Expensive Donuts

Sunday I had a box of $230 Donuts. I know you're pining as to how I could have spent $230 on Donuts, and if I did, how big was the box? Well, it wasn't that big of a box, but they were delicious. I love Dunkin Donuts.

Staci and I spent Saturday night through Monday afternoon in Tennessee. I made a vow that no matter what we forgot, once we left the driveway we would not turn around and get it. (half jokingly) I realized, once headed south on I65 on the southern part of Indianpolis, atleast 25 minutes from home, that we forgot our video camera, as well as our charger for our digital camera. I normaly wouldn't care, since I do not really like taking pictures of myself, but our trip had a greater purpose than sight seeing. We were going to Financial Peace Plaza, the home of the Dave Ramsey Show, both TV and Radio. I am a devout Dave Ramsey proselite, so capturing this moment on camera was crutial. But I digress.

We woke up hungry Sunday morning and decided to undo a week at the gym be picking up some donuts. While out, we stopped at a Target, just to see what they had in the way of Digital Camera's. Their selection was modest, but it had what we were looking for. We love our Cannon Power Shot, and thought that if we could get the same picture quality with a few latest and greatest bells and whistles (sorry for the run on cliche's) we would jump on the opportunity. Well, they had the camera on display, but out of stock. We left, thanking the clerk, who was helpful, to an extent, just didn't have the product. I knew that there had to be a best buy around somewhere. We were in a Target, and there was a Home Depot up the street, a Best Buy almost had to be within half of a mile.

We got to Best Buy, and the choice came down to the Cannon we saw at Target, or a Casio that was featured on their Digital Camera display. The Cannon won.

In the summer of 2004, just less than 5 years ago, I bought a less frilly version of the camera we bought this weekend.

What I got in 2004 What I got on Sunday
4.0 MegaPixel 10.0 MegaPixel
32 MB Memory 4Gig Memory
1.5" Screen 3"Screen

That means 2.5x size pictures. 128x storage capacity, and 4x the view on the screen.

I paid $450 5 years ago, and only $230 on Sunday.

Amazing.

BTW, this is a very rare move for me. I waited 6 months to buy an iPod, and only did so when it came w/ a checking account, and 6 months to buy a TV, researching which one to buy for the entire time, at least one day per week.

Rich People

A quote from Dave Ramsey on the radio...

"Rich people don't think it's fun to to lose money, that's how they got to become RICH PEOPLE!"

Going to see Dave live November 15th.

Living like no one else is becoming living like everyone else. Keep up the good work.

What Budgeting Has Taught Me

Most of you know that I follow the common sense teaching of Dave Ramsey.  If you were not sure, you could have found out here.  My wife, Staci, and I have been budgeting pretty much since we have been married, almost 3 years.  We have looked at our monthly income, projected our expenses, and spent the money on paper (or Google spreadsheet).  I do not recall why we did it initially, other than it was recommended by Dave, but now, 3 years in, I see some added benefit to budgeting.

• When we budget together, we are forced to agree on our priorities in life.  I had a pastor who always used to say, "I can tell your priorities by looking at your planner/day timer and your bank statements." Staci and I are forced, every month to come to an agreement on where we invest or spend our financial resources.
• When you sit down and rationally plan your month ahead of time, your priorities change. 
•  My spending in golf has probably been the biggest change here.  I used to golf a few times per week, and since we started budgeting, I only go out on special occasions.  
• Another example is clothing.  This probably applies more towards Staci than it does me, but by planning out what we need for new clothing purchases ahead of time, we do not make impulse purchases that we regret later.  On the rare chance we do make a mistake on a clothing purchase, we have incentive to take the item back because our clothing budget is finite.
• When doing a 0 based budget, you cannot spend more than you make in a single month.  We have delayed purchases that we may have other wise jumped on earlier.  For example, the computer on which I am typing right now we had to save for.  With a credit card or in store credit we could have made an impulse purchase, but we saved for a few months, shopped around and got exactly what we wanted at a good price.  When you are spending future money it is easy to buy more than you need.  My sister, Jessica, told me that she was saving up for a Mac.  She wanted one for a long time, but now that she had the cash she wasn't sure if she wanted to empty her bank account for a computer (she already has a perfectly good one).  Saving up for something changes how you interact with it.
• When doing a 0 based budget, you also have to acknowledge that spending more on something also means spending less on something else.  We see this every month when one of us says, "we need to spend more on this" the other will say, "where is it going to come from?"  We can invest more, or pay down on the house more aggressively, but what will be neglected?

There is more, I am sure, but those are the biggest differences in the way I look at budgeting from 2007 until now.  What about you?  Do you budget?  If yes, why?  If no, why not?

Dave Ramsey on people with big money...

Makes you think...

What would I be like with $1M, $10M, or $100M?

An Idea for podcasts

I listen podcasts many times per day and one theme is THEY have themes. Dave Ramsey is financial, this American Life is unique stories from across the country, Tech stuff is obvious, Planet Money is Finance/Economics, Stuff you should Know is informative. My idea for a podcast on podcasts. The theme will be discussing podcasts. I think I can talk about the stuff I like to listen to. Just an idea, more thoughts to come.

Why do I like what I like?

Some things can grow on a guy (and no, I'm not talking about fungus.) I have been a listener to talk radio for the past 3 years or so, but not the kind I listen to now. I have liked ESPN Radio for ever, but now I have begun listening to FMTalk 93.9. It is a conservative talk radio station. Sean Hannity, Michael Savage, and the other person I listen to is Dave Ramsey. One thing I noticed is how opinionated they are. For a while it was getting on my nerves how what they said was the bottom line. They will not hear any opposing opinions. If they do they call them idiots, or any other sundry of words. Hannity makes fun of his opposing democrats. Savage has a book that is entitled Liberalism Is a Mental Disorder. All of this extreme opinion is a little taxing at times. No one is really as staunch as these guys come across. But I have come to realize that it is part of the show. People do not tune in to hear, "I think this... but I am not sure." They tune in for an opinion, even if they do not agree. Some people will tune in to hear their positions supported, and others tune in to become enraged at what they think is blasphemy. It is interesting to think about...