I have still another TV/cable/internet solution. Basic cable is part of my homeowner's fee. I pay $19 for a land line with no long distance, and I pay 25 cents a minute for my cell phone for anytime anywhere minutes (probably $5 a month or less) . My internet is $29 per month. That's $53 per month and I get digital cable with CNN and Comedy Central. My Palm connects to the internet thru WiFi wherever that is available.
I have been working the last couple days for Alan. In addition to his billing I check his deadlines and my replacement was about to miss some serious ones on discovery. So I whipped up some discovery in one case and am also having to file an Answer by Friday in federal court. This will mean some extra money in January. Also Alan will be grateful for my bailing him out and may give me some more work to do.
I am going to an old peoples NYE party tonight - 4-6 p.m. I think we are ringing in the London New Year.
Wednesday, December 31, 2008
Monday, December 29, 2008
I can't comment
Literally! I have no button for comments. So, here are my comments for the previous posts:
A mud farm is a working farm where the farmer rents ground space for the gas companies to unload all the mud they drill out of the ground for all these gas-wells popping up all over Central Texas. The mud has to go somewhere, so it goes to Itasca. B.C. sometimes works a 24 hour shift where he runs a bulldozer to smooth the mud dumped by trucks hauling it in. Sometimes he fixes equipment. Most of the time, he works after a heavy rain to clear the roads at the farm using a skid loader.
I can't use my cell phone for internet because I get crappy cell service at home. Cable isn't even an option here. I have DirecTV and TiVo which costs me $60 per month. The land line is $22 or so and cell (for 2 phones and unlimited texting) is $100 per month. I pay too much.
A mud farm is a working farm where the farmer rents ground space for the gas companies to unload all the mud they drill out of the ground for all these gas-wells popping up all over Central Texas. The mud has to go somewhere, so it goes to Itasca. B.C. sometimes works a 24 hour shift where he runs a bulldozer to smooth the mud dumped by trucks hauling it in. Sometimes he fixes equipment. Most of the time, he works after a heavy rain to clear the roads at the farm using a skid loader.
I can't use my cell phone for internet because I get crappy cell service at home. Cable isn't even an option here. I have DirecTV and TiVo which costs me $60 per month. The land line is $22 or so and cell (for 2 phones and unlimited texting) is $100 per month. I pay too much.
Saturday, December 27, 2008
Hustle #2 -- Not paying for cable, landline phone, or internet
I really feel like I Beat The Man today. Like you guys (I imagine), I don't subscribe to cable. In Chicago, to get cable would cost over $30 a month, basic. To get cable plus internet would cost close to $100. But unlike Kipsy, I don't suffer with dial-up. As of today, I have 30 crisp channels in my basement apartment, absolutely FREE, and while my internet is not exactly blazing, it's about as fast as DSL.
In February, channels will all be broadcast in digital. No more over-the-air analog. When I heard about this, I also heard that Uncle Sugar will give you a $40 coupon, just for asking, to buy a converter box so that your old television set (that your friends gave you when they decided to be suckers and buy a huge HDTV flatscreen) will still work.
I have never gotten TV reception, in any apartment I have lived in, ever. I am not exaggerating. This means I have not had a TV that worked for anything but renting videotapes/DVDs in about 20 years. I wasn't even going to bother buying a converter box, figuring, what's the point? But I read up on it, and the digital transmissions are supposed to be pretty impressive IF you have a good quality antenna with amplifier. (I am not allowed to put an antenna outside, and inside antennae never used to do the trick.) I received my coupon in the mail, and figured what the hell, I'll buy a box and an antenna, and if it doesn't work, I'll just take it back. Today at Radio Shack I bought a converter box, and an indoor antenna, both very-well-reviewed after doing a little research. After my coupon, and after tax, both of these ended up costing a total of $78. I set them up, and... magic! I almost wish it hadn't worked--the last thing I really need is working TV!
As for a landline, I just use my cell. I bought my current "smart phone" (Treo800w--$400 but it's now down to about $250) from Sprint this summer, which required me to renew my contract with them for 2 years. But by agreeing to stick with them instead of jumping ship to another carrier, they gave me 10% off the plan I had already been using for my last Palm phone. After all taxes and fees, I pay $55 a month, which buys me unlimited nights and weekends, 200 "anytime" minutes, more texts than I ever use (300 a month, maybe?), plus--and this is the biggie--unlimited HIGH SPEED data access. After installing a piece of $30 software, I simply tether my phone to my computer and get unlimited internet access without paying a dime more. I've been doing this for years--it works like a charm. In other words, I get cell phone, "home phone," and internet access everywhere I go (home, airports, coffee shops, you name it) for $55 a month, total.
So if I did what your average consumer does and bought cell, landline, cable, cable internet, and occasional internet access while travelling, I would pay, conservatively, about:
$55 cell phone
$20 landline
$90 cable and cable internet
$5 (average--that is, a $10 fee once every two months)
TOTAL: $170/month.
This way, I'm saving $1380 a year.
True, my hookup isn't quite as fabulous--I don't get Comedy Central and CNN and all that. But it's good enough for me. I wonder how many people really add up what they are paying for these services, and if they did, would they still think it was worth it?
In February, channels will all be broadcast in digital. No more over-the-air analog. When I heard about this, I also heard that Uncle Sugar will give you a $40 coupon, just for asking, to buy a converter box so that your old television set (that your friends gave you when they decided to be suckers and buy a huge HDTV flatscreen) will still work.
I have never gotten TV reception, in any apartment I have lived in, ever. I am not exaggerating. This means I have not had a TV that worked for anything but renting videotapes/DVDs in about 20 years. I wasn't even going to bother buying a converter box, figuring, what's the point? But I read up on it, and the digital transmissions are supposed to be pretty impressive IF you have a good quality antenna with amplifier. (I am not allowed to put an antenna outside, and inside antennae never used to do the trick.) I received my coupon in the mail, and figured what the hell, I'll buy a box and an antenna, and if it doesn't work, I'll just take it back. Today at Radio Shack I bought a converter box, and an indoor antenna, both very-well-reviewed after doing a little research. After my coupon, and after tax, both of these ended up costing a total of $78. I set them up, and... magic! I almost wish it hadn't worked--the last thing I really need is working TV!
As for a landline, I just use my cell. I bought my current "smart phone" (Treo800w--$400 but it's now down to about $250) from Sprint this summer, which required me to renew my contract with them for 2 years. But by agreeing to stick with them instead of jumping ship to another carrier, they gave me 10% off the plan I had already been using for my last Palm phone. After all taxes and fees, I pay $55 a month, which buys me unlimited nights and weekends, 200 "anytime" minutes, more texts than I ever use (300 a month, maybe?), plus--and this is the biggie--unlimited HIGH SPEED data access. After installing a piece of $30 software, I simply tether my phone to my computer and get unlimited internet access without paying a dime more. I've been doing this for years--it works like a charm. In other words, I get cell phone, "home phone," and internet access everywhere I go (home, airports, coffee shops, you name it) for $55 a month, total.
So if I did what your average consumer does and bought cell, landline, cable, cable internet, and occasional internet access while travelling, I would pay, conservatively, about:
$55 cell phone
$20 landline
$90 cable and cable internet
$5 (average--that is, a $10 fee once every two months)
TOTAL: $170/month.
This way, I'm saving $1380 a year.
True, my hookup isn't quite as fabulous--I don't get Comedy Central and CNN and all that. But it's good enough for me. I wonder how many people really add up what they are paying for these services, and if they did, would they still think it was worth it?
I am NOT lame!
I'm just busy and have iffy internet. I still have dial up and our phone goes out when it's windy (like yesterday). I'm still finalizing my rules for the year. I will have a post of that. I couldn't comment on Momcat's post - there was no comment button. It may because I'm on a Mac. Anyway, it's not Wally, it's Woody. And what do we call #3 and spouse? Or do we?
So far, Texas seems to be immune to the rest of the country's woes. There are new gas wells popping up all over the place. B.C. will be working at the mud farm New Year's Eve for a guy who wants the day off. It hasn't rained in ten forevers, so he hasn't worked there in weeks. We were supposed to get these big storms this morning, and it rained for about 30 minutes. Now it's sunny and I'm in shorts again.
I'm going to clean house now.
So far, Texas seems to be immune to the rest of the country's woes. There are new gas wells popping up all over the place. B.C. will be working at the mud farm New Year's Eve for a guy who wants the day off. It hasn't rained in ten forevers, so he hasn't worked there in weeks. We were supposed to get these big storms this morning, and it rained for about 30 minutes. Now it's sunny and I'm in shorts again.
I'm going to clean house now.
Friday, December 26, 2008
Eureka
I found the new post box so I will test it to see if it works. If it does I won't have to be an add-on.
Momcat
Momcat
Thursday, December 25, 2008
Sometimes a bargain is no bargain
Remember a little over a year ago, when I started to look into buying a new condo closer to work? And how I was blown away by how much people were asking for their units relative to what they have paid for them only a year before? I recall showing UncleSam and Kipsy one particular unit, in a building that had just converted from rental to condos, where the owners were asking for $600,000 when one year before, they had bought for $450,000. It's across the street from my work, and I really had my eye on that place. I thought to myself, "Surely they'd accept what they paid for it, just to get out from under it in a housing market that everyone can see is about to go down a little bit."
I called the real estate agent with the listing, told her I'd be willing to pay no more than $450,000, and she basically laughed and told me not to bother. I did go ahead and go take a look during an open house. It was a perfectly nice place, but far from luxury. I ratcheted down my price point, figuring the flippers who bought these conversions were going to lose their shirts, and that I'd pay no more than $400,000 for a 3/2, with parking included.
I've been watching the building. Most of the owners have simply pulled their listings off and are renting the units at a loss, while they slowly bleed equity in an insane hope that the market will turn around. It's impossible for me to feel sorry for them. The units that are still for sale are mostly developer's units, and have just been sitting there for a year. It's bloody. I thank my lucky stars that that agent told me not to bother--what if the seller had accepted an offer? Today, I think it's too expensive even at $400,000. I'm now thinking if it drops closer to $300,000, I might--might!--make a move.
This economy is really scaring me.
I called the real estate agent with the listing, told her I'd be willing to pay no more than $450,000, and she basically laughed and told me not to bother. I did go ahead and go take a look during an open house. It was a perfectly nice place, but far from luxury. I ratcheted down my price point, figuring the flippers who bought these conversions were going to lose their shirts, and that I'd pay no more than $400,000 for a 3/2, with parking included.
I've been watching the building. Most of the owners have simply pulled their listings off and are renting the units at a loss, while they slowly bleed equity in an insane hope that the market will turn around. It's impossible for me to feel sorry for them. The units that are still for sale are mostly developer's units, and have just been sitting there for a year. It's bloody. I thank my lucky stars that that agent told me not to bother--what if the seller had accepted an offer? Today, I think it's too expensive even at $400,000. I'm now thinking if it drops closer to $300,000, I might--might!--make a move.
This economy is really scaring me.
Monday, December 22, 2008
Uncle Sam's Compact Rules
Okay, I finally came up with my rules for next year. (Keep in mind I can change or update them until January 1rst.) I think it would be easier to simply list my exceptions because the basic rule is just buy nothing new except for food and expendables (like trash bags) for a whole year. Because I usually shop at thrift stores anyway I am upping my compact by promising to buy nothing except food and expendables.
My exceptions are:
1. I am going to renew my newspaper subscription in July. I know I can get the news on-line but I like having a newspaper to hold in my hand AND I want to support the printed press as newspapers are dying all over.
2. If anything breaks I'll fix it instead of buying something new but I won't necessarily buy used parts. That just seems like trouble.
3. If (and this is a big IF as I've been planning to do this for years) I finally get around to screening in my front porch I am not going to try to find used screens or lumber.
4. Birthday presents for my niece and nephews.
5. One time only, in July, I get to go to Savers and buy something for a birthday present for me.
My goal is simply to reduce consumption and waste. A few of the ways I've thought of to measure this goal are:
1. Fill up only 1 garbage can a month. (currently I use 2 a month; I pretty much skip every other garbage day.)
2. Donate one grocery sack size bundle a month to Good will. (I will have to give to Chip to take in, otherwise I might be tempted to shop.)
3. I will give myself one month, January, to either use my YMCA membership or drop it.
4. Put an extra $200.00 a month to my house payment using the money I'm not spending on junk.
What do you think Roothy? (and BTW, Nancy is sad that I'm not using her name as my screen name.)
My exceptions are:
1. I am going to renew my newspaper subscription in July. I know I can get the news on-line but I like having a newspaper to hold in my hand AND I want to support the printed press as newspapers are dying all over.
2. If anything breaks I'll fix it instead of buying something new but I won't necessarily buy used parts. That just seems like trouble.
3. If (and this is a big IF as I've been planning to do this for years) I finally get around to screening in my front porch I am not going to try to find used screens or lumber.
4. Birthday presents for my niece and nephews.
5. One time only, in July, I get to go to Savers and buy something for a birthday present for me.
My goal is simply to reduce consumption and waste. A few of the ways I've thought of to measure this goal are:
1. Fill up only 1 garbage can a month. (currently I use 2 a month; I pretty much skip every other garbage day.)
2. Donate one grocery sack size bundle a month to Good will. (I will have to give to Chip to take in, otherwise I might be tempted to shop.)
3. I will give myself one month, January, to either use my YMCA membership or drop it.
4. Put an extra $200.00 a month to my house payment using the money I'm not spending on junk.
What do you think Roothy? (and BTW, Nancy is sad that I'm not using her name as my screen name.)
Sunday, December 21, 2008
Waste Not, Want Not
UncleSam (who seems to be the only sister actually participating on this blog DAMN YOU KIPSY) mentioned her occasional "pantry months," where she doesn't buy new food but just empties out what she's got stashed.
Today, I started to leave the house to do my occasional Costco run for groceries, and got blasted in the face with a -30 degree gust of wind. Her pantry month idea became instantly more appealing.
After feeling to my fingers and nose came back, I searched and found that I do have a ton of crap in my pantry and my freezer that have been there for well over a year. Among the crap: bottle after bottle of half-empty (half-full?!) hard liquor that my last roommate left behind about five years ago. She was a drinker, so I doubt it's much older than five years, but still--would drinking this antique stuff make me go blind? A quick google-search suggested not--it all apparently lasts forever. And so I am typing this while drinking a "finger" of Ballantine's blended scotch whiskey (with yellowed-with-age pricetag of $14.99 still on the bottle.)
It's not nearly as nasty as I thought it would be. Given how little I drink, and how much of this kind of stuff is cluttering my pantry, I've decided that for the next year, I'm going to make my way through it once and for all, by god! This will save on my beer expenses, which had been running a good $15 a month.
Today, I started to leave the house to do my occasional Costco run for groceries, and got blasted in the face with a -30 degree gust of wind. Her pantry month idea became instantly more appealing.
After feeling to my fingers and nose came back, I searched and found that I do have a ton of crap in my pantry and my freezer that have been there for well over a year. Among the crap: bottle after bottle of half-empty (half-full?!) hard liquor that my last roommate left behind about five years ago. She was a drinker, so I doubt it's much older than five years, but still--would drinking this antique stuff make me go blind? A quick google-search suggested not--it all apparently lasts forever. And so I am typing this while drinking a "finger" of Ballantine's blended scotch whiskey (with yellowed-with-age pricetag of $14.99 still on the bottle.)
It's not nearly as nasty as I thought it would be. Given how little I drink, and how much of this kind of stuff is cluttering my pantry, I've decided that for the next year, I'm going to make my way through it once and for all, by god! This will save on my beer expenses, which had been running a good $15 a month.
We Are Suckers
The massive bailout of the banks was necessary--I still truly believe that. But give it to the Bush Administration to allow oversight in the bill, yet not actually require it when doling out the dollars. I'm predicting global depression in the first quarter of 2009. The only thing that could stop it is the complete nationalization of the banks.
P.S. It is negative-2 degrees Fahrenheit right now, negative-30 degrees windchill! This might be as cold as I've ever experienced... Glad I don't have to leave the house today. But tempted to do so just because. :)
P.S. It is negative-2 degrees Fahrenheit right now, negative-30 degrees windchill! This might be as cold as I've ever experienced... Glad I don't have to leave the house today. But tempted to do so just because. :)
Friday, December 19, 2008
Why I love my spider-infested basement
UncleSam got me thinking about my apartment. I'm sitting at my table, which is in the living room, coffee in hand. Cat in her bed next to me. My bay windows reveal trees and beautiful snow coming down thickly and quietly.
My friends have been hassling me for years for living in this neighborhood. They live in spectacular, glassy, new-construction 3BR/2BA high rises downtown, that they paid 3/4 of a million dollars for. I live in a "garden unit" (meaning the floor is three feet lower than the sidewalk--oh, and as you know, my unit abuts that sidewalk), built in 1924. One reasonably sized bedroom, a second tiny bedroom that hardly earns the name, kinda noisy esp. with clanking radiators. Tiny, outdated bathroom. Kitchen--well, I've already mentioned the kitchen in another post, and I'm sure you'll hear more about it as the year goes on. In total, the unit is probably 900 sq. ft. I remember it felt like a palace when I moved in from a studio I had been renting a few blocks away.
And you know what? IT STILL DOES! Hardwood floors, fireplace with gorgeous mantle, vintage details... Why do I need more than what I have? Besides, I pay almost nothing to live here--and a home is NOT an investment, as hopefully the rest of the nation has just learned. It's a depreciating asset; something you consume, like a car. (At best--very best--housing over the long term keeps up with inflation.) I pay, literally, about 1/20th, or even less, of what I would pay for a 1BR/1BA in one of those skyscrapers downtown. I finally broke down and got an alarm system put in (it went in two days ago--will have to add the monthly fee to my budget below!), including a "panic button" that will call the police if I press it while walking from my car to my unit. My only real reason for wanting to move was safety. Now that I'm safe, will I ever leave? Should I?
My friends have been hassling me for years for living in this neighborhood. They live in spectacular, glassy, new-construction 3BR/2BA high rises downtown, that they paid 3/4 of a million dollars for. I live in a "garden unit" (meaning the floor is three feet lower than the sidewalk--oh, and as you know, my unit abuts that sidewalk), built in 1924. One reasonably sized bedroom, a second tiny bedroom that hardly earns the name, kinda noisy esp. with clanking radiators. Tiny, outdated bathroom. Kitchen--well, I've already mentioned the kitchen in another post, and I'm sure you'll hear more about it as the year goes on. In total, the unit is probably 900 sq. ft. I remember it felt like a palace when I moved in from a studio I had been renting a few blocks away.
And you know what? IT STILL DOES! Hardwood floors, fireplace with gorgeous mantle, vintage details... Why do I need more than what I have? Besides, I pay almost nothing to live here--and a home is NOT an investment, as hopefully the rest of the nation has just learned. It's a depreciating asset; something you consume, like a car. (At best--very best--housing over the long term keeps up with inflation.) I pay, literally, about 1/20th, or even less, of what I would pay for a 1BR/1BA in one of those skyscrapers downtown. I finally broke down and got an alarm system put in (it went in two days ago--will have to add the monthly fee to my budget below!), including a "panic button" that will call the police if I press it while walking from my car to my unit. My only real reason for wanting to move was safety. Now that I'm safe, will I ever leave? Should I?
Thursday, December 18, 2008
Part of the Problem?
Some d-bag from the Cato Institute was on NPR the other day telling us not to indulge "frugality chic": "[I]f you're blessed with good fortune in these hard times, you're not helping anyone if you let frugality chic stop you and yours from having a very Merry Christmas indeed."
It pissed me off, given that conservatives are always the ones complaining about how we're all spending too much. I mean, I've always given them credit for that. And now this? It's like how "Mr. Fiscal Conservative" George W. doubled our debt in his eight years, from 5 trillion to 10 trillion. Which is it, spend or save? Make up your damn minds. Or at least practice what you preach (and settle on what you're going to preach.)
I do know that it hurts the economy when consumers pull back in times of recession. But it also hurts the economy when consumers use credit to spend on granite counters and FUVs when times are good. Myself, I just can't switch gears that way, between frugality and profligacy depending on the economy, nor would I want to.
There's no real point to this post. I'm just beginning to doubt economic principles (like Keynesianism) that I used to accept as raw truth.
It pissed me off, given that conservatives are always the ones complaining about how we're all spending too much. I mean, I've always given them credit for that. And now this? It's like how "Mr. Fiscal Conservative" George W. doubled our debt in his eight years, from 5 trillion to 10 trillion. Which is it, spend or save? Make up your damn minds. Or at least practice what you preach (and settle on what you're going to preach.)
I do know that it hurts the economy when consumers pull back in times of recession. But it also hurts the economy when consumers use credit to spend on granite counters and FUVs when times are good. Myself, I just can't switch gears that way, between frugality and profligacy depending on the economy, nor would I want to.
There's no real point to this post. I'm just beginning to doubt economic principles (like Keynesianism) that I used to accept as raw truth.
Wednesday, December 17, 2008
BTW,both of you guys, if you are looking for year end tax deductable donations you can donate to the San Mateo County Community Van or the EPA Library Saturday Story Time (both our sister and myself do weekly story times followed by a craft.) For both programs I'd love to increase our library of story shelf books and manipulatives (meaning puppets, props, etc). Also, with the state library cut-backs we will be receiving about $3,000 less this year than last for give away books for my Reach Out and Read program.
Figured it out...
Okay, so now I know how to look at other posts but I see that [Roothy] is much more detail and rules oriented than I am. (I guess that's why she's a lawyer). I am a little more loosey goosey about the rules of my compact. I just don't go shopping at all at any store other than a thrift store or grocery store. If I do go to a thrift store, I can only buy things I absolutely need like all my wooden spoons rotted away and I need a new one. For grocery shopping I try to eat from the pantry (and freezer) first before I go shopping. On non-compact years I tend to fill up my cupboards with such necessities as 40 boxes of Rice-a- Roni because it was on sale at Grocery Store Outlet for .50 a box and I don't even know what all is in my freezer. I can't see through the freezer burn.
It might be interesting for me to look at my spending on a month by month basis to see what all I actually waste money on. I usually don't even balance my check book, I always naturally spend less than I make.
It might be interesting for me to look at my spending on a month by month basis to see what all I actually waste money on. I usually don't even balance my check book, I always naturally spend less than I make.
Tuesday, December 16, 2008
Steal This Recipe #1: Mashed turnips and potatoes
I recently read a blog of a couple who were striving to eat on a dollar each per day. Their project is sobering.
I'm not going to try to eat for a dollar a day. On the other hand, the fact that I spend about $300 a month on food, as a single vegan woman, is fairly absurd. It didn't used to be this way. I used to be poor. I remember a time when I knew before I got to the cash register exactly how much each item cost, and what my total bill would be, and I watched the cashier like a hawk. (Amazing how many errors I caught.) Now, I can't tell you how many times I literally don't even see/hear the total.
So I think there's room for more prudence than I have exercised. Don't get me wrong, I still buy generic and compare prices and buy what's on sale. But, I could definitely ratchet back the amount of convenience and exotic food I buy.
So, this, too, is going to be a regular feature: Steal this Recipe will be recipes that cost, literally, pennies a serving.
Turnips and mashed potatoes
1/2 of a 2 lb turnip (also known as a rutabaga when they get this big): .75
about 1.5 pounds of russet potatoes: .50
a couple of tablespoons margarine: a few pennies (say .10?)
maybe a half a cup of unsweetened soy milk: .25
salt and pepper: essentially free
TOTAL: $1.60
Boil 'em up, and mash 'em with the soymilk, margarine and salt 'n' peppa. This makes a heaping load of starchy goodness. I ate it for dinner last night, and lunch today. Nothing else. Yes, it's an acceptable meal. Don't forget that whole generations of Irish lived, literally, on nothing but potatoes. And this is potatoes PLUS turnips PLUS soymilk. Mmmm mmmm!
So today, I ate:
morning coffee (costs maybe .30?)
potato/turnip mash (.80)
some pretzels (maybe .50?)
huge Ethiopian meal (homemade, approx. 2.00)
two beers (2.50)
TOTAL: $6.10
And it would have been under $5 if I had only one beer. And under $4 with no beers. (Not to mention saving about 400 calories.)
I'm not going to try to eat for a dollar a day. On the other hand, the fact that I spend about $300 a month on food, as a single vegan woman, is fairly absurd. It didn't used to be this way. I used to be poor. I remember a time when I knew before I got to the cash register exactly how much each item cost, and what my total bill would be, and I watched the cashier like a hawk. (Amazing how many errors I caught.) Now, I can't tell you how many times I literally don't even see/hear the total.
So I think there's room for more prudence than I have exercised. Don't get me wrong, I still buy generic and compare prices and buy what's on sale. But, I could definitely ratchet back the amount of convenience and exotic food I buy.
So, this, too, is going to be a regular feature: Steal this Recipe will be recipes that cost, literally, pennies a serving.
Turnips and mashed potatoes
1/2 of a 2 lb turnip (also known as a rutabaga when they get this big): .75
about 1.5 pounds of russet potatoes: .50
a couple of tablespoons margarine: a few pennies (say .10?)
maybe a half a cup of unsweetened soy milk: .25
salt and pepper: essentially free
TOTAL: $1.60
Boil 'em up, and mash 'em with the soymilk, margarine and salt 'n' peppa. This makes a heaping load of starchy goodness. I ate it for dinner last night, and lunch today. Nothing else. Yes, it's an acceptable meal. Don't forget that whole generations of Irish lived, literally, on nothing but potatoes. And this is potatoes PLUS turnips PLUS soymilk. Mmmm mmmm!
So today, I ate:
morning coffee (costs maybe .30?)
potato/turnip mash (.80)
some pretzels (maybe .50?)
huge Ethiopian meal (homemade, approx. 2.00)
two beers (2.50)
TOTAL: $6.10
And it would have been under $5 if I had only one beer. And under $4 with no beers. (Not to mention saving about 400 calories.)
ZIRP! (or: "A refinance is in your future")
The Fed dropped its target lending rate for banks to "zero to .025". That's a quarter of a percent. Moreover, the ten year treasury bills are selling for under--well under--3%. What do these things mean?
Probably, that mortgage interest rates, already historically low, are about to plunge further. Also, that the world is ending--but don't worry about that right now.
"They" (you know, "they") say that it usually makes economic sense to refinance when rates drop 1% below what you currently pay. I would not be surprised to see 30-year-fixed rates drop below 4%. UncleSam? You should refi. Seriously.
Probably, that mortgage interest rates, already historically low, are about to plunge further. Also, that the world is ending--but don't worry about that right now.
"They" (you know, "they") say that it usually makes economic sense to refinance when rates drop 1% below what you currently pay. I would not be surprised to see 30-year-fixed rates drop below 4%. UncleSam? You should refi. Seriously.
Sunday, December 14, 2008
Roothy's Bare Bones Budge for the Year
So each one of us is doing this for her own reasons. (Roothy wants to save money and increase the proportion of her charity giving; UncleSam wants to reduce the amount she puts into landfills, and Kipsy is doing it because she tolerates the hare-brained schemes of her sisters and wants to be in on the fun.)
Each of us has her own rules, as well, which we'll spell out in turn. But what unites us is that we all vow to make major changes to our habits over the next year (2009). Tips, successes and misadventures will be blogged along the way.
As for me, Roothy, my goal is to increase my charitable giving until it is 10% of my total post-tax expenses, but to keep my overall expenses the same. For the last few years, I've spent about $2000/mo., or $24,000/year. My goal, then, is to spend $2400 on charity, and $21,600 on everything else. I just back-of-the-enveloped my "core" expenses, and they total $18,456. I therefore have wiggle room of 21,600 - 17,916 or $3144 per year to cover unexpected expenses and indulgences (like travel), in order to make my goal. That's an average of $262 a month.
I'm going to list my estimates of my core expenses. And by "core" I don't mean "essential." I could *easily* cut out many of the unambiguous luxuries (French sunscreen? Twice-monthly house cleaning?) . But here's the thing--I live in a spider-ridden basement, and drive an eight-year-old car. Because I sharply cut some expenses that I don't really value, I *get* to indulge myself on other stupid shit that I do. It's like this 75 year old friend of mine, who has never driven a car in his life. He uses paper towels for EVERYTHING: to dry his hands, as napkins, to wipe the counter, double-thick as placemats, you name it. His argument is, look, I have done my part for the environment ten times over by not driving; I get to use as many damn paper towels as I want. And hey, I have to say I agree.
So here goes, my total annual expenses:
Car: $3426
Repairs and maintenance: $300
Insurance: $904
Gas: $528
Registration and License: $130
Parking tickets and event parking: $100
Parking at work: $1464 (ugh...)
Housing: $5328
Assessments (covers tax, gas, heat & HOA): $1331
Electricity: $360
Insurance: $514
General maintenance (like cleaning supplies): $500
Housecleaning: $1440
Phone (includes cell service plus internet): $643
Home security monitoring: $540
Food: $4260
Groceries: $3000
Dining out: $1200
Paper supplies, etc.: $60
Beauty: $1680
Salon services: $1000 (shut up)
Fancy sunscreen: $200 (SHUT UP)
Beauty products: $60
Gym membership: $420
Health: $1292
Vitamins, OTC meds, sundries: $240
Medical insurance: $852
Dentist, eye dr, whatever: $200
Entertainment: $1420
Movies and rentals: $120
Other: $1200
Clothing: $300
Purchasing: $250
Laundry: $50
The cat: $750
Food and litter: $150
Vet: $600
GRAND TOTAL: $18,456 or $1538/mo.
I am in the process of fashioning my rules, but here are some:
1. If I buy an item that is tax-deductible (like out of my HSA), then I only "charge" against my expenses the actual cost to me (so, the price minus my marginal tax bracket, which is 31%). Similarly, if I get "cash back" on, say, my credit card or my Costco membership, I get to credit that amount against my expenses. Rebates/coupons will also get deducted. For instance, I negotiated with the ADT dealer to give me a $300 cash rebate on my monitoring, plus a $100 gas card, before I signed up with them. So those amounts, when I receive them, will we credited against my expenses.
2. If I "earn" money by, or even while, spending other money, I get to "credit" that amount. So, for instance, if I rent out my apartment while visiting Alaska--a goal for next summer if I can swing the trip--then I get to credit that rent against the cost of Alaska. Similarly, if I sell something I already own, like on ebay or at a garage sale, then I get to credit that amount against my expenses. (If I just earn random income, though--like by house sitting or getting an honorarium for attending a conference--then I don't get to credit it. That's just income, which I invest like everything else I earn above the $24,000.)
3. One solace for remaining in my spider-ridden basement is that I have decided to renovate my kitchen, and do a few other minor repairs to make my home livable now, and sellable later. On the excuse that this is a capital expense anyway, I'm not going to count those expenses against my general budget. I will, however, keep track of them, and I'm going to try to keep them below $10,000--but I will only try. It's not part of the game for me.
Each of us has her own rules, as well, which we'll spell out in turn. But what unites us is that we all vow to make major changes to our habits over the next year (2009). Tips, successes and misadventures will be blogged along the way.
As for me, Roothy, my goal is to increase my charitable giving until it is 10% of my total post-tax expenses, but to keep my overall expenses the same. For the last few years, I've spent about $2000/mo., or $24,000/year. My goal, then, is to spend $2400 on charity, and $21,600 on everything else. I just back-of-the-enveloped my "core" expenses, and they total $18,456. I therefore have wiggle room of 21,600 - 17,916 or $3144 per year to cover unexpected expenses and indulgences (like travel), in order to make my goal. That's an average of $262 a month.
I'm going to list my estimates of my core expenses. And by "core" I don't mean "essential." I could *easily* cut out many of the unambiguous luxuries (French sunscreen? Twice-monthly house cleaning?) . But here's the thing--I live in a spider-ridden basement, and drive an eight-year-old car. Because I sharply cut some expenses that I don't really value, I *get* to indulge myself on other stupid shit that I do. It's like this 75 year old friend of mine, who has never driven a car in his life. He uses paper towels for EVERYTHING: to dry his hands, as napkins, to wipe the counter, double-thick as placemats, you name it. His argument is, look, I have done my part for the environment ten times over by not driving; I get to use as many damn paper towels as I want. And hey, I have to say I agree.
So here goes, my total annual expenses:
Car: $3426
Repairs and maintenance: $300
Insurance: $904
Gas: $528
Registration and License: $130
Parking tickets and event parking: $100
Parking at work: $1464 (ugh...)
Housing: $5328
Assessments (covers tax, gas, heat & HOA): $1331
Electricity: $360
Insurance: $514
General maintenance (like cleaning supplies): $500
Housecleaning: $1440
Phone (includes cell service plus internet): $643
Home security monitoring: $540
Food: $4260
Groceries: $3000
Dining out: $1200
Paper supplies, etc.: $60
Beauty: $1680
Salon services: $1000 (shut up)
Fancy sunscreen: $200 (SHUT UP)
Beauty products: $60
Gym membership: $420
Health: $1292
Vitamins, OTC meds, sundries: $240
Medical insurance: $852
Dentist, eye dr, whatever: $200
Entertainment: $1420
Movies and rentals: $120
Other: $1200
Clothing: $300
Purchasing: $250
Laundry: $50
The cat: $750
Food and litter: $150
Vet: $600
GRAND TOTAL: $18,456 or $1538/mo.
I am in the process of fashioning my rules, but here are some:
1. If I buy an item that is tax-deductible (like out of my HSA), then I only "charge" against my expenses the actual cost to me (so, the price minus my marginal tax bracket, which is 31%). Similarly, if I get "cash back" on, say, my credit card or my Costco membership, I get to credit that amount against my expenses. Rebates/coupons will also get deducted. For instance, I negotiated with the ADT dealer to give me a $300 cash rebate on my monitoring, plus a $100 gas card, before I signed up with them. So those amounts, when I receive them, will we credited against my expenses.
2. If I "earn" money by, or even while, spending other money, I get to "credit" that amount. So, for instance, if I rent out my apartment while visiting Alaska--a goal for next summer if I can swing the trip--then I get to credit that rent against the cost of Alaska. Similarly, if I sell something I already own, like on ebay or at a garage sale, then I get to credit that amount against my expenses. (If I just earn random income, though--like by house sitting or getting an honorarium for attending a conference--then I don't get to credit it. That's just income, which I invest like everything else I earn above the $24,000.)
3. One solace for remaining in my spider-ridden basement is that I have decided to renovate my kitchen, and do a few other minor repairs to make my home livable now, and sellable later. On the excuse that this is a capital expense anyway, I'm not going to count those expenses against my general budget. I will, however, keep track of them, and I'm going to try to keep them below $10,000--but I will only try. It's not part of the game for me.
Hustle #1 -- Health Savings Accounts
AR and I were at an Atlantic City card room some years back, where we befriended a shark. He was very eager to teach AR and me his "card hustles." After seeing we were suitably impressed, he proceeded to show us a million more "hustles." To him, basically anything he did to try (successfully or not) to make money was a hustle. It was very pathetic by the time he got to showing us his "slots hustle," during which, unsurprisingly, he lost about $100 he clearly couldn't afford, all within about 15 minutes. By then, we were far past being impressed.
I'm going to offer my own money-making hustles in this blog. Hopefully, they'll prove more successful than that guy's--though as with the "slots hustle," your mileage may vary.
The first is to get a Health Savings Account. The two of you might not be able to do so; your workplace has to offer it. But if they do, to qualify, you have to sign up for a "high deductible" (min. $1100/year) health insurance plan. Mine has a $1400 a year deductible, with no co-pays (though I get one free "well-woman" visit, plus labs and a flu shot, per year at zero cost to me). That means I pay every cent of my insured health expenses until I hit $1400. After that, I pay 20% of all expenses, up to a total maximum out-of-pocket of $5000.
The real benefit is the HSA. I can put up to $2900 a year into special account, using pretax dollars--meaning to get $2900 in the account, the real cost to me (since I don't pay tax on it) is $2900 - ($2900 * .31), or only $2000. Nice profit--I dare you to find any other investment vehicle with that kind of guaranteed return! I then get to use the HSA account dollars to pay for *all* medical and dental expenses, including things like contact lenses and solutions, OTC medicines, you name it. And unlike a traditional "flexible spending account" (FSA), I don't have to spend it before the year is up.
This health care plan costs me $71 a month, compared to the lower-deductible/no-HSA/no-free-wellness-and-shot plan of $105 a month (which has a $500 deductible, 20% after that up to a yearly out of pocket of $4000/yr). In addition to saving $34/mo straight up, I also "earn" that $900/12 per month (or $75/mo.) from the HSA. On top of that, I get the free visit plus labs ($250) and shot ($30), which averages to (250 + 30)/12 or $23/mo. Total I save per month over the lower deductible plan? $132/mo, or a whopping $1584 for the year.
But what if I get catastrophically ill (costs that exceed my max for the HSA plan--or anything over $5000 for the year)? In this case, the non-HSA plan is in fact better measured over the year--but barely. My HSA coverage costs me, for a year with catastrophic illness, $71X12 for the premium, or $852. But I also must pay the max of $5000/year--everything after that is paid 100%. So, I pay $5852 for the year for the HSA plan. Compare the other plan: $105 X 12 is $1260, plus another $4000 max, or $5260 for the year. But wait--don't forget the well-woman visit and flu shot! I get that with the HSA, but not with the non-HSA plan. Add $280 to the $5260, for $5540. So, all told for a catastrophic illness year, the non-HSA plan would save me 5852-5540 or $312.
But here's the thing: I won't usually get catastrophically ill. And any year I don't--in fact, any year where my medical expenses are less than about $3500 a year, I will save money with the HSA plan. In fact, most years I don't get sick at all; and each one of those years, I have made almost $700 over the non-HSA plan--which isn't even including the $900 HSA tax "bonus". Even if I got catastrophically ill two years out of three, I'd *still* be better off with the HSA plan because it saves me so much money in that one healthy year.
One final thing: I didn't account, in my "costs" of the plan analysis, the $900 I don't get withe non-HSA plan. This is because I could, if I planned it very carefully, get that same benefit by using a traditional FSA. Still, I think the HSA is a better account, even with identical tax deductibility, because with the FSAs, if you don't use it, you lose it. This makes them riskier, and they tempt you into purchases you wouldn't otherwise make, in order to not lose the money you've put in. (I've known of more than one Lasik eye surgery bought for just this reason.) Finally, you get no interest on an FSA--though admittedly the interest on a typical HSA is miniscule (around 1%). Though I have been FSA eligible for as long as I can remember, I haven't taken advantage of it for just these reasons.
So if you have access to an HSA, do the math for your own plans, but odds are good it is worth it.
Cha-ching! :)
I'm going to offer my own money-making hustles in this blog. Hopefully, they'll prove more successful than that guy's--though as with the "slots hustle," your mileage may vary.
The first is to get a Health Savings Account. The two of you might not be able to do so; your workplace has to offer it. But if they do, to qualify, you have to sign up for a "high deductible" (min. $1100/year) health insurance plan. Mine has a $1400 a year deductible, with no co-pays (though I get one free "well-woman" visit, plus labs and a flu shot, per year at zero cost to me). That means I pay every cent of my insured health expenses until I hit $1400. After that, I pay 20% of all expenses, up to a total maximum out-of-pocket of $5000.
The real benefit is the HSA. I can put up to $2900 a year into special account, using pretax dollars--meaning to get $2900 in the account, the real cost to me (since I don't pay tax on it) is $2900 - ($2900 * .31), or only $2000. Nice profit--I dare you to find any other investment vehicle with that kind of guaranteed return! I then get to use the HSA account dollars to pay for *all* medical and dental expenses, including things like contact lenses and solutions, OTC medicines, you name it. And unlike a traditional "flexible spending account" (FSA), I don't have to spend it before the year is up.
This health care plan costs me $71 a month, compared to the lower-deductible/no-HSA/no-free-wellness-and-shot plan of $105 a month (which has a $500 deductible, 20% after that up to a yearly out of pocket of $4000/yr). In addition to saving $34/mo straight up, I also "earn" that $900/12 per month (or $75/mo.) from the HSA. On top of that, I get the free visit plus labs ($250) and shot ($30), which averages to (250 + 30)/12 or $23/mo. Total I save per month over the lower deductible plan? $132/mo, or a whopping $1584 for the year.
But what if I get catastrophically ill (costs that exceed my max for the HSA plan--or anything over $5000 for the year)? In this case, the non-HSA plan is in fact better measured over the year--but barely. My HSA coverage costs me, for a year with catastrophic illness, $71X12 for the premium, or $852. But I also must pay the max of $5000/year--everything after that is paid 100%. So, I pay $5852 for the year for the HSA plan. Compare the other plan: $105 X 12 is $1260, plus another $4000 max, or $5260 for the year. But wait--don't forget the well-woman visit and flu shot! I get that with the HSA, but not with the non-HSA plan. Add $280 to the $5260, for $5540. So, all told for a catastrophic illness year, the non-HSA plan would save me 5852-5540 or $312.
But here's the thing: I won't usually get catastrophically ill. And any year I don't--in fact, any year where my medical expenses are less than about $3500 a year, I will save money with the HSA plan. In fact, most years I don't get sick at all; and each one of those years, I have made almost $700 over the non-HSA plan--which isn't even including the $900 HSA tax "bonus". Even if I got catastrophically ill two years out of three, I'd *still* be better off with the HSA plan because it saves me so much money in that one healthy year.
One final thing: I didn't account, in my "costs" of the plan analysis, the $900 I don't get withe non-HSA plan. This is because I could, if I planned it very carefully, get that same benefit by using a traditional FSA. Still, I think the HSA is a better account, even with identical tax deductibility, because with the FSAs, if you don't use it, you lose it. This makes them riskier, and they tempt you into purchases you wouldn't otherwise make, in order to not lose the money you've put in. (I've known of more than one Lasik eye surgery bought for just this reason.) Finally, you get no interest on an FSA--though admittedly the interest on a typical HSA is miniscule (around 1%). Though I have been FSA eligible for as long as I can remember, I haven't taken advantage of it for just these reasons.
So if you have access to an HSA, do the math for your own plans, but odds are good it is worth it.
Cha-ching! :)
Subscribe to:
Posts (Atom)