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).
Showing posts with label Mind Over Money. Show all posts
Showing posts with label Mind Over Money. Show all posts
Friday, April 22, 2016
Tuesday, December 1, 2015
End of the Year Updates
Well it is December 1, 2015 and I still never got my 2015 savings/debt killing Excel spreadsheet chart from Mr. Sam. It has been that kind of year, new baby, maternity leave, new baby expenses, balancing work with new baby, child care expenses, etc. We also converted a rental property to a family property which brought along a ton of expenses as well.
These were my goals from May of this year, posted on one of the other personal finance sites:
(1) Max out 401ks: Goal $36,000
(2) Max out IRAs: Goal $11,000
(3) College fund for Baby Sam: Goal $5,000
(4) Add to emergency fund: Goal $10,000
(4) Pay off baby debt: Goal $0, started with $7000
(5) Pay off Mr. Sam's truck loan: Goal $0. started with $7500
(6) Save for nused car for me: Goal is $20,000. This is two year goal, so this year's goal is $10,000)
(7) Get total debt under $500,000: $519,000 was thestart of the year number, goal is $499,000, difference of $20,000
Savings goal of $72,000 and
Debt killing goal of $34,500.
So let's start with the bad news. We only put away $2100 for our 2015 IRAs, we can continue to invest for 2015 until April 15, 2016 so we have some time next year to finish this goal.
Baby debt, well it really morphed into debt, we have rental property conversion debt, some baby debt and just other cr_p debt that popped up this year since our finances were pretty crazy this year. At present, the misc. credit card debt is $6275. Can we kill it by year end? Maybe, but doubtful. But, I am working on it with renewed focus.
Nused car for me, didn't really happen at all this year, I put away $400 and that is it. I did spend some money on the car this year, about $1500 in repairs and the mechanic says I have about $4000 in repairs that could be done but were not necessary at the time. Need to work on this goal in 2016 as the time is coming, car will be 10 years old as of next year.
The good news, we are on track to max out our 401ks by the end of the year. At present we are at $33,009 and we will complete the $36,000 goal.
College fund for Baby Sam, we hit this goal as well and we have $5,781 in the 529 plan. About half of that was from us and the other half from family as we have asked for 529 contributions in lieu of gifts for birthdays, Christmas, etc.
Emergency fund, we are also on track for hitting this goal. We will have an additional $10,000 into the e/r fund by end of year. At present we have $19,215 in our e/r fund which sounds like a lot, but it really isn't when you take into account our investment properties. We have been working on rebuilding our fund after buying Mr. Sam's truck (we paid half in cash) and our IVF, pregnancy and birth expenses. I've never really figured out how much I want in the e/r fund, but I'd be more comfortable closer to $30,000. We do have $20,000 in other short term, liquid savings, for things like insurance, taxes, vacations, etc. So that money is also available if we really got in a jam.
Mr. Sam's truck, we are paying $500 a month, 0% loan and at present we have a $2500 balance. No current plan to pay ahead, but will be paid off early next year.
And as for getting our debt under $500,000, we easily hit that goal with $34,152 in debt paid off (even including the debts we added during the year). Our present debt number is $484,848.
So grand, estimated, total for 2015 savings will be: $53,881 (falling short by $18,119 of our 2015 goals).
And, grand, estimated, debt killing total for 2015 will be: $34,152 (which does not include additional debt payments that I plan to make) so we basically hit that goal.
Thoughts, how did your 2015 financial year go? What are you planning for 2016?
These were my goals from May of this year, posted on one of the other personal finance sites:
(1) Max out 401ks: Goal $36,000
(2) Max out IRAs: Goal $11,000
(3) College fund for Baby Sam: Goal $5,000
(4) Add to emergency fund: Goal $10,000
(4) Pay off baby debt: Goal $0, started with $7000
(5) Pay off Mr. Sam's truck loan: Goal $0. started with $7500
(6) Save for nused car for me: Goal is $20,000. This is two year goal, so this year's goal is $10,000)
(7) Get total debt under $500,000: $519,000 was thestart of the year number, goal is $499,000, difference of $20,000
Savings goal of $72,000 and
Debt killing goal of $34,500.
So let's start with the bad news. We only put away $2100 for our 2015 IRAs, we can continue to invest for 2015 until April 15, 2016 so we have some time next year to finish this goal.
Baby debt, well it really morphed into debt, we have rental property conversion debt, some baby debt and just other cr_p debt that popped up this year since our finances were pretty crazy this year. At present, the misc. credit card debt is $6275. Can we kill it by year end? Maybe, but doubtful. But, I am working on it with renewed focus.
Nused car for me, didn't really happen at all this year, I put away $400 and that is it. I did spend some money on the car this year, about $1500 in repairs and the mechanic says I have about $4000 in repairs that could be done but were not necessary at the time. Need to work on this goal in 2016 as the time is coming, car will be 10 years old as of next year.
The good news, we are on track to max out our 401ks by the end of the year. At present we are at $33,009 and we will complete the $36,000 goal.
College fund for Baby Sam, we hit this goal as well and we have $5,781 in the 529 plan. About half of that was from us and the other half from family as we have asked for 529 contributions in lieu of gifts for birthdays, Christmas, etc.
Emergency fund, we are also on track for hitting this goal. We will have an additional $10,000 into the e/r fund by end of year. At present we have $19,215 in our e/r fund which sounds like a lot, but it really isn't when you take into account our investment properties. We have been working on rebuilding our fund after buying Mr. Sam's truck (we paid half in cash) and our IVF, pregnancy and birth expenses. I've never really figured out how much I want in the e/r fund, but I'd be more comfortable closer to $30,000. We do have $20,000 in other short term, liquid savings, for things like insurance, taxes, vacations, etc. So that money is also available if we really got in a jam.
Mr. Sam's truck, we are paying $500 a month, 0% loan and at present we have a $2500 balance. No current plan to pay ahead, but will be paid off early next year.
And as for getting our debt under $500,000, we easily hit that goal with $34,152 in debt paid off (even including the debts we added during the year). Our present debt number is $484,848.
So grand, estimated, total for 2015 savings will be: $53,881 (falling short by $18,119 of our 2015 goals).
And, grand, estimated, debt killing total for 2015 will be: $34,152 (which does not include additional debt payments that I plan to make) so we basically hit that goal.
Thoughts, how did your 2015 financial year go? What are you planning for 2016?
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.
Thursday, June 5, 2014
Aspirational Housing
Great article by author Michael Lewis of The Blind Side fame regarding the perils of expensive housing. Even a very rich man like Michael Lewis couldn't keep up with renting a landmark mansion in his home town. Mr. Lewis' fun essay also documents the hidden costs of utilities, maintenance and furnishings for a much larger house.
I'm in a phase right now where many of my friends are selling their first or second home and upgrading into McMansion world. It is somewhat surreal for my husband and I to visit our friends/peers who have moved from reasonable rancher to gated community McMansion. Some of them bought during Florida's real estate bubble deflation so they got good deals, but it is still a whole different world. One of my friends, who moved into McMansion world in the last couple of years mentioned that she felt like she had to buy (or lease) a new car to keep up with her new neighbors.
My friends' homes are beautiful and sometimes its hard not to think envious thoughts about those new chef kitchens and especially the walk in closets. But, I have no desire to take on that kind of debt. I did have a refreshing conversation with a college friend recently and she is just a couple of years away from paying off her home in full. Great motivation for me as not having a home mortgage is a goal that is always in the back of my mind.
I'm in a phase right now where many of my friends are selling their first or second home and upgrading into McMansion world. It is somewhat surreal for my husband and I to visit our friends/peers who have moved from reasonable rancher to gated community McMansion. Some of them bought during Florida's real estate bubble deflation so they got good deals, but it is still a whole different world. One of my friends, who moved into McMansion world in the last couple of years mentioned that she felt like she had to buy (or lease) a new car to keep up with her new neighbors.
My friends' homes are beautiful and sometimes its hard not to think envious thoughts about those new chef kitchens and especially the walk in closets. But, I have no desire to take on that kind of debt. I did have a refreshing conversation with a college friend recently and she is just a couple of years away from paying off her home in full. Great motivation for me as not having a home mortgage is a goal that is always in the back of my mind.
Friday, March 14, 2014
Drum Roll - New Goal
CNN.com reports that the number of millionaires has hit a new high. Which got me thinking, because this survey of millionaires excludes their primary homes in the asset count.
So, the new goal is to hit the million dollar net worth mark without counting our primary home. And, looking at our networthiq.com numbers we are not too far from that mark. At present, our net worth is at $1,380,755 and our primary home's value is listed at $399,000 (value from our last appraisal in 2012). Which means that we are about $18,000 away from having a million dollar net worth without including our primary home.
Not too shabby.
So, the new goal is to hit the million dollar net worth mark without counting our primary home. And, looking at our networthiq.com numbers we are not too far from that mark. At present, our net worth is at $1,380,755 and our primary home's value is listed at $399,000 (value from our last appraisal in 2012). Which means that we are about $18,000 away from having a million dollar net worth without including our primary home.
Not too shabby.
Monday, March 10, 2014
Royal Screw Up
So, I have a pretty good system set up for our personal finances. I have a system for paying bills and for our savings that works off of our spending plant. But, every once in a while things go surprisingly wrong.
At the end of last month, February, I was getting ready to do some work travel and I made the decision to pay our home mortgage March payment in February. What was I thinking, well it seemed like I had lots of cash laying around our joint checking account, I knew I was traveling and I figured let me just take care of that big bill now instead of later.
Big mistake! Several auto transfers and other obligations drafted after I made this payment and I, of course, came up short. And further, of course, I had to try and fix this mistake while traveling. Ugh, ugh, ugh.
Two weeks later, I am still undoing the damage that was incurred.
At the end of last month, February, I was getting ready to do some work travel and I made the decision to pay our home mortgage March payment in February. What was I thinking, well it seemed like I had lots of cash laying around our joint checking account, I knew I was traveling and I figured let me just take care of that big bill now instead of later.
Big mistake! Several auto transfers and other obligations drafted after I made this payment and I, of course, came up short. And further, of course, I had to try and fix this mistake while traveling. Ugh, ugh, ugh.
Two weeks later, I am still undoing the damage that was incurred.
Monday, January 13, 2014
2014 Savings Goals - First Update
(1) Max out 401k(s) - $1,346 (goal is $35,000)
(2) Max out IRA(s) - $2,825 (goal is $11,000)
(3) Add to e/r fund - $400 (goal is $10,000)
(4) Roof project - $5 (goal is $5,000)
(5) Vehicle replacement - $5 (goal is $5,000)
(6) House projects - $100 (goal is $3,000)
Total: $4,681 (Goal is $69,000)
I don't have my new 2014 Excel spreadsheet set up, so I've not calculated all the percentage complete for the various goals. I did calculate total and I estimate that we are presently ahead on our 2014 goals by about $2,000. I still need to set up auto transfers for the roof and vehicle accounts.
(2) Max out IRA(s) - $2,825 (goal is $11,000)
(3) Add to e/r fund - $400 (goal is $10,000)
(4) Roof project - $5 (goal is $5,000)
(5) Vehicle replacement - $5 (goal is $5,000)
(6) House projects - $100 (goal is $3,000)
Total: $4,681 (Goal is $69,000)
I don't have my new 2014 Excel spreadsheet set up, so I've not calculated all the percentage complete for the various goals. I did calculate total and I estimate that we are presently ahead on our 2014 goals by about $2,000. I still need to set up auto transfers for the roof and vehicle accounts.
Wednesday, January 1, 2014
New Years Resolutions
I am a big fan of new years resolutions, goal planning, goal tracking, etc. I've started to put together my list of resolutions for 2014 and I'm up to 12 so far and none of those resolutions relate to finances. Eight of my draft resolutions relate to health and fitness.
I learned back in psychology that it takes 4 weeks to develop a new habit. Indeed, one of the reasons rehab is 28 days is based on the 4 week new habit model. Today, I read an article over on today.com that it actually takes closer to 66 days to establish a new habit.
So, if today is day 1 of a new behavior, stick with it for a couple of months and it should become an actual habit.
Here is to a happy, healthy and prosperous 2014.
I learned back in psychology that it takes 4 weeks to develop a new habit. Indeed, one of the reasons rehab is 28 days is based on the 4 week new habit model. Today, I read an article over on today.com that it actually takes closer to 66 days to establish a new habit.
So, if today is day 1 of a new behavior, stick with it for a couple of months and it should become an actual habit.
Here is to a happy, healthy and prosperous 2014.
Tuesday, December 31, 2013
2013 Savings Goals - Final Report (Edited)
(1) Max out 401k(s) - $29,695 (85%) (goal is $35,000)
(2) Max out IRA(s) - $11,000 (100%) (goal is $11,000) completed
(3) Add to e/r fund - $10,800 (108%) (goal is $10,000) completed
(4) Pay down mortgage - $5,000 (100%) (goal is $5,000) completed
(5) Trading account fund - $5,000 (100%) (goal is $5,000) completed
(6) House projects - $3,200 (107%) (goal is $3,000) completed
Total: $64,695 (94%)
Final report shows a deficit of $4,305 in our 2013 savings. But, as noted before, we exceeded our 2012 savings total of $62,446 and exceeded our 2011 savings total of $60,060. And, we did so even with Mr. Sam's layoff in July.
Additionally, when you add in Mr. Sam's 401k match of $3,501 (from prior employer) and my !surprise! 401k match of $5,000, our total savings in 2014 exceeds $73,000. That is a lot of money, and therefore we can't be disappointed in our efforts, our discipline, and our progress.
Happy New Year!
*Edited to reflect 12/30/14 auto transfers to emergency fund and house project account.
(2) Max out IRA(s) - $11,000 (100%) (goal is $11,000) completed
(3) Add to e/r fund - $10,800 (108%) (goal is $10,000) completed
(4) Pay down mortgage - $5,000 (100%) (goal is $5,000) completed
(5) Trading account fund - $5,000 (100%) (goal is $5,000) completed
(6) House projects - $3,200 (107%) (goal is $3,000) completed
Total: $64,695 (94%)
Final report shows a deficit of $4,305 in our 2013 savings. But, as noted before, we exceeded our 2012 savings total of $62,446 and exceeded our 2011 savings total of $60,060. And, we did so even with Mr. Sam's layoff in July.
Additionally, when you add in Mr. Sam's 401k match of $3,501 (from prior employer) and my !surprise! 401k match of $5,000, our total savings in 2014 exceeds $73,000. That is a lot of money, and therefore we can't be disappointed in our efforts, our discipline, and our progress.
Happy New Year!
*Edited to reflect 12/30/14 auto transfers to emergency fund and house project account.
Thursday, December 12, 2013
2013 Savings Goals - 5 Down
(1) Max out 401k(s) - $28,327 (80%) (goal is $35,000)
(2) Max out IRA(s) - $11,000 (100%) (goal is $11,000) completed
(3) Add to e/r fund - $10,000 (100%) (goal is $10,000) completed
(4) Pay down mortgage - $5,000 (100%) (goal is $5,000) completed
(5) Trading account fund - $5,000 (100%) (goal is $5,000) completed
(6) House projects - $3,000 (100%) (goal is $3,000) completed
Total: $62,327 (90%)
Completed, completed, completed - feels fun to type that five times in a row.
In July when Mr. Sam was laid off, I assumed we would just have to throw our 2013 savings goals out the window. But, he was able to find reemployment before his severance ran out. And while he took a pay cut, I received a raise that off set his pay cut so overall our household income remained the same. Even so, we had to work hard to catch up since I had put many of our savings efforts on hold while he was job searching.
I have one more pay check before the end of the year, so the 401k number will increase and, as a result, we will exceed our savings from 2012 and come close to saving $63,000 in 2013.
(2) Max out IRA(s) - $11,000 (100%) (goal is $11,000) completed
(3) Add to e/r fund - $10,000 (100%) (goal is $10,000) completed
(4) Pay down mortgage - $5,000 (100%) (goal is $5,000) completed
(5) Trading account fund - $5,000 (100%) (goal is $5,000) completed
(6) House projects - $3,000 (100%) (goal is $3,000) completed
Total: $62,327 (90%)
Completed, completed, completed - feels fun to type that five times in a row.
In July when Mr. Sam was laid off, I assumed we would just have to throw our 2013 savings goals out the window. But, he was able to find reemployment before his severance ran out. And while he took a pay cut, I received a raise that off set his pay cut so overall our household income remained the same. Even so, we had to work hard to catch up since I had put many of our savings efforts on hold while he was job searching.
I have one more pay check before the end of the year, so the 401k number will increase and, as a result, we will exceed our savings from 2012 and come close to saving $63,000 in 2013.
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.
Monday, October 7, 2013
Investment Property Debt
Hit a milestone this month with our investment property debt, at present we owe less than $300,000 on our investment properties.
Feels good.
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.
Friday, August 2, 2013
It is Expensive to be Poor
If you have never read Nickel and Dimed by Barbara Ehrenreich, I highly recommend it. At this point, the book is probably a bit dated since the events written about took place around 2000. But in it Ms. Ehrenreich takes a series of low paying jobs and tries to make ends meet. If my recollection is correct, she actually starts her journey with enough money to find an apartment and she has a car (which she notes puts her well ahead of many of the folks in her travels).
Today, I read an nbc.com article that highlighted many of these issues. Yolanda Williams, the woman featured in this article, is trying to support an adult daughter, her disabled husband on less than $300 every two weeks. She spends 28 hours a week commuting by bus to work and to school. She also struggles to afford medication and treatment for her and her husband's diabetes treatment (which likely means more expensive treatment down the road).
It is distressing to hear about this woman, who is working so very hard, but doesn't seem to be making much progress.
Today, I read an nbc.com article that highlighted many of these issues. Yolanda Williams, the woman featured in this article, is trying to support an adult daughter, her disabled husband on less than $300 every two weeks. She spends 28 hours a week commuting by bus to work and to school. She also struggles to afford medication and treatment for her and her husband's diabetes treatment (which likely means more expensive treatment down the road).
It is distressing to hear about this woman, who is working so very hard, but doesn't seem to be making much progress.
Wednesday, July 31, 2013
Dreaming of Faraway Lands
I've been dreaming about a 10 day or two week trip to a particular country for more than 10 years. While we keep a "travel" savings account that we add to each pay period, I've decided to start a travel savings account for this dream trip.
It may seem odd to be thinking of a dream trip in the middle of dealing with Mr. Sam's layoff, his unemployment, and the uncertainty of our finances and future savings. But, I've been thinking about this trip for a long, long time and I want to start planning for it. Opening a savings account, which if necessary can be used for other expenses, is a way for me to do a little dreaming and planning without incurring any real costs.
It may seem odd to be thinking of a dream trip in the middle of dealing with Mr. Sam's layoff, his unemployment, and the uncertainty of our finances and future savings. But, I've been thinking about this trip for a long, long time and I want to start planning for it. Opening a savings account, which if necessary can be used for other expenses, is a way for me to do a little dreaming and planning without incurring any real costs.
Wednesday, June 19, 2013
When is a Sale Not a Sale?
Earlier, I wrote about the psychological impact of shopping without actually buying the product you are shopping for.
Now comes news on something I've suspected for many years, at some stores sale prices are not really sale prices. Rather, as Today News reports certain stores, including J.C. Penny, Kohl's and Macy's have been caught advertising and pricing items on sale when they are actually selling the product for the manufacturer's suggested price.
There are almost an unlimited number of techniques companies use to get us, the public, to part with our money either by increasing purchases and/or by increasing the purchase price. A "sale" when its not really a sale is just another technique but one that the savvy customer should be aware of by comparison shopping and doing their own research.
Now comes news on something I've suspected for many years, at some stores sale prices are not really sale prices. Rather, as Today News reports certain stores, including J.C. Penny, Kohl's and Macy's have been caught advertising and pricing items on sale when they are actually selling the product for the manufacturer's suggested price.
There are almost an unlimited number of techniques companies use to get us, the public, to part with our money either by increasing purchases and/or by increasing the purchase price. A "sale" when its not really a sale is just another technique but one that the savvy customer should be aware of by comparison shopping and doing their own research.
Tuesday, May 14, 2013
2013 Goals - May Update
(1) Max out 401k(s) - $15,736 (45%) (goal is $35,000)
(2) Max out IRA(s) - $6,013 (55%) (goal is $11,000)
(3) Add to e/r fund - $3,600 (36%) (goal is $10,000)
(4) Pay down mortgage - $1,660 (25%) (goal is $5,000)
(5) Trading account fund - $50 (1%) (goal is $5,000)
(6) House projects - $900 (30%) (goal is $3,000)
Total: $27,959 (41%)
We are about $1400 ahead of where we should be.
Otherwise, we continue to chug along. I've got some unbudgeted car expenses coming up, new tires, new breaks, tune up, etc. which is likely to run more than a thousand. My eating out/ordering in expenses continue to be high. The busier I am at work, and I'm super busy right now, the more I spend on eating in because I don't have the time or energy to prepare food. Last week I spent close to $100 on eating in (yikes!) which is way too much.
I was trying to get into networthiq today, and its not working. Another yikes! I love that site and I have a lot of data stored in it, so I'm trying not to freak out and hoping it will be back up and running shortly.
Monday, April 22, 2013
2013 Goals - April Update
(1) Max out 401k(s) - $13,392 (38%) (goal is $35,000)
(2) Max out IRA(s) - $6,010 (55%) (goal is $11,000)
(3) Add to e/r fund - $3,200 (32%) (goal is $10,000)
(4) Pay down mortgage - $1,245 (25%) (goal is $5,000)
(5) Trading account fund - $50 (1%) (goal is $5,000)
(6) House projects - $800 (27%) (goal is $3,000)
Total: $24,697 (23%)
We are a couple of thousand ahead of where we should be. I'm not sure how that happened except that Mr. Sam is ahead on his 401k contributions which may have occurred when he received his bonus but just showed up now.
Friday, April 12, 2013
An Interesting Analysis of the Envelope System of Budgeting
I enjoyed this interesting post from Slate by Emily Oster on the Dave Ramsey envelope budgeting system.
While I am a big fan of Dave Ramsey's philosophy and we utilized his snowball system of paying down our unsecured debt, I've never used his budgeting plan.
Rather we use a allowance system which works like this. I pay all the fixed and semi-fixed bills, the mortgage, car insurance, utilities, etc. Then I allocate and move money to savings which can include savings for upcoming annual bills, i.e. property taxes, or upcoming expenses, i.e. vacations.
Then each of us receives the same amount for day to day discretionary spending which includes groceries, gas, dry cleaning, personal expenses, gifts (but not holiday spending), eating out, entertainment. And part of the reason for this is our expenditures in these categories changes from month to month as Ms. Oster pointed out.
Additionally, neither of us likes to feel overly restricted so with one pot to spend on day to day spending we can spend as we like on different categories but we restrict the overall amount of money.
How do you budget your day to day expenses?
While I am a big fan of Dave Ramsey's philosophy and we utilized his snowball system of paying down our unsecured debt, I've never used his budgeting plan.
Rather we use a allowance system which works like this. I pay all the fixed and semi-fixed bills, the mortgage, car insurance, utilities, etc. Then I allocate and move money to savings which can include savings for upcoming annual bills, i.e. property taxes, or upcoming expenses, i.e. vacations.
Then each of us receives the same amount for day to day discretionary spending which includes groceries, gas, dry cleaning, personal expenses, gifts (but not holiday spending), eating out, entertainment. And part of the reason for this is our expenditures in these categories changes from month to month as Ms. Oster pointed out.
Example: You go to the store and milk is more expensive than usual (something about the sequester?) Because you have your limited grocery envelope, you have to respond to this by buying less of some grocery. You could buy less milk, or fewer veggies, or less pasta. However: It may very well be that you’d rather keep with your normal grocery purchase and cut back somewhere else—say, two fewer lattes this week. But because the “coffee” budget is separate from the grocery budget, you end up with the same number of lattes and fewer bananas.
Additionally, neither of us likes to feel overly restricted so with one pot to spend on day to day spending we can spend as we like on different categories but we restrict the overall amount of money.
How do you budget your day to day expenses?
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