We are off to a wedding this weekend, one of Mr. Sam's good friends. In honor of wedding season, see this interesting article from CNN on the high cost of being a bridesmaid. According to CNN it costs, on average, $1695 to be a bridesmaid. Ouch! I'm going to call up my bridesmaids and thank them. Luckily, I was in two of their weddings, so I think that cancels it out. But I have two single bridesmaids and I feel like I owe them some money.
We're spending $400 for flight, $200 for hotel, $150 for Mr. Sam's rental tux (and he owns a tux, but this is for the wedding) and related costs, $1500 for his attendance at bachelor party in Las Vegas, $200 gift and $400 in daily spending money on the trip (we are going for 4 days). Total - $2850.
Thursday, June 30, 2011
Tuesday, June 28, 2011
Tenant Problem
If you follow this little blog, you know that we have a few real estate rentals. With rentals come tenants and in a down market sometimes one can end up with problem tenants. We may or may not be in this boat and we are trying to figure our way out.
We rented one of our properties to some younger guys. These are guys with college degrees, decent jobs (first professional job), who have a clean background (i.e. no criminal issues). But we did rent to three guys (it is a three bedroom home) and these guys have girlfriends and friends and some how the home is often the site for gatherings.
Well one of the neighbors has complained to us via an anonymous letter. The complaint primarily appears to be related to the number of cars parked at the home at any given time. On Friday night, Mr. Sam swung by to check, there were three cars in the driveway (the letter mentioned 5 or 6 cars). The home has a two car garage but the guys are opting not to park in the garage because they've got a boat in the garage that they are working on. Assuming three cars for the guys, a girlfriend or two at the home it does add up to 5 cars or more.
The home is in good repair and the lawn is cut and tended (we pay a service, and our home's lawn looks remarkably good considering the long term drought we are in, much better than many other lawns on the block). We have checked, there are no code issues with the home or police reports (i.e. related to loud parties).
The guys pay the rent on time and they don't call us (which is what Mr. Sam likes). At least one of the guys is looking to buy a home so at present they are on a month to month lease, meaning either of us could give 30 days notice.
The problem is we have one neighbor who is annoyed, we are going to own this property for some time so being on good terms with the neighbors is important. On the other hand, the neighbor opted not to sign the letter so there is no way for us to go back and communicate on this issue. There are no police or code complaints so that leads me to believe this is not really a problem, but of course a complaint to us could be followed by a complaint to code.
What would you do?
We rented one of our properties to some younger guys. These are guys with college degrees, decent jobs (first professional job), who have a clean background (i.e. no criminal issues). But we did rent to three guys (it is a three bedroom home) and these guys have girlfriends and friends and some how the home is often the site for gatherings.
Well one of the neighbors has complained to us via an anonymous letter. The complaint primarily appears to be related to the number of cars parked at the home at any given time. On Friday night, Mr. Sam swung by to check, there were three cars in the driveway (the letter mentioned 5 or 6 cars). The home has a two car garage but the guys are opting not to park in the garage because they've got a boat in the garage that they are working on. Assuming three cars for the guys, a girlfriend or two at the home it does add up to 5 cars or more.
The home is in good repair and the lawn is cut and tended (we pay a service, and our home's lawn looks remarkably good considering the long term drought we are in, much better than many other lawns on the block). We have checked, there are no code issues with the home or police reports (i.e. related to loud parties).
The guys pay the rent on time and they don't call us (which is what Mr. Sam likes). At least one of the guys is looking to buy a home so at present they are on a month to month lease, meaning either of us could give 30 days notice.
The problem is we have one neighbor who is annoyed, we are going to own this property for some time so being on good terms with the neighbors is important. On the other hand, the neighbor opted not to sign the letter so there is no way for us to go back and communicate on this issue. There are no police or code complaints so that leads me to believe this is not really a problem, but of course a complaint to us could be followed by a complaint to code.
What would you do?
Monday, June 27, 2011
2011 Goals - July Update
(1) Max out 401k(s) - $15,943 (48%)(goal is $33,000)
(2) Max out IRA(s) - $10,000 (100%)(goal is $10,000, this goal is completed)
(3) Add to e/r fund - $4,885 (49%)(goal is $10,000)
(4) Pay down mortgage - $2490 (50%)(goal is $5,000)
(5) House projects - $1600 (32%) (goal is $5,000)
Total - $34,918 (55%)
Half way through the year, we are generally on target to complete our goals. We have finished goal number two, we are generally on pace to complete goals one, three and four. We are behind on goal number five, in fact we just started funding this goal the last month or so.
How about you, have you done a mid-year review? Made any adjustments upward or downward regarding your savings, debt payments or other financial goals?
(2) Max out IRA(s) - $10,000 (100%)(goal is $10,000, this goal is completed)
(3) Add to e/r fund - $4,885 (49%)(goal is $10,000)
(4) Pay down mortgage - $2490 (50%)(goal is $5,000)
(5) House projects - $1600 (32%) (goal is $5,000)
Total - $34,918 (55%)
Half way through the year, we are generally on target to complete our goals. We have finished goal number two, we are generally on pace to complete goals one, three and four. We are behind on goal number five, in fact we just started funding this goal the last month or so.
How about you, have you done a mid-year review? Made any adjustments upward or downward regarding your savings, debt payments or other financial goals?
Wednesday, May 18, 2011
2011 Goals - Mid-May Update
(1) Max out 401k(s) - $12,491 (38%)(goal is $33,000)
(2) Max out IRA(s) - $10,000 (100%)(goal is $10,000, this goal is completed)
(3) Add to e/r fund - $3,600 (36%)(goal is $10,000)
(4) Pay down mortgage - $1660 (33%)(goal is $5,000)
(5) House projects - $0 (goal is $5,000)
Total - $27,751 (44%)
(2) Max out IRA(s) - $10,000 (100%)(goal is $10,000, this goal is completed)
(3) Add to e/r fund - $3,600 (36%)(goal is $10,000)
(4) Pay down mortgage - $1660 (33%)(goal is $5,000)
(5) House projects - $0 (goal is $5,000)
Total - $27,751 (44%)
Invest Now or Invest Later?
A Reader in New York had a question regarding whether it is better to fully fund an investment, i.e. our IRAs, early in the year or spread out the investments over the course of the year to take advantage of dollar-cost averaging. Great question.
First, although we have fully funded our IRAs for 2011 we have not actually invested all that money. We use our IRAs for individual stock investments. We pick out stocks that we like based on our investment goals and then we try to buy same on down days via a limit order. We plan to hold these investments for at least 3-5 years or until they double in value.
Second, for our 401k contributions we contribute over the course of the full year. We do so for budgeting purposes.
Third, regarding dollar cost averaging. Our savings goals are really a savings snow-ball. I stay motivated with savings by working towards the goals and crossing them off as soon as possible. If I could fully fund our 401ks earlier in the year, I would do so.
I'm not an investment expert, but my goal is to get my/our money invested as quick as possible. Get that money working sooner rather than later. Here is an expert's opinion and explanation that sums up my feelings about this issue.
What say you? Are you pro dollar-cost averaging and if so, why?
First, although we have fully funded our IRAs for 2011 we have not actually invested all that money. We use our IRAs for individual stock investments. We pick out stocks that we like based on our investment goals and then we try to buy same on down days via a limit order. We plan to hold these investments for at least 3-5 years or until they double in value.
Second, for our 401k contributions we contribute over the course of the full year. We do so for budgeting purposes.
Third, regarding dollar cost averaging. Our savings goals are really a savings snow-ball. I stay motivated with savings by working towards the goals and crossing them off as soon as possible. If I could fully fund our 401ks earlier in the year, I would do so.
I'm not an investment expert, but my goal is to get my/our money invested as quick as possible. Get that money working sooner rather than later. Here is an expert's opinion and explanation that sums up my feelings about this issue.
What say you? Are you pro dollar-cost averaging and if so, why?
Tuesday, May 17, 2011
Monday, May 16, 2011
Managing Major Purchases in a Marriage
I'm married to a wonderful guy who while he pays very little attention to his spending is not a big spender. But, recently, this month, Mr. Sam has come to me (pursuant to our $300 rule*) with a desire to spend about $5,000 on a purchase that makes no sense to me.
Without disclosing the purchase, it is for something that will really only benefit him, has a danger factor, and I think is unnecessary, but will make him happy (or he thinks will make him happy). Think something along the lines of flying lessons when I hate flying.
First of all, we discussed the money factor. I suggested that we save up for the purchase, make it a savings goal, and he would be able to execute the transaction in 2012. Alternatively, we could switch our $5000 house project fund, which is a 2011 savings goal, to a savings fund for him and he would be able to execute the transaction at the end of 2011. But, he wants to move forward with the transaction now. We do have the money, we have money in our emergency fund and we have money in our other short term/mid term savings that we could tap.
Second, happiness. I fully support Mr. Sam in just about anything that he thinks will bring him happiness. This transaction is important to him, something he has wanted to do for many years, etc.
Third, we discussed the fairness factor. I direct the spending of the bulk of our household monies. In the past few years, I've purchased new furniture, a nused car for me, etc. In fact you could go back to our wedding and look at all the funds (granted this was before it was our money) I spent on our special day when he would have rather saved that money. While one could argue that these purchases and expenditures benefited both of us, and they do and did, they benefited me more because I cared much more about them.
Fourth, the danger factor. There is an element of danger to this purchase that I'm not comfortable with. In fact, in discussing the purchase I suggested spending more money to increase safety. I also encouraged him to do more research, etc.
Finally, decision time. Ultimately we decided as a married couple to move forward with the purchase. We are taking $4000 out of our emergency fund to front the cost. However, this week, I'm receiving a bonus at work which will allow us to refund the emergency fund. Said another way, we are using my bonus money to pay for this expense.
* The $300 rule = we have to discuss and agree regarding any purchase over $300.
Without disclosing the purchase, it is for something that will really only benefit him, has a danger factor, and I think is unnecessary, but will make him happy (or he thinks will make him happy). Think something along the lines of flying lessons when I hate flying.
First of all, we discussed the money factor. I suggested that we save up for the purchase, make it a savings goal, and he would be able to execute the transaction in 2012. Alternatively, we could switch our $5000 house project fund, which is a 2011 savings goal, to a savings fund for him and he would be able to execute the transaction at the end of 2011. But, he wants to move forward with the transaction now. We do have the money, we have money in our emergency fund and we have money in our other short term/mid term savings that we could tap.
Second, happiness. I fully support Mr. Sam in just about anything that he thinks will bring him happiness. This transaction is important to him, something he has wanted to do for many years, etc.
Third, we discussed the fairness factor. I direct the spending of the bulk of our household monies. In the past few years, I've purchased new furniture, a nused car for me, etc. In fact you could go back to our wedding and look at all the funds (granted this was before it was our money) I spent on our special day when he would have rather saved that money. While one could argue that these purchases and expenditures benefited both of us, and they do and did, they benefited me more because I cared much more about them.
Fourth, the danger factor. There is an element of danger to this purchase that I'm not comfortable with. In fact, in discussing the purchase I suggested spending more money to increase safety. I also encouraged him to do more research, etc.
Finally, decision time. Ultimately we decided as a married couple to move forward with the purchase. We are taking $4000 out of our emergency fund to front the cost. However, this week, I'm receiving a bonus at work which will allow us to refund the emergency fund. Said another way, we are using my bonus money to pay for this expense.
* The $300 rule = we have to discuss and agree regarding any purchase over $300.
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