Archive for June, 2011

A Look At Hourly versus Salaried Employment

June 30th, 2011

Some changes in my employer’s industry has changed my job’s employment type from salary to hourly.

While my manager said he would try to get me promoted as quickly as possible to the salary grade level, I don’t know if I want it.  After experiencing the perks that I’m experiencing as an hourly employee, it might not be worth it, here is why:

  • At a salaried employee, I wouldn’t get paid to work anything over 8 hour like I would sometimes have to do.  As an hourly person I get time and a half to work those days.  This turns out to be excellent money.  Now instead of avoiding working those days, I consider them a financial windfall and a great opportunity!
  • I no longer have to be on-call!  The reason is because I would get paid like I was working a regular workday.  So again this would be big money, sign me up!
  • When traveling for work, Saturday and Sunday are now considered paid time too.  Awesome!
  • My weekends are now a pleasure again!  My employer can’t call me without me getting paid so now I can go to movies and attend other social events without being interrupted.
  • The dreaded electronic leash (company cell phone) can now stay at home, and even turned off!  Shoot, I can even leave it at work if I want to (but I don’t leave it at work, I want it in case they call me since it’s an overtime opportunity).
  • If I work over my eight hours on a given day, I get paid for it!
  • Family time is pressure free and much more enjoyable!

I know this doesn’t seem obvious, but I would much rather be an hourly employee than a salaried employee… especially now that I have experienced both!  I truly no longer feel like a corporate slave (or serf, or indentured servant), it’s been a liberating experience…

I bet you wouldn’t have guessed that hourly employment could end up creating a better lifestyle, I know I didn’t…  It was a very pleasant surprise!

Cheers,

MR

 

Why Experimental Learning Is Better Than Book Learning

June 29th, 2011

Let me say that learning from books is a great thing that we have all benefited from greatly!  If fact, it would be a sad, sad world if we didn’t have books to learn from.

It’s how we learned the majority of what we know!  Without the existence of book learning, we’d probably still be hunting with bows and arrow to a large degree.   Without books (or any form of reading and learning system), we couldn’t have standards or controls to maintain things.  Yes, learning from book is a very important need in our lives.

But…, are we stifling our creative selves within?  By reading what other tell us to do or think, are we kind of experiencing a mass brainwashing effect?  In some ways, if we all read the same materials that everybody reads, do we have the possibility of becoming more like human lemmings?  Where we blindly follow our discipline off of a cliff?

I think that book learning is great, but you have to think and do our own experiments in life too.  Or try to do something that doesn’t involve following instructions in a book!  Check out the picture of very large (almost life-size) Transformers that a laid off machinist created after losing his job.  He didn’t follow a book to create these mainly Halloween displays, he just did it.  Later he did design a book that explained how he did it, and instruction to do the same, but wow, that’s pretty incredible.

 

Transformers

Transformers

 

I bet this guy is now kind of a local hero (especially to his son and the kids in the area) in his neighborhood, if not his community.  Of course he’s been on the news too!

The point is, that the guy that made these replicas of the Transformer (robots?) didn’t do so because it was in a book, or that it might not be possible.  he did it by experimenting and thinking.  While his example doesn’t solve any real problems in society, it does show that we don’t have to be lemmings following a preordained route to become a member of the mediocracy.

We all dream, but perhaps we should all dream and do.  In the computer world, dreaming without action is call Vaporware.  Step out of your societal rut and experiment in life!  Personally, I did my lunch experiment and while it required more spreadsheet time and a bit more thinking than normal, the end results were very rewarding!

At age 42, Benjamin Franklin was rich and retired!  He then proceeded to become an inventor.  He could have become even richer, but he was already one of the rich men in America, so he never patented his stuff and gave it away to society for free.

Your experiment doesn’t have to be earth shattering!  Start out small, then build up to larger and more grand experiments!

What say you?

MR

 

 

Maximizing Time While Changing Car Oil

June 28th, 2011
Blue Truck

Truck

Well, it’s been 5 months and it’s time to change the oil in my car.

I remember as a teenager and later as a cash poor college student changing the oil myself.  It’s not really a hard task, but I still hate to waste the time doing it especially during finals week…  As a senior in college, I decided that I didn’t have the time and took my care to a Jiffy Lube.  Of course, I took my Operating Systems book so I could read and prepare for an upcoming test while I waited.

Flash forward to today, right now I’m sitting at the much cheaper Walmarts Auto Department again waiting for my car to have the oil changed.  Of course, I’m not just sitting in the sitting room waiting, I’m doing the following during this particular visit:

  1. I’m typing this blog post!
  2. I’m eating a salad at the same time
  3. I hope to read a book after I get 90% of this post done.
  4. I’m dumping off my oil from my lawnmower and snow thrower.
  5. If I have time I’m going to go shopping for some cheap but nutricional food for my diet.
  6. Enjoying a mediocre cup of free coffee from Walmart (lol).

Since I’m not wasting time while I get my oil changed, this experience is actually kind of relaxing and pleasant.  The entire Walmart oil process cost my $30, but that’s not too bad considering I’m getting so much done.

One of my favorite thing to do anymore is maximize my time so I get easy stuff done at the same time, or maybe one complex task grouped with mindless tasks such as eating or waiting for something.

The only way it could be better would be if it were snowing or raining during the change.  In the summer, I don’t mind changing oil as much because the weather is great.

Well, the Walmart employee just pulled my car in the garage to start working on it, and this blog post is done.  Now onto the book that I brought!

Cheers,

MR

How To Be Like A Landlord Without Owning Rental Property

June 27th, 2011

I have a friend at work that has experience what it’s like being a Landlord, even though he doesn’t own rental property.

My friend (let’s call him Phil), has a 4 bedroom house but only 2 kids.  So one year my friend and his wife decided to rent out their extra room.

I believe this is an excellent way to creep into the Landlord/”rental property” owner role.

Here’s why:

  • You don’t take the financial risk of purchasing rental property and trying to make a profit off of it.  If you rent out a room in your house, so you should be able to be profitable each and every month.
  • You don’t have to go through the process of getting a mortgage for the room since you already either have a mortgage or you own your house mortgage free.
  • You still have to deal with collecting monthly rent, but if your tenant misses a payment, it doesn’t hurt as much since you don’t own any extra expense from renting your room out.
  • You draw up a contract between you and your room renter!
  • If you tenant leaves, you are still in great shape financially.
  • You learn to put ads in the paper for renting a room.  This should transfer pretty well to the same process for renting out a rental property.  Plus you get to learn what works and what doesn’t at a low-cost.
  • You get practice running background check!  This should give you experience when you really do take the plunge and buy rental property.

Taking it to the next level, rental property!

Another great thing about renting a room before jumping into the real estate market, is that you can save money from renting out your room, and over a few years you can use that money for a down payment on a rental unit.  This way you reduce the hit on your own personal checking/savings account since the money from renting out your room is money you wouldn’t have had anyway.

Conclusion to Renting a Room

While there are could be some negative to renting out a room in your house, I believe that this reduces that big step from not owning rental real estate to owning it!  I really believe this could make the transition much easier (especially if you are single).

Good Luck,

MR

 

MR Cache: Losing Wealth Because Of Insecurities

June 26th, 2011

Weekly Thoughts:

I was watching a show called Flipping Vegas, when the people who was doing the flipping discovered a hidden wall in the closet.  They tore down the fake drywall sheeting, and they discovered a safe behind the wall.  Now throughout the show, they tried to open the safe. then at the end of the show, they blew it up, and they found silver bars and paper money!

While it was exciting to see the safe get blown up, I felt sad for the family that was socking it away behind that fake wall.  Losing the safe like that means that the owners of the safe, got old and forgot it was there, or died and there kids didn’t know about it.

So here are these flipper, and they are making off with at least $20,000 extra just from the silver and cash (maybe even more money than that).  It’s just sad to see the money sitting behind a fake wall.  It would be especially sad if the previous owner’s family needs it now…  They really should have put that money in the bank or in investments (perhaps bonds).

The moral of the story is don’t let insecurity rule your finances.

Interesting Reads from Other Financial Bloggers

A Second Look at MoneyReasons.com

Carnivals:

 

Conclusion

Sometimes if you playing it too safe, you still lose it all.  Besides who wants to die with a lot of money in a hidden wall while not enjoying that money?  Perhaps they were afraid the world was going to end?

Update (July 6, 2011):  While the message of this post is valid, I just used “Flipping Vegas” as an example that has a wide viewing audience.  The show “Flipping Vegas” is a TV show, so even though they showed a safe, I’m not entire sure I believe that it wasn’t some type of show fabrication to make the show have more pizazz!  I also doubt that in the same episode that the workers dropped that marble counter-top by accident…

Cheers,

MR

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