Monthly Archives: December 2010

Practical Christmas gifts

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When I moved out on my own my parents gave me a going-away present; a basic tool kit, with a small hammer, tape measure, pliers, box knife, and a adjustable screwdriver. Those simple tools saw a lot of use. Though in the years since then my tool collection has grown considerably and I’ve gone through several larger toolboxes (and still don’t have one big enough), I still have some of those original tools. They were a godsend on many occasions.

I also picked up for myself a basic car safety kit. It’s contents have long since been scattered to the four winds, but I believe it included jumper cables, a tire pressure gauge, a small first aid kit, and some reflective hazard markers. I know the jumper cables at least came in handy–until I loaned them to someone and never saw them again.

I believe parents should consider giving one or both of these simple kits to their grown or near-grown kids. More importantly, they should make sure they know how to use each item in them.

I remember a time in college (stop me if I’ve told this story before) when our church group was heading from one activity to another. Along the way I noticed my tire had gone flat, so I pulled off into a nearby parking lot to change it. Pretty soon a fair number of girls from the group had stopped–initially to see if I was okay, and before long to watch me work. None of them had ever seen someone change a tire before and wanted to see how it was done.

As ego-boosting as that was for me, I can’t help but think that some fathers had been negligent in their duty. Possibly even more important than teaching their sons to change a tire would be teaching their daughters. The last thing I’ve ever want for my daughter, at any age, is for her to be stuck on the side of the road somewhere, all alone, unable to change a flat tire. As soon as she’s old enough to drive I intend to teach her that and a few other basic car repair/maintenance tasks.

And yes, I’ll teach my sons, too. If they’re anything like their dad, the automotive tinkering gene is recessive, and such things won’t just come naturally. They’ll need to know how to check the oil, jump the battery, check air pressure, etc. And they’ll need to know where the tool and emergency kits are in each vehicle. And when they do leave home, it’ll be with tool kits of their own.

Emergency dental care

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Does your dentist always send you home with a free toothbrush, a sample tube of toothpaste, and a sample spool of dental floss after each checkup like mine? What do you do with them? If you’re just throwing them away, make I recommend you put them into your emergency evacuation (72-hour) kit? If you ever need to evacuate for a time you’ll have brand new items, usually with more than enough of each to get you through the crisis. And it’s free (sort of)!

The lure of "bulk"

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As a general rule, buying bulk is a good way to save money. But one has to be careful. Take for example my recent toilet paper shopping for my business. We have a regular catalog for a business supplies, so I first looked there. We could buy TP by the case, getting a case of 96 rolls for about $50. Sounds good.

But then I compared it with our household brand. We get that stuff in packs of 24 rolls for about $4.80. That’s about 20 cents compared to about 50 cents in the bulk case. Not so great. But then I remembered that there are different sizes of rolls. I quickly checked the stuff we use at home, and it worked out to 88 square feet per roll. Armed with that information I checked the bulk stuff again. They didn’t give any figures on square footage.

Comparing apples and oranges–the bane of bargain shopping.

Fortunately they did list sheets per roll, and so did our household brand. It turns out the bulk stuff has about 500 sheets per roll, whereas the household stuff only has about 175. Simple math reveals that with the bulk stuff you’re paying about .112 cents per sheet, where the household TP comes in at .114 cents per sheet. Woo. Big difference. You’re not really saving much going bulk in this case.

Now the supply catalog gives even bigger discounts the more cases you buy, but we’re a small business. It’ll probably take us a year to use up the entire case. It’s worth it to always have some on hand–we can’t exactly close the shop while we run to the store for more TP–but really, it’s not that much of a savings.

Far too often that’s how it is buying bulk. Rather than really providing savings, they will mask information to make it only look like you’re getting more for your money. They make it as hard to compare with the “regular” quantities as they can. You may save some money, but you have to buy a lot before you really start to see any significant savings.

Do your homework and your math. There are real deals out there. But now that bulk is big business, it’s still very much “Let the buyer beware.”

Friends don’t let friends retire broke

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The title of this post is the slogan of my financial adviser. I’ve had a financial adviser for close to ten years now, and for me it’s a good thing. I won’t go so far as to say everyone needs a financial adviser, though. Like most things, that really depends. But what you can’t afford to do is not plan for your financial future at all. Even if you can’t currently afford to save, you really should have a plan to get to where you can.

With that in mind, you have two options in planning for your financial future. You can work with a financial adviser, or you can do it yourself. Doing it yourself is possible, if you’re willing to do the legwork and homework. I tried it for about a year while my first financial adviser forgot I was still a client. I went to MotleyFool.com like my brother recommended and read up on their approach. And I tried it for awhile using fake money.

What I found is that I lack both the patience and cool-headed-ness necessary to be my own financial adviser. I manage my money pretty well, but I don’t do so well at researching stocks and funds (which is unusual for me–I’m a professional researcher), and I do terribly at thinking long-term in my investing. If something starts to do poorly I start to panic.

So in my case a financial adviser is necessary. And I found him. Or rather he found me. Paul was going door to door, as required by the company he works for, and spoke with my wife. Knowing that I’m interested in such things she recommended he call sometime when I was home. He called, but it was a bad time and I put him off. It was bad timing the next two or three times as well. But he persisted and that alone, if nothing else, convinced me he might be a good replacement for my previous adviser, who I hadn’t heard from in over a year. Anyone willing to try that many times for a chance to talk with me would probably not let me sit so long without contact once a customer.

And Paul has been great. His company’s investing style matches my own. He knows his stuff, and has been conscientious about not racking up unnecessary fees. He took time to find out what my life goals are and, without being judgmental, devised a strategy to help us get there. He encouraged us to save as much as we could, while leaving money for financial difficulties.

During my extended unemployment is where he has shown the most. I’ve not been able to save anything during this time, obviously. I can’t be making him much money. But he’s been there, regularly checking in to keep tabs on our situation, help us find the best way to draw on our savings when necessary, and to offer suggestions and encouragement. He’s even offered to put in a recommendation for me if I decided to apply with his company–which I have seriously considered, seeing as I love their approach, products, and personnel so much.

I can’t wait to get back into the black income-wise and start saving again. But in the mean time, I rest a little more comfortably knowing that I’ve got Paul on my side. Any money he’s made off me he’s earned in spades.

As I’ve said, not everyone needs a financial adviser. But unless you have the discipline and the know-how, you may want to consider it.