Thursday, March 18, 2010

No Electricity? No problem...

There was a huge storm system that passed through the region last weekend, which blew down a neighbor's tree and knocked out the power to the entire neighborhood. We were without power from Saturday night (around 8 PM) until Wednesday morning (around 11 AM) - that's a good 87 hours or so without electricity! Yes, I know there have been worse power outage situations, but this is the first time I've experienced one for an extended period of time.

Here's a pic of the aftermath:



It's sad how we all now depend heavily on technology and electricity to live. If we lose one of them, life becomes an "inconvenience." No power = no lights, no heating, no computer, no TV, no internet, etc. Actually, the only thing I had that I could use to communicate with the outside world without having to go outside was my iPhone; even then, I had to use it sparingly to avoid total battery discharge.

We learned to make the most out of it. Since my brothers and I were unable to use our computers and the internet, we weren't isolated in our own rooms, doing our own things; instead, we sat at the kitchen table and talked on Saturday. Good times. We also spent other days at the mall or at Ray's apartment at school with other church brothers. Props and thanks to them for letting Ant and me stay at their place!

One thing that I noticed during this time was a change in living and lifestyle. Once it got dark, there wasn't much I did at home except sleep. That, in turn, allowed me to wake up early with the sunrise. The outage also emphasized a more conservative mentality - definitely conserving electricity, hot water (not sure if this was a problem or not), food storage (eat what you make the day of), etc.

On late Wednesday morning, we saw a caravan of power company vehicles driving through our neighborhood, and we knew that day was the day that our power would be restored. Yep, that was it. Minutes later, the lights, refrigerator, microwave, internet, etc. all came back on. There was so much excitement in the air. Hope has returned!

I guess we could've stayed at a hotel or other temporary housing options, but such a so-called inconvenience was more of a worthwhile experience. It's good to jump out of the comfortable lifestyle and adapt to a less-comfortable one. Would I welcome another power outage? Probably not. But if I had to deal with it, I would have no (or very little) problems/concerns.

Tuesday, March 9, 2010

Designing Your Financial Roadmap

Being at the point in my life where I can turn "old" any minute now (ha ha), I jumped on a webinar by Fidelity titled "Designing Your Financial Roadmap." I mean, it's never too late to think about retirement, right? ;-)

The presenter went over a ton of useful tips that I hope to utilize (most of them, if not all, are not new but always worth sharing):

Budget (yes, the word that many people dread doing)
  • Start or maintain a habit of listing expenses, from the large purchases to small ones (i.e., daily coffee). Write down every penny!
  • Categorize each purchase into ESSENTIAL and NON-ESSENTIAL
  • Create a budget. Where can I cut back?

Retirement FIRST!
  • START EARLY! It's a simple concept: the earlier you start saving for retirement, the more you'll have later.
  • Save 10-15% of annual income towards retirement. Take advantage of your employer's 401k matching options.

Pay down debt
  • Pay off credit card bills in full.
  • Stop charging to credit card, which means paying up front.
  • All that interest could be used for other things - saving for retirement, for a down payment on house, etc.

Emergency fund
  • Short-term funds should be used for emergencies like car breaking down, washer/dryer malfunction/replacement, necessary house repairs.
  • Long-term funds should be used in case of unemployment. 
  • Fidelity recommends saving these funds somewhat liquid accounts, i.e., checking, savings, CDs, or money market accounts.

There were also other suggestions during the webinar like investing in 401k, Roth and Traditional IRAs, etc. A lot of good information, in my opinion. The details could be tweaked for each individual, but the general concept should still apply. Yeah, sounds like general knowledge, but taking action is the challenge.

And I thought life was going to get easier after college and finding a job, haha :-) It has only begun!