- RT @ramseyshow: RT @E_C_S_T_E_R_I_: "Stupid has a gravitational pull." -D Ramsey as heard n NPR. I know many who have not escaped its orbit. #
- @BudgetsAreSexy KISS is playing the MINUTE state fair in August. in reply to BudgetsAreSexy #
- 3 year old is "reading" to her sister: Goldilocks, complete with the voices I use. #
- RT @marcandangel: 40 Useful Sites To Learn New Skills http://bit.ly/b1tseW #
- Babies bounce! https://liverealnow.net/hKmc #
- While trying to pay for dinner recently, I was asked if other businesses accepted my $2 bills. #
- Lol RT @zappos: Art. on front page of USA Today is titled "Twitter Power". I diligently read the first 140 characters. http://bit.ly/9csCIG #
- Sweet! I am the number 1 hit on Ask.com for "I hate birthday parties" #
- RT @FinEngr: Money Hackers Carnival #117 Wedding & Marriage Edition http://bit.ly/cTO4FU #
- Nobody, but nobody walks sexy wearing flipflops. #
- @MonroeOnABudget Sandals are ok. Flipflops ruin a good sway. 🙂 in reply to MonroeOnABudget #
- RT @untemplater: RT @zappos: "Do one thing every day that scares you." -Eleanor Roosevelt #
Sammy’s Story, Part 2
For those of you not following along, please read the previous installment of Sammy’s Story. The short version is that we’re thinking about helping someone launch a small business and put “at risk” teenagers and young adults to work.
Sammy called me a couple of days ago. He wanted to discuss working for some of the tools and toys he saw at my mother-in-law’s house and he said he had something to show us. When I picked him up, he had a leather portfolio-style notebook and looked excited.
When we got to the house, he opened up his notebook and handed me two pieces of paper. He said that the idea of being able to launch his business had him so excited that he couldn’t not do anything. He had handed me a landscaping plan and materials list for fixing my mother-in-law’s yard.
We talked about the landscape plan, the business plan, and my wife’s old skateboard, then he had to go. Last night was one of the nights he met “his” kids at a community center.
On the way to the community center, we stopped by his apartment, because he wanted to show me pictures of his kids, and his grandkids, and his foster mother. He told me about his mother dying when he was 13 and his father dropping him with an aunt before disappearing. He was nearly in tears when he asked how some strange white guy could see more in him than his own family did.
He told me about how the money he made working with me had put food on the table of the 14 year old he brought with–a 14 year old who is eager to work more. It paid the weekly rent for one of the other workers and contributed to the rehab of Sammy’s ex. The little bit we’ve done has already touched the lives of dozens of people.
We talked about the way he hates rap. Not because of it’s musical value, but because it’s building a culture that considers women to be nothing but “bitches and hoes” while convincing kids that the only way they can improve their situation is to land a recording contract. Those are the kids he wants to teach to take care of themselves and build their own lives.
Finally, he asked me for my honest opinion about his landscaping plan.
I said, “Sammy, that clinched the deal. I was leaning towards helping you, but now it’s definite. I know you’re serious, so we’re going to make this happen.”
He’s got no idea how to handle taxes, payroll, or insurance, and he has no tools, but we’re going to jump in with both feet.
Net Worth Update
Welcome to the New Year. 2013 is the year we all get flying cars, right?
Here is my net worth update, along with the progress we made over the course of 2012.
As you can see, our net worth contracted by about $11,000. Part of that difference is due to selling our spare cars and–against my better judgement–taking payments with a lien on one of them. That is supposed to be paid off within a couple of months. If not, I’ll play repo man again.
The other part of the difference is in the final preparations for our rental property. The only things left to do are sanding and polishing the hardwood floors and cleaning the living room carpet. The final push to get to this point cost some money. All told, we’re nearly $30,000 into getting the house ready to rent. For the naysayers who think we should have sold it, we would have spent more getting it ready to sell.
Other than that, we’re not doing poorly. Our credit card is still being paid off every month and our mortgage is shrinking. If things continue to go well, we’ll have our truck paid off in a couple of months and the mortgage by mid summer.
Budget Lesson, Part 1
budget” width=”300″ height=”185″ />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.
Rebates Suck
About a month ago, I bought a new laptop.
The old one still works, but it’s kind of slow, and kind of in demand, especially when Kid #1 has friends over. When I need to get on the computer and whip up some side-hustle money, I shouldn’t have to fight with kids and deal with the whiny “Are you done, yet?” every 10 minutes.
This wasn’t a spur-of-the-moment purchase. Since the old laptop still worked, we had quite a bit of time to find the new one, so I started watching sales. And I waited.
Eventually, I found a great deal. I got a much bigger/faster/smarter/nicer laptop for about $375 with tax. There was a sale, a coupon code, and a rebate all in play to make that happen.
I don’t mind coupons and sales. In fact, I am a fan.
Rebates, however, irritate me.
It shouldn’t have been bad. After all, I was going to Staples, home of the Easy Button®. I should have been able to go home, fire up their website, fill out a form, and get my money in a couple of weeks, right?
Grr.
Apparently, the easy rebate doesn’t apply to the good rebates. If you’re getting $1.05 back on a $100 printer, you can do it in a few clicks. But if you’re getting $50 back on a $400 laptop, watch out. Then, Staples has the same horrible rebate process as everyone else. Print the forms, peel off the UPC label, snail-mail it to the middle of nowhere and wait 4 to 100 months for a gift card.
Double grr.
Obviously, they are hoping a statistically significant percentage of their customers forget to claim their money.
Shady rebate garbage.
Rebates are a marketing ploy to convince customers they are getting a sale, while hoping the customer forgets to ask for the sale price, thereby paying full price and being happy about it.
Ethical businesses would just have a sale and be done with it. Treating your customers right is good for business. Really.
Now, where did I put that receipt?
Checking Account for Punk
Punk is 13. He’s a good kid. He’s bright, well-mannered, hooked on MineCrack.
We just opened his first checking account.
It started when a friend called. He works at a bank and owed a banker a favor, so he asked me to open a new checking account. I’m overbanked, so we decided to open an account for Punk. He wouldn’t even have to know.
After we filled out the paperwork, I started thinking about it.
He’s been money-conscious since he figured out basic math. We’d offer to buy a $5 toy and he’d scour the toy aisles looking for the best deals, weighing the pros and cons of all of his options.
When he wants to buy something now, he doesn’t come to me without a compelling argument why I should let him.
He gets himself to school in the morning, and almost always does his homework without prompting.
He’s a pretty responsible kid. Teenagers are–by definition–stupid, but I generally trust his judgment.
We decided to let him have access to the account, then promptly forgot about the whole thing.
Last night, he asked if he could buy some package for some MineCraft server. That handy reminder made me actually take the steps to activate his debit card and have “the talk”. Money, not sex.
I taught him how to use a checkbook register and told him that if the balance on the bank’s site ever disagrees with his register, I was taking the card away.
I explained the pain of overdraft fees.
I taught him a bit about credit card fraud and how to avoid it.
I handed him the packet of documents and told him he has to read them all. All of them. My roommate laughed at me over that requirement.
From there, he opened a Paypal account, attached his card to it, and has free rein.
It’s his money, he can make these decisions. It’s low stakes, so there’s no need to stick my nose into it unless he asks. Even if he totally messes up, it can’t hurt too bad at this point, and he’ll learn an important lesson when his next meal isn’t on the line.
Next, we’ll take him down to get a state ID, so he won’t have a problem using the card in a store.
Welcome to adult finances, Punk.
What do you think is the right age for a checking account?
