We are less than a week away from our big family vacation. Hooray! Most of our planning is done, although we still have a few items to take care of before we depart.
As we head towards our departure date, I need to do laundry and pack. I also have one more Amazon Prime order to execute on. But as for our travel plan, the airline tickets are paid for, the hotels are reserved and the rental car is booked.
We vacation on a budget, but we don't scrimp. What does that mean you ask? Well it means that we always have a short term savings account earmarked for travel/vacation. We also have an automatic deposit set up, so $200 per pay period goes into our vacation/travel fund. That normally means that we have more than enough in our travel/savings account to pay cash for airline tickets. After our airline tickets are booked and our vacation is planned I often up extra savings into our travel/vacation fund to make sure we have more than enough cash on hand for our hotel, rental car and spending. This time around we didn't need to since our savings account was well funded.
I don't scrimp when I go on vacation, so I normally budget at least $100 a day for food which seems like a lot, but if you are eating out or stopping at a local brewery for a couple of $10 beers it works out to the right amount for us. I also think about and plan for other spending, we'll be stopping at two national parks, so I'm accounting for entry fees, gas, and misc. spending on a t-shirt here or there or a special souvenir. Mr. Sam likes to pick up t-shirts on his travel and he wears them a lot. I like a more upscale souvenir, a piece of art from a local or maybe a handcrafted piece of jewelry. I am picky so that means I often come home with nothing and that is ok. Baby Sam gets to pick out something fun for herself that is inexpensive and I will likely pick out something for her along the way. I normally set aside another $100 in cash for misc. spending.
All of this preplanning means that when we get home from vacation we only bring memories, a rock or two for our collection and no debt.
Showing posts with label Baby Sam. Show all posts
Showing posts with label Baby Sam. Show all posts
Monday, July 4, 2016
Monday, May 30, 2016
Amazon Mom Update
Almost a year ago, I signed up for Amazon Mom/Prime program.
What I have learned, and it is also what I expected, is that having Amazon Prime makes it super easy to buy stuff from Amazon. "Free" two day delivery on lots of items means that I often go to Amazon for my buying needs. Does that mean I'm spending more in general? Hard to know. I could be making the same purchases, but simply making them at Amazon instead of other retailers. Or I could be making more purchases since Amazon makes it so easy. I suspect it is both.
Today, I was working on my Amazon Prime subscription box. The subscription service allows one to sign up for purchases that are regularly occurring. For us, that includes diapers, wipes, diaper genie liners, baby sunscreen, baby snacks, etc. If you sign up for five items a month that ups your savings to 15% off on everything and 20% off on diapers.
So each month, we get diapers and wipes. Normally we get some puff snacks for Baby Sam. That normally leaves two items left. We have storage space, so I'm genarlly looking for something we go through a lot of and is a dry good or cleaning supply.
As working parents, coffee is a big thing for us, so today I decided to look at coffee options. On Amazon, even narrowing by Prime, that brings up thousands of choices. Select ground and hazelnut and I'm down to hundreds. Sort by price and I come up with some brands that Mr. Sam buys regularly. Ok, price per bag, price per ounce. No idea if this is a good price. Am I falling into the trap of buying something to get a discount that isn't a good deal? Cross check to the Wal-mart site and yes this is a good price.
Do the same thing for Mr. Clean Magic Eraser and I'm good to go for check out.
So bottom line, discounts can work but you have to be careful about making a poor buying choice for purposes of getting a discount.
Also, being able to get items I need delivered makes my life so much easier. Between, work, baby, family life, maintaining sanity is important.
What I have learned, and it is also what I expected, is that having Amazon Prime makes it super easy to buy stuff from Amazon. "Free" two day delivery on lots of items means that I often go to Amazon for my buying needs. Does that mean I'm spending more in general? Hard to know. I could be making the same purchases, but simply making them at Amazon instead of other retailers. Or I could be making more purchases since Amazon makes it so easy. I suspect it is both.
Today, I was working on my Amazon Prime subscription box. The subscription service allows one to sign up for purchases that are regularly occurring. For us, that includes diapers, wipes, diaper genie liners, baby sunscreen, baby snacks, etc. If you sign up for five items a month that ups your savings to 15% off on everything and 20% off on diapers.
So each month, we get diapers and wipes. Normally we get some puff snacks for Baby Sam. That normally leaves two items left. We have storage space, so I'm genarlly looking for something we go through a lot of and is a dry good or cleaning supply.
As working parents, coffee is a big thing for us, so today I decided to look at coffee options. On Amazon, even narrowing by Prime, that brings up thousands of choices. Select ground and hazelnut and I'm down to hundreds. Sort by price and I come up with some brands that Mr. Sam buys regularly. Ok, price per bag, price per ounce. No idea if this is a good price. Am I falling into the trap of buying something to get a discount that isn't a good deal? Cross check to the Wal-mart site and yes this is a good price.
Do the same thing for Mr. Clean Magic Eraser and I'm good to go for check out.
So bottom line, discounts can work but you have to be careful about making a poor buying choice for purposes of getting a discount.
Also, being able to get items I need delivered makes my life so much easier. Between, work, baby, family life, maintaining sanity is important.
Friday, April 22, 2016
Keeping Up With the Joneses - Part I
So, for the past few years, probably five or so, more and more of my friends and peers, and even people who report up to me at work (so, I'd consider them non-peers) have been buying homes at purchase price points ranging from $700,000 to a million.
I find this phenomenon strange, but also incredibly alluring.
Let's start with an analysis of these folks. I will start with the ones who started this trend, and I do believe there is a somewhat contagious trend among friends that equates to keeping up with the Joneses. The ones who started the trend, in my humble opinion, likely made smarter choices.
1. It started with my friend Mary, all names changed to protect the innocent, and her husband George. Back in 2011, they actually got a great deal and paid mid $500s for a home that is now likely worth close to $800,000. They bought a 5000 square foot McMansion in a better school district, they have a small child, with 5 bedrooms, 4 baths in a new development. Their family consists of 3 people and they do not plan to have any more children so this is a house bigger than they need. Their real estate taxes are more than $8000. They took out a $400,000 mortgage. Five years later they are putting in a pool. The house they sold they had owned since 2002 and they made about $50,000 profit when they sold it. They were buying in a buyers market due to the 2008 real estate crash which means they were also selling in a buyers market.
Mary is in the same profession as I am, I assume she makes similar money to me. Her husband is in law enforcement. While he makes less money, he has a great pension that will be coming to him (and soon) such that their retirement savings is less crucial. I have one other friend who will have a federal pension, but she cannot collect said pension until closer to traditional retirement age. George will be able to start collecting his pension in less than 10 years and his pension is for life. As a result, they don't have to save as much for retirement.
2. Jennifer and Alan were next. They are a dual income, professional, couple. Both are in the same profession I am in. They have three kids.
In 2012 they bought a 4 bedroom, 3.5 bath, 5000 square foot home. It also has a 2000 square foot out building (with air conditioning) and a pool. They bought the home for $775,000 (the prior owner had bought it for $800,000 so, again, it was likely a good buy) and it is likely worth close to a million now. Taxes are $14,000 a year. They took on a $620,000 mortgage. Later they took on a $35,000 home equity loan.
They held onto their prior house for a couple of years, while the Florida real estate market improved (likely a smart move), and they later sold it in 2015 for a $265,000 profit. I don't believe they took that profit and reduced or refinanced the mortgage on their current home, rather before they sold their prior home they put it into a trust and I assume the profits also went into that trust.
They have engaged in a variety of real estate and trust maneuvers in the last few years. This is probably because Alan also bought an office building and they are creating protection for their other assets.
Does it sound like I'm stalking my friends' personal business?? Well I guess I am. All of this information, at least in Florida, is public record and readily accessible on line. I also am learning from what they are doing, and that is both positive and negative (more on that later).
I find this phenomenon strange, but also incredibly alluring.
Let's start with an analysis of these folks. I will start with the ones who started this trend, and I do believe there is a somewhat contagious trend among friends that equates to keeping up with the Joneses. The ones who started the trend, in my humble opinion, likely made smarter choices.
1. It started with my friend Mary, all names changed to protect the innocent, and her husband George. Back in 2011, they actually got a great deal and paid mid $500s for a home that is now likely worth close to $800,000. They bought a 5000 square foot McMansion in a better school district, they have a small child, with 5 bedrooms, 4 baths in a new development. Their family consists of 3 people and they do not plan to have any more children so this is a house bigger than they need. Their real estate taxes are more than $8000. They took out a $400,000 mortgage. Five years later they are putting in a pool. The house they sold they had owned since 2002 and they made about $50,000 profit when they sold it. They were buying in a buyers market due to the 2008 real estate crash which means they were also selling in a buyers market.
Mary is in the same profession as I am, I assume she makes similar money to me. Her husband is in law enforcement. While he makes less money, he has a great pension that will be coming to him (and soon) such that their retirement savings is less crucial. I have one other friend who will have a federal pension, but she cannot collect said pension until closer to traditional retirement age. George will be able to start collecting his pension in less than 10 years and his pension is for life. As a result, they don't have to save as much for retirement.
2. Jennifer and Alan were next. They are a dual income, professional, couple. Both are in the same profession I am in. They have three kids.
In 2012 they bought a 4 bedroom, 3.5 bath, 5000 square foot home. It also has a 2000 square foot out building (with air conditioning) and a pool. They bought the home for $775,000 (the prior owner had bought it for $800,000 so, again, it was likely a good buy) and it is likely worth close to a million now. Taxes are $14,000 a year. They took on a $620,000 mortgage. Later they took on a $35,000 home equity loan.
They held onto their prior house for a couple of years, while the Florida real estate market improved (likely a smart move), and they later sold it in 2015 for a $265,000 profit. I don't believe they took that profit and reduced or refinanced the mortgage on their current home, rather before they sold their prior home they put it into a trust and I assume the profits also went into that trust.
They have engaged in a variety of real estate and trust maneuvers in the last few years. This is probably because Alan also bought an office building and they are creating protection for their other assets.
Does it sound like I'm stalking my friends' personal business?? Well I guess I am. All of this information, at least in Florida, is public record and readily accessible on line. I also am learning from what they are doing, and that is both positive and negative (more on that later).
Thursday, April 14, 2016
I Keep Trying to Get Back on Track.......
I've been spinning my wheels now for more than a year.
With the time pressures of a more than full time job, baby, husband, landlording, life, etc. my ability to manage our finances has been backsliding.
I'm not paying bills on time, rent is not being collected (that is Mr. Sam's duty), our savings rate has gone down. I haven't even started to create our 2016 spending plan (our form of a budget), although I've put down on paper what I'd like to accomplish for savings. Mr. Sam has not created our 2016 savings Excel chart.
I know the reason for all of this: full time job, baby, husband, life, etc. I've yet to figure out a solution.
I used to spend 20-30 minutes 2-3 times a week working on finances or reading about finances (money blogs help me stay on track) when I arrived at the office. But, I used to arrive at the office @ 7:30 am. Now, on average, I'm arriving at @ 8:45 am.
The solution is to get up earlier so I can get to work earlier. Today, I arrived at @ 8.20 and spent an hour or so on finances and made good progress.
With the time pressures of a more than full time job, baby, husband, landlording, life, etc. my ability to manage our finances has been backsliding.
I'm not paying bills on time, rent is not being collected (that is Mr. Sam's duty), our savings rate has gone down. I haven't even started to create our 2016 spending plan (our form of a budget), although I've put down on paper what I'd like to accomplish for savings. Mr. Sam has not created our 2016 savings Excel chart.
I know the reason for all of this: full time job, baby, husband, life, etc. I've yet to figure out a solution.
I used to spend 20-30 minutes 2-3 times a week working on finances or reading about finances (money blogs help me stay on track) when I arrived at the office. But, I used to arrive at the office @ 7:30 am. Now, on average, I'm arriving at @ 8:45 am.
The solution is to get up earlier so I can get to work earlier. Today, I arrived at @ 8.20 and spent an hour or so on finances and made good progress.
Friday, January 8, 2016
Updated 2016 Savings/Financial Goals
Still working on our goal planning, some changes since I last posted.
Definite goals:
(1) Max out 401k for each of us, the limits have not changes for 2016 so that is $18,000 for each of us for a total of $36,000. Automatic payroll debits are in place, I will just need to check them in January
(2) Finish funding our 2015 IRAs - $8900, The 2015 IRAs must be funded by 4/15/16. As such, we will have some heavy upfront savings of about $1110 per pay period between 1/1/16 and 4/15/16.
(3) Fund 2016 IRAs $11,000 for the both of us, this number also is unchanged from 2015.
(4) Baby Sam'college fund, add another $5000 this year.
Tentative goals:
(5) Add to emergency fund, reducing this annual goal to $5000 (this year we saved $10,000)
The above savings goals total $65,900. The highest savings number we have ever hit with our savings efforts is @$64,000 (back in 2013). So, this would be a stretch for us, especially with our child care expenses for Baby Sam.
I've deleted the nused car savings goal, because I went ahead and bought a nused car in December. More on that in a later post.
Debt killing goals:
(1) Pay off lingering credit card debt in the amount of $4261 (this was at $6500 in my last post, we've made progress).
(2) Pay off Mr. Sam's new car, remaining debt $2000.
Above debt totals at $6261.
Also, I'd like to reduce our total debt to under $450,000 total. At present our debt total is at $491,863 (this number went up due to the nused car) which would require killing the above credit and car debt and also killing another almost $35,602 in debt. I think that is this is may be a reachable goal since we paid off @$34,000 in debt this year.
Additional financial goals:
Roll over old 401k to my current employer 401k. This has been a previous goal, and guess what it is still an item on my to do list.
Definite goals:
(1) Max out 401k for each of us, the limits have not changes for 2016 so that is $18,000 for each of us for a total of $36,000. Automatic payroll debits are in place, I will just need to check them in January
(2) Finish funding our 2015 IRAs - $8900, The 2015 IRAs must be funded by 4/15/16. As such, we will have some heavy upfront savings of about $1110 per pay period between 1/1/16 and 4/15/16.
(3) Fund 2016 IRAs $11,000 for the both of us, this number also is unchanged from 2015.
(4) Baby Sam'college fund, add another $5000 this year.
Tentative goals:
(5) Add to emergency fund, reducing this annual goal to $5000 (this year we saved $10,000)
The above savings goals total $65,900. The highest savings number we have ever hit with our savings efforts is @$64,000 (back in 2013). So, this would be a stretch for us, especially with our child care expenses for Baby Sam.
I've deleted the nused car savings goal, because I went ahead and bought a nused car in December. More on that in a later post.
Debt killing goals:
(1) Pay off lingering credit card debt in the amount of $4261 (this was at $6500 in my last post, we've made progress).
(2) Pay off Mr. Sam's new car, remaining debt $2000.
Above debt totals at $6261.
Also, I'd like to reduce our total debt to under $450,000 total. At present our debt total is at $491,863 (this number went up due to the nused car) which would require killing the above credit and car debt and also killing another almost $35,602 in debt. I think that is this is may be a reachable goal since we paid off @$34,000 in debt this year.
Additional financial goals:
Roll over old 401k to my current employer 401k. This has been a previous goal, and guess what it is still an item on my to do list.
Tuesday, October 27, 2015
Updates on Debt
I've recently, as of today, updated our networth debt numbers. One of our goals for 2015 was to get our total debt load under $500,000 and I'm pleased to report that our debt is now at $489,000. Since, January 2007, our debt load has gone from $735,054 down to $489,000. That means, on average we have killed about $30,000 in debt per year since 2007.
On our primary home, purchased in 2004, we have paid off $105,546 in principal. Since we refinanced our mortgage a couple years ago to 2.75% our payments have accelerated. We also refinanced from a 25 year loan to a 15 year loan and cut off 7 years from our overall term. On our three investment property mortgages, as of next month, all three mortgages should be below $100,000.
As for our other debt, I've struggled with credit card debt, pay it down, run it up, pay it down, etc. I really need to kill it once and for all as its now been hanging around since the baby arrived. We also have a new debt that is not yet listed, 0% financing on floor tile that we bought for one of our investment properties. That debt is a couple of thousand dollars.
As for Mr. Sam's new truck, we continue to pay down his truck debt (we paid for his new truck half in cash and half in 0% financing) at $500 a month, so that debt will be gone in seven months. I really need to be saving for a nused car for me, as my car has been acting up. Recently it was out of commission for a few weeks with an electrical problem but the fix ended up only costing $250. There are several other more expensive things wrong with the car, but the dealer says none are pressing to fix as of now. The dealer gave me a print out of things to fix that would likely cost $4000 which is more than the car is worth. It was kinda funny as I had started to research my next car. Since Baby Sam arrived I, of course, want a family car. But, I'm better off trying to make my car last another year or so as I've only got $400 saved in my nused car fund.
On our primary home, purchased in 2004, we have paid off $105,546 in principal. Since we refinanced our mortgage a couple years ago to 2.75% our payments have accelerated. We also refinanced from a 25 year loan to a 15 year loan and cut off 7 years from our overall term. On our three investment property mortgages, as of next month, all three mortgages should be below $100,000.
As for our other debt, I've struggled with credit card debt, pay it down, run it up, pay it down, etc. I really need to kill it once and for all as its now been hanging around since the baby arrived. We also have a new debt that is not yet listed, 0% financing on floor tile that we bought for one of our investment properties. That debt is a couple of thousand dollars.
As for Mr. Sam's new truck, we continue to pay down his truck debt (we paid for his new truck half in cash and half in 0% financing) at $500 a month, so that debt will be gone in seven months. I really need to be saving for a nused car for me, as my car has been acting up. Recently it was out of commission for a few weeks with an electrical problem but the fix ended up only costing $250. There are several other more expensive things wrong with the car, but the dealer says none are pressing to fix as of now. The dealer gave me a print out of things to fix that would likely cost $4000 which is more than the car is worth. It was kinda funny as I had started to research my next car. Since Baby Sam arrived I, of course, want a family car. But, I'm better off trying to make my car last another year or so as I've only got $400 saved in my nused car fund.
Wednesday, May 27, 2015
Update on Swap.com Experiment
Earlier, I posted about my Swap.com experiment.
Almost a month later and I have earned $80 in profit. I've sold about 18 items (a couple of which were sets). The least expensive item I sold was $3.00. The most expensive item I sold was $15.00. Initially, the first week or so that my items were posted on the web site (they do the photographing and posting), I sold several items that were lower priced. Then my selling rate slowed down and I sold an item here or there but the items were more expensive. I have 8 items (include a couple of sets) posted and priced that have not sold.
I did much better selling maternity clothes that I did selling infant/baby items. In fact, I have only sold one baby item thus far.
At present, I have another big box of mostly maternity items to send off now. The items I am sending in this time are my high end, business and fashion maternity items. I also had almost all of these items dry-cleaned so I will need to price the items high enough to recoup my dry-cleaning expenses. These items will likely be priced at $30 or more to account for dry-cleaning costs of $10 and original prices of $80 - $130 per item (and many were only slightly worn).
Wish me luck.
Almost a month later and I have earned $80 in profit. I've sold about 18 items (a couple of which were sets). The least expensive item I sold was $3.00. The most expensive item I sold was $15.00. Initially, the first week or so that my items were posted on the web site (they do the photographing and posting), I sold several items that were lower priced. Then my selling rate slowed down and I sold an item here or there but the items were more expensive. I have 8 items (include a couple of sets) posted and priced that have not sold.
I did much better selling maternity clothes that I did selling infant/baby items. In fact, I have only sold one baby item thus far.
At present, I have another big box of mostly maternity items to send off now. The items I am sending in this time are my high end, business and fashion maternity items. I also had almost all of these items dry-cleaned so I will need to price the items high enough to recoup my dry-cleaning expenses. These items will likely be priced at $30 or more to account for dry-cleaning costs of $10 and original prices of $80 - $130 per item (and many were only slightly worn).
Wish me luck.
Tuesday, May 26, 2015
Some Slightly Better News on the Rising Cost of College
Glad to hear that the dramatic rise in college costs is starting to slow down a bit. As I posted previously, we have started a 529 fund for Baby Sam. So far, we have contributed $2100 to the fund.
Wednesday, May 6, 2015
Cars, cars, cars
Back in 2008, the first year of this blog, we saved up $17,000 and I bought a 2006 nused car. While that feels like a short time ago, its been almost 7 years. That car has served me well, but last year (and the prior year) it cost me a pretty penny in repair costs.
Now that we have Baby Sam, and I have to wiggle and wrangle that baby stroller in and out of my trunk (even though its very large) and as the car approaches the 10 year mark, I've started thinking that I need a new/nused car. I'm thinking about a small SUV or cross over type of car. Something with a larger back storage area (not a trunk) so I can more easily fit the baby stroller and all the stuff that goes along with a baby.
The length of time Americans keep their cars has grown. On average, a new car is kept for 71.4 months (or just under 6 years). On average, a nused car is kept for 49.9 months (a bit over 4 years). In my situation, I've exceeded the average for both data points. since I've been driving my nused car for more than 6 years.
I generally do well with resisting the influence of friends and colleagues, but most everyone I know is driving a newish car. In fact, I recently got together with a good friend and she has a newly leased SUV. In the last 15 years she has had 5 cars and I have had 2. In our family, I was the one with the nice car since Mr. Sam was driving an old 1998 truck. But, that's not true anymore.
While I'm starting to pine for a new car, our financial situation is stretched. We have the expenses of the baby, indeed we still have a little baby debt. We have Mr. Sam's truck debt. And, we've barely made any progress on our 2015 savings goals (indeed we've hardly started). We also have child care costs and a college fund to feed. So, if I can hold off on a new or nused car for a couple of years, we'd be much better off.
As a result, my tentative plan is to start a nused car fund now so I feel like I am working towards a goal. I need to also spend some money to get my car cleaned and tuned up, oil change, tire rotation, etc. If I do that, I'll feel like my car is in better condition and won't be so antsy for a change.
Now that we have Baby Sam, and I have to wiggle and wrangle that baby stroller in and out of my trunk (even though its very large) and as the car approaches the 10 year mark, I've started thinking that I need a new/nused car. I'm thinking about a small SUV or cross over type of car. Something with a larger back storage area (not a trunk) so I can more easily fit the baby stroller and all the stuff that goes along with a baby.
The length of time Americans keep their cars has grown. On average, a new car is kept for 71.4 months (or just under 6 years). On average, a nused car is kept for 49.9 months (a bit over 4 years). In my situation, I've exceeded the average for both data points. since I've been driving my nused car for more than 6 years.
I generally do well with resisting the influence of friends and colleagues, but most everyone I know is driving a newish car. In fact, I recently got together with a good friend and she has a newly leased SUV. In the last 15 years she has had 5 cars and I have had 2. In our family, I was the one with the nice car since Mr. Sam was driving an old 1998 truck. But, that's not true anymore.
While I'm starting to pine for a new car, our financial situation is stretched. We have the expenses of the baby, indeed we still have a little baby debt. We have Mr. Sam's truck debt. And, we've barely made any progress on our 2015 savings goals (indeed we've hardly started). We also have child care costs and a college fund to feed. So, if I can hold off on a new or nused car for a couple of years, we'd be much better off.
As a result, my tentative plan is to start a nused car fund now so I feel like I am working towards a goal. I need to also spend some money to get my car cleaned and tuned up, oil change, tire rotation, etc. If I do that, I'll feel like my car is in better condition and won't be so antsy for a change.
Tuesday, May 5, 2015
Trying Out Swap.com
I am normally the type of person who simply donates rather than resells items. For me, my time and effort is generally worth way more than any small profit to be made in reselling items at a garage sale or consignment, etc.
But, when it came time to re-purpose my maternity clothes I gave second thought to donation as my first option. Specifically, because I work in a professional setting I had ended up investing a fair amount in some very good maternity clothes. In particular, I had invested in several Seraphine maternity dresses (Kate Middleton is a fan) since I work in a field where I need to look good and present a polished, professional appearance. And, I had at least three or four dresses that I had only worn two or three times.
I did a fair amount of research regarding on-line maternity (and baby) consignment stores. First, I sure wish I had known about these sites when I was buying maternity clothes as I would have tried out some of these sites for my own needs. I had thought about consignment stores when I first started my maternity clothes shopping, indeed I had even tried to find one. But, I was thinking and looking for physical stores and not virtual. Dang! Second, a lot of these sites have very mixed reviews and reputations.
After doing my due diligence, I decided to go with swap.com for a couple of reasons. Importantly, they seemed to have the best reputation based on my research (please note - I've not received anything in exchange for this review). Also of importance, to me, they do almost all the work. They take the photos, write the description and they mail out the packages to folks who buy. As I mentioned before, I don't have the time to be shipping out packages to customers since with work and a baby I can barely complete one chore a week.
So, this is how it works. (1) Sign up as a seller. (2) Order a UPS shipping slip. (3) Pack up neat, clean and in good condition items and send them off to Swap.com. You can also bundle items together so they sell as a set. Swap.com then does the rest, taking photos, writing description, mailing to buyers, sending you the money (via PayPal).
As a test, I sent in a box of mostly maternity clothes (a few newborn baby items) consisting of mainly casual, lower cost items (not my fancy maternity work apparel). And, I would say that it generally worked as promised.
Communication was good. When Swap.com received my package they emailed me. When my items were ready to price (about two weeks later) they emailed me. While I am still learning the site, I found pricing to be relatively easy. An error in a description and classification for an item was promptly corrected after notification.
And, so far, I have actually sold some items and money has been sent to my PayPal account. I think the fees are generally reasonable since Swap.com does most of the work and they store the items for months with no charge (there are storage charges after a set time passes). There is a charge for the in-bound UPS shipping and a $1.50 plus 25% sales commission for each sold item (or set).
With fees and competition, pricing is an art. I set my prices by looking at what similar items were priced at. So, I priced maternity t-shirts at $7 and sold several. Not much of a profit at $3.75 but better than nothing.
I must say it was painful to price a skirt that I wore once at $12 when it cost me $70. And my super expensive maternity jeans that cost $150 are currently priced at $15 (but they were worn many times). With my next box, the professional maternity items, I will need to price so I can recoup drycleaning costs (since I had it all recently cleaned in preparation for consignment) and make a decent profit so that will be tricky.
I was somewhat befuddled by what was rejected and they don't really tell you why. I had sent in a barely worn maternity maxi dress that was in the rejected pile. You can choose to have rejected items shipped back to you, but there is a charge (of course). I'm not sure what happens to the items if you donate them (which is what I probably will choose to do). No idea whether they actually get donated or if the site simply sells them. Inexplicable rejections was a very common complaint in my research regarding other sites.
I haven't yet bought anything from Swap.com, but I do plan to try it out for baby clothes. I already know that with my baby there are outfits, especially the fancy ones, that get worn once (and some not at all). One trick I've learned about recently is to leave tags on baby clothes until they are worn. That way, if baby never wears them you can list them as "new with tags". If you remove the tags, even if baby never wears that outfit, you can only list them as "good condition".
But, when it came time to re-purpose my maternity clothes I gave second thought to donation as my first option. Specifically, because I work in a professional setting I had ended up investing a fair amount in some very good maternity clothes. In particular, I had invested in several Seraphine maternity dresses (Kate Middleton is a fan) since I work in a field where I need to look good and present a polished, professional appearance. And, I had at least three or four dresses that I had only worn two or three times.
I did a fair amount of research regarding on-line maternity (and baby) consignment stores. First, I sure wish I had known about these sites when I was buying maternity clothes as I would have tried out some of these sites for my own needs. I had thought about consignment stores when I first started my maternity clothes shopping, indeed I had even tried to find one. But, I was thinking and looking for physical stores and not virtual. Dang! Second, a lot of these sites have very mixed reviews and reputations.
After doing my due diligence, I decided to go with swap.com for a couple of reasons. Importantly, they seemed to have the best reputation based on my research (please note - I've not received anything in exchange for this review). Also of importance, to me, they do almost all the work. They take the photos, write the description and they mail out the packages to folks who buy. As I mentioned before, I don't have the time to be shipping out packages to customers since with work and a baby I can barely complete one chore a week.
So, this is how it works. (1) Sign up as a seller. (2) Order a UPS shipping slip. (3) Pack up neat, clean and in good condition items and send them off to Swap.com. You can also bundle items together so they sell as a set. Swap.com then does the rest, taking photos, writing description, mailing to buyers, sending you the money (via PayPal).
As a test, I sent in a box of mostly maternity clothes (a few newborn baby items) consisting of mainly casual, lower cost items (not my fancy maternity work apparel). And, I would say that it generally worked as promised.
Communication was good. When Swap.com received my package they emailed me. When my items were ready to price (about two weeks later) they emailed me. While I am still learning the site, I found pricing to be relatively easy. An error in a description and classification for an item was promptly corrected after notification.
And, so far, I have actually sold some items and money has been sent to my PayPal account. I think the fees are generally reasonable since Swap.com does most of the work and they store the items for months with no charge (there are storage charges after a set time passes). There is a charge for the in-bound UPS shipping and a $1.50 plus 25% sales commission for each sold item (or set).
With fees and competition, pricing is an art. I set my prices by looking at what similar items were priced at. So, I priced maternity t-shirts at $7 and sold several. Not much of a profit at $3.75 but better than nothing.
I must say it was painful to price a skirt that I wore once at $12 when it cost me $70. And my super expensive maternity jeans that cost $150 are currently priced at $15 (but they were worn many times). With my next box, the professional maternity items, I will need to price so I can recoup drycleaning costs (since I had it all recently cleaned in preparation for consignment) and make a decent profit so that will be tricky.
I was somewhat befuddled by what was rejected and they don't really tell you why. I had sent in a barely worn maternity maxi dress that was in the rejected pile. You can choose to have rejected items shipped back to you, but there is a charge (of course). I'm not sure what happens to the items if you donate them (which is what I probably will choose to do). No idea whether they actually get donated or if the site simply sells them. Inexplicable rejections was a very common complaint in my research regarding other sites.
I haven't yet bought anything from Swap.com, but I do plan to try it out for baby clothes. I already know that with my baby there are outfits, especially the fancy ones, that get worn once (and some not at all). One trick I've learned about recently is to leave tags on baby clothes until they are worn. That way, if baby never wears them you can list them as "new with tags". If you remove the tags, even if baby never wears that outfit, you can only list them as "good condition".
Monday, March 30, 2015
College Savings Plan for Baby Sam
As I work on figuring out our 2015 savings goals, we know that college savings for Baby Sam is on the list.
We have settled on a 529 Plan rather than a prepaid tuition plan.
The next question is how much to contribute. $28,000 is the current annual limit if you file taxes jointly, $14,000 if filing singly status before having to do gift tax analysis.
Mr. Sam is in favor of skimping to front load Baby Sam's college fund now and then once Baby is in school dialing back because there is a good chance we will be paying for private school.
I'm not sure where I stand on the issue, but because I manage the finances I prefer more regular and even contributions because its easier to manage. But, if we contributed $28,000 a year for year one to year five we would end up with $140,000 and that is a huge chunk of money that would then grow over the next 13 years.
Start researching estimated college costs in 2033 and its enough to make your head spin. $57,000 a year for public, in-state university up to $130,000 a year for private university. Multiply that by four - five years and you get total costs from $285,000 to $650,000. Yikes!
However, many experts say that the tuition increases that have occurred in recent years, 5% - 7% increases each year, are simply unsustainable. So, its quite difficult to know what the real costs will be. I guess its better to plan high and then be pleasantly surprised, but I don't want to sacrifice retirement savings or other savings to hit an inflated college savings number.
At present, the 529 plan paperwork is filled out, I've sent off the check for the initial contribution and I have set up bi-monthly electronic contributions at $50. Not much, but a start while we figure out how much we will be contributing going forward.
We have settled on a 529 Plan rather than a prepaid tuition plan.
The next question is how much to contribute. $28,000 is the current annual limit if you file taxes jointly, $14,000 if filing singly status before having to do gift tax analysis.
Mr. Sam is in favor of skimping to front load Baby Sam's college fund now and then once Baby is in school dialing back because there is a good chance we will be paying for private school.
I'm not sure where I stand on the issue, but because I manage the finances I prefer more regular and even contributions because its easier to manage. But, if we contributed $28,000 a year for year one to year five we would end up with $140,000 and that is a huge chunk of money that would then grow over the next 13 years.
Start researching estimated college costs in 2033 and its enough to make your head spin. $57,000 a year for public, in-state university up to $130,000 a year for private university. Multiply that by four - five years and you get total costs from $285,000 to $650,000. Yikes!
However, many experts say that the tuition increases that have occurred in recent years, 5% - 7% increases each year, are simply unsustainable. So, its quite difficult to know what the real costs will be. I guess its better to plan high and then be pleasantly surprised, but I don't want to sacrifice retirement savings or other savings to hit an inflated college savings number.
At present, the 529 plan paperwork is filled out, I've sent off the check for the initial contribution and I have set up bi-monthly electronic contributions at $50. Not much, but a start while we figure out how much we will be contributing going forward.
Thursday, March 26, 2015
Amazon Mom?
After ordering a big box of Seventh Generation wipes and Diaper Genie refills from Amazon, up popped an offer to join the Amazon Mom program.
The Amazon Mom program is a spin off from the Amazon Prime program. The basics of Amazon Prime are free two day shipping, access to films, t.v. shows, music and e-books as well. The annual cost for Amazon Prime is $99.
Amazon Mom is part of your Prime membership so it costs $99 a year and includes the above Prime benefits. In addition, it offers discounts on diapers, wipes and other baby related products.
Specifically you get:
5% off baby wipes. Get 15% off wipes when you subscribe to 5 or more items.
15% off Subscribe & Save: Save items when you subscribe to 5 or more items.
20% off diapers (15% Amazon Mom discount + 5% Subscribe & Save discount).
Lets talk about subscriptions, that means that you sign up for automatic delivery of certain things, diapers, wipes, formula but also things like soap and toothpaste and non baby items too. My research indicated that there are pros and cons to subscriptions for baby items including the fact that babies grow and change so you need to manage and update things like diaper sizes and formula preferences, etc.
Amazon Mom used to be a better deal, but I guess folks with fake babies triggered Amazon to close up the extra 5% discount loophole for Subscribe & Save.
I have friends and Mom friends who swear by Amazon Prime, it IS a lot easier to simply order what you need for baby rather than trying to run errands with a baby in tow. But, Amazon doesn't offer these discount programs or free shipping and then lose money on it. They know enough about consumer behavior and habits to know that many people will order more items (that cute outfit or toy) such that Amazon will make enough in profits if the shipping is free or if there is a discount. Certainly there are people out there that are disciplined enough to only order the items they truly need and they make the program work for them. I also think Amazon Prime probably makes great sense if you are located in a rural area or an expensive area such that you can't get discounted products in a quick and easy fashion close by.
So far, I've not signed up for Amazon Prime or the Amazon Mom program, I'm still thinking about whether it would work for us and whether or not I would truly come out ahead. Back to my earlier Amazon order, I still obtained free shipping on all the items I ordered without paying for a Prime membership.
What about you, do you have an Amazon Prime membership, what has been your experience with these discount programs?
The Amazon Mom program is a spin off from the Amazon Prime program. The basics of Amazon Prime are free two day shipping, access to films, t.v. shows, music and e-books as well. The annual cost for Amazon Prime is $99.
Amazon Mom is part of your Prime membership so it costs $99 a year and includes the above Prime benefits. In addition, it offers discounts on diapers, wipes and other baby related products.
Specifically you get:
5% off baby wipes. Get 15% off wipes when you subscribe to 5 or more items.
15% off Subscribe & Save: Save items when you subscribe to 5 or more items.
20% off diapers (15% Amazon Mom discount + 5% Subscribe & Save discount).
Lets talk about subscriptions, that means that you sign up for automatic delivery of certain things, diapers, wipes, formula but also things like soap and toothpaste and non baby items too. My research indicated that there are pros and cons to subscriptions for baby items including the fact that babies grow and change so you need to manage and update things like diaper sizes and formula preferences, etc.
Amazon Mom used to be a better deal, but I guess folks with fake babies triggered Amazon to close up the extra 5% discount loophole for Subscribe & Save.
I have friends and Mom friends who swear by Amazon Prime, it IS a lot easier to simply order what you need for baby rather than trying to run errands with a baby in tow. But, Amazon doesn't offer these discount programs or free shipping and then lose money on it. They know enough about consumer behavior and habits to know that many people will order more items (that cute outfit or toy) such that Amazon will make enough in profits if the shipping is free or if there is a discount. Certainly there are people out there that are disciplined enough to only order the items they truly need and they make the program work for them. I also think Amazon Prime probably makes great sense if you are located in a rural area or an expensive area such that you can't get discounted products in a quick and easy fashion close by.
So far, I've not signed up for Amazon Prime or the Amazon Mom program, I'm still thinking about whether it would work for us and whether or not I would truly come out ahead. Back to my earlier Amazon order, I still obtained free shipping on all the items I ordered without paying for a Prime membership.
What about you, do you have an Amazon Prime membership, what has been your experience with these discount programs?
Friday, March 20, 2015
Updated Net Worth and Housekeeping
I'm continuing to work on getting our finances back under control. I spent some time this morning working on updating our net worth numbers. Our net worth is now above the $1.5 million number.
Net Worth IQ web site continues to be flaky, but when its up I prefer to keep my data there. I've added entries for November 2014 - February 2015 but they are not accurate. I will be working to add the correct data over the next couple of weeks.
Additional good news, our primary mortgage is now below $220,000. I will be super excited when its below $200,000 although prepaying the mortgage is unlikely to be something we will be working on any time soon.
In baby news, I opened a savings account at Wells Fargo for Baby Sam for monies received as gifts. We have been researching college savings plans and at this point we have settled on a 529 plan rather than Florida Prepaid. More about that research later.
Finally, I am almost done with our 2015 Spending Plan which will influence and direct our 2015 Plan. More about that later too.
Net Worth IQ web site continues to be flaky, but when its up I prefer to keep my data there. I've added entries for November 2014 - February 2015 but they are not accurate. I will be working to add the correct data over the next couple of weeks.
Additional good news, our primary mortgage is now below $220,000. I will be super excited when its below $200,000 although prepaying the mortgage is unlikely to be something we will be working on any time soon.
In baby news, I opened a savings account at Wells Fargo for Baby Sam for monies received as gifts. We have been researching college savings plans and at this point we have settled on a 529 plan rather than Florida Prepaid. More about that research later.
Finally, I am almost done with our 2015 Spending Plan which will influence and direct our 2015 Plan. More about that later too.
Thursday, March 5, 2015
2014 - Final Savings Numbers
(1) Max out 401k(s) - $22,588 65% (goal is $35,000)
(2) Max out IRA(s) - $11,000 100% (goal is $11,000)
(3) Add to e/r fund - $10,400 104% (goal is $10,000)
(4) Roof project - $5,000 100% (goal is $5,000)
(5) Vehicle replacement - $5,000 100% (goal is $5,000)
(6) House projects - $3,000 100% (goal is $3,000)
Total: $56,988 83% (Goal is $69,000)
So, we saved almost $57,000 in 2014. While a respectable number, we missed our goal by $12,000. Mr. Sam was not eligible for his 401k until midway through the year and that is one of the main reasons that our 401k savings number was reduced in 2014.
We did have some major expenses in 2014 that are not reflected (entirely) in our savings goals. First, a new car for Mr. Sam which was paid in part with cash. Second, a new roof for one of our properties. The roof was a savings goal, but also cost more than what we saved and we could no longer put the project off.
We also incurred some debt in 2014. Mr. Sam's new car was paid in part with cash (about 40%) and the rest is loan. Second, we added to our family in 2014 (which is why I've been away from the blog for so long). We had considerable expenses related to the conception (via IVF) and related to the nursery and birth (most covered by insurance, but a big chunk that was not). We also had a major house project prior to the baby arriving. We are working on paying down the baby debt and it will be part of our 2015 savings/debt killing plan which I am working on creating.
(2) Max out IRA(s) - $11,000 100% (goal is $11,000)
(3) Add to e/r fund - $10,400 104% (goal is $10,000)
(4) Roof project - $5,000 100% (goal is $5,000)
(5) Vehicle replacement - $5,000 100% (goal is $5,000)
(6) House projects - $3,000 100% (goal is $3,000)
Total: $56,988 83% (Goal is $69,000)
So, we saved almost $57,000 in 2014. While a respectable number, we missed our goal by $12,000. Mr. Sam was not eligible for his 401k until midway through the year and that is one of the main reasons that our 401k savings number was reduced in 2014.
We did have some major expenses in 2014 that are not reflected (entirely) in our savings goals. First, a new car for Mr. Sam which was paid in part with cash. Second, a new roof for one of our properties. The roof was a savings goal, but also cost more than what we saved and we could no longer put the project off.
We also incurred some debt in 2014. Mr. Sam's new car was paid in part with cash (about 40%) and the rest is loan. Second, we added to our family in 2014 (which is why I've been away from the blog for so long). We had considerable expenses related to the conception (via IVF) and related to the nursery and birth (most covered by insurance, but a big chunk that was not). We also had a major house project prior to the baby arriving. We are working on paying down the baby debt and it will be part of our 2015 savings/debt killing plan which I am working on creating.
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