As much as I love SA, I'm finding that I keep taking breaks from the forums more frequently and for longer periods of time.

It may just be my imagination, but the forums seem to be devolving in to a bunch of people fighting over who is right, and they are becoming downright uncivil.

Today was the last straw. I think for the sake of my stress levels, I should take a permanent break from the forums and just stick to the blogs (which of course I still LOVE).

This is what set me off. Someone wrote in a post "This board is retarded." Personally, I find that to be as offensive as any racial slur (and I live in multi-racial family so I've heard it all). Having a brother who is developmentally disabled no doubt makes me more sensitive to this than other people, and I have always been offended by that term even when it came from immature kids, but to hear it coming from an adult in what is supposed to be a civil discussion board ... Ugh!

It really seems like this site has split in to 2 worlds: The great folks who truly want to support each other and exchange ideas on the blogs, and the nasty bickering folks who are just trying to see who can scream louder than the others on the forums.

Am I the only one noticing this?

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!"

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!

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.

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?

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.

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

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!

(Navel-Gazing Alert: Be prepared to read the word "I" many times. Although this is a very self-absorbed post, if you are feeling discouraged about your financial situation, it is my hope that my little story will encourage you.)

For you young 'uns who may not know who Ann Landers is, she wrote a no-nonsense advice column that was published in newspapers nationwide for decades.....

Reading one of Ann Landers columns when I was in my mid-20's led to what Dr. Phil would call a "defining moment" in my financial life. I had forgotten about it until recently, when I was thinking about the state of my finances and pondering how I had gotten from where I was back then (anxious, had some nice department store clothes in my closet, but at a low point ate nothing but spaghetti noodles w/ ketchup for 2 days because I was out of money and that was all I had in my kitchen) to where I am today (contented and confident ... no Warren Buffet, but let's just say I'm pretty sure I'll never have to eat spaghetti w/ ketchup again unless I want to).

I don't remember what the reader had written to Ms. Landers about, but they were basically whining about how they were not good at something-or-other because their parents had not taught them properly. Ann Landers' reply was that the reader, who was by then an adult, had the responsibility to take charge of their own life, parent themselves, seek out the information necessary, and teach him/herself the needed skills.

Growing up, thanks to my parents and educators, I did learn some very important money-related lessons. I knew the value of hard work and earning my own money, to give to those less fortunate, to take care of (and refurbish) things to make them last, to make health insurance a priority, to balance my checking account, to pay off the balance on my credit card every month, and to build a good credit record.

However, I knew diddly-squat about comparison/bargain shopping, budgeting, saving, or investing. Emergency Fund? Retirement Savings? HAH! I knew nothing about any of those things, and I had an assortment of lame excuses, but the biggest one was that my parents had not taught me ... WAAAAH! So, Ann Landers response to that whining reader was a wake-up call to me ... I realized with quite a bit of embarrassment that I was just like that reader, sitting back and moping instead of taking responsibility for my own financial life.

I wish I could report that I immediately set out on a course of self-improvement and became a perfect financial wizard within 6 months. That wasn't what happened. Still hasn't happened, in fact! But I did start taking wobbly baby steps ...

The first thing I did was go to a bookstore and examine every single book on the shelves about personal finance. I don't remember how long I stood at that shelf, but it was hours. I ruled out books with a narrow focus (I was looking for good, general, broad advice). I also ruled out books that were offering pie-in-the-sky, get-quick-rich formulas or books where the author seemed to be hyperventilating (I did not want to add to my sense of anxiety). The book I ended up choosing was "Making The Most of Your Money" by Jane Bryant Quinn. I had seen Ms. Quinn in Newsweek magazine, and she seemed to offer very sensible advice in an intelligent but clear style.

I started reading that book and applying the principals. I did not do this as quickly or as systematically as I ought to have, but I stuck with it and made halting progress.

I started by "forcing" myself to save a bit from my paychecks. Back then, I was unfamiliar with the expression "pay yourself first" but it was what I did. When I went to the bank to deposit my check, I would put a bit away in a CD. [This was a comfortable first step for me, because I knew I could access that money, by surrendering some interest earned, in event of an emergency. I never did cash out a CD early.] This step was made more challenging by the fact that at the time I was dating a guy who was terrible with money, and he scoffed at my little attempts to save. [I told him about opening my first CD and he said it was such a small amount that it did not matter. Boy was he WRONG! It did matter!] I decided to keep my saving secret from him, and I kept at it.

Eventually, I saw my efforts at savings pay off. When minor emergencies arose, I was able to take them in stride. When I got married a couple years later (not to the guy who mocked my savings efforts but to my wonderful, supportive DH), I was able to pay for my own (modest but nice) wedding in cash.

I also started doing price comparisons, bargain-shopping, and buying in bulk where appropriate. I cut back on takeout food and started eating at home more and more (nothing fancy ... sometimes it was just the stereotypical single gal's sandwich eaten while standing over the kitchen sink). At that stage in my financial development, I still was not tracking my spending or working with a formal budget, but I was learning ways to cut back to make saving easier.

I really ramped up my efforts after I got married. I think it was the realization that I was suddenly responsible for a person other than myself that pushed me to become even more serious about securing our future. I started tracking every penny spent, and developed a budget. Many an evening after work I could be found sitting on our bed with the budget book (a green columnar ledger) and receipts spread out on the comforter. As time went on, we trimmed our spending more and more, gradually learning to spend less without feeling deprived. We budgeted ahead for irregular expenses (car repairs, taxes, pet illnesses, etc.).

We started saving for a down payment on a home, and I started reading up on home buying. When we did buy a home, we did not go for the amount the lender said we could afford. By that point, I felt confident in my own ability to "crunch numbers" and I calculated on my own what we could comfortably afford ... We ended up setting our sights a bit lower than originally intended and bought a condo.

When DH's company started offering a 401K, we began contributing to that. I don't remember the percentage we started at, but it was a small amount at first that we gradually increased. (A few years later, when my company started offering a 401K, we immediately started contributing up to the company match, and eventually raised the amount even more.) I started reading about mutual funds, and I chose 2 funds that required no minimum initial investments but we could invest in by having $50 automatically deposited each month. Neither of those funds were roaring successes and we ended up cashing them out in a little over a year, but they were part of the learning process. I read about a then-brand-new Treasury investment called TIPS and opened a Treasury Direct account. [That one was more successful. We still have our Treasury Direct account, and I still buy TIPS in addition to T-Bills.] I took a tax course at H&R Block.

Then, we started to prepare for DH to pursue his dream of owning his own business. I've blogged previously about the steps we took to prepare for him to leave his company and go out on his own, so won't bore you again.

http://scfr.savingadvice.com/2007/04/20/how-to-prepare-finan...
That step has had the biggest payoff in terms of our financial life. It was a big step. But it was all of the little steps taken previously, learning to budget and save and invest, that made this big step possible.

Of course, we didn't stop there. When the internet became part of our daily lives, I started shopping around on-line for the highest-yielding bank accounts. We bought a house. We paid off our mortgage, while maxing out our tax-deferred retirement savings. We relocated to a lower cost part of the country. Our budget is a constant work in progress. I'm still trying to learn as much as possible about investing, and know I have much more to learn. I constantly seek out new sources of information (newspaper, books, magazines, on-line) that I can learn from and then apply what I have learned. Just this week at the library, I checked out another new finance book, "The Number" by Lee Eisenberg (note that I now check books out from the library instead of buying them!) ..... I joined the Saving Advice forum! .....

I know I still have much to learn. I want to find sensible ways to (legally) lower our tax bill. I must decide a reasonable amount to spend on our next house. I am trying to get a handle on how much we really should have saved by the time my DH turns 50, when he plans to try out for the senior golf tour. And there will be other issues that I haven't even thought of yet.

It's a never-ending journey that I assume won't end until the day I die.

When I think back on the girl I was when I read that Ann Landers newspaper column, I can honestly say to myself: "You've Come a Long Way, Baby!"

I read that financial knowledge peaks at 53 ... I'm excited to see where I'll be by then!

Thank you, Ann Landers! May you rest in peace.

1. AAA MMA / Bank of America: Anyone else have the AAA-endorsed MMA? I do. It was with MBNA, but then MBNA was bought out by Bank of America. I was pleasantly surprised to see the rates stay high for awhile after the merger, but I recently got a letter from AAA and it seems they and BofA "got a divorce" at the end of the year. I checked the APY on my BofA account and it had gone down a bit. It's not to the point where I'm going to close the account yet, but I am disappointed and will keep watching that account closely. It's getting harder and harder for us savers to find good rates. *sigh*

2. Credit Unions: Broken Arrow made a comment on my last entry that made me think I should look in to CUs again. I had looked in to opening a CU account in the past, but the rates they paid just weren't attractive enough, so I basically of ruled them out indefinitely. BA's post reminded me that I should stay open to new ideas, so I checked out CUs in my area. Unfortunately, they still don't make sense for me. Either I'm not eligible to be a member, the rates paid are too low, or the rates that are attractive are on accounts that have requirements that don't work fo rme. For example, uhcu.org offers a checking account that has a beautiful APY of 6.01%. However, it has the odd requirements that you have 10 debit card transactions and an automatic deposit transaction every month. I don't use debit cards, and I can't get an automatic deposit. I guess CUs must work for some people because I've read entries by people who love them, but they just don't seem to be a good fit for me at this time.

3. ETFs: ETFs are another thing that I have looked in to and they just don't seem to make sense for me. As they grow more popular, I look at them as an option occasionally; just did it again. I'm going to stick with my low cost mutual funds. Frankly, I'm puzzled as to why ETFs are so popular.

4. CVS: I'm still trying to figure this one out, how some people are so thrilled with the deals they get. They did not have CVS in Seattle, so CVS is new to me since moving to Austin. I looked carefully at this Sunday's flyer, but didn't see anything enticing. It may be because I buy most of my hygiene / toiletry / cleaning items at Costco and get better prices there by buying in bulk (buying the store brand when available). The other things in the CVS flyer seemed to be big brand name junk food or prepared food items, not things I buy regularly. I also do Harris Interactive surveys, and I can get free gift cards to use at Target for the few things I don't get at Costco or at the grocery store. For now I'm not jumping on the CVS bandwagon, but I'm going to keep my eye on those posts of those of you who are fans!

5. Suze, Suze, Suze! Suze Orman was on Larry King the other day. She made a comment about the real estate market. She said rather flippantly that you can get a bargain on a house if you can buy a house for $100K when they are asking $200K. That's 50% off of asking (obviously). That may be a reasonable number in some parts of the country, but not here in Austin where prices have not increased as dramatically. But of course my DH latched on to that comment. We have been having disagreements ... We both think prices are going to fall further, but he thinks they are going to go WAAAAAY down and so we should wait indefinitely or offer about 60% of asking price. I, on the other hand, think that if we could get a reduction of about 15% on a competitively-priced asking price on a house we like, that would be a fair deal. Suze, Suze, Suze! Am I going to be stuck in this small apartment for YEARS thanks to your casual comment?!? We'll see.

6. Tire Shopping: We're almost due for new tires, so I've been price shopping. Compared Firestone, Discount Tires, and Costco. We decided on Costco, as their total price for the same tires is lowest. It probably helps that they are having a $60 off sale that they seem to have each January. Some time in the next couple weeks, we'll plan a shopping and lunch trip to Costco. [You can't make an appointment, and usually end up waiting about an hour, so we might as well have lunch and do some shopping while we wait.] We're going with 80,000 mile tires which of course involved a discussion as to whether our car would last that long. It's a Toyota Camry that has almost 120K miles. We decided for that car 200K miles should be no problem. Total cost will be just under $300.

7. Estimated Taxes: 4th and final estimated tax payment for 2007 taxes must be mailed by tomorrow. I'll drop a check in the mail this evening, after the mailman has come and gone for the day. Of course I could wait until tomorrow morning, but I'm always nervous that something will happen and I'll be unable to mail it. Very silly, I know, but that's how my mind works, and I'll be da**ed if I end up getting a penalty for paying late. As always, I will be writing "YOU'RE WELCOME!" on the memo line. Yes, it's silly & a bit immature that I expect thanks for paying every penny of taxes I am legally required to pay, but somehow writing "You're welcome" on the check helps keep me from getting angry when I pay my taxes.

8. When I was preparing to pay for the new tires and for my estimated taxes, I started thinking back on my financial life and how I got to the point where I could absorb "irregular" (tho expected) expenses like these so smoothly, without stress ... There was a clear turning point (what Dr. Phil would call a "Defining Moment") that I had forgotten about until now. I'll write about that next time, as it may be a bit long. But as a teaser, I'll just say that Ann Landers deserves much credit! Curious? Stay tuned ...

In November, I wrote about getting a new HDHP (High Deductible Health Plan):

scfr.savingadvice.com/2007/11/02/new-health-insurance-policy...

The next thing I needed to do was open a HSA (Health Savings Account). It was difficult choosing which institution to use for our HSA (none of our options seemed perfect), and 2007 tax year contributions don't have to be made until April 15th, so I put off making the decision.

However, it's time for DH to get his teeth cleaned, and of course we'd like to pay for the cleaning with tax-free money, so it was time for me to get on the ball and choose a HSA.

There's a fee when you open a HSA, and there is a fee when you close a HSA (no matter how long you've had it), so I wanted to choose the institution where I thought we'd be happy staying for a long, long time.

I narrowed my choices down to 3:
- Exante Bank
- HSA Bank (division of Webster Bank)
- HSA Resource Bank (division of Stearns Bank)

Exante Bank: I kept this as a top-3 choice because it was recommended by the health insurance company and I think I read that we would get reduced fees, etc with them because of the insurer we chose. But I ruled them out first. Their web site wasn't user friendly (no search feature, etc) and I couldn't find info on fees. Called customer service, and they said that fees varied so they did not publish them, but that the schedule of fees would be sent AFTER I opened my account ... um, not acceptable! Truth be told, I felt like I was dealing with an insurance company instead of a bank, and since they were recommended by the insurer I'm suspicious. I'd rather keep my HDHP and my HSA at arm's length from each other, with myself in the middle & in charge.

- HSA Bank (division of Webster Bank): Kiplinger's rated this one highest, mainly because of their high interest rates and low fees. I did find their rates to be a bit higher and their fees a bit lower than many others. I'm not familiar with Webster Bank: bankrate.com currently gives it a 3-star rating which is okay.

- HSA Resource Bank (division of Stearns Bank): I've been banking with Stearns Bank for awhile, and I adore them. Their customer service is hands-down the best I have ever experienced from any bank. It's very personal; when you call, you get a live human, and in fact you can speak with the same specific live person if you want to. I ask questions, and they never make me feel stupid or fail to answer clearly. Current bankrate.com rating is 5-star, and since I've been dealing with them it has stayed high. Unfortunately, their interest rate is a bit lower and their opening fee a tad higher than HSA Bank. And the worst part is that they charge a $25 annual fee (while HSA Bank charges none)!

On paper, maybe I should have gone with HSA Bank. But I decided to go with HSA Resource Bank in spite of the annual fee. Emotion played a role in the decision. It's reassuring knowing that if ***KNOCK ON WOOD*** DH or I suffered a medical crisis or long-term illness, our HSA is with a solid insitution that we can rely on for excellent, highly personalized customer service.

I did my app on-line, printed it out, and mailed it off with our initial contribution this morning. Then I scratched "Set Up & Fund HSA" off on my calendar where I keep a list of things to do called "Important This Month." Ahhh.

Just pulled one of my free credit reports at www.annualcreditreport.com

I know that ideally I should run one every 4 months (rotating the 3 credit reporting companies each time I pull the report), but honestly I'm averaging one every 6 months. I must really try to do better. It's such an easy thing to do; no excuse to not stay on top of that.
I've already made notes on my calendar 4 months and 8 months from now.

The report's clean --- No sign of identity theft --- No companies reviewing my account that don't have a right to (tho' really, why does Discover have to review it EVERY SINGLE month???) --- Whew!

I've checked my SCORE a few times in the past and paid for it, but DH told me that was ridiculous, and he was right. I was just doing it out of a sense of competiveness [as in "my score is higher than xx.x% of Americans, nanananananah."] --- silly, huh?

I no longer care what my score is ... well, I do care a little bit still (am I pathetically competitive or what?), but I'm not going to allow myself to get suckered in to paying for it. All that really should matter to me is staying on top of identity theft.

Five months ago, I wrote about my former neighbors "The Jonses" who lost their home in a foreclosure auction.

scfr.savingadvice.com/2007/08/03/the-jonses-lost-their-house...

The bank that now owns the house just listed it for sale.

Since I have moved away from that area, I do not know how The Jonses left the house. Did they sneak away in the middle of the night? Did the sherriff's office have to force them out?

It is frustrating to think about how The Jonses desire to live above their means (and the mortgage lenders who allowed them to keep refinancing up, up and away) ended up costing so much to so many. For The Jonses themselves, I'm sure it cost them and continues to cost them an incredible amount of stress. (I wonder how their marriage is now?) The bank obviously lost. Their neighbors lost. But there were other losses as well that aren't so obvious: The county and city and all of the citizens who rely on the county and city services lost when The Jonses stopped paying their property taxes once it was clear they would lose the house. Our neighborhood home owner's association and all of the residents lost when The Jonses stopped paying their homeowners dues and the association had to use employee time to file a lien against their home. And no doubt the negative ripple effects spread even further than what I have thought of.

But you know what? In spite of the doom and gloom tone of this entry so far, I actually feel some hope. The reason is the price that the bank listed the house for. I know roughly how much was owed on the house, and I know that the bank is taking a pretty substantial hit selling at the price they have listed for. It's a semi-competitive price, the bank is going to lose money, and someone is going to get a pretty good deal on the house, especially if they can get the price knocked down a bit more. [The list price is about mid-point between what was owed and the lowball offer that DH & I threw out on the house months ago.] This gives me hope because it shows me that at least in this one particular case the bank has decided to "wake up and smell the coffee." They are not trying to maintain an over-inflated asset on their balance sheet. Looks like they are willing to cut their losses and move on. Yes, it sucks for anyone in The Jonses neighborhood who is also trying to sell their house right now and has to compete against that house. But in the long run, mightn't it mean that we are ever so slowly starting to work our way out of the housing market mess?

Here's my unsolicited tip of the day ... Get off of your computer, get out of your car, and physically walk in to one of those new bank branches that are sprouting like weeds. Ask them if they have any special promotions. New branches may have promotions to attract new customers that you won't find out about unless you ask. I did that yesterday.

I was able to open an MMA with an APY of 4.75% that is locked in for 180 days. I really like the "locked in" part given the direction that interest rates have been going. The new branch was offering this higher rate and the lock but other branches of the same bank weren't.

I also opened a free checking account with $100; it doesn't pay any interest but I'm getting a free $75 Visa Gift Card.

DH had a cute "Aha!" moment last night.

We both like to watch Suze Orman once in a while, since we do learn from her, and usually (not always, but usually) agree with what she has to say. However, DH has expressed that he sometimes finds her style a bit ... shall we say ... abrasive? I felt that way at first, but have come to realize that it's probably in part because she is a very smart / confident / outspoken woman, and in part it's just her schtick (did I spell that right?), her amped-up-for-TV persona.

Yesterday evening we were driving home and discussing a friend who just got laid off, has 4 kids & a wife to support, who has lived a pretty comfortable lifestyle, and yet apparently has almost no savings. My DH (who comes from a culture where saving is more ingrained than it is here) said, "American people spend too much. They need to save more." Then he was quiet for about half a minute, and suddenly his head popped up and his eyes widened a bit and he turned to me and said in a confident voice of realization: "Now I understand why Suze has to scream at them!"

Here's a tip I just learned on how you might be able to cut the premium on your car insurance: Take a defensive driving course. You can take it ON-LINE ... Pretty neat, huh?

My DH (who is the primary driver on our one & only car) is going to complete an on-line course that our insurance company (GEICO) offers. The cost of the course is $19.95. When he completes the course, we will get a 10% discount on our automobile insurance for the next 3 years. At our current level of coverage, that equates to a gross savings of $124.80 and a net savings (after deducting the cost of the course) of $104.85 over 3 years.

We only have one car, and it is not worth a lot so we don't have very expensive coverage. If we had more than one or more expensive cars, our savings would be even more.

At this link, you can see each state listed with how much of a discount you can expect to receive and if there are any age requirements. In some states the discount is only for drivers 55 or older, and in some states the discount is voluntary. But in my state, Texas, there is a 10% mandatory discount and all licensed drivers are eligible.

http://www.firstnetlearning.com/offerings/costco/html/discount.htm

As you can see, this link is for Costco members. But I found out when I called Geico to verify that it is cheaper if I take the course through them.

If any of you are insured with Geico, here is the link to their course:

http://geico.amersc.com

Hope some of you can use this tip to save on your car insurance!

Yesterday evening we went to the Luminations Winter Celebration at the Lady Bird Johnson Wildflower Center here in Austin. The "price" of admission was a donation of 2 cans of food each for a local food bank.

http://www.wildflower.org/luminations/

It's hard to capture the magical effect of over 3,000 luminarias, 5,000 twinkle lights, and strands of gorgeous white & copper lights strung across a Texas stone courtyard where a steel drum band dressed in Hawaiian shirts was drumming carols. And it's hard to not get a blurry picture when you are photographing lights at night without a tripod! But here's a little bit of Texas Hill Country holiday cheer for all of you:

Frugality has crept in to so many areas of my life that I don't even think about it. Yesterday when I was opening the mail, it dawned on me that even the way I open the mail could be considered frugal.

I open the mail standing up, with the following within arms length: shredder, paper recycling bin, my "desk" (it's actually just a folding table right now due to our recent relocation).

Unsolicited credit card offers go straight in to the shredder without being opened.

Any catalogs that made it past my "do not mail list" efforts go straight in to the recycling bin. [Exception: There are 2 companies whose catalogs I will peruse once or twice a year, but they send them out more frequently than that so they usually go in to recycling.] When I do look through a catalog, I'll mark something I might be interested in, then put the catalog aside for several days (or even a week). If, when some time has passed, I still think the purchase is a good idea, then I go ahead. But often the catalog just goes to the recycling bin and the purchase does not get made.

Bills get put in the "To Pay" file in order of due date. (Paying bills on time is so important.) If a credit card statement has checks attached, those are immediately torn off and put in to the shredder. If advertisements are included with bills, they go directly to the recycling bin.

In contrast, I know someone who makes opening the mail almost a form of daily entertainment. She makes herself a cup of tea and then sits down with her stack of mail which usually includes a ton of mail order catalogs. She flips through the catalogs with great pleasure. As you can probably guess, she often ends up ordering from those catalogs, and as a result her house if literally filled to the rafters with "stuff" and her bank account is practically empty. I feel so sorry for her. But who knows ... she probably feels sorry for me since to her my life may seem pretty spare since it's not filled with knicknacks and closets stuffed to overflowing with clothes.

On Saturday we took a day trip down to San Antonio to do some househunting (more on that later, in another blog entry ...) so I waited until Sunday to do my monthly Net Worth calculation. It was down a bit from a month ago; not a lot, just a bit. It didn't bother me because I knew what the reasons were, and in the grand scheme of things they just don't matter. For example, I paid and recorded our December rent payment at the end of November instead of the 1st of the month. Also, my retirement funds were down a bit, but they had been up freakishly the month before, so I wasn't concerned.

But I was worried about my DH's reaction. I knew he might have a little freak out and would want to start moving money around (he just can't stand to see any sort of dip, even if it's just one month), so I did some pre-emptive strategizing. No, I did not do any "creative accounting" ... No money secrets in our house. Instead, before showing him the monthly figures, I looked up what our NW was 3 months ago and one year ago. Then, when he saw the monthly figures and he said "What?!?" with that "here-comes-trouble" tone of voice, I just calmly explained why, and then said "But look at the change from 3 months ago ... And look at the change from a year ago!" And you know what ... He got it! He looked at the big picture, and saw that a one month dip is not the end of the world! Over-reacting was averted ...

I was inspired to take that approach (using what I know about how my DH thinks and staying one step ahead of him) by Ima_saver ... It makes me chuckle how she takes out a loan to buy a car even tho' she could pay cash, because it keeps her car-crazy husband from buying a new car every year!

Caution - Vent ahead ...

An acquaintance of DH's just called him for the 2nd time in about 6 years. The guy just started some natural supplement marketing program that sounds and awful lot like a pyramid scheme. Tried to sell DH on going to a marketing pitch ... er, I mean "free lunch." Last time the guy called DH was about 3 years ago, also when he had just gotten in to a similar scheme. [Wonder why he's not still doing that one? Hmmmm.....]

This guy didn't even know we weren't in Seattle anymore!

Blech --- Does it bother all of you as much as it bothers me that someone would call you up only when they are trying to sell you on something? Blech, blech, blech.

And doesn't this guy realize what a smart fellow my DH is? He would never get sucked in to such a scheme, so why waste his time calling?

Okay - I feel better now - Thanks for listening!

I just sent off my resume with an on-line job application! Big deal, right?

Well ... In my "career life" I got one job right out of college that I kept for almost 17 years (survived 2 mergers and moved steadily up the ladder); did a couple temp jobs in-between that didn't have very strenuous hiring procedures; then I started my own business.

So, it has been ages and AGES since I sent out a serious resume. Mine was kind of dusty! Feels good to have it dusted off.

Hiring has sure changed quite a bit with the whole on-line application business. [When I got my first job out of college, our office did not even have a PC. We had a typewriter, a fax, and a teletype machine.]

The job I applied for is a temporary government position. I don't know if I'll be offered a job or if I'll even want it if I am offered it, but I thought I'd give it a shot!

I like that it is TEMPORARY. Since we haven't bought a house yet, I don't know what part of Austin we'll be settling in, so I haven't started looking for full-time, permanent work yet. And to tell you the truth I really enjoyed being self-employed, so I may decide to go that route again.

It feels good to have pushed myself to try something new.

We don't eat out very often, so it was a nice splurge for us yesterday when we had lunch at Costco after finishing our shopping there. DH had the hot dog & soda combo, and I had a slice of pizza. The total bill for the 2 of us, including tax, was $3.78. Not a bad price tag for a splurge!