Monday, November 16, 2009

Cheap ass friends

I've started keeping score with some new friends and that's never a good thing. The other night put me over the edge.

It all started when we agreed to meet for dinner. Now that DH's and my kitchen is gutted for renovation, we can't exactly have people over. And last time we got together with this particular couple, we went over to their place and had beers in their one bedroom apartment. Which was nice, except it reminded me of my claustrophobic NYC apartment days.

This time we planned to meet at a restaurant. DH suggested one place we've wanted to try and another that we've been to once. The couple quickly agreed to the former, which they'd been to before.

Flash forward to the restaurant. It's a trendy spot with pricier entrees than I was expecting: about $11.95 each. Our friends decided to split an appetizer and one entree, and DH and I ordered two entrees. Our male friend, "A," attempted to order a beer, but they didn't have what he wanted so none of us ended up with drinks.

When the appetizer came, the restaurant staff had cut it into four portions and gave us four plates. DH and I were obviously going to ignore that and let our friends eat. Except A decided to say, "Oh, did you guys order an appetizer, too? Because 'E' and I only ordered one entree so we were planning to split this."

I must have shot him a WTF look because he quickly backpedaled with, "But you can have some if you'd like." Too late, dude. I just said that we knew it was their appetizer and that we'd have more than enough food with our entrees.

Then the entrees came out and I found myself getting annoyed with how much rice they were taking to go with their one shared meal. I was actually thinking, you two only ordered one entree, so stop eating all the fucking rice because DH and I have two entrees to enjoy. But I didn't say anything.

I'll back up in a minute and give you more of the history of our relationship so you don't think I'm a total nut job. But first let me finish about dinner.

When the bill came, A quickly grabbed it and started scrutinizing the numbers. DH's and my portion should have been about $24+tax, and our friend's portion should have been about $16+tax. I didn't have cash, so E and I both threw in our debit cards. Which caused A to make a big production to the waitstaff about how E's card should only be charged $17 (he did the math wrong), and the rest should go on mine.

Now here's the thing about this that pissed me off. Normally I wouldn't even notice this sort of trivial thing, and of course DH and I should pay more because our food cost more.

However, things with this particular couple have been pretty unequal for a while now. DH has known them for about a year, and I've been a casual acquaintance for about six months. In that time, we've hung out at each other's places and gone out for drinks, and DH and I even attended their wedding. I also went to a bridal shower.

Here's where the score keeping comes into play. Whenever DH and I go over to their home, we bring something. Sometimes it's a 6-pack of beer, sometimes a bottle of wine, sometimes both. But we bring something that we end up drinking.

When they come over to our place, however, they always show up empty handed. One time, in fact, DH told me that A said he was going to bring some scotch (or maybe whiskey?), and I thought, great. I don't actually like scotch (whiskey?), but I appreciated that he was going to bring something to share. I even thought I might have a sip.

Except when they showed up, A had only brought a small flask of scotch/whiskey for himself. He asked DH and me for a beer chaser and proceeded to drink two of our beers.

Then there was the time that E came over so DH could do some work on her bike. DH spent a couple of hours fixing it while I served mixed drinks. When I asked E if she wanted to stay for dinner and suggested ordering a pizza, she conveniently didn't have her wallet with her. So I paid. I'm still waiting for her to reciprocate.

Another time, DH and I had the grill fired up with all sorts of food options and invited them over for dinner. When they finally showed up, about 2 hours later than they said they would, DH and I had already eaten and were about to pack up to go to bed. But we ended up making them food anyway.

And remember the wedding? Even though I barely know this couple, I spent $60 on a wedding shower gift, $200 on the wedding gift, and $50 taking E out for drinks while A was at his bachelor party. And now they're making a fuss over a $7 difference in our dinner bill?! (I was also invited to E's bachelorette party, but I bowed out at the last minute in part because I didn't want to spend any more money on her wedding.)

But they did bring us a house plant when we moved into our house, which I appreciate.

The thing is, from what I can gather A has been underemployed for years (technically he's a partner in a firm that brings in no money, so he has no income and has been living off savings from the sale of his first house). E works in a job that's similar to DH's work, so presumably she earns about what he earns. They spent more money on their apartment than DH and I paid for the mansion, and E also pays half of a real estate investment property she bought at the height of the market but can't rent out. So presumably this couple is broke. (They've alluded to money stresses frequently.)

However, that didn't prevent them from spending several weeks in an international destination for their honeymoon (the city they visited is more expensive than NYC), or from having technology like iPhones. I've probably been generous with them because I feel bad for their financial situation and want to be helpful. However, I have my own bills to pay and am starting to feel taken advantage of. My honeymoon was a subway ride to Coney Island and some cheese fries from Nathan's.

I'm also starting to feel that A just needs to get a real job, like the rest of us. Too bad if he has a problem with authority and wants to be his own boss.

I think we're going to take a break from hanging out with them for a while. Next time, perhaps we'll just meet for happy hour drinks. As long as we can pay separately.

Saturday, November 14, 2009

Weekend articles

Here's what I'm reading in this weekend's New York Times:

Job Losses Mount, Enduring and Deep

Thursday, November 12, 2009

Imitation = flattery

Donna Freedman's latest MSN column appears to be an extension of one of my recent posts, Who knew this is why I was saving so much. Take a look for yourself: Is the car-free life for you?
Going car-free would be good for me, I figured. Obviously I'd save money on insurance, gas and other car-related costs. I'd get more exercise. Best of all, I would no longer have to worry about maintenance, parking or cleaning bird poop off the windshield.

Not that I wasn't apprehensive. How much time would walking or riding the bus steal from my already-crowded days? Would hunting down ultrabargains be possible without driving from store to store? If not, would my frugal lifestyle be compromised?

The past few months have been a revelation. I feel much better physically. Not only have I lost weight, but I've been reminded that walking is a great stress reliever, thanks to the endorphins our bodies produce. Not only are endorphins legal, they're also free.

More to the point, adding up last year's auto-related expenses shocked me -- and my car had been paid off for years. Vehicle ownership is the biggest single expense in many people's lives, and not owning a car can be the biggest single weapon in a serious-minded budgeter's arsenal.

Monday, November 9, 2009

Dry cleaning costs HOW MUCH???

I'm back home, back at the office, and haven't resigned...yet. I'm taking lots of deep breaths and looking forward to the upcoming holidays, and the people here have been really supportive. But I still have serious reservations about some of my other colleagues, particularly the high maintenance coastal folks. (One person in particular makes me extremely relieved I didn't end up moving to Portland. I thought Pacific Northwesterners were nice???)

Fortunately, I only have to see these people a handful of times each year. Ironic that I escaped a stressful East Coast city only to end up working with a bunch of those personalities anyway, precisely because of my experience living on the coasts.

But my biggest surprise was how much all of my dry cleaning cost. Because I was at a bunch of high profile meetings and events last week, I broke out several suits and one gala dress. Usually I wear business casual clothes to the office that I can machine wash, but this past week was different. The total for four days worth of clothes? $45! How the heck does anyone afford that regularly?

And if there's one thing all my recent travel reinforced, it's how much I love living in Minneapolis. Man, it's great to be back. The city is so relaxed and fun, DH and the cats are great, the mansion is fantastic (even in spite of the fact that the new, improved contractors have moved in and the kitchen is being gutted tomorrow), and we've got lots of terrific friends. So even though I use this blog to vent so you hear mostly the crappy stuff that happens to me and my frustrations, in general life is good and I'm just really grateful to be at such a comfortable place.

Occasional crappy real estate agents, bike mechanics, student employees, and contractors aside!

Sunday, November 8, 2009

Weekend articles

Here's what I'm reading in this weekend's New York Times:

Money Issues That Can Test Even a Rock-Solid Marriage
Turning Happy Hour Into a Global Job Search
Happy Times at the Dog Run, Now Coming to an End
Getting Serious About Your House and the Market
The Decline and Fall of the Bachelor Pad
Going With Uncool
A Production Called Home
As Luck Would Have It ...
What's Good for the Kids
When Being Home Is an Adventure
Don't Worry, Be Happy: The Warranty Psychology
Windfall Is Seen as Bank Bonuses Are Paid in Stock

Tuesday, November 3, 2009

Work sucks

So you all know I started a new job three months ago? Well, things aren't exactly going great. The people are kind of obnoxious, I'm frequently barked orders at and treated pretty badly, and I'm not feeling especially excited about the work given the environment. Plus remember all that fallout with the incompetent student employee I inherited who didn't do any of her work? Well, she resigned dramatically right before our huge event, writing an awful resignation letter launching a personal attack on me. And this was after she had come in to my office screaming at me and sobbing for an hour.

And now, everyone is questioning my skills as a manager. Instead of saying, wow, you've accomplished so much in such a short period of time despite having this dead weight employee who completely undermined you and bailed on your event, the board is saying, what did you do wrong as her manager? And I just received vague performance measures that include things like "management effectiveness measured by employee satisfaction." I kid you not. For the one employee the budget allows me to hire.

I could just be having a really bad few days. But after this past week -- when I've been traveling to meetings, single handedly managing every last detail because the stupid student employee quit (not that she would have done anything anyway), and basically being run ragged -- I'm kind of feeling like I want to say fuck it; I resign.

I've had jobs where egomaniacs treated me like shit and it never ended well, so even though I'm trying to be assertive and professional with this group, I'm sensing the same slippery slope. And I don't want to be stuck somewhere for six months or a year and then have nothing to show for it if it's just not working from the beginning and I end up leaving anyway.

On the other hand, it is income. If I quit, I won't get unemployment, although at least it would be a short enough period that I wouldn't need to put it on my resume. But who wants to be miserable for a paycheck?

Maybe I just got spoiled at my last job. That environment was great and people appreciated the things I accomplished. This enviroment is a bunch of high maintenance micro-managers who will never be satisfied. One board member likes to yell at me for things she supposedly e-mailed me to do, except I have no idea what e-mails she's talking about. So I'm constantly caught by surprise because she'll just invent things she supposedly e-mailed me about. Maybe they're all lost in cyber space? And instead of trying to work out a solution, she'll talk down to me like I'm a piece of garbage. Did I mention that I'm working my ass off?

I'm probably just rambling because I'm stressed and sleep deprived. Thanks for listening.

Monday, November 2, 2009

October Spending Report

This month I blew a ridiculous amount of money on bike gear. Here goes:

October Income:
  • $3,044 Day job (my retirement contributions started)
  • $300 Transfer from savings to cover bike purchases
October Expenses:
  • $1,500 Extra payments to mortgage principal
  • $18.31 Netflix
  • $500 Student loan
  • $8 Prescription co-pay
  • $20 Tree House charity
  • $272 ING savings
  • $10 Pocket money
  • $35 Haircut
  • $26 Groceries
  • $100 Extra bike (bought from friend)
  • $43 San Francisco Trip
  • $14 Mascara
  • $190 Rain & snow gear
  • $75 Additional Charity
  • $24 Shoes for work gala
  • $46 Bra & tights for work gala; gym clothes (damn dress code!)
  • $154 Restaurants
  • $24 Theater tickets
  • $20 Food co-op Membership (1 of 4 payments due)
  • $428 New Bike
  • $20 Discount coupon book for charity

Total Income: $3,344

Total Expenses: $3,527

Drat -- I'm over by $183! We also got an additional $70 from someone who bought something from us on Craigslist, but I didn't carefully track that money so it probably went to groceries or eating out. Sigh.

Sunday, November 1, 2009

November Net Worth Report

My November Net Worth continues upwards. I reached two big milestones this month. First, we finally sold the Philly house so that's no longer included. Second, my student loans are under $20k. Woo hoo! I've been waiting years to break that barrier!

Assets:

Cash: $34,983
Retirement: $131,376
Home: $175,750
Personal Property: $4,000

Liabilities:

Home Mortgage: $136,110
Student Loans: $19,797

Total Assets: $346,109
Total Liabilities: $155,907



Net Worth: $190,202

Saturday, October 31, 2009

Weekend articles

Here are my favorites from this weekend's New York Times:

Friday, October 30, 2009

$30,000 later...

This is not what I wanted to see from Liz Pulliam Weston on MSN after spending more than $30,000 fixing up my fixer upper! Remodeling? It's a waste of money

The home-improvement-as-investment myth, combined with easy credit, fueled an awful lot of irresponsible spending in the past few years. People thought it was OK to tap their home equity so they could ape the fancy kitchens and bathrooms on HGTV, little realizing they were throwing away their wealth.

This is not to say you should never remodel your home. Appliances and surfaces wear out over time. You might want to improve an inefficient layout. Or perhaps the home's previous owners had awful taste. (One of my relatives, a serial remodeler, says most of what she does is tear out the "improvements" of past owners.)

Also, it might make more sense to remodel than to sell and buy another home. Swapping homes is really burning money, as you lose about 10% of your current house's value to real-estate commissions, selling expenses and moving costs. If your home update would cost less than 10% of your home's value, or if you really love your current neighborhood, the improvement project might be worthwhile.

But you should view home improvements for what they are: consumption spending, not investing.
At least DH and I are able to pay cash for our renovations (so far) and the reality is, we want a nice place to live. We paid less for our house than what comparable places might cost precisely because it did need a lot of work, and now it's time to make it livable. Unfortunately that costs more money than we anticipated!
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Perhaps what we're doing is renovating, rather than remodeling?

Wednesday, October 28, 2009

My transformation to total bike dork is complete

I never wanted this day to come. But after commuting via bike for the past three months, I've officially become a bike dork. It all started with spending $100 to buy a friend's bike as a back-up because mine was in the shop. After buying fenders, and a new bag, and a basket.

Then it quickly escalated to spending $104 on Gore-Tex rain pants (best invention ever!), after getting caught in the rain a few times. Then I may as well spend another $35 for a rain jacket with a lining, since it was on sale.

Next thing I knew, I was wearing goggles on rainy day. The huge terrifying kind we wore in Junior High science class. I would never be caught dead in something like that in NYC. And have I mentioned my frog light?

And then last night, in a moment of complete weakness (or emotional duress, given my current work drama), I found myself handing over my debit card so DH could order a super discounted winter bike me -- one that would have bigger tires so I could commute in the snow. And this particular bike had a custom-fitted coffee cup holder for the hardcore commuter. Check it out!

Total cost with shipping? $427.99. But it retails for $1,000.

That's what I'm telling myself anyway.

In New York, where our bikes had to be stored in the living room of our one-bedroom co-op, I never would have done such a thing. But now that I have a basement, I'm like a crazy woman filling it up.

And I have to admit that this new bike is probably going to be awesome. Please don't yell at me.

Monday, October 26, 2009

Uy

Remember when I complained about the student employee I inherited who didn't do anything and complained about her "low pay?" Well, the you-know-what hit the you-know-what this weekend and WWIII is currently in progress.

Note to self: fire incompetent people sooner rather than later, no matter what.

I'll keep you posted. Fingers crossed that I still have a job myself. You should see what she's trying in terms of sabotage. I got some good advice from an old boss this weekend, though, and am about to go for the jugular.

Wish me luck!

Sunday, October 25, 2009

Weekend articles

Back by popular (?) demand, I'll attempt to share what I'm reading in the New York Times. (Much as I've tried to embrace the StarTribune here in Minneapolis, I find myself going back to the Times so I may as well share some picks with y'all.) More work for me, but hey, that's what I'm here for. Here's what I'm reading this weekend:

The Loin in Winter: Hefner Reflects, and Grins
65 and Up and Looking for Work
Scrutinizing 2010 Insurance Options
Money Talks to Have Before Marriage
Hey, Big Spender, You Want Value?
Your New Condo Leaks? Join the Club
Homeowners Walking Away
The Apartment That Didn't Get Away
Trading Noises
Why Many Co-ops Fare Well
Flunking Out at the Food Co-op
Jobless, 50-ish, and Without Many Prospects
Demolition Daddy
How an Insurance Mandate Could Leave Many Worse Off

Friday, October 23, 2009

Who knew this is why I was saving so much

I recently finished reading How to Live Well Without Owning a Car. I picked it up for $6 at a used book store in Berkeley because I noticed that a friend of mine was quoted in it, and I wanted to show him the book if he hadn't already seen a copy. Turns out it was actually a pretty good read.

At first I thought, Pa-shaw! Preaching to the choir! I got rid of my car in '03! But then I read it cover to cover anyway. Admittedly, a lot of it I already knew, like how to bike to work. But what surprised me were the detailed breakdowns about all the money you could save, and I realized that not owning a car has probably been a factor in why I've been able to save so much.

"According to a 2004 American Automobile Association study, the average American spends $8,410 per year (roughly $700 per month) to own a vehicle."
That's insane! And yet, when I owned a car, I didn't even think about it. I just paid the money I needed to pay so I could continue owning my own vehicle, since that's what people did.

Admittedly, not owning a car was the norm in New York City, for the most part. But continuing to be car-free in Minneapolis has been surprisingly easy, too, and I love not having any car expenses. I'm even earning $150/month by renting out my garage space instead of storing a vehicle there.

But it's definitely not the norm here. People look at me funny when they hear I don't own a car and can't believe DH and I commute to work on our bikes. (My ride is 5 miles each way, his is 12.) And I'm not sure yet if I'll continue to ride in the frigid months, although my rain commute is fine now that I invested in Gore-Tex rain pants and goggles. But one of the reasons we bought a house in the neighborhood we did is because there is a lot of stuff within walking distance, not to mention several bus lines. And there's a car share available nearby, which we use when we need to get out to the suburbs ($8/hour), or a car rental place within a mile, if we need a car for more than a few hours.

Living car-free really isn't that inconvenient if you just plan for it.

Wednesday, October 21, 2009

Advantages of prepaying

I enjoyed MP Dunleavey's recent breakdown of her mortgage options on MSN: Refinancing: When is it worth it?

Refinancing:
With a 15-year mortgage, we'd save more -- a whopping $131,392 in interest payments, about $33,000 more than what we'd save by paying extra each month under our existing loan.

We'd be forced to stick to the plan. The disadvantage of a do-it-yourself plan is human weakness. Would we stick to such a big payment ($1,600 a month including escrow) if we had a choice?

Mortgage freedom comes earlier. If we did a do-it-yourself refi, we'd still be making mortgage payments until our son's junior year and possibly longer (see "human weakness," above).
At first I thought she was going to refinance into the 15-year fixed mortgage, saving lots of money in interest but being forced to make higher payments every month. But Dunleavey opted for the flexibility of the do-it-yourself approach, just making extra payments on her own.

That's exactly what I've been doing to pay off my mortgage before I'm 40. (Less than 6 years away...eek!) I realized that if I pay an extra $1,500/month towards the principal, our mortgage would be history a lot sooner than I thought possible. And if anything happens with DH's or my job, we can simply scale back the extra payments without penalty.

Now the challenge is keeping up with those payments. I keep telling myself that once I'm 40 I'll have an extra $1,500/month to play with (or at least no mortgage hanging over my head). That could fund a cool vacation every month!
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And bloggers who have already done it, like Frugal Zeitgeist, help with the inspiration!

Tuesday, October 20, 2009

Ha!


Monday, October 19, 2009

Guilted into giving

My October spending is out of whack after I got several charity requests back-to-back.

First, my company's annual giving drive is in full swing and they're going for 100% employee participation. Can you imagine if I'm the one schmuck who declined to donate and who screwed up the company's goal? I made a one-time $20 donation to DH's nonprofit, which admittedly is probably cheating. Charity begins at home...

Then I got an e-mail from a friend who's running a marathon to raise money for orphaned children, so there's another $25 donation. I requested the amount remain invisible because I felt like $25 wasn't enough, and I was embarrassed it wasn't more. But I wanted to give something to show my support.

It's also that time of year where I adopt a couple of turkeys from Farm Sanctuary in time for Thanksgiving, so that cost me another $50. On top of my usual $20/month donation to a cat shelter.

It felt mostly good to give. There just never seems to be enough extra money available.

Saturday, October 17, 2009

ING is my nemesis this week

I lost hours of my life this week because of a stupid mistake on ING. I'm pretty sure it was my fault, but of course there's a chance it was ING's. Let's blame ING.

I have this convoluted banking system at the moment that only makes sense to me. Allow me to explain.

I've had accounts with HSBC for the last 7+ years. I had an individual checking for myself, a joint checking for all the Philly stuff, a line of credit that provides me $3,000 in overdraft protection, and my Brooklyn co-op mortgage and home equity loan. Because my total balances were well over $100k with the mortgage and home equity, I qualified for some sort of elite customer status and got perks like free checks.

Then I sold the co-op and moved to Minneapolis, where HSBC doesn't exist. But I still had the Philly property so I kept the HSBC checking accounts and overdraft protection open.

In Minneapolis, I opened two Wells Fargo accounts, one for my individual checking and another joint checking with DH. Eventually, I changed the Philly mortgage payments to come out of the Wells Fargo joint account. The flaw with Wells Fargo, however, is that they don't give me a line of credit for overdraft protection. Instead, it's just linked to a low-interest savings account that I have no money in at the moment.

So I decided to keep the HSBC checking open and stuck a few thousand dollars in it to pay for renovation costs. Confused yet? Me too.

I also have three ING accounts, one for my own personal savings and two joint accounts: one renovation and one emergency. After we sold the Brooklyn co-op, we stashed the profits in these accounts, and they currently have about $40k left. But the interest rate is at a pathetic 1.3%.

The problem with ING is that it takes at least two business days to transfer any money between accounts, then they hold the money for another week before it's actually available. It's a nightmare, hence why I kept the HSBC account open. If I need to suddenly run to the hardware store and spend hundreds of dollars for new doors, or order space heaters for my cold house, I can make the payment from HSBC and not worry about overdrafting. At worst, my line of credit will cover it while I wait for ING money to transfer over.

My mind boggling system came to a screeching halt this week, however, when I accidentally transferred our Philly profits from HSBC to ING, instead of from Wells Fargo to ING. Long story short: neither HSBC nor ING would reverse this mistake when I realized it had happened because the money was in ACH "limbo," and I had to wait a few days to see whether HSBC would reject the transfer for insufficient funds or not. The customer service representative told me they wouldn't, but according to my online account a few days later it appears they did. And I got charged a $35 fee for the privilege. That pretty much wipes out any interest I earned from ING this year.

I'm not sure yet if ING is also going to charge me. And yeah, I'm pissed. But technically it probably was my fault because I probably picked the wrong account from ING's drop down menu. Or maybe it was ING's fault -- their e-mail confirmations don't include the specific accounts so maybe I did select the right account. Who knows.

Anyway, now I'm trying to figure out what I'm going to do about my banking. Clearly this system is ridiculous and I have too many accounts to balance every month, which drives me nuts. We also don't have the Philly house to worry about anymore, so that's one less account to have to manage.

I think I'm going to close out my HSBC account altogether. I'll transfer a big wad of cash to the joint Wells Fargo account to cover renovation costs, and just accept that I won't earn any interest on that money. I still need to find an alternative to ING, however, but surely there must be an option that would offer more convenience and more interest. Why do I have to wait weeks to get my money for a paltry 1.3%?

Suggestions?

But that's where I've been all week. Waiting on hold to argue with bankers in India or China.

Wednesday, October 14, 2009

Bad news Wednesday

Here are a couple of gloomy articles for your Wednesday:

First, MSN discusses how we young'uns have fared the past several years: For young adults, a decade lost?

Then the New York Times profiles a 34-year-old airline pilot whose pay got cut in half: Still on the Job, but at Half the Pay

Hmm. I've had a relatively good decade but it's involved a ton of hard work. I've also made choices that provide a decent amount of financial breathing room, such as not having kids, working a "real" job (instead of continuing to freelance as an artiste), and moving to a low-cost (unglamorous) city.
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Going through two rounds of layoffs in my marriage also taught DH and me to keep our living expenses to one income. You just never know what might happen.
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Thankfully things seem to be on track now. But I still like to prepare for worst-case scenarios, just in case.

Tuesday, October 13, 2009

It got worse




If you thought the light, pretty snow we got over the weekend was bad, you should have seen the stormy mess I woke up to yesterday. But I refuse to give up my bike commute. It's only mid-October! So being a masochist, I biked in anyway. (DH stayed home "sick.")

Temperature-wise, it wasn't bad. I had just the right amount of layers on to stay warm, and as DH pointed out, the good thing about snow is that it means it's not actually that cold. Just wait until the real winter months when it's too frigid to snow, he said. Somehow that's not terribly reassuring.

But my list of things to buy is rapidly escalating. I managed to find the wool socks and face mask DH gave me last Christmas, but now I need more wool socks, goggles, base layers, and another ankle thingy to hold my pants down so it doesn't get stuck in my chain. (Rolling the pants up isn't really an option because then my leg freezes.)

Just a couple of weeks ago, I was wearing shorts and tank tops for my commute. Supposedly it's going to be 60 this weekend.

I'm off to find a widget thing for this blog so you can track the crazy temperatures with me. And if you hear reports of a recent transplant murdering her husband with her bare hands for dragging her to the tundra, it wasn't me.

Monday, October 12, 2009

$10,690

We finally sold the stupid Philly house and got the check via certified mail. For the record, I don't think our "profit" of $10,690 was worth all the aggravation, especially considering I still have to pay myself back for three months of carrying costs while it sat on the market (about $3,000). But at least the house is off our backs.

Between dealing with deadbeat tenants, traveling back and forth from New York to Pennsylvania to evict and clean, and handling random emergencies (e.g. non-working furnace, leaky roof), the stress really took a toll. Then even selling the house was a nightmare, since that process took a lot longer than we expected and we worried that we might lose even more money as housing prices collapsed. Fortunately we came out in the black.

In terms of benefits, we got some tax breaks for a few years, but our profit is less than DH and I gross in a month at our day jobs. Totally not worth it! Perhaps if we were going to own the house for the next 20+ years and pay off the mortgage with rental income, it would then provide an income stream in retirement. But we couldn't do that long-distance.

I think the only person who made out pretty well was the real estate agent. He got a commission when he sold us the house and again when he sold it for us less than three years later. I see why people give up landlording and decide to just invest in stocks.

The only good news may be that the bank might still owe us escrow money of about $1,000, which will help us buy a new laptop, since ours is going kaput. Other than that, the extra money is going to be quickly absorbed by our renovation fund. It's certainly not enough to buy another investment property. Which is probably a good thing...

Sunday, October 11, 2009

Here's what I woke up to this weekend



Yes, ladies and gentlemen, that is snow. On October 10. I knew there was a catch.

Thursday, October 8, 2009

I'm baaaack

Truth be told, I've been back since Tuesday a.m. but have been too exhausted and swamped at work to post anything here. Note to self: no more red eye flights! I say that EVERY time...

My love affair with the Bay Area lasted about 24 hours. I imagined getting a small home where I could retire one day, or at least a condo of some sort that I could escape to during those cold Minnesota winters. But then my fantasy started to crumble when DH and I tried to take BART from Berkeley to Oakland, and we saw that it would cost us over $7 EACH round-trip to travel from the East Bay to San Francisco. That. Is. Insane. There is no bike lane on the Bay Bridge.

Then I checked real estate prices and, well, DH was right to tell me we were never going to live in California again.

But as a tourist, the Bay Area was terrific although it's interesting to notice the changes over the years. I'm sure it's a combination of the city changing and me changing, but I feel like my perspective was a lot different this visit. For instance, when I first moved there from Chicago I thought everyone was too laid back and relaxed, and I wanted a "bigger" city. Then when I visited while living in New York, I felt like it was fantastic to have the benefits of a big city without all the insane hustle and bustle, and at such a reasonable price. But now, visiting from Minneapolis, I definitely felt a more stressed and chaotic vibe than I remembered, not to mention higher prices and more people! I must be too used to Minneapolis because it just seemed so friggin' dense. And that reminded me of NYC, which of course annoyed me. I used to think Chicago was more like New York but now I'm thinking the Bay Area is.

I also wondered if the insane cost of living there and lousy economy is finally taking its toll on people -- people just seemed more...stressed? I don't know. I'm probably projecting because I was so outraged over BART prices.
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We visited our old rental neighborhood, Rockridge, which is at the northern tip of Oakland on the Berkeley border. (When we lived there people would gasp that we lived in Oakland.) I remember that it had one nice commercial strip when we lived there, but now there's a Trader Joe's, tons of yuppie grocery stores and restaurants, and other overpriced shops that appeal to people who can afford to pay $799k for their starter home. (Like one store with $12 fair trade coffee cups.)

Yes, ladies and gents, I peeked at real estate prices in Rockridge and walked by quite a few bungalows for sale. Two in particular caught my eye because they were across from our old rental building. They were on a busy strip next to the freeway, hadn't been updated since the 1960s, had less than 1,500 sf each, and were each asking nearly $800,000. And they were advertised as "starter homes." If someone could please explain to me who is buying these places, I'd love to hear it. Even with our nearly six figure profit from our Brooklyn co-op, there's no way we could have afforded one of those homes. I thought the real estate bubble burst and California was in a crisis?

But it was fun to visit and the French Hotel in North Berkeley was, once again, fantastic. (I love imagining that it's my own personal pied-a-terre.) Compared to the hostels where DH and I have stayed in other cities, it's the epitome of luxury for us. Cable TV, a balcony, fridge, a coffee shop downstairs -- all for $95/night in a great location! But the online reviews are pretty harsh so it's not everyone's cup of tea.

I also looked up a few gorgeous homes near our hotel, including one that had sold in 1998 for $300k. That just about broke my heart because DH and I were there in 1998 but he was a full-time student and I was making $20k/year, so we couldn't have bought anything anyway unless our parents wanted to give us the money. But compared to prices today, $300k sounds like the deal of a lifetime.

But enough about real estate. Other highlights include fantastic pizza at the Cheese Board (a few stores down from the French Hotel), fancy lunch at Chez Panisse (I was unimpressed after all the hype; pizza at the Cheese Board was better), tons of Bianca Mochas (Caffe Strada!), two mainstream movies (most of the indie movie theaters we loved while living there have closed and video stores all seem to be yoga studios now), our favorite Mexican restaurant (La Fiesta), two tap houses (Manny's was my favorite), and two brewpubs (Jupiter was my favorite).

We headed to San Francisco one day and had our favorite sandwiches from Freddie's, but honestly there wasn't much else there we wanted to do so after hitting the tourist spots we headed back to the East Bay. And I forgot how much of San Francisco is simply...nasty? Somehow we ended up walking blocks and blocks of skid row and it wasn't pretty. (I worked in the Tenderloin when we lived there so it's not like I didn't know what to expect, but sheesh! Once again, compared to Minneapolis...)

I'm sure I'll be back to visit again soon but am taking a break from California Dreamin'. At least for now.

Friday, October 2, 2009

I'm hearting Berkeley

In case you didn't notice in my monthly spending report, I'm actually away enjoying the San Francisco Bay Area. DH and I wanted to relive his carefree college days (pre-mortgage, pre-cats) and we couldn't resist the $99 round-trip, direct flight. I saved $600 for a hotel and $50 for airport transit, and DH came up with $400 in spending cash and $100 for a cat sitter. We're good to go; five nights!

Be back next week. Hopefully I won't regret the red eye (there's always a catch to cheap tickets, and every time I take a red eye I say never again...until the next great deal comes up).
If only Bay Area real estate wasn't so friggin' expensive...

Thursday, October 1, 2009

September Spending Report

Have I mentioned lately how great it is having full-time income again? Here's what my numbers looked like for September.

September Income:
  • $4,133 Day job (woo hoo!)
  • $200 Prescription reimbursement from DH's FSA
  • $150 Prescription reimbursement from medication foundation
  • $16 Survey check
  • $100 Birthday cash

September Expenses:

  • $1,500 Extra payments to mortgage principal
  • $18.31 Netflix
  • $500 Student loan
  • $5.95 Angie's List
  • $8 Prescription co-pay
  • $107.78 Prepaid phone minutes
  • $20 Tree House charity
  • $700 ING savings
  • $274 Pocket money
  • $134 Haircut, highlights, product & tip
  • $206 Groceries/toiletries
  • $20 Mittens (the temp dropped suddenly and I was desperate)
  • $162 Restaurants
  • $30 Shoes
  • $34 Renaissance fest
  • $50 Sweaters
  • $12 Plants
  • $650 San Francisco trip
  • $84 Bike

Total Income: $4,599
Total Expenses: $4,516

I'm ahead by about $83, despite all my restaurant/bar splurges. Another good month!

And I benefited from a little double dipping. My prescription co-pay skyrocketed to $200/month on DH's plan, which he had set aside in his FSA to cover. But then the prescription company told me about this foundation that would subsidize that, so in addition to getting $200 back from DH's FSA plan, I also got $150 from the foundation. Sweet!

Except then my co-pay dropped to a crazy low $8/month on my new health insurance plan at my job, which means that the $1,700 DH had set aside for his FSA plan for my prescriptions won't be necessary. I suspect we'll be stocking up on condoms and contact lens solution in the next couple of months.

October Net Worth Report

My October Net Worth is trickling up, thanks largely to the stock market recovery. Unfortunately my cash reserves are still being depleted by contractors. On the bright side, the extra payments I've been making to the mortgage principal are making a difference.

Assets:
  • Cash: $31,155
  • Retirement: $129,176
  • Home: $175,750
  • Other Real Estate: $135,000
  • Personal Property: $4,000
Liabilities:
  • Home Mortgage: $137,802
  • Other Mortgage: $131,139
  • Student Loans: $20,243
Total Assets: $475,081

Total Liabilities: $289,184

Net Worth: $185,897

Wednesday, September 30, 2009

I wouldn't pay twenty dollars for that

I'm developing a new theory that the more expensive the real estate, the fuglier it is. Check out this New York Times slide show: What you get for ... $1.3 million

And don't miss the picture with the weird yellow protective cushion covering the fireplace. Do they do MMA in that room?

Seriously.

Not what I wanted to hear

Oh, great. Check out the title of this MSN article: Retirement? Good luck with that

The retirement-savings system in the U.S. is "a failed experiment," said Teresa Ghilarducci, the Bernard Schwartz professor of economic policy at the New School for Social Research in New York.

The U.S. system is "headed for a serious train wreck," said John Bogle, the founder and former chief executive of the Vanguard Group, in testimony to a House committee hearing on retirement security in February.

Separately, Ghilarducci and Bogle have called for substantial changes to the current system, but even those who like what we've got now say it needs improving -- and certainly demands better financial education be offered to savers.

"Many people are very overwhelmed with the notion of retirement," said Gregg S. Fisher, the president and chief investment officer of Gerstein Fisher, a financial advisory firm. "How much do we need to put away? Where should it go? How should I invest?"

Tuesday, September 29, 2009

The good life

DH and I burned a fire in our fireplace last night. We used to have to rent a car and drive two hours to the Berkshires to get that kind of luxury.

Granted, the fact that it's cold enough -- in September -- to require a fire is another story. Just the trade-off of living here, I guess. Summer is over.

It's been a little more than 4 months since I moved here and much to my surprise, I haven't looked back. We've been able to make lots of new friends (despite the rumor that Minnesotans are an insular bunch), the job stuff worked out great, and the new house is fantastic. We'll never need to trade up and our total monthly costs are just a little more than we were paying in Brooklyn.

Actually, now that we've rented out our garage for $150/month, we're probably paying less. And if I keep up my extra principal payments, we're on track to pay off the mortgage in 6 years.

We have access to everything I always wanted to do in NYC, like museums and restaurants. But instead of having to schlep an hour each way on the subway and spend hundreds of dollars, we can walk or bike most places in minutes and pay just a fraction of the cost.

I was reading Time Out New York last night and they profiled a bowling place in Brooklyn. One game of bowling costs $30-$50. My jaw dropped; I forgot how insanely expensive everything is there. I was just so used to it.

For the same salary here (and a lot more in DH's case), we can afford to do so many great things. For example, during happy hour (all day Monday-Friday) DH and I can split a huge plate of nachos and get two margaritas each for under twenty bucks. All within a couple of blocks of where we live. What else do I need in life?

I guess the only downside is that it's not New York. Thank god for that.

Sunday, September 27, 2009

This must be why higher ed costs so much

For some reason I found the New York Times' interview with the University of California president rather hilarious. Just ignore the part about his $120k/year housing allowance: Big Man on Campus

The word “furlough,” I recently read, comes from the Dutch word “verlof,” which means permission, as in soldiers’ getting permission to take a few days off. How has it come to be a euphemism for salary cuts?
Look, I’m from West Philadelphia. My dad was an electrician. We didn’t look up stuff like this. It wasn’t part of what we did. When I was growing up we didn’t debate the finer points of what the word “furlough” meant.

How did you get into education?
I don’t know. It’s all an accident. I thought I’d go work for a law firm.

Some people feel you could close the U.C. budget gap by cutting administrative salaries, including your own.
The stories of my compensation are greatly exaggerated.

When you began your job last year, your annual compensation was reportedly $828,000.
It actually was $600,000 until I cut my pay by $60,000. So my salary is $540,000, but it gets amplified because people say, “You have a pension plan.”

What about your housing allowance? How much is the rent on your home in Oakland?
It’s about $10,000 a month.

Does U.C. pay for that on top of your salary?
Yes, and the reason they do that is because they have a president’s house, it needed $8 million of repairs and I decided that was not the way to go. Why the heck would I ever authorize $8 million for a house I didn’t want to live in anyhow?

Why can’t you have architecture students repair the house for course credit?
Let me ponder that.