Making Ends Meet

Right now there is this talk of a payroll tax holiday. I generally support tax cuts to a point. But a payroll tax holiday has the potential to be super costly and have little impact on total employment. Then there is the full write off of equipment that Obama is proposing which, as a small business owner, would be nice but it’s not going to have a huge impact for the $50B a year it will cost.

I have a better idea.  I’ll call it The Enloe Plan.  It would either put people to work or not cost the government any money at all.

Here is how it works:
1. Only use the 7.65% employer portion of payroll taxes (Social Security and Medicare).  Employees still pay their share.
2. When an employer hires someone who is currently on unemployment they take their portion of the payroll tax and use that to pay the new employees.
3. It is a dollar for dollar trade- if you don’t hire someone you pay your normal payroll taxes. Every dollar you pay a new hire you don’t have to pay in payroll taxers. Part time employees would also be eligible.

The math:

• Any company regardless of salary can hire one new full time person for “free” for every 13 people they have on payroll.
• If every private employer did this for all of their payroll taxes it would put 8.2 million people to work “overnight”.
• It would cost $100 Billion over four months if everyone participated. (everyone won’t so $100B would probably last a year…)

There you have it– no danger of tax cuts that go to overseas manufacturers or “hoping” that people get hired.

Here’s a page with the spreadsheet on it: The Enloe Plan

Questions?  Comment or email  berry (at) makingendsmeet -dot- org

References:
http://www.bls.gov/news.release/empsit.t08.htm

Trust me- I may be LESS qualified to talk about biblical things than I am to talk about money.  But the Bible is the ultimate authority on money.  Have you ever wondered in amazement how you always have JUST enough money to make it to the next paycheck?

Even when you have an unexpected car repair you often find that you didn’t miss that $200 and some how or another you made it to the end of the month. Having just enough repeats itself over and over in our lives.

And frankly- that gets frustrating. You think, “Oh this month we won’t have this $300 expense that we had last month. So we should have money left over.’  Nope. Somehow it’s all gone.  It’s one of the phenomena that I am always looking at when it comes to money– why human nature works against us saving money.

But then I recalled that modern Americans are not the only tribe to face this. But when the Israelites faced having just enough it was by God’s design. And for a specific purpose– to see if they would listen to what God says.

Which makes me ask the question– “If I were more faithful would God provide more than just enough?”

Below is one book of the Bible that talks about manna.  The last line is the one that offers the most insight.   I’ve made some comments in Exodus 16 below– (They will be in this different color.)

Exodus 16

Manna and Quail

¹ The whole Israelite community set out from Elim and came to the Desert of Sin, which is between Elim and Sinai, on the fifteenth day of the second month after they had come out of Egypt. ² In the desert the whole community grumbled against Moses and Aaron. ³ The Israelites said to them, “If only we had died by the LORD’s hand in Egypt! There we sat around pots of meat and ate all the food we wanted, but you have brought us out into this desert to starve this entire assembly to death.”

(Note:  God took his people out of what looked like a comfortable situation and sent them into what, from everyone could tell, was a worse situation.  This alone shows us that God’s plans exist outside of our immediate physical lifestyle.)

⁴ Then the LORD said to Moses, “I will rain down bread from heaven for you. The people are to go out each day and gather enough for that day. In this way I will test them and see whether they will follow my instructions. ⁵ On the sixth day they are to prepare what they bring in, and that is to be twice as much as they gather on the other days.”

(Note: God was just seeing if people would listen to his instructions. What’s really interesting is that God said to keep the sabbath holy– and he even set up his program to make that happen.)

⁶ So Moses and Aaron said to all the Israelites, “In the evening you will know that it was the LORD who brought you out of Egypt, ⁷ and in the morning you will see the glory of the LORD, because he has heard your grumbling against him. Who are we, that you should grumble against us?” ⁸ Moses also said, “You will know that it was the LORD when he gives you meat to eat in the evening and all the bread you want in the morning, because he has heard your grumbling against him. Who are we? You are not grumbling against us, but against the LORD.”

⁹ Then Moses told Aaron, “Say to the entire Israelite community, ‘Come before the LORD, for he has heard your grumbling.’ ”

(Note: God listens. The people grumbled and God responded. That is super encouraging if you sit where I sit- know that he hears what we say.  Throughout the Bible god sent both famine and abundance. But he took care of his chosen people.)

¹⁰ While Aaron was speaking to the whole Israelite community, they looked toward the desert, and there was the glory of the LORD appearing in the cloud.

¹¹ The LORD said to Moses, ¹² “I have heard the grumbling of the Israelites. Tell them, ‘At twilight you will eat meat, and in the morning you will be filled with bread. Then you will know that I am the LORD your God.’ ”

¹³ That evening quail came and covered the camp, and in the morning there was a layer of dew around the camp. ¹⁴ When the dew was gone, thin flakes like frost on the ground appeared on the desert floor. ¹⁵ When the Israelites saw it, they said to each other, “What is it?” For they did not know what it was.

Moses said to them, “It is the bread the LORD has given you to eat. ¹⁶ This is what the LORD has commanded: ‘Each one is to gather as much as he needs. Take an omer for each person you have in your tent.’ ”

¹⁷ The Israelites did as they were told; some gathered much, some little. ¹⁸ And when they measured it by the omer, he who gathered much did not have too much, and he who gathered little did not have too little. Each one gathered as much as he needed.

(Note: God was specific in his instruction here- it gets a little confusing– he said get an Omer (about a gallon by the way) but then verse 17 goes on to say this– “some gathered much, some little…    But here is a political point I want to make–  EACH ONE GATHERED.  It didn’t say that people sat around and got it handed to them. God provided but the people still had to do work to be provided for.)

¹⁹ Then Moses said to them, “No one is to keep any of it until morning.”

²⁰ However, some of them paid no attention to Moses; they kept part of it until morning, but it was full of maggots and began to smell. So Moses was angry with them.

(Note: I think the concept of being provided for daily is the most important part of this chapter– and why I wrote this blog post.  God provided for his people then on a daily basis so they would not lose faith in him and would always remember where their life came from. So that makes me ask the question–  “If I, on a daily basis, were more aware of the fact that God is my provision, would I be able to move past only having just enough?”  This sounds like a “get rich gospel” which I very much despise.  I’m just saying. It is a balance-  the biblical principle laid out here is clearly that God intends to provide for His people only as they need it.  There are new testament examples of this too– where the disciples were to go out in pairs to different towns and to not take any supplies, money, etc–  God would provide that for them.)

²¹ Each morning everyone gathered as much as he needed, and when the sun grew hot, it melted away. ²² On the sixth day, they gathered twice as much—two omers ^[b] for each person—and the leaders of the community came and reported this to Moses. ²³ He said to them, “This is what the LORD commanded: ‘Tomorrow is to be a day of rest, a holy Sabbath to the LORD. So bake what you want to bake and boil what you want to boil. Save whatever is left and keep it until morning.’ ”

(Note: Boil bread! You mean they were having chicken and dumplings 4,000 years ago? yum yum!  (it was actually dove and dumplings- but close enough…)

²⁴ So they saved it until morning, as Moses commanded, and it did not stink or get maggots in it. ²⁵ “Eat it today,” Moses said, “because today is a Sabbath to the LORD. You will not find any of it on the ground today. ²⁶ Six days you are to gather it, but on the seventh day, the Sabbath, there will not be any.”

(Note: It is amazing how we can find ourselves in similar situations but have the result work out different.   For instance- 5 days a week manna was only good for one night. On day 6 it lasted twice as longs. Same stuff but different results. What was the difference?  God.)

²⁷ Nevertheless, some of the people went out on the seventh day to gather it, but they found none. ²⁸ Then the LORD said to Moses, “How long will you ^[c] refuse to keep my commands and my instructions? ²⁹ Bear in mind that the LORD has given you the Sabbath; that is why on the sixth day he gives you bread for two days. Everyone is to stay where he is on the seventh day; no one is to go out.” ³⁰ So the people rested on the seventh day.

³¹ The people of Israel called the bread manna. ^[d] It was white like coriander seed and tasted like wafers made with honey. ³² Moses said, “This is what the LORD has commanded: ‘Take an omer of manna and keep it for the generations to come, so they can see the bread I gave you to eat in the desert when I brought you out of Egypt.’ ”

³³ So Moses said to Aaron, “Take a jar and put an omer of manna in it. Then place it before the LORD to be kept for the generations to come.”

³⁴ As the LORD commanded Moses, Aaron put the manna in front of the Testimony, that it might be kept. ³⁵ The Israelites ate manna forty years, until they came to a land that was settled; they ate manna until they reached the border of Canaan.

(Note: It doesn’t say what came after– but it does say they lived day to day, by faith, for 40 years. I’m sure they got bored and tired of it. But it’s what God needed to do to get them to the Promised Land.  So if God is providing just enough for you– rejoice that God is providing.)

If I wanted to bore you with a longer title post I’d have titled this one

Red Box vs Netflix:  and Why I’m Not a Frugal

If I was smart I’d be using Netflix. I bet I would like it. I have never tried it.

Using NetFlix would also save me a few dollars a month.   You see, I am a movie freak and Red Box is my friend.  I go at least three times a week, get a movie or two and keep them a couple of days. So by the end of the month I could easily pay the $17 bucks for Netflix’s “3 at a time plan” and end up saving money.

But I like Red Box. I like it’s limited selection, long waits, and swiping my debit card at random locations across three different towns.  I don’t really like it’s limited selection- that was just a small joke.

So let’s say I spend an extra $8 a month at Red Box over what I would pay Netflix.  That’s about $100 a year.  And you know what, I’m glad to pay it.  I like getting  out and going to get a movie. I like thinking, “I want a movie tonight.”  And honestly sometimes I like not making it to get a movie.

I'm Addicted to Red Box

There are lots of things like this- things I could do cheaper some other way but I choose to do it my way because I like it.

It’s why I am not a frugal. We make money and we like to spend it– sometimes on things that are a bigger hassle and lower quality.

So, maybe I’ll see you at the Red Box soon.

Never ask of money spent
Where the spender thinks it went.
Nobody was ever meant
To remember or invent
What he did with every cent.
Robert Frost, The Hardship of Accounting

I remember reading this years ago when I first came up with the Three Piece Plan. I got goosebumps realizing I was onto something- because if this was written decades ago it meant I had hit on a principle.

Indeed, Robert Frost nailed it on the head- and it’s why regular budgets don’t work- “No one was ever meant to remember or invent what he did with every cent.”

I found a good reason to use debit cards- they help when you have junk you need to return to the store.

A pair of Old Navy jeans ended up in my possession. They were the wrong color. That dark dark blue makes me legs itch.

So I went to return them. As it turns out my wife had used Ye Old Debit Card to buy them. My receipt was long ago sent overboard somewhere. Ah, but this is where I got a little education in “The Ways of the Modern Retailer”

If you pay for your jeans with plastique (plastic- for the less French of you) then Old Navy can track them, determine that indeed they are Old Navy Jeans- for some reason the “OLD NAVY” label is not proof enough. From there you can exchange your purchase.

This isn’t the first run in I’ve had with the debit card trail.

But it is the one that got my head spinning on the age old question of what’s best- Cash or “Credit” (or debit- but Cash or Credit has a better ring to it.)

I work from a human behavior point of view and, right now, my gut tells me that human behavior works better when dealing with cash. It is easy to see– when it’s gone, it’s gone. And even better, you can easily see when funds are thinning up for the month.

So the debate continues- what works better- using cash for Everyday Money or using a debit card.

If you are a user of the Three Piece Plan you know we pull out a weekly amount of spending money (if you are not using the Plan click here and sign up to get started!) So I have two concerns with using a debit card for Everyday Money-

1. When you use a debit card you don’t know exactly how much money you have to spend.
2. You run the risk of incurring over draft fees.

So I am working on what I think the final answer is- let me know what you think…

Look- I have been going about this all wrong–  I don’t want to be a blogger- per se.  I have a solid method that will get real results for people.   And I want to teach everyone who wants to learn- for free.

My previous approach looked like I was trying to sell something.  But I’m not- I don’t know what I would sell.

But I do have the Three Piece Plan- It will help you get your money under control and it is really easy to use.   If you contact me I will teach you how to use it.

I am also going to go public with it– so you can see it and then ask questions.   So stay tuned!