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First 3 Financial Decisions of the Year

January 6th, 2009 at 07:01 pm

1. Today's 10-yr TIPS Auction (first of the new year, and one of only a couple for 2009): We decided not to participate. I sort of wanted to, DH did not want to, and I was not sure enough that it was a good idea to try to persuade DH. (I am starting to think that if DH was single, all his money would just be sitting in the bank. I'm the one who brings up things like TIPS and mutual funds, and sometimes I have to push to get any sort of investing done.) Since my crystal ball has not yet been delivered, I of course have no way of knowing what will happen in the next ten years. Best guess? A period of deflation (due to constriction in consumer spending) followed by soaring inflation caused by the pent-up pressure of the presses at the Bureau of Engraving and Printing running overtime during a deflationary period? Auction results were published at www.treasurydirect.gov and the yield was 2.245%. I suppose it would have been fine if we had participated in the auction, but it's not the end of the world that we did not. (If, 7 years from now, we are in a prolonged period of double-digit inflation, please remind me what an idiot I was.)

2. New Bank Account for Bonus: We decided to open up a new checking account just to get a $100 bonus (we had received a promotional coupon in the mail). We have to keep the account open for 6 months, and there is no minimum balance requirement. I do wish that banks would just offer better interest rates rather than offering these bonuses, because it is a bit of a hassle to open and close accounts ... But I suppose that is why they do it the way they do ... There are lots of folks out there who can't be bothered to open & close accounts, but for $100, I sure can!

3. We Decided to Buy a Specific House (it didn't pan out, so don't get too excited): While at a party on Saturday, DH received a semi-cryptic message from a builder's sales rep saying "I sure hope you're still in the market for a house. Call me." DH got up early Sunday morning and checked the builder's web site, and saw that on one house in particular they had taken a BIG-TIME price drop. He came in and woke me up all excited like a kid on Christmas morning. I checked it out and got very excited myself. I said "Let's buy it!" and DH agreed 100%. It was truly a screaming deal. We were ready to go out to the house and sign a contract on the spot, for the asking price. (It is in one of our favorite areas of Austin, we know and like the builder, and DH had visited that particular house and had liked it very much and explained it to me in a way that I knew I would like it too.) We had to wait several hours until the sales office opened for the day, but I got my checkbook out and put it in my purse so we could head out there and write them a check. While waiting, I was doing chores around the house and DH was on the computer Zillowing, etc. Before too long, it started dawning on both of us that something was not right, that it was just too good to be true. Gradually we came to the realization that there had to be a mistake, perhaps a mis-typing when the new price was inputted. It felt like the air slowly going out of a balloon. When the sales office opened for the day, I called them to check on the price, and as we expected the price posted on the web site was wrong. In fact, the actual asking price was more than double! Oops!

Poor DH looked so let down, but I wanted to end the whole experience on a positive note for him so I high-fived him and told him that he has a great eye for a bargain (he does).

What I learned from the experience is that we are 100% ready & willing to buy a house when the right deal comes along, and that we are capable of making a VERY quick decision if need be.

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Our 4th financial decision of the year will probably be made very soon, and it will involve our apartment lease. We had wanted to move to a larger apartment back in December, but the management of our complex kept dragging their feet. Our lease is coming up for renewal very soon, and it's time for us to make a decision about what we want to do. We have new rent rates on our current unit, and information on a possible larger unit. Today I went out and checked out several other complexes for comparison purposes. We are now leaning towards going to a month-to-month lease. That will give us more flexibility. We're looking at Sept or Oct as possibly a good time to buy, but if we find a great deal (like the one we found over the weekend, but "for real") sooner than that, it will be nice to not have to break a lease. Never in my wildest dreams would I have imagined that I would be a "month-to-month lease" type of person, and certainly not at age 40-something. To me, month-to-month leases are for people who don't know where they will be a month (much less a year) from now. And guess what? Right now, that's me.

3 Responses to “First 3 Financial Decisions of the Year”

  1. homebody Says:

    Reading your post, in my head I was going, month to month, month to month. I see you figured that out yourself! Good luck finding a house. It's a buyer's market!

  2. boomeyers Says:

    Keep looking! I work for Remax and I have seen so many awesome deals from foreclosures, to new homes subdivisions practically giving things away! It will come! Smile

  3. Ima saver Says:

    Sorry it didn't work out, but you will find something!

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