scfr's Personal Finance Blog

Today & tomorrow (Aug. 23 & 24) Ebay is having a promotion where you can upgrade to a 10-day listing for free. Not quite as good as free listings or 10-cent listings, but I'll take it!

http://www2.ebay.com/aw/core/200708.shtml#2007-08-22170025

Haven't done a real blog entry for awhile because so much has been going on ... I've been busy and unable to organize my thoughts well ... I decided to do just one big long entry that covers a whole lot of things ... Sorry.

1. Business Closing / Moving Countdown: One-and-a-half weeks to go until I shut down my business. I've been saying many good-byes. I am glad they are spread out and not all coming at once; it's easier to take emotionally, absorbing just one or two good-byes per day. Five-and-a-half weeks until we leave for Austin. Got a free map of the USA from AAA and plotted our route on it, then hung it on the wall above my desk. It's exciting to look at it, knowing the date our new adventure begins is getting closer and closer.

2. No, I really don't have 4 weeks to prep for the move: I'll be travelling out of town for one week (going to Austin to choose an apartment, attending my alma matter's Reunion weekend, and going to my Mom's to help out with some things). I'll also have wrap-up work on my business, and my DH needs some help with his business. Also, my family is coming up for our final weekend here which of course is wonderful but takes up time. So, I estimate that gives me 2 weeks (broken up a bit here and there) to prep for the move. Should be plenty of time as long as I draw up a good plan/calendar, stick to it, and get enough help from DH. [Thank goodness I have the book "29 Days to a Smooth Move" ... It is the best resource for moves!]

3. Farewell Party: Reservation has been made; Guest list is 28; Invitations get mailed on Monday; final budget is $500. A nice restaurant near us does a very nice and reasonably-priced buffet once a month, and I chose to do our party on that day. I will pre-order some decent but moderately-priced wines and have them out on the table. Of course, people will be free to order other drinks, but knowing the wonderful group we are inviting (not a wine snob or big spender in the bunch), they will be perfectly happy with my selections. My goal is to put on an event that is both a really enjoyable event for our beloved guests and a wonderful send off for DH and I, but that doesn't break the bank. Given the plans made so far, I think all criteria will be met.

4. Ebay Sales: Still plodding along. Some things selling for more than expected, some for less, some not at all. Will be glad when it's done.

5. $20 Garden Challenge: Still enjoying plenty of fresh herbs and microgreens. It's been quite cool here, and I'm starting to wonder whether I'll actually see a tomato before the move! There have been lots of blossoms and some have dropped, but not one piece of fruit yet.

6. DC & NYC Trip: Booked my plane ticket and accomodations! I'll be travelling a total of 9 days ~ I'm so excited!!! I decided on a budget of $2,000. Yes, it's a lot of money, and yes, it will be worth every penny. I am renting a studio condo with a kitchen in downtown DC. I'll be flying from Austin to DC, and between DC and NYC I'll take the bus. [ThreeBeanSalad kindly suggested the Chinatown Bus, but I was able to find an even cheaper fare on Greyhound thanks to a fare sale, plus the scheduling with Greyhound is much better.] My younger sister & brother will be joining me in DC. They have both always wanted to go, and decided that since I was going already they may as well tag along. I'm super happy they will be coming. I'm not going to let them pitch in on the accomodations, but told them they could stay with me (my treat) in exchange for them feeding me one meal per day each. My sister will get groceries and cook dinner for me (say ... I'll have my own personal chef for a couple days ... outstanding!) and my brother will treat me to lunch while we are out sightseeing. My older sister is not going to join us because ...

7. Older Sister is Taking Baby Steps Towards Financial Security: Awhile back I wrote on the forums about how my sister's financial life was a wreck. She had to have her cat euthanized and did not have the money to pay for it.
Well, since then she has made some progress but it has definitely been a "2 steps forward and 1 step back kind of thing." A big breakthrough was when she thought about joining us in DC but decided that she really should not because her priority is building up her EF. Oh yea! While it would have been great to have her with us, I really respect that she seems to be getting her priorities straight.

8. Caught Another Checkout Pricing Mistake: I know this entry so far has had a lot to do with big spending, but as I have said before I believe in focusing on the big AND small things. The other day at Office Depot when I was buying envelopes to mail the party invitations, the price rang up at $7.29 even tho' the posted price was $5.99. I had them cancel the sale and went over to customer service. They were very nice, walked over to the posted sign with me, admitted that the sign was wrong (apparently the price had increased but they hadn't changed the sign), and honored the posted sign. They also took the sign down and changed it, so I was the last person to get the envelopes at that price. [Yikes - I thought $5.99 for 50 envelopes was a huge amount of money. But I decided not to waste time & money driving to another store.] I couldn't begin to count how many times I have caught mistakes like that; I am always courteous, but never shy about letting the cashier know about the error, and I have never had a store fail to honor the posted price. Always check the prices!

9. "Subprime Mortgage Meltdown in the News": I agree with those who say, come on, what is the news?!? A few years ago when DH & I started reading about the types of mortgages people were taking out we couldn't get over how insane it was. That was years ago. Frankly, we were surprised it all didn't happen sooner; we were expecting it about a year earlier. I'm glad we sold our house when we did, and I know that this will not make me popular with people who are facing difficulties with their ARMs, but we may end up in a pretty good bargaining position when we buy our next house because we will be paying cash while other potential buyers will be facing the credit crunch. We'll either be able to get a deep discount from someone who needs to sell fast and has a shortage of potential buyers, or we may end up buying a foreclosure.
BTW, when we bought our last house we made sure that we could not only easily handle the mortgage payments, but that I could easily handle them on my own if (God forbid) something happened to my DH. My income is less than my husband's, and we thought it prudent to make sure the lesser income alone (mine) could easily support the house payments, so that I would never be in a position where I felt pressured to sell the house in a hurry. And we did refinance our mortgage once, but we refinanced for a LESSER amount and we went from a 30-yr fixed to a 15-yr fixed at a much lower rate. Never had a HELOC or a 2nd mortgage or a piggyback loan. Eventually, we paid off our mortgage early. Goodness, no one could imagine why we were being so conservative. They thought we were being downright silly. But I am here to tell you that you should never be afraid to go against the crowd, swim upstream, dance to a different drummer, etc, etc... Conventional wisdom isn't always so wise.

10. "The Jonses" Foreclosure House: I sent an Email to the bank that now owns the foreclosed house in our neighborhood letting them know we might be interested in buying it, but a real estate agent friend told me not to expect to be able to get a great deal on it, so I'm not holding my breath.

11. Feels Like Fall: I've covered a lot of ground in this post, some of it a bit heavy and/or preachy. I'll end on something light. It's been cool here, really starting to feel like fall. I have been thinking about changing my blog's color scheme to more fallish (instead of springish) colors ... But that may have to wait a bit, as I have bigger projects to tackle ...

If you actually read all of this long and rambling post, bless you!

Open your mind and eyes to the many opportunities to create a rich & rewarding, full & fun life that are free (or very inexpensive).

These will be different for everyone. For me, they include walking or playing with the dog, hanging out with my husband, volunteering in my community, talking with friends & family, playing games, and checking out books & DVDs from the library.

This morning I revisited the Penske truck rental site, because DH and I were discussing whether we could downgrade our reservation to a smaller truck (because we have been successful in selling off or getting rid of so much stuff). I ran a "test reservation" and found out the rates are down A WHOLE LOT from what they were when I reserved our truck. [I booked with Penske because their rates were much less than the other truck rental companies, especially considering I got a 22% combined discount for booking on-line and being a AAA member.] I called Penske to see if I could cancel our reservation and re-book, and they said that they could adjust to the new rate for us, and still apply the Web discount and the AAA discount. On top of that, even tho' the rate for a car carrier had increased I could stay locked in at the old (lower) rate. So, in about 30 minutes time this morning, I saved $1,200! Wow - Thank you Penske!

Of course I was excited, and I also loved how my DH got excited when I told him! [In our marriage, we both play offense and defense, but he's definitely the 'head of the offensive team' while I'm definitely 'defensive coordinator.' It's really motivating for me when he appreciates my efforts to save money every chance I get.]

In other relocation news:
- The charitable donation guys did a swing through our neighborhood yesterday & I put out one more big box of stuff for them to pick up.
- We freecycled away some big heavy storage units that were in our garage... No way did we want to move those! So glad that we won't have to deal with them, and that someone else can put them to good use.
- When getting the donation box put together, I found a few more items to list on Ebay. I really need to keep chomping away at that elephant...
- The half.com sales continue to trickle in. And I've decided that once the final Ebay sale is shipped off, the half.com sales will stop too. Any books that are left will get boxed up and taken to HalfPrice Books. As long as I'm going to the Post Office to ship Ebay stuff, I might as well keep selling on Half.com. But once the Ebay sales are finished, no more runs to the Post Office.
- We're continuing to let things run down and run out. I'll admit that I'll be glad when we get to Austin and I can just go to Costco and buy one great big container of laundry detergent instead of standing in Fred Meyer trying to estimate how many more loads of wash I'll be doing before our move!

About a year ago, my DH and I decided to take a "big picture" look at our investments, and as part of that process we consulted with both Vanguard & another company that I will refer to as "TRP" hehe

We explained our situation and why our risk tolerance is lower than what the "Average Joe's" might be, and what our target asset allocation is.

Vanguard took our information and gave us a very fine recommended portfolio based completely on what we told them.

TRP was a bit different. They asked us "Where do you think high-yield bonds fit in your investment strategy?" to which I repied "You mean junk bonds, right? They just aren't for us. We're not interested at all." They then proceeded to explain how their company's philosophy was that "high-yield" bonds had a place in every investor's portfolio, and then asked if they could go ahead and send us some information on them. I was starting to think "What part of 'no' don't you understand?" but just to keep the conversation moving along I told them fine, they could send the information. You can guess what I did with that info when it arrived --- straight to the recycling bin without a second glance!

After those conversations, DH & I decided that Vanguard is the company for us! It wasn't that TRP was overly pushy or sleazy, and I'm sure they do a bang-up job for lots of folks, but it was like they didn't really listen to what we had to say and tried to squeeze us in to a "one size fits all" plan. Vanguard on the other hand listened to us and believed us when we told them what we wanted!

This morning I was reading in the Business section of the paper about how investments in high-yield bonds are really taking a hit. I'm so glad we stayed true to ourselves and stuck with our conservative investments. In the end, we are the ones who have to live with the consequences. We've been sleeping just fine at night.

Don't ever let anyone else tell you how to invest! Listen to people's opinions and advice, certainly, but at the end of the day no one knows better than you what is right for you.

13 items listed on Ebay in the past 2 days --- I think that's about 1/3 of everything. I'd like to get everything else listed in the next 6 days, so that the auctions can end and we can get everything shipped off by the end of the month. Chomp ... chomp ... chomp ... burp.

I'd been sitting on the fence about whether to keep some cash in MMA's, move some to CD's, or wait to see if the yields on Treasuries went up. When the Fed decided to pump $38 billion in to the US economy today, I decided it was time to get off the fence. Expecting yields on Treasuries to be down immediately, and expecting yields on MMA's and CD's to go down very soon, I went ahead and got 2 six-month CD's (at 2 different banks) today. I would have gone for longer terms but my DH will need some of that cash in about 9 months for his business, and I'm also trying to keep things semi-liquid for when we buy a house (and who knows when that will be). Well, thank you, Fed, at least now the decision is made and I don't have to think about it anymore!

Q: How do you eat an elephant?
A: One bite at a time!

I have a small-size elephant I need to eat this month.

Two days ago I packed up 3 big boxes of things I wanted to get sold on Ebay prior to our move and hauled them off to a "Trading Post" that I found through Ebay. I thought this would be a way to get that project completed easily, even tho' it would mean paying a rather hefty commission. The trading post's info included a physical address and drop-off hours, with no mention of restrictions on items, in fact they said that they will sell anything. Turns out the address was just for a UPS store. I called the phone number for the company from the parking lot. They told me that they are a national company, and that the UPS store would ship the things to them, but that I had to open an account with them and each item had to be worth at least $30. Forget about that!

Chalk that up as another "live and learn" experience. So, I am going to list and sell those items myself, which is a rather big project to be tackling this close to the move.

The biggest hurdle I faced was getting packaging materials for everything. I know Ebay and the USPS have linked up to send free Priority Mail boxes to your house, but when I had checked several months ago it was for some huge number of boxes (like 50 for each size), and I had of course thought ahead and wondered what on earth I would do with all of the leftover boxes not to mention where would I keep them?

Well, the "where to keep them" part is easy now. I have already sold off so much through Craigslist and our garage sale in May that I have plenty of room.

And, I was most pleasantly surprised to find out that it is now possible to order the free boxes in multiples of 10. Yea! So, I ordered 10 of each size, and went ahead and listed a few things last night. I'll keep listing a few every day, as many as I can. Since DH's business has slowed down, he'll be the one making the post office runs when it is time to ship things.

I'll just keep reminding myself, one bite at a time. Even if I just get one listing done, that's still something.

Yesterday when I went grocery shopping, bread was on my list.

I always stop off at the half-price (day old) bread rack first to see what they have. I try to eat healthy, so I only buy 100% whole grain bread with no corn syrup. If there is something on the half-price rack that meets my criteria I will buy it; if not, I move on to the "regularly-priced aisle" to see what might be on sale. I'd say 2/3 or more of the bread I buy is from the half-price rack.

Yesterday there was a 4-pack of bagels on the half-price rack that fit the bill, so I bought those. [Shared one with DH this morning and it was delicious. I left one on the counter for tomorrow and put the other 2 in the fridge so they'll keep until I eat them.]

I realized that I have never seen anyone else buying things off of the half-price bread rack, even tho' I see them cruising the bread section all the time. In fact, I've never even seen anyone stop to look at it. Obviously things on that rack sell or the store wouldn't have it, and I am grateful that it's not more popular because it means I'm more likely to find something for myself there, but I can't for the life of me figure out why so many people won't buy off of it.

Bread can keep for a long time if you put it in the refrigerator. It is true that it gets a bit dried out that way, but it's perfectly OK if you're not a bread snob. It's not at all a health hazard, and it tastes just fine!

Why don't folks buy it? Are they unwilling to compromise one day's worth of freshness to save some money? Are they embarassed to be seen buying day-old bread? Do they think that saving a buck here & there doesn't add up? So many of here on this site are living proof that it does!

Yesterday was a milestone in my 2 major countdowns:
- Exactly 4 weeks until my final client visit (I'll still have some "wrap up" work to do after that, but won't be making any more money from my business)
- Exactly 8 weeks until we depart for Austin

Add to that a broken fridge/freezer, dealing with some tax stuff from DH's business, trying to plan a couple of trips, planning a good-bye party and final visit from Mom & brother, plus starting to get the "we want to get together with you before you leave" invites and I'll admit that I've begun to feel a bit overwhelmed. I made long lists of the things I need to do, and am working on a master calendar. Once everything is laid out in front of me I'll probably still feel a bit overwhelmed but much more able to cope.

I decided to do the following to help cope as well:
- I am no longer tracking the $$$ amount of my pre-relocation sell off. I already exceeded my goal of $3,000, the amounts I'm making now are relatively small (no more furniture), and the most important thing at this point is that I "just get 'er done" rather than tracking the results. I'll probably do a final rough estimate, but no longer feel the need to input everytime I sell a book through Half.com
- I am going to gather up the things I still want to list on Ebay and take them off to a Trading Post and let them sell everything for me. Yes, they'll take a big chunk as their commission, but once again at this stage in the game the main thing is to "get 'er done."
- DH is going to get hit with a great big "Honey Do" list when he returns from his business trip on Wednesday. On previous moves, pretty much all he has had to do was show up on moving day to load and drive the truck. Not this time!

Isn't it amazing what you can do when you commit to doing it in writing on a public forum?

I have completed 6 days of my 9-day commitment to eat only foods that I have on hand in the fridge, freezer, and pantry. No trips to the grocery store, no takeout, no restaurants. And it looks like I will make it the full 9 days in spite of being thrown a curveball:

On day 3 the refrigerator & freezer went on the fritz and stopped cooling completely! The temp in the fridge went up and then held at 50F, and the temp in the freezer is holding at 20F.

I have been "triaging" the order I eat things, and since I do not want to take a chance on getting sick I did throw away quite a bit from the fridge: chicken sausage, eggs, Egg Beaters, milk, and mayo. I had really been counting on those things to give me protein during these 9 days! Oh, well. Life happens.

I am assuming that things with plenty of sugar, salt, or vinegar are going to be okay. The things in the freezer are all safe, tho definitely have lost quality and general appeal because they are partially defrosted. [Last night I baked some sweet potato fries that turned out semi-mushy because they were only half-frozen when they went in the oven.]

The repair company is coming on Tuesday, so hopefully the fridge will be fully functional by the time DH returns home.

I will admit that if the fridge/freezer had completely stopped working and everything in it had to be dumped, I probably would have let myself go the store and restock.

I am going to have to deal with getting reimbursed for the repair from our friend/landlord who lives overseas. In the past we just deducted any house-related expenses (we had to get the garage door repaired twice, and we paid his property tax bills for him) from the following month's rent, but we had prepaid our final month's rent so we don't owe him any more money. We'll see how that goes ...

P.S. In the interest of "full disclosure," I did buy a glass of lemonade from the lemonade stand of one of my client's daughters, but I'm not counting that as a takeout purchase but rather "PR for the business."

Today at foreclosure auction my neighbors "The Jonses" (not their real names of course) lost their house.

I've been following what has been happening with this house for the past 6 months, and dug in to the records available on-line, because I am interested in buying it. [Even tho' DH and I are planning to relocate to Texas in 2 months, we have been keeping an eye on the local real estate market and are would gladly stay here if we found a screaming deal on a house.]

The real estate market in my area has definitely cooled off, but it is not the disaster that it is in some other parts of the country, so foreclosures in the neighborhood are not an everyday occurence.

If this were a case of "poor, naive borrowers ripped off by an unscrupulous mortgage company" I would not tell this story. But this is a clear example of people not just trying to keep up with the Jonses but trying to BE the Jonses, and it is my hope that by sharing it anyone who is living beyond their means or living paycheck to paycheck will stop and think about their lifestyle and the consequences.

There can be no doubt that Mr. Jones is an extremely intelligent, healthy, sane man. He would not be able to have the job he had if he were not. He also made a top-drawer salary. [No, I do not know exactly what his take-home pay was, but it is public knowledge what people in his profession make and his salary was top-tier.] Mrs. Jones is a lovely woman who is always impeccably coiffed and dressed fashionably but tastefully.

The Jonses drive late-model European luxury cars that are always spic and span.

Their home is their pride and joy, and they wanted nothing but the finest in upgrades. Even tho' the house was brand new and perfectly fine by most people's standards, when they bought it 3-1/2 years ago, they had many features (sinks, light fixtures, cabinets, flooring) ripped out and replaced with top-of-the-line items before they moved in. Their kitchen appliances are the type Martha Stewart might have in her home. They turned one bedroom in to a well-equipped home gym, and they have a TV that takes up an entire wall in one room.

Mr. Jonses' yard is the envy of his neighboors. He maintains it perfectly, thanks in part to his ~$3K mower that makes it look like a golf course. [Yes, at least one neighbor went out and bought the same machine, perhaps out of envy over his neighbor's grass? And yes, even I asked about it and went on-line to see how much it cost thinking my DH might like one ... And NO, after seeing the price, I most definitely did not buy one.]


The Jonses were the envy of the neighborhood, the ones some others tried to keep up with, and the subject of much admiring (and probably slightly jealous) talk.

But talk about a huge difference between appearances and reality! What I learned from digging in to publicly-available records is that the Jonses not only refinanced their home about 4 times over the course of 3 years, they currently have a whopping THREE Deeds of Trust on the house. There are not only the 1st and 2nd mortgages, it looks like maybe there was a piggyback loan to cover the original downpayment. And each time they refinanced they increased the principal balance. This means they used their home as the proverbial "piggy bank" which no doubt is how they paid for the luxury cars, appliances, tools, fixtures, and who knows what else.

About a year ago, Mr. Jones and his employer parted ways. Circumstances are unknown. According to Mr. Jones, it was his choice because he plans to start his own company. Whether this is true or not is not certain, but the new company is not yet launched so I have my doubts.

A few months after that, foreclosure proceedings were begun. The Jonses listed their house on the market and tried to sell it, but they did not have any luck. I know they had at least one offer. It was a lowball offer from my DH and I, that we made when we thought there was only 1 mortgage on the house. Now we know why they didn't even bother to counter. They weren't able to be very flexible in their pricing because they owe about 98% of their asking price on the 3 Deeds of Trust. That does not include the delinquent property taxes, nor what they would have to pay in sales taxes and real estate commissions. [Naturally, they went with a full-commission agent, even tho there are discount agents available in our area. Nothing but the best, right?]

The foreclosure auction was continued (postponed) once, but the 2nd scheduled auction date was today and the house was auctioned off. Of course, no one wanted to bid on a house with so much outstanding debt, so the house was "reverted to the beneficiary" which means that the bank now owns it.

The Jonses are really, really nice people. While I definitely hold them responsible for what has happened to them, I wish them well and hope they can pull themselves out of the quagmire they are in. I hope they will move out of their house and leave with dignity. It would be a real shame for the neighbors to see them being forced out by Sherriffs deputies.

There are SO MANY lessons to be learned from this story and I'm sure you can figure them out for yourselves ...

Anyone else remember that childhood jingle?

Pick yourself up
Dust yourself off
Start all over again
Woot woot!

Well, that's what I decided to do.
After my budget-busting trip to the grocery store yesterday (I bought a frozen pizza and a pack of Fig Newmans, neither of which was on my list nor on sale), I came up with a challenge for myself to get myself back on track.

DH is out of town on business for the next 9 days, and during that time I am not going to buy any more groceries (nor get any takeout nor go out to eat, of course). I will eat all my meals using what I already have on hand (plus from my garden). I was inspired to do this by seeing several other SA members do the same thing at times. Also, with the move only 2 months away, it is time to start seriously reducing the amount of food in the pantry and freezer. [I will be thrilled if we move NO food at all except for perhaps some spices, and maybe any leftovers staples like rice & beans.]

I think this is going to be fun! I like a challenge, and I'll enjoy coming up with some creative dishes. It's not like I'm going to be deprived at all, because when the fresh things run out I have plenty of frozen or shelf things to fall back on, plus the first batch of microgreens from my garden will be ready for picking very soon (I did some thinning yesterday evening and enjoyed a nice little salad from that).

I know you should never go to the grocery store on an empty stomach! It's such a basic rule and I've adhered to it for a long long long time ... until today. In the interest of saving time and not having to make an extra trip, I stopped at the store on my way home from a client's house even though my stomach was crying out to be fed.

You guessed it ... I came away with 2 items not on my list, and they were totally unnecessary: Fig Newman's and an Amy's Mushroom & Olive pizza (not a big surprise that it would be pizza with me)! And ... neither one was on sale ... GASP!

Now I have a full belly and a lighter wallet. Sigh ... It is so hard to be human, isn't it?

The pooch's 4+ year old harnass busted when he lunged at a bicyclist (tsk, tsk) so my DH went to Petsmart and bought one of the "Gentle Leader" ones for $25 plus tax. It makes me cringe paying full retail, but this is one of those times when I want to get a replacement immediately, instead of waiting for something I find cheaper on-line to show up.

Tomorrow same poochie is getting his teeth cleaned (estimated cost $145 + any follow-up medications needed) at the vet's, and as long as he is knocked out, I am going to have them trim his nails as well. [He is one of those dogs who is an absolute terror about getting his nails clipped. I can't use cutters on him. I use a Dremel tool to grind them down but it takes forever and is a big battle of wills. In my mind, this will definitely be an extra $10 very well spent.]

At his annual exam, I found out that he has a broken molar. I would prefer not to have it extracted, and I don't want to just "let it go and see what happens," so I looked in to alternatives and found out that a root canal might be an option. I got an estimate of around $1,500 ... gasp! Since we are moving to Austin in the fall and Texas A&M has a Veterinary School where they teach veterinary dentistry, I am going to have my vet call the dental professor and see if they could perform the root canal and give me a ballpark estimate.

Oh, our 4-legged children can be expensive, can't they? Of course, they are worth every penny!

When I heard this quote, I had to pause the DVD player and go write it down:

"Destiny might lead us to the path, but the rest is up to us."

(from the movie "Mrs. Palfrey at the Claremont")

Yesterday, funds were automatically withdrawn from my checking account for my TIPS purchase. It was recorded by my bank overnight, so I could see the amount withdrawn this morning.

The amount withdrawn was $2,968.47 for my $3,000 TIPS, based on a purchase price of $98.922415 per $100. I paid 20-cents more than what I had calculated based on the published auction results, and I don't exactly know why.

Coincidentally, I also received interest payments yesterday from the US Treasury for TIPS I had purchased in the past. I get interest payments automatically deposited to my checking account every 6 months. So, on the same day I had money coming from and going to the US Treasury. [It was pure coincidence, and I don't think that has ever happened before.]

If I were retired or near retirement age, I think I would be putting a much larger percentage of my money in TIPS, as a way to keep my principal secure and make sure my money earned at a rate a bit ahead of inflation. I read somewhere that John Bogle, the founder of Vanguard, has moved a larger percentage of his portfolio to TIPS as he has gotten older.

Regarding short-term US Treasuries (T-Bills), the interest rate from yesterday's auction was the highest in 3 months:
6-month T-Bill (Rate 4.865% / Yield 5.071%)
3 month T-Bill (Rate 4.840% / Yield 4.982%)
They're not quite up there with the best MMAs or short-term CDs yet, but they are getting close. It might be time to start thinking about T-Bills again ...

Okay ladies (and maybe some of you men), I need help!

Because I am going to be moving to hotter-than-hot Texas, I want to cut my hair short but have absolutely no idea how to go about choosing a style. The last time I had my hair cut in a "style" was about 15 years ago. Since then I've just let it grow; every couple of years I get a bunched whacked off and send it to Locks of Love (and I get a free hair cut for doing that). I usually just wear it pulled back by a barrette or a scrunchy. (I know, I know, not very stylish, but hey, it suits me fine.)

I know I could go in to a hair stylist and ask for suggestions, but I'm hesitant to do that because:
- I don't care all that much about my hair, and I think that saying to a hair person that you don't care about hair is insulting to their line of work.
- I'm afraid they'd suggest something too trendy for my taste. I want to choose a style and stick with it for a good long time, so I don't have to think aobut it anymore.
- I'm also afraid they would suggest something that would require more frequent trips to get hair cuts than I am willing to do.

So, I am looking for suggestions, either style suggestions or where I could go to get some information on basic styles.

Here's the 411 on me and my hair:
- My hair is medium thickness and wavy. However, it's not an even wave. It's light-wavy in the front and medium-wavy in the back.
- I wash and condition my hair every other day, comb it out, and let it air dry. That's it. No styling brushes, no blow dryer, no curlers, no hair spray or gel, nada. I would like to keep it this simple.
- I'm 43 years old and do not care about the trends; however, I guess I'd prefer not to look like an 80-year-old.
- Hair is not an area of my life where I care to spend a lot of money. So, I'd like a style where I can go to a basic walk-in place (like Great Clips), and I'd like a style that wouldn't need to be cut very often or where my husband could give me a little trim in between cuttings.

So, any suggestions??? TIA!

The US Treasury's 10-year TIPS Auction was today and these are the results:

Interest Rate = 2.625%
Yield = 2.749%
Price per $100 = $98.942199

So, my $3,000 TIPS should cost me $2,968.27. I will be paid interest every 6 months, and my principal will be adjusted at the rate of inflation, which means I'll be yielding 2.749% PLUS the inflation adjustments. So hypothetically, if inflation were to hold steady at 3%, my yield would be 5.749%, and of course if inflation goes through the roof my principal would grow in line with inflation. I think that's not too shabby. [Actually, I am really happy with the auction results.]

Hopefully this explains why I like TIPS as an alternative to long-term CDs.

I'll report again when the funds for my TIPS purchase are automatically deducted from my checking account.

Since my $20 garden challenge finally got back in the black, I went out and bought one final packet of seeds with my positive balance. I hope that will help boost my total for the year by a bit in addition to giving us some more yummy homegrown produce (and some sorely needed variety). It is a Salad Greens micro greens mix that is supposed to take only 2-3 weeks to harvest. I planted about 1/3 of the packet, and will do a couple more plantings over the next few weeks to space things out; I'm aiming for a final harvest approximately 1-2 weeks before my September 30th move.

What was really neat about choosing the seeds was how my attitude has changed since I started this challenge. In the past I would gaze longingly at seeds and think: "I could never grow that." When I was starting the challenge I thought: "Okay - These look pretty dummy-proof. I'll give them a try." This time around I found myself thinking: "Oooh ... That looks interesting ... I could try this ... and this ... and this ... If only I had the time and land. Maybe after I get my house in Texas ..." I feel much bolder about trying different things, because I know that even if not everything I try is a success, at least enough of the things I plant will grow to make the overall effort worthwhile (just like investing, eh?)

Just made our hotel reservations for while we are on the road during our move from Seattle to Austin. We're staying in Motel 6's all the way. After a bit of looking around I realized that Motel 6 consistently has what we want:
- Cheap rates, and even cheaper if you book on-line with their "Click 6" rates (all we want is a place to sleep after a long day of driving)
- Pets Welcome with no extra charge
- Located right along the major freeways
- Parking all around the hotels. Hopefully we can park our moving van right outside our room to keep an eye on it (and within range of the baby monitor I bought used at our community garage sale for $3 for added security, thanks to the great suggestion from debtfreeme).

This big move is really starting to feel real!

This is for anyone who may be interested in purchasing US Treasuries (bills, notes, etc) directly from the US Treasury, but doesn't know how to do it. Specifically, I will explain the process I go through as I purchase a TIPS (Treasury Inflation-Protected Security) at this week's auction.

Buying Treasuries directly is very easy. There is no need to go through a broker or pay any fees. All you have to do is set up an account with Treasury Direct. I have an on-line account with Treasury Direct that is linked to my primary checking account. That means that any time I purchase a Treasury the funds are automatically taken out of my checking account, and any funds I receive (interest payments and proceeds from matured Treasuries) is automatically deposited to my account. I like having the accounts linked because there is no "lag time" while funds are being moved.

In the past I have purchased T-Bills through Treasury Direct, but I haven't done that for awhile because the interest rates have not been competitive with what I can earn on a MMA or short-term CD. However, I do keep my eye on the T-Bill rates, and no doubt I will buy more in the future.

What I am buying this week is a TIPS: Treasury Inflation-Protected Security.
The minimum investment for a TIPS is $1,000. I will be buying a $3,000 TIPS.

TIPS are currently available in 5-, 10-, or 20-year terms. I will be buying a 10-year TIPS.

Unlike T-Bills which are sold as often as weekly, TIPS are sold infrequently. TIPS are sold either Annually (5- and 20-year terms) or Semi-Annually (10-year term). They are also re-opened Annually or Semi-Annually. That means that if you want to buy a 5- or 20-year TIPS, you only get 2 chances a year. And if you want to buy a 1o-year TIPS, you only get 4 chances a year. If they are something you are interested in, you will definitely want to check out the US Treasury auction schedule and note the dates on your calendar.

The 10-year TIPS I am purchasing was announced today (tho' the announcement had been tentatively scheduled long ago), and the actual auction will take place on Thursday. The TIPS I am buying will be issued on July 16th (because the 15th is a Sunday), and will mature on July 15, 2017.

TIPS pay interest every 6 months, and the principal amount is adjusted for inflation (or deflation). The interest you earn is on the inflation-adjusted amount, so as long as there is inflation your interest payments as well as your principal continue to go up.

This is why I like TIPS:
- They are an extremely safe investment, fully backed by the US government.
- They are a good hedge against inflation. I prefer TIPS to long-term CDs because I know that I'll always be getting "inflation + alpha." I do not have to worry about inflation eroding my principal.
- Once you have a Treasury Direct account set up, they are a breeze to buy.

These are the drawbacks to TIPS:
- They are pretty conservative investments. If you are looking for gangbuster returns, they aren't for you.
- They make tax time just a wee bit more complicated because you get a form "1099-OID" in addition to a "1099-INT." The 1099-OID is for the inflation-adjustment you receive on your principal.
- You have to pay taxes on not only your interest but also the inflation-adjustment to your principal in the year it is received. What that means, quite simply, is that you are paying taxes on money you haven't even received yet.
- The government's formula for inflation may or may not accurately reflect the "real rate of inflation" you experience in your life.

These are the steps I went through to purchase the TIPS:

1. I checked the auction schedule and made a note on my calendar that a TIPS auction announcement was scheduled for today.

2. Once the auction announcement was posted at the Treasury Direct web site this morning, I logged on to my Treasury Direct account and entered a buy order for a $3,000 10-year TIPS. That means that I now have a non-competitive bid entered for Thursday's auction.

3. I went to on-line banking and transferred $3K from my MMA to my checking account. I could have waited a few days to do that, but I didn't want to risk forgetting or being unable to do that and being charged an overdraft fee. [Of course, this means I lose a bit of interest income because my checking account pays less than my MMA.]

Easy as pie.

Because my bid is non-competitive, I won't know what the interest rate will be until the auction is completed. Once the auction results are posted, I'll blog again and let you know how it went.

Want to learn more?

Treasury Direct web site:
http://www.treasurydirect.gov

To learn more about TIPS in general, start here:
http://www.treasurydirect.gov/indiv/products/prod_tips_glance.htm

Upcoming auctions are announced here:
http://www.treasurydirect.gov/instit/annceresult/press/press_secannpr.htm

Arrrgh! Been trying to figure out how to reconfigure our mutual fund investments and I feel like pulling out my hair! DH insisted we make some changes, and I agreed.

At the end of every month when we look at our assets and net worth, if one fund is down even just a little bit DH always says something along the lines of "Oh that's not good --- We should sell that fund." [He just can't stand to see anything go down. He's even more risk-averse than I am when it comes to investing, which is interesting considering what a risk-taker he is with his business.] We have the same old discussion over and over again about asset allocation, how the overall performance of the portfolio is more important than looking at individual funds, etc, etc, and then he agrees to keep things as they are. But the same thing comes up every month and it's just like a tired old broken record. End of June ... same discussion ... but he was more insistent. And I frankly have been thinking that it's time to rebalance because of how well our International Stock Fund has been doing.

So I decided, what the heck, let's just reconfigure the whole portfolio, not only for rebalancing but also to give DH more peace of mind. But it can be such a difficult decision to make, because you never know if you are making the right decision.


[DH is very much involved in the decision-making process, but I do most of the researching, reading of prospectuses, running Morningstar X-Rays, etc. He's more of a big picture guy and I am more detail-oriented, which makes us a good team, but it does mean I end up doing the time-consuming stuff. Also, DH speaks English as a second language so it makes sense that I do the heavy reading.]

Well, I don't know if this is the right decision or not, and it may just be lazy or cowardly, but I decided (and DH agreed) that we are going to move all of our Tax-Deferred Savings (Keoghs & various types of IRAs) to a "fund of funds," the Vanguard STAR Fund. It's a mix of 8 stock funds (domestic & international), 2 bond funds, and 1 short-term investment fund. Hopefully it will be up EVERY month from now on, even if just a wee bit.

As far as the money that is in our non-tax-deferred mutual fund account, I wanted to split that between the STAR Fund and a Money Market Fund, but DH insisted that it all go to a Money Market Fund. He actually quoted CNN Money ... He said "The expert there says when you are getting ready to buy a house your money should be in completely safe investments!" Which I reminded him is completely irrelevant. What the CNN Money expert is talking about is the money you are planning to use to buy the house!!! We are talking about money that I consider to be part of our retirement savings. [The money that is supposedly to buy the house is tucked away in FDIC-insured deposit accounts.] Finally we agreed to do what DH wanted, put it in the MMF (sigh), and then revisit the whole thing again after we have bought a house.

Why, oh why, am I getting a sneaking suspicion that DH is starting to think about buying a more expensive house than what we had originally agreed on ... ??? Oh well, that will be something to blog about in the future, after we have moved to Texas.

But in closing I'll just say "Bless my DH" because he did put everything in to perspective when he reminded me that not everyone has the "problem" of trying to decide (and come to agreement as a couple) where to put their money because they have no money to put anywhere. As usual, he's right.

This entry has been percolating inside my head for awhile ...

There were a couple of comments made recently about ungracious houseguests (one was made by me). The one that really stuck with me was the poster who said that a guest was invited to use poster's summer place, then complained because they did not have Starbucks coffee. My heart ached for that person, having their hospitality disrespected like that.

It got me thinking about what hospitality means, and naturally that started me thinking about "Mrs. C."
Ever since I met her, Mrs. C has been my role model for a gracious hostess. Mrs. C is a 70-something California farm wife who I think of as a second mother. It makes me sad that I haven't been able to go see her for several years, but I hope to go again soon.

When I go to Mrs. C's house, I am always greeted with wide open arms and genuine interest about what is going on in my life.

As soon as I arrive, Mrs. C offers me a "refreshment." If it's a hot day, she gives me a nice tall glass of ice water with a big fat wedge of lemon from her tree out back. If it's a cold day, I'm offered a cup of coffee made from "who-knows-or-cares" brand of coffee. If it is evening and she and Mr. C are having a glass of wine, they pour one for me. [Once when I was under the weather, she hand-squeezed a great big glass of OJ for me, using oranges from her yard.] Then I'm invited to perch on a stool in her kitchen while we chat and get caught up on each others lives. I know that eventually the pictures of the grandkids will come out!

A typical meal at Mrs. C's house is pasta with pesto sauce that Mrs. C made using her homegrown basil, then froze in ice cube trays so that she can get exactly the amount she needs, depending on how many people she has over. There are usually one or two side dishes of vegetables, often something from her garden. If there's desert, it's probably a bit of fresh fruit. If you are heading out on a long trip, she pulls a loaf of her famous fruit bread out of the freezer (she makes it in bulk before the holidays and freezes enough for a whole year) and gives it to you to take on your journey.

Tho' it felt odd to do it, I decided to mentally calculate how much Mrs. C spends in order to make her guest (me) feel like the most important person in the world. The answer is: Not very much at all; in fact, next to nothing.

And it's not because Mrs. C doesn't have the resources to go out and buy expensive bottled water or brand-name coffee or take people out to fancy restaurants. Mrs. C's husband is a successful farmer and they live a comfortable but quite simple life. I have no idea of their finances (and I don't care), but if you were to tell me that they are millionaires (or even multi-millionaires) I would not be one bit surprised. Mrs. C just does not feel the need to try to impress people with brand-names or expensive stuff. And, Mrs. C knows that spending a lot of money is not what makes one a good hostess.

The important thing is that Mrs. C's hospitality is offered with warmth, caring, and love.

Even if I get the occasional snub from insecure or snobby visitors, I will not let that bother me and I will continue to offer hospitality "Mrs. C-style."
If you ever get the chance to visit me, I'll be happy to give you a nice glass of ice water, or a cup of coffee. And if I have some chocolate or cookies on hand, I may even share those!

Thanks to a big harvesting of chard this morning, my $20 Garden Challenge is once again back in the black. I'm no longer "charging" myself interest and can start "earning" interest again.I still have to recoup my initial $20 investment, but (knock on wood) I'm quite confident I'll be able to do that.

The chard is growning like gangbusters, as are the herbs. We're eating up the chard as it matures, and we aren't sick of it yet. [I've discovered that eating the same things frequently is easier when they are better-tasting because they are freshly-picked.]

I wasn't sure if my little tomato plants were going to make it, and 2 of 10 did die, but the other 8 are now really starting to grow, probably thanks to the warm weather we've been having. They're still pretty small tho' and I've no idea how much longer until they bear fruit, so it will be interesting to see how much we can actually get harvested before we move.

My husband has started talking about wanting a BIG garden after we move to Texas, so I guess he's been enjoying the results of my little gardening effort.

Please excuse me while I do a little bragging ...

My "baby" (40) brother had his annual review at work last week; he had an excellent review and was treated by his boss to a nice lunch at the restaurant of his choice. He has worked at the same place for 12 or 13 years (I forget exactly how long).

So ... What is so remarkable about that, you may ask? My brother is developmentally disabled. Except for perhaps a month or 2 in-between jobs, he has always worked (part-time), ever since he graduated from high school.

And speaking of his high school graduation ... Imagine the family's surprise when, sitting in the bleachers bursting with pride just because he was simply graduating, the principal paused at the end of announcing the honors grads and said: "And this year we are giving out a Special Presidential Award for Academic Effort to ... (fill in my brother's name here) ..." We went wild! The little stinker had never told us he was getting anything.

Anyway, back to his job ... In the past he has done janitorial work, has bagged groceries, and has stocked store shelves. His current job is unloading trucks. On the days he works, he gets up at an awfully early hour and rides his bike to work (he cannot drive a car), and always arrives on time for his 6am start. He is punctual, hard-working, careful, and cheerful.

Tho' he lives with our mom, he pays her some rent and no one claims him as a dependent. He helps my mother out a lot around the house, and he does volunteer work in the neighborhood. Several of the neighbors trust him enough to hire him to look after their homes & pets when they are out of town.

He is quite a remarkable man, who does much more than many folks who do not have his limitations.

Why did he turn out to be such a productive member of society? Several reasons. My parents, while not perfect, made accomodations for his disability but did not coddle him. He had some wonderful teachers who patiently taught him. He has a great employer. And, he has 3 sisters (I'm sure he'd refer to us as psuedo-mothers) who have never let him slack off.

I know that not everyone can work, but I do get frustrated when I hear people making lame excuses about why they can't. I think about my brother and what he has accomplished in his life. If he can do it, just about anyone can!

A couple of recent threads on the forums prompted me to add a new category to my blog: "Sensible Spending." Spending is obviously a big part of personal finance, and spending sensibly is important for achieving my financial goals. Spending sensibly does not necessarily mean choosing the cheapest thing that meets your needs. Like most of you, I strongly believe in looking at "lifecycle costs" when making purchasing decisions. Sometimes it makes sense to spend a bit more now to save down the road...

I recently made what I believe was a sensible purchase, tho' I won't be surprised if some of you say "You spent how much? On what?"

I bought a Porcelain Nail File for $25.

Background: I'm extremely low on the "glamour scale." I don't have my nails done and I don't polish my own nails. I just file 'em short and keep 'em plain. A couple weeks ago my last emery board was literally falling apart, and I knew it was past time to replace it. But I didn't need anything else from the store, so I started thinking "I'll be damned if I'm going to the store just for emery boards, and why can't they make something that lasts forever for filing my nails besides those awful metal things?" So, I got on-line and started looking for alternatives. That was when I found the Tweezerman Porcelain Nail File: $25 from Drugstore.com with free shipping. Didn't take me long to decide to buy it, even tho' the cost is many times more than buying a cheapie emery board, when I realized it would probably (hopefully) last me for the rest of my life, which would mean no more emery board purchases, less trips to the store, and less stuff (used emery boards) going to the landfills.

It arrived last week and I have to say I love it. I do expect it to last me for the rest of my life, and it makes me happy knowing I'll never have to buy a gosh-darn emery board for as long as I live! I just wish they had been available back when I was in my 20's!

Here's some free entertainment for your dog, if he's anything like mine:

Throw your dirty clothes on the floor.

Let dog roll around on dirty clothes, in utter bliss.

The stinkier the clothes are, the better, apparently.

Now, if only I could get him to pick them up off of the floor and carry them to the laundry basket ...

Last weekend I posted a few items to give away on Freecyle. They are items that did not sell at my garage sale, that I held back from the donations pile, and that I was unsuccessful selling on Craigslist (and they are too inexpensive or bulky to list on Ebay).

I love the idea of Freecycle, but I have to say that it is quite a bit of work. For some reason, people respond to postings really promptly saying they want something, but then either don't reply to arrange a pickup or take their sweet time coming to get things.

I will probably accumulate some more things that I will Freecycle just prior to my move, but I will post everything on just one day when I am going to be home all day, and I will stipulate that things must be picked up within the day. Anything that doesn't get picked up, will be donated to charity.

For anyone interested in Freecycle who is not familiar with it, here is the web site: www.freecycle.org

Crime: Herbicide
When: Sometime during the night
Prime Suspect: Bambi and his cohorts

Looks like the deer discovered one of my patches of Rainbow Chard. [Not hard to figure out which side of the patch they munched on, is it?] I'm glad I had gone through and harvested a bunch of it just 3 days ago.

Now that they have discovered it, no doubt they'll be back. Bon appetit, Bambi and friends!