It’s been a hectic time over here at frommike.com… well, not the site, but the guy behind the site, lil’ ol me.

Well, it’s been quite a ride… How can I summarize…

First, missed ex-gf… threw myself into a slump over this one.  I don’t know what it is about ending relationships, especially ones that aren’t healthy for you in the first place, but I tend to crash and burn.  We had a period where we were kinda still together, but living apart (we used to live together) , then one day I called even that off because I didn’t approve of some stuff she was doing.  She moved on (quickly) and I hit the skids (quicker).  I quit taking the Chantix after I started considering the potential side effect it has of depression, which I was already headed toward by missing her, and picked up cigarettes again… Now my kids are ticked at me because I’m smoking again.  I think I have this issue licked though, had a couple good days here that I didn’t really think of her, and even when I saw her didn’t get that sinking feeling in my chest.  I’m not going to blame it on the Chantix, I’m sure that wasn’t it, so I’m going to get back on them soon here. On a good financial note though, I bought the last set of cigarettes in Florida, where they still seem to like smokers with their $3.something a pack rates…  I was in Florida because…

…My grandpa passed.  Last week, what was coming for a year or so finally happened, and he moved on.  He lived a long, happy life, retired Air Force, and served in the Navy as well.  He was/is a good man, and now he’s in a better place.  I just regret that the girls didn’t get to see him more before he passed.

The gas mileage testing went to hell. I stopped caring about it once I hit rock bottom, and now have just been back to the same ol same ol…  However, after this next fill-up, I’ll get back to seeing how 65 works for me.

I spent money frivolously.  I pulled out a credit card and charged up some things I really didn’t need to, to the tune of almost a grand.  Of course, some of it was spent on doing some fun things with the girls, but I also bought *another* digital camera that I didn’t need, and spent money in Florida.  The card will be paid off tomorrow, but it kinda put me behind a little on the other debts.  Of course, with grandpa’s passing comes the inheritance.  His parting gift to help me get out of debt, I guess.

Well, that’s my confession/therapy for the week… hope all ya’ll are doing well ;)

This weekend, I paid no attention to my speed.  Partly because I wanted to hear the Charger roar again, but mainly because we had to haul-ass to Austin to hop a train that the girls and I have been wanting to ride.  I didn’t do anything crazy like 90 on the interstate, but I did go 70-75-80 when appropriate by traffic.

When I got back, dropped the girls off at their mom’s, and made it home, I noticed it was time to fill up as indicated by the excessive beeping and the fuel light.  So I pulled up to my local gas station and filled up, to the tune of a beautiful 26.5mpg ;)

This has me thinking… is the 55 mph-most-efficent-gas-”rule” possibly not correct for all/most vehicles?  Am I leaving mileage on the table for driving 60 mph?  Could 65, or 70, give me more?

I’ll continue this week at 65 to see what becomes of it, maybe it’s just a matter of finding what’s right for my drive?

I filled up tonight on my way home after taking the girls out to the park, after rolling the trip odometer over 400 miles again.  This time filled up to the tune of a (relatively) sweet 25.07 mpg.

The bigger thing I noticed though, was my last fillup was on the 21st, and today is the 29th.  That’s 8 days of driving on the same tank of gas.  Whereas before, I would fill up every 5 or 6 days.  So now I’m completing a full week and then some on the same fillup.

This time around though, no one flipped me off (or so I didn’t notice), but I did find myself in a few “WTF?” moments where the highway I drive on merges down from 3 lanes to 2.  It gets kinda hairy when you got a big rig on your backside, fast moving traffic to your left, and an undesirable exit right in front of you.

Otherwise, I’m learning to take it a step further this time around by not applying my brakes when not absolutely necessary.  Since most of my driving is highway, there’s not alot to try and predict; traffic ahead stays moving usually.  However, I know where my exits are, and I know how the exits are situated, and how the traffic generally is at the times of the day that I get there, so there’s no reason I couldn’t use good ol’ gravity to slow me down prior to getting there.  I’ve caught myself several times over the past week turning off cruise control, hitting the exit, naturally slowing down, then pressing the gas to speed up to the light to hit my brakes and stop.  Everything after turning off the cruise control was wasted energy.

So it’s still working for me, so I’ll keep on it.  I’d be interested to see what kind of gains others are getting in more efficient cars, so if you’re trying your own 60mph challenge, please drop me a note and let me know.

You know, the one you always keep with you and transfer data around on?  The one that you don’t necessarily back up all the time, or ever (or is it just me?), the one that contains your budgets and future projections for when you’ll get out of debt, the one you check daily to keep you on track with your goals?

And it friggin’ sucks.

I’m not concerned with anyone finding it, I didn’t put any “secret” information on it like account logins or anything, but still, it’s alot of information that I’ve worked many hours collecting, organizing, presenting, all to make sure I have a nice outlook to look at when I needed it.

It’s depressing.

I’ve spent so many hours on it.  I’ve looked everywhere for it, home, work, car… I don’t go anywhere else with it…

Christ, can things get worst right now?

First up, is Angry Renter. Angry Renter is organizing an online open letter and petition to send to congress protesting against the bailout.

The petition reads:

WHEREAS: Most Americans rent or own their home outright, and the vast majority of homes (98%) are not in foreclosure.

WHEREAS: Both banks and borrowers should be reponsible for their actions, and the government should not reward reckless behavior.

WHEREAS: It is wrong to force all taxpayers– including renters who are already subsidizing home owners through the tax code– to pay for additional bailouts for big banks and home flippers.

BE IT RESOLVED: That Congress should not pass any bailout programs that reward risky borrowing and lending. Let the free market sort it out!

As of this writing, Angry Renter sports over 14,000 signatures and comments from people opposing any bailout.

Next up, Stop The Housing Bailout. Stop The Housing Bailout is a site chocked full of information regarding the housing bailout and how it’s going to hurt you and I. They also have pre-drafted letters, all ready to be sent to your representatives up on the hill.

Taxes are a huge part of any budget, whether you specifically budget for them or not. They come out of your check every pay period, whether you know about them or not. And they amount to one of your largest monthly expenditures, whether you count the cost or not.

You live frugally, you save your money, and you regularly read sites like FromMike.com (shameless plug, yes) to better understand how to manage your money and get out of the financial prison that has taken our world by storm. So why should you stand idly by while others who don’t take responsibility for their financial situation gain the benefit of your money because they were so careless with theirs?

Why should anyone stand by while the people on Capital Hill blow your money to help out the very people who have been profiting while the housing bubble was rising? Did you profit during the bubble? Probably not. Did you live in a home fit for a king on a paupers income? Probably not. So why are you expected to bail out those who have already benefited?

Government is not a charity. Government should be taking precautions to spend my (and your) money according to our constitution, not bailing out companies, not bailing out hyper-consumers who live beyond their means. Ron Paul recently posted a story called “Not yours to give”, originally published in “The Life Of Colonel David Crockett”. If you have a moment, drop by and read it. I whole heartedly agree with it.

I am a home owner (now) and I do feel the bailout is a sham. I had to wait to buy my home, and I bought conservatively based on my income. Even though I bought at the tail end of the bubble, and with a buyers market I’m sure I’ve already lost value, I’d still rather lose value in the home as the market “right-sizes” itself than see our government hand out another one of my dollars to those who have no business receiving it.

From the article:

The department had said last month that it would begin giving rebates on May 2.

Instead, 800,000 tax filers daily will get rebates on Monday, Tuesday and Wednesday. No rebates will be distributed on Thursday, and 5 million payments will be made on Friday.

The payments will go out ahead of schedule because of a new computer program that updates records daily - faster than an older program that updates weekly, according to Andrew DeSouza, a Treasury spokesman.

Yay, money faster.

Well, today I filled up, and while I don’t think the numbers are actually representative of my gains, I’m still pretty happy.

First, this is the first time I’ve hit over 400 miles on a tank. Not bad for a (roughly) 16 gallon fuel tank. Last week I reported I had 22.4 mpg on that fill up, and this time, I got 25.24 mpg, for a 12.7% increase.

However, like I said above, I don’t think the numbers are right. I’ve driven almost 40k miles on this Charger, and I check the mileage at almost every fill up. My usual mileage is alot closer to 20 mpg before this experiment, not 22.4. Even at 20.5 mpg assumed prior to this test, the new mileage would indicate a 23.12% increase.

Now for the real stuff, go ahead, ask… “What was it like, Mike?”

1. 60 MPH is PAINFULLY slow. Literally, I get bored driving. And Youngest has successfully fell asleep on EVERY drive to daycare in the morning (they go to school by their mom’s, so we have a 30 mile drive to school in the morning).
2. I’ve received the bird (yes, THE bird) from at least one old man who wanted around me but couldn’t get there (too much traffic to my left). He’s the only one I noticed, it happened early, so I didn’t try to pay attention after that.
3. I noticed OTHER people aren’t used to someone driving 60 MPH.
4. Trucks. Big trucks. Tailgate. Yes, they do. Yes, it’s scary.
5. I did get to see more on my drive, though. This week was the first week I noticed someone put up a Ron Paul sign on the highway ;) Unfortunately, it was on the left side of the highway, and me not noticing it until now shows why he didn’t get much showing (?). Or maybe I just have more time to look around now?
6. I miss the rumble when flooring it on the highway to rev up to speed from an on-ramp or to pass… sorry, I do.

Other than that, it was the same old drive.  But even given all the above, I think I’m going to keep the 60 MPH cap going.  Mainly because of one reason:

1. When I filled up today, it was $3.44/gallon.  My 12.7% reduction equates to a savings of $0.44/gallon, and at the 23.12% reduction I feel I really got, that’s about $0.78/gallon savings.

PLUS, these savings go up as price goes up ;)  So it’s in my best interest to continue the challenge.

Today, I read an article over at Get Rich Slowly that talked about a family that got hit with credit card fraud by her own family members, and was asking GRS what they should do about it.

For both of these situations, and many that I’m sure I’ll, as you will, encounter in the future, I want to share a story out of one of the best personal finance books I have read, The Richest Man In Babylon.  It’s a story about a farmer that can understand what the animals are saying, as told by a character in the book, Mathon:

“This farmer, who could understand what the animals said to each other, did linger in the farm yard each evening just to listen to their words. One evening he did hear the ox bemoaning to the ass the hardness of his lot: ‘I do labor pulling the plow from morning until night. No matter how hot the day, or how tired my legs, or how the bow doth chafe my neck, still must I work. But you are a creature of leisure. You are trapped with a colorful blanket and do nothing more than carry our master about where he wishes to go. When he goes nowhere you do rest and eat the green grass all the day.’

“Now the ass, in spite of his vicious heels, was a goodly fellow and sympathized with the ox. ‘My good friend, he replied, ‘you do work very hard and I would help ease your lot. Therefore, will I tell you how you may have a day of rest. In the morning when the slave comes to fetch you to the plow, lie upon the ground and bellow much that he may say you are sick and cannot work.’

“So the ox took the advice of the ass and the next morning the slave returned to the farmer and told him the ox was sick and could not pull the plow.

” ‘Then,’ said the farmer, “hitch the ass to the plow for the plowing must go on.’

“All that day the ass, who had only intended to help his friend, found himself compelled to do the ox’s task. When night came and he was released from the plow his heart was bitter and his legs were weary and his neck was sore where the bow had chafed it.

“The farmer lingered in the barnyard to listen.

“The ox began first. ‘You are my good friend. Because of your wise advice I have enjoyed a day of rest.’

” ‘And I,’ retorted the ass, ‘am like many another simplehearted one who starts to help a friend and ends up by doing his task for him. Hereafter you draw your own plow, for I did hear the master tell the slave to send for the butcher were you sick again. I wish he would, for you are a lazy fellow.’ Thereafter they spoke to each other no more— this ended their friendship.

If you didn’t pick up on the moral of the story, here’s the next few lines from the book:

” ‘Tis a good tale,” responded Rodan, “but I see not the moral.”

“I thought not that you would. But it is there and simple too. Just this: If you desire to help thy friend, do so in a way that will not bring thy friend’s burdens upon thyself.“

The problem:  4 gazillion ways to do the debt snowball.  All having their benefits in one form or another, but two mainly standing out as the most popular: paying off debts lowest to highest by balance, just for the psyche of getting debts knocked out and staying motivated; and highest to lowest by interest rate, for the savings on interest.

Plonkee outlines a way to have the best of both worlds, by transferring balances from the highest interest (and presumably highest balance) to the (presumably) lower interest, lower (or non-existant) balance cards.

Given my debts, this is structured great for me.  My highest interest debt is my consolidation loan, which is also my largest balance (sans my 0% family loan).  My lowest balance debts (actually, my lowest limit cards that are paid off now) have the lowest interest.  So shuffling down some of the balance from my high balance debt to my lowest interest cards and continuing the debt snowball just like before makes sense.  If I can keep the balance perpetually on the lower interest cards while paying them off, then I would pay less interest in the long run.

I’ll have to investigate how much of a gain this would be for me.  Using purchase checks (which carry the same interest as a purchase with no fee) I could do this, but my payoff timeline is so short (only 4 months or so from the time my last credit card is paid off until the consolidation loan is paid off) that it might not be worth the time to do it.  However, for anyone who is working with less in their snowball and has longer debt reduction timelines, this would definitely be the way to do it.

It also has the added benefit of keeping you involved with your finances, which in my experience has been key to keeping on track.  It’s hard to lose track of the numbers if you’re so involved with them.

Before, money represented a way to acquire things. Now, it’s being acquired as a way to buy my freedom. Freedom from everything, and toward everything.

So here’s a list of things that I’m doing this whole debt reduction and wealth accumulation process for. These are my life goals and plans, beyond February 2010. Atleast, at this moment they are.

1. I want to quit the rate race.
2. I want to quit timing my day by a clock.
3. I want to go to bed and wake up by my body’s demands, not my boss’.
4. I want to travel this continent by RV, seeing everything I’ve only read about.
   
5. I want to travel the other continents by whatever means, seeing things only a few have read about.
6. I want to travel the ocean by boat.
7. I want to wake up on a beach in Mexico, without concern of how I got there, or where I have to be.
8. I want to NOT own a car. I’ll putz around on motorcycles, scooters, and my two good feet.
   
9. I want to NOT own a house, I don’t want to be in any one spot long enough to do so.
10. I want to be asked “Where do you live?” and answer “Here”, no matter where I am when I’m asked.
11. I want nothing to do today, and not feel guilty about doing just that.
12. I want to be there for every rally that the next political superstar has. I feel guilty for not being there supporting Ron Paul at every event he had, or at least more than I did.
    
13. I want to take odd-jobs because I feel I can help, or because it would be interesting, not because I need the check.
14. I want to be able to donate my most valuable asset, my time, to causes that are important to me.
15. I want to read novels cover to cover, in one fell swoop, because that’s all I have to focus on at the moment.
16. I want to be free.
    

It feels a lot stronger inside me than I could probably put into words, but you get the gist. A couple years after the girls fly the coop, off to study the books at college and start into their own lives, I’m going to do the same, and study the world.

Money is freedom. Being free to live how you want, to enjoy all 24 of the hours you’re given during the day, however you want to spend it. This 40 50 60 70 hour work week is not for me, and when I get where I’m going, my time will no longer be for sale, at any cost.

I’d be interested in adding to my list, things that I’ve never thought about, so let me ask, what do you do it for? What’s the long-term life goal that you want to accomplish by putting off purchases, skimping by on the cheap stuff, and working the extra hours today? I really would be interested in hearing it, and there are no right and wrong answers… after all, your goals are yours. Please feel free to share ;)