I figured it would probably cost a few thousand dollars when all was said and done. I was wrong.

By packing and loading a truck himself he’s saving some money, but he’s still having to pay someone to drive that truck long distance. He’s moved long distance before and the “load it yourself” plan was much cheaper then hiring a full-fledged moving company.

However, it’s been quite a while since that last big move and he’s accumulated a lot of stuff over the years. It’s easy to do after living in one spot for a long time. The problem is that hauling all that additional stuff means higher costs.

It’s now going to cost over $5000 to get all that stuff carried long distance in a moving truck.

On top of that, he plans to rent a UHaul to bring the items he doesn’t want to send with the movers, and he’ll haul one of his cars behind that truck. His wife will drive their second car.

When he arrives at his destination he won’t be ready to move in to a permanent residence. He plans on living with his in-laws for at least a few months (probably closer to 6 months) until he and his wife figure out where they want to move, and what they can afford for housing there (the cost of living will be higher in his new city of residence).

But, his in-laws don’t have any room for all of the stuff he’s bringing with him. This means he’ll have to get a storage unit for most of his furniture and belongings until he finds a new home. That’s 6 months worth of storage!

I decided to check some pricing on storage. I think based on the amount of stuff he’s bringing, he’s likely to need a storage unit that will cost around $400/month. Figure a 6 month time frame and you’re looking at about $2400 for storage alone!

There’s also the cost of gas to move across the country. He’s driving a small moving truck in addition to his wife driving a car, so it’s going to cost more in gas. He’ll also be towing a second car behind the truck, which is likely to negatively affect the gas mileage.

A quick Google search on MPG for a moving truck showed about 7-8 MPG. I’ll go with the lower estimate because he’s towing the car. The distance he’s traveling is ~1700 miles, so that’s 1700 Miles/ 7 MPG = ~242 gallons of gas. Ouch! At today’s prices (lets say $3.80 a gallon), he’ll be spending about $920 in gas for the UHaul!

So, just looking at estimates on the major expenses (not including the second car that his wife will be driving, snacks/food and lodging along the way), we’re potentially looking at:

• $5000 for movers
• $1500 to rent his own truck to tow a vehicle and the remainder of his belongings
• $920 for gas (just for the UHaul)
• $2400 for 6 months of storage

That’s a total of nearly $10,000!

To make this move cheaper, I’d try to avoid moving everything.

If you were able to reduce the amount that had to be moved by half, that could potentially remove the need for a secondary truck, reduce the cost of the initial move (let’s say by a third but I’m not sure), and save on storage by being able to rent a smaller unit at the final destination. If you were able to sell a some of it before you left, you could save yourself a bundle AND earn a little extra cash!

Maybe you really like that sofa, but is it really worth the amount of money you’ll have to spend to move it and then store it? What if the new house is smaller due to the higher cost of living and you don’t have room? Could you get a new sofa after moving into the new house for around the cost you would have paid to move and store your old one?

In his case, most of the furniture isn’t new or very expensive. Some of it is sentimental (from a relative who passed), so I understand taking those items. But do you really need everything? The move might be a good chance to clean house.

I know it’s hard to let go of things and “downsize” and I’m concerned about bringing up this particular idea with my brother because I think he might feel defensive. I doubt many people would enjoy hearing that they might be better off financially by selling some of their belongings. I feel it’s still something to, at the very least, consider for a long distance move like theirs.

Melissa and I downsized our belongings considerably when we moved. We’re actually still doing that, reducing even more the clutter and unused stuff in our lives. I hope I can help my brother see things similarly. I know it will give him more peace of mind with the move as well as help them keep more money in their pockets while they make this transition.

Do you know anyone who’s had a similar situation? How did they save money during their long distance move?

Image Sources: Just-Us-3 and The Consumerist

My Pork Adobo is an adaptation from a recipe I found in a diet cookbook. Not only is it good for your wallet, it’s good for you!

This is a great recipe to serve to a mixed group of dieters and non-dieters because everyone will love it and feel satisfied. Serve it with charra beans (I’ll post that recipe soon) or a green salad and you have a nice little meal.

This is a simple combination of lean pork, sweet onions, and spicy tomato sauce all rolled up in a tortilla. How can you go wrong?

Pork Adobo

1-2 teaspoons canola oil
2 large sweet onions, sliced
1 teaspoon sugar
Kosher salt
1/4 cup water
10-15 oz tomato sauce
1 can chipotle peppers in adobo, pressed through strainer, reserve sauce
1-2 lb pork tenderloin
Flour tortillas

Rub:
2 tablespoons light brown sugar
2 teaspoons chili powder
2 teaspoons dried oregano
1 teaspoon cumin
1 teaspoon garlic powder
1 teaspoon cayenne
1/2 teaspoon salt
2 teaspoons cider vinegar

Combine the rub ingredients in a small bowl. Rub the mixture into the pork and let marinade for at least 30 minutes in fridge.

Preheat oven to 450 degrees. Line a roasting pan with foil. Place the pork in the pan and roast until an instant read thermometer inserted into the thickest part of meat reads 155 degrees, about 25 minutes.

While pork is roasting, heat a large skillet over medium low heat. Add the oil then add onions, sugar, salt, and water. Cook, uncovered, stirring occasionally until softened and lightly browned - about 20 minutes. Stir in tomato sauce and the strained adobo sauce and simmer uncovered until flavors blend, about 10-15 minutes. Remove from heat and keep warm.

After you remove the pork from the oven, transfer pork to cutting board and let stand for 10 minutes. Wrap tortillas in foil and place in oven to warm. Thinly slice the pork and stir into the onion mixture. Spoon into tortillas and serve like tacos. Serves 6-8.

Be sure to cook the onions over medium low heat so they become soft and translucent without becoming caramelized. If the onions are too long they can be awkward to eat in the tacos. It’s best to keep the slices bite size. I find that cutting the onion slices into fourths works really well.

Use more Adobo sauce to increase spiciness or less if you prefer a milder flavor. I tend to like my tacos saucy so I use the full 15oz tomato sauce.

Please do not skip the resting period for the pork after you remove it from the oven. It is very important that you let it rest and give the juices time to redistribute within the meat. If you don’t, be warned that you will have a cutting board full of juices and dry meat. (this is a cooking school tip)

The best part is that this meal is even better the next day as leftovers! Just heat up the Pork Adobo and tortillas in the microwave and roll into tacos.

If you want to stretch the meat even further you can add beans to this recipe although the texture suffers a little. Personally, I prefer to cut the slices of meat into quarters and add more onions to increase the yield. Either way the dish is very economical. Enjoy!

We do have a plan for reducing our gas costs outside of the obvious suggestion of driving less.

First, using the Internet we can find the cheapest gas around. Personally I prefer Gas Price Watch. There is a good article with several options for finding cheap gas at Search Engine Watch. The article is a bit dated, but the few links I checked beyond Gas Price Watch still had some useful information.

Even though I like to confirm the information on the Internet, I know the cheapest place in our area already. There is a huge Mr. Car Wash nearby with a ton of pumps that uses cheaper gas prices to pull in more folks. I try to fill up at that location exclusively and judging by the traffic, I’m not the only one.

This location’s strategy relies on high volume and upselling with their car washes and oil changes (both heavily advertised). They even have unique gifts like local jellys and gifts inside the store. I bet they more than make up for the cheaper gas prices through these other services. This isn’t an issue for me as I generally won’t pay to get my car washed - it’s just too expensive - and I always pay at the pump so I avoid all temptation by not even going inside the store.

Another way we’re looking to save money at the pump is through our credit card. We have a Citibank Driver’s Edge card and get 3% back on gas and automotive purchases (as well as on grocery store purchases - our other big expense every month.) We took a while to choose our credit card and now it’s paying off. By transferring our Driver’s Edge rewards points to ThankYou network points, we can get rewards of $50 Shell gift cards.

Originally we wanted to use our reward points to get gift cards to chain restaurants so we could eat out without affecting our budget. These days we eat nearly all of our meals in as Melissa practices new techniques for culinary school. When we do get a chance to go out, we rarely want to go to a chain restaurant but instead want to try new and interesting foods.

Because we haven’t been choosing the same old restaurants (the only restaurants for which we can use our ThankYou reward points), we have a backlog of unspent points that will now be buying us gas. Even just one giftcard will make a noticeable dent in our monthly gasoline purchases. Short of changing to a motorcycle for a commute, I think this will be one of our best bets for helping our budget absorb higher gas prices in the short term.

So what are you doing to save money on your fuel costs? How has it affected your household?

Image Source: A_Siegel

Most likely what you were experiencing was a bout with foodborne illness. No joke.

Why am I talking about foodborne illness on this here blog? Well, as we all know, medical care is expensive. With food prices on the rise more people are cooking at home to help stretch their dollar. Learning how to prevent our home cooked meals from making our families ill can save us valuable funds and sick time.

The CDC estimates that there are about 76 million cases of foodborne illness every year; with 325,000 serious enough to require hospitalization. Even if most of the cases are mild and go away after a few days that’s still a lot of downtime for the American worker.

Think it’s all from shady restaurants? Probably not.

The odds are that many cases of foodborne illness start in our very own kitchens.

At least restaurants (hopefully) have the proper equipment, training, and monitoring to reduce their risk of serving up a plate of foodborne illness. Who is teaching the home cook about proper sanitation? Is anyone performing inspections to make sure you are cooking and storing your food correctly?

I learned some really interesting things in my sanitation class that could actually benefit us home cooks. I’m far from a germ-o-phobe but I’m much more conscious of my practices now. I’ve already changed some of my cooking habits after learning a bit more about how to prevent potential illness.

Reduce your chances of serving a side of salmonella with your chicken pot pie with these tips:

Stop cross contamination. The biggest source of cross contamination is from your hands. Wash your hands (along with your cutting board AND knives/utensils) with soap every time you change foods. Simply wiping your board after cutting up raw chicken isn’t enough. Wash it and dry it with single use paper towels. I like to use a sanitizing spray for my surfaces, too.

Think about how you store your food. Don’t place your raw chicken on the top shelf where juices could drip down and contaminate other food or surfaces. You should always try to place cooked or ready-to-eat foods above and away from raw foods.

The industry stores food (top to bottom):

• Ready To Eat Foods (cooked foods, prepared foods)
• Whole fish (salmon filets, shrimp)
• Whole meats (pork tenderloin, steak)
• Ground meats (ground beef, ground pork)
• Poultry (chicken, turkey)

Cook your food properly. Heat can kill many of the pathogens that cause illness. The only way you can definitively know that your food is cooked to the recommended internal temperature is with a thermometer. You can find a nifty brochure containing the USDA’s temperature guidelines here. Oddly enough, some of the USDA’s current recommendations are higher than what is in my book for pork and ground meat.

Avoid the danger zone. The “danger zone” refers to the temperature range that bacteria multiply rapidly in; currently that temperature range is 41 F to 135 F. Food exposed to this temperature range for 4 hours or longer could accumulate enough bacteria to cause illness.

An example of this time/temperature abuse is leaving your thanksgiving meal out on the table all afternoon. Put away leftovers promptly and keep them below 41 F. If food sits out, especially longer than 4 hours, toss it.

Thaw safely. There’s a reason why you aren’t supposed to set that frozen turkey on the counter to thaw. By the time the center starts to warm up the surface has already been in the bacteria-friendly danger zone for too long. That’s just no good. The best ways to thaw food are:

• In the fridge – put your frozen items in the fridge the night before you want to use it.
• Under cool running water in the sink
• By cooking it – you can take that frozen food and add it directly to the pan as long as you cook it thoroughly (no thawing then storing with this method)
• In the microwave – As long as you cook it immediately this is safe

Wash all your fruits and veggies. Just do it. Many bacteria and viruses can be spread through contaminated soil, water, or equipment that has touched your food. Before using your veggies make sure to thoroughly wash them. I always wait to wash them until immediately before use to lower my chances of food spoilage.

Do you have any home food sanitation advice or concerns?

Image Source: kaibara87

This is Eric’s most requested salmon dish and every time he finishes, he licks his plate clean. No joke.

It really is that tasty, folks.

This Mirin Wasabi glaze is out of this world. It blends sweet with a little tangy and a little hot. It matches really well with the fattiness of the salmon and complements it beautifully.

If you are concerned about the kick of wasabi, there is a trick to controlling the heat. If you want it on the milder side just add your wasabi along with the other sauce ingredients before cooking. Cooking really seems to temper the flavor and heat of wasabi. If you want your wasabi at full strength (like us) whisk it into the sauce after cooking.

Mirin Wasabi Glazed Salmon

3 tablespoons Mirin
1 tablespoons seasoned rice vinegar
1 tablespoons soy sauce
1 tablespoon honey
1 teaspoon fresh ginger, peeled and grated
1-2 teaspoons wasabi paste (more if you like it hot)
1 lb salmon fillet, cut into 4 equal pieces
Kosher salt
Freshly ground black pepper
Olive oil
1/4 cup scallions, thinly sliced

To make the sauce combine the Mirin, rice vinegar, soy sauce, honey, and ginger in a small bowl and whisk. Transfer to small saucepan and bring to a boil. Cook, stirring occasionally, over medium-high heat until the flavors blend and the sauce thickens, about 5 minutes. Remove from heat and whisk in the wasabi paste. Set aside.

Sprinkle the salmon with the salt and the pepper. Set a large nonstick skillet over high heat and add a little olive oil. Add the salmon and cook, turning once, until the fish is browned on the outside and almost opaque in the center, about 3-4 minutes on each side.

Transfer to plates and spoon the sauce over the salmon. Sprinkle with scallions. Serve immediately. Serves 4.

As far as cooking temperatures go, my sanitation guidelines state that fish should be cooked to an internal temperature of 145 F. However, this must not be a hard and fast rule because restaurants often serve salmon medium and tuna rare. Personally, I like to remove my salmon from the heat when the thickest part reaches 132 F and I let carry over cooking take it the rest of the way to 135 F.

I chose farm-raised salmon for this recipe because it was fresh (not previously frozen) and on sale. I couldn’t believe I found it for only $4.99 a pound this week, especially with food prices rising every where. Turns out they overstocked. Yea for me!

I highly recommend finely grating fresh ginger when it’s being used in sauces. This step helps break down the fibers within fresh ginger and creates a better texture. To grate my ginger I use a microplane. They aren’t too expensive and can be used to grate all sorts of things like spices, chocolate, or even hard cheeses.

This time I had to make an educated guess at the cost for the Mirin. I always seem to have it on hand and I forgot to jot down the price at the grocery store as a reference. I decided to estimate high though, just in case.

Wow, a yummy salmon dinner for less than a $1.50 per serving. Not bad. As you can see in the picture I paired it with some plain rice (to soak up the sauce) and a frozen Asian veggie mix. Even with those additions it’s still well under $2.00 a serving. I hope you will try this out and tell me what you think! Enjoy!

Right now I’m taking sanitation and soon I’ll be starting basic cookery classes. Sanitation isn’t the most interesting subject (even though it’s important) so the chef instructor likes to interject stories and commentary along the way.

He stressed the importance of dining out several times a week to gain experience and exposure to new ways of cooking. He wants us to try at least one new restaurant a week and even asks us every morning who went out to dinner. I understand why he gave us that advice; you won’t grow as much as a cook if you stick with cooking at home and never try other people’s versions.

One of the students in the back of the class said he would need to get a second job in order to afford eating out all the time. The chef smiled and remarked that eating out was actually cheaper than cooking at home.

Half the class looked confused (myself included) and he was asked to explain. He said that if you eat cheap fast food, take out, or at hole-in-the-wall dives you can spend less on food than if you cooked that meal for yourself at home. He used a hamburger as an example.

He reasoned that in order to make a hamburger at home he would need to buy more product than he needed. He couldn’t buy just one meat patty, one slice tomato, and one bun. He would need to buy a pound of hamburger, a whole tomato, and a pack of buns, all to get just one hamburger. Those minimum purchases result in excess and makes it more expensive than buying a $1.09 hamburger from a value menu.

This was an intriguing argument and it reminded me of the first time I made lasagna at home. I remember laughing when the bill for the ingredients came out to $30 when I could get a frozen pan of prepared lasagna for only $10. Mine may have tasted a ton better but it certainly wasn’t cheaper.

I see his point and agree that it is valid, assuming several things:

• You are not cooking in bulk or for more than 1-2 people
• You are wanting lots of variety in your meals
• You only want enough for one meal and don’t want leftovers
• You stick with low cost restaurants and cheap meal choices (no fine dining)

I fully agree that if I wanted to make dinners in single portion sizes that there would be waste and higher costs involved to cook at home. My single homemade hamburger would end up costing me over $5. That $1 fast food burger looks pretty good by comparison.

However, if you are cooking for more than 2 people or don’t mind leftovers, I feel cooking at home almost always wins out. I know that my food bill decreased dramatically when we started packing lunches, eating leftovers, and cooking at home almost exclusively.

After class I went up to him and said that although I understood the point he was trying to make I disagreed that eating out was always cheaper. I argued that buying/cooking in bulk, eating leftovers, and forgoing some variety actually made for a cheaper food bill.

If cooking large quantities of food from a planned menu wasn’t cost effective, restaurants wouldn’t be making huge sums of money. Right?

He agreed that economies of scale can be an “equalizer” and under those circumstances eating at home can be cheaper. He didn’t really seem convinced though. He said we would discuss it more towards the end of the course.

I guess I should start detailing real life examples for when we discuss it again. I want to be prepared to show the other side of the story if I get the opportunity.

A lot of the students in my class seem to be pretty young, maybe even fresh out of high school. I would hate to see any of them start picking up fast food everyday thinking it was the most cost-effective option for them.

Image Source: ebruli

This recipe is a spiced up version of ham and bean soup. It brings in a lot of the flavors of my region and is anything but bland. The ham and chipotle chilies add a smoky note to the soup and really compliments the other flavors.

If you can’t find whole chipotles where you live you can also use ground chipotle. Just be careful not to be too heavy handed with the ground stuff. It’s smoked jalapeno and it can get spicy! If you have to leave it out entirely I would consider adding a ham hock to boost up the smoky goodness.

The Manchego cheese and cilantro toppings bring coolness to the soup and offer a wonderful contrast to the highly flavored broth.

Mexican Ham & Bean Soup

1 lb dried pinto beans
10-12 cups chicken broth
2-3 cups onions, chopped
2 cups smoked ham, cubed
3 garlic cloves, minced
2 14.5oz cans diced tomatoes, undrained
2 chipotle chilies
2 tablespoons chili powder
4 teaspoons ground cumin
4 teaspoons oregano
3 bay leaves
Dash cayenne
Kosher salt, to taste
Manchego cheese, finely shredded
Cilantro, chopped

Pick through beans for pebbles and wash thoroughly. Place beans in large dutch oven. Cover with water to 2 inches above beans and bring to a boil. Cook 2 minutes, remove from heat, cover, and let stand 1 hour. Drain.

Combine beans, broth, onions, ham, garlic, and spices in a dutch oven. Bring to a boil. Partially cover, reduce heat to medium low, and simmer for 1 1/2 hours or until beans are tender. Stir in tomatoes and chilies and simmer another 30-45 minutes. Discard the chilies and bay leaves and adjust the seasonings if necessary. Serve hot with cheese and cilantro sprinkled on top. Serves 6-8.

I actually put the chipotles in the soup at the time I mix all the other ingredients. I tend to like my soups spicy and the added time steeping really amps up the heat factor. If you don’t like too much spice be sure to add the chipotles when you add the tomatoes.

The soup is awesome when it is brothy so don’t skim on the liquids. If you can’t find low sodium chicken broth cut it with some water. Otherwise the soup can turn out a little salty after it condenses. Save your salting for after the simmering on this recipe.

I like to buy the prepackaged slice of center cut ham for this recipe. I find it gives just enough and keeps the price low. Make sure to go for smoked ham, or if you want you can also add a ham hock for added smokiness.

I really like Manchego cheese for the topping on this dish. It’s a feisty cheese that can hold it’s own to the spiciness of this soup. I like it so much that I’ll try to bargain for it! If Manchego just isn’t in the budget you can replace it with Monterrey Jack.

I think this is great with a little cheese quesadilla on the side. I used fresh tortilla, Manchego, sautéed onions, and a little garlic powder for mine. Yum!

This soups sure packs a lot of flavor for such a small price tag! You can cut down the cost even further by substituting a cheaper cheese for the Manchego, using your own chicken broth (or buying it in bulk), and getting a deal on the canned tomatoes. Enjoy!

A large amount of debt.

I know what you’re probably thinking. Why on earth would you take on debt in this economy? Let me explain.

One of my biggest dreams has been to go to culinary school. In fact, whenever people would ask me what I’d do if I won the lottery, my first response is always that I’d finally enroll. The other day Eric asked me why I felt I needed to win the lottery to pursue a dream like that. Good question.

I guess I felt it was too expensive, especially since I already have a bachelor’s degree. The tuition for this 15-month culinary school costs more than the tuition for my 4-year degree. It’s been hard for me to justify spending that amount on an associate’s degree, even if it is a dream of mine.

Five years ago, before I met Eric, I applied to the culinary school and got all the way through financing. When I realized I wouldn’t be eligible for any grants because of my BBA and that I’d owe the entire sum in unsubsidized student loans I just couldn’t do it. I was too afraid to be saddled with that kind of debt and it’s been one of those “what ifs” in my life ever since. You know, the kind that make you sigh out loud when ever you think about it.

So what has changed that makes me think I can do it now?

We are in a much better place financially. Eric and I have learned how to budget and have reached several financial goals together (paying off our cars, buying a new home, saving for an emergency fund). We feel that as a team we can handle taking on “good debt” in order to fulfill a dream and enrich our family.

I have the emotional support now. The first time I looked into culinary school I was on my own. My parents didn’t think it was the greatest idea and I didn’t know if such a drastic career change was the right thing for me. Now, everyone is behind the idea and supportive my decision to go. Especially Eric. I think Eric is more excited about me going to culinary school than I am. It has been a long time since I’ve been in school and I’m a little scared. It’s natural to be nervous, though, and I’m sure it will pass.

With Eric’s encouragement and reassurance (not to mention the fresh dose of confidence from my recent catering gig) I took a chance and enrolled. I’m going through with it this time.

I start next week and my estimated graduation date is June 2009. Tonight is orientation and I will be making the first tuition payment. It marks the beginning of the new debt. More on the financials soon…

Why not just save up the money and go when you can pay in cash?

Sure, I guess I could have done that. If we saved $1,000 a month (lofty goal) I would be able to enroll in 3 years, assuming no increase in tuition (yeah right). The tuition has risen about $5,000 since I first applied in 2003.

Unfortunately, I think if I wait I will end up missing out. We both have a sense of “it’s now or never” and that I might not have as good of an opportunity in the future.

Right now, we don’t have kids or any other debt (besides a mortgage). That means now is the right time. In a few years we might want children and with that comes a big change in priorities. Financing additional school for us would be unlikely to be high on that list.

We also think now is the time because of the sour economy. I’ve been thinking of starting a small catering company but with a possible recession starting a small business in a “luxury” industry might not be the best idea. I might as well ride out the bear economy with schooling and start the business when there is enough discretionary spending power out there to support it.

I still can’t believe I’m actually going to culinary school. It’s been a dream for so long it doesn’t seem real. No more “what if’s”.

I have chosen the early morning schedule so most of my classes will be held before noon. After I complete my classroom credits I’ll be working in the onsite fine dining restaurant followed by a few months of a real-world “externship”.

Eric says he can’t wait for me to start the hands-on labwork so he can benefit from all the new techniques I’ll be learning. He says he fully supports me practicing a lot at home. I think I just figured out why he is so excited…

Image Source: mccheek

Normally I’d have my taxes done by now but this year is different.

In the old house I had a desk and an office area where I kept most of our recent paperwork organized. As we approached the move, I let my paperwork build up and bills ended up in “to be filed” grocery bags.

All that paperwork (in addition to the older stuff) ended up in multiple boxes, which then ended up in multiple rooms of the new house. I’m finding myself pretty disorganized when it comes to paperwork right now and with taxes due, I have to kick it into high gear.

To make matters worse, all the old paperwork (2005 and earlier) that hadn’t been filed properly to begin with got thrown the mix. I’ve been avoiding that mess since before we got married but it appears I can avoid it no longer.

My original plan of attack involved organizing only 2008 and 2007 paperwork then putting the older paperwork in bags separated by year. I figured the only reason I’d have to access the old stuff would be for an audit or to dispute a bill. Why waste my time organizing ancient bills for something as unlikely as an audit? If it happens I’ll just sort through the bags then.

On the other hand, why not just file that old paperwork into general categories (utilities, credit cards) while I’m already sorting it? It’s going to have to pass through my hands to be examined for date anyway; I might as well put it in some sort of order, right?

Good thinking, but that could lead to a slippery slope where I find myself wasting time and resources on paperwork that I’ll never need to look at again.

So, my plan is this:

I will properly file the 2007 and 2008 paperwork in the file cabinet. Those years are the most relevant and I need the 2007s accessible right now for taxes.

I will “lightly” organize the paperwork from 2006 and 2005. I bought accordion-style organizer boxes for the task. The boxes already have general categories labeled on the dividers so it should be easy to lightly organize those years as I sort them. I can also store the paperwork in those boxes for easy access.

Paperwork from 2001-2004 will be placed into bags labeled with the year. I didn’t want to give up on those years but I have to draw the line somewhere or I’ll be at this for weeks. It’s like I’m declaring paperwork bankruptcy for those years. I think the best plan at this point is to make a clean start going forward.

I have also made a promise that, from now on, all new paperwork will be organized into folders in the file cabinet, then stored in file boxes until shredder time.

I know paperwork isn’t fun but its life. Now I’m off to tackle some serious filing.

Do you have a method for organizing old paperwork? How far back to do you keep records?

Image Source: Librarian Avenger

However, those little gift cards aren’t without their faults.

You would think gift cards can be used just like cash, and for the most part they can. But unlike actual cash, gift cards can lose their monetary amount over time or even immediately in certain situations.

Eric and I found a gift card from the wedding that we forgot to use. Stuck in the depths his wallet was an American Express gift card that was worth $100. But when the cashier ran the card it only had $94 on it.

$6 had magically disappeared in the 15 months we had the card in our possession. How could that be? How could this gift of “cash” devalue?

Fees, starting on the 366th day after the card was purchased for us, ate into the amount of the gift card.

If you don’t spend the entire balance within a year, it can lose a set amount (often $2 or $3 a month) until the balance is $0. They call these penalties “maintenance” or “dormancy” fees. You tend to see them more on “open loop” cards (cards that can be used anywhere that credit card is accepted, like Visa or Mastercard gift cards) but they can also be found on some store-specific gift cards.

Some cards can even expire, meaning you can lose the entire value of the card if you don’t use it by a certain time. Many retailers have dropped their expiration date policies to be more customer-friendly, but not all of them have.

Many states have passed laws preventing gift cards from expiring but it usually only applies to local retailers rather than national chains. I guess if your gift card has an expiration date and you fail to use it in time, that well intentioned gift turns into a donation to that store on your behalf. Lovely.

What if you have gift cards from a company that runs into financial trouble? Unfortunately, they have the potential to become worthless. That is exactly what happened to people holding Sharper Image gift cards recently.

CNN picked up on this story from the Associated Press:

The Sharper Image announced late last month that it was suspending the acceptance of gift cards, at least temporarily. It urged shoppers to check the company Web site later this month for an update. That is typical of businesses that reorganize under Chapter 11 bankruptcy, which treats gift cards as a loan to the company, not as cash.

Refusing to honor gift cards is a public relations nightmare, because people will feel like their money was stolen from them, and rightfully so. Both the buyers and recipients of gift cards are hurt when the cards become worthless pieces of plastic. I can’t imagine any company that refuses to honor gift cards would ever regain consumer confidence, and without a customer base the company has no real future.

According to the article, consumers should never assume that if a company files for bankruptcy but continues to do business that they have to keep taking the gifts cards. That’s scary, especially in our economic climate, where the number of retail bankruptcies this year is expected to reach levels not seen since the 1991 recession.

Overall, I still think gift cards are good gifts as long as everyone is aware of the fine print and potential risks associated with them.

Recommendations for gift card buyers:

• Before you purchase a gift card make sure to look at the rules. Will the card lose its value over time or does it expire? Consider buying a gift card directly from a retailer (i.e. Target or Best Buy) as opposed to a card that can be used in multiple stores (like AmEx or mall gift cards) to help avoid potential fees and expiration dates.
• Only purchase gift cards from places that you feel confident will be around for a while. If the business appears to be having trouble it might not be there by the time the recipient is ready to redeem the gift. Small retailers (like local salons or restaurants) pose the highest risk to gift card users because they are more vulnerable to bankruptcy in down economies. Stick to the larger, established retailers for the best chance of long term stability and gift card solvency.

Recommendations for gift card recipients:

• Use the gift card as soon as possible. Don’t give the card time to lose its value or risk having the company disappear.
• Read the back of the card and familiarize yourself with the rules, especially if you don’t want to use the gift card immediately. Know how the card the works so you can avoid any loss of value through fees or expiration dates.
• If you have a gift card that belongs to a company that is no longer accepting them, see if their competitors will give you a discount for it. Some stores look at it as a way to bring in customers from their competition and will accept the worthless cards for a discount on their products.
• If the store closes its doors, don’t automatically assume that you can’t redeem the gift card. Do they have an online store? Are there still stores open in nearby areas? Failed mom-and-pop businesses are least likely to be able to honor the cards but larger retail stores might still be able to down the line. It never hurts to call and ask.

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