“‘For I know the plans I have for you,’ declares the Lord, ‘plans to prosper you and not to harm you, plans to give you hope and a future.’” – Jeremiah 29:11

The saying that “hindsight is always 20/20” is an interesting one because people typically use it when referring to things they think they should have done like, “Oh, if I had only invested in Microsoft when it first went public…” However, I think it’s also something that applies at times to understanding God’s providence and protection of us.

Sometimes things happen and we have absolutely no clue as to why – for instance, you miss a plane and end up taking another flight, but unless the plane you were supposed to be on doesn’t go down in flames, there doesn’t seem to be any obvious reason as to why you missed that one particular flight. Other times, I think we’re shown reasons why something happens the way that it does – like God gives us a little peek into His plan and, while there may be thousands (or even millions) of reasons why something happens the way that it does, we are shown one or two of those reasons that perhaps impact only us.

I am having one of those moments.

This has so far been one of the craziest most historical weeks I have known since I started working in financial services. As the sub-prime mortgage market continues to wreak havoc on the industry, we are all watching the decimation of companies like Lehman Brothers while Merrill Lynch is consumed by Bank of America. AIG is next on the chopping block if someone doesn’t step in to save the day by helping them raise the capital they need to stay afloat. There’s something really sad about watching companies of 100+ years disappear…even sadder when you realize that it could have been avoided if not for the over-leveraging of debt. Hm…perhaps Dave Ramsey is right – perhaps too much debt and risk is not wise! I see “leverage” in reference to debt as fast becoming a dirty word in financial circles. For a taste of the impact this is having, consider that Merrill Lynch stock closed yesterday at $16.59. Lehman Brothers was at $0.18. Imagine if you worked there and your retirement account consisted of mostly company stock. Can you say, “Enron”? Scary, sad stuff.

That’s what’s happening now, but let me take you back to 2006…

Merrill was trading around $80. I had moved out of NYC to take another role with ML in Princeton in October 2005. I had been with the company for almost 10 years, but due to circumstances beyond my control, I ended up leaving the company. It was a tough decision – I had been with ML a long time and had a lot of connections and loyalty there, but after much thought and prayer, I knew it was the right thing to do. As a result of my changing companies, I transferred my 401(k) out of the company which forced me to sell the bulk of my stock holding and purchase mutual funds instead. In an effort to also have a stake in my new company, I sold about half of what little ML stock I had left and purchased shares of the new company (since this is a public post, I’m not going to say where I work now, but most of those reading this already know).

From where I stand now, I look back on the series of events that after a decade moved me away from Merrill Lynch only a year before things started to fall apart. Merrill began their write-down’s from the sub-prime fallout in late 2007 and has been struggling as a company ever since. There have been layoffs, salary freezes, and bonus cuts. It has not been an easy time over there – every time I go to look up one of my friends, I can never be sure whether they’re still employed.

By the end of 2007, Merrill was trading at $58. By August of this year, their stock was hovering in the $20’s. Meanwhile, because of the company change, I ended up getting out of almost all my Merrill holdings (which included about half of my 401(k)) at $84. Wow.

Again, I don’t want to go into details about my current company, but suffice it to say that we are standing strong. Even in this environment, we are hiring. Last year we saw raises and increased bonuses. We have stood out as one of the true industry leaders. We have been (and will continue to be from what I can tell) part of the solution and not the problem. Where my friends and colleagues from other firms are worried about their jobs, I have security I would have never imagined in an industry environment like this.

I could have never predicted this, but that’s where I see the hand of God. He knew that this was coming down the road. By moving me out of Merrill Lynch when He did He knew that I would be secured in a way I could have never foreseen or even imagined. I’m not at all trying to say that if I was still with Merrill that He wouldn’t have had a purpose in that – His sovereignty oversees all situations and circumstances – but the fact is that He didn’t leave me there.

I also find that these moments where I get to see 20/20 increases my ability to trust Him through the times where things might not turn out so obviously well. I praise Him when they do (e.g. saving me from Merrill), but also when they don’t (e.g. still single at 34 – what the heck?). I guess you could say it all helps keep things in perspective.

So when I find myself in a situation that doesn’t make sense or that seems like the world is crashing down around me, I can pull from what I know to be true about God and His love and rest in the fact that His ultimate purpose and plan for me will not “leave me out to dry” eternally. He will come through (Rom. 8:28). He is always there (Matt. 28:20). He loves us beyond measure (John 3:16). What more could you ask for?

God rocks.

K.I.S.S. as most everyone knows is the acronym for “Keep It Simple Stupid” or “Keep It Simple Silly” or “Keep It Super Simple” which is my favorite because it gets the same message across without being insulting.

Dave Ramsey talks about K.I.S.S. the most when discussing budgets, but I’ve personally taken it a step further across all aspects of my personal money management, especially while I’m in the throes of Baby Step 2 – Debt Snowball, or as I like to think of it, my Debt Avalanche.

Having started my BS2 in February, I am nearing the end of my 7th month. So far, so good. I’ve paid off roughly 30% of my total debt and, despite Murphy’s best efforts, I am still on track to be debt free by sometime in 2010.

K.I.S.S.-ing works for me, so when something happens to make things more complicated, I naturally resist. I like keeping it simple. I like not having to look at all of my financial spreadsheets every day. I like not having to worry about multiple files and accounts. I like not having too many envelopes. I like doing things with actual, physical cash. I can do the details, but I don’t enjoy them. I hate balancing my checkbook – in fact I went for years without doing it until my sister found out and scolded me for it. And so one might easily see how keeping it simple would be a very appealing idea to me. More »

Somebody told me it was frightening how much topsoil we are losing each year, but I told that story around the campfire and nobody got scared. – Jack Handey

For those who were not fortunate enough to be with the New Life Presbyterian Church Youth Group camping trip to Cornerstone ’90, the title of this post will mean very little. However, for those who have at least been camping or have slept in a tent at some point in life, you will probably understand what a “bungee” is and why it might be necessary to grab it during a torrential downpour with gale-force winds beating your tent into the ground and then attempting to turn it into a kite.

This weekend I went camping with about 20 people from The Well. Thankfully it was not Monsoon season in French Creek State Park, so I do not have any tales like that of the Perfect Storm that hit our camp at Cornerstone, but there were still some wild times and laughs had I thought I’d share.

Friday I decided to take a half-day. Worked from home in the morning and then knocked off around 1:00 to pack and run errands which included taking Chena to the groomers for her first trim. Unfortunately, I don’t have any pictures of her at the moment, but I really should take some now. She lost about 2 inches of fuzz all over making her look a lot thinner (which is a good thing because everyone seemed to think she was fat before). The catalyst for this visit being that I was afraid taking her camping with her previous coat would be too hot for her. I mean seriously, how would you like to go camping in the hot, humid August of the East Coast while wearing your woolliest winter ski coat? And then what if your woolliest winter ski coat was actually GROWING on you? Not sounding very fun, is it? And so I had Chena’s coat trimmed down a bit.

After getting Chena and making a stop at the store, I picked up Gary (we were carpooling) and we took off for the hills.

French Creek State Park is located about 60 miles away from where I live (heading out towards Reading), so it’s an easy drive and a really nice state park compared to Tyler. I’m not busting on Tyler, but it is pretty small as far as state parks go, and doesn’t have nearly the activities available that French Creek does…but I’m getting ahead of myself.

After most everyone else showed up on Friday, we set up and got everything situated for the weekend. More stragglers joined us periodically up until about 11 o’clock when Mark and Beth finally found us (as you might imagine, it gets increasing difficult to find one’s way in the woods after dark – even, or especially, when driving). Friday night consisted of dinner, campfire, s’mores, laughter, and finally sleep.

Saturday morning, Chena woke up growling because it seemed she had trouble telling the difference between other members of our group looking for breakfast and rabid animals looking for fresh meat. Being an early riser anyway, I didn’t mind so we got up and made a b-line for the coffee.

After breakfast, everyone sort of grouped together and went off to tackle different activities. I ended up with a handful of people who wanted to go down to one of the lakes and see about renting a boat. Located next to the biggest pool any of us had ever seen in their lives, the boat rental dock is right on the shore of Hopewell Lake which was beautiful (this included Mark & Beth who had brought their dog, Ollie – a perfect friend for Chena). Unfortunately we weren’t there more than 10 minutes when the threatening thunder we had been hearing in the distance all morning decided to blow our way and put on a rather impressive show. The storm didn’t last long, but after it had finished, we decided instead to head back up to the campsite after detouring to pick up more ice for the coolers.

Chena and I both ended up lazing for the rest of the afternoon with a few others who stayed at camp, finally rounding out the day with dinner, more s’mores (is it just me, or does that sound redundant?), and of course laughter. A little later Saturday night, Ryan and Michelle broke out a nifty camping tool which looks somewhat like the precursor to the Panini press. Two iron squares which fit together neatly hold buttered bread and filling of choice (cheese, meat, pie filling…but not all at once) held into the fire for a few minutes cooks up a tasty treat. There was a name for them, but I’m blanking on what it was…and no, it’s not “sandwich”.

I’m sorry to report that I don’t remember much of Sunday. The morning was fine and I remember that well. Chena growled, we got up, I decided to take a shower which ended up sparking a high-speed chase through the campground (Chena running up to the showers to find me, Mark running after her, Ollie running after him, Chena running back to the campsite, Ollie taking off in a different direction, Mark running after Ollie, leaving everyone back at camp wondering where Mark & Ollie were once Chena showed back up).

It was only after breakfast that I started noticing a headache coming on. Within a couple of hours, it had progressed into a full-blown migraine – the likes of which I haven’t had in a pretty great while. Somehow I managed to pack up my stuff, but was struggling with how I was going to manage the drive home when another couple from our group (Davis & Denise) offered to help. Denise drove my car with me and her husband followed. I don’t really remember the drive, just the pain. Once home, I collapsed on the sofa with a large ice pack covering my head and there I stayed until about 8pm when it finally began to subside. Ug. The best part is, I think I did it to myself. Sadly, one of my migraine triggers is chocolate and I’d had a lot of that this weekend. Not all in one sitting, but over the course of 24 hours, I’d had a lot more than I’m used to and I feel fairly confident that this is what did it. Way to go, Deb. I’m just thankful it didn’t hit we were getting ready to head out anyway, otherwise what a bummer that would have been.

All-in-all, it was a great few days with a lot of valuable takeaways:

  • Chena is a fantastic camping dog
  • Gary is an excellent human Poison Ivy detector
  • French Creek = good PA camping
  • Campfires are great no matter what time of year it is
  • Those little iron things make great camping treats (despite the fact I can’t remember what they’re called)
  • There are still new friends to be had in the Philly suburbs.

On that last point, I really was thrilled to have the opportunity to make some more friends (as well as get to know some of my newer friends better) – something I would have not thought I would have been doing a year ago. In fact, it was a year ago that Kim was coming down from NYC to help me avoid The Zoid. Wow. What a difference a year makes.

God is full of surprises.

First and foremost, I have a victory to celebrate. I paid off another credit card last week! …and the crowd goes wild… Payment posted on 6/26 which was also 8 months ahead of schedule from what I thought when I started my debt snowball. That’s the power of hitting it with gazelle intensity for ya! Yay! So to Providian/WaMu I can now echo the immortal words of Clark Griswold from National Lampoon’s Christmas Vacation, “Eat my rubber!”

Second, I think that going through this whole deal as a single person has some definite perks (e.g. I don’t have to worry about getting and keeping someone else “on board”) but it also has its pitfalls. For one, if I start to falter in my motivation to keep running this race, there’s no one around to keep me from just sitting down on the bench and calling it a day.

Paying off that additional credit card (the first I’ve paid off since February, I might add) helped renew my energy for sure, but now I’m looking at probably 7 or 8 more months before I’m able to check another off. Upon this realization, I felt the vigor induced by my recent win start to fade. So in an effort to keep it alive, I decided to go back and try to figure out how I got to the place where I now have so much to pay off of this one last major card (I think the balance currently stands around $8,600 and was pushing $10,000 when I started). I mean seriously, what on earth did I buy for that much money? I mean, it’s not like I went hog-wild and upgraded my entire living situation. I didn’t revamp my wardrobe. I don’t have any shoes worth more than $80. I didn’t install some super-fab surround-sound home theater system. Nor did I put in the hardwood floors and tile I want so badly. And my backyard still sits patio-less. So honestly, where did all this credit card money I spent last year go?

Just to get some perspective around this, you have to understand that I started out 2008 with a total of almost $27,000 in credit card debt. Yikes. Makes me sick to even type that. This year to-date, I have paid off roughly $17,000 of that, most of which was done when my bonus/tax refund hit in February.

So for kicks, I went back and grabbed all of my credit cards’ year-end statement summaries where they kindly provide all of my transactions for the year and even categorize them for me. Of course I didn’t agree with some of the categorizations, so I consolidated them all into one Excel spreadsheet and then re-categorized them myself so they would fall more inline with the way I categorize my spending today. The sums of which resulted in a major “holy freaking cow” moment.

And so where did all my money for last year go? Apparently I ate a good chunk of it – like $500/month worth. Another decent portion went to travel (no surprise there). And then there were a lot of bits and pieces along the way which by their lonesome weren’t much, but added up over time. Would you believe over $100/month of the charges on the cards collectively were in fees?? Finance charges, balance transfers, cash advances, etc. Total, utter insanity and further evidence of my growing conviction that credit cards are, indeed, pure evil.

My “budget” (and I use that term VERY loosely) for 2007 was a total joke…and a bad joke at that. Granted, I had a lot of fun – one might argue maybe a little too much fun – but in looking back and weighing the cost, I have to admit that it really wasn’t worth it.

This year, I am THRILLED to say, is looking just a tad different. To give you some apples-to-apples, my average food spending so far this year is in the $200/month range (really closer to $150 except for the last two months were I kinda blew it) – that’s 40% of what it was last year. Travel is also averaging at about 0.03% of 2007’s total spending.

2008 is half over which means I’m now a quarter of my way to becoming debt free. Yes, I know when I first started blogging about this I thought I’d be there by next June, but after doing some more careful evaluating of my current debt, I discovered that I have more than I thought I did and so it will really be taking me through 2010 to kill it all

2011 and forward will be fun for sure (I still have an Antarctica trip to reschedule, after all) so it’s that debt-free side of the fence I’m trying to keep my focus on. But – and here’s the rub – in order to get there, I need to remain motivated to live like no one else (beans-and-rice, rice-and-beans) so that later I can live like no one else (wine-and-cheese, cheese-and-wine).

So pass the beans, please.

Coming up on the end of June, I’m finding myself about to begin my 6th month of budgeting.  For the most part I would say so far, so good however for some reason I’m a little puzzled by one of my envelopes which has been totally blown away in May and June.

The culprit:  Food

And when I say “Food” this encompasses anything I buy at the grocery store so trash bags, etc. also fall into this category.  I know to some that will seem crazy, but trust me – I am NOT a detail person.  I can handle the details, but I hate them, so I try to stay in line with what I’ve heard Dave Ramsey say time and time again and I “KISS” everything I can (Keep It Simple Stupid).  My feeling is that I have enough balls in the air, so the more of them I can consolidate, the better.

Anyway, the question has been WHY.  Why has my food budget gone so terribly wrong these last 2 months when I was able to keep to it so well February through April?  True, it could be in part to the increase in cost of some food items due to rising gas prices, but I suspect it’s actually more simple than that.  I think this is because May was when I stopped paying for my groceries in cash and instead started using my debit card again.  In fact, May is when I moved all of my “cash” items back to the bank and was aiming to only use my debit card.

The studies done by Dunn & Bradstreet as well as Citigroup indicate that consumers spend 18-20% more when using plastic than when using cash.  That paying for things with actual cold, hard cash registers as pain in your brain receptors, but using a plastic card registers nothing.  Apparently using a debit card does register a little pain, but apparently not enough to cut down on the amount you spend.  Hm.

So, just for kicks I’m moving back to the cash envelope system for this month with items like Food and will just see what happens.  I’m still not finished June so I need to try and get creative for the rest of the month.  I wonder what cardboard tastes like…