Follow the 10-10-80 rule

Gavin finished his first summer job recently. He earned a fair amount of money and asked me about the process I use for managing my money. Gavin is just learning about money. I recommended that he keep it simple, and follow the 10-10-80 rule. This formula represents how you should allocate the money you earn – save 10%, give 10% (some call this tithing), and spend the remaining 80%. I cannot remember when I learned this rule, but I have tried to use it over the years. It seems to work well, although it can be tempting to spend more than 80%, especially if you experience a windfall.

1. Save 10% for yourself – there are multiple reasons to save 10% of your paycheck. First, it is helpful to have an emergency fund to deal with surprise situations that may arise. Opinions vary about how much money you should have in an emergency fund. One month salary is a good starting point. Second, you may want to save money for a specific purchase so that you don’t have to borrow money and pay interest. In general, I like to stay out of debt as much as possible, but I think it is okay to borrow money for some purchases. For example, you will likely need a loan if you decide to buy a house. Third, you will need money for retirement. In fact, you will likely need a lot of money. Start saving early for retirement, so that you don’t have to play catch-up later on. I did not save nearly enough early on in my career and am paying the price now. Avoid this mistake if you can. Most companies offer employees ways to save for retirement. Take advantage of these savings opportunities. Here is a video that talks about various ways to save for retirement.

2. Give 10% for a worthy cause – it honors God and helps those in need. I would love to say that tithing is easy, but it can be a challenge to give away 10% of your money. I recommend starting early so that it becomes a habit. Don’t tell yourself that you will give money away when you earn more and can “afford it”. I think it actually becomes more challenging the more you make. Once again, keep it simple. If you are a member of a church then you should tithe to that church. The tithe is intended for the church to operate and support the local community. If you are not a member of a church then look for a worthy cause to support. Plenty of them exist. I have taken different approaches when it comes to charities. One year I decided to support as many as possible – even with only a small amount. More recently, I decided to focus my donations to a few specific charities that I am passionate about. For example, this year I am focused on the Lead the Way Fund. They do great work. Lastly, some charities are not worth supporting. They spend too many resources fund raising, or other events, rather than making sure the money gets to those who need it. For example, I used to send money to the Wounded Warrior Program, but stopped due to a recent scandal about how they were wasting donor’s money.

3. Spend 80% to live your life – this part covers the rest of your expenses like housing, food, utilities, clothes, and other bills. 80% sounds like a lot. Not spending more than that seems easy, but I will warn you that it is not easy. What is easy is spending more than you earn by using credit cards and other methods for borrowing money that you do not really need. Trust me, it is really easy to buy stuff, esecially nowadays. You don’t even have to leave your house to shop and they will deliver many things straight to your front door. I am a big fan of online shopping, but it can be a slippery slope when it comes to spending money.

Lastly, I have warned you before about the dangers of credit cards, and will reiterate to be careful. At one point in my life I wracked up over $10K in credit card debt and had to refinance our house to pay off the debt. Really big mistake on my part. You should not be shocked to learn that the credit card company never called me to ask why I was spending so much money. The reality is that we had just moved and it cost a lot more money getting the new house set-up than I anticipated. The credit card company did not care because they make money out of the deal. The more I borrow, the more they make.

Managing your money can be tricky. I recommend keeping it simple, following the 10-10-80 rule, and avoiding debt as much as possible.

Here is another video in which Dave Ramsey and Chris Hogan answer a question about retirement from someone who is 23 years old.

Dunkirk Reveals Human Nature

War is hell. We all know that – at least I hope we all know that. We are reminded on a regular basis about both the horrors and heroics of war. Bottom line – it brings out the best and the worst in mankind. We have many books, movies, television shows, videos and monuments all aimed at giving all of us insights about war, and what it is like. As you know, I served in the military, but I never deployed into combat. I did spent many years preparing for it, studying it, and learning about it. Based on what I know and have learned from others – we get unique insights into human nature by learning from previous wars.

Occasionally a movie comes along that reminds us how awful war can be. Dunkirk is one of those movies. It is a grim reminder that WWII did not start well for the Allies. In fact, it was a military disaster on all fronts. The Germans were able to conquer much of Europe quickly. I watched Dunkirk last night, and really enjoyed it. The director lets history tell the story and attempts to personalize it by focusing on a small group of individuals who are caught in the action – soldiers and civilians. The movie is intense, and I think it points out three things about human nature that are worth reflecting on after watching the film.

1. We are all selfish. The battle of Dunkirk focuses on the fact that a large part of the British Army was surrounded by the Nazis early in the war and needed to be evacuated back to England before it is annihilated. It is a dire situation. The movie does an excellent job portraying how bad things were for the British. The enemy is closing in. All the British are trying to get out of France, and the only way out is via the English Channel. There are not enough ships for everyone. Time is running out, so various characters in the movie start to take matters into their own hands. It is an “only the strong survive” type situation which leads to selfish behavior. It should not be surprising that people get selfish. It is in all of us – the will to survive. It comes out especially when the stakes are high. Putting other first is a difficult choice to make, and does not happen naturally. Usually our basic instinct is to take care of ourselves first. Something to think about anytime you are in a tough situation. Look for this behavior in others, and monitor it in yourself.

2. We can all be heroes. The evacuation of Dunkirk ended up being successful because of the extraordinary deeds of many average people. The British government send out a call for help, and many answered. The film focuses on one family who joins in the action and plays their part in the evacuation despite many challenges. The director does a nice job keeping these everyday participants anonymous during the action. He does not treat them like super heroes. They don’t have super powers or any special abilities. They simply do what is necessary to get the job done. The same holds true for many other participants to include the Air Force pilots who fought bravely to keep the evacuation ships safe. Remember – heroes come in many shapes, sizes, colors, and backgrounds. Don’t be fooled by marvel and DC comics – there is no real Superman or Wonder Woman. They are not coming to rescue us. Rather it is up to normal people like you and me to be heroic when called upon.

3. We can fight another day. When WWII begins – the Nazis are prepared. No other country really is ready and it shows. Dunkirk is a pivotal point in the war. The French are defeated, and England evacuates in order to prepare for a potential invasion. British leadership is forced to make some really tough decisions. They are outmatched, and they know it. They need a new strategy. They decide to do something a little different than normal – they celebrate their retreat from Dunkirk. Normally in military operations any retreat is seen as a loss and should not be celebrated. But, British leadership realizes that the evacuation allows them to fight another day, and fight they will. The movie ends with Winston Churchill’s stirring speech that finishes with “we will never surrender”. Anytime I hear this speech – it inspires me. Also it reminds me that some days you will lose. In fact, you may need to retreat, regroup, refit, and prepare to fight another day. Notice that I did not say quit, but live to fight another day. It is a perfectly suitable strategy in some situations.

If you have not seen Dunkirk – I suggest that you do. Below is a link to the trailer for the film. Hopefully you get a lot out of the film like I did.

Lessons from the Tour de France

July is here and that means it is summer time. A major international sporting event that happens every July is the Tour de France. It is the most important bike race in the world, and it is brutal. It always has been. Basically 200 bike riders race all over France until the winner is declared. This year the race includes 21 different stages that cover over 3500 kilometers. The graphic above shows even more statistics about the race. I like the Tour, and enjoy watching the race, even thought cycling is generally boring. Just a bunch of bike riders peddling around the countryside. One of the reasons I enjoy the tour is that it teaches many lessons that you can apply in life. Here are three that come to mind.

1. Life is a team sport. Many people think that the Tour de France is an individual event due to the fact that there is a single winner. The overall winner is awarded the coveted yellow jersey. The reality is that every rider belongs to a team, and it takes a team to win. No single person will outperform everyone else. Instead you need the help of your team whether it is drafting off them on the flats, or following behind them on the climbs. I think life is a team sport also. You will need help along the way, and be willing to help others. To go it alone would be a tragic mistake, and lead to misery. Life is tough. Don’t go it alone.

2. Keep peddling, especially in the mountains. The Tour is a really long race. Day after day the riders have to cover hundreds of miles. Some have compared riding the Tour de France to running a marathon everyday for three weeks straight. Ouch. One of the things that makes the Tour so difficult is the mountain stages. All the riders have to navigate up and over towering mountains to include rides in the Alps and the Pyrenees. I have driven a car over some of these mountains and they are really tall – up in the clouds. Some riders specialize in climbing, but these stages are tough for everyone. If you are a sprinter, the mountains are especially difficult, but they still have to ride over them. They are not allowed to skip these stages and wait for the next flat course. I have watched these stages for years, and I remain amazed that anyone can make it through the mountain stages.

I think there is a parallel in life in that we all will face tall mountains, obstacles that we have to get over. How do riders get over the mountains – they just keep peddling. They use different techniques, different gears, and different approaches to make it over. It is not always pretty. In fact, for many it is rather ugly, but they make it. Sometimes we have to do the same thing in life – head down and just keep peddling. Don’t quit, keep moving forward, dealing with what life throws at you. The easy way out would be to quit. Many people do. But, I want to encourage you to keep peddling, even when it gets ugly. You will find joy after you reach the peak, and enjoy the ride down the back side of the mountain.

3. Play by the rules. It is well known that cycling has experienced many scandals over the years. The most famous is Lance Armstrong, who used to be a hero of mine. Lance “won” the Tour more times than any other rider, and became a sporting legend around the world. But, the reality is that all those victories are tainted. They were taken away because he cheated to win. He broke the rules repeatedly, lied about it, and was finally caught years later. He has been dealing with the shame of these revelations the past few years. Many years ago, I was a big Lance fan. I wore a live strong bracelet, read the books he wrote, and really enjoyed watching him ride. But all that admiration was based on a lie. Learn a critical lesson from Lance, and that is to play by the rules. No victory is worth breaking the rules, and cheating to win. In life, you will be tempted to cheat, to bend the rules to your favor. The reality is that many cheaters don’t get caught. Even so, don’t fall into this trap. It will take away the joy of victory, and you will always know what you did, even if others never find out.

For anyone not familiar with the Tour this video helps provide some context about why it is the most challenging bike race in the world.

Master your craft – lessons from a Jumpmaster

This week our country celebrated the 73rd anniversary of D-Day. Despite many challenges the invasion was successful and turned the tide of WWII. Many brave men participated in this operation to include multiple US Army Airborne Divisions. Paratroopers actually jumped into France the day before D-day to secure critical roads, bridges, and other strategic objectives. Their bravery, valor, and courage contributed greatly to the success of the invasion.

My first duty assignment as a brand new Army Infantry Officer was with the 82 Airborne Division. My job title was rifle platoon leader, and one of my roles was serving as a Jumpmaster. A Jumpmaster’s job is to make sure all the paratroopers aboard the planes exit the aircraft safely so that they can land and complete their assigned mission. Jumpasters play a critical role in every airborne operation. It is expected that all leaders in the 82d complete Jumpmaster training, and serve in that role. I learned a lot as a Jumpmaster. Below are the top three lessons.

1. Master your craft. The title Jumpmaster says it all. You are expected to become a master parachutist. Jumpmasters are required to complete intense special training to earn the title. The training includes multiple hands-on tests during which you have to clearly demonstrate you know your stuff. I remember being extremely nervous before one of my exams because so many students did not pass it. Once you complete that training, you are required to serve as a Jumpmaster on a regular basis so that your skills stay current. Over time, Jumpmasters earn special awards (senior parachutist badge, and master parachutist badge) to recognize their expert skills and experience. I think it is important that you master your craft over time. Become the best that you can at whatever it is you decide to do. Don’t be satisfied with just getting by.

2. Realistic rehearsals enhance execution. Before every airborne operation Jumpmasters walk everyone that is jumping that day through several realistic rehearsals. The first rehearsal takes the paratroopers through the steps involved when jumping. As the Jumpmaster talks the paratroopers simulate exactly what will happen to them during the jump. The rehearsal also covers things that could happen such as your parachute does not open, or you have to land in the trees. In case you are wondering – tree landings are scary. Next, everyone practices landing…BTW it usually hurts when you land. After that, all jumpers practice “actions in the aircraft” as a group. During this step, you literally rehearse everything that happens in the air on the ground. The reality is that everyone has jumped before, so you are not teaching anything new. Rather, you are practicing as a group so that every jumper knows exactly what they are supposed to do once you get in the air. No one wants any surprises in the aircraft.

I have jumped over 50 times, and I can tell you that all these rehearsals work well to enhance execution. On more than one occasion something went wrong in the aircraft, or during the jump. For one operation the Air Force pilots flew along the edge of the drop zone thinking that the wind would blow us over the target. It didn’t. In fact the opposite happened. Every jumper was forced to land in the trees. After exiting the aircraft, I gave the pilots a middle finger salute thanking them for their incompetence, and then executed all the steps required for a successful tree landing. I recommend that you use realistic rehearsals to enhance execution in your own life. Practice every step as realistically as you can. It will pay dividends. I know from my own experience that rehearsing before any presentation is a really good idea. It prevents gremlins from showing up.

3. Confidence calms fears. Jumpmaster are trained to be calm at all times in the aircraft. You job is to set the example for the jumpers to follow. Jumping out of a perfectly good plane at 800 feet with over 50 pounds of equipment, many times at night, is not a natural act. In case that does not scare you – every piece of equipment used in the operation, to include the plane, was built by the lowest bidder. It makes perfect sense for every jumper to have fear and/or anxiety as you prepare to jump. I know that I was nervous during every jump I ever made.

To counter this fear, the Jumpmasters guide the paratroopers through a series of steps using loud and clear commands. The way it works is that the Jumpmaster yells the commands to all the jumpers along with a visual signal. The paratroopers all echo back the command indicating they heard it, and then perform the action. These steps are completed so that everyone is ready to jump when the doors open. Once the doors open, the Jumpmaster inspects it and gets the first jumper ready. The pilot will turn on the green light and everyone exits the aircraft. It sounds simple, but it can be scary. Reality definitely hits you when the doors open and the light turns green. No time for fear at that point.

The final lesson to learn from this old Jumpmaster is that it is okay to have fear. What you do with that fear is important. If you master your craft, and conduct realistic rehearsals, then you will have the confidence needed to overcome any fear. You will be able to jump when the time comes.

For anyone who is not familiar with airborne operations – this video is a nice summary. All the Way, Airborne!!

If you only have a minute, try this one. It is about Jumpmasters.

Start off by making your bed

Today marks the first year anniversary of writing this blog. It has been a great experience, and hopefully both of you have learned something from the blog posts. Several people have provided positive feedback about the blog, and indicated they enjoy reading the weekly posts. I plan to keep on blogging, to keep looking for wisdom to pass on, and to discover new topics worthy of discussion. I learn a lot from others, so I will pass along their wisdom to you, rather than just fill the page with my own thoughts. With that in mind, I am going to start the new year off sharing some simple advice from one of America’s great warriors. Admiral William McRaven.

This time of year is graduation season. Celebrities, politicians, scholars, and many others take the graduation stage to dispense advice to high school and college students as they end one chapter of their life, and start a new one. Many graduation speeches are dull – full of cliches and dumb jokes. Occasionally, you will hear one that is excellent. In 2014, Admiral McRaven gave the commencement speech at the University of Texas. It was called 10 Lessons from my Years as a Navy Seal. It is a brilliant speech full of wisdom and insight. Below is a short excerpt from his speech. It is a simple idea, but a powerful one.

Every morning in basic SEAL training, my instructors, who at the time were all Vietnam veterans, would show up in my barracks room and the first thing they would inspect was your bed. If you did it right, the corners would be square, the covers pulled tight, the pillow centered just under the headboard and the extra blanket folded neatly at the foot of the rack—rack—that’s Navy talk for bed.

It was a simple task—mundane at best. But every morning we were required to make our bed to perfection. It seemed a little ridiculous at the time, particularly in light of the fact that were aspiring to be real warriors, tough battle hardened SEALs—but the wisdom of this simple act has been proven to me many times over.

If you make your bed every morning you will have accomplished the first task of the day. It will give you a small sense of pride and it will encourage you to do another task and another and another. By the end of the day, that one task completed will have turned into many tasks completed. Making your bed will also reinforce the fact that little things in life matter.

If you can’t do the little things right, you will never do the big things right. And, if by chance you have a miserable day, you will come home to a bed that is made—that you made—and a made bed gives you encouragement that tomorrow will be better. If you want to change the world, start off by making your bed.

It may sound trivial, but the act of making your bed every morning helps get the day off on the right foot. I recommend you take up this habit. In case you want to hear the rest of Admiral McRaven’s speech, here is the link to the Youtube video. It is well worth watching.

Each day has its challenges – grind them out

The reality we all face is that each day is full of many different parts, events, activities, and emotions. Some things may go well, others not so well, and some may be horrible. For example, you may do really well on a test in school, but end up with a tough homework assignment that you cannot figure out. It is very rare that I have a day that is either all good, or all difficult. Even days off, and vacation days can have their ups and downs.

Dealing with the good stuff is not hard. Sorting through the crappy stuff can be much more difficult. In fact, it can wear you down. I recommend that you learn how to “grind it out” when faced with something you have to do, and you know may not go well. For example, I . have run many races. It is a rare occurrence that I feel good and run well the entire race. Many times it is not going well at some point in the race and doubt starts to creep in. Questions come to mind like why am I doing this…I should have stayed in bed.

Many times I seriously consider quitting, but then remind myself that I have faced bigger challenges and that I just need to grind out the last few miles. One foot in front of the other, until I reached the finish line. It may result in a horrible finish time, but at least I made it. You know that I play to win, and always want to do my best…but sometimes, just making it to the finish line is the best you can do. That effort alone will pay dividends at a future time. I believe overcoming these small obstacles is critical to achieving big things.

Adversity can strengthen you if you have the will to grind it out.
– Ray Kroc, Founder of McDonalds

Avoid Making Decisions in the Late Night

One rule for you to consider – do not try to have serious discussions (especially if they involve big decisions) really late in the day (consider late after 10 PM).  Tired minds tend to make poor, or shortsighted decisions.  If you need time to contemplate different options, investigate alternatives, or discuss serious matters, then plan your day accordingly.  I generally get up early in the day, and do some of my best thinking then. Don’t wait until the last minute, late at night, to try and accomplish these kinds of things in haste. You might not like the poor results this generates.

Early to bed, early to rise, makes a man healthy, wealthy, and wise.  

Benjamin Franklyn

Be Strong – stay in shape

Stay in shape (or get in shape if you are not).  You do not have a choice about a lot of things in this world, but one area you do have a lot of control over is your fitness level. Physical fitness is an easy area to neglect – so don’t fall into the trap of inertia.  Some of the greatest lessons in life, and personal victories that I have experienced have come during my participation in sports or athletic events.  I recommend that you find a few sports that you enjoy, that you have an interest in, and that you have the skills for.  No excuses for being fat and lazy.  Like Nike says….Just do it.  You will enjoy it.

I don’t know about you, but I’m running hard for the finish line. I’m giving it everything I’ve got. No sloppy living for me! I’m staying alert and in top condition. I’m not going to get caught napping, telling everyone else all about it and then missing out myself.

1 Corinthians 9:26-27

Work hard – do not be lazy

I am convinced that hard works pays off.  I have seen some people become successful based solely on their natural talent, or a gift from others- but it doesn’t last.  First, the most rewarding part of the success journey is “the struggle”.  I have learned most of life’s lessons during the tough times when I have struggled towards achieving a goal.  Second, if something is handed to me, it doesn’t mean as much to me as the things I have earned.  Nobody can take these victories away from me.  Lastly, natural talent only gets you so far.  I do not have much natural ability in many things, so I have tried to make up the difference by working harder and smarter than the other guy.  To date, this approach has worked well for me, and I believe will make all the difference for me in the long run.

Proverbs 6: 6-8: Take a lesson from the ant, you who love leisure and ease. Observe how it works, and dare to be just as wise.
It has no boss, no one laying down the law or telling it what to do,
Yet it gathers its food through summer
and takes what it needs from the harvest