Multitasking Isn’t Real

by Jon Griffith on September 5, 2010

The only way two tasks that require thought can be completed simultaneously is to have two systems processing the information required to actually complete the steps of that task.

So many people believe that they “multi-task” when the truth of the matter is that they can only do one thing at a time.  People who argue that they’re are good multi-taskers are in denial.  They are simply able to juggle more than one task at a time, but the completion of that task still happens in sequence.

“I’m a good multi-tasker.” No, really, you’re not.  You’re good at managing a complex series of events that lead to completing multiple tasks in no particular order, and if those tasks that you do are never the same, then you’ll never have an opportunity to nail down the order of events enough to get good at performing them.

There are plenty of things that our brains do without us thinking about it, but that cannot be attributed to “multi-tasking skills.”  That’s just reflex, and learned behavior.  In order to ride your unicycle to complete a task, you need to be able to ride without falling off.  You could argue that riding a unicycle and delivering a package is multi-tasking, in which case, you’d be wrong, because riding a bike is not a task that you have set out to complete.  It’s a function of the task, and you’re so good at it, that you don’t have to think about it.  If you did think about it, you’d probably miss your first turn, or crash into someone.

Give the good ole idea of multi-tasking a shot.  Have someone tell you a story while you write an e-mail to a friend.  See which one has more holes in it, your e-mail, or their story, once you’re done.

Like I mentioned before, the only way to multi-task is to have at least two or more systems processing information at the same time, like a computer with two processors, or a person with two brains.  Since none of us have two brains without a corresponding symbiotic relationship with another person attached to our body, it’s not ever going to happen, consciously.

The interesting part about this is that those who recognize that they cannot do more than one thing at a time often take the time to complete what they’re working on before they start something new.  Not only will they complete it faster, because they have focus, but the end result will be better than if they had been distracted by multiple tasks.  It takes practice, and organization to start two tasks before finishing one of them.

Rather than doing a little bit at a time.  Do it all, then move to the next task.  This can also be seen in the principles applied in accordance with Dave Ramsey’s baby steps to financial success.  Focus on one step at a time.  Start it, finish it.  You cannot save money while you’re wasting money.  It’s just not possible.  If you’re pouring money into your 401K, but the gains are being eaten up by interest payments to the bank, then you’re losing ground.  Stop one, and focus on the other until it’s done!

Stop this myth of multi-tasking.  It’s not real.  In fact, I think it’s an excuse for chaos.

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Sometimes Settling for Less is Exactly What You Need

by Jon Griffith on September 3, 2010

Post image for Sometimes Settling for Less is Exactly What You Need

Before I discovered Ramsey, I was in a rather destructive pattern.  My credit card was my backup funding.  This is flawed thinking, and will absolutely get you in trouble if you’re holding credit cards as emergency funds.  Guess what, it’s not even real money, and your credit card company has every right to reduce your line of credit whenever they see fit.

Note:  If you bow to the almighty FICO god, thinking your credit score is some sort of measure of success or source of self-worth, then you’re bound to be in debt, for a long time.  Break that bond.

My income is dependent 100% on commissions from home sales.  By helping you get yourself out of a sinking ship, your lender is willing to allow compensation to the brokers involved, because banks aren’t in the real estate business, and the commissions they allow are far less than the costs of litigation due inexperienced real estate dealings.  Banks don’t want to be in real estate.

Debt Settlement Companies

Just like any other service that we order to make our lives more convenient, whether it be maid service, public accountants, piano teachers, or anything else, the service can be well worth what you pay.  And then there’s debt reduction companies.  Most of these services are run by unscrupulous individuals who know that while you possess the skills required to be in debt and use a credit card, you probably don’t possess the skills you need to effectively negotiate a settlement with your lenders to be release for less than you owe.  They know that you’re probably feeling bullied by your lenders, and you don’t have the fortitude to stand up to them when they treat you disrespectfully.  After all, you are the customer, and why should you be treated like that?

Debt reduction companies are, for the most part rip-offs.  In fact, their sales pitch typically has you believing that you have a right to not pay your debts.  They take your money up-front, and then over time, to negotiate with the credit card company with which you have the agreement. It’s good money after bad.  Don’t fall prey to these debt reduction scams.  It’s not necessary.  They’re simply doing exactly the same thing you could do on your own, if you knew how. Thesis

When and Why Will A Lender Settle?

When they aren’t getting paid.  That’s the bottom line.  If a lender sees that the risk in having their money in your hands has become too great because you’ve stopped paying them, they’ll jump at the chance to recover some of their funds.  Notice, I mentioned some of their funds. The reason they’ll settle is because they can’t make money if they don’t have it, and they make their money by lending to other people like you, who show less risk.  As soon as they can take what you’re able to give and lend it to someone else, they’ll do it.

But I Owe, So I Should Pay

That’s right.  You do owe.  You borrowed the money, and you should pay it back.  However, the laws of physics come into play here.  If you’re taking care of the 5 basic necesseties of life and you still don’t have money to pay your debt obligations, it’s time to start the process.  Once you settle, morally, you still owe the money, even if the lender has written it off.  In time, it would be wise to come to grips with that debt, and eventually offer to pay it back.

So What is the Process?

Note:  Get ready, you’re probably going to be getting lots of phone calls.  If you’re smart, you’ll get yourself a new number and update your lenders on that new number before you get going on this process.  Keep this number separate from your normal lines of communication, so you know what’s a collection call, and what’s not.

Step 1: Stop paying your bill.  I know, it sounds crazy, but if by paying your monthly bill, you’re falling behind in day to day living, like being able to eat, or keep your lights on, then you should already have stopped paying anyway. By the time you’ve reached this point, you’ll probably already have learned this lesson.

Note:  As soon as you’re able to, whether it be by increasing your pay, or cutting other costs, start socking away money for the settlement.  Your credit card company will probably propose multiple payments for your settlement.  You want to do it in one lump sum if you can.

There’s a delicate time period between your first missed payment and the time the credit card company sells your debt to a collection agency.  Ideally, you want to deal only with your credit card company, so you don’t have to negotiate additional fees and attorney’s fees, etc.  You don’t want this process to go that far.

Step 2: Wait.  Soon you’ll be receiving phone calls from the lender.  Let it go.  Don’t let the phone calls get you down.  Don’t let them bully you.  You can eventually ignore all of the calls until you’re ready to settle.

Note:  DOCUMENT, DOCUMENT, DOCUMENT.  Use a google calendar to mark down every time they call you, and if you talk to them, make notes on the calendar items about the phone call, what was said, and who you spoke with.  Also note the time of day.  Keeping these details will make you a hero if someone questions your ability to recall events.

Step 3: As soon as you have a chunk of cash, take your proposal to the lender.  Record the phone calls you make to them using a phone app.  I use Recorder for the iPhone, which charges a mere $1.99 for one hour of recording time.  It’s well worth it.

Note:  Open a new checking account with an online bank, like ING Direct to hold the exact amount of your settlement.  Your card company is going to want you to make the payment over the phone, and under no circumstance do you want to give them access to your primary checking or savings account number.  Ideally, you want to settle by sending a certified check via certified mail, return receipt requested, but often they won’t allow that.  So, this is your countermeasure; create an account that contains no more than the amount you’re willing to settle for.

Step 4: Your lender will probably tell you what they’ll be willing to accept. Consider the amount, and if you need to let it go a bit longer, do so.  Eventually you’ll win.  Counter their offer with a lower amount, then wait.

By this time, you’re already poised to give them a payment.  If they’ve accepted your offer, and you’ve recorded this conversation (learn about your local laws regarding phone recordings and how they can be used, or if they can be used as evidence) then you should be good to go.  Make the payment, and wait for their paperwork confirming the settlement.


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How I Turned $370 into $21,000

by Jon Griffith on September 3, 2010

Post image for How I Turned $370 into $21,000

Economies of Scale

Economies of Scale is a term in micro-economics that is used to describe the decreasing cost to produce something as the scale of the operation increases.  Home brewing, for example, requires a basic set of tools and ingredients and time to produce a single batch of beer, which equates to approximately 2.2 cases.  Therefore, producing one batch is relatively expensive.  But, if the manufacturing process was ramped up to hundreds of thousands of gallons of beer, the cost per gallon, or the cost per batch goes down as the quantity produced goes up.

I thought about this the other day when I purchase 4 light bulbs at the grocery store for $1.00.  I know, you get what you pay for, but it reminded me of how efficient the manufacturer must be in order to keep the costs low enough to make a profit on each light bulb at that price.

The Rich Get Richer

Another example of economies of scale is the common phrase “you have to have money to make money.” The more you invest, the more you have working for you, and therefore, the more you’ll return on your investment.  The factor then becomes a question of risk tolerance.  If you put 5 coins in the slot machine, you will earn more if you win, but you’ll also lose more, and slot machines are very high risk, etc.

Cut Costs Using Economies of Scale

Any wholesale goods provider knows that the more they can purchase, the less it will cost them per unit.  The problem with many goods is that they have a shelf life, and they need to be moved, so they can’t just sit around doing nothing.  But what happens when it comes to services?  What happens when you purchase services in bulk, in advance, utilizing a bulk discount?

How I Saved over $600.00

Yesterday I analyzed one single category on my budget, website maintenance. For those of you who aren’t aware, owning a domain name is very inexpensive.  Utilizing that domain name is also very inexpensive, but it is a required cost.  How much should it cost though?

Stupid Tax

For the past few years, I have been tricked into thinking that I’m not spending much on my web hosting needs because of the ridiculously low costs of each website that I have online:

  • centerpoint.cc = $2.95/month.
  • chateaudeviesix.com = $2.77/month.
  • jongriffith.com = $16.55/month.
  • realscottsdaleliving.com = $7.23/month.
  • showseason.com = $2.14/month.

Total expense every month = $31.64/month, or $379.68 per year.  Whoops.  That’s too much money.  I know that I can do better, but here’s the catch.  Had I not looked into it, I wouldn’t know that it was happening.

A New Direction

It took me about 2 hours to do some research on the topic of hosting websites, and I ended up chatting online with a sales representative from HostGator.com.  The service was excellent.  Through the course of the conversation, it became clear to me that I was spending way too much for my current hosting plan, not to mention the frustrations that go along with the particular hosting provider I am currently with.

With HostGator.com, I will be spending a total of $12.95/month for ALL of my websites.  That’s a monthly savings of $18.69, which equates to an annual savings of $224.28.  That’s a 59.1% reduction in cost.  Not only that, but because I’m a first time customer, I’m getting an additional 20% off the bill, so the total monthly cost is $10.33.  That increases my savings to 67.3%.  That means that over the next 3 years, I’ll be saving $767.00 if I make the change.  What’s the catch?

The Catch

I must pay for 3 years in advance.  My standard monthly budget for website hosting has been $40.00.  My one time payment in the upper $300.00 mark will take me WAY over budget, but in order to take advantage of the bulk discount that is being offered, I have to be willing to give them my money now.  It’s a brilliant marketing plan for HostGator.com, because they’ll bank the money now, and it helps them scale up quickly to reduce their costs, making my discounted monthly cost even more profitable.  It’s a great deal for me because I can invest $18.69/month (my savings) more than I was before.

$18.69 saved for 30 years is $6,700.00 but invested at 8% over the same time period in the right type of account could yield an additional $21,300 in free money.

So, to change website hosting providers or not to change?  I think this is a $21,000 decision that’s going to cost me only $370.00.

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Shaytard Is a Ramsey Nut

by Jon Griffith on September 2, 2010

If you’re not in the blogosphere, or you haven’t been here long enough to know who the major players are, then you’re probably not akin the wonders of the interwebs and what they can do for community.

Ever heard of iJustine?  Equals 3?  Shaytard?  Stepped up a notch, these major vloggers (that’s video blogging for ye who are unaware) rank extremely highly on the traffic jam of Interstate Interweb (that’s the internet, get with it.)

Well, I’m not sure why, but Shaycarl, an online personality on the top 50 list of all time internet personalities is where he is because his charismatic delivery of mundane daily family life is intriguing enough to get hooked on as much as the next reality television show.  Only this is real reality.  On occasion I’ll see his latest video when looking at the most recent top viewed videos on Youtube on my iPhone, and today, the following tweets led me to his most recent video, which was oddly inspiring, and strangely awesome!

I love @shaycarl and I love @ramseyshow and I LOVE that @shaycarl loves @ramseyshow! http://j.mp/bAQPJl

@shivelya

How appropriate! Watched this vid from @shaycarl right before sitting down to do our @ramseyshow Sept budget Potty Power http://t.co/d2G1Y1c

@timschmoyer

@ramseyshow This YouTuber is telling people all about you. his name is @shaycarl http://t.co/ZOexkbC

@TheCasperOne

I consider Dave Ramsey to be my financial advisor, and before today, I considered @Shaycarl to be just another strange internet personality.  I now consider him to be a fellow disciple!

Make sure you forward to about 4 minutes and 30 seconds on the timeline, cause that’s where it gets good.

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Adding Another WordPress 3.0 Menu to Thesis

by Jon Griffith on August 4, 2010

Not everything here is about finances or real estate.  My former life was a very technical life, and those skills and the drive to tinker haven’t ended.  As you can see by my various websites, I am a WordPress junkie, and my primary theme is Thesis, by DIYTHEMES.

Today I answered one of my own questions on the forum with a little research and ingenuity.

The question was how do I register a 2nd menu for Thesis and then implement it.

WordPress 3.0 implemented a new menu system which makes building your menus much easier, in my opinion.  Some other programmers out there may not agree, but for the novice php tinker-junkie like myself, it’s perfect.

Thesis Version:  1.8b3

WordPress Version: 3.0

Cost to implement:  $0.00. (there’s the financial section)

In order to make this happen with Thesis, it’s important that you have the Thesis options set to use the WordPress menu system instead of the Thesis menu system.  Once that’s set, you can get to the meat of the matter.

If you don’t know how to utilize hooks in Thesisstop.  You need to understand this process first.  Thesishooks.com is a good place to start to learn how to do this.

Register an Additional Menu for your Thesis Theme

By default, there is only provision for one menu in Thesis when you use the WordPress menu system.  You need to make sure your theme can handle two menus.  Open yourcustom_functions.php file and insert the following code:

<?php
add_action( ‘init’, ‘register_my_menu’ );
function register_my_menu() {
register_nav_menu( ‘sub-menu’, __( ‘Sub Menu’ ) );
}
?>
Make sure that the parameters you set for register_nav_menu match the name of the menu you create in WordPress (sub-menu is the slug, and Sub Menu is the name of the menu.)
Next, write the function and add the hook to display your menu in the custom_functions.php file:
<? function sub_menu() { ?>
<?php wp_nav_menu( array( ‘theme_location’ => ‘sub-menu’ ) ); ?>
<? } ?>
<? add_action(‘thesis_hook_before_header’,'sub_menu’); ?>
That’s it.  Everything you place in the Sub Menu in the WordPress Menu configuration will show up wherever you place this function.  My example places the secondary sub-menu above the header on my site.


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