The Weight of Money

goodbye blogger -- new url!

2006-11-02T14:36:00.000-05:00

I've decided to get away from blogger and get my own site. Please update your links and visit:

theweightofmoney.com

I'll be doing what I can to redirect traffic over there, but I'm not sure that blogger offers many options to do that.

Monday Carnivals

2006-10-30T08:18:00.000-05:00

please view this post at: http://theweightofmoney.com/2006/10/monday-carnivals.html

I submitted to two different carnivals for this week -- Carnival of Debt Reduction and Carnival of Personal Finance.

It's Just Money is hosting the Carnival of Personal Finance #72 -- I submitted the personal assessts post because of the recent mummur over at Make Love, Not Debt.

My Money Forest is hostingthe Carnival of Debt Reduction #59 -- I submitted my post on reducing debt by reducing interest rates, which I find crucial for helping us get out of debt because of the $300+ a month we pay in interest could be going toward principal.

Favorite Post:
The Coin Jar's comments on having another child -- I will actually post a much longer response to this post this week.

Other posts I enjoyed:
- Taking Control over Money's post on bad debt - good breakdown of bad debt and felt like a fresh post on the subject.

- Money Under 30's radical ways to spend less - I notice that I'm often less likely to spend money because I don't own a television -- I don't hear about any of the latest new items or know about any blockbuster movies that we just 'have to see'.

- Mom Advice on using powdered milk -- no, not because I'm a big powdered milk advocate but because I love seeing stories where people have taken money saving advice they weren't sure about.

Out of all the posts I read through, these are the only ones I really found worth reading. I will put the disclaimer that I am a judge-a-book-by-its-cover type of gal and some article titles just didn't pull in enough click-it mojo to get my attention. I'm starting to wonder, what is teh saturation point for personal finance blogging? When are we all merely repeating the same things over and over again at different times?

I think I'll be reflecting on this along with some other ethical issues I've been considering the past two weeks.

Avoiding Credit Traps

2006-10-24T13:57:00.000-05:00

Please view this post at: http://theweightofmoney.com/2006/10/avoiding-credit-traps.html

As personal finance bloggers know, when facing bad credit, people often resort to tactics that often leave them in a situation worse than they started. Sometimes the fear of negative credit ratings or bad credit scores causes them to seek out a bad credit loan or “credit repair” quick fixes.

There are several organizations working to help people avoid these traps. Bad Credit Loan appears to be targeting individuals searching for bad credit loans in order to educate consumers about what creditors are looking for and what negatively affects their credit score. Another resource offers a totally free credit report to help educate consumers about credit report issues and how to challenge incorrect information.

Both of these resources appear to be trying to help consumers, are using different tactics to reach populations in need of this type of information and are helping to prevent them from falling in the hands of predatory lenders.

festival of frugality #45

2006-10-24T12:00:00.000-05:00

Please view this post at: http://theweightofmoney.com/2006/10/festival-of-frugality-45.html

Festival of Frugality is being hosted by Jason at Pragmatic Finance. I really like the creative format that he used to address the many great entries -- check it out.

Individual articles I enjoyed:

A Tutorial for the Fast-Food Generation: How to Get Started Cooking at Home for Frugality and Health - food and cooking are a major obstacle to intentional financial living. This is an excellent guide for those feeling overwhelmed by moving more towards cooking and away from prepared foods.

Sock it to Me - this is just because I've got a serious thing for socks. My white stocks manage to stay fairly white for a long time -- the daughter's on the other hand -- ewww. I don't understand how she manages to get to so very dirty – one the first wearing too.

Frugal living: credit cards - I enjoy seeing posts reminding people that credit cards are not evil. Many people use the rewards cards successfully and free money is a good thing.

Reproduction Money

2006-10-23T11:00:00.000-05:00

Often times we read about the escalating costs of fertility in terms of treatment and options for child seeking couples. However, I've often been interested in the benefits of sperm/egg donation and surrogate motherhood. These can certainly have financial implications in terms of compensation provided, but that should not be the primary motivational factor.

I've looked at myself and my values several times in considering surrogate motherhood. I feel that pregnancy is a gift and something I'd be happy to share with another couple unable to experience it physically. However, I've often decided against it in the end when considering so many other life factors of being a single mom.

An option that is still open is being an egg donor. There is still the ability to help other couples without the nine month follow through needed of surrogacy. There are many physical issues to consider - the process is not a quick stop in a clinic to donate and leave; but having had friends and family facing fertility problems and needing egg donor services has opened my eyes to this possibility.

Again, while this is relevant in terms of money, egg donation is not about the money. Yes, women can often earn in excess of $5,000 for egg donation and surrogacy, there is a lot more to the decision than financial gain. A good source to start with when considering these options is the Becoming an Egg Donor publication from New York State Task Force on Life and Law.

Dow High, Spirits Low

2006-10-22T10:43:00.000-05:00

Perhaps I’m wrong in my reaction, but I’m not happy with the recent closing records for the Dow Jones industrial average. Seeing as how I’ve just started contributions to my retirement plan, I’m more interested in seeing lower closings and working up to higher closing over time.

Perhaps I have a poor understanding, most likely the case, of how these closing will affect retirement investments. While I have an optimistic outlook on the life of my investments, current peaks leave me worried that I’m currently buying in at a time that will, of course (in my mind), go down soon. Yes, I know that I will be making continual contributions in funds and that will, in the long run, balance my investments – but still. I’ve just entered into this investment and already am personally forecasting lowered returns in the short term. This is only relevant in terms of emotional security as I continue to struggle to be comfortable my smaller paycheck; if I’m struggling to accept the long term value of the investment, I’m sure it’d be easier if it didn’t feel like I was entering the game near a peak of a downward climb.

Of course to further recognize my lack of overall knowledge – I’ve not yet looked at where the general trend has been the past year or two and realize that record breaking may not be as relevant if the Dow has consistently been in a higher bracket over the past year+. I could look it up, but I’m stealing internet breaks between conference workshops as is.

Personal Assets Add Up

2006-10-18T08:59:00.000-05:00

Over at Make Love, Not Deb, Her posted about their net worth calculation formula. It appears to me that some people have a hard time accepting the fact that they could have household assets totaling $25,000. While I understand the surprise, I wonder if people are taking a more accurate assessment of the resale value of their household items.

Obviously, the quality and quantity of times will be a major factor in assessing the overall value. For Her and Him, perhaps they will choose to estimate high just to reduce the negative value of their net worth – I totally support that because I know how discouraging an excessively negative net worth can be. However, they may just be taking a realistic look at what they own.

I have not taken an accurate estimation of our net worth but I know that it would be in the same ball park as theirs. In fact, it most likely will pass it and possibly even get close to the $50,000 line. Many people want to know, just what people own that adds up to that high amount.

Some inclusions that can swiftly increase the dollar value of items owned:

household appliances (freezer, stove, washer/dryer, mixer, vacuum, etc)
high quality furniture (in good condition)
high quality professional clothes and shoes (consignment)
art and antique collections
personal electronics (entertainment systems, computers, printers, stereos)
music collections
recreation equipment (kayaks, camping gear, bikes, boat, etc)
formal dining items (china, stemware, family silver)
wine collections
jewelry (purchased and inherited)
tools and machinery (woodworking, metal working, general, etc)
lawn care supplies (lawnmowers, trimmers, tools, lighting, etc)
art supplies (tools, specialty items, extensive collection)
plants (orchid collections…)
books and magazines (hard to find, specialized, good condition)

Our personal calculations/considerations:
The partner owns an impressive (aka overwhelming) number of items – it used to be in a warehouse and now fills a giant workshop equipped with a forklift and pallet shelving. The majority of these are heavy metal items – no, not music, machines and tooling equipment. I’d estimate the current value to be close to $20,000+ considering that we’ve sold $5,000 this year and I doubt that we’ve reduced the quantity of items by more than 10%.

He also has extensive amount of computer equipment that has little value in a piece by piece basis, but would add up to a couple thousand as a lot. There is a wine collection that has been bringing in small, steady stream of money as he sells cases at a time.

The book collection also has value because of the number of rare books and out-of-print items. These mostly focus on the metal working community and one major advantage of this passion of his is that items have very little depreciation.

Me, I own almost nothing. I’ve moved too many times in my life and am far more in tune with simple living to gather items. The only things I could sell would be a high end bike and some camping items. I’d be lucky to reach $500 if I liquidated everything the daughter and I own.

Finally, if you haven’t made the connection, The Weight of Money comes from the mass possessions the partner has and the correlation between weight and money or worth. It is actually far more valuable for us to sell high density and mass items than high priced items

Save Money: Make the Call II

2006-10-17T08:23:00.000-05:00

I've written about saving money with a telephone call and it is time to do it again; this time I’m calling credit card companies for a reduced interest rate. Tackle your credit card interest rates routinely! It will make a difference.

I've called the partner's credit card companies at least 3 times in the past year. I usually wait a couple months and try again to get a lower rate. With found money on the horizon, we're planning to pay down debt and want to pay off the higher interest rates first.*

In March I called and got the following results:
Card #1 - 17.24% reduced to 12.49% (variable)
Card #2 - 18.45% reduced to 9.97% (variable)
Card #3 - 17.99% reduced to 13.99% (fixed)
Card #4 - 18.47% was increasing to 23.24% and they refused to budge.

Yesterday the rates were:
Card #1 - 13.24% (variable)
Card #2 - 10.82% (variable)
Card #3 - 13.99% (fixed)
Card #4 - 24.24% (fixed)

Clearly, variable rates tend to vary upwards. I choose to take the variable rates because I have the discipline to call and get it reduced when it starts inching upwards. If you don’t want to take the time to make the call, the slightly higher fixed rate may be your better option.

Today I repeated my calls to two of the cards. I’ve been very frustrated with #4 because they have refused to reduce their rate the last two times I’ve called. I gave them a final chance today and they finally responded.

Today’s results:
Card #3 – 13.99% reduced to 12.99%
Card #4 – 24.24% reduced to 8.74%

As you can see, Card #4 did not want to lose our business. The partner has had most of these cards to 10+ years and has always paid on time and has excellent credit. So, the ultimatum strategy finally worked. However, I feel that the strategy worked because we’ve paid $7000+ toward this card since the beginning of the year. It is actually our lowest balance card and the one with the most aggressive payments.

I haven’t decided if I’m going to call card #1 again or not. I got a good reduction in March and turned down in June or July when I tried again. I will call card #2 if I have the time but I am not going to stress over it right now.

So, next plan of action is to decide what to do about the upcoming found money. I’m thinking that throwing it at the highest rate and then possible transferring the balance to another card with a 0% rate for 6 months and a 3.96% fixed after 6 months. I’ve never done a balance transfer and that’s content for another post.

Important: Make the call! It is not complicated and the worst they can say is No, the best they can do is reduce your interest rate by 64% (see above) or more!

* In response to the higher interest rates/smallest balance debate - we hate to throw away money and that is what we are doing when we carry high interest rates. Many people argue that paying off the smaller balances first adds encouragement and makes peole stay motivated to reduce debt. We don't need the motivation, we've got it, and we're gonna make every penny count.

Special Purchase Plan for Kids

2006-10-16T11:07:00.000-05:00

Money management is an important family skill and reponsiblity. Previously, I discussed learning to make a buck where we attempted to show the daughter how she could make some money. The lesson did not go as planned but I think that she still learned something from it. Last night provided another opportunity to expand the daughter’s financial knowledge.

The daughter has been envying Heelys – shoes with wheels in the heels – that all the children seem to be wearing. I’ve heard “I want…” too many times in the past two week to count. The daughter realizes that, in our family, gifts only come on holidays and that all the complaining in the world won’t bring the holidays any closer. Also, she knows that she doesn’t always get what she wants as a gift and she should plan to purchase things she really wants. Last night we sat down and wrote up a “Special Purchase Plan” for the Heelys. I wrote the general format and left blanks for her to fill in, sign, and date. It basically stated:

“I want to buy ____________ and it costs $_________.

I can make a special purchase by contributing 50% from my savings account and 50% from my cash on hand.

Current amount in Savings $_________. Current amount in cash $____________. I need to save $__________ more dollars.

I can make up to $5.00 a week doing chores. If I work hard and do well on my chores, it will take me _____ weeks to save up enough money.

I am willing to work hard and save money so I can buy this item. Sign _____________ Date_______”

We went online to check the prices for the shoes. She was a bit surprised to learn that the range in value from $40 - $100 and was interested in looking at the cheaper generic models (yay, she doesn’t require brand name labels). We ended up selecting a pair that cost $60 to use for planning purposes. I explained that she can always spend less or more but it was important to pick a pair, fill in the contract, and get to bed.

She filled in the blanks and signed the commitment to save the money and taped it on the wall by her desk so that she would see it everyday as a reminder of what she is working for. I reminded her of the option of taking additional chores when offered. Many times, in the past, she has opted to skip cash-for-chores in order to read or go out in play.

Hopefully this process will result in an important lesson and a special purchase for the daughter – I’ll let you know in about 10 weeks.

Updating and Adding Links

2006-10-16T09:43:00.001-05:00

I'm finally getting around to updating my links to other personal finance websites. I have not touched the template since starting my site in June and want to give recognition to the many sites that I enjoy and take the time to read almost every day.

If you'd be interested in exchanging links, please leave a comment and I'll verify that I do indeed visit your page and that it is worth suggesting to others. I'm sure there are several sites that I will overlook in this update and do want help send traffic to good sites on personal finace.

My apologies if if this update removes your link or if I do not link you. I want to be sure that I'm sending visitors to sites that I would appreciate. Removal of links or failure to support a suggested link is usally due to a lack of consistency of posts or personal finace topics.

Also, I've added a Save-O-Meter developed by Clutter to Cash. I hope that they will return to blogging soon.

Relationships and Retirement

2006-10-15T10:45:00.000-05:00

Tired but Happy recently posted about contributions to their retirement accounts: Annual Retirement Contributions. In talking about their progress she also brought up an interesting concept that I hadn't considered yet -- how each partner's retirement account affects the family.

Having just started my first post-college job, my first retirement contribution was made this month. I'm saving about 11% of my salary and my employer contributes 5% (they will increase their contribution to 10% next year and I will increase mine to 15%).

I'm in my mid-twenties and I know that this will keep me focused for my retirement goals (especially with my planned increases). My partner, on the other hand, is not on the same track and I'm starting to wonder how this will affect us in the long run.

Tired but Happy states, “we're partners, and so his financial health is my financial health.” This is true and is reflected in my recent discussion of I/we in personal finances. However, where is the partnership when each partner establishes an individually focused retirement plan?

I established my contributions solely considering my later in life position. I want to know that I have provided for myself and that I have ability to retire when I want. What about the partner?

The partner is in his late-thirties and not currently contributing anything to his retirement accounts. He has an older rollover account with a couple thousand dollars but hasn’t made any new contributions. The partner is planning to start contributions this year, but only at about $30-50 a paycheck – this will only total about 2% of his income. Is this going to seriously affect our financial health?

With the “I” mentality, I can see it as a “his” issue and not worry about it. However, when I look at it through the “us” lens, suddenly our financial health feels at risk.

For me, this is something to think about. Read Tired but Happy’s article, there are some wonderful comments that follow up on this issue.

Decision Revoked - I'm keeping my car

2006-10-13T06:50:00.000-05:00

The saga continues on the car. Perhaps I should have seen this coming with my reluctance to make a final decision and with my stated appreciation of my car (I love my car). But we finally had to decide where our priorities were and selling the car was not in line with them.

Primarily, we just don't feel that now is the time to purchase a new(er) car. Yes, we have a vehicle that is mostly just hobbling along, but our debt and home ownership goals have taken precedent. We've decided to keep the partner's car even though it may fall over and die any day now. When it does, we'll get rid of it. No more major repairs. We will keep my car as the backup family car. My car can fit all three of us but probably can't accommodate camping weekends to the scale we're used to.

But, there is good news in this. My major reservation with keeping my car were the fees I was going to have to pay to get my car tagged and titled in MD again. In trying to figure out how to get out of as many fees as I could, I actually called the MVA -- shock! I spoke with a very nice lady who explained that I don't have to get it inspected (-$68, plus less and repairs that would have been needed) and I am exempt from the excise tax (-$32). The reason for this sudden reduction in cost, 1. my car was previously titled in MD and 2. it will be classified as a gift from my mom -- oh so funny how my mom is gifting my car back to me.

So, decision made - my car stays and I'll refrain from posting about it anymore.

Found Money

2006-10-11T09:42:00.000-05:00

Don't we all just love found money? I love the money but hate the concequences -- figuring out what to do with it. It has been many years since I've used the logic that found money is free money to spend. Instead, I agonize over the best use for the money and mourn the lost opportunity to spend it on totally frivioulus items.

The found money I'm talking about is the tax intercept for back child support that will show up next week to the tune of about $5,000.

Option One - Put all into savings: This is the one that I like the best. It feels safe to me and allows me to think that maybe we will be able to buy a house next year. I'm having a hard time thinking that we're going to be able build our savings up fast enough without contributions like this.

Options Two - Put all toward debt: This seems like the most logical option and what most personal finaces advisors would say. However, does anyone else ever have a hard time throwing large chunks of money at debt? Yes, I want our debt to go away, but I don't know how to shake the fear that we'll have less debt but still no money and no house in a year.

Options Three - Put allinto the daughter's savings: I could start investing in stocks for her, what a wonderful thing. However, that just isn't going to happen at this time. When we're no longer in debt, we'll do this -- but for now, it is going somewhere more useful. This option is really just my "ideal world" scenario.

Option Four - Split it up: This seems like it might be the best plan if I can get my mind to accept it. Say, put at least 50% toward debt and then 50% into savings. Or $800 for the daughter (summer camp) and split the remaining...

To make the best decision possible, I honestly need to evaluate our debt situation further and see what a difference this money will make. I must know: 1. how much will a $5,000 payment reduce our monthly payments? 2. If we take the difference between our current payments and the new reduced paymenrts and put it into savings, how long will it take to add up to $5,000. 3. Based on this information, what should our plan of action be?

I will keep everyone posted as I run the numbers some more.

October Financial Goals

2006-10-02T13:29:00.000-05:00

I’ve fallen behind on setting these – time to get back on track with setting goals.

Remain within the new household budget.

This may sound simple enough, but this is a new budget and a fairly comprehensive for our monthly spending. I’m hoping that it will go well. Next month we’ll have even more money since I’ll have a full month’s worth of pay to work with.

Set up individual contribution to company retirement account.

I decided while still in school that I would contribute at least 10% from every job I have. I’m now in my first job post college and time to put those words to the test. My company will also contribute 5% this year and then 10% every year following. My goal is to increase my personal contribution to at least 15% next year.

Support the partner’s move to contributing to his 401K plan.

The partner has been reading financial books and has a renewed interest in retirement planning. It looks like he is about to take that step and finally start contributing. My new position will save us about $50 a paycheck and he’ll use those funds to start contributing. Originally he was only going to do half that amount per check but after considering the pre-tax benefits, I think he is committed to contributing the full amount.

Limit dining out to no more than $100.

Simple enough, we’ll see if it happens. There is a camping event coming up that will prolly eat through that budget this weekend – I’ll do what I can to avoid it.

Max budget of $200 for upcoming camping/event weekend.

I’ve gone on this trip at least twice a year for the past six years. I should not need to buy anything else! I’m factoring the food into the grocery budget and not planning any additional purchases – other than the tent we just bought.

Establish debt repayment plan and savings investing schedule by Oct. 30.

By the end of next month I should have enough information to properly set up our formal debt repayment plan. This will be a much needed relief since we have two months of minimum payments only – ack. While I know that you should not be building savings while you’re paying off high interest debt, we just can’t let our almost nonexistent savings stand still while we tackle our debt. No really, I know all the reasons against this method, but our personal preference and comfort level demands socking away some savings so that we have some money to buy a house next year. The low monthly payments alone won’t be enough to buy a house and we need to get into a house asap.

Continue reading financial books and sharing them with the partner.

The partner holds a lot of credit in things he reads; more than the things he hears. I often mistrust texts and words and will ready at least 5 books on a subject before deciding what I believe. I will continue bringing home financial books from the library and setting out one for the partner to read when I feel that are inline with my approach to finances. The biggest benefit to this plan is that the more the partner reads, the more time he spends things about finances and considering the impact of all of our financial choices.

Avoiding the "I" in Joint Finances

2006-10-02T11:56:00.000-05:00

The newest bump in our joined finances adventure appears to be an “our” framework retrofitted onto a “your” outlook. Yes, we now have a joint account and our income is being pooled together – but the partner has taken the viewpoint that it is all my money now and no longer his. This has stirred up some frustrations when talking about the household budget, personal spending, and current savings.

Background: I am very budget focused and highly active in watching my finances and making sure that I stay within the lines. I am adamant that we must have a household budget in order to reach our financial goals. The partner thinks that budget is a dirty word and takes a more hands off approach. September was the first month where we joined finances and started using a new budgeting program – one that will meet each of individual preferences for spending but is seen as something I am pushing by the partner and as a compromise by myself.

Problem: Earlier this year, before becoming a legal ‘we’ and formally living together, we each contributed $5,000 toward a home purchase that fell through. $5,000 of that, which I’ve viewed as “mine”, was put into our joint savings account. I’ve been actively asking about the other $5,000 that was still in the partner’s personal accounts and making the partner uncomfortable. The partner didn’t like that I wanted the last of his money. I was getting frustrated that my portion was put into our account while he was keeping his portion. The partner revealed that he sees our joint accounts as mine and that that money was the only thing that was still his.

I/we: Through many conversations over the weekend, we realized that we did not have the same feelings toward our joint finances. Because I have spearheaded the recent move to the implementation of a new budgeting program, the partner sees me as the owner of the household finances. Also, the new accounts that we’ve joined and established are not accounts that the partner is used to using and he feels that he doesn’t have access and that they are really just my accounts with our name on them. I have added to this feeling of separation from the household budgeting by saying “I will put $$ into your personal account” instead of “we can put $$ into your personal account.”

Solutions: So, to help reduce the “I/you” outlook and move to the needed “our”, I will be making a strong effort to watch how I phrase things. Also, the budgeting program is going to be placed on the partner’s desktop instead of my laptop. Additionally, the joint checkbook and bills will remain accessible to both of us and I will make sure the partner knows how to use the budget program to manage bills. Finally, the $5,000 that is in our joint account will go back into my personal account. This returns the piece of mind that I will have some individual savings (I took my savings to $0 for the house and wedding) and will remove my need to see where that $5,000 of his is at. This will drop our joint savings considerably and will basically leave us starting from scratch. However, if we need additional money later, we can both decide what to contribute from our individual funds. I think this is the best approach for the savings situation as it allows us both to retain some ownership of our pre-partnered life.

Conclusion: The heated dialogues we were having this month traced back to feelings or impressions unequal access and ownership of finances. I feel that all couples should have equal understanding and feelings of responsibility for household money. If one person does the larger share of the financial work, it is very important to make sure the other one is informed on how to do the work. Ideally, sharing the financial responsibility equally will help keep both partners informed of current fiscal status and make sure both partners know what is happening and how to manage the finances fully if needed.

Price of a New Job: Food

2006-09-29T09:27:00.000-05:00

This post continues the discussion of unexpected or underestimated costs associated with a new job. This series looks at clothing, transportation, food, and professional fees.

Food: A new job may present or renew challenges of keeping within a lunch budget.

You could be leaving a position where there were endless opportunities of lunch options and joining a company with only a burger joint nearby. If this is the case, you’ll probably start saving and need to take time at home to actually pack a lunch.

However, if you've just entered a company amidst enticing lunch options, then you may face a bigger challenge. If you're used to bringing your lunch, you may be able to walk blindly past all of the food places and continue your established ritual. However, if you've been starved for a variety of eating establishments, you may feel like you've struck a gold mine – at a price.

Because food and dining out is a common personal finance topic, this is a condensed list of suggestions and comments for reducing the impact of food on your wallet:

1) Tink about the reasoning behind your lunch choices:

Is getting out of the office for lunch necessary for your stress level?
Do you have the motivation to leave the office if you are not going out to eat?
Do you find restaurant atmospheres relaxing or energizing?
Do you develop better bonds with coworkers if you dine together regularly -- does this require eating out or can you meet in the lunch or board room?
Do you consider good dining a part of your standard of living?

2) Think of ways to meet your daily expectations in a way that fits your budget and your personal preferences.

If eating out gives you a break from the office that you wouldn't take otherwise, budget for it and enjoy your time without feeling guilty.
If you work in an area full of great places and you enjoy good food, then decide how often you want to eat out and budget for it.
If you love eating out but are focused on saving money, remind yourself why each time your pack your lunch or skip eating out.

3) Develop money saving suggestions based on your personal preferences.

Visit places that have the best daily specials (price and quality).
Order dishes that will give you enough leftovers for another day or more.
Pack a lunch at home for every day or some days.
Buddy up with someone willing to split plates.
Balance how often you eat out for lunch with dining out for dinner.

Price of a New Job Series: Clothing, Transportation, Food, Professional Fees

Price of a New Job: Transportation

2006-09-27T08:53:00.000-05:00

This post continues the discussion of unexpected or underestimated costs associated with a new job. This series looks at clothing, transportation, dining, and professional fees.

Transportation: A new position can take you either closer or further from home than your last position. Clearly, if it turns out to be closer, then you are probably saving some money in transportation costs. However, if you decided the new job is worth a longer commute, you may be surprised at exactly how much that new commute is going to cost in time and money.

Transportation & Costs: Start by calculating the cost per mile to drive your car. You can look at several online calculators and articles for details on doing this. Calculators range from simple (gas price per mile), moderate (cost per mile), and complex (true cost of driving). I highly recommend calculating in insurance, maintenance, and wear and tear for more accurate consideration.

Driving: If both the new and previous job require a driving commute, it is easy to compare the difference. Simply multiple the number of miles to and from work each day by the cost per mile. You can compare the daily differences, but also compare weekly (day x 5) and yearly (week x 52). What can be a $3 difference a day works out to $780 over the year.

Public Transportation: If either or both commutes required the sole use of public transportation, simply calculate your daily and annual cost for comparison.

Driving & Public Transportation: Now, if your commute requires the use of both public transportation and driving, calculations and comparisons are slightly more complicated. I found several calculators that allow you to compare the cost of driving versus using public transit, but most lacked the ability to combine both options and were region specific. The WMATA Calculator gives you comparisons for several different commuting options (driving, driving+public, public); however, their calculator is based on local fares and fees. For do-it-yourselfers, just add the daily public transportation cost to your daily driving cost if you combine public transportation and driving in your commute.

Important: One very important item to realize: even if you take public transportation you still incur annual vehicle costs if you own a car. Insurance and maintenance fees will be less when you are not driving every day but they will not disappear. This is something that many people overlook when championing the public transportation platform and calculating their annual transportation costs.

For my new job, I am using public transportation exclusively and using this option as one of the justifications for selling my car.

Transportation & Time: This area of comparison is more subjective and there are several options for how to address it.

Option One: If you simply alter your driving commute, there will be a straight forward comparison of time commuting. You can use this as a simple comparison.

Option Two: In my Comparing Job Offer Series, I calculated the value of time at work on a salary per hours worked basis. When considering a commute, some people may simply add the commute time to their workday. For these people, this is time that cannot be used for anything else and should be counted as part of their workday calculated as such.

Option Three: When using public transportation, you have another option. You may conclude that the time you spend commuting is free time to read the morning paper or a good book. This time would not count as part of your work day and you may find it a valuable use of time.

For my new job, my public transpiration commute of nearly three hours a day is time that I use for personal reading and relaxation. I do not consider it part of my work day and am happy to have “me time” each day – something that often gets cut out of my schedule when other tasks take precedent.

There are many ways of looking at time and commuting. These three options simply offer some options for how to consider your commute. As mentioned, evaluating time is subjective and is dependent on individual preferences and situations.

Price of a New Job Series: Clothing, Transportation, Food, Professional Fees

Price of a New Job: Clothing

2006-09-26T14:39:00.000-05:00

A new job should be all about new income but often new expenditures come too. There are changes in transportation, clothing, dinging, and social environment -- each of these can take a bite out of the to-be-received paycheck.

Clothing: Will your new position require a change in your clothing style? Is it casual, business casual, or formal? Will you be working in an environment where clothing matters (i.e. The Devil Wears Prada)? As much as I deplore keeping up with the Jones, you will probably want to make a good impression and fit in at work -- this may mean buying new clothes.

My new position is with a highly respected national organization. I converse primarily with presidents of colleges and universities across the country and will eventually attending meetings with these people. Additionally, my position is in Washington, D.C. and there is a certain dress code or fashion culture present. In short, my wardrobe is insufficient for this office.

I recently spent $150 on new clothing at a local, lower-cost clothing store. I know that the quality of this store is not the greatest, but I needed enough variety to get me through the upcoming weeks and I hate to spend money. My penny pinching on clothing has already resulted in a pair of pants that look like they will barely last 2 months. Sigh. I still need to purchase more clothing.

I frequent thrift stores for clothing but rarely find good buys. I am not sure where to shop because I am not a shopper and am not fashion conscious. I want clothes that can go through the wash and look fine. I also want clothes that are going to last because I'm not interested in matching the latest fashion style, I want to buy it once and never again.

So, on my current shopping list is:
- 3 pairs of pants -- must wash and dry well, ironing is a pain (est. $100-120)
- 1 or 2 pairs of shoes -- something that is both comfortable and will go with all of the pants (est. $60 - 100)
- 3 tops -- this is to supplement the five tops I recently purchased (est. $60-100)
- 2 bras -- I simply need new undergarments and they need to not be black (est. $80)
- 10 pairs dress socks - I want two weeks worth of socks, but I also need a variety to match shoes/pants (est. $20-30)
- accessories -- watch, necklaces, bracelets (est. $100)

The accessories are to help add variety to the wardrobe. The above purchases, along with what is in my closet, will give me about 2 weeks worth of office clothes. This means I will need to change the looks with small accessory changes to help reduce the redundancy. I am not an accessories person, but it is a step to help fit in and limit my clothing purchases.

I will see what I can find at the local thrift stores this week. However, I will buy quality clothing if I go to another clothing store -- no more buying pants that last only a couple weeks before showing wear.

I must state that I hate spending money on clothing. I tend to go shopping with the intent to buy and come home with nothing. Here is one area where childhood has a strong influence on my shopping habits. As a child, my mom would take me shopping and allow me to pick out many things. Then, after we'd settled on which items I wanted, she'd suddenly decide that we could only afford to buy two or three items. As an adult, if I ever end up with more than an item or two I start panicking over the cost and end up leaving the store empty-handed -- or, I simply rationalize that it is all too expensive and don't bother picking anything out.

Price of a New Job Series: Clothing, Transportation, Food, Professional Fees

Choosing Your Company Insurance Plan

2006-09-25T12:30:00.000-05:00

Dual-employeed partners often need to compare their insurance benefits to select the plan or combination of plans that will best fit their needs and financial goals.

My new job pays 100% of individual premiums and 50% of dependent premiums. The partner's job pays 30%. This comparison shows that the high percentage paid does not always mean a better deal, at least in terms of our desired PPO plan.

When comparing plans offered by your respective empolyeers, follow two simple steps:

Step One: Find out if either employer will provide a cash payout if you do not use their medical benefits. Some companies will pay you in salary what you are not using in medical benefits.

For my company, however, this was not an option.

Step Two: Compare the fees associated with each plan and decide on a plan of action. Be sure to consider premiums, deductible, co-pays, percetnage paid, etc. (See final remarks for additional considerations.)

Luckily for us, the plans at both HIS and HER companies were simmilar and required only a comparison of employee-paid premiums. Here are the comparisons that I went through:

Cost Comparison: This table lists the costs of each plan based on HIS and HER company; these are the fees that we pay and do not include employer contributions. HER company does not have a plan simmilar to the POS plan we currently participate in.

Options: The second chart details the comparisons I used in order to determine our plan of action.
- Plan 1: No Change. We stay with the family plan at HIS company that we have now.
- Plan 2: We switch to the family plan at HER company.
- Plan 3: We change to the Individual+Child plan at HIS company and sign up for the individual plan at HER company.
- Plan 4: We change to the Individual plan at HIS company and sign up for the Individual+Child at HER company.

Plan of Action: As you can see, the best option for us is Plan 3 - change to Individual+Child plan at HIS company and enroll in the individual plan at HER company.

Savings: Our annual savings will be $1,288.82 a year, $107.40 a month, and $49.57 a paycheck.

Final Thoughts: If you compare your health plans and discover that they are both fairly simmilar in all aspects, including emplopyee-paid preiums, pay attention to the full premium. If you ever lose your job and must rely on COBRA, this is the monthly fee that you will be required to pay. For dual-earner families, this may not be a big consideration beause you can always begin using the insurance benefits from the employeed partner.

Also, the type of coverage desired obviously has a big impact on the fees. I personally desire PPO plans for my own, personal medical care. For the rest of my family, the POS plan that we currently have is sufficient. Our plan of action will meet the needs of our family and our situation well.

Carnival of Personal Finance #67

2006-09-25T10:03:00.000-05:00

Carnival of Personal Finance #67 has been posted on Canadian Capitalist.

Some posts I enjoyed:

Colorado Health Insurance Insider's post about kids and health insurance.

My Finanical Awareness's post on money and relationships. I don't think enough can ever be said about this subject and hearing the same things over and over again is a good reminder.

Accumulating Money's Need vs. Want. This seems like an ongoing dialogue with the partner, classifying things as a need or want. He seems really stuck in the everything is a "need" category.

New Job

2006-09-22T10:21:00.000-05:00

My long job search has finally ended. I started at a national non-profit last week and my head has been spinning ever since. I'm part of a project that has just launched a national call for proposals and the activity is almost overwhelming. I've come home from work exhausted every night, yet eager to wake up and start again.

In terms of personal finances:

The position is $1,000 less than I wanted but I took it anyways. It is $12,000 more than my last position, so that makes me feel a little better. I described many details about this position in my evaluating job offer series Part One and Two (it is closely related to job offer two).

My title leaves much to be desired because it is the same one I had at my last job. However, I realize the responsibilty is much greater than previous positions and it provides a good challenge and opportunity to excel.

I have to commute to work and will be using public transportation. This requires a ~45 minute bus ride, 22 minute train ride, and 10 minute walk (to the bus and then to the office) each way. For me it works out to free exercise and about $130 a month. I will be able to get $105/month in pre-tax benefits.

I must improve my habit of bringing lunch to work. I work in an area full of wonderful food; it can add up quickly. Last week put a major damper on my budget because I failed to bring a lunch each day.

I am excited about this position. It is taking me away from home for longer periods of time than I am used to. My family is having to adjust to the fact that the partner is now the one home the majority of the time but I know that it will work out as we get used to the new schedule.

Decision: Selling My Car

2006-09-18T16:47:00.000-05:00

In July I posted about selling my car and got some useful comments. However, I realized that I still hadn't committed to either prospect.

To briefly folow up on previous comments: 1) we will (most likely) not be getting a new car payment -- we both like the freedom of owning our cars outright; 2) Maryland insurance was more than $3,000 a year and Oklahoma was $500 -- big difference; 3) the partner's marriage discount amounted to $100 a year -- not impressive.

The partner and I discussed this further and outlied the pros for selling:

milage (almost 140K)
no a/c -- summer in Maryland is painful and none of our three cars has a/c
stick shift -- annoying in rush hour traffic but otherwise great
front-wheel drive is harder for the partner to work on
no where to work on a vehicle at current residence
don't want unexpected problems to arise -- more common as car gets older
will be easier to sell now than later
I will be using public transit for work and need to reduce transportation costs
we really don't need three cars for two drivers
no inspection fees and fees to tag it in MD

and the cons for selling:

I love my car
timing on being able to buy a newer car -- will I be stuck driving his car for a while?
it is a great car and it never complains about anything
time and effort
again, I really love my car

So, we've decided to sell my car and I think I have finally settled and accepted this fact. This weekend I will do everything I can to get it cleaned and see if I can get out some spots in the backseat (oh the joys of children). Then, I think I'll visit the local CarMax, but I know they offer low numbers for cars over 100K, and then post to craigslist. I'll also post around in my social circles as well.

Also, I am considering getting it Maryland inspected anyways just so I can advertise that it has been done. This will help in terms of selling the car, I think, but will create a new timeline needed to get it sold. I'm a bit swamped right now and wondering if this will come back to bite me.

Finaly, I think the blue book value for my car is $3,100 but I just don't see anyone paying that much for it. It is a great, reliable car but it has power-nothing (except breaks and steering) and no a/c. Maybe this cool spell and cooler weather that we are having will help people overlook that aspect. The heater works great!

Cutting Costs by Cutting Connection

2006-09-18T16:14:00.000-05:00

I have lived with high speed internet for at least 7 years. It started with DSL and my last residence had a T1 line. Needless to say, I have grown very accustom to high speed internet access. The partner has been living with high speed internet even longer than I have. We are both firmly committed to high speed access, or so we thought.

As soon as we signed the lease for our current residence, I ordered DSL and phone service. After a lot of calls and trouble tickets, the local dsl service finally decided that we cannot get high speed internet at our residence. All of the other dsl providers in the area echo this sentiment and we're left with only cable modem options.

However, neither the partner nor I want to spend money with the local cable companies. Yes, we are quite aware of the fact that we don't have to get cable in order to get internet, but that isn't really the issue. Being a tv-free household, we just don't want our money going to this company. Maybe some people think this is ridiculous, but it is just part of our way of voting with our dollars and we're voting ourselves right out of internet.

Now, while we were waiting for the dsl that was not to be to get installed, we had to come up with some other internet options. The partner discovered that he could dial into a friends house and I remembered the free dial-up access I can get through campus. So, we've been making do with dialup and have discovered that it just might actually work for us.

We are looking at the option of paying nothing for a slower connection or paying $60+ to a place we don't want to support. Now, while I thought that dial-up would be the end of the world, it turns out that is not the case. Dialup is actually working out just fine for the surfing that we are doing. The partner had high speed access at work, so he can get all of his streaming news articles. I am patient and will wait the couple of minutes for my pages full of tabs to load. Overall, it is far better than I thought it would be.

So now, I think we've decided that we would rather deal with slightly slower service for free instead of adding to our already elevated monthly expenses. Maybe it is something other internet-addicts (which I am also) could actually do for the right price. But I know, most people will read this and think "dial-up? no way!" and a couple months ago, I was right there too. But, having given it a go for several weeks now, it's not too bad. In fact, I think we can make this work for the next year for an annual savings of about $800.

Comparing Job Offers: Part Two

2006-09-18T09:09:00.000-05:00

Welcome to the conclusion of my mini comparing job offers series. In the previous post, Comparing Job Offers: Part One, I compared the financial value of benefits offered by two different jobs. Now, having some numbers to work with, it is time to also consider the other job qualities that can make or break a job offer.

While the salary offered stands out for each job, we must recognize that money is not everything. There are several other qualities that must be considered when looking at the big picture of a new position. These qualities vary based on your personal preferences and everyone should compile a list of criteria to judge the positions by. Some qualities to consider are:

Workplace culture: What is the office atmosphere and the general attitude of coworkers? Is it an office where the finish line is on everyone's mind and you must constantly wonder if your coworkers are working for or against you? Is it an environment where everyone is friendly and interested in working together on projects?
Office Location:Where is the office located? Will you be out in the middle of no where with nothing to fill the required 1 hour lunch break or are there endless temptations just next door waiting to lighten your wallet?
Prestige: How will you feel telling your friends and peers about the company? Is it a company or organization that lends additional respect to the work you are doing? Also, how will it look on the resume when looking for a future position?
Work day: What are the hours? Is full-time a 35-hour work week or a 60-hour work week? Do you have to be a slave to the clock? Is there flextime available?
Time Off: Just like time in the office, consider how much time you'll be able to spend out of the office. You can place a dollar value on this and determine the importance of time off in terms of job satisfaction.
Commute: How long will it take to get to work? What are your transportation options? Car? Train?
Duties: What are your tasks? How do they compare to your experience, desired level of responsibility, and future growth? How do they compare between offers? Also, how challenging is the position?
Stress: What is the stress level expected for this position. This can include a combination of commute, schedule, time off, and duties.
Growth and Advanement: Is there room for growth? Is individual advancement expected and encouraged? Will this position stall your career growth potential?
Personal Values: How does the position fit in with your personal values? Will you be doing work that you feel is worthwhile? Will you be working to improve the bottom line for you and/or yourself?

As a reminder, I am comparing the following hypothtical positions in this series:

Job Offer One: Office Manager position at a for-profit, blue-collar industry company. This is a small, home-based business that has been in business for many years. This is a new position for the company and was established to respond to the companies continued growth in business. There are only two or three office personnel and the remaining staff work out of the office at customer sites. There is little to no room for growth or personal advancement in this position. ($38,000/year)

Job Offer Two: Program Assistant position at a non-profit, education field organization. This is an organization that has been in operation for almost 100 years and is nationally recognized in the field of education. This is a new position paid for by a new grant funded initiative. There are almost 50 staff members working on a variety of projects, programs, and initiatives. There is extensive room for growth and personal advancement in this position. ($33,000/year)

Qualities	Job Offer One	Job Offer Two
Culture	Blue-collar workplace. Small staff and casual environment.	Professional workplace with almost 50 staff members. Very close knit department and a lot of support and assistance from coworkers. Friendly and enthusiastic staff.
Prestige	None. Will look out of place on the resume if I wish to pursue future position in educational programming or research.	Well known organization in the higher education field. Will provide a strong position for growth within the field and look very good on the resume.
Duties	Basic duties at current skill level. Not very challenging.	A step up from previous position and higher degree of responsibility. Scope of work and the number of projects will provide new and exciting challeneges.
Location	Close to home but in a residential area with nothing around to fill the lunch hour if I wanted a break from the office. Would save money by not going out to lunch but may lead to feelings of being trapped when there is no where to go.	Very hip area with lots of shops and food options. Would probably put a dink in the wallet if I don’t keep a strict eye on spending.
Commute	Only a few miles away and about a 10 minute drive. Rush hour traffic irrelevant.	60-80 minute commute. Would require catching the bus (~45min) and a train (22min). Ability to read and catch up on work while commuting.
Growth and Advancement	Limited if any. No where to grow to and education and further development not encouraged.	Strong growth potential recognized and encouraged. Additional education also encouraged.
Personal Values	I would be helping the company make a buck and nothing more. Not very aligned with my desire to improve the world.	Excellent alignment with personal values. Working in my field of interest to ends that I admire.

Conclusion: This chart illustrates the degree of differences between the two job offers. For me, this is the comparison that truly makes a difference. Based on this comparison, I am far more interested in Job Offer Two, even with the longer commute and smaller salary. Thanks to taking the time to compare job qualities and the financial value of benefits, I am confident that my selection is a good one.

Resources:
Comparing two or more job offers looks mostly at the financial aspects but also lists the importance of considering job factors.
How to Weigh Pay vs. Prestige When Comparing Job Offers talks about the importance of prestige and how it can go farther than your paycheck sometimes.
Comparing all the factors when comparing to jobs has lists similar to the one above. It also describes rating the qualities on a numerical scale.

Comparing Job Offers: Part One

2006-09-09T13:12:00.000-05:00

For those who have be actively searching for a new job for several months, like me, you may not believe this could ever be a problem. For those entering the job market with high hopes and expectations, you might be expecting companies to be falling all over themselves to get you. Either way, it is important to carefully analyze each job offer your receive (and/or negotiate).

Part One of The Weight of Money’s Comparing Job Offers series focuses on benefits.

While salary is one of the primary criteria for judging employment positions, it should not be the only criteria. There are many other factors about an offer that should be considered, including responsibilities, advancement, commute, office environments, and benefits.

In my search to compare two upcoming job offers, I found several articles detailing ways to compare the overall job qualities. However, I wanted to focuses on benefits packages and look a true values, in dollar amounts, of each option.

In this series, I will compare two different job offer packages. While this is a fictious example, it is closely related to personal choices that I will be making in the next week. Therefore, I will also be evaluating these offers based on my preferences. Each job seeker should carefully use their own criteria to judge offers.

Job Offer One: Office Manager position at a for-profit, blue-collar industry company. This is a small, home-based business that has been in business for many years. This is a new position for the company and was established to respond to the companies continued growth in business. There are only two or three office personnel and the remaining staff work out of the office at customer sites. There is little to no room for growth or personal advancement in this position.

Job Offer Two: Program Assistant position at a non-profit, education field organization. This is an organization that has been in operation for almost 100 years and is nationally recognized in the field of education. This is a new position paid for by a new grant funded initiative. There are almost 50 staff members working on a variety of projects, programs, and initiatives. There is extensive room for growth and personal advancement in this position.

Salary + Benefits	Job Offer One	Job Offer Two	Comparison
Salary	$38,000/ year	$33,000/year	$5,000 more at Job One
Medical Insurance Family Premium $500/month ($200 individual premium)	Employer pays 30% Employer: $1,800/year Employee: $4,200/year	Employer pays 100% employee premium and 50% dependant premium Employer; $4,200/year Employee: $1,800/year	Job One: +$1,800/year Job Two: +$4,200/year
Dental Insurance Family Premium $100/month ($50 is individual premium)	Employer Pays 15% Employer: $180/year Employee: $1,020/year	Employer pays 100% individual premiums. Employer: $600/year, Employee: $600/year.	Job One: +$180/year Job Two: +$600/year
Retirement Employer contribution not contingent on employee contribution.	No employer contribution. $0/year	5% contribution first year, 10% following years. $1,650 first year, $3,300 following years	Job One: +$0/year Job Two: +$1,650/year one, $3,300/year two+
Total Salary + Benefits	Job Offer One: $39,980/year	Job Offer Two: $39,450/year one, $41,400/year after.	Year One: $530 more at Job One. Year Two+: $1,420 more at Job Two
Vacation Days	First year: 5/year Second+ year: 10/year	First year: 12/year Second year: 18/year Third+ year: 24/year	7 days more, 8 to 14 days more at Job Two
Holidays	6/year	11/year	5 days more at Job Two
Sick Days	5/year	12/year	7 days more at Job Two
Personal Days	0	1	1 day more at Job Two
Time Off Adjustment This adjustment considers salary+benefits divided by the actual number of weeks worked.	Work 48.8 weeks the first year at $819.26/week. Work 47.8 weeks remaining years at $836.40/week.	Work 44.8 weeks the first year at $880.58/week. Work 43.6 weeks the second year at $949.54/week. Work 42.4 weeks the third and remaining years at $976.42/week.	Year One:$61.32/week worked more at Job Two. Year Two:$113.14/week worked more at Job Two. Year Three+:$140.02/week worked at Job Two.

Generalizations made to simplify calculations: Medical and insurance premium were kept consistent for both organizations. Annual salary increases were excluded.

Time Off Adjustment: This adjustment will depend on your personal preferences. For me, time off is extremely important and therefore highly relevant in calculating the amount paid per week of actual work. One reason for this preference is that my personal time commitments necessitate at least 11 vacation days a year. Also, some people may choose to exclude sick leave from this calculation. While I feel that it is not advisable to use all available sick leave, I do not want to be penalized with unpaid time off if I, or my child, should get sick for an extended period of time or ill several times in one year.

Conclusions: Developing this chart really helped compare the different benefits packages with actual numbers. It confirmed my understanding that while non-profits often pay less than their for-profit counter parts, their benefits packages can often make up the difference in pay.

Next: In Comparing Job Offers: Part Two, I will evaluate the overall job characteristics of each position. While salary and the actual value of benefits helps paint the financial picture for each job offer, there are other important considerations that should be made before making a final decision.

Resources:
The only source I've found discussing calculating vacation time was The Value of a Vacation Week posted at Find a New Job.

Next: Part Two

Part-time Job Opportunity

2006-09-05T13:24:00.000-05:00

I've been racking my brain to come up with some ways to make money working at home and finally I'm going to act on one of them. This is a zero investment opportunity that couldn't be more ideal or come at a better time and all I had to do was put the idea out there. I will be flying out of state and spending a week learning traditional native arts & crafts. I will come home with the supplies I need to get started making items and already have a retail place secured to sell the items I make. I know there is indeed a market for these items because it is the high market demand that is making this all possible.

My mother runs her own custom sewing business that caters to traditional and ceremonial sewing for the local tribe in her area. For several years, she has also run an alterations business at the same time, but has finally had to turn customers away because custom sewing pays more and she just doesn't have the time to do both. We've talked many times about how impossible it is for her to keep part-time help and how she can't reach her shop dreams without additional assistance. For over a year we've talked about the idea of me making some items that she can sell, but over-the-phone descriptions of the items aren't clear enough and there are limited online resources for seeing exactly what she wants me to make. So, I'm just going to go out there and learn what I need to learn.

My mother is so excited and eager to have help that she was willing to buy my plane ticket (which she can then write off as a business expense), willing to set me up with all the supplies I'll need to get started, and was willing to let me show up without her precious grand baby (the daughter). I will be able to pay her back for the supplies when things sell.

She is going to be showing me some of the traditional beadwork and also set up a private lessons with a local expert bead artist that she's been wanting to learn from but just hasn't had the time. I'll also be learning how to make some the ribbon shirts and other non-jewelry items. She wants to build the retail offering in her store and needs someone able to make high quality items to sell.

Hopefully, by teaching me these things, she'll get some retail stock and I'll be able to sell there and online if I choose. Also, I'll be using the winter to get ready for the summer PowWow and dance season. This is a quiet time of year for ceremonial sales but since I won't be footing any of the initial start-up costs, it is a win-win situation for me. We decided that a week would be enough time to learn everything I'll need to know and practice making some of the shirts (I'm sure this is just her way of getting some free labor out of me while I'm there *grin*).

Now, in addition to hopefully providing some supplemental income, I'll also get to hand down the traditions to the daughter as well. A major plus since so many of these arts are fading away because none of the kids want to continue them. Now, the tribe my mom lives near is not our tribe. There are tribal specific arts and styles that will make this work different than work traditional to our family's tribe. However, seeing as how so much is fading away, I'm sure the daughter won't ming learning another groups ways, especially not when it is the group she sees most when visiting in Oklahoma. Plus, many of the skills translate well but the patterns and styles are tribe specific and my mom has learned that each group tends to buy only within their tradition -- hence why I have a beautiful shawl with Seminole patchwork in my closet that my mom let me borrow and never wanted back because she knew it wasn't going to sell.

I'm so excited!

financial doom - to act or not

2006-09-03T15:00:00.000-05:00

What do you do when you think you might have made a very big financial mistake that will take about a year to impart full impact? This is not a situation you can avoid nor will you know for certain that it will happen (yet). Instead, you have reasonable indications that this is possible and are now facing the choice of wether or not to start stressing about it or not.

Now, I like to plan ahead and know when the world is going to fall apart. I tend to let my mind run away with those little indications and go ahead and plan for the worse. Right now, I'm wondering if this possibility will alter my course of action in terms of jobs or not.

I know, I'm being vague -- and the coffee shop is putting away it's chairs and I should be heading out -- but I want input without revealing the actual problem, probably not the best combination.

and the budget begins

2006-09-01T10:37:00.000-05:00

The partner and I start our combine spending this month and it'll be... interesting. Since I've got no job and since we rented a place before I knew what he actually brings home, we're in the red this month. So, I'll toss over some of my savings to cover what I should be bringing home and we'll both get skinny on spending.

It is a pretty heated issue because, for him, it is so much change at once. Change banks, change direct deposit, change amount in his account, change spending methods (I don't do cash, he does), and I think there is a lot of teeth gritting going on. But, we're going to do it and we're going to do it right. :)

Of course, the money isn't actually in the account to spend yet -- he needs to pull from his personal account and I need to pull from mine, but we're at least going to get started this month.

Looking at our -$700 for a conservative month of spending, I've got to get moving on that job thing. More interviews next week, still nothing from the ones I've had. My moral career decision making just got a new kick since I'm seeing just how red we are right now. So much for holding out for the right organization, time to take one and then go from there.

Save Money - Make the Call

2006-08-30T11:22:00.000-05:00

I saved us $59.90 in just two days by paying attention to details and making necessary phone calls.

Saving #1: Credit Card Late Fee (39.00) -- Due to the moving madness, we missed a credit card bill. The partner has never missed a bill and I promptly told him to call them and ask to have the charge removed. After almost two weeks of telling him to not forget, I just made the call myself. I explained the situation and reminded them that he has always payed his bill on time. They removed the fee and also reset the APR that had shot up 3% in response to the late charge. I also expressed concern over it being reported to the credit agencies and hopefully that is revolved as well -- they were a little less clear on this matter.

Savings #2: Residential Phone Service ($2.98) -- We've had some very unfortunate experiences in getting phone (and internet) service. After our first failed attempt, we put in a new order on the 11th. However, the line still didn't work and no one came out until the 17th to fix it. However, our bill still showed charges for the week that we couldn't use the phone. This call took the longest because they were a little reluctant to provide a credit, but I persisted and got a credit. According to my bill, the credit should have been $3.79 but I decided to give up after 10 minutes on the phone and took the $2.98 credit offered.

Savings #3: Electric Service ($17.92) -- When moving into a new place, take note of your meter readings. The electric company overcharged us for almost 200 kWh. While we forgot to take a meter reading the day we moved in, we did take one two days later and then the following week. Those numbers, along with the current meter reading, provided me an average daily use number that allowed me to give the electric company a more accurate previous (initial) reading and reduced our bill. It is important to know your daily energy usage -- I knew ahead of time that we were using about 35 kWh/day and that the bill's stated average of 51 kWh/day was too high. Also, when making the call, be confident and don't let confused agents talk you out of your savings - the agent told me that I was providing a higher previous reading and that I would be charged more. I had to clarify for her that when considering the difference of the current reading and previous reading, a higher previous reading would in fact reduce my bill, it took her a moment to finally realize her math error and agree.

Each of these calls took, on average, about 6 minutes. The average was driven up by the phone company's reluctance to give me the credit, but it is worth it. If we had the more expensive phone packages the savings would have been more substantial, but whether it is $3.00 or $30.00 it is still our hard earned money that is being spent.

The Best Budgeting Advice

2006-08-28T13:15:00.000-05:00

There are many things people can do to stay on budget. If you have a budget or spending plan already planned out, the best thing you can do is check in with it during the month. Don’t wait until the month is coming to a close; check your budget progress every week or every other week.

I have been lax on my budgeting lately and it is having a negative impact this month. I have not entered any budget numbers this month at all and it has been a busy month. It started with a week at camp, which should have been no-spend days but was quite the opposite, and went through the weeks of moving. I should have been watching where my money was going, but I convinced myself that I just didn’t have the time.

So, I’ve now run the numbers for this month and I am way off budget. By several hundred dollars off budget and I still haven’t accounted for this weekend’s spending or the spending at the grocery store that I am about to do. If I had taken 10 minutes, two weeks ago, I would have known that I’d already spent too much in frivolous categories and had already put a hefty ding in my dining out budget. If I had done this, I would have made some better financial choices throughout the rest of the month. But, I didn’t and now I am looking at numbers that are making me cringe.

Soon, this month will end and the partner and I will start on our financial journey together. I am somewhat disappointed that this move follows a month of overspending and poor budget control. That just isn’t the encouragement and foundation I was to build from. But, I know that I am good at staying on track and that the circumstances of this month lent themselves to poor money managements – something that won’t be happening again anytime soon (I’m far to practical to say “won’t ever happen again”).

silently spending and surfing

2006-08-24T10:45:00.000-05:00

I have not fallen off the personal finance blogging bandwagon, I've simply hit a major bump in the road -- no internet at the new house. It is torture not having access to the world of information at my fingertips. So, I'm forced to travel to libraries and the old house to get connection fixes. However, since I'm in the middle of frantic job hunting, that means all my time internet-enabled time is spent searching and responding to job leads -- no time for writing juicy tidbits about my financial habits.

I do open four of five windows full of tabbed pages for reading at home when I need to at least pretend that I've got some connection to the real world. I've seen things that I've wanted to comment on, but I really like that easy print and post option and am less likley to save it somewhere else and publish it later. So, in the mean time, I'll at least let everyone know:

I'm spending way too much on this move. Trash bags, trash cans, replacing closet systems, improving closet systems, buying books. Well, the book thing is more a habit and the partner put two bookcases in the living room and I couldn't help picking up a few books at the library book sale to add some of my interests to the shelves (I normally just keep about 30 library books out at a time).

Finally, the partner is of the move-one-day-at-a-time variety and I've reached my limit for this time of moving. It feels like I've been packing and moving for weeks and when I look at the calendar, I realize that I HAVE! I've pretty muched stopped helping and am just waiting for the never ending tide of boxes to stop appearing -- maybe we'll be moved out of the old place by the end of December, I'm not holding my breath though. Sigh.

Moving away from Debt Reduction

2006-08-11T15:37:00.000-05:00

We are in the middle of moving -- packing, getting stuff into the new place, figuring out what to do with the stuff that won't fit. It is wrecking havoc on my finances focus because there is so little time available to spend focusing on things I care about, whether or not to pay extra toward this card, whether or not to pay off one card entirely, what to do about the two cars that need replacing...

I know this is temporary, but it is still getting under my skin. I want to be working out the plan to get our budget under control and our debt blown away, but I can't do that when all I'm doing is packing and moving boxes and the partner and I still haven't combine money.

We made a large purchase recently that I would have preferred having more time to think about it. As I've mentioned, the partner has a lot of stuff -- tons and tons, literally. He had been borrowing a pallet jack from work for a couple months and it has been very helpful. But, last week they noticed it was gone and needed it back. Somehow, the partner managed to talk me into us buying one. Now, they were on sale -- though I hate that rationale for buying things -- and it has been extremely useful, but I'm starting to wonder now if I would have said yes if we weren't in the middle of moving and if our plates were not so full at the moment. Yes, it has been useful but we obviously got along without it. And, while I understand the flexibility it offers over the forklift, the forklift has served that purpose just fine for quite some time now. So, I'm feeling a little disappointed that I didn't take more time to consider this decision before agreeing to it. Yet, I am glad to see that he felt the need to really consult with me and talk through this idea, even if I didn't give it much time to consider it.

I think I need to set a date for when all this moving stuff needs to not be taking over so much of the rest of our life and for when we will finally join up all this money thing. August was the plan but with summer camp plans it didn't happen. So, we must get things in order to start the new budget together by September. And then, when the partner asks me things like "How much should we put toward Chase this month?" -- I will be able to answer off the top of my head because I'll be in the know. For now, it is still just a shrug and a frown and I tell him to make up a number that sounds nice.

Eating Out and Buying Groceries

2006-08-10T14:03:00.000-05:00

I doubt that anyone has really scanned my monthly budget, but if they have, they may wonder why I only budget $20.00 for groceries. This is because when I first went back to school and moved into my friend's house, I was not buying groceries. My friends paid for all the food and I did all of the shopping and cooking. It worked out to a pretty good arrangement. At the time, I was spending about $100 a month eating out, and $4 a month, on average, on groceries outside of the household spending.

That arrangement eventually fell apart due to busy schedules and soon I found myself with no groceries and no grocery budget. I mostly made up for it by eating out more often and making do with whatever was in the kitchen for when they went shopping. Also, the partner started buying groceries occasionally.

So, I am now budgeting $100 for August's budget for groceries, a completely impractical number for feeding a family of three, but I won't be the only one buying food. I look forward to having a real budget come September for food and seeing what I can do to make our limited budget stretch enough to cover groceries.

I have food issues and money issues that are in conflict with each other. I am constantly concerned over not having enough food and not having enough money. I have a very hard time spending money, even when I have it to spend, and will talk myself out of buying things. Seeing as how I'm always worried about not having enough to eat, it seems foolish that I will also talk myself out of buying food items of things because they *cost money* (shock!).

Unfortunatly, It is easier for me to spend money eating out than it is to buy a week's worth of groceries because it feels like a smaller amount of money though I know that is not true. I hope that I will be getting over this very soon, but if I'm supposed to make $100 provide a month's worth of groceries, it won't be happening anytime soon. September will be easier cause I'll have control/overview of both of our incomes and be able to really see how much we can spend on food and hopefully it'll allow me to lose some stress over spending money at the grocery store.

Calculating my professional worth

2006-08-08T15:49:00.000-05:00

I'm anxiously waiting to hear back from a job that I really want. I completed the first interview a couple weeks ago and the second interview yesterday. I feel that both went extremely well. I was told that they would be making a decision this afternoon. However, I never directly brought up the issue of salary -- argh!

After the first interview, I was a little annoyed that it hadn't come up but was comfortable with not asking about it. Now that the second interview is completed, I'm wishing I'd been a little more pushy on that issue. I asked about it in the most round about way possible in inquiring about logistics of the position and got back information I wanted about work hours and also some benefit information -- but not a salary disclosure.

So, not only am I on pins and needles waiting to hear if I got the job or not, I'm anxious about whether or not it will pay enough. Currently, I'm looking to make $35,000 a year -- however, this is an almost completely fictitious number. I've no real basis for why I think that would be a good number, it has just been the one I've been most attached to since getting out of school. I know that $30,000 is the minimum I would consider, but I wonder if I would take something that low or not. My last job was $22,000 a year -- and I've since earned a degree and $35,000 in school loan debt.

So, I'm looking through some job postings on monster and in other job banks to see if I can come up with comparable job descriptions and salary listings. This position was simply listed that pay would be based on experience. I am comforted by the fact that at each interview, they have pointed out that I have considerable experience -- a assertion that surprises me somewhat since I feel my scattered jobs don't reflect experience as much as temporariness.

The position is a sort of mix of duties because the office is so small. The primary listing details it as a Grants Manager and Office Manager, but the interview also established that it really needs to lead into overall Operations Manager for the office. I can't believe that I am actually excited about the idea of having the title of "manager" since I figured that I'd never want to fill such a role, but it relates to managing tasks, not people, at least not at this point.

Well, I see that looking on monster offers a large range of salaries and duties. Basically, they mostly seem to list anything from $30,000 - $50,000 for somewhat comparable positions. However, I must also factor in the reality that the corporate world and business world differs greatly from the non-profit. Looking at idealist.org, I find comparable positions listed from the upper 20s to 40s. Wow, I'm glad I did this -- I just saw that the position I am waiting to hear from finally updated that portion of their listing -- it currently lists low to mid 30s. So, looks like I just might get my 35K afterall, and maybe, just maybe, after seeing these other listings, I'll see if I can push up it just a little higher. :)

Student Loans & The Cost of Procrastination

2006-08-08T15:39:00.000-05:00

I needed to call about consolidating my last two student loans before school let out. I didn't.
I needed to call about consolidating my last two student loans before July 1. I didn't.
I needed to do this, I didn't, and now it will cost me more to pay off my student loans.

I finally called, and despite my mistaken notion, it is not possible to add my two unconsolidated loans to my consolidated loan for without changing (raising) the interest rate.

I must now figure out if it is worth it to consolidate them anyways or not. In all my calculations, I either save or lose about $300 in the life of the loan if I consolidate. My monthly payments would be only a few cents lower, but I would have the advantage of sending one check to one place every month.

My current consolidated loan is at 2.875% fixed -- it amazes me to have such low interest.
My unconsolidated loans are at 6.54% variable each year -- a little more consistent with current interest rates.

My options, at the moment are:

1) Consolidate all loans and end up at 4.125% fixed and send one check to one place.

2) Consolidate the unconsolidated loans together and then have one consolidated loan at 2.875% and one at 6.54% and send one check to one place.

3) Do nothing right now and wait to see what interest rates are going to do next year and send two checks to two places in the meantime. A lot can change in a year for interest rates.

I'm not sure what I am going to do. I find a lot of value in sending one check to one place and so the consolidation offers a lot of benefit. One benefit to having two separate loans is that it would be easier to make additional payments to pay one off sooner. If I consolidate them, either into one loan or two separate consolidated loans, it will be more work to make additional payments (to pay one off faster) and would allow more room for error on the processor's part.

Current plan of action: nothing, I'm going to mark my calendar to think about this again in October 2006, a month before my grace period ends.

Oh, good news is that I found out that I have about 5K less in school loan debt than I thought. Looks like my networth will get an instant boost mentally though not actually since I never owed as much as I thought to begin with.

Budget Recap - July

2006-08-07T13:57:00.000-05:00

Wow, July went really fast. Maybe because it started with wedding madness or because there was simply so much going on. It is requiring extra discipline to focus and reflect on my budget for July because I'm already all wrapped up in August's spending and needs. I thought July would be the last month of my individual budget, but since the partner and I still haven't joined finances and since I was out of town for a week, we'll wait until September to join forces, I mean, money.

Dining Out - $134.48
Since this is usually a sore spot, I'll start with it. I've seen another decrease in what I am spending eating out -- hurrah!. I am very excited about this. Hopefully, this trend will continue.

Transportaion - $111.95
A slight dip in transportation costs. However, I'm betting that will go right back up this month since I've made several 70 mile drives to camp and back and there is still one more to make before the month is over. Gas prices have also shot up and I actually paid $3.17 a gallon recently, that is the highest I have paid in many, many months and I did not fill up. So, I need to stop and get gas asap and will still be paying over $3.00 a gallon to do so.

Orthodontist - $100
This has been a recurring bill for over a year now and, huzzah, it will no longer be. This is the bill I spoke of here when describing a bill pay error. I expect that I will get this money back sometime this month, hopefully, since I was not able to stop payment on it without getting charged a fee.

DD - $257.96
This is an unusual month to have such high expenses for the daughter. $31 spent is actually her money -- she turned in all her coins from her piggy jar and had to put 50% in her ING account (which first gets deposited into my account which is included under deposits). $100 also went into her ING savings because I felt like transferring more than just $31. It wasn't planned, so that did take a small bite out of my budget. Also, I had to make her a mattress for camp and that end up costing $116.49 in materials -- anyone who still thinks that sewing things yourself is cheaper, is mistaken. That $116 should really be listed under "procrastination" because I could have saved money if I had ordered a mattress several week prior to camp.

Overall, I'm pleased with my budget, even if I did go over somewhat. The mattress purchase and the moving supplies were what really pushed me over my budget.

I'm Off Saving Money

2006-07-29T13:36:00.000-05:00

I will be on vacation until August 8th - a vacation worth -$400. The daughter's sleep away camp is $800 for two weeks; if I go and work there for a week - I get a week's worth of camp paid for. Considering the steep price of camp, this is a requirement for our family because I just couldn't afford it otherwise. Also, our camping program gives out scholarship money for lower income families, like us, and even with a scholarship this year, I still have to go and work a week to make it possible.

I absolutely think the camp is worth the cost and that my efforts are worth the reimbursement our family receives. I've already started budgeting for next years camp -- registration starts in Jan or Feb and payment is due by May -- and know that with my new job (or at least a new job I hope to have by then) I won't be able to take a week off to work at camp. Last week, however, the daughter said that she wants to go to camp for four weeks -- $ouch!. I told her that she better start thinking of ways to earn the money between now and then if she really wants to make it happen.

I look forward to catching up on some interesting posts when I get back.

Save Money by Organizing Your Hobbies

2006-07-29T13:16:00.000-05:00

I love crafts of all sorts and I collect materials for different types of crafts at alarming rates. Now that I'm in the middle of packing to move, I'm starting to reconsider the organization patterns and purchasing patterns my craft hobbies have established. I've discovered that I truly enjoy acquiring crafting supplies more than I like actually making things. I love having neat little collections of everything you need to make x, y, or z. However, I've noticed lots of overlap and overpricing that could be avoided with organization.

I was looking for a way to organize my paper supplies and found this article:
Get Organized with Becky. This article shows a great way to organize all of your scrapbooking supplies but can easily be transferred to other craft or sewing supplies as well.

I noticed that some of my paper art supplies look very similar to my sewing supplies. While they look that same, I'm certain that I paid more for the paper art materials that resemble sewing supplies than if I'd just purchased sewing supplies. Take ribbon or thread "embellishments" for example. These are sold in scrapbooking stores and sections and frequently contain short lengths of colorful or whimsical threads. Now, in my knitting supplies, I have tons of neat threads that are certainly far more economically priced -- because while scrapbookers only buy enough to "embellish" a page, knitters must buy enough to make an entire project. Don't get me wrong, I'm not saying that yarn is cheap -- I've been to too many sheep and wool festivals and yarn shops to think that -- but it is certainly cheaper per inch/foot/yard than yarn/thread sets marketed to paper hobbyists.

So, Becky's article comes in very handy in helping reduce spending just by getting your craft space organized. While her tips are truly focused for scrapbookers, I can easily see how I can use those same methods to organize my sewing, painting, calligraphy, beading, polymer clay, metal, and other craft hobbies in a way that will allow me to use any and all supplies for any type of hobby. This way, I can use the better priced items that I already have on hand instead of being tempted by neatly packaged "embellishments" the scrapbooking companies are selling at a much higher priced.

Of course, I'm not sure how one would factor in the costs for all the organization supplies needed to have a craft room like the one in the article. Luckily, I've had a passion for clear storage containers for years and have a large selection of bins ready for sorting and storing. And, the partner had lots and lots of cabinets with small drawers perfect for little crafting nick-nacks. Too bad those cabinets weigh so much -- I don't think the man owns anything 'lightweight'.

Caution: Bill Pay Errors

2006-07-24T17:12:00.000-05:00

When setting up recurring bill pay, be sure to enter the correct stop day or you may be facing fees to fix it after the fact.

I miscalculated the daughter's orthodontist bill and ended up sending in an extra payment. I thought this would be simple to correct -- I was wrong.

The orthodontist office kindly called and left a message telling me they had a check for $100 and a previous balance of $0. They wanted to know what they should do -- void the check? Since their office is closed, I called my bank to see what steps to follow to remedy the situation. The real problem is that while they are holding a $100 check sent to them from my online bill pay, my account has already be debited $100. Bill pay checks are not the same as regular checks, no waiting until deposited for your account to be debited.

To answer my question, my bank referred me to the bill pay service and they kindly informed me that I had only two options: 1) apply a "stop payment" on the check or 2) wait 90 days and a stop payment will automatically be applied.

Now -- my bank charges for stop payment orders to the tune of $18. This doesn't seem reasonable, nor does waiting 90 days for the auto-stop payment -- which I'm unclear wether or not I would be charged the same fee.

So, my third option is to speak with the orthodontist and ask them to process the payment and then provide me with a refund. This doesn't sit well with me either, but it looks like it is the only way I'll get all of my money back in a (hopefully) reasonable time frame. Thankfully this error was with a friendly office; I can't imagine trying to solve this with a large, faceless organization.

While I could have avoided this, I am still nervous about using my online bill pay. Of course, when the alternative is going back to paper checks -- I'll just make it a point to pay closer attention to what I'm paying online.

Welcome Visitors

2006-07-24T12:54:00.000-05:00

Thanks to savvy saver for hosting this week's carnival of personal finance.

To the new readers: I write about my adventures in making money work for me instead of me always working for it. I have worked for several years to get beyond some bad money habits and financial disasters. A few weeks ago, I married the partner, and my networth dropped 100% further than it was before. So now, we are working on getting out from under our debt and finding a way to live within our means.

The name of the blog comes from the fact that the partner has a love for metal and I noticed that selling property was calculated not by dollars but by weight instead. He'd come home and tell me how he sold 2,000 pounds or how he helped 5,000 pounds find a new home. His inventory of large machines has been fading as our savings have been increasing.

Since we started dating, he has managed to drop his credit card debt by $10,000 and has made lots of little changes to help stay in line. On this site I simply catalog our attempts and failures at making more positive progress in getting our spending under control and our debt wiped out.

I will be starting a new series next month about tackling your credit report and what you can and should do to try to clear up any inconsistencies or challenge negative information that just might go away if you do. My credit score is very sad, I've not rebuilt any credit in the past few years and I'm really behind in getting this taken care of. But, if we're going to attempt another home buying adventure next year, together, then I need to get my act together so I don't pull down his great credit score too far.

Thanks for reading and enjoy some of the other fine blogs listed this week.

Money Tips: Calculate Tips Correctly

2006-07-19T09:19:00.000-05:00

As a frequent diner, properly tipping servers is very important. I use the standard tip of 20% for the meal. However, I've realized that I may be inaccurately calculating the tip on the total bill instead of excluding tax. Depending on where you live, this could mean a big difference.

Lets take a simple lunch for two as an example:

$26.00 - total food/drinks
$1.30 - 5% MD tax
-----
$27.30 total bill

If you pay 20% on the total, you'll tip $5.46.
If you pay 20% on the order, you'll tip $5.20.

With a difference of $0.26, you may wonder what the differences is. However, you are actually tipping 21% when include the 5% sales tax. If you spend $4,500 annually dining out, you will spend $45 more a year. If your local tax rate is higher, or you travel to areas with higher rates, this could add up even faster.

Now, there is the argument that servers are often under payed and a generous tip is not a bad thing. However, because I tip a standard 20% unless the service is horrendous -- it has to be really bad -- I feel that it balances out for me to keep a 20% tip. That also doesn't include lunches where I dine alone and the bill is less than $10.00. Often times, in these situations, I'll tip a standard $3.00 -$4.00 depending on the service. Here, I've obviously passed the 20% mark but I feel that leave a tip less than $3 is a bit sad -- maybe I just need to get over that.

Also, Mapgirl wrote a good post on why you should leave cash tips or tip higher with credit cards - but I can't find it at the moment, maybe she'll chime in with it.

YNAB - Budget Worksheets - A Good Thing?

2006-07-19T08:52:00.000-05:00

Is YNAB - You Need A Budget the budgeting answer I've been looking for?

I've been looking for a new spreadsheet to manage my monthly spending. I've been at a loss for how to move from independent, single person budgeting, to family budgeting for three. This software looks like it might just work for me.

It's Your Money provided a review of YNAB that sounds very favorable.

The benefits and things that draw me to this program: The recognition that balancing your checkbook is unecessary when working from a budget. I cannot balance a checkbook, I've tried so many times and always fail miserably. Since using my own budget sheets, viewable here, I've never needed to. I keep a buffer of several hundered dollars in my account and don't let my expenses bypass my income.

I do like the logic of needing to have one month of income in the bank to begin with. The partner often looks at his account to see how much money he has, to me this should never be done. The money in my account has a purpose and I should never assume that what is there is available to spend. What my budget tells me is there is far more accurate. [However, one should frequently check their accounts to verify that there is no unauthorized use taking place.]

Also, the taking from the next month what you overspent this month also works for me. I do this now, or at least I did last year. It keeps the money in the account balanced properly.

I also like that there is a register entry for each dollar spent. Right now, I go through all of my charges, check them to the entries in my little green notebook (where I list amount, where, and category), and add things up to put in the proper budget line. It takes a lot of time and there is a high risk of error in adding up 15 dining expenditures.

The biggest draw back is that it looks like you need to re-enter your budgeted amounts each month... that would bother me because I plan ahead and the budgeted amounts should not be so variable. I'm sure copy and paste would work, but the authors do feel that entering the amounts each time is a good habit.

Finally, backups would be required. It panics me now knowing that everything I know about my finances is locked into an excel spreadsheet. If I were to lose it (and it's backups) then I'd have no clue about the status of my accounts.

However, I think that I am going to give it a try. The partner is going to read over it at work today and give his opinion. Last night was the first time he didn't allude to a budget being the end of the world -- we're making progress!

Evaluating Fitness Center Fees

2006-07-18T20:13:00.000-05:00

Having graduated, I no longer have access to the campus recreation center supported and funded by student fees. I've been without a gym for several weeks now and my health, stress, and sleep levels are showing it. So, it is time to evaluate the local gyms since we now have a place to live (more on that later).

On first impression, I am greatly underwhelmed with the two county facilities I visited this evening. I guess comparison to an expensive, well funded gym to one that survives on county funding and local memberships to supplement their budget is a setup for disappointment. Now, the dilemma is: which poor candidate is the best candidate?

West Facility:
12 month Individual Membership - $135
nothing available for the daughter

East Facility:
12 month Individual Membership - Fitness Only - $205
12 month Individual Membership - Aquatics Only - $220
12 month Individual Membership - Fitness & Aquatics - $315
12 month Junior Membership* - Aquatic Only - $135
12 month Family Membership - Aquatic Only - $355
10 swims Junior Pass* - $36
* The Junior annual membership compared to the 10-swim pass: The daughter would need to go more than 3.125 times a month to make the annual membership the better option. Considering how busy life gets, I think the pass would be a better option for the daughter because the months she go more would be balanced by the months she goes less. Plus, considering holidays and summer, an annual membership would be too much of a commitment for someone so young.

East Facility Pros/Cons:
+ swimming
+ bike trail access
+ the daughter's friends go often
+ lap swim available all day
+ 6am opening
+ indoor tennis
+ personal training
- pay per use lockers
- no rental lockers available
- small fitness area (maybe 15 cardio machines)

West Facility Pros/Cons
+ somewhat improved fitness center
- no swimming
- 9am start time
- bike access more difficult

Nothing really sells me on the West facility and I'd go with the East just because that is all that is left. However, with these options, I'm going to check out a commercial gym that is a few miles down the road. It lacks bike access, is a bit further than I want to go, but may be my only option if I want a place that is anything like the campus center.

When selling your car becomes better than keeping it.

2006-07-18T15:51:00.000-05:00

I have a wonderful car! She is 8 years old, has 135K miles, and has never really given me any problems. I would love to keep her until she dies; however, I'm seriously considering selling her sometime soon.

When I returned to college full-time, I couldn't afford Maryland car insurance. I "sold" my car to my mom, she titled it in Oklahoma, and has kept insurance on it for the past two years with me driving it in Maryland. Thanks to being a full-time student, that is possible. However, now that I'm married and back in the professional world (hopefully I'll be working soon), I need to get personal insurance and get on the partner's policy. That means bringing this car back into Maryland.

In 2002, I moved to Maryland with this car. In 2003, I paid all of the fees to get it tagged, titled, and taxed correctly. This included an inspection ($55) that failed due to poor tires ($120). Due to procrastination and a two week vacation, I didn't re-inspect it within the allotted time and had to get it redone. Inspection number two ($60) resulted in another failure for something as dumb as windshield wipe blades ($15). Finally, my car was properly inspected and then the title fees ($43), excise tax ($100), registration ($128), and other fees ($13.50) were paid. So, three years ago I paid $534.50 to bring my car into Maryland.

So now, I'd be looking at another inspection ($55) and hope that it will pass -- they always seem to find something stupid to fail it on. There will be the title fees ($43), excise tax ($32 now because my car 7+ years old), registration ($128), and other fees ($13.50). To continue to own my car, I will pay at least $271.50. And then, I will have the increased insurance rate -- I now pay less than $500 a year; before I was paying about $350 a month.

It is looking like my gem of a car is no longer worth keeping. I did have a $200 repair recently, but I felt that was a reasonable repair considering the age and milage of my car and how it never has any problems. Parts do eventually wear out and need changing.

The partner desperately needs a newer car and we've been holding off due to housing. Selling my car and hoping someone will pay $20 for his will give us additional funds to get a newer car, one that we can have faith in. Also, the job I'm currently crossing my fingers for is easily accessible through public transportation and we could have just one newer car for the two of us. We also currently have a third vehicle, a contractor van that isn't in top shape but is far too useful to let go and would allow us the use of a second car as needed.

I was toying with the idea of selling my car earlier this year and had decided that it just wasn't time to make that decision. But now as I look at the numbers for bringing my car back into Maryland, I just don't feel like throwing that money away -- for that is exactly what it is, money thrown away as it has no positive benefit, no mechanical improvement, for the car. We'll have to pay part of those fees for a newer car and we will be getting a newer car wether or not I keep my car.

Why not save on fees/taxes and simplify to living with one car (the van really isn't a day-to-day driving vehicle) and public transportation to work. I imagine it'll save us money in insurance and maintenance in the end.

[The other big issue with my car is the lack of a/c. On days like today, with a heat index of 104 degrees, it makes selling the car sound like the only reasonable thing to do. For the record, I bought it in Wisconsin where I didn't need a/c.]

Credit Cards are not Bad

2006-07-18T09:45:00.000-05:00

A post by Single Ma caught my attention.
First, Single Ma posts about why she likes credit cards and high limits. She recognizes that many people act as though credit cards are bad and describes how that isn't the case in her situation. And, honestly, it isn't the case for anyone's situation because it is the use of credit cards that either helps or hinders someone. I also find the convenience of credit cards incredibly useful and would use one for every purchase if I had one. Instead, I just use my bank card in the same manner. I hate to carry cash and the card helps me track my purchases and makes it easier to put them in the right category in my budget.

Now, when the partner and I first started getting serious, I made a very strong negative case against credit cards. I noticed that he'd often charge things when we went out, like dinner or entertainment. Now, the partner has extremely high credit card balances and I really jumped on him (in the nicest way possible while being (overly) critical) for it. I explained that he shouldn't be using credit at all while working so hard to pay down debt. I argued that if he didn't have the cash to buy it, he shouldn't buy it at all. I then continued to say that if credit were ever used, that is must never be for consumable things -- no meals, no entertainment -- because if there is not the cash for those things then we should just stay home and not spend anything. First of all, it was months later that I realized he'd taken my statements completely to heart and stopped using his credit cards -- I didn't expect that. Also, it has made a serious improvement of paying down debt and once debt is paid down, I'll have no issue with using credit cards again -- just not to the point to being 30,000 in debt.

So, credit cards offer (some of) us an incredibly useful convenience. Also, there is the benefit of credit offering the chance to buy a larger ticket item and pay it back in pre-planned steps. Of course, I find planning and saving for a larger purchase in advance is better their planning how to pay off a purchase -- but it is nice to have that option available. Also, there are times when something comes up that is easily solved with the use of credit. None of this means that racking up large amount of debt is appropriate, but that credit cards have their uses and are not bad in and of themselves.

Net Worth- June

2006-07-13T14:54:00.000-05:00

I don't like my network spreadsheet... it feels like it fails to actually capture the actual networth condition. And no, I'm not upset just because it went down this month -- it just doesn't work for me. But, there is no time to change it now.

Credit card debt did not get a big decrease because we needed extra cash for the closing that we thought was immanent. It is back on track this month for being paid down appropriately.

Our Wedding Budget - In Detail

2006-07-12T13:54:00.000-05:00

Wedding Summary: We wanted a nice, relaxed outdoor wedding that shared our style and preferences with our friends and family. We agreed, early on, that we would spend $2,000 on a wedding for 75 people. We invited more than a 100 and we got a little more than 75 in person. We did everything ourselves -- the invites, the decorations, the dress, the food (oh my), the shelters, etc.

Wedding Location: I sent "cold-call" letters to several farms in the area to see if they would be willing to host a wedding on their property. All we wanted was a plot of grass and a nice setting, nothing else was required of the land owners. Two people responded and we went with the second couple because they were so sweet and the place was amazing. The wedding was held at a fruit orchard, on the top of a hill, at the highest point in the county. It was beautiful. The owners did provide me a room to dress in their beautiful house and also mowed the grass in the field we used.

Wedding Materials: We borrowed three 20x20 shade structures from friends -- this saved us over $600 because we didn't have to rent a tent and have it delivered and setup. We borrowed 12 tables from friends. We rented 80 chairs. We rented two porta-johns -- one had a sink and was a total waste of money (it was my mom's urging that made me get it). We bought bowls and serving utensils from Costco. We also bought all the plates, napkins, handi wipes, etc. that were used.

Wedding Decorations: I made table cloths out of butcher paper that the daughter and I decorated with stamps and hand written quotes. We bought 12 glass one-liter carafes for the iced teas and I decorated them with handmade labels and rafita ribbon. We bought a small helium tank and tied balloons to the shelter tie down straps. For favors - we bought mason jelly jars (canning jars) and glued a ribbon around the top and added a star made from polymer clay.

Wedding toys: We bought kits, frisbees, and other games for the kids to play with. Most went unused. We brought some of our board games and card games - Apples to Apples was very popular. The partner brought his juggling gear and it was used extensively by many people.

Food: This cost a lot more than I expected but it was yummy. Everything was made of fresh produce, except the chicken and pasta, and that meant a lot of veggies. I bought boxes of produce! Almost everything was from local farms and the Dutch farmers market. It was great to see all of the fruit and veggies around the house as we were cooking. We used Costco for the purchase of chicken and just a few other things. We also bought several pies from the local farmers market. However, I must say that if you are going to make all the food for your wedding - you need more than just one or two helpers. It was madness getting it all done -- but we pulled it off anyways and got great compliments on it.

Clothing: I made my dress as a work of art. Pieces of fabric were arranged to give a nature scene on the dress and it needed lots of small cuts of fabric. The partner bought his outfit at Mens Warehouse and it looked great. The daughter's dress was made by my mother and looked beautiful.

Invitations; We made several test invitations and I really went overboard on buying stuff for them. This was the first thing we spent money on and was purchased before establishing a budget. We decided to exclude the invitations from the budget calculations, though I will include them now for a total amount and eliminate them upon final examination.

And now, for the money:

$300.00 - Location Rental
$200.00 - PortaJohn Rental
$176.00 - Chair Rental and Pick Up

$275.00 - Officiant Gratuity
$55.00 - Marriage License

$221.37 - Groom's Attire
$234.20 - Bride's Attire*

$287.00 - Invitations
$623.22 - Food
$150.00 - Supplies

$39.61 - Decorations
$63.55 - Favors
$73.00 - Pampering
$176.42 - Last Minute Purchases - supplies mostly
-$120.00 - unused items returned

$2754.37 TOTAL

This total exceeds the $2000 budget considerably, until we recognize that we did agree to exclude the invitations and dress from this total.

So, in our agreed upon budget - we spent $2233.17 just 233.17 over budget. Not bad for as beautiful of a wedding as it was.

Now, though I don't know how "appropriate" it is to mention, we received many gifts of money, and they totaled more than our in-budget spending. I was floored, and a little embarrassed, by the amount given in gifts because I've never given money gifts like we have received. So, I suppose that in all, the wedding broke even, even though all of the financial gifts will be going right to savings or toward the house.

If anyone plans to do their own wedding, like we did, I've got all sorts of advice. Especially considering the food. I'm happy to share them with anyone willing to listen. And, as a conclusion, I'm so happy that it is all over and that it was a beautiful day.

The entire wedding was paid for in cash -- nothing purchased on credit -- we refuse to start our lives together going further into debt.

Budget Recap - June

2006-07-12T13:20:00.000-05:00

June has been an interesting month. My budget numbers are not quite adding up properly because there are expenditures for the wedding without inclusions from the wedding budget allowance. So, it looks like I crossed the line by $500, but that is not the case.

Instead, for the first time in many months, I actually came in under budget by $57.72. I'm very excited about this. So, for the overview:

Dining Out - $194.04: Oh yes, my greatest challenge. However, I'm proud to show that I spent $49.58 less than I did in May and that June, along with January ($193.20), was the lowest amount spent this year on dining out.

Transportation - $125.08: Gas price increases have given me a steady increase in transportation costs. It has been a slow but steady upward rise these past months. With all the running around for the house search, returning unused wedding supplies, and job interviews -- I imagine the cost will continue to go up.

Child Support - $388.50: This is most unexpected. I've learned over the past seven years or so to never expect child support. Every time I start to rely on it, it vanishes for months at a time. I've not included this income in my budget calculations since I don't expect to get it. I plan to start putting all of it into the daughter's saving account to allow for investment and college savings for her later in life.

Wedding: I will full address the entire wedding budget in the next post. The figure here is just what I spent this month and is not reflective of the overall expenditures that I will detail next.

Overall, this was a very good month. I'm amazed that I managed to stay in line with all the craziness that was going on. Now, to continue that trend into this month. Although we're married, we've still not mixed finances. Last night, the partner was paying bills and asked me how much he should send to one of the credit cards. I had to say that I couldn't answer that since I know nothing about his budget. Hopefully that will be remedied soon, but right now we've got so much other stuff to deal with and it works out fine for the moment.

dining out -- why it has gotten out of control

2006-07-06T10:42:00.000-05:00

I was reading Mapgirl's post, Update to the Save-O-Meter, and started to comment on the dining out challenge she faces. My comment kept growing and growing so I decided to pull it over here instead.

I also struggle with dining out and it is the biggest budget buster that I have. I've posted before about my concern about that budget line item and need to expand on how and why it has gotten out of control.

When I was a full-time student in Wisconsin, living on school money and a part-part-time job, we were really strapped for a food budget. Going to the grocery store always cost too much, or so it felt. Spending $100+ at one time always felt like too much. Instead, we ate out all the time. Finally, I decided it had to stop so I decided to only eat at sit-down restaurants and felt that would curb the spending. It did, sit-down meals killed my cash on hand and made it easier to rationalize a meal at home for veggies and pasta.

During this time, I also developed a strong aversion to eating anything processed and made everything from scratch. This can drive your food bill up if done without planning and can make it easier to justify eating out when you feel you don't have time to make something. However, with planning and having the right things on hand, it is by far cheaper than eating out and healthier too.

So, I was still eating out and eventually dining at sit-down places was the norm and my dining out frequency increased. Now, it is expected that we will go out to eat somewhere "fancy" and the bill will be a minimum of $25 but more often closer to $40. Then, a year ago, I decided to stop eating at chain restaurants and mostly frequent only independent establishments. Suddenly, the budget increased because we don't have much to choose from where we live and their prices were often a little higher than the chains. And, then the daughter stopped eating from the children's menu and started being adventurous -- my dining budget doubled instantly.

With the partner, he got me in the habit of making a nice meal when we go out. I used to do what I could to make it as cheap as possible, but he argues that if you're going to go out you might as well make it worth it. So, I'm a little more inclined to order soda or appetizers than before. So now, our combined monthly dining expenditures can easily top $500 a month --- ouch! Our grocery bill, less than $300. Obviously there is a problem.

I've been running on excuses for the past six months because life has been busy -- school, graduating, wedding, etc. However, it is time to just stop making excuses, start being responsible and get back in the kitchen. Luckily, I'm a very frugal shopper and cook. I make it a point to make meals with the price per person in mind and am a wonderful cook. I also enjoy cooking when I don't make excuses and love sitting down to a meal that I enjoy.

I'm very committed to the idea of having a sit down meal every day, which I hear most families don't do these days, and that does put a crimp in the time available in the evening for other things. Once prep, cooking, eating, talking, and clean up is done, the majority of the evening has passed. The partner really wants that time to work on other things, but I haven't found a way to resolve it. We do try to have leftover a couple times a week to allow for a quick bite, but I still need to work out a way to balance our need for food and time. And, it is time to really get back in the kitchen.

3 people - 1 bedroom - 1000 square feet

2006-07-05T17:53:00.000-05:00

I'm racking my brain to solve our current housing dilemma -- not enough income/savings to buy a house and the rental market is too high to be able to save for a house. Another idea I'm tossing around may work or may destroy us -- stay in the partner's one-bedroom apartment for a year.

The daughter and I currently live in the house upstairs and would have to give up our two rooms and compact into a 1000 square foot basement apartment with the partner. It would be a big adjustment to the space that we share now, but not something that hasn't happened for the daughter and I before. The daughter and I shared one bedroom apartment in Wisconsin and, prior to this place, shared a single bedroom in a single family house where we had to share the rest of the house with 8 other people -- we didn't use the public areas of the house.

This is a big basement apartment but it is currently seriously cramped with the partners things. If we clear everything out, which would be the plan if we were to move somewhere else, then maybe we could configure the space so that it would work for the three of us.

The benefits:
- the daughter would not have to move again -- we have moved 9 times in her 10 years and would be moving into temporary housing if we move now just to move again in a year. We've been here for 20 months -- the longest she has ever lived in one place.
- rent is affordable -- $600 a month is the current rent and keeps us well within the partner's ability to provide for everything while my income can go straight to saving for a house.
- workshop space -- the partner will retain the use of the workshop space until we can move to a house where he can move his thousands of pounds of metal.
- good commute - the partner is 7 miles from work.
- good community - we don't have to worry about the neighborhood, get to remain in a beautiful area for another year where the daughter has many, many friends just down the road.
- good schools - our cheap rental options will put the daughter in lower quality school for a year.
- month to month rental - there is no formal lease agreement or anything and we wouldn't have to lock in for a year or anything

The drawbacks:
- very cramped living spaces for three people -- with two it was alright cause I didn't need privacy, but with three of us on top of each other, when will we have time for the intimate things (shock, newlyweds who'd like to ensure they'll still have a sex life).
- continued living near housemates that are driving me nuts -- but I won't be living with them anymore
- big change in living conditions when the daughter won't have free reign of the house anymore.
- not many places to go to get out of the house -- I worry I'll get really cramped and need to "get out" for a while, but there is not a lot of places to get out to
- serious reduction of hobbies and living space activities if we are really cramped -- how to still give us downtime when we are all on top of each other?
- not sure the housemates would go for it.

This is a lot to think about and I'm feeling a bit pressed on alternative options. What do yall think? I've really enjoyed and appreciated the advice and comments I've been getting on here.

UPDATE: The housemates want us to move out and also move everything out of the workshop as well. So much for this plan.

wedding costs check in

2006-06-26T14:30:00.000-05:00

I've added up everything I've spent on the wedding so far -- $952.47. We agreed to spend $2,000, but I am pretty sure that we excluded the price of invitations and maybe even my dress.

The invitations have cost -- $250.
This included a lot of prototyping and some generous purchases because of my fascination with crafting supplies. I know that we are excluding this from the wedding budget.

The dress has cost -- $234.20
I'm pretty surprised about this being so high. It really is all the little things adding up. I've bought a lot of fabric that I won't need due to the style of my dress. This also doesn't include the money my mom spent on the dress. Due to the many uses I'll have for the left over fabrics, this is also excluded from the wedding budget total. It is really just an elaborate costume that I've wanted to make for years -- the wedding was just a good excuse to finally make it.

The two other big ticket items are the rental of chairs ($176) and the food ($170). I'm happy with the rental fee because we were originally looking at renting a tent which would have placed our rental fee closer to $1000. Being able to borrow shelters from friends is saving us a lot. The food is obviously going to be a high line item than what is listed right now. However, I had to pull out cash today to get the marriage license (despite being told on the phone that they take credit) and will apply the leftover cash to the food purchase since most farmers markets don't take credit.

So, eliminating the dress and invitations from the budget, I'm at $468.27. Not bad.

Other costs that have been paid by the partner:
$300 site rental
$160 portajon rental -- ouch!
$275 officiant gratuity -- wow!
$200 groom's attire

This was very informative to help me keep and eye on the ball. It looks like we just might meet the $2,000 limit pretty close (excluding invitations and dress) and hopefully stay within a few hundred dollars of it. I will be spending most of the remaining funds from the budget, since the partner has mostly be in charge of pre-established purchases and I'm actually hitting up the stores for the things we need. Having $500 of wiggle room, plus the $170 I've not actually spent on food yet, and it looks like we're good to go. Yay!

bumpy housing adventure

2006-06-25T11:22:00.000-05:00

So, our house buying adventure isn't going smoothly any more. I find it rather amusing since earlier this week I'd told the partner that I don't want the house -- more on that in a bit. However, they sellers have been majorly dragging feet on the amended contract that includes the details that we're going to do repairs prior to purchase so we can get the house. We've been pestering them and getting no where. Yesterday, our agent finally gets theirs and is told that they have had interest from another buyer. The house has been on the market as available this whole time -- argh! So basically, our agent is pretty certain that they are just stringing us along hoping something better will show up. However, closing is only two weeks away since the extended closing date is in the amended contract that hasn't been signed and there is no way we can meet it since no repairs have been done. This really pisses me off, but--

Like I said, earlier this week I really wanted to walk away from the house. As I think more and more about all the repairs needed now and learn more and more about repairs and restoration and renovation of old houses, I'm certain that this is going to be a much bigger headache that I originally planned. Yes -- now is certainly a bit late to think this, but that is irrelevant. I would not walk out on our contract just because I changed my mind -- that is wrong. But, if we were given an out, like the one that has presented itself, I would want to take it.

No, I wouldn't hate it if we got the house -- I do like the house a lot and have gotten very committed to the house. But, when I consider the negative impact it will have on our budget, the fact that we'll have almost no equity in the house for several years due to the creative mortgaging needed to get it (35-year fixed rate, first 5 years interest), and the expenses bound to show up once we are living in the house and see things that must be fixed and how one things always leads to another in old houses.

Also, this is not a dream house for us. In fact, it is just a place holder for needing to move again in a few years. I've had lots of dreams of fixing the place up to how we would like it -- but what is the point when it still won't be what we need? Plus, we won't really have the money to fix it up any more than to just be able to live in it. Then, when it comes time to sell it, it'll still have all the limitations it does now and probably be just as hard for us to sell as it has been for the current owners.

So, I'm trying to sell the partner on just renting for another year somewhere -- finding an affordable place in this area is almost impossible -- would give us enough time to get all our ducks in a row to buy a house that we really want. I know that I can build a savings plan and a budget that will get us out of all credit card debt and build up house savings within 1.5 years. I don't think the partner believes this, but since I saw myself save over $5,000 in less than six months I know that I can make it happen. Plus, in a year or so, I'll have a job too and that will add a lot of help in being able to buy something we want to live in for a while.

So, I'm annoyed about the house things but I am hoping that the people bow out and we can either start looking at other houses -- a possibility if the price/space is right -- or get on with finding a place to rent for a while.

will it save us money or cost us more?

2006-06-23T10:31:00.000-05:00

When we move, I'll be back in the position of not owning a television. I've spent years and years without a tv and have usually just ended up living with someone who had one. Happily, the partner does not own one either and we'll move away from housemates who own several.

He suggested that maybe we just get one from a friend who is offering one for free, but I said no. Instead, I want to buy a flat panel television (I'm a bit obsessed with flat panel everything -- monitors too) and he balked at the idea. "But those are too expensive." Exactly, this is all about waiting until we feel it is worth that much money to get a television. I personally feel no real rush to head out and buy a new tv, not when the house will need a lot of other more essential things.

However, will this actually cost us more in the long run -- owning no television at all?

-- I have a netflix account that I love for the independent films and things I'd never rent from a store -- we'll lose that cost but also that form of entertainment. Instead of waiting for a movie on netflix, will we head to the theaters, spend about $21 on tickets and $10-15 on popcorn and soda each time? That cancels out the savings from dropping netflix.

-- Will we then increase our hobbies since we'll not be wasting any time watching the tele? Probably not, we only watch an occasional movie before bed as it is. However, maybe it will even save us when I stop watching the crafting shows and start up new projects because of them.

-- Will we spend more on magazine subscriptions and books? I get all my books from the library but haven't taken advantage of their magazines. I like having something light and simple to read for a few minutes. Most of our magazine/book interests are not readily available at libraries though.

-- Will we lost out on easy entertainment with friends by inviting them over for snacks and a movie? This is not something we do now but know we would do once we had our own place. Instead of snacks and movie, we'd prolly switch to a meal and wine which may add up to much more. But then again, I love cooking and wine and maybe that is just the cost of enjoying life.

Overall, it looks like not owning a television isn't going to affect our budget too much. It may cause us to go to the picture show but that is something that we occasionally do now for entertainment when we want to get out of the house and away from the housemates. Spending the money on a flat panel doesn't sounds like a good way to spend money, but maybe it would allow us to watch films more often in a more comfortable positions (versus lying on the bed watching the tiny screen as we do now with a borrowed tv). I probably won't drop my netflix because I really like that form of entertainment, and I've lived happily with nextflix and laptop and no television before.

trimming costs on wedding rings

2006-06-22T08:21:00.000-05:00

My honey is a metal worker, loves to make parts and bits from raw chunks of metal. Mostly it works out to new tool bits or something that the store either doesn't have or he just doesn't want to go and buy. We agreed pretty early that he'd make the wedding rings on the lathe. Last night he made a test ring and it turned out great.

To buy materials for the rings, he bought three nutes. Two were of a pretty high density metal and one was made of titanium. The plan was to have titanium wedding rings. We were talking about the precision needed to get two rings out of one nut and the risk of messing it up and not being able to do it. I laughed and asked why he didn't just buy two titanium bolts. The response? "This nut cost fourteen dollar." I love it. I responded that we could be buying premade rings and be paying $1400 or something ridiculous. I think with the other two nuts, the total cost for all three was about $34 or so. And I do understand that when you're just buying a few nuts, that does sound ridiculous. However, when you're making wedding rings, it feels a bit silly to worry about buying two high priced nuts.

Oh yeah, for clarity sake, I love the rings and the fact that we'll have two wedding rings for $14 ($34 when you include the test materials). This is not so much about frugality, we'd spend more if either of us had an interest in "traditional" rings, but about getting what we want and seeing how it doesn't have to cost a lot.

checking and savings

2006-06-21T15:11:00.000-05:00

So, my partner and I do not currently have combined finances. In two weeks we'll be married and it will be time to combine money -- how strange it feels that we're waiting until that point in time to do this. Anyways, what we need to do is get a joint checking and joint savings account.

Now, I've not bothered looking for a checking account in quite a while. We do both have accounts at the same credit union and I'm used to their online access. So, maybe we'll go with them -- but I'm not feeling it just yet. He has an account at another bank that seems like a lot of fees and effort and so I think we'll skip out on them. Oh sigh, I don't even know what to look for in a bank these days.

My spending habits -- everything is spent on the debt/credit card. I write about 6 checks a year. I prefer to complete deposits in person. I hit the ATM about 4 times a year, I never take out cash. I do a lot of online banking and must have access to my accounts online. I don't keep large balances in my checking account.

His spending habits -- everything is spent through cash. He writes several checks a month, no online banking. He hits the ATM frequently the replenish the cash in his wallet. He has never had or wanted online banking. He keeps some in his checking account, though not a great amount.

What I want for checking -- no fees. I hate fees! No fees for ATM withdrawals. No fees for electronic access or online banking. No fees for maintenance. I want a free box of checks a year, what I get with my credit union now, not necessary though. Easy bank access and no fees for talking to a person (I couldn't believe some places charge for that). Easy access to ATMS, I refuse to pay ATM fees so I will only use my bank's ATM to prevent all fees.

For savings -- we'll prolly stick with the online savings for the most part since their rates are the highest right now. Plus, we'll both have individual savings, though I think I'm the only one with savings right now, in case of emergencies. Maybe we'll get an HSBC account since they keep kicking up their rates, but I'm keeping my ING accounts because I just like them.

wedding mind control - spend, spend, spend

2006-06-20T08:49:00.000-05:00

This "simple" wedding seems to be trying to take on a life of it's own -- without my permission. Our invitations listed an invitation for to a "summer picnic celebration" because that was the primary goal with a wedding secondary. As we're reaching the final two weeks of preparations -- and honestly some of the only preparations -- the wedding seems to be attempting to take center stage.

The reason I didn't want a wedding focused day is because I'm not fond of all the traditional ceremonial and custom activities that happen at weddings. I didn't want this to be one of those days. Yet, suddenly I was trying to come up with wedding decorations, wedding favors (gack -- I really dislike useless trinkets that just bring clutter to people's lives), and fancy flower arrangements. What happened to my summer picnic?

So, I've kicked myself and am moving back to the basics. Of course, this is after spending a bit on wedding decoration supplies. Honestly, though, many of the decoration supplies I purchased were long desired items for later crafting that I justified irresponsibly. Oh well, spilt milk. So, back to basics:

For the ceremony, we need a Joe Shmoe, something to wear (maybe I'll actually finish my dress), rings (if chris finishes making them), and a few words to say.

For the picnic, we need basic food stuffs, somewhere for people to sit, tables to set food and plates on, and some casual entertainment for the kids.

What we don't need: petty favors just because some people will expect them, elaborate table decorations (the orchard setting should be enough), food to excess, excess games and activities beyond what we already own, extensive shelter decorations (maybe just enough to add some visual softness).

I'm going to get better at making sure we bring what we already own and don't spend money on extras just because we're worried that we're not doing enough for people. I want to constantly remind myself that this is an outdoor picnic, not some ridiculous gala affair and that it is my gift to make the food and the space inviting but not over the top.

The food palate is also getting a slight overhaul. I had some things in mind that sounded simple and affordable at the time, but it looks like I'll need to switch to something 1. easier for us to make and 2. a little more cost effective. Our $2,000 cap on the wedding budget is getting a little too close for comfort and I want to be sure that I don't try to outdo myself in terms of money, stress, effort, and time.

Darn weddings and their tendency to make people go over board just for a single day of their life. Yes, it is a very special day but what I want is time with friends and family, not time and money spent on things that are superficial and useless beyond that day.

frequent buyer miles & mixing money and family

2006-06-09T15:18:00.000-05:00

In the past six months I have purchased 5 round-trip plane tickets. Sadly, despite these purchases, I've gone no where in the past six months. These tickets have been for the daughter, my mother, and now my sister. I'm used to buying tickets for my mom because she doesn't have a credit/debit card and she sends me the money (usually right way, sometimes a couple weeks later). Obviously, I don't mind buying tickets for the daughter, that's a mother's job -- right? However, I've entered into new territory - I bought my sister a ticket so she could come to the wedding.

My sister struggles with money and managing money and I often have little sympathy for her. She waited until the last minute to get a ticket and was shocked at the high price. When she first asked if I could buy it and let her pay me back, I said no. I knew that the risk of not getting paid was too high and I wasn't going to get sucked into that situation. Plus, I don't use credit cards and all the money I spend comes directly from cash reserves, and with the wedding and the house, there isn't much excess lying around.

However, the partner talked to me and got me to admit that I would really love to have her come out. He said he'd be willing to help buy the ticket if we could work something out. So, we found her a cheaper flight ($350 eeek -- I paid $207 for my mom's ticket last month) and I bought the ticket. But, with these conditions:

1. If she doesn't pay, I will simply declare that it is a gift and not worry about it. I had to accept the fact that I know I probably won't get paid for this and that it is more important to me to have her come out for the wedding than to worry about wether or not she paid me back.

2. She'll send me $100 right away. This will help me feel more comfortable that she will indeed get on the plane and come out if she has spent cash on the ticket. She'll then pay $100 from each paycheck until it is paid for.

Accepting that I just bought a ticket for her was the key point. I am now very excited that she will be coming and am not so concerned about the cash spent. Due to tax returns and such, it will not hurt me too much to lose the $300 on the ticket and so I can avoid worrying about that and just look forward to seeing her when she gets here.

However, I still feel that I should get some benefit out of all these plane tickets that I keep buying. Oh well!

is the job worth the commute?

2006-06-07T11:30:00.000-05:00

We're buying a house in a small town that is beyond "suburbia" and I'm in the process of finding a job. I've not had a lot of success finding anything that looks interesting and possible. I really don't want to drive very far for work and that is the biggest challenge because we're moving away from major employment areas. The partner will have a moderate commute to his job and isn't looking forward to it. However, we are looking forward to the benefits of the town we're moving into and the additional peace of mind it will give me as a haven away from the bustle of east coast living.

So, I just found a listing that is exactly what I've been saying I want to do since entering college. I mean, it is a perfect fit for my aspirations and I qualify for it and am very confident that I could get it. However, it is far away and the commute would be pretty intensive. Suddenly the partner's commute looks a lot more manageable when we talk about the possibility of me commuting to Washington, DC.

Now, I'm all for public transportation and would usually say that is the best method, but where we live is beyond the major in-routes to DC and there is nothing near the house that I could use. It leaves me with having to drive to Frederick or driving to Columbia, each about a 30 minute drive with little traffic, just to start the public transportation route. Now, to drive into DC would be almost 50 miles and, if during rush hour, would easily take 90 minutes or more and I might be under estimating it.

Now, maybe I can modify my hours and do very early hours -- like starting at 6:00am or so. Since the work I'd be doing is very individualized, that might be possible. However, I'm not sure if that will be possible. I worry that, if forced to travel during rush hour, that I may never be home. However, again, this is exactly what I've been looking for and thought that I'd never actually get to do. Also, I fear that the compensation will be lower than what I want. If I wasn't needing to commute, I probably wouldn't care, but if it is going to really hit the budget to get there every day -- it might add up.

Sigh, I'm not going to talk myself out of applying, but it is bringing up a lot of questions and concerns. If you found your dream job in term of principals (money has never been my motivating job factor) would you be willing to drive to get there and see you family a little less? I feel a little silly about the issue because I am sure that there are people who commute further for a job that isn't their dream job. However, traffic in the greater Washington, DC area is excruciating and I absolutely hate having to drive anywhere.

May Budget

2006-06-01T15:04:00.000-05:00

Dining Out: Argh! This is getting ridiculous. However, I realize that i totally dropped the ball on budgeting this month because I didn't enter any expenditures until today. Not a good way to see where money was going. My mom was in town and we were getting a lot done on different projects and I just kept spending without thinking about it -- including eating out. Now I'm really thinking about it.

Playa del Fuego: This was the cheapest PDF ever. Normally I end up buying all sorts of stuff but not this time. This time, I bought materials to make two logic puzzle game boards and everything I had on hand. It i s great being prepared for camping weekends and only needing to throw gear in the car and go.

Other: The house purchase and wedding purchases are picking up. I haven't figured out how to work those things into my budget correctly because I try to keep money for and from those categories separate. However, I just listed it under special deposits. Also, my income tax return showed up in the additional income slot and I haven't figured out what I'm going to do with that. I know I went over budget by several hundred dollars, even though that is not obvious on the form because of the special deposits made.

I'm still feeling very behind on several things right now but trying to get finances back on track!

decorating ideas for real small spaces

2006-05-30T10:44:00.000-05:00

We've not bought the house yet, but I'm already thinking of how to make the inside space work. I've always had an interest in interior decorating ideas but am having a hard time finding inspiration. I love seeing books on small spaces but all I've been able to find is books on "small spaces". These books claim to be about small houses, but it feels like I could fit several of the room from the house into one "small house" rooms. So, I'm hoping to stumble on some sites of book suggestions where people really do work with small rooms and make things work.

We've got (gonna to have, hopefully) tall ceilings and plaster walls. The rooms are small and have no closets. I don't know what we are going to do since the partner and I do not live together now and each of us have a double closet full of clothes that will have to be slimmed down to fit into a closet-less room.

Making this small space livable is going to be necessary if we get the house -- I should probably be more important to worry about getting the house first.

(I'm still finishing out my vacation and will be back to regular posting soon)

decreasing debt ratios

2006-05-24T12:43:00.000-05:00

I wanted to take a moment to commend the partner on his recent accomplishment of having all credit cards at less than 50% utilization. This has been a goal of his these past few months and it has finally happened. Seeing as how most cards were above 50% and at least one was above 70%, this has been a big improvement in the past few months.

The house saga is continuing, but I don't have enough time to get into it right now. I'll just say that I'm feeling a little shaky about everything right now.

disruption of service

2006-05-21T08:18:00.000-05:00

This is a busy week/weekend. I graduating this evening and my mom has been in town since Wednesday to help get wedding stuff moving. She'll be heading home this week and I can pick back up on my regularly scheduled programming. Thank you for your patience.

Our Home Buying Adventure, Part 3

2006-05-16T09:34:00.000-05:00

The home inspection was completed and I've just read over the report -- bummer. He didn't write up the report on the spot to deliver to us, which I was expecting and even our realtor expected -- anyone else ever have that?

But the main issue is that there is more on the list than what he mentioned to us during the inspection. This really sucks because we'd already wrapped our minds around the issues he mentioned and figured we'd be able to get them taken care of. But now, I'm not so sure. Written up on paper sure makes it look a million times worse than it is.

There are tons of comments about cracking plaster ceilings and how they must be repaired, but they really looked more like minor blemishes on the ceiling. He is listing that the ceilings need repaired for every room, which will be impossible while tenants are in the house and may be out of our budget.

Now, this inspection is a sore point for me because, due our loan product, any needed repairs must be completed before they'll approve it. The seller refuses to do any repairs and we said we'd do minor ones if it meant that we'd get the house. Yes, we want to know about the other issues wrong with the house because we'll fix them once we move in. We just wanted to have the bare minimum repairs required in order to get into the house. I'm not sure how this will affect things and our ability to get the house.

I'm so pressed for time right now, it being finals week and all, that I am trying to avoid thinking about it.

Debt and Investing

2006-05-12T10:14:00.000-05:00

I've been reading a book by The Motley Fool and one point is made time and again, we should not be investing if we're carrying debt (mainly credit card debt). Now, I can understand this logic but it is so hard for me to accept that we'll have to wait another 6 months to start investing if we follow this logic. I'm not suggesting that we put all our cash into stock investments while paying minimums on the credit cards, but I would like to be tackling both objectives because of the long term benefits I see for investing.

Now, maybe we should just spend the next few month kicking some serious debt behind -- more than what is already being accomplished. Maybe I'll just pick a few stocks and play the hypothetical stock market game of tracking how they do -- however, their success or failure in the short-term is of little interest because it is the long term value that I am interested in. The partner currently pays about $1,000 above the min. payment required on credit cards and we're making some honest progress. I would like to see that number wiped out along with my student loans, but I'm not sure I'm comfortable with starting retirement/investment planning until they (credit cards, student loans are not high on my list right now) are.

Warning: Tangent

In other news, due to housing progress I had to pull almost everything out of my savings account for paying closing costs and down payment. While I knew this was going to happen, I'm all out of sorts realizing that the money I've been saving for the last few months is now gone. And, to make it worse, I had to write a gift money check to the partner and actually put it in his account (ack!).

His credit qualifies us for a good mortgage and so he is getting the financing on his own (my credit is shot right now) and so he needs funds to make it happen. It really freaks me out to (1) taken it out of savings, and (2) have given over and beyond my control. So, I think we need to get cracking on the joint finances thing because I'm going to be a wreck at the idea that my money is no long in my control. For the record, we're not married yet and I still feel like it is my money.

I've suggested that we walk over to the courthouse and just file the legal paperwork stating we're married and I'll feel much better -- which makes me think I've got some unexpected issues cropping up about this combination of love and money. I think we'll talk about it this weekend and go ahead and merge finances since he now has a large chunk of mine -- the "we" thing isn't an issue, I just don't feel that we've got join custody of our finances and, because of that, letting go of some of my cash feels very scary all of a sudden (plus the "oh my god, we're signing on for a huge debt" freaking out that happens with buying a house).

$75 Saved by Contesting Citation

2006-05-08T21:09:00.000-05:00

I park on campus 3 days a week and display the $185 annual parking pass required to park in a (specified) numbered lot. I've been doing this for almost a year with no issues. However, when my car needed towed after throwing a tensioner last month, the partner reminded me to pull my parking permit off the mirror so that I could borrow his car when I needed to go to class. It turned out that the repairs were done that day and no borrowing of car was needed.

This also meant that the parking permit was now tucked into my backpack and forgotten. How often, since purchasing my parking permit, have I thought about or even verified the presence of my parking permit? Not once. So, when I was back on campus a day or two later, I didn't think once about the permit that was not hanging from my mirror and went off to class. At the end of the day a bright yellow citation envelope caught my eye and suddenly I had a clear vision of my hand removing the permit from the mirror and tucking it into my backpack. Sure enough, I looked in the backpack and it was shining from beyond the mesh pocket in front ready and waiting to be placed in its rightful and lawful position.

The citation - $75 - ouch! I'd just spent $57 on a tow and $175 on repairs, I couldn't imagine paying another $75 for my car for that one repair incident. So, I took action and contested the citation and requested a review. I included a letter describing the situation and sent in copies of my valid parking permit, my towing bill, and my repair bill. Within 2 days of submission, I had a positive response and I was no longer going to be another $75 short transportation costs.

This ties in with the post by Frugal Upstate about Losing Money By Not Doing Anything. I would have lost $75 if I'd simply done nothing. Also, if I'd listened to friends, I would have lost $75. Most just argued that there was no way that I was going get out of the fine and I should just pay it and get over it.

Our Home Buying Adventure, Part 2

2006-05-08T13:09:00.000-05:00

progress update:

We offered 168.5K on the house, in writing, with a 5K ernest money check. Within a few hours, we had a response for 175K firm and no repairs. We already figured on the no repairs thing and haven't seen much that would need repairs, just updates needed when we can find the money.

However, there is some concern about the financing we're planning to use. It is a Maryland program that will give us the purchasing power we need to get up to 175K and an ideal interest rate (6% fixed with no points) and we can use a down payment/closing cost program to help offset the cash needed. The problem is that this loan program is known to be very picky about the properties and requires repairs. It looks like we may agree to do an amount of repairs within reason -- I think we have to put a dollar amount on the within reason parameter but I can't say what that should be.

So, tonight (hopefully) we meet with the loan officer to get the underwriting started. The partner is getting swamped with work and starting to feel very stressed with everything pulling at him from all directions. I'm trying to be supportive but I feel like all of my life is pulling me apart right now.

Our Home Buying Adventure, Part 1

2006-05-05T20:06:00.000-05:00

I mentioned finding a house we're interested in the other day. Well, we decided to go forward on this house but there have been some bumps in the road. So, I'll start from the beginning:

The house has been on the market for more almost 3 months, originally listing at 195K. I saw the house when it went on the market, got very interested, did crime survey of the neighborhood and dropped it from consideration. It lingered around long enough to be reconsidered (and I reconsidered my research results accuracy too).

As we were ready to see it, it dropped from 195K to 185K, a good sign since it was already a bit beyond out budget at 195K. We saw it, talked about it, and I did a ton of research. My research on the property, the issues with it, the local area, and the comparable properties state that the house is worth about 150K-165K and the seller is obviously hoping to cash in on the sellers market the fell out from under him. An aside, I must say that when researching an area there is an endless amount of information out there and I feel like I know more about this town and neighborhood than I knew about my hometown growing up.

So, we prepared to make a written offer for 158K but our agent didn't think it'd fly and instead called the sellers agent for a verbal offer (argh -- that wasn't what I wanted). We get back an offer of 179K. Now, this is still about 15K beyond what I feel the property is worth. But, what I want to do now is put in the formal written offer, probably for something along the lines of 165K, and hope that he'll have grown tired of waiting for a better buyer to come along and will take the hint that it isn't worth what he is asking and also see that he has ready and willing buyers on hand.

Of course, I doubt this will get me where I want to be. I really want the property and am trying to not let that rule my emotions too much. It actually has a lot of investment potential -- yes, I am actually rationalizing that this is an investment property that we'll just take advantage of living in until we can actually buy a "real" house. I've got good reason to see it this way based on the community/neighborhood changes that are taking place and the commercial/retail potential that it will have when we move out (and after we've updated it).

We meet with our agent on Sunday to send in the formal written offer -- it has taken a week to make this appointment (due to conflicting schedules) and feels long over due -- but at least it'll be another week on the market if no one else has come along - I hope no one does. Oh yeah, it is not owner occupied and I've yet to get the reason he is selling it. However, I reason to believe that this is simply an attempt to unload to make a profit and that is yet another strike against us.

I really want to send a cover letter with the offer that details why it is not worth the 195K, 185K, 179K he has priced it at -- most importantly the comparable properties that sold for less and the fact that because it has a gravity heating system it is not going to be priced as high as houses with improved heating systems or even baseboard heat (which would be an improvement in this case). Can you send in cover letters like that? Sigh, I want the house but I don't want to overpay, nor can we overpay since our limit is still under his last price.

I guess our prospects are pretty slim for getting the deal, but I have to try because we've got no other options at the moment. Homes in our range just don't tend to show up on the market expect once every month or so. But damn it, I want the seller to realize he is way too late for the price he wants and needs to realize that it just ain't worth more than 165K (if it is even worth that much!), because I want the house -- I've already mentally moved in, sigh, foolish me.

Book Review: You can Do the Math

2006-05-05T19:37:00.000-05:00

This is a book that every personal finance focused individual should read and understand. It is not an investment book, per se, but instead a conceptual book that explains the math behind all of the major investments and major purchases we face over a lifetime. "You Can Do the Math: Overcome Your Math Phobia and Make Better Financial Decisions", by math professor Ron Lipsman, really illustrates in detail how interest, mortgage payments, gambling risks, inflation, and taxation affect the financial decisions we make and explains the math related to each of those areas.

I know plenty of people highly interested in personal finance who are also silently leery of math and live in this off-center balance of investment/financial application and inability to truly conceptualize the mathematical concepts involved. This book brings the practical and informational realms together in a very easy to understand and follow method.

You can get through the book without ever doing any of the math and without touching the mathematical formulas that give your expected compounded interests or monthly car lease payments. However, I find it far more useful to actually practice the problem because then you can really see why it works and how each element (interest rate, initial investment, continued payments, taxation, inflation, time, etc.) plays a part in the puzzle.

I feel most personal finance focused individuals will get a great deal from the many comparison charts and situations that show how small manipulation of individual factors in a single investment can produce dramatically different results and, therefore, they will increase the overall productivity of their investment and financial choices with this information.

Topics Covered: basic savings, basic investing, taxes, inflation, real value of your salary, loans, comparing renting and owning a car or house, many types of insurance, credit cards, gambling, stocks, retirement.

Again, this book isn't about investment or financial suggestions, it is about the math formulas and calculations involved in these transactions. Each of the topics presented are described in detail in how math fully illustrates the actual situation.

Finally, the book is not as dry or dull as might be expected -- in fact, it was easy to get through it in a few sittings and amusing enough to keep me interested. Dry information may be helpful for some, but I'd never have gotten anything out of it if it was nothing but formulas and boring explanations. Lipsman did a wonderful job making this extremely useful information accessible.

Net Worth - May

2006-05-05T10:16:00.000-05:00

Here is the new net worth. There have been some improvements in the reduction of CC debt -- though more minimal than I'd like and influx of cash in hand and accounts. The partner had a sale to liquidate some machines and made a couple thousand in an afternoon. There are more machines that need sold and hopefully we'll have some more cash on hand for the impending closing costs.

One thing I noticed is that I've left off the cash row in assets. This is because I don't ever have cash but I forgot that the partner does. So, cash reserves have gone up about $1,500 because we're not putting it into the bank due to impending home purchase. Instead, it is functioning as an at home atm -- when money comes out of the envelope, money is transferred from checking to savings.

May's Money Goals

2006-05-04T11:08:00.000-05:00

Even though my April Money Goals did not get met fully, I'm not giving up. However, I'm going to take a slightly different approach this time.

Goal #1: Food - I will make/eat at least 31 meals at home.

My previous goal to not cross a certain dollar amount dining out was too much of a stick than a carrot. Yes, I was going to reward myself if I made it, but it didn't solve the problem. So, instead I will aim to eat 31 meals at home that can consist of basic meals like sandwiches, leftovers, or something I've made special. I will count breakfast, lunch, and dinner in calculating the meals at home. By counting more meals than just dinner, I hope to be able to reach what feels like a high number at the moment -- but one meal a day at home when I should be eating 3 a day should NOT be difficult..

Current progress: 3 meals, 28 to go

Goal #2: Call to reduce the partner credit card intereest rates

I've done this before and there was one card that refused and one card I did not call. The other two cards that I called easily reduced their interests rates with little negotiation. I want to be sure and get fixed rates this time since I didn't clarify that variable rates aren't acceptable last time. Also, will hope for a credit card payment holiday. This just means that the payment will be $15 versus the full amount which helps us in applying for the mortgage since it lowers what they see as a monthly payment -- we still pay the normal amount regardless what the amount due is.

Goal #3: Get the partner to turn on online banking for one of his accounts.

This may take some effort but I hope that it will be progress.

Goal #4: Call student loans and verify upcoming payment amounts and due dates since I'm exiting school. I also want to see if I can get the last loan consolidated into my consolidated loan. One loan payment is so much easier for me to deal with. Otherwise, I'll work pretty hard to pay off the smaller loan first (plus I think the interest rate is higher on it).

Budget Recap - April

2006-05-04T09:59:00.000-05:00

Dining Out: I did better than Feb, but it is still too high. Sigh. This is really a struggle right now. However, last night I set out some meat to thaw and cleaned out the upstairs fridge in order to cook this week/weekend. I've not been upstairs because it was a mess since I stopped cleaning -- now the the new cleaning people have really made some major improvements in the kitchen and I can stand to be in it. Also, cooking in the basement apartment is unacceptable because it heats the place up and makes it unbearable.

Savings: The amount listed will be my last deposit for a while. I'm not getting paid to clean anymore and that was what funded my savings account. I'm not going to worry too much about it right now since I'm hoping to hear back from a new job later this week or next.

Transportation: My biggest problem this month, other than over spending on dining out, is the unexpected repairs on the car. Also, connected to that incident was a citation for failure to display parking permit on campus because I took it out of my car when it was being towed and forgot to put it back on -- I've sent in a review letter and hopefully will not be spending another $75 for that single incident.

Cash: the cash column is higher than usual because I was without a bank card for a week. In reality, I probably spent more money this month but used cash reserves from the partner versus my account.

Propspect on the Housing Front

2006-04-29T15:13:00.000-05:00

We've found a house that we might be able to afford and might be able to live with -- is that how it is supposed to go? I mean, don't get me wrong, I'm all for finding a place to live but I'd think my response would be something more along the lines of "We've found our dream home!" However, we're looking at a purchase power far below the average selling power of houses where we want to live. Heck, we're looking pretty shabby compared to places that we don't want to live and that is very disappointing too.

Now, I'll admit that while walking through this 4 bedroom rowhouse (yes, I am actually looking at a rowhouse and hell has frozen over, I'm sure) I was quite excited about it. I love old houses and every house on the market that I've gotten excited about was built in 1900 and this one was no exception. I see with blind eyes when it comes to an old house because I love the high ceilings, the creaking floors, the tired plastered walls, the tiny rooms, the old fashioned everything. Luckily, the partner walks about looking for everything that is wrong about a situation and hyper focuses on that -- he tells me he uses that as a method to seriously examine if he can deal with the crappy stuff enough to see the good stuff.

Anyways it is a 3 story house with the 3rd floor/attic as a 4th bedroom that is only suitable for someone 4ft tall -- which I happen to have one around. The heat is the old fashioned heat pushed up from the basement through the floor grate on the first floor and then rising waves a colder air through the floor grates in the 2nd floor -- the 3rd floor/attic looks like it'll just need to rely on the fact that it is at the top of the house. There is no central air and I was told that the window units have to work pretty hard to cool things enough. The wiring needs some help but at least I've got an electrical engineer that, although he hates electrician work, will be able to help get that in order. There is a 2 car garage in the back -- like way out back, it seem unusually far from the house. There is a two-story storage shed -- really it looks like a tiny little old-woman-in-the-shoe styled house. It is really cute and I imagine a 15-year-old daughter dreaming of moving out of the house and moving into that.

It is downtown a local town that is undergoing renovation and improvements. The local school is better than the one we're in now and it is on the other-side of the magic dividing line between a decent school and poorly performing school. Things are within walking distance and the neighborhood seems like it isn't the worst of the worst -- is that an acceptable criteria? Luckily the place is currently being rented by a man willing to share all sorts of details about the place. Like problems it has had and the landlord has done the minimum to cover over, that the heating bill for a 60-degree temp in the winter is around $300, that it gets really warm in the summer, that the neighborhood has its problems like his son's car being broken into once and the general condition of a boarding house a couple doors down.

This house needs some serious consideration and we have to think about crossing that border of a house that is safe and secure, without a doubt, without a risk, or moving into an improving area and also an area that it busy during the day from commercial traffic and accepting the problems that may come with the downtown night life, that is probably nothing compared with Baltimore. So far, I'm pretty sold on the house for the right price and tonight's conversation with the partner will show what action we want to take.

Rich Dad Poor Dad

2006-04-25T23:12:00.000-05:00

The partner heard about Rich Dad Poor Dad from a coworker and was suddenly interested in learning something about finances and investing. Now, I've not really looked into RDPD even though I've seen comments about it, but hope that it will get him thinking more about financial goodness that is possible and maybe even, somewhere in the book, get a clue about budgets!

I signed up on the Rich Dad website and took the Financial IQ test. I'm pleased to report that I scored 78% and am "Established" in the first quarter. This feels like good news in feeling like all of the reading I've done in the past 6 months might just be paying off. Now, to see what else the website has to offer and to glance at the book the partner just bought.

April Goals Progress

2006-04-21T08:23:00.000-05:00

This month isn't going quite as planned. I made 3 goals for myself and it looks like I'll not meet any of them.

Goal #1 - Not exceed $150 eating out
Current Progress: $163.73
Comments: No more eating out this month! I should be able to make this happen as long as I keep cooking dinner at home. I have an interview next Friday and will need to plan ahead to take a lunch so that I don't rationalize eating out again.

Goal #2 - Deposit $840 into savings
Current Progress: $480
Comments: That covered 3 weeks of back pay and a week of current pay for house cleaning. However, I will not be getting any more because I finally had to cut something out of my schedule and unfortunately the cleaning had to go. This means I'll be short on savings for the house, but I'm just so strapped for time as the semester ends and house buying and the wedding approaches.

Goal #3 - Reduce transportation costs
* Current Progress: $239.09
* Comments; A lot of things have come up this month that I didn't expect and are not normally part of my transportation budget. I realize I need to separate gas from other transportation/vehicle costs. First, I spent $10 on airport parking when dropping my daughter off at the airport. Second, my car threw a tensioner and that resulted in a tow ($57 paid from partner's cash), repairs ($175.40), and gas in the partner's car that was on empty when I needed to borrow it for a few hours ($20.04). I've only spent $33.65 in gas and will need to fill up one more time ($40 at current prices) -- this is within my expected budget/cost at least.

Overall, I'm disappointed that I have not worked harder to keep within my dining out budget. I've really gotten carried away in that department the past few months and have been rationalizing eating out too often. I currently only have $60 left in this month's budget and am not sure how it'll work out. I should go buy some groceries but I don't think the budget will allow for that and the gas I need to buy tomorrow.

Also, I feel bad because I said I'd sign the daughter up for soccer this spring, but it is starting to feel like that $140 will be hard to pull. Especially since I've been averaging about $100 a month on her for the past few months. Oh well, we'll have to wait and see. The first session was cancelled and the second one, today, she'll miss because of the field trip ($33) at school.

IRS Errors Considered

2006-04-20T09:53:00.000-05:00

In reading IRS Error in Your Favor on Five Cent Nickle, I realized that this situation would really throw me for a loop. But, reading the comments gave me some insight at which direction I'd choose to pursue.

I'm a stickler for doing the right thing and am pretty sure that I would make the initial call. However, perhaps my morals are not quite high enough because I'd probably not push the issue if they insisted it was correct. Regardless, I would certainly put the excess funds in the bank and just leave it there. It could be drawing interest for me and if anyone comes to call, it is there and waiting to be handed back. Plus, I'm sure there'd be some sort of statue of limitations that would allow me to eventually make it mine, all mine.

But wow, getting a $25k return when only expecting $5K....

if money were no problem

2006-04-20T09:39:00.000-05:00

I've got a couple of posts that are queued up and waiting for pictures before posting. In the meantime, I'll humor myself with the money meme. If money were no problem, I'd:

* have at least 3-4 children and probably more
* have a comfortable house - not insanely large
* have a large garden
* pursue my hobbies and artwork
* have a winter house in Milwaukee, WI (on lake shore drive, perhaps)
* take my children on vacations around the world
* provide college funds and investment funds for my children and nieces
* provide a house for my grandmother and great-grandmother with staff to care for them
* help my mom advance her business
* establish a retirement plan for my mom
* put my children in schools that I value
* pursue every theme camp/art project I want
* have someone sew clothes that I'd like to wear, custom fitted

I guess I just can't get much more creative than that. That is all I can come up with it really related to the whole lottery fantasy too. Because I figure that a lottery win will give me most of these things, no problem. I just can't really fathom more money than I'll ever need to worry about because my desires just don't need that much money.

Learning to make a buck

2006-04-19T10:01:00.000-05:00

This weekend, we're having a major machinery sale to move out some high-mass inventory taking up space in the workshop. This is really to liquidate my partners assets and hopefully to have a little less stuff to move when we find a house. We've offered the daughter an opportunity to make some money this weekend if she'll spend a little effort doing it.

Basically, we've said she can sell soda and sweets (brownies) if she can make it all happen. We'll draw up a business plan with her, offer to front her some cash for buying supplies, and set her off on her merry way to make money. She'll be in charge of setting up how much she'd like to buy, how much she thinks she'll sell (with some reasonable suggestions from us), what she wants to charge, and making sure her business loan is paid off -- regardless of whether or not she sells enough.

Luckily, there is a contingent plan for buying too many sodas. Our housemates often buy cases of soda and would probably be willing to purchase excess inventory from her at cost. So, it seems like a pretty sure fire way to make some cash. I just need to write up some worksheets to help her plan it out because I think it will really help make this possible for her.

She really hates the idea of having to buy supplies, but hopefully once we sit down and help her write it up she'll see that she will be making money from nothing, essentially, is she plans it right. Yeah, there is the cost of her labor -- but what is child labor worth these days? $0.25 a hour or something like that?

Now if I can get her to accept the fact that if she charges $2 a brownie she'll sell less compared to selling a brownie at $0.50. Right now she is pretty set on selling brownies for $1.50. There better be some pretty big brownies.

why should you budget?

2006-04-11T20:18:00.000-05:00

Just to warn you, I'm not offering new insight to answer this question. For me, it is a moot point because I intrinsically know that having a budget is essential to financial success in my life. However, it seems that my partner is very anti-budget and feels that "numbers on paper then rule your life". I've tried my sensible approach to this issue, I've tried my exasperated plea to this issue, I've tried my huffy fist full of spousal-like-power to this issue, and I've not gained any ground.

A budget is still a tool from hell sent from the financially extravagant to damn the lives of the simple people who merely want their freedom to spend as responsibly as the moment demands and without need to support, challenge, or verify their spending. Financial goals are simply philosophical impossibilities that can never be met with careful financial planning because life does not operate in accordance with anyone's set agenda and therefore will rule any established plan moot and an obvious waste of time. Budgets establish a passive way of life where line items on a spreadsheet have more value than the need or want that a particular purchase would sever.

Sigh.

Now, we agree in so many ways about being financially responsible and living below our means, yadda yadda. But when it comes down to the nuts and bolts of it, my current detailed budget and record keeping freaks him out and he sees my plot to design and enforce a budgeted household will destroy the very value of life that he so often decries as irresponsible and unsuccessful (financially speaking).

I'm up on my high horse because I know, and cannot be persuaded otherwise, that a budget is the best thing for establishing and reaching financial goals as a family unit. I know that I've lost considerable ground in this discussion by my earlier attempts to somehow flip the switch on the beauty of budgeting. I hope that we will establish some common ground, that we'll be able to build an acceptable budget together, and that financial prosperity will only be months (okay, years) of realistic and conscientious spending away.

But first, I need to get him to agree and understand how budgeting is a powerful tool for improving financial habits, responsibility, and progress.

taxes complete

2006-04-11T07:27:00.000-05:00

I finished my taxes last night. As always, it is a good thing as I'm getting a state and federal refund of $981 combined. And, before anyone mentions the tax free loan that I've given to government, that isn't the case for me. All of my income was from self employment and while I technically should pay that quarterly, it is not necessary if you will owe less than $1,000 in taxes - my self employment tax was $580.

Of course, when I have a normal job, I tend to get several thousand back. I wasn't really expecting a refund; I just wanted to be sure and to claim income this year. Even though I'm a full-time student, I can't imagine having a year's gap in employment -- that and cleaning and other odd jobs do add up. So, this should go directly into savings; however, I did not direct deposit it into my ING account because I thought it might show up around the same time we'll need closing costs in hand and didn't want to have to wait for ING to transfer to my checking account.

I'll be working on my partners taxes this week. He's never done his own taxes and I just can't see paying someone else to do them when I think it is actually *fun* to do taxes. It's a paper form thing, I love filling out any type of form -- I don't know why, I just do.

financial autobiography

2006-04-11T06:28:00.000-05:00

all the cool kids are doing it...

I grew up with a mom that liked to spend money. She grew up poor, as she said, and refused to feel poor even though we didn't really have a lot of money. The biggest thing I remember was in regards to food. There were so many things we wouldn't eat because "thats poor people food" and she wouldn't allow it -- amusingly, I often crave "poor people food" like meatloaf (which isn't always cheap when I make it). My mother was married to a great guy for 7 years, but that fell apart when, along with other things, she wouldn't stop spending money or credit. We always shopped at higher end department stores, usually on clearance, and my mom just wouldn't control her spending.

I know they even filed bankruptcy at some point in life. I think my mom filed bankruptcy again after she was divorced, but maybe those references were from the same one they filed together. And, I just found out that my mom filed bankruptcy yet again recently. Wow! I didn't know you could actually acquire enough credit after bankruptcy to need to do it again and again.

My mother spends every penny she has and often some she doesn't have. She lived in Maryland for a while but then moved back to Oklahoma, leaving her bank here. Many times, I've been asked to go put some money in her account so something doesn't bounce. Other times, I've watched her deposit money in the bank and be confused about why the balance was so low, just to figure out that she must have bounced a couple things. This always amazes me because I just can't understand how she can continue such a negative financial cycle. Also, she doesn't really mind.

We talked recently about long term care and retirement. I'm an only child and worry about having to take care of her. She admits she has no savings, no financial plans for retirement, and will simply rely on social security and the state to take care of her is she becomes ill. Sigh.

So, the beginning of my financial independence, which started before I was 18 because I was a teen mom, didn't start off on the right step. I did alright but never learned to save money or plan ahead until a few years ago. I simply spent what I had and juggled things when money got tight between paychecks. I racked up some outstanding bills that I simply couldn't pay and also credit card debt that I couldn't pay.

A couple years ago I made the decision to quit my full-time job, got back to college full-time, and live off financial aid and loans. That meant I had to budget. That meant that I would only get paid 2x a year. That meant I would be screwed if I cheated on my budget. And so, 2 years later, I've done quite well living within my budget. I've also built up about $8K in savings in just a few months --- this really amazes me because I always felt I didn't have any money, but I was obviously able to buckle down enough to save up a good chunk of change in a short time.

My biggest savings boost is a part-time job cleaning a friend's house. I took this job after I'd already established my budget. It pays $480 a month, which is 75% of my monthly 'income'. However, I decided that since I wasn't originally planning on that money that it should all go into savings and thats where it goes. I feel very proud of the fact that I'm willing to take all of the income and put it right into savings instead of adjusting my budget to allow for a little more wiggle room.

And now, I'm venturing into a marriage that is starting pretty far in the red in terms of net worth. I do feel scared about this, from time to time, but willing to accept that we all do stupid things financially and have to deal with them later. Also, for what its worth, my partner financed his 10-year pursuit of a B.S. on credit cards. So, his debt really isn't much different than mine, just poorly financed and the interest rate is way too high.

April Money Goals

2006-04-06T10:48:00.000-05:00

While waiting to write up my overall financial goals, with the partner's input, I figured it'd be a good time to make up some small goals for April.

Goal #1: Not exceed $150 eating out

To make this more achievable, I will not spend more than $37.50 a week eating out. So far, I've spent $40 this week. Next week, I have $35 to spend since I've already exceeded this week's limit. Luckily, the daughter is out of town next week and that alone would reduce my dining costs.

reward: special meal at home to celebrate

Goal #2: Deposit $840 into savings

This includes the 3 weeks of pay that I'm waiting for and 4 weeks of pay for this month. To make this happen, I must continue to do the work on time and also give payment reminders so that they do not fall behind again.

reward: $840 into savings is its own reward

Goal #3: Reduce transportation costs

Gas prices are rising. I need to reduce my driving to ensure that I am staying in budget. My budget is $80 for a transportation and I will avoid making any additional trips in order to stay within budget, despite the current rise in gas prices.

reward: extra me-time for reading or crafting

pf spreadsheets needed

2006-04-05T16:00:00.000-05:00

Since my partner and I will soon be merging finances, I need new spreadsheets to manage accounts, incomes, savings, investments, and spending. I've looked at the one I'm using now and just don't feel like it is going to make a smooth transition into married life.

Is there anyone out there that has a spreadsheet system that works well for them that they are willing to share?

Basically, I'm looking to track:

* multiple sources of income
* multiple accounts (joint and individual)
* investments
* retirement accounts
* assets
* liabilities
* monthly budget

Overall, this sounds rather simple and I should be able to come up with something capable of managing it all with no problem. I would still like to see what others have come up with and compare notes in order make improvements on what I have in mind.

March Budget - Recap

2006-04-05T10:22:00.000-05:00

Dining Out: I've been consistently crossing $200 even though I only budget $50-75. Of course, I realize that I need to reevaluate that number. Wanting to spend a maximum of $50 a month on dining out is obviously not a realistic expectation. Also, my schedule has gotten very hectic and I'm no longer making dinner or grabbing a lunch before heading out the door. This has drastically risen my dining spending. I need to write down some steps to take, starting now, to help reduce this.

DD: My daughter is going out of state for her Spring Break. Originally, her grandmother was going to purchase the ticket, but I agreed to cover the cost of the plane ticket after I decided to not join her on the trip. However, one reason I was not going to go was the cost of the trip; agreeing to pay for her ticket did not eliminate that.

Cleaning Income: I'm not getting paid consistently right now. This is very stressful, especially considering this normally goes into my ING account where I was taking advantage of the spring save up special. Sigh. So, they actually owe me a months worth of pay, including this week, and I should see an impressive jump this month in savings contributions once they start paying on time again.

Child Support: It has actually started to show up again. However, I've not seen two consistent payments, scheduling wise, so I'm not sure what to expect. For March, it helped to cover the plane ticket I wasn't planning on buying. This month, if it continues to show up, it will go into ING for additional funds for home buying. Once the house is in process, all child support funds will go into DD's ING account for any major purchase she needs. Monthly child support is normally only $239.08, so it isn't much to count on.

Overall: Other than dining out, it looks like I am still doing pretty good keeping spending in check. The wedding purchases will eventually be covered by some of savings. I am planning to spend about $500 from savings for the wedding, but that is for things that I can't fit into my monthly budget somewhere. Additionally, gas as prices have really increased lately and that may have some impact, but I'll reduce my driving as much as possible to prevent it from becoming an issue.

Net Worth - April

2006-04-04T09:27:00.000-05:00

I've updated my net worth for April. It is a bit discouraging to see such a negative number for my net worth, but at least I’m making positive progress. The negative percentage in the monthly difference is throwing me off a little because I’ve made positive gains in my net worth over the past few months. However, I’m sure it is a problem with my formula and the calculation for negative numbers. I’ll fix it next time.

Also, I feel the need to point out that I'm doing pretty good considering that I'm a full-time student without gainful employment. I have a bit of cleaning work that goes straight to savings, but that doesn't factor into my monthly budget.

I also plan to include my fiancé’s numbers but wanted to get this up while I was motivated. Plus, it’ll probably be even more intimidating to see just how much the net worth will drop once I add in his credit card debt. He has a fair amount of personal property assests (mostly large machinery) that will help, but the net worth will still take a hit. We’ve certainly got a lot of work ahead of us, but I know that we can do it.

Update: Here is our combined net worth -- yes, I'm still optimistic that things will improve. I also fixed the net worth percentage of difference -- just needed to make my divisor an absolute value.

introducing another personal finance blog

2006-04-03T14:23:00.000-05:00

I've been wanting to talk about money for a while now, but I just didn't feel right putting it on my personal website. Not because I wish to withhold this information from friends, but because I worry that it would cross the personal disclosure line that would put me at greater risk for identity theft or something similar. So, I will take the opportunity to use this screen to get into the nitty gritty of my finances, financial goals, and progress.

I'm currently strapped for time with my many obligations, but I've already outlined some things that I will include:

1. 6 and 12 month Financial Goals
2. Current Debt & Savings
3. Monthly Budget
4. Credit Repair
5. Home Buying Adventure

These will all include real numbers and real actions. I'm not perfect and I've been known to make mistakes and will surely make more. I'm getting married later this year and that has some interesting financial implications. In the beginning, I will be reporting his debts and savings, but not his budget. We plan to fully merge finances once we are married and I'll be working on developing a system that I can find acceptable since I'm used to just managing my own money.

My hopes for this page are that I will see my progress and use the writing on the wall method to improve. I hope to be an example and a peer for other personal finance bloggers that are still beginning or who are fighting with $100k+ in debt (not including mortgages). I am inspired by the blogs I read where people have made great progress, but I also love reading about people who are taking another look at their lives and are just starting out on an new course of action.