Life’s Rules of Thumb

Growing up was taught simple shortcuts to solve issues or designs. People learned them from experience. Now they are called “Life Hacks”. Here are a few of my Rules of Thumb:

Life is Hard

Bad days will hit you. Family and Friends die. Jobs go away or we get fired. Illness strikes. Mental illness strikes loved ones, or happen to you. No one has life go right every day. We all suffer.

Life is Awkward

No one learns anything the first time. We date the wrong person. We are confronted by the unexpected. We make mistakes and bad decisions. (Parenting anyone?) This is called Experience.

Ask Questions and Ruminate

No one knows everything. Business, technology and customers change every year. Learn is ask questions and listen to answers. People will tell you surprises about their lives. Find time to think deeply about what is happening. Where are the challenges? Where are opportunities? What changes can you make?

Try Things

Knowledge is useless without Action. Try what you learn, and learn more from trying. Making mistakes and failing are learning.

“Mistakes are part of the dues one pays for a full life.” - Sophia Loren

Faith is Necessary

We need an anchor dealing with life’s trials and difficulties. Meditation is wonderful. Meditation with prayer is better. Know God Love You.

“I do not believe because I understand. I believe so I can understand.”

Life is Worth It

Yes life is good. It is not other people recognizing you. It is when you said the right thing to someone who needs to hear it. You give a hand or encourage someone who needs one. We all need someone’s help. You discipline a kid or employee so they learn. You may not realize it until later. You did good. Keep track of what went right. Be grateful every day for something.

 "You will never know how high you can jump until you reach a failure point." - Rev. Robert Schuller

Avoiding Boom and Doomsday Predictions

Interesting, the investing advice everyone listens to falls into two categories:

1 - You are missing out! The market is going to $50,0000 …

2 - Watch out! The market is falling to $1,000 …

The further from current market conditions, the more outrageous the claim, the more attention the speaker gets. Followed by books sale too.

We are drawn to the colorful, the weird, the freaks and the entertaining. Like moths to a light we give our attention to these claims.

Donald Trump says and tweets outrageous comments. No politician would say such things. However the enthusiasm he drew made him president. Despite the best effort of both parties.

However if you are going to invest wisely. Listen to successful investors, savers and avoid the “Too Good to Be True” claims of the famous and infamous.

There is a lot of talk about impeaching Donald Trump. Lots of famous people do not like him. He talks too much, makes outrageous statements of the top of head, and it is “All about Me”.

Not going to happen yet. Only been 4 months in office. What he has done is not criminal. What he says is Free Speech. Any investigation may take years, or at least a lot of months.

Stay your course. Save money. Invest it. Don’t get caught up in HYPE.

Time is Catching Up

It always does.  Decisions for short term comfort have long term consequences. Sometimes these consequences are unseen, but often consequences are ignored because the immediate gain is calling now. The extra desert becomes added weight year after year.

We don’t save enough for the future because of debts for cars, vacations and over priced schools. We underfund our retirement and underestimate how long we will live. Few of us imagine the health care challenges of old age in our twenties.

Central Banks over stimulating liquidity for too long has resulted in inflated asset/property values. Stocks and real estate are reaching record highs. Very low interest rates have businesses doing financial engineering stock buy backs, instead of investing in growth. Stock prices to earnings get inflated.

Politicians make promises like generous pensions or health care, and then underfund them because of budget shortfalls. Eventually they cannot be fully paid and retirees suffer. Government debt has doubled twice over the last 20 years. Many cities and states are going bankrupt. Will the Federal Government follow them?

Voting for the politician who promises more services. Taking money from others sounds good. But your taxes go up when the cost is more than “The Rich” have. Instead the taxes fall on the working class.

CEOs accept outrageous raises, while employee salaries are limited or employees are laid off for outsourcing. Companies move new production to different states to get incentives, leaving employees behind. It feels good to be recognized for your leadership. But employees struggle to pay bills and/or leave family & friends behind to find work.

The solution is taking responsibility. Not just for yourself. Take responsibility for family, neighbors, and strangers. Inside your community and in the outside world.

Cut spending now and keep saving for hard times that always come. Balance your budget. Pay off debts. Buy insurance. Review options and make uncomfortable choices.

Advocate for less fortunate. Keep people safe from scams. Service to others comes with leadership. The world is connected. We have to help people, and accept help when we need it.

Together we can find ways to improve or manage situations.

Health Care Reform

Reforming health care now goes to the Senate. More than likely the Senate will make major revisions to the House plan, or may even come up with a totally different plan.

My advise to the Senate: Focus on the Patients, since every family will be affected. The best care for costs will be the second goal. The US does spend more than other countries and get less care.

Issues:

1) The Affordable Care Act is going Bankrupt. State health care co-ops are failing. Only 7 of 23 co-ops remain and they are losing money. $1.7 Billion in federal loans that will not be paid as of 2016

2) Coverage costs are rising quickly and insurance companies are dropping out. Heard of someone making ~$24,000 per year, their coverage would cost ~$7,000 per year. Who can afford that much?

3) Lack of Cost Controls. Especially prescription medicines.

4) Legal costs. Malpractice insurance for doctors and hospitals range from 15% to 25% of health care expenses. Jury awards are out of control.

5) End of Life Care. Almost everyone will be bedridden needing assistance or a nursing home for the last months or years. What about dementia care?

6) Coverage Limits will Fail. Some patients live longer than their coverage. Taxpayers will wind up covering that.

7) Consumer driven health care is a good theory. Whole Foods has had success with it. However some patients will need more than they saved in some severe cases. Who will pick up the tab?

8) Patients with severe issues or dementia will not be able to make their own choices. Who will advocate for them?

Health care is a complex problem, which can only be managed. It is too complicated to have a simple solution. The best ideas need to focus on patients and getting the best care for the cost.