We'll be changing from Geico to Allstate here in August.
I found out we can save over $110/6 months by switching.
Also, for the sake of simplicity, I'm going to put us on the six-month plan if they offer it. Right now at Geico we have a 4-month plan. I want simplicity. Absolute simplicity. One even payment a month is a lot easier to deal with than four unequal payments and two months "off". Drives me nuts. So, if they offer it, we're going to take advantage of it.
Monday, May 12, 2008
Yay, I've got some opinions!
I've read about six books from front to back now on the topic of personal finance.
I'm surprised how infrequently the experts have anything close to the same opinion. They really are divided on a number of issues. I was surprised to see that I had formed some of my own. I normally have quite a few, you see, but I wait to form anything strong until I've educated myself some more.
The Emergency Fund
Suze Ormand says no emergency fund until all credit card debt has been paid off. I disagree. I feel that I have a good reason to disagree; my husband has been laid of twice in the last year. He was working in leasing and estimating for the construction industry and down here many people have lost their jobs. Both times we had enough money saved that we were able to pay our bills until he found another job. Unemployment helped a lot, too. Without that savings we would have been screwed and even deeper in debt.
Credit Cards
Ms. Ormand also says that your emergency fund can temporarily be credit cards. She also suggests that once all your debt is paid off, you apply for as many cards as you can until you have about eight month's worth of income available as your limit. Then you don't use them unless you need them. This would be a recipe for disaster in our family. I would imagine that most people would be the same way. Like telling an alcoholic, "Hey, I know you aren't going to use this alcohol unless it's a real emergency--maybe a buddy loses a leg and you need to cleanse the wound--but you should have enough laying around anyway." My name is Lizz and I have a problem with credit cards. Therefore I have a bare minimum. And some would argue that you don't truly need any.
Bulk Buying
One of the authors, I think it might have been in the Automatic Millionaire but I'm not sure (I returned the books I had read as soon as I read them--I'm awful about late fees and am trying to change that), suggests that you should not stock up on things that you use. You should instead use the money you would have spent on these items and save it. Then, when you need it, you buy one of the items.
I never used coupons or anything like that until I came across The Grocery Game. It's been an inexpensive education that has really changed the way that I shop. We get razors, shaving cream, body wash, toothpaste, feminine products... you name it and we have gotten it for free or very very cheap. Name brand items that we use. At first I was so excited about getting free stuff that I "bought" a lot of things we wouldn't use. It didn't go to waste, however. My best friends have five kids so I cleaned out my stockpile and gave them lots of goodies.
Still, why would you pay $9.99 for a razor when you can get it for free? Or pay $3.59 for a cleaning solution when you can wait until they are B1G1 and then use coupons to get two for $0.27 each?
Yes, we're spending money each month on things we'll use in the future. It's not a "necessary item" right this second. And yes, we could be earning interest on that money. However, by doing things this way we've done amazing things to our grocery bill and we've saved thousands of dollars on things we needed anyway. (I kept a spreadsheet for a long time. I hit a thousand about four months into The Game.) I still have some items left that I bought last summer when they were dirt cheap. Do razors spoil? No.
The author suggested that having a closet full of toilet paper isn't the best use of money. I suggest that the author has never found their favorite uber-expensive TP on sale of twelve cents a roll. (The one brand loyalty we have is to Charmin.) It's a definite "need" item and paying the normal price is crazy.
I'm surprised how infrequently the experts have anything close to the same opinion. They really are divided on a number of issues. I was surprised to see that I had formed some of my own. I normally have quite a few, you see, but I wait to form anything strong until I've educated myself some more.
The Emergency Fund
Suze Ormand says no emergency fund until all credit card debt has been paid off. I disagree. I feel that I have a good reason to disagree; my husband has been laid of twice in the last year. He was working in leasing and estimating for the construction industry and down here many people have lost their jobs. Both times we had enough money saved that we were able to pay our bills until he found another job. Unemployment helped a lot, too. Without that savings we would have been screwed and even deeper in debt.
Credit Cards
Ms. Ormand also says that your emergency fund can temporarily be credit cards. She also suggests that once all your debt is paid off, you apply for as many cards as you can until you have about eight month's worth of income available as your limit. Then you don't use them unless you need them. This would be a recipe for disaster in our family. I would imagine that most people would be the same way. Like telling an alcoholic, "Hey, I know you aren't going to use this alcohol unless it's a real emergency--maybe a buddy loses a leg and you need to cleanse the wound--but you should have enough laying around anyway." My name is Lizz and I have a problem with credit cards. Therefore I have a bare minimum. And some would argue that you don't truly need any.
Bulk Buying
One of the authors, I think it might have been in the Automatic Millionaire but I'm not sure (I returned the books I had read as soon as I read them--I'm awful about late fees and am trying to change that), suggests that you should not stock up on things that you use. You should instead use the money you would have spent on these items and save it. Then, when you need it, you buy one of the items.
I never used coupons or anything like that until I came across The Grocery Game. It's been an inexpensive education that has really changed the way that I shop. We get razors, shaving cream, body wash, toothpaste, feminine products... you name it and we have gotten it for free or very very cheap. Name brand items that we use. At first I was so excited about getting free stuff that I "bought" a lot of things we wouldn't use. It didn't go to waste, however. My best friends have five kids so I cleaned out my stockpile and gave them lots of goodies.
Still, why would you pay $9.99 for a razor when you can get it for free? Or pay $3.59 for a cleaning solution when you can wait until they are B1G1 and then use coupons to get two for $0.27 each?
Yes, we're spending money each month on things we'll use in the future. It's not a "necessary item" right this second. And yes, we could be earning interest on that money. However, by doing things this way we've done amazing things to our grocery bill and we've saved thousands of dollars on things we needed anyway. (I kept a spreadsheet for a long time. I hit a thousand about four months into The Game.) I still have some items left that I bought last summer when they were dirt cheap. Do razors spoil? No.
The author suggested that having a closet full of toilet paper isn't the best use of money. I suggest that the author has never found their favorite uber-expensive TP on sale of twelve cents a roll. (The one brand loyalty we have is to Charmin.) It's a definite "need" item and paying the normal price is crazy.
Sunday, May 11, 2008
When to throw in the towel?
(My Husband and the Terrible, Horrible, No Good, Very Bad Day (PART 2))
The value of my husband's car, based on age, mileage, and condition is under $800. Add in some of the things that need to be fixed and you'd have to be a real sucker. It runs and has A/C, so it has that going for it. It also has fumes so bad that 1) my child is not allowed in it and 2) if it's parked in the garage the door needs to be cracked for a few hours because the whole house will stink. On top of that something is wrong with the airbag. It starts... almost... every time he drives it though sometimes he needs to try a few times. Those are the basic issues, anyway.
But again, it runs. And he only needs it to go to work. However, in order for us to feel safe with that we need to:
At what point do we throw in the towel? When do we say, "You know, I don't want to put half the value or all the value of this car back into it when we know it needs at least another thousand dollars of other repairs within the next year,"?
We have $400. It's sitting in our account. Heck, I saved $125 this month towards automobile repairs, so we'd only have to dent the rest of our savings.
I hate his car. I really really hate it. I haven't ridden it in several years. It stinks, it's noisy, and I'm always terrified that we'll be somewhere and then can't leave because it won't start.
The value of my husband's car, based on age, mileage, and condition is under $800. Add in some of the things that need to be fixed and you'd have to be a real sucker. It runs and has A/C, so it has that going for it. It also has fumes so bad that 1) my child is not allowed in it and 2) if it's parked in the garage the door needs to be cracked for a few hours because the whole house will stink. On top of that something is wrong with the airbag. It starts... almost... every time he drives it though sometimes he needs to try a few times. Those are the basic issues, anyway.
But again, it runs. And he only needs it to go to work. However, in order for us to feel safe with that we need to:
- Pay the dealer $110 for a diagnostic of the airbag system.
- Pay to either repair the system (the least expensive option according to one mechanic is the clock spring which is $300ish. Since the horn works, this is probably not the case. However, my research on the internet says it could be a few other things in the $60-$80 range.)
- Or pay to disconnect the system (and no, he does not have an airbag on/off switch as some cars do)
At what point do we throw in the towel? When do we say, "You know, I don't want to put half the value or all the value of this car back into it when we know it needs at least another thousand dollars of other repairs within the next year,"?
We have $400. It's sitting in our account. Heck, I saved $125 this month towards automobile repairs, so we'd only have to dent the rest of our savings.
I hate his car. I really really hate it. I haven't ridden it in several years. It stinks, it's noisy, and I'm always terrified that we'll be somewhere and then can't leave because it won't start.
Car Options
My posts make more sense when the first posts are actually posted...
Option 1:
48-Month Lease
2009 Toyota Corolla
About $2000 due at signing
Pros:
Gets excellent gas mileage
Lease = tax write off (part of it)
Cons:
Big OOP cost
Insurance goes up over $50
The lease is for four years
12,000 miles/year
(Note: "due at signing" is very likely going to end up changing as part of the negotiations since we're buying 2 cars... one for us and one by my mom)
Option 2:
36-Month Lease
2008 PT Cruiser
$1995 due at signing
Pros:
I've wanted a PT Cruiser since the first time I saw one, about three months after they came out.
Much more interior room; hubby is 6'4", I'm 5'10"
Easier for business to carry equipment
Lease is only for 3 years
Insurance goes up less than $20
Lease = tax write off (part of it)
Cons:
Big OOP cost
Gas mileage sucks
(Note: The $2.99 gas card for three years only is a better deal than the Corolla if gas goes over $5.50/gallon)
Option 3:
Purchase
5 year finance
2007 PT Cruiser
under 10,000 miles
Pros:
Excellent price - under 11k drive-out price
Financing is same monthly payment as lease
Lifetime Powertrain Warranty
Own vehicle at the end
"New" used vehicle
Can trade in
No mileage worries
Cons:
Monthly payments for five years
Not sure if we get the gas card or not
Option 1:
48-Month Lease
2009 Toyota Corolla
About $2000 due at signing
Pros:
Gets excellent gas mileage
Lease = tax write off (part of it)
Cons:
Big OOP cost
Insurance goes up over $50
The lease is for four years
12,000 miles/year
(Note: "due at signing" is very likely going to end up changing as part of the negotiations since we're buying 2 cars... one for us and one by my mom)
Option 2:
36-Month Lease
2008 PT Cruiser
$1995 due at signing
Pros:
I've wanted a PT Cruiser since the first time I saw one, about three months after they came out.
Much more interior room; hubby is 6'4", I'm 5'10"
Easier for business to carry equipment
Lease is only for 3 years
Insurance goes up less than $20
Lease = tax write off (part of it)
Cons:
Big OOP cost
Gas mileage sucks
(Note: The $2.99 gas card for three years only is a better deal than the Corolla if gas goes over $5.50/gallon)
Option 3:
Purchase
5 year finance
2007 PT Cruiser
under 10,000 miles
Pros:
Excellent price - under 11k drive-out price
Financing is same monthly payment as lease
Lifetime Powertrain Warranty
Own vehicle at the end
"New" used vehicle
Can trade in
No mileage worries
Cons:
Monthly payments for five years
Not sure if we get the gas card or not
Mother's Day
My hubby did good. It's amazing how a $3.00 bag of a woman's favorite chocolate, a card from the husband, and a card "from" the baby can feel like a diamond necklace. (Of course, I've never really gotten a diamond necklace, so I might be totally off base. If anyone wants to educate me on this matter by giving me one, I'd be willing to revise my opinion!)
My mom hates her digital camera. It's a Sony Mavica that takes pictures on a floppy disk. It's heavy, bulky, has a longggg shutter lag that always frustrates her, a preview screen that cannot be seen outside, and takes very low resolution pictures (compared to today's models).
We decided that with the money we budgeted for mother's day and her birthday that we were going to get her a new digital camera. We went to two stores today and found what we wanted at Circuit City. We were also able to get her a 2 GB memory card for only $17. She loves her new Kodak Easy Share camera.
My mom hates her digital camera. It's a Sony Mavica that takes pictures on a floppy disk. It's heavy, bulky, has a longggg shutter lag that always frustrates her, a preview screen that cannot be seen outside, and takes very low resolution pictures (compared to today's models).
We decided that with the money we budgeted for mother's day and her birthday that we were going to get her a new digital camera. We went to two stores today and found what we wanted at Circuit City. We were also able to get her a 2 GB memory card for only $17. She loves her new Kodak Easy Share camera.
The easiest decision ever
We arrived at the Toyota dealership and after a brief recap of our needs (the internet rep I was dealing with had the day off) we were on our way towards the Corolla. I got inside and was instructed how to move the seat down and back, change the tilt, and maneuver the steering wheel. Right off I could tell I was in trouble. I would be able to drive the car--barely. And that was with everything set optimally.
I looked at my husband and said, "before I even put the key in this car, you need to see if you'll fit."
With his knee brace on, there was no way that he'd be able to drive the car. Without it he could drive it, but only if he really had to.
We also tried out the Matrix which had the same lease. They tried to get us to try a Scion, only $30 a month more. No, thanks.
I called mom on the way home. All of us were cracking up about it. When we got back she admitted that's why she didn't want to go with us. I asked why she hadn't told us about it. She said we needed to see for ourselves. I assume she meant that she really wanted us to feel like we had done due diligence in looking into other cars so we could get our PT Cruiser with a clear conscious.
Tomorrow mom and I are going back to Chrysler so she can test drive. If she likes them I'm going to work on negotiating the price lower and seeing if I can get us gas cards. I think they're only for the 2008. Since these two are 2007 they don't apply. Cross your fingers and wish me luck!
If things work out favorably I'll make a small deposit so that when our Capital One checks come in the mail we can complete the deal. I can't apply for financing without my hubby so there's no point in doing that tomorrow. Mom is undecided.
The last thing we're going to do, when we go back to write the actual check and check their financing, is to say, "by the way, what would you give us for our cars?"
I looked at my husband and said, "before I even put the key in this car, you need to see if you'll fit."
With his knee brace on, there was no way that he'd be able to drive the car. Without it he could drive it, but only if he really had to.
We also tried out the Matrix which had the same lease. They tried to get us to try a Scion, only $30 a month more. No, thanks.
I called mom on the way home. All of us were cracking up about it. When we got back she admitted that's why she didn't want to go with us. I asked why she hadn't told us about it. She said we needed to see for ourselves. I assume she meant that she really wanted us to feel like we had done due diligence in looking into other cars so we could get our PT Cruiser with a clear conscious.
Tomorrow mom and I are going back to Chrysler so she can test drive. If she likes them I'm going to work on negotiating the price lower and seeing if I can get us gas cards. I think they're only for the 2008. Since these two are 2007 they don't apply. Cross your fingers and wish me luck!
If things work out favorably I'll make a small deposit so that when our Capital One checks come in the mail we can complete the deal. I can't apply for financing without my hubby so there's no point in doing that tomorrow. Mom is undecided.
The last thing we're going to do, when we go back to write the actual check and check their financing, is to say, "by the way, what would you give us for our cars?"
Friday, May 9, 2008
My Husband and the Terrible, Horrible, No Good, Very Bad Day (PART 1)
The warning light for the airbag system turned on in hubby's Tuesday. I've talked to five different people--all who know things about cars--and I've gotten some conflicting advice... even from the same person!
The Tool at the local dealership (the same one, by the way, that missed a cracked axle in three visits which our non-dealership mechanic found on the first visit!) told me that we needed to make an appointment immediately. The airbag "could go off" if we hit a pothole or the curb. It might even go off randomly. And, he added, since it's a 1995 car the "airbag isn't nice and soft like the ones they have today; it's like burlap and will cut your husband's face up".
Yes, he really said that.
Hubby took this as an opportunity to call said service manager and chew him out. The "cut your face up" comment was incredibly inappropriate. Anyway, the same service manager gave us two other answers including that the airbag is disabled and shouldn't deploy. *sighs*
Four other people all said the same thing. 1) The airbag shouldn't deploy. 2) But since it's a Ford, you never know.
Wow.
Needless to say, he's a little nervous about driving his car!
(More on the issue later.)
Hubby woke up and told me he was taking his bike to work. No problem; it was a nice day outside. (For Florida nice day = "no hurricane heading our way, clear skies, and a slight wind so that 100 degrees only feels like 97.") I got the kid and had time to walk her into the nursery, open her diaper, and start cleaning her bum before the garage door went up again.
"What's up, love?"
"My bike... is broken."
At that point I had to crack up. It really sucked but both of us have gained a lot of perspective since our daughter was born. It was just a thing. (A thing that can be fixed for little money.) I had him finish snapping her onsie and put her in the car seat while I threw on some clothes and brushed my hair and teeth.
Off we went to his office. He wasn't even late. In fact, he was the first one to arrive.
He put the key in the lock and found out that his boss had given him the wrong one!
At that point I had pulled out of my parking space and was alongside the curb to the entryway of the office. I reparked the car, rolled down the windows, and waited with him until his coworker showed up.
That's how the day started. Luckily, thankfully, the rest of it was pretty good.
The Tool at the local dealership (the same one, by the way, that missed a cracked axle in three visits which our non-dealership mechanic found on the first visit!) told me that we needed to make an appointment immediately. The airbag "could go off" if we hit a pothole or the curb. It might even go off randomly. And, he added, since it's a 1995 car the "airbag isn't nice and soft like the ones they have today; it's like burlap and will cut your husband's face up".
Yes, he really said that.
Hubby took this as an opportunity to call said service manager and chew him out. The "cut your face up" comment was incredibly inappropriate. Anyway, the same service manager gave us two other answers including that the airbag is disabled and shouldn't deploy. *sighs*
Four other people all said the same thing. 1) The airbag shouldn't deploy. 2) But since it's a Ford, you never know.
Wow.
Needless to say, he's a little nervous about driving his car!
(More on the issue later.)
Hubby woke up and told me he was taking his bike to work. No problem; it was a nice day outside. (For Florida nice day = "no hurricane heading our way, clear skies, and a slight wind so that 100 degrees only feels like 97.") I got the kid and had time to walk her into the nursery, open her diaper, and start cleaning her bum before the garage door went up again.
"What's up, love?"
"My bike... is broken."
At that point I had to crack up. It really sucked but both of us have gained a lot of perspective since our daughter was born. It was just a thing. (A thing that can be fixed for little money.) I had him finish snapping her onsie and put her in the car seat while I threw on some clothes and brushed my hair and teeth.
Off we went to his office. He wasn't even late. In fact, he was the first one to arrive.
He put the key in the lock and found out that his boss had given him the wrong one!
At that point I had pulled out of my parking space and was alongside the curb to the entryway of the office. I reparked the car, rolled down the windows, and waited with him until his coworker showed up.
That's how the day started. Luckily, thankfully, the rest of it was pretty good.
Monday, May 5, 2008
April and Early May Successes
In the three weeks since I've taken control of our finances we:
- Have gone from no emergency savings to having $2500 in an interest bearing account.
- Have switched to a zero-based budgeting system which has curtailed our spending a great deal.
- In addition to the zero-based budgeting we're also using a cash-envelope system for some things and an electronic-envelope system for others.
- Have money saved towards several goals that are very important to us.
- Have changed the way we deal with non-monthly expenses.
- Have consolidated our debt and reduced our interest rate by half.
- Have acquired liability insurance for myself personally and for our company.
- Have canceled over $670/year in unnecessary monthly services.
- Have switched our phone service over to our cable provider and in turn saved over $380/year.
- May have an additional $500-$1000 at the end of the month to put towards something (I haven't decided what yet).
- Have come in under-budget for food and household items the last two weeks.
I think I'm going to post my successes on a regular basis. It's easy to start feeling badly about our previous choices and to get discouraged. I think we've made a terrific amount of progress. So that's what I'm going to focus on. We're building wealth, one day at a time.
- Have gone from no emergency savings to having $2500 in an interest bearing account.
- Have switched to a zero-based budgeting system which has curtailed our spending a great deal.
- In addition to the zero-based budgeting we're also using a cash-envelope system for some things and an electronic-envelope system for others.
- Have money saved towards several goals that are very important to us.
- Have changed the way we deal with non-monthly expenses.
- Have consolidated our debt and reduced our interest rate by half.
- Have acquired liability insurance for myself personally and for our company.
- Have canceled over $670/year in unnecessary monthly services.
- Have switched our phone service over to our cable provider and in turn saved over $380/year.
- May have an additional $500-$1000 at the end of the month to put towards something (I haven't decided what yet).
- Have come in under-budget for food and household items the last two weeks.
I think I'm going to post my successes on a regular basis. It's easy to start feeling badly about our previous choices and to get discouraged. I think we've made a terrific amount of progress. So that's what I'm going to focus on. We're building wealth, one day at a time.
Judge-judge-judge
It's fairly easy to write a preachy "I would never do that" post, and it's fairly common to find those types of posts lurking around personal finance blogs. A lot of them are amusing, some are thought provoking, and some prove that everyone is their own person.
One of the things that I don't "get" is why people buy dressings for their salad.
(Confession: I do buy blue cheese in a bottle. This is because T. Marzetti is the best ever and I find that blue cheese costs enough that it's just as efficient for me to buy the dressing on sale.)
It is SO easy to make an absolutely delicious dressing that exceeds anything I've found over the counter. Believe me, I've tried quite a few in my time. Why? Because I hadn't yet learned how easy it was.
Sure, I had made my own dressing, but I didn't learn this one trick...
Mix in olive oil!
I had always put some herbs and spices on the salad and threw some vinegar, usually balsamic, over it. It worked but it certainly wasn't great.
One day when I was musing out loud I received some insight from my mom. I love caprese salads (tomato/mozzarella/basil/balsamic dressing) and it's one of the only salads I've actually purchased when eating out. We make it at home all the time but the dressing just wasn't the same, and that's a big deal breaker with this salad. "Oh, just add some EVOO in the blender. You have to add it slowly."
So guess what I've made fresh just about every day since then? You got it--homemade salad dressings.
My favorite is balsamic vinegar but we use all kinds. Tarragon white is also pretty good. I put my herbs and spices into the blender, dump a bunch of vinegar in, add a tad bit of sugar, and then put the lid on. "Blend" then slowly raise the center part and drizzle the oil in slowly. It ends up being absolutely delicious and far better than anything you can get at the store.
Now that I know the trick I wouldn't even consider buying it. Why bother? I can have a different type every day. One day I might have a tarragon/oregano dressing. The next I might have basil and garlic. The following day might be a rosemary/sage. It never gets old and it sure costs a lot less!
One of the things that I don't "get" is why people buy dressings for their salad.
(Confession: I do buy blue cheese in a bottle. This is because T. Marzetti is the best ever and I find that blue cheese costs enough that it's just as efficient for me to buy the dressing on sale.)
It is SO easy to make an absolutely delicious dressing that exceeds anything I've found over the counter. Believe me, I've tried quite a few in my time. Why? Because I hadn't yet learned how easy it was.
Sure, I had made my own dressing, but I didn't learn this one trick...
Mix in olive oil!
I had always put some herbs and spices on the salad and threw some vinegar, usually balsamic, over it. It worked but it certainly wasn't great.
One day when I was musing out loud I received some insight from my mom. I love caprese salads (tomato/mozzarella/basil/balsamic dressing) and it's one of the only salads I've actually purchased when eating out. We make it at home all the time but the dressing just wasn't the same, and that's a big deal breaker with this salad. "Oh, just add some EVOO in the blender. You have to add it slowly."
So guess what I've made fresh just about every day since then? You got it--homemade salad dressings.
My favorite is balsamic vinegar but we use all kinds. Tarragon white is also pretty good. I put my herbs and spices into the blender, dump a bunch of vinegar in, add a tad bit of sugar, and then put the lid on. "Blend" then slowly raise the center part and drizzle the oil in slowly. It ends up being absolutely delicious and far better than anything you can get at the store.
Now that I know the trick I wouldn't even consider buying it. Why bother? I can have a different type every day. One day I might have a tarragon/oregano dressing. The next I might have basil and garlic. The following day might be a rosemary/sage. It never gets old and it sure costs a lot less!
Choices
Here are my choices for the $500 we'll have "extra" this month if no more of my appointments cancel. Since I'm trying out the zero-based budget system, this has to go towards something.
What is an FSA? Something new to me. It's a Freedom Savings Account. Basically instead of having my life insurance, which is $44 every three months, come out in one lump sum that we plan for four times a year, we're taking a third of that and putting it into our FSA account each month. Then when the $44 "hits" I withdraw the amount from FSA (which has meanwhile been earning 3% interest) and put it into the account the expense comes out of. We have this set up for all our expenses that happen every two years, annually, and several times a year.
I also have set up a vacation fund and emergency car fund. I want to have these fully funded in a certain amount of time. The down payment for a house should be automatic, as should the educational expenses, but in our zero-based budgeting system we don't have it every month. It depends on how many appointments I have (and cancellations), and whether or not the school renews my faculty option in August after this round of classes ends. It also depends on student loans that come due. Since my husband is due for a raise, possibly, this month, that will also affect it as well as the amount of payments that he needs to make.
We have our FSA through ING. It's just a savings account that we named "FSA". We also have one named "Emergency Savings".
- Open a new ING account for the baby's educational expenses. This is for opportunities such as field trips, considering private schools, etc., not college. Right now this is not factored into my FSA accounts.
- Open a new ING account for a house down payment. This is a goal we need to start saving for now. Right now this is not factored into my FSA accounts.
- Put it in our FSA ING account in the "car emergency fund" which is for car repairs or replacement. Right now I'm putting in $3000/24, or about $125/month.
- Put it in my Roth IRA, which I have not contributed to since 7/07 due to upcoming maternity leave and knowing my business would fall back. This would almost make up for not putting in my $60/month in the meantime.
- Pay off $500 more towards Capital One which would reduce my monthly payment by another $15. I mentioned before that I realize at 0% APR this is not the loan to pay off first, however lowering my monthly payment frees up monthly cash and gives us some breathing room if we need it. We are still going to have the full amount we planned on paying automatically deducted each month and only change it if something happens. (I know, good intentions, right? That's why it's automatic.)
- Pay off $500 towards the BOA Gold Loan which has an APR of 15.99%. This will reduce the term by about a month and a half but not reduce the amount we pay each month.
- Put it into our FSA for next month, see if we need it, and then apply it to an above option if we don't.
- Put it into our FSA in the "unexpected expense" category.
What is an FSA? Something new to me. It's a Freedom Savings Account. Basically instead of having my life insurance, which is $44 every three months, come out in one lump sum that we plan for four times a year, we're taking a third of that and putting it into our FSA account each month. Then when the $44 "hits" I withdraw the amount from FSA (which has meanwhile been earning 3% interest) and put it into the account the expense comes out of. We have this set up for all our expenses that happen every two years, annually, and several times a year.
I also have set up a vacation fund and emergency car fund. I want to have these fully funded in a certain amount of time. The down payment for a house should be automatic, as should the educational expenses, but in our zero-based budgeting system we don't have it every month. It depends on how many appointments I have (and cancellations), and whether or not the school renews my faculty option in August after this round of classes ends. It also depends on student loans that come due. Since my husband is due for a raise, possibly, this month, that will also affect it as well as the amount of payments that he needs to make.
We have our FSA through ING. It's just a savings account that we named "FSA". We also have one named "Emergency Savings".
Great conversation
Hubby and I had a really good conversation last night about the issues that have been popping up. He was in a receptive mood, we were both relaxed, and I managed to present it in a way that finally made sense to him.
What's more, I think I found the root cause of our issues. Obviously his will power is not the issue. But something keeps happening that causes issues to repeat themselves. Big issues.
Remember the chicken I mentioned? An example of this issue would be that he refused to ask the butcher to take a package of chicken that was far larger than what we needed and cut it to the size we did need. This is one of the reasons I decided not to buy it. (Besides the fact that it was over four dollars a pound!) His response was that he could easily vacuum seal it and then store the excess in the fridge.
My hubby "gets" stockpiling. He understands buying on sale and then storing for later. In fact he does some of this on his own now and I'm proud of him for it. But if it requires "bothering" someone then he won't do it. So, in his mind, he'd rather take a $12 loss over a receipt or pay too much for too much chicken.
This reminds me of one of our first dates; we went to the county fair with a bunch of friends. The group of us were walking and I suddenly noticed we were missing someone! I had to go back to the area we had just come through--the game booths--and extract him from them. He was standing there, politely listening to the booth-worker's attempt to get him to play the game. He didn't want to be rude!
He's not nearly that bad now, and there's nothing wrong with being polite, but I don't get it! He's received numerous bonuses and kudos at his jobs for his negotiating skills. He just wouldn't use them in his personal life! He's the type of guy that would pay $4,000 too much for a car because he doesn't want to be a jerk customer. (This hasn't happened, but it wouldn't surprise me if it did at some point in the future if he continued his current mindset.)
After our conversation he now things of himself as the CEO of his own life. I said, "Honey, if you don't want to go through the trouble for you, then think of it as working for me and the baby. You might be willing to eat that $12. How about you instead go and get the receipt and put the rebate money in her savings account. I know you don't care, but that money can go a long way towards a goal for the family."
That's a very short version of a very long conversation, of course, but it worked. He gets it now. You will not get what you don't ask for.
What's more, I think I found the root cause of our issues. Obviously his will power is not the issue. But something keeps happening that causes issues to repeat themselves. Big issues.
Remember the chicken I mentioned? An example of this issue would be that he refused to ask the butcher to take a package of chicken that was far larger than what we needed and cut it to the size we did need. This is one of the reasons I decided not to buy it. (Besides the fact that it was over four dollars a pound!) His response was that he could easily vacuum seal it and then store the excess in the fridge.
My hubby "gets" stockpiling. He understands buying on sale and then storing for later. In fact he does some of this on his own now and I'm proud of him for it. But if it requires "bothering" someone then he won't do it. So, in his mind, he'd rather take a $12 loss over a receipt or pay too much for too much chicken.
This reminds me of one of our first dates; we went to the county fair with a bunch of friends. The group of us were walking and I suddenly noticed we were missing someone! I had to go back to the area we had just come through--the game booths--and extract him from them. He was standing there, politely listening to the booth-worker's attempt to get him to play the game. He didn't want to be rude!
He's not nearly that bad now, and there's nothing wrong with being polite, but I don't get it! He's received numerous bonuses and kudos at his jobs for his negotiating skills. He just wouldn't use them in his personal life! He's the type of guy that would pay $4,000 too much for a car because he doesn't want to be a jerk customer. (This hasn't happened, but it wouldn't surprise me if it did at some point in the future if he continued his current mindset.)
After our conversation he now things of himself as the CEO of his own life. I said, "Honey, if you don't want to go through the trouble for you, then think of it as working for me and the baby. You might be willing to eat that $12. How about you instead go and get the receipt and put the rebate money in her savings account. I know you don't care, but that money can go a long way towards a goal for the family."
That's a very short version of a very long conversation, of course, but it worked. He gets it now. You will not get what you don't ask for.
Sunday, May 4, 2008
Habits
I decided that even though our money arguments, while very few and very far between, are educational and I feel like others might get value out of them, I'm not going to share them.
I am, however, going to talk about one thing that happened last night.
We were given a rebate for a type of Whiskey through a program called bzzagent. Hubby decided last night to go to the store and pick some up. We looked at the form, discussed what we needed and what size qualified, and off he went.
When he got home we noticed that we weren't given a receipt. I looked twice in the bag, checked out the floor area surrounding the kitchen, and even checked the bottom of the bottle. Nope, no receipt. Not in the car or in his wallet, either.
He absolutely refused to go to the store and ask for his receipt. I couldn't believe it. We live just over a mile away from the store and there was no traffic.
This actually sparked a big argument.
His thought: I paid for this with money from "my" envelope which you said I could do anything I wanted with. So, I can buy a $13 bottle of whiskey if I want.
My argument: It will take three minutes to go back to the store and get the receipt and get $12 of that money back.
This is a common issue and I don't know how to bring it up in a way that I can make him understand.
Whenever there is an issue that involves asking for something that would monetarily benefit him in some way, he closes up, gets extremely defensive, and will throw up issues that are related but have nothing to do with the one we are discussing. This is the only topic he does this with.
He won't call clients a day or two after he's given them a massage to check in; nor will he call clients he hasn't seen in a few months. He doesn't want to "bother" them.
Last night he didn't want to be a jerk by going back. They probably had dozens of receipts in the trash and he didn't want anyone to dig through the trash. There were eight people there when he was there and he didn't want to wait in line, make a fuss, and then have people waiting and getting impatient.
It was better, to him, to let go of $12 than call someone on their mistake of not giving a receipt.
We didn't get anywhere in our conversation. I couldn't get him to see that it wasn't about how he spends his money. We both get an amount to spend however we want, but once it's gone, it's gone. He can buy quarter-dispenser-rings and gummy worms for all I care.
Finally I called the store. I apologized for bothering them on a Saturday night and acknowledge that I appreciated their time and help. She laughed. Apparently, other than one rush, it's been dead due to the Kentucky Derby.
I told her about the receipt and she asked me a few questions. What was purchased? What size? Was anything else on the ticket? How did he pay for it? Which cashier was it?
I asked when a good time would be to come by and she said anytime. So I told her I was on my way.
The two clerks were extremely nice and apologized for my having to drive back there. I thanked them for their help. One other customer left when I walked in the door. Otherwise I was the only one.
It took me five minutes, less than ten cents worth of gas, and I made $12. If he doesn't want it, I figure, then I'll take it!
I need to find a way to have this conversation with him, however. Suggestions?
I am, however, going to talk about one thing that happened last night.
We were given a rebate for a type of Whiskey through a program called bzzagent. Hubby decided last night to go to the store and pick some up. We looked at the form, discussed what we needed and what size qualified, and off he went.
When he got home we noticed that we weren't given a receipt. I looked twice in the bag, checked out the floor area surrounding the kitchen, and even checked the bottom of the bottle. Nope, no receipt. Not in the car or in his wallet, either.
He absolutely refused to go to the store and ask for his receipt. I couldn't believe it. We live just over a mile away from the store and there was no traffic.
This actually sparked a big argument.
His thought: I paid for this with money from "my" envelope which you said I could do anything I wanted with. So, I can buy a $13 bottle of whiskey if I want.
My argument: It will take three minutes to go back to the store and get the receipt and get $12 of that money back.
This is a common issue and I don't know how to bring it up in a way that I can make him understand.
Whenever there is an issue that involves asking for something that would monetarily benefit him in some way, he closes up, gets extremely defensive, and will throw up issues that are related but have nothing to do with the one we are discussing. This is the only topic he does this with.
He won't call clients a day or two after he's given them a massage to check in; nor will he call clients he hasn't seen in a few months. He doesn't want to "bother" them.
Last night he didn't want to be a jerk by going back. They probably had dozens of receipts in the trash and he didn't want anyone to dig through the trash. There were eight people there when he was there and he didn't want to wait in line, make a fuss, and then have people waiting and getting impatient.
It was better, to him, to let go of $12 than call someone on their mistake of not giving a receipt.
We didn't get anywhere in our conversation. I couldn't get him to see that it wasn't about how he spends his money. We both get an amount to spend however we want, but once it's gone, it's gone. He can buy quarter-dispenser-rings and gummy worms for all I care.
Finally I called the store. I apologized for bothering them on a Saturday night and acknowledge that I appreciated their time and help. She laughed. Apparently, other than one rush, it's been dead due to the Kentucky Derby.
I told her about the receipt and she asked me a few questions. What was purchased? What size? Was anything else on the ticket? How did he pay for it? Which cashier was it?
I asked when a good time would be to come by and she said anytime. So I told her I was on my way.
The two clerks were extremely nice and apologized for my having to drive back there. I thanked them for their help. One other customer left when I walked in the door. Otherwise I was the only one.
It took me five minutes, less than ten cents worth of gas, and I made $12. If he doesn't want it, I figure, then I'll take it!
I need to find a way to have this conversation with him, however. Suggestions?
Some of my favorite cheap meals
I love to cook at home and we've found lots of excellent meals that cost very little to make. Here are two of our favorites:
Quesadillas:
Friends of ours had a quesadilla maker that they absolutely adore. We got to try it one night when we were over for dinner. It creates six "pockets" that can easily be cut apart. They hold heat like crazy. One day when I was pregnant and determined I drove to seven stores and called three more looking for it. We ended up getting it through amazon.com. (See below.)
It only takes the larger tortillas, I think 10". One pack of those has 10 tortillas which is enough for 5 quesadillas. We usually have a salad and split a quesadilla. It ends up being more than enough for the two of us. One quesadilla (no salad) is enough for a meal and "sticks" for 4-5 hours.
The best part is that you can customize every single one and that each uses very few ingredients. A large pack of cheese (about $7 at Publix for 2 lbs) lasts for a long time.
Our two favorite recipes:
Mexican - Use blended mexican cheese and whatever additives you'd like. We've found that chives, onions, olives, red peppers, and tomatoes are all really good. (I'd say 1-2 inside ingredients max.) Serve with sour cream and salsa. Yum!
Italian - Put about three spoonfuls of your favorite tomato sauce (a big jar will last you for weeks; freeze what you don't use the first two days into a day's worth of sauce), mozzarella or mixed Italian cheese, some herbs, and pepperoni. Yum! Other ingredients are great as well. This easily substitutes for pizza when we have a craving for it.
Sushi:
We love sushi and we've spent a lot of money on sushi in the past. This is a "quick fix" that is very cheap, nutritious, and that will soothe those evil cravings.
Make tuna fish salad however you like it. We do canned tuna, chopped onions, and a little bit of miracle whip. Roll this up with your sushi rice and nori. Serve with soy sauce. (There are numerous and excellent websites that have step-by-step directions.)
Vegetable sushi can be made with any ingredients you like. Avocado, cucumber, carrot, onion... the list goes on and on.
Make sure you buy both your sushi rice and nori in bulk at a chinese grocery store to save the most. Richard's (a local health food store) sold 7 sheets of nori for $4.99. We bought 40 sheets for $5.99 at the Chinese grocery. Richard's had one pound of sushi rice for almost five dollars. We bought 5 lbs. at the grocery for under six dollars.
Quesadillas:
Friends of ours had a quesadilla maker that they absolutely adore. We got to try it one night when we were over for dinner. It creates six "pockets" that can easily be cut apart. They hold heat like crazy. One day when I was pregnant and determined I drove to seven stores and called three more looking for it. We ended up getting it through amazon.com. (See below.)
It only takes the larger tortillas, I think 10". One pack of those has 10 tortillas which is enough for 5 quesadillas. We usually have a salad and split a quesadilla. It ends up being more than enough for the two of us. One quesadilla (no salad) is enough for a meal and "sticks" for 4-5 hours.
The best part is that you can customize every single one and that each uses very few ingredients. A large pack of cheese (about $7 at Publix for 2 lbs) lasts for a long time.
Our two favorite recipes:
Mexican - Use blended mexican cheese and whatever additives you'd like. We've found that chives, onions, olives, red peppers, and tomatoes are all really good. (I'd say 1-2 inside ingredients max.) Serve with sour cream and salsa. Yum!
Italian - Put about three spoonfuls of your favorite tomato sauce (a big jar will last you for weeks; freeze what you don't use the first two days into a day's worth of sauce), mozzarella or mixed Italian cheese, some herbs, and pepperoni. Yum! Other ingredients are great as well. This easily substitutes for pizza when we have a craving for it.
Sushi:
We love sushi and we've spent a lot of money on sushi in the past. This is a "quick fix" that is very cheap, nutritious, and that will soothe those evil cravings.
Make tuna fish salad however you like it. We do canned tuna, chopped onions, and a little bit of miracle whip. Roll this up with your sushi rice and nori. Serve with soy sauce. (There are numerous and excellent websites that have step-by-step directions.)
Vegetable sushi can be made with any ingredients you like. Avocado, cucumber, carrot, onion... the list goes on and on.
Make sure you buy both your sushi rice and nori in bulk at a chinese grocery store to save the most. Richard's (a local health food store) sold 7 sheets of nori for $4.99. We bought 40 sheets for $5.99 at the Chinese grocery. Richard's had one pound of sushi rice for almost five dollars. We bought 5 lbs. at the grocery for under six dollars.
Wow. $4.59/lb?
I'm not a big fan of poultry. It has to be in something for me to enjoy it and a lot of the times we will plan a few chicken meals to give ourselves a break from red meat. (The great majority of our meals are vegetarian; out of 90 meals and 30 snacks, 7-12/month have beef, 2-3/chicken. We eat fish, but I don't count that the same.)
Every week before we go to the grocery store I try to plan as many meals as possible out of ingredients we have on hand. Hubby and I discuss what we're really hungry for. Then I go through sales flyers (usually online) and determine what's on sale. This ends up being the remainder of our meals.
I used The Grocery Game for almost a year. It was my first experience using coupons, shopping lists, and matching up sales to get things for almost free. I learned a lot. Now I use those concepts on my own. We save at least $50 every week by doing it this way.
This week we decided that we wanted fajitas as one of our "hungry for it" choices. Usually this is a low cost meal for us. It's also one of the few ways that I enjoy chicken. I had the tortillas and salsa in my cart, ready to go. We headed towards the meat. I was horrified; chicken was $4.59/lb! Scratch that off the list. I'm really kicking myself for not stocking up with a local store had it for $1.29/lb a few weeks ago. We have a vacuum sealer and hopefully will be getting a chest freezer soon.
We did score big on the bacon this week. I usually avoid center cut bacon. Even at 2/$6 on sale it's only 12 ounces. I wait until the 16 ounce packages are 2/$6 and then stock up. Today, however, they had installed a coupon dispenser ("blinkie") right next to the display with $1.00 coupons! I ended up getting four 12-ounce center-cut bacons for $8!
Every week before we go to the grocery store I try to plan as many meals as possible out of ingredients we have on hand. Hubby and I discuss what we're really hungry for. Then I go through sales flyers (usually online) and determine what's on sale. This ends up being the remainder of our meals.
I used The Grocery Game for almost a year. It was my first experience using coupons, shopping lists, and matching up sales to get things for almost free. I learned a lot. Now I use those concepts on my own. We save at least $50 every week by doing it this way.
This week we decided that we wanted fajitas as one of our "hungry for it" choices. Usually this is a low cost meal for us. It's also one of the few ways that I enjoy chicken. I had the tortillas and salsa in my cart, ready to go. We headed towards the meat. I was horrified; chicken was $4.59/lb! Scratch that off the list. I'm really kicking myself for not stocking up with a local store had it for $1.29/lb a few weeks ago. We have a vacuum sealer and hopefully will be getting a chest freezer soon.
We did score big on the bacon this week. I usually avoid center cut bacon. Even at 2/$6 on sale it's only 12 ounces. I wait until the 16 ounce packages are 2/$6 and then stock up. Today, however, they had installed a coupon dispenser ("blinkie") right next to the display with $1.00 coupons! I ended up getting four 12-ounce center-cut bacons for $8!
Wednesday, April 30, 2008
My birthday came early this year...
I wanted a nice chef's knife for my birthday (coming in August). Last year I wanted a stand mixer, which I got. I love it. I'm all about cooking and baking at home. For one it tastes a lot better. Two, I know exactly what's going into my food. Three, it's crazy cheap compared to going out to eat.
My hubby has been doing a lot of work around the house lately and somehow got the courage to go into The Cabinet. This is a place in our kitchen where over 30-year's worth of my mother and father's kitchen stuff ended up. (Mom is still around and lives with us/we live with her/however you want to look at it. Dad passed in 10/05.) This is the cabinet that we keep telling ourselves we'll go through. We can kind of find what we need, but I know there's a lot there that can be kept in the garage that would free up space in the house itself.
Hubby tackled it one night this week. I don't think he finished it in the spare hour he had, but he did get some progress done.
And, better yet, he found a chef's knife.
I used it today. It was awesome. I love my fillet knife, don't get me wrong. It does the job most of the time. It's just not the most efficient tool.
Now I get to come up with something else I'd like for my birthday. I'm thinking that maybe I'll ask the household to chip in for a freezer that we can keep in our now-clean garage. This would enable us to stockpile more meat and also to cook more meals ahead. Right now we've got very limited space in our cold box no matter how we rearrange it. (Believe me--we've tried!) Used freezers that still work go for about $50-$100 in our area. (And yes, I'll check the EnergyStar rating.)
What I'd really like to ask for is a gift certificate to one of my favorite scrapbooking or craft stores. Honestly though, I've got half of a living room full of it. I love it, I use it, but I don't need anymore. What I need are things that will:
My hubby has been doing a lot of work around the house lately and somehow got the courage to go into The Cabinet. This is a place in our kitchen where over 30-year's worth of my mother and father's kitchen stuff ended up. (Mom is still around and lives with us/we live with her/however you want to look at it. Dad passed in 10/05.) This is the cabinet that we keep telling ourselves we'll go through. We can kind of find what we need, but I know there's a lot there that can be kept in the garage that would free up space in the house itself.
Hubby tackled it one night this week. I don't think he finished it in the spare hour he had, but he did get some progress done.
And, better yet, he found a chef's knife.
I used it today. It was awesome. I love my fillet knife, don't get me wrong. It does the job most of the time. It's just not the most efficient tool.
Now I get to come up with something else I'd like for my birthday. I'm thinking that maybe I'll ask the household to chip in for a freezer that we can keep in our now-clean garage. This would enable us to stockpile more meat and also to cook more meals ahead. Right now we've got very limited space in our cold box no matter how we rearrange it. (Believe me--we've tried!) Used freezers that still work go for about $50-$100 in our area. (And yes, I'll check the EnergyStar rating.)
What I'd really like to ask for is a gift certificate to one of my favorite scrapbooking or craft stores. Honestly though, I've got half of a living room full of it. I love it, I use it, but I don't need anymore. What I need are things that will:
- Make my life easier AND
- Save me money OR
- Make me money
Wow.
Just wow.
W-O-W, wow.
I'm reading "The Automatic Millionaire". It's one of the ten or so books on finance and wealth that I picked up from the library yesterday. It's an easy read and so far I'm about 130 pages into it.
Why am I "wowing"?
Because David Bach makes one really strong point.
You're working for yourself, right?
Are you really?
How much are you paying yourself?
David points out that most people aren't even working one hour a day for themselves. They go to work 40-60 hours a week and not one of those hours a week, let alone a day, is paying them. That's crazy!
For those of us in buckets of debt he recommends putting 1/2 what you would put towards "paying yourself" into accelerating your debt payoff but he does not recommend not paying yourself.
Something to think about, anyway...
W-O-W, wow.
I'm reading "The Automatic Millionaire". It's one of the ten or so books on finance and wealth that I picked up from the library yesterday. It's an easy read and so far I'm about 130 pages into it.
Why am I "wowing"?
Because David Bach makes one really strong point.
No matter how much money you are currently making, you ARE making enough to become rich.We've all heard, "pay yourself first," right? David shows the reader exactly how this works and offers some extremely persuasive and motivational points. Another one is, "who are you working for?" Are you working for the credit card companies? No. What about your mortgage holder? Uh-uh. The electric company? Nopers.
You're working for yourself, right?
Are you really?
How much are you paying yourself?
David points out that most people aren't even working one hour a day for themselves. They go to work 40-60 hours a week and not one of those hours a week, let alone a day, is paying them. That's crazy!
For those of us in buckets of debt he recommends putting 1/2 what you would put towards "paying yourself" into accelerating your debt payoff but he does not recommend not paying yourself.
Something to think about, anyway...
Tuesday, April 29, 2008
Another outside post that inspired me today...
It seems like all my blog reading today has reminded me of something I wanted to say!
One of my current projects is a book for massage therapists. Initially I had my framework all laid out and was expecting to write my rough draft in 3-4 weeks of full-time writing. I realized, however, that in order to write the book the way I had initially envisioned, I wouldn't be able to write "as me".
Is it better to be true to yourself and do things in a way that works for you, even if that means you're that much further away from a payday?
I think so. What are your thoughts?
One of my current projects is a book for massage therapists. Initially I had my framework all laid out and was expecting to write my rough draft in 3-4 weeks of full-time writing. I realized, however, that in order to write the book the way I had initially envisioned, I wouldn't be able to write "as me".
The Simple Dollar: The truth is that you should do everything you possibly can to speak in your natural voice, “optimal consumer contact” be damned, and any obstacles you put in the way of your natural voice will water down the message you want to send and the true relationship you’ll build with your readers.This post reminded me of that dilemma. Instead of creating a (hopefully) viable book I am now back to the drawing board. The idea is still a fabulous one, I'm still enthusiastic as all get out about it, but it's now cooking in my head a little more before I start really going to town on the rough draft.
Is it better to be true to yourself and do things in a way that works for you, even if that means you're that much further away from a payday?
I think so. What are your thoughts?
Renting works for us
The Millionaire Mommy Next Door wrote an involved post about rental pricing.
We're very lucky. Our landlord lives in Germany and lets his sister manage the property. (She in the mortgage business locally, and she's an awesome landlady!) He bought the home over 15 years ago when housing prices were much more reasonable. Our rent has increased a very small amount since 1996. It's at the point where we're paying in rent for a house what most people pay a month for an apartment! This is such a great situation for us.
Why we love renting:
We're very lucky. Our landlord lives in Germany and lets his sister manage the property. (She in the mortgage business locally, and she's an awesome landlady!) He bought the home over 15 years ago when housing prices were much more reasonable. Our rent has increased a very small amount since 1996. It's at the point where we're paying in rent for a house what most people pay a month for an apartment! This is such a great situation for us.
Why we love renting:
- There's no possible way we can buy a house right now. We'd be beyond "house poor". Since renting is the only option, we're secure in our rent and that it's not going to shoot up. He's actually making a profit off us and that's enough for him to be happy.
- We don't have to pay for any repairs. We do pay for small repairs, do them ourselves, and send in the receipt with a reduced rent check. We don't mind and we've earned some serious points with the owner because we don't get on the phone about every little thing. In the past few years we've had a water heater replaced, an A/C unit replaced, the thermostat for the A/C replaced (within 8 hours!), the roof fixed, and some other medium-sized things done. It didn't cost us a penny.
- We have the ability to move without worrying about selling the house. I have several friends who want to move out of state and are chained to their homes in this awful market.
- We don't have to deal with property taxes. The tax situation in this county is crazy and makes very little sense. Many people bought houses they could afford and are now in big trouble because the property value shot through the roof and they have hundreds more in taxes.
The faster you pull it, the less it hurts.
Lise is debating about manicures and other small efforts for feminine beauty and their payoff... http://www.electric-monk.net/lise/2008/03/28/the-20000-manicure-question/
This isn't exactly related to those probing thoughts, but it did remind me of a financial "mistake" that I'm happy about:
I made a business decision that has cost me loads of money and you know what? I'm happy about it! I'm duly-licensed as a massage therapist and as a facial specialist. One of the biggest money makers for skin care professionals is waxing. It's a great add-on service, it's fast, it pays well for the time it takes, the investment in product is small, and--this is the best part--your clients come back every 4-6 weeks to get it done again.
After I graduated the skin care program my husband and I hauled our butts up to the big trade show in Orlando. I was surrounded by so many choices! I initially had wanted to purchase everything I needed to expand my business in that direction. After being so overwhelmed I stepped back and did more research. The only thing I really put money into was my waxing system.
I found a booth that had a great product. The selling points were all there. The systems were exactly what I wanted. I ended up talking the lady into demonstrating the product on my husband. He was a good sport about it and let her wax his back right there in the middle of the trade floor! I was very impressed and took both a hard wax and soft wax system home with me.
The training I had received was great--in theory--but I personally had very few opportunities to practice. My next step was to recruit people to wax and I was not short on volunteers.
Unfortunately, my suspicions were confirmed through this process.
I hate waxing.
I don't like to hurt people. I personally find the process ridiculously painful and therefor my attitude is, "shaving takes me less than three minutes a day, if that. What would I want to go through this amount of pain once a month?" Therefore it's harder for me to sell the service to a client; I feel very insincere.
There's a pretty big liability. I've personally been burned and bruised and had my skin ripped off--from three different experienced waxers. Every female friend that had gotten their eyebrows done has admitted they too have been injured. Why should I risk losing clients who love to shell out $70 over a $15 service? It's so easy to make a mistake. The temperature gauge might be just a teensy bit off or the client might be on a medication or at a certain point in her cycle and forget to mention it.
Certain body parts are a pain in the butt to do well. It's time consuming. The positions are awkward. There are some "speed waxers" who are incredible at what they do; but for new clients or those with lower pain tolerances (like me) it's just not an option.
It's also messy. Not all the time; but there are times when wax does get where it shouldn't be.
I decided not to do it anymore. And sometimes, yes, I kick myself, but I'm happier overall.
Another thing that I've decided not to offer is ear candling. For some reason this is a very popular service that I get asked for quite frequently. I personally think it's a load of crap. The mechanism which supposedly pulls the wax out can be disproved by any fifth-grade student in a simple science experiment. Furthermore there is a risk of getting wax on the eardrum and causing permanent damage or the need for surgery. Yikes! There are those who swear by this, but I won't touch it with a ten foot wick.
What do you do when you have an opportunity to make lots of money but personally hate doing it or have issues with the act?
This isn't exactly related to those probing thoughts, but it did remind me of a financial "mistake" that I'm happy about:
I made a business decision that has cost me loads of money and you know what? I'm happy about it! I'm duly-licensed as a massage therapist and as a facial specialist. One of the biggest money makers for skin care professionals is waxing. It's a great add-on service, it's fast, it pays well for the time it takes, the investment in product is small, and--this is the best part--your clients come back every 4-6 weeks to get it done again.
After I graduated the skin care program my husband and I hauled our butts up to the big trade show in Orlando. I was surrounded by so many choices! I initially had wanted to purchase everything I needed to expand my business in that direction. After being so overwhelmed I stepped back and did more research. The only thing I really put money into was my waxing system.
I found a booth that had a great product. The selling points were all there. The systems were exactly what I wanted. I ended up talking the lady into demonstrating the product on my husband. He was a good sport about it and let her wax his back right there in the middle of the trade floor! I was very impressed and took both a hard wax and soft wax system home with me.
The training I had received was great--in theory--but I personally had very few opportunities to practice. My next step was to recruit people to wax and I was not short on volunteers.
Unfortunately, my suspicions were confirmed through this process.
I hate waxing.
I don't like to hurt people. I personally find the process ridiculously painful and therefor my attitude is, "shaving takes me less than three minutes a day, if that. What would I want to go through this amount of pain once a month?" Therefore it's harder for me to sell the service to a client; I feel very insincere.
There's a pretty big liability. I've personally been burned and bruised and had my skin ripped off--from three different experienced waxers. Every female friend that had gotten their eyebrows done has admitted they too have been injured. Why should I risk losing clients who love to shell out $70 over a $15 service? It's so easy to make a mistake. The temperature gauge might be just a teensy bit off or the client might be on a medication or at a certain point in her cycle and forget to mention it.
Certain body parts are a pain in the butt to do well. It's time consuming. The positions are awkward. There are some "speed waxers" who are incredible at what they do; but for new clients or those with lower pain tolerances (like me) it's just not an option.
It's also messy. Not all the time; but there are times when wax does get where it shouldn't be.
I decided not to do it anymore. And sometimes, yes, I kick myself, but I'm happier overall.
Another thing that I've decided not to offer is ear candling. For some reason this is a very popular service that I get asked for quite frequently. I personally think it's a load of crap. The mechanism which supposedly pulls the wax out can be disproved by any fifth-grade student in a simple science experiment. Furthermore there is a risk of getting wax on the eardrum and causing permanent damage or the need for surgery. Yikes! There are those who swear by this, but I won't touch it with a ten foot wick.
What do you do when you have an opportunity to make lots of money but personally hate doing it or have issues with the act?
Sunday, April 27, 2008
So I made a boo-boo
I made a decision when setting up our consolidation loans and taking advantage of a credit card's 0% APR. While I can pay back the loan amount that's "overage" due to the credit card offer, it will not reduce my monthly payments, simply the term. This isn't a huge deal as we intend to put every penny into paying down debt that we reasonably can.
However, extra breathing room would be advantageous if we are forced to get the new car soon, when student loan payments recommence, or if something happens economically.
I will be putting $3000 towards the $5000 on the Capital One card. This will reduce our payments from $150 to $60; that's $90. This $90 will continue to be paid towards the consolidation loan, however, if needed, that's half a car lease payment or a week's worth of groceries if we need it.
Total cost of this mind-change: $60. It cost me 2% in transfer fees to put that $3000 onto the card.
Analysis of this new decision:
Short term: Short term this is probably a pretty good move. It frees up extra cash which is still being put towards debt. $3000 would be put towards one or the other anyway.
Long term: There's two ways to look at this. $3000 at 15.9% probably isn't the best thing to carry around compared with the same amount at 0%. However, we'll be cutting it pretty close later on when student loan payments start again if we need a new car which could force us to use our cards in some situations. (Note: the $2500 emergency fund will be fully funded as soon as the rebate payment hits our account.) Long term it's both a smart and a stupid move.
However, extra breathing room would be advantageous if we are forced to get the new car soon, when student loan payments recommence, or if something happens economically.
I will be putting $3000 towards the $5000 on the Capital One card. This will reduce our payments from $150 to $60; that's $90. This $90 will continue to be paid towards the consolidation loan, however, if needed, that's half a car lease payment or a week's worth of groceries if we need it.
Total cost of this mind-change: $60. It cost me 2% in transfer fees to put that $3000 onto the card.
Analysis of this new decision:
Short term: Short term this is probably a pretty good move. It frees up extra cash which is still being put towards debt. $3000 would be put towards one or the other anyway.
Long term: There's two ways to look at this. $3000 at 15.9% probably isn't the best thing to carry around compared with the same amount at 0%. However, we'll be cutting it pretty close later on when student loan payments start again if we need a new car which could force us to use our cards in some situations. (Note: the $2500 emergency fund will be fully funded as soon as the rebate payment hits our account.) Long term it's both a smart and a stupid move.
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