Budgeting Healthy Habits How to get the Dough you Knead By David Mint Published by The Wilcox Trading Company Copyright 2013 The Wilcox Trading Company Portland, Oregon Smashwords edition: February 2013 ISBN: This ebook is licensed for your personal enjoyment only This ebook may not be re-sold or given away to other people If you would like to share this book with another person, please purchase an additional copy for each recipient If you’re reading this book and did not purchase it, or it was not purchased for your use only, then please return to Smashwords.com and purchase your own copy Thank you for respecting the hard work of this author Cover design by David Mint at WDesign Adaptation of a photograph taken by David Mint of a piggy bank eating from a jar of coins, circa 2013 Table of Contents Dough: An introduction Give to Caesar what is Caesar's: The Most Important Teaching on Dough Creating an unconventional budget: Tracking your Dough Economize and value your time: The Secret of Extra Dough Additional Healthy Habits: What to with your Extra Dough Conclusion: How to Enjoy your Dough Additional Resources About the Author Dough: An introduction dough -/dō/- noun -1 A thick, malleable mixture of flour and liquid, used for baking into bread or pastry Money: "lots of dough" Dough Unless you work in a bakery or pizza parlor, you probably can't get enough of it As we began to elaborate this current volume, which, at its base, is a presentation of our unconventional budget tips, we knew that it would be necessary to employ a metaphor to keep fellow bakers, who have any number of demands upon their time beyond budgeting, or seeking out metaphors, for that matter, engaged long enough to revolutionize their approach to money, which in turn will give them time to knead dough, ponder metaphors, compose run on sentences, or indulge any number of whims which may be germinating in the dark recesses of their minds at this very moment Most of the human race spends the better part of their waking moments either doing something or wondering what they should be doing Human action is an ultimate given, and, as the band Rush reminds us in their early 80's smash, Freewill, "If you choose not to decide, you still have made a choice." The choices available to most of us are limited to the amount of dough that we have available or lack at any given moment This goal of this volume is to equip you, fellow baker, to dominate your dough situation and bake the loaves, pastries, or crusts in the style and quantities necessary to satiate your desires If we are fortunate, this volume will convince you that the key to happiness is in helping others, however, this is a hypothesis that must be proved by personal experience, and is not the central theme The central theme is dough, more precisely, how to manage your dough If you have been searching for information on budgeting and personal finance for any amount of time, we don't have to tell you that there is an exhaustive amount of material available, and finding good advice that fits your situation, is can be as rare as finding a butcher, baker, and candlestick maker together these days With this in mind, we present these healthy habits as morsels on a platter You may choose to scarf them down in one sitting, which will undoubtedly shock your organism into convulsions, or you can take them in, one at a time, savoring each one while giving your organism adequate time to digest it, maintaining the nutrients and eliminating the waste through the proper channels The organism we speak of is your personal or family economy, which in this volume we refer to as the bakery, for all of us are cooking up one thing or another We recommend that you treat your bakery with the utmost of care This volume is designed to give you the tools to just that If properly used in just the right proportions, these tips will help to ensure that everything you cook up will come out just right back to top ~~~~~~~~~~ Give to Caesar what is Caesar's Before we dive in to the healthy habits with regards to your bakery and your dough, we begin by briefly presenting the most important teaching on money that has ever been recorded The teacher is none other than Jesus the Nazarene, and the teaching is, "Give to Caesar what is Caesar's and to the Lord what is the Lord's" With this statement, Jesus recognizes that everything, dough related or otherwise, belongs to God At the same time, He teaches that God recognizes and enforces private property rights in dealings between men This is often a point of confusion for those who have studied this verse Finally, via this teaching, Jesus creates an eternal separation between a person's soul and their money The following is the full text of the most important teaching on money in the history of the world as it appears in the Gospel of Matthew, Chapter 22 in World English Bible: "15 Then the Pharisees went and took counsel how they might entrap him in his talk 16 They sent their disciples to him, along with the Herodians, saying, “Teacher, we know that you are honest, and teach the way of God in truth, no matter whom you teach, for you aren’t partial to anyone 17 Tell us therefore, what you think? Is it lawful to pay taxes to Caesar, or not?” But Jesus perceived their wickedness, and said, “Why you test me, you hypocrites? 19 Show me the tax money.” 18 They brought to him a denarius 20 He asked them, “Whose is this image and inscription?” 21 They said to him, “Caesar’s.” Then he said to them, “Give therefore to Caesar the things that are Caesar’s, and to God the things that are God’s.” 22 When they heard it, they marveled, and left him, and went away." Now that we have the proper perspective on our dough, it is safe to move into how it should be tracked, earned, kneaded, leavened, baked, stored, and finally, enjoyed back to top ~~~~~~~~~~ Creating an unconventional budget: Tracking your Dough When making dough, it is important to take the proper measurements at all points in the process One must know how much flour and other ingredients they must take from the grocer, as well as how much flour, salt, baking soda, and so on is used in each baking process Many of us have the process of going to the grocer and baking mastered to some degree Where many people struggle in the process is the measuring of the elements needed to make the dough There are certain tendencies that must be dominated so that one can match the inputs and outputs on a consistent basis Most efficient bakers can tell, without referring to a recipe, how much flour is necessary to create any particular loaf Let's face it, the process of choosing the ingredients can be fun, and the joy of baking is only surpassed by the enjoyment of its fruits However, if the inputs and outputs cannot be adequately tracked, the dough will never come out right In the worst of cases, despite the quality and plentitude of inputs, there will be nothing to enjoy at all if they are not properly mixed and baked at just the right temperature The following is a list of tips to keep in mind when creating an unconventional budget Each budget is as unique as its creator, and your budget must never be conventional, even if your oven is The following list is by no means exhaustive, nor is it conventional The purpose of these tips is to stimulate your creativity with regards to budgeting and to get us on the right track as we go down the road of learning a few things It is designed help you, fellow baker, master the process of tracking your dough: Think Easy Maintenance - If you are using a computer spreadsheet to track your dough, use one you are comfortable with Include the kitchen sink - Throw into your budget anything you are currently doing as well as those things you think you may want to which involve shelling out dough Finally add the things you hope you won't have to do, like replacing a major appliance, an oven, for example The simple bakers logic here is that, if your oven happens to break, you will have the consolation of having already contemplated the expense Your budget has allowed you to experience the pain of the broken oven in small doses over time so that, when it happens, you won't take the hit all at once If, on the other hand, your oven hums along just fine all year, you have extra dough for something else Be a Conservative - It is better to underestimate your income and overestimate your expenses and be pleasantly surprised than to assume everything is going to go well and to get shocked when an emergency drains all the dough you had saved up in the freezer We refer to this method of budgeting as "low dough expectations," with apologies to Charles Dickens Once this mentality is mastered, it has the power to change ones life from a series of disappointments peppered with triumphs into an endless adventure filled with pleasant surprises An example of setting low dough expectations in the bakery setting is the following: You, the baker, have just experienced a morning rush that has left your supply of croissants depleted An anxious customer approaches the counters and asks when you might have croissants available? You, the baker, are aware that you have just placed a large batch of croissants in the oven that, according to the aroma, should be ready in a matter of minutes What you tell the anxious customer? In an effort to appease the customer, it may be tempting to say that the sweet smelling croissants will be ready, "any minute now," or employ any number of clichés to let the customer understand that it will not be long However, the time that elapses between the moments you say "any minute now," and the moment that the customer is able to walk out of your bakery with the desired croissant may appear to the already frustrated customer as "any day now." In what is a natural attempt to appease an anxious customer, you, the baker, have placed yourself in an awkward situation The baker who employs low dough expectations, on the other hand, may simply say, "The croissants are in the oven, and will be out sometime this morning." While this leaves the customer in an awkward situation, it remains their awkward situation, and not yours As such, anytime the croissants appear, be they five or thirty minutes, will seem to the customer a pleasant surprise While being a conservative when it comes to budgeting may cause discomfort for a moment, it will allow you to live in peace for the duration of your budget Don't forget taxes - Whether they be of the sales, income, property, or use variety, taxes are unfortunately a large part of the average bakery's budget When you are making dough, it is natural that everyone, including the government, will want a cut While somewhat difficult at first, you will have a clearer picture of your finances if you record your gross paycheck as income and then record the deductions before net pay as expenses or transfers to retirement, flex, or other accounts that are held in your name but difficult to access Even if you have no say in the matter, it is important to know where your dough is going It is a bit painful, but it will help you make some key decisions in the future Most importantly, you will be able to drop the line, "I did (or didn't) something because of the tax consequences," and know what you are talking about Or depreciation - Perhaps the most overlooked expense line in a bakery's budget is that of depreciation, or what may be more easily understood as "the wear and tear expense." Depreciation is simply recognition that anything, a car, house, or oven will deteriorate over time and will likely need to be repaired or replaced Depreciation is a placeholder for the dough you will need to shell out in the future at some unforeseen date for an unforeseen reason Contemplating depreciation allows you to unconsciously develop a rainy dough fund to deal with unexpected repairs or regular maintenance Large ticket purchases: The difference between a good investment and a bad one is often determined at the time of purchase When you are ready to shell out a lot of dough for something, it can pay big to a bit of shopping, kicking the tires, and haggling While for some, haggling may seem uncomfortable and out of character, it is a completely acceptable business practice Being called petty or nit picky may sting for a moment, but regretting the purchase of a car or house can last from three to thirty years Choose the unpleasant moment and live in peace You will save a lot of dough on big-ticket purchases by carefully timing them Learn to buy in season, your season, that is Large ticket items such as cars and houses that are available in winter can be had for a song due to the confluence of a dearth of buyers encountering eager sellers during that time of year Whatever the season, be sure to negotiate a price reduction for any major repairs This will make your depreciation expense, which is a function of the purchase price of an asset divided by its useful life in terms of months, more tolerable Above all, it will help you sleep at night knowing that you've saved the dough necessary for any major repairs at the time you made the purchase Note: Depreciation and asset valuation are part of what we call Balance Sheet budgeting, an essential budgetary element which helps you to account for your dough stores A note on Health insurance - This is perhaps the fastest rising cost for most bakeries Consider focusing on a healthy lifestyle and reducing your health coverage to major medical or other type of high deductible plan However, not give up so much coverage that you risk forgoing necessary treatments in the case of an emergency, you not want to be faced with a tough life or death decision and have it boil down to how much dough you have Assume inflation - Ever since the Federal Reserve took over control of the nation's money supply in 1913, the US Dollar has lost over 95% of its relative purchasing power In 1971 then President Richard Nixon officially took the US Dollar, and by extension the world's monetary system, off of the gold standard This supposedly benign act has caused the aforementioned decline in purchasing power to accelerate This is important if you earn your dough in dollars or any other national currency Today, the value of the dollar continues to decline at a rate somewhere between 2% officially and 10% unofficially each year It is important to recognize the result of this monetary debauchery, namely rising costs, as a fact of life and consciously plan to increase your daily dough intake accordingly Which brings us to income How exactly does one increase their income at a 2-10% pace each year? In other words, what is the secret of earning extra dough? back to top ~~~~~~~~~~ Economize and value your time - The Secret of Extra Dough Bakers throughout the centuries have come to value their time as their greatest asset What good is having dough if one hasn't the time to bake? On the other hand, more often than not, bakers find themselves cooking something up only to realize that they are long on time and short on dough If you, fellow baker, find yourself in the latter category, there are many strategies that bakers through the ages have employed to supplement their dough supplies when necessary The key to all of them is to begin to value yourself and your time more highly than you ever imagined Moonlighting or Self-Employment - Believe it or not, fellow baker, you possess valuable skills that someone, somewhere, is prepared to cough up a great deal of dough for However, it is up to you to identify these skills and to learn who is willing to pay top doughlar for them Start by asking yourself the following questions: What can you to help others when you are not at work? Would they pay you to it? If the answer is yes, you may have just created a second job for yourself If you are good enough at it and charge enough for your services, you may just slip out of your day job and into your dream job without missing a beat Acquire new skills at your present job and constantly seek advancement, which in most cases will increase your chances of getting a doughmotion, which naturally should be recognized in the form of extra dough in your paycheck Even if it doesn't, you should at a minimum ensure that you are gaining skills that another employer will pay the dough you deserve for at some point in the future Passive income - One of the pleasures of making dough is watching it rise once it has been thoroughly worked over When the dough is properly made, one can foresee a time when they can sit back and watch the yeast its work We refer to the work of the yeast as passive income For most, passive income is not an option until one collects social security or can draw on a 401K or other type of public or private retirement plan It must be stated here that waiting for a relative to die is not a retirement plan, at best it is no plan and, at worst, it is sociopathic Dough is sweeter and more nutritious when it has been kneaded with one's own bare hands Sitting back and waiting for the dough of others is generally a waste of time Even if extra dough comes your way via inheritance, lottery winnings, or judicial settlements, the dough will be useless and ultimately dangerous to you if you have not worked to master the art of kneading it On the other hand, extra dough in the hands of an experienced baker is a windfall not only for the baker, but also his or her entire clientele The prospect of passive income as one begins to age is what generally provides the incentive to save when one is in their dough making years Calculating one's anticipated passive income needs will is very important when considering Investments - If you have some input as to how your retirement money is invested, it is best to choose investments that will provide a growing stream of passive income in addition to preserving your existing dough stashes This means investing in companies that make real things which people want and are willing to pay for If there are no good alternatives, the next best thing to is to purchase gold or silver coins and to take possession of them Store them in a hidden safe at your bakery Gold and silver will hold value against a depreciating currency and have the added advantage of incurring no maintenance costs or taxes while you hold them Think of it as freezing your dough in a more attractive form for future use Best of all, when the price of flour soars due to inflation, you will have no problem acquiring the quantities you need to keep operating back to top ~~~~~~~~~~ Additional Healthy Habits: What to with your Extra Dough Avoid accumulating too much debt - Working hard to make dough only to watch it march out the door is discouraging To avoid incurring too much debt, limit your bakery to one or two credit cards with realistic credit limits This will decrease the likelihood that you will give in to the temptation to over spend Create a policy between you and your bakery partners to discuss all unplanned purchases over a certain dollar amount before committing to the purchase There is wisdom in counsel, and often running a purchase by someone else will help one make a rational rather than emotional decision It also provides you with an easy way to excuse yourself from a pushy salesperson Tips on Debt elimination - If you have existing debts, double check your budget to ensure that you have budgeted a surplus with which to pay them back This is an ideal way to employ the depreciation line item that, if you are following our earlier tip, have already included in your budget If your current budget does not provide enough dough to cover everything when debt payments are contemplated, make adjustments to it until it does A good place to start any necessary belt-tightening is within the budget lines that were conservatively estimated the totals when initially creating your budget Begin by paring them back to what you expect to spend if all goes well If there is still not enough, it is time to take the axe out While it is painful to cut expenses, it is easier on all involved if there is forewarning This process is another part of the low dough expectations mentality that is championed earlier in this volume Eliminating existing debt can be painful, and the temptation to incur additional debt in exchange for immediate gratification can be overwhelming It is important to remember that, contrary to popular belief, there is nothing wrong with delaying gratification In many ways, a purchase can be more satisfying if made with funds obtained via a multitude of tiny sacrifices Start paying back the smallest debts first Beginning your debt elimination journey by striving to pay off a smaller debt off will help you build momentum and create habits in order to pay off bigger and bigger debts as you go along This goes against conventional wisdom, which would say that it is best to attack the debts with the highest interest rate first When one is in debt, they not necessarily need to focus on numbers, rather, they need to change their mentality and their habits Changing deeply ingrained habits can be painful and, if one does not see results in the form of a debt extinguished soon after starting, they risk not staying with the program Choosing a small debt that can be paid in a matter of months should provide both the time and incentive to change one's habits and prepare them for a life full of an abundance of dough to both enjoy and share A great resource for this is Gary North's "Deliverance for Debt" Debt reduction course It is free and you can subscribe via email at the following website http://deliverancefromdebt.com/ Stealth Saving - If you not have debts that need to be paid but you would still like to sneak away a little extra money where there will be little or no temptation to spend it, consider paying an extra $5 to $20 on utility, phone, or any other recurring monthly bills each month After a few months, you will have given yourself a month of free utilities and will likely not have missed the dough you managed to sneak away Open a separate savings account - When your dough is visible, it is more likely to be consumed It is important to hide dough from yourself when possible To accomplish this, we recommend opening a separate savings account Fund this account first every month and make it difficult to access, meaning there should be no online banking, checks, ATM cards, etc linked to this account Open it at a separate bank from the one that you normally bank at All of these miniature inconveniences will force you to think twice before using that extra dough Pay cash for items - There is something about cold hard cash that makes one think twice about spending and helps solidify the limit on how much dough is available to be spent at any given time Simply put, cash disappears, plastic doesn't! Keep the change - Pay cash for items and accumulate the change throughout the day At the end of the day, dump it in a 5-gallon water bottle When it is full, take the money to the bank and go on vacation 80 - 10 - 10 plan - The general idea of this plan is that you live on 80% of your dough intake while saving 10% and charitable giving, via giving to your local church or other charitable organizations that you choose to support, the remaining 10% of your dough intake Dividing up the initial distribution of your dough intake by using percentages will assist you in making necessary increases or decreases as your dough intake fluctuates The percentages employed are not as important as the concept of an initial allocation of income The life cycle of a bakery will go through seasons There is a season when the dough intake will be allocated in a manner that more resembles a 98 - 1- plan Other times, it may resemble a 60 - 30 - 10 plan Finally, as one is considering passing the reigns on to the next generation, it may become 20 - - 80 The percentages may move along the spectrum depending upon the needs, plans, and priorities of the bakery We have addressed the first two allocations, living expenses and savings/debt reduction earlier in this volume However, the last allocation of one's dough, that of charitable giving, may come as a mystery Why would someone choose to give away dough that they have so diligently worked to make? Giving, apart from helping keep the lights on at organizations that are engaged in helping those who cannot help themselves, has the incredible habit forming benefit of forcing one to focus on their income God knows that we can spend all day in a defensive position, cutting costs and desperately clinging to maintaining the bakery in its current state This is an expense-based focus on money and it can have many benefits in the material world, but it is worthless in God's Kingdom God designed giving not to separate us from our money, rather, to teach us how to serve and experience blessing in the process God wants you to have an income focus The question, "what can I to serve others that is most highly valued by them?" which we earlier have employed only when looking for ways to supplement our dough intake, should become our constant reflection We once again turn to the teachings of Jesus the Nazarene who declares, "The greatest amongst you shall be servant of all." Giving forces you to focus on your income first, which naturally will force you to focus on serving bread to others rather than maintaining and increasing your own bakery It may seem strange, but serving the greatest number of people has the unique benefit of increasing one's quality of life here on earth, for we were literally made to serve one another back to top ~~~~~~~~~~ Conclusion: How to Enjoy your Dough As each of us labor daily in our individual bakeries, it is important to remember that just outside our doors, any number of fellow bakers are rising at the crack of dawn to make the best of their lot in life While it is important to tend to ones own bakery, it is equally, if not more important, to visit and cheer on others as they cook up their hopes and dreams, praying they will come out right and be enjoyed by many In this volume, we have presented a series of healthy habits which, taken individually or as a whole, will serve to make your bakery run a bit more smoothly However, no matter how much dough one produces, the dough in and of itself will not bring contentment It is in the baking and sharing of the loaves, pastries, and crusts that true contentment lies The point of the bakery in the first place is to feed both ourselves and others, be they members of our immediate family, friends, relatives, or other bakers on the street Whatever you choose to cook up in your bakery, your best to avoid leaving too much dough in the freezer Once you have enough dough to feed your family, peek outside your door and begin looking out for the other bakers as well If you find yourself with extra dough and they are in need, share it without requiring anything in exchange The reward for sharing is in the act For sharing one's surplus is the only healthy addiction known to man, and the dough you give away may leave a taste sweeter than you've ever imagined, both in the mouth of the recipient, and your own back to top ~~~~~~~~~~ Additional Resources The Bible: Daily study of God's word will give wisdom in guidance in every area of your life, finances included Mint.com: A free expense tracking software which accesses your online bank account information once you give it permission Turbotax.com: An online income tax calculation tool There is a charge to file your taxes with the software Tip: To avoid the charge and get the benefits of a free tax advisor, use TurboTax to calculate your taxes, then copy the information to a paper form and mail it in This is a great way to be aware of changes in the tax code without having to hours of research Dailyreckoning.com: A great resource for alternative investments APMEX.com: An online precious metals dealer which sell gold and silver coins at reasonable prices deliverancefromdebt.com: Gary North's debt elimination course mentioned above, free of charge Davidmint.com: A sample budget worksheet in Excel format can be found and downloaded for free at this book's page on our blog back to top ~~~~~~~~~~ About the Author First and foremost, David believes in Jesus, with whom he has a personal relationship David is happily married with two children and lives in Portland, Oregon where he has worked since 2006 He has a Bachelors degree in Business Administration from Colorado State University and an MBA from the Universitat de Barcelona, Spain with over 16 years of experience in Accounting, Finance, Treasury, and Information Systems Consulting positions both in the United States and Spain He is the creator of The Mint, which presents fresh ideas on Economics, Monetary Theory, and Politics You can read The Mint at http://www.davidmint.com and you may contact him at davidminteconomics@gmail.com If you have enjoyed this e-book and wish to contribute to this author's work, it would be much appreciated Please visit http://www.davidmint.com and click on the "Donate" button on the right hand side of the page All donations are accepted by The Wilcox Trading Company via PayPal, are considered sales of the book and, while given and accepted in a charitable spirit, may not be considered charitable donations by the IRS Thanks again and we wish you all the best! back to top ~~~~~THE END~~~~~ ### ... choose to cook up in your bakery, your best to avoid leaving too much dough in the freezer Once you have enough dough to feed your family, peek outside your door and begin looking out for the other... to pay top doughlar for them Start by asking yourself the following questions: What can you to help others when you are not at work? Would they pay you to it? If the answer is yes, you may have... unconventional budget: Tracking your Dough Economize and value your time: The Secret of Extra Dough Additional Healthy Habits: What to with your Extra Dough Conclusion: How to Enjoy your Dough Additional