My Super-Charged Life

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To be prepared is half the victory. ~Miguel De Cervantes

Life is full of surprises.  It pays to prepare yourself.  Things happen to people and families everyday that they are not expecting.  I used to go through life thinking that disasters won’t happen to me.  I don’t anymore.  I’ve lived long enough and have had enough experiences to teach me otherwise.  I’m still very optimistic, but wiser.  I try to prepare myself and my family for the unexpected.

The loss of a friend reinforces the need to prepare.

A friend of mine from high school passed away this last weekend.  She was in her early forties.  She left behind a husband of 25 years, two children, and at least one grandchild.  I didn’t know her that well or keep in touch, but because we went to high school together we have a common bond.

Her passing at such an early age makes me stop and take notice.  She had a medical condition that she wasn’t aware of until it was too late.  It all happened very quickly.  She went into the hospital and in less than a week she was gone.  It is very tragic for her husband and family.

Acknowledging our lack of control is key.

My friend’s death is pretty much a worst-case scenario that most of us don’t even want to contemplate.  I usually refuse to think about such things.  The emotions are difficult to deal with and I like to believe I have life under control.  Acknowledging that bad things can happen means I have to accept that I’m not always in control and that I might have to face some difficult emotional pain.  I don’t like either of these realities.

However, if we fail to acknowledge these types of circumstances as real possibilities, then we will also likely fail to prepare adequately.  This will only compound the problem and may leave us and our family in a serious bind.

Ways to prepare for the unexpected.

Regardless of the situation, there are some things we can do to better prepare ourselves for the unexpected turns that life takes.  Here are some things that you should consider:

1.  Review your insurance coverage.

Money isn’t everything, but its absence only makes a difficult situation worse.  Having adequate insurance coverage in a few certain areas may help you recover quickly from a disaster.  Here are the coverages you should consider:

• Homeowner’s insurance - Does your policy pay replacement value and is the total policy value enough?  I lost a home in a tornado, so I can testify to the value of good homeowner’s insurance.  If you rent, then consider renter’s insurance.
• Term life insurance - You should consider a 20 to 30 year level-term life insurance policy that pays 5 to 10 times your annual income.  Term life insurance is all you need.
• Automobile insurance - Most states require liability insurance, but you should also consider collision and comprehensive coverage.  These coverages pay to fix your car should you be involved in an accident or should your vehicle be damaged in some other way.  You also want to check your policy limits to be sure they are high enough.
• Umbrella insurance - An umbrella policy protects you above and beyond your other insurance coverages.  It usually comes into play if you are sued.  It is a good thing to have and it doesn’t cost that much.
• Disability insurance - Disability insurance pays you if you are hurt and can’t work.  It is often included in an employer’s benefit plan, but you should know the details.  In addition, if you are self-employed, then you will need to buy this on your own.

2.  Have a last will and testament.

Should you die unexpectedly, how do you want your affairs handled?  This is what a will specifies.  If you do not have a will, then the government will decide things for you. 

A will is especially important if you have children.  Who do you want to raise your children should you and your spouse pass away at the same time?  This is a difficult question to answer, but leaving it undone is plain irresponsible.  This is one that I have put off and still need to do myself.

3.  Create an emergency fund.

You should have enough money in a savings account to pay for 3 to 6 months of living expenses in case you lose your job or can’t work.  Knowing that you have this cushion in the bank will help you sleep easier at night.  An emergency fund will also lower your stress in the event of an unexpected disaster.  This means that you will think clearer and make better decisions.  It just gives you a lot more options and can make your life much more comfortable.

4.  Have important documents organized in a safe place.

You do not want to be hunting around for hours to find important documents when life happens.  Gather all your important documents together into one safe place. 

This should include things like your passport, marriage license, insurance policies, a recent bank statement, investment portfolio, your will, a list of emergency contacts, and any other documents you might need close at hand.  Make sure your spouse and another trusted party knows where this information is kept.

5.  Take a first-aid class.

It never hurts to know some first-aid.  This is especially true if you have children or an elderly person living in your home.  Of course, none of us are invincible.  Accidents happen.  When they do, a quick response could save someone’s life or at least mitigate the damage.  First-aid classes are offered by the American Red Cross and don’t cost very much.  It is a great way to invest an afternoon.

6.  Learn to how to ask for assistance.

I’m not the kind of person that likes to have to ask for help.  However, I have learned that it is very hard to do life alone.  I have had some situations crop up in my life that would have been very, very hard to handle without the support, love and assistance of others. 

I suggest thinking in advance about who you would call to help in various scenarios.  It could be a neighbor, friend, family member, or spouse.  Create a list and put it on the fridge.  This can be a real time-saver in an emergency.  Also, don’t forget to include the phone numbers for various emergency services in your community.

A little preparation goes a long way.

It really doesn’t take that much effort to prepare yourself.  However, trust me, it will really pay off when you need it.  I hope you never have to go through a loss like my friend’s family is enduring right now, but if you do, you’ll be glad you took the time to prepare.

What do you do to prepare for the unexpected?

Photo by Chris.Violette

Your FICO score is your credit score.  According to the Fair Isaac Corporation that computes your score, "FICO® risk scores rank-order consumers according to the likelihood that their credit obligations will be paid as expected."  FICO scores are recognized almost universally as the standard in judging a person’s credit worthiness.  However, these scores are not without their issues.  For instance, if you live a debt-free lifestyle, you are likely to have a low FICO score which may have a negative impact on you in certain situations.  In addition, many claim that the FICO score has dumb-downed the lending industry. 

Why does any of this matter?  Well, your credit score is being used for a wide variety of things besides just lending decisions.  Is this fair? 

Is your credit score holding you back from living life to the fullest?

How your FICO score is determined.

There are a number of factors used to determine your FICO score (the chart below came from CML).  The exact formula used to compute it is a closely guarded Fair Isaac Corporation secret.  However, many have said that it is roughly comprised of the factors shown in the chart below:

It is wise to understand as much as possible about your FICO score.  One of the absolute best resources I have found on this subject can be found at the Wisdom Journal.  I highly recommend reading Ron’s article The Truth About Your Credit Score (from an expert) for detailed information.

How your FICO score is used (you might be surprised).

There are a number of ways that your credit score is being used to judge you.  In fact, you might even be surprised by some of them.  If you have a low credit score, this can have a far-reaching impact on your life.  However, a low FICO score can result from simply not borrowing money.  Therefore, is it truly the best indicator of the kind of person you are?  Companies are certainly using it to determine a lot about you.

Your FICO score might be effecting your ability to get a job, a home, certain types of insurance, or even a cell phone! 

Here are just some of the ways that your FICO score is used to discriminate against you:

1.  Mortgage lending and other types of loans.

Okay, this one might seem obvious, but did you know that certain lenders make lending decisions based almost entirely on your FICO score?  It is true!  This means that in certain situations, even though you have plenty of financial means, you may not be able to borrow money to buy your dream house because your FICO score fails to measure up.  For instance, you may have trouble if one or more of the following is true for you:

• Your credit report contains inaccurate or misleading information
• You made some financial mistakes in the past, but have since cleaned up your act
• You have stopped borrowing money

All these things will make your FICO score lower.  What is also concerning is that another person may have a higher FICO score and therefore be preferred over you for the loan when they are out of a job, broke, and without any assets!  The FICO score does not include any of these factors in it’s formula!  With your lower FICO score, even if you do qualify for the mortgage, you will likely pay a higher interest rate.

Dave Ramsey recently went on a rant on his radio show about this very issue.  You should give it a listen.

2.  Getting a job.

That’s right!  Hiring managers often look at your FICO score when considering you for a job.  You could get disqualified or at least edged out simply because your credit score was lower than someone else’s.  Your FICO score is an indicator that organizations use to assess your integrity and whether or not you live up to your obligations. 

Is a person that doesn’t pay their bills a good hire?  Probably not, but is your FICO score the best indicator of your financial success and therefore your worthiness for employment?  Should it be used to disqualify you for a job you really want simply because it is lower than a pre-determined standard?

3.  Renting a house or an apartment.

Sometimes it is advantageous to rent a place to live.  For instance, when you are new to an area and want to learn a little more before jumping into buying a home.  However, if your FICO score isn’t up to snuff, then you may find this a difficult process.

Landlords regularly pull credit scores on applicants.  They want to know if they can count on you to pay your rent.  Your credit history is certainly an apt indicator of future financial behavior, but the FICO score alone does not tell the whole story. 

4.  Purchasing various types of insurance.

Insurers want insight into your personality and behavior.  They want to know if you are the type of person that is likely to file a claim.  They know that people who are financially strapped are more likely to make a claim to try to get their insurance company to pay, even in an iffy situation.  The time it takes to evaluate and fight such claims cost the insurance company money.

Insurance companies regularly use your FICO score to help make this determination.  This means that if you have a low credit score, you may be denied coverage or at the very least, you will pay a higher premium for your coverage.

5.  Signing up for a cell phone.

Again, this is another example of how corporations are using your FICO score to size you up and determine whether or not you qualify for certain products they offer.  If you have a credit score that is lower than an arbitrary figure, the cell phone companies may decide you are too big a financial risk and therefore deny you a contract.

Again, what kicks me in the teeth about this is that the FICO score doesn’t even take into account whether or not you are currently employed!  However, many companies are misusing it by making it one of the only discriminating factors they consider when evaluating your financial history.

What can you do to protect yourself?

Obviously, your FICO score is used in a wide-range of ways.  Again, I pose the question, "Is this fair?"  Is this the right way for you and I to be evaluated?  I don’t think so, but it is going to take time for change to occur.  In the meantime, what do we do?

1.  Don’t use credit to bolster your FICO score.

First, I want to make it clear that I don’t advocate borrowing money simply to maintain a good FICO score.  That doesn’t make sense.  If you have a lower FICO score because you do not borrow money, which is different than having a low score because of bad credit, then you need to seek out companies that will take the time to investigate your situation more closely.  Do you really want to do business with a company that is judging people this way?

2.  Educate others.

I think it is our responsibility to use every opportunity we have to make as many people as possible aware of how their FICO score is being used and abused.  We need to decide as a society if this is really a fair way to judge people and their financial prowess.  Awareness is always the first step in being able to defend yourself.

3.  Monitor your credit history.

Even if you do not borrow money or use credit, you should still occasionally check your credit report to verify it is accurate.  Your credit history is the source for the information used to compute your FICO score.  You may want to check out this legitimate way to get Free FICO Scores & Credit Reports.  If you find errors, then work to get those resolved.

What do you think about the ways companies are using your FICO score?

 

I’m posting this week’s round-up a day early.  It has been an extremely busy week at my day job, so I’ve had fewer posts up this week.  Therefore, I thought I’d go ahead and get this out for all to enjoy.  Have fun reading!

Here’s this week’s awesome articles in each key characteristic of super-charged living:

1. Strives for Excellence    
   Bad Timing Kills Good Habits
   Dale Carnegie’s Thoughts on Freedom and Happiness
2. Financially Wise     
   How to Become a Millionaire in 10 Years
   6 Money Relationship Problems To Help Counsel Yourself Back To Wealth
3. Committed to a Cause    
   10 Ways to Raise Children to USE Drugs
   11 Cheap (and free!) Toys for Young Children
4. Leadership by Example     
   Michael Phelps´ Top 5 Fundamentals for Pulling Off the Impossible
   Who says we need cars and planes for a good life?
5. Entrepreneurial Spirit     
   Dream to Reality - How I Quit My Day Job
   The Myth of Multitasking- How Doing It All Gets Nothing Done
6. Continual Learner  
   7 Sneaky Ways Your Health Insurance Can Save You Money
   Warning Signs of a Home Improvement Scam
7. Adventurous    
   5 Essential Items to Pack for Long-Term Hosteling
   I Wanna Be a Flashpacker: When Backpackers Grow Up or Get Rich

I hope you have a super-charged weekend!  Please leave me a comment and let me know what you think of this week’s links.

Photo by Joshua Rappeneker

My wife recently bought me scuba diving lessons for my birthday.  I am studying the material to obtain my open water recreational diver certification.  As I’ve been going through the book and videos, it occurred to me that there are a lot of parallels between the principals of scuba diving and how to live a rich and fulfilling life.  I thought I’d take this opportunity to share my observations.

1.  Breathe continuously.

This is probably one of the most important things to do as a scuba diver.  Breath is life.  Obviously, while diving and otherwise, we need to breathe to live, but continuous breathing helps to protect a diver’s lungs as the volume of air changes with depth underwater due to changes in pressure. 

Air compresses and expands as you descend and ascend in the water.  If you hold your breath while ascending, you could over expand your lungs causing a serious injury.  Scuba divers avoid this by simply breathing continuously.

In life, we also pass through different situations where the pressure varies greatly.  Sometimes, we experience significant stress at work and at home.  We go through things that we wished we didn’t have to endure. 

The only thing you can do is keep breathing.  You just have to believe that "this too shall pass".  Breathing is symbolic of staying calm and centered.  It is the most basic of our needs.  As long as we are breathing, then we live to fight another day.

2.  Use the buddy system.

In diving, you always want to have a buddy along.  You need a buddy to assist you through all phases of a dive.  Before you dive, you perform a buddy check to verify each other’s scuba gear is set up and functioning properly.

Circumstances can arise while in the water that you cannot resolve on your own.    Your buddy is there to help.  He even serves as your backup air supply should you run out of air or experience a severe malfunction.  Having a buddy along underwater is indispensable and it is just more fun to dive with a companion.

Again, as in diving, so it is in life.  We need friends, family and spouses by our side to help us deal with the difficulties of life and to celebrate the good times with us.  Life is just a much richer experience when we are regularly surrounded with those we love and that love us.

Loved ones keep an eye on us.  They let us know when something in our life is going wrong.  They are there to pick us up and dust us off when we fall.  They tell us we are special and the good ones throw us parties on special occasions!  We all need a buddy or two or three or ten!

3.  Avoid entanglements.

Becoming entangled underwater is a serious problem for a number of reasons.  First, you only have a certain amount of air.  Second, you risk decompression sickness or "the bends" if you stay underwater too long.  Third, it can cause you to panic and do something really stupid.

Divers are cautious to avoid entanglements.  It is prudent to stay clear of heavy  vegetation.  You also need to stay out of underwater caves and sunken vessels without knowledge of these spaces.

Entanglements are equally dangerous in day-to-day living.  When we stray off the high road, we can wind up with a mess on our hands.  From experience, I have found that many of the moral and ethical rules to live by are designed to keep us out of such traps.

Several things that are widely accepted as "normal" behavior today lead to complications in life.  Things like premarital sex, debt, and divorce were once considered taboo, but now are commonplace.  Of course, these things often lead to entanglements that suck the joy out of living.  We should avoid entanglements to minimize the craziness in our life and maximize our fulfillment.

4.  Know your limits.

In order to stay out of trouble while diving, it is imperative that you know your limits and avoid exceeding them.  You have limited air and a limited amount of time that you can stay underwater without risking decompression sickness.  You have to plan and execute your dive accordingly.

In addition, every diver has limited experience.  No one has been diving at every possible dive site.  Getting cocky and believing that you know it all is dangerous.  This is usually where problems occur. 

In life, we also have to know our limits.  Just about anything done in excess becomes bad.  Take work as an example.  We need to recognize when we are working too hard or too much.  It is important to maintain balance in our life.  Otherwise, we can burn ourselves out and risk hurting our relationships.

We need a plan and some goals to get the most out of life.  We have to keep our behavior in check and avoid becoming overconfident.  We should always have a safety buffer built into life to protect us when things take an unexpected turn.  Knowing your limits and staying within them will enable you to live a rich life!

5.  Have fun!

Scuba diving can be a lot of fun.  The underwater world is full of sights and adventures that you cannot find anywhere else.  The whole point in diving is to have fun and enjoy exploring the wonder found in our oceans and other bodies of water.

I’m just starting out, but I hear that there is also a strong sense of camaraderie among divers.  This just adds to the enjoyment.  It is always more fun when you can share common experiences with others that also have a passion for diving.

Over the years, I’ve learned that although it is great to work hard to try to achieve goals, it is also important to have fun.  You have to take time out in life to enjoy all that you have accomplished.  We get so caught up in trying to get more, we sometimes fail to enjoy what we have.

I do not want to get to the end of my life and realize that I failed to have fun.  So, while we want to be smart about living life, we also want to go out and be crazy once in awhile.  Smile and laugh often.  Surround yourself with others that are happy and fun to be with.  Fun is contagious.  Go catch some!

Get the most out of life and diving!

The "rules" often are designed to help us enjoy ourselves and avoid problems.  This is true in diving as well as in life.  It doesn’t have to be complicated.  We tend to make things that way ourselves.  If we observe some basic guidelines, we can save ourselves a lot of trouble.  Now go out there, have fun, and be safe!

What "rules" do you live by to have fun and excel?

Photos by Franie Frou Frou and SteelCityHobbies and Larsz

"Life is either a great adventure or nothing" ~Helen Keller

We can use simple adventures to get out of the ruts we so often find ourselves in.  An adventure is an activity that involves some uncertainty.  Often we manage our lives down to the last detail leaving no room for adventure.  We then find ourselves unchallenged, bored, and feeling trapped.  If this is where you are at, then it is time to break free of the routine, open yourself to exploration, and spice it up a bit.  Finding a little adventure doesn’t have to be expensive, complicated or excessively dangerous.  Here I will offer some ideas that anyone can use to find adventure in their own backyard.

1.  Paddle your way to fun.

Getting out on the water is an excellent way to find a little adventure.  Taking a kayak or canoe out for a few hours to explore a local river, lake, or wildlife preserve is super way to get outdoors.  It will also offer a chance for wildlife viewing.  A kayak or canoe puts you in charge.  You can go wherever you decide.  It gives you the opportunity to discover that beautiful spot that is uniquely yours.  With your paddle in hand, it is hard to turn back.  Who knows what lies just around the next bend?

2.  Ride a rollercoaster.

Get your heart racing and adrenaline flowing!  We visit our local amusement park at least once a year to ride the rollercoasters and other thrill rides.  It will bring out the kid in you again!  It is funny to watch how adults react at amusement parks.  You can literally see them come to life again.  It is as if the rides wake up the adventurous part of them that has been lulled to sleep for so long.

3.  Go camping.

Load up the kids and car it is time to spend a weekend at the state park!  There is something about sleeping under the stars and eating out of an ice chest that will reawaken your primitive side.  Camping is an excellent way to break the doldrums of living in the suburbs.  Find a place in the woods and pitch a tent.  At the very least, it will give you a new appreciation for your home and the daily conveniences you enjoy.

4.  Pedal a trail.

Pull the mountain bike out of the garage, dust it off, air up the tires, and hit the trail!  Pedaling your way through the woods is an adventurous way to spend an afternoon.  It will challenge you mentally and physically.  Start on the easy trails and work your way up to something more technical.  If you don’t own a bike, then check into renting or borrowing one.  Just riding a bike and feeling the breeze on your face will make you feel like a kid again.

5.  Take a hot air balloon ride.

Soaring high over your city in a hot air balloon is an adventure everyone should experience at least once.  Ballooning will give you a different perspective in more ways than one.  You won’t find any long security lines, baggage charges, or fasten seatbelt signs on this flight.  Of course, you will see some fantastic views and experience the thrill of floating quietly through the sky.  The landing is what surprised me.  It was certainly an experience!

6.  Learn to wakeboard.

If you desire something a little more challenging, then give wakeboarding a try.  I’d recommend getting an hour or two of instruction on your first time out.  It will give you a jumpstart to ensure you skim right into fun without delay.  If you water-ski, then you’ll find wakeboarding similar, but with just enough differences to make it  a challenge.  I love the feel of gliding over the water and catching a little air as I pass over the wake!

7.  Get your motor running.

Head out on the highway this weekend on a motorcycle and feel the speed as you crank the throttle back.  There is nothing like the power and freedom you experience hitting the road on a high-octane motorcycle.  If this doesn’t wake up a sense of adventure and excitement in you, then nothing will.  Of course, be sure to wear a helmet and drive defensively.  Motorcycles can be lots of fun, but other drivers don’t always give them the respect they deserve on the road.

8.  Go backpacking in a national park.

Walking off into the woods knowing that you have to survive with what you are carrying on your back is fun and exciting.  There is such a feel of freedom and challenge to it.  National parks are excellent settings for a backpacking trip.  It doesn’t matter if this is your first trip or your hundredth.  Backpacking will ignite your senses and raise you up out of the deepest rut.

9.  Climb your way up a rock face.

Rock climbing will get your heart racing.  It is both a physical and mental challenge.  It requires a great deal of concentration so it is a fantastic way to get your mind off of other things for awhile.  If you are like me and the area where you live lacks a lot of natural settings for rock climbing, then look for an indoor climbing gym.  These gyms will rent you everything you need and also offer instruction to get you started.

10.  Speed across the water.

Boating is always an adventure.  There is nothing like pushing off as the captain of your own vessel.  This is true regardless of whether you are in a ski boat, sailboat, WaveRunner, or pontoon boat.  The feeling of cruising across the water with the wind in your face is invigorating!  You are in control and there tons of places to explore and discover out on the water.

11.  Engage friends in a paintball battle.

What is it about challenging a group of friends to a mock war that is so much fun?  I’m not sure, but paintball will certainly enliven an afternoon.  Why lie around on the couch when you can sneak up on your buddy and pop him with a plastic bubble full of your favorite color?  Paintball will put all your senses on full alert and get you moving.  Find a range near you and become a paintball hero!

Take the initiative and be the fun one!

I hope these ideas will help you create a little adventure in your life very soon.  You need to get out and enjoy all that life has to offer!  It isn’t difficult.  It just takes a little initiative and planning, but trust me, you’ll thank yourself for it.  If you do it, your friends might even start thinking you are the fun one to hang around!

What do you do for adventure?

Photo by Davichi