly lost half or all of her income she would find she has trouble paying her basic bills. But whether to keep up appearances or simply to avoid dealing with a scary situation, Carlotta tries to maintain her old level of consumption, one that is now completely unrealistic. That kind of income to lifestyle disparity can exhaust savings in a heartbeat and quickly move into serious debt. Bottom line: Ignoring her new reality and living based on a lifestyle she can no longer afford could seriously damage Carlotta’s financial future permanently.

That is the meaning of Kagami Biraki; a chance to glimpse the reality we fear to – or dare not – face. Knowing and owning the truth of your constantly new self is the only way to move forward unburdened by the emotional baggage of our past failures or the blinders of past success. That’s not to say we shouldn’t always learn from our past to make better choices, but combine that knowledge with a clear understanding of the playing field.

Do you know your true self? Do you know who you are now, and the path you wish to take into your future? Break the mirror and find out…

Christmas Cleaning Tip – Homemade stain remover

I started to prepare the house for upcoming Christmas company which will no doubt begin next week, starting with a good friend of mine who will be home for a while for the holidays.  Andrew and I enjoy entertaining and will have many friends and family members coming through our doors this season.

I decided to start vacuuming upstairs; and I don’t just mean the carpets.  The molding and cobwebbed ceiling corners were in need of cleaning (because I can’t even remember the last time I did that).  While in the craft room/man cave/game room, I noticed some stains on the carpet (most likely from the manly snacks and tea that Andrew brings in there from time to time, but I’m not blaming anyone specific here).  As we’ve been using less and less chemical cleaners, we’ve learned to make our own over the years.  So, I concocted this stain remover that can be used on your carpets or even upholstered furniture.  It’s awesome, cheap, and it even works!   ~Courtney

Awesome Chemical FREE Stain Remover Recipe

• 1/4 cup Borax
• 1 T dish washing liquid
• 1 cup warm water

Dip a wash cloth or sponge into the mixed solution and rub out the stain.  It works!!

Next up: Vacuuming downstairs…fun times.

My Love Affair With My HSA

I’ve recently begun working for a health plan based here in upstate New York. I’m thoroughly enjoying the job, and have learned a lot, but without a doubt the biggest revelation came from enrolling in their Health Savings Account (HSA) along with the High-Deductible Health Plan (HDHP). Yes, it’s insurance talk but don’t nod off, this is good stuff, I promise!!

I’ll write another time about the HDHP (see below for a brief overview). For today, I’m just going to focus on what is nothing short of a starry-eyed, head-over-heels love affair I have been having with my HSA (or “Holy Super-Awesome Account” as I call it). This is the single most generous benefit ever to be made available by the US government (they’ll probably figure it out and shut it down someday). Simply put, an HSA allows you to contribute money tax-free to a savings account for health care expenses, either now or in the future. But as Mr. Popeil would say; wait, there’s more! In addition to tax-free contributions, you can save or invest the money which grows tax-free, which can then be spent on qualified health expenses also tax-free! Triple tax savings! But the tax stuff is just the tip of the iceberg…

To show off the other ridiculously cool features of the HSA, I’m going to compare it side by side with an FSA (Flexible Spending Account) which most people are more familiar with. The FSA is another tax-advantaged account for medical expenses. It’s a good benefit – primarily because it’s ‘flexible’ and can be paired with most health plans, whereas the HSA is only paired with HDHPs – but the FSA is thoroughly trounced by its far more handsome and powerful cousin.If that doesn’t blow your hair back, here are a few other highlights:

1. 100% Vested: If your employer contributes additional funds to your HSA account (and many do), it’s 100% yours as soon as it’s deposited. You can leave the day after an HSA deposit and take it all with you! (This is opposed to, say a 401(k) match, where you are vested over time. If you leave, you get only a portion of the match based on length of service.)
2. Retirement for All! You aren’t required to spend HSA money on health care costs. You could pay for medical needs out of your after-tax dollars, and just consider the HSA another tax-advantaged retirement account, with no income restrictions! (The Roth IRA for example, isn’t available to very high income-earners). Once you’re at retirement, you can continue to use the money tax-free for medical expenses, including Medicare Advantage premiums, or withdraw it for any other purpose and pay just your normal taxes as with a 401(k) or Traditional IRA. You can even roll over funds from a Trad IRA to your HSA, up to the annual limit (one-time only).
3. No Minimum Distributions: Another bonus if you use your HSA as a retirement account; the government never requires you to make withdrawals! With a Traditional IRA or 401(k) (tho not the Roth IRA) you are required to withdraw a portion of your funds each year once you reach 70½. The HSA you can withdraw or spend whenever, always tax-free for medical needs, or eventually leave it as part of your estate if you choose.

Bottom line is the HSA puts you firmly in the driver’s seat of your healthcare expenses, now and in the future. Save tax-free, invest, use for medical needs or save for retirement. There just isn’t a downside! Who says you can’t fall in love with a financial product?

HDHP Snapshot (for those who can’t contain your curiosity): A High-Deductible Health Plan is a health insurance policy where you pay up front for all health expenses up to a set amount (this is the ‘deductible’, and it’s a large one, hence the word ‘high’). The upside is; premiums for HDHPs are typically much lower (sometimes half or less) than traditional plans and provide an out-of-pocket maximum, which means 100% of your costs are covered beyond a set ceiling. With most HMO/PPO/POS/EPO/etc plans you’ll pay co-pays or co-insurance on and on…and on…and on.