scfr's Personal Finance Blog

It really is a gift to require so little to be blissfully happy, don't you think?

Yesterday my favorite guy treated me to brunch at IHOP with a BOGO coupon he found (no beverage purchases required ... just buy one entree, get one free). So glad I decided to teach DH about coupons!

After that, we visited 2 new home centers. At one we received a $10 Target gift card for visiting (we filled out a form and they will be mailing it)...We had seen an ad in the paper and knew we could get the gift card for visiting. At the 2nd place we got free drinks.

In the late afternoon I took my dog for a long walk.

After dinner at home, DH and I watched "Planes, Trains, and Automobiles" with Steve Martin & John Candy on TV. (Our current apartment comes with cable included.) We laughed our heads off.

So little spent. Just the cost of one entree + tax & tip at IHOP. The $10 gift card will more than cover the cost of the gas we used.

Such a divine day. Just like a mini-vacation. 'Tis a gift to be simple ...

If anyone knows how Costco sets their gas prices, please do share with the rest of us!

When we lived in Seattle, our Costco's gas prices were consistently a few cents less other nearby gas stations.

When we moved here to Austin, we initially found the Costco prices to be equal to the lowest-priced "regular" stations. So, I thought there was no difference and that it was a regional thing.

But just recently, since the latest spike in gas prices started, I have found Costco Austin's gas prices to be a bit lower than others.

Yesterday I paid $3.599/gallon at Costco, while other stations were charging $3.639 - $3.699.

The last time I filled up at Costco (about a month ago), the price was about 3-cents less than the stations.

This has me wondering if Costco uses a formula where they have a fixed profit they make, while maybe the "regular" stations are taking advantage and doing a teensy bit of "gouging"?

In any case, Costco is definitely shining right now as far as gas prices go.

What are you all experiencing where you live? Are you noticing a bigger price gap on Costco gas recently, or has the gap stayed the same as usual?

P.S. - As I was getting ready to leave Costco yesterday, a lady just about gave me a heart attack when she ran up right behind my car just as I started backing out and disappeared from view. Of course I hit the brakes ... She stood up and just stood there for a second staring at what I swear was a coin in her hand! For crying out loud, I'm all for picking up coins off the ground, but please don't put your life and my sanity in jeopardy like that! Wanna know my first thought? "That couldn't be baselle, could it? Naw - She doesn't live in Austin!"

When I was fresh out of college, I "inherited" 2 cats. Not knowing any better, I started out feeding them an el-cheapo brand of food from the grocery store. Then one of them developed a bladder stone and had to have surgery. The vet thought the stone developed because of her diet, and so the el-cheapo brand went in the trash, and I started paying much more attention to the kitties diet and making smarter choices. Thankfully, they never again had a diet-related condition. I learned the hard way (through pain & suffering for my poor cat and a big hit to the wallet for me) that when it comes to pets diets, prevention is indeed the best medicine.

Kitties crossed the rainbow bridge many years ago, and shortly thereafter destiny brought a dog into my husband & my life.

Now definitely older and hopefully wiser, when buying food for our dog, I put the emphasis on buying the healthiest possible food, but of course I also try to buy it at the lowest possible price. I shop for "value" rather than "cheap." He eats twice a day ... 12 meals each week are dry food, but twice a week he gets a can of wet food as a treat and as a way to provide variety (and hopefully improved nutrition) to his diet. He gets one treat in the evening (his reward for "doing his business" and then letting me brush his teeth), but even those are the healthy variety. His weight is perfect, and it is my sincere hope that he will never have a medical condition that is because of poor diet (because that would be my fault).

So I'm feeling like a good doggy mommy / minder of the family finances today ... I had a successful shopping trip to the pet supply store.

The Haul:
12 Large Cans of Homestyle
6 Large Cans of Wellness
4-lb bag of dry Science Diet Nature's Best

These were the deals:
Homestyle: case discount (10%) plus $5 off coupon
Wellness: buy 3, get 3 free rebate
Nature's Best: Rebate for full purchase price
Total Order Discounts:
- $10 store certificate received in mail
- 10% store member discount (which was free)

Net Cost (once the rebates come in): $12.50 (plus tax) plus $0.84 to mail in 2 rebate coupons.

For those of you without dogs, the Homestyle and Wellness brands of canned food are premium brands that normally cost a bit over $2 a pop. The Nature's Best dry food retails for $11 a bag ... it's not my dog's usual brand ... I usually buy him Costco's Kirkland Signature brand which is MUCH less expensive but also very good quality IMHO ... but when it's free (well, actually 42-cents for a stamp to mail in the rebate), then why not?

The rebate coupons are in the mail already ... I learned years ago to mail them as soon as I get home from the store (otherwise I forget).

We had a CD that was maturing tomorrow (Sunday). Since our bank is open on Saturday mornings and their computers were operating as if it was Monday already (since Monday is their next business day), we were able to go in today and get the CD closed without incurring any interest penalty. That was nice and convenient.

What was not so nice was waving buh-bye to the nice 5.3% APY we had on that CD!

I wonder when we will see rates like that again ... Can't happen soon enough as far as I'm concerned!


Oh well, I should count my blessings.

- Our Wachovia MMA has an APY of 4.75% that is locked in for about another 7 weeks.

- DH pushed me to open a 10-yr CD back in Nov ... I was a bit resistant at the time, but now am grateful for the 5.91% APY on that one

- And of course the fact that we have money in the bank at all ... That is certainly a blessing!

Gonna try to get caught up on a big list of things I have been wanting to blog about. Please pardon the long and varied "everything but the kitchen sink" type post.

1. "Journey to Balance Sheet Affluent" Update: Did my end-April Net Worth Statement while the guys were out golfing on Sunday, and updated my number there to the left. Obviously, I fell short of my first-year goal. Ironically, the main reason was a very good year last year income-wise, so when I plugged in our new average income, the goal (number to reach) jumped up. The reason for the bigger than expected 4th quarter drop was due to taxes owed on said earnings. Quarterly income and non-tax spending were fine. This led me to question whether or not this is still a realistic goal. For the time being, my answer is a qualified yes. I'll be posting my 2nd year (5/1/2008 - 4/30/2009) goals soon, and for the time being I am going to continue to pusue the goal of becoming "Balance Sheet Affluent" by the time my DH is 50; however, I am going to revisit this within the next year, and would not be surprised if I wind up dropping my goal to something like 1.8 instead of 2.0.

And for those of you who like to compare numbers, please let me remind you that I have set the bar extremely high for myself, which is necessary if DH's dream of trying out for the senior golf tour is to have a chance of becoming reality. If not for this dream, I would be happy with any number at 1.0 or higher.

2. Investments = Decided to Stay the Course: Thought I would be switching my STAR Fund to Vanguard Conservative Growth, but after studying that possibility I decided to leave things where they are. If I made the switch, I feel I would be under-invested in international stocks. And besides that, my STAR fund shares are where I give myself permission to be a tiny bit daring.

3. Work: My current work assignment ended today. My next work assignment begins ... day after tomorrow. Perfect. One day off and then back to work. Instead of paying bills & doing laundry tonight, I'll be curling up with a book and putting those chores off until tomorrow.

4. Groceries: YES, YES, YES ... prices ARE up! Here are 2 specific examples on prices of items that are consumed almost daily in our home:
- Bananas: Up from 33 to 44 cents per lb. That's a 33% increase!
- Rice: 20-lb bag up from $14 to $17. That's a 21% increase!

I think what is so "big" about the current price increases is that they are so across the board, rather than commodity specific. We're all used to seeing prices on certain items spike due to crop failures or seasonality. But when that happens, we just make substitutions, right? For example, in the past, if I had seen that bananas were up 11 cents per lb overnight, I would have looked at an alternate fruit. But guess what? Apples are also up, 20 cents per lb, and no other fruits come close to giving me the same bang for my buck. So, I buy bananas at the higher price.

I feel fortunate that even if my vigilance to "shop smart" is not enough to compensate for the increases, I am still able to absorb the price increases, and don't have to take exteme measures (such as giving up buying fresh fruit). I cannot believe that the increases are not affecting those less fortunate, and I am sympathetic.

One thing that I am doing to keep my own grocery bill down is teaching my husband some of my shopping techniques (for example: combine a sale w/ a coupon or skip buying that item this week) so that when he goes to the store the bill will be lower. Just recently, he used coupons for the very first time.

4. Speaking of Good Cheap Food: I recently discovered a great side dish ... Texas Caviar! No, it's nothing like Rocky Mountain Oysters ... It's a spicy black eyed pea salad. Nutritious and Delicious! Fantastic with BBQ or really as a side dish with anything. If it sounds like something you'd like to try, just Google it and you'll find recipes.

5. The Jonses House: Previously I blogged about "The Jonses" house in my old neighborhood that went in to foreclosure. After being foreclosed on, listed by the receivier for well under what was owed on the mortgage, and having a couple price drops, the house finally went under contract. I don't know the sale price, but given the latest list price it is very likely it sold for at or near the "lowball" price DH & I threw out about a year ago. This reinforced 2 things in my mind:
- We should continue to trust ourselves and our sense of where the market is.
- By all means look at buying & selling a house as a business transaction. Regardless of how you feel about it while you are living there, while you are buying and selling you are making an investment! Once the receiver took over, they approached the sale of the Jonses house in a very businesslike manner ... Pricing to market (no ego or emotion involved) and dropping the price as needed.

6. Interesting Retirement Tidbits: Saturday's Wall Street Journal published some very interesting survey results ... Definitely gave me some things to think about when considering retirement. Here are some of the items that gave me the most food for thought:

Q: What percentage of retirees say they left the work force earlier than planned?
A: 51%
My Thoughts: Wow! Sounds like it might be a good idea to chop a few years off of the age you enter as your expected retirement age when you run those calculators. For example, if you plan to retire at 65, plug in 60 or 62 to be safe.

Q: Surveyed adults ages 55 to 74 said they spend the greatest percentage of their leisure time doing which of the following? (choices were Socializing & Communicating, Watching TV, Reading, Relaxing & Thinking, Traveling)
A: Watching TV
My Thoughts: That is sad. Note to self = Make a plan pre-retirement for a life of meaningful activities!

　Q: What percentage of workers in the US say they or their spouses currently are saving for retirement?
A: 64%

Q: What percentage of workers age 55-plus report having $250,000 or more in savings and investments (not including primary residence or defined-benefit plan)?
A: 23%

Q: What percentage of US households are at risk of being unable to maintain their standard of living in retirement?
A: 44%

My Thoughts on the Above 3: Wake up America!

A very nice benefit of relocating is that, if you move to a nice place people are interested in visiting, you will get visitors!

Last weekend my aunt & uncle stopped by on their way back to the West Coast from doing volunteer work in Mississippi. They were road-tripping and we are not yet in a position to put people up overnight, so they did not stay long, but we did enjoy a lovely, leisurely early dinner together and a couple hours of wonderful chat before they had to head to their next campground. They took backroads and enjoyed seeing lots of wildflowers!

This evening a friend from overseas is flying in for the weekend, stopping by on his way to a convention in Vegas. [He decided to detour to Austin just to see us. Whether he wants to see us or sees this as an opportunity to check out Austin, I do not know. In either case, we're happy he's coming!] That means dinner and more friendly chat for all of us tonight, then a fun day of golf for him and DH tomorrow.

I need to do my end-April net worth statement and update my "Journey to Balance Sheet Affluent" progress, but right I'm just more in the mood to play hostess to my visitors than play with my spreadsheets!

As Suze Orman says: "PEOPLE FIRST, then money, then things."

Have a nice weekend everyone!

Yesterday my 5yo niece called me to tell me she had slipped getting up from the table, cracked the bottom of her chin on the table, split it open, and had to get stitches under her chin, so now she is going to have a scar under her chin just like her Aunt (me).

After telling me about how the stitches really didn't hurt because they were "butterfly stitches" and that she was very brave and did not cry so her mommy bought her a toy, we started talking about her new allowance. She became very animated and explained how when she gets her allowance ($3) she puts one dollar in the giving bank, one dollar in the college bank, and one dollar in the spending bank (which she saves up to buy something like a toy).

I asked her what her favorite thing was about getting an allowance. I completely expected her to say that it was when she got to go buy a new toy. But she said: "I Like to put Money in my Bank!" And of course I replied: "Me too, xxx! I like to put money in MY bank!"

Now we have 2 things in common.

I know from the comments left after I posted about setting up my HSA that some of you are interested in them.

So .... here's a little tip that I learned the hard way and that I hope will help you:

The first year you have set up an HSA, you have to pro-rate your contribution based on how long you had your HDHP.

For example, I had my HDHP for only the last 2 months of 2007, so the maximum I was allowed to contribute to my HSA (for a family) was:

$5,650 (maximum allowed 2007 contribution) / 12 months of the year x 2 months I had the HDHP = $942

But of course this did not dawn on me and I over-contributed. (Got too excited about the potential tax savings, I guess.) As MonkeyMama would say - "Doh." Rookie mistake.

Fortunately, it was not a really big deal. As soon as Turbo Tax told me I had made a "boo-boo" I contacted my HSA bank, and filled out a Distribution form for the Excess Contribution, and they sent me a check.

If you open an HSA this year, save yourself a step and pro-rate your contribtuion!

I've been in earning mode lately ... Taking on extra shifts to earn OT when available, and busting my backside to get performance bonuses at work. Since I'm currently doing work that is intermittent temp assignments, I figure I might as well "make hay while the sun shines."

This weekend I got a full 2-day weekend (No extra shift available).

I'm happy for the bonus money when it's available, but I'm also happy for the "bonus" time this weekend!

Another bonus I've been enjoying is my first ever wildflower season in Austin. One nice thing about living in a brand new place is the chance to see seasonal changes in a completely different way than what you are accustomed to.

The wildflowers are really weeds, so they pop up anywhere you would normally see weeds, such next to roadways, so there is no need to go out looking for them ... I see lots each day on my way to and from work and when out walking the dog. I'm quite captivated and trying to learn how to identify them. The ones I'm seeing the most these days are pink evening primrose & bluebonnets.

I did not take these photos, they are from the Lady Bird Johnson Wildflower Center website:

Yay! Just got my $100 bonus from TD Ameritrade for opening my Suze Orman "Save Yourself Account" and making my required 12 monthly deposits of $50 each!!!

WOOHOO!

Guess I can close my account now ...
Sorry Suze & TD Ameritrade.

I think the first rule of sensible spending is "know yourself." Do you like to change things up once in awhile, or are you happy wearing the same things until they wear out? Me ... I'm happy wearing the same things until they are no longer functional. So, I try to shop accordingly.

A watch & my glasses (and my wedding ring of course) are the only accessories I wear most days.

I have 2 watches --- The 2nd was a gift. 2 watches aren't necessary, but after I received the 2nd I realized it is nice to have both brown (Guess) & black (Seiko).

Anyway ... The older watch, the Guess brand, is I-don't-know-how-old ... I am guessing around 18 years. I just got the battery replaced ($10) and realized I have lost track of how many times I've replaced the battery or had the strap changed (because it broke or wore out).

Will most watches last forever, as long as you're just giving them normal wear and tear? Will the battery need to be changed more and more frequently as the watch gets older? Are watch batteries so standard that I can expect to always be able to find a replacement battery that fits my watch? Can I keep wearing these watches indefinitely?

How old is your watch?

I will be perfectly happy if I can keep wearing these same 2 watches until the day I die.

It's the same thing with my glasses. I get my prescription updated every few years, but I don't change the frames unless I have to. I have had to change the frame because either the frame broke (walked in to a bike rack sticking way out off of the back of a car and didn't see it - ouch) or I can no longer get lenses that fit the frames. Last time I bought new frames I narrowed it down to 2 frames, then asked the gals at Costco to help me choose. Knowing myself, I told them I'd like to update my look a bit, but not be too trendy because I would probably be wearing those same frames for at least 10 years, maybe more. They pointed out something about one of the frames that made it a bit trendy (was it the shape?), and that was all I needed to know to make up my mind. I bought the other pair.

New jobs always come with "issues" don't they? I hesitate to use the word "issues" in this case because it sounds so negative, when really I just have "things that need to be worked out."

1. Auto Deposit: Friday was my first payday for my new job. I signed up for auto deposit. No deposit yet. Probably just a glitch somewhere, something that I need to get worked out either with my bank or the payroll department. Glad I wasn't desperately waiting for that money to pay bills!

2. To Buy or Not to Buy a 2nd Car? DH just returned from a business trip, so tomorrow will be the start of my needing to get to work every weekday and us having only 1 car. Taking the bus is not an option (the nearest bus stop that goes to my office is 70% of the way to work, so no point in driving that far and not driving all the way in, and I haven't been able to find a carpool. [Parking is free BTW.] As far as I'm concerned, the pay for the job does not justify the cost of a 2nd car, not to mention the fact that it's temp work, so I don't want to buy a 2nd car just because of this job. The distance from home is so far that it doesn't make sense for DH to drive me every day. I've suggested that we try something like I drive myself 3 days a week, and 2 days a week DH drive me in & pick me up so that he can have the car for golf, errands, etc. We are probably just delaying the inevitable of buying a 2nd car eventually, but I do still want to delay it as long as possible. We'll see how it goes ... Hopefully being home without a car (and unable to go hit balls at the driving range) won't be too hard on DH.

3. Clothes = Not Want or Need but "Kinda Sorta Ought to Get"???: I think we need a word for something that is neither a want nor a need but something in-between. I could really use some new clothes for this new job. I have never been what you'd call a clothes horse ... sssh, it's a secret, but DH has always had at least twice as many clothes as me! For a long time I worked in the corporate world, then when I owned my own business the "dress code" (or lack of) was very very casual. Prior to our move, not knowing what would work in the new climate or what type of work I would be getting in to, I did things like let my one remaining pair of tennis shoes wear down to where there were holes in the bottom of the soles, then I just tossed them before we moved. [Didn't buy replacements as it would mean one more thing to move.] Now I'm working in a casual office environment, where the corporate suits don't work and the super casual clothes might not get me fired but probably wouldn't enhance my rep either. I do have enough clothes that fit in to the "in-between" world and work in this much warmer climate where I don't actually NEED to buy new clothes(I could keep wearing the same things over and over if I honestly did not have the money to buy anything new), and I don't like clothes shopping or spending money unnecessarily so I certainly don't WANT new clothes. However, it probably would be a good idea to buy a few more pieces so that I can have a bit more variety in my wardrobe, don't end up wearing the same things over & over, and don't have to panic if the laundry doesn't get done right on schedule. [Although this work is temporary, I should have recurring temp assignments in the same work environment.] I do have the money to buy clothes, and haven't bought any for such a long time, that there's really nothing to stop me other than my dislike for clothes shopping.

Well ... I went ahead and made a list of what I could buy that would add the most variety to my wardrobe, and I've come up with a shopping strategy (hit Goodwill first, then a consignment store where I'm going to sell some things as well as look for some new for myself, and finally the clearance rack at a couple retail stores). I'm going to try to find a day when I have enough time and energy to get everything I "need/want/???" in one day. Just get it over with!

Today is one of those days ... I have the time and energy ... But glory halleluiah many stores are closed because of Easter so I have a reprieve until at least next weekend!

Over a year ago, I posted on the forums regarding my older sister's financial troubles, the extent of which really became clear for me when she called to ask to "borrow" money to have her suffering cat put to sleep:
http://www.savingadvice.com/forums/general-discussion/26108-...

Thanks to all of the great feedback I received, I decided to "play it very cool" even tho' I wanted to jump in to "crisis mode!" I think I've managed to avoid turning her off by becoming preachy. She continues to make slow progress, and I keep my eyes and ears open for opportunities to offer support and make occasional gentle suggestions.

In addition to the steps mentioned on the forums (such as giving her a copy of Suze Orman's Women & Money), I've done a couple small things since then.

- When my other sibs and I went to DC, she decided to stay home to build up her emergency savings. Tho' we normally don't exchange Christmas gifts, I bought her a small souvenier gift in DC and attached a brief note telling her how much I supported her decision. She loved the gift.

- Sis is a hard-core environmentalist. She buys TP made from recycled paper. I knew better than to tell her to buy cheaper TP. But, when I saw that Costco started carrying TP made from recycled paper, I called her to let her know, and she thanked me. (She is not a member herself, but has friends she can tag along with when she wants to.)

- When I read a blog entry on "America Saves Week" (I am so sorry that I don't remember the name of the blog author) I sent her a little "FYI" with a link.

This is the Email I received in return:
thanks!

I've been doing the writing-down-every-penny-I-spend thang, to find the places I can cut a little to help save for my big trip with (name deleted). I honestly had no idea how much my couple lattes a week added up to until I did that........

Boy did that warm my heart!

Honestly, without the SA members' help, I know I would have come on too strong and just turned sis off. So thank you so much for helping me come up with a rational, reasonable approach.

DH is on a business trip, and had to lay over in Washington DC. [That was the only routing available to get the free ticket he wanted using his mileage.]

I had to practically NAG him to get him to go downtown and take in some of the sights. (I suggested he spend one extra day in DC, since he had to fly through there anyway, but he wouldn't hear of it.) He has never been there, and he is not a US citizen, so he didn't get what the big deal was, even after I showed him my pictures and brochures and tourist book souvenier and raved about it. I told him it's like The Louvre, Champs Elysee, Eiffel Tower, and Versailles all rolled in to one, only better! Since he only has this evening, I strongly encouraged him to take the Grayline nighttime bus tour so he could see as many sights as possible in a short time, even tho' it would mean buying a ticket and he would have had to take a cab back to his hotel from a Metro station. I told him "I know that will cost money, but I promise you that it is money you will never regret spending for as long as you live."

I'm happy to report that after much encouragement he finally decided he was willing to spend the money.

Unfortunately, the bus tour was sold out. But he did head downtown as soon as he checked in his bags. He rushed around seeing as much as he could (White House, Smithsonian Air & Space Museum, etc --- unfortunately I don't think he saw any of the monuments) and ended up with blisters on his feet! He called me from the Air & Space Museum quite exhilarated, saying "I could stay just here for hours!" And he has decided that if his flight tomorrow is overbooked, he will volunteer to get bumped!

Hopefully if something like this ever comes up again, he'll listen to me a little sooner! I'm all for saving money (and I certainly would have asked for the AAA discount from Grayline), but goodness, when you have the opportunity to have such an enriching experience, if it causes no strain on the budget, just go ahead and spend the money already!

Are you surprised to hear me say that? Some people think I'm a total tightwad, but I disagree. I will squeeze a penny till it screams, but I also am willing to spend when I truly think it's worthwhile.

Recently finished reading "The Number: A Completely Different Way to Think About the Rest of Your Life" by Lee Eisenberg.

From the inside flap: "It's the burning question for 76 million baby boomers. It is a question that ought to burn for everyone over thirty. It is a life-defining issue. Most of us don't want to face it, but we have to. It's The Number: How much money do you need to secure the rest of your life? Do you know what your Number is? Do you know how to think about it? Do you know what you want to do with it?"

First of all, I should say that while this is a personal finance book, it is NOT a general advice PF book. It is very focused on retirement, and it is probably most appropriate for folks who already have a fair amount tucked away in their retirement savings and are attempting a "reality check" about where they stand. If you are in the earlier stages of the PF journey (struggling to get out of debt, working out a budget, learning about 401Ks and IRAs and such) then this is NOT the book for you. I know everyone's situation is unique, but I'll throw out "35 and older, if retirement savings are your primary financial concern" as an appropriate demographic for this book. But if you're 30 and are hoping to retire at 50, by all means give it a look-see.

I enjoyed this book. Overall, I'd give it a B+.

The author spends quite a bit of time exploring all of the variables that make coming up with "The Number" so challenging. He also encourages us to think about how we envision our lives in retirement. He met with people who help others plan for their retirement (CFPs and the like). And he visited with people who are preparing for retirement or are already retired to see how they are "living their dream." He attended retirement planning seminars, met with the brain power at Fidelity Investments, and visited "active adult" communities. He writes with a sense of irreverant humor that sometimes borders on the snippy (he did live in NYC for quite a while which may explain that).

This book raised more questions than it answered (and that is not necessarily a bad thing), tho I did come away feeling that I had a slightly better grasp on my Number.

I really liked what he calls the "10 commandments of modern portfolio management" ... his condensation of the rules written about so much in the financial press that unfortunately too many people still don't follow. The following are Mr. Eisenberg's words, not mine, from pages 125-6 of the book. (If I'm breaking any copywrite laws, let me know and I'll delete.)

------------------------------------------

* Thou shalt not put all thy eggs in one basket.

* Thou shalt have the patience of a nesting hen.

* Thou shalt know that past performance is no guarantee of future results, nor shalt thou become so exuberant so as to forget that eggs drop, cookies crumble, bubbles burst, and that which goes up will eventually come down.

* Thou shalt not invest in anything thou dost fail to understand.

* Thou shalt not question the divine power of compounding interest.

* Thou shalt not squander long-term returns by incurring frequent trading commissions or excessive management fees.

* Thou shalt honor thy company's retirement plan.

* In particular, thou shalt honor thy company's match --- after all, it's free money.

* Thou shalt take on risk commensurate with thy ability to sleep well at night.

* Thou shalt honor thy age and timeline by properly apportioning thy ratio of stocks to bonds.

----------------------------------------

If you'd like to learn more, you can find links to articles by the author at the following site:

http://www.thenumberbook.com/thebook/articles.php

I'd recommend starting with the article "Nailing Your New York Number" from New York magazine.

I think my most important financial tool is my calendar. In my house, I am "defensive coordinator" ... I take the lead in making sure that the money that comes in STAYS in, rather than getting wasted on interest (paid or missed), late fees, penalties, or just missed opportunities.

I do not have an especially organized mind, and so I write oodles of reminders on my calendar. My husband thinks I'm a bit bonkers, but as soon as I become aware of an important date, I stop whatever I am doing and go to my calendar and write it down. Why? Because I learned the hard way just how quickly I can forget things. (And DH may think I'm bonkers, but I can't tell you how many times I have had to remind him of things he thought he would remember! I can't tell you because I already forgot!)

Some calendar notations are specific to a date when action must be taken:
- Days to pay bills or the rent
- Dates CDs are maturing
- Dates taxes are due (annual federal income, self-employment taxes, property taxes, city & state business taxes)
- Business Meetings
- Doctor or Dentist Appointments (who wants to pay no-show fees?)
- Dates library materials are due (who wants to pay late fees?)
- Dates to give the dog his monthly preventative, when his shots are due, or when his license expires (prevention is the best medicine after all)
- Driver's License and Passport expiration dates
- Date lease expires & deadline to give notice if moving out
- Election Days
- Day the postage rate increases (to 42-cents on May 12)

Some notations are general "on or around" reminders:
- Note to call a friend on the weekend, when cell phone minutes are free
- Order free credit report
- Take defensive driving course again to re-qualify for insurance discount
- Fund HSA or IRA
- Schedule a vet, doctor, or dentist appointment
- When it's okay to close a bank account without incurring an early-closing penalty
- When we can get a free carpet cleaning through our landlord

Some are notations in the form of a question. They are reminders to myself not to let things slip through the cracks, to followup if something has not been done:
- Did I receive that refund from Greyhound for my trip to DC?
- Did I get that prepaid gift card from Wachovia for opening the new account?
- Have I received that cashback bonus or those reward point redemption gift cards?
- Did Geico post the 10% discount for taking the defensive driving course?
- Did so-and-so reply to my account query?

On the last page of my calendar, I write notes that extend beyond the current year. Even tho' we are only 2 months in to 2008, I already have 7 notations for 2009 and later. Some of the really far away notations that just might illustrate that my husband is correct when he thinks I'm bonkers include the following:
- "2011 = Estate Tax exemption reverting back to $1mil??? Is there still no spousal exemption for non-citizen spouses? If our net worth exceeds $2mil, we need to think about what this means." --- Please do note the word IF in the preceeding sentence! Keep hope alive!
- "12/21/2012 - 'End of era' per Mayan calendar" --- Please don't ask me what I think this means. I have no idea. Just thought it might be something to think about as the time gets closer
- "~2013: Think about getting long-term care insurance (can pay for premiums w/ HSA)" --- This is a result of my decision to "revisit the whole LTCI question in about 5 years" --- Tho' if the world comes to an end in 2012, I guess it won't really matter, will it?

Wanna peek at a boring investor's portfolio? ...

Are you like me? Do you sometimes wonder what is wrong with you because you aren't getting stratospheric returns on your investments? Do you slightly envy those who so confidently pick individual stocks, buy precious metals, and short put options on future Mars travel (yea ... I made that last one up)?

In the past I have been somewhat apologetic about the conservative nature of my investments. But no more apologies.

I am reading "The Number" by Lee Eisenberg. The Number refers to "How much money you need to secure the rest of your life." This book is not so much about creating a formula for determing your Number as it is an exploration of why coming up with The Number is so challening, and why it must be an on-going, lifelong process. It also offers interesting tidbits in to the world of those who sell financial products.

One passage in the book really jumped out at me (from page 129):

"Risk aversion. Overload. Hubris. That these qualities get in so many people's way, that they louse up investment returns, that they screw up the Number, is deeply regrettable, if only because they can be tempered by a trio of reliable, if boring, traits of character: moderation, balance, common sense."

Yes-yes-yes! Validation! Here's to being reliable and boring! My investments have been seriously thought out, they are working for us, and ... well ... they are very very boring, but no longer embarrassing to talk about.

So, for anyone interested, here is a peekaboo in to the portfolio of this very boring investor. [Why do I feel like I'm about to strip naked in a room full of supermodels?]

1. Cash: Cash makes up the single biggest chunk of our portfolio. Our cash is in MMAs and CDs. [In the past we have had T-Bills as well, and we likely will again in the future ... But not right now, because frankly the yields suck at the moment.] We keep much more cash on hand than the average person needs to. These are the reasons cash is essential for us.
- Cash flow for my husband's business. Squeezing off the business cash flow wouldn't exactly be killing a golden goose, but it certainly would be killing a good ol' laying hen.
- Cushy General-Purpose EF ... one year's living expenses plus ... again, more than the average person needs ... because DH is self-employed and has no guaranteed income.
- Cushions in budget categories where irregular expenses crop up: Medical/Dental/Vision (we have a HSA), Auto Maintenance, Pet Care.
- Cash for the purchase (in cash) of our next house
- Cash for the purchase of furnishings once we have purchased above-mentioned house (we sold almost all of our furniture prior to our move).
- Cash for the purchase of our next car (we are currently getting by with one car, and plan to get by with one for as long as we comfortably can. But we know sometime in the not-so-distant future we may feel a strong desire to buy a 2nd.)

2. TIPS (purchased directly from Treasury Direct): A very slender portion of our portfolio, but worth mentioning since they don't fit in either of the other 2 categories. And they are a little pet investment of mine. As with the T-Bills, we are not purchasing any more at the moment because they are just too white-hot popular.

3. Mutual Funds (almost all in the form of tax-deferred investments) ... This is where our boring investment style really shines! We have 3 Vanguard funds, and they are all funds of funds or balanced funds.

Life Stragety Conservative Growth (VSCGX) = 80% of Portfolio (YTD Return = -3.33% / 10 year return = 6.23%)

STAR Fund (VGSTX) = 18% of Portfolio (YTD Return = -4.84% / 10 year return = 7.38%)

Balanced Index Fund (VBINX) = 2% of Portfolio (YTD Return = -4.23% / 10 year return = 6.01%)

BTW, if I had my druthers, we wouldn't have the VBINX fund. However, we needed to keep a very small portion of our investments completely distinguishable from the others for tax-related accounting reasons, so we chose that fund becaue it most closely resembled our chosen funds, VSCGX & VGSTX.

Also, as simple as our choices appear, a ridiculous amount of time went in to making the choices, and it's a somewhat amusing story (which I'll share at another time).

-----------------

Here's the Morningstar X-Ray breakdown of just our mutual funds (percentages rounded off to nearest whole number, therefore total does not equal 100):
Cash = 8%
US Stocks = 40%
Foreign Stocks = 7%
Bonds = 44%


Lg Cap Stocks: 25% Value / 27% Core / 29% Growth
Mid Cap Stocks: 5% Value / 6% Core / 5% Growth
Sm Cap Stocks: 2% Value / 1% Core / 1% Growth

Bonds: All high credit quality, 85% intermediate-term, 15% long-term

Expense Ratio: 0.28%, compared to expense ratio of a similar hypothetical portfolio of 1.42% [This alone is enough to make you break in to a big ol' grin, isn't it?]

----------------

I will be the first to admit that those returns are not one bit sexy; certainly nothing to brag about over on the forums! But I wanted to show that sometimes boring, reliable investments are just fine.

Here are some facts about where we stand:
- Every on-line calculator I can find says that we are on-track or ahead of the game in terms of accumulating what we will need for retirement.
- An analysis prepared for us last year by a CFP, using only our mutual fund investments (not including our cash) showed that we are at 140% of where we ought to be.
- A Monte Carlo analysis that was run for us 1-1/2 years ago showed a 70% success chance of success ... and again, that did not include our cash savings, which presumably (barring any huge business losses) will go in to the retirement funds some day and make our chances of success much higher.

So, maybe being boring isn't so bad after all! I feel pretty good about where we are, and I believe that with continued "moderation, balance, and common sense" we have a pretty good shot at having a secure future. How did we get here?

Rather than looking for the next hot investment, we have focused on:
- Spending less than we earn [This is where everyone has to start. If you don't do this, you are not going to get to your Number. Sorry, it may not be fun, but it's true.]
- Having game, both offense (earning) and defense (keeping big & small spending down, saving, and investing) --- DH is offensive coordinator, and I'm defensive coordinator, but we both play on both sides.
- Running a business
- Sensible investing

Having said all this and having let all of you peek at my boring portfolio, I know I must not rest on my laurels. We have some dreams that don't fit in to the standard "retire at 60 or 65" formulas. I have some ideas about changes I may want to make (such as switching funds from STAR to Conservative Growth), and I need to think about non-tax-deferred mutual fund investing (with part of the cash that we have set aside to buy our house, now that I think it's very likely we'll be spending less than originally planned).

The process continues ...

Great Brunch Out: Today DH & I went to Olive Garden for an early lunch; we both had the all-you-can eat soup/salad/breadsticks combo ($5.95). We had a $4 coupon, so the total with tax & tip for 2 of us came to $10.34 ... Not too bad for a tasty lunch with lots of veggies (tho the lettuce was iceberg), no dishes to wash, and a date with my favorite guy! We don't eat out a lot, so it's always a much-relished treat when we do! [And in case you're wondering, we combined our brunch out with running other errands, so there was very little gas expense.]

Broccoli: Oh I'm still smiling about this... It's been so long since I found a good deal on FRESH veggies! Super Target had a sale on broccoli, the cello-pack bunches for 2 / $3. I had a coupon that I had printed out on-line for $1 off, so I got 2 big bunches of broccoli for $2. Since they charge by the bunch instead of by the lb, of course I chose the heaviest bunches!

Staying Put: We decided to renew our lease, so we'll be staying put for awhile. We do think home prices will drop a bit more, we are completely contented where we are, and it's lovely having our costs so low, so why not wait?
I am kind of burned out on househunting, and am relieved that there is no reason to do any more of that until the fall, when we can get serious about looking (and then hopefully buying) again.

New Job: Forgot to mention that I got a job. It's intermittent full-time ... not contract work, but off & on temp assignments, challenging & enjoyable; I will likely stick with just this until we buy a house.

I've been fortunate to have the opportunity to take many of my dream vacations:

- Alaskan Cruise
- France
- South Africa
- Japan
- Washington DC

(I've done other travelling as well, but these are the ones that fall in to the "long-time dream" category that had nothing to do with social obligations such as visiting family.)

I'm perfectly happy to visit my dream destinations just once, and I don't feel the need to travel constantly. When I went to DC in the fall, it was my first "real trip" in 6 years, and my one (and probably only) trip to that area.

I stretch out my travel enjoyment by immersing myself completely in all of the phases:

Phase 1. Before: Dreaming / Planning / Anticipating (Good for a year or more of happy times)

Phase 2. During (The Trip Itself): Taking it all in, enjoying the fruits of the planning, and being able to leave with no regrets about things left undone.

Phase 3. After: The Fond Memories / Looking at Photos and Souveniers / Being able to relate when you hear stories about the place on the news, etc. (Good for a lifetime of happy memories and a much richer existence)

There are several more places I would like to visit.

I've been to NYC before, but never during the holiday season, and I think it would be really special to see the shops all decorated, to see the Rockettes at Radio City Hall, and perhaps take in the Macy's Thanksgiving Day Parade.

I'd like to go to England/Ireland/Scotland, to see the lands of my ancestors, to see where JRR Tolkein lived & worked and what inspired him, and to visit the Princess Diana memorials.

But my biggest travel fantasy, the one place I feel almost an ache to visit before I die is ... believe it or not ... Cuba!


My Cuba obsession began after seeing the Bueno Vista Social Club on PBS. I'm a big jazz lover. [Surprise! I'm not ALL about money.] I have the CDs; when I play them they never fail to lift my spirits. I just pop in a CD, and before long, I'm fantasizing about sitting in a jazz club in Havana, sipping a mojito, surrounded by people of all colors of the rainbow who are enjoying life and each other's company.



Today Fidel Castro resigned. So ... I have allowed myself to become hopeful that someday before I am too old, relations between the USA and Cuba will thaw, the travel restrictions for US Citizens will be lifted (I'm not the sort to go on a "back door" illegal tour), and I'll be able to fulfill this travel fantasy of mine.


My DH knows of my dream (and now you guys know too), and he has promised that, if the travel restrictions are lifted, we WILL take a trip there together. In the meantime, I will enjoy my free travel fantasies, and will keep saving so that there will be no financial barriers to taking the trip when/if the legal barries are gone.
Viva Cuba!

I've been challenging myself to shower without getting any steam on my mirror:

http://scfr.savingadvice.com/2008/02/11/steam-free-mirror-ch...

Today I had given myself permission to steam up the mirror because I cleaned the shower & tub and then showered immediately afterwards.

But I've gotten so used to limiting my hot water usage that I managed to get the shower & tub scrubbed squeaky clean and get myself showered off without a bit of steam on the mirror! That was a pleasant surprise. For cleaning, I just filled a bucket with hot water and used that for wetting down the walls and doing all of the rinsing ... didn't have to leave the water running at all.

I noticed a super nice and unanticipated side effect of this steam free challenge ... The entire bathroom stays cleaner and is much easier to clean now! It makes sense ... no muggy, steamy environment in which ickies (that's the scientific name for them, right?) can multiply means a cleaner room.

Chocolate fans - Time to go buy that Valentine's candy on clearance!

DH will be heading off to the store soon to buy 1/2-price gourmet chocolates. He buys the most generic-looking (un-Valentinesy) boxes he can find, and gives them to his customers when he travels overseas on business.

He usually buys a box for me too. And no, I don't mind one bit that it isn't presented on "the big day." In fact, I like knowing that he didn't pay full price. Society in general probably thinks we're unromantic, but I know you guys understand.

Yes, I know I'm one day early ...

I've added a new section to my "About Me" bio (there on the left), where I'll be posting cool quotes I think about or come across.

The quote just added applies to all of us (I think), and explains why I'm so happy to have found this community.

We're all in different positions financially ... Some of us are hundreds of thousands of dollars in debt, while some of us are millionaires ... Some of us struggle to pay the bills, while some of us save for vacations and new cars ... Some of us have been in the investing game for awhile, some of us are just starting to learn, and some of us aren't even ready for the investing step yet ...

But each and every one of us is striving to do better ... We're not just dreaming about getting out of debt, or having a secure future, or becoming rich (whatever our individual goals are) ... We're actually woking at it! That's cool. And that's why I enjoy hearing everyone's stories and learning from all of you.

Happy Valentine's Day everyone!

One of my current pet projects is reducing our electricity usage.

As Ima Saver suggested, I'm monitoring our usage by reading the meter regularly and writing the amount down, then calculating daily kwh. This really does work, just as monitoring your spending by recording every penny spent works.

I'm also turning off and uplugging things when not in use.

I decided not to try to cut back on laundry, stove, and dishwasher usage since we're already careful about those, and we're not about to start eating out more often just to cut down on stove & dishwasher use!

One area where I knew I could stand to cut back was hot water usage for showers, so I came up with the idea of a "steam free mirror" challenge for myself. Our apartment bathroom is smallish (just a single sink, toilet, and shower close together), so it doesn't take long for the mirror to steam up when showering. My challenge to myself is to finish my shower without one bit of steam on the mirror.

It has been almost two weeks, and so far I've been 100% successful! I either keep the temp lower (lukewarm), or shower VERY quickly at a higher temp. I also turn the water off for periods of time during the shower when it doesn't need to be running..

It's not total deprivation. If it's one of those days when I feel the need for a bit of morning pampering, if I'm quick enough and keep the temp low enough, at the very end of my shower I can turn the temp up and stand under the running water just long enough to say the Serenity Prayer and still have steam free mirrors.

In response to a question I received, this is a condensation of information I have posted elsewhere. Hope this little cheat sheet helps anyone shopping for a HDHP & HSA (or just wanting to learn more about them)!

HDHP (High Deductible Health Plan): I chose United Health Care. Blue Cross / Blue Shield also seemed like an excellent choice. I'm sure there are other good ones too.

HSA (Health Savings Account): Exante and HSA Bank seem to be the "big 2," but I chose HSA Resources Bank due to wonderful experiences with their parent company (Stearns Bank).


If you are thinking about getting a HDHP and HSA and want to learn more, I recommend the following sites.


For General Info on HSAs:

ustreas.gov/offices/public-affairs/hsa/ (US Treasury site; lots of info on HSAs; I found the "HSA Basics" tri-fold brochure to be especially helpful)

finance.yahoo.com/expert/article/millionaire/50127 (good article by David Bach)


For general information on health insurance:

healthinsuranceinfo.net


For specific state-by-state info:

nahu.org/consumer/healthcare


For quotes:

ehealthinsurance.com

1. Car Insurance Discount: Geico is good! After DH finished his on-line defensive course, they instantly applied a 10% discount to our auto insurance premium. I thought they would apply a credit to our next bill (for the period already paid for), but they cut us a refund check that we already received. Those guys are fast!

2. HSA: DH went in and got his teeth cleaned, and paid using our HSA. It was the first time we have used our HSA. He said it felt good knowing he was paying with tax-free money. He also said the dentist was great. The January edition of "Austin Monthly" magazine included a "Top Dentists" ranking, so I used that to select a dentist (called several rated as top general dentists in our area, and chose the one that was taking new patients and had the most professional office staff). Someone posted in the forums about dentists being crooks, but I've almost always had great dentists --- only had one bad experience and that was with a guy who was subbing for my regular dentist. I've always relied on personal recommendations when choosing a dentist, but since we are new here I thought the magazine ranking would be a good substitute for word of mouth. The only bummer was that the new dentist doesn't offer a cash discount, but I suppose if you are a "Top Dentist" you don't have to ... or maybe offering cash discounts just isn't as common here in Austin as it was in Seattle.

3. New Account Bonus: Haven't received my $75 prepaid Visa gift card from Wachovia yet (for opening a new account), and it's been 6 weeks... They said allow 4-6 weeks. Guess who I'll be calling tomorrow? Did they think I'd forget? They don't know who they're dealing with!

(Update: Oops --- It's only been 5 weeks! My bad.)

4. Interest Rates: I have a CD maturing Friday. This is a little reminder to myself to try to not get upset when looking at renewal rates and deciding what to do with the CD funds. I already know rates are down, and I can't control the rates. I can negotiate but I can't control. I'll do the best I can and try to be thankful and proud that I have money in the bank.

5. House Hunting: Our current lease will be up in a couple months, so we are at a point where we have to decide if we want to renew the lease (and if so for how long), give notice, or go month-to-month. We went back to look at one house yesterday that we liked and was a good size & price, but ruled it out because of location (nice neighborhood, but in the middle of nowhere). It was disappointing because I had pretty high hopes for that one. Oh well. There are still two houses on our "short list," but I think both are more than we ought to spend, are too big, and will require too much ongoing expense in terms of maintenance, property taxes, etc. So, I am going to step up my efforts to find something small and affordable that DH will like.

After calculating our Net Worth at the end of January, I re-calculated where we are on our "Journey to Balance Sheet Affluent." The result is shown on the sidebar, as is an explanation of the BA calculation.

This was a "one step back" quarter due to the performance of our mutual funds. Ah well, we are still ahead of where we wanted to be at this point, and we will keep running the marathon.

Speaking of mutual funds, I'm glad that we are invested in balanced funds and "funds of funds" ... Our asset allocation gets re-balanced automatically without us having to do anything. It eliminates that ever-so-tempting urge to do a bit of market timing in the guise of deciding when to re-allocate.

Some good news on the savings front:

- We did our second fillup since getting new tires filled with nitrogen gas put on our car. We got 30 MPG, so our mileage has definitely improved. There may be something to this nitrogen gas after all ... Does anyone else use it?

- Since I started reading our electric meter regularly (not every day like Ima Saver, I'm afraid, but every few days) and "whacking the mole" (unplugging & turning things off) we have cut our daily electric consumption by 13%. We're not using our heater (this is Texas remember), so that has nothing to do with it. I want to cut our electric consumption even more ... right now I'm challenging myself to see how quickly I can shower.

P.S. - The new blog color scheme is for tax season, a patriotic theme in honor of everyone who pays what they owe!

We all have many reasons we WANT to save:
- Retirement
- Children's Education
- House
- Car
- Vacation
- Etc, etc, etc --- The list is endless.

But it goes beyond wanting to save ... I believe we all MUST save. Driving home from the grocery store the other evening I started thinking about the rising price of food and how these increases must be affecting families of very limited means, especially those who have not saved any money. It makes me sad. I'm especially sad for the children of those families.

We all must save, because we have only limited control over the cost of essentials such as food and shelter. Without savings, how will we absorb a sudden spike in prices?

For example, let's say you are a family of 4 and your average monthly food expenditures (eating at home and dining out once in awhile) is a moderately frugal $500. [I know some of you will think this is an outlandishly high amount for a family of 4, and some of you will think it's not nearly enough. That's not the point. Plug in another number if you like.] If, over the course of a couple months, food prices rise by 20%, suddenly the same food is costing you $600, $100 more per month which equals a whopping $1,200 increase per year.

How are you going to absorb that extra cost while waiting for your next COLA or raise? And what if you don't get a COLA or raise? How are you going to pay an extra $1,200 per year for groceries?

You might decide to cut back on your food expenses, perhaps by eliminating the once-a-month meal out and switching to lower cost alternatives (more frozen veggies and less fresh, for example). But that probably won't make up for the entire cost increase. And you may cut back in other areas. But what if you are at a nearly bare-bones budget? There may not be a lot of places you can cut back. Are you going to make your children and yourself eat cheap food that is of poor nutritional value?

***If you have savings, you have given yourself the gift of a financial shock absorber in the event of dramatic price increases on essentials.***

You can rework your budget, perhaps cutting back a bit here and there while simultaneously allowing your grocery spending to increase a bit to partially keep up with rising food costs. [To use the example mentioned above, that family of 4 might increase their food allowance by $40 per month, make up $30 per month by making some changes to their food consumption, and cut back $30 in other areas. Where are they going to get that extra $40 a month without ringing up credit card debt? From their savings ... either by temporarily reducing the amount they save each month, or perhaps temporarily dipping in to it until they can find some new or higher source of income and replace it.]

I realize that blogging about the NEED to save on a "Savings Advice" site is like preaching to the choir, but I hope that anyone who might read this who doesn't have any money saved will take it to heart.

Please do whatever you must to accumulate some savings. Everyone's circumstances are different and for some people it is really challenging to save. But you must do it, even if it is just a little.

Even if it's just a little thing you can do to save, go ahead and do it! Skip the weekly Lotto ticket and put $1 in your savings jar. Walk or take the bus instead of driving and bank the gas money. Something ... anything ... is better than nothing.

Thanks for all the great advice you guys give!

Power Bill: I hated my last power bill ($94), so I am now Whacking The Mole, unplugging things and asking myself and DH: "Are you watching that?" ... Thank you LuxLivingFrugalis! I also started reading my electricity meter ... Thank you Ima Saver! It really does help when you see how much you are using on a daily basis, rather than waiting until the end of the month and being "surprised."

Hair Cuts: DH has hinted that he wouldn't mind my cutting his hair ... Last time I was at Costco there was an electric clipper set w/ instructional DVD that was $24.99 and I went ahead and bought it ... In 2-3 haircuts, it should be paid for ... Thank you DisneySteve! (I'll admit I'm quite nervous that I'll screw it up, but I'm going to do it anyway.)

Dunkin' Doughnuts Coffee: This is actually a question for you coffee fans. Our Costco is now carrying Dunkin' Doughnuts Coffee, 40oz bag of Original Blend (Medium Roast) for $15.99. I currently use the Kirkland Signature brand, 48 oz for $7.99. The instructions on both packages call for using the same amount of coffee (heaping T per 6oz cup). I like what I am using just fine, but I have heard folks here and elsewhere raving about Dunkin' Doughnuts Coffee. I think buying one bag of this might be nice as a treat but ... Is it really that good? Do you think it's worth paying 2.4 times as much for? [Ms. Koppur, are you reading this?]

Haven't done an update on the house hunt for awhile, so here goes.

We have been doing LOTs of looking. All over the place. Not finding much focus. I started to get a bit frustrated and told DH I was starting to feel like this:



DH talked our situation over w/ one of his new golf buddies who is in real estate, and he said feeling like that is not uncommon for househunters here in Austin. The "problem" (if you can call it that) is that there are just so many nice areas in Austin to live, and if you are not limited by some factors such as job location, it can be very hard to narrow down your choices. In some towns, you can pretty quickly settle on one part of town you want to live in ... but not so here ... Too many great choices!

Nevertheless, we decided to focus on one particular area, one particular age of home, and one particular price range. Armed with those parameters, we found 6 houses to look at on Sunday that looked nice and ventured out boldly, feeling very confident. Well ... when we saw what sort of neighborhood we would be living in while finding a house that met our parameters, we realized that just wasn't for us. [Hmm ... isn't it funny how the internet photos didn't show the falling down trailer with 3 junker cars in the yard and Christmas lights still up on the same block ... LOL] We either have to spend more, lower our standards, or change the geography of our search.

So, back to square one, sort of ... Although I do feel better, because I know that we were able to set up some clear parameters once, and even tho they did not turn out to be the right ones, if we did it once we can do it again!

DH finished his on-line defensive driving course yesterday evening, then took the test and passed (w/ a fantastic 95% score ... pretty darn good in any circumstance, and really terrific considering the course was in English, his 2nd language). We immediately get a 10% discount on our auto insurance, good for the next 3 years. The course cost $20, and at the discount (based on our current premium) is $125 over 3 years, for a net savings of $105. It took him about 6 hours to complete the course, so that means he netted about $17.50 per hour of work ... Not too bad! Also, he seemed to really get in to taking the course and learned a lot ... He's not a bad driver, but if the course makes him even less likely to get in to an accident, then it definitely was worth the time! [When / if we purchase a 2nd car, I plan to take the course also.]

We filled our gas tank for the first time since getting our new tires at Costco. DH does a rough calculation of gas mileage each time he fills up (he uses the odometer to keep track of mileage between fillups) and he says our gas mileage improved from about 26 MPG to 28-29 MPG. Not sure if we can call the results of one fillup a trend, but I sure do hope it stays that high. I don't know if it's because we now have better (new) tires, or if it's because Costco fills their tires with Nitrogen ... I had never heard of filling tires with Nitrogen, but there was a brochure at the Costco Tire Center explaining how Nitrogen is supposed to improve handling & improve gas mileage. The tires on our car now have little green caps on them instead of black, which apparently is the symbol for nitrogen-filled. I can definitely say that the car handles better, tho' again I can't say whether that's because we now have new tires, they are filled with nitrogen, or both. I'm not a car person, so I can't offer an intelligent opinion on the "filling with nitrogen" issue, but would love to hear what others think. By the way, we didn't have to pay anything extra for the Nitrogen. That's just what our Costco Tire Center is using now.

I splurged this past week when grocery shopping. I bought a carton of Tropicana orange juice, and a bag of fresh baby spinach. Each was $2.99, and neither were on sale. [With the soaring cost of produce, we've been eating much more frozen lately, and buying fresh only when we find a "bargain."] They were both on my grocery list, so neither was an impulse buy but was a planned splurge. Hard to believe I spent that much, and hard to believe buying fresh produce that is not on sale is now considered a splurge! Funny times we live in, eh? They sure tasted GREAT, and they are good for us too ... DH & I both enjoyed every sip and bite...Yum!