The Single Saver

Tips for Singles: Finding The Right Roommate

2013-05-14T14:04:00.001-04:00

Finding the Right Roommate: What to Look for

Choosing a roommate doesn’t have to be overwhelming. In fact, the interview process can actually be a very enlightening experience if you do it right. This article will look at ways to interview a potential roommate and how to find someone these can actually live with!

Take a Personality Inventory

You may not realize it, but your experiences and social lifestyle may be completely new and novel to someone else. It’s a good idea to take your own personality inventory and make a list of the things that you enjoy, as well as the little things that aggravate you. It can be stuff as small as dirty dishes in the sink or as large as partying at all hours of the night. If your lifestyles are incompatible with each other, this personality inventory will help make your needs clear up front and help both you and your potential roommate determine if you are suitable to be housemates with each other.

Interviewing Roommates

When interviewing potential roommates, you can easily gauge their personality and reactions to different questions to help you determine if you can live with each other. For example, if you have a unique lifestyle such as gay, lesbian, or transgendered, you may find it difficult to interview someone who isn’t exactly accepting or tolerant of your choice. One such website which can help with this is Pride Roommates, which specializes in matching like-minded individuals who share the same lifestyle and sexual orientation.

One of the most important things that you can do when interviewing roommates is to lay out all your expectations up front. No one likes to find out later that there are unexpected costs, curfews, or other restrictions on how they can live their life as a result of renting together. Be clear about how much rent is due and plan, and other expectations such as dividing chores, care and feeding of pets, and so on. This will make the process go much more smoothly for both of you!

Have an Open Mind

Remember that no one is exactly like you, nor should you have a roommate whose interests completely match your own. By finding someone who enjoys different things, you may learn and share new experiences that you otherwise may never have known about. No matter which roommate you choose, it’s important to have an open mind and be accepting of diverse experiences, upbringings, and lifestyles that may be different than your own. In doing so, you may learn new things about yourself that you never realized! Good luck!

70 Things That Can and Will Go Wrong In A Disaster

2013-04-30T10:47:00.003-04:00

This article is part two in my prepping series. You can read part one here: Important Documents - Are You Prepared?

So often when I mention being "prepared" to friends or family their eyes glaze over. Thanks to shows like Doomsday Preppers, most folks associate prepping as something only loony people do - people who fear a government shutdown, world-wide plague, or zombie attack! But the fact remains, that it is the little everyday disasters that we ought to all be concerned about. Things like tornadoes, earthquakes, floods, and hurricanes can literally shut down a town for days or weeks. If this happen near you, would you be prepared?

I recently came across a very well written article (originally written by a police officer) that lists out 70 things that can (and will) go wrong in a disaster. It was eye opening.

Please take a moment to read the article, and then think about what you would do if thrown into any of the situations mentioned in the article.

Are you prepared?

I'm missing that 'new car smell'!

2013-04-22T10:47:00.000-04:00

I’ve written before about how much I love my car. It is a 2007 Volvo V70 (wagon) – safe, practical, and comfortable to drive! Recently I hit the 100K mile mark, yet it seems like just yesterday we met for the first time. I’ve never regretted buying this car. I love it!

But lately I have started to see it showing signs of its age. There is a small tear in part of the fabric on the wall. In another spot, the fabric seems to be coming loose. I’ve had a cracked windshield for years now. Something keeps tripping the fuse for the cigarette lighters/cell phone chargers… and while those fuses are cheap to buy, getting to them to replace them is a huge pain in the neck. I know I am long past due for a new battery. I notice the leather seats are starting to look worn in a couple spots. And perhaps the biggest issue of all, something is leaking from my car and leaving deposits on my garage floor. I am having that looked at soon.

For the most part, these issues are cosmetic and as for the rest, they should be fixable. So unless the leak turns out to be something major, I don’t think I am ready to say goodbye to my old friend just yet. But it has made me realize that I ought to study up on my options so that when the time comes I can make an informed decision.

I’ve started researching cars at ISeeCars.com. I’ll likely be sticking with a Volvo next time I get a new car (have I mentioned how much I have loved all my Volvos?), but I am still keeping my options open in case something better comes along! Besides the obvious features – comfort, safety, and price – I will also be looking at things such as cargo room and miles per gallon when I make my ultimate buying decision. But hopefully I won’t be making that decision for a long time yet!

What features do you look for in cars? At one point do cosmetic issues cause you to succumb to the lure of a shiny new car? And do you have any predictions of how long I will hold out before I convince myself I need something new? J

This bites!

2013-04-09T10:03:00.003-04:00

Sometimes disaster strikes when we least expect it.

Last week, I was bit on the lip by a friend's dog. I bent down to give her a hug. She reached up and bit me. I must have spooked her. This is my own fault... this dog has a track record of being nervous and has bit before. Somehow I assumed it would never happen to me. WRONG!

I will spare you all the pictures, but the rend result is my lip was split clear open through to both sides. A trip to the ER was in order.

Here we come to LESSON #1 - Know which ERs are the most friendly towards your health insurance.

I got lucky here. When an emergency strikes, you don't have time to do research to see which ERs and urgent care facilities are preferred by your insurance (preferred normally means they reimburse more of the costs with less of a hassle). Some insurance is more lenient than others in an emergency situation, of course, but there is still follow-up visits to worry about. Going to an 'out of network' medical facility can lead to hassles down the road.

In my case, I had no clue where to go. I am healthy and my regular doctor can take care of most things. Being that it was after 9pm, my regular doctor was not an option here. Being that my lip was hanging open, we threw caution to the wind and drove to the nearest ER. At that point, I needed medical care more than I cared to potentially save money and hassle from the insurance company. Fortunately, that ER had a contract with my insurance so the payment process should go fairly smoothly. I got lucky!

LESSON #2 - Getting injured is expensive! (Not just medical bills, either.)

I am not just talking about medical bills here. For many days after the incident I was on some heavy pain medicines. I did not feel like doing ANYTHING. Cooking was out of the questions. So my friend (who was here visiting from out of town) got me a lot of take-out. Granted, my very guilty feeling friend paid for the meals and even went to pick them up for me, but it still was pricey. In the last five days I have spent more on take-out meals than I have on my entire month's grocery budget. But since the first few days had me almost completely incapacitated, it was either take-out or not eat at all. I also have had extra expenses with medications (OTC and prescription), follow-up appointments, and more take-out food (!). My friend has offered to pay for everything, but I think I will save that for the big medical bills. After all, I do not hold my friend responsible for the dog getting spooked (by me).

The lesson here is to always leave a little extra in your budget for emergency spending... sometimes you just need to pamper yourself with a take-out meal or some Oxycodine! At these moments, you do not want to be worried about your budget.

LESSON #3 - I hate pain!

Okay, that lesson has nothing to do with money and isn't exactly helpful to you. I just felt the need to whine a little. My lip hurts! It has been 5 days and it still hurts. I have cut back on the Oxycodine since I am back at work and my employer isn't real fond of us napping on the job (go figure). I know mouth injuries have a lot of pain associated with them, and I know they also heal quickly, but that doesn't stop m from really not liking this pain. Rant over.

Important Documents - Are you prepared?

2013-03-26T12:47:00.004-04:00

Important Documents - Are you prepared?

"Prepping" seems to be all the rage these days. Rather you are a Doomsday Prepper, or just an informed citizen who likes to be prepared for reasonable worst-case scenarios, there are things we should all be doing to protect ourselves. And so, I am going to start a series of things we should all be doing to prep for disaster.

Today's topic is IMPORTANT DOCUMENTS.
Consider the following:

Scenario 1: You are at work. A bad thunderstorm rolls in. Lightning strikes your house and it quickly burns to the ground. What vital documents have you lost and how easy are they to replace? What information do you know regarding your insurance coverage? Could you easily give your insurance company an inventory of your home's possessions? Do you have copies of priceless old family photos?

Scenario 2: You spent a fun-filled afternoon at the county fair. Driving home, you decide to run through a fast food drive-through to pick up dinner. That is when you discover your wallet is gone! Did you drop it at the fairgrounds? Were you pick-pocketed? You suspect the latter. Do you know what credit cards/debit cards are in your wallet, their account numbers, and how to quickly cancel them before a bad guy can access your accounts?

Scenario 3: The shit has hit the fan!!!! Due to massive unemployment and dissatisfaction with the government, civil unrest has broken out in your community. You are suddenly forced to flee the area quickly with just a few minutes to grab what you can and throw it into your car. You seek refuge in a bordering country. Do you have proper identification with you? Do you have all you need to rebuild your life?

Chances are, at some point you have thought about at least one of the above scenarios. Are you prepared?

When disaster strikes, having copies of important documents will make the recovery process much easier. An easy solution is to digitize all important documents and keep them in a safe off-site location on a portable USB drive.

Here are some examples of important documents:
* birth certificate
* social security card
* passport
* driver's license
* marriage license
* concealed carry permit
* house title
* car title
* insurance policies
* investment records
* digital photos from around your house to help with inventory (I update mine every 6 months or so)
* digital copies of priceless family photos (not life or death, but nice to have a back-up in case the originals are destroyed)
* front and back of credit cards
* list of important phone numbers (banks, insurance agents, family, lawyer, doctors)

These documents can all be saved/scanned into digital files and stored on a USB drive. You can - and should! - password protect your USB drive to protect it should it fall into the wrong hands.

The USB drive should not be kept with the documents themselves (sort of defeats the purpose). Instead, keep it in a secure off-site location such as with a trusted family member, in a safe deposit box, at your office, or in a bug out bag located in your vehicle. Ideally, having this information at two off-site locations is best (remember, 'one is none and two is one.').

Every six months or so you should double-check your files to see if anything has changed, or if you need to add any new documents. A good rule of thumb is to do this at the same time you change the batteries in your smoke alarm.

Want to get started? Here is a great little portable USB drive that I recommend:
Verbatim TUFF 'N' TINY 16 GB USB 2.0 Flash Drive - this little USB is small enough to hang on your key chain without adding bulk or weight, and it is very durable (resistant to water, dust, and static charges). It is also very nicely priced! It is also 16GB, which should easily hold all that you will need. And as it is black, it will not be instantly noticeable, which is good as you don't want it to become a target for thieves.

How prepared are you should your important documents become lost or destroyed? What other documents do you include in your preparedness planning that I have not mentioned?

How I lost 10 pounds!

2013-03-15T10:08:00.003-04:00

Earlier this year I set a goal to lose 19 pounds in 2013, which would put me at a weight of just under 120 pounds. My lack of willpower (why must chocolate be so tasty?) finally caught up with me over the holidays last year, and I knew I had to make my weight a top priority or else I would lose control of it completely.

I am pleased to report that as of last week I have lost 10 pounds. I am now just over halfway to my goal! And I thought I would share how I did it. The journey started out sort of rough, but now things are going much better.

The beginning...
I started out in January by following a Weight Watchers-like plan. Between friends who are in the program and stuff I have found on the web, I was able to follow the Weight Watchers plan for free without having to buy a membership. I've done it before to drop a couple pounds so I thought I would give it shot this time. For exercise, I used my Wii Fit Plus nearly every day doing mainly the jogging, step aerobics, kick boxing, cycling, and hoola hoop activities. I dropped 4 pounds FAST, but then I plateaued. And on top of that, I was starving and exhausted (I have later learned that the starving and exhaustion was due to not getting enough calories, but more on that in a bit....).

I wasn't happy, and knew something had to change or else I was going to give up. Weight Watchers was not fitting into my life. That's when I found "My Fitness Pal."

My Fitness Pal...
Late in January I signed up for a free account on myfitnesspal.com. It is a program that allows you to track your calories consumed and calories burned through exercise. In addition, they have a very active online community. It was through this online community that I learned a few useful things.

First of all, your body needs a certain number of calories just to function. This is your BMR... which is basically the number of calories your body needs to function if you are in a coma. Eating below this number will mess up your metabolism and make weight loss (after an initial drop) very difficult. As weight watchers was having me eat less calories than my BMR, I now understood why I dropped the initial weight but had then stalled. I also understand why I was so exhausted. My body simply wasn't getting enough energy to fully function.

Secondly, there is another important number we need to know - TDEE. TDEE is the number of calories your body actually uses in a day. Factors such as weight, age, body fat percentage, and activity level go into determining your TDEE. Eating more calories than your TDEE results in weight gain, eating less results in weight loss. And eating less calories than your BMR causes your body to panic and stall any weight loss. Pretty simple, eh?

Switching to this new way of thinking meant that I needed to up my calorie intake by 300-400 calories a day. Everything I had been taught over the years told me that this is a bad idea, but the science behind it made sense so I decided I would try it out for a week or two. To my amazement, I didn't gain any weight and soon I was actually losing again! And best of all, I was no longer hungry!

Not being hungry is a BIG plus for me. I like food, and I don't like being restricted to what I can or can't eat. I also like the fact that this approach has you losing weight at a safe and sustainable pace of around a pound a week, and that will decrease the closer I get to my goal weight.

Another big plus is that I have been able to cut my exercising back to 3-4 times a week. I now mix up what I do to keep things interesting (Wii Fit Plus, Leslie Sansone DVDs, treadmill, and elliptical).

Why I am sharing....
I am sharing this info here - on a personal finance blog - because this weight loss journey has been completely FREE! No need to join an expensive program. No need to buy expensive food. All it required was some basic knowledge and the ability to track my calories.

If I can do it, so can you! And did I mention, I did it for FREE?

How are your health and fitness goals coming along for 2013? What approaches do you use to lose weight?

Debt Envy

2013-03-04T10:42:00.004-05:00

The other day I read with great awe and envy as a fellow blogger told a story of how she was able to use cheap payday loans to meet her long-term financial needs. While many people are nervous about such loans, this particular writer explained that she used a payday loan to get cash at a time when she needed it. She used that money to pay off some other debts before their deadline, hence saving a bundle in fees (overdraft fees, late fees, and increased interest rates). Prior to making the decision so weighed the pros and cons and expenses involved and made a wise and informed decision. I admit I actually felt a little jealous that this writer was able to take a problem, think outside of the box to find a solution, and come out of the deal a few bucks richer than she would have been otherwise. I envied her situation where she could tackle a problem in a creative way. Yep... I was actually a little jealous.

I have been unmotivated to blog much lately here at The Single Saver. In some ways I have felt like a hypocrite and just couldn't bring myself to write about my life. This blog started out as a site to share tips for living frugally. I lived frugally so I could pay off my mortgage, pay off my car, and put a healthy amount into my savings. Big goals indeed, but I always work best when I am aiming for something big.

My savings over the last decade or so have multiplied faster than I could have ever imagined considering I have a pretty average salary. Making extra payments helped me to pay off my car early (and save for a new car), cut my mortgage in half (plus some) in just four years, and I was making good contributions to my retirement and investment accounts. My frugal tricks were working to help me set my goals and I felt like I could offer good advice to others.

Then a close relative passed away and I was giving a generous inheritance. With the inheritance I paid off the rest of my mortgage, bought my first investment property, and beefed up my investments and retirement accounts even more. And while my frugal ways certainly have been a big contributor to my success, I would be amiss to not acknowledge that I also have had some lucky breaks along the way (parents who taught me about money management at an early age, a good education, and the inheritance... Just to name a few).

In short, I am now financially comfortable and while I still live by my frugal ways, it is by choice and not by necessity. So sometimes I get lazy and do things in a less frugal way... And then I feel like a failure as a financial blogger who offers tips for living frugal!!!

DEBT ENVY

I think I am suffering from "debt envy." I read other financial bloggers with big debts and follow along in their journey as they formulate plans to get rid of the debt. I am excited for their journey and sad that I don't have a similar goal to plan for and work towards. I truly get excited when a blogger updates their debt/savings numbers and has gotten $100 closer to their goal. I've actually cried with happiness as I have read about how one blogger managed to hit their goals during a particularly difficult month. I live for reading about these successes... But I also get jealous that I am no longer part of that "lifestyle."

Don't get me wrong - being debt-free is awesome, but there is also a certain thrill in the journey to get there. When the journey ends, you feel let down. (Sort of like how sometimes the 'chase' of getting a special boy/girl to like you is better than the resulting relationship!)

I have realized that while I don't miss having debt, I do miss having a purpose (which for so many years was to reduce debt and increase savings). I still hope to increase savings, of course, but it isn't as urgent of a situation as it was in the past. And so, I need to find a new big goal to accomplish. More on that in an upcoming post.

Am I insane here to have "debt envy." Has anyone else hit a major goal, only to be disappointed that the journey was then finished? Is the chase really better than the catch?

Another Way To Loose Weight For Free

2013-01-29T11:31:00.003-05:00

Last month I wrote about 6 ways you can loose weight for free. I've been utilizing these techniques myself, in my attempt to lose 19 pounds in 2013. So far I am hovering between 4-5 pounds lost, and am really hoping I can push it up to at least 5 pounds in the next couple days.

My exercise routine has consisted of my doing an average of 30 minutes a day on my Wii Fit Plus. Of course, if you don't have a Wii or Wii Fit this wouldn't be free for you, but as I already had both of these items it was silly not to utilize them. The Wii Fit was great for getting my stamina up. I started out barely able to jog for 10 minutes, and now I can do 30 minutes of activity without much difficulty.

The first few pounds came off quickly, but now I feel like I have stalled. Now I realize that is normal, plus it is healthy to lose weight gradually as opposed to in large amounts all at once. But it is still frustrating.

Not wanting to get bored with my workout routine, and knowing I needed to step-up the intensity a little to keep dropping the pounds, I went to the 'net in search of options. I had some limitations. 1.) I didn't want to spend any money (I am cheap, remember?), 2.) My coordination isn't the best, nor is my upper body strength, so the exercises couldn't involve having to get in odd positions or pushing/pulling myself up, 3.) I live in Ohio and it is winter (i.e., cold) so any exercise had to take place indoors.

Here's what I found... work out videos on You Tube! Specifically, this 'Walk Away The Pounds' workout by Leslie Sansome.

This is a good 30 minute workout, which is said to equal walking two miles. She also has a 1 mile and a 3 mile version, plus there are a multitude of other Walk Away The Pounds videos posted, too. I like the Walk Away The Pounds workout because you get a GREAT aerobic workout that isn't too strenuous on your joints or muscles. But trust me, you will be sweating before it is over!

With You Tube, I can just hook my laptop up to my TV and I suddenly have thousands of free workout videos at my fingertips. No need to buy dozens DVDs or pay for an expensive trainer! You can find any video that matches your interests and fitness abilities.

Don't you just love technology? How have you used the internet to meet your weight loss goals?

Stories From The Great Depression

2013-01-25T11:41:00.004-05:00

The Ohio Department of Aging solicited stories about the Great Depression from Ohioans who lived through it. More than 300 individuals sent in their stories. These stories are a fascinating documentation of a way of life that most of us, thankfully, will never fully comprehend. A must read if you are interested in history, learning extreme ways to save money, or just want a little insight into how our ancestors lived.

Below are links to the 4 volumes of stories.
* Volume 1
* Volume 2
* Volume 3
* Volume 4

Each volume contains excerpts from participants in which they discuss topics such as food, education, resourcefulness, money, entertainment, family, values, and more.

What aspect of the Great Depression do you find most interesting. Do you think we will ever see our economy return to a similar state within our lifetime?

Reduce My Electric Bill - January Results

2013-01-21T12:02:00.004-05:00

One of my goals for 2013 is to reduce my electric usage and, ultimately, my electric bill. How did I do for January? Read below to find out.

January Results (Actually, mid-December through mid-January.)
I used less electricity in January 2013 than in January 2012. Woot! Actually, I used roughly a 3rd less electricity, which i consider a big WIN on my part.

Steps I took last month to reduce the amount of electricity I used:
1.) All the usual things I had been doing since starting the challenge... lights off, timers on outside lights, new energy efficient sump pump, different outdoor Christmas decorations.

2.) I've been using my Wii Fit a lot to loose some weight, so I have been careful to turn the Wii off when I am done using it. This sounds little, but before I used to leave it on and it does drain power.

3.) My TV in my living room died on New Year's Eve (damn TV). This is the main TV in my house (I also have a small one in my bedroom which I barely use), and also the one that houses my Wii, so it had to be replaced. I specifically bought one that was very energy efficient and Energy Star certified. I actually could have saved about $100 by buying a similar one that wasn't Energy Star certified, but the difference in energy costs would have ate away at that $100 savings in just two years time.

So far so good with my energy savings. The next two months will be pretty cold around here. The real test will come as it gets warmer out and I am forced to turn to fans and air conditioning for comfort.

What do you do to keep your energy bills low?

Small House Documentary

2013-01-17T14:31:00.002-05:00

While exploring You Tube earlier this week, I stumbled upon this absolutely wonderful little documentary about small houses. Some of these dwellings are quite airy and unique! They aren't all the Tumbleweed homes and converted shipping containers you so commonly hear about when small homes are discussed.

If you are looking to cut expenses and save money, live off the grid, or just simplify your life, a small house might just be for you. These are especially ideal for singles, who might not have the space and privacy concerns that a large family faces.

Could you ever live in one of the homes shown in this video? My featured home in this video is the "tool shed" sized house. Which one was your favorite?

Secrets About The Internet and Money

2013-01-15T11:09:00.003-05:00

The internet is a wild and wonderful place, a virtual web of communities and information galore! It is also a very predatory and dangerous place if you do not use some common sense in your dealing with others online.

I belong to a message board community - mainly as a lurker - that is going through some tough times this week. In a nutshell, the owner of the site formed an LLC and incorporated the site. In addition, she had been asking for donations to help make the site run and make improvements. The site also displayed ads. She always said she took a small payment from the site as it was her full time job, so no secrets there. But, the SHTF when some of the administrators in the group started investigating the costs, the income, the LLC, and so on. They discovered operating costs were lower than they had been told, that the owner was collecting the ad money for herself and using the donations for site improvements, and many took exception to the LLC. While I can see their concerns on some levels, I also don't understand how anyone within the community thinks they have a right to tell a site owner how they can run their site or how much they can pay themselves.

Turns out there are many naive people out in internet land who don't understand how things are run. So as a community service I am going to reveal some badly kept secrets here.

1.) Secret #1 - Using a pseudonym does not protect yourself from litigation. Many people think that if they post under a clever pseudonym they can say and do whatever they want online and not be held accountable. That is not true. With tracking, IP addresses, etc., anyone can be found. As the owner of a very popular discussion forum with controversial topics, it was vital for the owner to protect herself legally. The LLC was 100% the right thing to do. Yes, it does turn the "community" into a business, but that is just the way of life.

2.) Secret #2 - Every webpage is owned by someone. In the example I cite above, the group was appalled that someone would dare to try to take ownership of "their community." But the fact remains that someone always did own that community. Someone bought the URL. Someone used their Google Adsense account to place ads on the site. Someone set up the technical aspects of it. Someone put their neck out on the line from a legal aspect. Period. Too many people get vested in online discussion groups and suddenly decide they have an ownership stake in it. Guess what... they don't! Every website is owned by someone (or by a company or organization) and, like it or not, they can make the rules. If the members of the group don't like the rules, they can leave and stark a competing site. Free enterprise, baby!

3.) Secret #3 - If you see ads on a site, it is making money. Now don't get me wrong, some sites make more money than others. At the Single Saver I limit my advertising to just a few private ads a month (at the most) plus the little picture ads you see in each post. My site is small and my ad income is very small but that is fine with me... my goal with the site is to cover my expenses and so far I have been able to do that. But, on the same token, a big site with many hit and page views can easily make thousands a month (and yes, I am a little envious of those sites)! In the example above, the group discovered that the owner made roughly $12,000 in over 14 months from their advertising. The owner paid herself that money, which came to about $850 a month (before taxes). The group was outraged that she made so much money, but if you ask me $850 a month (before taxes) isn't much to live on. Plus, it was her site and she had every right to take as much or as little of the procedes as she wishes in my opinion. Sadly, people seemed genuinely shocked that the site owner was making money off of the ads - so for those who don't already know, please understand that if a site is displaying ads, the owner is making money. It might be $0.10 a day or $100 a day, but money is being made. We blog owners don't put ads up for their pretty looks! :)

4.) Secret #4 - Donate at your own risk. A lot of bloggers have a "donate here" button on their site. It isn't something I am fond of, but to each his own. There is nothing wrong with donating if you feel the content has enriched your life in some way. After all, the blogger is providing content to you free of charge. Just know that when you donate to a for-profit website, that money is not tax deductible to you. Even if the site owner claims the money is going to charity, you still can not claim it as a charitable deduction. And even if the site owner claims that money is going to a charity, you have no way to verify that their story is true. The internet is full of liars and scammers. That donation could easily be funding their next ski trip or paying their mortgage that month. So donate at your own risk, knowing the rewards and the risks. In the example I have been citing, the members of the group were mad that the site owner kept saying the site needed donations in order to keep making the necessary improvements, all the while she was collecting ad revenue and pocketing it. While I understand their point there, they also need to remember that they got a free service that they enjoyed, they were not forced to donate, and the owner did indeed use the donations to improve the site so they got their money's worth. If they are to be mad at anyone, they should be mad at themselves for being so trusting as to not look at the big picture (ads, requests, etc.) before donating. The site is ranked around 17,000 in the entire United States and has thousands of members, so it should have been obvious that the ad revenue should have been pretty high and that the site wasn't about to crumble into bankruptcy anytime soon. So, as another lesson... buyer beware when donating to anyone, especially on the internet!

I hope this has opened your eyes to some of the ways of the internet, especially concerning how money is made. I don't want to turn you off from the net. Rather, I want you to see it for what it mostly is - a business opportunity where money is made and fraud can happen. As in real life, always be aware of the environment around you! Even the best online community is still motivated in some way by money. And there is nothing wrong with that!

Save Money - Cut Off Family

2013-01-14T10:58:00.002-05:00

Ever hear that old adage that "you can choose your friends, but you can't choose your relatives?"

That saying is true, but you can also choose not to deal with relatives who do not enrich your life.

Now don't get me wrong. I think family is important. Very important. My very closest "friendships" happen to be with people who are related to me. My family isn't a big one, and because of that we tend to keep close ties with 2nd, 3rd, and even 4th cousins in some places. I'm also very fortunate to have many relatives including great aunts and a grandmother who are still living (and healthy) well into their 90s! My family really does mean a lot to me.

However... I have one particular relative and his family who I don't feel very fondly about right now. I have written about their treatment of me as far back as 2011. My hope was that by ignoring them they would eventually settle down and start treating me decently. Sadly, the opposite has occurred and they've now started treating my parents poorly, too (I assume because they could not get a reaction from me).

Then last week one of the "gang" started harassing me via text message, accusing me of things that had nothing to do with any of them in the first place. She said some really hateful things about me and my family. At this point, we have all come to the realization that no matter how much any of us try to ignore them, take the high road, or even pray for a good outcome, these people are just too hateful to ever allow that to happen. And to be honest, after growing up and seeing their behavior against others over the years, I can't say I am surprised. They just aren't very nice people.

Having toxic people eliminated from my life is a big plus for the obvious reasons. But, my parents pointed out how much money they and I will both be saving by having them out of our lives!

I decided to total up my own list:
1.) Not buying them Christmas gifts - savings = $200+ a year
2.) Not buying their bratty kids birthday gifts = $90 a year (in all fairness, only the oldest is a real brat, the other two kids are okay)
3.) Not having to waste gas or food to go to their parties and cookouts (only to be ignored the whole time) = $60 a year

That's a savings of at least $350 a year! I'll gladly put that money to use helping out less fortunate kids in my community.

Sometimes saving money just feels GOOD!

Have you ever eliminated someone toxic from your life only to realize later that there was a significant cost savings benefit, too?

Why do I keep so much money in my new car account?

2013-01-07T09:50:00.003-05:00

Why do I keep so much money in my new car account?

Elizabeth at Simple Finance left me a comment on my 2012 Goal Recap post in which she asked the following:

"Just curious why you want to have SO much in your new car account? You could get a great car (new or used) for the $17k you already have. Since cars depreciate in value so quickly, I've always seen a really expensive car as a bad investment."

This is a great question, with a complicated answer, which I will try to address here.

As it stands now, my new car fund has over $17,500 in it and my goal for 2013 is to increase this amount to $25,000. Elizabeth is correct that I can get some very nice new and used cars for $17K, so why do I continue to save so much?

1.) The car I want (notice I didn't say "need") costs more than $17K. My last two cars have been Volvo station wagons. The first one was a used 1996 860 and my current one is a 2007 V70 that I bought new when the 2008 models came out (meaning that I got a killer deal on it). The Volvo wagons suit my needs - they have a wonderful safety record, they are extremely comfortable (important as I have a long daily commute), great storage room, and they are reliable. I also put a lot of miles on my cars so it is important to me to have a car that is well made will hold up to heavy use. The Volvo fits the bill for me. In fact, my current car just hit 100,000 miles not too long ago and, other than general routine maintenance, I have not had to do any major repairs! I have never had another brand of car hit 100,000 miles without having major issues, yet Volvo has impressed me twice in this regard!

2.) I don't feel guilty buying an expensive car. For one, I keep them for many years and miles, so I consider it an investment. Accounting for longevity and maintenance costs, my Volvo's have cost me less per year to own than any of my other cars. This is an important thing to consider when looking at a big investment like a car! Secondly, I have no debt and I work several jobs so a nice car is my special treat to myself for working hard. Of course, if my financial situation suddenly changed and I could no longer afford to drive a Volvo, then by all means I would reconsider my options.

3.) Even cars need an emergency fund. My new car fund also serves as my "oh crap, shit just happened" fund. If I need to do any major repairs to my car I know I will be able to cover the expenses. Also, if my financial situation should change, I'll still be in a good position where car maintenance and replacement is concerned. Knowing that I have the ability to provide safe and reliable transportation at any given time without putting myself into debt gives me a lot of freedom.

So, I hope that answers the question as to why I have such a large new car fund. No matter how much I save, I will continue put money into that account because I like the peace of mind it brings me.

Do you agree or disagree with my approach here? What are your thoughts on car purchases?

I cured my migraines!

2013-01-04T04:00:00.000-05:00

I cured my migraines!

People call July 4th "Independence Day," but for me Independence Day is January 4th. Why? Because that is the day I discovered the cure for my migraines!

Migraines I had suffered through for 20+ years.

Migraines that were getting progressively more debilitating as time went on.

Migraines that were costing me a lot of money each year in expensive medication that made me feel loopy.

It has been a year since I started taking magnesium on a regular basis and I feel like a new person. While my migraine "triggers" still cause headaches (some worse than others), they are just that - headaches. Not the awful migraines I suffered through for years.

Who would have known an apparent magnesium deficiency could have caused so much pain for so long?

So HAPPY INDEPENDENCE DAY everyone! One year migraine free and loving it! :)

What life changing things happened to you in 2012?

Goals - Looking back at 2012

2013-01-02T09:15:00.002-05:00

I started out 2012 with 5 goals I wanted to accomplish by the end of the year. I've been tracking my results periodically all year here on this blog - the good, the bad, and the ugly. Doing so forced me to be accountable to myself and, frankly, try harder to meet the goals so I would be accountable to you, too (I can easily make excuses to myself but don't want to let all of YOU down). If you have a blog, I highly recommend listing your goals on it for all to see - it does wonders for kicking your butt into gear! LOL!

Anyway, how did I do with my 2012 goals? Drumbroll, please.......

1.) Complete my Declutter Challenge! I am challenging myself to get rid of (at least) 366 items of clutter during 2012.

SUCCESS!  I hit and surpassed this goal months ago (I am at well over 1500 items for the year - maybe more since I lost count). One of my 2013 goals now is to get the basement cleaned out. Sigh.....

2.) Put $17,500 into my new car fund in 2012.

I hit this goal on the last week of the year. The balance in my "new car savings" account on 12/31/12 was $17, 597.65. Woot! I want to increase the balance in this account to $25K by the end of 2013.

3.) Earn $6,000 in side hustle money this year.   This money can come from blogging, teaching, freelance writing and designing, working as a "turker" at Amazon Mechanical Turks, selling crafts on eBay, and any other clever ideas I come up with to earn some extra money.

Success! I have earned $8062.67 this year in side hustle money! Woohoo!!!! This is all from doing freelance work, blogging, teaching at a local University, doing Swagbucks, credit card rebates, and selling some antiques and other items. I am aiming for $5K in side hustle income in 2013.

4.) Clean out my personal email box. Seriously, folks, this almost embarrassing to admit, but I started out with 20,450 emails sitting in my mailbox. By year's end I want to have this number down to a manageable 450. The rest (20K!) will either be filed or deleted.

Regular readers know this has been a hard goal for me to hit. I started out with over 20,000 emails, got it down to about 13,000 and then fell off the wagon and sort of gave up on this goal. On Christmas I had over 19,000 emails sitting in the inbox. But then for some unknown reason I got inspired and started cleaning this out. it took the better part of two days to go through the emails and decide what to keep (file) and what to delete but am happy to report that I ended the year with only 597 emails sitting in my inbox! Woot! Woot! Woot! Did any of you see THAT coming? LOL. I am making a person goal to deal with those last 600 emails in the next 1-2 weeks. Just for once I want to have an empty inbox.

5.) Get an average of five servings of fruits and veggies a day.  I want to be healthy, and so it is time I step up my game in this regard and focus more on getting the right balance of food in my life. By succeeding, I will be creating a healthy habit!

You can't win them all, right? I don't think I did quite so well on this goal. Some days I hit it and some I didn't. I will keep working on this for 2013. In fact since one of my 2013 goals is to lose 13 pounds I guess proper nutrition will be important. Wish me luck!

How did you do with your 2012 goals? And did you make any goals for 2013? Click here to read my 13 goals for 2013.

Reduce My Electric Bill - December Results - Double check the electric company's work!

2012-12-27T11:37:00.001-05:00

One of my goals for 2013 is to reduce my electric usage and, ultimately, my electric bill. How did I do for December? Read below to find out.

November Results (Actually, mid-November through mid-December.)
I used less electricity in December 2012 than in December 2011. Woot!

BUT... it initially looked like I had used MORE electricity. When I checked my bill it had said I had used over 900 KWh's (whatever they are) of electricity. This was more than I had used for the same period last year. I was disheartened, to say the least, because I had taken steps to not let this happen - both from measures I took last month in order to use less electricity, and new strategies implemented this month.

????? If this was how it was going to be then I was ready to throw in the towel. Thankfully, before I completely gave up and became an energy hog, I noticed something on my bill - my bill had been ESTIMATED "based on my prior usage." There was aso some directions on reading your own meter and submitting the results to them using a simple online form. I checked my meter and, sure enough, my own usage was actually 300 KWh LESS than what they had estimated.

This was an important month to get an accurate meter reading because it is the end of my "budget billing" period. Now we should be able to start off 2013 with a good idea of what the monthly 2013 electric budget should be.

Sometimes it pays to double check the electric company's work!

Steps I took last month to reduce the amount of electricity I used:
1.) Made an effort to turn off lights when I wasn't using them. Same with TVs. Plus continued using the timers I bought last month to limit the amount of time some outside lights are on (I really need to pick up a couple more of these).
2.) Changed my 'outdoor' Christmas decorations. I always put a lighted tree on my front porch. But in the past I have also placed electric candles in each of the front windows. These were old and clearly used a lot of electricity because my December electric bill always shot way up. This year I did away with the electric candles and, instead, placed a lighted Christmas tree in an upstairs window at the center of the house (this had newer lights on it that used less electricity, and I also placed the tree on a timer so it wouldn't be n all day). From the outside the house still looked nicely decorated and festive with the two trees visible! Inside I have a tall lighted and decorated tree, but it is only on in the evenings and doesn't use much electricity.
3.) Read my own electric meter when the electric company tried to estimate the reading... that proved to be a good thing for me! :)

What steps do you take to reduce your electric bills? I could use some more suggestions!

13 Goals for 2013

2012-12-17T12:24:00.000-05:00

2013 is right around the corner. Are you ready? It seems like just yesterday 2012 began and now it is almsot over. Now it is time to think about 2013. Lisa from Cents to Save posted her 2013 goals, and that reminded me that I needed to post mine, too. Some of my goals are financial, and some are more personal. Assuming the world does not end on Friday (12/21/12), below are my 13 goals for 2013:

1.) Have $25,000 in my new car fund by the end of 2013. I will start out the year with roughly $17,500 in that fund, so I will be aiming for another $7,500.

2.) Add $5,000 to my Roth IRA.

3.) Make $5,000 in side hustle income (teaching job, blogging, selling stuff, Swagbucks, rebates, etc.). I made over $8,000 in side hustle income in 2012, though I also sold a few big ticket items so I am downgrading my expectations for this year. By the way, I am NOT counting money earned from my rentals in this figure.

4.) Loose 13 pounds by the end of 2013, and keep it off.

5.) Track my spending all year to see if my spending matches my budget predictions. Shouldn't be too hard since so much is tracked electronically through my bank.

6.) Reduce my electric bill by reducing my energy consumption.

7.) Stay on top of the book keeping for the rental business. I don't want to be hunting around for receipts and invoices come tax time!

8.) Post a minimum of one time a week on my new blog about my landlording experiences (url to be announced soon).

9.) Post a minimum of two times a week on The Single Saver. What would you like me to write about here?

10.) Clean out the basement (and keep it clean).

11.) Clean out the garage (and keep it clean).

12.) Have my attorney finalize my Will. I have a draft will written but, due to some trusts I want to form and charities I want to have represented, I need a lawyer to handle the fine print. We've started the process but I need to get my butt in gear to get it finalized.

13.) Quit bad habit "X." What bad habit "X" is doesn't matter... what does matter is it is a small little nervous habit that I have (much like some people bite their nails or crack their knuckles) that drives me crazy and I want to make a conscious effort to wean myself from it.

What are your goals for 2013?

6 Ways To Lose Weight For Free

2012-12-13T10:57:00.001-05:00

One of my goals for 2013 is to lose 13 pounds (and not gain it back). My weight generally hovers between 125 and 135, and right now it is at the 133 range. Though still within my 'normal' weight, I am feeling slightly pudgy and I don't like that feeling one bit! Losing 13 pounds will put me at the 120 mark, which would be a really healthy weight for me. In fact, that weight would put me at a BMI (body mass index) of 22, which is considered the most healthy BMI level for my height.

So I want to lose weight but I do not want it to be hard, nor do I want it to cost me any money! Remember folks, I am cheap! I know people who want to lose weight so they join fancy gyms, buy nice workout clothes (so they fit in at the fancy gyms), buy expensive diet food, etc... and they still don't lose much weight. So why should I waste my money? I've examined my life and easily found six relatively easy things I could be doing that would help me melt away the pounds... for free!

1.) Use the free gym at work. We have a gym in our office building with all the basic equipment you really need. I know people who pay $50 a month or more for access to a gym, so I really out to take advantage of this free perk my employer offers. Does your employer offer a free workout area or free membership to a local gym? If so, you have no excuse not to be using it!

2.) Park far away and walk. Walking is great free exercise that many of us forget about. I like to try to find the best parking spots I can, especially in the winter when it is cold and windy! Parking farther away not only forces me to burn more calories, it also mean my car is less likely to get damaged by people walking by. Do you do this? Why or why not?

3.) Utilize my Wii and Wii Fit Plus. Shortly after I got my Wii I also got a Wii Fit Plus. For anyone who hasn't heard of a Wii Fit Plus, it is a fun program that lets you do all kinds of interactive exercises, many taking place on a relaxing island setting. It is a lot of fun and a great calorie burner. Since I already have this, I have no excuse for not using this free form of exercise more often. Does anyone else love their Wii Fit Plus like I do?

4.) Watch my food intake. Seriously, I really like food so sometimes it is easy for me to eat too much! I also have a bad relationship with sweets! In fact, I actually try - for the most part - not to keep sweets and snack foods in my house because when they are there I tend to gorge. Being careful not to overeat is an easy and free way to loose weight.

5.) Eat a lot of fruits and veggies. I struggle with this one but eating fruits and veggies fills me up with "good calories" so that I do not feel the need to fill up on foods that aren't so good for me. This is obviously a habit that I need to form, but fortunately it doesn't cost money to form a good habit such as this. As vegetable gardening is one of my hobbies, I have no excuse for not stepping up my game a little where healthy eating is concerned.

6.) Learn how to do Weight Watchers for free. Actually, I have done this before and it worked. I might start doing it again after the holidays. Weight Watchers is a great program for helping people lose weight in a safe and proven way. However, it is also very expensive to join. Luckily, a simple web search will yield you with all you need to know about following the WW program, without having to pay an expensive membership fee or buying pricey food. Once you learn how to count points and determine your point allowance, you can follow the plan on your own!

Do you have a weight loss goal for 2013? How much do you want to lose and how to you plan to do it? Any tips for losing weight on a budget?

How I Paid Off My Mortgage In Four Years

2012-12-10T16:11:00.002-05:00

How I Paid Off My Mortgage In Four Years

A couple months ago I shared with you that I paid off my mortgage. What I didn’t share with you was how I did it. Needless to say, this post is long overdue. This story is both a happy and a sad one. Keep reading to find out why.

In 2008 I started the process of having a house built (I actually signed the loan paperwork on my birthday). I built a normal sized house and had a low and very manageable mortgage payment and yet I HATED having the mortgage. It just made me feel like I was lacking some stability. I am risk adverse and although I have good assets and good employment there was always this little nagging voice in my head telling me that I could technically lose my house since it wasn’t paid for. I knew I could not go 30 years with this nagging voice in my head, so I took steps from day one to make sure I could rid myself of my mortgage ASAP.

First, how I got my mortgage down from 30 years to 9 years.

1.) I chose a house design that was affordable. No McMansions for me. I wanted something with an open floor plan and enough bedrooms that if I have a couple kids someday we will still have plenty of room.

The house I chose to have built is 2100 square feet (plus unfinished basement that could be converted into additional living space in the future. It has a big family room, dining room, open kitchen with eating area and “Morning Room”, first floor laundry room, three bedrooms, loft (which can be enclosed to make a 4^th bedroom if it is ever needed), and two and a half baths. In my community, this is a pretty common size of house. It is not too big for a single person, but yet large enough for an average sized family due to its open living spaces.

2.) I didn’t listen to the bank! I was approved for a much more expensive house than I built. While the bank may have thought I could afford the payments on a McMansion, I knew I couldn’t if I wanted to continue the same lifestyle and saving habits I had developed. Also, I wanted a low enough payment that should I be without a job for an extended period of time I could still make the payment with my savings, investments, and other supplementary income.

3.) I put 30% down on the loan. While this was certainly not encouraged by the builder or required by the lender, I insisted on doing this in order to keep my payments as low as I could. I was able to save up the large down payment during the eight years prior to this that I had rented. This took a lot of will power (sometimes I really struggled with wanting to spend some of the money I had saved!) but in the end I am glad I was as diligent about saving for the down payment as I was.

4.) I had good credit. My credit score was 801 when I applied for the mortgage… and because of the score being what it was the lender gave me the lowest interest rate they were offering at the time. Every little bit that I didn’t have to pay in interest helped my chip away at the principle!

5.) From day one I made double principle payments. This is rather easy to do at the start of a loan because the principle payment is generally pretty low while the interest is high. For instance, if I was paying $700 a month and $80 of that was principle while $620 was interest, I would make my regular $700 payment and then I would send in an additional $80 and have it applied directly to the principal. Each month that amount would increase slightly. Doing this each month will reduce the life of the mortgage from 30 years to 15!

6.) Whenever I had an extra windfall (bonus at work, rebate checks, birthday money, etc.) I applied it to the principle on my mortgage. I figured out that if I was consistent with this over the years I could easily knock another 6 years (at least) off the life of the loan.

And what about the other 5 years of the loan? How did that get paid off?

So if you are doing the math, you will know that I was basically taking a 30 year mortgage down to a 9 year mortgage. You are probably a little confused how I ended up paying off the loan 5 years sooner – in just 4 years.

This is the part of the story that is sad.

I have written before about the death of my Dad’s cousin. I was the beneficiary of her estate. She and I were very close, and very much alike in how we managed money. I remember in the last couple weeks before her death she looked at me one day and said, “You’re going to pay off your mortgage, aren’t you?” I told her I was, and she smiled and said that is what she wanted me to do with what I inherited. It makes me cry just to think about it.

A year later when the estate was settled, taxes and lawyers were paid, and life started to return to normal, I went into the mortgage office one gloomy, rainy day and paid off the balance on the mortgage. When I handed over the check I felt like my cousin was with me in spirit.

Some say I was lucky but I don’t feel lucky. I feel sad. While I love having no mortgage, I would much rather have debts if it meant my cousin was still alive. I miss her so much. :(

I paid off my 30 year mortgage in four years (almost to the day) and obviously the inheritence helped, but even without the inheritance I was on track to do it in nine years. If someone like me (single, average income levels) can do it, so can you. It just takes a good budget and a lot of will power.

Reduce My Electric Bill - November Results

2012-12-03T10:23:00.001-05:00

Almost two years ago I wrote here about how I reduced my electric bill by 30%. I was so proud of that statistic, and that post! My local electric company has pretty high rates and ridiculous extra fees, so anything I can do to keep my bill low helps my budget.

Things were going great. And then... slowly... over time... my bill electric bill started increasing. At first the "budget billing" amount rose slightly. No big deal, right? Then it jumped a little more. Annoying, but I sort of put it out of my mind. But then the last budget billing increase a couple months ago was significant enough ($36!!!!) that it made me sit up and take notice. Some of the increase was inevitable due to rate hikes and increased fees and taxes. But a lot of the blame still fell on me.

I had gotten lazy about my energy saving behaviors.

It was time I officially declared WAR on my energy bill. There was little I could do to fight the crazy-high fees and taxes tacked on to every bill, but I sure as heck could take steps to keep the actual usage charges down by being smart about how I use electricity in my home.

I decided one of my 2013 goals would be to reduce the amount of electric I used in my home each month. And I decided to start early. Below are my results for November, along with steps and tools I used.

November Results (Actually, mid-October through mid November.)
I used less electricity in November 2012 than in November 2011. Woot!

Steps I took last month to reduce the amount of electricity I used:
1.) Made an effort to turn off lights when I wasn't using them. Same with TVs.
2.) Replaced my sump pump after the last one died (stupid flooded basement... grrr...) with a new one that was supposedly more energy efficient. My sump pump has to run a lot so I think the energy savings should be noticeable here.
3.) Put timers on some switched lights.

I leave all my outside lights on all the time because I light the security of a well-lit perimeter to my house when it gets dark. Often, it is dark before I get home from work in the evenings or even when I go to work in the mornings. I've never had good results with the dusk-to-dawn devises so I just left the lights on all the time to be sure that they would be on when I needed them. I also had an interior light (the light over my sink) that I kept on all the time because I don't like walking into a dark house. While other lights (lamps) in my house are on timers, the ones mentioned above were operated by switches (not plugged in) so I figured I was out of luck.

But it turns out you can get timers for switched receptacles, too! Yes, you can put a timer on your wall switches just like you do your plug receptacles! I bought a set to try out and am so impressed by them that I have ordered more to use for the rest of my lights. Basically, they just sit over the switch and turn the switch on and off at the programmed times. You can set different programs for different days of the week and there is even a vacation mode where you can have the lights randomly turn on and off after a short time to make it look like someone is home.

The best part is, these require NO HARD WIRING! Just two AA batteries and a screwdriver to replace one screw in your existing switch plate. Easy-peasy! No handy man skill required.

Amazon has these available for a great price. Click here to buy one or to learn more. You won't regret it!

My First Income Property!

2012-11-29T11:12:00.002-05:00

Tomorrow I close on my first investment property - a duplex! I am both excited and scared at the same time. I want to be a good landlord, but I also don't want to be conned or taken advantage of by my tenants. For those of you who have rental properties, I would appreciate any advice you can give me!

I am sure I will have lots of stories to share regarding this new adventure so I am setting up a website to document these tales... that way those who are interested can keep up with my adventure while the rest of you won't be too bored by continuous stories. I am sure I will still talk about the investment property business now and then here at The Single Saver, but it won't be a primary focus. Once I am happy with the look of the new site, I will post a link here, for those who are interested.

I have been looking for a good income property for a long time, but just couldn't find something I was conformable buying. Either the place needed too much work, or was in a bad neighborhood, or was too expensive. But if I have learned anything in life, I have learned that patience will eventually pay off.

Why I Picked This Rental Unit

A good friend of my parents, whom I have known for my entire life, has been in the rental business for years. Apparently my parents had mentioned that I had been looking for a duplex or triplex to buy. Fast forward years later and our friend is thinking of retiring from the rental business and wants to sell his properties. He asked my parents if I was still looking, and if so he said I should call him.

Our friend had three properties remaining in his collection. All three were duplexes. Two were converted houses in a part of town that I - a single woman - just wouldn't feel comfortable gong to after dark, for safety reasons. Plus, being older buildings there are more maintenance issues to deal with. Those two units were out... they would not have been a good fit for me at all. The third, however, is a traditional townhouse-style brick duplex located just a mile from my house on a nice street!!!! When I first saw this place, I felt like Ralphie did in "A Christmas Story" when he first saw the Red Rider BB Gun - I knew I had to have it! It was a perfect fit for my situation.

Our friend was willing to give me a great price on the place. Why? A few reasons... one, he wanted a quick sale in order to get the 15% capital gain tax rate. He is fearful rates will be going up significantly next year and he figured selling it cheap and fast would still net him more profit after taxes now, then waiting and selling it for a higher price but also having to pay a much higher tax rate. Two, by doing a private sale without a realtor he is already saving thousands in real estate commissions - a savings he was willing to pass along to the seller. Finally, the fact that he is a good family friend surely helped with his pricing strategy. Mainly, I just got lucky here. :) As an added bonus, he has promised to help me with any maintenance issues that might arise. As I know him well, I have no doubts that he has taken very good care of the building for the last 30 years.

What's Next?

Both sides of the duplex are currently rented to two very good tenants. Even so, I plan to sink some money into the building at the onset. I'll be starting with new windows (I negotiated the price down a little in order to pay for these). The place needs new windows and I would feel guilty making the tenants go through a winter with the old drafty ones. Secondly, I want to increase the curb appeal a little by adding shutters and some landscaping. I want the tenants to feel proud to live there, and I want to be proud to say I own that building. In time I will also do some interior updates and replace the siding on the garages and maybe replace the garage doors. The duplex is in a good area and in a good school system, so I want to make the place look as nice as possible to attract and keep good tenants. Being that each side is 3 bedrooms and 1.5 baths and on almost 3/4th of an acre, I am hoping to keep families in both sides. I figure families will cause less trouble overall than college students. :) For those in the rental business, am I wrong here in my thinking?

I formed an LLC to protect myself in the event of legal issues. And if things go well with this first building, I may look into a second building in the next few years. Time will tell. For now, I am really excited (and scared) about this new adventure in my life. I'll keep you updated on how things go and, more importantly, if this venture makes me money or costs me money.

Landlords, PLEASE give me tips, warnings, and words of encouragement!

Advantages and Disadvantages of Borrowing from your 401(K)

2012-11-28T10:38:00.001-05:00

I had a long-time reader email me to ask my thoughts on taking out a loan from her 401(K) plan. She wants to purchase a home and wanted to use the money she would be borrowing from her plan to make the down payment.

Of course, my initial reaction was, "No, no, no... don't borrow the money from anywhere. If you can't make at least a 20% cash down payment you shouldn't be buying the house!!!" But I also realize I am extremely risk adverse. I know enough about this particular reader to know that she has been investing for years, has a good job, and rarely makes big decision in life without thinking through things in great detail. So I decided I owed it to her to look into her situation to see if it would make sense to borrow from ehr 401(K) in order to invest in a home.

It seems (according to information I got from my own plan's website) that there are advantages and disadvantages to borrowing money from your 401(K) plan.

Advantages

You don't have to pay any taxes on the money you receive, as long as you pay it back (usually within 5 years) and any interest you pay generally will be put back into your retirement account.
Approval is easy and relatively fast compared to going through traditional loan methods.

Disadvantages

The loan can turn out to be expensive if you don't pay it back on time. While you work for your employer you generally will be making payments directly out of your paycheck. But if you leave (or are asked to leave... gulp...) you will have to pay the balance in full in order to avoid IRS taxes and penalties.
You may forgo investment growth because of the loan. The longer the money is not in your account, the longer it goes without growth. This could be bad for your long-term investment and retirement strategy.
You might give up big returns. If your rate of return is higher than your loan interest rate, then you'll miss out on gains you could have earned.
You may be able to find a better loan rate. Don't assume the 401(K) rate is the best around.

So does it make sense to borrow money from your 401(K)? In some circumstances, yes. But to someone who hates risk (like me!) I suggest only doing so if you feel really secure in your job situation and have a short-term plan for repaying the loan.

Have you ever borrowed from your 401(K) plan? Was it a good or bad experience?

If you are reading this and you aren't thankful, shame on you!

2012-11-27T10:29:00.001-05:00

I've been a bad blogger. Part of it has been a crazy amount of business in my real life (work, home, you -name-it). Part of it has been having so much I want to write about here that I am overwhelming myself... so I just shut down. And part of it is just frustration with the blogsphere as a whole.

But now and then, despite being frustrated a discouraged and BUSY, something will make me stop and think. In this case, I was reminded of how thankful I ought to be for the life I have. And if you are reading this, I assume you have just as much reason to be thankful.

I was browsing Facebook this morning and a friend of mine posted the following image (posted at the end of this article). I have no clue where it originally came from, but it was so thought-provoking I just knew I had to share it with you.

And as a teaser as to what you can look forward to reading from me in the next month or so, here is the list I am working on:

* How I paid off my mortgage in 4 years

* Why I am annoyed with (some of) my fellow bloggers

* I bought my first income property! Woohoo!

* 2013 Goals

* Electric company... this is WAR!

Enjoy the graphic, and be thankful for the life you have.

Signs You Could Be An Entrepreneur

2012-11-02T09:25:00.004-04:00

Happy Friday!

I just read an interesting article: 12 Surprising Signs You Could Be an Entrepreneur. Since so many of my readers, like me, enjoy finding ways to earn a little side hustle money hear and there, I think many will be able to relate to the article. Enjoy!