Single Guy High Impact Saving

A little background...

While I was away from the blogs, I needed to make a semi long trip, about 2 hours each way. As I was on my way I found (via call) I would be arriving way too early and would need to wait maybe a half hour for the person I was going to visit. What I have done in the past on this trip is about half way I switch from highway to a parallel road that is four lanes and maybe 5 traffic lights for 40 miles, then I get back onto the super busy expressway for the last 10 miles to her house. I do this because the other road is not travelled by many people and it makes for a relaxing ride.

Anyway, I had a choice. Stop somewhere for maybe an hour, or drive slowly to get there when I needed. I went that route (the parallel road) and drove maybe 45 MPH instead of 55 to 60 on this stretch of my trip. It worked out right and I arrived after she did. On the way back I did the same, taking that road and enjoying the relaxing portion of the drive only going 45 MPG.

So when I stopped and got gas I found that my MPG had increased to 40 MPG for the last tankfull. This surprised me and got me thinking.... How much was my MPG for just driving a very relaxed, no stop light 45 MPH. Using some general guess-timates, here is what I came up with.

(Boring math analysis alert)

Start with my normal MPG. This tankful had lots of highway driving, and that will normally come in at 36 up to 38 MPG. I will go with 37 MPG for what it normally would have been. The overall trip on the tank of gas was 420 miles, but lets round down to 400 miles. My "slow" portion of the tank was 2 times 40, or 80 miles. So that means only 20% of the trip was at the higher MPG rate. That would mean that whatever increase I see in my overall MPG, I would need to multiply by 5 to get the increase for just the 20% of the trip. My increase was 3 (40 - 37) MPG, so for the time I was doing 45MPH, I was getting an increase of 3 times 5 or 15 more MPG. Normally I get 37, so this means I was getting 52 MPG for that portion of the trip.

OK that was a lot of assumptions, but I don't think it will be that far from the truth. Think of it, I can up my MPG to over 50 by driving really smoothly at a leasurely pace.

I dunno, but this really surprised me when I worked the numbers out. Maybe it will give you pause when you think smooth slow driving doesn't help the fuel efficiency of your car.

Dang, its been a while since I posted anything. Of course I have excuses By the way, instead of splitting all these stories up, I left them all in here. So this is a loooong post.

My computer died on me about a month ago and I have been trying to restore my system. I have everything working but my wireless router connection Hopefully that will be resolved soon.

Rant #1) I will never, and I do mean never, buy anything from Tiger Direct again. My old computer was from them and it had more problems than I could believe. I would fix one thing from them, and others would start. And previously I bought a computer from them, only to find out they sent me the wrong parts (the CPU wouldn't work with the sent motherboard - even though it was a package deal!). When I called, the rep even said that yes, they knew they sent the wrong CPU. I didn't ask why they didn't contact me, that instead I had to spend a month researching the problem before I realized it was their fault. I'm a patient customer, but thats it with them. No more.

Rant #2) I got to read an article in the paper today that I was stunned to read. In the business section, this person said it was ok to tithe at your church before paying your debts, even if you are in bankruptcy. Click here to read. Now I am no fan of credit companies, but if I was owed money and instead the money was being sent to a church and they couldn't pay me, you might actually see the steam coming off my head. Some people may disagree, but I see that article as worse then irresponsible. Unreal.

Rant #3) I bought my new computer at Circuit City. While there a nice guy helped me with some questions I had about this computer, and after he headed off to do some stocking, I decided to get the computer. As I couldn't find him again, I caught some other guy, and yes, he could do my order. Seems this one was the manager of the store. As we're going through this he asks if I decided on the extended warranty. "Oh I don't know, what is it?" Now I knew I wasn't going to get it, but I thought I should hear it out anyway, just in case. Well this guy was surprised I didn't know about it, and went through the details, giving me lots of reasons, and even antecdotes of why it was the best thing ever to do. I declined (multiple times!), and at different times the guy was muttering how he was upset the other salesman didn't bring up the warranty and that he would have to talk with him. If I wasn't in a bad need to get the computer I would have walked out then and there. Its bad enough how pushy they ask salesmen to be about those things, but to go on how he would have to deal with the salesman in front of a customer, that was just plain stupid. Triple Ugh.

Found Money #1) I was checking my online credit card bill, and saw I had over $40 in cash back, which surprised me, as it should have been less than $10. After checking the numbers, I realized it was from my computer purchase. Discover has quarterly specials where buying from certain retailers would give you 5% back. Well I signed up and forgot, figuring I would never go to those stores. Well one was Circuit City, and thats where I got the computer from. So good for me!

Found Money #2) I found out last week that for the branch christmas party there will be a gift exchange where the presents should be $20-$25. I'm not a big fan of doing this, but it makes other people happy, so ok I suppose. Well I was out seeing if there were yard sales yesterday, and I found only two. But one had a nice item, still in the original plastic wrap, and I got it for a dollar. I thought I could use it for the swap, and last night I checked the only store it sells at, and it goes for $20. Score! (ok, not found money, but it avoids spending money, so it works for me)

Found Money #3) I stopped at the book store last night. When I drove up I could have sworn I saw a shiny dot as I went in to park. I got out and didn't see anything at first, but then I saw it. A quarter right next to my tire. That plus some pennies found in the store and shoot, there's money everywhere!

Frugal doesn't always work) While at the book store I went to use a free coffee coupon I had been sent. I'm not a coffee drinker, but after talking at the register I found I could only use it on coffee or tea (not hot chocolate - damn). Well I thought lets try the coffee. How bad could it be? Ugh. It was a cappachino, and I could only take a few sips before I gave up. When I got home I drank some fruit drink then used mouthwash to get the taste out of my mouth. I think that will be my last coffee for the next decade.

Why do they send me this stuff?) If anyone remembers, I like to get credit cards so I can get start up rewards, or 0% money for investing. Well I keep getting these preapproved stuff from different companies, especially now from Capital One. I guess pre-approved means I am breathing, because I sure am not approved. I applied to Capital One, and got a letter back saying I wasn't approved, and gave a list of reasons why. I'm not complaining, its their money. The reasons probably make sense to them, but come'on, why are you sending this junk out if you're just going to reject me anyway? Stuff like this is why I don't have much sympathy for credit card companies. Dumb, dumb, and dumber.

More found Furniture) During yesterday's yard sale travel I came across one of those fibre-board with fake wook laminate shelving system left outside. You know, the type with four shelves that sell at Wal-Mart for maybe $50. It was too large for fit in my hatchback, but then I realized I could take it apart and I could fit the pieces in. (Get out the tools time) It was in great shape (almost new) and the people even had left the extra hardware inside in a bag. While taking it apart the person came out and we started talking some. Then she offered me a matching unit if I would come back in a few weeks. She was very happy someone would take them, and gave me her name and number. Hey, that works for me.

Ok, let me start with the item that most people like to read about, then we will get to the more ... ummmm... interesting stuff. interesting ... yeah, thats a good word for it

I stopped at a gocery store on the way home. It was due to an offer to get $12 off of 8 boxes of cereal + an $8 coupon off a future purchase. I made sure I had coupons for 8 boxes of the stuff (general mills), and stopped there tonight. My total for the 8 boxes I got (including the $8 coupon I received, plus another $0.75 as cash back on my 5% cash back credit card) came in at just under $5. I think the original prices would have totalled around $30 for the group. Not shabby, though as a single guy I have enough cereal to last me two months now.

In other news, I went to the local branch of the credit union where I cashed my inheritance checks to get some cash. I previously had tried to do an online transfer of that money to a bank to get a high interest rate, but something got mucked up. So the money had just been sitting there. They were supposed to be looking into the problem, but nothing yet. In any case, when I arrived today I spotted a new CD offer for 9 months at a rate better than what I was going to get online. Finally, luck turned to my favor. I quickly set up the money that had been stranded into CDs with the CU. Big plus for me.

And finally: Money I got from a 0% cash advance from a new credit card arrived in my checking account today, so I called that credit union (its a different one than the one listed above), and set that money up into CDs for 12 months. The 0% offer lasts til the end of 2007, so that money is now off working for me for a year. Yeah, I know some people don't like doing this, they feel its risky. Perhaps, if you aren't organized or undisciplined, but thats not me. I have spreadsheets set up with my CCs status, along with where my money is, and what its earning. At the beginning of the year I had maybe $6k in CDs, and another $9k in various savings accounts. Now I have enough money working for me in CDs and savings that my calculations show I am getting over $10/day. Ok, it won't make me rich overnight, but the earnings are going into buying more DRIPs and ya gotta luv that.

Or maybe make that "easy frugality". People always are looking for ways to save money, and sometimes miss the easy ways. I thought of that today as I took my a/c units out of my windows. This keeps them out of the elements for the winter - actually I use them maybe 4-5 months (May - October), and with the windows now closed correctly less cold air gets in. By removing them from the windows, the units last longer and stay cleaner too.

And then I took my 3 box fans, removed their face plates, cleaned the accumulated lint and dirt out of the motors (and everywhere else I could clean as well), oiled each one, and put them back together. If you clean fans occasionaly, and oil them, they will last almost forever. My oldest one is 22 years old and still works fine. Not paying for new items when simple cleaning of old ones will do saves so much more than trying to scrimp on things here and there.

I haven't been blogging since nothing much thrilling has been going on. Some little news and notes:
Yard sales are still going strong, even with much cooler temps. In fact there have been more lately, though I can't figure out why. Got lots of kids clothes for friends for almost nothing. Got lots of soap, again for nothing or close to it. Not much for me, but maybe that means I don't need anything any more.My credit union is giving me problems now. I'm trying to transfer money to my new online banking account, but nothing is transfering, not even the trial deposits. Everything has been verified, but nothing. Now they are down for the weekend upgrading their computer system. Hoepfully this will get resolved soon And now for my rant on stupid financial articles. I just finished an article saying how it is hard to determine your retirement expenses. Ok, nothing new, but the examples are dumb. First one retired at 51 and has been going cross country visiting friends for 9 years (as well as entertaining them when they visit), and now her expenses (taxes, insurance, health care) are too much. "Hey, lets retire young, and then spend my time traveling. Yeah, that should work, and cost nothing." Ugh. Another one retired at 44 years old nineteen years ago, and now taxes are too high for him. Oh gee, you think he might have retired a tad bit too early? And taxes never increase, right? Duh. And the last one retired at 65, but decied to buy a condo after renting for 10 years. She says now she forgot about the expenses of owning a home. Sigh. Actually its not the worst article in the world, here it is if you want to read it: Click hereOh, and the last payment to my ex wife for the divorce settlement went out today. Now I can put serious money into my investments - well I guess thats good news at least.

And no, I don't mean comics (sorry to disappoint anyone). I was reading the mail after coming home, and in it was an advertisment for how to use the bonus points on one of my credit cards. I actually do use this one for purchases (rather than 0% Bank transfers). I do so because I get 5% (or actually 5 points per dollar) at gas, grocery, and drug stores. With my purchases that qualify for the 5% cash back, I figure I can get $100 back in about a year and a half.

Anyway, I would normally get cash for the points, rather than their over-priced items. For cash, it comes in at $100 cash back for 10,000 points or $50 for 6,000 points (booooo!). Actually this didn't surprise me. But right below it was the funny part. There is a section for using your points towards paying off your mortgage with the company (it is Chase Manhattan). To get a $100 reduction on a mortgage payment with them, it will put you back 11,000 points. I think I read that 5 times. I just *had* to be misreading that. But no, that is what it says. In effect it will cost you more to use your points to pay down your mortgage with them, than it would to get the cash, and then use it to pay your mortgage. Who in their right mind would do that????

I suspect though that there are people out there that would do it. Actually I can think of a few acquaintences that might do it. Oh well, I just have to put it down to one of my philosophies, that there should be a stupid tax, and this qualifies as just that.

Just a few thoughts before I talk about the water bill.

I've been reading some personal finance bloggers and some talk about they feel bad sometimes in that they can't get everything they want, and how savings is a drag. They talk about seeing things on TV, and wanting them badly, but stopping themselves. Well here's a thought: save money, don't pay for cable, and watch less! You'll see less commercials, want less, and live a better life. Duh. I guess you gotta give them credit for working on their finances while torturing themselves by seeing all those commercials. I think the behavior is dumb, but then again I've never been considered one to run with the majority.

I set up my latest online banking with E-Loan today. 5.5% interest, not toooooo shabby. One of these days I may hit the point where I have too many accounts to track, but I haven't seen it yet!

The dresser I rescued a few weeks ago is now finished and in service. Not perfect, though you would have to look close to notice the problems. That's the problem when you have made furniture - you notice flaws others wouldn't care about.

Finally, I got my water bill for the third quarter yesterday. I'm certainly not complaining, it was only $20.50. Now I do try to not be wasteful, but its not like I don't use water. Anyhow, with the bill was the company propaganda, including a rate hike for next year. It comes out to about a 3% increase, and I certainly can't complain about that. The interesting part was they described how this would effect an "average" consumer's bill. I am guessing a consumer means a single household. Based on the numbers I back-tracked and worked out the average usage. It is 8 times what mine was! Now my bill was for two people, but you gotta figure the average household is around 4 people. What does this average family do to use 4 times what I do per person? BTW, that average bill would be $125! You mean a lot of homes pay more than this??? Maybe this isn't earth-shattering, but it sure was surprising to me when I ran the numbers.

Not the best title here, but who cares. OK, my last post brought up the question of what my DRIPs are. Instead of answering in the responses, I thought this deserved a lil post.

For some background ... there are different ways to look at investing, and getting the most bang for the buck. For the micro investor, its really hard to have a good plan. It turns out I have had a little plan in my mind, even if not really thought out. Maybe a week ago I read someone who was proposing that investing for yourself (preferably through DRIPs) would be the most cost effective for large cap companies, whereas mutual funds would be better for everything else (small cap, foreign, REITs, etc...) This is due to the cost of research and knowing what you are buying. For the little investor, it probably makes sense to stick with larger companies you know.

While I hadn't looked at it that way, that has been pretty much my strategy. I figure I can invest myself in the large companies, do it on the cheap, so even if my return isn't quite up to snuff, when you figure I don't pay any maintenance fees, I should come out ahead of most any large cap fund returns. I let my 457 plan get full of small cap growth funds, and international funds, and hope the managers know better than me what they are doing.

So, with that said, here is a high level view of what I have (Drip - Market Category):

Dominion Resources - An energy utility
Aqua America - A water utility
Disney - Entertainment
Home Depot - Durable Goods (I think)
Heinz - Food

Well thats the list, and they don't total $10k yet, so I'm no tycoon. I have been trying to diversify, looking for stocks with a good record of dividends in different market sectors. Its hard to do without tons of money.

Anyhow, banking is another area I wanted to start in, and Bank of America has good dividend rates, and most analysts are high on it right now. Some other companies (areas) I have wanted to get started in (at the right price) include Pfizer(pharmaceuticals), Johnson & Johnson (consumables?), Anheuser Busch (Food & Entertainment), Norfolk Southern or BNSF (Transportation).

One area you might notice isn't included is defense industry. That looks like a good area for now, but may falter down the road. But in any case, thats not why its missing. I have an old 401k from when I worked for a company bought out by a defense contractor, and their stock fund became a defense contractor stock fund. So it holds about $6k in their stock, and I am using it as a pseudo DRIP right now for defense stocks. Therefore I consider that area covered.

Some other notes here. J&J won't let you start a DRIP without already owning their stock (as well as Coke), so for now I have passed on trying to start DRIPs with them. Down the road... perhaps.

OK, any ideas here?

A while back I mentioned that I might be getting a small inheritance in the near future. Well my relation decided to give some of the money out while she was alive and I picked it up this weekend. It was a little more than I expected, but nothing huge. Still, its nothing to sneeze at.

So it leaves me with the question of what to do with it. Some plans competing in my mind have been:Fully fund a Roth IRA for this year - This is one I know I should do - but who should I set one up with?Buy some new DRIPs - Bank of America has been in my sights as a new one to startSet up new CDs - There is a new online bank (ELoan) that has 5.75% CDs available for one year. While its a good rate, the min requirement would swallow my whole windfall, and there would go my Roth IRA for 2006. They do have a savings rate of 5.50%, so maybe I can split the difference?Up my 457 retirement savings to the max for the year - I could do it, but that would mean my take home pay for the rest of the year would be some ridiculously small amountBuy a lightly used car - ok anyone believing that one should go to the back of the class

Right now I'm leaning towards the Roth / Online Savings split, with leftovers going toward setting up a new DRIP. At the moment there is a hold on the check until next week, so I have the weekend to decide. And sorry if it sounds like bragging, but this is the first windfall I have gotten since .... well ... forever.

Today I took my recycling along with me on my way to work. Also took two small bags of garbage that were left by my renter (he moved out yesterday). I don't know what he was doing, but he filled up by himself two big bins just full of bottles, and they could barely hold them all. Doing this and not paying for garbage pickup saves me $30 a month.

Anyway, thats not what "paid" me today (although it is a help in the finances). The smaller of the two garbage bags I took seemed extra heavy, and I couldn't understand how it could weigh so much. It was a tied up grocery bag, and it looked like there were papers inside. So, I thought... "Why don't I open the bag and put the papers in with the recycling?". (See, I am a good person sometimes) At the next light I untied the bag and pulled out a number of apartment guides he had been using. Then I noticed a zip-loc bag at the bottom. I picked it out and it was full of coins! No wonder the bag was heavy.

Apparently he kept the coins in case he travelled toll roads or went through tunnels (He was going through Baltimore). This bag had coins, and not that many pennies either! At work I took the coins out and counted. It came up to $8.73 I'm not going to get rich with them, but hey, it was certainly worth the trouble.

So you never know. Recycling can come up with furniture for the house (see my last post), or even coins of the realm.

Went out today and everything was wet - it rained last night. Didn't find many yard sales, and all I got was some kids clothes, a child's winter jacket, and beanie babies (50 cent each). I think I spent $5 on everything.

... HOWEVER ...

As I drove down a side street I never go to (I did this time because of a YS sign), I passed a dresser left out for garbage (or for someone to pick up?). I decided to stop even though it looked big and I might not be able to take it even if I decided to try. Usually the things I check are awful, and don't bother with them. Well this one looked salvageable, and I could just barely fit it in my hatchback. After I got it home, and checked it more thoroughly, I found it was mostly solid wood (some plywood - no fibre board), no breaks at all (really built well), no water damage, all the hardware is there except a few knobs (I have plenty available in a can). Only a few scrapes and wear on the top. It looks to be a $250 - $350 dresser when new (4' wide by 3' high). After cleaning, & staining, it looks nicer than what I use now. I should be able to polyurethane it this week, and I think it will look close to new.

So this isn't a yard sale find, but it was during my rounds, and well... it sure beats paying a few hundred for it new.

Hmmmm, spending the weekend out of town was tiring but worth it. Of course, what does this have to do with finance? Not much, except for tracking gas prices as I made a 200 mile round trip. I didn't quite know what to think. I found gas prices where I was staying about 25 cents less than at home (it was 2.79 when I left), so I filled up when I started back on Sunday. OK, that was only 4 gallons, but I thought it would be worth it. Ooops. As I travelled, the prices kept getting less and less. First 2.49, then 2 miles later 2.43. About 10 miles later I saw 2.39. Finally at the half way point (say 45 miles) I saw one station at 2.25. After that the numbers zoomed back up to hit 2.75 near my house. As I drive a 35 MPG hatchback, I'm not too concerned about getting the absolute lowest price, but wow, those numbers were all over the place. Next time I make that trip I will pay more attention to the prices on the way there.

Today I got my Shell gas card. Real low limit for purchases, not that I care. I just want to get that $40 back after 3 purchases. With prices dropping, the gas is going to be mucho cheaper.

(Warning: serious sarcasm ahead) And my last item (and only other item in the mail box) is an "offer" for a "smart banking package". FYI, this offer is from HSBC. Lets see, what all does it offer? Interest checking is highlighted. Of course to avoid monthly fees you need to have direct deposit, and have at least $3000 deposited. OK, not terrible, though not appealing. Sooo, reading the fine print, what is the current rate with the checking account? An APY of 0.15%. That's right, if I were to deposit, ummmm $10,000, I would be able to get $15 after one whole year!!!. I could get a whole half tank of gas! Who needs those silly 6% CDs when you can get rates like that? Then it mentions you can have free internet banking with Bill Pay. But in the fine print it states that this service is free to all HSBC customers. Well, that certainly makes this offer sound appealing. It comes with other things like home equity line, which according to their own numbers would cost from 8% to 10%. Be still my heart. Oh, and to top it off, it comes with a free debit card - truly stunning. LOL. Even the one thing that sorta sounds appealing - one free night for two at a Marriot hotel has a serious flaw. Reading the fine print shows that they will report the cost of the hotel room on an IRS form 1099. After you pay taxes based on the "no discount" rate, it will cost little less than getting the room at discount. Sheesh. Seriously, this might have been a decent offer 10 - 20 years ago, but come on guys, this is 2006. (On second thought, I wouldn't have been impressed 20 years ago either.)

Warning: A bit of bragging here.

As the title says, the check has been deposited. What check? Oh right. That is, a check with cash from my credit card at 0% through my March 2008 statement (a balance transfer to another CC). A $6k amount I should be able to set up with a CD at 5.35%. Yumm, another $25+/mo. free cash.

My latest credit card endeavour is from Shell gas, where I am supposed to get $40 back if I make 3 fill ups in 2 months. If I only do the three purchases, that is $13 off a tank of gas. I normally do 3 tanks every 5 weeks, so no problem there. If I get this card (I'm waiting to hear from them), with prices of gas dropping, a fill-up for my hatchback is currently about $30, so I could fill up 3 times for a net of $17 each time. Yep, that sounds like a winner to me.

What is the saying? "Nothing is constant but change?" Something like that anyway.

While I wait for the hurricane to blow through, I get to consider what I am going to do starting next month. Why? Because my finances are going to be getting an extreme makeover. OK, that's a lil extreme, but there will be changes, and I need to consider what I am going to do, if anything.

What's up? Here is the list:
My renter (a room) is moving out by the end of September. There goes $475/mo.My earnings from 0% bank transfers should hit $180/mo. (3 months ago it was $0)I should be getting a raise of around $100/mo.My payments to my ex wife end in October. That will free up $1,000/mo.With the renter gone, the utilities will probably drop $25-$40/mo.

Ok, that looks like it for now. Overall its a positive (~$800/mo.), but having my renter leave will cut back on the gains I was hoping to start in November. I could get a new renter, and may very well do that, but I am not in the tight situation I was in when he moved in about 18 months ago. But if I am going to start dating again, would having the house to myself be better than having that extra $500/mo.? I dunno. Its no rush, but dang I got lots to think about this weekend.

Ok on that silly change of a phrase, I can assume some of you know what I am going to mention. For those that don't, there is a site I have read up on based on some finance blogs. It is propser.com. It is a very interesting site where you loan money directly to borrowers (or borrow directly from lenders based on your point of view) and the rates are better for both sides of the equation. The idea is to cut out the middle man (ie. the bank).

I have been extremely wary of trying this type of setup, the risk just seemed too great to me. But as I have read more about it, I'm beginning to think putting a small amount in to try increase my return from my investments might be worth doing. At least I could learn the real worth of this activity wihtout too much risk. And if I lose some money I'll learn my lesson.

Sorry, this was just some out loud musing on my part. If anyone has suggestions or wants to pass along their experience, please lets hear it.

Well, this isn't really an analysis, but yesterday the electric bill came in. Now understand I live in the DC area, in a 4 bedroom house. This area is muggy, and can certainly get steamy. And this bill is for mid July to mid August, which should be the worst electric month of the year. And the bill was... $72. (Last month was about $54) I know most people here have bills over $150, often over $200 at this time of year. And I don't feel like I suffered with heat either.

As I mentioned in a prior post, I use only window ac units in bedrooms, and one downstairs. No central AC for me. When I leave for the day, if its not going to be extremely hot I will leave the AC off. If it is going to be hot, I leave the downstairs AC on. The upstairs can be cooled after I get home. I let it cool while I eat downstairs. By only cooling rooms as needed my electric bill is much less than other people with matching homes to mine. And I don't worry what I set the temperature at, I just put it at whatever I feel comfortable with.

I just thought if anyone read how I cool my house and wondered if it worked, this is my results for this year.

(I don't care if anyone has this phrase trademarked, I'm using it anyway!)

Just a quickie on some of my financial doings of late:

The Good:

Got another $5.5K in 0% BT funds for 19 months. Ok, it won't get me rich, but given I can get a 6% CD right now, that means I can make another $27 / mo. I think this puts me up close to $175/mo. free money on those things right now. The first one I did runs out next April, but this one runs out April 2008!

Last weekend's yard sales were another odd set. Mostly nothing, yet I came up with two train sets (my weakness) on the same day (I rarely find one all year). A small scale one for $3, and a big scale set for $15. Not fabulous deals, but not bad. That and a few toys for kids was it. Hey, its better than buying junk that you find out you didn't really want anyway.

The Bad:

I've gotten a few credit card offers this week, every one ranks as an "ugh". Each one offers some special thing like you can get rebates on purchases and free airline lounge availability. Of course there is a yearly fee on each card, so you have to do a lot of work to break even, and much more to make it come even close to a cash back card. Noooooooooooo thanks. Unless my job requires me to fly 20 times a year (ain't happening), these cards definitely aren't worth it to me.

Last weekend I went to the book store to use some store credits to buy a DVD set. The computer went haywire (I think) and said that the card I used had so much money on it, it paid for the set, and now had more on it then when I gave it to the cashier. I was honest and told the guy at the register that can't be right, and I would use another store credit to pay for it. He insisted that it said it was paid for and I shouldn't worry. ~shrug~ Well that was different anyway. (OK, this is good, but its sorta disconforting when the system can screw up that way. The next time might go against me.)

The Ugly:

And then I get a letter from the IRS saying I wasn't eligible for a "damaged spouse" portion of last year's IRS refund. The letter made no sense, as it only told me I wasn't eligible as I didn't withhold more taxes than I owed. Well they did take my refund (meaning I did pay more), so I don't know WTF they're talking about. I used the form exactly as they described, showing I should get about $200 back. The letter said I could appeal for up to 6 years. I dunno, but I am considering it. Maybe I really shouldn't get the money, but it would be nice if they sent along a real explanation as to why!

The above is my 2nd argument with the IRS. The first was maybe 20 years ago. They came back months after I filed and said I did not include earnings from so-&-so, so my taxes should have been $X more, and now I needed to $X more plus another % again. Turned out they were right, though I never got the paperwork from the employer, and had forgotten about it. However they couldn't be bothered to notice that meant I also under reported my withholdings. I had to write back to point out their mistake now. Finally they agreed and I sent in money, but only about 25% of what they were originally looking for. Gotta luv that superior IRS work. :P

I went into a store today and bought something (other than food, gas, and dental) for more than $10 for (I believe) the first time this year. Don't fret for me, it was only a new set of sheets for the bed, and with a 30% clearance, and a discount coupon as well. It still came to almost $40. I had no idea how expensive those things had become. Its not that I can't afford it, its just when you don't shop in a store for over half a year, it feels strange doing it again.

... but its all mine.

I had read on a blog where someone was maxing out their 401k, but to maximize it they were hitting the maximum contribution ($15K) by about the middle of March. Whew, that's really putting everything in right away. The idea is that you can put your money into conservative investments early in the year and guarantee an ok return. I think maxing out early only to put the money into conservative funds wastes the effort.

So I was thinking... Next year I should be able to max out my 457 plan (a 401k clone) and have a little money to spare. Should I try this - at least put the money in early to get more time for it to grow? Well I started thinking on how I could make it easier on me. And then it hit me (not too hard). I can let the government help me.

How? Here is my idea (and I have yet to find a problem with this plan). Unlike being self employed, when you work for an employer, all you need to worry about is did I get enough taxes taken out by the end of the year to not have some penalty. Nothing says (that I know of) that the money needs to be taken out evenly the whole year. So why don't I pay myself early, then pay Uncle Sugar later? I'll put into retirement at a rate I will max out the plan at about the half-way point of the year. I can change my tax form to have 2 (or maybe 3) personal deductions for the first half of the year, then 0 deductions for the second half. It wouldn't hurt me much, because I would take net more money home the first half of the year (and I'll be putting it into retirement), then in the second half I won't be putting into retirement, but instead will be catching up on my taxes for the year. In the end the tax man gets what he wants, but I get to use the money earlier. Done right, this could mean an average of 6 more months earning on $15K - depending on the market I could get an aditional $0 to maybe $1.5K in the best of years. OK, I could lose money on this technique, but more years than not it should work in my favor (more up years than down).

OK, any problem with this idea? The only one I can think of is if I were to lose my job mid-year, but if that happened, my taxes would be lower for the year anyway, so it might be a wash.

ADDED: I want to point out that after searching I find that the IRS frowns on this sort of thing. However, there is also the point that if you are not too greedy it'll probably not be an issue (at least what I read on some forums). So as someone said on a TV show once, "let's all be safe out there." My point, be careful and don't use me as any source, I'll disown any knowledge of this. YMMV

...when you have everything running smoothly? That is, once you have cut your wasteful expenses, maximized your earnings on savings, fine tuned other expenses, and so on. That seems to be the point I am at. I can only think of two things I can cut back on, the cell phone (I'm thinking of going to a pre-paid plan), and the car insurance (I really should comparison shop when its time to renew).

I'm not upset, but the past few weeks have been nothing special (OK, I did get a few great deals at yard sales), but I am running out of ideas for making things work better. I guess this is not such a bad thing, I'm saving money, and not having to worry about my finances.

Actually I have one idea, but it will need to wait until the end of the year. I hope to post it here in a few days.

You know 'em. The ones you see on TV, hear on radio, read in the paper. The "expert" on ... well whatever it is they're talking about. Sometimes they're an expert due to their life experiences, sometimes its due to education (quite often dubious, but let's give 'em the benefit of the doubt). Then there is the ones that for the life of me I think they pick off the street. The ones that like to hear themselves talk.

I can hear you thinking, "What got this rant started?" As well you should think that. So what was it? I tend to listen to "Marketplace" on NPR radio each evening (ok, usually 2-3 days each week). They often will have someone read a little one to two minute speech on their thoughts on the economy or sometimes just anything at all. Today they had a .... ehm ... "wonderful" commentary by some woman that thinks she knows how to save. What's her secret? Its to save money on the big ticket items and ignore everything else.

Her advice? You spend $4 on a latte every day? No problem. Brown bagging a lunch? Why bother? Giving your husband a haircut? Boy are you missing the big picture. Is someone telling you to save money this way? Roll your eyes (but only when they're not looking.)

She is the co-founder of some "group". If I start a group, can I be an expert too?

Lastly, I should say that when the time comes up, "Yes - Oh holy Yes" you should pay attention to the big ticket items. You certainly can get a big advantage when the big ticket items come up. But ignoring the rest is stupid, stupid, hello is anyone home? stupid.

Oh, and finally, if anyone from NPR is reading this, I just formed the "High Impact Saving" Group (tm). If you need an expert commentary, don't be shy to ask.

(Oops, almost forgot, here is the link:
http://marketplace.publicradio.org/shows/2006/07/25/PM200607257.html)

PS: Perhaps I shouldn't.... aaaaaaaaah, I can't help myself..... but her group is the "business talent group". Just what exactly is their talent???? (bad blogger, baaaaad blogger)

Actually, as has been the pattern for the past month or more, the yard sales were sparse. But again, I did very well with what I did find.

I picked up some toy train items, and checked them online, I figure I can sell half and get what I paid, and keep the rest for myself So not a super deal, but it works for me.

The real deal came at the very last sale. I was almost back home, and saw a small sign, and wandered about, and found it about a mile from my house. It didn't look like much, just a lot of clothes. Well it turned out the clothese were for a man that had just died, and his measurements were exactly mine. Plus his son in law said he never saw a man with so much clothes, so there was a ton to look through. Most were new, and some with tags still on them. I ended up spending $20 for: a complete business suit, a large leather jacket, a large rain jacket (to put over suit), two other business slacks, and 5 casual business shirts. As I said, all like new (three still with tags on), probably totalled $200 - $300 in the stores for all of it.

No, I don't have any diamonds, nor am I in a position where someone thinks I should buy one (good luck there). If you read my other posts, you can guess my feelings on the things. For those of you that can't, here's a hint (they're hard rocks, thats *ALL* they are!)

So, if this isn't on my mind, or in my life, why bring it up? There is a fun and informative forum dialog about diamonds, and how stupid or smart it is for a man to buy one for a woman. Its at...

Isn't that the catch phrase from some SNL skit? (Obviously I'm not the most up to date in when it comes to the latest "in phrases").

Where was I? Oh yeah... this weekend I got my latest Money magazine. In it is a family that is given money guidance. Lemme tell ya, if you have read some of my previous posts on what I do to save money and think I'm crazy, well this family has got me beat. Its a family of 6, with the couple earning $92,000/year, and yet saving almost $47,000! They do things like: grind their own wheat and make bread, the husband (a surgical resident at the Mayo clinic in Minnesota) commutes to work on a scooter that gets 115 MPG (that puts my 40 MPG VW to shame), have two wood stoves, and buy virtually zero new. He's planning on converting a diesel car he bought to run on vegetable oil.

This family needs money help??? Actually they do give them some good advice. Anyway, after being amazed at how they save money, two things made me wonder just what was going on.

The yearly costs for "medical and dental expenses" is listed at $390. Read that again to make sure you got it right. That is for a year, and I think (though I might be wrong) that includes medical insurance costs! I'm in great shape, have a heavily subsidized insurance by my employer, and my coverage for me (and only me) costs almost $500 / year. I can only guess he gets free medical care where he works. If not... then I must have fallen into a time warp.

The second thing is that the guy doesn't invest his money, keeping it all in a bank account. Apparently he lost half of a mutual fund's value in the "crash". I'm assuming this means the 2000-2002 area. The only way you lost 50% was if you invested heavily (and recklessly if you ask me) in tech stocks, otherwise most funds lost at most 30% (which is still painful). (Oh, btw, I truly did invest zero in tech stocks back in the 90's. I had co-workers tell me what a great deal it was to invest in that junk, and I would just laugh and tell them to wait and see what a great "deal" investing in that would turn out to be. A few came back and told me that I sure was right about what was going to happen.)

All in all, an interesting read, especially if you are into learning how to be "super frugal".

OK - Big warning here, this is *not* a finance entry, so you may want to skip this one.

















You've been warned.




OK, you're still here. Well, as the title says, I am a newly single guy. As I am not a bar person (ok, a sorta quiet professional - go figure), how is a man to meet women? Well I was looking online at the personals from the local paper (Its a large city paper). While I admit I was hopeful I kept my expectations in check as I read. And its a good thing I did.

What did I find? Well the women occassionally sound ok, but often not. I can accept that, I mean if you are expecting perfection, you are going to be lonely, right? But then they often state what they want in a man, and I just shake my head after reading it all. After I read the laundry list of traits they want I realize they want to meet a woman, not a man. A woman that looks like the Marlboro man. Are these women totally clueless? I asked this of a few women I do think highly of, and they agree that what they are expecting to find is crazy.

I wouldn't want to go out with these women - I would want to run the other way ... fast. Ugh, I should be ok and find someone for me, but when you read that ... I can't think of a good word for it.... it sure can get you discouraged.

OK, back to the regularly scheduled finances.

Yep, I love my yard sales. Ok, that may be a lil strong, but I really don't like going to the mall, nor even to the walmart (my last visit there was a month ago). So my one time out and about each week window shopping (so to speak) is Saturday morning.

So what I have noticed? Well the last month has had fewer yard sales, about 50% of what I would see last year. I don't know why this is. However, the quality of the sales I do find is usually better. So I get the same as before, but with less effort - a big plus.

So what are some of my latest finds? Lesee...

A pair of Nike sneakers that I found online for $100, I picked up very nice for $2 (I am *not* a brand freak - but I have to admit they do feel nice)
A Department 56 building to use on my toy train displays (tag on box was $50 - I got for $5 and it looked like it was never out the box)
A golf shirt for $2 (ok, that don't sound like much but it was new with the tags still on it - and the suggested price on the tag was $92! And it is made with "Silk Cotton" - never heard of it, but it sure is smooth)
A set of sheets for a friend's bed ($3 - unopened)
Hand drill - 50 cents
A table fan - $1
A table lamp - $5 (ok, that don't sound great, but it had a brand new high quality shade on it (maybe $10 in a store?), plus it came with a working compact flourescent lamp inside.)
A box of a dozen unused shoe laces - 50 cents (again it doesn't sound that great, but my work shoes needed new laces, and this box had a set that matched mine - one less expense)

OK enough bragging for me

OK, another question from me (LOL). While I have been reading finance blogs the past week, I came across a comment to someone's blog - I don't remember where - and the comment was short and sweet. It just said he had read that when it came to social security benefits, you would come out ahead by taking your benefits as soon as possible, and not waiting to apply for later, and then getting larger benefits.

This got me thinking. I always assumed it would be better to wait and then get larger payments. But as I have learned more about finance the past few months, I realized that getting money early could make a huge difference. (ie. read compound interest!)

Warning - math based analysis below...

So how could I prove this one way or another? I came up with a simplistic spreadsheet to work out the numbers.

Without getting into all of it, here is what I did. I took the payment numbers for retirement at 62, 65, and 70 from my most recent Social Security statement. I assumed simple interest compounded monthly.

OK, but how do I figure out the future worth of money? I decided to assume I had more money than needed, and I would invest all the social security money, just like I do a 401(k) now. And then I assumed a standard rate of return for all years (ok, very simplistic, but this is to get a ball park idea of the comparitive value of the payments). Using this idea, I then put together a spreadsheet that I could change the rate of return, and see at what point would be the break even point, that is ... I would get more from the later larger payments, instead of getting more money earlier.

And what I found surprised me. For the 62 vs. 70 payments, if I used a 4% RoR, the break even point would be 85 years old. In my mind, I figured 85 should be about the break even point. But 4% is supposed to be a very low rate of return! If I upped it to 6% (still on the low side), the break even age was 92! And if I used 8% (what most retirement calculators use as a default RoR)? There was no break even point, the numbers just kept diverging. And when I worked the numbers for age 62 vs. age 65 payments, the break even points were 83, 90, and again never breaking even. I always thought the rational break even age would be around 88 when taking an 8% RoR into account. Wow, was I wrong!

So where did this leave me? Well, its most likely I will want to spend at least some of the money I get when I retire. Also, this analysis doesn't take into account other factors, such as losing benefits if I work from 62 til 65 yeras of age, taxes, lost wages of not working those years, and other things I can't think of right now. Still... I guess this shows if I am laid off or lose my job in that range of age, I should apply for those benefits ASAP. I guess the Social Security people want me to apply for that money as fast as I can.

I arrived home and after dinner looked at the advertisement from Safeway. There was a promotion for spend $10 on 4 twelve-packs of Pepsi, get $10 back with a mail-in rebate, and the same offer from Coke. I live a mile from the store, so I head over, and pick up the needed items. Of course instead of rebate forms available, they are supposed to print out on the coupon sheets that print at the register.

Well of course this register the machine is in such disarray only one side of the prinout works, which makes it useless. OK, Safeway prides themselves on the best customer service, I'm sure they'll see my problem and fix it. At the service desk I get a "sorry, but we can't print these out again. And we have yet to get any forms from either of the distributors. Call the number on the receipt (Customer Service) and they should help."

At home I call the number and get put on infinite hold. After 10 minutes the dog goes beserk as someone is at the door, and of course I hang up the phone. Solicitation, ugh.

After this I decide to hook up my phone next to the computer, and get online and do work while I wait. I call, and get put on hold again. This time 15 minutes go by, then I am abruptly disconnected. Well this is fun. I call again, only to get a message that the service number is now closed for the day.

Hmmmmm, I don't go to Safeway very often, and at this rate, it could be some time til I go there again.

I don't normally discuss my expenses (I usually don't do anything thrilling), but today I think came out very well indeed, so I'll write it down.

I started the day with yard sales:
Edging for around the flower beds: $4 (should be enough to do the whole yard)
A sit on / ride on / holds garden tools rider: $3
New sneakers (Nike): $2
Old toy train track: $1 (I checked for this type online, it would sell for about $25)
Toy lawnmower that blows bubbles for a child I know: $0.50 (its like new)

Then I went and set up a CD at my credit union - 3 years at 6% (pretty good rate)

Took my renter to the airport after this, and he gave me $25 for the ride (I told him he didn't need to but he insisted).

Went to McDs afterward, and with coupons I received 2 weeks ago got a large drink and quarter pounder for $1 total.

Next went to book store and with store credits, buy 2 get one sale, and an additional 15% off coupon, got 3 seasons of TV series (regular price $130, I paid with my credit card $1.76)

Next went to see a movie, paid $0 (free movie coupon online courtesy Johnny Walker liquors)

After movie went to McDs, had more coupons like above, again paid only $1.

When I got home I had my quarterly dividend check in the mail (electric company - was only $23 - but still it was nice).

OK, I'm staying home from here on out today, I don't think I can improve my finances after all of this.

You can tell the refinance market for mortgages has gotten soft, now the mortgage companies are calling you out of the blue. It used to be you would request to refinance a loan, and they were too busy for you.

This came to mind last week when I got a call on my cell phone. I don't give the number out to anyone, so I thought this might be important. I didn't know the number, but I answered anyway. (Highly one-way conversation follows.)

...

A hello, and she started to ask how I was and if I was enjoying the weather. That type of start to a phone call is never a good sign. Did I apply online to refinance my mortgage? Why yes I did, but that was over a year ago when rates were much, much better. You can refinance my loan? Well thats swell, but with rates having gone up, I don't think you can beat the rate I have now.

OK, I pointed out why this wouldn't work up front, now time for me to get the sales pitch. Am I looking to take money out when I refinance? No, not really, I just was looking for a lower rate. No, I wasn't looking to lower my monthly payment either, I can handle the payment I have. (she went back and forth between these two options for a few minutes until she realized I wasn't kidding – or just gave up.) How long have I had the loan? Eight years. How much is left? Perhaps five more. You can refinance my remaining loan balance for 15 years at the rate I have now? Why would I want that? It will lower my monthly payment? Yes, I understand that, but if I do that I will be spending more money over a longer time (not to mention I will probably have to pay a fee to refinance as well). I only wanted to spend less money, not more. Really, if you can't give me a better rate (at least 1%) I'm not interested.

...

Trust me, this is much shorter than the real conversation went. She kept telling me it would save me money and I would pay less. I guess that might be so if I could take the difference in payments and invest them at a higher rate. But do you know of anything that makes, oh say, a guaranteed 10%? (My loan isn't 9%, but if I would do this, I want to make it worth my while). Nope, I don't either. Does having someone tell you that you can pay less now, but pay more over the long haul entice you to refinance?

Don't take this as frustration, I kinda enjoyed the conversation and laughed about it later with a friend.