This week, Chris and I were pondering the last 12+ years and how we know when we feel settled with decisions. Sometimes we know right away and other times it takes a bit longer for the decision to feel right. Sometimes he knows so clearly, and sometimes it is me. It really depends on what the decision is, how big it is, how costly and its impact on our lives.
A plane ticket: I will not purchase it until it feels right to me. I have had quite a few occasions when the trip changed drastically, and I saved a lot of change fees because I had waited to purchase the ticket.
Furniture or large house items: Usually I am not as picky as Chris is – I know when I like something and I know when I do not like it, but we have a rule that we both need to like, want, and appreciate it before we make a large purchase. Sometimes I can push the envelope a bit and continue to show him different options because I am not set on his choice. Other times all the other options still lead us back to our original choice.
Large financial decisions: These always get me to slow down to a snail’s pace. I hate spending money, and even though not all financial decisions are spending money — they could be about investing money. I still want to look at it front and back and all angles to make sure we are making the smartest choice. Nothing wrong with that.
Food: If I know I do not want something I voice it, but generally, I just want Chris to decide on food. If something sounds amazing, I will state that, and whatever sounds nasty I will state that too, but I have way to many other decisions to make in my day, the last one I care about is food!
What I find interesting — on most things at work I know fairly quickly what feels right to me, but at home I tend to hem and haw about decisions. Maybe because it might be a large purchase, or a decision that is extremely permanent. Maybe it is also because Chris and I always make our decisions together. Regardless of whether the decision is at home or work, it is always important to feel settled, happy, and content with your decision. You have to live with it and the consequences.
It was so nice to have a long weekend. Somehow we got plenty done, did some fun things, caught up with friends and family, and had some naps dabbled within all that. Saturday we napped in the late afternoon (so nice)! Saturday night I fell asleep snuggled on Chris’ nap, and then Sunday we had brunch and I curled up next to him on the couch for a snooze, only to find out my snuggling with him made him fall asleep sitting up. Ah, how nice naps are for adults.
It was an interesting weekend, on Sunday I was quite cranky, and then two random acts of kindness happened to me (and yet I was still cranky). The first happened at the Starbucks drive-thru. I was very thirsty, as all weekend it was between 97-102 degrees which almost never happens in Portland, and definitely not before July 4th. Usually we are just hoping for a slightly warm and dry 4th. This year we got dry and hot-as-hell too. Chris and I spent most of our time in our bedroom where we have air conditioning.
So back to the random acts of kindness at Starbucks. When we got up to the window to pay, the girl at the window said, “The woman in the car ahead of you paid for your drink.” Wow. I always hear of that happening, but it has never happened to me (that I can remember). It makes me want to pay it forward the next time I am at Starbucks. You would have thought that would have lightened my mood. It made me grateful and appreciative, but nonetheless I was still cranky.
Random act of kindness #2. We were at Sephora. Not my favorite place in the world. It was loud, (and remember I was cranky). The line was long and I was done with my errands and just wanted to go home. As I am next in line at the register, the girl who had just paid turns to me and says, “Would you like to use the rest of this gift card? There is only a dollar left.” I was a bit taken aback. Sure, it was only a dollar, but she did not have to pass it on. Most people would keep it until their next purchase. Of course, she might dislike the store as much as me, and hope not to go back. In any case, I think I was a bit shocked at the second act of kindness in one day. I mumbled a “thanks” and continued with my purchase. Later, though I felt like my shock meant I did not share my gratitude in the best of ways. Sure, it was a dollar, but sharing is sharing.
This was my story of the kindness that was shared with me yesterday, now it is my turn to pass on the love. Join me?
Money is on the brain this week. It is official — the early bird does get the worm. I recently came across a Dave Ramsey money article that especially peaked my interest. It basically is the simple truth about money that almost all of us probably know. Yet, the visual he shared just hits you smack in the face.
I do not want to steal the visual from his website, so I will explain and link back to his site for the full picture. Meet Ben and Arthur. Ben starts investing at age 19 and puts $2000 in an account each year for 8 years straight and then does absolutely nothing with the account until he retires at the age of 65. A total investment from the ages of 19-26 of $16,000. A lot of money to put away in those early years of his life. Arthur begins investing $2000 when he is 27 years old and continues to put $2000 away from 27 to when he retires at age 65. Arthur invests a total of $78,000 over 39 years. A difference in $62,000 in the amount that was actually put away between Ben and Arthur.
The result: at age 65 Ben has $2,288,996 and Arthur has $1,532,166. Ben came out $700,000 ahead by starting 8 years earlier and only put away $16,000. Compounding interest is an amazing thing. How do we spread the word? I do not know many 19 year olds that a) care about investing, b) truly understand compounding interest, c) have $2000 a year they can or want to spare.
Why not have a prerequisite that you have to complete a personal finance class to make it out of freshman year of college (no matter what your major). Or maybe it is a class that every high school graduate must take (since many might never go to college). The class could teach many types of life skills, and maybe those that truly understand it might actually decide not to purchase that video game they are dying to have and rather put a bit more into their retirement.
To think that all it took was $16,000 for 8 years, rather than $78,000 for 39 years. If I only knew when I was 19 what I know now, I might have made very different choices, especially thinking of that $700,000 difference at age 65. How do we make compounding interest sexy?
Allowances. I cannot remember for the life of me if we got an allowance. Somehow what I remember most is that my dad sometimes paid us in candy bars. Not your normal candy bar, the kind you sell for school fundraisers. He would buy a case (or maybe we had some left over). I distinctly remember the ones that had caramel in the inside. If we ever did get paid (even with candy bars) it was for chores we did around the house. Did doing chores and my parents never following through with an allowance teach me good ideals about working, money management, or spending money? Not really.
I started working when I was nine years old. I babysat, cleaned a neighbor’s house, polished their silver, and had a paper route. Yes, crazy to think I did that at the age of nine. I guess I worked just as hard then as I do now. My parents would have me put my earnings in a savings account, so I guess you could assume that they taught me about saving. The problem? My dad usually “borrowed” from my savings account never paying me back. I did not have the best money role models. Kids should be taught about money early on, and not be graced with everything with no knowledge or conversation that money does not grow on trees. Which is why I especially love this article from Slate.com titled: “You’re Doing Allowance Wrong.”
“Spending is about modesty, thrift, and the prudence to shell out (and even splurge) for things that bring kids the most joy while avoiding mindless outlays for plastic junk they will quickly break or forget. Saving instills patience in a world that increasingly conspires against waiting, delivering television without commercials and movies without Blockbuster. And giving is about generosity as well as gratitude for how lucky you are to be able to help others.”
The article goes into depth about giving an allowance, a budget, and a list of things they want or need and let them make the decisions on what to purchase. It means letting them fail. As the article states: “Better now then at age 24…” It teaches critical thinking skills, how to rationalize why one purchase makes more sense than another one. Many adults today do not have these skills. What if we started early on learning these life skills? We have gone away from being a saving culture, instead we spend, and rarely give. If you have kids what are your thoughts on this article + topic?