An Essential Idea

On May 7, 2020June 15, 2020 By Alan MorganIn Finance

This quarantine has me missing my local hockey rink, all this downtime and no where to skate. Ice rinks in the south typically operate on thin profit margins.

Once described to me by a rink owner, it’s usually the third owner who can keep the doors open. The first two buy all the required equipment and sell for pennies on the dollar at, or near, bankruptcy due to debt and operating costs.

Ice rinks are a tough business, often without bailouts or lenient lending policies. (Essential services, you bet. Have you ever seen a hockey player go 100 days without skating? It’s not a pretty sight.)

Lo and behold, I receive a follow-up email to buy a synthetic rink for the backyard (Yes, I’m on that distribution list).

The first synthetic rinks were expensive and crude, like skating on a waxy jungle gym. The new versions are much more affordable, and so glassy smooth, graceful figure skaters train on them.

That’s the beauty of innovation, someone is actively working to bring a product to the market so my kids and I can have a few moments of sanity in the backyard. Despite the best efforts by central bankers, there’s risk for that innovator – I may wait for another advancement in technology before trading my money for their product – and yet the longer this quarantine drags on, the more likely that transaction will occur.

But don’t tell me tell that a rink owner, or synthetic ice creator isn’t essential, the quality time with my kids and the mouths that innovator is feeding at their home say otherwise.

Selling All You Have

On May 26, 2017June 7, 2017 By Alan MorganIn Finance

The kingdom of heaven is like treasure hidden in a field, which a man found and covered up. Then in his joy he goes and sells all that he has and buys that field.

Matthew 13:44

The English word sells use here might limit the impact of what was being communicated. The word pōleō* means barter, and has less financial limitations than sell. Barter or exchange all assets available, even the resource without a readily defined cash value.

The all used in this statement has no limits.

This opens the door to exchange assets like time, talent. Even the ability to earn future income would all be used exchange. An item I withhold from the implication of this verse is my attention. I have dearly valued the ability to pick and choose how I pick the thoughts to focus and to engage. Listen to this radio station, or download this podcast, click on this link – there’s likely millions of these subtle moments everyday.

I would like to trade my ability to wistfully bounce my attention for a total captivation of Christ.

*Transliterated from Greek since I haven’t yet taken up the Greek alphabet.

Pay The First Things First

On May 16, 2017May 31, 2017 By Alan MorganIn Finance

Important Expense Rank expenses by importance from the most to the least, then pay the most important items with the first dollar received each month.

This seems too obvious to state, but the quickest path to financial trouble is to pay expenses of lower importance before paying the essentials.

Shelter, food and tithe (if given with joy) would be the first expenses for many households. Even if lower priority expenses are paid first, these higher priority items will be looming and require payment.

Shelter may include mortgage, rent, Homeowners’ dues or home insurance, as applicable, but if the expense is required, then pay it first.

Ranking expenses in priority is a mere acceptance of the finite nature of monthly income. Steven Covey popularized the term First Things First as a time management strategy, because time is another finite resource. Covey organizes tasks in a matrix of their urgency and importance.

Likewise, expenses can be urgent – A/C needs repair in the middle of the summer, or a vehicle requires a new tire and expenses are none-urgent items like monthly savings. All three items are important and must be done. The failure to recognize savings as important (but not urgent) will create more urgent expenses in the future. Savings minimizes the occurrence of urgent expenses to pull from monthly income.