One of my passions is the game of hoops, as in Basketball.. NCAA, NBA and FIBA. I love the way the game is played, the strategies involved both in offense and defense, which brings me up to this next post... DEFENSE.
My favorite NBA team is the San Antonio Spurs. I live in Los Angeles, and have done so for years, although I've lived on the east coast and the bay area for a short period of time, and people look at me weird that I'm not a Lakers or Clippers fan. Don't get me wrong, I like those teams as well, and a bold prediction I will make right now is that the Lakers will make the playoffs. Okay, maybe a bit optimistic, but never count Kobe out!
Now back to the Spurs. Ever since I've followed them, they have been a model of efficiency, from the David Robinson days, to the current roster. Each player knows their role. There are a few superstars, but the coach treats them as if they are 3rd string guys. In other words everyone is equal. Now where am I going with this? I thought you'd never ask.
Any die-hard Basketball fan must've absolutely loved this past year's finals. Well, maybe if you're a Heat fan you wouldn't have; but to watch those Spurs dismantle Miami; especially the last 2 games-- wow-- there's no other words to describe it. They had offensive firepower in Mills, Parker, Ginobili and Duncan; but the defense-- Khawi Leonard on LeBron James was a sight to behold. I'm an LBJ fan as well, but the way the defense worked on him and subsequently his Miami Heat, to ultimately subdue them-- man... it was a CLINIC.... and it started with defense.
Now this applies to financial matters as well. If you have high interest cc debt, and other consumer debt, it doesn't much matter that you have an excellent income. One could argue that if one had a high paying job, then spending like there's no tomorrow could be justified. But remember, if that income comes from a "job"; a high paying one.... there's no guarantee that it will be there tomorrow. In other words, if you're living paycheck to paycheck and have the bulk of your earnings spent on frivolous items, you are one misfortune/catastrophe away from financial ruin. Lebron James will beat you off the dribble and will see an opening to Ray Allen or Chris Bosh in the corner for that uncontested 3! Three points right there, and your 10 point lead has been trimmed to 7, then 4 then... gulp... tied game.... with a minute left on the clock... or in financial terms, you're 50 years old with only $10,000 to your name, and a mountain of consumer debt.
Now this is a dire situation. Lebron James is a skilled B-ball player, perhaps the best.. and he will try his damndest to score on your team; and he will succeed-- unless your team plays great defense.
Now instead, if you had no consumer debt, or very little of it.. then you can weather the financial storms should one arise. This is playing good defense. And... if every member of your team knows their roles... i.e. debt repayment, 401K contributions, and having a fully stocked emergency fund, then you will be an efficient machine; much like the San Antonio Spurs.
There was an analogy of this sort in the book "The Millionaire Next Door". I know it sounds kind of corny, but I think there are a lot of parallels from the Spurs gameplan, and being an efficient financial machine.
Therefore pay off the high interest debt, and build that emergency fund and strengthen your financial "defense".... and the LeBron James's of the world as imposing as he may seem, will find it hard to score on your basket.
Thursday, August 7, 2014
Time....
as in almost out of it.
I know it sounds cliche, but the most precious resource out there that we have is time. I think about this concept daily. I mean, as I write this blog, the last hour or so can never be recaptured. It becomes oh so obvious as we get older... as in noticing that we're midpoint through the year; summer vacation is soon over, and the fall season starts. Then Thanksgiving, and Christmas and omg!! It's 2015!
That is way too soon..... it's coming at you fast! I have several goals that I'd like to attain financially and I'm glad I'm on the right track. I try not to dwell on past mistakes, and look forward with enthusiasm. I remember those past mistakes so vividly, that it makes me cringe.... but alas we must all look forward. I plan to pay off all cc debt by the end of the year, and also purchase my second investment property.
The old me, would have blown the excess cash I've accumulated, but it actually feels pretty good to meet your goals. The time that I have left motivates me to get there.
I know it sounds cliche, but the most precious resource out there that we have is time. I think about this concept daily. I mean, as I write this blog, the last hour or so can never be recaptured. It becomes oh so obvious as we get older... as in noticing that we're midpoint through the year; summer vacation is soon over, and the fall season starts. Then Thanksgiving, and Christmas and omg!! It's 2015!
That is way too soon..... it's coming at you fast! I have several goals that I'd like to attain financially and I'm glad I'm on the right track. I try not to dwell on past mistakes, and look forward with enthusiasm. I remember those past mistakes so vividly, that it makes me cringe.... but alas we must all look forward. I plan to pay off all cc debt by the end of the year, and also purchase my second investment property.
The old me, would have blown the excess cash I've accumulated, but it actually feels pretty good to meet your goals. The time that I have left motivates me to get there.
'gettin out-1st post
This is the first post on this blog. Let's see, where to start. I'm like most folks I guess. When I write that, it is an assumption. I've been raised and brought up to study hard in school, get good grades to get to a good college. And then after that, either go to grad school or professional school to ultimately get a good JOB. When I was younger, it never really occurred to me when I would be able to retire. I figured getting a good job translates to receiving a good income which would translate into having a secure retirement.
I went through most of the educational hoops, and landed a job, and like an idiot, did not contribute to my 401K. I was always a spendthrift, in my college years, and to me-- retirement was a long long "time" away. It didn't make sense to invest that money, when-- now that I was working, I had money to "burn". Still, there was a voice in the back of my head that sort of seen things as they are; meaning, at the rate I was going.... I was never going to retire.
I bought the usual trappings of a middle class lifestyle. 2 European cars, a house that I could barely afford, and since I was single, partying every weekend. I knew something was wrong when I had to pay my bills via a cc cash advance, because I blew what was left in my checking account at the casino! This was bad. Like a "junkie on heroin" bad... but despite this, believe it or not, I had several DRIP accounts. There wasn't much in there, but for some reason, I invested every month. I figured this was my "emergency fund" that I could tap into, if I was in a fix. And the cash advance thing paying the mortgage was the final straw. I realized that I was so close to the edge of a financial abyss, that it scared the s*** out of me! I mean, how could I let this happen?? I'm reasonably smart, and thought I had enough common sense to not live "paycheck to paycheck".
But I did exactly that. And now, after a few years, most of the cc debt is gone, The cars are paid off, and I contributed heavily into my DRIPs. I have a little money in a SEP IRA, but the bulk of my liquid assets are in DRIPs. I also sold the house, made a little profit, paid off some debt, parlayed that into a condo and recently sold it after I rented it out for a few years. With that windfall, I contributed heavily into my DRIP accounts, refinanced another investment property that was cash flow negative, and paid off even more debt.
Now, I feel I'm in a better place financially. I've still got a ways to go... but I'm totally sold on the passive income via DRIPs and buy and hold real estate provide. The purpose of this blog is to chronicle the rest of this journey until my passive income surpasses my expenses. So.... that's it in a nutshell. I've realized the virtues of frugality, and vow never again to be in that "awful place" financially years ago. The blogs that inspired me to get to where I'm at currently financially were dividendmantra, and affordanything. Thanks again.
Whew! Ok.. so the first post is done.... until next time.
I went through most of the educational hoops, and landed a job, and like an idiot, did not contribute to my 401K. I was always a spendthrift, in my college years, and to me-- retirement was a long long "time" away. It didn't make sense to invest that money, when-- now that I was working, I had money to "burn". Still, there was a voice in the back of my head that sort of seen things as they are; meaning, at the rate I was going.... I was never going to retire.
I bought the usual trappings of a middle class lifestyle. 2 European cars, a house that I could barely afford, and since I was single, partying every weekend. I knew something was wrong when I had to pay my bills via a cc cash advance, because I blew what was left in my checking account at the casino! This was bad. Like a "junkie on heroin" bad... but despite this, believe it or not, I had several DRIP accounts. There wasn't much in there, but for some reason, I invested every month. I figured this was my "emergency fund" that I could tap into, if I was in a fix. And the cash advance thing paying the mortgage was the final straw. I realized that I was so close to the edge of a financial abyss, that it scared the s*** out of me! I mean, how could I let this happen?? I'm reasonably smart, and thought I had enough common sense to not live "paycheck to paycheck".
But I did exactly that. And now, after a few years, most of the cc debt is gone, The cars are paid off, and I contributed heavily into my DRIPs. I have a little money in a SEP IRA, but the bulk of my liquid assets are in DRIPs. I also sold the house, made a little profit, paid off some debt, parlayed that into a condo and recently sold it after I rented it out for a few years. With that windfall, I contributed heavily into my DRIP accounts, refinanced another investment property that was cash flow negative, and paid off even more debt.
Now, I feel I'm in a better place financially. I've still got a ways to go... but I'm totally sold on the passive income via DRIPs and buy and hold real estate provide. The purpose of this blog is to chronicle the rest of this journey until my passive income surpasses my expenses. So.... that's it in a nutshell. I've realized the virtues of frugality, and vow never again to be in that "awful place" financially years ago. The blogs that inspired me to get to where I'm at currently financially were dividendmantra, and affordanything. Thanks again.
Whew! Ok.. so the first post is done.... until next time.
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