Beating Broke

Personal Finance from the Broke Perspective

Early Morning Reality Check

By 13 Comments

Early yesterday morning, I awoke to my wife jumping out of bed.  “Do you smell smoke?” She asked.  Let me tell you, there are few things that will pull you out of that just woke up groggy state than a question like that.  And, sure enough, I did.  A quick check told me that there was no visible fire or smoke in the upstairs portion of our house.  It wasn’t clear what the source of the smell was.  I quickly ran downstairs to check the rest of the house, fully expecting to find a smoldering spot somewhere.  Nothing.  Down to the basement.  Nothing.  Back upstairs.  Still nothing, but the smell is still there.  I went from room to room, floor to floor, sniffing the air trying to pinpoint where the smell was strongest.  The good news was that it wasn’t getting any stronger, but I still didn’t have  source for it. The only thing that I can find is that the furnace doesn’t seem to be working.

By this point, my wife has gotten the kids up, and is working on getting them dressed just in case we have to make a hasty exit from the house.  There isn’t any immediate danger, I don’t think, but you just never know.  It just so happens that a close friend is a member of the rural fire department here.  We’re in the city fire department district, but it doesn’t hurt to ask, so we called him for some quick advice.  I quickly fill him in, and he suggests that I call the city fire department and have them come check the house for carbon monoxide and also do a hotspot check with their thermal imager.  I certainly didn’t have to be told twice, so that’s exactly what I did.

A couple firefighters show up, give the house a quick once over and come to the same conclusion that I have.  The furnace has gone out.  And, for some reason, has filled the house with the smell that we awoke to.  They can find no hot spots, and the CO tester is not indicating any CO threat.  We cut the power to the furnace, and everyone agrees that there is no immediate threat.  We can go about our business.  Well, with the exception of calling the furnace repair folks in to figure out what’s wrong with the furnace.  Some of you might not think it’s a big deal, but we still haven’t seen 30 degrees in March.  The nightly lows are in the single digits.  In just the short time that the furnace has been out, the temperature in the house has dropped 10 degrees.

Gas Furnace Blower Motor -- IMG_9823I called the furnace repair company, and, to my surprise, they sent one out right away.  Luckily, I caught the guy as he was headed out the door for a call, so he could easily be rerouted to our house.  A couple hours later, and we had a working furnace again.  Turns out, the blower motor that pushes the air through the ductwork and into the house had stopped working.  It lost its bearings.  Literally.  The result was that it started to leak some lubricant oil and actually melted some of the electrical work in its housing which is what made the stink.  The company bills for the repair, so we only have an estimate as to what the cost of the repair will be.  The repairman thinks less than $200.

We’re lucky.  We’re lucky, because our house didn’t catch fire.  We’re lucky, because we aren’t trying to figure out how we can live out of a motel room until our fire damaged house can be repaired, or, worse, until we can find a new house to replace our destroyed house.  We’re lucky, because we aren’t trying to figure out how we’ll replace any of our belongings.  We’re lucky, because we’re safe.

But, to a lesser degree, we’re lucky, because we can afford the repair.  It wasn’t that long ago that an unexpected bill for $200 would have had us wondering if we were going to have to choose bills to go unpaid.  But, we took control of our finances.  We’ve got a long way to go, but, a $200 emergency doesn’t mean that a bill goes unpaid.  And, that makes us feel safe too.

photo credit: stevendepolo

The Role of Optimized Trade in the Worlds Economy

By 5 Comments

First, let’s get the basics out of the way. From the World English Dictionary, we get this definition of Optimize:

2. ( tr ) to plan or carry out (an economic activity) with maximum efficiency

The world is a big place.  There are billions of people that live in various places all around it.  Heck, even at the poles.  What is the role of trade, and, more specifically, the role of optimized trade in the world economy?  A couple of days ago we spoke about isolationism and the stagnation that could occur after an isolationist stance is taken for a long enough time.  The specific example was that eventually the supply and demand would reach an equilibrium.  In truth, an equalized supply and demand trade system is a fully optimized trade system.

In our every day lives, we buy things that are made all around the world.  In fact, it seems that we buy more foreign made items than we do domestic ones.  Why?  The common answer is that it’s cheaper to make these things in foreign countries than it is to make them here.  Why is it cheaper?  Because the trade to and from those countries has become optimized to the point that it’s so efficient that the costs of freighting those items here is still cheaper than making them here.

Freight ShipMaking trade routes more efficient through optimization reduces costs for trade along those routes.  Many of the things that we have today wouldn’t be available to us if we hadn’t optimized the trade routes here.  Consider oranges.  They don’t grow up here in the northern plains.  The only way to get them is to import them from someplace like Florida or California.  If the trade routes between Florida and the northern plains hadn’t been optimized by the invention (and use) of the combustion engine and, later, the invention of the federal highway system, it would make oranges too expensive to ship way up here.  The oranges would either rot on the way here, or the added expense of keeping the oranges from spoiling on the way here would be cost prohibitive.  But, because that trade route has been optimized to a greater degree, it’s possible for me to go to the local grocery store and buy oranges that were grown in Florida for nearly the same price as I would for produce that was grown here.

Optimized trade has a grand role in the worlds economy.  The more optimized the trade becomes the more likely it will be that things will be made in so many more places around the globe.  It will become easier to get authentic items, rather than semi-authentic items made here.  Eventually, when the trade has become optimized fully, a stagnant period will occur.  That scenario is impossible to imagine right now, because there are so many parts of the world that have no access to optimized trade.  We call them 3rd world countries.  They are so far removed from the optimized trade that many of the things that you and I in our 1st world society take for granted are mere dreams for them.  A fully optimized trade system would eliminate that.  Who knows, maybe someone will invent the transporter and we’ll have instant transfer of freight.  Imagine the possibilities!

Image Credit: Freight Ship by SpammT, on Flickr

Breaking Up With Debt

By 3 Comments

Listen, Debt.  I just don’t think this is working out any more.

It’s not you; It’s me.

Broken Heart Cookie 1I just don’t see us going anywhere in the future.  I just don’t feel the same way for you that I did before.  It’s not easy on me, either.  Please.  Don’t cry.  It’ll be ok.

You’ll find someone else.

Someone who wants you; Who needs you.  Someone who can treat you the way you deserve to be treated.  Yes, you will.  There are lots of fish in the sea.  I’m sure there are several that would like you, Debt.

No, there’s nobody else.

I just feel like I need some time without anything holding me down.  Some time to find myself and be free!

I can’t be friends with you, after this.

I’m sorry, but I still find you attractive, and the temptation for a late night debt call would just be too much.  I don’t want to give you any false hope, and I have no emotional feelings for you any more.  I know it seems cruel, but I don’t want to lead you on and make you think there’s anything left between us.

Goodbye, Debt. 

I hope you find happiness and joy and someone who loves you.

Image Credit: Broken Heart Cookie 1 by Olivier GR, on Flickr