The Truth About Money - 5

My boss gave me the opportunity to work on further education and an increase in job responsibility to go with it. Studies have shown over and over that increasing your education is correlated with an increase in wages. In my opinion adding education to OJT is a winning combination. Most couples want a house of their own. Marla and I were able to save about $2000, enough to get a mortgage on our first home through a government sponsored first - time home owner program. I will never forget the heavy sense of obligation we had signing all those papers. Even in a tough economy there are usually special programs like that to help families get started. It pays to investigate.

Of course we also learned that owning your own home means you are responsible for the whole deal so when the back yard flooded we found out how to put in a "french drain." Homes are generally an appreciating asset as long as you keep them up so as long as any work you do on them yourself is up to code and good quality you are earning even more through "sweat equity." During the 8 years we were in that house, we also rebuilt a fallen cedar fence, added a wire fence on the other side, planted trees, built a deck and a large shed, extended the driveway to accommodate an RV, replaced vinyl flooring, and added a nice wood stove for heat. When we sold, we were rewarded for our work with a quick sale and fair price.

Every realtor tells you it is location that makes the difference in the value of a home but it was my wife Marla, not me who has always had a sense for this. We were learning to function as a team in unity and never made a move on some larger purchase unless we really both thought it was best - except for the time I bought an old Ford pickup for too much money that never really did run well and finally blew a head gasket. It probably would not have been a bad rig for a mechanic. The fact is that I just really wanted a pickup. This was the one time I did not consult Consumer Reports or anyone else for that matter - and I paid for it. I had grime smudged repair manuals spare parts somewhere for every vehicle we owned but I was no match for the "Green Monster." Put this one in the loss column and remember to think and pray more next time.

I've learned that important financial lessons come from both the wins and the losses. The lesson from the "Green Monster" and our first home was that there are styles of buying, selling, and ownership for all kinds of families and it is important to find the one that fits for you. For instance, we decided that buying a "fixer-upper" really did not fit our lifestyle. Great for other families - not so great for us. It was a tough lesson for me to learn because it seemed so compelling based on the evidence in the lives of some guys I knew.

Marla found our next home in a neighborhood with better streets. She has proven that she has an eye for location. It was a nice corner lot, near a park (for home educators like us park meant P.E.) Once again, we made modifications both to suit our needs and to upgrade the property. We did some major landscaping. FYI - every home in the Oakbrook neighborhood is built on top of an old river bed which has been cleverly covered with one inch of dirt. Which means every shovel will have to work it's way through rounded rocks anywhere from 1" to 4" in diameter. This project was true "sweat." I'm not sure how much equity it produced but the front yard looked nice. The back yard was a different matter. We added a large deck to deal with part of it and I decided that building raised garden beds beat trying to plow any more of that dirt.

This was also the home where we did the most significant work. I had received an inheritance of $20,000 from an aunt. I'm being open about this because it was definitely an important part of moving us forward. However, it does not help anyone to look at someone else's situation and say, "It must be nice" or "No wonder why they are where they are..." The fact is that we had been living on a razor thin budget for 14 years and were in the black on our own before this very special money came.

The fact that we had learned to live within our means (acting your wage - as our Pastor has put it) allowed us to use that money as any inheritance or special money should be in my opinion. To build wealth for the next generation. We gave 10% to our church. We used another 10% to buy into a plan which would allow our family to take some vacations at nice places for hugely reduced rates (like Eagle Crest - 7 nights for $350). It was living like we had never known. The rest of the money plus a little more was used to build an oversized garage. We had converted the original garage into a school/family room. Before we sold that house, we had also built a large shed, re-roofed, lowered the ceiling and changed lighting in the kitchen, knocked out a wall to open up the floor plan, and of course repaired the drywall in the living room where the bees chewed through.

That was not the only things that got chewed on. There are times when how you respond to pressure makes all the difference. During my stint with the Family Service agency I had several "opportunities to grow." Two of them were strangely related to the same issue God wanted to change in me. It might strike you as odd that a radical behavior change is needed in order to grow financially but I've seen this truth in other people and it was certainly true in my case. The only way I know how to be changed in a real and lasting way is through the reality of Jesus Christ being worked into me. Fortunately I knew Him and He was more than ready to help.

Of course, in that home we also celebrated a LOT of birthdays, entertained guests, held House Church meetings, counseled couples, and went through all the phases growing families go through. The girls were launching out on their own. Two out of three had graduated from High School and our oldest was engaged before we moved again. This time to an apartment while we built the house I never could have imagined.

That chapter is about increase, life after teens, and faith. It also takes us up to the present so it's the last chapter in this blog series.

The Truth About Money - 4

The first few years of marriage go by at a blinding pace. If you are newly married that might be hard to imagine but that was certainly my experience. We were struggling to find ways to earn enough money - but we always had enough.

I started working in group homes for troubled kids at a non profit family agency. The job paid very little and it was emotionally stressful but it was a job. I've learned that every job has its benefits. One of the benefits for this job was the capacity for pretty rapid upward movement. Of course that was because so many people couldn't hack the work or found a better job elsewhere. Nevertheless, I did move up the ranks and with that there were some moderate raises.

The other part of the job that increased was opportunities. I taught a diversion class to shoplifters - an extra $50 per month. The big break came when I got the opportunity to coordinate the big fund raiser for the year - a food booth at the County Fair. For the next eight years, I took on the responsibility for everything that went into making the Elephant Ears and Barbecued Beef booth profitable. It was my job to prepare the booth, order supplies, and coordinate 200 + volunteer shifts. Needless to say it was a lot of work but it also added a bonus to the paycheck. Marla was right there - helping me do whatever she could and being patient during those grueling ten days each summer.

Of course, it was not just Elephant Ears I handled in that time. I also handled a lot of cash - quite frankly with very little accountability. Every night I bagged up wads of bills and headed home to count it in preparation for deposit. In that setting, many people justify pocketing a little here and a little there. Often there is justification in their thinking because they are working such long hours for so little. The truth is the money was not mine. I was merely the counter. Everything I took home (every sticky coin and bill) was deposited faithfully.

I became a Supervisor at one of the Group Homes and part of the job was to manage the house finances. A house checkbook was funded by the agency each month based on how full the house stayed. I learned to function with those ups and downs in income by always planning to bring in less than expected and spend more than expected. Marla also helped me stretch the food budget by shopping for the house. "Never pay full price" became her slogan as she clipped and used every coupon she could find. The "aha moment" came when one day I realized that this thing called a budget which was so useful at the group home could also be used in the Schaaf home. It might even stop some of the arguments we had about money "because she spends too much." To this day we are still using the format we learned there and, yes, it has pretty much completely eliminated friction over finances.

Our Pastor has called these times of tight finances God's "manna program" referring to the provision of just enough for the people of Israel during their wilderness experience. The truth is that lots of families start out with very little. Ours certainly did. It seems that the real assets during this time are often in the form of learning special skills, faithfulness, and building relationships far more than measurable wealth. My counsel to you is to meet with an older mentoring influence during this time who can help you identify what God might be trying to adjust in your character and skills.

The Bible says that "promotion comes from the Lord." Make it your goal, whatever your age or stage to be "promotable." Work hard, learn all you can, be faithful in service to your employer, and watch God open doors. There has been no rocket to the top for me - just fairly steady movement in the direction of increased ability and responsibility - and yes, income.

Next up - Creative provision, further education, and radical change.