Mr. Sam and I will be celebrating 10 years of marriage this fall. As a result, I'm starting to think about what we've accomplished, together, in those 10 years.
We started our financial journey together, before we got married, but January 2007 was the beginning of our effort to pay down our unsecured debt and implement a debt free life. The journey was mostly inspired by the fact that I wanted and needed a new car, but did not want a car payment. It was the summer of 2006 and my car, then a 1999, had hit expensive repair time. I had made some repairs to it and it was calling for more repairs and I was fed up. So, I was doing some internet research and I came across a Dave Ramsey article about car payments. I read some more on Dave's web site and I later checked out one of his books from my local library and read The Total Money Makeover. I read some other books as well like The Millionaire Next Door and others.
We were in the middle of getting ready for our wedding, so I did not have time to implement the plan. Instead, over the December holidays of 2006 (after the wedding and honeymoon), I reread TMM and we started working the plan. We began with Dave's baby steps which we also modified a bit as we moved forward (side note, my husband is a lapsed Catholic and I'm not religious, while Dave's books and message can be a bit preachy we just ignored those parts).
We began 2007 with a financial reckoning. First, we combined our assets and our combined net worth was $807,539. We were holding real estate valued at $1.27 million dollars (that changed dramatically the next year). Our retirement savings was at $216,184. We had the $1000 emergency fund already covered (TMM baby step one).
Second, we had a lot of debt. We had $679,520 in mortgage debt, our primary home, three rental properties and a piece of land. And, we had $50,946 in unsecured debt, $27,000 for Mr. Sam's student loans (MBA) and the rest credit card debt. So, we began 2007 with TMM baby step two, pay off all debts but the mortgage. We had added up all our debt, we had a chart showing interest rates, minimum payments and totals. I took over paying all the bills (prior to marriage I paid our joint bills and my bills, but Mr. Sam handled his own bills). So, we began working the debt snowball.
More on debt later, I also want to look at where we are, 10 years later, with careers, education, family life, savings, real estate, car habits, etc.
Showing posts with label General Musings. Show all posts
Showing posts with label General Musings. Show all posts
Monday, June 27, 2016
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, July 31, 2014
Mr. Sam's 401K
After more than a year, Mr. Sam is finally eligible for his 401k. And it even comes with a match. Hooray!
To start, since we are having a year of financial set backs and struggles we have set the contribution amount at a reasonable number. We will, hopefully increase it as we work it into our budget.
To start, since we are having a year of financial set backs and struggles we have set the contribution amount at a reasonable number. We will, hopefully increase it as we work it into our budget.
Monday, July 14, 2014
Fidelity Faux Paux
So, yesterday I spent some time on our finances, paying bills, updating our savings chart, updating our net worth numbers, etc.
I was on the Fidelity site to determine if some of my recent limit orders had gone through (trying not to let my IRA money sit idle in cash). I'm a big fan of Fidelity and, in fact, I've been a Fidelity customer for many years. I generally have nothing but good to say about them.
But, of course you knew a but was coming, I'm puzzled by something that I just noticed. When I pull up a statement online (and same for paper, because I checked), my name is nowhere on the statement. The statement is addressed to my husband (alone). It lists our various accounts, mine are listed first, I assume because they are older accounts but it doesn't reference ownership. These are not joint accounts, these are accounts that are individually owned by each of us (we do have a joint trading account) and in fact were established prior to marriage.
Am I bothered by this, yes. And, I'll tell you why. While I very much agree that the money on this statement is "ours", if you look at the numbers, I own, individually, the bulk of the money in these accounts. And that is simply because I've been saving for retirement for a longer period of time. The statement should be addressed to both of us and the accounts ought to be listed by ownership.
I was on the Fidelity site to determine if some of my recent limit orders had gone through (trying not to let my IRA money sit idle in cash). I'm a big fan of Fidelity and, in fact, I've been a Fidelity customer for many years. I generally have nothing but good to say about them.
But, of course you knew a but was coming, I'm puzzled by something that I just noticed. When I pull up a statement online (and same for paper, because I checked), my name is nowhere on the statement. The statement is addressed to my husband (alone). It lists our various accounts, mine are listed first, I assume because they are older accounts but it doesn't reference ownership. These are not joint accounts, these are accounts that are individually owned by each of us (we do have a joint trading account) and in fact were established prior to marriage.
Am I bothered by this, yes. And, I'll tell you why. While I very much agree that the money on this statement is "ours", if you look at the numbers, I own, individually, the bulk of the money in these accounts. And that is simply because I've been saving for retirement for a longer period of time. The statement should be addressed to both of us and the accounts ought to be listed by ownership.
Monday, June 23, 2014
Rainy Day News
News today on Americans lack of savings. Since our emergency fund has taken a hit this year (more on that later), I can relate to this news. Our emergency fund is down to less than 3 months of expenses, which causes me great consternation.
Most of the time we are able to plan ahead for expenses, meaning that if we have a house project, like our recent new roof, we save up for it and then we incur the expenses. We were not able to do that with the roof because we had to replace the roof prior to the rainy season here in Florida. We had a recent family vacation, planned by family, that we were similarly not able to plan for (and our vacation savings fund was depleted due to a prior planned for vacation). And now, we've got car issues (more on that later).
But, putting all that backward slide aside, we generally do well with our savings because we have a system in which we put savings first on our list of expenses. Which means we pay ourselves first and second. First is our pre-pay savings, meaning the 401k. And, second is our automatic savings which goes for things like the emergency fund, the travel fund, annual and semi annual expenses like taxes and insurance, etc. But, our automatic savings is based on planning and when our planning is either wrong or we have unplanned expenses we run into trouble - which is where we are at now.
Most of the time we are able to plan ahead for expenses, meaning that if we have a house project, like our recent new roof, we save up for it and then we incur the expenses. We were not able to do that with the roof because we had to replace the roof prior to the rainy season here in Florida. We had a recent family vacation, planned by family, that we were similarly not able to plan for (and our vacation savings fund was depleted due to a prior planned for vacation). And now, we've got car issues (more on that later).
But, putting all that backward slide aside, we generally do well with our savings because we have a system in which we put savings first on our list of expenses. Which means we pay ourselves first and second. First is our pre-pay savings, meaning the 401k. And, second is our automatic savings which goes for things like the emergency fund, the travel fund, annual and semi annual expenses like taxes and insurance, etc. But, our automatic savings is based on planning and when our planning is either wrong or we have unplanned expenses we run into trouble - which is where we are at now.
Monday, January 20, 2014
Wrap Your Mind Around These Numbers
Nbc.news reports that the richest 85 people in the world now hold the same amount of wealth held by 3.5 billion (yes, B - billion) poorest in the world. Said another way, half of the world's population, the poorest half, holds the same amount of wealth as the 85 richest individuals.
Mind is boggled.
Mind is boggled.
Thursday, January 2, 2014
Red Lobster and the Middle Class
Interesting article from cnn.com about the impending demise of Red Lobster and the continued squeeze of the middle class.
Reading the author's experience about going out to eat at Red Lobster as a kid, I thought back to my own experiences. While I was raised by professionals, college professors, and we had a vacation home (cabin), we actually had very little free money growing up. I think that was due to the fact that my parents income was somewhat sporadic in that Dad was paid only 9 months out of the year and Mom's income was based on then number of courses she taught. We also probably spent more money on housing and recreation than a normal family in that we had a house on the water, the vacation cabin, and my parents prioritized experiences over things. So, we did lots of camping, sailing, skiing, traveling and that all cost money. They also were doing the right things with money, putting it away for college funds and their own retirement. As a result, we didn't have free money for eating out. Eating out was for super special occasions and mostly when Grandpa was in town for business. I can remember Grandpa taking my brother and I out for dinner. As a family, I remember just a few times going out to some kind of all you can eat buffet (I also remember getting sick b/c I ended up eating too much or the foods were too rich). Mostly though if we ate out it was never at a chain restaurant. As a result, I don't have the fondness or nostalgia for chain eating.
Today, we eat out quite a bit (an issue I am always working on) but we still hardly ever eat at a national chain. I much prefer eating at mom and pop places.
Did you have a favorite chain restaurant when you were a kid?
Reading the author's experience about going out to eat at Red Lobster as a kid, I thought back to my own experiences. While I was raised by professionals, college professors, and we had a vacation home (cabin), we actually had very little free money growing up. I think that was due to the fact that my parents income was somewhat sporadic in that Dad was paid only 9 months out of the year and Mom's income was based on then number of courses she taught. We also probably spent more money on housing and recreation than a normal family in that we had a house on the water, the vacation cabin, and my parents prioritized experiences over things. So, we did lots of camping, sailing, skiing, traveling and that all cost money. They also were doing the right things with money, putting it away for college funds and their own retirement. As a result, we didn't have free money for eating out. Eating out was for super special occasions and mostly when Grandpa was in town for business. I can remember Grandpa taking my brother and I out for dinner. As a family, I remember just a few times going out to some kind of all you can eat buffet (I also remember getting sick b/c I ended up eating too much or the foods were too rich). Mostly though if we ate out it was never at a chain restaurant. As a result, I don't have the fondness or nostalgia for chain eating.
Today, we eat out quite a bit (an issue I am always working on) but we still hardly ever eat at a national chain. I much prefer eating at mom and pop places.
Did you have a favorite chain restaurant when you were a kid?
Thursday, December 19, 2013
Stock Sale - Update
Back in October I posted about my hot stock dilemma and trying to figure out when and how to plan my stock sales (since I'm more of a buy and hold gal). In particular I had a stock that was up 500% since I purchased it and I was trying to figure out if I should sell it or not.
I ended up selling the stock and making $4300 in profit (tax free since I hold my stock in my Roth IRA) but I did have regrets, what if the stock kept going up and up? So I decided to calendar a two month follow up (which is today) to check and see the status of the stock I sold. I sold the stock at $32, it has hit $34, but today it is at $28.
So, how do I feel. I feel pleased, right now it looks like I made a good decision. I sold close to the peak based on expert research telling me to sell and that research seems to have been correct. We shall see, I will check again next year.
I ended up selling the stock and making $4300 in profit (tax free since I hold my stock in my Roth IRA) but I did have regrets, what if the stock kept going up and up? So I decided to calendar a two month follow up (which is today) to check and see the status of the stock I sold. I sold the stock at $32, it has hit $34, but today it is at $28.
So, how do I feel. I feel pleased, right now it looks like I made a good decision. I sold close to the peak based on expert research telling me to sell and that research seems to have been correct. We shall see, I will check again next year.
Thursday, November 21, 2013
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%.
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%.
Thursday, November 14, 2013
Time for 2014 Goal Planning
Since it is November, it is time to start thinking about our 2014 annual spending plan and our 2014 savings goals.
First on the list, 2014 IRA savings. As I previously posted, I have already set up our 2014 IRA savings account at CapitalOne 360 (f/n/a ING). The 2014 contribution limits for IRAs are holding steady, so we can each contribute $5,500 to our non-deductible IRAs.
Second, 2014 401k contributions, I will contribute $17,500 to my 401k at work (again the limits are not increasing next year). We need to figure out if Mr. Sam will be eligible for a 401k at his new job in 2014. If he is not eligible, then he may be able to contribute to a deductible IRA (see above) to get a bit of tax savings. But, regardless of whether he is eligible for 401k we will sock away $17,500 anyways. Yes it will be after tax money so we will lose out on that advantage but we will still put that money into the trading account.
Third, I assume we will put money into the emergency fund and for house projects.
We will need to decide whether it makes sense to continue to pay down the mortgage principal on our primary home. While I continue to have the goal of being debt free and paying off the mortgage on our primary home could provide significant insurance savings, we really are not saving much interest by paying early because our mortgage interest rate is so low (2.75%).
I also think we need to start a savings account for a replacement car/truck. I bought my car, a 2006, in 2008. I just put about $3000 into it so, even though it is 7 years old, it should be good for quite some time.
But, Mr. Sam's truck, which we bought used in 2005, is more than 10 years old and not in the best condition these days. He would prefer to keep it and have me buy a newer car and he would take my current car for his work car. Then we would have the truck to use for house projects and the like when we need it. But that means we would have 4 cars (we also have an antique weekend car) and that is a lot of insurance. I'm also not keen on having 4 cars to store/park. As such, I'm more inclined to replace Mr. Sam's truck with a newer and nicer truck (something with a bigger cab and shorter bed and a smoother ride.
Second, 2014 401k contributions, I will contribute $17,500 to my 401k at work (again the limits are not increasing next year). We need to figure out if Mr. Sam will be eligible for a 401k at his new job in 2014. If he is not eligible, then he may be able to contribute to a deductible IRA (see above) to get a bit of tax savings. But, regardless of whether he is eligible for 401k we will sock away $17,500 anyways. Yes it will be after tax money so we will lose out on that advantage but we will still put that money into the trading account.
Third, I assume we will put money into the emergency fund and for house projects.
We will need to decide whether it makes sense to continue to pay down the mortgage principal on our primary home. While I continue to have the goal of being debt free and paying off the mortgage on our primary home could provide significant insurance savings, we really are not saving much interest by paying early because our mortgage interest rate is so low (2.75%).
I also think we need to start a savings account for a replacement car/truck. I bought my car, a 2006, in 2008. I just put about $3000 into it so, even though it is 7 years old, it should be good for quite some time.
But, Mr. Sam's truck, which we bought used in 2005, is more than 10 years old and not in the best condition these days. He would prefer to keep it and have me buy a newer car and he would take my current car for his work car. Then we would have the truck to use for house projects and the like when we need it. But that means we would have 4 cars (we also have an antique weekend car) and that is a lot of insurance. I'm also not keen on having 4 cars to store/park. As such, I'm more inclined to replace Mr. Sam's truck with a newer and nicer truck (something with a bigger cab and shorter bed and a smoother ride.
Monday, November 4, 2013
2013 Savings Goals - November Update
(1) Max out 401k(s) - $26,231 (75%) (goal is $35,000)
(2) Max out IRA(s) - $11,000 (100%) (goal is $11,000) completed
(3) Add to e/r fund - $8,000 (80%) (goal is $10,000)
(4) Pay down mortgage - $4,150 (83%) (goal is $5,000)
(5) Trading account fund - $3,900 (78%) (goal is $5,000)
(6) House projects - $2,000 (67%) (goal is $3,000)
Total: $55,281 (80%)
At present we are about $3100 behind on our goals.
We have just under two (2) months to go to complete our goals. And, like most years, it will be a challenge to come close to hitting our goal numbers. For at least one category it will be impossible to meet our goals since Mr. Sam was unable to continue contributing to his 401k post layoff. While we continue to stretch towards our original goals as we close the year out, I remind myself that I will be content if we exceed our savings goals from last year (meaning our re-calibrated 2013 savings goal is really $63,000). That would mean that we need to save at least another $7,750 which will be a challenge. I will max out my 401k which is about another $3000, we will meet our emergency account savings goal, another $2000, and we will meet our mortgage principal prepayment efforts, another $850. And, that leaves another $2000 we need to scrape together to exceed our 2012 savings numbers which I really would like to do even with Mr. Sam's layoff and his subsequent salary reduction at the new job.
(2) Max out IRA(s) - $11,000 (100%) (goal is $11,000) completed
(3) Add to e/r fund - $8,000 (80%) (goal is $10,000)
(4) Pay down mortgage - $4,150 (83%) (goal is $5,000)
(5) Trading account fund - $3,900 (78%) (goal is $5,000)
(6) House projects - $2,000 (67%) (goal is $3,000)
Total: $55,281 (80%)
At present we are about $3100 behind on our goals.
We have just under two (2) months to go to complete our goals. And, like most years, it will be a challenge to come close to hitting our goal numbers. For at least one category it will be impossible to meet our goals since Mr. Sam was unable to continue contributing to his 401k post layoff. While we continue to stretch towards our original goals as we close the year out, I remind myself that I will be content if we exceed our savings goals from last year (meaning our re-calibrated 2013 savings goal is really $63,000). That would mean that we need to save at least another $7,750 which will be a challenge. I will max out my 401k which is about another $3000, we will meet our emergency account savings goal, another $2000, and we will meet our mortgage principal prepayment efforts, another $850. And, that leaves another $2000 we need to scrape together to exceed our 2012 savings numbers which I really would like to do even with Mr. Sam's layoff and his subsequent salary reduction at the new job.
Tuesday, October 15, 2013
2013 IRA
Today, I funded my 2013 IRA, $5,500 into my traditional, non-deductible IRA. Once the transfer from my Wells Fargo account to my Fidelity traditional IRA clears, I will immediately convert the traditional IRA to a Roth IRA. Since 2010, the income limits for Roth IRAs were removed by the Federal government, but one still has to contribute to a traditional and then convert to a Roth. On Fidelity, it is easy to do. I convert the funds immediately, while it is still in cash, as I don't want to incur any gains that I have to pay taxes on prior to conversion.
Thereafter, my plan is to watch the markets this week which have been down and up due to the government shut down and the debt ceiling debate. I don't normally try to time the market, but if the Dow dips below 15,000 again this week I will make some investments. For our IRAs, we invest in individual stocks, i.e. Apple or Ford, etc. I like to use the expert preset strategies to find well rated stocks that are on sale.
Additionally, I have set up our 2014 IRA savings account over at CapitalOne 360 (formerly known as ING)
Thereafter, my plan is to watch the markets this week which have been down and up due to the government shut down and the debt ceiling debate. I don't normally try to time the market, but if the Dow dips below 15,000 again this week I will make some investments. For our IRAs, we invest in individual stocks, i.e. Apple or Ford, etc. I like to use the expert preset strategies to find well rated stocks that are on sale.
Additionally, I have set up our 2014 IRA savings account over at CapitalOne 360 (formerly known as ING)
Monday, October 14, 2013
Good News - Salary Adjustment
Last month I posted on the impact of The Great Recession on our career and salary . Overall, our salaries from our professional careers were down between 2008-2013.
But, I am happy to report that I just received an upward salary adjustment, a 7% increase!, which means a couple of things. First, this kind of increase outpaces inflation. Second, this increase almost brings me back to my pay level in 2008. Third, this increase almost makes up for Mr. Sam's pay cut that he took at his new job (post layoff). Fourth, this big increase reflects on the kind of work I am doing, the level of complexity, the results I am attaining and the fact that my company is placing an increased value on me (it feels good).
I think, although I've not done the nitty gritty math, that our salaries are still down between 2008-2013, but now down just a bit.
But, I am happy to report that I just received an upward salary adjustment, a 7% increase!, which means a couple of things. First, this kind of increase outpaces inflation. Second, this increase almost brings me back to my pay level in 2008. Third, this increase almost makes up for Mr. Sam's pay cut that he took at his new job (post layoff). Fourth, this big increase reflects on the kind of work I am doing, the level of complexity, the results I am attaining and the fact that my company is placing an increased value on me (it feels good).
I think, although I've not done the nitty gritty math, that our salaries are still down between 2008-2013, but now down just a bit.
Thursday, October 10, 2013
Small Fries
Last weekend, Mr. Sam and I rented a two movies from Red Box and one of our selections didn't play. This has happened to us before, I would guesstimate at 1 out of 20 movies. I really like the Red Box system but I have never, until today, figured out how to get a movie credit or a refund. And, something about not being able to get that $2 or $1 back really rubs me the wrong way.
I have the same aggravations with ATM fees and other small fees. For a while, Home Depot kept charging us $2 on our 0% Home Depot credit card bill. I would have to call each month and get them to refund the $2 charge which they could never explain.
So, anyways, the secret to getting a Red Box credit is as follows.
(1) Google "red box how to get a refund";
(2) Click on the result that is labeled "what's the red box refund policy"
(3) Under the policy, click to talk to customer care and explain problem.
Red Box gave me two movie credits which I thought was reasonable for my request.
I have the same aggravations with ATM fees and other small fees. For a while, Home Depot kept charging us $2 on our 0% Home Depot credit card bill. I would have to call each month and get them to refund the $2 charge which they could never explain.
So, anyways, the secret to getting a Red Box credit is as follows.
(1) Google "red box how to get a refund";
(2) Click on the result that is labeled "what's the red box refund policy"
(3) Under the policy, click to talk to customer care and explain problem.
Red Box gave me two movie credits which I thought was reasonable for my request.
Wednesday, October 9, 2013
2012 Taxes
Today I (Mr. Sam is out of town) met with the CPA and completed our 2012 taxes. We owe the IRS, which is par for course sine we got audited a few years back, so I will send off the check and be thankful we are done with our 2012 taxes.
We do need to work on getting back on track so that we are filing our taxes in a timely manner rather than seeking an extension each year. We also need to work on getting what we pay during the year, our itemized deductions and our withholdings in better balance. We have made some progress this time around in that we owe less than we did a two years ago, but I'd really like to get it down to where I stroke a check for less than $1,000.
We do need to work on getting back on track so that we are filing our taxes in a timely manner rather than seeking an extension each year. We also need to work on getting what we pay during the year, our itemized deductions and our withholdings in better balance. We have made some progress this time around in that we owe less than we did a two years ago, but I'd really like to get it down to where I stroke a check for less than $1,000.
Wednesday, September 18, 2013
2008 - 2013 The Great Recession Check Up - Part III
Okay, so far we are one and one. While we are doing well on our savings/retirement plan, see Part II, our occupation based salary is flat/slightly down after five years, see Part I.
Real Estate
First the good news, we are making decent progress in paying down our primary mortgage. Last year we refinanced into a 15 year term with a 2.75% interest rate which will save us (between the reduced term and the reduced interest) $180,000 over the life of the mortgage.
The other good news we have is that all three of rental properties are rented and paying for themselves.
So, now the bad news. We live in South Florida and our rental properties are located in South Florida and if you know anything about the real estate bubble you know South Florida got hit hard.
In 2008 our primary home was valued at $465,000. At present I have the value at $399,000 which is based on the very thorough appraisal we had done last year as part of our refinance.
In 2008, our three rental properties and our vacant land were valued at a total of $823,920. At present, I have our investment properties valued at a total of $606,350.
So, in total, over five years we have lost, in equity, $283,550. Actual lost equity is likely even higher in that I have no idea if we could sell any of our properties for the current value.
Real Estate
First the good news, we are making decent progress in paying down our primary mortgage. Last year we refinanced into a 15 year term with a 2.75% interest rate which will save us (between the reduced term and the reduced interest) $180,000 over the life of the mortgage.
The other good news we have is that all three of rental properties are rented and paying for themselves.
So, now the bad news. We live in South Florida and our rental properties are located in South Florida and if you know anything about the real estate bubble you know South Florida got hit hard.
In 2008 our primary home was valued at $465,000. At present I have the value at $399,000 which is based on the very thorough appraisal we had done last year as part of our refinance.
In 2008, our three rental properties and our vacant land were valued at a total of $823,920. At present, I have our investment properties valued at a total of $606,350.
So, in total, over five years we have lost, in equity, $283,550. Actual lost equity is likely even higher in that I have no idea if we could sell any of our properties for the current value.
Wednesday, September 11, 2013
So, More on the Good News
I wanted to share more about Mr. Sam's new job.
First, the positives. Mr. Sam obtained new employment while he was still receiving severance from his old employer. As such, we never had a real gap in income stream. Mr. Sam also was able to obtain a few weeks of unemployment compensation from the State of Florida and we continue to have health insurance, paid for by his employer, until October.
The new job is with a much smaller company than Mr. Sam is used to working for. But, that will provide him with more autonomy and opportunities for growth. The new position is also an exact fit for his skills and experience. Finally, the new job is located in reasonable proximity to our home (his commute is about the same distance it was before).
Second, the negatives. Mr. Sam is not overly excited about the compensation. While he believes he is being paid within the proper compensation band for his experience, education, etc., he is on the absolute low end with the new employer. Furthermore, the benefits are not nearly as generous as his last job, which provided a 20% match on the 401k along with such awesome health benefits that I opted for their insurance as well. The new company has also had a lot of turn over and flux with leadership, which is not surprising based on their growth and the size of the company. And while the unsettled nature of this company may be a negative as I mentioned above, it is also a positive in that there are some real growth opportunities.
Since this is my blog and not Mr. Sam's blog, I think, overall, that this is a positive step in Mr. Sam's career. While the pay and benefits are a bit reduced, the chance for growth and leadership may mean that he ends up in a higher pay grade within 6 months to a year. And whether or not the pay grade increases, he will be gaining skills and experience (hopefully) that he never seemed to get with his past employers.
First, the positives. Mr. Sam obtained new employment while he was still receiving severance from his old employer. As such, we never had a real gap in income stream. Mr. Sam also was able to obtain a few weeks of unemployment compensation from the State of Florida and we continue to have health insurance, paid for by his employer, until October.
The new job is with a much smaller company than Mr. Sam is used to working for. But, that will provide him with more autonomy and opportunities for growth. The new position is also an exact fit for his skills and experience. Finally, the new job is located in reasonable proximity to our home (his commute is about the same distance it was before).
Second, the negatives. Mr. Sam is not overly excited about the compensation. While he believes he is being paid within the proper compensation band for his experience, education, etc., he is on the absolute low end with the new employer. Furthermore, the benefits are not nearly as generous as his last job, which provided a 20% match on the 401k along with such awesome health benefits that I opted for their insurance as well. The new company has also had a lot of turn over and flux with leadership, which is not surprising based on their growth and the size of the company. And while the unsettled nature of this company may be a negative as I mentioned above, it is also a positive in that there are some real growth opportunities.
Since this is my blog and not Mr. Sam's blog, I think, overall, that this is a positive step in Mr. Sam's career. While the pay and benefits are a bit reduced, the chance for growth and leadership may mean that he ends up in a higher pay grade within 6 months to a year. And whether or not the pay grade increases, he will be gaining skills and experience (hopefully) that he never seemed to get with his past employers.
Thursday, August 22, 2013
FitBit Data - Update # 1
Earlier I posted about my new FitBit and improving my fitness through data.
A week or so into using the FitBit, I've determined the following. I am averaging about 5,400 steps a day which is well below my goal of 10,000 steps per day. On exercise days, Monday, Wednesday and Friday, I obviously do better and approach 8,000 to 8,500 steps on average. On non-exercise days (Tuesday and Thursday) I've improved a bit by watching my FitBit data, and I've moved my average step count from about 3,500 to 4,000 steps on average. Certain guidance I've found suggests a reasonable goal of improving week over week step numbers by 20%
Most surprising is my weekend step count which is dismal. On days I have the most free time, it appears that I am stepping/moving the least. I do know what happens, I get up and I go out to run errands (Saturday) which doesn't involve that much walking since I'm in my car. On Sunday, I tend to either be at the office or relaxing at home.
Analyzing the tracking data from my FitBit also reveals that my activity level is color coded. My exercise steps are coded as green, less active is orange and sedentary is red. I can't find any information as to whqt the colors are supposed to mean, but I can guess.
I am working on setting up a TV/DVD player in the garage and I have a plan to do Zumba, which involves lots of steps, twice a week. But, so far, I've been having technology problems. Yesterday I had the video working but not the sound, then in trying to get the sound working I lost the video. Mr. Sam said he would work on these issues for me today (I hope he does).
Otherwise, I need to walk Snarfle the dog when I get home each night.
A week or so into using the FitBit, I've determined the following. I am averaging about 5,400 steps a day which is well below my goal of 10,000 steps per day. On exercise days, Monday, Wednesday and Friday, I obviously do better and approach 8,000 to 8,500 steps on average. On non-exercise days (Tuesday and Thursday) I've improved a bit by watching my FitBit data, and I've moved my average step count from about 3,500 to 4,000 steps on average. Certain guidance I've found suggests a reasonable goal of improving week over week step numbers by 20%
Most surprising is my weekend step count which is dismal. On days I have the most free time, it appears that I am stepping/moving the least. I do know what happens, I get up and I go out to run errands (Saturday) which doesn't involve that much walking since I'm in my car. On Sunday, I tend to either be at the office or relaxing at home.
Analyzing the tracking data from my FitBit also reveals that my activity level is color coded. My exercise steps are coded as green, less active is orange and sedentary is red. I can't find any information as to whqt the colors are supposed to mean, but I can guess.
I am working on setting up a TV/DVD player in the garage and I have a plan to do Zumba, which involves lots of steps, twice a week. But, so far, I've been having technology problems. Yesterday I had the video working but not the sound, then in trying to get the sound working I lost the video. Mr. Sam said he would work on these issues for me today (I hope he does).
Otherwise, I need to walk Snarfle the dog when I get home each night.
Thursday, August 15, 2013
Improvement Through Data - Fitness
As someone who has improved their finances by utilizing data, I am a fan of tracking data. For our personal finances, we use Quicken to track our spending, easily downloaded from the Wells Fargo web site. We also utilize an Excel spreadsheet to track our annual savings goals (when we were killing our $55,000 in unsecured debt we also used Excel to track our progress).
My employer has a fitness/health initiative (designed to reduce health insurance costs) and they recently offered use of a FitBit Zip which keeps track of steps, distance and calories burned through exercise. I recently set mine up and it is illuminating to see how little I move even though I exercise regularly and make an effort to walk during my day. On the days I exercise, walk 45 minutes three times a week, I accumulate about 7,500 steps which is considered light active. My goal is 10,000 steps per day which would push me into the active status
On days I don't exercise I only get about 3,500 steps although I do, already, take breaks during the day to get out from behind my desk and I try to take the stairs into and out of my office. Under 5000 steps per day can indicate a sedentary lifestyle sedentary lifestyle and the associated risk factors related to same.
I think the idea of tracking my activities will make me more accountable, to myself, and is likely to increase my activity. I know that I respond well to tracking my data and I'm interested in seeing how utilizing the FitBit can help me in this regard.
How about you, do you use any of these methods to track activity? Does tracking work for you?
My employer has a fitness/health initiative (designed to reduce health insurance costs) and they recently offered use of a FitBit Zip which keeps track of steps, distance and calories burned through exercise. I recently set mine up and it is illuminating to see how little I move even though I exercise regularly and make an effort to walk during my day. On the days I exercise, walk 45 minutes three times a week, I accumulate about 7,500 steps which is considered light active. My goal is 10,000 steps per day which would push me into the active status
On days I don't exercise I only get about 3,500 steps although I do, already, take breaks during the day to get out from behind my desk and I try to take the stairs into and out of my office. Under 5000 steps per day can indicate a sedentary lifestyle sedentary lifestyle and the associated risk factors related to same.
I think the idea of tracking my activities will make me more accountable, to myself, and is likely to increase my activity. I know that I respond well to tracking my data and I'm interested in seeing how utilizing the FitBit can help me in this regard.
How about you, do you use any of these methods to track activity? Does tracking work for you?
Wednesday, August 14, 2013
How Low Can You Limbo
In addition to our primary home mortgage, we have three other mortgages on our investment properties. In working on updating our net worth numbers today I realized that one of our investment property mortgages is now under $100,000 (specifically $97,061). Something about getting that loan number under $100,000 makes me very happy!!
We are also just a month away from getting our investment mortgage totals under $300,000. Which I will similarly celebrate next month. Gotta look for those silver linings.
We are also just a month away from getting our investment mortgage totals under $300,000. Which I will similarly celebrate next month. Gotta look for those silver linings.
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