Young and Frugal

A key trait of millennials is that we love to be entrepreneurial, we love to take on new tasks, but most of all, we need to know that our ideas are appreciated or at least given the time of day. Being a millennial, these traits are some of the main reasons why I started this blog.Jumping into the workforce where all of my co-workers and bosses are Gen-X and Boomers has been challenging. On one hand it really hasn’t been difficult to impress them, but on the other hand there is no free-flow of ideas. All the people around me seem to think that good ideas can’t come from the bottom of the corporation, and that they always come from the top. Needless to say, it has been a frustrating environment for a millennial to work in.

A couple weeks ago I had a Jerry McGuire moment at work and wrote somewhat of a manifesto for the company, and I must say that it felt great. And it felt even better when I shared it with my boss and I wasn’t fired, in fact he agreed with me! He then proceeded to fall into my generalization that good ideas only come from the top.

Never forget that the free-flow of ideas is something that millennials thrive on. We can build on each other, we can help each other, and maybe some people will start to listen!

All of this takes me back to a phrase that my entrepreneurship professor taught me (one that is impossible to forget):

If you’re scared you’re going to get screwed, you’re never going to get laid.

Vulgar, yes, but it’s also memorable and true. Say you have a business idea, but you’re too scared to share it with people. Then nothing will ever happen (unless you know every aspect…marketing, development, financing…). But say you start sharing it with people, maybe a rich old guy at Starbucks wants to invest, maybe your friend knows a few people who can help you out, or maybe someone helps you build on the idea. Either way, you’re ahead!

But what if someone steals my good idea? Why do you care if someone steals your idea? If it’s your idea I hope that you will have more passion for it than someone else. Sure, greed is a motivator for some, but businesses that are looking to cash in from the start rarely do well. Remember, you can’t fake passion. Entrepreneurs with a passion and a vision are the one’s that surpass expectations. What do Google, Yahoo, Craigslist, Dell, and Starbucks have in common? They all started out with passion and visions, and all are still run by the people that put them on the map. Did other people try to steal their ideas? Yes, absolutely they did, but the people who conceptualized from the beginning have done better. Also, remember that imitation is just another form of flattery. Note: Howard Schultz was not the founder of Starbucks, but it was his vision that grew it from a few stores to what it is today.

My wife and I have essentially been living as if we were making mortgage payments on our new house for the last 6 months, but instead of paying a mortgage (and taxes and insurance and Homeowners Association) it’s all been going into savings for our down payment.

We admit that we are stretching ourselves to buy our first house (I think that’s something that most people do), but as we are re-evaluating our budget (less than a month until we move in!) we have found ourselves looking forward to our raises in the fall (even if it just equates to a cost of living raise) because let’s face it…as much as budgeting is important, no one likes sticking to a strict budget, so we look towards the future at what we will be making and what we can spend (or save) at that point in time

I think our problem is that we are always looking to acquire more. We want more and don’t want to make sacrifices to get more.

As Mary and I caught ourselves looking forward at what we will be earning and what will increase in our budget I thought to myself, why not look backwards?

Why not live on last years salary? Say your salary was X last year and it increased to Y this year. If you live on last years salary and budget you inadvertently save Y-X all year. Then when your salary increases to Z you can live on Y and save Z-Y.

This concept allows you to save more and forces you to permanently (ideally) live below your means. It’s simple, but a great and easy way to save!

As gas passes $3.50 per gallon and rapidly approaches $4.00 per gallon (or it’s already there…sorry CA), Mary and I can’t wait to move into our new house and cut our commute from 32 miles to 15. However in the meantime, we have taken measures to get the most out of our tanks of gas. So here are 10 tips that could help you increase those MPGs and decrease those gas bills!

1. Carpool. Mary and I are lucky enough to work at the same company, so it makes sense for us to carpool. By our calculation, we are saving at least $200 per month by this little step. Sure, it sucks sometimes when one of us has to work later, leaving the other with nothing to do, but we always remind each other how much money and time (Carpool lane) carpooling saves us.

2. Change the oil on time. Staying up to date on engine oil changes helps your car run better and get the most out of your gas. I make sure to change the oil in our Acura every 5,000 miles (Oil Co’s recommend 3,000 miles, car makers say 5,000), and every 7500 miles in our Volvo (synthetic oil).

3. Get a high performance air filter. K&N air filters are expensive, but they pay for themselves in the long run. They come with a 1 million mile warranty because you clean them instead of replace them, plus you can get up to 10% better gas mileage because they allow your engine to breathe better and give you better performance. I received 10% better gas mileage in my old Jeep when I put in a K&N filter. Note: Mr. Dave points out in the comments, that high performance filters are not recommended for some engines like the VW TDi engine.  Though if you have that engine you’re beating all of us on MPG anyway.

4. Inflate the tires. Making sure your tires are inflated to the recommended PSI will increase your gas mileage because a fully inflated tire offers less resistance when you are coasting.

5. Coast. If you have an onboard computer, have you ever set it to give you the instantaneous MPG? You will probably notice that when your foot is off the gas your MPG skyrockets. So if you see a read light ahead let off the gas, there is no need to speed to a stop, it’s just a waste of gas and you’ll have to replace your brakes sooner.

6. A/C or Windows Down? It’s summer, it’s hot, so what do you do? This all depends on what you are doing. If you are driving at highway speeds, roll the windows up and use the A/C, because the drag of the windows being down really hurts the gas mileage. Driving around town? Roll ‘em down!

7. Don’t carry around extra crap! Weight directly affects your gas mileage. The more stuff you have weighing down your car the worse MPG you get. So lose the golf clubs, toolbox, and other random stuff unless you need it.

8. Plan your routes. UPS saved millions of dollars a year in gas by rerouting their trucks to limit the number of left turns, and you can save money too! Plan your routes in the most efficient way possible. Generally right turns are faster and they use less gas waiting at lights than left turns, so why not try it out!

9. Get a gas card! Many credit card companies offer cash back on gas purchases, so why not!? You’re going to be spending the money anyway, so you might as well earn up to 5% cash back. Or even better get a gas company card, brand loyalty pays you in savings!

10. Don’t use E85. What? But the government said it’s going to be our saving grace and I want to help save the environment! I’m all for saving the environment when it is in my financial interest (like compact florescent lights that will pay for themselves), but if it will cost me more money, I’m less likely to do it. E85 is cheaper, and your car may run on it, but according to AutoTrader it contains 27% less energy than 87 Octane (the cheap stuff). That means you get 25% less MPG using E85. The only time it’s in your financial interest is when E85 is less than 73% of the cost of 87 Octane. At my local station, E85 is about 30-40 cents cheaper per gallon than 87 Octane. $3.20 / $3.50 is 91%… not in your financial interest.

I hope you can put these ideas to good use, and if you’ve got any more, feel free to leave them in the comments!

“He get’s bitchy sometimes.  Just understand that it has nothing to do with you, it’s just his personality.”

The words of wisdom from a co-worker on my fourth day in the office, and subsequently his last, rang through my head today as I entered my bosses office and realized he was in one of his “moods.”  I quickly turned on my comedic relief to ease the tension in the room and help to lighten his mood.

Allow me to backtrack, I have a great boss, I have the kind of boss most employees would love to have, he’s not about facetime, he’s about getting work done, and he understands the concept of a work/life balance.  He fights for his employee’s rights and for these reasons I love him.  If we had 360 degree feedback, and I were to write his review, it would definitely be a good one.

The words of my co-worker while I was still in my first week stay with me.  There are days where my boss is one step from seemingly taking it out on me, so I have learned to defuse the situation by making him laugh or letting him vent.  Occasionally I have to stop him and remind him that he isn’t mad at me.  This relationship is my other serious relationship.  Penelope Trunk often writes of having a friend at work who you can work with and who helps you work better.  For better or for worse, for me that person is my boss.

I’ve learned how to cope with my boss, and I’ve learned to defuse situations by comedic relief or just calling him out on it, but I wonder if I would be working where I am now if he had given me his references when I interviewed for the job.  Afterall, I do spend just as much time with him everyday as I do with my wife.

So I ask you this, why is it expected for employers to check references for employees, but the employee doesn’t get to see a reference for his boss before accepting the position?  

Many interview books recommend that you spend upwards of 24 hours with a person before hiring them or accepting their offer, however, no one actually does this, we don’t have the time, so we are forced to base major life decisions on what we can learn in about an hour (if we’re lucky).  

So I ask again why don’t we, the employee, get to check references?

Tonight Mary and I had the chance to eat at a very wealthy person’s house in Dallas.  This house is AMAZING.  This house is probably 10,000 square feet, and they had a “mile of wood trim” throughout their game room.  It was very impressive, and it sits on one of the most visible places in North Dallas, on the corner of a busy intersection.  The house is designed like a castle, and sits far enough back where you hear no road noise and you can’t see any of the streetlights because of the size of the lot and how the house is situated.  I could probably tell most people in Dallas what house it was and they would know exactly what I’m talking about.

The couple who own it are definitely a “power couple,” he’s a doctor, she’s a lawyer.  As I walked through I was thinking about the ridiculous mortgage payment they must have for their $2+million house, until I heard the most amazing thing all night… THEY PAID CASH!    

They built what they could when they could afford it, and while this isn’t for everyone, I applaud them for being debt free and staying together for what I’m sure was a hectic process.  They started the house on January 1, 1990, they moved in to the garage apartment 3 years later, and the house was under continual construction since then.  They just recently finished about 5 years ago, and they really did a great job with it.