Tuesday, January 31, 2006

Festival of Frugality #8

Photo by Scot McCannFrugal Underground is hosting the ever-expanding Festival of Frugality #8 this week and it's looking fab. Yet again, another collection of money saving tips to help you squeeze more value out of your dollars.

This week I was drawn to the posts regarding food since reducing our food expenses is a current focus of mine. Tracy of Healthy, Wealthy and Wise has listed a typical week's worth of meals as an explanation of how she and Brent only spend $25 on groceries a week. Since LaLa and I spend about four times that - on the *new* food budget - I feel I have a lot to learn from Tracy's example. That difference in food spending can't all be attributed to price disparity between Wisconsin and Massachussetts. Granted, I am spending $25 a week on having organic produce delivered to my door right now, but it's an experiment in training myself to eat more fruits and vegetables so I'm counting that as an investment in health (yes, I know that it sounds like I am rationalizing what is probably a very un-frugal choice, but overall I get a lot of value out of it so for now...it stays) Clearly I have more work to do if I'm going to drop our food spending even more.

Also in the Festival, A Frugal Focus wrote a neat little analysis of the long term savings impact of taking your own lunch every day. These days I am either working from home or on the road eating on expense account and I shudder to think of the impact that eating lunch out would have on our current budget. That post took me back to my first experience brown-bagging it (well, other than school). My girlfriend at the time would make me a marmalade and peanut butter sandwich and pack it with a clementine (thank god for you J!) and I was always surprised that it felt like I had more money those months (oh...I spent it though...doh!). Some lessons you have to learn more than once I guess....because I ate out frequently during my last job. Oh the waste....maybe if I had read the above post...things might have been different?

Monday, January 30, 2006

Carnival of Personal Finance #33

Photo by JwSGeorge at FatPitchFinancials has done and impressive job this week hosting the 33rd Carnival of Personal Finance. I'm still working my way through it, but so far I'm enjoying the diversity of topics.

SearchLightCrusade has some useful information on bridge loans (very short term loans, often used between selling and buying a house) that I found enlightening. We've been noodling on both relocating and downsizing and I found the examples quite useful. Another idea that we've been vaguely considering is selling....then renting again for a short while. Wealth Junkie has some thoughts and figures on that option.

Of course there are many more articles to peruse and learn from...go check it out!

Oh, We're Halfway There

My apologies if the post title leaves you with a Bon Jovi song stuck in your head (ok, I'm not completely sorry :: snicker ::)

LaLa finally received several outstanding payments and was able to make her first official contribution to the emergency fund. She deposited the money in our checking account today and since tomorrow is payday for me I used our combined superpowers for good (and not evil!) and set up a transfer of $1367 (LaLa's $900 + $400 each payday + $67 to bring it up to easy percentage math) to move the money into HSBCDirect.

I'm seriously hoping their (temporary?) rate hike benefits all the money I have there as that would be a sweet deal for us while we're building the $10k.

So even though the transfer goes through tomorrow, I hope you'll indulge me, dear internet, in updating the Save-o-Meter to 52% tonight.


Sunday, January 29, 2006

IKEA Reconnaissance

I've been waiting for an IKEA to come to Boston for years so I've been itching to get to the new one in Stoughton, MA since it opened in November. LaLa and I have grand plans to turn our small back bedroom into a useful space (storage, maybe guest-friendly) and we think IKEA is just the place to help us with that. We don't quite have the money saved aside yet but we thought we could use a trip there to get aquainted with things in person, get some ideas and hell yeah...eat some Swedish meatballs. Yesterday afternoon, we decided, was the day.

Apparently, so did 43 bajillion other Bostonians.

What should have been a 20 minute drive turned into various circles of hell once we got off the exit and had to start creeping toward IKEA (and Jordan's...and Home Depot...and the Christmas Tree shop - what genius planner came up with that idea?). It's not all over once you reach the parking lot...where parking anarchy ensues. I think we were lucky since we only spent about 10 minutes driving around looking for a spot.

I had naively theorized that no IKEA experience could be as crowded and anxiety producing as the time we went to the one in Newark the day after Christmas (I *told* you I was *desperate*!) and. Well. I was totally wrong. And me without a prescription for Paxil.

The upshot is that I survived (without pharmacuticals) and I still love that store. I went in looking for information, a desk lamp, a catalog and meatballs. I got a really cute and functional light for $8 ($5 lamp, $3 for 2 bulbs) and splurged on a $2 ice cube tray (no, it wasn't Gucci). We ended up with tons of ideas for our home that won't break the bank. We spent $13.06 on our "dinner out": gravlax on a bed of mixed greens, a medium swedish meatballs with fries (wooohooo!) and two drinks. Of course...we forgot the catalog. Oops.

What I am most excited about is the promise of good design for affordable prices. Once we get the catalog, we can make our plan (what to buy, how to prioritize, and how much cash we'll need). Our next step is to make sure we save that money before heading back there. A year ago it would have ALL gone on a credit card...and stayed there.

However, next time I think we'll go on a weekday.

IKEA in the Personal Finance Blogosphere:
I think Jane Dough went on a better day than I did
Uncle Bill has a little info on what $1700 will buy you at IKEA




Wednesday, January 25, 2006

Falling Down on the eBay Job

Two Sundays have passed and I haven’t put up anything for sale. Since I like to run 7 day auctions and end on either Saturday or Sunday evening this means I won’t have any more eBay earnings for January.

I had considered putting up auctions yesterday and doing 5 day auctions, but for some reason I sort of spaced. I’m not sure where my motivation went after getting off to such a good start in January. Maybe my goal is to low? I met my $200/month goal after only 2 weeks of auctions – but that was my annual goal roughly averaged. I may not have a lot of time to devote to this shortly so I need to use my time now to exceed the average goal so I can make (and exceed!) the annual goal.

I think I need to get a lot more comfortable paying 10c to schedule an auction so that filling weekends with eBay tasks is not my only option and I can spread it out.

At least posting about it has inspired me to get back to it…

Tuesday, January 24, 2006

Credit Protector Changes?

I love when My Money Blog gets all university on us and spells out what we need to do to put more money in our pockets. Whether it's arbitrage with credit cards or playing chicken with the cable company, his step-by-step instructions are indispensable to a detail oriented control freak like me.

So ever since reading his post on using Credit Protector trial checks for generating free money I have been on the lookout for one of these offers to arrive on my doorstep. Yesterday I thought it had finally happened...and for FORTY dollars. The offer was through our main card, the Citibank Platinum Dividend card so my first thought was that I would have to make sure I cancelled within the trial period or I WOULD end up owing some money.

I went to look closer at this thing today. It's not a check, like they used to do. It's a rebate. Doh. You enroll, then they send you a $40 rebate certificate (I wonder if that takes more than 30 days to arrive?). You return the certificate along with receipts and they send you up to $40 as a rebate on those purchases. After 30 days you will be charged $0.85 per $100 of the new balance.

So it looks as if they are changing the way they incent people to try the service yet still appear to be dangling cash. It's no longer as easy as depositing the check and remembering to cancel before 30 days are up. Counting on people to forget to cancel in time apparently wasn't enough, now they are counting on people to blow the rebate so they don't even have to give out the cash. And clearly you need to use the card to get the rebate, so safely enrolling on a card that you don't use no longer works either.

I am torn about whether to do it. We are pretty good about following through on rebates and I do believe we could easily remember to cancel within 30 days. But I fear there is some sort of "catch" that I might be missing. I guess worst case scenario if I follow the guidelines is that I get nothing, and best case I get $40 worth of everyday purchases paid for.



Other bloggers on Credit Protector:
SavvySaver has also made some money using the trial checks
Nickel couldn't say no to another chunk of free change
MyMoneyBlogU on getting the money without getting screwed




Carnivals!

Photo by JwSBe Capitalism is hosting this week's Carnival of Personal Finance. As usual, it's a plump carnival with lots of covered topics. I'm looking forward to getting numbers to plug into IronMan's taxable vs. tax-free investment decision calculator. But I wonder how state income tax rates affect the outcome?

Festival of Frugality #7 is up at the Canadian Capitalist and offers many interesting posts, including my two favorites: Early Riser warns us not to focus on cash flow at the expense of networth...a great reminder to view our whole financial picture when making decisions. And Adam writes that since we can't have everything, a Frugal Mind begins with making informed choices.

Monday, January 23, 2006

Tax Filing Options: A Mini-Roundup

For several years I have been a faithful Taxcut user. Last year, after purchasing an iMac I was pleased to see that they offered a version that ran on Mac OSX and happily plunked down my $96.80 ($40.94 of which I received back in rebates) for what was becoming an annual ritual of spending $55+ on filing my taxes (yes, I know it's tax deductible).

Imagine my surprise when I realized TaxCut didn't even release a Mac OSX version this year. I suppose from a business standpoint it did make sense because the online version is operating system independent, but then why bother to brew a whole Windows version only to give it away for free anyway? But I digress.

My point is that I had to shop around for a new, Mac OSX compatible, option for calculating and e-filing my taxes. And with all this "free" software floating around I was determined to do it for far less than $55 this year.

The first thing I noticed is that if you have an Adjusted Gross Income (AGI) of less than $50,000 there are MANY options that are completely free. If you don't know what your AGI is, you can probably create an account at one of the services and use them to calculate your AGI (ex. I started my taxes at Turbotax.com - input my W-2 and 1099's but have not been charged because I have not printed or e-filed my return). Once you know your AGI, you can use the IRS e-file wizard to guide you toward free filing options for your circumstances (AGI and State). If you do not qualify based on AGI, read on...

I thought the big names were being quite affordable until I started calculating the cost to e-file a state return in addition to my federal, even though several offered a "combo" deal on e-filing both. I have not catalogued every pricing option but I have focused on an AGI greater than $50,000 who needs to submit a 1040 (I'm a homeowner claiming itemized deductions) along with a Massachusetts state return while using Mac OSX to calculate and e-file both returns. All Windows-only options have been discarded (TaxCut and TaxAct downloadable software basically).

Your mileage may vary, due to your needs, I just urge everyone to shop around before plunking down any money. Here's what I found:


ProductFed OnlyState OnlyBoth
Taxcut Online Premium$19.95N/A$44.90
TurboTax Online Essentials/1040EZ1$9.95N/A$34.90
TaxEngine$19.95$19.95$29.95
TaxAct Online StandardFREE$20.90$12.952
TaxSlayer Web$9.95$9.95$9.95
eSmartTax Standard
(before 2/15)
FREE$9.95$9.95
Notes:
  1. When I started gathering this information, TurboTax was calling this product "Essentials" and they have since changed the name to "1040EZ" -- this implies that only the 1040EZ form is available with this option, but I can find no indication that the 1040EZ cannot be used to submit a 1040. This seems like a marketing attempt to steer 1040 submitters at the next tier up which is $10 additional for the federal return. If anyone can clarify this please leave a comment...thanks!
  2. This pricing was pretty unclear. They have an "ultimate bundle" for $15.95 that definitely includes both federal and state and both e-filings and apparently a whole other host of things you probably don't need.

Obviously there are more products out there, since this is a mini-roundup it's just what I deemed interesting. Feel free to comment below and point us all at competitive offers.

So far, I have only started to try TurboTax Online. Since you only pay when you file or print, I have entered the information I have so far to estimate my taxes. Once I have all my information (should be by 1/31...right?) I intend to actually file with eSmartTax before 2/15 and take advantage of their early bird special. I'm expecting a bit of a federal refund, so I want to file as soon as possible using direct deposit so we can all see that purple bar inch to the right!


Resources:

Sunday, January 22, 2006

High Yield Savings' Terms & Disclosures

Jonathan has gathered links and the interest accruing nuggets out of the terms and disclosures for the big four high yield savings accounts (HSBCDirect, EmigrantDirect, ING Direct, VirtualBank). It's a great reference if you are curious about things like how long your money isn't accruing YOU any interest.

Friday, January 20, 2006

Emigrant's Crappy Cash Back Card

Gee, just as I was getting all excited about the new Emigrant Direct Cash Back Mastercard I notice that "America's Highest Cash Back" rate of 1.25% is asterisked. Huh. Check it (emphasis mine):
"This rewards program is the highest U.S. credit card cash back only rebate program because it offers a 1.25% cash back rebate on all net retail purchases. As of January 19, 2006, other issuers may offer higher percentage rebates but require minimum spending thresholds before higher rebates are applicable and/or limit the higher percentages rebates to certain types of purchases. The 1.25% cash back is contingent upon maintaining a $10,000 average daily balance in the American Dream Savings Account for the preceding six months. Other restrictions apply. See Terms and Conditions for more information."
And if you maintain less than $10,000 the rate is America's Lowest Cash Back of 0.50% AND from the fine print it seems they only "review" your account every six months. Oh...and they only make two reward deposits a year, yaddy yaddy yaddy. Even when I do get to $10k in savings, I doubt I will keep ALL of it at one of these online savings banks.

The APR for purchases for folks with the best credit is prime plus 5.99% (currently 13.24%) which seems high to me. If you don't carry a balance, it won't matter...but if you do carry a balance do yourself a favor and find a lower rate and forget about the rewards.

I think this is a crappy deal that will truly benefit very few people. If you have had, or soon intend to have more than $10,000 in cash at a place like Emigrant long-term and are already maxing out the limits on your other credit cards that give you 5% on some purchases then have at it.

Personally, they'd have to pay me to sign up for this card. $100 seems fair.

Thursday, January 19, 2006

Free Stuff Blog

While poking around I found this blog with links to free stuff. She's also got a feed, natch.


Tags:

ING 4.75% Promo Rate - Worth it?

By now, I think everyone has posted on the ING temporary promotional rate on new deposits. Thanks to pfadvice (which is where I saw it first I believe) I calculated that with my ~$4k to move and 25% tax bracket, I'd maybe net $4 from moving my emergency fund from HSBC to ING for the duration of the promotion...a little over a dollar a month for my situation. Bleh.

HSBC not only supports QFX format (Quicken 2005+) but it allows the DirectConnect method of downloading transactions. This means that I can download all my transactions with a couple of clicks (mostly to get through password boxes) instead of the WebConnect method required by ING and Emigrant. With the WebConnect method, I have to go to the bank's website, manually log in, fight through their navigation to get to some sort of "download transactions" option, click that to start the download of the QFX file, then choose "open" to let Quicken do it's thing. UGH.

This feature alone is certainly worth more to me than $1/month in more interest and is one of the two reasons HSBC Direct is becoming my favored "cash stash" (the other being the unlimited bank to bank transfer options...oh. except for ING)

However, the ING promotion is great for folks opening up new accounts with at least $250, that way you get the $25 bonus AND you get the nice 4.75% rate on everything until the promo ends. That's a sweet deal. I thank Travelgnome for letting me refer him.

If you'd like a referral (I'd get $10 if you fund the account with at least $250, you get $25) please email me at clutter2cashblog AT gmail dotcom.


Tuesday, January 17, 2006

Save-O-Meter News

I set up my transfers for my full January contribution to the emergency fund to go in tomorrow. Normally I will do $400 with each paycheck (this is the net difference after postponing my 401k) but cashflow data was unavailable (it's a Quicken tale of woe for another time) and I had to be sure I had it. I transferred $800 in and I decided to no longer count my $100 I-Bond towards the Save-O-Meter. I also consolidated all of this money in HSBC - finally. So with these adjustments and additions the meter is now at 38%. I can smell the 10k from here!

LaLa is due to make some significant deposits in that fund soon and that will be quite exciting to see the bar progress more rapidly than over the last year.

Festival of Frugality #6

Welcome to the Festival of Frugality #6! This week we have (lucky) 13 bloggers presenting all sorts of techniques for finding more value from that dollar. This includes 4 posts about things that are absolutely FREE.

Thanks to everyone for submitting and helping to nurture this "carnival". Next week the festival is hosted by Canadian Capitalist. If you have a submission, you can find instructions at the Festival of Frugality page.

Friday, January 13, 2006

2005 Roth: End in Sight!

I had planned to contribute $500 a month toward my remaining $1500 Roth contribution so that I could complete my 2005 Roth before April 15th. I planned to start my 2006 Roth in April using even monthly contributions and complete that by EOY.

Well, I really like round easy numbers so I decided that with my recent ebay winnings and craigslist sale, I could easily make a $750 contribution this month and theoretically next month. That would mean that starting in March I can make 10 equal monthly payments of $400 toward my 2006 Roth. I may contribute more aggressively, but this is my "minimum" plan.

So I just transferred the $750 which brings my 2005 Roth contribution to $3250 and I've updated the Save-o-Meter to reflect that I am 81% there. I love that purple bar, so I'll definitely recycle it for the 2006 Roth when the time comes in March.

Setting Some Ebay Goals

LaLa and I talked a lot over the holidays about how we wanted to finish "clearing the clutter" this year. She went to town on her childhood bedroom while we were visiting her family (and boy, was THAT ever revealing) and I resolved to use ebay to both assist our clearing and increase our income at the same time.

We usually donate a fair amount of goods to charities throughout the year, and this year will be no different. But I wanted to put some effort into ebay as a way of generating cash up front this year. And yes, I know it takes time ;)

I made a goal to bring in $2500 in 2006 (ebay, craigslist, Amazon marketplace etc) which is basically a bit over $200 a month. I figure to do this, I'll need to list 10 items a week on ebay minimum.

The first week of the year I earned over $100 on 6 items. This past week, I took up Jane Dough's ebay challenge to help keep me motivated. My 10 ebay items are almost all clothing and I think I will try to auction like items concurrently (and see if ebay cross promotion really does it's job).

We already sold an old enamel-topped dinette set for $100 on craigslist. We were originally heartbroken to only get that much for it (we paid $400 8 years ago, it seats six, it was expandable and generally *awesome*) but we cheered up when we met the new owners. They are a nice couple who live in the more rural suburbs to the west of Boston and run a small farm of sorts. Ken's going to make a large kitchen island out of the table, to match the vintage stove they just bought and promised to send pictures when it's done. I am only waxing on because how else can I tell you that he offered to give me chickens should I want some in the future. How awesome is THAT? But I digress a little. Ahem. We have one more item planned for craigslist for the month.

I still have a few trade paperback comics left on Amazon, and I know my bookshelves need another pass. I plan on ebaying paperback books in groups, and higher value books I will do Amazon marketplace (they really like to take a bite out of your earnings).

The upshot is that I have met my monthly goal in one week. Things have slowed down this week so far, but we'll see how those auctions close out on Sunday. I wondered if I set my goal to low, but I have had a lot more time than usual to devote to ebay the past couple of weeks. If I am still cranking in February, I'll re-visit the $200/month goal.

Wednesday, January 11, 2006

Domestic Goddess

Holy crap. I just made my own bread crumbs. For the record, I seasoned them with Penzey's Brady Street Cheese Sprinkle and Italian Herb Mix. They smelled awesome. I double bagged them, sealed them tight and stuck them in the freezer. See, I didn't make the breadcrumbs because I had a recipe that called for them. Oh no. I made them because I had two ends of bread left over. From the loaf we made in our bread machine!

This is the sort of thing that happens when you are trying to reduce the money you spend on food yet still eat well.

We have been very successful in making most of our meals the past two weeks. After a grocery trip mostly to get fixins for our small new year's party we focused on building meals around the organic vegetables and using what we already had in the house.

We have been using our "homemade" Delmonico steaks from Costco to make Pan-Seared Rib Eye and serving them with organic Sweet Potato Oven Fries and sometimes a side salad. The past two times, it's been Arugula Salad. And yes, Internet, I even shaved the parmesan.

I'm not saying we haven't had takeout. We ate Burger King a couple of times over the course of the week (we have coupons! I promise! And we share the fries.) because we're running low on lunch-ables. We're going to have to go to the grocery store soon (we're out of *cough*frosted*cough* shredded mini-wheats afterall) but we're gearing up to go shopping once a month now that the bulk of our produce comes to our door. That's certainly going to take some practice.

These changes have not taken much effort. We really don't spend a lot of time cooking these meals. And so far we've spent a lot less time shopping ;) I am not sure we've established new habits quite yet, or if these changes will last the year. But it's satisfying to know we are working toward a goal. The short term goal is to reduce our expenses with the longer term goal of increasing our savings. So far...it's fun. You should try shaving some parmesan, you just might like it.

No Life Insurance for Us

We started contemplating term life insurance about four years ago. LaLa had just been laid off from our company and we were about to close on our first house purchase. Oh, and having poured all our savings into the purchase, we had no emergency fund (can you tell the layoff happened after the purchase, and before the closing? It did.)

We thought about a modest policy to basically cover the mortgage in the event of my death. And then we kept putting it off. We were quoted at approximately $40 a month for what we wanted and though it was a reasonable expense, we just never made it a priority to follow through.

A year later I was unemployed (the company folded) and LaLa was working a part-time McJob because the bottom had fallen out of the MA tech market and there was a glut of web designers out there and no jobs. We literally felt we couldn't afford $40/month at that time (you can save the penny-wise, pound-foolish comments for the end...I promise I have a point)

Then after a year of unemployment, I was hired to do a job that includes occasional travel and we resurrected the life insurance idea. LaLa's part-time web design freelancing was taking off, but bringing in modest income. With me traveling and bringing in the large share of income it seemed to make sense. The plan was that if anything happened to me, the insurance would pay off the mortgage and give LaLa the flexibility to move or sell while not really worrying about money. Procrastination continued to be a theme. It's been on a specific "financial to do" list for a year.

That's right, Internet...a year.

A few days ago it hit me. We don't actually need a term life insurance policy on me anymore. (And maybe we never did?). As Early Riser pointed out in his recent Festival of Frugality post:


And the truth is that as much as a death would truly suck and turn our world upside down, we can now afford it...financially speaking.

We have probably about $100k equity built up in our home (give or take, but that's a fairly conservative estimate of what we'd net on selling) and neither one of us would chose to stay living here. We have no children. In a couple of months we will have an emergency fund of about $10k and in the meantime we each have Roth contribution money we could use in a true emergency.

So the upshot is that if one of us dies...we have enough co-owned or personal funds to bridge the gap until the house was sold. Our house is in a very desireable neighborhood in Boston so I don't think it's worth it to worry about it selling if that was a necessity. Priced right, our house would fly off the market if that was the priority. Also LaLa's income has almost doubled and continues on an upward trend so our income disparity might not last very much longer ;)

We discussed it and it all fell into place. We realized that given our own personal situation, we don't need life insurance right now.

Investors.com Free This Week

Investors.com is the companion website to the Investor's Business Daily publication and the site is offering free access this week to all their online research tools and content. The subscription rate for website access only is normally $19.95/month ($169/annually) so go have yourself a blast.

If this proves useful to you, you can thank my mother for the info ;)

Tuesday, January 10, 2006

Festival of Frugality #5

Photo by JwSIt's Tuesday, which means the Festival of Frugality is up! Noah of Okdork.com is hosting this, the fifth, installment. Weighing in at 12 submissions, the FoF provides many tips this week to cut down on expenses and squeeze more value out of your money.

Since I am attempting to spend less on food this year, I found useful reminders on how to beat my receipt and still eat meat by Nick (or is it Kweee?) over at Funny Munny (or is it Kweee?). His witty blog post titles amooosed me so much, I'll be subscribing to his feed as soon as Bloglines stops "having trouble with the database". Sigh.

I am very excited to check out the Costco option for calendar printing as written up by FreeMoneyFinance. Two years ago we used Shutterfly to make these cute little 5x7 calendars for our group of friends but they no longer offer that template. Apparently our friends really liked those calendars because they are begging us to make one this year (they didnt seem as excited by the jellyfish calendar we made them all last year...go figure). We may not be able to do the smaller size, so some pictures may look a little fuzzed all blown up, but Costco's price can't be beat. If we can pick this up in the store, like we did our holiday cards, we're extra golden.

Of course there is much much more there so please go check it out.

Next week I will host the Festival, which will be my first blog carnival. If you'd like to make a submission you may find the instructions on doing so at Jim's Festival of Frugality page.

Enjoy!

Monday, January 09, 2006

Keeping a Lid on Pet Expenses

There were quite a few blog posts last year bemoaning the cost of pets. While I believe finances should be a part of any decision to own a pet, clearly there are many happy pet-owners out there who think it's well worth the cost (including several personal finance bloggers).

We "own" two cats (you know the story...they actually own us) and our costs run an average of $100 a month. Our older cat is 15 years old and he is pretty healthy and spry for his age, but his kidneys and liver just ain't what they used to be requiring special food and frequent vet visits. But $1200 a year seems like a small price to pay given what we feel our pets give back.

Healthcare
We do not scrimp on healthcare for our cats, but we do find other ways to save. And our vet even instituted a money saving practice that really lowered our monthly cost about a year ago. Our older cat needs twice weekly fluids to assist his kidneys in flushing his system. This used to cost us $9 a visit and included the cost of the saline solution and the administration. This alone was close to $80 a month and we paid it because I just couldn't bear to figure out how to do this at home (call me wimpy, but I DID try to get trained by the vet tech but I thought I was gonna hurl).

A while ago the vet instituted a new pricing method...we now buy our own bag of the solution for $10 which lasts about 5 visits. We then pay a fluid administration fee of $5 each time. This nets us a savings of $2 a visit which doesn't sound like much, but accounted for probably about $200 in savings last year!

If you are paying for frequent fluids for your cat (this can be pretty common in older cats) ask your vet if they have anything similar or are willing to institute it. It saved us a bundle. Of course you can save EVEN more by administering the fluids at home!

Litter
We use Feline Pine for our cats and they often run $5 rebate promotions. They require the promotional sticker, two UPCs and original receipts for two bags. When they run the promotion, LaLa collects the stickers. After each bag of litter is empty, she cuts out the UPC and saves that near the stickers. The trickier bit is to hang onto receipts and we could probably be better about it...but whenever we have a full set, LaLa sends off for the rebate. This practice nets us probably $30-$35 a year (Feline Pine is about $7-8 a bag in our area) and could bring in more if we were better with the receipt part.

Cozy Places to Sleep
Everyone knows small (well ALL really) animals love a cozy place to sleep. And we all spend money getting little fleece lined beds and pillows filled with cedar chips or whatever. We *do* have one of those fleece window shelves that I bought a long time ago (its a fave in warm weather) but we recently created two minimal cost cat beds (our cats made us do it).

Last winter we used to find our younger cat curled up in LaLa's down jacket all the time (we don't really have a coat rack...but then LaLa kept leaving it fluffed up on chairs on purpose...like for the cat. sigh) This became inconvenient so LaLa asked her mother to send us an old down jacket that no one had used in years (Mom lives in LA...so she really didnt need it) and the first "boo bed" was born. Behold the nearly free down pet bed:

down boo-bed

We keep it on the floor in the office which is where we spend most of our time. Of course it has to be aligned for maximum solar exposure.

And then, of course, there was the time (was that a whole year ago?!?!) when we cleaned out our files and did a massive shred-fest. We had a trashbag with shredded papers in our office, waiting for trash day, and we kept finding little miss tubbybuttons (not her real name) asleep on it so we made a permanent version. We use a kitchen size garbage bag and I swear LaLa fluffs it when I am not looking. I know she also adds some shreddies when it starts looking flattened out. It even holds TWO cats:

shreddie boo-bed

This works well until, of course, there is a territory squabble of some sort and you find a puddle of cat pee in the middle and have to start all over. But it IS free.

Maybe this post was just an excuse to brag about our clever shreddie bed (you know you want one!) but maybe there's a nugget in here somewhere to help you think about ways to save.

Received AMEX $10 Gift Card

Back in September American Express ran a promotion for business card owners. Sit through their online demo of their new interface and receive a $10 gift card. LaLa was invited to participate and it took very little time.

I honestly thought that card would NEVER come, but it finally showed up today...about four months after the demo! Sheesh. It's apparently an Encompass Select prepaid gift card, usuable at most places that accept American Express cards.

Now the challenge will be to use it on something we were going to buy anyway and not spend it on "buying crap" as Cap likes to say. Maybe half a tank of gas? Maybe to pay for two fluid administration vet visits for our older cat? Oh the sexy choices...they overwhelm me.

Carnival of Personal Finance #30

Photo by Scot McCannJLP over at AllThingsFinancial has launched this week's Carnival of Personal Finance nice and early. I can't believe this carnival is up to 30 already! And once again, there are many posts to read so I'll be visiting throughout the day. I always prefer carnivals divided by topic (as I personally find I read more than when it is organized by submission chronology) and JLP has done a great job herding carnival submissions this week.

This week at the carnival I've added my opinion of HSBCDirect to the pool. They are competitively marketing their new online savings account and folks used to ING and Emigrant seem to be curious if HSBC is the real deal. Seems so. I'm hoping that the competition keeps the rates fresh. If you are earning less than 3% on your savings account, then after taxes you are barely keeping pace with inflation! (That's napkin math so if I'm off by much please let me know). My real feeling is that it doesn't matter which one of those style accounts you choose, just choose and start today :)

Sunday, January 08, 2006

This Just In...I'm 38

After nearly a year of blogging, I am finally on Mom's radar (Hi, Mom!) and she was apparently reading some posts out loud to my stepfather, starting with my recent post on my file-a-palooza.

My stepfather wrote me an email that contained the following:
One question: Was the experience so uplifting that it literally took a year off your life? I've done the math, and do not want to break any bad news to you but you and I are close to 20 years apart. That would make me 58 in 2005 and you would be.....38?
Geez, first Pepper...and now this? I'm THIRTY-SEVEN people...THIRTY...oh. Ahem. Pardon me.

I'm 38.

Since Pepper is rarely wrong, I really should have listened then. But she's so gracious I actually had her convinced I was still 37. I have never before flaked on my age. I wonder if this is a symptom of having my first ever birthday on the road back in August (I do not recommend this, even though I was with co-workers I count among my friends). Or maybe I am just so focused on my finances that all sense of time has vanished?

Maybe I am just 37 for the second year in a row?

The point is....well....there is no point. Other than I am 38. Not 37. That's really my only point. Oh, and that Pepper is always right.

Saturday, January 07, 2006

File-A-Palooza

From the title of my blog maybe you can guess that I am not the best person at maintaining orderly files. I am 37 years old and I have never had a filing system nor had I ever completed all my filing.

Until today.

My "to be filed" bin was about 8 inches high and included some choice items from 2004 and 2003. It also contained every statement from each account I had opened this year (Fidelity Roth, Fidelity IRA, ING, Emigrant, HSBC ... well, you get the picture). The worse problem was my filing...er...crate. I had no system, which is why filing was so onerous. My main problem was that each piece of paper had multiple associations for me and I had trouble picking one and creating a system (that might be a symptom of the ADD...)

It's ironic that I am usually pretty good about a yearly cleanout of out of date papers (shredapalooza and recyclepalooza of course) and I would usually make progress on my filing during that event, but I'd never managed to truly have it organized or to feel I could manage my filing. It was time.

A year ago (that's right...a year ago) when I was starting this blog, I came across David Bach's suggestions for creating a filing system. Today, I used that as inspiration and LaLa and I spent the entire afternoon and evening wrangling paper. I'm a little pooped.

My system may need some refining, but now I can tell where something goes...and how to find it. Small miracles, people...small miracles.

I start 2006 fully filed. It's a beautiful thing.


    

My 2 cents on HSBCDirect

A reader, Alsymer, recently asked for my 2 cents on HSBCDirect. Aside from my frustration with the mortgage side of HSBC I continue to be pretty happy with HSBCDirect for my savings.

I had a few glitches setting up my account, but I got those ironed out pretty quickly. I'd put their web interface somewhere between ING (pretty good) and EmigrantDirect (fair) - my main complaint being the constant opening of new windows instead of just doing a good job at navigation. But it's an annoyance, not an impediment. One more thing that I consider a quirk is that they don't do statements on the last day of the month, but seem to apply interest and issue statements on the day of the month which corresponds to when you opened your account.

I have since made HSBC where my main emergency funds are held and here is why I am currently a fan:
  • They offer a sign-up bonus (current promo code: start)
  • They currently pay the highest APY for $1 to open an account
  • I can add unlimited "external" banks for transferring (sadly ING is not compatible but this is becoming less of an issue for me)
  • I can use Quicken's Direct Connect to download my transactions (I abhor web connect, which requires me to go to the website, log in, and initiate a download)
Some people grumble about the hold times. ING and EmigrantDirect both hold deposits for 5 days but my experience so far with HSBCDirect is that deposits via transfer are credited to your account in 48 hours after being debited from the source account. MyMoneyBlog has a great comparison page, so visit that for more details.

The point is to pick one and just start...you can always move your money later.

I think any one of these online savings banks are useful and each person will have their preferences. You could always open an HSBC account and receive $25 and once you have saved at least $250 use that to open an ING account and qualify for the (nerfed) $25 bonus and net yourself $50 just for thrills. Go nuts...just get going!

[Update] If you are looking for other opinions on HSBCDirect, here are some links. If you'd like me to add your opinion to the list, just email me with the URL

Thursday, January 05, 2006

HSBC Mortgage Payment Nightmare

Well, I *tried* to pay my January mortgage a few days early.

I normally have my mortgage payment deducted from my checking account. When I decided to pay my January payment a few days early, instead of sending a check with a payment coupon I decided to transfer the money from my HSBCDirect account (because that's where I had it until payday) to my HSBC mortgage. I put in the exact amount as my monthly payment (to the penny) and chose to execute the transfer on 12/22.

On 12/29 I received my next mortgage statement showing that my 12/22 payment had been applied in totality ... to principal. Needless to say I had to spend a good deal of time on the phone wrangling with an offshore rep who really didnt understand what I wanted to have happen. Finally I was assured that the 12/22 payment would be (re)applied to the January payment and my January auto-payment would be cancelled. He could not give me a confirmation number though....they don't have those (sigh), but I was free to call back after 24hrs had passed to check.

Oops. I forgot to call back.

Meanwhile, my expense check for October had *finally* shown up while I was away. I deposited it in the bank and promptly made EFTs to pay off my work credit card balances. Only I was apparently too aggressive. Every other expense check has been available in 24 hours, but this one needed 48 for some reason (a different, out of state, bank? who knows) and due to the voodoo of clearing funds I invoked my overdraft protection to the tune of $1000. Ouch. It costs me nearly a dollar a day to borrow overdraft money. And clearly time was ticking.

I couldn't fix it until Tuesday due to the holiday but when I got to the bank I was informed I didn't have enough to pay it back. Which was in turn due to the fact that HSBC still took my January payment from my checking account. At which point I sort of turned into Yosemite Sam only not as cute.

More wrangling on the phone with HSBC (my call was dropped three times) and another offshore rep insisted there was nothing she could do to fix the problem because the cut off for January auto-payments was the 28th, and I had requested the stop on the 29th (well why didn't the HSBC rep on the 29th tell me I couldn't cancel the January payment?!!? Oh, never mind). I finally pleaded with her to transfer me to someone who could fix it for me.

And she did! Lance hooked me up. I don't think Lance works "offshore" either. He reversed the January payment (which had become the February payment by the time they took it out since January was paid...oy vey) and said the funds should be back in my account within 48 hours. I have to double check tomorrow but I also confirmed at the branch that with the recent software upgrade, I can now pay off my overdraft online.

But after Lance took care of that, he broke my heart by telling me that once property taxes are established to be paid via escrow there is no changing that. But that's a problem for another day.

Ok. I know what you are saying...that's not really a nightmare...and you're right. Lance the man took care of my problem after I only spent a total of maybe two hours on the phone (the disconnects, the hold times, the multiple calls...sheesh) and everything should be right. But I am bummed that this cost me interest on my overdraft, hopefully it will be under $10.

Anyway...thanks Lance.

Tuesday, January 03, 2006

Boston Organics



One of my non-financial goals for 2006 is to eat more fruits and vegetables. This was a lot easier for us to do when we split a share in a CSA farm for a few years, and I enjoyed contributing to something that was important to me all while eating yummy organic and bio-dynamic veggies.

So for the last two years or so our vegetable intake has been pathetic. We're talking spinach or lettuce based salads and green beans. My grandfather had a huge garden and grew tons of vegetables when I was little so I like my veggies and fruits to actually taste good so the usual supermarket offerings don't get me excited. And LaLa's not really a veggie fan (her lack of enthusiasm upon tasting a farm fresh Sun Gold cherry tomato in the early days of our relationship was nearly a dealbreaker...but that's another story) so what I really need is a manageable amount of vegetables (fruit would be bonus...I am so tired of apples) to just show up at my house.

So I was sitting in my home office before the holiday when I saw a vision in white drive by my house. A white van with a "Boston Organics" logo zipped by. "To the internet!" I said to my cat Boo (who is really more of a baked goods fan) and lo and behold I found Boston Organics online. And here is what is so exciting about them:

They bring organic vegetables and/or fruits....TO YOUR HOUSE!

Isn't that just genius?

You can choose the box size ($25 or $35) and the frequency (weekly or every other) as well as fruit, veg, or mix (50/50 or 2/3). AND you get to specify things you never want in your box (no bell peppers please! They HATE me!). Did I mention that they bring it right TO YOUR HOUSE? Oh, I did? Well...the owner is committed to supporting local agriculture so he mostly uses local farms when our (somewhat short) growing season is upon us and during the cold weather months he augments from organic farms in warmer climates.

So I had to have the fruit vs. veg talk with LaLa and I signed up right before we left. I chose to start out with a $25 veg box every other week. When we returned we had a spanky green box on our back porch filled with organic veggies ("Where's the fruit?" she asked. "Errrr....it's complicated". So of course she punished me by buying more apples). We had our artichokes tonight. Yum. I felt like I got a good value for my $25 too, which is most important. There was a fair amount in the box including: lettuce, arugula, cauliflower, 2 artichokes, avocado, onions, sweet potatoes and kale (and probably a thing or two more I can't remember right now)

So one week in and it's working so far...somehow I am clearly the vegetable wrangler, so I better get some fruit delivered ASAP so I can spread the load. Honestly I am hoping I can do $25 each week but alternate between vegetables and fruit. That would be $100 on produce (roughly) a month which I think will help us overall on our food budget. My fallback is to do $35 every other week with maybe a 50/50 split.

I plan to use this service and some other techniques to keep the food budget under control this year.

It seems similar services exist in other metro areas and if you are interested definitely start googling. You might also want to check out this thread on Treehugger. Not everyone there is a fan of Boston Organics because he is not 100% local but I think his business model is realistic and will appeal to more folks than those who solely want to each what is locally in season (my artichoke was goooooood). Anyway, several cities with similar businesses are mentioned there too. Have a peek OR I strongly suggest you check out CSA in your area too!

Happy Eating!

Taxes and Cancelling my 401(k)

A reader commented on my post about cancelling my 401(k) about making sure I had considered the tax implications of my choice:
[The Traveling Man sez] I am not sure if you considered this or not, but you might have some tax consequences by discontinuing your 401k contribution. You fund the 401k with pre-tax dollars, so if you are maxing out your 401k, then you are reducing your AGI significantly. You may still find that it is worth it in other ways, but the seemingly large 1.4% expense fee on the fund won't seem like too much if it causes your takes paid to go up by more than that!
First I want to clarify that my decision had nothing to do with the high expense ratio of my index fund...it was just another data point in favor of the decision I already made for other reasons. But he does make an excellent point that there are tax consequences and I didn't really write about that part of my decision, so here goes....

By cancelling my 401(k) with only December left the tax impact for 2005 is only based on roughly $1100. My federal and state income taxes in December were obviously higher and I increased my monthly takehome pay by about $800 (and close to $400 of that went to the "extra" taxes). I was able to estimate this impact by using a dinkytown calculator and it was accurate enough for my purposes.

Also, my adjusted gross income for 2005 will include that extra $1100-ish so to offset that, I paid my January mortgage in the last few days of December. Since my January interest was more than what was "added" to my AGI it was a fair trade for 2005 tax purposes.

Which brings us to 2006. My intention is not to abandon my 401(k) forever - I have simply postponed my contributions in an effort to fast track some other savings that I feel are higher priorities due to my own personal set of circumstances.

I have never before had any "emergency fund" or savings account of any significance. I am not convinced that my job is stable and though we made it through some serial unemployment recently I am now even more aware of what that cost us financially in the long run because we had to use our home equity and credit cards as our "safety net". It wasn't horrible, I just dont want that to ever happen again. A liquid fund of $10,000 represents a small taste of freedom for me and I just can tell in my gut that we should go for it.

If my paycut is not reversed in 2006, my salary will be even less than it was in 2005 since the paycut came mid year. Even so, I still plan on putting at *least* $10,000 in my 401(k) by the end of 2006 (assuming I still have one!) and $12k might not even be that much of a stretch if everything stays the same. But I honestly don't think I can meet my other savings goals and still *max* my 401(k) by contributing a full $15,000.

Unless I get a raise ;) or get a side business off the ground...or or or!

Either way I will have to calculate a new withholding amount once the numbers settle down.

Monday, January 02, 2006

Financial Goals for 2006

If 2005 was "The Year of Getting Finances in Order" then I hereby declare 2006 "The Year of Increasing Income". My theme in the last year was really about educating myself about our financial picture and finally putting some goals into place and I really feel it made a difference.

This year I'd really like to focus on increasing income. I'm not sure a job switch is in my future for this year, but I'd like to augment my current income via other means (Ebay, Adsense?, etc) at the very least and pursue some other money-making ideas along the way. Clearly I need to keep noodling and hatch a plan and some goals to that end, but that's the "theme" I've chosen for the year.

Here are our specific financial goals for 2006:
  • $10,000 in an emergency fund before mid-year
  • Maximize 2006 Roth IRA contribution (and finish 2005 by April)
  • At least $10,000 in 401(k)
  • Networth of $275k by EOY
  • Save 35% of our combined income
  • Reduce monthly expenses (this is becoming more of a hobby than a goal)
We've prioritized the emergency fund so we can sleep better at night, then we'll figure out the rest of the tax-deferred and tax-exempt savings schedule (save in parallel? or Roth then 401k...that sort of thing).

I'm interested to try out having a networth goal. I think 275k might be a little bit of a stretch, but I want to try it. And I'd like to try to save a little more than 30% of our income so I chose 35% and we still need to do this while absorbing some household expenses this year.

So my hope is that this batch of goals are meetable but challenging and that they'll give me focus for the upcoming year.

I wish everyone a happy, healthy and prosperous 2006!

Sunday, January 01, 2006

ING Direct Rate Now at 3.8% APY

I logged into my account today while doing month and year-end finances and noticed the (teensy weensy) increase. I think Jonathan says it best..."yawn". I've moved my emergency fund to HSBC and I currently have christmas money that will be used for 2006 trips in Emigrant. That leaves ING for my very short term savings...things of a freedom account type nature. Except...well...I haven't really nailed the freedom account thing, so I'm not even sure why I'm still using it.

Maybe because it's orange?

$400 Into the Emergency Fund

I was paid on 12/30 so I was able to transfer another $400 to our emergency fund at HSBC. This now brings the Save-O-Meter to 31%. LaLa should start contributing in January as well so I hope to see us aggressively moving toward our goal.

2005 In Review: Goals

A few years ago friends of ours initiated a practice of "naming" each new year. While 2004 was definitely not "The Year it All Comes Together" for any of us (a lot of things fell apart in our little circle of friends, but we're all still here and happy), we do enjoy this little ritual every new year's eve.

For 2005 LaLa and I chose "The Year We Get Our Finances in Order" and I think we did pretty well overall. My goals were pretty fuzzy when I started out...most were never truly articulated, but goal setting is one thing I feel I've improved this year so next year I think it will be easier to track progress. I started this blog to make myself more accountable (somehow this really does work) and to share useful experiences (both positive and negative) with others. This blog and the personal finance blogging community has kept me informed and focused all year...all vital components to meeting my goals this year.

So how did I do?

Goal: Get out and stay out of credit card debt - SUCCESS
I would have had this done by March, but I took on some low interest credit card debt to fun a 2004 Roth by April 15th. That took me an additional 3 months to pay off, so by mid-year we were truly credit-card debt free. I'm happy to say that even through the holidays we have *stayed* debt free (with the exception of the mortgage) and continue to be able to pay off our credit cards each month.

Goal: Save at least 30% of our combined income - SUCCESS
Even though we don't have the final numbers of net income for LaLa's freelancing, I calculated that between the two of us we saved $38,000 in 2005. I do know that between us our net income surpasses $114k so we met this goal. Since I believe we only saved $15,000 in 2004 ($12k in my 401k and $3k in LaLa's IRA) this is a big improvement. While I wasn't able to keep to the letter of the 60% budget using my own income alone, the budget did help me stay on target and obviously we did meet our overall goal of saving more than 30% (which is really what the 60% budget is all about)

Goal: Save $10,000 in an emergency fund by end of year - OOPS!
This was the really tough one. When I made this goal back in March it was a stretch even then. Halfway through the year, my company instituted a 7% paycut and reduced health and dental coverage from 100% to 50%. So I suddenly had $800 less a month in my take home pay. Fortuitously I was already through paying off my credit cards (whew!) but without cannibalizing my 401(k) I just couldn't even come close to this goal. Given the situation at my company this is my #1 goal for 2006 (more on that later)

Those three goals were by far the most compelling and best articulated. I feel pretty good about the progress we made this year, but I intend to push harder next year. Not having credit card debt is by far the most satisfying of all our accomplishments this year...it's truly like a weight has been lifted. That alone makes 2005 feel like a big success.
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