Tag: finances

Some simple but probably not so easy money saving tips

One sure fire way to increase stress and problems after your transition, or in your marriage, is to jack up your finances.  Living paycheck to paycheck and being thousands of dollars in debt is one of the worst feelings in the world.  It’s like you’re sprinting on a hamster wheel and it seems as though there’s no way out.  So here are some ways you can save big bucks, but you’re probably not going to like them all.

Pack Your Lunch- up to $200/month

Unless you’re eating at the DFAC, buying lunch is going to cost you $7-10 a pop.  If you’re doing that every day that means you’re spending somewhere around $50 a week on lunch.  Don’t get me wrong, I love a good whopper or a delicious buffet, I’ve got the pounds to prove it, but my wallet can’t take that kind of hit every day.  If there is more than one person in the house doing that, then you’re really into some big dollars.  If you pack your lunch, you can usually feed yourself for $2-3 which means you’re saving $35 a week.

Cut the Cord- $100/ month

Drop the cable bill.  Most of you already have a Netflix and Hulu account, then you’re also paying $150 a month for cable?  Let’s face it, you’ve got like 6 shows you DVR, but otherwise you’re not watching cable.  The one holdout has been sports for a long time, but now even they are moving to streaming services.  Get yourself a high-speed internet service for $50/ month and save on all those channels.  If you have that one favorite show that you just can’t get, you can always buy that show on Amazon.  You can usually get a whole season of something for like $30 which is still less than what an entire month of cable will cost.  Besides, the cable companies are assholes and I can’t wait for those fuckers to go out of business.

Quit Tobacco

If you’re a veteran, chances are you have smoked or dipped a day or two.  This one sucks, but if you are strapped for cash, you should total up how much you’re spending on chew or smokes.  Seriously, do the math, then think about what you could be doing with that money instead of spitting it into empty soda bottles.  I understand that shit is as addictive as cocaine, just writing this makes me want to drop in a plug and I can barely have two beers without needing a smoke, but I am a tightwad and that is a waste of money.  Just think about it.

Trade in your car

Oh yeah, I went there.  I once wrote an article about my Prius and how frustratingly smart of a financial choice it was.  I actually was paid to buy that car, and it reliably gets me to work every day.  I drive it for around 5 hours a week and fill up gas once a month.  It costs me $15 a month to get to work and back.  I used to drive an F-150, it was beautiful. This gorgeous black extended cab with leather seats, navigation, and XM radio.  I smiled every time I got in the driver’s seat, but I paid almost $300 a month for that thing and gas was atrocious.  So I made the decision that was right for my family and got rid of it.  I might not drive around as nice of a vehicle anymore, but I’ve taken my family to Disney several times and there are 5 digits in my savings account.  To me, it was a worthwhile trade.

Some things are easy to budget for: groceries, gas, electric, mortgage, etc. But some things catch you by surprise, like maybe your lunch bill.  Take a close look at your expenses and see where you can afford to make a cut.  If you do everything on this list, some of you can save up to $600 a month.

Being debt free is really like being released from bondage and financial security is a tremendous reward for your hard work.

-LJF

 

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Why I drive a Prius and Other Begrudgingly Smart Financial Choices

I haven’t had a car payment for almost five years and it has been awesome…except for the fact that my 2006 Honda CRV was getting a bit boorish to drive and I really wasn’t a fan of the armrest.  Those are pretty silly reasons to buy a new car, and every time I went car shopping, I came back to the same realization that I loved money more than I loved a new car.  Then in mid-August a teenager not paying attention slammed into the back of my CRV as I was waiting on someone making a left turn.  The car didn’t really have much damage, but the bill for repair was approaching the value of the car and it was declared totaled and I got an $8,000 check.

 

I like to take my time making big financial choices, so I was a bit disappointed that I had less than a week to decide on a car.  I had three options as I saw it:

  1. Buy a similar vehicle to the one I had and stay on the savings plan to purchase a newer car in the next few years
  2. Spring a few extra thousand dollars and get a slightly nicer used car
  3. Put the $8,000 towards a new car and take on a car payment

After spending a weekend with every used car salesman in a 20 mile radius, I ended up settling on option #1 and purchased a Prius with similar mileage and a similar year to the car I was already driving, except now I have more than doubled my gas mileage and will probably only fill up the tank once a month (I’ve spent $14 on gas since mid September).

So now my household has a Prius and a Minivan.  I’ve thought about putting a Ranger bumper sticker on my Prius, then supplementing that with a “my other car is a minivan” sticker, because that’s just the kind of guy I am.

Look, it’s not sexy, and not a “fun” car to drive, but it’s comfortable and it gets me to work every day.  It’s a reliable vehicle and it protects me financially, and as I have told you in the past, strong finances also protect your marriage.  So by making this choice, some of you “manly-men” might make fun of me, but the most important relationship in my life is protected, so insult away bitches.

Other Frustratingly Smart Choices

I recently took a promotion within my company, moved my family back to North Carolina, and drove 45 minutes one way for nearly a year because I had a rental property that I couldn’t sell.  I know many of you have gone through this same pain in the ass problem.  We moved my big ass five person family into a small 3 bedroom 1600 square foot house for months because it was the smart financial choice.  When we finally sold it, we upgraded some, but stayed well below 20% of my salary in the new home and cut my drive to 20 minutes.  We could have afforded much more house, but we both know this isn’t our final living place, and our ability to save money is more important.  It also gives us greater financial flexibility.

I only learned these lessons because I made the mistakes before.  Less than a decade ago I was living in a house far more expensive than I needed to be and I had a $500 a month car payment.  We lived almost paycheck to paycheck, and whenever I got an overtime check, we would spend that too.  It wasn’t until I had to take a pay cut that all our bad habits cost us.  We argued, she cried, the stress was terrible, and I had to get rid of my beautiful truck and buy the minivan then drive the CRV.

We made, and still make, sacrifices financially, but we don’t have any debt.  We stay on a strict budget that fits our needs that includes entertainment, and going out, and new clothes for everyone regularly.  We take vacations, and now we never feel like we don’t have money, and folks let me tell you that feeling is so much greater than the new car smell or a great big house you don’t know how you’re going to pay for.  Those things aren’t going to bring you joy like being able to buy your kids the present they’ve been wanting without batting an eye. We’ve also become much more generous givers able to donate significantly to charity.

Being debt free means to have complete ownership of all the money you earn, and sadly very few people have EVER felt that.

Imagine not owing anyone.  Imagine not having to pay credit cards, student loans, car loans, etc.  Imagine getting a check and not being a slave to anyone else.  I strongly recommend Dave Ramsey’s Financial Peace University, you can scroll down and find a class near you.  In Proverbs it says “the borrower is slave to the lender”, becoming debt free is releasing your own shackles.

Having debt is like a constant weight that you have to carry around hanging off every single paycheck.  No matter how hard you work, or what promotion you take, it never feels like enough.  We live in a culture that thrives on materialism where status is given by your belongings…but it’s all fake.  Some things are worth more than a fancy car or a really big house, and being financially secure is one of them.

Set yourself free!

-LJF

 

 

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Important Marriage Conversations during Transition

I have told you before that you have to treat your marriage like a team event, not a contract.  If you win an argument against your wife, your marriage loses, and ipso facto, you lose too.  The only way to win is to work as a team and win together.  Today I want to focus a bit on the important conversations you need to have and how to have them.

Answering the 4 big questions together

How anyone of you does this without your partner is absolutely beyond me, but it happens all the time because answering these questions means you might have to have some tough conversations.  You need to start having these conversations at least one year before you get out, so you have time to prepare and adjust as needed.

Big Question #1- Are you financially ready to get out?

If one of you is a big spender, or maybe you have student loans, credit card debt, car payments, etc. you need to get together and figure out a budget that allows you to clear out as much of that debt as possible. Right now you have no idea how much money you will be making next year, or to put it more bluntly: you have no idea what someone will be willing to pay you next year.  If you decide to get out of the military and carry with you a ton of debt, you’re setting yourself up for failure.

I know what I am suggesting here is a tough pill to swallow because it implies you might need to stay in longer.  Then again, if you have a very compelling answer to Big Question #2 and can’t wait any longer, then you and your partner need to be perfectly aligned with every dollar you decide to spend (down to whether you’re buying lunch).

Big Question #2- Do you know Why you’re getting out?

Although couples often talk about the reasons for leaving the military, sometimes they aren’t aligned.  I’ve seen where one person was ready to get out and the other wasn’t, but capitulated to satisfy their partner.  If you’re getting out, you need to have a better reason than “my wife hates the military.”   Sorry to drop that one on you, but if you’re not all in also, when life gets hard on the outside, you’re going to blame her for it.  That blame will lead to resentment and eventually the relationship is going to suffer anyway.  You both need to be ok with the decision!  See if there’s a compromise: is there a PCS location that would help, or maybe you decide on a number of years.  Regardless, it needs to work for both of you, and if you’re not OK with it, you need to speak up.

Big Question #3- Do you know where you want to live?

I had a buddy that followed his wife to her hometown because she wanted to be near family.  Because he was so geographically limited, it was hard to find a job.  This put them in financial strain which resulted in constant arguments in the house.  In the end they ended up with an ugly divorce and their kids are stuck in the middle.  It’s a terrible situation for everyone.  A recommendation from a corporate recruiter is to have “gates” set up:  At 12 months you want a job in San Antonio (for example), 9 months out you open it up to Texas, 6 months out you open it up to the southwest, 3 months out something stateside.  If you both agree to this strategy ahead of time, then she will know you’re doing your best to meet her needs, but also keeping a pragmatic approach and protecting your finances.

Big Question #4- Do you know what you want to do?

You and your wife should be very clear about the parameters of your work so there is no confusion when you get a job offer.  If you want to be a cop, or work an off-shift, she needs to be clear on the requirements of that job. If you want to work as a contractor and deploy some more, she should be on the same page as you.  If she expects you to take a 9 to 5 and help her with the kids in the morning, you better be willing to do it.  Regardless, it’s a conversation you need to have.

Financial Decisions

I will always harp on financial decisions because finances are the number one reason for arguments within a marriage.  Regular arguments over finances can eventually lead to resentment and other arguments over minor stuff.  This can then result in a marriage beyond repair and a family gets broken.  Losing a family then puts a veteran into extremely high risk category for suicide, particularly when coupled with substance abuse and depression (very common after divorce).  So you see, answering question #1 and being on the same page with your wife financially could very well be a life or death decision.  Just don’t take this shit lightly ok?

Respect your partner and their ideas of what you should be doing with your money.  Don’t make any decisions without consulting her first.  When you talk to your wife about a financial decision, don’t say, “this is what we’re doing,” because that doesn’t count as a conversation.  You guys are a team and you don’t need to be giving orders.  Instead try, “I’m thinking of doing X, does that align with your financial goals too?”  If you decide to work at your marriage and treat it like a covenant and not a contract, you will find it to be so rewarding!

Remember that this is your partner and teammate that you are talking to.  If you hurt your wife in order to win an argument, your marriage loses.  Keep your words soft and sweet because you never know when you’re going to have to eat them.

Good luck and God Bless!

-LJF

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Why the headhunter won’t work with you

I can’t stress enough the importance of having a headhunter in order to get a job.  Unless you already know someone in the company you’re applying with, as much as they like to tell you otherwise, monster.com isn’t going to get you the job.  You have to get a headhunter, more on that here.

I spoke to a friend of mine, Eddie, that works as a headhunter for Lucas Group.  I’m not getting paid to say this, I just honestly believe they are the best firm out there. If you’re talking to someone else, I recommend you give Lucas Group a call, they’ll work with Officers and NCO’s alike, but there are some people they won’t work with.  So here’s an hour long conversation about a candidate they won’t work with given to you in 700 words…

“You must have the right attitude”

I’ve said this before, and I discuss it in great detail in the book, but you are starting a new career and you need to realize that.  Look, I don’t care if you were a Brigade Commander in the military, you don’t know anything about my business.  If you think that you’re better than my team because you wore a uniform, then you don’t belong on my team.

You need to come out of the military with some humility.  You can be proud of what you did, and you should be, but if that pride makes you look down on others that didn’t, then you’re going to have a tough time and i’m not going to hire you.  Tell me instead that you don’t have a problem starting at the bottom.  Say, “It’s an opportunity to learn about the business and I’m confident my skills will get me promoted quickly.”  Bam!  That’s what I want on my team!

 

The right combination of “shuns”

“You have to have the right combination of the 3 ‘shuns’: Location, compensation, occupation.  If you tell me ‘I want to be a program manager in west chicago and make $120k a year,’ I’m going to say ‘good luck.'”  

You need to have realistic expectations of what kind of job you can find when you get out.  There was a boot shop in Fort Bragg that had a sign that read, “we do 3 types of work: Good, fast, and cheap.  Pick any two.”  That saying is very similar to what you need to consider in your job hunt.

Location

“I can’t tell you how many times i’ve heard, ‘I need to stay in Dallas, my girlfriend is from there.’ Then I have to take my recruiter hat off and put on my life coach hat…”

Location is the 3rd question of the big 4 questions, go read more about that here.  Although there are occasionally good reasons to limit yourself geographically like a special needs child or a sick family member, generally you should consider a wider net.

Compensation

“I had a guy tell me, ‘well with BAH, Flight Pay, and Jump Pay i’m making about $130k a year, so I expect to make something commensurate to that.’ With a history degree? There’s no way.”

You need to be realistic about what you’re going to make.  That’s one of the reasons why finances are the 1st of the big 4 questions. You are going to take a pay cut, just wrap your mind around that.  Plan to live off your base pay and understand what that means to your budget.  This way, if you get a job higher than your base pay, you’ll have extra spending money.  Don’t worry, I have the utmost confidence that if you want it, you’ll be able to get promoted quickly above and beyond your peers. More on finances here and here.

Occupation

“I have guys tell me that they only want to do program manager jobs.  Dude, you don’t even know what’s out there and what you’re qualified for.”

The 4th big question is to understand what you want to do, and i’ve explicitly said “lead people” is an acceptable answer.  It is important for you to want to do something that you find interesting, but you should keep your mind open to possibilities that you might not have considered.

“If the alarm goes off in the morning and your feet don’t immediately hit the floor, you have a job not a career and there’s very little compensation or location that is going to make up for you being miserable 40, 50, or 60 hours a week.”

So basically if you’ve read the book or follow the blog, chances are you’re going to get a headhunter to work with you because you’re not going to make those mistakes right?  I’ll close with one final quote:

“The biggest obstacle in these guys’ career is themselves.”

-LJF