Live Real, Now

The no-pants guide to spending, saving, and thriving in the real world.

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Automatic Everything

Finance

In an effort to simplify my finances, I’ve automated every bill I have.  For years, I resisted, fearing a lack of control over my money.   A few months ago, I re-examined the bill paying options on my bank’s website and changed my mind.  This is one thing that USBank has done right.

The first thing I did was set a budget. Without a budget, it’s not possible to let your money take care of itself.   I did this months before I decided to automate.

All of the bills that offer a budget plan–a plan that averages your payments to avoid fluctuation–went on the plan.    It means I do overpay some months, but it also means I get to underpay some months.  Most important, I always know what will be due.   These bills were scheduled in the bank’s online bill paying system as is, along with the rest of the bills that do not fluctuate.

All of the bills that do fluctuate went in to the bill paying system at their highest level.  For example, I don’t pay for text messaging on my cell phone.  Some months, I send and receive text messages.  I pay my cell phone bill assuming that there will be a few messages.  This is slowly building a credit on my account.  If I don’t use all of the credit, I will get to skip a month of payments sometime next year.

I keep track of all of this using Quicken.  Every one of these bill is in the calendar.  They are all scheduled to be entered into the register on the first of the month, to post of the actual day of payment.   This lets me see, at a glance,  my cash flow for the entire month.

But wait!  What about the non-monthly payments, you ask? They are also in Quicken, broken into monthly line items.   There’s a “Set aside for property taxes” item, a “Set aside for web host” item, and a few other items.

My time to maintain this has been reduced to comparing the bills to the bill-paying system every other week.  At the same time, I consolidate all of the “set asides” so I don’t have 10 property tax entries when one will do.

I know this is an inefficient method of saving money, but my goal isn’t to save money, it’s automating money and removing one layer of stress from my life.  It has transformed bill-paying from an hour or two per week to 20 minutes, twice per month and very little stress.

Twitter Weekly Updates for 2010-04-17

Misc

  • RT @kristinbrianne: Get Talk and Txt Unlimited Cell Svc w/ Free Phone for $10 per month by joining DNA for Free. http://tinyurl.com/yyg5ohn #
  • RT: @ChristianPF is giving away an iPod Touch! – RT to enter to win… http://su.pr/2LS3p5 #
  • 74 inch armspan and forearms bigger than my biceps. No, I don't button my shirt cuffs. #
  • RT @deliverawaydebt Money Hackers Network Carnival #111 – Don't Hassel the Hoff Edition http://bit.ly/9BIAvE #
  • @bargainr What would it take to get you to include me in the personal-finance-bloggers list? #
  • Working on a Penfed application to transform my worst interest rate into my best. #
  • Gave the 1 year old pop rocks for the first time. Big smiles. #
  • @Netflix @Wii disc works well and loads fast. Go, go gadget movie! #

Saturday Roundup

Life, Misc

Jack-o-latern
Image via Wikipedia

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Day 18  of the 30 Day Compact.  We’re doing well, but not perfect.  My cousin is getting married next week, and I’m not going to buy used for that.  That makes it 1 purchase so far this month, not counting food or consumable hygiene items.   That’s not too bad!

The Best Posts of the Week:

Yahoo put 1000 computers to work for 23 days and found that the 2 quadrillionth digit of pi is 0.  Just for the geek of it.

If you are habitually late, you are rude and selfish.  Don’t leave other people waiting for you.

Just letting my inner survivalist out for a minute:  Always watch what’s going on around you and don’t put yourself in a situation that makes you an easy victim.   I strongly recommend a “Refuse to Be a Victim” class for everyone, especially–to let out my inner chauvanist–women.

For Halloween this year, I think I’m going to go as sexy Big Bird.

And finally, how much of your weekly 168 hours are you wasting?

Finally, a list of the carnivals I’ve participated in:

Nada.   I forgot to submit any posts to any carnivals last week.  I’m a sad clown.

The Magic Toilet

Finance

Funny Toilet #1
Image by tokyofortwo via Flickr

My toilet is saving me $1200.

For a long time, my toilet ran.  It was a nearly steady stream of money slipping down the drain.  I knew that replacing the flapper was a quick job, but it was easy to ignore.  If I wasn’t in the bathroom, I couldn’t hear it.  If I was in the bathroom, I was otherwise occupied.

When I finally got sick of it, I started researching how to fix a running toilet because I had never done it before.  I found the HydroRight Dual-Flush Converter.  It’s the magical push-button, two-stage flusher.   Yes, science fiction has taken over my bathroom.   Or at least my toilet.

I bought the dual-flush converter, which replaces the flusher and the flapper.  It has two buttons, which each use different amounts of water, depending on what you need it to do.   I’m sure there’s a poop joke in there somewhere, but I’m pretending to have too much class to make it.

I also bought the matching fill valve.  This lets you set how much water is allowed into the tank much better than just putting a brick in the tank.   It’s a much faster fill and has a pressure nozzle that lies on the bottom of the tank.  Every time you flush, it cleans the inside of the tank.  Before I put it in, it had been at least 5 years since I had opened the tank.  It was black.  Two weeks later, it was white again.  I wouldn’t want to eat off of it, or drink the water, but it was a definite improvement.

Installation would have been easier if the calcium buildup hadn’t welded the flush handle to the tank.   That’s what reciprocating saws are for, though.  That, and scaring my wife with the idea of replacing the toilet.   Once the handle was off, it took 15 minutes to install.

“Wow”, you say?  “Where’s the $1200”, you say?  We’ve had this setup, which cost $35.42, since June 8th, 2010.   It’s now September.   That’s summer.  We’ve watered both the lawn and the garden and our quarterly water bill has gone down $30, almost paying for the poo-gadget already.   $30 X 4 = $120 per year, or $1200 over 10 years.

Yes, it will take a decade, but my toilet is saving me $1200.

What is a Mechanic’s Lien?

Finance

Newspaper Ad for the Carbolic Smoke Ball Company
Image via Wikipedia

When you hire someone to work on your property or provide material to build or improve it, they are entitled to get paid.   A mechanic’s lien is the method of enforcing that payment.

Here is what you need to know about mechanic’s liens.

A contractor must usually give you written notice of intent to file a lien if the contract isn’t paid.  He needs to do this within a short time of beginning the work.   The notice will include text to the effect that subcontractors also have the right to file a lien if they are not paid.  This notice gives you two methods of defense: You can pay the subcontractors directly and withhold that amount from the payment to the contractor, or you can withhold the final payment until you have received a lien waiver from each of the subcontractors.

If the notice isn’t given correctly, the contractor forfeits his right to file a lien.  Also, in most places, if a contractor is supposed to be licensed to do the work, but isn’t, he’s not able to file a lien.

Subcontractors must also provide notice on intent within about 45 days–depending on the state–of the time they first provide services or material, or the lien is not enforceable.

Protecting Yourself

First, you only have to pay once. If you pay the contractor in full before getting the notice of intent from the subcontractors, you can’t be forced to pay again.

Next, make the contractor provide a list of all subcontractors and keep track of any notices of intent you get.  Get lien waivers from everyone involved before you make the final payment to the contractor.

Finally, you have the rights defined in the notice of intent to file a lien.  You can either pay the subcontractors directly, or you can withhold the final payment until you receive lien waivers from each subcontractor.

Resolution

The lien holder has 120 days to file the lien and 1 year to enforce it.   Enforcing simply means that it a suit has been filed.  Once that happens, you can either pay the contractor, attempt to settle with the contractor, or you can take the contractor to court to determine the “adverse claims” on your property.   There aren’t too many choices at this point.

Do yourself a favor and get lien waivers before you make the final payment on any work done on your property.

Budget Lesson, Part 1

Finance

Sample <a href=budget” width=”300″ height=”185″ />
Image via Wikipedia

Over the next few weeks, I will be going over my budget in detail.

The first section is income, but that’s straightforward.  A line for each income source, bi-weekly, monthly and annual totals.  Simple.

Before we start, a word on the organization.  There are five columns:

  • Category – This is the description of the line item.
  • Cost – How much do you pay for this item?
  • Time – What is the frequency of the payment?  Valid values are ‘m’, ‘q’, ‘y’, ‘w’ for ‘Monthly’, ‘Quarterly’, ‘Yearly’ and ‘Weekly’.
  • Monthly – Cost and Time are combined to calculate the monthly expense, to make it possibly to budget.  If this is $100, I need to set aside a C-Note each and every month to make the payment when it comes due.
  • Yearly – This column is mostly informative.  It’s helpful to see this in comparison to my annual pay.

The first section I am actually going to address is discretionary spending.

  • Groceries/Dining    $475.00 – We don’t budget heavily for groceries, which would be a surprise if you saw me.  At the smallest I have ever been, fit, I was never small.  We shop smart, buy in bulk when it makes sense, and rarely eat out.  We also keep cooked rice and beans in containers in the refrigerator as a cheap and healthy way to stretch almost everything we eat.
  • Discretionary    $250.00 – This gets used for household items, like toilet paper and soap.  It also get used for the odd book or movie, or to cover the gaps between the other categories and reality.
  • Baby stuff    $60.00 – We have two children in diapers.  ‘Nuff said.  This category does get progressively smaller as the baby items are outgrown and the children get potty-trained.
  • Gas/oil    $200.00 – Gas and auto-maintenance.  This is actually higher than monthly costs, allowing us to set some aside for larger maintenance issues.
  • Clothes    $15.00 – All of our dressers are overflowing, so this is strictly replacement cost for the time being.  Our kids wear a lot of hand-me-downs.
  • Blow Money    $50.00 – Occasionally, habitual shoppers need to shop.  If they don’t do it on-budget, they will do it off-budget and kill the whole idea.

Initially, we used a “virtual envelope” system.  We had a spreadsheet and every time something was spent in this category, we entered the amount and stopped when the category was spent.   Didn’t work.  We are going on a pure, cash-only system as of the first of the year.  No money, no spendy.