- Bad. My 3yr old knows how the Nationwide commercial ends…including the agent's name. Too much TV. #
- RT @MoneyCrashers: Money Crashers 2010 New Year Giveaway Bash – $9,100 in Cash and Amazing Prizes http://bt.io/DZMa #
- Watching the horrible offspring of Rube Goldberg and the Grim Reaper: The Final Destination. #
- Here's hoping the franchise is dead: #TheFinalDestination #
- Wow. Win7 has the ability to auto-hibernate in the middle of installing updates. So much for doing that when I leave for the day. #
- This is horribly true: Spending Other People's Money by @thefinancebuff http://is.gd/75Xv2 #
- RT @hughdeburgh: "You can end half your troubles immediately by no longer permitting people to tell you what you want." ~ Vernon Howard #
- RT @BSimple: The most important thing about goals is having one. Geoffry F. Abert #
- RT @fcn: "You have enemies? Good. That means you've stood up for something, sometime in your life." — Winston Churchill #
- RT @FrugalYankee: FRUGAL TIP: Who knew? Cold water & salt will get rid of onion smell on hands. More @ http://bit.ly/WkZsm #
- Please take a moment and vote for me. (4 Ways to Flog the Inner Impulse Shopper) http://su.pr/2flOLY #
- RT @mymoneyshrugged: #SOTU 2011 budget freeze "like announcing a diet after winning a pie-eating contest" (Michael Steel). (via @LesLafave) #
- RT @FrugalBonVivant: $2 – $25 gift certificates from Restaurant.com (promo code BONUS) http://bit.ly/9mMjLR #
- A fully-skilled clone would be helpful this week. #
- @krystalatwork What do you value more, the groom's friendship or the bride's lack of it?Her feelings won't change if you stay home.His might in reply to krystalatwork #
- I ♥ RetailMeNot.com – simply retweet for the chance to win an Apple iPad from @retailmenot – http://bit.ly/retailmenot #
- Did a baseline test for February's 30 Day Project: 20 pushups in a set. Not great, but not terrible. Only need to add 80 to that nxt month #
Slumlord Update
We’re six weeks into our new lives as slumlords. Our tenants moved in late in January for a lease that started February first.
Our tenants are paying $1200/month for a two bedroom, 1 bathroom house and 2 of the 3 stalls in the garage. This is in a first ring suburb. The house itself is a bit under 2 miles from the border of Minneapolis.
The rent is on the lower end of the curve for the size and location, and my wife has known the tenants for years.
Of the $1200 we get each month, here are our fixed expenses:
- Water/sewer/garbage: $170 per quarter
- Property taxes: $2359 for last year
That’s $253.25 per month we pay for the property.
The tenants pay gas, electric, and cable.
That leaves $946.75 in profit for us each month. Yay!
But wait.
Two days after moving in, the new boiler went out. It was a pain in the butt, but the company fixed it for free. They even loaned our tenants some space heaters, since this happened when it was -20 degrees Fahrenheit.
A couple of days after that, the drain pipes coming from the bathtub gave out. Eighty-year-old cast-iron pipes do that. $325 for that fix.
The paint we put in the kitchen is peeling? $250 and a day of painting.
Part of our project with Sammy has him maintaining the property. For the winter months, he’s been cleaning out the snow every time it falls. $425 for February and March. Welcome to Minnesota. I’m not sure this is going to be a continuing part of the property service next winter.
Sink clogged further down that we can reach with our pipe snake? $125.
3 feet of snow melting faster than the ground underneath is thawing, allowing water to seep through the basement walls? We don’t know, yet. That fix has to wait until the snow is gone.
Of the $1893.50 “profit” we’ve received so far, we’ve had to pay out $1125. Of the remaining $768.50, we’re setting aside $500 per month for future repairs, which we expect to keep making for at least a few months.
Hooray for a -$231.50 profit! It makes all of the work for the last 10 months worth it.
Dolly Parton’s Car Crash and the Importance of Insurance
America’s country sweetheart, Dolly Parton, was in a car accident recently. Although she was only a passenger in this minor fender-bender, she still suffered some injuries requiring a quick hospital visit and rest. The offending driver did not stop as he was supposed to and struck Parton’s vehicle. Parton surely has auto insurance, and hopefully the offending driver has coverage as well.
Every month, you pay a premium toward your coverage balance. Coverage varies by state, from hospital bills to repairing damaged street items, like guard rails. People with expensive cars pay higher premiums while inexpensive cars have lower amounts. Some buyers only purchase the bare minimum of coverage, called comprehensive. This coverage does not help in the Parton crash because it typically covers vehicle damage from objects, like flying rocks, rather than a collision situation.
How Much Does That Part Cost?
Repairing a vehicle after a car crash can lead to astronomical figures. A simple dent in the bumper may warrant an entire part replacement costing thousands of dollars. The offending driver in Parton’s accident is at fault. His insurance should cover Parton’s insurance deductible and any other expenses that arise. If he is not covered, she could technically sue him for damages, although there may not be many funds to pay out.
Those Medical Bills
Coupled with a car repair, Parton and her driver also went to the hospital. The offending driver uses his auto insurance to cover their medical bills. Any bills generated from the driver or passenger’s injuries goes directly to the offending driver’s insurance. If he is not properly covered with this policy feature, he must pay for the bills out-of-pocket. With medical bills costing thousand of dollars, he probably called his insurance agent right away to see if his policy has that coverage.
Luckily, Parton’s accident was not severe, but ongoing injuries can slowly siphon funds out of the offending driver’s account. If Parton has whiplash, for example, she may need multiple visits to a chiropractor or other specialty doctor. Each visit should be covered by the offending driver’s insurance. Because she has good insurance coverage does not mean that her policy should pay out. The party at-fault always pays for both car repairs and medical bills. With treatment that takes several weeks to a few months, the offending driver’s insurance rates will typically jump next policy year.
Someone Has To Pay For It
Depending on the insurance company, an accident on your record causes your premiums to rise. You are now considered a risk to the company. It is possible that you will cause another accident incurring more cost. Insurance companies must weigh their risky customers with their good drivers. Hopefully Parton recuperates quickly so the offending driver’s rates do not remain high for several years.
You may not think of auto insurance as a top priority, but the reality of Parton’s fender-bender shows everyone that accidents happen at any time. Even celebrities must cover their vehicles with good insurance to protect their assets.
Twitter Weekly Updates for 2010-04-03
- Screw April Fool's Day. I'm about ready to clear my entire feed queue. #
- I definitely need a reason to get up at 5 or I go back to sleep. #
- Bank tried to upsell me on my accounts today…through the drivethru. #
- Motorcycle battery died this morning. Surprise 4 mile hike. #
- RT @ramseyshow 'The rich get richer &the poor get poorer' is true! Rich keep doing what rich people do & poor keep doing what poor people do #
- RT @ramit: "How do you know if someone is a programmer?" I cannot stop laughing imagining half my programmer friends – http://bit.ly/9MOipi #
What’s In Your Wallet?
Seeing Crystal play copycat made me want to play, too.
This won’t take long. I quit carrying a wallet a few months ago in favor of a Slim-Clip. That helps eliminate wallet clutter.
Here goes nothing:
- $0. I usually carry a $150 or so all the time. I haven’t made it to the bank in a few days, and I spent my last $7 on parking.
- USBank Flex Perks VISA check card. 0.5% back on all purchases and, theoretically, up to 25% back on some.
- Penfed Platinum Cash Rewards VISA card. 1% on everything, 2% on groceries, 5% on gas. We don’t use this much, since we are primarily a cash family.
- Driver’s license.
- My health insurance card.
- Wells Fargo VISA debit card for my business account.
- Expired health insurance card.
- Car insurance cards. Car, truck, and motorcycle. 1 expired and 1 valid for each.
- AAA card.
- Carry permit.
- Business cards for 2 attorneys.
- Dental insurance card.
If I go through the rest of my pockets, I have a pocket knife, 16 cents, a Gerber Artifact, and my library card.
Including my jacket pockets will add a Cold Steel Sharkie, business cards, a lighter, another pocket knife, a fingernail clipper, a small moleskin notebook, a ticket to Evil Dead: The Musical and matching brochure, a pad of checks, hand-sanitizing wipes, and a diaper to the list.
Now that I’ve gone through my stuff, I threw out the expired cards. My jacket will certainly accumulate more stuff over the winter, but it’s spent the last 6 months in the closet.
What’s in your wallet?
Mortgage Race
I spent last week at the Financial Blogger Conference. Saturday night was the big debauch, a 90s themed hip-hop dance party.
Yeah.
Instead, Crystal, Suba, and I hosted a super-secret pizza party to let some of the less “dance party” inclined attendees discuss things like the sanitary concerns of group body shots, sex toys, and horror movies.
During the course of the party, Crystal and I decided to race to pay off our mortgages.
Her balance is just under $25,000.
My balance is $26,266.40.
We both technically have the cash to pay off the balances right now, but we are both dealing with secondary housing issues. She’s building a new one, and I’m updating an inherited house. Neither of us is willing to use our cash reserves to pay off the balance right this moment.
Now that my credit card is paid off, I’ve moved that money to an extra interest-only payment on my mortgage, effectively doubling my mortgage payment, which puts my projected payoff date as about the end of next year. Crystal’s aiming for June, so I’ll have to hurry.
We do have tenants lined up for February, and all of the non-expense related rent will go to the mortgage.
I think I can win.
Update:
I forgot to mention the terms of the bet. The loser has to go visit the winner. When I win, Crystal’s going to fly to Minnesota to experience snow.