We have purchased a new, large, rug for our living room. My favorite store, for home furnishings, is Pottery Barn and that is where the rug is coming from.
Rather than pay cash for the rug, we are electing to use our Pottery Barn credit card. The PB credit card provides a point for each dollar spent and the points add up to rewards. 500 points provides a $50 certificate. We are purchasing a $1000 rug and as such opted to use plastic to obtain the rewards. $100 in rewards will be used to purchase some new glass wear already picked out as well.
Before we went down this path we shopped around to make sure that the rug I had picked out was the best option for us. Meaning that I love Pottery Barn, but there are lots of other home furnishing stores so we needed to make sure that my selection was not out of bounds.
Secondly, we waited the requisite number of days before purchasing the rug (pursuant to our $100 rule). A 10 day wait was required since the purchase was $1000. We actually waited many more days since we were also shopping around.
Third, we have the cash in the bank for this purchase. So even though we are using plastic we will promptly pay off the purchase with cash before we incur any interest or other costs associated with a plastic purchase.
And even after all that I get a little jolt of anxiety running up a $1000+ plus credit card bill.
Thursday, August 25, 2011
Friday, August 12, 2011
The Economics of Coffee
For Christmas last year, I bought Mr. Sam a Keurig single cup coffee machine . He makes a single cup of coffee each morning to take with him and on the weekends we'll each have a cup. I get my coffee, during the week, at work (which has an industrial Keurig coffee machine).
The Keurig system works great, but the coffee pods can be expensive, ranging in price from @ .70 to more than a dollar a pod. So we don't use pods at home, instead we buy good coffee and use the my K cup which allows one to simply use their own coffee in a mini filter cup.
Recently, I was in a Dunkin Donuts store (my favorite coffee) and noticed they were now selling coffee pods of DD coffee. I thought that was interesting, wouldn't they be undermining their customer base by offering such an easy option for home brewing? But then I noticed the price, $13.99 for a box of 14 pods, basically $1 a pod. The price for hot coffee in the retail store starts at about $1.20 for a small. So the pods are about the same price, of course a pod will work for a large or an extra large serving and you save on gas and time.
My favorite pod flavor at work is "Donut Shop" which I think mimics the flavor of Dunkin coffee. Amazon.com has a 50 pack of the Donut Shop pods for $30 or .60 a pod, that is the best price I've seen in the pods.
We will probably stick with our current system of simply using our favorite coffee in the my K cup, that is the cheapest option and the coffee is good.
The Keurig system works great, but the coffee pods can be expensive, ranging in price from @ .70 to more than a dollar a pod. So we don't use pods at home, instead we buy good coffee and use the my K cup which allows one to simply use their own coffee in a mini filter cup.
Recently, I was in a Dunkin Donuts store (my favorite coffee) and noticed they were now selling coffee pods of DD coffee. I thought that was interesting, wouldn't they be undermining their customer base by offering such an easy option for home brewing? But then I noticed the price, $13.99 for a box of 14 pods, basically $1 a pod. The price for hot coffee in the retail store starts at about $1.20 for a small. So the pods are about the same price, of course a pod will work for a large or an extra large serving and you save on gas and time.
My favorite pod flavor at work is "Donut Shop" which I think mimics the flavor of Dunkin coffee. Amazon.com has a 50 pack of the Donut Shop pods for $30 or .60 a pod, that is the best price I've seen in the pods.
We will probably stick with our current system of simply using our favorite coffee in the my K cup, that is the cheapest option and the coffee is good.
Thursday, August 11, 2011
ING Takeover by Capital One
I'm a bit slow to post on the sale of ING to Capital One and the outpouring of emotions on the interwebs about the end of happy savers at ING.
I'm a big fan of ING, have been a happy saver at ING since April 2003. I give them high marks for ease of use, the ability to set up multiple sub accounts for different savings goals, ease of setting up recurring transfers in order to build savings, etc.
And in the past I've used ING for our CD ladders although I don't have any presently because the interest rate for CDs are so dismal (I can get the same return in the regular ING savings account). And what was a high yield savings account is now down to 1% although still much higher than I can obtain at my local bank, Wells Fargo, or my local credit unions.
So, high marks for function, form, ease of use, customer service, low marks for interest rate but still better than I'd get anywhere else.
Now, as for Capital One, I've got a credit card with them and can't say I've ever had any trouble with them although they do, generally, get low marks for customer service. I don't use the credit card with any regularity so can't really offer an opinion.
I'm a big fan of ING, have been a happy saver at ING since April 2003. I give them high marks for ease of use, the ability to set up multiple sub accounts for different savings goals, ease of setting up recurring transfers in order to build savings, etc.
And in the past I've used ING for our CD ladders although I don't have any presently because the interest rate for CDs are so dismal (I can get the same return in the regular ING savings account). And what was a high yield savings account is now down to 1% although still much higher than I can obtain at my local bank, Wells Fargo, or my local credit unions.
So, high marks for function, form, ease of use, customer service, low marks for interest rate but still better than I'd get anywhere else.
Now, as for Capital One, I've got a credit card with them and can't say I've ever had any trouble with them although they do, generally, get low marks for customer service. I don't use the credit card with any regularity so can't really offer an opinion.
Tuesday, August 9, 2011
2011 Goals - August Update
(1) Max out 401k(s) - $19,440 (59%)(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 - $6,100 (61%)(goal is $10,000)
(4) Pay down mortgage - $2,905 (58%)(goal is $5,000)
(5) House projects - $1,800 (36%) (goal is $5,000)
Total - $40,245 (64%)
(2) Max out IRA(s) - $10,000 (100%)(goal is $10,000, this goal is completed)
(3) Add to e/r fund - $6,100 (61%)(goal is $10,000)
(4) Pay down mortgage - $2,905 (58%)(goal is $5,000)
(5) House projects - $1,800 (36%) (goal is $5,000)
Total - $40,245 (64%)
Monday, August 8, 2011
Market Impact on our NetWorth
With the recent market volatility we have been pushed back below the millionaire mark. We also had a major expense for which we had planned for, but had to take $10,000+ out of our short term savings.
Bummer . . .
Bummer . . .
Sunday, August 7, 2011
Other Goals
In addition to our 2011 savings goals, we had a couple of other financial goals that I documented in this January 2011 post.
I'm pleased to report that we have completed goal number three, which was to get our debt below $600,000. In fact, today when I was updating our NetWorthIQ profile, I calculated that our debt is now at $598,247.
Although our mortgage debt may edge up a bit in the near future because we are working to refinance one of our rental properties and rather than paying the closing costs up front we are rolling those costs into the new loan. But it makes sense to refinance since we will be moving from a 6% plus loan to a 4% plus loan, we are keeping the payoff term the same and our monthly costs, even with the closing costs rolled in will be reduced.
I'm pleased to report that we have completed goal number three, which was to get our debt below $600,000. In fact, today when I was updating our NetWorthIQ profile, I calculated that our debt is now at $598,247.
Although our mortgage debt may edge up a bit in the near future because we are working to refinance one of our rental properties and rather than paying the closing costs up front we are rolling those costs into the new loan. But it makes sense to refinance since we will be moving from a 6% plus loan to a 4% plus loan, we are keeping the payoff term the same and our monthly costs, even with the closing costs rolled in will be reduced.
Tuesday, July 26, 2011
Bill Pay
I bank at Wachovia which is now Wells Fargo. And according to this article, Wells Fargo's bill pay options works differently than Wachovia.
Wachovia debited bills paid through bill pay the day they were paid. Wells Fargo debits bills paid through bill pay the day they are "sent". And according to the article this results in, up to, a five day float in favor of Wells Fargo.
Both systems have their pros and cons depending on what kind of customer you are. Wells Fargo's system makes sure you've got money in your account when you send those payments out by bill pay. If you live life close to the edge this might be a good system in that you and your bank are sure you've got the funds available to make these payments. If you normally have a cushion in your account, then the risk based system, the old Wachovia system, would be better in that your money would not be tied up for days on end.
For me, the switch from Wachovia to Wells Fargo required me to reschedule our one recurring auto payment from a few days before the end of the month to the first of the next month. I had to change the send date to what was previously the paid date.
The rest of my recurring payments, the ones that are set on auto pilot, i.e. our mortgage payments, money transferred to savings is all set up as pulled payments (i.e. ING pulls the savings money from our Wells Fargo account). Therefore, the change from Wachovia to Wells Fargo did not impact these payments or transfers.
The rest of my electronic payments are sent through bill pay, but not as auto payments since the amounts change from month to month and since I review those bills each month. When I sent those payments under Wachovia I always had the money in hand so nothing changes under Wells Fargo.
So far, the payments I've sent by bill pay under Wells Fargo have been processed the same, in my mind, as with Wachovia. I understand that WF is pulling the money from my account when I send the payment, but all payments are processed within a day or so, same as Wachovia, so I'm not really noticing that my money is tied up any more or less than under the Wachovia system. I'm probably not noticing a change because when I paid bills under the bill pay system with Wachovia, I counted that money as debited that day.
What do you think of this change, how does your bank work, how to you manage this?
Wachovia debited bills paid through bill pay the day they were paid. Wells Fargo debits bills paid through bill pay the day they are "sent". And according to the article this results in, up to, a five day float in favor of Wells Fargo.
Both systems have their pros and cons depending on what kind of customer you are. Wells Fargo's system makes sure you've got money in your account when you send those payments out by bill pay. If you live life close to the edge this might be a good system in that you and your bank are sure you've got the funds available to make these payments. If you normally have a cushion in your account, then the risk based system, the old Wachovia system, would be better in that your money would not be tied up for days on end.
For me, the switch from Wachovia to Wells Fargo required me to reschedule our one recurring auto payment from a few days before the end of the month to the first of the next month. I had to change the send date to what was previously the paid date.
The rest of my recurring payments, the ones that are set on auto pilot, i.e. our mortgage payments, money transferred to savings is all set up as pulled payments (i.e. ING pulls the savings money from our Wells Fargo account). Therefore, the change from Wachovia to Wells Fargo did not impact these payments or transfers.
The rest of my electronic payments are sent through bill pay, but not as auto payments since the amounts change from month to month and since I review those bills each month. When I sent those payments under Wachovia I always had the money in hand so nothing changes under Wells Fargo.
So far, the payments I've sent by bill pay under Wells Fargo have been processed the same, in my mind, as with Wachovia. I understand that WF is pulling the money from my account when I send the payment, but all payments are processed within a day or so, same as Wachovia, so I'm not really noticing that my money is tied up any more or less than under the Wachovia system. I'm probably not noticing a change because when I paid bills under the bill pay system with Wachovia, I counted that money as debited that day.
What do you think of this change, how does your bank work, how to you manage this?
Monday, July 25, 2011
2011 Goals - July Update
(1) Max out 401k(s) - $17,143 (52%)(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 - $5,700 (52%)(goal is $10,000)
(4) Pay down mortgage - $2490 (50%)(goal is $5,000)
(5) House projects - $1725 (35%) (goal is $5,000)
Total - $37,058 (59%)
Progress has slowed a bit, although because we were ahead on our goals we are still on target.
(2) Max out IRA(s) - $10,000 (100%)(goal is $10,000, this goal is completed)
(3) Add to e/r fund - $5,700 (52%)(goal is $10,000)
(4) Pay down mortgage - $2490 (50%)(goal is $5,000)
(5) House projects - $1725 (35%) (goal is $5,000)
Total - $37,058 (59%)
Progress has slowed a bit, although because we were ahead on our goals we are still on target.
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