To confirm your savings goals in the new year, begin now with a year-end balance sheet. It is like a baseline.
Begin with all those statements that will arrive in January or check for some numbers on line. List your financial assets like savings accounts, savings bonds, mutual funds, and stock values.
In that same column but separate, list real assets like house value, car values, and other things with some resale value. I do not list furniture, clothing, jewelry (I have a few nice pieces but I don't count on reselling them), or collections like coins and stamps as they are too difficult to value.
After assets, list liabilities. Here's the place for your credit card balances, mortgage balances, any family loans, bookie debts, etc.
When you subtotal both sections and subtract liabilities from assets, you discover your net worth.
I maintain my balance sheet quarterly on Excel and add each quarter in the next column. Side-by-side changes are easy to see. Some prefer to let financial software like Quicken track these things and produce nice asset reports and colorful charts.
I will begin gathering 12/31 balances on line over the next 2 days, before the new year activities effect what I will find posted on my bank, Vanguard, HSA, and 401(k) sites.
Start gathering your net worth pieces to establish your starting point.
'til later
Monday, December 31, 2007
Sunday, December 30, 2007
Resolutions
It's time for new year resolutions. Traditionally I do not make annual resolutions. My list would contain one that I feel already defeated by.
However, I am encouraged to break this overwhelming goal down into small attainable pieces. And, I will adjust my attitude.
I am going to create a positive statement. I will post it along with the attainable step (my smaller goal) on my bathroom mirror. That way I will see them regularly.
How about you? Do your resolutions pertain to financial matters? Reduce debt? Increase savings? Make more informed $ choices?
We'll take our 2008 journey together.
'til later
However, I am encouraged to break this overwhelming goal down into small attainable pieces. And, I will adjust my attitude.
I am going to create a positive statement. I will post it along with the attainable step (my smaller goal) on my bathroom mirror. That way I will see them regularly.
How about you? Do your resolutions pertain to financial matters? Reduce debt? Increase savings? Make more informed $ choices?
We'll take our 2008 journey together.
'til later
Saturday, December 29, 2007
Gobbling Up Banks
Our local bank has been bought by National City. The conversion will be complete in early February. We received a packet of information this week.
The local bank personnel have assured us our accounts will be grandfathered. Our personal checking account has no minimum balance, no monthly charges, no maximum number of checks or withdrawals, and earns a wee bit of interest which is posted monthly.
It appears to me that banking acquisitions will one day lead to 6 banks. Competition is a good thing for the consumer.
National City once charged a friend for depositing into her away-at-college daughter's account. To avoid the fee, she was told she could drop it in the drop box outside, it would be posted the next day and there would be no receipt.
'til later
The local bank personnel have assured us our accounts will be grandfathered. Our personal checking account has no minimum balance, no monthly charges, no maximum number of checks or withdrawals, and earns a wee bit of interest which is posted monthly.
It appears to me that banking acquisitions will one day lead to 6 banks. Competition is a good thing for the consumer.
National City once charged a friend for depositing into her away-at-college daughter's account. To avoid the fee, she was told she could drop it in the drop box outside, it would be posted the next day and there would be no receipt.
'til later
Friday, December 28, 2007
More Taxes
Chicago has a new tax going into effect. Tax on bottled water. They are taxing the bottle.
As we travel to Michigan and New York, we have to pay a deposit on aluminum cans. The deposit is returned if we return the cans.
I think this deposit was an effort years and years ago to encourage recycling. Government decided this system was better than waiting for consumers to learn to recycle.
Our family in New York deals with the deposit on cans and glass bottles but they do not recycle plastic or paper. Their energies and space are spent on the state deposits.
We do not have to deal with the deposit and returning empties with every trip to the store but we recycle glass, cans, plastics, and paper weekly at the end of our curb.
Just an example of the government forcing a system that has no end and not encouraging a change in our lifestyles.
'til later
As we travel to Michigan and New York, we have to pay a deposit on aluminum cans. The deposit is returned if we return the cans.
I think this deposit was an effort years and years ago to encourage recycling. Government decided this system was better than waiting for consumers to learn to recycle.
Our family in New York deals with the deposit on cans and glass bottles but they do not recycle plastic or paper. Their energies and space are spent on the state deposits.
We do not have to deal with the deposit and returning empties with every trip to the store but we recycle glass, cans, plastics, and paper weekly at the end of our curb.
Just an example of the government forcing a system that has no end and not encouraging a change in our lifestyles.
'til later
Thursday, December 27, 2007
Year Ending
We are on count down to 2008. Bob and I did a quick review of our 2007 income looking for ways to reduce the taxable amount.
We decided to fully fund our Roth IRAs to the maximum. (Note: Roth IRA contributions are not tax deductible but a wise decision) We reviewed our HSA account and have already funded it completely for 2007. We will fund the maximum for 2008 in the first quarter of '08.
Our business is a Chapter Sub S Corporation (an S-Corp) where the income flows through to our personal return. We made decisions to pay the American Express statement on line so as to get those expenses into this year. Note: cash basis.
Today we will review our charitable giving for the year and decide which we will support now in order to have that count on our Schedule A. Note: we itemize.
These are the kinds of thing we can do now with our $ in an effort to affect our taxes for 2007. Time is running out.
'til later
We decided to fully fund our Roth IRAs to the maximum. (Note: Roth IRA contributions are not tax deductible but a wise decision) We reviewed our HSA account and have already funded it completely for 2007. We will fund the maximum for 2008 in the first quarter of '08.
Our business is a Chapter Sub S Corporation (an S-Corp) where the income flows through to our personal return. We made decisions to pay the American Express statement on line so as to get those expenses into this year. Note: cash basis.
Today we will review our charitable giving for the year and decide which we will support now in order to have that count on our Schedule A. Note: we itemize.
These are the kinds of thing we can do now with our $ in an effort to affect our taxes for 2007. Time is running out.
'til later
Wednesday, December 26, 2007
Day After Deals
When Bob bought my Christmas present he received a coupon good for $20 toward any purchase post Christmas at Kohl's.
Today we used that coupon and got a nice queen size blanket. The blankets were reduced by 60% along with many things in the store during the early bird specials.
So, we can count the blanket a free bonus. That is a great bargain.
They say there are many to be had out there today. Good luck if you are venturing forth.
'til later
Today we used that coupon and got a nice queen size blanket. The blankets were reduced by 60% along with many things in the store during the early bird specials.
So, we can count the blanket a free bonus. That is a great bargain.
They say there are many to be had out there today. Good luck if you are venturing forth.
'til later
Tuesday, December 25, 2007
Merry Christmas
This is the day set aside to commemorate the arrival of the newborn king. Let us remember Him today as we gather with family and friends.
May it be a great celebration. God bless.
'til later
May it be a great celebration. God bless.
'til later
Monday, December 24, 2007
Take Time
Yesterday there was a nearly full house for the early service at church. Tonight there will be Christmas Eve services in most churches. Some are early with emphasis on the simplicity of the story geared for children.
Many houses of worship will have later candle light services. Usually all seats are full for these events. They are in the middle of the night to represent the arrival during the night of the new born king.
The angels found the shepherds watching over their sheep in the middle of the night. That's what they did. They guarded over their wards 24-7. They were the first to receive the birth announcement.
Take time today. Let us remember together that a baby was born and His life changed the world. Let Him change our world today.
'til later
Many houses of worship will have later candle light services. Usually all seats are full for these events. They are in the middle of the night to represent the arrival during the night of the new born king.
The angels found the shepherds watching over their sheep in the middle of the night. That's what they did. They guarded over their wards 24-7. They were the first to receive the birth announcement.
Take time today. Let us remember together that a baby was born and His life changed the world. Let Him change our world today.
'til later
Sunday, December 23, 2007
Bank Rates
We have dealt with the same local bank for over 20 years. We have both a checking account and a passbook account with them. We actually have a little passbook that we present when we make a transaction.
We are careful to keep the checking account low as it pays less interest. We just transfer funds out of the savings account as needed. I used to do this over the phone but now it's so easy on line.
I am embarrassed to tell you I discovered the other day that the passbook account makes all of 0.4% and the checking is always half of that! I think we need to consider another type of account with that bank.
If we parked $10,000 there for things like real estate taxes, vacations, emergencies or gifts, it would earn a whopping $40 or $3.33 a month.
If we parked it in our Vanguard MMF is would make close to $460 annually or $38 a month.
I think I'll talk with a banker next week.
'til later
We are careful to keep the checking account low as it pays less interest. We just transfer funds out of the savings account as needed. I used to do this over the phone but now it's so easy on line.
I am embarrassed to tell you I discovered the other day that the passbook account makes all of 0.4% and the checking is always half of that! I think we need to consider another type of account with that bank.
If we parked $10,000 there for things like real estate taxes, vacations, emergencies or gifts, it would earn a whopping $40 or $3.33 a month.
If we parked it in our Vanguard MMF is would make close to $460 annually or $38 a month.
I think I'll talk with a banker next week.
'til later
Saturday, December 22, 2007
Eating Out
Our work takes us away from home about 70 nights a year. We eat out plenty and find ourselves longing for simple meals at home.
Have you eaten out on a Friday evening lately? It has become more popular than Saturday near us. We rarely eat out unless we are away from home.
Three weeks ago I met a girlfriend for dinner on a Friday. We decided to meet at the restaurant early to avoid the crowds. At 5pm we had to wait 15 minutes to be seated. This "chain" does not take reservations. We were surprised how crowded it was.
My suggestion is to avoid Fridays out. Take advantage of coupons or specials some restaurants offer for dining out Monday through Thursday.
'til later
Have you eaten out on a Friday evening lately? It has become more popular than Saturday near us. We rarely eat out unless we are away from home.
Three weeks ago I met a girlfriend for dinner on a Friday. We decided to meet at the restaurant early to avoid the crowds. At 5pm we had to wait 15 minutes to be seated. This "chain" does not take reservations. We were surprised how crowded it was.
My suggestion is to avoid Fridays out. Take advantage of coupons or specials some restaurants offer for dining out Monday through Thursday.
'til later
Friday, December 21, 2007
Last Minute
Bob traditionally does his Christmas shopping on Christmas Eve. He has found wonderful last minute discounts.
He actually does his shopping via newspaper ads and flyers. Then, armed with a target or two, out he goes for the "kill."
I think women enjoy the pursuit more than most guys. We are programmed to roam stores and malls searching and often without purchasing. We can enjoy the shopping experience more than some men.
One Christmas Eve in 1982 or 1983, the thermometer plunged and wet roads were sheets of ice. The tradition of Bob and Marny (she would have been 4 or 5) spending the day at the mall with a nice lunch turned into Kmart and McDonald's drive through.
Even that year treasured memories were made. Church services were cancelled. We accepted an impromptu invitation to join neighbors. We all sang familiar carols and Rudy read the story from the Gospel of Luke.
Rumor has it Marny is available Christmas Eve for a breakfast/shopping outing.
'til later
He actually does his shopping via newspaper ads and flyers. Then, armed with a target or two, out he goes for the "kill."
I think women enjoy the pursuit more than most guys. We are programmed to roam stores and malls searching and often without purchasing. We can enjoy the shopping experience more than some men.
One Christmas Eve in 1982 or 1983, the thermometer plunged and wet roads were sheets of ice. The tradition of Bob and Marny (she would have been 4 or 5) spending the day at the mall with a nice lunch turned into Kmart and McDonald's drive through.
Even that year treasured memories were made. Church services were cancelled. We accepted an impromptu invitation to join neighbors. We all sang familiar carols and Rudy read the story from the Gospel of Luke.
Rumor has it Marny is available Christmas Eve for a breakfast/shopping outing.
'til later
Thursday, December 20, 2007
Winter?
Is winter here yet? Not officially but it feels like it and looks like it.
I find winter depressing. I do not enjoy snowy or icy driving conditions. I don't mind the cold temps as long as I do not have to be out in it much.
The worse part for me is the lack of sunlight. The long gray days indoors wear on my spirit. I dream of spring and green.
We set the thermostat at 67, wear sweaters in the house, and watch TV at night while wrapped in afghans I have knit.
A cup of tea, anyone?
'til later
I find winter depressing. I do not enjoy snowy or icy driving conditions. I don't mind the cold temps as long as I do not have to be out in it much.
The worse part for me is the lack of sunlight. The long gray days indoors wear on my spirit. I dream of spring and green.
We set the thermostat at 67, wear sweaters in the house, and watch TV at night while wrapped in afghans I have knit.
A cup of tea, anyone?
'til later
Tuesday, December 18, 2007
Fund of Funds
I have an IRA which was rolled out of a previous employer's Keough. It has been in an Oakmark fund for 10 years and has done OK. It faired the '00-'03 period without losing much of its value.
This year, with the market up 4% or 5%, this fund has barely retained value. It's time to roll it to another investment.
I am considering one of Vanguard's target retirement funds. I found one that holds 70% equities and 30% reserves or fixed income.
This fund is comprised of 5 or 6 funds. A fund of funds with some international exposure.
The idea with the target date fund is that over time the fund will automatically reposition itself to more and more fixed income (bonds) and less stocks as the target date approaches. I do not have to concern myself with readjusting things. I like that idea.
The paperwork will be mailed out next week. Maybe it's time to reevaluate and consolidate my other small IRA accounts.
'til later
This year, with the market up 4% or 5%, this fund has barely retained value. It's time to roll it to another investment.
I am considering one of Vanguard's target retirement funds. I found one that holds 70% equities and 30% reserves or fixed income.
This fund is comprised of 5 or 6 funds. A fund of funds with some international exposure.
The idea with the target date fund is that over time the fund will automatically reposition itself to more and more fixed income (bonds) and less stocks as the target date approaches. I do not have to concern myself with readjusting things. I like that idea.
The paperwork will be mailed out next week. Maybe it's time to reevaluate and consolidate my other small IRA accounts.
'til later
Antiques?
They are going to phase out our traditional incandescent bulbs over the next four to twelve years. We are going to energy saving incandescent bulbs or light-emitting diodes.
Already motel rooms are being lit with fluorescent and spiral 12-watt incandescent bulbs. The latter costing $2 each versus $0.50 for our old traditional bulbs.
There are other choices such as Greenlite X-bulbs ($4), Feit Ecobulbs Plus ($5) and GE Energy Smart Dimmable Spiral ($10).
But I have to ask if they emit enough light for reading and needlework. So far in motel rooms, the answer is no. I usually find better general lighting in the motel lobby where the lower lights add enough I can enjoy my book.
Where is the savings if tasks require more lights? Should we buy a case or so of the traditional 60w bulbs now before the go the way of VHS and floppy disks? In the future we may have to search antique shops!
'til later
Already motel rooms are being lit with fluorescent and spiral 12-watt incandescent bulbs. The latter costing $2 each versus $0.50 for our old traditional bulbs.
There are other choices such as Greenlite X-bulbs ($4), Feit Ecobulbs Plus ($5) and GE Energy Smart Dimmable Spiral ($10).
But I have to ask if they emit enough light for reading and needlework. So far in motel rooms, the answer is no. I usually find better general lighting in the motel lobby where the lower lights add enough I can enjoy my book.
Where is the savings if tasks require more lights? Should we buy a case or so of the traditional 60w bulbs now before the go the way of VHS and floppy disks? In the future we may have to search antique shops!
'til later
Monday, December 17, 2007
Greatest Gift
What is the best gift you will be giving for Christmas? Is there one special gift you have planned and saved for? Are you anticipating the giving? Are you hoping they will enjoy it? Is it already wrapped? Is it waiting under the tree?
Isn't the anticipation great! A part of you is wrapped in that package - your time, your thoughtfulness.
God gave to us, to everyone - the greatest gift. The dearest, planned, anticipated gift to the world. He gave us part of Himself. He's excited about our receiving His Son.
Have you unwrapped that Gift yet? The best relationship is in that package.
'til later
Isn't the anticipation great! A part of you is wrapped in that package - your time, your thoughtfulness.
God gave to us, to everyone - the greatest gift. The dearest, planned, anticipated gift to the world. He gave us part of Himself. He's excited about our receiving His Son.
Have you unwrapped that Gift yet? The best relationship is in that package.
'til later
Sunday, December 16, 2007
Memorable
What are the most memorable gifts you have received?
Mine would include an antique slaw cutter from my grandmother, a meat slicer, diamond earrings, and a leather coat.
Each one was unexpected and fun.
My daughter found the meat slicer. She insisted it was exactly what I wanted and her dad bought it. She was 10 and I had pointed out a food processor. I was surprised by the slicer. It was only when she was in high school that we told her the truth as we were slicing ham for a family gathering.
What will you receive this year? What will be the unexpected and special gift?
My best friend and I give each other time. We treasure it and look forward to it. She and I will spend our time shopping soon after Christmas with a nice lunch along the river in Geneva. We have done this for five years or so and we both look forward to our special day.
Hope you receive something outstanding like that this year.
'til later
Mine would include an antique slaw cutter from my grandmother, a meat slicer, diamond earrings, and a leather coat.
Each one was unexpected and fun.
My daughter found the meat slicer. She insisted it was exactly what I wanted and her dad bought it. She was 10 and I had pointed out a food processor. I was surprised by the slicer. It was only when she was in high school that we told her the truth as we were slicing ham for a family gathering.
What will you receive this year? What will be the unexpected and special gift?
My best friend and I give each other time. We treasure it and look forward to it. She and I will spend our time shopping soon after Christmas with a nice lunch along the river in Geneva. We have done this for five years or so and we both look forward to our special day.
Hope you receive something outstanding like that this year.
'til later
Saturday, December 15, 2007
Ad $
We were in Iowa this week where political ads are everywhere on television. The candidates are spending big $ for prime spots.
Business spend $ on advertising. Kay Jewelers has run several full page ads this week in USA Today. That has to have cost big $.
$ is spent on carefully placed ads on this website even. Without pop-up blockers, my adventures surfing would be hampered with ads - small ads, large ads, video ads, some with audio.
Ad $ for the Super Bowl is priced by the second. How many memorable ads during unmemorable games. How often the morning after the discussions are about the ads and not the game?
Millions, billions spent and we are the targets.
Look here, look at me, want me, look like me, feel like me. Advertising is a science.
The old adage is buyer beware. Don't fall for the seduction. Carefully check the substance.
'til later
Business spend $ on advertising. Kay Jewelers has run several full page ads this week in USA Today. That has to have cost big $.
$ is spent on carefully placed ads on this website even. Without pop-up blockers, my adventures surfing would be hampered with ads - small ads, large ads, video ads, some with audio.
Ad $ for the Super Bowl is priced by the second. How many memorable ads during unmemorable games. How often the morning after the discussions are about the ads and not the game?
Millions, billions spent and we are the targets.
Look here, look at me, want me, look like me, feel like me. Advertising is a science.
The old adage is buyer beware. Don't fall for the seduction. Carefully check the substance.
'til later
Friday, December 14, 2007
$ Rates
Another adjustment this week. The Feds lowered it 1/4% to lighten $ burden, to control inflation or recession. These are smart analysts with great financial wisdom. Probably the right thing.
The stock market wasn't happy and fell. Then there was a deal struck with international banks that is too confusing to follow. All this makes for an unstable feeling in the market. We will be watchful and hang on for the ride.
The rate adjustment? What affect on you and me? I assume my money market fund will pay less. Possibly the car loan for our new car will be lower but I'm not sure.
Were there always these frequent adjustments to $ rates? Maybe it's just me and I've been more aware these past 6 or 7 years? These controls seem pretty tight.
We will all be watching again next month.
'til later
The stock market wasn't happy and fell. Then there was a deal struck with international banks that is too confusing to follow. All this makes for an unstable feeling in the market. We will be watchful and hang on for the ride.
The rate adjustment? What affect on you and me? I assume my money market fund will pay less. Possibly the car loan for our new car will be lower but I'm not sure.
Were there always these frequent adjustments to $ rates? Maybe it's just me and I've been more aware these past 6 or 7 years? These controls seem pretty tight.
We will all be watching again next month.
'til later
Thursday, December 13, 2007
Sales
Holiday sales. 40% off, 50% off. Glossy pictures, extended shopping hours.
Some items on sale are things I really want. Should I take advantage of the bargains? Should I tell Bob what to buy me - tomorrow between 7am and 10am - get real.
Should I go ahead and buy it, wrap it, have him give it to me Christmas morning?
First, I have to decide if it is truly something I need. If it is, I will go ahead and purchase it. If it's something I really would like to have and could save Bob the headache, I'll wrap it and place it under the tree.
'til later
Some items on sale are things I really want. Should I take advantage of the bargains? Should I tell Bob what to buy me - tomorrow between 7am and 10am - get real.
Should I go ahead and buy it, wrap it, have him give it to me Christmas morning?
First, I have to decide if it is truly something I need. If it is, I will go ahead and purchase it. If it's something I really would like to have and could save Bob the headache, I'll wrap it and place it under the tree.
'til later
Wednesday, December 12, 2007
Car Shopping
2008 will be the year for us to replace one of our cars. I've begun the search on line. I have visited the Honda and Dodge websites. Our first decision is which vehicle to replace.
Is the low mileage 1996 minivan or the above average mileage 2000 Olds sedan headed to a new home? Plus we have an average mileage 1998 Ford Explorer. Our first responsibility is wheels used for our business. So the Olds (our youngest) may go first. I will keep you posted on the progress.
You may ask why do Bargain Barb and her husband have 3 vehicles for 2 drivers. Yes, good question.
There are more expenses having the 3 including insurance and maintenance. The process from 2 to 3 was an opportunity.
In 2002 my dad, due to health issues and limitations, sold us his sedan. The low mileage and full disclosure of maintenance history made the Intrigue intriguing.
It was a good deal for us and the acquisition affordable. Bob uses it for his business travels locally. For trips away of more than 100 miles he rents through Enterprise.
We should pare back to 2 vehicles. Maybe in 2008.
'til later
Is the low mileage 1996 minivan or the above average mileage 2000 Olds sedan headed to a new home? Plus we have an average mileage 1998 Ford Explorer. Our first responsibility is wheels used for our business. So the Olds (our youngest) may go first. I will keep you posted on the progress.
You may ask why do Bargain Barb and her husband have 3 vehicles for 2 drivers. Yes, good question.
There are more expenses having the 3 including insurance and maintenance. The process from 2 to 3 was an opportunity.
In 2002 my dad, due to health issues and limitations, sold us his sedan. The low mileage and full disclosure of maintenance history made the Intrigue intriguing.
It was a good deal for us and the acquisition affordable. Bob uses it for his business travels locally. For trips away of more than 100 miles he rents through Enterprise.
We should pare back to 2 vehicles. Maybe in 2008.
'til later
Tuesday, December 11, 2007
Short?
I was reading a report on how to cut back on energy use. I came across one that has me in stitches.
To save on water, lower the shower head and take shorter showers.
What? On my knees?
'til later
To save on water, lower the shower head and take shorter showers.
What? On my knees?
'til later
Monday, December 10, 2007
Next Door
There's a book called The Millionaire Next Door. My copy is lent out. It tells of the "little guy" millionaire who does not act the stereotype.
He drives an older model car, he has lived in the same house for years, he doesn't wear the latest styles, he doesn't vacation in the Bahamas all the time or visit his Colorado home to ski.
He may not have inherited a bundle. He did not win the lottery. He doesn't make $100,000 a year. He's not an inventor or a drug dealer.
He may work well into his late 60s. He probably shops the ads and clips coupons. He is a content character, comfortable where he is, doing what he loves.
So, again, do not judge that book by the cover. Look around. There may be a millionaire living near you. Be encouraged. He probably got there slowly and steadily like the tortoise in the race.
'til later
He drives an older model car, he has lived in the same house for years, he doesn't wear the latest styles, he doesn't vacation in the Bahamas all the time or visit his Colorado home to ski.
He may not have inherited a bundle. He did not win the lottery. He doesn't make $100,000 a year. He's not an inventor or a drug dealer.
He may work well into his late 60s. He probably shops the ads and clips coupons. He is a content character, comfortable where he is, doing what he loves.
So, again, do not judge that book by the cover. Look around. There may be a millionaire living near you. Be encouraged. He probably got there slowly and steadily like the tortoise in the race.
'til later
Sunday, December 9, 2007
Don't worry?
Doesn't God say that He will provide? Why should we save for retirement? In the Gospel of Matthew there are several verses like: "So do not worry, saying, 'What shall we eat?' or 'What shall we drink?' or 'What shall we wear?'
If I am a Christian, does that mean I should not prepare for retirement? Or even education for my children? The parable of the wealthy man whose harvest was so large he built another barn to store it comes to mind. But he was called a fool.
The book of Proverbs is full of descriptions of wise men. Proverbs 13:22: "A good man leaves an inheritance for his children's children..." Of course an inheritance is not limited to just $. It can include a good name and faith shared.
Proverbs 21:20: "In the house of the wise are stores of choice foods and oil, but a foolish man devours all he has." This is a good argument for budgeting and not spending it all.
Proverbs 30:25: "Ants are creatures of little strength, yet they store up their food in the summer." There are other verses that tell of storing up for another season. It implies planning for the future.
I conclude it should all be in moderation. To be wise, we have a plan. To horde, is a waste. Abundance should be used wisely. God wants us to enjoy giving unto Him.
We need a plan yet not be selfish. Is God glorified in what we do with our wealth?
'til later
If I am a Christian, does that mean I should not prepare for retirement? Or even education for my children? The parable of the wealthy man whose harvest was so large he built another barn to store it comes to mind. But he was called a fool.
The book of Proverbs is full of descriptions of wise men. Proverbs 13:22: "A good man leaves an inheritance for his children's children..." Of course an inheritance is not limited to just $. It can include a good name and faith shared.
Proverbs 21:20: "In the house of the wise are stores of choice foods and oil, but a foolish man devours all he has." This is a good argument for budgeting and not spending it all.
Proverbs 30:25: "Ants are creatures of little strength, yet they store up their food in the summer." There are other verses that tell of storing up for another season. It implies planning for the future.
I conclude it should all be in moderation. To be wise, we have a plan. To horde, is a waste. Abundance should be used wisely. God wants us to enjoy giving unto Him.
We need a plan yet not be selfish. Is God glorified in what we do with our wealth?
'til later
Saturday, December 8, 2007
Dave Ramsey
Have you discovered Dave Ramsey? He has a daily radio show but it's not available in the Chicago area. You should check out his website.
He is huge on not being in debt. He has several creative ways for people to get out of debt after making a commitment to the goal. His formulas for the path to being debt free are successful.
He is also not fond of mortgage debt and completely against consolidated debt. That is to roll your short term debt into long term debt. The banks and mortgage companies are the ones who gain - always.
Dave is a Christian and his principles are strongly reflected in his books as well. His voice is strong and encouraging. I enjoyed catching his program while we were on the road in western Missouri this week.
As far as mortgages go, I believe they are tools that get most of us into our houses. Of course, a 30 year fixed is best. We pay that debt in future $ with less buying power.
We used a 15-year mortgage to get into this house over 22 years ago. Those $1,100 payments were very difficult on $45,000 a year salary. Now it's paid for! When that milestone was crossed, we had the discipline to invest the mortgage payment on a monthly basis into several mutual funds.
The house, of course, has increased in value but we have no plans to leave it. We just struggle to take care of it. We can afford to as we have all those years of mortgage payments socked away at Vanguard. It worked for us.
'til later
He is huge on not being in debt. He has several creative ways for people to get out of debt after making a commitment to the goal. His formulas for the path to being debt free are successful.
He is also not fond of mortgage debt and completely against consolidated debt. That is to roll your short term debt into long term debt. The banks and mortgage companies are the ones who gain - always.
Dave is a Christian and his principles are strongly reflected in his books as well. His voice is strong and encouraging. I enjoyed catching his program while we were on the road in western Missouri this week.
As far as mortgages go, I believe they are tools that get most of us into our houses. Of course, a 30 year fixed is best. We pay that debt in future $ with less buying power.
We used a 15-year mortgage to get into this house over 22 years ago. Those $1,100 payments were very difficult on $45,000 a year salary. Now it's paid for! When that milestone was crossed, we had the discipline to invest the mortgage payment on a monthly basis into several mutual funds.
The house, of course, has increased in value but we have no plans to leave it. We just struggle to take care of it. We can afford to as we have all those years of mortgage payments socked away at Vanguard. It worked for us.
'til later
Friday, December 7, 2007
Thursday, December 6, 2007
Health Savings
Some employers offer HSAs (Health Savings Accounts) which are usually paired with high deductible medical coverage plans. It lets you set aside tax-free dollars to pay for qualified out-of-pocket health expenses.
There are HSAs available for the self-employed. We set ours up through Health Savings Administrators in Richmond VA. They offer Vanguard mutual fund options for investing the $. The account grows tax free waiting for the day we need $ for medical expenses.
We receive electronic quarterly statements. It is set up for Bob since he's the self-employed family member. It shows myself as beneficiary with our daughter Marny as secondary beneficiary.
We contribute the max for now. It will be there in the future to help with extreme needs or long term care. When we take out $, it is taxable that year.
Just another way to grow $ tax free.
'til later
There are HSAs available for the self-employed. We set ours up through Health Savings Administrators in Richmond VA. They offer Vanguard mutual fund options for investing the $. The account grows tax free waiting for the day we need $ for medical expenses.
We receive electronic quarterly statements. It is set up for Bob since he's the self-employed family member. It shows myself as beneficiary with our daughter Marny as secondary beneficiary.
We contribute the max for now. It will be there in the future to help with extreme needs or long term care. When we take out $, it is taxable that year.
Just another way to grow $ tax free.
'til later
Act Your Wage
Act your wage. I heard this phrase on the radio the other afternoon. Does it sound familiar? It sounds like something your mother might have said or maybe your spouse.
We all know people who seem to be living the high life. They drive the right cars and live in the right neighborhoods. Did you ever wonder if they had millions stashed away? Maybe millions that were earning hundreds of thousands?
That may be true. You can not judge a book by its cover. We really can only control what is inside our own covers. We can only live true to ourselves and our God.
My challenge is simply to look inside our own book. Are we conducting ourselves being true to our wage. Are we putting on airs? Are we pretending to have more or be more?
In the end, we answer to our God. And before that we may answer to our spouses. Go and spend wisely this Christmas.
'til later
We all know people who seem to be living the high life. They drive the right cars and live in the right neighborhoods. Did you ever wonder if they had millions stashed away? Maybe millions that were earning hundreds of thousands?
That may be true. You can not judge a book by its cover. We really can only control what is inside our own covers. We can only live true to ourselves and our God.
My challenge is simply to look inside our own book. Are we conducting ourselves being true to our wage. Are we putting on airs? Are we pretending to have more or be more?
In the end, we answer to our God. And before that we may answer to our spouses. Go and spend wisely this Christmas.
'til later
Wednesday, December 5, 2007
If Only
If only I had_____.
Have you heard yourself start a sentence like that? Sure. We all have. If only I had a new car. If only we lived in a better neighborhood. If only I didn't have to work. If only I didn't have a maxed out credit card.
What is the rest of that sentence? If only I had a new car, I'd be happy? If only we lived in that subdivision, we'd have it made? If only I had enough $, I'd be content?
The real question is: would you be happy or content? When is enough enough?
I contend happiness does not equal stuff.
My challenge: dig deep inside and find what you think would truly make you happy and content. If it's not things, what would it be? Maybe we'll discover "it" is something that we can achieve without spending more $. Maybe it's loosing weight, treating our spouse better, being less critical of our children, choosing to not envy others things.
Find your happiness soon. Try to be content with what you have to work with. Try a smile.
'til later
Have you heard yourself start a sentence like that? Sure. We all have. If only I had a new car. If only we lived in a better neighborhood. If only I didn't have to work. If only I didn't have a maxed out credit card.
What is the rest of that sentence? If only I had a new car, I'd be happy? If only we lived in that subdivision, we'd have it made? If only I had enough $, I'd be content?
The real question is: would you be happy or content? When is enough enough?
I contend happiness does not equal stuff.
My challenge: dig deep inside and find what you think would truly make you happy and content. If it's not things, what would it be? Maybe we'll discover "it" is something that we can achieve without spending more $. Maybe it's loosing weight, treating our spouse better, being less critical of our children, choosing to not envy others things.
Find your happiness soon. Try to be content with what you have to work with. Try a smile.
'til later
Tuesday, December 4, 2007
Game Rules
Have you ever played a game and suddenly one of the other players cried out that you made an illegal move. It's like the game rules have been changed.
If the game is creating wealth, as the game progresses, you'll find the rules change on you. As your earned and unearned income (interest, dividends, capital gains, etc.) rise, the rules change.
I'm talking about tax rate changes. You can literally make one dollar more and your rate can jump as much as 5%. The rules change.
Please take time today and check out the tax rates for individuals (Form 1040) for 2007. Go to: irs.gov Don't wait until you set out to do your tax returns. Why now? What can I do now?
If you find yourself approaching one of the rate differences, consider a charitable gift (if you itemize), make January's house payment in December, defer selling stocks/mutual funds that would kick in a taxable gain or sell stock/mutual fund that would provide a loss.
It's best to know the game rules before you start to play.
'til later
If the game is creating wealth, as the game progresses, you'll find the rules change on you. As your earned and unearned income (interest, dividends, capital gains, etc.) rise, the rules change.
I'm talking about tax rate changes. You can literally make one dollar more and your rate can jump as much as 5%. The rules change.
Please take time today and check out the tax rates for individuals (Form 1040) for 2007. Go to: irs.gov Don't wait until you set out to do your tax returns. Why now? What can I do now?
If you find yourself approaching one of the rate differences, consider a charitable gift (if you itemize), make January's house payment in December, defer selling stocks/mutual funds that would kick in a taxable gain or sell stock/mutual fund that would provide a loss.
It's best to know the game rules before you start to play.
'til later
Monday, December 3, 2007
Holiday Stress
This is a very stressful time of year for so many folks. A recently published survey in the Family Circle Magazine lists 40% of respondents claim finances are their big stress maker. Financial overload in December can make for a stressful January, February and beyond.
A possible source to help lessen this stress might be to list treasures on Ebay. Place some gifts received in past years to work. Sell things. Maybe cutting back on eating out. Take a sack lunch to work. Suffer through the office coffee maker rather than Starbucks.
The second stress producer listed by 34% was too many activities. Party invitations all seem to come this month and many for the same day. We all know people who dash between houses of friends and office or professional parties. Talk about stress. A gracious thank you but no thank you. Keep it simple. Drop the guilt.
Down the list in the survey was time with family reported by 17%. We all have an Uncle John who can't stop dominating all conversations or an Aunt Bertha who never helps but rather occupies the best chair for the duration. What to do to help with this stress? You can't change family. I would suggest focus on the positive and keep moving. Uncle John will continue his saga with your brother or your cousin. Aunt Bertha might be lazy but she has great funny stories to share.
Whatever your stress. Find a way past it. Don't let it destroy your joy of the season.
'til later
A possible source to help lessen this stress might be to list treasures on Ebay. Place some gifts received in past years to work. Sell things. Maybe cutting back on eating out. Take a sack lunch to work. Suffer through the office coffee maker rather than Starbucks.
The second stress producer listed by 34% was too many activities. Party invitations all seem to come this month and many for the same day. We all know people who dash between houses of friends and office or professional parties. Talk about stress. A gracious thank you but no thank you. Keep it simple. Drop the guilt.
Down the list in the survey was time with family reported by 17%. We all have an Uncle John who can't stop dominating all conversations or an Aunt Bertha who never helps but rather occupies the best chair for the duration. What to do to help with this stress? You can't change family. I would suggest focus on the positive and keep moving. Uncle John will continue his saga with your brother or your cousin. Aunt Bertha might be lazy but she has great funny stories to share.
Whatever your stress. Find a way past it. Don't let it destroy your joy of the season.
'til later
Saturday, December 1, 2007
Saved $ Making $
Understanding compound interest can be fun. Consider what would happen if you could set aside $100 a month (just $25 a week) and it earned 10%. These days that sounds like great earnings. We're all excited if we can find 5% interest.
Anyway, $100 a month set aside earning 10%. Setting aside $1,200 a year for 20 years equals $24,000.
Enter compound interest. The saved $1,200 earns 10% which also earns 10%. Rate times time. The $24,000 actually earned and set aside to grow would do just that.
It would become $76,500. The gain in total would be $52,500.
If you add more time to the adventure of saving $100 a month, in 40 years you would have $637,000. Your invested earned $ would gain $589,000, over half a million.
Consider setting aside the most you can in an IRA, 401(k), 403(b), SEP, or Roth IRA. Compounding without having to pay taxes on interest income and you will reap a compound interest harvest!
'til later
Anyway, $100 a month set aside earning 10%. Setting aside $1,200 a year for 20 years equals $24,000.
Enter compound interest. The saved $1,200 earns 10% which also earns 10%. Rate times time. The $24,000 actually earned and set aside to grow would do just that.
It would become $76,500. The gain in total would be $52,500.
If you add more time to the adventure of saving $100 a month, in 40 years you would have $637,000. Your invested earned $ would gain $589,000, over half a million.
Consider setting aside the most you can in an IRA, 401(k), 403(b), SEP, or Roth IRA. Compounding without having to pay taxes on interest income and you will reap a compound interest harvest!
'til later
My Advice
My friend Donna has a long commute each day. Her round trip is over 60 miles. She shares the driving with a co-worker and yet they both put many miles on their vehicles.
Recently Donna traded her 7 year old 150,000 miles Sebring on a 2004 Sebring. It's a beautiful car. She looked at new cars and priced what she really wanted at $30,000.
My advice to her would have been not to take a 60 month loan on the "new" used car. That's 5 years to pay off a car that will perform about like her old one and start needing major repairs when it is 6 years old or 3 years from now when she will still be making payments.
Worse yet, when it is 7 years old and she's back looking for a new car, she will still owe a year's worth of payments. I think many people find them selves in that boat. Trading in, satisfying old debt, and taking on 5 year loans - an unending cycle.
Donna's story was all about getting payments down to an amount that would fit her budget. Makes sense. But, it is short sighted. Let's hope the nice used car has a long healthy life.
'til later
Recently Donna traded her 7 year old 150,000 miles Sebring on a 2004 Sebring. It's a beautiful car. She looked at new cars and priced what she really wanted at $30,000.
My advice to her would have been not to take a 60 month loan on the "new" used car. That's 5 years to pay off a car that will perform about like her old one and start needing major repairs when it is 6 years old or 3 years from now when she will still be making payments.
Worse yet, when it is 7 years old and she's back looking for a new car, she will still owe a year's worth of payments. I think many people find them selves in that boat. Trading in, satisfying old debt, and taking on 5 year loans - an unending cycle.
Donna's story was all about getting payments down to an amount that would fit her budget. Makes sense. But, it is short sighted. Let's hope the nice used car has a long healthy life.
'til later
Friday, November 30, 2007
Hot Ads
The hot ads keep coming. The newspapers seem to have fancy color flyers in them each day. Late today and early tomorrow specials at Kohl's look great. Maybe I'll venture there today. Some deals start at 3pm today and run through midnight! Only to reopen with more specials at 7am tomorrow! How can one resist?
Plus, the calendar is filling quickly with special programs at church, party invitations, and family commitments. December is filling up.
That brings me to yet another budget item. Time. There are only so many hours in a day. There are only 25 days until Christmas Day. Times like these call for wise choices.
I urge you to mark off time for fun activities like a coffee shop stop downtown to watch the shoppers go by, a trip to the library or just time with a good book to escape the bustle, an afternoon to make cookies and play those Christmas CDs that sit on the shelf most of the year, or an evening to drive through the rich neighborhoods to see all the lights.
Some of these can be fit between trips to Kohl's midnight specials and those extra church services. Remember, there are few busy activities to fill the gray cold days of January and February. Take time to enjoy the season!
'til later
Plus, the calendar is filling quickly with special programs at church, party invitations, and family commitments. December is filling up.
That brings me to yet another budget item. Time. There are only so many hours in a day. There are only 25 days until Christmas Day. Times like these call for wise choices.
I urge you to mark off time for fun activities like a coffee shop stop downtown to watch the shoppers go by, a trip to the library or just time with a good book to escape the bustle, an afternoon to make cookies and play those Christmas CDs that sit on the shelf most of the year, or an evening to drive through the rich neighborhoods to see all the lights.
Some of these can be fit between trips to Kohl's midnight specials and those extra church services. Remember, there are few busy activities to fill the gray cold days of January and February. Take time to enjoy the season!
'til later
Thursday, November 29, 2007
Investment Show
One of the investment sources I often listen to is Adam Bold. He now does a weekly TV show. It's not available on my cable system but I have watched previous shows on his website. yourinvestmentshow.com
Of course, Mr. Bold is trying to sell his service. He owns The Mutual Fund Stores throughout the nation. They manage $ for a flat fee of value. I looked into it and even took his risk tolerance survey.
I don't care to surrender 2% of value each year in hopes of making more than that through my holdings. Truth, I'm more of a control freak.
However, I enjoy his calm demeanor and some of his advise. I recommend his radio show and now his TV show. I do not recommend you surrender control but it does work for many people.
Just thought you'd like to know more about one of my regular $ influences.
'til later
Of course, Mr. Bold is trying to sell his service. He owns The Mutual Fund Stores throughout the nation. They manage $ for a flat fee of value. I looked into it and even took his risk tolerance survey.
I don't care to surrender 2% of value each year in hopes of making more than that through my holdings. Truth, I'm more of a control freak.
However, I enjoy his calm demeanor and some of his advise. I recommend his radio show and now his TV show. I do not recommend you surrender control but it does work for many people.
Just thought you'd like to know more about one of my regular $ influences.
'til later
Wednesday, November 28, 2007
Joyful
Oh the joy of giving. The excitement of finding the right gift, the one perfect thing for your loved one.
At what cost? 12%, 15%, 18%. A year or two to pay off?
Will your joy be painful in January and February and beyond?
I don't mean to rain on your parade. I just want your joy to be complete. Don't blow your budget. Stop before you buy that big screen tv or $350 game system.
We are bombarded with visuals of the happy gift giving. Wouldn't you just love to buy your spouse diamonds, a new car, that large tv that they deserve. Of course but will your joy be robbed?
Just a caution as we rush about hunting that perfect gift for our loved ones.
'til later
At what cost? 12%, 15%, 18%. A year or two to pay off?
Will your joy be painful in January and February and beyond?
I don't mean to rain on your parade. I just want your joy to be complete. Don't blow your budget. Stop before you buy that big screen tv or $350 game system.
We are bombarded with visuals of the happy gift giving. Wouldn't you just love to buy your spouse diamonds, a new car, that large tv that they deserve. Of course but will your joy be robbed?
Just a caution as we rush about hunting that perfect gift for our loved ones.
'til later
Tuesday, November 27, 2007
Coverage
Thirty years ago we bought our first real life insurance coverage. Bob's employer provided a small life policy but when we found out we were expecting our first child, we started to think about all the "what ifs".
We have never had to carry the insurance tied to a mortgage where the loan is covered in the case of our demise. We think it's best to cover ourselves with policies that would provide enough that the survivor would use it to cover the monthly mortgage payment.
Back in 1977 we faced the big what if. We purchased a smaller policy on my life and a significantly larger policy on Bob. If I died, Bob would have a cushion to give him some freedom to find childcare. If he passed, I would have a large amount that hopefully would be handled properly to live off for a few years.
Term life insurance is cheaper than whole life. We still have our policies which are a combination of term coverage and some cash growth. We no longer need these policies but continue to make the payments. At this point in our lives, the costs should probably be used to purchase long term health care.
That's another big what if. Hard to face some of life's what ifs but they are important.
'til later
We have never had to carry the insurance tied to a mortgage where the loan is covered in the case of our demise. We think it's best to cover ourselves with policies that would provide enough that the survivor would use it to cover the monthly mortgage payment.
Back in 1977 we faced the big what if. We purchased a smaller policy on my life and a significantly larger policy on Bob. If I died, Bob would have a cushion to give him some freedom to find childcare. If he passed, I would have a large amount that hopefully would be handled properly to live off for a few years.
Term life insurance is cheaper than whole life. We still have our policies which are a combination of term coverage and some cash growth. We no longer need these policies but continue to make the payments. At this point in our lives, the costs should probably be used to purchase long term health care.
That's another big what if. Hard to face some of life's what ifs but they are important.
'til later
Monday, November 26, 2007
IRS Penalties
Now is the time of year to review your federal (and probably state) withholdings toward Tax Day in April 2008. Now you can do something about it or at least with an estimated tax deposit which is due January 15.
Pub. 17 states that we are safe from penalties/late payment fees if our withheld federal tax is equal to 90% of "expected" tax liability or 110% of our 2006 tax liability.
It's bad enough to pay taxes and I choose to avoid piling on penalties. It's not bad to owe in the spring but why face additional fees.
I collected our sources of withheld taxes so far. My last pay stub from my seasonal job, our payroll records for Bob's Chapter S Corporation, and his pension stub from November 1. I compared that total plus what will be withheld from his December 1 pension with our 2006 1040 tax return, line 63.
I have decided to target 110% of that figure and will adjust Bob's final paycheck from the Corp. to cover the difference. We may owe in April but we won't owe penalties as well.
'til later
Pub. 17 states that we are safe from penalties/late payment fees if our withheld federal tax is equal to 90% of "expected" tax liability or 110% of our 2006 tax liability.
It's bad enough to pay taxes and I choose to avoid piling on penalties. It's not bad to owe in the spring but why face additional fees.
I collected our sources of withheld taxes so far. My last pay stub from my seasonal job, our payroll records for Bob's Chapter S Corporation, and his pension stub from November 1. I compared that total plus what will be withheld from his December 1 pension with our 2006 1040 tax return, line 63.
I have decided to target 110% of that figure and will adjust Bob's final paycheck from the Corp. to cover the difference. We may owe in April but we won't owe penalties as well.
'til later
Sunday, November 25, 2007
Stock Market
Worries about the Dow. Are stocks the best investment? The market has been the best place historically. Over time the market has performed at an average of 8-10%.
How fresh our memories are of the late 1990s when it seemed the only way was up. How fresh our memory of 2000 when few moves were higher, back when tech stocks headed south.
The question is what about now. Is it where some of our $ should be invested. We enjoyed watching the Dow hit 14,000 but look where we are now.
The good news. It's up about 4% over the last 12 months. Few savings accounts averaged that. Our local bank passbook has averaged barely 0.5%. [Our mutual fund money market is currently at 4.8%.]
Yes, the market is where we'll stay invested about 50%. We are not seeing capital gains and very little dividends but the growth potential is good. I do not believe we are in a recession.
The market is influenced by many things. I think this past week the talk has been how retailers were going to suffer because this holiday spending season was projected to be very low.
So far this Black Weekend, reports are positive. I predict the market will smile on Monday and go up. The big shadow is that oil hit a high mark late last week.
We'll stay tuned and for now stay invested in stocks with our long term $.
'til later
How fresh our memories are of the late 1990s when it seemed the only way was up. How fresh our memory of 2000 when few moves were higher, back when tech stocks headed south.
The question is what about now. Is it where some of our $ should be invested. We enjoyed watching the Dow hit 14,000 but look where we are now.
The good news. It's up about 4% over the last 12 months. Few savings accounts averaged that. Our local bank passbook has averaged barely 0.5%. [Our mutual fund money market is currently at 4.8%.]
Yes, the market is where we'll stay invested about 50%. We are not seeing capital gains and very little dividends but the growth potential is good. I do not believe we are in a recession.
The market is influenced by many things. I think this past week the talk has been how retailers were going to suffer because this holiday spending season was projected to be very low.
So far this Black Weekend, reports are positive. I predict the market will smile on Monday and go up. The big shadow is that oil hit a high mark late last week.
We'll stay tuned and for now stay invested in stocks with our long term $.
'til later
Saturday, November 24, 2007
Magazines
We subscribe to 4 monthly magazines and one financial newsletter. We have 2 daily newspapers delivered to the house. Bob gets a magazine as a gift. It's a cooking magazine. It's small and full of recipes and tips.
In our budget these expenses are accounted for under the heading Entertainment. As that category also contains eating out, movies, and cable TV, these subscriptions are a small part of that expense yearly.
Marny and her husband use the local library. They use the facility weekly and Marny always takes home periodicals.
They are the smarter consumer in that our taxes pay for the library and its 2 branches. They pick up magazines, books, CDs, and DVDs. I think the latter cost a little.
Does your community offer the same amenities? Need to shave some off your entertainment expenses. Use what you are paying for. The public library.
'til later
In our budget these expenses are accounted for under the heading Entertainment. As that category also contains eating out, movies, and cable TV, these subscriptions are a small part of that expense yearly.
Marny and her husband use the local library. They use the facility weekly and Marny always takes home periodicals.
They are the smarter consumer in that our taxes pay for the library and its 2 branches. They pick up magazines, books, CDs, and DVDs. I think the latter cost a little.
Does your community offer the same amenities? Need to shave some off your entertainment expenses. Use what you are paying for. The public library.
'til later
Friday, November 23, 2007
Black Friday
Back home already. The line at Kmart at 6am wasn't bad. It was very cold. Did good in the toy section as the very early birds are after electronics mostly. Also, some winter children's clothing specials. Two pair of pjs were the best deal.
Then off to Target. Of course by then their electronics rush is over. They had tv show DVD series on sale and some toys. No heavy crowds and no waiting there to check out. Amazing.
Do not know if we chose the least traveled route this morning. The radio reports large traffic back ups near the outlet malls and large shopping venues. Woodfield mall parking at 75% of capacity.
Time to enjoy a leisure cup of coffee and be grateful for the deals made.
til later
Then off to Target. Of course by then their electronics rush is over. They had tv show DVD series on sale and some toys. No heavy crowds and no waiting there to check out. Amazing.
Do not know if we chose the least traveled route this morning. The radio reports large traffic back ups near the outlet malls and large shopping venues. Woodfield mall parking at 75% of capacity.
Time to enjoy a leisure cup of coffee and be grateful for the deals made.
til later
Thursday, November 22, 2007
Giving thanks
Today is set aside for the giving of thanks.
Do we say thank you often enough? Do we thank strangers for favors and not thank those who live with us and love us?
Today is set aside to thank God, our creator, for the blessings of life. Do that today. We could praise Him more often, don't you think?
Thank Him and remember to thank others. Try both with a smile.
til later
Do we say thank you often enough? Do we thank strangers for favors and not thank those who live with us and love us?
Today is set aside to thank God, our creator, for the blessings of life. Do that today. We could praise Him more often, don't you think?
Thank Him and remember to thank others. Try both with a smile.
til later
Wednesday, November 21, 2007
Earned Discount
I carry a key ring with 15 of those small retailer customer ID tags. I carry one for Jewel, OfficeMax, OfficeDepot, Borders, and BassPro among others.
I think Big Brother is watching. There's proof I was there on the computers each time they swipe one of those little tags. I give them over voluntarily in hopes of rewards.
This week I used a cardboard credit card size coupon from Office Max toward a purchase. It came in the mail attached to a quarterly statement showing our purchases.
Each time since July when we had the clerk swipe my little tag, we earned a cash back toward future purchases. Our charge was reduced by 61 cents. You may ask, is it worth carrying that key ring every where. Sure, it is.
So, go ahead, Big Brother, watch. I'm making $ on my purchases.
'til later
I think Big Brother is watching. There's proof I was there on the computers each time they swipe one of those little tags. I give them over voluntarily in hopes of rewards.
This week I used a cardboard credit card size coupon from Office Max toward a purchase. It came in the mail attached to a quarterly statement showing our purchases.
Each time since July when we had the clerk swipe my little tag, we earned a cash back toward future purchases. Our charge was reduced by 61 cents. You may ask, is it worth carrying that key ring every where. Sure, it is.
So, go ahead, Big Brother, watch. I'm making $ on my purchases.
'til later
Tuesday, November 20, 2007
Visions
Visions of Thanksgiving. Football and giant parades. Too much to eat and mountains of dishes to clean. Naps.
Yes, all that plus the expressions of thanks to God for the blessings we may not take the time to consider. Loved ones, jobs, health, wealth.
In giving thanks for our bounty, it is important to remember those less fortunate. Envision a life without our huge meal and big screen tv. The world is full of those less fortunate.
Let us think of the giving part of Thanksgiving and share. I challenge you to consider charitable gifts this time of year. Make a difference in someone's life, someone's table. Find a food pantry or a shelter that could use your $ gift to make differences in lives.
'til later
Yes, all that plus the expressions of thanks to God for the blessings we may not take the time to consider. Loved ones, jobs, health, wealth.
In giving thanks for our bounty, it is important to remember those less fortunate. Envision a life without our huge meal and big screen tv. The world is full of those less fortunate.
Let us think of the giving part of Thanksgiving and share. I challenge you to consider charitable gifts this time of year. Make a difference in someone's life, someone's table. Find a food pantry or a shelter that could use your $ gift to make differences in lives.
'til later
Monday, November 19, 2007
Budget Buster
We are approaching the Christmas gift giving season. Don't let your gifting bust your budget. Don't get so carried away with the generosity of the season that you can't face the Visa bill in January.
When it comes to Uncle Frank don't budget that you'll get him a warm sweater. Budget rather $50 for Uncle Frank. You are safer than finding out that Uncle Frank's size plus the quality of garment you want to give him start in the $75 range.
If you budget $50 for Uncle Frank, maybe you find a sweater vest or decide on a gift card for his favorite big men's store. He could then choose between the sky blue sweater and the taupe one.
Make your gifting budget now. Remember to include costs of packaging and shipping, if applicable. Commit to your numbers and stay within those boundaries. You'll have a merry Christmas and a happy Visa statement.
'til later
When it comes to Uncle Frank don't budget that you'll get him a warm sweater. Budget rather $50 for Uncle Frank. You are safer than finding out that Uncle Frank's size plus the quality of garment you want to give him start in the $75 range.
If you budget $50 for Uncle Frank, maybe you find a sweater vest or decide on a gift card for his favorite big men's store. He could then choose between the sky blue sweater and the taupe one.
Make your gifting budget now. Remember to include costs of packaging and shipping, if applicable. Commit to your numbers and stay within those boundaries. You'll have a merry Christmas and a happy Visa statement.
'til later
Sunday, November 18, 2007
Black Friday
I found out there's a website that lists some of the big sales that are coming up in the newspaper ads for this coming Thursday (that's right, Thanksgiving Day) and Friday (known as Black Friday). It doesn't contain the print ads but a generic list. Just search Black Friday. I think it's blackfriday.info.
Why is it called Black Friday? It's the one day, no more like the 5-day period, when many retailers break into the black. It is also a temperature taker as far as Wall Street is concerned. The question it may answer is will this be a big spending holiday season or are people pulling back on their giving.
Notice I said 5-day period. It actually begins on Thanksgiving Day. Places like Kmart will have big door busters offered just for Thursday. An outlet mall not far from here opens at midnight Thanksgiving night to get a jump on the 5am and 6am when many stores open on Friday.
Aw, and do not forget Monday. The largest internet sales day before the holidays. Folks all over, at home and at work, are busy making their gift choices and ringing up those credit card balances.
So, we wait and watch along with Wall Street and retailers across the land.
'til later
Why is it called Black Friday? It's the one day, no more like the 5-day period, when many retailers break into the black. It is also a temperature taker as far as Wall Street is concerned. The question it may answer is will this be a big spending holiday season or are people pulling back on their giving.
Notice I said 5-day period. It actually begins on Thanksgiving Day. Places like Kmart will have big door busters offered just for Thursday. An outlet mall not far from here opens at midnight Thanksgiving night to get a jump on the 5am and 6am when many stores open on Friday.
Aw, and do not forget Monday. The largest internet sales day before the holidays. Folks all over, at home and at work, are busy making their gift choices and ringing up those credit card balances.
So, we wait and watch along with Wall Street and retailers across the land.
'til later
Saturday, November 17, 2007
Sales Rack
Clearance. A sign usually posted toward the back of retail shops. Sometimes it's the place to start your shopping adventure. Mostly they are out-of-season clothing, slightly damaged wares, or one-of-a-kind.
Yesterday I was out with my daughter. Her husband's Christmas Party (I know, holiday party) is a month away. She has worn the same black cocktail dress the past two years. She was hoping to find something new for this year.
Marny picked out 2 dresses from a rack and headed toward the dressing room. An employee busy refolding sweaters suggested she take a look at the racks at the back. Sure enough, under a large gold and red sign there were 3 racks of clothing. She found 2 black dresses and headed for the dressing room.
Marny bought the cutest of the four. It was off the clearance rack. She saved about $70 and loves the dress. How helpful the staff was redirecting her to the back corner.
Now she wants a new necklace to go with. Hope she doesn't spend all the "saved" $ on one.
'til later
Yesterday I was out with my daughter. Her husband's Christmas Party (I know, holiday party) is a month away. She has worn the same black cocktail dress the past two years. She was hoping to find something new for this year.
Marny picked out 2 dresses from a rack and headed toward the dressing room. An employee busy refolding sweaters suggested she take a look at the racks at the back. Sure enough, under a large gold and red sign there were 3 racks of clothing. She found 2 black dresses and headed for the dressing room.
Marny bought the cutest of the four. It was off the clearance rack. She saved about $70 and loves the dress. How helpful the staff was redirecting her to the back corner.
Now she wants a new necklace to go with. Hope she doesn't spend all the "saved" $ on one.
'til later
Friday, November 16, 2007
So smart?
What makes me think I am smart enough to write a daily blog about bargains, budgets, and investments? Someone who reads this blog regularly ask if I have trouble each day coming up with something to say.
That was an easy question. I'm rarely at a loss of things to share. I believe our daily lives are full of $ decisions even if they are not to do something, go somewhere, shop, etc.
But do I have the smarts to advise folks about investments? I only share what I have done or I am experiencing. My husband, dear Bob, is worried that I will get sued for some free advice or that I unwillingly will mislead someone to invest $ that loses value.
That would be scary if I didn't always preempt my advice with things like know what you are "buying", know your own tolerance for risks, know that some investments go down and not up, and can you afford to live without touching the $ for a long time?
Yesterday I had a call from my sister. She is moving some IRA $ from a load mutual fund to my favorite fund family, Vanguard. She has not decided which fund or funds she will invest in but has decided to park the $ in the big money market fund for the time being. She realizes her $ will grow there since it currently pays more than 4.75%.
She has asked where I have my IRA $ in Vanguard. I told her I'd share later. I want her to understand allocations and expectations. She'll get it. She has a degree in accounting.
'til later
That was an easy question. I'm rarely at a loss of things to share. I believe our daily lives are full of $ decisions even if they are not to do something, go somewhere, shop, etc.
But do I have the smarts to advise folks about investments? I only share what I have done or I am experiencing. My husband, dear Bob, is worried that I will get sued for some free advice or that I unwillingly will mislead someone to invest $ that loses value.
That would be scary if I didn't always preempt my advice with things like know what you are "buying", know your own tolerance for risks, know that some investments go down and not up, and can you afford to live without touching the $ for a long time?
Yesterday I had a call from my sister. She is moving some IRA $ from a load mutual fund to my favorite fund family, Vanguard. She has not decided which fund or funds she will invest in but has decided to park the $ in the big money market fund for the time being. She realizes her $ will grow there since it currently pays more than 4.75%.
She has asked where I have my IRA $ in Vanguard. I told her I'd share later. I want her to understand allocations and expectations. She'll get it. She has a degree in accounting.
'til later
Thursday, November 15, 2007
Bargain?
I shop often in the small chain discount stores like Big Lots and Dollar General. They can be great places to pick up food storage bags, cleaning supplies, and seasonal supplies like wrapping paper, greeting cards, and ribbon.
Today is laundry day. I am still using up some detergent I picked up this summer at one of these stores. It was cheap. Although I did not recognize the label I figured soaps are generally made of the same ingredients.
It does the cleaning job but the odor is not pleasant. It has a floral heaviness that lingers. That might not bother some but I have come to use it only in the white loads with hot water and bleach.
I guess it was still a bargain but in the future I won't venture too far from known labels when it comes to laundry soap. If it comes in one of the no odor formulas, I might be tempted.
Is it a bargain? Probably but not if it had "smelled" through the hot water and bleach.
Is there such a thing as too frugal?
'til later
Today is laundry day. I am still using up some detergent I picked up this summer at one of these stores. It was cheap. Although I did not recognize the label I figured soaps are generally made of the same ingredients.
It does the cleaning job but the odor is not pleasant. It has a floral heaviness that lingers. That might not bother some but I have come to use it only in the white loads with hot water and bleach.
I guess it was still a bargain but in the future I won't venture too far from known labels when it comes to laundry soap. If it comes in one of the no odor formulas, I might be tempted.
Is it a bargain? Probably but not if it had "smelled" through the hot water and bleach.
Is there such a thing as too frugal?
'til later
Wednesday, November 14, 2007
Pundits
With the stock market plunging and regaining and plunging, I've been more attuned to market commentators. I think it was CNN the other night, I saw one talking head proclaiming we were headed to a depression worse than the great one back in the 1930s.
On the radio, another voice proclaiming we were in the beginning of a mega inflation period. The price of gas was headed higher by at least a $ before July. We must move our investment $ to government bonds as soon as possible.
Have you heard any of these? Many concerned voices blaming the mortgage crisis as the beginning of the end. Fingers pointing at banking, fingers pointing at dishonest lending, and more fingers pointing at Congress.
Makes me hold my breath. I know many folks are really in a bind. Those adjustables have done just what their name implies. They have adjusted and many of these by 2% or whatever the maximum allowed by contract.
People used 100% financing to get into homes of their own. The American dream. The demand for more houses drove the building boom and inflated house prices. I'm afraid many did not understand much past "here's what your monthly payment is." To them that was the bottom line and they were not listening or understanding the rest of the creative financing contracts they signed.
Another pundit last night says things are worsening for millions of these folks in that they are waiting for the government to pave the way out of their contracts. They are not making payments or are not making full payments. This will shut the door on their future home ownership.
There is no way the government can undo these contracts. They can put more regulations on lenders like warning stickers on packs of cigarettes. But it's deeper than that.
Americans have come to rely on government - I think big G Government - to take care of them. We expect Government to protect us from ourselves. These folks are waiting for a way out paved by Government. Government must protect us from ourselves.
But this time, they just can't. It's not that the banks and mortgage companies want to foreclose. They do not want these houses back. These properties are now worth less than they were say 3 years ago - that is in most real estate markets.
But they are not charities either. Folks will loose their American Dream and we will all be smarter - hopefully not more dependent on Uncle Sam. We need more of that independent spirit that motivated persecuted Europeans to board boats bound for the unknown. They came to escape religious persecution and they came to a land free of tax bondage.
Oh my, today the religious (except Muslins) are denied many rights and recognition. [A moment of silence is not allowed in our public schools locally.] Today we are taxed but we do have representation, right?
'til later
On the radio, another voice proclaiming we were in the beginning of a mega inflation period. The price of gas was headed higher by at least a $ before July. We must move our investment $ to government bonds as soon as possible.
Have you heard any of these? Many concerned voices blaming the mortgage crisis as the beginning of the end. Fingers pointing at banking, fingers pointing at dishonest lending, and more fingers pointing at Congress.
Makes me hold my breath. I know many folks are really in a bind. Those adjustables have done just what their name implies. They have adjusted and many of these by 2% or whatever the maximum allowed by contract.
People used 100% financing to get into homes of their own. The American dream. The demand for more houses drove the building boom and inflated house prices. I'm afraid many did not understand much past "here's what your monthly payment is." To them that was the bottom line and they were not listening or understanding the rest of the creative financing contracts they signed.
Another pundit last night says things are worsening for millions of these folks in that they are waiting for the government to pave the way out of their contracts. They are not making payments or are not making full payments. This will shut the door on their future home ownership.
There is no way the government can undo these contracts. They can put more regulations on lenders like warning stickers on packs of cigarettes. But it's deeper than that.
Americans have come to rely on government - I think big G Government - to take care of them. We expect Government to protect us from ourselves. These folks are waiting for a way out paved by Government. Government must protect us from ourselves.
But this time, they just can't. It's not that the banks and mortgage companies want to foreclose. They do not want these houses back. These properties are now worth less than they were say 3 years ago - that is in most real estate markets.
But they are not charities either. Folks will loose their American Dream and we will all be smarter - hopefully not more dependent on Uncle Sam. We need more of that independent spirit that motivated persecuted Europeans to board boats bound for the unknown. They came to escape religious persecution and they came to a land free of tax bondage.
Oh my, today the religious (except Muslins) are denied many rights and recognition. [A moment of silence is not allowed in our public schools locally.] Today we are taxed but we do have representation, right?
'til later
Tuesday, November 13, 2007
Watching $
I closely watch our checking account on line. A week ago there was a credit of $100 to the account. That was odd but it was an adjustment in the right direction. Before I had time to call the bank, an explanation came in the mail.
It was a simple addition mistake I made on a deposit. It was $ due us and was probably caught when the teller balanced out her drawer or in the Proof Department when the checks v deposits were coded.
It brings me to another idea to share with you. Do you have the capability to watch your $ accounts on line? Do you have an idea what interest your accounts are earning.
I mean your bank accounts. Watching mutual fund investments, government bonds, etc. on a regular basis can be difficult and what they are earning is difficult to calculate except on some websites.
The biggest step to watching your $ is balancing your bank accounts monthly. Other investments should be given a studious review on a quarterly basis asking the question how is my $ growing and is my allocation correct for my needs and risk tolerance.
Banks make mistakes but humans make more. Be diligent about your $.
'til later
It was a simple addition mistake I made on a deposit. It was $ due us and was probably caught when the teller balanced out her drawer or in the Proof Department when the checks v deposits were coded.
It brings me to another idea to share with you. Do you have the capability to watch your $ accounts on line? Do you have an idea what interest your accounts are earning.
I mean your bank accounts. Watching mutual fund investments, government bonds, etc. on a regular basis can be difficult and what they are earning is difficult to calculate except on some websites.
The biggest step to watching your $ is balancing your bank accounts monthly. Other investments should be given a studious review on a quarterly basis asking the question how is my $ growing and is my allocation correct for my needs and risk tolerance.
Banks make mistakes but humans make more. Be diligent about your $.
'til later
Monday, November 12, 2007
Gas Prices
I am old enough to remember clearly $.25 per gallon gas. When there was a serious gas war, prices would temporarily drop a penny or two. But then I was driving a '69 Volkswagen bug and got wonderful mileage. Still, I never thought it worth the trip to drive miles to a better price. I would take advantage of the lower cost all things being equal but never understood driving to save 2 cents a gallon.
Things are so different today. Rarely do you see a price war between corner stations. Maybe their profit percentages are already so low they don't dare venture down the price scale.
Today at $3.11 prices nearby, we now watch prices posted as we travel around town. It's worth driving 6 miles to fill with $3.04 per gallon all things being equal. Now we're not saving cents but a dollar or two.
Until two years ago, we paid cash for auto fuel. Now, we don't carry that much with us. It's quicker to pay at the pump with the credit card.
There's still one thing we could charge but choose to pay cash for and that's groceries. That may change some day but for now it's a stop at the bank on the way to the Jewel.
'til later
Things are so different today. Rarely do you see a price war between corner stations. Maybe their profit percentages are already so low they don't dare venture down the price scale.
Today at $3.11 prices nearby, we now watch prices posted as we travel around town. It's worth driving 6 miles to fill with $3.04 per gallon all things being equal. Now we're not saving cents but a dollar or two.
Until two years ago, we paid cash for auto fuel. Now, we don't carry that much with us. It's quicker to pay at the pump with the credit card.
There's still one thing we could charge but choose to pay cash for and that's groceries. That may change some day but for now it's a stop at the bank on the way to the Jewel.
'til later
Sunday, November 11, 2007
Apples to apples
We try to review our car insurance coverage yearly but you know how that goes. It had been probably 2 years so we sat down with our agent one cool December morning. I noticed he had a nicer desk than I remember…..
We went over each vehicle (we have three cars – that’s another story for another day) and the difference pieces of the coverage like bodily injury, collision, comprehensive – both amounts of coverage and deductibles. Then he joyfully pointed out the discounts having all vehicles plus home owners plus liability umbrella. We changed a few things – both up and down. Bottom line (I am a bottom line kind of gal) we saved very little.
A week or so later, I got a solicitation in the mail for a free car insurance quote and called the local agent. She was going to save us so much $. It took quite a few minutes for her to put into her computer the models and age of our vehicles. Then the usage type and estimate annual miles. She needed a lot of information about us – our ages, employment, etc. Bam! She had wonderfully reduced numbers over our regular guy.
I am celebrating inside. Saving $ is so much fun! I told her to send me what she had created and I’d call her. She really wanted a commitment and to schedule time to meet. She was again totally convinced she could help us lower our home owners insurance costs. Her enthusiasm was contagious.
Her written quote arrived a few days later. I proudly showed Bob the bottom lines on those next to our latest policy for each car. Proud, I was proud.
However, he was smiling proudly too and for different reasons. He pointed out that her quotes were for lower values for bodily injury and had a huge deductible amount under collision, etc.
I had not considered fully that I was not comparing apples to apples. It’s a life lesson worth sharing.
'til later
We went over each vehicle (we have three cars – that’s another story for another day) and the difference pieces of the coverage like bodily injury, collision, comprehensive – both amounts of coverage and deductibles. Then he joyfully pointed out the discounts having all vehicles plus home owners plus liability umbrella. We changed a few things – both up and down. Bottom line (I am a bottom line kind of gal) we saved very little.
A week or so later, I got a solicitation in the mail for a free car insurance quote and called the local agent. She was going to save us so much $. It took quite a few minutes for her to put into her computer the models and age of our vehicles. Then the usage type and estimate annual miles. She needed a lot of information about us – our ages, employment, etc. Bam! She had wonderfully reduced numbers over our regular guy.
I am celebrating inside. Saving $ is so much fun! I told her to send me what she had created and I’d call her. She really wanted a commitment and to schedule time to meet. She was again totally convinced she could help us lower our home owners insurance costs. Her enthusiasm was contagious.
Her written quote arrived a few days later. I proudly showed Bob the bottom lines on those next to our latest policy for each car. Proud, I was proud.
However, he was smiling proudly too and for different reasons. He pointed out that her quotes were for lower values for bodily injury and had a huge deductible amount under collision, etc.
I had not considered fully that I was not comparing apples to apples. It’s a life lesson worth sharing.
'til later
Saturday, November 10, 2007
Computer Systems
Bob's 5 year old computer started to go bad about 3 weeks ago. Rather than risk it crashing we bought a replacement machine at Best Buy. Not sure we got the best buy but we were in urgent need. The Geeks worked for days to get the old hard drive backed up and moved to the new machine.
The one thing that has caused us the most trouble has been the new operating system. Vista. Everyone we knew that had updated to it from XP were thrilled with it. One person had gotten a new computer with Vista and loved it.
Maybe because we are old and our learning curve was steep, maybe because we use antique programs like Lotus (the Geek thought it was Locust), maybe because we don't care for change under pressure, but it's not been a good experience.
I think eventually we'll say it's a good system but now we are still struggling with it and the new Microsoft Office. Should have searched for an old version but we bought the 2007 version.
Bob consults and communicates with a large company in Michigan. If Bob uses their template it works fine but if the company sends him an Excel form to complete, the company claims they can't open or read it. Finally they had to update to Office 2007.
New technology. Good thing most of the time. Never under time pressure. Makes me think it's the cart leading the horses around. As long as things worked with the old, we would not have changed. Maybe I should consider more tech stocks.
The bad news. HP hasn't caught up with Vista. Our beloved laserjet does not work with the new fancy operating system yet. We keep checking the HP website waiting for the patch or fix or drive.
'til later
The one thing that has caused us the most trouble has been the new operating system. Vista. Everyone we knew that had updated to it from XP were thrilled with it. One person had gotten a new computer with Vista and loved it.
Maybe because we are old and our learning curve was steep, maybe because we use antique programs like Lotus (the Geek thought it was Locust), maybe because we don't care for change under pressure, but it's not been a good experience.
I think eventually we'll say it's a good system but now we are still struggling with it and the new Microsoft Office. Should have searched for an old version but we bought the 2007 version.
Bob consults and communicates with a large company in Michigan. If Bob uses their template it works fine but if the company sends him an Excel form to complete, the company claims they can't open or read it. Finally they had to update to Office 2007.
New technology. Good thing most of the time. Never under time pressure. Makes me think it's the cart leading the horses around. As long as things worked with the old, we would not have changed. Maybe I should consider more tech stocks.
The bad news. HP hasn't caught up with Vista. Our beloved laserjet does not work with the new fancy operating system yet. We keep checking the HP website waiting for the patch or fix or drive.
'til later
Friday, November 9, 2007
Credit Cards
I received an email yesterday telling us that our Visa statement was available. Really that means it was time to face it and arrange to pay it. We no longer receive paper copy of this statement. I like paying it direct because it saves a printed check and a stamp.
I keep our Visa charge slips in an envelope by the kitchen phone. One central place so that I take the statement, match the receipts, staple same to back of statement, and return to the computer to set up payment for the exact day it is due.
We do not carry balances on our charge accounts. We use the cards for many things including eating out, fuel, and semi large purchases like on this statement we charged our new snow blower.
This card is tied to United Airlines miles. We want to change to some other reward but have procrastinated for about 2 years now. Maybe this afternoon we'll make that call.
'til later
I keep our Visa charge slips in an envelope by the kitchen phone. One central place so that I take the statement, match the receipts, staple same to back of statement, and return to the computer to set up payment for the exact day it is due.
We do not carry balances on our charge accounts. We use the cards for many things including eating out, fuel, and semi large purchases like on this statement we charged our new snow blower.
This card is tied to United Airlines miles. We want to change to some other reward but have procrastinated for about 2 years now. Maybe this afternoon we'll make that call.
'til later
Thursday, November 8, 2007
Recordkeeping
There is this couple. She works for a nonprofit and he is an independent contractor. He's a consultant specializing in marketing.
They file his income on Schedule C of their tax return. As you can imagine, he has many expenses associated with his income. As astute he is with the computer and the internet, he relies on his wife to track all his business expenses.
He keeps all receipts and paid bills. He carefully places them in a box set aside for the sole purpose of collecting such important small pieces of paper.
When tax time comes around, she struggles through the box, sorting and sorting. She creates a handmade spread of columns of expenses by month. She sorts her receipts by month and then works her magic with the spread columns.
She hates this task and yet it is key to their tax return. They make quarterly tax payments and I assumed she did this task by month to help them calculate the tax payment to make April 15, June 15, September 15 and January 15 each year but that is not the case. They generally take last year's tax liabilities and divide is by 4.
Some years they are ahead and get a refund (or rather a credit toward the next year's quarterly payment) and many years they owe. She doesn't understand that it's a good thing as that means it was a better year than the previous.
But, back to her box of receipts. I have encouraged her to sort once - by expense. For the tax return, they only need a yearly total for that category of expense. If they are office expenses, her goal should be one grand total spent that year for office expenses.
Some horses don't retrain easily. She just struggled through the entire year of 2006 4 weeks ago. Sorting by month, writing on her spread, totally column after column.
I know she will never use a computer for this task. Excel would work or better Quicken but not for her. Recapping by expense sorting April's receipts from May's receipts is a useless step unless there is a reason to look at each month or compare one to another but when the job is put off until the last weekend I say go for the grand total by expense.
I love them both and I know how terrible that weekend was. On top of that, they owed more $.
'til later
They file his income on Schedule C of their tax return. As you can imagine, he has many expenses associated with his income. As astute he is with the computer and the internet, he relies on his wife to track all his business expenses.
He keeps all receipts and paid bills. He carefully places them in a box set aside for the sole purpose of collecting such important small pieces of paper.
When tax time comes around, she struggles through the box, sorting and sorting. She creates a handmade spread of columns of expenses by month. She sorts her receipts by month and then works her magic with the spread columns.
She hates this task and yet it is key to their tax return. They make quarterly tax payments and I assumed she did this task by month to help them calculate the tax payment to make April 15, June 15, September 15 and January 15 each year but that is not the case. They generally take last year's tax liabilities and divide is by 4.
Some years they are ahead and get a refund (or rather a credit toward the next year's quarterly payment) and many years they owe. She doesn't understand that it's a good thing as that means it was a better year than the previous.
But, back to her box of receipts. I have encouraged her to sort once - by expense. For the tax return, they only need a yearly total for that category of expense. If they are office expenses, her goal should be one grand total spent that year for office expenses.
Some horses don't retrain easily. She just struggled through the entire year of 2006 4 weeks ago. Sorting by month, writing on her spread, totally column after column.
I know she will never use a computer for this task. Excel would work or better Quicken but not for her. Recapping by expense sorting April's receipts from May's receipts is a useless step unless there is a reason to look at each month or compare one to another but when the job is put off until the last weekend I say go for the grand total by expense.
I love them both and I know how terrible that weekend was. On top of that, they owed more $.
'til later
Wednesday, November 7, 2007
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Hard Sell
My daughter was in a wedding recently. She and all the gals in the wedding had manicures and pedicures the day before the wedding. Red nails to match the red dresses.
The morning of the wedding they all got their hair done at a local high-end salon and spa. A few of them opted for professional make ups as well.
I know she's very close to the bride but the expenses of being in the wedding party are large. The dress, the shower, shower gifts (3 showers), shoes, alterations of the dress including $30 to hem, nails, hair, wedding gift, travel expenses. These all equal love.
The professional make up artist talked Marny into two kinds of cream. One of rosatia and one to fight wrinkles, those wrinkles that are in the works that will show up in 20 years. She took the bait and the creams.
The day after the wedding, she was feeling guilty about those purchases. Her husband said it was ok and they could afford the splurge. Her guilt drove her to contacting the large chain of high-end spas. They said she could return them within a short time as long as they had not been opened and she had the receipt.
She was so relieved and proud to flash the $175 credit card credit.
The lesson: doubts and regrets can be signals that you have been over sold or cheated. Most states have regret sales periods. If you felt pressured into too much life insurance or too much house, there is usually a grace period that allows you to quickly get out of your commitment. This is usually something the salesperson might overlook telling you.
A quick out of the sale but no quick out for the wedding vows! Those are not to be entered into lightly.
Listen to that small voice in your head questioning a large purchase.
'til later
The morning of the wedding they all got their hair done at a local high-end salon and spa. A few of them opted for professional make ups as well.
I know she's very close to the bride but the expenses of being in the wedding party are large. The dress, the shower, shower gifts (3 showers), shoes, alterations of the dress including $30 to hem, nails, hair, wedding gift, travel expenses. These all equal love.
The professional make up artist talked Marny into two kinds of cream. One of rosatia and one to fight wrinkles, those wrinkles that are in the works that will show up in 20 years. She took the bait and the creams.
The day after the wedding, she was feeling guilty about those purchases. Her husband said it was ok and they could afford the splurge. Her guilt drove her to contacting the large chain of high-end spas. They said she could return them within a short time as long as they had not been opened and she had the receipt.
She was so relieved and proud to flash the $175 credit card credit.
The lesson: doubts and regrets can be signals that you have been over sold or cheated. Most states have regret sales periods. If you felt pressured into too much life insurance or too much house, there is usually a grace period that allows you to quickly get out of your commitment. This is usually something the salesperson might overlook telling you.
A quick out of the sale but no quick out for the wedding vows! Those are not to be entered into lightly.
Listen to that small voice in your head questioning a large purchase.
'til later
Tuesday, November 6, 2007
Rights removed
My sister J. is the executor of Dad's will. She has been trying to get resolve with the assisted living place where Dad spent his last 5 years. We emptied most of his affects and furniture from his apartment within days of his death.
My local sister N. (this is in Indiana) went back the day of the funeral and removed the bags of clothing. Some were donated and many of Dad's shirts went to her father-in-law. That left only the mechanical bed with bedding, toilet seat lift, and shower seat. Sister N. had committed the seats to a charity and the bed was getting a home.
My sister N. had to work the two days following Dad's service and returned to the room (she had the key as we were not relinquishing possession yet) later to find the room was cleared out. The office said the bed had been moved and she was shown where it was.
The mattress had a huge wet spot. She was told there had been a accident with a bucket of mop water. She removed the bed but got no answers regarding the special order bedding and the seats. That began the go-round.
Finally, she turned the situation over to the will executor, sister J. All communication has been with the corporate office and an amount was settled on to cover the losses. Remember, these losses occurred while the room was still rented! Are there no renter rights if you pass away? The renter is still held for 30 day notice! Get that one! That's right, he had to give 30 day notice!
A check was received over the weekend and now more phone calls as the check was just over half the settled upon amount. Do we see small claims court in our future? Just another hold up of settling Dad's estate.
How frustrating.
'til later
My local sister N. (this is in Indiana) went back the day of the funeral and removed the bags of clothing. Some were donated and many of Dad's shirts went to her father-in-law. That left only the mechanical bed with bedding, toilet seat lift, and shower seat. Sister N. had committed the seats to a charity and the bed was getting a home.
My sister N. had to work the two days following Dad's service and returned to the room (she had the key as we were not relinquishing possession yet) later to find the room was cleared out. The office said the bed had been moved and she was shown where it was.
The mattress had a huge wet spot. She was told there had been a accident with a bucket of mop water. She removed the bed but got no answers regarding the special order bedding and the seats. That began the go-round.
Finally, she turned the situation over to the will executor, sister J. All communication has been with the corporate office and an amount was settled on to cover the losses. Remember, these losses occurred while the room was still rented! Are there no renter rights if you pass away? The renter is still held for 30 day notice! Get that one! That's right, he had to give 30 day notice!
A check was received over the weekend and now more phone calls as the check was just over half the settled upon amount. Do we see small claims court in our future? Just another hold up of settling Dad's estate.
How frustrating.
'til later
Monday, November 5, 2007
Weddings
We were out of town to a wedding this weekend. How wonderful and beautiful everyone and everything was. The bride made lovely choices. Her attendants wore red (deep but fire engine red). The flowers tied together several colors including lavender and peach.
The reception was in a local country club near the church. It appeared to be a fairly new club. The reception room was tastefully though boringly decorated in beige and cream. Best to show off whatever the event was without upstaging anything.
The meal was delightful. The tables were set with tall pedestal floral displays. The DJ was ok - too much of a showman at times. Everyone danced. In fact, they were going strong when we left about 10:45pm.
The couple did not have party favors like plastic bells or specialty chocolates but they had made a donation to a literacy charity instead. I applaud that! Why pay for imported goods when the cost can be used to make a difference in lives. The bride is a teacher. The choice of charities was perfect.
I know weddings are big big business but how wonderful an evening. I think weddings are romantic. I am glad we were included.
'til later
The reception was in a local country club near the church. It appeared to be a fairly new club. The reception room was tastefully though boringly decorated in beige and cream. Best to show off whatever the event was without upstaging anything.
The meal was delightful. The tables were set with tall pedestal floral displays. The DJ was ok - too much of a showman at times. Everyone danced. In fact, they were going strong when we left about 10:45pm.
The couple did not have party favors like plastic bells or specialty chocolates but they had made a donation to a literacy charity instead. I applaud that! Why pay for imported goods when the cost can be used to make a difference in lives. The bride is a teacher. The choice of charities was perfect.
I know weddings are big big business but how wonderful an evening. I think weddings are romantic. I am glad we were included.
'til later
Saturday, November 3, 2007
Bank mistake?
I am in the practice of balancing our checking accounts monthly. It is very easy using Quicken and Quick Books for our business checking. I write checks by hand and enter them into the computer regularly. I trust the computer to do the math most of the time.
Our personal account has a statement cut off other than month end. The statement arrived on Wednesday. Since it only takes a few minutes on the computer to check off the deposits and checks against the bank, I worked on it right after receiving the mail.
Oops! A deposit was listed by the bank as different from my entries by $.55. I called the bank and they mailed me a copy of the check that I had deposited about 10 days before. I was confused because I have the deposit slip from the teller which stated the amount I had recorded.
I was surprised the bank had a photocopy of the check I deposited. Sure enough, the bank was right. The teller just didn't catch the mistake when presented with my deposit and endorsed check.
At least the mistake was a small one. It would have been a big problem if the difference had been $ and not cents. I keep the checking account balance fairly low as it is so easy to move $ from the passbook to the checking. The passbook doesn't pay much interest but it is larger than the amount attached to the checking account.
Bottom line: balancing the checkbook should be a regular habit. Watching all $ accounts is important.
Another point: The bank paid to mail me the photocopy. Their costs included the labor, paper, envelope, copier supplies and postage. All just costs of doing business but to prove the $.55 mistake was mine.
'til later
Our personal account has a statement cut off other than month end. The statement arrived on Wednesday. Since it only takes a few minutes on the computer to check off the deposits and checks against the bank, I worked on it right after receiving the mail.
Oops! A deposit was listed by the bank as different from my entries by $.55. I called the bank and they mailed me a copy of the check that I had deposited about 10 days before. I was confused because I have the deposit slip from the teller which stated the amount I had recorded.
I was surprised the bank had a photocopy of the check I deposited. Sure enough, the bank was right. The teller just didn't catch the mistake when presented with my deposit and endorsed check.
At least the mistake was a small one. It would have been a big problem if the difference had been $ and not cents. I keep the checking account balance fairly low as it is so easy to move $ from the passbook to the checking. The passbook doesn't pay much interest but it is larger than the amount attached to the checking account.
Bottom line: balancing the checkbook should be a regular habit. Watching all $ accounts is important.
Another point: The bank paid to mail me the photocopy. Their costs included the labor, paper, envelope, copier supplies and postage. All just costs of doing business but to prove the $.55 mistake was mine.
'til later
Friday, November 2, 2007
Gifts
We are attending a wedding north of Chicago tomorrow. I just love weddings. We're heard some of the details of the celebration at the country club following. It will be great food and fun.
Last night, I was showing Bob the card I found for the couple. We usually give $ gifts for newlyweds. We do not know this couple well enough to select a personal gift and we don't enjoy shopping for the registry items. Maybe we're old fashioned but I don't need to know their color combinations in their bedroom and bathroom.
So, it comes down to how much to give. Bob has always been generous with charities and with some gifting. He can be a Bargain Bob when shopping at the store but more open with the checkbook.
Bob and I have fun negotiating amounts when it comes to gifts and charity giving. One of us will say a number and the other will counter. Then we make our case for our suggestions. From there we gravitate to one of the logics or the other. I started this time with a number but said I was leaning bigger. He said bigger would be better so I moved my number up. He cut the difference between suggestion one and suggestion two. We agreed.
I'll write the check later. I need to find my evening bag. I think the card will fit in there. Otherwise, Bob has to be trusted with carrying it in his jacket pocket.
We found a reasonable motel north of the wedding suburb. From there on Sunday we're headed toward Milwaukee for a job on Monday. A mini vacation with work at the end.
'til later
Last night, I was showing Bob the card I found for the couple. We usually give $ gifts for newlyweds. We do not know this couple well enough to select a personal gift and we don't enjoy shopping for the registry items. Maybe we're old fashioned but I don't need to know their color combinations in their bedroom and bathroom.
So, it comes down to how much to give. Bob has always been generous with charities and with some gifting. He can be a Bargain Bob when shopping at the store but more open with the checkbook.
Bob and I have fun negotiating amounts when it comes to gifts and charity giving. One of us will say a number and the other will counter. Then we make our case for our suggestions. From there we gravitate to one of the logics or the other. I started this time with a number but said I was leaning bigger. He said bigger would be better so I moved my number up. He cut the difference between suggestion one and suggestion two. We agreed.
I'll write the check later. I need to find my evening bag. I think the card will fit in there. Otherwise, Bob has to be trusted with carrying it in his jacket pocket.
We found a reasonable motel north of the wedding suburb. From there on Sunday we're headed toward Milwaukee for a job on Monday. A mini vacation with work at the end.
'til later
Thursday, November 1, 2007
Charities
We received a solicitation from a charity this week. Sometimes I think they share mailing lists with one another. I know if we give and they acquire our phone number, they can bypass the No Call list.
It reminded me that we are in the last 2 months of 2007. A great time to review the different items that will appear on our income tax return. These include earned income, withheld taxes, real estate taxes, mortgage interest, charitable gifts, IRA deductions, HSA (health savings) deductions or income, interest, dividends, and capital gains. Of course, tax returns contain many other variables but those are big ones for us.
So, with the trigger from a favorite charity, I ran a recap of our charitable gifts so far this year. With computers and software (I'm now using Quicken 2007), that number is only a few clicks away.
Bob and I are headed out of town for a while on a job. He does the consulting and I do the typing. It'll be a good time to review a few of the tax elements I pulled from the computer. I'll also copy last year's return (first two pages and Schedule A). It's a good place for us to have the discussion - no television.
Oh. Yes, I did take a few trips to Goodwill. I'll take a look at my lists and rough out a value of those things. From our discussion, we'll have a plan to execute by year end.
Just thought I'd share that this is a good time to review what we can do before the end of the year. Plus we can hold our breath while the government decides on a few little things like the AMT. An animal created a long time ago and expanded under Clinton that has become a trap for the not that wealthy. A trap that produces much $ that the Congress has counted on spending. Another catch 22 they have created and fed.
'til later
It reminded me that we are in the last 2 months of 2007. A great time to review the different items that will appear on our income tax return. These include earned income, withheld taxes, real estate taxes, mortgage interest, charitable gifts, IRA deductions, HSA (health savings) deductions or income, interest, dividends, and capital gains. Of course, tax returns contain many other variables but those are big ones for us.
So, with the trigger from a favorite charity, I ran a recap of our charitable gifts so far this year. With computers and software (I'm now using Quicken 2007), that number is only a few clicks away.
Bob and I are headed out of town for a while on a job. He does the consulting and I do the typing. It'll be a good time to review a few of the tax elements I pulled from the computer. I'll also copy last year's return (first two pages and Schedule A). It's a good place for us to have the discussion - no television.
Oh. Yes, I did take a few trips to Goodwill. I'll take a look at my lists and rough out a value of those things. From our discussion, we'll have a plan to execute by year end.
Just thought I'd share that this is a good time to review what we can do before the end of the year. Plus we can hold our breath while the government decides on a few little things like the AMT. An animal created a long time ago and expanded under Clinton that has become a trap for the not that wealthy. A trap that produces much $ that the Congress has counted on spending. Another catch 22 they have created and fed.
'til later
Wednesday, October 31, 2007
Shopping Ads
Walgreens had some vitamins on sale Buy One, Second Free. That's what we refer to as a two-fer. The best deal was a bottle of 365 pills for $19.95. With the two-fer, that would have been 730 pills for $19.95. A great deal.
The second thing I checked was the code date. The pills were good until February 2008. That wouldn't do. The vitamins were for Bob and he needed a code date out 2 years, at least on one bottle.
So, I checked all the bottle sizes and ended up with 100 tabs plus a tiny bonus bottle of 20 packaged together. So, 240 pills for $7.99, a savings of $7.99. I am glad I checked the code dates.
So, once again, the tip is to shop the ads. The second lesson is check the code dates.
We have been a family of two-fers. Bob loves the sales and watches the grocery ads week. He is the one who does the grocery shopping but we make the list together. When Jewel has a two-fer on canned vegetables, that's when we stock up. He takes advantage of splurge items on two-fer sale.
Last Christmas season, he got two bags of frozen shrimp for the price of one. It was a treat to share at the family gathering plus one for us New Years Eve. Bob is a friendly guy and has built relationships with the meat folks at the back on our Jewel. They had set 2 bags aside for him. It pays to be cooperative and friendly.
My son-in-law has the flu. It has really knocked him down. I think I'll check our stock of chicken soups (mostly two-fers) and take some over. I know he likes ginger ale too.
'til later
The second thing I checked was the code date. The pills were good until February 2008. That wouldn't do. The vitamins were for Bob and he needed a code date out 2 years, at least on one bottle.
So, I checked all the bottle sizes and ended up with 100 tabs plus a tiny bonus bottle of 20 packaged together. So, 240 pills for $7.99, a savings of $7.99. I am glad I checked the code dates.
So, once again, the tip is to shop the ads. The second lesson is check the code dates.
We have been a family of two-fers. Bob loves the sales and watches the grocery ads week. He is the one who does the grocery shopping but we make the list together. When Jewel has a two-fer on canned vegetables, that's when we stock up. He takes advantage of splurge items on two-fer sale.
Last Christmas season, he got two bags of frozen shrimp for the price of one. It was a treat to share at the family gathering plus one for us New Years Eve. Bob is a friendly guy and has built relationships with the meat folks at the back on our Jewel. They had set 2 bags aside for him. It pays to be cooperative and friendly.
My son-in-law has the flu. It has really knocked him down. I think I'll check our stock of chicken soups (mostly two-fers) and take some over. I know he likes ginger ale too.
'til later
Tuesday, October 30, 2007
White Sales
My memory is that white sales (linens) are usually in January or maybe February. But yesterday I took advantage of a white sale at Kmart. It can pay to watch the ads and use coupons.
We have one Kmart in our town. I know over the past 10 years most communities have lost their Kmarts. Martha Stewart is now placing her linens in Macys - per tv ads - but she has quite a selection at Kmart as well.
An aside: Bob and I fulfilled a dream we have had since we were married in 1975. We hoped and planned to retired on water somewhere so we could fish and enjoy the calming affects of water.
In July we bought our lake home in Indiana. We purchased it furnished and we have been making it our own. One place I have improved the inventory for guests is the linens. There was one nice queen set of sheets and I wanted another one on the shelf.
If you have priced sheets and linens lately, you know a set of sheets can cost $50 and up. I realize there are many levels of comfort and thread count. I also know that for the lake I did not need high counts. I needed utilitarian sheets that could be easily washed, dried, and folded.
I found a Martha's 250 count set at Kmart yesterday for less than $30. I am thrilled. I also found a cotton blanket for less than $25. Bob will not fully understand the expenditure at this time (we are replacing the lake home furnace) but I wanted to take advantage of the sale.
I asked myself: Is this a need or a want? It failed the true need question but it passed the question: Can I anticipate a better sale for the quality?
One of the advantages of our savings philosophy is that we have savings enough to cover the furnace and the white sales. Wisdom is in the choices we make purchasing our needs and our wants.
'til later
We have one Kmart in our town. I know over the past 10 years most communities have lost their Kmarts. Martha Stewart is now placing her linens in Macys - per tv ads - but she has quite a selection at Kmart as well.
An aside: Bob and I fulfilled a dream we have had since we were married in 1975. We hoped and planned to retired on water somewhere so we could fish and enjoy the calming affects of water.
In July we bought our lake home in Indiana. We purchased it furnished and we have been making it our own. One place I have improved the inventory for guests is the linens. There was one nice queen set of sheets and I wanted another one on the shelf.
If you have priced sheets and linens lately, you know a set of sheets can cost $50 and up. I realize there are many levels of comfort and thread count. I also know that for the lake I did not need high counts. I needed utilitarian sheets that could be easily washed, dried, and folded.
I found a Martha's 250 count set at Kmart yesterday for less than $30. I am thrilled. I also found a cotton blanket for less than $25. Bob will not fully understand the expenditure at this time (we are replacing the lake home furnace) but I wanted to take advantage of the sale.
I asked myself: Is this a need or a want? It failed the true need question but it passed the question: Can I anticipate a better sale for the quality?
One of the advantages of our savings philosophy is that we have savings enough to cover the furnace and the white sales. Wisdom is in the choices we make purchasing our needs and our wants.
'til later
Monday, October 29, 2007
Budgeting - YUK!
Yesterday I told you we do our budgeting based on 80% of our earned income. Bob is on a pension and is working his consulting business almost as if it were a full time job. He's out on a day job right now. When he gets home later, we'll type of the report. That will take us about 2.5 hours. He wants his findings or recommendations to be published while they are fresh to him and to his client.
That's our picture. We know the amount of his monthly pension and we know what we need to earn to cover the short fall. But first we had to get our budgeting process done.
So do you if you want control over where your $ goes. Most of the people I have talked with are reactionary spenders. They simply respond to every bill that comes in the mail (or email these days). They simply respond to every ad or product placement that convinces them they need something.
The first constructive thing someone who wants control or who is in big trouble financially needs to do is create a budget. To record numbers for items like groceries, rent/mortgage, utility bills, dry cleaning, vehicle maintenance, insurance bills, magazine subscriptions, debt reduction, etc.
Budgeting can be a painful experience but it can be rewarding. Start with a draft of categories of disbursements out of your checking account like rent, cable bill, daycare, etc. You will need room to add categories.
Now, record everything you spend $ on over one month. Either a look back to a previous month (you'll need details off your Visa or MasterCard statement for groceries, fuel, clothing, entertainment, medical) or track a month going forward.
This will be an eye opener but the next step will too. You probably use cash for many things during the month. Carry a small notebook and list every payout. Cash for soda pop, tollway coins, bread on the way home, kid next door for walking the dog, etc. Consolidate items under larger headings like home maintenance for the lawn care, groceries for the out of pocket foot items, travel or commute for the tollway charges.
The biggest work of budgeting is getting a handle on where your $ goes/can go. Even look back to your auto insurance bill. If you pay twice a year, divide that by 6 to get a monthly cost. If you pay the real estate tax bill twice a year, again, divide by 6 to get the monthly number.
Take your time. I challenge you to be as thorough as possible. After a month of tracking categories and costs, recap everything. Don't forget debt reduction - payments toward the credit card balance. You will have charged things on the card and you'll need those numbers per category but one monthly payout now is also debt reduction so count it in a separate category.
I'll get back to budgeting with you in the future. You'll need to time accumulate things.
'til later
That's our picture. We know the amount of his monthly pension and we know what we need to earn to cover the short fall. But first we had to get our budgeting process done.
So do you if you want control over where your $ goes. Most of the people I have talked with are reactionary spenders. They simply respond to every bill that comes in the mail (or email these days). They simply respond to every ad or product placement that convinces them they need something.
The first constructive thing someone who wants control or who is in big trouble financially needs to do is create a budget. To record numbers for items like groceries, rent/mortgage, utility bills, dry cleaning, vehicle maintenance, insurance bills, magazine subscriptions, debt reduction, etc.
Budgeting can be a painful experience but it can be rewarding. Start with a draft of categories of disbursements out of your checking account like rent, cable bill, daycare, etc. You will need room to add categories.
Now, record everything you spend $ on over one month. Either a look back to a previous month (you'll need details off your Visa or MasterCard statement for groceries, fuel, clothing, entertainment, medical) or track a month going forward.
This will be an eye opener but the next step will too. You probably use cash for many things during the month. Carry a small notebook and list every payout. Cash for soda pop, tollway coins, bread on the way home, kid next door for walking the dog, etc. Consolidate items under larger headings like home maintenance for the lawn care, groceries for the out of pocket foot items, travel or commute for the tollway charges.
The biggest work of budgeting is getting a handle on where your $ goes/can go. Even look back to your auto insurance bill. If you pay twice a year, divide that by 6 to get a monthly cost. If you pay the real estate tax bill twice a year, again, divide by 6 to get the monthly number.
Take your time. I challenge you to be as thorough as possible. After a month of tracking categories and costs, recap everything. Don't forget debt reduction - payments toward the credit card balance. You will have charged things on the card and you'll need those numbers per category but one monthly payout now is also debt reduction so count it in a separate category.
I'll get back to budgeting with you in the future. You'll need to time accumulate things.
'til later
Sunday, October 28, 2007
Sunday best
I plan to take Sundays off from my blog but that will not be written in stone. Bob and I are often traveling for his work and if the motels we stay in do not have wireless connections, I will not be able to send that day's blog to you.
Today is Sunday. We're dressed and I'm eating my breakfast bar. Coffee is brewing and we'll take a mug with us to church.
I am a Christian and we generally do not forsake gathering in community worship on Sundays. God lives with me in my daily life but we are called to community weekly.
You might be asking if the bargain side of her gives to her church. Does she give by a strict tithe or ten percent dictate. My answer would be yes and no. The ten percent figure is mostly found in the Old Testament when God dealt with his creation under the Law. Christ came to fulfill that law and allow us to worship in spirit and truth.
I have the freedom to give beyond the tithe to express what scriptures call offerings. Tithes and offerings are stated in the same phrase so they are different creatures. Tithe is expected and offering is a flow of loving response to God's presence in our lives.
This sounds like a sermon. It's what I have learned over my many years. True wealth and true power come when we have the freedom to give and give. After our tithe, which is roughly based on take home wages, we give offerings. That's our philosophy. We do not dictate that to others.
So our beginning budget always starts with 10% outgoing to church or other causes, 10% to ourselves in the form of saving. We live our budget based on 80%. These are, of course, of the leftover money after taxes are satisfied. We consider any tax refund as earned wages and subject to these divisions as well. In other words, not a free gift to splurge with or to pay down debt.
The coffee is ready and so am I. It looks like it frosted last night on the grass and windshields. The Bears play at noon.
'til later
Today is Sunday. We're dressed and I'm eating my breakfast bar. Coffee is brewing and we'll take a mug with us to church.
I am a Christian and we generally do not forsake gathering in community worship on Sundays. God lives with me in my daily life but we are called to community weekly.
You might be asking if the bargain side of her gives to her church. Does she give by a strict tithe or ten percent dictate. My answer would be yes and no. The ten percent figure is mostly found in the Old Testament when God dealt with his creation under the Law. Christ came to fulfill that law and allow us to worship in spirit and truth.
I have the freedom to give beyond the tithe to express what scriptures call offerings. Tithes and offerings are stated in the same phrase so they are different creatures. Tithe is expected and offering is a flow of loving response to God's presence in our lives.
This sounds like a sermon. It's what I have learned over my many years. True wealth and true power come when we have the freedom to give and give. After our tithe, which is roughly based on take home wages, we give offerings. That's our philosophy. We do not dictate that to others.
So our beginning budget always starts with 10% outgoing to church or other causes, 10% to ourselves in the form of saving. We live our budget based on 80%. These are, of course, of the leftover money after taxes are satisfied. We consider any tax refund as earned wages and subject to these divisions as well. In other words, not a free gift to splurge with or to pay down debt.
The coffee is ready and so am I. It looks like it frosted last night on the grass and windshields. The Bears play at noon.
'til later
Saturday, October 27, 2007
Costs of dying
My father passed away suddenly three weeks ago. I have 4 siblings and one is an accountant. The support has been great and The Blonde has just updated us on the correspondences she's already done in regards to Dad's accounts.
The days following October 6 are a blurr. The funeral home was very nice and the gentlemen were friendly and professional. They were helpful with questions about so many things including handling the many floral arrangements and plants that were delivered. They were understanding about our requests regarding Dad's jewelry, etc.
Dad had revisited their place a year or so after Mom's passing in 1998. He had chosen his coffin and vault. The home had records of the burial plots. He had been given a quote of about $9,000.
The other girls (I live 200 miles away) had met with the funeral home the afternoon of Dad's passing. They agreed on the choices Dad had made and made some small ones together. The three of them were a little surprised when the cost was actually $13,000 but then several years had passed.
They needed a deposit. The Blonde signs on Dad's trust checking account and paid $2,000 up front. She listed herself as the responsible party as she is also the Executor of the estate.
Dad's service and burial were on Wednesday. By Thursday The Blonde had fielded several calls from the funeral home administration staff. They had uncovered the fact that she's unemployed. No, her status had not changed since that Saturday but they needed the name and number of another family member who would be responsible for the $11,000 balance. The Blonde, a stay at home mother, gave them The Brother's name and number.
When RD was reached the next Monday, he read them the riot act. He asked about standard operating procedures. What is the only person left behind was a grieving 80-year old widow? Would they have demanded another responsible employed person to contact?
It still stands that the funeral home is waiting for their money. Dad's life insurance policy proceeds will arrive in the checking account just in the nick of time to be forwarded to those dealers of coffins, liners, and fancy stationary notes with Thomas Kinkade paintings.
The lesson: name an executor of your estate who has a good paying job not just one who has an education in accounting. If you find one, I could use some suggestions myself. I have The Blonde listed in my will as executor. She, in turn, has me as guardians of her children. Let the angel of death wait until we can both find better suitor!
Meanwhile, I'm thinking prepaying of the costs might be a saver. Dad would have saved about $4,000 over 8 or 9 years. That's about 5% savings per year or above what most CDs and passbooks would have come close to since 1999 or so. Which also says the funeral costs have risen about that same percent. Is that industry regulated?
'til later
The days following October 6 are a blurr. The funeral home was very nice and the gentlemen were friendly and professional. They were helpful with questions about so many things including handling the many floral arrangements and plants that were delivered. They were understanding about our requests regarding Dad's jewelry, etc.
Dad had revisited their place a year or so after Mom's passing in 1998. He had chosen his coffin and vault. The home had records of the burial plots. He had been given a quote of about $9,000.
The other girls (I live 200 miles away) had met with the funeral home the afternoon of Dad's passing. They agreed on the choices Dad had made and made some small ones together. The three of them were a little surprised when the cost was actually $13,000 but then several years had passed.
They needed a deposit. The Blonde signs on Dad's trust checking account and paid $2,000 up front. She listed herself as the responsible party as she is also the Executor of the estate.
Dad's service and burial were on Wednesday. By Thursday The Blonde had fielded several calls from the funeral home administration staff. They had uncovered the fact that she's unemployed. No, her status had not changed since that Saturday but they needed the name and number of another family member who would be responsible for the $11,000 balance. The Blonde, a stay at home mother, gave them The Brother's name and number.
When RD was reached the next Monday, he read them the riot act. He asked about standard operating procedures. What is the only person left behind was a grieving 80-year old widow? Would they have demanded another responsible employed person to contact?
It still stands that the funeral home is waiting for their money. Dad's life insurance policy proceeds will arrive in the checking account just in the nick of time to be forwarded to those dealers of coffins, liners, and fancy stationary notes with Thomas Kinkade paintings.
The lesson: name an executor of your estate who has a good paying job not just one who has an education in accounting. If you find one, I could use some suggestions myself. I have The Blonde listed in my will as executor. She, in turn, has me as guardians of her children. Let the angel of death wait until we can both find better suitor!
Meanwhile, I'm thinking prepaying of the costs might be a saver. Dad would have saved about $4,000 over 8 or 9 years. That's about 5% savings per year or above what most CDs and passbooks would have come close to since 1999 or so. Which also says the funeral costs have risen about that same percent. Is that industry regulated?
'til later
Friday, October 26, 2007
Is it a real Bargain?
I enjoy exploring discount lot-end stores such as Big Lots and General Dollar when we are on the road. This week I had a list of needs (I will explain needs v wants later). I passed on dishwasher soap not because of the price but because it was a brand just too generic for me. I picked up hair ties, room freshener refills, and light bulbs. My husband (D. Bob or Bob for short) asked what I gave for the bulbs. I said a 4-pack for $1.50. He claims he can find them at Jewel-Osco on sale for less than that. I had no idea they ran those kind of discounts.
So, is a bargain really a bargain just because I find it at Big Lots. Not always. What is the difference. Education and experience. If I had known to wait for the Jewel sale, I could have save on that purchase. My thing is education and experience. I have much to share and look forward to the opportunity.
I am just beginning this sharing format but I have shared my 50+ years of experience with family and friends over the years. Our daughter (and was she listening) lived through her own money experiences early on including having to repay an advance on her allowance with interest. We set up a payment plan, hung it near the phone in the kitchen, and attributed part of her payment to principal and part to interest. There are few trully free rides in this world.
Later on in life she learned another financial truth when she got her first credit card just before her senior year in high school. We arranged for a credit card with a small limit tied to her credit union account. Just a little rope - not enough to hang her.
She used it for a friend to buy a blouse that was on sale. Ally said she'd pay her back from her babysitting incoming the following week. One week became 2, 2 became 3, and soon a month had passed. Ally had all kinds of excuses. The friendship dwindled - probably for several reasons but at the root was this over hanging debt. The $12 lesson was one Marny hasn't forgotten.
Lending money is a two way street and it can certainly get between friends. We'll discuss what it can do to a family in the future.
Hope you enjoy this ride. I have much to say. Stay tuned for a mix of my daily/weekly money experiences and my life-long earned wisdom.
Until then,
So, is a bargain really a bargain just because I find it at Big Lots. Not always. What is the difference. Education and experience. If I had known to wait for the Jewel sale, I could have save on that purchase. My thing is education and experience. I have much to share and look forward to the opportunity.
I am just beginning this sharing format but I have shared my 50+ years of experience with family and friends over the years. Our daughter (and was she listening) lived through her own money experiences early on including having to repay an advance on her allowance with interest. We set up a payment plan, hung it near the phone in the kitchen, and attributed part of her payment to principal and part to interest. There are few trully free rides in this world.
Later on in life she learned another financial truth when she got her first credit card just before her senior year in high school. We arranged for a credit card with a small limit tied to her credit union account. Just a little rope - not enough to hang her.
She used it for a friend to buy a blouse that was on sale. Ally said she'd pay her back from her babysitting incoming the following week. One week became 2, 2 became 3, and soon a month had passed. Ally had all kinds of excuses. The friendship dwindled - probably for several reasons but at the root was this over hanging debt. The $12 lesson was one Marny hasn't forgotten.
Lending money is a two way street and it can certainly get between friends. We'll discuss what it can do to a family in the future.
Hope you enjoy this ride. I have much to say. Stay tuned for a mix of my daily/weekly money experiences and my life-long earned wisdom.
Until then,
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