One of those things Dave Ramsey is always saying is "Give every dollar a name" when budgeting. I'm working on my December budget with this in mind. But a mistake I've made in the past is naming every dollar so minutely that I'm not prepared for unexpected expenses that don't fall into my carefully-crafted catagories.
For example, in November, the following expenses cropped up: (1) My high-school senior needed $13 to go on a class outing to see Beowulf (they couldn't just read the book?); (2) My five year old granddaughter who still wears pull-ups at night left hers at home when she came for Thanksgiving--who knew that the smallest package costs $12?; (3) No one could find the corkscrew for the Thanksgiving wine and none of my neighbors had one--six unbudgeted dollars(and dang if I didn't find my old one when I was putting the turkey roaster away two days later!); (4)There were two baby showers and one retirement party in my office in November--exit $60; and (5) A friend invited me to a cocktail party--I knew she was running for state attorney general but I didn't realize the party was a fundraiser--another $25 gone, though I will recover it when I file my state income taxes.
SO--$116 dollars that had no name but still had to come from somewhere.
That's what I really hate about budgeting. How, exactly, could I have predicted any of those expenses? And none of them qualifies as an emergency expense.
So, I'm now adding a budget entry for miscellaneous. But it's just a guess as to how much to put in it. For December, I'm making it $75 and keeping my fingers crossed.
Friday, November 30, 2007
Thursday, November 29, 2007
6th Month Anniversary & November wrap-up
Six months of blogging. Feels like it has been longer. I mean that in a good way!
I'll wait until the end of the year to see what my overall financial picture is like but in the meantime, November went relatively well. My indebtedness is down $993.26 counting my mortgage. If I leave the mortgage out, my debt is down $410.12--not a lot, but better than I managed to do in October.
I'll wait until the end of the year to see what my overall financial picture is like but in the meantime, November went relatively well. My indebtedness is down $993.26 counting my mortgage. If I leave the mortgage out, my debt is down $410.12--not a lot, but better than I managed to do in October.
Wednesday, November 28, 2007
Getting Scary Out There
I remember advising, many posts back, that one NOT keep checking one's retirement fund balance, particularly in a market as unstable as we are now experiencing. However, since I don't always take my own advice, I have peeked. Big mistake. My funds are down 10% or $17,000. I am closing my eyes, continuing to contribute, and keeping my fingers crossed that in the eleven years I have left until retirement, this will all work itself out. It had better--I have no good recipes for dogfood casserole
Thursday, November 22, 2007
And a Happy Thanksgiving to All
Thanksgiving is my favorite holiday--kinda like Christmas, without the expense, the hype, or the planning. For Christmas dinner, I invite only family. But Thanksgiving is for everyone--my sister from New York, my best friend of 30+ years, the Russian woman I work with who wants to experience an American Thanksgiving, one daughter's new boyfriend, one daughter's old boyfriend who still shows up every Thanksgiving for reasons no one understands, my grandkids who range from age 19 down to age 4, the neighbor who expected to fly to California but broke her leg and can't travel, and various and sundry others.
I buy and prepare the twenty-two pound turkey. I provide the TV set--two of them, actually. One for the football games and one for the playstation.
Everyone else brings the rest of the food, and my family can generally live on the leftovers for several days.
I catch up on the gossip, my adult children who are scattered up and down the coast come together and compare notes, the grandchildren play hide and seek all over over the house--and at least three people always volunteer to do dishes because "Grace did all that work making the turkey." Lemme tell ya--offering to do the turkey is the biggest scam around. It's the easiest part of a Thanksgiving dinner and barely qualifies as cooking.
For one glorious day, I'm not even thinking about money--I'm thinking how much I enjoy just hanging out with my friends, my family and all those other interesting people who happened to come by for dinner.
D'ya suppose that's why they call it Thanksgiving?
I buy and prepare the twenty-two pound turkey. I provide the TV set--two of them, actually. One for the football games and one for the playstation.
Everyone else brings the rest of the food, and my family can generally live on the leftovers for several days.
I catch up on the gossip, my adult children who are scattered up and down the coast come together and compare notes, the grandchildren play hide and seek all over over the house--and at least three people always volunteer to do dishes because "Grace did all that work making the turkey." Lemme tell ya--offering to do the turkey is the biggest scam around. It's the easiest part of a Thanksgiving dinner and barely qualifies as cooking.
For one glorious day, I'm not even thinking about money--I'm thinking how much I enjoy just hanging out with my friends, my family and all those other interesting people who happened to come by for dinner.
D'ya suppose that's why they call it Thanksgiving?
Sunday, November 18, 2007
Maxed Out is an In Movie
I'm a tad behind the curve on this one. "Maxed out" is a documentary that has been around for awhile. In my usual timely fashion, I finally watched it last night. But in the best frugal condition, I waited until it came out on DVD, and then I reserved it at my local library. So, there was Grace, two of her adult kids, and a gigantic bowl of popcorn.
The movie is laugh out loud funny. But it's the kind of movie that makes me uncomfortable even as I'm laughing. How funny is it, really, to see a 44 year old retarded man who can only write his name when he is copying from printed letters, get a credit card? Do I want to see kids enter college where they get free T-shirts by signing up for credit cards, and where, in two of the saddest cases, they commit suicide over their debt? Why am I laughing when Bush appoints a disgraced banker to head a watchdog agency, when I should be throwing shoes at the television set?
Like many documentaries with a political agenda, "Maxed Out" makes no pretense of fairness--in fact it deliberately juxtaposes scenes and comments to get easy laughs.
But in the end, it is an utterly maddening movie. How dare the credit card and lending industries talk about personal responsibility when they deliberately exploit the most financially vulnerable among us.
The movie ends with the passage of bankruptcy reform and the spectre of possible sub-prime mortgage failures. From the vantage point of another year, we now know that bankruptcy reform did not harm the poor as much as we thought it might, and it did harm the credit card industry far more than they predicted. Some crows come home to roost in exactly the right place!
As for the possibility of subprime mortgage issues? How many ways can one say "Duh?"
The movie is laugh out loud funny. But it's the kind of movie that makes me uncomfortable even as I'm laughing. How funny is it, really, to see a 44 year old retarded man who can only write his name when he is copying from printed letters, get a credit card? Do I want to see kids enter college where they get free T-shirts by signing up for credit cards, and where, in two of the saddest cases, they commit suicide over their debt? Why am I laughing when Bush appoints a disgraced banker to head a watchdog agency, when I should be throwing shoes at the television set?
Like many documentaries with a political agenda, "Maxed Out" makes no pretense of fairness--in fact it deliberately juxtaposes scenes and comments to get easy laughs.
But in the end, it is an utterly maddening movie. How dare the credit card and lending industries talk about personal responsibility when they deliberately exploit the most financially vulnerable among us.
The movie ends with the passage of bankruptcy reform and the spectre of possible sub-prime mortgage failures. From the vantage point of another year, we now know that bankruptcy reform did not harm the poor as much as we thought it might, and it did harm the credit card industry far more than they predicted. Some crows come home to roost in exactly the right place!
As for the possibility of subprime mortgage issues? How many ways can one say "Duh?"
Thursday, November 15, 2007
Holidays in GRACEland
I kinda blur everything from Thanksgiving through Christmas altogether--the resulting assault on my finances gives me a whopping headache.
And therein, lies my greatest discontent. How can I enjoy the holidays when I am always worried about its impact on my finances? If the true joy of the holidays is in family warmth, why are my kids and grandkids less than amused if all they get from me is socks and underwear?
Both Thanksgiving and Christmas take place at my home. My kids bring side dishes, but I'm the one buying and preparing the turkey and any other main dishes.
I'm the one who buys the "big" gifts for my children and grandchildren.
I am determined that this year will be different. I am determined to pay attention to my finances and NOT to use my credit cards.
I have a budget for the holidays. It is $1845, with a leeway of $300 due to a check that will come in December 31st.
You'd think that would be enough, but my guess is that it will be close.
Part of the reason is that at least $400 will be earmarked for gifts for my sister. Why my sister, you might well ask? Well, since our parents died, she and I are the only ones who really remember each other's birthdays, and carry on our parent's tradition of lots of nice presents under the Christmas tree. My sister has no children, and a six figure income. I may spend $400 on her, but I know that she will spend over a thousand on me. My lime-green couch, my lifetime Tivo, the sink in the upstairs bathroom are all courtesy of my sister, not to mention the Coach bag that shows up with my name on it every year. I am seriously going to ask her for a dishwasher this year! So, within the framework of my finances, I take good care of my sister at Christmas.
Then, there's my FIVE children (what WAS I thinking?) and their SIX children--ELEVEN folks who are expecting wonderful (read that: expensive) things from mom or grandma.
Plus, there are the hangers on--the boyfriends and spouses who will show up, and for whom there needs to a little something under tree.
Oh, and there's the tree ($20) and the wreath for the door ($17) and something for the Salvation Army bellringers ($20) and. . .
Sigh.
My plan, for the moment, is budget $150 apiece for my adult children, $50 for each of my youngest grandchildren, $75 for the two older grandkids, and $25 for several miscellaneous folks.
I'm curious how this compares to the rest of the world. Too much? Not enough?
And therein, lies my greatest discontent. How can I enjoy the holidays when I am always worried about its impact on my finances? If the true joy of the holidays is in family warmth, why are my kids and grandkids less than amused if all they get from me is socks and underwear?
Both Thanksgiving and Christmas take place at my home. My kids bring side dishes, but I'm the one buying and preparing the turkey and any other main dishes.
I'm the one who buys the "big" gifts for my children and grandchildren.
I am determined that this year will be different. I am determined to pay attention to my finances and NOT to use my credit cards.
I have a budget for the holidays. It is $1845, with a leeway of $300 due to a check that will come in December 31st.
You'd think that would be enough, but my guess is that it will be close.
Part of the reason is that at least $400 will be earmarked for gifts for my sister. Why my sister, you might well ask? Well, since our parents died, she and I are the only ones who really remember each other's birthdays, and carry on our parent's tradition of lots of nice presents under the Christmas tree. My sister has no children, and a six figure income. I may spend $400 on her, but I know that she will spend over a thousand on me. My lime-green couch, my lifetime Tivo, the sink in the upstairs bathroom are all courtesy of my sister, not to mention the Coach bag that shows up with my name on it every year. I am seriously going to ask her for a dishwasher this year! So, within the framework of my finances, I take good care of my sister at Christmas.
Then, there's my FIVE children (what WAS I thinking?) and their SIX children--ELEVEN folks who are expecting wonderful (read that: expensive) things from mom or grandma.
Plus, there are the hangers on--the boyfriends and spouses who will show up, and for whom there needs to a little something under tree.
Oh, and there's the tree ($20) and the wreath for the door ($17) and something for the Salvation Army bellringers ($20) and. . .
Sigh.
My plan, for the moment, is budget $150 apiece for my adult children, $50 for each of my youngest grandchildren, $75 for the two older grandkids, and $25 for several miscellaneous folks.
I'm curious how this compares to the rest of the world. Too much? Not enough?
Sunday, November 11, 2007
Surprising Money Saves
I spent much of this weekend at a local literary festival. I budgeted the $5 per day to get in, counted on getting a lot of free pens, bookmarks and other do-dads, determined not to buy any books, and looked forward to seeing a number of my favorite authors in person.
All of the above happened as planned. I even managed not to buy any books, which--trust me on this one--took some definite intestinal fortitude.
But, big surprise for me, I also saved some money.
The local daily newspaper was one of the exhibitors. They couldn't sell me a subscription since I have been a subscriber for over 30 years. But, by promising to save me $2 per month, they did pursuade me to have the monthly costs taken directly out of my checking account. And to sweeten the deal, they threw in a $5 grocery card at a store I frequent.
I would have enjoyed this festival at any rate, but combine it with the money savings, and what's not to like?
All of the above happened as planned. I even managed not to buy any books, which--trust me on this one--took some definite intestinal fortitude.
But, big surprise for me, I also saved some money.
The local daily newspaper was one of the exhibitors. They couldn't sell me a subscription since I have been a subscriber for over 30 years. But, by promising to save me $2 per month, they did pursuade me to have the monthly costs taken directly out of my checking account. And to sweeten the deal, they threw in a $5 grocery card at a store I frequent.
I would have enjoyed this festival at any rate, but combine it with the money savings, and what's not to like?
Sunday, November 4, 2007
Adoption on the Cheap
November is National Adoption month.
Given that this is a personal finance blog, and given that I adopted five daughters without spending a dime for the adoptions, I think it is time to dispense with some of the financial myths surrounding adoption expenses.
The biggest myth is that adoption is prohibitively expensive. It can be, of course. Adopting.Org reports that a private adoption of a healthy, white infant can cost anywhere from $8000 to $30,000. International adoption runs a close second, from $7,000 to $25,000.
But I adopted each of my children from state foster care. Not only did I not pay anything for the adoptions, the state reimbursed me for the travel costs involved in meeting with my children and their social workers, and continues to give me an adoption assistance payment each month. Each child was also covered by Medicaid until age 18. (I put my kids on my own insurance plan when they came into my home, but having them on Medicaid meant I never had co-pays.) Health insurance companies are required to put your adopted children onto the policy as of the date of placement in your home, even if the adoption itself doesn't take place until later. Also, healthcare providers that don't routinely take Medicaid usually will make an exception when your family is already being treated through your employer's policy.
A number of employers (not mine, unfortunately) offer adoption benefits that are much like FLEX plans. Specific adoption expenses come out of pre-tax income. If your employer does not have such a program, it may well be worth your time to check this benefit out and present it to your employer as something they might like to offer. The big selling point is that because the employer will not have to pay FICA on pre-tax income, and because those FICA payments are usually more than what private FLEX firms charge to administer plans, the benefit is revenue-neutral for the employer. If your company already offers FLEX medical and childcare, call the administrator to see if they can handle adoption benefits as well.
There are also substantial tax benefits to adoption. These are available for all adoptions, whether domestic or international, but they are higher and better for anyone adopting out of foster care. Check out the IRS website for Forms and Instructions (Form 8839) to claim the tax credit. For one child, it is currently $10,960. It can be spread over more than one year. If the adoption is international, the credit cannot be claimed until the adoption is finalized. However, for a domestic adoption, there doesn't even have to be an adoption as a final result, provided the expenses were incurred as part of an adoption process.
For the adoption of a special needs child (and keep in mind that a "special need" can be as minor as a child being African-American, or over six years old, or part of a sibling group, or having a family history of mental or inheritable physical illness), one does not even need to have incurred that much in expenses to take the credit.
That's right--at least on the front end, one can actually make a profit on the adoption.
With my usual stellar timing, I adopted for the final time the year before that particular provision of the tax code was passed. So, no profit for Grace, unless you count the addition of five very special girls to my family as a profit.
Come to think of it, I do consider that a profit. And a blessing.
Given that this is a personal finance blog, and given that I adopted five daughters without spending a dime for the adoptions, I think it is time to dispense with some of the financial myths surrounding adoption expenses.
The biggest myth is that adoption is prohibitively expensive. It can be, of course. Adopting.Org reports that a private adoption of a healthy, white infant can cost anywhere from $8000 to $30,000. International adoption runs a close second, from $7,000 to $25,000.
But I adopted each of my children from state foster care. Not only did I not pay anything for the adoptions, the state reimbursed me for the travel costs involved in meeting with my children and their social workers, and continues to give me an adoption assistance payment each month. Each child was also covered by Medicaid until age 18. (I put my kids on my own insurance plan when they came into my home, but having them on Medicaid meant I never had co-pays.) Health insurance companies are required to put your adopted children onto the policy as of the date of placement in your home, even if the adoption itself doesn't take place until later. Also, healthcare providers that don't routinely take Medicaid usually will make an exception when your family is already being treated through your employer's policy.
A number of employers (not mine, unfortunately) offer adoption benefits that are much like FLEX plans. Specific adoption expenses come out of pre-tax income. If your employer does not have such a program, it may well be worth your time to check this benefit out and present it to your employer as something they might like to offer. The big selling point is that because the employer will not have to pay FICA on pre-tax income, and because those FICA payments are usually more than what private FLEX firms charge to administer plans, the benefit is revenue-neutral for the employer. If your company already offers FLEX medical and childcare, call the administrator to see if they can handle adoption benefits as well.
There are also substantial tax benefits to adoption. These are available for all adoptions, whether domestic or international, but they are higher and better for anyone adopting out of foster care. Check out the IRS website for Forms and Instructions (Form 8839) to claim the tax credit. For one child, it is currently $10,960. It can be spread over more than one year. If the adoption is international, the credit cannot be claimed until the adoption is finalized. However, for a domestic adoption, there doesn't even have to be an adoption as a final result, provided the expenses were incurred as part of an adoption process.
For the adoption of a special needs child (and keep in mind that a "special need" can be as minor as a child being African-American, or over six years old, or part of a sibling group, or having a family history of mental or inheritable physical illness), one does not even need to have incurred that much in expenses to take the credit.
That's right--at least on the front end, one can actually make a profit on the adoption.
With my usual stellar timing, I adopted for the final time the year before that particular provision of the tax code was passed. So, no profit for Grace, unless you count the addition of five very special girls to my family as a profit.
Come to think of it, I do consider that a profit. And a blessing.
Thursday, November 1, 2007
Monthly Scorecard
Thank God October is over. Between private school tuition for my 17-year-old (who attends a school for learning disabled students), various crises, getting oil for the winter, and all the niggling little expenses for my grand-daughter in her first year of college, I was barely hanging in there.
My total debt reduction for the month was a miserly $341.73. Still, it's a reduction, for which I am grateful.
And last night, I didn't have as many trick or treaters as I expected, so I have half a bag of miniature Snickers left over. I'm grateful for that, too.
My total debt reduction for the month was a miserly $341.73. Still, it's a reduction, for which I am grateful.
And last night, I didn't have as many trick or treaters as I expected, so I have half a bag of miniature Snickers left over. I'm grateful for that, too.
Tuesday, October 30, 2007
Festival of Frugality is Up
Yes, it is. Being Frugal is the host, and my post about online-surveys is there among many others.
Speaking of being frugal, yesterday, I got $30 from Lightspeed Panel and 2 $10 Starbucks giftcards. I should save the latter for stocking stuffers, but an overwhelming urge for a grande coffee and a cranberry orange scone overtook me this morning, so, um, NO to that idea!
Speaking of being frugal, yesterday, I got $30 from Lightspeed Panel and 2 $10 Starbucks giftcards. I should save the latter for stocking stuffers, but an overwhelming urge for a grande coffee and a cranberry orange scone overtook me this morning, so, um, NO to that idea!
Thursday, October 25, 2007
Keep Those Dollars Trickling In
Even before I write this, I suspect I'm going to get responses that tell me this is a waste of time. Nonetheless, along with similar penny ante financial activities like cutting out and using coupons, I mine simple online activities for money or gift cards. There are many sources out there, but these are the ones I use, along with my comments:
My Points: My number one favorite site for giftcards that are easy to earn. I can earn points by buying things through this site, but over the course of three years, the only thing I've ever bought is the Entertainment Book for my city. And I don't buy it until they offer the book with free shipping (or this year, $1 shipping) and a $25 restaurant card and 1000 MyPoints. However, I can also earn points just for reading the ads. This consists of opening an e-mail, clicking on the "act now" button which takes me to the advertiser's website, and then closing the website and the e-mail. Basically two clicks and I've earned 5 points. Other points are earned for surveys, including dorky 2-question surveys like "Do you have life insurance? Yes/No; Are you interested in purchasing life insurance? Yes/No." For me, that's a yes on the first and a no on the second question, at which point I earn 10 points. Then, there's signing up for newsletters, such as Viking River, a travel agency. 50 points and I never even open the ensuing e-mails. God bless the delete button. After a month or so, I terminate the subscription.
The best deals with one's MyPoints are $10 gift cards from Barnes & Noble, Old Navy, Gap, Red Lobster or various other trendy places for 1400 points. But $5 cards are available for as little as 750 points.
If I don't get the Barnes & Noble card, I spring for the $10 Starbucks card for 1450 points.
If all this sounds like too much work for too little reward, all I can say is that it's not. In my work, I get a lot of e-mail, so I don't mind opening a few extra that will give me something back over the long run.
My Survey: my favorite survey site with lots of ten point surveys, and a surprising number of longer ones. For the record, no "twenty minute" survey actually takes more than ten minutes to complete. Most surveys are worth 75 or 150 points. The points can be traded for money or gifts. At $10 per 1000 points, I usually opt for the money.
Another good survey site is Lightspeed Surveys. This one also pays $10 per 1000 points, with the points especially easy to earn.
One thing about all the survey sites is that they really don't want to hear from us older folks--I note that young women and, particularly, young men have many more surveys available to them. If one is African American or Hispanic, that will also increase the chances of a survey being available.
One way past this overt discrimination is to have a teenager in the house. Most survey sites will let your teenager earn points under your account. My daughter likes taking the surveys. Fortunately, she hasn't asked about the points or what I do with them.
There is one thing, common to bloggers, that I do not do. That is, I don't have any paid advertising on this site. I may change my mind about that in the future, but for the time being, I want this site to be all Grace, all the time, with no advertising to distract either me or the reader.
My Points: My number one favorite site for giftcards that are easy to earn. I can earn points by buying things through this site, but over the course of three years, the only thing I've ever bought is the Entertainment Book for my city. And I don't buy it until they offer the book with free shipping (or this year, $1 shipping) and a $25 restaurant card and 1000 MyPoints. However, I can also earn points just for reading the ads. This consists of opening an e-mail, clicking on the "act now" button which takes me to the advertiser's website, and then closing the website and the e-mail. Basically two clicks and I've earned 5 points. Other points are earned for surveys, including dorky 2-question surveys like "Do you have life insurance? Yes/No; Are you interested in purchasing life insurance? Yes/No." For me, that's a yes on the first and a no on the second question, at which point I earn 10 points. Then, there's signing up for newsletters, such as Viking River, a travel agency. 50 points and I never even open the ensuing e-mails. God bless the delete button. After a month or so, I terminate the subscription.
The best deals with one's MyPoints are $10 gift cards from Barnes & Noble, Old Navy, Gap, Red Lobster or various other trendy places for 1400 points. But $5 cards are available for as little as 750 points.
If I don't get the Barnes & Noble card, I spring for the $10 Starbucks card for 1450 points.
If all this sounds like too much work for too little reward, all I can say is that it's not. In my work, I get a lot of e-mail, so I don't mind opening a few extra that will give me something back over the long run.
My Survey: my favorite survey site with lots of ten point surveys, and a surprising number of longer ones. For the record, no "twenty minute" survey actually takes more than ten minutes to complete. Most surveys are worth 75 or 150 points. The points can be traded for money or gifts. At $10 per 1000 points, I usually opt for the money.
Another good survey site is Lightspeed Surveys. This one also pays $10 per 1000 points, with the points especially easy to earn.
One thing about all the survey sites is that they really don't want to hear from us older folks--I note that young women and, particularly, young men have many more surveys available to them. If one is African American or Hispanic, that will also increase the chances of a survey being available.
One way past this overt discrimination is to have a teenager in the house. Most survey sites will let your teenager earn points under your account. My daughter likes taking the surveys. Fortunately, she hasn't asked about the points or what I do with them.
There is one thing, common to bloggers, that I do not do. That is, I don't have any paid advertising on this site. I may change my mind about that in the future, but for the time being, I want this site to be all Grace, all the time, with no advertising to distract either me or the reader.
Thursday, October 18, 2007
A Spoonful of Sugar
Let's start with the fact that it was all my fault.
I knew I had online payments to make on the 15th. It was a Monday, I got busy, and next thing ya know, I'd missed the cut-off time (3:00 p.m. ET, which is, unfortunately, noon for me on the west coast).
So I was looking at late payment fees on three credit cards that ranged from $22 to $39.
I lamented the loss to a co-worker who said "Call them up and ask them to rescind the charges. Be nice."
I was fine with the calling up piece, but I am not known for always being nice. However, it was worth a try.
I only called two places. The third was handled entirely by e-mail. I was so nice, and so apologetic, it's lucky I didn't go into a diabetic coma
Dang if it didn't work.
I told everyone who responded, including "Robert" with the suspiciously heavy Indian accent, that I knew I was in the wrong and that I had, in fact, made a late payment. Since I was only one day late, and it hadn't happened in the past, and I was a good customer (here, I had my fingers crossed that they looked only at my balances and payment history without noticing that I hadn't charged anything in almost a year), could they please just this once help me out.
When they did help me out, I thanked them profusely.
I saved myself $78.
Of course, I wouldn't have had those charges in the first place if I'd been a tad more prompt with my payments
I knew I had online payments to make on the 15th. It was a Monday, I got busy, and next thing ya know, I'd missed the cut-off time (3:00 p.m. ET, which is, unfortunately, noon for me on the west coast).
So I was looking at late payment fees on three credit cards that ranged from $22 to $39.
I lamented the loss to a co-worker who said "Call them up and ask them to rescind the charges. Be nice."
I was fine with the calling up piece, but I am not known for always being nice. However, it was worth a try.
I only called two places. The third was handled entirely by e-mail. I was so nice, and so apologetic, it's lucky I didn't go into a diabetic coma
Dang if it didn't work.
I told everyone who responded, including "Robert" with the suspiciously heavy Indian accent, that I knew I was in the wrong and that I had, in fact, made a late payment. Since I was only one day late, and it hadn't happened in the past, and I was a good customer (here, I had my fingers crossed that they looked only at my balances and payment history without noticing that I hadn't charged anything in almost a year), could they please just this once help me out.
When they did help me out, I thanked them profusely.
I saved myself $78.
Of course, I wouldn't have had those charges in the first place if I'd been a tad more prompt with my payments
Tuesday, October 9, 2007
Toilet Paper Economics
Big Sigh.
Kimberly-Clark has announced it will be raising toilet paper prices in January, 2008.
Is there any better indication of creeping inflation?
The problem for those of us already practicing frugality is that there is nowhere to go to avoid these price increases. Well, I guess that's not entirely true--one could always move from 2-ply to 1-ply, but there is a limit to the sacrifices I'm willing to make to save a dollar.
When we already buy generic products, check for the lowest prices, and generally use it up, wear it out or don't buy in the first place, what happens when the lowest prices rise?
This, of course, is the curse always visited upon the poor. There are some items, like toilet paper, that one must buy. And if one's income does not increase at a rate commensurate with what one must buy--well, no wonder the poor keep getting poorer. And the frugal wind up saving less.
Kimberly-Clark has announced it will be raising toilet paper prices in January, 2008.
Is there any better indication of creeping inflation?
The problem for those of us already practicing frugality is that there is nowhere to go to avoid these price increases. Well, I guess that's not entirely true--one could always move from 2-ply to 1-ply, but there is a limit to the sacrifices I'm willing to make to save a dollar.
When we already buy generic products, check for the lowest prices, and generally use it up, wear it out or don't buy in the first place, what happens when the lowest prices rise?
This, of course, is the curse always visited upon the poor. There are some items, like toilet paper, that one must buy. And if one's income does not increase at a rate commensurate with what one must buy--well, no wonder the poor keep getting poorer. And the frugal wind up saving less.
Sunday, October 7, 2007
No Easy Answers, but the Advice Seems Questionable
The Boston Globe presents a money makeover for a 55 year old single school teacher with a son who is a junior in college.
As a single parent in my late '50's I'm drawn to these stories. I wind up measuring my progress against others in my age/financial bracket with similar life circumstances.
Diane's financial situation is serious, but I wonder at some of the advice the counselor is giving her. Initially, he suggests foreclosure on her condominium as a viable option. Really? While it is certainly an option, it appears to me that it would be among Diane's worst choices. Her credit rating is already trashed due to payments she missed while waiting to get on a professional debt-reduction plan. Fortunately, she refuses to consider a foreclosure. Good for her.
Then the financial "expert" suggests that she retire from teaching in order to access her pension funds. He says she can get some other job. This strikes me as crazy. While teachers are in demand, it takes awhile to "grow into" one's position at any given school. I assume she would have to change school districts and possibly even states in order to access the pension if she intends to teach somewhere else. At age 55, I also assume she enjoys teaching as a career. How emotionally healthy would it be to change careers at her age, even if she wanted to? What about health insurance? She would have 18 months of health insurance coverage under COBRA, but only if she can afford the monthly costs. Given that teachers tend to have unusually good health benefits at unusually high costs (for the employer, not the employee), COBRA may be too expensive an option for her.
In the end, the "expert" does give Diane enough ammunition to approach her lenders and secure a two-year moratorium on an interest/payment reset. This is temporary, of course, but in two years, her son will be through with college. One hopes he would be employed and able to help out on any remaining loan payments. At the least, she will have had two years to build up equity in her condominium in the event she has to sell it.
I am no personal finance expert. Part of the reason I read as much in the field as I do, and all of the reasons for having this blog center around the expertise of others. It bothers me to read advice such as that given to Diane--so much of it appears to me to be downright harmful.
How does one wade through it? How does one know who to trust? How does anyone in crisis figure out what the next step is for them?
As a single parent in my late '50's I'm drawn to these stories. I wind up measuring my progress against others in my age/financial bracket with similar life circumstances.
Diane's financial situation is serious, but I wonder at some of the advice the counselor is giving her. Initially, he suggests foreclosure on her condominium as a viable option. Really? While it is certainly an option, it appears to me that it would be among Diane's worst choices. Her credit rating is already trashed due to payments she missed while waiting to get on a professional debt-reduction plan. Fortunately, she refuses to consider a foreclosure. Good for her.
Then the financial "expert" suggests that she retire from teaching in order to access her pension funds. He says she can get some other job. This strikes me as crazy. While teachers are in demand, it takes awhile to "grow into" one's position at any given school. I assume she would have to change school districts and possibly even states in order to access the pension if she intends to teach somewhere else. At age 55, I also assume she enjoys teaching as a career. How emotionally healthy would it be to change careers at her age, even if she wanted to? What about health insurance? She would have 18 months of health insurance coverage under COBRA, but only if she can afford the monthly costs. Given that teachers tend to have unusually good health benefits at unusually high costs (for the employer, not the employee), COBRA may be too expensive an option for her.
In the end, the "expert" does give Diane enough ammunition to approach her lenders and secure a two-year moratorium on an interest/payment reset. This is temporary, of course, but in two years, her son will be through with college. One hopes he would be employed and able to help out on any remaining loan payments. At the least, she will have had two years to build up equity in her condominium in the event she has to sell it.
I am no personal finance expert. Part of the reason I read as much in the field as I do, and all of the reasons for having this blog center around the expertise of others. It bothers me to read advice such as that given to Diane--so much of it appears to me to be downright harmful.
How does one wade through it? How does one know who to trust? How does anyone in crisis figure out what the next step is for them?
Wednesday, October 3, 2007
I Should Be Where? At What Age?
Hazzard, at Everybody Loves Your Money has a nifty chart of what your net worth should be at every age from 21 to 64. As long as we're talking about net worth, it works for me. I'm only a few thousand behind. But I suspect it's really savings Hazzard is talking about. In that case, I'm way off the mark. I should have $580,781 accumulated. Instead, as of this morning, I have $172,009. If I count my rental home, which could be liquidated, that only brings the total up to $309,605.
Sigh.
Sigh.
Sunday, September 30, 2007
Quarterly/Monthly Review
Hmm--maybe I should just stick with the quarterly review this time.
My net worth is up $4483.26 to $559,930.46. This is due primarily to the rally in the stock market this past week [though my 401(K) has not fully recovered to its highest point] and the fact that, according to Zillow, my residence has continued to increase in value. This is puzzling given the static market in my city right now, but since my home is in the $300,000 range, it may be that these homes are still affordable and therefore still in demand.
So, hey! I'm doing good, right?
Umm--well, there IS my monthly financial review. Quarterly, I'm fine. Monthly, not so much.
In spite of putting money toward debt reduction, I put much more onto my HELOCC, with a net result of now being an additional $7562.35 in debt. And, I'm back over $100,000 in total debt, which includes my mortgage. Again.
My goals for the next quarter are to get that debt down to under $100,000, survive Christmas and three daughterly birthdays, and to pay the property taxes on my rental in full (which, if I manage it, will come as a pleasant surprise to the tax department).
My net worth is up $4483.26 to $559,930.46. This is due primarily to the rally in the stock market this past week [though my 401(K) has not fully recovered to its highest point] and the fact that, according to Zillow, my residence has continued to increase in value. This is puzzling given the static market in my city right now, but since my home is in the $300,000 range, it may be that these homes are still affordable and therefore still in demand.
So, hey! I'm doing good, right?
Umm--well, there IS my monthly financial review. Quarterly, I'm fine. Monthly, not so much.
In spite of putting money toward debt reduction, I put much more onto my HELOCC, with a net result of now being an additional $7562.35 in debt. And, I'm back over $100,000 in total debt, which includes my mortgage. Again.
My goals for the next quarter are to get that debt down to under $100,000, survive Christmas and three daughterly birthdays, and to pay the property taxes on my rental in full (which, if I manage it, will come as a pleasant surprise to the tax department).
Thursday, September 27, 2007
Where's the Middle in Middle Class?
Bluebird, over at Hedonic Adjustment has an interesting post on retirement savings (or lack thereof) by middle class folks like me.
Or not.
Bluebird thinks that his is a typical middle-class family. He's 45 and makes around $100,000. I dunno about that. Maybe it's because he lives on the east coast, where family homes sell for $400,000. But while he's middle-class, I don't think his income is typical.
I reside in the Pacific Northwest. Housing prices have soared here, as they have everywhere else. But no one I know considers $400,000 a median price for a family home. If we wanted to pay that much, we'd move to California!
Personally, I'd say that most middle income families around here are making about $60,000 a year, and that's often with two incomes. Is this just my working-class roots showing? Or am I running with a low-income crowd?
Or not.
Bluebird thinks that his is a typical middle-class family. He's 45 and makes around $100,000. I dunno about that. Maybe it's because he lives on the east coast, where family homes sell for $400,000. But while he's middle-class, I don't think his income is typical.
I reside in the Pacific Northwest. Housing prices have soared here, as they have everywhere else. But no one I know considers $400,000 a median price for a family home. If we wanted to pay that much, we'd move to California!
Personally, I'd say that most middle income families around here are making about $60,000 a year, and that's often with two incomes. Is this just my working-class roots showing? Or am I running with a low-income crowd?
Monday, September 24, 2007
Carnivals for Mean Folks
That last post of mine shows up in two carnivals, this week, The Carnival of Personal Finance and The Carnival of Debt Reduction.
There are a lot of nice people there, too, with posts that are well worth reading.
There are a lot of nice people there, too, with posts that are well worth reading.
Saturday, September 22, 2007
Mean Ole Grace
Although I've tried to convey a portrait of myself as a sweet, kind middle-aged spendthrift trying hard to reform, there's another darker side to Grace.
It all started with my second daughter.
As I explained in an earlier post, I have a 31 year old emotionally disturbed child. She has never been employed for longer than two weeks, and receives SSI. She does live on her own and has since she turned 18.
Now why any creditor in his or her right mind would give this child a credit card boggles the mind. But they have. Over and over.
Credit card companies send solicitations. My daughter responds. Voila! She has a card which she then uses to the max. What she doesn't do is pay the bills. Ever.
Because she moves a lot and switches phone numbers a lot, she has a tendency to give my telephone number as her contact number. The end result is a number of telephone calls to my landline from various debt collectors.
In the beginning, it was annoying. Debt collectors start calling right after 8:00 a.m. and call into the evening. They are particularly fond of the dinner hours.
But then my youngest daughter started having some fun with it, and dang, if I didn't join her.
At first, if the collector asked for my errant adult daughter, we'd say "Just a moment," put the phone down and walk away.
Then, my youngest child got good at a plausible but totally made up foreign language where she appeared to be giving the caller another number to reach their quarry. "Vey, Vey, Vey,..." "Is that three, three, three?" "Nikto! Vey, Vey, Vey. . ." "Um, do you mean two, two, two?" "Nikto! Vey, Vey, Vey. . ."
My specialty is the phony mechanical voice. A large number of calls begin with a pre-recorded message: "Please stay on the line for an important call." So I wait, and when a human being finally picks up, I say, in my best disembodied voice: "Please stay on the line for an important call." I repeat this a couple of times, and then start singing "Memories." Badly.
That led one collector to start laughing. Since then, our goal has been to make all the collectors laugh. Most don't--they just sound confused and then they hang up. Although one said to someone else apparently in the next cubicle, "Come listen to this--it's the weirdest thing!"
My daughter's new favorite is to pretend she's looking for the debtor as well, because the debtor stole her boyfriend. She gets very aggressive, demanding that the caller tell her any addresses or phone number the caller might have for "that slut." The last time she tried it, the caller patiently told her for the Nth time that she couldn't give out the address, and that this was the only number they had. But then ended the conversation with "Honey, you can find yourself a better guy than that. Just let it go."
My daughter thinks we'd have even more fun if I'd let her swear. But I told her that wasn't fair to the minimum wage employees sitting in a cubicle making call after futile call. I suppose our jokes aren't fair either, but by this time, I figure they deserve it. We tried telling them my older child wasn't at this number, but because I was unwilling to give them a better number, they never stop calling.
And this middle aged lady has to get her kicks wherever she can find them!
It all started with my second daughter.
As I explained in an earlier post, I have a 31 year old emotionally disturbed child. She has never been employed for longer than two weeks, and receives SSI. She does live on her own and has since she turned 18.
Now why any creditor in his or her right mind would give this child a credit card boggles the mind. But they have. Over and over.
Credit card companies send solicitations. My daughter responds. Voila! She has a card which she then uses to the max. What she doesn't do is pay the bills. Ever.
Because she moves a lot and switches phone numbers a lot, she has a tendency to give my telephone number as her contact number. The end result is a number of telephone calls to my landline from various debt collectors.
In the beginning, it was annoying. Debt collectors start calling right after 8:00 a.m. and call into the evening. They are particularly fond of the dinner hours.
But then my youngest daughter started having some fun with it, and dang, if I didn't join her.
At first, if the collector asked for my errant adult daughter, we'd say "Just a moment," put the phone down and walk away.
Then, my youngest child got good at a plausible but totally made up foreign language where she appeared to be giving the caller another number to reach their quarry. "Vey, Vey, Vey,..." "Is that three, three, three?" "Nikto! Vey, Vey, Vey. . ." "Um, do you mean two, two, two?" "Nikto! Vey, Vey, Vey. . ."
My specialty is the phony mechanical voice. A large number of calls begin with a pre-recorded message: "Please stay on the line for an important call." So I wait, and when a human being finally picks up, I say, in my best disembodied voice: "Please stay on the line for an important call." I repeat this a couple of times, and then start singing "Memories." Badly.
That led one collector to start laughing. Since then, our goal has been to make all the collectors laugh. Most don't--they just sound confused and then they hang up. Although one said to someone else apparently in the next cubicle, "Come listen to this--it's the weirdest thing!"
My daughter's new favorite is to pretend she's looking for the debtor as well, because the debtor stole her boyfriend. She gets very aggressive, demanding that the caller tell her any addresses or phone number the caller might have for "that slut." The last time she tried it, the caller patiently told her for the Nth time that she couldn't give out the address, and that this was the only number they had. But then ended the conversation with "Honey, you can find yourself a better guy than that. Just let it go."
My daughter thinks we'd have even more fun if I'd let her swear. But I told her that wasn't fair to the minimum wage employees sitting in a cubicle making call after futile call. I suppose our jokes aren't fair either, but by this time, I figure they deserve it. We tried telling them my older child wasn't at this number, but because I was unwilling to give them a better number, they never stop calling.
And this middle aged lady has to get her kicks wherever she can find them!
Friday, September 21, 2007
Maybe a Banker Could Explain This to Me?
Perhaps it is because I don't understand the world of high (or low, for that matter) finance, but Bank of America does something that I don't understand: The tellers refuse to cash or deposit any third-party checks (the kind that are written to someone else, that someone else signs it over to me, and we both sign the back of the check). Yet, if I leave the bank, go outside to their ATM machine and deposit the same check, Bank of America accepts it, credits it to my account and doesn't give me any grief.
My 22 year old daughter doesn't have a local bank account so, for the time being, she signs her checks over to me. I write her a check on my account (which B of A will cash for her) and then I deposit the "third party" check.
Today, I was conducting a number of financial transactions at Bank of America, and momentarily forgot the teller wouldn't take the third party check. Sure enough, he wouldn't even though I pointed out that they did accept them through the ATM.
He shrugged.
So I completed the other transactions, walked over to their ATM and deposited the third party check.
It's not that much trouble to do, but tell me again how this makes any sense?
My 22 year old daughter doesn't have a local bank account so, for the time being, she signs her checks over to me. I write her a check on my account (which B of A will cash for her) and then I deposit the "third party" check.
Today, I was conducting a number of financial transactions at Bank of America, and momentarily forgot the teller wouldn't take the third party check. Sure enough, he wouldn't even though I pointed out that they did accept them through the ATM.
He shrugged.
So I completed the other transactions, walked over to their ATM and deposited the third party check.
It's not that much trouble to do, but tell me again how this makes any sense?
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