Tuesday, March 22, 2011
Mortgage Calculator
In case you were wondering, here's Bankrate's calculator to see what effect an extra $50/month, or putting your annual tax return to your house payment, has on your mortgage.
It's a Generational Thing
I read an article recently talking about how the current generation of college graduates will be the most frugal, basically since the Great Depression. They will be a generation that will save more than they spend, that will drive used cars, and that will put off buying a house until they have a 20% or more down payment saved up.
This is because they are graduating college and entering a world where jobs are hard to find and harder to keep. A world where their parents are continuing to work because their retirement savings were reduced or swept away, and their family homes are worth less-than-planned, if they can even be sold.
However, I am not of that generation. I am a 30-something. He is a 40-something. We own a home already, as do many of our friends. Although my car is now 8 years old, I bought it new at a time when many of my friends were buying cars new.
Most importantly, we (my generation) are already deeply upside down in our homes. We simply didn't own them long enough before the market crashed. If we have a car payment, we're upside down on that, too. We've gotten into debt (more than our parents did), and we're figuring out how to pay that off while still trying to have everything our parents had and more.
We're closer to retirement then those just getting out of college, and just keeping our fingers crossed and our prayers loud and clear that things will recover "in time" for us, and we're wondering how we will help our parents as they reach retirement age with drastically smaller incomes then they planned on.
As a follower of Dave Ramsey, there were a few things I had deeply ingrained in me during my broke years. The baby steps, the baby steps were like the Yellow Brick Road. Simply follow them without question and you will reach the debt-free Emerald City:
1) Build a "Baby" Emergency Fund
2) Pay off consumer debt
3) Fully fund your Emergency Fund to 3-6 months
4) Invest 15% of household income into retirement (pre-tax & ROTH IRAs)
5) College Funding for Children
6) Pay off House
7) Build Wealth & Give
Then what happened? Layoffs and downsizing ran rampant and even the debt experts said to stop paying more than minimums and IMMEDIATELY increase your emergency fund. Fund one or two YEARS of expenses, in fact, before you thought about socking money to a credit card payment.
The bottom fell out of the housing market and a mortgage became a bad debt, as well. Looking at the market value of our home today, despite all the work we have done to improve it, it will be 2027 before we've paid off enough of our house to break even.
Sure, we would LIKE to think the market will come back, but we can't KNOW that. So. 2027. Sixteen years from today. I won't be at retirement age yet, but he won't be so far off. And that's not to make a profit in the selling and have that cash to roll into a smaller home. It's just to break even.
It makes me wonder if it's time to rewrite the baby step order again. Does the house need to get paid off right along with consumer debt?
If I was still doing my "debt snowball", and was only minimally funding retirement and savings, we could double our mortgage payment, quite honestly. If we did that, we would be "right-side up" on our home in two years, and have it paid in full in eight years. (If you've ever DONE a debt snowball, you know that once you're snowballing, it keeps getting bigger....so that eight years is actually a worse-case scenario.)
For many of us, our home loans have taken on the weight of consumer debt. Considering relocating? Too bad, you can't sell your home. Want to do a major remodel? There's no home equity loans, because there's no equity. Every month you make a mortgage payment and it's just a reminder that you bought too soon, paid too much, made a bad choice, or simply got screwed by the world at large.
Do you get out from under that, and then fully fund your retirement with an easy mind? Or do you trust the simple steps laid out by people a lot smarter than me?
This is because they are graduating college and entering a world where jobs are hard to find and harder to keep. A world where their parents are continuing to work because their retirement savings were reduced or swept away, and their family homes are worth less-than-planned, if they can even be sold.
However, I am not of that generation. I am a 30-something. He is a 40-something. We own a home already, as do many of our friends. Although my car is now 8 years old, I bought it new at a time when many of my friends were buying cars new.
Most importantly, we (my generation) are already deeply upside down in our homes. We simply didn't own them long enough before the market crashed. If we have a car payment, we're upside down on that, too. We've gotten into debt (more than our parents did), and we're figuring out how to pay that off while still trying to have everything our parents had and more.
We're closer to retirement then those just getting out of college, and just keeping our fingers crossed and our prayers loud and clear that things will recover "in time" for us, and we're wondering how we will help our parents as they reach retirement age with drastically smaller incomes then they planned on.
As a follower of Dave Ramsey, there were a few things I had deeply ingrained in me during my broke years. The baby steps, the baby steps were like the Yellow Brick Road. Simply follow them without question and you will reach the debt-free Emerald City:
1) Build a "Baby" Emergency Fund
2) Pay off consumer debt
3) Fully fund your Emergency Fund to 3-6 months
4) Invest 15% of household income into retirement (pre-tax & ROTH IRAs)
5) College Funding for Children
6) Pay off House
7) Build Wealth & Give
Then what happened? Layoffs and downsizing ran rampant and even the debt experts said to stop paying more than minimums and IMMEDIATELY increase your emergency fund. Fund one or two YEARS of expenses, in fact, before you thought about socking money to a credit card payment.
The bottom fell out of the housing market and a mortgage became a bad debt, as well. Looking at the market value of our home today, despite all the work we have done to improve it, it will be 2027 before we've paid off enough of our house to break even.
Sure, we would LIKE to think the market will come back, but we can't KNOW that. So. 2027. Sixteen years from today. I won't be at retirement age yet, but he won't be so far off. And that's not to make a profit in the selling and have that cash to roll into a smaller home. It's just to break even.
It makes me wonder if it's time to rewrite the baby step order again. Does the house need to get paid off right along with consumer debt?
If I was still doing my "debt snowball", and was only minimally funding retirement and savings, we could double our mortgage payment, quite honestly. If we did that, we would be "right-side up" on our home in two years, and have it paid in full in eight years. (If you've ever DONE a debt snowball, you know that once you're snowballing, it keeps getting bigger....so that eight years is actually a worse-case scenario.)
For many of us, our home loans have taken on the weight of consumer debt. Considering relocating? Too bad, you can't sell your home. Want to do a major remodel? There's no home equity loans, because there's no equity. Every month you make a mortgage payment and it's just a reminder that you bought too soon, paid too much, made a bad choice, or simply got screwed by the world at large.
Do you get out from under that, and then fully fund your retirement with an easy mind? Or do you trust the simple steps laid out by people a lot smarter than me?
Monday, March 21, 2011
Top Five Purchases for the Unbroke Kitchen
1. Invest in seasonings and spices. Pick up one or two whenever you have some extra grocery money until you have a variety. I know they look pricey, but they go a long way and they will keep you from getting bored.
Can you fry an egg? Can you fry an egg and put pepper on it? Can you fry and egg and put thyme on it? Italian seasoning? Paprika? Mrs. Dash? Dry Ranch seasoning? (ohh, yea, its good).
Same thing with homemade french fries and chicken and who knows what else? You can change the taste of foods with some good seasoning and you can make your food taste as good as any restaurant with a few spices.
2. Get yourself some Bisquick. Not to be a walking advertisement, but this stuff is handy. Biscuits. Pancakes. Pizza Dough. Baked chicken. Chicken Pot Pie. Banana Bread?
Basically Bisquick is nothing more than flour, leavener (baking powder) and shortening already mixed together. So, on the one hand, yes, it’s pricier then those three things. On the other hand, it takes up less space, if you’re not a cook its less intimidating to mix water & Bisquick then it is to have to measure four or five ingredients, and, if you’re not using it that often you won’t be in danger of having something go bad.
I, personally, don’t have flour, sugar or baking powder in my house.
3. Bread crumbs
Breaded chicken. Mix up a box of $0.33 macaroni and cheese, toss it in a casserole dish, sprinkle on some breadcrumbs and broil it for a few minutes and, boom, fancy baked Mac & cheese. Meatloaf, meatballs, meat patties. My mother has a no-fail recipe involving chopped mushrooms and breadcrumbs she calls stuffed mushrooms.
4. Buy organic milk if you don’t drink a lot of milk. Yes, its more expensive up front, but check out the expiration date on that bad boy! No more throwing away 2/3s of the milk every time you buy some.
5. Eggs. Have you noticed that medium eggs are much less expensive then extra large? Did you know that an egg is actually “still good” for quite a while after the expiration date? A handy test is to put a whole raw egg (in its shell) into a glass of water. If it sinks it’s good. (If it floats it’s bad. If it hovers halfway up the glass it just depends how lucky you’re feeling.) And my GOSH you can do so many things with eggs! You can make them taste like ANYTHING!
Can you fry an egg? Can you fry an egg and put pepper on it? Can you fry and egg and put thyme on it? Italian seasoning? Paprika? Mrs. Dash? Dry Ranch seasoning? (ohh, yea, its good).
Same thing with homemade french fries and chicken and who knows what else? You can change the taste of foods with some good seasoning and you can make your food taste as good as any restaurant with a few spices.
2. Get yourself some Bisquick. Not to be a walking advertisement, but this stuff is handy. Biscuits. Pancakes. Pizza Dough. Baked chicken. Chicken Pot Pie. Banana Bread?
Basically Bisquick is nothing more than flour, leavener (baking powder) and shortening already mixed together. So, on the one hand, yes, it’s pricier then those three things. On the other hand, it takes up less space, if you’re not a cook its less intimidating to mix water & Bisquick then it is to have to measure four or five ingredients, and, if you’re not using it that often you won’t be in danger of having something go bad.
I, personally, don’t have flour, sugar or baking powder in my house.
3. Bread crumbs
Breaded chicken. Mix up a box of $0.33 macaroni and cheese, toss it in a casserole dish, sprinkle on some breadcrumbs and broil it for a few minutes and, boom, fancy baked Mac & cheese. Meatloaf, meatballs, meat patties. My mother has a no-fail recipe involving chopped mushrooms and breadcrumbs she calls stuffed mushrooms.
4. Buy organic milk if you don’t drink a lot of milk. Yes, its more expensive up front, but check out the expiration date on that bad boy! No more throwing away 2/3s of the milk every time you buy some.
5. Eggs. Have you noticed that medium eggs are much less expensive then extra large? Did you know that an egg is actually “still good” for quite a while after the expiration date? A handy test is to put a whole raw egg (in its shell) into a glass of water. If it sinks it’s good. (If it floats it’s bad. If it hovers halfway up the glass it just depends how lucky you’re feeling.) And my GOSH you can do so many things with eggs! You can make them taste like ANYTHING!
Sunday, March 20, 2011
Grocery Ads ~ Not for a Newbie!
I am a lucky woman this week. He did the grocery shopping.
I should clarify, he is always willing to go to the grocery store with me, and even happy to go on his own, however, when I throw in the need to price match and provide coupons, he starts getting a bit faint at heart over the grocery shopping experience.
I admit there are weeks I think that the grocery shopping is becoming a frustrating, full-time job, and I wonder if it is all worth it. After all, when I was IN debt, I didn't DO any of this ~ I just bought as little as possible as cheaply as possible. Coupons and food ads were simply dangerous temptations.
I do it because of the weeks that I save 45 - 50% of what I spend. That makes me feel like it's worth the time. However, I am always trying to streamline the process (and set up weeks where he can do the grocery shopping without either of us feeling like more money was spent because there was no time-consuming price-matching).
Our food ads arrive every Wednesday. That evening, I sit down with the ads, a pad of free post-it notes I got some years back and am always trying to use up (aka, scrap paper), and a pen.
Living in Omaha, which is a per capita champion for restaurants and grocery stores, my free ads cover 9 or 10 different grocery store chains each week. I look through each one, even the ones I have never shopped at, and I write down on a scratch paper anything I MIGHT buy that is listed in the ad. If nothing gets written down for an ad, I can toss it in the recycle bin right away, otherwise I save it for price-matching purposes.
Once I have all the lists written down, I compare them, and CROSS OUT the duplicates. This is an important step, for me. In fact, it's this step that inspired this blog post this week!
Spring is coming, barbecues are coming out of hibernation and KC Masterpiece BBQ sauce is on sale all over town. I have a 50 cent coupon, as well.
The first ad I looked at advertised KC Masterpiece for $1.48 per bottle. Not a bad deal, and significantly better than the next ad, which was offering it for $5 for 2 bottles. However, it was the 8th ad I looked through that was selling the same size bottle for $0.99! With my $0.50 coupon, that's only $0.49 a bottle! I want to be sure to cross of those other prices so I don't accidentally end up buying 2 for $5!
Usually, the pile of ads and scraps of paper get set aside until Saturday or Sunday morning. At that time, I dig them out, and use a new scrap of paper to write a list of meals I think I can make using the food I STILL HAVE. On another paper, my grocery list ~ without looking at ads or coupons yet ~ this is just a list of things I need to buy for this week, in order to have four solid dinners, 20 servings of fresh fruit, 20 snacks for our work day, and a few lunches for the days we don't have left overs. Sometimes it's even loose, like "Morning Snack something," that can be specified based on what's on sale.
Then comes the compiling. What is on my grocery list gets compared to what was on the papers from each store (much easier then looking at the ads). Things that are truly good deals on non-perishables get added to the list as well, though, due to the size of our pantry, these have to be REALLY good deals.
I aim to be able to hit only one store, but not all stores do price-matching, so it takes some balancing, and I often end up hitting two stores. Luckily, the store closest to me does price matching, and offers Our Family brand store items, as do several of the other stores, so I can even price match store brands.
List completed, then out come the coupons. As I go through the pile pulling ones for items I will be buying, I also pull any that expire in the next week. If I don't want to buy the item, I toss the coupon.
At that point, I am almost complete. The last stop is to the computer. www.smartsource.com for any additional coupons on ITEMS I ALREADY PLAN TO BUY. The website for the grocery store I plan to visit ~ Our Family brand offers coupons, usually on the items already on sale, and they also have Nash Brothers coupons, which is the organic store brand. Bakers (a division of Kroger), not only offers store coupons, but lets you "load" them on to your customer card ~ so you don't need to print them out or remember to take them with you (and you can send your less Type-A-personality family members to the store). If you haven't visited your store website yet, do it ASAP!
If I am lucky, after all that, I have a week like this one, where we could get by with shopping at one store, buying mainly items that were in the weekly ad, and using only one coupon.
(The 99 cent bbq sauce I will pick up, with coupon, later in the week when I am close to that store, anyway.)
I should clarify, he is always willing to go to the grocery store with me, and even happy to go on his own, however, when I throw in the need to price match and provide coupons, he starts getting a bit faint at heart over the grocery shopping experience.
I admit there are weeks I think that the grocery shopping is becoming a frustrating, full-time job, and I wonder if it is all worth it. After all, when I was IN debt, I didn't DO any of this ~ I just bought as little as possible as cheaply as possible. Coupons and food ads were simply dangerous temptations.
I do it because of the weeks that I save 45 - 50% of what I spend. That makes me feel like it's worth the time. However, I am always trying to streamline the process (and set up weeks where he can do the grocery shopping without either of us feeling like more money was spent because there was no time-consuming price-matching).
Our food ads arrive every Wednesday. That evening, I sit down with the ads, a pad of free post-it notes I got some years back and am always trying to use up (aka, scrap paper), and a pen.
Living in Omaha, which is a per capita champion for restaurants and grocery stores, my free ads cover 9 or 10 different grocery store chains each week. I look through each one, even the ones I have never shopped at, and I write down on a scratch paper anything I MIGHT buy that is listed in the ad. If nothing gets written down for an ad, I can toss it in the recycle bin right away, otherwise I save it for price-matching purposes.
Once I have all the lists written down, I compare them, and CROSS OUT the duplicates. This is an important step, for me. In fact, it's this step that inspired this blog post this week!
Spring is coming, barbecues are coming out of hibernation and KC Masterpiece BBQ sauce is on sale all over town. I have a 50 cent coupon, as well.
The first ad I looked at advertised KC Masterpiece for $1.48 per bottle. Not a bad deal, and significantly better than the next ad, which was offering it for $5 for 2 bottles. However, it was the 8th ad I looked through that was selling the same size bottle for $0.99! With my $0.50 coupon, that's only $0.49 a bottle! I want to be sure to cross of those other prices so I don't accidentally end up buying 2 for $5!
Usually, the pile of ads and scraps of paper get set aside until Saturday or Sunday morning. At that time, I dig them out, and use a new scrap of paper to write a list of meals I think I can make using the food I STILL HAVE. On another paper, my grocery list ~ without looking at ads or coupons yet ~ this is just a list of things I need to buy for this week, in order to have four solid dinners, 20 servings of fresh fruit, 20 snacks for our work day, and a few lunches for the days we don't have left overs. Sometimes it's even loose, like "Morning Snack something," that can be specified based on what's on sale.
Then comes the compiling. What is on my grocery list gets compared to what was on the papers from each store (much easier then looking at the ads). Things that are truly good deals on non-perishables get added to the list as well, though, due to the size of our pantry, these have to be REALLY good deals.
I aim to be able to hit only one store, but not all stores do price-matching, so it takes some balancing, and I often end up hitting two stores. Luckily, the store closest to me does price matching, and offers Our Family brand store items, as do several of the other stores, so I can even price match store brands.
List completed, then out come the coupons. As I go through the pile pulling ones for items I will be buying, I also pull any that expire in the next week. If I don't want to buy the item, I toss the coupon.
At that point, I am almost complete. The last stop is to the computer. www.smartsource.com for any additional coupons on ITEMS I ALREADY PLAN TO BUY. The website for the grocery store I plan to visit ~ Our Family brand offers coupons, usually on the items already on sale, and they also have Nash Brothers coupons, which is the organic store brand. Bakers (a division of Kroger), not only offers store coupons, but lets you "load" them on to your customer card ~ so you don't need to print them out or remember to take them with you (and you can send your less Type-A-personality family members to the store). If you haven't visited your store website yet, do it ASAP!
If I am lucky, after all that, I have a week like this one, where we could get by with shopping at one store, buying mainly items that were in the weekly ad, and using only one coupon.
(The 99 cent bbq sauce I will pick up, with coupon, later in the week when I am close to that store, anyway.)
Tuesday, March 15, 2011
I want. . . .
I want a gym in my basement. Not a padded floor and a set of dumbbells. I want an elliptical and a spin bike and bosu balls and stability balls and mirrors and weights, and a pool. I want a big television and surround sound, so that I am always comfortable working out.
I want a dishwasher. And a pantry big enough to stay organized when I "stock up a three month supply of non-perishables when they are on sale," just like all the frugal top 10 lists recommend.
I want Lasik surgery and not to have to wear glasses.
I want to Scuba dive the Great Barrier Reef and take a train across Australia and I want to see Europe and South America, and heck, in the summer I wouldn't even mind seeing Antarctica.
I want a garden, with many herbs and vegetables, and I want the green thumb to keep it all alive.
I want a week at Fitness Ridge so I can see what it's like to be a Biggest Loser. I want a week at a spa so I can see what it's like to be primped and pampered.
I want a new wardrobe, and probably an appearance on What Not To Wear.
I want a pedicure.
I want books. LOTS of books. I want a room just for books.
I want a new car, a Nissan Leaf. And a truck. A really big truck. A beater truck that can haul things and you would never notice a new scratch. I want a garage big enough to house my Pontiac Aztek. I want the cash to spoil my Aztek and have the seven-year-old hail damage fixed.
I want to eat out and not notice the prices. I want to eat out and have it be a meal that doesn't make me think "I could have made this at home for a fraction of the cost." I want to know how restaurants justify charging $3 for a soda.
I don't want to spend my evenings clipping coupons, my Saturday mornings reviewing my weekly budget and spending, my Friday nights planning a grocery list that factors in sales, coupons and a menu plan.
I don't want to look at all the deals on new STUFF (cars, homes, electronics) and be so level-headed as to say "You don't need that. If you really want it, you'll save up for it and that deal will probably STILL be there. Or it will be a BETTER deal. Or something new will be out you want MORE."
I want to spend guilt-free, thought-free.
But I am happy I now have $5,000 in savings, for the first time in my life.
I am happy I am fully funding my retirement fund and may be able to see the world, guilt-free, someday, when I qualify for AARP discounts.
I want and I want and I want today, and it is hard at times to convince myself that the work of today and tomorrow and tomorrow's tomorrow will all pay off in the end.
I want a dishwasher. And a pantry big enough to stay organized when I "stock up a three month supply of non-perishables when they are on sale," just like all the frugal top 10 lists recommend.
I want Lasik surgery and not to have to wear glasses.
I want to Scuba dive the Great Barrier Reef and take a train across Australia and I want to see Europe and South America, and heck, in the summer I wouldn't even mind seeing Antarctica.
I want a garden, with many herbs and vegetables, and I want the green thumb to keep it all alive.
I want a week at Fitness Ridge so I can see what it's like to be a Biggest Loser. I want a week at a spa so I can see what it's like to be primped and pampered.
I want a new wardrobe, and probably an appearance on What Not To Wear.
I want a pedicure.
I want books. LOTS of books. I want a room just for books.
I want a new car, a Nissan Leaf. And a truck. A really big truck. A beater truck that can haul things and you would never notice a new scratch. I want a garage big enough to house my Pontiac Aztek. I want the cash to spoil my Aztek and have the seven-year-old hail damage fixed.
I want to eat out and not notice the prices. I want to eat out and have it be a meal that doesn't make me think "I could have made this at home for a fraction of the cost." I want to know how restaurants justify charging $3 for a soda.
I don't want to spend my evenings clipping coupons, my Saturday mornings reviewing my weekly budget and spending, my Friday nights planning a grocery list that factors in sales, coupons and a menu plan.
I don't want to look at all the deals on new STUFF (cars, homes, electronics) and be so level-headed as to say "You don't need that. If you really want it, you'll save up for it and that deal will probably STILL be there. Or it will be a BETTER deal. Or something new will be out you want MORE."
I want to spend guilt-free, thought-free.
But I am happy I now have $5,000 in savings, for the first time in my life.
I am happy I am fully funding my retirement fund and may be able to see the world, guilt-free, someday, when I qualify for AARP discounts.
I want and I want and I want today, and it is hard at times to convince myself that the work of today and tomorrow and tomorrow's tomorrow will all pay off in the end.
Thursday, March 10, 2011
Soreness
Since belonging to an overpriced gym wasn't expense enough, I now have a personal trainer.
This is a decision I went back and forth on for a while. I go to the gym regularly, I get in decent workouts on my own, and I certainly haven't plateaued. So perhaps the added expense of a personal trainer might not be necessary.
On the other hand, I often get to the gym, and wander a bit. A few minutes on the treadmill, a walk around the track, five minutes on the elliptical, a walk past the bikes, a glance at the stair climbers, before heading back for a few more minutes on the treadmill, hopping off for a trip to the water fountain, annnnd, well, you get the idea.
With a personal trainer, all I have to do is show up. No thinking, no planning, nothing to worry about. Even during the workout, someone else is doing the counting, the timing, the watching of my form. Someone else is selecting how much weight I should use and how many reps I should do.
Before I know it, an hour has passed, and my entire body is feeling a workout I barely noticed. The next morning I wake up sore in a way I rarely do when I work out on my own.
This is also my main reasoning behind once again plugging financial planners. If you don't have one, because you didn't believe me when I wrote about them before, it's time to consider one again.
Much like a personal trainer, they are specifically trained to get you in better shape financially. Just like a trainer might help one person lose weight, another person bulk up, and a third person gain stamina; a financial planner can help you design a debt payoff-plan, grow wealth, or just plan for future expenses from college educations to vacations to retirement.
They will discuss your personal goals and make a plan for you using their expertise. A good financial planner will find out what you want, and will set a plan that you might let you feel a little soreness at first (fully funding my ROTH IRA necessitated an adjustment to my regular old savings account contributions, believe me), but overall leaves you feeling better.
Best of all, for me, a financial planner handles the details. You show up, discuss the plan, and then put it into their hands. (OK, you should at least pay attention to the statements and tell them if it's too much or too little...money, risk, etc).
At the end of my six weeks with a personal trainer I know I will see results I would not get on my own, even though she didn't make me do anything I didn't already know HOW to do.
At the end of the year, or 6 years, I know I will see results from my financial planner I would not have gotten on my own, even though I am completely capable of putting that same amount of money aside each month.
This is a decision I went back and forth on for a while. I go to the gym regularly, I get in decent workouts on my own, and I certainly haven't plateaued. So perhaps the added expense of a personal trainer might not be necessary.
On the other hand, I often get to the gym, and wander a bit. A few minutes on the treadmill, a walk around the track, five minutes on the elliptical, a walk past the bikes, a glance at the stair climbers, before heading back for a few more minutes on the treadmill, hopping off for a trip to the water fountain, annnnd, well, you get the idea.
With a personal trainer, all I have to do is show up. No thinking, no planning, nothing to worry about. Even during the workout, someone else is doing the counting, the timing, the watching of my form. Someone else is selecting how much weight I should use and how many reps I should do.
Before I know it, an hour has passed, and my entire body is feeling a workout I barely noticed. The next morning I wake up sore in a way I rarely do when I work out on my own.
This is also my main reasoning behind once again plugging financial planners. If you don't have one, because you didn't believe me when I wrote about them before, it's time to consider one again.
Much like a personal trainer, they are specifically trained to get you in better shape financially. Just like a trainer might help one person lose weight, another person bulk up, and a third person gain stamina; a financial planner can help you design a debt payoff-plan, grow wealth, or just plan for future expenses from college educations to vacations to retirement.
They will discuss your personal goals and make a plan for you using their expertise. A good financial planner will find out what you want, and will set a plan that you might let you feel a little soreness at first (fully funding my ROTH IRA necessitated an adjustment to my regular old savings account contributions, believe me), but overall leaves you feeling better.
Best of all, for me, a financial planner handles the details. You show up, discuss the plan, and then put it into their hands. (OK, you should at least pay attention to the statements and tell them if it's too much or too little...money, risk, etc).
At the end of my six weeks with a personal trainer I know I will see results I would not get on my own, even though she didn't make me do anything I didn't already know HOW to do.
At the end of the year, or 6 years, I know I will see results from my financial planner I would not have gotten on my own, even though I am completely capable of putting that same amount of money aside each month.
Wednesday, March 9, 2011
Stupidest Purchase of the Year
No offense to the makers of the product, but my stupidest purchase of 2010 is Quicken.
Not that it's not a perfectly nice program.
But I don't pay any bills using it. I haven't updated my accounts with it in at least 3 months, and I have never used it to balance my checkbook. I didn't itemize my taxes this year, let alone use Quicken to identify my tax-refundable purchases.
Beyond the first week, when I imported historical bank account info and used it to analyze my spending habits (which, admittedly, was faster then manually plugging it into a spreadsheet), I have not used it for "budgeting" purposes.
I continue to use the spreadsheet I designed when I had no other choice because I couldn't afford computer programs.
I LIKE the spreadsheet I designed. It provides the information I want, but not so much information as to give me overload.
When I was so broke I couldn't afford ANYTHING, I found a way to track every penny (granted, I spent as few as possible.). I didn't but anything for that task, though. I used half-filled notepads and packages of Post-It notes I'd collected over the previous 10 years. The back of the page-a-day calendar pages became worksheets for how much I could send to my credit card that week or month. I used pens I'd collected for free at who-knows-how-many events over the years.
Spending nothing, I paid off old purchases, I paid cash for current purchases, I put money away for future purchases.
It's so much easier for me now ~ I no longer have to worry about old purchases at all.
And I am not out of free pens and pads of paper yet, either.
I thought I was making a wise choice when I purchased Quicken along with my new computer, but I was forgetting a cardinal rule ~ Keep It Simple.
According to e-mails from the manufacturer, by the way, this program I bought mere months ago is already outdated and I am falling behind every week I delay purchasing the 2011 upgrade.
Not that it's not a perfectly nice program.
But I don't pay any bills using it. I haven't updated my accounts with it in at least 3 months, and I have never used it to balance my checkbook. I didn't itemize my taxes this year, let alone use Quicken to identify my tax-refundable purchases.
Beyond the first week, when I imported historical bank account info and used it to analyze my spending habits (which, admittedly, was faster then manually plugging it into a spreadsheet), I have not used it for "budgeting" purposes.
I continue to use the spreadsheet I designed when I had no other choice because I couldn't afford computer programs.
I LIKE the spreadsheet I designed. It provides the information I want, but not so much information as to give me overload.
When I was so broke I couldn't afford ANYTHING, I found a way to track every penny (granted, I spent as few as possible.). I didn't but anything for that task, though. I used half-filled notepads and packages of Post-It notes I'd collected over the previous 10 years. The back of the page-a-day calendar pages became worksheets for how much I could send to my credit card that week or month. I used pens I'd collected for free at who-knows-how-many events over the years.
Spending nothing, I paid off old purchases, I paid cash for current purchases, I put money away for future purchases.
It's so much easier for me now ~ I no longer have to worry about old purchases at all.
And I am not out of free pens and pads of paper yet, either.
I thought I was making a wise choice when I purchased Quicken along with my new computer, but I was forgetting a cardinal rule ~ Keep It Simple.
According to e-mails from the manufacturer, by the way, this program I bought mere months ago is already outdated and I am falling behind every week I delay purchasing the 2011 upgrade.
Succeeding in an At-Home, Direct Sales Business
When I went broke, one of the (many) factors may have been my direct sales business, which I ran poorly, rarely charged customers the correct amount, and kept way too much inventory.
(Yes, Mom, you were right)
Being honest, though, that was due in large part to a series of my own (bad) decisions, and perhaps as well to the as-yet-undiscovered low calcium, that muted my otherwise micro-managing type personality.
Eventually with that business, I became more of a home office assistant to more successful businesswomen, so I can tell you without hesitation that people do succeed in the business. They do make extra income, to be able to become stay-at-home moms or pay off debt or build mansions. They do "win" cars and vacations and other prizes.
More recently, I decided to give the at-home business thing a try again. Ironically, again to pay off medical bills, and, ironically, again while suffering from undiagnosed low calcium. This time, though, I had a few things working in my favor. My eyes were wide open to the dangers of spending money on a business, and my life was significantly more manageable thanks to him being home to keep the dishes clean and food in the fridge.
That second business netted me over $300 a month right from my first month in business. Eventually I did end that business, as well (a regret that I regularly think of correcting, now that the calcium thing is FINALLY worked out and my energy levels are back above those of the average 110 year old.)
Having been at both ends of the spectrum, I have a few words of advice. If you are considering starting a direct sales (ie, Mary Kay, Avon, Tupperware, Pampered Chef, Lia Sophia), business, here's some points to consider:
There's more to success, perhaps, but all I can say, in my most been-there-done-that voice, is if you can follow the above, you'll be leaps and bounds ahead of many others signing up for a business on a whim.
(Yes, Mom, you were right)
Being honest, though, that was due in large part to a series of my own (bad) decisions, and perhaps as well to the as-yet-undiscovered low calcium, that muted my otherwise micro-managing type personality.
Eventually with that business, I became more of a home office assistant to more successful businesswomen, so I can tell you without hesitation that people do succeed in the business. They do make extra income, to be able to become stay-at-home moms or pay off debt or build mansions. They do "win" cars and vacations and other prizes.
More recently, I decided to give the at-home business thing a try again. Ironically, again to pay off medical bills, and, ironically, again while suffering from undiagnosed low calcium. This time, though, I had a few things working in my favor. My eyes were wide open to the dangers of spending money on a business, and my life was significantly more manageable thanks to him being home to keep the dishes clean and food in the fridge.
That second business netted me over $300 a month right from my first month in business. Eventually I did end that business, as well (a regret that I regularly think of correcting, now that the calcium thing is FINALLY worked out and my energy levels are back above those of the average 110 year old.)
Having been at both ends of the spectrum, I have a few words of advice. If you are considering starting a direct sales (ie, Mary Kay, Avon, Tupperware, Pampered Chef, Lia Sophia), business, here's some points to consider:
- Research research research
- You have no idea what is out there in terms of established direct sales businesses. There are 203 members of the Direct Selling Association, and that's just one membership organization. Start there, write down some companies or products you would be interested in.
- Understand the payment plan options out there! The first business I had, I bought product, at a discount, and then sold it for what I wanted, basically. It allowed me to forget tax or shipping, to my detriment. The 2nd business I had, 100% of party sales went to the company, and then I was paid my commission bi-monthly. For me that worked. For people wanting "immediate" income opportunity the first option might be better. Understand the options.
- Find out who's in your area. The second business I started had only one other person serving my entire state when I started. Think about it, if you want to sell candles, because your best friend makes a lot of money selling candles to you and all your friends...who are YOU going to sell candles to? Many direct sell companies have a company wide website that lets you search for consultants by zip code. Make sure your area isn't inundated already.
- Form a realistic idea of inventory levels. The second item I sold didn't want me to have ANY inventory that I sold AT a party ~ it was a food item and they wanted to ship direct to customers to ensure freshness. Other companies would like you to keep popular items on hand, or even all the items. Look at catalogs and think about the variety of product. Think about, if you were the client, would it be something you would want to pick up right away, or would you be okay waiting. With make-up and candles, you might lose sales to the drugstore when customers think "I really like this shade, but I can just stop at the store on the way home."
- Gain an idea of product roll-over. This is tied to inventory levels. In my first business, there were seasonal items that only appeared in one catalog, and then sat on my shelf indefinitely, eventually given away as a door prize. How often does the parent company put out catalogs and how much of that catalog are specials? Think about how you would sell that and inventory it. Regular "new" products helps keep customer's coming back, but regularly "discontinued" products may be hard to sell.
- Pick something you LIKE!
- You want to be thinking about this product in your free time. You want to be trying out new items and having opinions on them. You want to enthusiastically call customers and say "Oh my we just got the cutest new lunch bags and you HAVE to see them." and mean it. Ideally, you want people asking you about the product and chatting you up on the street about it. So, please. Pick something you like. Not to give away the ending, but my first business was make-up. My second business was chocolate.
- You want to know about the product. What other companies are out there, what are their pros and cons. If you can't eat chocolate, you can't compare your product to something your customers already know. You can't think on your feet when a customer says "I love Peppermint Patties" and you say "You MUST try our mint-filled baking bits!" If a customer loves a certain type of jewelry or shops at a certain store, you want to know about that if you're selling jewelry.
- PLAN!
- Don't start a business without already opening a business account. Really. No kidding. OPEN A BUSINESS CHECKING ACCOUNT. Give yourself a loan. At least triple whatever the company says is your "start up" costs, because you're going to need things that aren't in your kit, not just product from the company, but pens. Cotton balls. Serving ware. A bag to lug everything to your party. Labels. Purchase business items from your business account. Period. (And don't pay that loan back until you have double that amount in the account, by the way.)
- Know where you're going to keep your product, both inventory and party supplies. Know where you're going to keep your paperwork. If you want to always have inventory on hand, you might need several shelves & a large portion of your basement. Especially if you're selling baskets or something bulky!
- Know when you're going to work. Its a job, even if it's your business. Look at your calendar, think about your life. If you're like me and you really enjoy Biggest Loser, then say "I can work Mondays and Wednesdays but I prefer not to work Tuesdays" or "Tuesdays are my paperwork day." I can not stress this enough because I did learn it the hard way. HIghlight "party" days on your calendar and work within them.
- If you have a family, make sure they know, in detail. "This room is now my office, and will have product in it for my business." "I will be using the computer for an hour, three nights a week for my business."
There's more to success, perhaps, but all I can say, in my most been-there-done-that voice, is if you can follow the above, you'll be leaps and bounds ahead of many others signing up for a business on a whim.
Tuesday, March 8, 2011
One more thing about travel
Who says I can't be European?
Yes, I DID check trains, too.
$752 total travel, for both of us. We'd be 2 hours from our actual destination. Oh, and travel time would be 40 hours, EACH WAY. AND, as if that wasn't discouraging enough, travel would include 3 hours on a bus each way, so no checked bags are allowed. Trains simply don't run north-south in mid-America. The tracks were laid to run East-West.
Bus travel comes in slightly better. $86 per person each way, or $344 total, and 36 hours travel time each way. We would start in Omaha and arrive at our desired destination. Unfortunately, we would not be traveling in the preferred routes with the "upgraded" buses, so there would be no wi-fi or outlets, which might make bus travel more tempting.
Yes, I DID check trains, too.
$752 total travel, for both of us. We'd be 2 hours from our actual destination. Oh, and travel time would be 40 hours, EACH WAY. AND, as if that wasn't discouraging enough, travel would include 3 hours on a bus each way, so no checked bags are allowed. Trains simply don't run north-south in mid-America. The tracks were laid to run East-West.
Bus travel comes in slightly better. $86 per person each way, or $344 total, and 36 hours travel time each way. We would start in Omaha and arrive at our desired destination. Unfortunately, we would not be traveling in the preferred routes with the "upgraded" buses, so there would be no wi-fi or outlets, which might make bus travel more tempting.
Travel Planning
Right now, we're tossing around the idea of getting to visit some of his family, in southern Texas.
We're in Omaha, and the closest airport to our destination is McAllen.
Simple enough, then, to log on to any old travel site and pop in those airports. Tonight I am using travelocity and saying that my travel dates are flexible, so it will show me the best rate available any time between now and June.
$636, round trip, per person.
It's results like that that make vacation planning difficult! There's no need to panic, though, or to assume we can't take a vacation. This post will be a bit about the process I take as I decide how much I think this trip should cost us.
OK, the ideal travel plan, flying from the airport that is 3 miles from my house to the closest airport will run us $1272, assuming we only take carry on bags or use an airlines with free baggage.
Travelocity recommends I fly from Sioux City, Iowa to Brownsville, Texas, instead. Plane tickets for that trip will run me only $238 per person. However, Sioux City is 90 miles away, which means I will need to plan my travel TIME carefully. I'll also need to park at the airport...... a quick Google search, and I know two things. 1) Parking will run me $7 per day. Depending on our trip, this will be $21 to $49 cost. 2) the code for this airport is SUX. Which has no effect on anything, but makes me laugh. Since Brownsville is also an hour away from the end destination, we would also want to rent a car. Another quick search, this time on Priceline, tells me car rental rates in Brownsville are roughly $22 per day. (Although mid-size cars are oddly the same price as compacts...) There's $30-$50 of taxes and fees to consider, as well. Not to mention gas to consider ~ 300 miles, round trip, between the two airports. As of this moment, (according to Mapquest), gas prices here are $3.50, and at my destination they are $3.40. So, 300 miles at $3.45/gal, and I am looking at roughly $41 in fuel costs. Overall, then, the least expensive airline ticket will cost us $700.
That still seems like a lot, considering we're not even looking at food, lodging or entertainment! Plus, there's a lot of inconvenience factors to consider. He doesn't love traveling, so 2 hours in a car, followed by 2 hours sitting at an airport, the flight itself, THEN picking up a rental car AND another hour in the car before we get to our destination better save us significant amount!
The next option one would always have to consider is driving. In regards to convenience, see above. Although I wouldn't mind a 20hour drive each way, I am not sure we want to spend 40 hours in a car together and call it a vacation. But for the right price. . . . Currently, using that $3.45 average price, and his car (a Nissan Cube, which gets 30mpg), we would be looking at $140 each way for gas. We would also be looking at doubling his annual mileage! An oil change before he leaves and one when he gets back would be another $50. There are also tolls in Kansas, Oklahoma and Texas to consider. With two drivers, we can certainly drive 20 hours without getting a hotel room, but we would need to take at least one extra day off work to recover from the trip, and I would also be sure I had budgeted at least $100 to cover a roadside motel if needed. I would also have to figure foods and snacks for two or even three days of travel . . slightly more even than the above option. Overall, my notes put the driving expense at $500. . .with a close eye on gas prices. In terms of personal preference, I would put this option at slightly better then the driving & flying & driving. Your own car, for me, is always a bonus, especially when it comes to packing. You also have more freedom, when driving. Less waiting around and NOT moving. But driving is more tiring than sleeping on an airplane.
** Note: If we used MY car, instead of his, the estimated gas cost would be $100 more than it is with his on this trip. For me the hurt of putting miles ON his car is out weighed by the benefit of his improved mileage.
The cost of a rental in Omaha would run me $80-$100 after fees (depending on how long we were gone & what size car we got). If we got an Aveo, which is posted at 34 mpg, we could reduce our overall fuel costs to $250. I wouldn't need to pay for the pre- and post-trip maintenance, so my costs would be less then $350. Add the same meals and possible hotel room costs, and I would put the rental at the same $500, roughly, as driving his car. No wear and tear on our car, though, I am not sure I want to roadtrip in a compact car.
After looking at all this, my next step would be to work on WHEN I want to travel, and getting $500-$800 set aside for our trip. When I got to within 6 weeks of the trip, I would want to KNOW I would have the money (ie, have 80% of it already saved), then I would start my hard core bargain hunting.
First, I would recheck airfares. Assuming they are unchanged, I would then priceline a flight, maybe for $200 each, round trip, Omaha to McAllen (That is the $600 flight normally.) Afterall, if we CAN fly, we SHOULD.
When that didn't work out, we would have to weigh time off from work, and look a bit closer at the Sioux City to Brownsville trip, and times. Convenience is IMPORTANT on your vacations! At the same time, I would be seeking car rental deals and sending off for MyPoints gas cards. I would be aiming for a mid-size car for $50/week. . . if we decided we were definitely driving I would priceline something along those lines, because you just never know.
** Another note. He just asked me, as I was sharing the results of tonight's initial research, about renting a car, turning it in when we got to Texas, and then picking up another car to drive back in. This isn't always available, and is often MUCH more expensive. However, every so often it is a good deal, so be sure to check. For example, in the summers it seems a lot of people rent cars in Boston and drive to the coast of Maine. . . and stay there all summer. So, renting a car IN Maine and returning it to Boston is doing the car rental company a bit of a favor. . .and is LESS expensive then simply renting from Boston.
Now. . . to convince him that saving over $700 is worth 2 days in a car. . .
We're in Omaha, and the closest airport to our destination is McAllen.
Simple enough, then, to log on to any old travel site and pop in those airports. Tonight I am using travelocity and saying that my travel dates are flexible, so it will show me the best rate available any time between now and June.
$636, round trip, per person.
It's results like that that make vacation planning difficult! There's no need to panic, though, or to assume we can't take a vacation. This post will be a bit about the process I take as I decide how much I think this trip should cost us.
OK, the ideal travel plan, flying from the airport that is 3 miles from my house to the closest airport will run us $1272, assuming we only take carry on bags or use an airlines with free baggage.
Travelocity recommends I fly from Sioux City, Iowa to Brownsville, Texas, instead. Plane tickets for that trip will run me only $238 per person. However, Sioux City is 90 miles away, which means I will need to plan my travel TIME carefully. I'll also need to park at the airport...... a quick Google search, and I know two things. 1) Parking will run me $7 per day. Depending on our trip, this will be $21 to $49 cost. 2) the code for this airport is SUX. Which has no effect on anything, but makes me laugh. Since Brownsville is also an hour away from the end destination, we would also want to rent a car. Another quick search, this time on Priceline, tells me car rental rates in Brownsville are roughly $22 per day. (Although mid-size cars are oddly the same price as compacts...) There's $30-$50 of taxes and fees to consider, as well. Not to mention gas to consider ~ 300 miles, round trip, between the two airports. As of this moment, (according to Mapquest), gas prices here are $3.50, and at my destination they are $3.40. So, 300 miles at $3.45/gal, and I am looking at roughly $41 in fuel costs. Overall, then, the least expensive airline ticket will cost us $700.
That still seems like a lot, considering we're not even looking at food, lodging or entertainment! Plus, there's a lot of inconvenience factors to consider. He doesn't love traveling, so 2 hours in a car, followed by 2 hours sitting at an airport, the flight itself, THEN picking up a rental car AND another hour in the car before we get to our destination better save us significant amount!
The next option one would always have to consider is driving. In regards to convenience, see above. Although I wouldn't mind a 20hour drive each way, I am not sure we want to spend 40 hours in a car together and call it a vacation. But for the right price. . . . Currently, using that $3.45 average price, and his car (a Nissan Cube, which gets 30mpg), we would be looking at $140 each way for gas. We would also be looking at doubling his annual mileage! An oil change before he leaves and one when he gets back would be another $50. There are also tolls in Kansas, Oklahoma and Texas to consider. With two drivers, we can certainly drive 20 hours without getting a hotel room, but we would need to take at least one extra day off work to recover from the trip, and I would also be sure I had budgeted at least $100 to cover a roadside motel if needed. I would also have to figure foods and snacks for two or even three days of travel . . slightly more even than the above option. Overall, my notes put the driving expense at $500. . .with a close eye on gas prices. In terms of personal preference, I would put this option at slightly better then the driving & flying & driving. Your own car, for me, is always a bonus, especially when it comes to packing. You also have more freedom, when driving. Less waiting around and NOT moving. But driving is more tiring than sleeping on an airplane.
** Note: If we used MY car, instead of his, the estimated gas cost would be $100 more than it is with his on this trip. For me the hurt of putting miles ON his car is out weighed by the benefit of his improved mileage.
The cost of a rental in Omaha would run me $80-$100 after fees (depending on how long we were gone & what size car we got). If we got an Aveo, which is posted at 34 mpg, we could reduce our overall fuel costs to $250. I wouldn't need to pay for the pre- and post-trip maintenance, so my costs would be less then $350. Add the same meals and possible hotel room costs, and I would put the rental at the same $500, roughly, as driving his car. No wear and tear on our car, though, I am not sure I want to roadtrip in a compact car.
After looking at all this, my next step would be to work on WHEN I want to travel, and getting $500-$800 set aside for our trip. When I got to within 6 weeks of the trip, I would want to KNOW I would have the money (ie, have 80% of it already saved), then I would start my hard core bargain hunting.
First, I would recheck airfares. Assuming they are unchanged, I would then priceline a flight, maybe for $200 each, round trip, Omaha to McAllen (That is the $600 flight normally.) Afterall, if we CAN fly, we SHOULD.
When that didn't work out, we would have to weigh time off from work, and look a bit closer at the Sioux City to Brownsville trip, and times. Convenience is IMPORTANT on your vacations! At the same time, I would be seeking car rental deals and sending off for MyPoints gas cards. I would be aiming for a mid-size car for $50/week. . . if we decided we were definitely driving I would priceline something along those lines, because you just never know.
** Another note. He just asked me, as I was sharing the results of tonight's initial research, about renting a car, turning it in when we got to Texas, and then picking up another car to drive back in. This isn't always available, and is often MUCH more expensive. However, every so often it is a good deal, so be sure to check. For example, in the summers it seems a lot of people rent cars in Boston and drive to the coast of Maine. . . and stay there all summer. So, renting a car IN Maine and returning it to Boston is doing the car rental company a bit of a favor. . .and is LESS expensive then simply renting from Boston.
Now. . . to convince him that saving over $700 is worth 2 days in a car. . .
Monday, March 7, 2011
Get Me Outta Here!
If you know me, you probably know that I have become a relative expert on traveling without breaking the bank.
Every so often, I hear someone tell me they've never used Priceline.com, for example, and I am shocked.
A friend recently asked me how I decide when to fly and when to drive. How I reached the decision to put thousands of miles on my own car as compared to renting a car.
So I want to tell you about some of the options I considered before I took my last road trip. In my next post I will talk about the next trip we are planning, and use some actual numbers.
My last trip, which I have mentioned on here a time or two, was a nearly two week long solo road trip from Omaha east, with the farthest destination being Portland, Maine, but with various stops along the way.
The factors I had to consider on that trip were mainly that in one trip I wanted to attend a wedding in Massachusetts and visit friends in that area, as well as visiting friends in Maine and family in New York. I wanted to do all that while spending the least amount of money, and the least amount of time off work (while still getting adequate time with every person I wanted to see, from friend's new babies to family I had not seen in years.)
The first thing I started doing was shopping airfare. Priceline, Travelocity, Expedia, Hotwire, not to mention all the individual airlines. I jotted down a list of "preferred" airports, closest to each of the people I wanted to visit, and I checked airfares from Omaha to each of them, jotting down prices. Then I started checking car rental rates at each of the airports and jotting that down, as well. The car rental rates were staggering.
I started checking car rental rates at other airports around the region, since if I had to fly and drive, it really didn't matter where I flew in to. To save on air fare I started shopping other airports close to home, instead of Omaha.
To shorten the length of the trip, and thus the car expense, I looked into flying into "one end" and flying out at the "other end" (ie, flying into Portland, Maine and out of Rochester, NY.) Probably not surprising, this pushed the expenses even higher.
I looked in to renting a car in Omaha and driving for my vacation, then leaving it at the airport and flying home, and into flying into, well, anywhere in the Northeast and renting a car for return to Omaha.
Because of the unique aspects of this trip, it came down to that I HAD to drive it, in order to visit everyone I wanted to visit. Also, throw into consideration that I rather enjoy long road trips and was pleased with the idea of a bit of time to myself.
Rent a car or drive my own? Ahhh, a good question.
My own car, a 2003 Pontiaz Aztek with over 100,000 miles on it, is no spring chicken. Last year I sunk quite a bit of money in to the ol' Aztek, in new tires and in intake gasket repairs, fluid flushes and replacing a leaky fuel pump. It's fuel mileage is decent, though, well over 20mpg, and the vehicle is reliable. Also, I am comfortable driving my car, even on long distances.
So, the decision came down to, renting a car or driving my own.
It is easy to quantify costs of renting a car: Easy to quote online, plus shave a bit more off with priceline (I always Priceline my rental cars).
The price of gas can be estimated, both for my car and a theoretical rental car (with better gas mileage), at Mapquest. It's a bit harder to find in the new format, but if you scroll down to the bottom of the screen there's a few buttons, one of which is "Mapquest" and if you select that, you'll find "gas prices" and once you get to that screen there will be an option for "gas calculator." (Until Mapquest again hides this REALLY WONDERFUL TOOL!)
For my own car, I needed to include the cost of two oil changes.
Given the age and mileage of my car, and how much I love to drive it (versus a strange rental car that might not have my six-way power seat), I negated the "wear and tear" factory against the "convenience" factor.
If I wasn't a little person who has a hard time driving many cars, I would have probably weighed in favor of getting to "try" a newer car, with newer features (which is the best part of a rental car.)
I also knew I would be doing some shopping while I was traveling and the increased storage capacity of my car also worked in its favor.
So for that trip, driving my own car became the best thing.
I will mention, though, that one item I underestimated in my plans was the cost of tolls between here and there. They weren't enough to have made flying the better option, but they did put me closer to maxing out the credit card I was using for trip expenses! (Don't worry, I paid it in full the day of my return!)
Every so often, I hear someone tell me they've never used Priceline.com, for example, and I am shocked.
A friend recently asked me how I decide when to fly and when to drive. How I reached the decision to put thousands of miles on my own car as compared to renting a car.
So I want to tell you about some of the options I considered before I took my last road trip. In my next post I will talk about the next trip we are planning, and use some actual numbers.
My last trip, which I have mentioned on here a time or two, was a nearly two week long solo road trip from Omaha east, with the farthest destination being Portland, Maine, but with various stops along the way.
The factors I had to consider on that trip were mainly that in one trip I wanted to attend a wedding in Massachusetts and visit friends in that area, as well as visiting friends in Maine and family in New York. I wanted to do all that while spending the least amount of money, and the least amount of time off work (while still getting adequate time with every person I wanted to see, from friend's new babies to family I had not seen in years.)
The first thing I started doing was shopping airfare. Priceline, Travelocity, Expedia, Hotwire, not to mention all the individual airlines. I jotted down a list of "preferred" airports, closest to each of the people I wanted to visit, and I checked airfares from Omaha to each of them, jotting down prices. Then I started checking car rental rates at each of the airports and jotting that down, as well. The car rental rates were staggering.
I started checking car rental rates at other airports around the region, since if I had to fly and drive, it really didn't matter where I flew in to. To save on air fare I started shopping other airports close to home, instead of Omaha.
To shorten the length of the trip, and thus the car expense, I looked into flying into "one end" and flying out at the "other end" (ie, flying into Portland, Maine and out of Rochester, NY.) Probably not surprising, this pushed the expenses even higher.
I looked in to renting a car in Omaha and driving for my vacation, then leaving it at the airport and flying home, and into flying into, well, anywhere in the Northeast and renting a car for return to Omaha.
Because of the unique aspects of this trip, it came down to that I HAD to drive it, in order to visit everyone I wanted to visit. Also, throw into consideration that I rather enjoy long road trips and was pleased with the idea of a bit of time to myself.
Rent a car or drive my own? Ahhh, a good question.
My own car, a 2003 Pontiaz Aztek with over 100,000 miles on it, is no spring chicken. Last year I sunk quite a bit of money in to the ol' Aztek, in new tires and in intake gasket repairs, fluid flushes and replacing a leaky fuel pump. It's fuel mileage is decent, though, well over 20mpg, and the vehicle is reliable. Also, I am comfortable driving my car, even on long distances.
So, the decision came down to, renting a car or driving my own.
It is easy to quantify costs of renting a car: Easy to quote online, plus shave a bit more off with priceline (I always Priceline my rental cars).
The price of gas can be estimated, both for my car and a theoretical rental car (with better gas mileage), at Mapquest. It's a bit harder to find in the new format, but if you scroll down to the bottom of the screen there's a few buttons, one of which is "Mapquest" and if you select that, you'll find "gas prices" and once you get to that screen there will be an option for "gas calculator." (Until Mapquest again hides this REALLY WONDERFUL TOOL!)
For my own car, I needed to include the cost of two oil changes.
Given the age and mileage of my car, and how much I love to drive it (versus a strange rental car that might not have my six-way power seat), I negated the "wear and tear" factory against the "convenience" factor.
If I wasn't a little person who has a hard time driving many cars, I would have probably weighed in favor of getting to "try" a newer car, with newer features (which is the best part of a rental car.)
I also knew I would be doing some shopping while I was traveling and the increased storage capacity of my car also worked in its favor.
So for that trip, driving my own car became the best thing.
I will mention, though, that one item I underestimated in my plans was the cost of tolls between here and there. They weren't enough to have made flying the better option, but they did put me closer to maxing out the credit card I was using for trip expenses! (Don't worry, I paid it in full the day of my return!)
Sunday, March 6, 2011
My Potential Budget-Busters
WARNING: If you are currently broke, in debt, or over-spending, please skip to the next post. If you're a Dave Ramsey follower, you should be at least at Baby Step 3 before reading this post.
This is just a short list of the sites I check regularly and potentially spend unbudgeted money on. It's a bit dangerous putting them out there - you have to have some control. I have to have some control when I look at them.
I have to do a quick search most days and check, "Is this really a good price for this item?"
I have to read reviews for the item from other sites and decide if it's really a good deal, or an attempt to unload merchandise that isn't moving.
Recently one of these sites offered heart rate monitors from a manufacturer I had never heard of. A quick search showed me that the deals were pretty good. The full description on the manufacturer's website described exactly what I had been looking for. However, I could find no reviews on the brand online, at any site. I regretted not making the purchase, but convinced myself it was not the day to buy. About a week later, I was at Dick's Sporting Goods and checked out the heart rate monitors. I found that all the ones by the unknown manufacturer were on clearance. What's more, standing there in the store I was unable to successfully get a reading on any of them. Suddenly I felt a bit better about skipping over the online deal.
OK, the sites:
www.woot.com: One Deal, One Day. Mainly electronics, (often refurbished), but I have seen everything from mattresses to compost pails. And the best part? Always $5 shipping, which on large items like mattresses or over-sized televisions is a significant consideration. Items can sell out, though, so I always check on it in the morning.
www.thefoundary.com: Generally high-end items, from home-goods to children's accessories (toys, diaper bags, furniture) to personal care items. There's always something interesting on here, and the deals stay up for a few days (unless they sell out), so you have time to consider the purchase (which, since we're often looking at items like a rug, couch or other significant purchase, is nice)
www.groupon.com: This one is pretty well known. I would mention that you should remember to look at other cities in your area, as well. And, since these are local deals and pretty much always a good deal, don't rush to purchase every one that you think "Oh, I would use that." For example, I always check restaurant.com before I Groupon a restaurant gift certificate.
www.restaurant.com: A double deal here. Restaurants have to choose to sign up for it, and then it is discounted gift certificates to the restaurant (i.e. $10 for a $25 gift certificate).
This is just a short list of the sites I check regularly and potentially spend unbudgeted money on. It's a bit dangerous putting them out there - you have to have some control. I have to have some control when I look at them.
I have to do a quick search most days and check, "Is this really a good price for this item?"
I have to read reviews for the item from other sites and decide if it's really a good deal, or an attempt to unload merchandise that isn't moving.
Recently one of these sites offered heart rate monitors from a manufacturer I had never heard of. A quick search showed me that the deals were pretty good. The full description on the manufacturer's website described exactly what I had been looking for. However, I could find no reviews on the brand online, at any site. I regretted not making the purchase, but convinced myself it was not the day to buy. About a week later, I was at Dick's Sporting Goods and checked out the heart rate monitors. I found that all the ones by the unknown manufacturer were on clearance. What's more, standing there in the store I was unable to successfully get a reading on any of them. Suddenly I felt a bit better about skipping over the online deal.
OK, the sites:
www.woot.com: One Deal, One Day. Mainly electronics, (often refurbished), but I have seen everything from mattresses to compost pails. And the best part? Always $5 shipping, which on large items like mattresses or over-sized televisions is a significant consideration. Items can sell out, though, so I always check on it in the morning.
www.thefoundary.com: Generally high-end items, from home-goods to children's accessories (toys, diaper bags, furniture) to personal care items. There's always something interesting on here, and the deals stay up for a few days (unless they sell out), so you have time to consider the purchase (which, since we're often looking at items like a rug, couch or other significant purchase, is nice)
www.groupon.com: This one is pretty well known. I would mention that you should remember to look at other cities in your area, as well. And, since these are local deals and pretty much always a good deal, don't rush to purchase every one that you think "Oh, I would use that." For example, I always check restaurant.com before I Groupon a restaurant gift certificate.
www.restaurant.com: A double deal here. Restaurants have to choose to sign up for it, and then it is discounted gift certificates to the restaurant (i.e. $10 for a $25 gift certificate).
- Never pay the $10 though - You can get a $10 certificate for $3 if you have a MyPoints account (free), a Borders Rewards card (free), or a multitude of other memberships (or even as a benefit through some employers).
- The downside is that you really have to read the fine print. You can't use a gift certificate with a $25 face value and only purchase $25 worth of food. It is generally $50 total bill required. It may or may not include beverages. Sometimes, this is still a great deal. However, there is a restaurant we love (11Worth) which is very budget friendly - We generally eat there for $10 - $15 total. For $3 we can get a $25 gift certificate, but we would need to spend $50 in one visit. You need at least 6 really hungry people to make that a worthwhile deal. But if you have 6 or 8 people to feed, then it's a great deal. Just read the fine print.
Wednesday, March 2, 2011
Free Money Meltdown
Please tell me I am not the only one.
I participate in MyPoints and I currently have enough points for a $50 gift certificate to...pretty much anywhere.
For several days in a row I have opened up MyPoints and looked at the list of reward sites, frozen in indecision.
Do I want something fully practical, like $50 toward gas? Something sort of practical like a clothing store, or one with many possibilities like Wal-Mart, Target, or even a Visa Cash Card? Perhaps I should get a Home Depot card that I can give him as a gift for his birthday. Should I pamper myself and get a card to a spa or treat us to a nice meal out? It's free money, so maybe I should be completely impractical and get us a free night at an over-priced hotel.
When something comes up to buy, that I need to buy, I say "I have the money for this in my budget, I don't want to "waste" my free money on something I can just pay for, because then I will never treat myself.
When I think of a treat I would like, I talk myself out of it because it's silly and "I wouldn't even think of getting that if I didn't have this free money, so I shouldn't get that. I should save it for something I really want."
A gas card will be gone in one tank of gas, but an iTunes card would last for ages. As I keep working out, new clothes would be handy. He has to deal with the MyPoints Search bar on the computer, so something we could share, like a meal out (oh, but WHERE?) seems fair. But it's MY points.
Eventually I close my browser and put the decision off for another day.
I participate in MyPoints and I currently have enough points for a $50 gift certificate to...pretty much anywhere.
For several days in a row I have opened up MyPoints and looked at the list of reward sites, frozen in indecision.
Do I want something fully practical, like $50 toward gas? Something sort of practical like a clothing store, or one with many possibilities like Wal-Mart, Target, or even a Visa Cash Card? Perhaps I should get a Home Depot card that I can give him as a gift for his birthday. Should I pamper myself and get a card to a spa or treat us to a nice meal out? It's free money, so maybe I should be completely impractical and get us a free night at an over-priced hotel.
When something comes up to buy, that I need to buy, I say "I have the money for this in my budget, I don't want to "waste" my free money on something I can just pay for, because then I will never treat myself.
When I think of a treat I would like, I talk myself out of it because it's silly and "I wouldn't even think of getting that if I didn't have this free money, so I shouldn't get that. I should save it for something I really want."
A gas card will be gone in one tank of gas, but an iTunes card would last for ages. As I keep working out, new clothes would be handy. He has to deal with the MyPoints Search bar on the computer, so something we could share, like a meal out (oh, but WHERE?) seems fair. But it's MY points.
Eventually I close my browser and put the decision off for another day.
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