Tag: Invest

Stealing a Precious Moment in Time

April 13, 2021 / Jacob Brown

My wife and I wanted to capture more of our lives which resulted in purchasing a camera just before last Christmas. I made a post a while back on what we were going to purchase, but I haven’t taken the time to put together a summary of how we are enjoying ourselves. We have been able to secure taking photos of my friends and family which has offered good practice. It has taken some time to get good practice, but we are getting closer to feeling comfortable taking photos for others. Taking photos for others is one of my goals in this venture, but there is a lot of practice required before feeling comfortable. I don’t want to take photos of someone just to have all of the photos be bad or have some sort of flaw. This is probably one of my greatest fears in photography!

My Brief Analysis

I’m not going to write a review of the camera that we purchased because there are plenty on the internet. I have not experienced the camera long enough to write a strong detailed review, but maybe someday. We made the decision to purchase a Sony Mirrorless camera. Now, you may be wondering why we didn’t purchase the tried and true DSLR. The reason we did not purchase a DSLR is… there really isn’t a reason against the DSLR. We purchased a mirrorless camera in part because it is newer technology but I also thought that it would be fun to try. I know people with DSLR cameras and I thought it would be fun to try something different. The biggest difference that I have seen between it and a DSLR, is having a screen inside the viewfinder. This has been very nice and seems to have made taking photos easier than with a DSLR. The quality that we have gotten from the camera is very high. I think that a lot of the photos we’ve taken are professional quality. I have found that if I want to take easy photos, I can set it up to be just as easy as a smartphone.

Having the ability to manual focus has been new as well. I have not had the option and it is not a standard feature on smartphones. I have enjoyed getting to pick our point of focus and created more depth in our photos. My wife enjoys taking photos in this fashion that have a lot of bokeh (focusing on an object with lots of blur in the surround objects). I like taking control of the camera and making all of the setting myself even though the camera is pretty smart.

I would say that overall my experience with the Sony Mirrorless camera has been very good. It has only been about 5 months, but it seems that its only getting better.

My Photography Goals

One of my main goals while taking up photography is to capture more of our lives. It can be difficult to take things or materialistic items with us due to being in medical school, but we can take thousands and thousands of photos without much trouble. We are hoping to detail our lives for our own sake so that we can someday share our memories with our families. I have found that most people lost the art of the scrap book, but we want to keep files of our photos in a similar fashion.

After getting good at taking photos I would like to venture out to help others experience the joy of seeing a moment from their lives. It’s not an easy task (capturing a moment from someone’s life in a photo) but it is something that I would like to strive to achieve. My wife is in medical school which makes her pretty busy. I am reaching out to find new hobbies and challenges to fill my time that can also carry over to when my wife becomes a practicing doctor. I am hoping that photography will become a lifelong hobby that we can enjoy together.

How do I budget when I have no income?

July 15, 2020 / Jacob Brown

Working during school may not be an option, which leaves college students without income as they invest into their lives through higher education. Nearly all college students have money coming to them in some form, whether that be their money from summer work, deposits from another person, or loans. The source of that income could be from a job, loans (usable money but not technically income), or gifted to them by family. When I state income, I am mainly speaking about money coming in from the student working or from their spouse/significant other. Loan money deposited into a student’s bank account is similar to income (because it can be spent), but is not taxable.

Having enough money was an issue for me when I was in undergrad, and it is an issue among nearly all college students. It is difficult to figure out how much to spend on categories like transportation, housing, food, and extra activities when there is no payday in sight. It is more crucial to budget at this time. An overspent month can lead to a shortage on the next, with nothing to make up the difference.

My experience.

When I was in undergrad I tried a few different ways to balance my money. The first mistake I made was take all of the money in my account and divide it evenly across the school year. This seemed like a good idea at the time.

This setup allowed me to pace myself and know exactly how much time I had left before I ran out of money. Unfortunately, when the budget is just distributed it is hard to stay under, or considerably under. I started going to the maximum amount for each week or a little bit over, and before I knew it I was out of money. I completed my freshman year of college with $25 in my account which was just enough to fill the tank on my truck to drive home to my parent’s house. This was not my greatest idea, and I changed it for the following school year.

I started the school year with about $3,000. With this money, I had to pay some of my schooling out of pocket which left me with less money right off the bat. From what I remember, I only had about $60-$80 per week to spend on groceries, gas, and other activities. This is not a lot of money, and it was supposed to last 9 months. I did not have a lot of money to do things like go out to eat, do activities with friends, or have extravagant meals. I spent about $30 per week on groceries, which was enough. The remaining money was used on gas and “necessities.” AKA stuff I didn’t need to buy but did anyway.

I owned my vehicle and my parents paid for my insurance. Which was one thing that helped me to save some money. I also did all of my own maintenance, which allowed me to save money on the vehicle purchase. I did not have to purchase an expensive or newer vehicle.

There are probably 1,000 ways to arrange your budget to best suit you. It can be hard at times to budget because we like nice things or things that aren’t in need of TLC. Sometimes it is crucial to step back and look at what we have and decide what is most important and what can go away. Here are some guidelines of what I recommend to student living off of loans.

Find housing that is the bare minimum, but is comfortable. If you are going to pay for housing on loans, keep the cost down. Federal Graduate Loans run at about 7% interest. So imagine paying around normal sales tax on your loans while they accrue interest. I’m not saying that you should live in an apartment or house that is in a terrible location for your commute or is dangerous for your health. Find something cheap and reasonable to accommodate your needs.

Don’t lease or buy a vehicle on your loans. I have a view on loans that may differ from you. I do not think that we should ever take out loans when there is no return on our investment, but especially on vehicles due to their loss in value. They depreciate quickly, which means that the buyer loses their money quickly. Vehicles are not an investment, it is a tool that loses value over time. A large portion of graduate loans can be allocated to “cost of living.” That being said, the amount taken out should be kept to a minimum. Last school year my wife could have taken nearly $60,000 over the tuition cost for living. To me, that is absolutely insane! I have listed some “options” for how I would handle needing a vehicle. There are probably more options, but these are ones that came to my mind.

Option #1. If you HAVE to purchase a vehicle, take the time to research vehicles and make a decision for a low cost reliable vehicle. As a doctor, or soon to be, you don’t have the option of being late to work. Find a reliable vehicle at a low price (as low as you can stand) and pay for it in full. Don’t use your education loans to pay for car loans or leases.

Option #2. If you have any money that is not from loans, or parents that are willing to help, definitely go that route. I would avoid using loans on vehicles at all costs, but if you have to, make it go a long way with something very reliable.

Option #3. If you have a family member that will let you borrow a car for a few years, do it. It is probably the only option that can get you around town for nearly free. You may have to pay for insurance and fuel, but you would be paying for that anyway with a vehicle you purchase.

Budget to a minimum on food. I would think that in most areas of the United States a person could spend under $100 per week on food for themselves. It is definitely easier here in the Midwest, but may be a stretch on the East or West Coast. Learn how to prep your own food. You can eat healthier, and have food ready for you at home at any time. If you can avoid going out, which might be the most expensive way to eat, your money will go further. If you want more information on food budgeting, visit my other post on Eat Steak, Not Fast Food where I do a short discussion on saving money on food.

The 3 things above are the most important from my perspective. There are other expenditures like cell phones, computers, vacations, holidays, and others that are variable costs. All of them influence our spending, and some of them are necessities, but they tend to be cheaper than the 3 points listed in the previous sections.

Notes for the reader.

Find the amount you are willing to pay back. In the end it’s all a personal choice. Find the amount you are willing to pay back in the future. Use an online student loan calculator to figure out how much your monthly payments will be based off your interest rate and loan term. Though doctors make a good salary, consider the debt load. As an example, if a student borrows at 7% interest and has $250,000 (including accrued interest) at the end of the 4 years of Medical School, they will have a monthly payment of $1,767 for 25 years. The interest paid back is about $280,000 with a total repayment of $530,000, over double what has been borrowed.

Borrow to live, not to “live.” Calculating how much to borrow is purely based off what you need to live. It will vary from student to student but should be similar between them. Keeping the total amount down by avoiding costly ventures like extra electronics, large vacations, or overspending in other categories will benefit you in the future. Going on vacations and having nice things is fun, but the benefits should be weighed against what will need to be repaid.

Keep purchases on nonessentials to a minimum. It’s fun and tempting to go on vacation or buy new toys. That being said, I don’t think that we should not do either if we have the financial capacity. I have found it possible to go on mini vacations or purchase fun items without spending a lot. My wife and I have taken day trips to places which are very cheap. We have purchased items for our enjoyment that do not require additional money to be put into them. When it is time to move after medical school, unless the stuff is sold or thrown out, it will have to go with us.

Learn Basic Car Maintenance

April 26, 2020 / Jacob Brown

I enjoy finding ways to save money and learn new skills. Having enough money to pay for certain things while a spouse is in medical school can be difficult. After all, the easiest way to have more money, is not to spend it. I will outline some things that make a positive impact for me in our budget.

Do basic auto maintenance yourself or find a friend that can. I perform nearly all of my own maintenance on my cars, and for any of my medical school friends. From my experience, a normal shop fee is anywhere from $85-$125 per hour. At this rate, most simple tasks are worth the small amount of time learning how to do them. The tool investment is also small, and pays for itself quickly due to the cost of a professional shop. Some simple tasks are changing your battery, changing oil, checking all of your fluids, replacing brakes, and replacing spark plugs. Oil changes usually include an oil check, coolant, power steering, and washer fluid. Having brakes replaced, spark plugs, or any work not included in an oil change will be put on an hourly rate. Instead of paying a shop to replace your battery, take it upon yourself to go to a store that sells auto parts and make the battery purchase yourself. The shop will be buying a similar (or the same) battery and marking it up. In addition to that, most of the large chain stores will replace your battery for you at no charge. This is dependent on your make and model, but most vehicles are simple to replace.

How I justify doing the work myself. If you’ve ever taken a car to a shop you will know that it is extremely expensive. The billing is based on the “book” time for completion of the task. So if the job will take 2 hrs of shop time, the bill could be anywhere from $170-$250 for the work (excluding parts). I look at this number and see that if this is work I can manage, I could save this money. Not only could I save money, but with the approximate cost between $170-$250, I could purchase the tools for the job. This sets me up for future work or if I know somebody that needs help with similar maintenance. As an example, most vehicles with gasoline engines have spark plugs that are relatively easy to replace. A shop will charge about 1 hr for most vehicles, resulting in a cost of $85-$125 without parts. So, a car owner could spend $85-$125 on the tools (and their time) to complete the job themselves and it would cost the same.

Why I use full synthetic engine oil. Saving money on small maintenance tasks adds up. I drive about 22,000 miles/year. I use full synthetic oil and run it for about 12,000 miles between oil changes. Running full synthetic costs about 25% of conventional oil, and I have had a lot of success with it. An oil change usually costs me about $36 for 12,000 miles, while conventional would cost me about $32 for 3,000 miles. From information, I show that for 12,000 miles of conventional, it would cost about $128. This is almost 4 times the cost of full synthetic oil for the same distance. I understand that full synthetic engine oil is not the beat choice for every vehicle (especially brand new vehicles) but it works well for me. Having a shop change your oil for you can still save a lot of money. If you’re car is not made to handle full synthetic oil, don’t use it. Look in the manual or contact the manufacturer to find out if it’s okay to use.

My recent work. I was getting some odd feelings in the steering when driving and when I checked out my car I had quite a few components that needed to be replaced. I prices out parts from some aftermarket vendors and ordered them to my house. I had to replace a lot of the steering, bearings, and suspension components, which cost me about $500 in parts. The approximate labor cost for a shop to replace these parts would have been about $750-$1,250. So, looking at that kind of price, I chose to purchase a few tools for myself and completed the work at my house. This kind of work is not within everyone’s abilities, but it is within mine.

“Renting” Tools. If you don’t want to purchase any tools, there are auto parts stores that sell parts, and rent tools. One of the greatest things about their tool rental is that it is “free.” When renting tools the store will charge you the cost of the tool, which means that you have purchased it. After you are done with the work, they allow you to return the tool in good working condition and refund you all of the money. As long as you don’t want to keep the tools for yourself, just return them for a full refund.

Tips for the reader.

Do what you feel comfortable doing. If you don’t feel comfortable doing work on your car, don’t. It’s better to have someone help you, or pay someone if you feel uncomfortable. I do not condone performing work outside your abilities or comfort zone, it can be dangerous.

Learn how to tell when you have a problem. If you don’t want to do your own work, try to get good at finding upcoming problems before they become big problems.

Learn online. I find it best to look up how other people are doing the work. This can make it a lot easier and get an idea on how long it will take and how much it will cost.

Purchase parts for the shop. If you are not going to do the work yourself, buy the parts and take them to the shop. This makes it so that you get the parts you want, and there are less overhead costs. The shop will still charge the same on an hourly basis, and you will have more money in your pocket. Make sure to do research on exactly which parts you need and they will fit before ordering.