College Life-How Sweet It Is!

January 25th, 2013

One of my college kids called me the other night.  Well actually she text-ed me.  Because that is what kids do today.  When they have a complex question that involves a response that could exceed 100 words, they of course text.   My standard response when this happens…”call me”.

So the phone call shortly arrived.  The whole purpose for this communication involved a certain movie streaming application that her new television came with last summer.  She has been enjoying this application with no charge associated.  She thought Dad had set it up but I had not.  So, all I can figure is there was some type of free introductory period. The freebie had now ended and daughter was hoping that Dad would either provide his log in to this program, or a credit card so this right of college life could continue.

Matters like this are better not to hit me with at 10pm at night.  I understand just enough about business to know that no company has set up a video streaming app that all one person needs to do is share their password with their college student and pretty soon an entire dorm is streaming movies on your account.  I was not entirely sure how the business model worked, and daughter swore she would keep my login secret (I really believe she would do her best to keep it secret), but I was not buying it.  I enjoy the service, we use it at home, and the last thing I wanted was to get our home blocked because my password was also being used at a college campus not exactly in the same location as my home.   I thought maybe there was a usage model that might solve this issue but as my tired head tried to figure out a solution at the company’s website, the solution hit me.

The solution was so obvious frankly I got a little upset at myself for not having immediately thought of this.  Our goal is for our kids to come out of college debt-free.  So, we cover tuition, room and board and books.  Social items are on the kids so they need to work whenever they can to pay for their social and entertainment.  Same program I was on with my parents and I am forever thankful to them for not forcing me into the world of student loans.   I was not handing over my log in information, so this problem was not mine.  Clearly an entertainment issue…this was daughter’s to decide.  Plus in my research I found out the cost of an unlimited plan was less than two grande lattes at Starbucks!  We know how often college kids make that pit stop!  (To daughter’s credit, she called me later and apologized for expecting me to handle this expense-much appreciated.)

Which brings me to the end of the story but I just could not stop thinking about this.  What a world we live in!  For $8 a month, you can have unlimited movies streaming into your college room.  My first memory was that we had a small black and white TV in my college room and we hardly could watch it through the snow on the screen as we strained to pick up stations 75 miles away!  We did buy record albums (kids-ask your parents what they are) and I remember those being about $6 each.  One album with 40 minutes of music, 35 years ago, cost more than the limited plan for the movie streaming application!  If they sold albums today they probably would be $15!  College kids in the 70′s collected record albums like the Harbaugh family collects coaching victories.  Our kids have no idea how great life is for them.

Of course, I sure hope they find some time to study!

 

Neglect

November 14th, 2012

I had a rough day yesterday.  When it was over I realized I had neglected a number of things that should have been the most important parts of my day.  Instead I was wrapped up in the ridiculous circumstances that just seemed like piling on.   In retrospect, I have to do better.

Then I started to think about neglect.  When you neglect something it generally means it is not important.  There are different levels of neglect though.  The stress of the day yesterday caused me to neglect a few minutes I could have enjoyed with my son and wife.  Those are really important moments to me.  It is not the same as the neglect that occurs when you choose to eat pizza late at night every night!  Or is it?

How do you separate the levels of neglect?  Make a list of the three to five most important things to you.  Mine are my marriage, children, spirituality, business, and volunteer efforts. (Sorry Buddy the dog..you are not on this list but that does not mean I won’t feed you and take you out)!   Now I look at that list and the top three are non-negotiable.  When I have another day that feels like my luck is terrible and the world is crumbling around me, the top three will NEVER be neglected.

What can I neglect?  Eating crummy food, reading trash about politics and opinions that frustrate me, ridiculous reality TV shows, and I know I can keep this list going and going.  It is all things that suck out my remaining time and energy when it should be spent in better ways.

Figure out what you can neglect and what you never want to neglect.  Then lets all do our best to not neglect the important ones again!

What The Election Means to This Small Business Owner

November 7th, 2012

Trying to reason the outcomes from yesterday does no good.  Clearly, we are a very divided country.  I am on the wrong side of the divide and now have to rethink a number of aspects of my life.  I started my working life in the same year Ronald Reagan was elected and lived those first years experiencing first hand the idealism that a “rising tide lifts all ships.”  For the following 30 years I embraced that philosophy and actually worked very hard to be a part of the rising tide.   This morning I now believe that the majority no longer believe in this philosophy.  I want to be patriotic and say great things about the future, but I am first going to have to reconcile that the future will be much different than the one I imagined.

As a business owner, the difficulties of the last four years cannot be exaggerated.  The huge tax bills are not imagined.  Interestingly, Jennifer and I work our tails off 24/7 just to be told that we need to pay our “fair share” while struggling to make a payroll, and pay for a home, college, and groceries.  Strangely, there is not much left over for us.  We are the middle class…with a business and the opportunity to create employment and hopefully, maybe, a better life for our family and employees.  The risks we have taken to get here are substantial with many costing us in ways that include hundreds of thousands of dollars and our enthusiasm for being an employer.  Now, the majority have spoken.  It feels like the majority has kicked people like us to the curb.  I keep hearing “you didn’t build that” in my head and wonder how we are at this point this morning?  For almost 20 years I have employed at least one person.  The taxes we pay, and how little we have at the end of the day, would surprise most readers.  It is not a small burden for the small businessman.

I fear the majority opinion of last night is now a part of the fabric of America.  The majority is of the opinion that people like us, the small business owners of America, need to be bled dry.  Somehow we are not paying our fair share.  Of course, providing jobs is a major problem in this economy.  I believe the job creators in America did speak last night.  We are just not respected or of the majority.  Nor will we likely ever be.

There is not a lot of blood left in this turnip.  Please don’t say wait until 2016.  What happened across America last night was a statement that won’t make a difference in 2016.  People like me are now faced with using this information and adjusting our lives to best take care of our families.

I hoped 2008 was an aberration.  It was not. It is the majority.  My years of hard work and efforts to provide employment and a better life to lots of people now seems destined to be seriously challenged if not near ending.  I believe our President is a good man.  It is not personal.  These are words from the trenches.  I hope I see something that allows me to post that I was wrong.

Hope won’t pay our bills.  And there is no change on the horizon.

One Day

October 26th, 2012

What if you knew today was your last day?

One day.  Not enough time to plan to tackle a bucket list.   Or much of anything.

Except for what is MOST important.

Can’t over think it either..the time will fly by.

How would you spend that one day?

I bet I can answer that for anyone reading this.  Talking to their loved ones.  Being with them if possible.  Being in the moment.

Facebook, Twitter, Linked In…not so much.

We all are distracted by modern life.   Watch any group of people together.  They spend as much time looking at their phone as they do each other.  Maybe more.

If you knew it was your last day..is that how you would spend it?

Or would you want more?

One day..and chances are this one is not it.   Why waste it though?  The people you will spend time with on special occasions, particularly over the next couple of months, are likely who you would want to spend time with on your one day.  Lets get focused on those moments if we agree that they are how we would spend our one day.

If we only knew.

I Survived!

October 10th, 2012

A weird thing happened last week.  I had a birthday and I didn’t die!

I assume since you are reading this that news pleases you.  Maybe that is a bad assumption.  Pleases most of you.

By now, you are likely wondering what in the world I am talking about.  Did you know that a study of over two million people over the course of 20 years found that we are more likely to die on our birthday than any other day?

Sadly, as you review this study, it does appear the statistics are somewhat weighted toward people who take their own lives.  Interestingly, there is a significant number of people who die on their birthday by falling down accidentally.  This might be the best excuse ever for not going out dancing or rock climbing to celebrate a birthday!  Fortunately for me, my birthday did not include any real thrill seeking.  I can recall a birthday or two (lets just say those lovely anniversary dates) where I might have enjoyed myself a lot more than this year.   This was just a nice birthday spent with family and friends, and best of all, spread out over several different days.

Maybe that is the secret to a longer life.  Don’t celebrate your birthday on your birthday!  Spread out the risk by having multiple parties and celebrations.  When I turned 50 everybody joked that October became the month of Joel.  This idea has seemed to catch on with other friends who have enjoyed their own birthday month celebrations during the years of their major anniversaries.  If you are likely to take bigger life threatening risks on those 30, 40 and 50 birthdays, then just spread it out.  Avoid the risk this study suggests.  Improve your mortality!

Plus it is a lot more fun to have a month of parties.  From the sound of this study, I would suggest that avoiding celebrating with family and friends might be depressing.  So those of you that keep your birthday secret, reconsider.  We all need a little celebration for our good health!

How To Spend The Time?

September 3rd, 2012

Three day weekend.  Lots of rain.  More time spent inside than I have spent in a long time.

How to spend the time?

Household projects that have been waiting for months?

Hundreds of emails that will never stop arriving or screaming for a response?

Bills..I can get ahead on handling the bills…

Shopping…uh no thanks unless somehow I can make it a social outing with my wife or kids.  Or pick up some stuff at the hardware store for those household projects!

Watch baseball games on TV…there is a weak spot.

How about spending time sitting around talking with family and friends?  In other words, doing nothing.  Or doing everything.  The most important thing.  Relationships with family and friends.

If you have spent the first two days of this three day-er pursuing your list of personal interests, maybe it is time that on day three, we take time to visit with family and friends.  Check in with loved ones.

Spend time on what really matters.

I know it is cliche…but other people are the only real thing in your life.

Don’t worry, when you die there will likely still be a lot of household chores.

But will there be those relationships?

Three day weekend with a Monday holiday.   Spend it on the best things in your life.

While you are at it, remember those folks laboring for you today and not enjoying a holiday with the same opportunities.  Hopefully they will have another opportunity to do so soon.

 

Occupying Homes As A Solution?

August 23rd, 2012

Seriously..I am torn.  I just don’t believe this is the right way to deal with a lender when you can’t make your previously AGREED TO payments.

I recently became aware of the website OccupyOurHomes.org.  The site is full of heart tugging stories of people who can’t make their mortgage payments and the issues they have had with the banks in attempting to get a modification or stop an eviction.

I have to start with a basic idea here.  All of these people signed mortgage contracts under lawful circumstances.  If it could be ruled they were not of a right mind, or capable of understanding what they executed, then by now the attorneys would be attempting to void out mortgages based on the incompetence of the borrowers.  Not heard that case being made.

As I wander through this site, I see that the one thread that ties all of these people together is that they can’t make the payments they agreed to make, and getting to live in their homes at a lower cost (or even no cost) is a right extended to them by living in America.  Or under God..or some other deity.   The theme, as we now have heard it from the media so many times, is the 99% will have their voices heard.

The reasons I am torn?  A bunch really.

1. I do feel bad for people who are able to enter agreements (contracts) and really not understand the possible repercussions.  On a different scale..I assume most of these folks purchased cars on credit and signed notes for the cars.  If they can’t make the payments, the car gets repossessed.  No modification programs are being advocated by the government for car buyers.  I have heard talk of them for student loan borrowers.  I suppose cars are next..and I guess OccupyOurCars.org has already been acquired.

2. Admitadely, the banks have not shown a lot of excitement to provide modifications.  They have done it under the strong arm-twisting of the federal government..but the reality is they are complicated beasts with a VERY high rate of failure.  As I have witnessed so many times, the people who are unable to make their house payment also often choose to not spend money on maintenance.  The longer the situation exists, the more the value of the home drops (as do the ones around it).  Modifications, due to the high rate of failure, don’t stop this cycle..only prolong it.

3.  As I review the website, it appears there is a lot of good money being spent on this cause.  It in fact troubles me as to where the funds are coming from.  Yesterday, a press release found on AOL Real Estate brought me to my tipping point on this issue:

NEW YORK – Aug. 22, 2012 – The “Occupy Our Homes” movement is taking its anti-foreclosure message to the airwaves. The protesting group, part of the Occupy Wall Street movement that has a network of participants across the country, announced it has launched a national television ad campaign to speak out against foreclosures and show struggling homeowners how they can fight against evictions.

In recent months, the group has staged “sit-in” protests at properties of homeowners facing foreclosure.

The TV ads direct viewers to the OccupyOurHomes.org (Link: http://occupyourhomes.org) website for a field manual on how to “start an occupation,” which details how homeowners can protest a foreclosure using sit-in strategies.

The ads are set to appear on networks like CNN, FOX and MSNBC.

This is not inexpensive advertising!

The great thing about America and our system is there is plenty of room for groups like this to exist.  We do have laws and at some point those laws will need to be enforced.  There are thousands and thousands of people involved in the housing business who have all kinds of empathy for people who made bad decisions.  Nobody really wants people to be put out on the street.  Don’t worry..they won’t be.  There are so many options for renting and public assistance today.  What I have on my mind is who is funding this anti-capitalism, anti-law, protest movement?  And why?

That is what we all should start to be concerned about.   If you have information on this please comment and share so we can all draw our own conclusions.

Reverse Migration

August 13th, 2012

It seems like just the other day I lamented about the change in our lives brought on by the return of our two college students.  We have experienced this migration and disruption for several years now.   The expected total change in lifestyle took place through the summer, but with a little more calm.  I guess that is part of the kids being 21 and having jobs and maybe finding they enjoy mornings more?  Not sure…but as the summer has gone on we have had to start to see our lives change even more significantly.  Our two 18 year olds would also be leaving.  One to Purdue.  The other had a decision to make.  He is our hockey goalie and despite my ranting and raving about the world of hockey when kids reach this age…it didn’t change anything.  He wants to play in college and the colleges like the players to spend an extra year in what is called Juniors.  Tryouts ensued and as the summer rolled on it became clear that his selection, and the best choice for his development as a hockey player and young man, was 2300 miles away in a place we have never been..Medford Oregon.

How do you move a soon to be 19 year old boy across the country?  We spent the summer on that one.  Fortunately we discovered that he qualified for on- line classes from Indiana University.  We really wanted him to not just sleep and play hockey.  Starting his college classes and having the most flexibility for the future was our goal.  Being the partisan that I am I must brag… Indiana University offered the solution.  So we can officially also now say we have four in college!  Bragging rights is what this game is all about!  Look..we are much more broke than you are!

So, three at Purdue and one going to Indiana University while living in Oregon!  While I am not sure this fully qualifies that I finally got one of my kids to go to my school, at least for a semester,  I can feel a little better about how the college savings flow.  If you know anybody who has saved enough to have four kids in college in the same year they have likely either 1. inherited wealth,  2. won the lottery, or 3. sacrificed for years.   We fall under #3.  Maybe this helps a little more to explain my conservatism?  Not an excuse…but a lifestyle choice.

So, the point today is that 30 minutes ago, our son and my wife hopped in his Chevy Silverado to make the trek across country.   My first observation is thank goodness he is a boy.  He is able to move himself and make decisions I have never seen our girls make.  Travel light.  I carried Jennifer’s suitcase downstairs and realized she would pay the suitcase up-charge if she was flying.  She took up 25% of his cargo space and she flies back in a week!  He was lighthearted about it.  He knows his Mom and had saved plenty of room in the covered truck bed for her (suitcase that is)!  Our 8 year old son said his goodbyes and I know I was about to lose it.   I hugged our hockey player/IU student and told him I am proud of him.    I do not believe I could have ever made the decision he made at his age.  As Mom and I said our goodbyes, her face full of tears, I realized just how hard this was going to be for her.   Not the three day drive, but leaving her baby boy so far from home.   This is not a one hour drive to Purdue!

On Thursday I will have a U Haul truck loaded up to deliver the rest of our girls to Purdue.  When I return it will be the 8 year old and me until Mom comes home.  Then it will be just three of us in a house that is now too large for three, but needs to be able to accommodate seven.  The kids do migrate home.  Then they fly the coop again.  It is a stage of life.  One between needs and support, and total independence.  It is a time of growth and excitement, and a heart tug that can’t be described unless you are a parent experiencing it.    The birds have flown from the nest again.  It is quiet.

For some reason, I am sad.

The Real Estate Sales Model

July 9th, 2012

Here is some great economic news for you.  If you have always thought that Realtors (licensed real estate agents who are members of the National Association of Realtors) rake in the dough (just look at that Caddy!) then lets talk about what exciting news came out last week.  Realtors can expect to take home a 13 percent higher income in 2012 as compared to 2011!  Well, before you start licking your chops that you aren’t getting that type of pay increase…lets get behind the numbers a little.

The first thing that I found interesting that these stats told me is an assumption is made that no new Realtors join the industry.  Well, Katy bar the door because all most people will read in the headlines is a 13% pay increase!  So right away this projection is screwed.   Then the NAR projections don’t take into account that real estate is a 80/20 (maybe 90/10) business.  In other words, 80 percent of all the business is done by 20 percent of the members.   Here is how this plays out.  The median income for a Realtor (according to a NAR survey) in 2011 was $34,900.  Mind you this is non-guaranteed commission income!   Now, here is the good news for those who have much optimism.  Seventeen percent of all members grossed $100,000 or more.

It takes years and years to join the 17%.  Years of focus.  Acceptance that the average is more likely than the above average.  Yet..that is how life works also.  The interesting news to me is that if people start flocking to real estate as a career, the average income growth may actually decline!   Only so many sales to spread out among the whole.  And the sales that are occurring are not as numerous as they once were.

Chances are when you meet a Realtor they are financially struggling.  The economics of the business are screwy.  There have been many people through the years who have tried to find a better model.   Nothing has stuck because real estate attracts people who all believe they can be in the 17%.  The question I ask myself every time I read one of these studies is how is the public best served?

More in a future post, but let me ask this…do you think the 83% have the resources to provide the kind of support to assist the public with the largest transaction of most of their lives?  Why does the public not latch onto different models involving buying and selling a home?

Statistical source: http://economistsoutlook.blogs.realtor.org/2012/07/02/realtor%C2%AE-income-forecast/

Hot Fun In The Summertime

May 1st, 2012

OK..I know I am ahead of myself a little bit.  It feels like summer.  Warm air, thunderstorms, baseball and the return of the migrating college student.  It is the return of the college student that annually turns us to anticipation of how much our home life will change over the next few months.   Excuse me if the migration to our home is different than yours.  I have discussed this with enough parents I doubt it.

The migration patterns of a college student are forced on them by the institutions that take so much of our money to provide training that will enable them to survive in society.  The training only goes so far.  The migrating college student often seems to not realize the differences in the world outside academia.  The strange part is unless forced behavior patterns are introduced they will not recognize that outside their institutions the world does not include sleep until noon, proceeded by many hours of reality TV, and finally mass socialization events starting at 11pm.  For these reasons, the annual summer migration pattern where these cocoons of academia no longer provide protection of this lifestyle, create a level of stress on the homes where the migration occurs.

Starting today, we expect the return of our first college student.  Both of our students already have made their presence felt by convincing their brother to come to school over the weekend and provide use of his truck to bring to our home most personal possessions and furnishings.  Of course, with no thought of where these items would be deposited, the brother and I spent Sunday afternoon carrying things to storage and upstairs to bedrooms in preparation for the migration.  Why do we have to handle the migration and all of its baggage also?  The migration is like taking a business trip, where when you reach your hotel you find your favorite big screen TV, chair, couch and reading materials.  Not to mention a full wardrobe of clothing that most likely has hardly been touched (but was needed just in case)!

For months we have enjoyed a lifestyle that includes sleeping through the night at what most of us consider normal hours.  Beginning tonight, I can almost hear the TV’s blaring through our home at 1am, waking me up to the sound of Jersey Shore reruns.  Not to mention that I am accustomed to getting out of bed and not worrying about the bodies deposited on couches throughout the home.   Did I mention the food consumption and lack of parking?  Or finding myself blocked into our driveway by multiple vehicles when trying to leave to go to the office?

My wife and children consider my attitude about this migration a sign of my senility.  They may be right.  I am increasingly a creature of habit.  Just like nature, the migration affects my habits and it causes conflict.  The good news?  Jobs!  Yes, get the student employed quickly in a job where they work eight hours and are tired by late evening!  This seems to make a huge difference in the adaptation of the student to it’s new environment.  If they can’t find one, create one for them!  You are not running college housing and the migration needs to include a rapid adaptation program to the lifestyle of the remainder of the home.  Unless you also have high school students who will be out of school in a month.   At that point all you can do is plan vacations and disrupt the patterns.

True, we love having our kids back home.  It is the adaptation process that is a true test of our patience and now a part of our recognition of summer.  I think I now understand the real reason people  purchase summer homes!