How Do You Do It? Money-Wise

I was running the numbers yesterday to see when Todd and I will be able to go down to a one income family.  I got so sad, because I dont see how it is possible for us to ever be a one income family.  I hate to think that we spend everything that we earn...even when we are debt free (but the house). 

By the end of March, we will owe mid $2,000 on our last credit card debt.  We have paid off nearly $900/month in revolving debt in the past year and a half which is a huge feat! However, even with that $900/month nearly freed up, we still have alot of things we want to do.

After our last debt is paid off, we will secure 1 year's worth of the bi-yearly & yearly bills ($5,000).  We will also save up an additional $6,000 to use as 3 month's living expenses.  Between the "bi-yearly" payments and 3 month's living expenses, we will have enough money to actually live off of if something were to happen for 6 months. 

Once that is taken care of, we want to:

1.) Start investing $500/month into a Roth IRA (this along with what we contribute at work with our employers would be 15% of our income)
2.) Save for our next vehicle (Goal: $12,000)
3.) Add a 1 1/2 car garage onto our house for hubby to use as his "workshop" and tear down the house next door. 

On top of all this, start a family.

So...my question is, how do you do it?
I know there are a few stay at home mom's out there that read the blog, and some with very limited income.

I understand that we dont NEED a $12,000 vehicle.  We most likely wont even "NEED" a vehicle for the next 5-10 years (hopefully)! But this is still looming in my mind, especially seeing as we drive so much.

And the house next door houses alot of hubby's tools and welding materials.  There is a hole in the roof and it is caving in.  Before long, the house will fall down around all of hubby's equipment.  We need to really consider getting it taken down, but we also need to find a home for some of our belongings and his equipment.  We are planning on going through and getting rid of alot of items, but we will still need to store some items.

Any suggestions and criticism is welcome.
I just dont see how all of this is possible on ONE income.

If We Won the Lottery...

I was watching something on TV the other day about people who won the lottery.  I dont have the statistics in front of me, but I've read that a large amount of lottery winners go broke or bankrupt within 5 years of winning their millions.  While watching this program, I can see why! 

This got Todd and I to talking about what we'd do if we won the lottery.

One group of people on the program (I think there were 7 people) won $315,000,000 in the California lottery.  After taxes, each of them took home over $20M.  I calculated that if we made just 2% interest on that money(very modest, I know), we'd make $400,000/year!  Of course, it would be less than that after taxes each year.  Lets assume $150,000/year ($12,500/month!)

I can tell you right now, we would not have a 9 to 5.  We would quit our jobs.  I worry about health insurance, but I would think we could easily be self-insured in this situation, dont you?  If nothing else, we'd have a high-deductible insurance plan.

In this situation, Todd and I both agreed that we would move out of our house.  We would buy land.  I found some on landandfarm.com that I think would be perfect. Todd and I love the woods, we love mountains, and we love log cabins.  We would buy something like this and build a cabin on it.  We both agreed we would want something simple. Maybe the size we have now and hopefully add a few kids to the mix.  No one waiting on us hand and foot (though I mentioned wanting a cleaning person once a week).  We can mow our own property.  We can cut our own trees.  I can do my own gardening.

Yes, I would have a garden on this property.  A vegetable garden, an orchard, grape vines, raspberries, blueberries and anything else I could possibly want.  I would fence it in, though, so no deer could get in. The garden would be extensive and provide for everything we could possibly want and need throughout the year with plenty to give to local food banks.  If I didnt have a job, do you know how much time I'd have for cultivating a garden?  ALOT!

I would also want a milk cow, chickens, and mabe even a pot bellied pigger or two. 
I would also want Todd to have a nice "work" truck to go along with his Rondo. 

As for me, I just want a family and the land to be as self-sufficient as possible.  We arent ones for bling.  There would be no $1.5M dollar homes, even with this amount of money (we feel that would be a waste.)  I can assure you my family would get money every year and we would support causes we believe in.  Oh, and we would take one heckofa vacation as a family! 

NOW...the next scenario was a couple who won $8,000,000 in the lottery and took the payout of $2.5M after taxes.  This changes things quite a bit for us.  Assuming 4% interest on our money, we would get $100,000/year.  Could we live on that? Absolutely!  Would we buy that property for $200,000 in WV and build a house on it?  No. 

We like security.  Would we live in the house we own now?  Maybe for a few years (while accumulating wealth.) I could see us living in our home, and Todd having time to fix the rest of the house up.  Would we work?  Yes...but not in our current positions.  We would find jobs we truly enjoy and not work for the money, but for the fulfillment. Even if that means part-time work. Would we get a house out in the woods with a little more land?  Eventually once we saved up enough cash to not take on any debt and not hurt our future investments.

The people who won the $8,000,000, they moved and bought a $350,000 house on 14 acres.  They then bought a house for their son, costing over $100,000.  They bought a $40,000 vehicle for their son, a $20,000 vehicle for their daughter-in-law, a $160,000 big rig for themselves, many many animals, a $14,000 lawn mower, and some big machinery.  Oh, and then when the IRS said they owed $350,000 more in taxes, they couldnt pay it.  Gee.  I wonder why.

To me, a windfall of $2.5M would pretty much make us set for life.  I dont see our habits changing much.  We are pretty set in our ways and pretty darn frugal.

K-Cups at a Discount!

My husband is always looking out for me and the things I enjoy.  I love that about him.  He went to Amish country last week on his day off with his parents.  He found a store that sold many different items that the boxes were beat up a bit, or close to expiring.  Todd found a box of 50 K-cups (for our Keurig coffe/tea machine) for $11.99!  That is a great deal!  Generally, the K-cups sell for $0.50/each, or $9.99/box of 18.  These Hazelnut coffee K-cups end up being $0.24/each!  And the best part is, I can use the same K-cup 4 times because I don’t like my coffee very strong.  This ends up being $0.06/cup of coffee.  The box, though damaged, was shipped from Amazon.com.

He also found some Hot Cocoa K-cups that he bought.  So, we are definitely stocked up on K-cups and coffee/cocoa for our Keurig machine for a year (or more!)

He enjoyed a deal just as much as I do.  I love it!

Frugal Weekend

On Saturday, Todd and I went to our friend's house  in Cleveland.  We decided to go to a greenhouse (free) and an art museum in Cleveland (also, free!)

We had a great time, and we spent only $25 for lunch!  Not too bad for  10 hours out and about.  Here are some pictures of the botanical garden, our friends (Sharron & Jim,) and one awesome picture from the art gallery.

The Average Car Payment in America is $484

Dave Ramsey quotes that the average car payment in America is $484, and if invested (from the age of 25 to 65 at 12% interest,) over the life of owning cars, you would have $5.6M in retirement. “HOPE YOU LIKE YOUR CAR!” (as Dave always says after he provides this statistic.)

This statistic amazes me.  I think, “Who in the world would assume a $400+ car note?”  I know I never would.  Heck, this is more than our mortgage payment (on a 15 year mortgage!)

I think about the cars I’ve purchased in my lifetime; three of them to be exact.

Car #1 – 1979 Ford LTD

This was my first car from my parents.  The vehicle was older than I was, but it got me from A to B.  I used to call it my pimp-mobile.  This car was LOADED with power everything, leather seats and was a low-rider.  It had less than 50,000 miles on it, but it was a tanker.  It was also a gas guzzler, but I remember the first fill-up.  My mom said she’d pay for the first fill-up, but after that, it was my responsibility.  That was when gas was $0.99/gallon back in 1997. 

Car #2 – 1991 Chevy Cavalier RS

2 door, fuel efficient (ANYTHING is more fuel efficient than the LTD,) candy-apply red and sporty.  I loved this car; however, it was a downgrade.  I had to crank the windows myself, and it didn’t even have rear defrost. I paid $3,500 for this vehicle the first week in college with the help of my mom’s signature.  I paid the car off within a year and a half.  The payments were in the low $100 range.  I drove the car about 2 years after it was paid off, and then I got into a car accident.  I used the money I got from insurance ($1200 which was the value of the car) and saved it to put down on a NEW car when I graduated from college in a few months.

Car #3 – 2002 Mazda Protégé

I purchased this car brand new within months of graduating and just a week after I got my first job out of college.  I was making $27,500 and had a letter from my employer (I am still employed with said employer) and I bought a $16,000 vehicle.  What was I thinking?!?  With $4,000 down from money from graduation and the money from the accident, the loan was $12,000 over 5 years at 0% interest.  This was a nice, sporty, jet black vehicle with all the bells and whistles.  I racked up over 85,000 miles on this vehicle with 3 ½ years.  The vehicle, though had no mechanical problems, had a lot of issues with the brakes and tires.  The tires on this vehicle were high-performance tires which did AWFUL in the snow and were uber expensive!  It felt like I needed new tires every year on this vehicle (at $500/set!) and I was getting new brakes & rotars every year (another several hundred dollars.)  I was just sick of the car within 3 ½ years.  Which leads me to…

Car#4 – Bianca! 2007 Toyota Yaris

I still owed money on my Protégé, but I was not under water.  The dealership agreed to pay off the Protégé, and I bought Bianca brand new in August 2006.  She was one of three Yaris’ on the lot that the dealership got in just weeks before.  Todd and I agreed that I was going to get a car that was fuel efficient, inexpensive, and reliable.  I didn’t need 4 doors (after all, I had a 4-door with my Protégé and no one ever rode in the back!) I really did not like the way Bianca looked.  I test drove Bianca and a 4-door Yaris.  I then told the Salesman that we would have to talk it over. 

Todd and I went to dinner and weighed the pros and cons.  It would have been $1500 more to get the 4-door, and it was plane Jane.  Todd reminded me that we wanted the cheapest, most fuel efficient and reliable, and Bianca was it.  So we went back to the lot after dinner, and I fell in love with Bianca.  I called the dealership the next day to buy the vehicle.  It was less than $12,000.  The payments were $215/month for 48 months.  Of course, it was paid off well before then.

My point is, I cannot imagine spending $400+ for a car loan.  I know my step-father has a $650+/month lease payment on his Toyota Highlander.  My mom had a $500/month lease payment on her 2-seater sports car that she drove 4 months out of the year! On TOP of the $200/month car she drove in the winter!  My father’s Acura TL is $450/month.  Before that, he owed on his Toyota Tundra.  My father does not agree with leasing (as he calls it, “renting” a vehicle, they buy them with payments…which to me, is just as bad.)

My father and his wife ALWAYS owe on a vehicle.  My dad takes immaculate care of his vehicles, and they rarely have mechanical problems.  That is probably also because they get new ones every 5 years.  My dad got his new truck.  After they were done paying off the truck, they got his wife a new Acura.  In a few more years, it will be time for my dad to get a new truck. 

I would much rather have $5.6M in the bank for retirement than owe ANYTHING on a vehicle.  Even if that means we keep our vehicles until the wheels fall off (which is what I’d like to do with Bianca.)  I look FORWARD to seeing her hit 250,000 miles, and even possibly 500,000 miles!

Luckily, I have a husband who enjoys looking and researching vehicles, but does not see it necessary to get a new one every 3-5 years.  He absolutely loves his Kia Rondo (I still think it looks like a mini-van. And I don’t like mini-vans.)  We both are content with what we have and want nothing more.  I think that’s what’s important.  I don’t WANT to keep up with the Joneses.  I don’t even LIKE the Joneses! But then again, I’m WEIRD.

We Are "Weird" as Dave Ramsey Puts It

My husband gets made fun of at work for some of the things we do to save money.   They include movies, videos, eating out, heating the home, home-repairs, vehicles, etc.  It’s funny, because people cant imagine living like we live (planning where our money goes,) and I cant imagine living as they live (NOT giving every dollar a name!)

We cannot justify spending $7 a person to watch a movie in the afternoon.  Todd’s co-worker goes out with his wife a couple times a month for dinner, a movie, and popcorn.  This is a $50+ night out for them.  We spend less than $20 for two tickets to the dollar theater and lunch.  We are morning people – we cant stay up past 9 or 10 at night.

We see NO VALUE in buying DVD’s. Nor do we see the value of going and renting a DVD at $3 or $4 at the local movie rental place. Todd has a couple of new DVD’s, but they were bought by my mother for his birthday or Christmas, and he watches them frequently.  They are Avatar & StarTrek.   We get the majority of the new release movies from the library for FREE about 2-4 weeks after they come out on DVD.  I’m glad we do this, because a lot of them are so D-U-M-B; I would be TICKED if I paid $4 from the movie rental place to see it.  However, we DO subscribe to Netflix.  We like having millions of movies at our fingertips whenever we want to watch something different, and the $7.99/month is worth it to us. 

Eating Out:  We mainly eat out with coupons or at lunch-time.  We love a hibatchi-style restaurant in Akron.  We went there just the other night for dinner.  The thing is, we use our Entertainment Card and get BOGO.  We both order waters, and we get the cheapest thing on the menu, and we can eat there for $20 including a nice 25% tip.  This meal includes soup, salad, a few pieces of shrimp, our chicken & rice, and sherbert with fortune cookie for dessert.  Todd’s co-worker keeps telling us we need to go to a place called Wasabi.  The prices are really high, and I don’t see the point in going when we can get the same experience (and we know we love the food!) at our favorite place.

Vehicles:

Todd and I both love our vehicles.  They get the best gas mileage in their class, and they both cost around $12,000.  Todd constantly tells me about a hybrid car that gets LESS gas mileage than my vehicle and costs TWICE (or more) as much as mine did. It boggles my mind.  I am so spoiled with Bianca that I don’t know if I could ever get another vehicle that gets worse gas mileage.  Plus, she is so cute.  I could never imagine paying more than $15,000 for a vehicle. 

I am lucky that Todd agrees with me on all of these areas of our life.  And he even wanted the fixer-upper we now live in.  Not many husbands would get themselves into the mess we got into with home.  We paid $35,000 for our home knowing it was worth a lot more when fixed up.  Now, 4 years later, it has been appraised at $94,000, and the renovation isn’t even complete.  The mortgage on the home is currently at $56,000 (we took money out for the new septic that was needed at $16,000 and a new roof at $5500.)  I couldn’t imagine having a mortgage of $100,000+, even with our income.  I LOVE watching our principal go down every month, and look forward to the day that the mortgage is paid off completely.

We are definitely frugal.  Some people would call us cheap.  But I don’t see our attitudes about money changing even if everything was paid off and we are making what we make at the moment.  

I Wonder Why Consumers Struggle With Debt...

Last month, we FINALLY paid off our Home Depot card.  We always seemed to have a balance because, after all, we have a fixer upper house.  There is still alot more to do to the house, and we'd get the 12 months same as cash and then pay off the balances before they started to charge interest.

For the first time in 4 years, we do not have a Home Depot balance.

In the mail, approximately 3 weeks after paying off our last project (french doors,) I get something from Home Depot.  Our old credit limit was $11,000.  This is what this mail said:

"Dear Todd M. Crispin!
INCREASE YOUR CREDIT LIMIT TO $12,500
It's easy!  Your credit limit will automatically increase to $12,500 when you make a qualifying purchase of $299 or more with The Home Depot Consumer Credit Card.   As an added bonus, we've included a coupon you can use when making your qualifying purchase to receive No Interest if Paid in Full Within 12 Months on your next purchase of $299 or more on The Home Depot Consumer Credit Card! ... "

We dont care about the credit limit, but in the past, this would be a time where Todd would think about what projects he wants to do this year on the house, and he'd go shopping.  Not this time.  We still have enough from previous purchases to last pretty much the entire year. There is still one window to put into the front of the house, pergo (fake pergo) flooring to put into the Living Room, a brand new front door.  That sounds like enough work for the year!

It's amazing when you can see the light at the end of the tunnel, how much you DONT want to take advantage of these "great offers."  We dont even see them as "great offers" anymore, which I think is a huge stepping stone for us and our future with debt freedom.

Money

Why does it seem that when we get “extra” money to be able to pay down debt, SOMETHING always happens to deplete the stash that has been saved up?  Why?

Todd received his tax return a few weeks ago and he was able to buy Spring tires for both cars that he has wanted.  The rest of his return was put toward debt.  Then, Squiggy got sick within days of buying the tires and paying down some debt.  When Squiggy gets sick, it’s an expensive vet bill.  It costs $75 to have a vet come to the house, and then whatever is administered, and a lot of times, another visit the week after (which is another $75 bucks minimum.)  Of course, because I paid down a debt, I didn’t leave too much money in our account, so I am freaking that the vet visit will be more than $300 (we have $350 to live on this week.)  And we still have several more days until payday (thank goodness Todd gets paid every week!)

Oh, and the Home Owner’s Insurance that I thought was coming due in AUGUST came in the mail.  That is another $525 that I wasn’t prepared for (my own fault!)  Yes, we have our Emergency Fund, but I don’t like touching that.  I’d rather live VERY TIGHT over the next few weeks and deal with it; which is exactly what we are going to do.

I adore my Squiggy piggy and pray that nothing is seriously wrong with him. 

The Light at the End of the Tunnel

Todd and I are working on paying off our last debt, an American Express card that Todd has had for many years.  It was a balance transfer at either 2.99% or 3.99% interest for the life of the transfer.  It was well over $15,000 when I first met Todd, but now, it is just over $7,000.

Because we paid off Todd’s vehicle by the end of 2010, I feel a HUGE burden off of my shoulders.  It is a freeing feeling NOT to owe on a vehicle.  And even though we didn’t have too many debts, not having to pay that one debt every month feels as though it frees up a lot of my time.  Not only by paying down the debt and fretting about it, but it is one less payment I have to make every month.

We also had a small Home Depot debt that we paid off in January from a project we did in June of last year (12 months same as cash,) so that is yet ANOTHER less recurring payment we have to make every month.  It makes paying the bills SO MUCH EASIER when you don’t have all of these recurring debt payments to pay (and worry about) every month.

We are to the point that we can see the light at the end of the tunnel, and we are thrilled about it.  I still have a little bit of anxiety over paying off the American Express by the end of May, but seeing the balance go down every pay is so much fun to watch!  Seeing the progress makes me that much more determined to meet my goal!  I get excited after every payment I make and update Todd on the balance.  He could care less, but he likes the fact that we are out of debt as much as we are as it is.  He likes the fact that I want to live on cash-only and that I want him to be able to get a job doing something he enjoys without having to get a job “to pay the bills.”  

I am already seeing that debt freedom opens a lot of doors and gives us a lot of opportunities that we wouldn’t have necessarily had while loaded with debt.  What a great feeling.  A feeling that we can breathe and enjoy what we have (and own outright!) and each other!

Taxes

Since marriage, Todd and I have always filed our taxes separately.  Married filing separate, that is.  We have always made within $3,000 of one another, and we are the FEW that actually do better when filing separate versus together. 

I just completed Todd’s return, and he is getting back $1300!  I know that financial guru’s say that we need to change his withholdings because we are letting the government keep an extra $100/month with no interest.  But we haven’t changed it.  It seems like every year, there is something that comes up around this time that we need the money for.  This year is no exception.  We both need new Spring/Summer tires on our vehicles.  The tires I’ve used for Spring & Summer are hand-me-downs from an old kit-card Todd had.  They are completely bald because of the amount I drive.  The other tires before the kit-card tires were the originals.  And, of course, we have studless snow tires for Winter (we DO live in the snow belt.)  We have yet to replace these because there is no need.

We buy our tires from TireRack.com.  They have great prices and the tires are shipped right to our door.  Todd then takes them to WalMart to get them mounted and balanced on rims, and then he puts them on when the time is right.  Oh how I love my handy hubby.  He saves us so much money!

The other $500 is going toward our debt payoff.

We do not itemize.  We haven’t itemized in years, and that is perfectly fine by me!

One tax return down, one to go.  Mine is going to be a little more difficult this year due to the business expenses.  It shouldn’t be TOO bad, but it will most likely take longer than the 10 minutes it took to finish Todd’s online. 

We do our taxes FREE with a company that is registered with the IRS for those of us who make less than $58,000/year.  I love doing our taxes online because it is SO EASY, and the money is direct deposited into our account within a couple of weeks.  Cant beat it!

Engagement Ring

I was listening to Dave Ramsey's podcast the other day, and he gave this younger gentleman the suggestion that an engagement ring should cost no more than  a month's income.  This got me to thinking about my engagement ring.

I am NOT conventional at all.  I bought my own diamond a couple of years before I met Todd.  I have always liked trillion cut diamonds, because they were different, like me.  I also saw how much they cost - it was unreal!  I found this diamond online from a diamond wholesaler in California.  They had a jewelry store very close to where I work, so I asked them to send it to the local store to see if I was interested.

It came about a week later, and I LOVED IT!  It had inclusions (imperfections) and it was not the clearest diamond I've seen, but it was beautiful.  I absolutely loved it.  It was perfect for me...because I am not perfect.

Fast forward a couple of years.  Todd knew that I had bought the diamond.  It was something we discussed when we talked about getting married.  We went to the same jewelry store that I bought the diamond and took a look at settings for an engagement ring.  I liked a plain and simple one.  He knew where the loose diamond was located to take and get set when he was ready.

Then, on July 7th, 2006, Todd surprised me on our way to my aunt's house for my cousin's graduation party.  We passed the Salamanca, NY exit and kept going past Buffalo and up to Niagara Falls.  He took me to this amazing restaurant, and then told me we had a suite overlooking the Falls.  After dinner, he took me to the suite, and proposed with a beautiful ring. 

((Please excuse the fact that our camera is on it's last leg.  It did NOT take very good pictures of my ring.))

When I opened up my lock box, the money for the diamond was in there.  The cost of my ring was less than $500.  I would never want or need a ring that costs one month of Todd's income.  There is no way.  I am perfectly happy with my  3/4 carat trillion-cut ring.  I love it, and I love my husband for understanding WHY I bought my own diamond.  I didnt want my future husband to spend thousands of dollars on an engagement ring.  My partner and the love I felt for him was what was most important to me...not a ring.

How We Save on Groceries

Todd and I try to be as frugal as we can on groceries.  One of the more expensive items we get is cheese.  Cheese prices are astronomical (in my opinion.)  We like to go to Gordon Food Service where you can buy a block of cheese and they will cut it for you for free. 

This is what 6 lbs of cheese looks like sliced.  This is mozzarella.  It would have been less expensive if we got the skim milk cheese, but we got the whole milk cheese instead ($0.20/lb more.)

Todd divides these slices into 3/4 lb or 1 lb bags.  This cheese will last us 3-4 months.  We keep one out, and the rest goes into the freezer.  Todd counted, and this is 101 slices of cheese.  Dont ask me why he counted.

We also get a 5 lb. bag of shredded cheddar cheese.  We like this over broccoli, omlets, quesadillas, over chilli, etc.  This 5 lb. bag was $10.99.  That is $2.19/lb. 

This is what it looks like when it's almost all divided up.

Do you think Lana is waiting for cheese to fall?  I think so too.

On the same shopping trip to Gordon Food Service, I saw prime rib on sale for 1/2 off.  It was $2.49/lb (versus $4.99/lb.)  We ended up getting two large chunks of prime rib.  I was just telling Todd during lunch that we dont eat alot of red meat and I was craving a steak.  Not 30 minutes later, we were buying prime rib.

We bought the chunks and Todd wanted to cut it himself into steak sizes of his choice.  We have 16 - 8 oz. steaks from each prime rib we bought.  This will make 16 VERY NICE meals for us over the next 6 -9 months.

 Lana is hoping daddy drops some prime rib on the ground too.  Not likely, pup...not likely.

Packaged and ready to go to the freezer.

We left one out to eat this week with a baked potatoe and vegetable.  I cant wait. YUM!

I've Sold My 7th Book on Amazon!

I have sold my 7th book in the month on Amazon.  No, selling books on Amazon is not going to make me rich and be able to quit my job, but it's a nice passive source of "play money."    It really only took me a few minutes to list the ISBN numbers and put them online.  It is nothing like Ebay or Craigslist.  Amazon does it all.  The only thing I DONT like is the amount of "commission" Amazon gets.  If I get into selling books in a larger quantity, I think I'll pay the monthly fee and not have to pay the "commissions."  I havent hit the "break even point" yet to justify doing that.

Another great thing for those unsure of if you should sell books on Amazon.
1.) You can use their Media Mail rates and ship the books from your home.  You just print it and put it in the mailbox.
2.) You pay NOTHING to list the books until they sell.

So, book #7 will be going out in the mail.  I will get my $6 for the sale. One more book is out of my armoir and everyone is happy. :-)

Property Taxes

I cant believe I'm writing about our property taxes, but I am.  I was actually EXCITED to get them this month, which officially makes me WEIRD!  I have been working to get our property taxes lowered on the house next door since we bought it in October of 2008.  The auditor kept charging us $450 for the house that has no septic or well.  It was appraised at nearly $60,000 for tax purposes.

I called the auditor's office last year to see what we could do to get the taxes lowered.  I was told the auditor would come out and do an appraisal on the house and it would be reflected on the next bill.  The next bill came, and it was still $450.  I called again.  I was told I have to write a letter and show proof of the septic being crushed and the well capped (otherwise we'd have to pay $16,000 for a new septic system) along with the purchase agreement that the house cost us $8,000.  I sent it immediately.  The bill came last week, and it was STILL $400!  Yes, it went down, but the house was still appraised at $56,000!

So, I called, yet AGAIN!  I was a bit peeved.  I was as nice as I could be and told the lady who answered the phone what has happened, and I didnt know what to do to get the value to reflect what we paid for the house.  She sent me directly to the auditor.  I spoke to the gentleman and explained everything (again.)  I asked him if he needed Todd to come down with proof of everything, and he said, "No, that's not necessary.  I just changed it for you.  You will receive a bill in the mail next week.  Disregard the old one."  I thanked him over and over again, but thought, "I'll believe it when I see it."  Two days later, we got the tax bill.  It went from $400 to $45.  I am tickled pink!  This is a savings of $710/year!  YAY!

I can now HAPPILY pay the property taxes every half.  I was thinking about paying the full year, but I really want to pay off our last debt.  When the next property tax bill(s) come in the mail, we should be out of debt.  Then we can pay it yearly.  I want to free up as much cash as we can to get the last debt paid off as soon as possible.

As a side note, I think it is amazing that we are paying LESS taxes than what I paid in Akron for 1/8 acre lot...and we've got a full acre in this great, quiet, wooded area with lots of great neighbors and wildlife.   

Entertainment Fund

Every month, Todd and I get $100 to spend on “fun things” to do together or to go out to eat.  In the past, I felt I was robbing us because we would be UNDER BUDGET most months, but when Todd wanted to do something that was a little expensive, I would put the ki-bosh on it.

So, starting in January, I started taking $100 in cash out of the bank for our “fun money.” 

Right now, we are nearing the end of January, and we still have over $25 in “fun money” available.  I am pretty pleased with that, considering we went out to lunch once, dinner once, got ice cream as a treat from Handles (not very inexpensive) and then ate at the hospital last week when we found out Natalie was admitted.  We both rushed there after work and were starving, so we ate in the cafeteria.  As a side note, that cafeteria meal was nearly $30 for the two of us, and it wasn’t even that much food.  We both had a fajita, we shared one drink, got a slush and some jello for Natalie. Oh, and we paid for parking in the parking deck out of the “fun money.” 

At any rate, I think we’ve done really well with the entertainment fund/fun money. 

I already bought something for a later month.  It is for a place called “Fun ‘n Stuff.”  They have laser tag, climbing walls, putt putt, go-cart track, water-park games, arcarde, etc.  I got 2 – all day wrist-bands for Todd and I to go and play some day when it warms up a little bit.  That is coming out of February’s “fun money,” but I think it will be well worth it when we go.  I will probably take a Friday off when Todd has a Friday off, and we can go and have a blast.  Probably have a cheap lunch, or pack a lunch, and have a great ‘ole time.

Do you budget “fun money” every month for you and your spouse or the family?

Selling Books

Since the beginning of January, I have been selling books on Amazon.com.  I am surprised at how easy it was to list the ISBN numbers and the orders started coming in within hours.  I listed 9 books, and sold 5 of them the first week.  With the sales, I have made over $55.  Not bad at all!

Our local library has a book sale twice a year at great prices ($0.25-$0.50 for paper backs and $1 for hard cover books.)  I have been thinking about trying to sell books from home to make some extra money and pay down the mortgage (or bulk up our emergency fund.)  The books I’ve sold have been pretty much brand-spanking new.  I sold them as Used – Like New.  The bindings had not even been creased.

I am worried that if I purchase 10-15 books from book sales (who am I kidding? It would be more like 25-50,) that I may not be able to sell even one. It is a risk. 

Upon further investigation, I found out that there is a business out there for Book Scouts.  Yes, that’s what they call themselves.  They go to these book sales, can scan the book ISBN and see how much they are selling for instantly on their PDA or web-activated cell phone. 

There is software you can download to use at these sales.  How much does it cost? $7.99/month or $20 for 3 months.

However, I do not have internet on my phone.  So that would be an additional cost.

I find myself getting so excited about my next business venture that I don’t spend enough time on one business to make it grow and become a source of income.  I want to get the other two businesses off the ground in 2011 and build a steady customer base and income stream, but I’d also like to get into this book selling business.

I have a book requested from a library “out of network.”  I’m not sure when it will come in, but it is all about the book business.  I cant wait to get it, read it, and then decide on what to do.  In the meantime, I may go to a book sale or two in my area and limit myself to 10 books, and then try my luck at selling them.  We’ll see.

Decision, decisions.

What would you do?

Gas Prices

Ever since Christmas, gas prices in Ohio have been above $3.00/gallon.  I drive a lot to and from work (90 miles a day / 450 miles/week.)  So does Todd.  However, Todd drives 15 days a month.  I drive 20 days.

Luckily, Bianca is a gas-sipper.  Todd’s vehicle (we call him “Big Red,”) is an “average” vehicle in my opinion.  It gets 28 MPG on average.  When I fill up, it is about $28. When Todd fills up, it’s about $40.  Bianca has an 11 gallon gas tank and I’ve never had to fill up over 10 gallons.  Todd’s has a 12 or 14 gallon tank.  I cant remember which one of the two it is.

I generally cringe when I see anything over $35 on the debit card from a gas station.  But I have to put it into perspective.  We no longer have car payments.  Is a fill-up of $40 every week going to kill us or the budget?  Nope.  Heck, we were paying for 5 ½ fill-ups per month in payments alone.

Todd gets an incentive for being on time at work and not calling off.  Every quarter that he’s on time, he gets a $250 gift card to choose from.  He chooses gasoline.  We usually have to pay for gas only a month every quarter.  In December, Todd went to work, but had to go home early to go to the doctor due to a problem with his jaw.  He ended up going to the emergency room per his doctor’s orders. Because of that, he will only get $100 in gas cards, meaning, we will have to pay for gas much more than we are used to. 

 Many people ask why we travel so far for work.  For me, I travel because the area I work is not affordable to purchase a home based on our income.  Heck, property taxes in this area are about what we pay for our mortgage every month!  I get paid decent money and I live in an area that is a lot less expensive to live.  Not to mention we have an acre of land, I can have a piggy without a permit and we are not on top of our neighbors.  I happily pay less than $30/week in gasoline to get to and from work, and spend some time in the car catching up on podcasts.

Neither Todd nor I could find a job in Warren or Youngstown (the two closest cities to where we live) making what we make with the benefits we have.  Jobs in our area are about $10-$12/hour tops.  We live really close to the Chevy plant that produces the new Chevy Cruz, but it is VERY difficult to get a job at the plant.

For now, we will deal with the gas prices and traveling to work.  As I’ve mentioned many times before, I am waiting for us to get in the financial position where Todd can quit his job and find something making a lot less but doing something he loves to do (even if it is at $8/hour.)

Jeans

Todd and I are both very rough on our clothes, which is one reason we buy the majority of our clothing from the thrift store.  Todd has pretty much purchased all of his clothing from a particular thrift store that we love in Akron.  I buy my shirts from the thrift store, and buy my work pants / jeans at Kohl’s or WalMart.

Todd likes to go see his parents every couple of weeks to make sure everything is OK, help them out around the house if they have any projects that need done, and just to visit.  He went to the thrift store before seeing his parents on Tuesday, and was able to purchase 5 pairs of jeans for $13.74!  That’s right, $13.74.  Less than the price of new Wranglers from WalMart, he was able to get 5 pairs.  2 black and 3 blue. 

I cant tell you how happy I am that he found these.  The last couple of times we’ve shopped there, there was nothing in his size.  He really hit the jackpot this time.  Now, he should be good for at least another year or two.  5 pairs of pants would last the NORMAL person a couple of years, but not my husband.  I would be happy if they last until the Summer of 2012.  He works on cars, houses, outdoor projects, everything in his jeans.  They get dirty and stained, REALLY quickly.  I’ve asked him to set aside one or two pairs that are to be worn ONLY when we go out, but that never happens.  Oh well.  I’m just glad they are less than $15!

Todd's Realization: Maybe we ARE Misers!

Todd way on the floor (his back is still hurt and it helps when he's on a hard surface) with the puppy tonight after dinner.  I told him that I took $100 out of the bank account to use for our "entertainment" money for the month.  In months past, I think I've short-changed us on the entertainment fund.  We could spent $20 in the month out of the $100 budget, and Todd would mention wanting to do something and I wouldnt want to spend the money.   So, this $100/month is in an envelope and specifially for entertainment for the two of us.  Whether that be a night out with friends at a bar, bowling, wineries, or doing anything together. 

He then said, "You know, I think you have rubbed off on me.  I dont even ENJOY going to a sushi restaurant and spending $50 on sushi anymore.  I enjoy the sushi we get at the buffet because I know we're only paying $6.50 for it!" 

I told him that I just wrote a blog about me feeling like a miser.
He said that this describes how he's felt exactly lately.

We dont like to spend money anymore.
We are becoming so "miserly" that we dont even want to spend $1.50/person to go to the dollar theater because "we can get it free next week from the library!"

I just think it's funny that he brought up the conversation on his own, and I have felt the same thing.

Now, I am not complaining.  I am GLAD we have gotten to this point together.  But I dont want to be one of those old fuddy-duddy couples that hoards their money and does nothing good with it.  I want to have fun together and experience life.  But lately, we have more fun doing that AT HOME playing the Wii or watching movies from NetFlix than going out and doing it. 

Todd mentioned he enjoyed the meal he made for dinner tonight (salmon, steamed broccoli & homemade spanish rice with homemade sangria with free wine I got from a vendor at work) than we had at Red Lobster last weekend (with a gift card.)  I agree with him.  And it cost a fraction of the price.  About $2.00 for the entire meal.  Mom gave us the salmon because she and Doc didnt like it, brocolli was $1 for the bag, and white rice (2 cups) with some spices. 

Oy!
I prove my point.

Rate of Return: 2010

I am always curious to see what my ROR is at the end of the year.  OK...who am I kidding.  I check at least once a week.

At any rate, for 2010, my ROR was 16.3%.  Not bad at all!  I'll take it!