Quick tip tonight: The government holds onto your stuff (or sells it and holds onto the cash) for you-- indefinitely. After all, if they kept it, it would be stealing.
You've probably seen the commercials/spam for services that locate untold millions of dollars that are "rightfully yours." Truth be told, there could be some money that is rightfully yours; and you don't have to pay someone to find it for you!
Simply visit unclaimed.org, click on your state, and the link will take you to your state's treasurer's website where you can search for your treasures (and that of your family). Be sure to check each state in which you have lived.
Although not really a method for earning money, it is a fun way to spend a few minutes online and perhaps receive some money anyway. I think my husband's family might have something owed to them...
I look forward to hearing about your treasures.
Tuesday, May 19, 2009
Saturday, May 16, 2009
Hooray for Murphy-repellant
Murphy's Law: Anything that can go wrong, will.
A few weeks ago, the air conditioner in my car went out. It started making a noise that sounded like air escaping and then started blowing hot air. Not a good thing, especially when it's already consistently 80-90 degrees here.
When we bought the car, the air was blowing hot. I'm glad we checked, because it was October when we bought it. We had them check it out before we signed anything. It was a good thing, the salesman insisted, because instead of the 'just a recharge' fix he had previously insisted it was, it was a crack in the condenser, and that would have cost several hundred dollars to fix. But, since they caught it before we bought it, they fixed it for us-- no charge.
Fast forward to April. After a few weeks of light AC use, it starts making that ominous hissing sound and blowing hot. Since I have very little clue about anything under the hood, I couldn't remember what part it was that was broken before or what exactly was wrong with it. We took it in to an independent mechanic and got it diagnosed and repaired-- this time they replaced the whole condenser. Stupid, slimy used-car dealer not fixing it like they were supposed to... Oh, did I say that out loud?
Damage: $600
But you know what? That's OK! Because even though Murphy was in my back seat by right (I did finance the car, you know), we made it clear he was not welcome and kicked him to the curb.
How? Our mini-emergency fund. We followed Dave's advice (Dave Ramsey) and kept $1,000 in the bank "just in case." So, a problem that could have wreaked havoc on our finances was really simply a matter of getting it fixed, paying the guy, and taking it home.
Moral of the story: Get an emergency fund! Sock away every spare dollar you find until you have that little safety net safely in a high-yield savings account! That way, when life throws you lemons, you can say, "Hey, look! It's a lemon!" and get on with your life. Without the safety net, life throws you lemons, and all you can do is suck the juice out until your face is puckered grotesquely. So just do it. Start today. You'll be glad you did.
A few weeks ago, the air conditioner in my car went out. It started making a noise that sounded like air escaping and then started blowing hot air. Not a good thing, especially when it's already consistently 80-90 degrees here.
When we bought the car, the air was blowing hot. I'm glad we checked, because it was October when we bought it. We had them check it out before we signed anything. It was a good thing, the salesman insisted, because instead of the 'just a recharge' fix he had previously insisted it was, it was a crack in the condenser, and that would have cost several hundred dollars to fix. But, since they caught it before we bought it, they fixed it for us-- no charge.
Fast forward to April. After a few weeks of light AC use, it starts making that ominous hissing sound and blowing hot. Since I have very little clue about anything under the hood, I couldn't remember what part it was that was broken before or what exactly was wrong with it. We took it in to an independent mechanic and got it diagnosed and repaired-- this time they replaced the whole condenser. Stupid, slimy used-car dealer not fixing it like they were supposed to... Oh, did I say that out loud?
Damage: $600
But you know what? That's OK! Because even though Murphy was in my back seat by right (I did finance the car, you know), we made it clear he was not welcome and kicked him to the curb.
How? Our mini-emergency fund. We followed Dave's advice (Dave Ramsey) and kept $1,000 in the bank "just in case." So, a problem that could have wreaked havoc on our finances was really simply a matter of getting it fixed, paying the guy, and taking it home.
Moral of the story: Get an emergency fund! Sock away every spare dollar you find until you have that little safety net safely in a high-yield savings account! That way, when life throws you lemons, you can say, "Hey, look! It's a lemon!" and get on with your life. Without the safety net, life throws you lemons, and all you can do is suck the juice out until your face is puckered grotesquely. So just do it. Start today. You'll be glad you did.
Friday, May 15, 2009
Brief update
Wow, it's been a while! I've missed March and April's budget/net worth updates, plenty of government financial insanity, Swine Flu panic, and plenty of other blog-worthy subject matter in the interim. But, rest assured, I have not been sitting around doing nothing. No! Here is what I/we have been doing these past two months.
I have been substitute teaching. A lot. I feel like I work, work, work.
I have been teaching voice lessons as well. This does not take up a whole awful lot of time, but it is nonetheless a weekly time commitment. More will be added this summer when some of my students from the school will be taking private voice lessons.
I traveled out of state to help my dad in a craft show that my mom was unable to go to. Not a lot of traffic but a very good time with my dad and a few bucks to show for it.
I started another part-time job. I teach at a well-known test-prep company. (I always knew those ridiculously high test scores would pay off). The pay is actually pretty good for a part-time job, plus I get paid for out-of-class time I spend preparing for each class. And by pretty good, I mean better than my mom's job that she's good at and has been at for several years. Too bad it's only about 15 hours a week.
Outside of work, we rescued a 1-1/2 week-old kitten, bottle fed her, weaned her, and are now litter-training her (she's now about 8 weeks old). We've made some inexpensive improvements to our apartment to make it more home-y. Currently, we spend a lot of time researching, choosing, and driving by homes for sale in our area that are in (what we believe to be) our price range.
I've fallen off the bandwagon a bit as far as couponing goes. I've been working so much and had been spending much more time looking for deals than I really should have that I put it on the back burner for now.
This post is not really very meaty, but I wanted to give everyone an update and mini-explanation as to why I've been so silent before abruptly jumping into more intense subject matter.
Posts may continue to be somewhat spotty for the next few weeks as the school year winds down, but once summer hits, look forward to more consistent work. I look forward to reconnecting with my readers.
I have been substitute teaching. A lot. I feel like I work, work, work.
I have been teaching voice lessons as well. This does not take up a whole awful lot of time, but it is nonetheless a weekly time commitment. More will be added this summer when some of my students from the school will be taking private voice lessons.
I traveled out of state to help my dad in a craft show that my mom was unable to go to. Not a lot of traffic but a very good time with my dad and a few bucks to show for it.
I started another part-time job. I teach at a well-known test-prep company. (I always knew those ridiculously high test scores would pay off). The pay is actually pretty good for a part-time job, plus I get paid for out-of-class time I spend preparing for each class. And by pretty good, I mean better than my mom's job that she's good at and has been at for several years. Too bad it's only about 15 hours a week.
Outside of work, we rescued a 1-1/2 week-old kitten, bottle fed her, weaned her, and are now litter-training her (she's now about 8 weeks old). We've made some inexpensive improvements to our apartment to make it more home-y. Currently, we spend a lot of time researching, choosing, and driving by homes for sale in our area that are in (what we believe to be) our price range.
I've fallen off the bandwagon a bit as far as couponing goes. I've been working so much and had been spending much more time looking for deals than I really should have that I put it on the back burner for now.
This post is not really very meaty, but I wanted to give everyone an update and mini-explanation as to why I've been so silent before abruptly jumping into more intense subject matter.
Posts may continue to be somewhat spotty for the next few weeks as the school year winds down, but once summer hits, look forward to more consistent work. I look forward to reconnecting with my readers.
Friday, April 17, 2009
Tax day has come and gone...
Tax day is gone, and many Americans (myself included) have again waited until the last possible moment to file their taxes.
Filing, while not overly difficult, was somewhat complicated for us this year. We had four W-2s and a Schedule C (for reporting business income/loss), student loan interest reports, plus 1098s for form 8863 (Lifetime Learning Credit) that we eventually found we couldn't even use because we didn't have a tax liability. There's a lot of math involved-- more than just copying numbers from your W-2. Yet, when all was said and done, we will be receiving $631 back from the federal government, plus some from state as well.
This was the first year my husband and I have filed jointly. Previously, school bills and my business had led me to believe that it would just be easier to keep it all separate. I discovered this year that that is not the case. In fact, we likely would not have been able to get as much of a refund if we had filed separately.
Speaking of the math involved, why do so many of us wait until the last minute? Really, most people have 1-2 W-2s and might as well take the standard deductions. Doing taxes that way is very, *very* simple, and with all of the tax software out, even more complicated returns are not much more than clicking a few buttons.
But, per usual, people have waited until the last possible moment. Again. Myself included. If it weren't for deadlines, some things would never get done.
Filing, while not overly difficult, was somewhat complicated for us this year. We had four W-2s and a Schedule C (for reporting business income/loss), student loan interest reports, plus 1098s for form 8863 (Lifetime Learning Credit) that we eventually found we couldn't even use because we didn't have a tax liability. There's a lot of math involved-- more than just copying numbers from your W-2. Yet, when all was said and done, we will be receiving $631 back from the federal government, plus some from state as well.
This was the first year my husband and I have filed jointly. Previously, school bills and my business had led me to believe that it would just be easier to keep it all separate. I discovered this year that that is not the case. In fact, we likely would not have been able to get as much of a refund if we had filed separately.
Speaking of the math involved, why do so many of us wait until the last minute? Really, most people have 1-2 W-2s and might as well take the standard deductions. Doing taxes that way is very, *very* simple, and with all of the tax software out, even more complicated returns are not much more than clicking a few buttons.
But, per usual, people have waited until the last possible moment. Again. Myself included. If it weren't for deadlines, some things would never get done.
Wednesday, March 25, 2009
It's about what you do with it
I have to admit, I'm a sucker for testimonials. I recently spent hours on Dave Ramsey's website reading the "I did it" section about how people got out of debt, how much, how much they made, and how long it took them to do it. When I come across a new blog, I often decide whether or not to subscribe to it based on the author's 'about me' section.
This is why I try to create a balance on this blog between 'objective opinion' (quite the oxymoron-- I mean opinions and explanations of issues outside myself) and personal issues. There are a lot of things on this blog (and more to come) that most people wouldn't share with their best friend, but I chose to share them because I want to help and inspire people to be more and do more with their finances and lives.
With that in mind, I want to offer a little bit of inspiration today by encouraging you to take a serious look at what you have and what you really do with it.
I have to smile, laugh, or shake my head (depending on my mood) when I hear people talk about what they've been able to accomplish with only $3,200/month take-home. Now, I understand that $40k is a decent middle-class income. Still, my husband and I count any month we bring home $1,600 as a good month. That's half of the above-mentioned figure!
Do not get me wrong; I am happy for anyone who is making progress to get out of debt and save for their future, et cetera. What I want to know is, "where is she spending all of that money so that she thinks she is barely able to live on double my income?"
Do you know where our money is spent? Of course you do: on bills, groceries, gas, and some debt. I've posted that information for all to see. Even with some of the glaringly obvious omissions from our budget (such as health and car insurance--we have them, just not in our current monthly budget), $1,600 would cover them all. Whatever we make above our minuscule budget is gravy we use to advance our financial goals.
What would you do if you had to live on $1,600 a month? What would get cut? Before you go crying that it is impossible to live on so little where you live, let me tell you that I live in a big city-- not NYC, but not Podunk, USA either.
What would I do with $3,200? I would pay off my car yesterday, have a close-to-funded Roth IRA for 2008, have two maxed-out Roths for 2009, dollar-cost-averaged, add $7-10k to our savings, and start saving for a nice, 7-day Caribbean cruise to be taken some time next winter (because, after that much saving and investing, we deserve to take a vacation!).
So ask yourself, what do you do with the money you have? Really, the above scenario sounds like the testimonial of a rich person, but it's actually the testimonial of a lower-middle-class person who tells her money where to go rather than wondering where it went.
This is why I try to create a balance on this blog between 'objective opinion' (quite the oxymoron-- I mean opinions and explanations of issues outside myself) and personal issues. There are a lot of things on this blog (and more to come) that most people wouldn't share with their best friend, but I chose to share them because I want to help and inspire people to be more and do more with their finances and lives.
With that in mind, I want to offer a little bit of inspiration today by encouraging you to take a serious look at what you have and what you really do with it.
I have to smile, laugh, or shake my head (depending on my mood) when I hear people talk about what they've been able to accomplish with only $3,200/month take-home. Now, I understand that $40k is a decent middle-class income. Still, my husband and I count any month we bring home $1,600 as a good month. That's half of the above-mentioned figure!
Do not get me wrong; I am happy for anyone who is making progress to get out of debt and save for their future, et cetera. What I want to know is, "where is she spending all of that money so that she thinks she is barely able to live on double my income?"
Do you know where our money is spent? Of course you do: on bills, groceries, gas, and some debt. I've posted that information for all to see. Even with some of the glaringly obvious omissions from our budget (such as health and car insurance--we have them, just not in our current monthly budget), $1,600 would cover them all. Whatever we make above our minuscule budget is gravy we use to advance our financial goals.
What would you do if you had to live on $1,600 a month? What would get cut? Before you go crying that it is impossible to live on so little where you live, let me tell you that I live in a big city-- not NYC, but not Podunk, USA either.
What would I do with $3,200? I would pay off my car yesterday, have a close-to-funded Roth IRA for 2008, have two maxed-out Roths for 2009, dollar-cost-averaged, add $7-10k to our savings, and start saving for a nice, 7-day Caribbean cruise to be taken some time next winter (because, after that much saving and investing, we deserve to take a vacation!).
So ask yourself, what do you do with the money you have? Really, the above scenario sounds like the testimonial of a rich person, but it's actually the testimonial of a lower-middle-class person who tells her money where to go rather than wondering where it went.
Friday, March 20, 2009
Dave Ramsey wouldn't approve...
I do admit that I am a pretty big fan of Dave Ramsey. I like his no-nonsense, common sense approach to personal finance and his Biblical/charitable perspective is no turn-off either. Still, I did break a cardinal rule a few months ago-- I bought a car using credit instead of cash. Here is why I believe Dave to be wrong in this particular case.
Dave would say I should have sold my car, bought a clunker, and saved for a newer car and paid in cash.
Here's the scenario-- I already drove a clunker. It looked decent, but it had who knows how many miles on it (the odometer broke 5 years ago at 144k+), everything leaked, and was getting *horrid* gas mileage. Our gas budget at the time was $600/month. Yikes! I was in school at the time and worked very little (the program I was in specifically forbade working); Hubby worked two jobs and our out-go was still 100% of our income. We had zero room to 'save up' for anything, even though I budgeted the blood out of every penny we got. Ask anyone who knows me-- if there was room to be saving, I would have been saving.
We had about enough money in the bank to pay for exactly the same car I already had or to make a pretty darn good down payment while leaving a $1,000 emergency fund. We shopped around for a while, found this car and got a payment of $103/month. The car gets decent gas mileage (24ish) and we were able to drop our gas budget in *half.*
So, we added $100 to our monthly bills, but saved $300 per month in gas. This means we could make 3x payments and be out of debt very soon. Plus, the sale of my old car brought an injection of cash roughly equivalent to 1/5 of the original balance.
I am very debt-averse and I grew up in a family that does not believe in car payments. No one is foolish enough to buy something that loses half it's value as soon as the deed is done, or so I thought. However, with some research, I was able to find a vehicle old enough to be price-stable and new enough to last a good long time, priced where I could sell it in a year for about the price I paid if I wanted to. We specifically got something family-friendly so that I could drive it for ten years if I so choose.
We are dumping this debt as soon as possible. We don't even own a credit card (although if we had longer to pay on the car I would consider a 0% for that purpose only...). Although I agree with Dave 99.9% of the time, I really believe that we made the best decision for us at the time. I will drive this thing into the ground and never have a car payment again.
Dave would say I should have sold my car, bought a clunker, and saved for a newer car and paid in cash.
Here's the scenario-- I already drove a clunker. It looked decent, but it had who knows how many miles on it (the odometer broke 5 years ago at 144k+), everything leaked, and was getting *horrid* gas mileage. Our gas budget at the time was $600/month. Yikes! I was in school at the time and worked very little (the program I was in specifically forbade working); Hubby worked two jobs and our out-go was still 100% of our income. We had zero room to 'save up' for anything, even though I budgeted the blood out of every penny we got. Ask anyone who knows me-- if there was room to be saving, I would have been saving.
We had about enough money in the bank to pay for exactly the same car I already had or to make a pretty darn good down payment while leaving a $1,000 emergency fund. We shopped around for a while, found this car and got a payment of $103/month. The car gets decent gas mileage (24ish) and we were able to drop our gas budget in *half.*
So, we added $100 to our monthly bills, but saved $300 per month in gas. This means we could make 3x payments and be out of debt very soon. Plus, the sale of my old car brought an injection of cash roughly equivalent to 1/5 of the original balance.
I am very debt-averse and I grew up in a family that does not believe in car payments. No one is foolish enough to buy something that loses half it's value as soon as the deed is done, or so I thought. However, with some research, I was able to find a vehicle old enough to be price-stable and new enough to last a good long time, priced where I could sell it in a year for about the price I paid if I wanted to. We specifically got something family-friendly so that I could drive it for ten years if I so choose.
We are dumping this debt as soon as possible. We don't even own a credit card (although if we had longer to pay on the car I would consider a 0% for that purpose only...). Although I agree with Dave 99.9% of the time, I really believe that we made the best decision for us at the time. I will drive this thing into the ground and never have a car payment again.
Thursday, March 19, 2009
Scooter economics
Ever since last summer, when gas prices were starting to get close to $4/gallon where we live, my husband and I have been thinking about purchasing a scooter. Since we seem to have a knack for living within a mile or two from at least one of our jobs, it seems like it could be a good investment that saves a lot of money in gas. Let's do some math, shall we?
Original investment: approx $1,200 (let's make it $1,500, to make it safe)
New licenses with motorcycle clearance: $70 (for two)
Insurance: I have absolutely no idea and I can't get a quote without giving every ounce of personal info I can-- we'll say $200/year, since that's about what I paid on my last car...
Registration: $100 (again, high-balling it)
Total: $2,070
So that's a hefty start-up cost. What will it save me?
My car gets about 24mpg and my husband's gets about 15mpg. We will say that the scooter gets 75mpg. It is a safe bet to assume that he will drive my car more if I have the scooter, but let's run the numbers both ways.
Our vehicle budget is $300/month. Assuming we each use equal parts for gasoline, that would put us each at $150.
My car gets24 mpg. 24mpg is approximately 1/3 of 75mpg, thus we can assume that I would save 2/3 of my part of our monthly gas allowance. 1/3 of $150 is $50, so I would save $100/month in gas by riding the scooter or $1,200/year.
Hubby's car gets 15mpg. 15mpg is 1/5 of 75mpg, thus saving 4/5 of his monthly allowance if he drove my car instead. 4/5 of $150 is $120/month saved by the scooter or $1,440/year.
Not bad, not bad at all. The scooter would pay for itself in about a year in this scenario. Especially if we deal-hunt and get a good scooter for under $1k, find good but inexpensive insurance, and we find that I've grossly overestimated other costs (which I usually do). Just dropping the initial cost of the scooter to $1k means the whole shebang is paid for the first year.
Not everything is oh-so cut and dry. I would drive one of our regular vehicles in the event of inclement weather or any time I have a lot of cargo to carry or need to use the interstate. (I am intentionally looking for something about 150cc so that it can go as fast as I need it to without going fast enough to really take it on the highway.) Not driving the scooter exclusively cuts into the actual amount of gasoline savings. Another year of skyrocketing gas prices could put saving over the top. There are plenty of what-ifs to think about.
I happen to have just about enough cash to pay for a nice, used scooter outright. Would you spring for it? On top of the economic benefits, it seems like a ton of fun! Soon my new-to-me car will be paid off (approximately 6 months into a 60 month loan... forgive the minor bragging...) and come fall if/when I'm working right down the road it could be a good thing. I hope to have some discussion on this one-- I really want your input.
Original investment: approx $1,200 (let's make it $1,500, to make it safe)
New licenses with motorcycle clearance: $70 (for two)
Insurance: I have absolutely no idea and I can't get a quote without giving every ounce of personal info I can-- we'll say $200/year, since that's about what I paid on my last car...
Registration: $100 (again, high-balling it)
Total: $2,070
So that's a hefty start-up cost. What will it save me?
My car gets about 24mpg and my husband's gets about 15mpg. We will say that the scooter gets 75mpg. It is a safe bet to assume that he will drive my car more if I have the scooter, but let's run the numbers both ways.
Our vehicle budget is $300/month. Assuming we each use equal parts for gasoline, that would put us each at $150.
My car gets24 mpg. 24mpg is approximately 1/3 of 75mpg, thus we can assume that I would save 2/3 of my part of our monthly gas allowance. 1/3 of $150 is $50, so I would save $100/month in gas by riding the scooter or $1,200/year.
Hubby's car gets 15mpg. 15mpg is 1/5 of 75mpg, thus saving 4/5 of his monthly allowance if he drove my car instead. 4/5 of $150 is $120/month saved by the scooter or $1,440/year.
Not bad, not bad at all. The scooter would pay for itself in about a year in this scenario. Especially if we deal-hunt and get a good scooter for under $1k, find good but inexpensive insurance, and we find that I've grossly overestimated other costs (which I usually do). Just dropping the initial cost of the scooter to $1k means the whole shebang is paid for the first year.
Not everything is oh-so cut and dry. I would drive one of our regular vehicles in the event of inclement weather or any time I have a lot of cargo to carry or need to use the interstate. (I am intentionally looking for something about 150cc so that it can go as fast as I need it to without going fast enough to really take it on the highway.) Not driving the scooter exclusively cuts into the actual amount of gasoline savings. Another year of skyrocketing gas prices could put saving over the top. There are plenty of what-ifs to think about.
I happen to have just about enough cash to pay for a nice, used scooter outright. Would you spring for it? On top of the economic benefits, it seems like a ton of fun! Soon my new-to-me car will be paid off (approximately 6 months into a 60 month loan... forgive the minor bragging...) and come fall if/when I'm working right down the road it could be a good thing. I hope to have some discussion on this one-- I really want your input.
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