live below my means

I need to be more careful about getting things taken care of on time. I have done this 3x recently. Just in a few months being forgetful = $100.

I bought a new washing machine and had a rebate coupon to cover the delivery. The washer cabinet was bent – me and the delivery guys played phone tag for 6 weeks to get another one delivered. When I finally remembered about the rebate – it had expired after 30 days. It was for $50. Not good.

I got a $5 parking ticket for “not properly displaying commuter permit.” It was on the floor of the truck… you could still see it – but it wasn’t on the dash as they like. I forgot to appeal it and/or pay it. After 10 days they add $15 and no appeals are given – $20 out of my paycheck next month.

I had a $20 off coupon for a new grocery store. It expired before I remembered to use it. I went to the store 2-3 times.

Last month, I ordered a new carafe for my coffee maker. It was the wrong model – my mistake. And, I didn’t mail it back within the 30 day time limit for returns/replacements. Now – all I can do is donate it to the thrift store. It was only $15 – but I have spent $15 and still don’t have a carafe for my coffee maker!

I did get a rebate filled out for a new ice cream maker – a $20 gift card came in the mail last week and I have already used it up.

I just need to be more aware of time limits and deadlines – I am costing myself money!

I have added an entry to my calendar to meet with my financial planner every six months. I have told him of this goal also and asked him to contact me to set up an appointment. This is mostly for my retirement accounts… money I never touch—but I need to check on how it is invested more often than every three years or so.

A friend that owes me a large sum of money has gotten a mortage and the bank will be send me a check on Dec. 27th.

The loan was so she could build a small house. If you want to build a 2000 square foot house you can get a construction loan from the bank. If you are building a 540 square foot house you can’t.

I am very glad that I could assist. But I don’t think I’ll do this again. We had everything in writing and I held a Deed in Trust, etc. —but it took three years instead of the 6 months we expected. It was more worrisome than I expected too. (Every knock my 12 year old truck made prompted panic, “what if my car dies and I need the money???”) I realize now that I was living beyond my means to loan someone that much money. I was glad I could help my friend however and I am very proud of her and her house.

I was once horrid about not getting checks in the mail on time! I’d have the money but forget to mail the letter. Classic ADHD!

I set up all my bills to be charged to my VISA card monthly. The automatic bill pay alone saved me $300-400 a year in late fees. The water bill had a $25 late payment charge 3 months out of 4!

Then I went three steps further:

First – I got overdraft protection for my checking account. I no longer needed to keep a $250 cushion in my checking account since I wasn’t writing checks anymore. I belong to a credit union, so I am not charged for going below a certain checking balance – it costs $2 per month, period. I just keep $150 in the checking for the electric company bill. They have automatic draft but they don’t take credit cards yet. Plus I leave about $50 in the account to have walking-around cash for the month. That pays for an occasional cup of coffee, newspaper, lunch at Subway, etc. (If I need I can always transfer funds back to the account.)

Second – instead of just letting bill-paying money lanquish in the checking account from the time I get paid until the bills are due (2-3 weeks) – I pay off the credit card on-line as soon as I get my paycheck. The bills are charged to the credit card on their very due date. I am not paying interest on a $1000 balance for 2-3 weeks. I am not paying interest on anything until the bills come through.

Third: I set up a money market account. It earns 4% interest. The money market is what I use for “unscheduled expenses” (my financial advisor won’t let me call them emergencies): tires, vet bills, prescriptions….

(Retirement and longterm savings and investments are taken out of my paycheck before I get it. It is the only way I can really save any money.)

I pay off the credit card each month, so I pay no interest at all now. VERY IMPORTANT: the balance must be paid off each month. If I don’t pay off the balance and have enough left over to put aside 10% for an emergency fund, then I am living beyond my means. Living beyond one’s means is a stress and fear-inducing prospect. I am not allowed to do that.

Lastly, I did not use the “bill pay” services. They charge a fee usually. I just went to each company’s website and gave them my credit card number and authorized then to charge to it monthly. I do have to remember to change the expiration date when I get a new card.

So, I am easily saving $500 a year – $400 late fees and $100 interest – and a whole lot of unnecessary panic. There is a little more savings for postage. And no gas is burned taking a check to a drop box late at night. My credit rating is very good now – even the water company likes me again.

I know $100 worth of interest doesn’t sound like much… but that is $100 that I am not paying to a credit card company by using money that was sitting around waiting to pay my bills… It tickles me to death. :-)

b.

I am very much looking forward to March 23. I quit smoking March 23, 2005. I have saved $988 in the cost of cigarettes ($4.75 per pack x 4 packs per week) in my wonderful and fantastic year smoke-free.

In addition, I have saved, once I got the toxins out of my body, $75 co-pay on asthma and allergy meds per month. Plus another $20 per month on incidentals: over the counter cough syrup, Humibid, cough drops, mints, tooth whitening toothpaste… .

Previously, I had a major bought of bronchitis or pneumonia about every 6 months. I didn’t usually go the emergency room when I was sick, but I usually racked up a few more prescriptions and breathing treatments. This year, I have had one mild case of the flu – this past week. I didn’t even call the nurse. So add another $100 for 3-4 doctor visits, $80 for 2 prescriptions for antibiotics, and $250 for 10 breathing treatments, and $30 for nebulizer meds = $460 – give or take, per year savings on the illnesses we can directly say stopping smoking prevented. (These are co-pay amounts – add 90% to include the costs covered by my medical insurance.)

I have gained 10 pounds. I ate a lot of chocolate – but I didn’t kill anyone—I didn’t even come close. (And all those years the fear of weight gain and that I’d turn into the wicked witch that ate Cleveland is one of the many things that worried me about trying to quit). I am actually a much happier person – more “in my own skin” – warts bumps and all. So we don’t need to deduct anything for shotgun shells, funerals, bail, lawyer fees, etc. as once so worried about.

So. Totals:
Cigarettes (I am so glad I didn’t buy) $988
Maintenance meds: $75×12 = $900
OTC and incidentals = $20×12 = $240
Doctor visits and meds for illnesses prevented by quitting(this year) = $460
Total $2568

Minus the cost of chocolate = – $200 (It was good chocolate.)
Net gain: $2368

It is sobering. My insurance company should send me to Bermuda or Belize or some warm tropical place to reward me for saving them so much money. (I may be on to something—a new incentive program for work?) It would of been cheaper to go on a tropical vacation once a year than to smoke. A really NICE tropical vacation.

That is the costs I can put dollars and cents to. The true cost of the addiction are beyond sobering. Equally, the benefits of quitting – $2368 is just a spit in a really big ocean.

I wrote this up a while back but the computer must of bombed that night.

I gave up my expensive parking deck pass at work October 1st. I am riding the bus now. I save $48 a month for the permit, and 1/2 of my car’s gas consumption per month. I am getting to ride with neighbors and friends on the bus.

So far it has been easier to do this than I expected. The first 2 weeks were hard as I didn’t have the bus schedule in my head, but after that it has been much easier. I usually miss the bus about once a week—I just don’t pay attention to a clock very well!

If I miss the bus, if I have time between buses, I hike to the next bus stop. I’ll loop the park and ride lot or circle the block… I keep moving at an aerobic pace. Sometimes I can’t exercise (too many things to carry or it is raining cats and dogs). If so, I try to put the time to good use. I’ll call a friend or my mom, or write a note card to Aunt Myrtle.

I need a good backpack for my laptop and an extra sweatshirt and wool socks. I need a sorta medium weight jacket also. I am watching the end of the season sales. I have a Storm Parka from Lands End with a big hood that has been very appreciated.

So far, I haven’t frozen or gotten drenched, but I have needed extra socks. All the bus stops have good shelters to keep us dry. I can wait in the truck at the park and ride lot too.

Total saved since October 1st:

$48 per month for the permit
$25-30 for the gas depending on the price per gallon

b.

In the past 3 months I have been working on giving myself a raise by cutting things out of my life that I can live without but I personally have to change to get rid of. It is easier to live without something that it is to have it and then have to imagine living without it.

Last week I had my land line phone cut off. I had had the same phone number for 22 years.

I am still waiting to actually notice it is not here.

Many friends were upset there wasn’t going to be my voice on an answering machine anymore… but I told them they’d just have to get use to it on voice mail.

The other thing we’ll miss is the entertaiment: every once in a while, a cat would sit on the answering machine. Occasionally the outgoing greeting was: “CHECKERS!!! STOP SITTING ON THE ANSWERING MACHINE !!!! .... wham…. stomp…. stomp…. click!”

There’d be times I’d come home from a long weekend and there would be 62 hang-ups. Maybe someone laughing. It was a sure sign Jasper had sat his haunches upon the answering machine and recorded a plaintive missive: “Meow … Meow … Me-Me-Me-OWWWW!” and friends had called friends and everyone had listen in.

So. My cats have lost this venue for personal expression—it is a bit sad. Life will be a tiny bit less interesting. But my friends will find something else funny to tell stories about.

I’ll let you know if I ever miss the land line. I have gone a week now and haven’t missed it yet.