- RT @ScottATaylor: Get a Daily Summary of Your Friends’ Twitter Activity [FREE INVITES] http://bit.ly/4v9o7b #
- Woo! Class is over and the girls are making me cookies. Life is good. #
- RT @susantiner: RT @LenPenzo Tip of the Day: Never, under any circumstances, take a sleeping pill and a laxative on the same night. #
- RT @ScottATaylor: Some of the United States’ most surprising statistics http://ff.im/-cPzMD #
- RT @glassyeyes: 39DollarGlasses extends/EXPANDS disc. to $20/pair for the REST OF THE YEAR! http://is.gd/5lvmLThis is big news! Please RT! #
- @LenPenzo @SusanTiner I couldn’t help it. That kicked over the giggle box. in reply to LenPenzo #
- RT @copyblogger: You’ll never get there, because “there” keeps moving. Appreciate where you’re at, right now. #
- Why am I expected to answer the phone, strictly because it’s ringing? #
- RT: @WellHeeledBlog: Carnival of Personal Finance #235: Cinderella Edition http://bit.ly/7p4GNe #
- 10 Things to do on a Cheap Vacation. https://liverealnow.net/aOEW #
- RT this for chance to win $250 @WiseBread http://bit.ly/4t0sDu #
- [Read more…] about Twitter Weekly Updates for 2009-12-19
Invisible Cushion
Earlier this year, we experimented with abandoning the strict budget in favor of automating as much as possible on our credit card, and keeping our discretionary spending under control, but on the same card.
We failed. It was 2 parts lack of communication, 3 parts lack of discipline, and 1 part “we’re dumb”. Transitioning back to cash hasn’t been that smooth. The problem is that we went over budget for a couple of months and our renewed budget had to shrink to cover the credit card.
To recap: Coming off a few months going over budget, we had to tighten our belts even more than we had before…after breaking our good habits.
It didn’t work out well.
If one of us forgot to grab cash, we’d just charge whatever we were buying, which gave the month’s budget a spanking, every time.
Last month, I added a new category to our budget. It’s just a cushion. I’ve got $200 whose sole purpose is to make sure we don’t go over budget.
But there’s a secret.
The cushion is a secret.
I’m not a fan of hiding money from my wife, but I’m hiding this. Generally, I think that money and relationships and secrets don’t mix.
However…
She’s told me that, when she knows there’s extra money, she has an urge to spend it. If I told her there was an extra $200, she would spend it. If I tell her that we have $40o to cover our discretionary spending, and she goes over by $50, we’re still $150 to the good, which leaves me room to have lapses in discipline or memory, too.
Then, at the end of the month, any of the invisible cushion that is left over can get applied to our debt payments.
This system should let us keep rolling, with less stress and fewer arguments, while still helping us get rid of our remaining debts. The biggest flaw is the secret. I’m bad at keeping secrets from my wife, especially about things that affect both of us, but if i let it slip, the invisible cushion will go away.
What do you think? Am I a jerk for hiding part of our budget? Do you hide anything about your finances?
My Financial Life
My financial life right now is boooring.
And that’s a good thing.
When I started this site I was $90,000 in debt, and considering bankruptcy. I’d just started on the Dave Ramsey plan and was looking for every possible way to scrape up any extra money I could.
Now, the debt is nearly gone.
- I’m looking at the last $8000 on my mortgage. I have enough in savings to pay it off today, without draining my savings completely dry.
- My IRA gets maxed out every year, and this year, my wife’s will be, too.
- We save or invest about 30% of our income.
- My credit score according to CreditKarma.com is 826.
Our credit card is almost paid off every month. There’s occasionally some overlap between our auto-payment and our charges. And sometimes the budgeted auto-payment doesn’t match the reality of our spending and I don’t notice for a week or two. Except for the end of last year, but that’s a post for another day.
The short version is: We’re doing well, and we’re nearing the end of our financial problems.
Our scheduled mortgage over-payments will have it completely paid off in October. Then we are debt-free and can hopefully manage to live the rest of our lives without paying interest on money that isn’t earning us more than we are paying. For example, I’m willing to take out a mortgage to buy another rental property, but I’m going to wait to do that until our current mortgage is paid and we have a substantial down payment ready.
No debt.
I’m not kidding when I say it’s been a long 6 years of fighting our debt. Counting a car loan we got and paid early, we’ve paid more than $110,000 of debt in six years.
I’ve run side businesses, aggressively negotiated raises, and left companies(voluntarily and otherwise) for better pay & benefits.
I’ve watched friends and family take vacations around the world.
I’ve turned my kids down for so many things that I would love to buy them, but couldn’t because being financially secure is a much higher priority than spoiling children. Try explaining that to a 6 year old.
And now, the debt-ridden part of our financial journey is almost over. Finally.
So what’s next?
I have no idea. I’d like to travel more. Linda and the girls want us to move to a hobby farm and get horses. We want more rental properties.
Whatever “next” is, it will be done from a position of strength that won’t destroy our financial world or put out futures at risk.
How You’re Finding Me
Every once in a while, I like to dig through Google Analytics and see how people are finding this site. Some of the search terms are interesting.
“father of three” mid life crisis
Here’s a free piece of advice. As a father of three, you don’t get to have a mid-life crisis. It’s not allowed. Rather, it’s allowed, but you aren’t allowed to act on it. At a minimum, until your children are out of the house, you need to man up and provide all of the support you possibly can. No sports cars you can’t afford and no 22 year old hardbodies. Be there for your kids.
“payday loans” which accepts guest posts
Payday loan marketing. Just go away. You aren’t running a guest post here.
“slow carb” hungry all the time
You’re doing it wrong. If you are hungry, eat more bacon. Or beans. Beans fill you up longer.
$1000000 business idea
Ideas are the easy part. Execution makes you a millionaire.
articles on why appearance shouldn’t matter?
Appearances do matter, and always will. Your appearance is what makes the initial impression when you meet someone new. You don’t have to be a model, but basic grooming and fashion sense is necessary. Take this with a grain of salt. I’ve got a week’s growth of a beard and I wear a different plaid, button-down shirt every day.
are push ups supposed to be hard
Only the first 50. After that, I kind of go on blissed-out autopilot. If you can do 100 pushups, you can probably do 200.
acceptable place to put tattoo
If you wear clothes there, you can put a tattoo there. Visible tattoos are called “job stoppers” for a reason. If you put a tattoo on your face, the only job you qualify for is “drug dealer’s girlfriend”. Or possibly prison janitor.
burning bridges with toxic people
If you must burn bridges, filling them with toxic people first isn’t a bad idea.
candied pork butt
Rule 34: If it exists, there is porn of it. Interesting side story: while double-checking the rule number, I stumbled across My Little Ponies doing things they never advertise on the box.
cut my wife’s hair
I did this once. Pro tip: In the back, at the bottom, cut small chunks and leave them longer than you think they should be. You can always cut more, but uncutting hair is really hard.
f***** on the roadside by your mechanic
He probably deserves a tip for that.
girls fart for money and girls live farts
See the bit about the pork butt, remove the funny, and…ewww.
how to be a successful debtor
I recommend starting by paying your bills. When the debts are gone, you win. Success!
i ate bacon on slow carb diet
So did everyone else, sweetie. It’s the biggest draw to the slow carb diet.
in memory of pets tattoos
When I get a pet, I get it with the understanding that I’m going to outlive it. The day I bring it home, some small part of me is preparing for the day when I have to dig a hole in my backyard. Tattooing that day? Not gonna happen.
thickening felt behind testicle
Why are you on google? Go to the doctor. Please?
Interesting. Between girls farting and my post about being well-trained, there is a significant amount of fetish traffic coming through here. Maybe I need to explore a new advertising strategy.
Selling on Craigslist
The vast majority of personal finance websites(including this one) focus on reducing your bottom line–cutting costs. The other end of the budget is at least as important. Have you tried raising your top line lately? Have you picked up a side hustle, sold an article, put ads on a website, or even sold some of your stuff? After we had our garage sale a few weeks ago, we were left with some furniture that was too nice to donate or discard, so we decided to sell it on Craigslist.
The key to selling your stuff on Craigslist is taking pictures. They don’t have to be good pictures, just something to let your customers know what they are getting. Take pictures, post the measurements and, if it’s electronic, the model number. Beyond that, a simple description will suffice.
Be safe when you are posting the listing. Don’t give your address and don’t post when you will be home. That’s just a job offer for burglars. When you talk to a potential buyer, never tell them there is nobody home. Tell them your roommate is the only one home and he doesn’t want to deal with the sale. Don’t give strangers on the internet an opportunity to rob you.
When you are meeting a buyer, pick a public place away from home, if at all possible. If you are selling furniture, it may not be possible, but it is for smaller items. Meeting in a busy gas station parking lot or even in front of the police department is a good way to stay safe. Secondary crime scenes are nasty things and inviting the wrong stranger in is offering one ready-made.
[ad name=”inlineleft”]Bring a friend. Preferably, an intimidating friend. Crime is less likely to happen if there is more than one person there. Bring a friend to a public place to meet the buyer to maximize your safety.
Don’t get ripped off. Craigslist scams abound. Bad checks, forged checks, and shipping scams are just some of the problems.
Only accept cash. It’s hard to forge a greenback.
One of the most common scams, after a bounced check, is the cashier’s check scam. You’ll get an email saying the item is great and payment is on the way. When the check clears, a relative of the buyer will come to pick up the item. Then, oops, their secretary made the check out for $3000, instead of $300. Would you mind sending the overpayment back by Western Union, minus $100 for your troubles? First sign of trouble: over-complicating a simple transaction. Second sign: not using cash. The cashier’s check will be forged. There is no way to verify funds on a cashier’s check, and the bank will post it as available well before it comes back bad. You will be able to spend the money, only to have the money disappear later. That means you can’t wait to see if the check clears before wiring back the overpayment. There is no way to recover your money.
If you get a response that includes a link, do not click it! Ever. No matter what the link looks like. Ever. No clickyclicky. It may be an innocuous link to your ad, but the link can be masked. Any other link is almost definitely a link to a virus-ridden website. Repeat after me: No clickyclicky.
If you get an email about Craigslist transaction protection or escrow, you are being scammed. Run away.
Craigslist can be great way to turn your junk into cash, but only if you actually get the cash. Keep yourself safe and scam-free.
Cutting Healthcare Costs
It’s not a secret that health care can be expensive. Many people pay two and three digit bills for their prescriptions. A visit to the doctor’s office can hurt the budget. Glasses cost hundreds of dollars? How can you cut this cost?
Drugs
If possible, go generic*. There is no difference between Trazorel and trazadone, aside from the cost. Wal-mart, Target, and many other stores offer common generic prescriptions for $4-5. When you are talking to your doctor, ask if there is an drug option that has an available generic. When you are talking to your pharmacist, ask if there is a generic alternative available.
Get the price match. The Cub Foods pharmacy near me matches the Target generic drug price, giving us $4 generics for the asking. This is often an unpublicized deal, so make sure you ask. If your pharmacy will not match nearby prices, consider going elsewhere.
See if there is a 90 day plan. Many insurance companies sponsor a 90 day prescription plan that gives you a 90 supply of drugs for the 60 costs as long as you are willing to accept the drugs by mail. For expensive prescriptions, this 33% discount can be a substantial savings.
Physician
Does your clinic offer online consultations with your doctor or nurses? Some clinics offer a chat or email option to talk to your doctor without requiring a visit that will add fees and copays to your expense sheet. Most clinics and hospitals have a free nurse line for basic questions, like “When is my baby‘s fever dangerous?” It’s a great chance to save some money. I know, from personal experience, that they won’t be shy if they feel you need to come in, but they generally won’t try to convince you to come in if aspirin will fix the problem.
Stay in-network. Check with your insurance company to make sure the doctor you want to see if in your network and therefore, available at the cheapest out-of-pocket price. If not, and you really want that doctor, ask your insurance company if they accept nominations for the network and ask your doctor if he’d be interested in being nominated.
Stay home for your cold. Don’t go to the doctor for every minor problem. The best remedy a doctor can give your for your cold will reduce it to a seven day malady. On the other hand, if you do nothing, it will go away in about a week. Why waste the money? This counts double for the emergency room and urgent care. Strep throat is not an emergency. Wait until morning and go to the clinic, paying the lower fees instead of the large ER costs. Make an appointment for a doctor visit, if possible. Urgent care is billed the same as a regular visit, but most insurance plans double or triple the copay for urgent care visits.
Cash Flow
A Health Savings Account(HSA) is a pre-tax account to save for qualifying medical expenses similar to a Flexible Savings Account(FSA). The main differences are that HSAs are only available for people with high-deductible insurance plans and do not have to be spent on medical expenses. Non-qualifying expenses move from pre-tax to post-tax, meaning you will be charged federal income tax for non-qualifying withdrawals. FSAs are “use it or lose it” plans. If you don’t use it, it will go away, usually at the end of the year. That makes December a great time to stock up on over-the-counter medicines and possibly replace your eyeglasses, as both of those are qualifying expenses. Find out if you have either option available. If you use either one, set aside a place to store every imaginable medical receipt, so you can be reimbursed. Make sure you understand the FSA-eligible expenses.
An Ounce of Prevention
Get routine checkups. The earlier you find a problem, the more options you have. This goes for everything from cancer screenings to blood tests. Get a physical every year and know what is happening with your body. We may be living in the future, but replacement parts are still hard to come by.
Maintain Your Health
It’s cheaper to be healthy. Eat right, exercise, quit smoking.
I enjoy a good meal. It’s one of my favorite things. I won’t cut rich foods out of my diet, so we reduced portions. Beyond the first few bites, the flavor isn’t nearly as enjoyable or even noticeable. There’s no more enjoyment for huge servings than small ones.
Get more exercise, even if it’s just a 2o minute walks twice a week parking on the far side of the parking lot, or taking the stairs instead of the elevator.
Vision
Go online. This one is worth a write-up all by itself. I have 6 pairs of prescription glasses–all varieties of frames and coatings–that have cost a grand total of about $150. There is no noticeable difference between my cheapies and the designer alternatives. While I work on the write-up, the best site to introduce you to the concept of online glasses is GlassyEyes. Reviews, coupons, and discount likes. They have step-by-step instructions on turning an intimidating idea into a simple and cheap solution to an expensive problem.
How do you save money on health care?
* There are no generics available on new drugs until the initial patent expires. This gives the pharmaceutical companies a change to recoup their research and development costs. Without this patent period, new private drug research would evaporate. Don’t hate the brand names, but don’t show undue loyalty.
