We are less than a week away from our big family vacation. Hooray! Most of our planning is done, although we still have a few items to take care of before we depart.
As we head towards our departure date, I need to do laundry and pack. I also have one more Amazon Prime order to execute on. But as for our travel plan, the airline tickets are paid for, the hotels are reserved and the rental car is booked.
We vacation on a budget, but we don't scrimp. What does that mean you ask? Well it means that we always have a short term savings account earmarked for travel/vacation. We also have an automatic deposit set up, so $200 per pay period goes into our vacation/travel fund. That normally means that we have more than enough in our travel/savings account to pay cash for airline tickets. After our airline tickets are booked and our vacation is planned I often up extra savings into our travel/vacation fund to make sure we have more than enough cash on hand for our hotel, rental car and spending. This time around we didn't need to since our savings account was well funded.
I don't scrimp when I go on vacation, so I normally budget at least $100 a day for food which seems like a lot, but if you are eating out or stopping at a local brewery for a couple of $10 beers it works out to the right amount for us. I also think about and plan for other spending, we'll be stopping at two national parks, so I'm accounting for entry fees, gas, and misc. spending on a t-shirt here or there or a special souvenir. Mr. Sam likes to pick up t-shirts on his travel and he wears them a lot. I like a more upscale souvenir, a piece of art from a local or maybe a handcrafted piece of jewelry. I am picky so that means I often come home with nothing and that is ok. Baby Sam gets to pick out something fun for herself that is inexpensive and I will likely pick out something for her along the way. I normally set aside another $100 in cash for misc. spending.
All of this preplanning means that when we get home from vacation we only bring memories, a rock or two for our collection and no debt.
Showing posts with label Super Savers. Show all posts
Showing posts with label Super Savers. Show all posts
Monday, July 4, 2016
Monday, May 30, 2016
Amazon Mom Update
Almost a year ago, I signed up for Amazon Mom/Prime program.
What I have learned, and it is also what I expected, is that having Amazon Prime makes it super easy to buy stuff from Amazon. "Free" two day delivery on lots of items means that I often go to Amazon for my buying needs. Does that mean I'm spending more in general? Hard to know. I could be making the same purchases, but simply making them at Amazon instead of other retailers. Or I could be making more purchases since Amazon makes it so easy. I suspect it is both.
Today, I was working on my Amazon Prime subscription box. The subscription service allows one to sign up for purchases that are regularly occurring. For us, that includes diapers, wipes, diaper genie liners, baby sunscreen, baby snacks, etc. If you sign up for five items a month that ups your savings to 15% off on everything and 20% off on diapers.
So each month, we get diapers and wipes. Normally we get some puff snacks for Baby Sam. That normally leaves two items left. We have storage space, so I'm genarlly looking for something we go through a lot of and is a dry good or cleaning supply.
As working parents, coffee is a big thing for us, so today I decided to look at coffee options. On Amazon, even narrowing by Prime, that brings up thousands of choices. Select ground and hazelnut and I'm down to hundreds. Sort by price and I come up with some brands that Mr. Sam buys regularly. Ok, price per bag, price per ounce. No idea if this is a good price. Am I falling into the trap of buying something to get a discount that isn't a good deal? Cross check to the Wal-mart site and yes this is a good price.
Do the same thing for Mr. Clean Magic Eraser and I'm good to go for check out.
So bottom line, discounts can work but you have to be careful about making a poor buying choice for purposes of getting a discount.
Also, being able to get items I need delivered makes my life so much easier. Between, work, baby, family life, maintaining sanity is important.
What I have learned, and it is also what I expected, is that having Amazon Prime makes it super easy to buy stuff from Amazon. "Free" two day delivery on lots of items means that I often go to Amazon for my buying needs. Does that mean I'm spending more in general? Hard to know. I could be making the same purchases, but simply making them at Amazon instead of other retailers. Or I could be making more purchases since Amazon makes it so easy. I suspect it is both.
Today, I was working on my Amazon Prime subscription box. The subscription service allows one to sign up for purchases that are regularly occurring. For us, that includes diapers, wipes, diaper genie liners, baby sunscreen, baby snacks, etc. If you sign up for five items a month that ups your savings to 15% off on everything and 20% off on diapers.
So each month, we get diapers and wipes. Normally we get some puff snacks for Baby Sam. That normally leaves two items left. We have storage space, so I'm genarlly looking for something we go through a lot of and is a dry good or cleaning supply.
As working parents, coffee is a big thing for us, so today I decided to look at coffee options. On Amazon, even narrowing by Prime, that brings up thousands of choices. Select ground and hazelnut and I'm down to hundreds. Sort by price and I come up with some brands that Mr. Sam buys regularly. Ok, price per bag, price per ounce. No idea if this is a good price. Am I falling into the trap of buying something to get a discount that isn't a good deal? Cross check to the Wal-mart site and yes this is a good price.
Do the same thing for Mr. Clean Magic Eraser and I'm good to go for check out.
So bottom line, discounts can work but you have to be careful about making a poor buying choice for purposes of getting a discount.
Also, being able to get items I need delivered makes my life so much easier. Between, work, baby, family life, maintaining sanity is important.
Friday, April 22, 2016
Keeping Up With the Joneses - Part I
So, for the past few years, probably five or so, more and more of my friends and peers, and even people who report up to me at work (so, I'd consider them non-peers) have been buying homes at purchase price points ranging from $700,000 to a million.
I find this phenomenon strange, but also incredibly alluring.
Let's start with an analysis of these folks. I will start with the ones who started this trend, and I do believe there is a somewhat contagious trend among friends that equates to keeping up with the Joneses. The ones who started the trend, in my humble opinion, likely made smarter choices.
1. It started with my friend Mary, all names changed to protect the innocent, and her husband George. Back in 2011, they actually got a great deal and paid mid $500s for a home that is now likely worth close to $800,000. They bought a 5000 square foot McMansion in a better school district, they have a small child, with 5 bedrooms, 4 baths in a new development. Their family consists of 3 people and they do not plan to have any more children so this is a house bigger than they need. Their real estate taxes are more than $8000. They took out a $400,000 mortgage. Five years later they are putting in a pool. The house they sold they had owned since 2002 and they made about $50,000 profit when they sold it. They were buying in a buyers market due to the 2008 real estate crash which means they were also selling in a buyers market.
Mary is in the same profession as I am, I assume she makes similar money to me. Her husband is in law enforcement. While he makes less money, he has a great pension that will be coming to him (and soon) such that their retirement savings is less crucial. I have one other friend who will have a federal pension, but she cannot collect said pension until closer to traditional retirement age. George will be able to start collecting his pension in less than 10 years and his pension is for life. As a result, they don't have to save as much for retirement.
2. Jennifer and Alan were next. They are a dual income, professional, couple. Both are in the same profession I am in. They have three kids.
In 2012 they bought a 4 bedroom, 3.5 bath, 5000 square foot home. It also has a 2000 square foot out building (with air conditioning) and a pool. They bought the home for $775,000 (the prior owner had bought it for $800,000 so, again, it was likely a good buy) and it is likely worth close to a million now. Taxes are $14,000 a year. They took on a $620,000 mortgage. Later they took on a $35,000 home equity loan.
They held onto their prior house for a couple of years, while the Florida real estate market improved (likely a smart move), and they later sold it in 2015 for a $265,000 profit. I don't believe they took that profit and reduced or refinanced the mortgage on their current home, rather before they sold their prior home they put it into a trust and I assume the profits also went into that trust.
They have engaged in a variety of real estate and trust maneuvers in the last few years. This is probably because Alan also bought an office building and they are creating protection for their other assets.
Does it sound like I'm stalking my friends' personal business?? Well I guess I am. All of this information, at least in Florida, is public record and readily accessible on line. I also am learning from what they are doing, and that is both positive and negative (more on that later).
I find this phenomenon strange, but also incredibly alluring.
Let's start with an analysis of these folks. I will start with the ones who started this trend, and I do believe there is a somewhat contagious trend among friends that equates to keeping up with the Joneses. The ones who started the trend, in my humble opinion, likely made smarter choices.
1. It started with my friend Mary, all names changed to protect the innocent, and her husband George. Back in 2011, they actually got a great deal and paid mid $500s for a home that is now likely worth close to $800,000. They bought a 5000 square foot McMansion in a better school district, they have a small child, with 5 bedrooms, 4 baths in a new development. Their family consists of 3 people and they do not plan to have any more children so this is a house bigger than they need. Their real estate taxes are more than $8000. They took out a $400,000 mortgage. Five years later they are putting in a pool. The house they sold they had owned since 2002 and they made about $50,000 profit when they sold it. They were buying in a buyers market due to the 2008 real estate crash which means they were also selling in a buyers market.
Mary is in the same profession as I am, I assume she makes similar money to me. Her husband is in law enforcement. While he makes less money, he has a great pension that will be coming to him (and soon) such that their retirement savings is less crucial. I have one other friend who will have a federal pension, but she cannot collect said pension until closer to traditional retirement age. George will be able to start collecting his pension in less than 10 years and his pension is for life. As a result, they don't have to save as much for retirement.
2. Jennifer and Alan were next. They are a dual income, professional, couple. Both are in the same profession I am in. They have three kids.
In 2012 they bought a 4 bedroom, 3.5 bath, 5000 square foot home. It also has a 2000 square foot out building (with air conditioning) and a pool. They bought the home for $775,000 (the prior owner had bought it for $800,000 so, again, it was likely a good buy) and it is likely worth close to a million now. Taxes are $14,000 a year. They took on a $620,000 mortgage. Later they took on a $35,000 home equity loan.
They held onto their prior house for a couple of years, while the Florida real estate market improved (likely a smart move), and they later sold it in 2015 for a $265,000 profit. I don't believe they took that profit and reduced or refinanced the mortgage on their current home, rather before they sold their prior home they put it into a trust and I assume the profits also went into that trust.
They have engaged in a variety of real estate and trust maneuvers in the last few years. This is probably because Alan also bought an office building and they are creating protection for their other assets.
Does it sound like I'm stalking my friends' personal business?? Well I guess I am. All of this information, at least in Florida, is public record and readily accessible on line. I also am learning from what they are doing, and that is both positive and negative (more on that later).
Tuesday, April 19, 2016
Tax Day Update
Well its the day after taxes are due, so its a good time to think about our 2016 progress.
First, we haven't filed our taxes since we normally seek an extension which is what we did this year.
Second, we skipped 2015 IRA funding. Just didn't happen for a variety of reasons. Lack of discipline, baby and child care expenses, life, etc. So, that means we have a bit of extra savings to put towards 2016 IRA funding.
Third, I'm still waiting on Mr. Sam to make my 2016 Excel savings chart. He's as busy as I am, so it hasn't happened. Hard to track progress without the chart. But see below.
Definite goals:
(1) Max out 401k, $18,000 for each of us, for a total of $36,000. On track.
(2) Finish funding our 2015 IRAs - $8900, Skipped
(3) Fund 2016 IRAs, $11,000 for the both of us, for a total of $22,000. $1100
(4) Baby Sam'college fund, add another $5000 this year. On track
Updated tentative goal, so this is a definite goal now:
(5) Add to emergency fund, $10,000, increased this from $5,000 to $10,000, since we utilized a chunk to buy my nused car. On track
Debt killing goals:
(1) Pay off lingering credit card debt in the amount of $4261. Down to $2403
(2) Pay off Mr. Sam's new car, remaining debt $2000. Down to $1000
Overall debt below $450,000 goal: Total debt $474,731.
First, we haven't filed our taxes since we normally seek an extension which is what we did this year.
Second, we skipped 2015 IRA funding. Just didn't happen for a variety of reasons. Lack of discipline, baby and child care expenses, life, etc. So, that means we have a bit of extra savings to put towards 2016 IRA funding.
Third, I'm still waiting on Mr. Sam to make my 2016 Excel savings chart. He's as busy as I am, so it hasn't happened. Hard to track progress without the chart. But see below.
Definite goals:
(1) Max out 401k, $18,000 for each of us, for a total of $36,000. On track.
(2) Finish funding our 2015 IRAs - $8900, Skipped
(3) Fund 2016 IRAs, $11,000 for the both of us, for a total of $22,000. $1100
(4) Baby Sam'college fund, add another $5000 this year. On track
Updated tentative goal, so this is a definite goal now:
(5) Add to emergency fund, $10,000, increased this from $5,000 to $10,000, since we utilized a chunk to buy my nused car. On track
Debt killing goals:
(1) Pay off lingering credit card debt in the amount of $4261. Down to $2403
(2) Pay off Mr. Sam's new car, remaining debt $2000. Down to $1000
Overall debt below $450,000 goal: Total debt $474,731.
Thursday, April 14, 2016
I Keep Trying to Get Back on Track.......
I've been spinning my wheels now for more than a year.
With the time pressures of a more than full time job, baby, husband, landlording, life, etc. my ability to manage our finances has been backsliding.
I'm not paying bills on time, rent is not being collected (that is Mr. Sam's duty), our savings rate has gone down. I haven't even started to create our 2016 spending plan (our form of a budget), although I've put down on paper what I'd like to accomplish for savings. Mr. Sam has not created our 2016 savings Excel chart.
I know the reason for all of this: full time job, baby, husband, life, etc. I've yet to figure out a solution.
I used to spend 20-30 minutes 2-3 times a week working on finances or reading about finances (money blogs help me stay on track) when I arrived at the office. But, I used to arrive at the office @ 7:30 am. Now, on average, I'm arriving at @ 8:45 am.
The solution is to get up earlier so I can get to work earlier. Today, I arrived at @ 8.20 and spent an hour or so on finances and made good progress.
With the time pressures of a more than full time job, baby, husband, landlording, life, etc. my ability to manage our finances has been backsliding.
I'm not paying bills on time, rent is not being collected (that is Mr. Sam's duty), our savings rate has gone down. I haven't even started to create our 2016 spending plan (our form of a budget), although I've put down on paper what I'd like to accomplish for savings. Mr. Sam has not created our 2016 savings Excel chart.
I know the reason for all of this: full time job, baby, husband, life, etc. I've yet to figure out a solution.
I used to spend 20-30 minutes 2-3 times a week working on finances or reading about finances (money blogs help me stay on track) when I arrived at the office. But, I used to arrive at the office @ 7:30 am. Now, on average, I'm arriving at @ 8:45 am.
The solution is to get up earlier so I can get to work earlier. Today, I arrived at @ 8.20 and spent an hour or so on finances and made good progress.
Friday, January 22, 2016
Focusing on Debt
This was my December update on debt:
Of course, we've added to our debt by buying me a nused car. But, I'm ignoring that for right now.
I've been chipping away at our credit card debt. We killed the 0% credit card debt that we took out for tile in one of our rental homes. Mr. Sam also cancelled that card/account. As for our revolving credit card (Chase) that has been hanging around since Baby Sam arrived, it is now down to $3809. I'm utilizing Dave Ramsey tricks by throwing a $100 at it here and there, and sending payments from various checking accounts on the same day. I expect that Chase will be killed off by mid-March (hoping for end of February).
Mr. Sam's truck is down to $2000 and we have 4 payments left. I don't plan to pay ahead as we have a 0% situation. So, by May the truck will be paid in full.
Once the Chase is killed, we really need to ramp up 2015 IRAs savings since the deadline to fund is 4/15/16. At present we have $2500 in our 2015 IRA savings. That means we need to find $9000 before 4/15/16. Our available savings is down because of my nused car purchase. We do have $4200 in our vacation/travel fund, which means I could likely raid it for a couple of thousand. And I could probably take $1,000 from savings. That would mean we need to find $5,500 from other sources in about a month or month and a half.
Debt killing goals:
(1) Pay off lingering credit card debt in the amount of $6500.
(2) Pay off Mr. Sam's new car, remaining debt $2500.
Of course, we've added to our debt by buying me a nused car. But, I'm ignoring that for right now.
I've been chipping away at our credit card debt. We killed the 0% credit card debt that we took out for tile in one of our rental homes. Mr. Sam also cancelled that card/account. As for our revolving credit card (Chase) that has been hanging around since Baby Sam arrived, it is now down to $3809. I'm utilizing Dave Ramsey tricks by throwing a $100 at it here and there, and sending payments from various checking accounts on the same day. I expect that Chase will be killed off by mid-March (hoping for end of February).
Mr. Sam's truck is down to $2000 and we have 4 payments left. I don't plan to pay ahead as we have a 0% situation. So, by May the truck will be paid in full.
Once the Chase is killed, we really need to ramp up 2015 IRAs savings since the deadline to fund is 4/15/16. At present we have $2500 in our 2015 IRA savings. That means we need to find $9000 before 4/15/16. Our available savings is down because of my nused car purchase. We do have $4200 in our vacation/travel fund, which means I could likely raid it for a couple of thousand. And I could probably take $1,000 from savings. That would mean we need to find $5,500 from other sources in about a month or month and a half.
Friday, January 8, 2016
Updated 2016 Savings/Financial Goals
Still working on our goal planning, some changes since I last posted.
Definite goals:
(1) Max out 401k for each of us, the limits have not changes for 2016 so that is $18,000 for each of us for a total of $36,000. Automatic payroll debits are in place, I will just need to check them in January
(2) Finish funding our 2015 IRAs - $8900, The 2015 IRAs must be funded by 4/15/16. As such, we will have some heavy upfront savings of about $1110 per pay period between 1/1/16 and 4/15/16.
(3) Fund 2016 IRAs $11,000 for the both of us, this number also is unchanged from 2015.
(4) Baby Sam'college fund, add another $5000 this year.
Tentative goals:
(5) Add to emergency fund, reducing this annual goal to $5000 (this year we saved $10,000)
The above savings goals total $65,900. The highest savings number we have ever hit with our savings efforts is @$64,000 (back in 2013). So, this would be a stretch for us, especially with our child care expenses for Baby Sam.
I've deleted the nused car savings goal, because I went ahead and bought a nused car in December. More on that in a later post.
Debt killing goals:
(1) Pay off lingering credit card debt in the amount of $4261 (this was at $6500 in my last post, we've made progress).
(2) Pay off Mr. Sam's new car, remaining debt $2000.
Above debt totals at $6261.
Also, I'd like to reduce our total debt to under $450,000 total. At present our debt total is at $491,863 (this number went up due to the nused car) which would require killing the above credit and car debt and also killing another almost $35,602 in debt. I think that is this is may be a reachable goal since we paid off @$34,000 in debt this year.
Additional financial goals:
Roll over old 401k to my current employer 401k. This has been a previous goal, and guess what it is still an item on my to do list.
Definite goals:
(1) Max out 401k for each of us, the limits have not changes for 2016 so that is $18,000 for each of us for a total of $36,000. Automatic payroll debits are in place, I will just need to check them in January
(2) Finish funding our 2015 IRAs - $8900, The 2015 IRAs must be funded by 4/15/16. As such, we will have some heavy upfront savings of about $1110 per pay period between 1/1/16 and 4/15/16.
(3) Fund 2016 IRAs $11,000 for the both of us, this number also is unchanged from 2015.
(4) Baby Sam'college fund, add another $5000 this year.
Tentative goals:
(5) Add to emergency fund, reducing this annual goal to $5000 (this year we saved $10,000)
The above savings goals total $65,900. The highest savings number we have ever hit with our savings efforts is @$64,000 (back in 2013). So, this would be a stretch for us, especially with our child care expenses for Baby Sam.
I've deleted the nused car savings goal, because I went ahead and bought a nused car in December. More on that in a later post.
Debt killing goals:
(1) Pay off lingering credit card debt in the amount of $4261 (this was at $6500 in my last post, we've made progress).
(2) Pay off Mr. Sam's new car, remaining debt $2000.
Above debt totals at $6261.
Also, I'd like to reduce our total debt to under $450,000 total. At present our debt total is at $491,863 (this number went up due to the nused car) which would require killing the above credit and car debt and also killing another almost $35,602 in debt. I think that is this is may be a reachable goal since we paid off @$34,000 in debt this year.
Additional financial goals:
Roll over old 401k to my current employer 401k. This has been a previous goal, and guess what it is still an item on my to do list.
Thursday, December 3, 2015
2016 Savings/Financial Planning
Starting to think about 2016 savings and financial goals.
Definite goals:
(1) Max out 401k for each of us, the limits have not changes for 2016 so that is $18,000 for each of us for a total of $36,000. Automatic payroll debits are in place, I will just need to check them in January
(2) Finish funding our 2015 IRAs - $8900, The 2015 IRAs must be funded by 4/15/16. As such, we will have some heavy upfront savings of about $1110 per pay period between 1/1/16 and 4/15/16.
(3) Fund 2016 IRAs $11,000 for the both of us, this number also is unchanged from 2015.
(4) Baby Sam'college fund, add another $5000 this year.
Tentative goals:
(5) Add to emergency fund, reducing this annual goal to $5000 (this year we saved $10,000)
(6) Save for a nused car for me $10,000. My car will be 10 years old next year and its got some expensive repairs that I've been holding off on. I replaced my last car after 9 years of life so I'm thinking this car will need replacing soon.
The above savings goals total $75,900. The highest savings number we have ever hit with our savings efforts is @$64,000 (back in 2013). So, this would be a big stretch for us, especially with our child care expenses for Baby Sam.
Debt killing goals:
(1) Pay off lingering credit card debt in the amount of $6500.
(2) Pay off Mr. Sam's new car, remaining debt $2500.
Above debt totals at $9000.
Also, I'd like to reduce our total debt to under $450,000 total. At present our debt total is at $484,848 which would require killing the above credit and car debt and also killing another almost $26,000 in debt. I think that is this is a reachable goal since we paid off @$34,000 in debt this year.
Definite goals:
(1) Max out 401k for each of us, the limits have not changes for 2016 so that is $18,000 for each of us for a total of $36,000. Automatic payroll debits are in place, I will just need to check them in January
(2) Finish funding our 2015 IRAs - $8900, The 2015 IRAs must be funded by 4/15/16. As such, we will have some heavy upfront savings of about $1110 per pay period between 1/1/16 and 4/15/16.
(3) Fund 2016 IRAs $11,000 for the both of us, this number also is unchanged from 2015.
(4) Baby Sam'college fund, add another $5000 this year.
Tentative goals:
(5) Add to emergency fund, reducing this annual goal to $5000 (this year we saved $10,000)
(6) Save for a nused car for me $10,000. My car will be 10 years old next year and its got some expensive repairs that I've been holding off on. I replaced my last car after 9 years of life so I'm thinking this car will need replacing soon.
The above savings goals total $75,900. The highest savings number we have ever hit with our savings efforts is @$64,000 (back in 2013). So, this would be a big stretch for us, especially with our child care expenses for Baby Sam.
Debt killing goals:
(1) Pay off lingering credit card debt in the amount of $6500.
(2) Pay off Mr. Sam's new car, remaining debt $2500.
Above debt totals at $9000.
Also, I'd like to reduce our total debt to under $450,000 total. At present our debt total is at $484,848 which would require killing the above credit and car debt and also killing another almost $26,000 in debt. I think that is this is a reachable goal since we paid off @$34,000 in debt this year.
Friday, May 8, 2015
A Windfall is Coming
As you can tell from the title of this post, clearly I'm a Game of Thrones fan.
So, I received news that I'm getting a bonus this year. This bonus was unexpected for a couple of reasons. First, I was on maternity leave for more than three months. Second, I did not believe I was eligible for this type of bonus.
So money is coming our way and it is a decent size chunk of cash. Of course, after Uncle Sam takes his bite and after the deduction for my 401k, the number shrinks. But, I won't complain one bit.
My tentative plan for the money is as follows (final plan depends a bit on the amount). First, 50% will go to our baby debt (which presently is $5421 at 0%). Second, 25% will go towards our upcoming summer vacation (so, into our travel savings fund). Third, 15% will go towards our 2015 IRA savings account. And, finally, 10% is for me to do what I want with (spa, clothes, dinner out, or some other kind of treat).
How do you spend bonus money?
So, I received news that I'm getting a bonus this year. This bonus was unexpected for a couple of reasons. First, I was on maternity leave for more than three months. Second, I did not believe I was eligible for this type of bonus.
So money is coming our way and it is a decent size chunk of cash. Of course, after Uncle Sam takes his bite and after the deduction for my 401k, the number shrinks. But, I won't complain one bit.
My tentative plan for the money is as follows (final plan depends a bit on the amount). First, 50% will go to our baby debt (which presently is $5421 at 0%). Second, 25% will go towards our upcoming summer vacation (so, into our travel savings fund). Third, 15% will go towards our 2015 IRA savings account. And, finally, 10% is for me to do what I want with (spa, clothes, dinner out, or some other kind of treat).
How do you spend bonus money?
Wednesday, May 6, 2015
Cars, cars, cars
Back in 2008, the first year of this blog, we saved up $17,000 and I bought a 2006 nused car. While that feels like a short time ago, its been almost 7 years. That car has served me well, but last year (and the prior year) it cost me a pretty penny in repair costs.
Now that we have Baby Sam, and I have to wiggle and wrangle that baby stroller in and out of my trunk (even though its very large) and as the car approaches the 10 year mark, I've started thinking that I need a new/nused car. I'm thinking about a small SUV or cross over type of car. Something with a larger back storage area (not a trunk) so I can more easily fit the baby stroller and all the stuff that goes along with a baby.
The length of time Americans keep their cars has grown. On average, a new car is kept for 71.4 months (or just under 6 years). On average, a nused car is kept for 49.9 months (a bit over 4 years). In my situation, I've exceeded the average for both data points. since I've been driving my nused car for more than 6 years.
I generally do well with resisting the influence of friends and colleagues, but most everyone I know is driving a newish car. In fact, I recently got together with a good friend and she has a newly leased SUV. In the last 15 years she has had 5 cars and I have had 2. In our family, I was the one with the nice car since Mr. Sam was driving an old 1998 truck. But, that's not true anymore.
While I'm starting to pine for a new car, our financial situation is stretched. We have the expenses of the baby, indeed we still have a little baby debt. We have Mr. Sam's truck debt. And, we've barely made any progress on our 2015 savings goals (indeed we've hardly started). We also have child care costs and a college fund to feed. So, if I can hold off on a new or nused car for a couple of years, we'd be much better off.
As a result, my tentative plan is to start a nused car fund now so I feel like I am working towards a goal. I need to also spend some money to get my car cleaned and tuned up, oil change, tire rotation, etc. If I do that, I'll feel like my car is in better condition and won't be so antsy for a change.
Now that we have Baby Sam, and I have to wiggle and wrangle that baby stroller in and out of my trunk (even though its very large) and as the car approaches the 10 year mark, I've started thinking that I need a new/nused car. I'm thinking about a small SUV or cross over type of car. Something with a larger back storage area (not a trunk) so I can more easily fit the baby stroller and all the stuff that goes along with a baby.
The length of time Americans keep their cars has grown. On average, a new car is kept for 71.4 months (or just under 6 years). On average, a nused car is kept for 49.9 months (a bit over 4 years). In my situation, I've exceeded the average for both data points. since I've been driving my nused car for more than 6 years.
I generally do well with resisting the influence of friends and colleagues, but most everyone I know is driving a newish car. In fact, I recently got together with a good friend and she has a newly leased SUV. In the last 15 years she has had 5 cars and I have had 2. In our family, I was the one with the nice car since Mr. Sam was driving an old 1998 truck. But, that's not true anymore.
While I'm starting to pine for a new car, our financial situation is stretched. We have the expenses of the baby, indeed we still have a little baby debt. We have Mr. Sam's truck debt. And, we've barely made any progress on our 2015 savings goals (indeed we've hardly started). We also have child care costs and a college fund to feed. So, if I can hold off on a new or nused car for a couple of years, we'd be much better off.
As a result, my tentative plan is to start a nused car fund now so I feel like I am working towards a goal. I need to also spend some money to get my car cleaned and tuned up, oil change, tire rotation, etc. If I do that, I'll feel like my car is in better condition and won't be so antsy for a change.
Tuesday, May 5, 2015
Trying Out Swap.com
I am normally the type of person who simply donates rather than resells items. For me, my time and effort is generally worth way more than any small profit to be made in reselling items at a garage sale or consignment, etc.
But, when it came time to re-purpose my maternity clothes I gave second thought to donation as my first option. Specifically, because I work in a professional setting I had ended up investing a fair amount in some very good maternity clothes. In particular, I had invested in several Seraphine maternity dresses (Kate Middleton is a fan) since I work in a field where I need to look good and present a polished, professional appearance. And, I had at least three or four dresses that I had only worn two or three times.
I did a fair amount of research regarding on-line maternity (and baby) consignment stores. First, I sure wish I had known about these sites when I was buying maternity clothes as I would have tried out some of these sites for my own needs. I had thought about consignment stores when I first started my maternity clothes shopping, indeed I had even tried to find one. But, I was thinking and looking for physical stores and not virtual. Dang! Second, a lot of these sites have very mixed reviews and reputations.
After doing my due diligence, I decided to go with swap.com for a couple of reasons. Importantly, they seemed to have the best reputation based on my research (please note - I've not received anything in exchange for this review). Also of importance, to me, they do almost all the work. They take the photos, write the description and they mail out the packages to folks who buy. As I mentioned before, I don't have the time to be shipping out packages to customers since with work and a baby I can barely complete one chore a week.
So, this is how it works. (1) Sign up as a seller. (2) Order a UPS shipping slip. (3) Pack up neat, clean and in good condition items and send them off to Swap.com. You can also bundle items together so they sell as a set. Swap.com then does the rest, taking photos, writing description, mailing to buyers, sending you the money (via PayPal).
As a test, I sent in a box of mostly maternity clothes (a few newborn baby items) consisting of mainly casual, lower cost items (not my fancy maternity work apparel). And, I would say that it generally worked as promised.
Communication was good. When Swap.com received my package they emailed me. When my items were ready to price (about two weeks later) they emailed me. While I am still learning the site, I found pricing to be relatively easy. An error in a description and classification for an item was promptly corrected after notification.
And, so far, I have actually sold some items and money has been sent to my PayPal account. I think the fees are generally reasonable since Swap.com does most of the work and they store the items for months with no charge (there are storage charges after a set time passes). There is a charge for the in-bound UPS shipping and a $1.50 plus 25% sales commission for each sold item (or set).
With fees and competition, pricing is an art. I set my prices by looking at what similar items were priced at. So, I priced maternity t-shirts at $7 and sold several. Not much of a profit at $3.75 but better than nothing.
I must say it was painful to price a skirt that I wore once at $12 when it cost me $70. And my super expensive maternity jeans that cost $150 are currently priced at $15 (but they were worn many times). With my next box, the professional maternity items, I will need to price so I can recoup drycleaning costs (since I had it all recently cleaned in preparation for consignment) and make a decent profit so that will be tricky.
I was somewhat befuddled by what was rejected and they don't really tell you why. I had sent in a barely worn maternity maxi dress that was in the rejected pile. You can choose to have rejected items shipped back to you, but there is a charge (of course). I'm not sure what happens to the items if you donate them (which is what I probably will choose to do). No idea whether they actually get donated or if the site simply sells them. Inexplicable rejections was a very common complaint in my research regarding other sites.
I haven't yet bought anything from Swap.com, but I do plan to try it out for baby clothes. I already know that with my baby there are outfits, especially the fancy ones, that get worn once (and some not at all). One trick I've learned about recently is to leave tags on baby clothes until they are worn. That way, if baby never wears them you can list them as "new with tags". If you remove the tags, even if baby never wears that outfit, you can only list them as "good condition".
But, when it came time to re-purpose my maternity clothes I gave second thought to donation as my first option. Specifically, because I work in a professional setting I had ended up investing a fair amount in some very good maternity clothes. In particular, I had invested in several Seraphine maternity dresses (Kate Middleton is a fan) since I work in a field where I need to look good and present a polished, professional appearance. And, I had at least three or four dresses that I had only worn two or three times.
I did a fair amount of research regarding on-line maternity (and baby) consignment stores. First, I sure wish I had known about these sites when I was buying maternity clothes as I would have tried out some of these sites for my own needs. I had thought about consignment stores when I first started my maternity clothes shopping, indeed I had even tried to find one. But, I was thinking and looking for physical stores and not virtual. Dang! Second, a lot of these sites have very mixed reviews and reputations.
After doing my due diligence, I decided to go with swap.com for a couple of reasons. Importantly, they seemed to have the best reputation based on my research (please note - I've not received anything in exchange for this review). Also of importance, to me, they do almost all the work. They take the photos, write the description and they mail out the packages to folks who buy. As I mentioned before, I don't have the time to be shipping out packages to customers since with work and a baby I can barely complete one chore a week.
So, this is how it works. (1) Sign up as a seller. (2) Order a UPS shipping slip. (3) Pack up neat, clean and in good condition items and send them off to Swap.com. You can also bundle items together so they sell as a set. Swap.com then does the rest, taking photos, writing description, mailing to buyers, sending you the money (via PayPal).
As a test, I sent in a box of mostly maternity clothes (a few newborn baby items) consisting of mainly casual, lower cost items (not my fancy maternity work apparel). And, I would say that it generally worked as promised.
Communication was good. When Swap.com received my package they emailed me. When my items were ready to price (about two weeks later) they emailed me. While I am still learning the site, I found pricing to be relatively easy. An error in a description and classification for an item was promptly corrected after notification.
And, so far, I have actually sold some items and money has been sent to my PayPal account. I think the fees are generally reasonable since Swap.com does most of the work and they store the items for months with no charge (there are storage charges after a set time passes). There is a charge for the in-bound UPS shipping and a $1.50 plus 25% sales commission for each sold item (or set).
With fees and competition, pricing is an art. I set my prices by looking at what similar items were priced at. So, I priced maternity t-shirts at $7 and sold several. Not much of a profit at $3.75 but better than nothing.
I must say it was painful to price a skirt that I wore once at $12 when it cost me $70. And my super expensive maternity jeans that cost $150 are currently priced at $15 (but they were worn many times). With my next box, the professional maternity items, I will need to price so I can recoup drycleaning costs (since I had it all recently cleaned in preparation for consignment) and make a decent profit so that will be tricky.
I was somewhat befuddled by what was rejected and they don't really tell you why. I had sent in a barely worn maternity maxi dress that was in the rejected pile. You can choose to have rejected items shipped back to you, but there is a charge (of course). I'm not sure what happens to the items if you donate them (which is what I probably will choose to do). No idea whether they actually get donated or if the site simply sells them. Inexplicable rejections was a very common complaint in my research regarding other sites.
I haven't yet bought anything from Swap.com, but I do plan to try it out for baby clothes. I already know that with my baby there are outfits, especially the fancy ones, that get worn once (and some not at all). One trick I've learned about recently is to leave tags on baby clothes until they are worn. That way, if baby never wears them you can list them as "new with tags". If you remove the tags, even if baby never wears that outfit, you can only list them as "good condition".
Thursday, March 5, 2015
2014 - Final Savings Numbers
(1) Max out 401k(s) - $22,588 65% (goal is $35,000)
(2) Max out IRA(s) - $11,000 100% (goal is $11,000)
(3) Add to e/r fund - $10,400 104% (goal is $10,000)
(4) Roof project - $5,000 100% (goal is $5,000)
(5) Vehicle replacement - $5,000 100% (goal is $5,000)
(6) House projects - $3,000 100% (goal is $3,000)
Total: $56,988 83% (Goal is $69,000)
So, we saved almost $57,000 in 2014. While a respectable number, we missed our goal by $12,000. Mr. Sam was not eligible for his 401k until midway through the year and that is one of the main reasons that our 401k savings number was reduced in 2014.
We did have some major expenses in 2014 that are not reflected (entirely) in our savings goals. First, a new car for Mr. Sam which was paid in part with cash. Second, a new roof for one of our properties. The roof was a savings goal, but also cost more than what we saved and we could no longer put the project off.
We also incurred some debt in 2014. Mr. Sam's new car was paid in part with cash (about 40%) and the rest is loan. Second, we added to our family in 2014 (which is why I've been away from the blog for so long). We had considerable expenses related to the conception (via IVF) and related to the nursery and birth (most covered by insurance, but a big chunk that was not). We also had a major house project prior to the baby arriving. We are working on paying down the baby debt and it will be part of our 2015 savings/debt killing plan which I am working on creating.
(2) Max out IRA(s) - $11,000 100% (goal is $11,000)
(3) Add to e/r fund - $10,400 104% (goal is $10,000)
(4) Roof project - $5,000 100% (goal is $5,000)
(5) Vehicle replacement - $5,000 100% (goal is $5,000)
(6) House projects - $3,000 100% (goal is $3,000)
Total: $56,988 83% (Goal is $69,000)
So, we saved almost $57,000 in 2014. While a respectable number, we missed our goal by $12,000. Mr. Sam was not eligible for his 401k until midway through the year and that is one of the main reasons that our 401k savings number was reduced in 2014.
We did have some major expenses in 2014 that are not reflected (entirely) in our savings goals. First, a new car for Mr. Sam which was paid in part with cash. Second, a new roof for one of our properties. The roof was a savings goal, but also cost more than what we saved and we could no longer put the project off.
We also incurred some debt in 2014. Mr. Sam's new car was paid in part with cash (about 40%) and the rest is loan. Second, we added to our family in 2014 (which is why I've been away from the blog for so long). We had considerable expenses related to the conception (via IVF) and related to the nursery and birth (most covered by insurance, but a big chunk that was not). We also had a major house project prior to the baby arriving. We are working on paying down the baby debt and it will be part of our 2015 savings/debt killing plan which I am working on creating.
Monday, August 25, 2014
$2 MM
According to today's update, our assets have snuck over the $2 million dollar mark. While a number is just a number and I recognize that the value of our assets are mostly variable (except for the cash), I always get positive vibes when I hop over one level to the next.
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.
Sunday, July 13, 2014
July Update - 2014 Savings Goals
(1) Max out 401k(s) - $9,436 27% (goal is $35,000)
(2) Max out IRA(s) - $9,343 85% (goal is $11,000)
(3) Add to e/r fund - $5,600 56% (goal is $10,000)
(4) Roof project - $5,000 100% (goal is $5,000)
(5) Vehicle replacement - $5,000 100% (goal is $5,000)
(6) House projects - $200 7% (goal is $3,000)
Total: $34,579 50% (Goal is $69,000)
At present, we are about $3900 behind on our goals.
(2) Max out IRA(s) - $9,343 85% (goal is $11,000)
(3) Add to e/r fund - $5,600 56% (goal is $10,000)
(4) Roof project - $5,000 100% (goal is $5,000)
(5) Vehicle replacement - $5,000 100% (goal is $5,000)
(6) House projects - $200 7% (goal is $3,000)
Total: $34,579 50% (Goal is $69,000)
At present, we are about $3900 behind on our goals.
Monday, June 30, 2014
Truck Update
Big news on the truck front, Mr. Sam is the proud owner of a new truck.
As I shared recently, we were not finding very good prices on used trucks, they were running $12,000 or so for the type of truck we wanted but were 10 years old. As such, after doing a lot of research, we opted for new (as Anon noted, the used car market is tough).
We bought last year's truck (2013) and opted for a low end model. We paid cash for about 40% of the purchase price and the rest was paid via a loan. While I hate having debt of any kind, we will work hard to get it paid off quickly and, in the long run, I think it is a better decision. We have a new truck that is under warranty, it has four doors which gives us greater flexibility (old truck only had two doors), and Mr. Sam is so happy to be out of his old, beat up truck.Anonymous said...we had to replace our truck last year too. After looking for used ones in the 3 - 5 year range and finding not much of a price break off new ones, we went new. Its been awhile since we bought new but the cost justified it this time. I was going to pay cash, like you we hate car loans but the rate was so cheap and a $1000 rebate off the price for financing that we financed about 60% of the cost and paid it off over 6 months and came out way ahead with the rebate vs interest expense. I would have paid off the loan with the first payment but feared they would come back at us for the rebate amount. Our weekdays cars we bought in 2007, both luxury cars that are 2002 and 2004 models, bought as a package deal and plan to drive them for many more years.
Wednesday, June 25, 2014
2014 Savings Goals - June Update
(1) Max out 401k(s) - $8,088 23% (goal is $35,000)
(2) Max out IRA(s) - $8,838 80% (goal is $11,000)
(3) Add to e/r fund - $4,400 44% (goal is $10,000)
(4) Roof project - $5,000 100% (goal is $5,000)
(5) Vehicle replacement - $5,000 100% (goal is $5,000)
(6) House projects - $0 0% (goal is $3,000)
Total: $31,326 45% (Goal is $69,000)
We are having the year of unplanned expenses, and as a result our progress chart has been altered. First, because Mr. Sam needs new/nused truck (and that goal just won't wait anymore) we have cleaned out the house savings account and Mr. Sam's 401k savings account.
Mr. Sam is not currently eligible for his work 401k so we were putting aside cash so when he is eligible (September) he could increase/max out his 401k deductions per paycheck (up to his employer's limit, most employers do not permit a 100% contribution) and we would have cash available to make up for that budgetary shortfall. But, the truck won't wait so since this money was not invested and available we are putting into the truck fund. Hopefully, by the time September rolls around we will be able to manage our budget such that he can still increase his contributions to try and put away as much money as he can.
Second, similarly, our house project fund has also been cleaned out for the truck fund. Our truck fund is $10,000, not the $5,000 listed in our chart.
At present, we are about $3000 behind on our savings goals.
(2) Max out IRA(s) - $8,838 80% (goal is $11,000)
(3) Add to e/r fund - $4,400 44% (goal is $10,000)
(4) Roof project - $5,000 100% (goal is $5,000)
(5) Vehicle replacement - $5,000 100% (goal is $5,000)
(6) House projects - $0 0% (goal is $3,000)
Total: $31,326 45% (Goal is $69,000)
We are having the year of unplanned expenses, and as a result our progress chart has been altered. First, because Mr. Sam needs new/nused truck (and that goal just won't wait anymore) we have cleaned out the house savings account and Mr. Sam's 401k savings account.
Mr. Sam is not currently eligible for his work 401k so we were putting aside cash so when he is eligible (September) he could increase/max out his 401k deductions per paycheck (up to his employer's limit, most employers do not permit a 100% contribution) and we would have cash available to make up for that budgetary shortfall. But, the truck won't wait so since this money was not invested and available we are putting into the truck fund. Hopefully, by the time September rolls around we will be able to manage our budget such that he can still increase his contributions to try and put away as much money as he can.
Second, similarly, our house project fund has also been cleaned out for the truck fund. Our truck fund is $10,000, not the $5,000 listed in our chart.
At present, we are about $3000 behind on our savings goals.
Tuesday, June 24, 2014
Car Repair Blues
One of the ways we keep our expenses down so that we can save more is keeping our transportation costs low. I drive a 2006 four door car, which was purchased with cash in 2008. Mr. Sam drives a truck, a necessity for our rental properties, which was purchased with cash in 2004. The truck is of the late 1990s vintage. So, I've had my car for six years and Mr. Sam has had his truck for 10 years now.
This year the average price of new car was $31,252. Additionally, Americans are keeping those expensive cars for more years (due in part to longer car loans).
Last year, my car needed a fair amount of work. The work was done, about $2000, and I was hopeful my car would be good for a few years. No such luck, I've just put another $1200 into my car and I have an outstanding transmission problem that needs to be addressed by a specialist (which means expensive in my mind, but its an unknown at this point).
While we were talking transmission for my car, Mr. Sam's truck has reached its end. He either needs a new engine or a new vehicle and the mechanic who looked at it said it really wasn't worth putting a new engine into the truck. The truck is also only two doors and we really need another four door vehicle for a variety of reasons.
So, we are on the hunt for a used four door truck (with a shorter bed). Interestingly, the prices on used (2010-2013) trucks are close to the price for a new one. I mentioned financing a purchase rather than depleting our savings account (which has already been battered by prior unplanned expenses this year), but Mr. Sam is strongly against having a car payment (I've trained him well). Which means that we will need to look for something that is older or figure out some other plan.
This year the average price of new car was $31,252. Additionally, Americans are keeping those expensive cars for more years (due in part to longer car loans).
Last year, my car needed a fair amount of work. The work was done, about $2000, and I was hopeful my car would be good for a few years. No such luck, I've just put another $1200 into my car and I have an outstanding transmission problem that needs to be addressed by a specialist (which means expensive in my mind, but its an unknown at this point).
While we were talking transmission for my car, Mr. Sam's truck has reached its end. He either needs a new engine or a new vehicle and the mechanic who looked at it said it really wasn't worth putting a new engine into the truck. The truck is also only two doors and we really need another four door vehicle for a variety of reasons.
So, we are on the hunt for a used four door truck (with a shorter bed). Interestingly, the prices on used (2010-2013) trucks are close to the price for a new one. I mentioned financing a purchase rather than depleting our savings account (which has already been battered by prior unplanned expenses this year), but Mr. Sam is strongly against having a car payment (I've trained him well). Which means that we will need to look for something that is older or figure out some other plan.
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.
Friday, May 30, 2014
2014 Savings Goal - May Update
(1) Max out 401k(s) - $10,139 29% (goal is $35,000)
(2) Max out IRA(s) - $8,835 80% (goal is $11,000)
(3) Add to e/r fund - $4,400 44% (goal is $10,000)
(4) Roof project - $5,000 100% (goal is $5,000)
(5) Vehicle replacement - $5 0% (goal is $5,000)
(6) House projects - $1,100 37% (goal is $3,000)
Total: $29,479 43% (Goal is $69,000)
(2) Max out IRA(s) - $8,835 80% (goal is $11,000)
(3) Add to e/r fund - $4,400 44% (goal is $10,000)
(4) Roof project - $5,000 100% (goal is $5,000)
(5) Vehicle replacement - $5 0% (goal is $5,000)
(6) House projects - $1,100 37% (goal is $3,000)
Total: $29,479 43% (Goal is $69,000)
Can you tell things have been cray-cray for us, no posts in quite some time. But, surprisingly, when I updated our savings chart today we are generally on track for 2014.
The roof project is done, cost more than $5,000 so counting that goal as completed. We are making progress on our house project fund, but even with the roof done, we have several house projects that we need to attend to this year that likely will exceed our savings. Now that the roof project is done, I will switch my auto savings to Mr. Sam's car replacement fund. My car also has been acting up and I'm going to need to invest a couple of thousand into it in the next couple of weeks.
As for 401k, I'm maxing mine out. Mr. Sam will not be eligible for his 401k until September, in the mean time we are putting savings away so he can up his contributions come September. But, we are behind on that goal. We are making good progress on our 2014 IRA savings.
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