Why you haven't heard from me lately...

Photo courtesy of *Tiny Dancer*

It's been awful quiet around here lately right? Well I cant say that it's been by design, but I can certainly see that it's been for the better. And for those of you who REALLY stick by @Risk Living, we haven't really been gone at all...

Twitter and Facebook have had a serious impact on how frequently I delve deeper into a personal finance topic. See most of my posts start off as a simple thought or observation. Sometimes, only after I ponder on a thought for a while do I even recognize there might be a post inside my thinking. But with Twitter and Facebook, once I've put that thought or quote out in the open I rarely come back here and unpack that thought the way I used to.

As a blogger I'm learning that there are advantages and disadvantages to tweeting and being 'live' on FB. The advantage is that you get rapid-fire real-time insights into what I see, think, and feel. However, the disadvantage is that once you get accustomed to 'micro-blogging' your way through a day it feels strangely slow and cumbersome to sit down and put together a complete post. One is a hand-grenade: portable, serviceable, and leaves a relatively small mark, while the other is a H-bomb: heavy, broad, and not nearly appropriate for every occasion lol.

As a side-note, I've noticed some pretty impressive spikes of traffic to the site since I've spent more time tweeting and FB'ing. Currently on Twitter I have 1500+ people following the @Risk Living blog! NEVER did I think I would be reaching such a wide audience with the blog and it's focus: Getting OUT of Debt!

Now! Having said all of that, @Risk Living isnt going anywhere, in fact I have HUGE plans for where I'd like to see this site go next. You'll be hearing more on that soon.


Thanks for sticking with us, I hope and pray we are of some help to you!

@W




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Stimulate Me: The Greatest "Story" Ever Told!

Photo Courtesy of kyle/thebookpolice

Growing up, I used to get in BIG trouble for calling someone a liar. Even if they actually were lying! Instead I was encouraged to say "So and so told a 'story'."

This never jived too well with me. A lie is a lie. And there's a BIG LIE being told to you on a daily basis as far as the economy is concer-- um excuse me...

THIS JUST IN...

"Only YOU can prevent this nation's colapse!"

While I was driving home last night listening to talk radio, I heard a politician lay out the steps to strengthening the economy. Basically, he said it was all on YOUR shoulders to fix this. Yes YOU!


"Thank Heaven for the express line, I only have 7 items!"

YOU have to buy brand new American cars, and Flat screen tv's. Oh and while you're at it please prop up the restaurant industry by eating out more so that we can get back to being America the Beautiful... Um and since we're on the subject you would do well to pick up a premium gym membership so that all that eating out doesnt ruin your perfect American figure. Mmmm but come to think of it either way you're gonna need to buy a whole new wardrobe cause either you're gonna lose weight from working out, or gain it from eating out... just a thought. - $igned : Capitol Hill, Wall Street, & The Media.

P.S.: You can't save money and save the country from financial ruin at the same time so dont even try the first one. We're counting on you to do what's right for your fellow Americans...


Emancipation from Stimulation...

I'm hearing more and more about people who want to do the right thing for the 'economy' so they are foregoing paying down their personal debt, and spending more of their income to 'help' troubled industries such as dining, travel and retail.

C'mon guys, please dont compromise your responsibilities to your family by taking on any part of this 'national burden' that's being sold to you on the airwaves. THAT IS NOT YOUR JOB!!

If you DO still have a job, it is to provide for your family and manage your personal situation to the best of your means.

Unless you are an elected official, or an economic adviser by profession, this nation's economy woes are NOT your responsibility.


The 4 Walls: The frame of your financial house.

In times like this - no scratch that -at all times you have 4 main responsibilities, or what Dave Ramsey calls the 4 Walls: Food, Shelter, Clothing, and Transportation.

When things are tight, keep those 4 things going, and only those 4 things. Not the 401k, not the greens fees at the country club, not the Costco membership, and not the standing order sent to you monthly from Omaha Steaks or the 12 different magazine subscriptions you currently recive.

While the nation is expecting you to take care of it, I'm expecting you to take care of you.

So what's it gonna be?

@W


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Suze Orman: Your Loss is Her Gain...

Photo courtesy of Glennia


"I'm proud that I make money, that I work hard, that I've created what I've created. But I can tell you this: I haven't hurt one person getting here." - Suze Orman

Oh really Suze?

I usually don't do this. I usually don't 'go after' someone in the public eye. But Suze Orman has pressed my final button, so I just have to get this off my chest.

Orman is considered to be the most recognizable personal-finance expert in the world. And quite possibly the most polarizing as well.

Now anyone who follows this blog knows that I'm a fan of Dave Ramsey's methods for eliminating debt and managing your finances. Not because I have a 'thing' for Dave, but first and foremost because he uses the Bible as a foundation for the principles he teaches. There is proven truth to what he says... he doesn't sugar-coat it, he doesn't water it down.

Suze on the other hand seems to "play to the crowd" a bit too much for my liking. She wont tell you what you NEED to hear all the time, because it may alienate you from being endeared to her.

I just read an article about her on Time.com called "The Queen of Crisis". I highly recommend checking it out. But I digress...

My biggest problem with Suze is that she's not afraid of credit. She wants credit to be your friend in turning your woes into wealth.

Last week I caught the 2am replay of Oprah. (Please don't ask...) Suze Orman was the guest of honor and she was answering every one's "tough" questions about this economy and their money. Questions like: "We're getting married this summer and we want to spend no more than $50,000. After our expenses each month we have about $500 leftover. How can we afford to make this happen?"

Suze told them that they couldn't afford it, but she then went on to tell them HOW they could afford it!

Oh, and how about the couple that wanted to remodel their kitchen and bathroom by taking out a $76,000 Home Equity Line of Credit (HELOC)? Suze said "Go for it!"

Whaaaa? Excuse me? Have you seen property values lately?

To me this is reckless! While we're facing the worst economic situation in the last 80 years, The world's foremost financial expert is on a show with possibly the widest viewership into the 'average American home' and she refuses to be a voice of reason against the mentality of trying to afford what you cannot afford?! Really? At a time like this?!

In the quote at the start of this post, she says she hasn't hurt one person getting to where she is... but I beg to differ. With advise like the variety she gave on Oprah, I shudder to think how many people she hurt in that hour alone. How many people did she just empower to continue to run their finances into the ground?

Ok, and one last question...

Why does she charge $80,000 per speaking engagement? Is her advice really that valuable? As I said before when it comes to the economy, our loss is apparently her gain.

Till next time,

@W



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Beer and Money... A Match Made In...(Nevermind)

Photo courtesy of GraphicsDB.com

During this rollercoaster of a year for the economy, Americans have tightened budgets and pinched pennies in various ways. Many have cut back on driving to ease the cost of gas. Many have skipped the box office ($10 per ticket) in exchange for Redbox ($1 per movie rental). (P.S. - I love you redbox, you've been a wonderful friend to my wife and I while we get out of debt! lol)

But one staple of American life has strangely resisted the downward pull of our slumping economy. Actually this industry is experiencing a record surge in sales instead of the decline seen elsewhere.

So what is this magical product? I bet you would say Oil, or Gas, but you'd be wrong... well kinda wrong because they're not the product I'm talking about in this instance.

Homer Simpson would call it DUFF... er - I mean BEER.

For 2008 beer prices are up 7% over the past year as brewers passed on higher manufacturing costs to consumers.... BUT...2008 sales are also up 6.8% as well! It would be one thing if they jacked up the prices and usage remained roughly the same... but you actually mean to tell me that people are paying more for it, and STILL buying more of it at the same time? Is it really that deep America?!

Well in a word... Yes.

See, beer and alcohol are about as close to the perfect 'product' as we'll ever see. When people celebrate, they get drunk. When people wallow in their sorrows, they get drunk. Got that huge promotion? Let's go get drunk. Just got fired after 20 years with the company? Hmmm... I know, let's go get drunk! (and now go look at the picture for this post again lol.... deep aint it?)

And as most of you know firsthand, or have *ahem* 'heard' from others, drinking aint cheap! lol

Still, you have to tip your hat to anyone who has the moral ambivalence to brew and market beer and alcohol. It fits virtually any occassion. unless you dont drink that is...

Making money off of people's joy and pain comes off a bit parasitic or opportunistic to me. In a way it reminds me of predatory lenders, which I've seen my fair share of in the past year. But hey, what do I know?

@W

*Just to clarify, I do not condone the consumption of alchol, nor do I partake of it myself. I just wanted to share this observation with you while it was fresh in my mind.

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Food Bank: The McDonald's Mentality Pt. I

Photo courtesy of Goombay*

*Photo was taken in New Orleans after Katrina...

As you can see from my post history, I've been coming back to the relationship between food and money lately. Each time I feel I've exhausted the point, I discover a new facet to examine.

So with that in mind, I'm turing my focus to the largest chain of fast food restaurants, McDonald's. Before I get into it, consider this: McDonald's serves 47 MILLION custermers daily. Let that sink in for a moment.

Now, Surely you're aware of the health risks of eating too much fast food. But if you look past the food, and really consider the mindset behind McDonald's hold on pop culture you'll learn some startling things about the concepts of debt, credit, predatory lending/marketing and consumer loyalty. With these things in mind I just ask that you consider McDonald's to be our 'Metaphor' for all things instant gratification, quick-n-easy, and of little value.

In order to set the stage properly for this series though, I must invite you to open your bible - YES your bible - to see the first example of McDonald's business model...

Jacob & Esau

The story is found in Genesis 25:29-34 (KJV)

29 And Jacob sod pottage: and Esau came from the field, and he was faint:
30 And Esau said to Jacob, Feed me, I pray thee, with that same red pottage; for I am faint: therefore was his name called Edom.
31 And Jacob said, Sell me this day thy birthright.
32 And Esau said, Behold, I am at the point to die: and what profit shall this birthright do to me?
33 And Jacob said, Swear to me this day; and he sware unto him: and he sold his birthright unto Jacob.
34 Then Jacob gave Esau bread and pottage of lentiles; and he did eat and drink, and rose up, and went his way: thus Esau despised his birthright.

Did you miss it? What does this have to do with McDonalds? Well they say a picture is worth a 1000 words so check this out:

(Click to enlarge)

Are you seeing a connection yet? The ad says get a FREE biscuit or sandwich.... but then it says in fine print "With the purchase of ANY medium or large beverage.".... BUT in order to get the 'free' coupon... you have to put in your email address, name, and Date of Birth?!? If my counting is correct that is 2 steps completely removed from FREE.

I hate to tell you but you just pulled an Esau if you signed up for this mess. Why don't you just email them your social security number and drivers license too! Are you THAT hungry? At least Esau had part of an excuse, dude was faint "at the point to die" lol.

See - and I want you to listen to me VERY carefully - THIS IS WHERE IT STARTS. This is exaclty how we get into debt. Early, often and easily. This isnt targeted at you or me, well not really. It's just a fish hook. Dangling in the water for whatever fish will bite the line. Most likely someone younger than us either in age or financial responsibility will see this as a "deal". (As if McDonald's is doing them a favor by extending such an offer.)

Everything of 'value' cant always be quantified in dollars and cents.

You just exchanged permanent personal information, for a nasty chicken sandwich, and didnt even bat an eye while doing so... It's all... become... so simple.

Ba da ba ba baa... It's loving YOU. Because if they can get you to give up your personal information for the 'cost' of a chicken sandwich (and the mandatory drink you purchased, of course) then they KNOW you'll be giving up a few dollars soon. They've got a bite.

Hook, line, and sinker...

It's not identity theft if you sign up willingly. Just like Jacob never 'stole' the birthright from his brother, he sold it to him for chicken noodle soup. Shady? Yes. Manipulative? Yes. Against the law? No.

Stay tuned... this is just the prelude. The gloves are coming off.

@W

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Tired of Rejection, Consumers Turn to Credit Companies For Approval

Photo courtesy of Todd Heisler/The New York Times

A strange thing is happening here in America. People are beginning to use credit-worthiness as a measure of self-esteem. It reminds me of a saying I just made up; Someone is always willing to give you what you want, as long as you pay for it. (Wow, I like that!)

Growing weary of being rejected for choice jobs and being denied by choice colleges, Americans young and old are trying to buy their dreams on credit. What they dont realize is that sometimes they end up paying with their life. Now hold on a minute I'm not saying they're being killed by credit directly, you should know me better than that. But what I am saying is that the stress and pressure of living the "good life" without a "good income" is taking more of a toll on us than we are openly willing to admit.

The New York Times is doing a brilliant series on consumer debt called The Debt Trap and it's as hard hitting and exhaustive in exposing the consumer debt crisis as CNN's Black in America series is in addressing the state of African-Americans in the US. I highly recommend checking them both out!

I keep asking the question "How did we get here?" And no one seems to have the answer. So I guess I'm taking it upon myself to find and provide the answer for all of you.

The more I see stories like the current one on NYT about Diane McLeod, the more I'm aware of the burden I've been given regarding the debt-free message.

Diane started out debt-free just like the rest of us, but the article goes on to explain how marriage, divorce, illness, unemployment, underemployment, wildly irresponsible spending, and now foreclosure have driven her nearly $250k into debt! Strangely enough though, she still continues to get "Pre-approved" offers from a steady stream of credit card companies, even though her credit is now decimated and she cant afford to pay her existing debts!

Here is a excerpt from the article:

"Recently an envelope arrived offering a “pre-qualified” Salute Visa Gold card issued by Urban Bank Trust. “We think you deserve more credit!” it said in bold type. A spokeswoman at Urban Bank said the Salute Visa is part of a program “designed to provide access to credit for folks who would not otherwise qualify for credit.” The Salute Visa offered Ms. McLeod a $300 credit line. But a closer look at the fine print showed that $150 of that would go, as annual fees, to Urban Bank."

Hmmm, quick question: If you cannot 'otherwise qualify' for credit, why are you still being provided with access to it?!? Greed is to blame for most of this mess. Both the greed of consumers to have what they want, when they want it, and live beyond their means as a way of "survival". And the greed of companies to sell you things you cannot afford so that you have to pawn your birthright, your values and your spiritual inheritance to purchase them.

Again, how did we get here?! What happened to our values?

I'm getting into the daily habit of reading a chapter of Proverbs. I read the chapter that matches the date. Yesterday was the 23rd and while reading I read this:

"Do not wear yourself out to get rich; have the wisdom to show constraint."
Proverbs 23:4 (NIV)

I love what this text is saying without saying it. My personal translation would say, "If you show constraint and build your wealth the right way, you will be healthy enough to enjoy what you have earned." No borrowing on credit, no loans, no get rich quick schemes.

Showing constraint in your finances is called a wise thing in this verse...

Aha, that's the answer to my question! I now know how we got here! We're not reading our bibles, duh!

Thanks for reading,

@W

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Our First "Non-emergency" Emergency

Photo courtesy of ultramarineblue

*The names, faces, dialogues, and timelines have been changed to protect the author - er I mean the innocent. lol

Tuesday morning 8:57am
My wife and I woke up, got ready for work, left the house, hopped in the car.... and just SAT there. When I tried to start up the car it seemed like all sorts of crazy things happened all at once and there were all kinds of alien error messages on the display that I'd never seen before. I tinker with the lights, door handles, the key, etc trying to mojo my car to life but It's not happening.

9:20 -- (To my wife) "Well I have that plug-in battery charger in the trunk, let me hook it up and we'll be on our way..."

9:30 -- (To the charger) "What do you mean your batteries are dead?!?" Oh the irony...

9:40 -- (To my wife) "Well, I guess we better just call AAA..."

9:45 -- (To the person on the phone) "What do you mean it's expired?!?"

10:00 -- Thinking...

10:15 -- Still thinking...

10:16 -- At this point *'Husband Panic' sets in. That’s what I like to call it when you know your wife is waiting on you to make a decision but you dont know WHAT to do! And to make it worse, every option you're considering has dollar signs attached to it. * This occurs internally and is completely undetectable by the wife. (Yeah right!)

10:20 -- We do what we must, we use our emergency fund to renew the AAA membership, because well this is a full fledged emergency.

Fast forward to 11:30
AAA arrives. The car is completely dead now, no response at all. He gives us a jump and we decide to try to drive the car for a while to see how it's performing.

12:30pm -- Obviously neither my wife or I are going to work today so we focus on the issue at hand: making sure our car is alright, it's the only one we have... and right now, though it's running, it's not letting us get out of first gear which makes me very very affraid. (My 'Husband Panic' is saying, "$ Please $ don’t $ let $ it $ be $ the $ transmission $!!")

12:45 -- While eating lunch in the car - which has been running since 11:30 and wasting our precious gas away and is now down to 1/8th of a tank - we decide to pray for guidance on what we should do next, and that this not set us back financially.

12:50 -- My wife remembers seeing an auto shop that specializes in servicing our make of car. So we drive over there, talk to the mechanic, and I reluctantly agree to let him run the $90 diagnostic.

1:30 -- He comes back and tells us that ALL of the problems are being caused by a bad battery and that he has reset the onboard computer parameters for us free of charge, and that he is also willing to install the new battery at cost! (without any service chages, etc) Praise God!

2:30 -- A family member came over to the shop to loan us their 2nd vehicle if we needed it, which at this point we do. The costs have slowly been mounting through the day and they have now exhausted our emergency fund.

The AAA, the diagnostic charge, and the replacement battery did us in, but our emergency fund did it's job perfectly!On top of this, I have every reason to be thankful that this emergency was able to be contained within our emergency fund at all! I was thinking of electrical damage ($$$), transmission work ($$$) and possibly engine work as well ($$$), but God protected us from those types of financial difficulties!

Equally important through this ordeal was the poise of my wife, and our ability to be of the same mindset in the midst of the storm. We both saw this as a CLEAR opportunity for God to show himself on our behalf, and He did just that. It was beautiful to see our Spiritual Peace working in tandem with our Financial Peace during this situation!

A friend of mine once defined a financial emergency simply as "Anything that happens that you have no financial provision for." So I guess I can't truly call this an emergency at all, we had the financial provision, and more importantly the Devine provision to weather this particular storm.

Isaiah 26:3 says:

You will keep him in perfect peace, whose mind is stayed on You, because he trusts in You.

Thanks again for joining me,

@W

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A few improvements to the blog...

Photo courtesy of nationalmint

"We appreciate the kind that jingles, but we'd rather have the kind that folds."
Lisa McDowell - Coming to America

If you've been tuning in to this blog, over the past weeks hopefully you will have noticed some major changes. First of all I truly want to thank you for even taking the time to scan this blog at all. So many outlets are competing for your time, attention, and loyalty. It's truly a blessing and an affirmation to have you here as a friend of this site! And so again I say loudly and proudly, THANK YOU for being here!

Here's a breif rundown of what's new:

1) I've been working hard to make this site easier on the eyes by adding relevant images to each of the existing posts!

2)You'll notice that I'm diversifying the content to include videos, exclusive interviews, polls, how-to tutorials, and even guest bloggers from time to time!

3) A custom Google search box has been added to help you easily locate other debt-help resources and content.

4) I've added 2 new and important ways that you can directly help us dump our debt in the form of A) Ad content provided by Google Adsense. And B) By adding PayPal donation links to the sidebar, and to the bottom of each post.

Now, I want to ensure you that @W has in no way SOLD OUT by choosing to add these sources of revenue. I'm not out to beg for your monetary support, but I am willing to leave that open to you as an option if you feel impressed to do so.

Furthermore, let me add that I will never ask you to pay for the content provided on this site, nor will I ever seek to sell any goods or services through the use of this site. This site is strictly a vehicle for encouragement, education, and edification of fellow Christians FIRST and FOREMOST and also fellow debt-dumpers of any other creed.

Once again (yes AGAIN!) thank you for being a friend of @Risk Living!

Adrian Wright - @W

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The $10 Blessing: Integrity Pays in Your Business Dealings

photo courtesy of snacktime2007

**I bet the title had you thinking I was about to post a chainmail message huh? lol

Ok it's Friday and I don't have time for a long post so I'm gonna give you the quick and dirty:

Yesterday I made a large cash withdrawal so that I could envelope our funds for the week. Everything was kosher until I got to the car. While I was allocating the funds into the various envelopes, I kept coming up with an extra $10 bill... so I sat in the car and wondered what to do. Return it? Keep it? Tithe it back to the Lord as thank offering for providing the 'increase'? It was a simple decision. I walked back in the branch walked up to the teller I banked with and said "I'm not sure... but I think you made a mistake," producing the $10 spot at the same time. He looked confused, but said "uh, ok...". I then said, "I'm pretty sure about it, just check your drawer when you close out this evening."

Fast forward to a few hours later... it's 8:40pm and I'm RUSHING home to catch the start of game 4 of the Lakers vs. Celtics .... but before I can go home I need to stop and pay one more bill, which is cool cause it's on the way, not out of the way. Long story short: My wife and I are standing at the window and the teller is counting the money we'd like to have applied toward our bill... BUT HOLD UP SON!! It's short $10 dollars!!.... @W messed up the count yo!!.... what to do?!? I dunno but it's now 8:53 and the "Lake Show" comes on in 7 minutes lol!! So I pull out $10 from my personal money, pay the man, and say to my wife "I'll straighten it out with the bank tomorrow, I know just what happened."

So today I return to the scene of the crime to get my rightful $10 spot back... I had my "combat face" on and walking into the place like I was about business! I've seen this type of situation swing both ways too many times... both for and against the combatant -- er customer. And plus -- let's be real here-- I'm trying to get money 'back' from the $BANK$. You've seen what I've had to say about them in other posts... So anyway I walk in, ask for the branch manager, and tell him the situation. We both walk over to my favorite teller, and before I get there he's like "Mr. Wright, I check my drawer last night at closing time and came up $10 over, so I just deposited the money into your account for you."

Cool. That was that. Romans 8:28 did it's thing again. "All things work together for the good..."

I'm thankful for the number of blessings that came out of that simple miscounted $10 bill. 1) I acted with integrity when given an opportunity to 'get over'. 2) I established trust with my bank teller by acting honestly. 3) They did the same with me in return by depositing the funds into our account. 4) The Envelope System once again proved it's worth to us. I might not have noticed so easily where the $10 should've been if I was just banking online and paying with my debit card.

This experience gives a new meaning to the saying "Count your blessings" right?

Now back to what I was saying about the chainmail... if you forward this to 10 people as fast as you can, you will broaden my readership and I will instantly thank you! "Thank you!" (See how fast that was? I did my part...lol)

God bless,

@W