In an effort at personal development, I am currently reading the long-time bestseller The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change by Stephen R. Covey. I got the book years ago from some sort of corporate team-building workshop but never finished reading it.

I think that many ideas within the book have applications to personal finance. The first habit is to Be Proactive. This is not the same as simply going out and doing many things – that’s being active. Instead, think of proactive as the opposite of reactive. One should consciously choose how they respond to external events. Even being angry is a choice. “Nobody can hurt your feelings unless you let them.”

Circle of Concern vs. Circle of Influence
The Circle of Concern is everything we might be concerned with – from world peace to lunchtime. The Circle of Influence is what we can actually do something about.

Where do you think you should focus your energy? Consider these “if only” thoughts:

• If only I didn’t lose my job due to downsizing.
• If only gas wasn’t so expensive.
• If only my house didn’t plummet in value.
• If only I had a great pension plan like my parents had.
• If only someone could teach me how to invest.

Getting sucked into such thoughts is to dwell on the Circle of Concern; It is a waste of energy and won’t help you at all. The only thing that can help you is to focus on your Circle of Influence. Spend as much time each day on finding a new job as you spent working at your old one. Examine your habits and consume less. Borrow some books on investing. Move forward with a business idea. Then, you might be able to expand your Circle of Influence:

I know, it’s a bit cheesy. But if you listen to yourself carefully, I think you might catch some of these “if only” thoughts popping into your mind. I know I do. There is a very applicable prayer from Alcoholics Anonymous:

God, grant me the serenity to accept the things I cannot change, courage to change the things I can, and the wisdom to know the difference.

Saw Batman today (the free movie tickets worked!). I’m not much of a graphic novel guy, but it turned out to be one of the best movies I’ve seen all year. Side thought: Is it really impressive that a movie broke a box-office revenue record when even a matinee costs $8 now? If the goal is to compare popularity, shouldn’t they just count the number of tickets sold instead? Here are some other personal finance articles from my weekend reading:

The Finance Buff has a guide on buying TIPS directly from the government at auction.

J of BudgetsAreSexy bought himself a frugal Cadillac. Oxymoron? This reminded me that I still want an old Jeep Wrangler. If I view the Jeep as one step closer to being a beach bum, does that mean J secretly wants to be a pimp in his DeVille? 😉

Punny Money asks (using hilarious stick figures) if one should buy or rent a tuxedo. For a long time, a small part of my beach bum dream lifestyle was to die having never worn a tuxedo. I managed to avoid having to wear one at my wedding. Alas, I had to wear one last year while being a groomsman for a friend (all your fault, Joe!). But never shall I buy a tuxedo!

JLP of AllFinancialMatters shares his opinions on brown-bagging lunch as well, and his readers chime in.

As SUVs everywhere are being traded in, The Digerati Life explores the MPG illusion. Saving money on gas by switching cars may not as beneficial as you think.

Lazy Man offers to sell his endorsement at Prosper Lending, and starts a lively debate. Given the losses that many other lenders have been experiencing, I’m quite happy with the estimated 10% ROI on my tiny portfolio.

Boston Gal remarks that you know the economy is bad when the Wall Street Journal pushes libraries. From her commenter Sean of Financial Ramblings – “If CNBC starts running specials on clipping coupons, Colbert will have to raise the threat level.” Ha!

Here are some links from sites in my blogroll, not in the alphabetical order of their blogs, but their names. I tried (very unsuccessfully) to make something clever related to the actual titles when possible. My apologies to the English language.

• 2million decided to open up a bank account in China. How much is $2 million RMB?
• Boston Gal discovers that fake grass is expensive. Yes it is, but could it possible end up more eco-friendly than our current water-thirsty and fertilizer-eating lawns?
• Canadian Capitalist points out that passive investing let you live your life.
• Dong gets Asked: Is the Wii all that? I don’t think so, but I’m never been much of a video game person. It is good for socializing though.
• Emily Brandon interviews folks to find out their stories of unplanned retirements.
• Grant and his Corner Office poses an interesting question about airlines – why are many airlines willing to operate at a loss for so long? All I know is that $15 for the first bag is stupid. If fuel costs are the issue – will we see people being charged by the pound next?
• IndexFundFan shares his May 2008 Portfolio return. So many asset classes!
• J.D. shares another way to Get Rich Slowly by subscribing to Craigslist Search Results to get fast updates on new listings. I still search for cheap Jeep Wranglers and beater Toyota Trucks daily when I take breaks, even though I’m not allowing myself to buy one right now.
• Jim Bargaineered his way into an insurance policy for his engagement ring.
• Michael Muses about Money when he shares a video of a guy trashing his house because it’s in foreclosure. That’ll show the world…
• Patrick asks which shift do you prefer to work for your cash money?
• Single Ma’s Fabulousless shines through when she talks about living life on her terms and doing what she has to do to get what she wants.
• Tricia continues Blogging Away Debt even though sometimes it may feel like a roller coaster.

June 1st is the start of Hurricane season for the East Coast, it’s always Earthquake season on the West Coast, and it’s near peak season for Tornadoes in many states, so in general it’s a good time in general to check up on your disaster plans. While there are several places like FEMA and the Red Cross that will have extensive lists of what you should have, but really, do you keep 3 days worth of food in your house, your car, and at work? Okay, I’m sure some of you do, but I don’t.

Instead, I liked reading about simple and easy things you can do that will still make a big difference if you are out of power and other services for several days. Most of these things are free, or involve slight changes to your buying patterns on stuff you would have bought anyways.

Food: Stockpile and Rotate Your Pantry
I wonder if it is necessary to buy 20 cans of beans or military MREs and stick them in a box somewhere. Chances are that most of us could live off of what we have in our cabinets for a least a few days. To improve on that, just be aware and buy extra of certain staples when they happen to be on sale. Canned soups, vegetables, fruits, peanut butter. Cereal, crackers, pasta, rice. Don’t let them just sit there though, buy more when needed and then eat the items before they get stale. I just put an empty duffel bag in the pantry with a manual can opener inside so I could throw some stuff in there and run if really needed. If the power does go out and you stay at home, remember to eat the perishable food in the refrigerator first, followed by the food in the freezer, so that you can saved the canned goods for last.

Water
If you buy bottled water, keep an extra case, and rotate as needed by the expiration dates so that the water stays fresh. You can also store tap water in old 2-liter soda bottles which are sanitized first with a bit of chlorine bleach. This should cost essentially nothing. During an actual emergency, another trick is to save and use the water held in the tank of your hot water heater.

Cooking and Heating: Keep Your Propane Tank Halfway Full
If you have a propane grill, you can use it for cooking when without power or natural gas. Do not use your grill indoors, though, to avoid carbon monoxide poisoning. If you live in an area where it gets especially cold, there are indoor propane heaters with built-in sensors that will let you heat your house safely. Propane is a lot easier to store safely than gasoline!

Transportation: Keep Your Gas Tank At Least 1/4 Full
So, where is the safest place to store large quantities of gasoline in an emergency? Your car! So stop seeing how close you can get to “E” before filling up. Besides, if you really need to go somewhere in an emergency, you need to go, not stop by at the nearest gas station first. This way you’ll be a good 50-100 miles away before having to stop. Also, having lots of gas means that you can…

Power: Use Your Car Engine For Electricity
I think a great tool to have around is a cheap power inverter (available for $30 including shipping) that will let you plug in lights for your house, a radio/TV/laptop, or just charge your cell phone using your running car. Just plug into your cigarette adapter (lower watts) or connect to your car batter (higher watts). Comes in mighty useful for road trips as well.

Everything Else: Cash
No, it won’t be able to earn any interest, but having a decent amount cash handy can be very helpful. Stores may not take credit cards when there is a blackout due to fraud, which I found when trying to buy some things at my local hardware store during a blackout. Coincidentally, there were having a special on those hand-crank radio/flashlight combos so I picked one up. 🙂 I’m not sure how much is a good amount to have in the house safebox. Between $100-$500?

This list isn’t exhaustive, just what I could think up, so please share your own ideas in the comments.

ISPF of GradMoneyMatters ponders whether parents should influence their children’s college applications. It’s a tough question, even if the parents refuse to pay, it’s not easy for a kid to simply “pay for it themselves” because the current financial aid system assumes the parents will cover a certain amount.

Patrick at CashMoneyLife quits his job and is about to start a new one, but is faced with a counteroffer from his current employer. Tricky situation, but it must be nice to be liked so much.

JD of GetRichSlowly reminds us that college students throw away some sweet crap when the semester ends. I’m sure I threw away some good stuff in my day. When I moved into my first apartment, we bought all the furniture inside from the old tenants for $50. That couch ended up lasting me 10 years…

NCN of No Credit Needed discussed his $100 a day rule to control impulse buying (and the resulting accumulation of junk). $100 a month is more like it for me… unless it involves tasty hole-in-the-wall international food. 🙂

Too late? Got junk? Trent of The Simple Dollar talks about the process of selling everything you don’t want anymore. I think I need to move about three more times, and that will force me to get rid of the last of my idle things.

Finally the New York Times had an article about voluntary simplicity and a family trying to minimize their stuff. Mentioned and via Unclutterer.

It’s wedding season again, and we have a variety of weddings coming up from a mix of close friends, not-so-close friends, relatives, and co-workers. This is probably not polite conversation, but hey, I’m all about discussing otherwise taboo financial topics. So, when deciding on how much to spend on a wedding gift, what factors do you consider?

How Close Are You?
This is simple – do you give more to your closer friends or family? Or are all weddings equally beautiful?

How Fancy Is The Wedding?
This the “at least cover your meal” philosophy. With all this talk about frugal weddings vs. monster weddings, it is clear (after paying for our own wedding) that some weddings have cost about $50 per person, while others will have cost $200 per person. As a guest, do you feel obligated to give a bigger gift when you know the food and setting are more extravagant?

I’m kind of mixed about this philosophy. So if you have two equally close friends, and one decides to throw a mega-bash destination wedding with filet mignon while the other friend has a small gathering in their backyard, you are supposed to give more to the former couple? This also would suggest that if you are not able to attend, then you can give a smaller gift. Hmm.

Your Financial Situation?
Now that we are labeled as a “successful professional couple”, is there more pressure to give a bigger gift? If a person is currently going back to school, are unemployed, or have chosen a career path with a lower assumed salary, do you feel that they should be able to give less?

What factors affect your wedding gift size? (Check all that apply.) Closeness of relationship Cost of wedding How much money you make None of the above View Results  Loading ...

While shopping at Costco yesterday, I was greeted with a peculiar sign:

We bought one bag, which apparently did not require supervisor approval. My weak understanding of all the buzz:

1. Rice prices globally are rising.
2. This is greatly affecting countries like China, Vietnam, India, who are usually great exporters.
3. They may not export as much.
4. US citizens will likely pay more as a result.
5. Big rice buyers like bakeries worried, want to buy lots of rice now.
6. Costco and Sam’s want enough rice to make all their customers happy, so they limit purchases.
7. Buzz from CNN playing this story all day long causes (I think) undue hoarding.

But, why not just raise the prices now? It’s not like a Wii where the price is set by Nintendo. Is this happening near you as well?

More posts from other bloggers that also hopefully made me wiser and smarter:

Millionaire Mommy Next Door reminds us that there is more than one right answer on how to get rich. Lots of wisdom here. While I’m reading all these financial books, I think many people who do get rich think their way is the best way, and the fact that they are rich somehow proves that. It doesn’t!

Mrs. Micah shares what busts her budget. I never though of my hopefulness as costly, but my forgetfulness is definitely up there.

JLP of AllFinancialMatters teams up with his wife to present the five things they want their kids to know about money. Highly sensible knowledge to impart!

SVB’s Digerati Life drops some tips on making 10 ordinary things last longer. It made me feel slightly better about trying not to waste the last of my shampoo by watering it down…

Ginger of GirlsJustWannaHaveFunds discusses mothers deciding whether or not to work after a baby. It’s funny how things change. For a while I was the one who wanted to stay at home with the kids, but now our goals seem to be switched. Hopefully our double-half-time idea pans out. Our financial life test-drive is working out pretty well so far.

More articles from other bloggers:

• Jacob of Early Retirement Extreme explores his minimalist inspirations. I just watched the move Into the Wild this weekend, about a new college grad who abandons his possessions, gives his entire $24,000 savings account to charity, and hitchhikes to Alaska to live in the wilderness. I always like it when people break from the norm, even if I choose not to do it myself.
• Lisa Tiffin has a guest post at Get Rich Slowly about inoculating your kids against advertising. The analogy is great, and may save me a lot of saying “No” in the years to come.
• The Finance Buff explains why he chose a Traditional 401k over a Roth 401(k). I enjoyed his explanation of how your effective tax rate in retirement may be a blend of different tax brackets, often resulting in a lower rate than you might think.
• Singla Ma of Fabulous Financials shares her notes about a workshop for The Professional Woman. After reading this and Suze Orman’s book Women & Money, I have definitely found similar differences in how my wife and I handle things in the workplace.
• JB of Get Rich or Die Trying posted his new monthly budget in detail, all the way down to his Netflix subscription. For the voyeurs.
• Finally, I’d like to congratulate my sister for shopping smart when she found a top she wanted at Gap, but a button loop was broken and it was the last one in her size. Instead of leaving it, or paying full price anyway, she remembered my Home Depot experience and asked politely for a discount… and got 50% off. Now if only I could convince her to open up that IRA on top of funding her 401k… 😉