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Missing Money

Finance

Last week, I checked my credit card account only to discover I was over budget by nearly $1000.

What.

The.

Heck?

It threw me into a bit of a panic. How could we possibly have spent an extra grand without knowing it?

We didn’t buy new furniture. We didn’t buy new computers. We didn’t buy a new car. We didn’t take any trips.

Oh, wait.

I did take a trip. I went to work headquarters for three days. That’s about a $500 mileage allowance, plus three days of restaurant meals.

I forgot to file my expense report.

That’s where my money went.

Somehow, in all of life’s wonderful hustle, I neglected to ask my company for the almost $1000 they owe me. That’s an oversight, for sure.

Luckily, we keep that much padding in our other accounts, so I don’t have to pay interest on that money, but still.

That’s my money and I forgot about it.

I’m so not happy with myself.

What’s worse, is that even though I figured out the problem last week, I still haven’t gotten that expense report filed.

It’s not procrastination, I swear. I’ve just been absentminded and keep forgetting to do it. Right now, I’ve got “EXPENSE REPORT” written on my whiteboard to remind me to file it.

Cuz I’m going to do it tomorrow.

Five Signs You Don’t Need That

Finance

Everybody occasionally buys things they don’t need, from DVDs to luxury cars. There are signs that what you’re buy may not be an actual necessity.

Here are five signs you should put that back:

You’re buying that sweater or video game for the endorphin hit, you’re shopping for the addictive high not to fill an actual need. It’s a habit that’s as hard to break as smoking, if not harder. You can’t, after all, stop shopping altogether.
You already have one. Or 10. A relative can’t turn down a sale and she buys for life. She regularly buys 3 of whatever useful gadget is available on the shopping channel. Her house has turned into a sad story of compulsive hoarding.
The rationalizations for your purchase include “It’s cool” or “My friends all have one.” If you are buying something just for the bragging rights, it has become an ego purchase, which is something to avoid. The insidious part of an ego purchase is that you have to keep topping your last purchase and the last purchase of your social circle, or the purchases lose value. It’s a vicious circle.
It doesn’t have a “place”. Where are you going to put it? Is it going to go in the corner, or is there a drawer or shelf it can live on. If there’s no play to consider “away”, you’re just buying clutter. If you must have it, go home and toss, sell, or donate 2 things to make room. If possible, do that before you actually by the new toy. If it’s important, you’ll come back for it.
You didn’t know you needed it 10 minutes ago. If you actually need it, it’s on your list, right? Impulse purchases have been the biggest budget-killer in my house. That’s why we use Alice for the household goods. If we don’t see the it, we can’t throw it in the cart at the last minute. We no longer shop with the debit card, so we have to watch what we buy. It’s embarrassing to have to undo a purchase at the checkout because I didn’t bring enough cash.

What did I miss?

Twitter Weekly Updates for 2010-01-30

Misc

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 #

Twitter Weekly Updates for 2010-02-27

Misc

I tried to avoid it. I really did, but I’m still getting a much bigger refund than anticipated. #
Did 100 pushups this morning–in 1 set. New goal: Perfect form by the end of the month. #
RT @BudgetsAreSexy: Carnival of Personal Finance is live 🙂 DOLLAR DOODLE theme: http://tinyurl.com/ykldt7q (haha…) #
Hosting my first carnival tomorrow. Up too late tonight. #
Woot! My boy won his wreslting match! Proud daddy. #
The Get Home Card is a prepaid emergency transportation card. http://su.pr/329U6L #
Real hourly wage calculator. http://su.pr/1jV4W6 #
Took my envelope budget out in cash, including a stack of $2s. That shouldn’t fluster the bank teller. #

It’s Better to Buy a House than Rent

Finance

This guest post is brought to you by Lender411.com.

The debate is ongoing about whether it’s better to rent a home or buy one. Which is best?

To start, identify your goals. This includes short-term goals and long-term goals—anything relevant to your living situation or your finances. Are you someone who likes to move around and explore new areas, or have you put down strong roots in a specific location? Are you planning to raise a family? Is that family going to grow over the years? Do you plan to build up wealth? Are you aiming to retire a few years early? Work these things out as best you can. You need to know where you’re headed.

Beyond these life considerations, there are some specific facts about homeownership that typically make buying a house a better choice than renting one indefinitely. Specifically, you’ll save money in the long run if you buy a house. Studies have shown that if you plan to remain in a residence longer than five years, you’re better off buying than renting. Here’s why.

Equity. When you own a house, every dollar you put toward paying off the principal of your mortgage is actually going right back to your pocket in the long run. A house itself is an investment—it is a thing that holds value and, in fact, often gains value over time. It’s almost like a savings account. When you put money into a savings account, it stays there. Sure, you don’t exactly have access to the money, but it’s still there and, in the long run, it’s still yours. You don’t gain this value when you’re renting a piece of property. The money you pay out is simply gone.

Value. As mentioned above, a house, like any other financial instrument or investment, can actually increase in value over time without any effort on your part. Sometime property values just go up. Historically, in fact, just about all property gains value in the long run—often significant value. Real estate is a very popular form of investment even separate from the fact that it provides your family with a place to live. Even with a mortgage, the ultimate return you can get for your money is typically very good, especially if you’re able to find the best mortgage rates when you enter the loan. Renting doesn’t give you this opportunity to someday capture increasing property value.

Stability. One of the most appealing perks of home ownership is the consistency of payments month to month. If you have a fixed rate mortgage, your monthly payment is locked in at a certain amount for the next thirty years or so. This can be extremely comforting for some people and extremely helpful when it comes to budgeting long-term. When renting, prices may fluctuate from lease to lease, or you may move from one place to another and constantly have to readjust your budget and lifestyle. Also, mortgage payments on a house will, at some point, end. When those thirty years are up, chances are you won’t need to make any payments toward your house beyond property taxes from then on. Renting, however, never ends. You’ll never truly have a place of your own.

Despite the strength of these three facts in favor of home ownership over renting, the choice is ultimately one that must be made by individuals and families. Everyone has different long-term goals, and those goals must be identified first. But make the decision wisely. From a financial perspective, home ownership is the better of the two options long-term.

Update: I just realized I didn’t include the link to the Festival of Frugality that included this post. That’s fixed.

Halloween Decorations Ain’t Cheap

Finance

This year, Americans are expected to drop $5.8 billion on Halloween, with most people spending $66.28 per person. About 1/3 of that is candy.

The rest? Costumes and decorations. $4,000,000,000 on costumes and decorations. That’s a lot of freakin’ money.

Over the years, I have certainly spent more than my fair share on building that number. We are the Halloween house in our neighborhood. A few years ago, we were even featured on the evening news. Filling a yard with decorations is expensive. When money’s tight, or you just want to save some money, how can you decorate on the cheap?

1. Plan ahead. The best time to buy Halloween decorations is in the two weeks after Halloween. After that, all of the seasonal stores are closed. If you want the best selection, get up early on November 1st and hit all of the stores. Prices drop to 50% or lower the morning after the big day, but won’t drop below that, even when the seasonal stores are closing for the year. The goods will either be warehoused or bought back by the suppliers, so there’s no motivation to sell at cost.

2. Buy used. You can find some screaming deals on Craigslist, but always check the prices. I’ve seen cardboard and wooden coffins both going for $50. One is a good deal, one is a ripoff. Do some research and you can save a ton of money on some really neat pieces. Last year, a local haunt decided to close shop after Halloween and posted a “going out of business” sale on Craigslist. There were some excellent gory corpses for sale there.

3. DIY. When department stores close, you can buy mannequins for little-to-nothing. Throw some clothes and mask on that, and you’ve got a quick monster. Grave stones can be made by gluing two sheets of insulation styrofoam together and using a Dremel to shape it and add the epitaph. Make sure you brush paint it. Spraypaint will eat the foam away. Finally, if you can run a drill, you can cobble together some truly intense props with the aid of some monster mud and discarded lumber. Monster mud is made by mixing 1 gallon of latex paint with 5 gallons of sheetrock compound. I get a gallon of paint from the “oops” bin at the hardware store, preferably in a dark color. Dip some clothes in that, then put them on a a human-shaped frame built out of 2×2 lumber, and you have something not too disimilar from actual Hollywood props.

Over the years, I’ve managed to shrink my Halloween budget, while increasing the quality of my props. It just takes some time and research.

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