Uphill Battle

I'm sorry I've not posted here more.  But, now I understand how busy one gets with a full time job and a new baby.

Financially, we are all over the place.  We can't seem to get back on track post baby.  While our incoming salaries remain the same or better, our outgoing expenses are much. much higher than normal.

Child care is running $1900 a month ($22,800 a year) which appears to be way higher than normal for Florida, but I don't know anyone in my circle paying the Florida annual average of $8300.  Add in diapers, formula, wipes, etc. at $300 a month or so and we are up to $2200 in expenses.  And, we actually don't spend much on Baby Sam, we hit the thrift stores for books and toys and I stick to super sales for baby clothes.  At present, we are also adding $200 a month to Baby Sam's college fund.  So in total, about $2400 a month in baby expenses.

Another challenge, we are converting a rental property from rental to family.  We have, in the past, utilized one of rental properties for our snow bird relatives which was a financial hit.  Now, that we are turning the rental property to a family property, we have had a couple of months where our old tenants have not paid us.  So that also, obviously, impacts our cash flow.

Anyways, we continue to contribute to our 401ks, at max level, and continue to put money into savings, but we need to catch up on our IRAs.

Hope your summer is going well.

Florida Unemployment Compensation - Follow Up

During Mr. Sam's unemployment, I posted about how difficult it is to obtain unemployment compensation.  It took several rounds to just get through the application process and we were amazed at how it seemed like the State was making it almost impossible for the unemployed to obtain benefits.  Mr. Sam, with a MBA and a reliable internet connection almost could not obtain benefits.

Well, the unemployment system in Florida was replaced, on October 15, 2013, with a new system.  But the new system has a whole host of problems.  Well now the Department of Labor is heading back to Florida to investigate the new system.  The DOL estimates that Floridians have lost $20 million in benefits due to the faulty new system.

I Love Numbers!

A couple weeks back I posted an update on our debt progress.  From 11/2012 - 11/2013 we paid off almost $35,000 in debt.  At this point in our lives, debt means mortgage debt either on our primary home or our three investment properties or our piece of land.

I didn't think much about that number, except I liked it because I like round numbers.  But, going back through our networthiq.com numbers I realized that our debt progress in 2013 took an unusual jump (thankfully in the right direction).

11/2012 - 11/2013 - @$35,000
11/2011 - 11/2012 - @$22,000
11/2010 - 11/2011 - @$20,000
11/2009 - 11/2010 - @$19,500
11/2008 - 11/2009 - @$19,000

I'm sure you can see that from 2008-2012 there was a gradual and upward trend on the amount of debt we killed each year.  And then, all of sudden, whammo, this year a thirteen thousand increase.  Even putting aside the mortgage principal prepayment goal of $5,000 (which was also a goal last year and the year before), I am surprised by this dramatic forward progress.  I'm going to have to further investigate the numbers, but I'm assuming this year's dramatic advance is as a result of our primary home refinance, which closed last quarter of 2012,  in which we shortened our term and got a reduced rate of 2.75%.

The Upside of the Real Estate Crash

I was on Zillow today, poking around looking at a home that was recently listed a couple of blocks away.

Of course, I had to look up our home as well.  As for the Zillow Zestimate, it has our home listed as worth $40,000 less than what we paid for it, almost 10 years ago now, which I would say is not too far off the mark.

More interesting to me, Zillow has property tax records listed going back to the year we bought the home.  And while I knew hour taxes had gone way down, whoo-hoo I was surprised by the actual numbers.  Our property taxes are down 54% from 2004.  And, since Florida has both a homestead law and a law called Save our Homes, our property taxes on our primary dwelling (does not apply to our investment properties) can only increase at the rate of inflation or 3% which ever is less.  As a result, it is going to take a very long time, assuming values continue to rise, to get back to that initial tax bill from 2004.

Florida - Fraud Capital of the Country

Today I read a news article about scammers targeting Nordstrom computers in South Florida.  Scammers distract the Nordstrom employees and take apart the register/computer back panel and add a credit card skimmer.

Thankfully these bad guys were caught because of surveillance camera footage.  But, as a consumer you wouldn't even be able to be on the look out for this kind of skimmer because it is hidden.  So make sure you pay close attention to those credit card and debit card statements.

Pedi Toes Lead the Way

Pedicures certainly should be classified as a want when one is doing a budget or a spending plan.  But for a South Florida gal, like me, they nudge into the category of need since my toes are exposed on a regular basis.  I wear peep toe pumps at work and sandals and flip flops on the weekend so unsightly toes are something I "need" to avoid.

Over the last year or so, having a regular pedicure has turned into a regular habit for me.  While I strive to avoid lifestyle inflation, I have just worked this service into my regular expenses, as part of my allowance.  Said another way, while I am spending more on my toes I am not spending more in general.

I pay quite a bit to have my hair cut, I've got long hair complicated hair and this is an expense that has been part of my regular budget since college.  So the spa/salon where I get my hair cut offers a very nice pedicure service which I have used with some regularity over the last few years.  Basically, when I get my hair cut, every six weeks, I often get my toes done.  The cost at this location is $55 ($65 with tip).  A pedicure at this spot is a luxury experience, super nice massage chairs and thorough and pampered experience.  The pedicure lasts quite a long time, normally at least two and half weeks or so.

On the other end of the spectrum, there is a no-frills nail salon near my office which charges $22 for a pedicure ($27 with tip).  This spot is very convenient and has later hours so it is an easy stop after work. But, there are no massage chairs and I don't find it to be a relaxing experience.  The pedicure from this place lasts a week or so.

So recently, I bought a Groupon for a day spa located near my home (I had no idea it was there) and had a great pedi and mani for $30.  It is a great spa, new and well appointed (meaning that it had great massage chairs).  My Groupon pedi lasted for more than two weeks (really almost three weeks) and I was very happy with the quality of the services.  Even though I only had a classic pedi, the treatment and time almost reached spa level pedi in my mind.  So, the Groupon worked, and I went back for another pedi this past weekend.  The regular price for a classic pedicure is $40 ($50 with tip) so this spot falls in between the prices of the spa/salon where I get my hair cut and the convenient spot near work.  But, I would say that this new location provides similar quality and level of service as the $55 pedi.  The only down side is that this place is not open late so it has to be a Saturday stop for me and my Saturdays are always busy.

I've really found that paying a bit more for quality is saving me time (since I don't have to have a cheap pedi every week or so) and increasing my joy in that I really enjoy the experience.

Unemployment Compensation - Follow Up # 2

Earlier I posted regarding Mr. Sam's Florida unemployment compensation adventures, and the fact that his application was denied because he received severance.  Well, now Florida has changed their minds and determined that he is entitled to benefits because he is not receiving ongoing severance.

As a result, yesterday he received a payment representing two weeks of benefits ($550).  Somehow I expect the State to change its mind and ask for the money back so we will be prepared to repay it.

Unemployment Compensation - Follow Up

Earlier, I posted about how difficult the State of Florida makes it to obtain unemployment compensation.  Well, after Mr. Sam worked on this task for a few weeks, jumped through all the hoops, spent hours completing forms and making his way through the mice trap the State of Florida has set up (in order to deny benefits) he learned he is not eligible since he received a severance package.

Ugh times a hundred.  Such a huge waste of time and red tape.  Assuming Mr. Sam is still unemployed when his severance package expires he can reapply and the severance doesn't reduce the number of weeks of payments.

Unemployment Compensation

Mr. Sam has been working on applying for unemployment benefits.  Sadly, Florida makes it super difficult to apply and obtain benefits.  Florida puts up so many road blocks regarding the collection of benefits that they are being investigated by the Department of Labor.  Mr. Sam's application process took about three hours, which includes a very long application and a skills test.  Luckily Mr. Sam has access to internet, the only way one can apply, he speaks English and he is educated.  Even so, he remarked at how difficult the process was, which is probably why only 17% of Floridians who are eligible actually received these benefits. 

Florida also provides a maximum weekly benefit of $275, which is the fifth-lowest amount in the country.  Mr. Sam should qualify for the maximum benefit which means $1,100 per month for three months (benefits cut off after 12 weeks).