Assets and Liabilities

Being an adult is not always fun

2009-01-16T12:22:00.003-05:00

I've been putting off a post on this topic, but it's so relevant to personal finance and is behind everything finance-related I am going through right now. So I might as well get it over with!

The S.O. and I have decided to break up. We were not legally married, but we were married in every other sense of the word. The reasons behind our decision are not as important, but it came after a lot of talking and crying together. I think we each have our different reasons, but the fact that it is best for us is one thing we agree on. I will say, though, that we are not very compatible from a personal finance point of view. Being my S.O. is very expensive. He has expensive tastes, enjoys several cocktails and wine with dinner, and needs the latest gadgets and best equipment available, even for a new hobby that (probably) won't stick. That part of our relationship gave me ulcers.

So we sent out an email to our mutual friends. An email is a little impersonal, but we wanted everyone to hear it from both of us, and directly from us (not through the grapevine). So, with everyone spread out across the country, it was the best we could do. Some friends emailed us back right away showing their support, and others are still digesting it and probably trying to let it settle in.

So now we begin the process of dividing and liquidating assets. Not the best market for the real estate side, but relationships don't necessarily follow economic cycles.

We now have two condos and a car on the market. Once they sell, I will move into the one I purchased on my own, before I met my S.O. I am actually pretty excited about calling my own shots again and getting to have the only opinion about paint colors, home improvement projects, furniture selections, how money is spent, etc. And I already have some healthy, frugal things that I hope to start implementing!

I'm looking forward to going back to a simpler life. It will not always be easy, but for the long run, it's the right thing for both of us. I am thankful that we are agreeing to stay a team on this. Of course, going back to being 12 years old would be even easier.

Additional incentives for using cloth bags

2008-12-18T09:03:00.002-05:00

In the trunk of my car, I have been carrying around 3 cloth bags for my groceries. And I NEVER remember to actually take them into the grocery store with me. Until now! And I'm glad that I did. There were several benefits to doing it. First, when the basket I picked up at the entrance got full (they always do), I was able to start putting things in the bag on my shoulder. This move saved my arms from having too much weight on them and distributed the weight to my shoulder, like a purse. Everything I purchased fit into the bags, and I was walking out, scanning my receipt, I noticed that I had received 5 cents off for each bag! 10 cents may not seem like a lot, but I happen to be in the same camp as Madame X over at My Open Wallet in this post. It adds up over time!

But it also got me thinking about the plastic bags themselves at the grocery store. Do they really cost the store 5 cents each? If that's the case, I have about $2 in bags stuffed under the sink in my kitchen. And it costs me 10 cents everytime I clean the litter box, outside of the obvious costs of the litter, the liner, and the scooper. That seems really high, considering the grocery store probably pays for them in bulk. Maybe they wanted something more substantial than the fraction of a cent that the bags actually cost as a reimbursement? Or maybe it's their "donation" for the environment, by offering an incentive that actually dips into the store's pockets. I wonder how the accounting on that looks on their financial statements.

In any case, I may start remembering to actually pull the cloth bags out of the trunk of my car and take them into the store with me, now that there's a financial incentive in addition to the environmental incentive!

OMG-- I'm laughing out loud!

2008-12-01T17:03:00.000-05:00

HAHA! This post over at Punny Money actually has me giggling out loud. If you're in a public place like I am, you have been forewarned! But it's worth it....

Jumping on the Band Wagon

2008-11-30T09:55:00.000-05:00

After a lot of discussion, the S.O. and I have decided to jump on the bandwagon and rent out our place for the inauguration. Our 1 bedroom + den is in downtown DC. But we would definitely have to be reimbursed for giving up our home to strangers for the long weekend! So it may not work out.

There seems to be lot of controversy on the subject. This article in the NY Times shows both sides of the story. Apparently, those who would like to come to DC for the inauguration are upset that homeowners are asking for so much money to rent their homes. I have to say, though, it's a pretty scary proposition! So we'll only do it if we feel like we are getting paid for taking that risk and for giving up our home during such a historic time. Another article in the NY Times, Big Day, Big Crowds, Big Price Tag further clenches my desire to make money off this inauguration. It looks like DC picks up a big part of the tab for the inaugurations; no wonder my taxes are so high!! Of course, that could be easier to swallow if DC residents were to get representation in Congress (someone who can vote, that is)....

Financial Dilemma

2008-11-20T12:58:00.000-05:00

Last night I used a free pass to try out a pilates class. My dilemma isn't as obvious as it may seem between the title and first sentence of this post. I enjoyed the class, but realize that I'm probably going to need more in order to learn the basics and get the most out of the class. So after the class, I lined up with other participants with questions to ask the instructor how much class passes are. The woman in front of me was asking about a refund. She had just found out about a job transfer to another city, and had five classes left on her pass. Overhearing this, I offered to the instructor and the woman to simply buy her out of her remaining classes.

The instructor agreed to this suggestion, but here's where I'm not so sure. The woman who is moving told me that a 5-class pass costs $75, so I could simply give her $75 for the five remaining classes on her pass. However, after she left, it was my turn to inquire about the costs of passes, and I was told that a 5-class pass is $75, and a 10-class pass is $140.

So I'm wondering-- do I owe this woman $75 or $70 (half the price of a 10-class pass)? The way I see it, I'm doing her a favor and it would already be generous of me to simply reimburse her for what she can't use. But now she seems to want $75, giving her a $5 profit. I know that it's only $5, and I'm trying to just let it go. I haven't given her any money and plan on meeting with her on Monday.

As much as I try to let it go, I can't seem to think about what $5 could buy me. I could buy 2 gallons of gas, or lunch out during the week (instead of bringing my lunch).

I think that, for my own peace of mind, on Monday I need to offer her half of what she paid for half of the classes she purchased. If she doesn't like it, I could buy my own 10-class pass and leave her unreimbursed.

WWYD?

Greed and fear in the marketplace

2008-11-02T09:51:00.000-05:00

"We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful."
--Warren Buffett

This is a quote that I discovered about 10 years ago. It rang very true with me and follows my beliefs on investing. When times are tough, it is a tough rule to follow. Of course, I often wonder what people thought "deals" on investments, whether it's with the stock market or real estate, would look and feel like when they claim that is what they are waiting on. Instead, they seem to wait until an environment feels "good" or "comfortable" before they act. The result is often closer to "buying high" and "selling low", when the strategy should be the other way around.

Seeing all the fear in the market right now, I have been pumping as much money as I can into my retirement and other investments. They continue to go down, but I am very well diversified and know that all this "buying low" will pay off in the long run. I am at least 25 years away from being able to tap those investments anyway, so I am in it for the long term.

I received an email from ING direct promoting a sharebuilder account. By opening an account with $100, they would add another $50. I know that this must mean they are not seeing many people investing right now. Another example of being "greedy" when others are fearful, I promptly opened an investment account with Sharebuilder and expect to see $50 added to my account in another month. Sounds like I good return to me!

If you are interested in taking advantage of the fear in the marketplace, and the above quote by Warren Buffett rings true for you, the code is ORANGE50CASH when you are opening the account. You have to place a trade before 12/31/2008. I don't get paid for promoting this program; I am just putting it out there, in case there are others who share my philosophy on investing.

2008-09-24T11:24:00.000-04:00

I am desperately trying to kick this cold before the weekend. I welcome any frugal suggestions.

Who knew eBay could be so entertaining??

2008-08-15T10:35:00.001-04:00

The S.O. and I have the unenviable task of cleaning out our storage units. We own the storage units; they are deeded to us in our condo building, so they are not costing us additional rent.

Normally, we would pile up everything we no longer need (which is more than we are willing to admit right now), throw it in the back of the car, and deliver it to Goodwill.

Inspired by this series of posts over at In Debt Because I Like Nice Things, I decided to try eBay.com. I have posted eight different items in two different "rounds". I wanted to learn from each round, rather than post everything at the same time. For the first round, only one item sold out of three items posted for auction. I actually lost money because it sold for less than I owe eBay for the listing fees.

For this second round, though, I am seeing some bidding wars. How fun is that? The buyers pay for postage, so it doesn't really matter what I sell them for (I figured out how to manage my insertion fees, so this round will pay for both rounds of insertion fees). Anything that doesn't sell will just go to Goodwill anyway.

Meanwhile, I'm entertained. My goal is to get one full storage unit emptied out and rent it to someone else in the building. While the stuff that is in there would be considered an "asset" on a balance sheet, I consider this stuff a liability. With an opportunity cost of additional earned income of $75 to $100/month.

Sooo Much Fun! If not extremely pricey.

2008-08-10T15:56:00.000-04:00

I ran my first 5K with my sister when we lived together about 8 years ago. Then I changed cities, stopped running, and focused on other things (like being newly single for the first time in a while).

As I approached my 30th birthday, I knew I needed to do something special and different. And try to not spend the first day of my new age hungover.

So I signed up for a marathon. I found one in a city I am very familiar within a week of my birthday. Check and check. I found (suckered) an acquaintance into training also (together during the long runs on the weekends). The first time we had to go as far as 10 miles, it was ten degrees outside and we stopped every now and then to knock the frozen sweat off each other when it started to feel heavy.

We accomplished that goal with a great experience and an added benefit of a week's worth of endorphins. I immediately signed up for something a little more adventurous, knowing that I could handle it after having run a marathon. Another couple of years passed, and I knew it was time to start training again. So I did and I completed the New York marathon.

It's two years later again, and this time I didn't feel like training for a marathon. I needed to shake things up a little. So I decided instead to do my first triathlon! I completed it last weekend and I had a BLAST.

What does this have to do with personal finance? Everything! Holy cow, are triathlons expensive! I was fortunate to complete the race having only spent a total of $556. It was out of town for me, so that includes a hotel stay. But I'm sure that many people had to spend way more on their equipment and travel. It's really fun, though, so I will probably see more of those in my future!

Times are Tough. Here is what we have been doing to help (financially).

2008-08-08T16:53:00.001-04:00

Every year, before the heat and humidity set in here in D.C., I fear it. I know that it will mean endless applications of sunscreen, hibernation in the A/C, and even taking an extra shirt to change into at my destination. (Gross, I know.)

But for as much as I absolutely do NOT look forward to the heat and humidity that is summer, I always adapt to it eventually. This is a gradual process, and one day I realize I've adapted. Today was that day, and I found myself freezing in the A/C at home and was able to turn it down (great for the electricity bill!).

I don't think that I'm unusual; I think most people adapt eventually to whatever extremes they are faced with.

But I feel like we (Americans) are not getting used to the shockingly higher gas prices, and the trickle down effects like higher food prices, higher postage prices, higher anything directly affected by the gas prices (**this is me trying to think of something not affected by higher gas prices**). We're no exception.

And it's a little scary. I like the standard of living we've built up to in our mid- and late-30s. So, now that things are more expensive, does it push us back a notch with what we're used to? Maybe "yes" for now, but forever? I don't know. But it does make me want to "hoard" things. Like when I recently bought 8 boxes of our favorite generic cereal Crunchy Nuggets because each box was half price. Or the bigger bags of cat food I'm buying just in case the prices go up even more. Or the fact that I bought 5 extra tank tops of various colors that were majorly on sale after my first one showed up in the mail and I found myself wanting to wear it everyday, for working out and for casual wear.

What else have we done? The changes that the S.O. and I have started to make are small, but we hope that, in the aggregate, these things make a bigger impact. So that we don't have to give everything up, but just cut down.

Here is what we are doing:

Cut cable back to basic cable. The reality is that it's summer time, and we should be outside enjoying it. Savings: $80/month
Cut back our housekeeper from once every two weeks to once every four weeks. I know that many of you are groaning over this "sacrifice", but the reality is that it is a relationship-saver. The S.O. likes things tidy constantly, and I will de-clutter and call it "cleaning". The fact that I came as a part of a package with my cat doesn't help matters. Savings: approximately $100/month
Piggybacking on #2, a condition of my beloved kitty and S.O. coexisting in a 900 square foot apartment was to get him (the cat, not the S.O.) shaved regularly. I love his big mane and didn't want to do this, but the reality is that he comes alive after being shaved. And hairballs are much fewer. Anyway, back to the point. Instead of having the vet shave him, I invested in a pair of $80 pet clippers and do it myself. Savings (before the cost of the clippers): approximately $15/month
A/C. We have a programmable thermostat, which already helps control our electricity use, but we upped each program by one degree for each programmed time period. Savings: Don't know yet, but we may still see an increase in our bill due to rising costs.
Driving less. I occasionally need my car for my job, but when I don't have to be dressed up, I ride my bike instead. I used to fill the car with gas once every two weeks or so. Now it's once each month. Savings: $45/month, priceless for the environment, and absolutely priceless for my fitness level!
Netflix. As a part of our condition of lowering cable, we upped our Netflix membership. We like to get into TV series that we missed. Right now we're plowing through Arrested Development. This costs an extra $5 each month, but it means no more pay-per-view and the lower cable bill. Savings: this move will actually reflect an increase in monthly spending, but we hope that it will provide a cheaper option by having our "thing" we do to replace going out for expensive cocktails or going to the movie theater on a $20 "date".
Eating out. We love to eat out. The S.O. enjoys cooking, but I prefer to have someone else do the dishes! We've been cooking at home more. Savings are to our finances AND our waistlines. Sure, we use a little more electricity, but dinner for the two of us, with wine, can consistently be $100 each time in the city. I doubt we're using $100 worth of electricity and food bills. I think it's the drinks with dinner that drive up the cost. We can buy a nicer bottle of wine to drink at home with our meal. And we've even gotten closer to our neighbors by inviting them over to join us! It's been fun, and less $$. How much? Unmeasurable at this point, but every little bit helps!

I'm sure there's more, and I'm always trying to think of other ways to save a buck without changing our standard of living or making things feel like too much of a sacrifice. Extreme sacrifices always make me wonder why I even go to work, if I can't enjoy the compensation and rewards from it. And these changes feel a little extreme now, but we will probably one day wake up and realize that we've adapted to them and they no longer feel like cutbacks.

2008-07-02T13:01:00.000-04:00

Sometimes, no matter how hard you work, no matter how much you try to do for other people, no matter how good your intentions are, it's still not good enough.

And others think you walk on water.

Another side effect of a bad economy

2008-05-28T15:28:00.001-04:00

One of my biggest worries when there are talks of a bad economy is crime. I remember when my local economy at-the-time was tanking one year during the Christmas holidays (still trying to remember which year that was-- maybe 1999 or 2000), and people were experiencing an increase in break-ins and thiefs were stealing wrapped Christmas presents. An economy where people are losing their jobs means that they are going to look for an alternative way to feed their kids and continue their own survival mode.

Yesterday I felt like the state of the economy was slapping me in the face. Because of a really busy work schedule over the long weekend, I decided to sleep in on Tuesday morning and skip my morning workout. Instead, I was awakened by my cell phone ringing. Thinking it was a client, I answered. It wasn't a client, but the fraud department at my credit card company. Someone had spent a lot of time on iTunes over the weekend with my credit card! The card company eventually started declining the charges on my card, but there were still many of them.

I verified that those weren't my charges, had the card cancelled, and verified my mailing address for the new one. Great. I hung up the phone feeling annoyed, but grateful that it had been detected so early and that they were calling me without me having to call them.

So, I continue on with my whirlwind day and head to the office, then to where I'm working, only to discover that we had had a break-in there over the weekend. No problem-- the right people were on it. Still annoying.

The kicker was when I got home to go for a bike ride. I drove into my nice, secure garage, wound around to my assigned parking space past nice cars and bikes, only to discover that my BIKE had been stolen! At this point, I'm furious. And annoyed. And feeling violated.

It's going to take me a while to snap out of this. I'm normally an optimist, but at this point I'm really tempted to hole-up at home with my cat and keep watch over my domain and my safety.

Sheesh....

All-In-One, oh yeah

2008-05-21T21:01:00.001-04:00

Today I reached my breaking point for not having all the technology I need at my fingertips. I have been an independent contractor for almost 1.5 years, and didn't want to go past buying myself a laptop and printer.

With all of the signatures and paperwork involved in what I do, however, I was finding myself constantly taking a journey to use fax machines and scanners. This takes up a ton of time, which I'm finding to be more and more valuable. (Guess what my answer was to Single Ma's lastest question???) Not to mention the occasion fee here and there. It's usually about $2-$5 each time, but these things add up. And it's harder to keep track of the receipts for tax write-offs.

So after spending time at/traveling to Kinko's yesterday and UPS Store today, only to find that their equipment isn't compatible with the Deposit at home feature, and realizing I was facing a 3-day wait for a commission check to be deposited into my bank (USAA), I decided that I had had enough. I found myself walking to the nearest Staples in downtown DC and buying a scanner. With a scanner, I could take advantage of Deposit at home, and no longer wait for the mail to get my checks there. And have to stay on top of it to make sure it was deposited, etc.

After several conversations with the friendly help desk at USAA, I finally decided on an HP all-in-one. It cost $129.99 and offered a $30 rebate. AND, I now have a fax, scanner, and printer in one little compact machine. Being extremely averse to technology, I was only motivated by future ease and convenience. But I managed to get everything hooked up before the S.O. got home. If I had known that such a simple purchase could make me feel so relieved and happy, I would have bought it sooner! $99 is a small price to pay for getting my deposits in the bank sooner and not having to go into the office at random times to fax or scan a document.

AND I even saved more money by carrying it home. It was a little awkward, but knowing that I wasn't paying an expensive DC taxi to take me 9 blocks was worth it. And it's about time I start seeing a return on all of this exercise that I've been paying for!

Big Budget Buster

2008-05-21T20:44:00.001-04:00

Have you ever signed up for a running event? I am not an athlete, and it is a huge mind game for me to get a long run in. I have run two marathons, but it still feels like a chore to go out and run. I am a procrastinator of all procrastinators.

But I found one way to get myself out there, and it's by signing up for races. My very first one was the Race For the Cure. My sister and I were living together at the time, and we bought a new book called Running For Women and followed the 10-week program in the book for training for a 5k. We did the once-a-week long runs together, and were well-suited to run the 5k side-by-side. The whole way. Without stopping. 3.1 miles. At the time, we felt very important and athletic, and couldn't believe all the free stuff we got afterwards.

That race was huge incentive for training and becoming healthier. But later on, as I started adding longer races, I had to stop signing up for the shorter ones because of the expense. You may get plenty of bagels and a T-Shirt and other free stuff, but definitely not $30 worth!

These days I compromise and sign up for the occasional race to give myself something to look forward to. And I will probably do the Race for the Cure this year for old times' sake. I have also started donating the T-Shirts to a local shelter. It is just occuring to me now, but I should also ask my tax guy if I can write them off as a charitable donation.

Day by Day

2008-03-30T22:51:00.000-04:00

Have you ever stopped to think about the daily cost of simply being you? I mean, outside of the budgets for variable costs that PFbloggers keep up with such as groceries, electricity, etc, what about those fixed costs on a daily basis? I am thinking mortgage/rent, car payment, insurance costs, condo fees, etc.

It is a little depressing to calculate these numbers. On any given day, my condo fees alone are $12. That means I could wake up, have a bad day, hope for the day to end quickly, not spend any money, and still owe $12 on condo fees alone.

I work on commission, so it doesn't make sense for me to think about money spent on a daily basis. Or on a weekly basis, really. I have to think in terms of the entire year, which is tough for me to get used to.

How much does it cost to be you on a daily basis, bad hair day or not??

Prosper. Ugh.

2008-01-11T12:11:00.000-05:00

I am quickly losing confidence in what I used to think was a great idea. Maybe there's a reason that these borrowers aren't going to a bank or people they know for a loan?

I made my first loan in June 2006 and wrote about it here. It's been about a year and a half, and since that first one, I've made a total of 6 loans. One defaulted, and I received about $1 from that (on a loan of $51.86). One is considered "late" with $72.51 in principal left on the loan, and one is in collections with $40.05 left that she owes me. On a more positive note, 2 paid off early (an "A" rating and an "E" rating), and one is still current. I will never make back the $186 total that I've loaned over the last year and a half. I'm so glad I was only experimenting and stuck with loaning only what I could potentially lose.

The biggest loss from this experience isn't necessarily the money, though. It really disappoints me that people won't honor their debts. I don't get it. And I won't be putting any more money into prosper.com. I have about $36 sitting at prosper in cash. I will probably transfer that over to Kiva.org and help someone really make a difference in their life. Hopefully that will raise my confidence in humanity.

Follow up on 41 Pounds

2008-01-07T22:04:00.000-05:00

Reader Shaun made an interesting point when he commented on my post 41 Pounds:

I hate to say it, but you could have done the same thing yourself for free.. Simply write a letter to the Direct Marketing Association and ask to be taken off their mailing lists. You might even be able to do this online. Also, each time you get a catalog, call the 800 number listed in it and ask to be removed from their mailing list. It will take a while (catalogs are printed months in advance), but you will definitely cut down on junk mail.

This is an interesting point, and that's great information to know how consumers can do these things on their own. It will be interesting to see if enough people join 41 Pounds, to see if it's enough of a service added and survives as a company. And while it may require the same effort on my part to use either method, 41 Pounds is more marketable. Will any marketing lead to more people participating? If so, that's already a "win" for the environment. And instead of calling each 800 number on a catalogue, isn't easier to let someone else do it for me? Would I have to stay on hold if I called each company, taking even more time from me? Maybe their service saves time by taking care of several addresses for clients at once.

I don't know the answers. So far, the service has been great. Now, if I come across a new catalogue in my mailbox, I send an email to 41 Pounds with the name of the company and the name it was addressed to and they take care of it. I usually get a quick email back within a few hours.

What would you do? Has anyone else signed up for 41 Pounds?

Ok, peer pressure....

2008-01-03T11:06:00.000-05:00

I am feeling a strong pull toward setting my 2008 goals. I've never been good at this, and I think it's probably interesting to explore why that is-- fear of commitment? Fear of failing? Anyway, the reason why is for a different blog, but I am going to do it here. Mapgirl and Singlema are using the SMART method to set their goals. This is something that companies push all the time, and I have always seen it as another HR gimmick. But I have to admit that seeing MG and SM use this method makes sense and I can see why it can be a useful tool.

So here goes, SM and MG style:

1. Beef up Emergency Fund. Now that I'm on commission, it would be better to have more than the 2 months worth of living expenses that I have now.
Specific: Save another $9,000 in the emergency fund.
Measurable: Set up automatic deductions twice each month into the emergency fund.
Achievable: $9,000 divided by 24 equals $375. Set up deduction of $375 on the 5th and 20th every month.
Relevant: Yes, because having an extra $9,000 in the account would be smart financially.
Time-bound: With the automatic deductions, there will be an additional $9,000 in the EF account by the end of 2008.

2. Research and save for a class to take. I've been considering taking an economics class. I live in a place where there are many schools to choose from, it would be good for my job, and, frankly, I just enjoy this topic. I've been seriously considering it since June 2007, and I've already taken a few steps toward finding out more about what's out there. I just haven't taken the plunge and signed up for it.

Researching a class:
Specific: Find a suitable class. Economics is what I want; maybe it will count toward an MBA later if I decide to go that route?
Measurable: I will spend one hour every Wednesday dedicated toward taking a class. I am not sure what this entails exactly, but I need to dedicate the time to figure it out. I believe it will include internet research, talking with referrals, visiting campuses, etc.
Achievable: Not sure what I'm supposed to put here. It's something that I've been wanting to do; I need to dedicate time to figure it out and sign up for it, etc.
Relevant: It will make me feel like I am still growing as a person.
Time-bound: I will be attending a class Fall 2008.

Saving for class:
Specific: Save money for an economics class.
Measurable: I have no idea. This one will have to stay a little flexible, but for now I’ll say $2,000
Achievable: $2,000 divided by 16 (8 months, twice each month) is $125. Automatically taken on the 5th and 20th every month.
Relevant: Yes; I want to pay for the class before I take it (not on credit!)
Time-bound: Assuming the class starts in September, my automatic deductions will add up to $2,000 by the end of August.

Those are my SMART goals. Obviously I’m starting small! Other goals, not necessarily PF-related and in no particular order:
--Challenge myself physically with triathlons this year. I am confident that I can do this, especially the running and biking portions. Swimming is a challenge for me, so I started swimming lessons yesterday!
--Take advantage of the commission-based job and make enough money in the first part of the year so that I can take the rest of the year to travel and only work if I feel like it. I don’t feel like this is a SMART goal for this year, but I’ll keep it in the back of my mind and possibly set it for a 2009 goal.

Walk Score from Madame X

2007-11-27T10:28:00.000-05:00

Madame X over at My Open Wallet wrote a post on the "walkability" of where you live. In keeping with my green mindset recently, I went straight to the website to see what my condo's walkability score is, and it gave me a high score of 98 out of 100! I use a lot of the places that were found in the map search, including my grocery store, gym, coffee shop, drug store, and movie theater. Other places are a little sketchy, and while they helped the score, I probably wouldn't go to them for safety reasons.

My S.O. and I own one car for the two of us, and my job requires me to drive occassionally. I am a little more dependent on my car than I would like to be, but I try to not drive when I really don't have to.

41 Pounds

2007-11-26T20:32:00.000-05:00

Every Christmas season I get inundated with catalogues and promotional offers. For this year, I came across a website that offers to keep my mailbox free of solicitations and catalogues (the ones that I request) for 5 years. The purpose of the website is to create less waste in the landfills and to help preserve natural resources. They claim that the average adult receives 41 pounds of junk mail each year!

Fantastic! I immediately went to sign up for this service and discovered that it costs $41. So I gave myself a couple of days to think about it, and decided to do it anyway. Definitely an example of a purchase that is more environmentally-friendly than frugal. But maybe it will come back around? If catalogues are produced and more people shop online, could prices reflect that? I hope so. Either way, I'm doing my part and that still feels pretty darn good!

This is a good time of year to test the service to see if the solicitations/catalogues slow down or stop. Any improvement will be noticed!

Vacations are great...until they're over

2007-11-16T12:54:00.000-05:00

I'm back from a fabulous vacation, and reluctantly easing back into the real world. I was on a bike tour of Thailand, and I was really amazed at how eco-friendly the small villages were. They are able to produce their own food (rice, fruit), and sell it too. And they used every piece of everything they had. The trash cans they have at the curbs are TINY. At one point I had a gum wrapper that I needed to throw away, so I asked a vendor if I could put it in their trashcan. The look I received could be best described as deer-in-the-headlights. Me handing her trash was actually going to be a huge burden on her. I quickly rescinded that request, and bowed and thanked her in Thai.

And riding 60-80 miles a day for 10 days was not so bad for my fitness level either! I'm definitely a better cyclist as a result.

Back to the grind, but I hope that everything I learned about Buddhism can filter into my life going forward.

2007-10-24T17:10:00.000-04:00

Ugh-- this real estate market is a BEAR! I know that things will get better, but it's frustrating to work harder than ever and not get paid! This season is definitely a good example of why an emergency fund is so important.

In other news, I paid off the car. We had originally borrowed $18,000 to purchase the car, but started paying down principal immediately. So we were stuck with a monthly payment equal to owing $18k, when we really owed $10k. With a such a crazy (read: unusally dead) market, I was interested in reducing as many monthly payments as possible, while still leaving money to live on in my emergency fund. The car loan was only at 7%, but the money in my emergency fund was earning less than 3%.

Anyway, I'm hoping that reduced monthly expenses will help reduce the stress level! I have another closing at the end of November, then hopefully all these contacts I'm working with now will come through!

Things could definitely be worse.

Waiting, waiting....

2007-09-18T22:40:00.000-04:00

Buyers in the real estate market are coming up with a lot of excuses for holding off on buying now. One client believes that prices in DC will be lower by $100k by this fall. Another client wants to wait for the Fed meeting next week.

DC real estate has really withstood all the "crises" that the national news is reporting these days. It's tough when they don't tell us what area they are talking about in the U.S., but instead focusing on the tragedy they are reporting. The reality is that DC homes sales are up 0.3%, year over year, and the nationwide existing home sales are down 11.4%. The average sale price nationwide is up 0.3%, and DC is up 0.7%. There are lots of reasons for this, including a healthy employment. Unemployment nationwide was for reported at 4.5% in July 2007, and in DC it was only 3.0%.

As far as waiting for the Fed to meet, an overnight rate change could take as long as one year to trickle through to the 30- year mortgage rate.

Home buying is such an emotional decision, though. Sometimes you just have to let them wait....

September Goals

2007-09-04T08:23:00.000-04:00

The months seem to be flying by. I have some real goals for September, so to keep me on top of it, I think it's better to post about them to hold me accountable.

Goal #1: Rent out studio. There is a tenant in there now who will be leaving at the end of September. I've tried renting it out previously to begin in October, but there weren't many people looking for an Oct. start date. Also, I still haven't decided on whether to build the wall to convert it into a one bedroom. Again, demand will help me determine that.

Goal #2: Sell my listing. It would be a "two-for-one" deal, because these clients could then buy the place they have their eyes on. I would represent them in both transactions.

Goal #3: Something fitness-wise. Can't decide how to quantify it. But maybe it would be better to strive towards 2 cardio workouts between each private session. Then I wouldn't really have to quantify it, because it would happen naturally at my body's own pace.

Goal #4: Sell a home. Again, something I don't have a whole lot of control over, because buyers buy when it's right for them. But I could increase my hours and work with more people to increase the chances that someone will find it to be the right time. Goal #4 dovetails into Goal #5:

Goal #5: Pay off the car. We owe just under $11,000 on it. I've been paying down the principal aggressively, so the fixed payment is actually based on an $18k loan. At this rate, it would be paid off completely in 35 months, 1 year early. But I would like to get the $357 off our budget and use that for savings instead. Selling one home would provide the funds to pay it off.

Goal #6: Plan a vacation. I would love to visit my friends/family in La France, and I am also considering a bike tour through eastern Europe. I signed up for one last week, only to discover a day later that it was full. I'll keep looking.

Lofty goals! But September is historically a great month for real estate in DC. I need to squeeze all I can out of it!

Confession Time

2007-08-28T21:19:00.000-04:00

I realized today that there is one thing that I have avoided talking about, not only in blogging-land, but also in the "real world". Everyone has a different concept about needs vs. wants. One of my "needs" could make me appear high maintenance or frivolous with my money.

I go to a personal trainer twice each week. I like having someone who keeps me to a schedule and even holds me accountable for working out outside of each session.

I grew up immersed in music and foreign languages, not sports or anything athletic. Unless you consider performing with a clogging team athletic. That definitely served as exercise without me noticing that I was exercising. The point is that I never got into sports. Outside of aerobics in my 20's, it is only in my 30's that I have started running.

Because I now get paid in chunks, instead of the regular bi-weekly paycheck, I do buy a "package" of sessions so that each individual session is cheaper. It's like shopping at Costco!

I have to believe that there is a positive return on my personal training sessions. I have more energy and I feel better, which helps me perform better at my job, and could possibly bring in more money. And it's hard to measure, but I also like to think that my health care costs will stay lower in the long run. So it's also like an investment!

Learning from others

2007-08-28T17:56:00.000-04:00

Kenric over at Live Learn Invest (formerly "Monarchrest") summarized his story in one post here. He has a great story, and I like his mindset. Not having a big, important, corporate job goes against everyone's expectations for me, so it's nice to read about others with the same ideas.

Sometimes a kick in the pants is in a form you don't expect.

2007-08-27T22:26:00.000-04:00

I just got back from my ex-boss's memorial service. Definitely a thing to make you go "hmmm". He was only 55, and his death was not expected. The man left for vacation with his wife, went into the hospital, and died there. It makes me realize that you really have to live each day. He probably didn't pack his suitcase, say goodbye to his cats, and lock the front door with the idea that he would never be back.

I need to make sure that I take those trips, read those books, and say all those things that I just haven't gotten around to.

Time for some fun

2007-08-05T08:41:00.000-04:00

I woke up this morning with a strong desire to visit my French family (in France). The more I thought about it, the more I realized that I've been so caught up in getting things stable financially after buying 3 condos and a car (and changing careers-- all in 2006), that I haven't done much planning for traveling and vacation. I haven't seen my French family since I ran the Paris marathon in 2004, and there's even been another child born since then! So I sent them an email this morning asking when I could "rendre visite" before the end of 2007. I've got to do this.

The Hidden Cost of Real Estate

2007-08-02T11:46:00.000-04:00

There was one thing that no one warned me about when I decided to become a Real Estate agent. I'm trying to consciously do better, but I still can't avoid parking tickets. They have now become a budget line item in my monthly expenses. I can't write them off on my taxes as a business expense. I just hope that DC is spending this increased revenue to help someone who needs it....

Can't help but watch a re-run

2007-07-31T16:19:00.000-04:00

Oprah is doing a show on having designer Nate Berkus renovate small apartments. I've seen this one before, but I can't help but watch it again. The first renovation was for a woman in a New York City apartment that's 250 square feet. The second one they've shown is his own place that he just purchased, 550 square feet.

I find a smaller space more comfortable from a financial point of view. I can live in a smaller space and stay more financially healthy. It has huge environmental benefits too, with less energy use.

As a real estate agent, I see many clients shy away from the condos that are smaller, have a small bedroom, etc. I have to say that while I really enjoy helping people find that perfect spot, I am amazed when they come to me with a limited budget and won't consider a smaller place that's still in a great location. Even someone who's single! It's o.k. if a first home is small, and there are lots of options for those places.

I think of real estate in terms of price per square foot. Less square feet means less price!

You can't please everyone all of the time

2007-07-23T18:34:00.000-04:00

I'm amazed at how much better I am at "taking it on the chin" from upset real estate agents. My skin has grown much thicker. I've heard before that you can't please everyone, but I've always had the need/desire to make sure everyone was happy with my work. Maybe it comes from my southern roots. Who knows.

I get so much positive feedback from clients. I save those voice mails and emails for times like these, when I come across someone I'm doing business with who isn't as pleased with me. I'm working with a developer at selling a project of his, and he's very difficult to work with (I won't work with him again). He's not good at giving feedback, and his employees are completely disrespectful and demeaning. After hanging up the phone with a buyer's agent who is particulary upset with the situation, several thoughts came to mind.

1) It's not personal. I represent the seller, but I can't control him. The buyer's agent used strong words to describe my role as unprofessional. But again, I can only give her the information I have. Just because it's not the answers she wants to hear, that's not my issue either. It is what it is, and I'm happy to work with her to start at that point and help her work around it. But I can't change what it is.

2) She was making a lot of assumptions about me. So I can't take what she was saying personally. She doesn't know me, doesn't know my work ethic, etc. What she's experiencing is the seller's acts. Again, I'm more than happy to help her find solutions.

3) I said too much. She probed for information, and my answers should have been repetitive, as opposed to trying to smooth everything over. Next time I'll bring the conversation back to focus on the facts I have. She found a weak spot where I didn't have all the information. The bigger picture is what she needs, and not the smaller details.

This is the first time that I have been able to focus on what happened and learn from it, rather than hanging up the phone shaking and full of emotion.

Yay!

Blast from the past

2007-07-22T15:48:00.000-04:00

I was out running errands today in between appointments. I was really surprised to run into the cleaning lady from my last desk job. More surprising is that we recognized each other. What does that say about the hours I used to keep at that desk job? I probably work the same, if not more, hours now. But it's at my discretion.

Running into her took me back for a minute to those days. It tested me. And I don't miss it at all!

Time to find a new tenant!

2007-07-03T13:03:00.000-04:00

I am trying to rent out my studio apartment in DC. But I'm faced with several options. Studios don't tend to rent as well as 1 bedroom apartments. And, since my studio is bigger than a lot of one bedrooms in the area (by about 100 square feet, which is huge in the city!), we are considering converting it into a one bedroom. There are some cool, modern, urban-looking options for doing this (all of them seem to be in NYC). It would require approximately $5,000 to do it right, in a tasteful way that will actually enhance the property's value when (and if) I decide to sell it.

The current renter moves out at the end of the month, so I've decided to post it for rent both as a studio apartment and a 1 bedroom. So far, I'm getting some interest in the apartment as a studio at about $200 less per month than the interest in the one bedroom.

I have to see how serious the interest is, so I've invited the people who have responded to see it in person. In the end, I think the market will make my decision for me.

Downside of Vacation

2007-06-27T11:02:00.000-04:00

One aspect of a vacation that's not as appealing to me is that I end up really missing my baby (my cat). He will be 9 years old next week, and we're pretty attached to each other! Mom and her S.O. have two miniature dachsunds that are just so fun to be around. If it weren't for them, I would be having a harder time missing the prince!

I've heard that pets are really good for humans, physically and emotionally. But I'd never read anything on that. A quick google search found this article: Pets' Love, Devotion Add To Owners' Health

A survey conducted by the American Animal Hospital Association found that more than half the pet owners surveyed, if stranded on a deserted island, would choose the companionship of their pet over another human. Such is the role pets play in human companionship and affection.
But more than offering friendship, keeping a pet has positive physical effects. Dr. Lisa Sharp, a Mississippi Veterinary Medical Association veterinarian at South Panola Veterinary Hospital, sees pet owners benefit from having a pet.
"Having a pet helps decrease blood pressure because it relaxes and soothes people," Sharp said. "It lowers blood pressure as owners pet, hold and play with them."

I would definitely choose a pet over a person if stranded on a deserted island.

The Windy City

2007-06-21T14:21:00.000-04:00

I'm on my first day of a 10- day stay in Chicago. Yesterday was an all-day journey. My 6am flight out of DC was cancelled, but Orbitz rescheduled on a 9:40 am flight. No complaint here on the later flight!

However, just as we were going to go to the runway for takeoff, the entire UAL computer system shut down. So we sat on the runway (as did every other UAL flight) and waited for it to reboot. Once we had the weight calculations, we were off.

Then, feeling good about my finances with a new commitment to keeping costs down when I can, I decided to take Chicago's version of the Super Shuttle to my Mom's house. Once 4 other passengers got in the van, we headed out. When I saw the traffic on the highway, I was really glad I wasn't in a taxi watching the meter tick up. But what should have been at 20 minute trip ended up being almost 2 hours, and there was still one other person in the van when I got out! At least it was only $25 fixed.

So I'm here, and trying to figure out what I want my schedule to look like while I'm here. Today I'm spending more time on the computer than I should. Hopefully, from here, I'll be able to do a quick email check in the morning, close the computer, and head to a coffee shop to read one of the five books I just bought. I'll be spending a little more money, but my day will feel more vacation-like.

When do you eat?

2007-06-18T16:24:00.000-04:00

When I worked at a desk for someone else with predictable hours and workload (and pay!), it was obvious when to eat. And people to eat with and discover new places with.

Now, my schedule is pretty unpredictable. Especially on the weekends. I'm usually running from one appointment to another. I'm in the car, showing homes, and a little restricted (in the city) to places where I can find parking. What to do?

At first, I didn't give it much thought. And I gained weight. I was just eating whatever was around (open houses typically have fresh-baked cookies). Anything to make my stomach stop growling. When it became harder to get dressed in the morning (because nothing fit--quelle surprise!), I had to do something. So now I exercise in the mornings during the week (not at 6am like I used to, but 10 or 11am). That way, I'm available in the evenings for clients when they get off of work. I hired a personal trainer for a little while. Not very pf savvy, but I see it as an investment in my body and my business. I do better when I feel better, and it will probably mean less time in the dr. office later on. I haven't figured out exercising on the weekends yet. Last weekend, the S.O. and I rode our bikes from home to Old Town Alexandria, ate breakfast, and rode back (approx. 22 miles). I was back in time for my open house. That may be my answer for the weekends.

I also ordered Nutrisystem. I'm not a day-to-day planner (I'd rather put my energy towards my business). It is such a relief to have something I can just grab, and it doesn't have to be refrigerated. I can see getting tired of the food eventually, but for now it's my solution.

Is your schedule unpredictable? What do you eat?

Health Insurance for independent contractors

2007-06-17T21:33:00.000-04:00

After a lot of procrastination and a small health scare, I finally have health insurance! I had never had to enroll myself in an insurance plan. I've always had health benefits at work, and before that my parents took care of it. So I wasn't looking forward to the process. It was a serious unknown to me, inspite of taking classes on the topic in college.

I finally came across a website that seems to be the "middleman" for insurance (maybe an insurance brokerage?) http://www.ehealthinsurance.com/. They were good for comparisons, and I ended up choosing a carrier right away, but then I started to receive phone calls from random people, all with different plans to offer. At first, I was calling them back. I thought they were verifying that I had been accepted for insurance and they could answer my questions. They were just as confused as I was, and they were extremely disappointed that I had chosen something already through the website.

I will say, however, that I ended up calling the customer service for this website several times with questions, and they couldn't have been nicer or more helpful. That alone was worth everything. I can still call on them with questions about my insurance, instead of dealing directly with the insurance company (which is usually miserable at best).

Yummy summer treat

2007-06-17T16:28:00.000-04:00

I am addicted to smoothies this summer. They are cold, hydrating, and can be filling enough to be called a meal.

My trick to making it filling is adding a scoop of soy protein powder (I find it at Whole Foods). The other regular ingredients are: plain, non-fat yogurt and soy milk. Then I vary amoung frozen fruits. So far, my favorite is pineapple.

Yum!

2007-06-17T14:52:00.000-04:00

I am definitely more of an analyst than a writer. So many challenges (pf related too!) have come up in my new adventures. But instead of turning on the computer and writing about them, I think about them constantly. I realize that things might be easier to figure out if I write them down (something my career coach encourages me to do every time we meet). It would have the added benefit of getting feedback from all of you!

I need to get things out of my head. So my posts may start to seem a little random. But here's a topic I was discussing with my mentor just yesterday: Cash Flow.

Running your own business definitely becomes a challenge in cash flow management. It's important to keep a healthy reserve so that each day you don't become obsessive over money. If I look at a client and see a piece of meat (think the movie Madagascar), instead of a human being with needs that I can provide solutions for, I'm not going to be as good at my job.

I have been very lucky. I was laid off last fall and given 6 months severance. After spending a few weeks spending some much-needed time to myself, I started focusing in more on my interests and decided to give real estate a whirl. By January, I was up and running, but received severance (salary and health insurance) for the next 4 months. Because the real estate market is so strong and I have some great mentors, I started making money right away. I used this money to start saving my "reserves" that would soon become my new salary and pay down debt that was increase our monthly expenses.

Right now, I'm focusing on a healthy reserve to last through the winter-time. I understand that the RE market starts to slow near Thanksgiving, so I need to count on those months as being non-income months. Of course, if someone still wants to buy, that's fine too!

Time flies....

2007-05-22T14:49:00.000-04:00

I can't believe how long it's been since my last post. I don't care what anyone claims, running your own business is NOT easy! I'm wearing every hat, and it's really exhausting. I stopped taking new clients and decided instead to focus on the ones that I have for the time-being. Feeling less stretched gives me more time to learn and grow personally and professionally.

I don't even know where to start. Instead of making a really long post, I'm going to break it down into puzzling parts. Some things I've resolved and come to terms with; some that I haven't.

Up next: personal fitness and the importance of taking care of your body, especially when things are crazy!

Have I found a new career?

2007-02-02T18:27:00.000-05:00

On a whim, I sat for my real estate agent class and license. Well, it really wasn't a whim, but it did happen fairly quickly! For 10 years, I have worked in a career of investments, first on Wall Street, then not physically on Wall Street but still a Wall Street job. My career has led me to New York City, Charlotte, NC, and finally Washington DC.

But DC has been different. I actually like living here, so when it came time to switch jobs, I endured the painful process of interviewing in a city that isn't exactly known for my career choice. I was successful. I landed work for a well-known, wealthy individual, managing his investments. In spite of having always been a "Bond girl" (my term for trading and managing bonds), my new career direction also included some stocks and alternative investments like real estate. I started taking what I was learning in the real estate investment analysis and started applying it to my own situation, and I loved doing it. As a result, I started to get to know the DC real estate market really well.

When lay-offs hit last November, I knew I couldn't go through that job search again. Especially because my interests were starting to shift and I wasn't as interested in climbing the proverbial corporate ladder anymore. A friend and neighbor suggested I sit for my real estate license. Having all the time in the world, I did. Then I met some brokers and decided that I couldn't work for them or in their offices, or even pursue real estate as a career. I changed my mind when I met two brokers who had me cracking up over lunch. I had my S.O. meet them over drinks another night and decided to give real estate a try.

I'm loving it! I've officially been affiliated with these two brokers for three weeks now, and I've sold two condos. My days are flexible and I take a day off when I need to. No one asks me where I've been when I come into the office at noon. It's really suiting me. I even have an investor who is benefitting from my knowledge of real estate as investment properties, with my full analysis including spreadsheets and all historical data I can get my hands on.

So for now, this new career is working out for me. But I'm still reading my daily Wall Street Journals. And I will always be a Bond girl.

Prosper update-- 6 months later

2007-01-04T13:41:00.000-05:00

I have won 4 bids on Prosper since mid-June, and they seem to be going well (knocking on wood). I've loaned $201.84 total, but I've only transferred $186.62 of my money over. After the first two loans (both in June 2006), I used the small income from those loans to supplement the next loans. Ideally, I would be able to bid on another loan using only income from the other loans, but at this rate, that might be a while. My goal this year is to win a loan each month to build the portfolio. I'm slightly hesitant because I sometimes worry about the longevity of Prosper and the validity of loaning to random strangers online, but I suppose that high return only comes with high risk.

I have a few things I look for that seem to be a little different from what others in the PF blogging community seem to look for. For example, my average yield on the 4 loans is 25.11%, and I look to maintain that or increase it with each loan. This means that I have only HR or E ratings for borrowers, but I do a search based on yields and consider each one on a case-by-case basis. I look for smaller loan amounts and do a "gut check" on the post and their reasonings. I will not lend to someone with bad grammar and misspelled words. And I tend to lend to women, less for scientific reasons than for the demographic that I would like to help out. I also will only lend to homeowners, supposedly verified by Prosper.

When I bid on a loan, I look for loans that are over half-way to being fully funded and only a day or so left in the bidding. For my minimum rate, I use the average rate of my existing loans.

My methods are not very scientific, but it seems to be working for me. Of course, I'm only a little over 6 months into the oldest loans; still a ways to go on the 3-year loan period! I have to be ok with losing everything, too.

Lawyers, accountants, and LLCs

2007-01-04T13:22:00.000-05:00

The new year has started with looking at potential investment properties. A couple is interested in investing in a property with me and my S.O., and there are a few that we are interested in tackling here in our neighborhood. The first one was "abandoned" by the original developer. The MLS listing says that he got sick and had to stop work, but who knows what the truth is. It is not inhabitable, and each time we have gone to see it, we have had to go in the daytime because of all the leftover construction materials. In addition, the neighborhood is still "up and coming", and that particular area would be on the dangerous side at night. It seems to be a good investment, though. We would only have to put the finishing touches on it, like appliances and drywall and flooring. The hard stuff looks done, and it seems he did a pretty good job on it. There are new townhomes going in across the street that sell for $750k each, so we would not be the only "new" place on the block. This would definitely be something we would finish and sell right away.

The second choice is a building that was newly built, but it fits in really well on the block with its brick facade. We're amazed that there was an empty lot on this street! This one could be rented out right away, with 2 2-BR units (3 stories each) and 2 1-BR units. There is even room for parking. It is way undervalued.

So the group is talking things through. It's involving lawyers and accountants and LLCs ("oh my"!), so the process is slow. I'm learning a lot, though! The tough part so far has been keeping our agent and his mortgage broker friend off our backs. They may be even more anxious than we are!

In the meantime, I've had a lot of down time while things slowly evolve with the investment properties. I passed the real estate license exam last friday, so now I'm interviewing brokers to affiliate with. Another slow process, especially with so many people getting sick and having to reschedule meetings! So I need to look into something else to occupy my time (my part time job didn't need me this week). I'm considering a 30-day yoga challenge. That may be a good way to offset the soreness from my morning workouts and let my mind be quiet for a few minutes. I have to be careful not to get too bored!

Not everything can be rosey

2006-12-18T14:03:00.000-05:00

A short pause from thinking about personal finance. I just had a really tough conversation with an old friend. Tough things to say and tough things to hear. I think it's time for a bubble bath....

I've been tagged!

2006-12-16T13:12:00.000-05:00

Mapgirl tagged me to reveal 5 things about myself. I'm holed up inside sick on this warm, gorgeous day, so I'm thankful for something to focus on! Here goes:

1) I am fluent in the French language. When I was a Senior in high school, I went to France and lived with a host family for a year. That was 15 years ago, but the French is still alive in me. I was lucky to have a host family that couldn't speak English and to be able to attend a high school. I think that helped me retain it.

2) I am originally from Georgia (the state), and grew up with a very thick southern accent. I've lost the accent for the most part from living in France and New York. I have friends here in DC who don't even know that I'm from the South!

3) On a whim, I took the pre-licensing class for my DC real estate license. The 2-week class ended yesterday, and I passed the final exam. Now I'm sitting for the actual exam in 2 weeks. Because I'm not employed at the moment, it's a way for me to continue exploring my options to help me avoid relying on working for someone else again for a paycheck. I'm still trying to decide what I'd like to do with it.

4) Each member of my immediate family lives in a different state. (is this interesting? I don't even know). Mom is in Chicago, Dad is in Atlanta, one younger sister is in Manhattan, and the other is in Charlotte, NC.

5) I have a secret dream to do an Ironman triathlon one day. And to start a bank. They seem like a far reach, but nothing is impossible. :)

3rd week into severance

2006-11-28T14:59:00.000-05:00

I have to say that my time in severance is going very quickly! I've been staying extremely busy, though. I have 2 different part time jobs that require slightly different things from me, but completely different dress. One is business casual; the other is whatever you can get a bleach stain on without losing sleep. I learned that last one the hard way.

I'm really enjoying it, though. Both jobs are giving me structure in my day while earning some extra pocket change. But most importantly, they are giving me experience with how retail businesses run. This includes the cash aspect, working with customers, and managing people in a non-office environment. Interesting stuff, actually. I've made it more interesting by adding in my own little challenges of up-selling, selling different perks, and moving stale inventory. So far my managers are enjoying it, and it gives me another challenge.

My S.O. and I found the investment property we have been looking for. We need our investment partners to take a look at it as well, then start the process of fixing it for for resale. We found another one as well that presents more of a challenge. That one will be our second challenge, if it's still around when we're ready for it!

I am also enjoying not having to run anymore! Although I would like to be a little more loyal to my morning group workout. My plan is to go each day for the rest of the week.

These are interesting times! I just hope that I can earn a few more months of salary in this time so that I can "buy" more time away from the office environment! Otherwise, I'm back in the rat race on May 1st. I'm very optimistic that it will happen, but it's good for me to keep my eye on the ball.

I did it! The New York City marathon

2006-11-08T19:26:00.000-05:00

This past weekend, I ran the marathon in New York City. It was absolutely fabulous. It was my second time running in a marathon, but I still wasn't exactly sure what to expect. What a great New York experience. My endorphins are still pumping, almost 3 days later! Definitely the best, cheapest, legal drug out there!

When I grow up...

2006-11-01T14:07:00.000-05:00

Due to decisions made for me, I am in the process of trying to figure out what I want to “do” when I grow up. I grew up thinking I would be the big career woman, putting everything off and focusing relentlessly on my career. Immediately after college, I moved up to New York city and started pursuing my personal utopia.

That lasted approximately 1 year before I decided the ultra career woman goal was for the birds. I was long distance from my bf at the time, and I was the sole skirt among a sea of men. Egotistical, bar-hopping, early- heart-problems men. I no longer envied this lifestyle, and I wanted balance. But still being stubborn and competitive, the guys’ attitudes made me want to achieve success playing their game even more. So I moved again when another “good-for-my-career” position came available. I thought that being away from New York would make the quality of life better (since everything would be cheaper), allowing me to continue focus on my dreams.

I stayed in this new town for the next 3.5 years. Life was a little easier, but the work environment hadn’t changed. I fought the uphill battle with a smile at work and tears at home, but eventually decided that if I was going to be spending most of my time at work, I needed to at least live in a place where I wanted to be. So the weekends would be more enjoyable and I could be somewhere where I already had an established network of friends. So I quit my job and moved to Washington D.C.

I have been in D.C. for over 5 years now, and again need to stretch the balance. The rat race is just not for me. I don’t like people telling me what to do, asking me to be creative then responding with, “but that’s the way we’ve always done it”. I don’t like being told when to be at work and when to leave. I don’t like someone else determining my salary and what I “deserve” based on an arbitrary and unfair system of politics and personal values. On the physical side, I don’t like the way sitting at a desk has shaped my body, in spite of my diligent efforts to fight each calorie. What I do want is to choose the way I live. I want to be the boss of me.

This is a scary proposition! Once you leave, I don’t believe that you can ever go back to the steady paycheck. And as much as I hate being “bossed around” now, imagine going back to that after being my own boss! But the entrepreneurial draw gets stronger every month, every year. It’s best summed up in this blog, http://www.stevepavlina.com/blog/2006/07/10-reasons-you-should-never-get-a-job/.

What will I do when I grow up? Hopefully I will have this figured out in the next 5 months!

Opportunity?

2006-10-17T18:00:00.000-04:00

So I was laid off from my job last week. I sort-of saw it coming, because I knew that changes were taking place, but it still takes the breath out of you when it comes around. Another thing I discovered is that it is very, very hard not to take it personally. Even when the speech begins with, "You are terrific. Everyone loves working with you." There are just so many unknown variables that rush through your head when you hear those words.

But after a couple of days of reflection (and going through all of the stages of grieving), I am beginning to see this situation as more of an opportunity. I have been dreaming about getting out of the rat race for quite some time, but just never felt like I knew enough or was in the right financial situation.

But now it's here. They asked me to stay at my current job through the beginning of November, then full pay and benefits through the end of February. They are helping me find my new job, and have told me to tell them where in the city I would like to work, because one of them probably knows someone there (or they will find out if that type of company exists here in DC). I couldn't feel more supported and taken care of.

So while I am in the process of painting castles in the sky, I am also trying to decide what to do with my time when I am not searching for that next opportunity. I really want to make this time count, because it is a really lucky position.

Lesson Learned: Always google your doctor

2006-10-06T12:36:00.000-04:00

I went to a podiatrist in August to take a look at my foot; something was bothering me when I ran. In the end, after a long discussion, we decided that we wouldn't do anything to my foot until
after the marathon I am training for.

So I received notice from my insurance company that the podiatrist I went to (Dr. Bryson) had billed them for surgery, and that they weren't going to cover any of the $175 he was charging. Then, I received a bill from his office saying that I owe them $175. But this bill didn't have "surgery" on it.

I put it off for about a week (he was very ANNOYING to talk to), then came across this "to do" today and decided to tackle it. The bill to his office doesn't have a phone number on it, so I googled him to get a phone number. WELL, I didn't find a phone number, but I did find THIS:
http://www.usdoj.gov/usao/dc/Press_Releases/2005_Archives/Aug_2005/05302.htm

It's the same thing he was being sentenced for! I wish I had googled him sooner. I called his office, and his receptionist put me straight through to him when I told her why I was calling. I took notes during our convo, then called the number on the press release to try and find out where this stands. And I said to his voice mail that I would be happy to file a report if this is ongoing. I've left a message with the insurance company too.

Sheesh! In addition to googling your doctor, always read the insurance statements from your visits!

Clothes!

2006-08-29T15:18:00.000-04:00

There is a great deal going on at www.eddiebaueroutlet.com.
Take 30% off of the already reduced sales prices. A lot of the stuff is gone, but you require an unusual size, this sale could be perfect. I need a Tall inseam, so I was able to stock up on some pants. And I bought the bf some much-needed pairs of jeans. At $17 for a $60 pair, you can’t go wrong!

Investment Property 507

2006-08-25T09:45:00.000-04:00

I finally found a long-term renter for 507! I had been renting this property out, furnished, with short-term leases. The timing worked well, because DC gets inundated each summer with interns looking for temporary housing. I was able to find a law student from New York for the first three months, then a doctoral candidate from Harvard for the month of August. Starting in September, though, it was really important to get a longer-term lease signed that would take us through the winter. I've heard that winter time is the hardest time to fill a rental unit.

After talking with several interested people, I decided on a woman who is moving to DC for her job. However, she only wanted to sign a nine-month lease. At first I was going to push back for 12 months, then realized that a lease ending in May would only position me well for the new batch of interns coming in! With a nicely furnished apartment, there is a premium to be made for renting only for a few months.

Another (what I perceived at first as a) downside was that she wasn't interested in the parking spot. Since I know that she will be a great tenant (at least that's what my research and gut are telling me), I started advertising the parking spot separately. To my surprise, a well-known person answered my ad and signed the lease a few days ago. So the mortgage is covered for the next 9 months. I am hoping that rising rents will turn this property cash flow positive, as opposed to break-even.

For now, though, break-even is letting me sleep at night....

Generation X vs. Baby Boomers

2006-08-17T13:49:00.000-04:00

With each boss I've had from the Baby Boomer generation, I've felt like there is always an underlying tension between us regarding work ethic. I am a hard worker and, like most of my generation, I need the freedom to figure things out on my own, take time off when I need it (only to come back refreshed and more motivated than before), and flexibility with my time. Just because I'm at work at 8am, that doesn't mean I'm going to be feeling especially productive at that time. Why not take the morning off, regroup, and work later into the evening? What ends up happening now is that I suffer through those moments when I'm just not feeling my best and staying late into the evening once I've hit my mojo.

The only thing constant is change

2006-08-17T13:03:00.000-04:00

I can't believe that it's been over a month since I last made my thoughts public! Where has the time gone? Well, I feel like I've been extremely busy, but it's hard to specify exactly how my time has been spent. In addition to my marathon training, which, by the way I've been eating, can be a pf budget blog entry all of its own, I've been trying to make some decisions regarding my current position at work.

When I first started in this position last January, I was given a project that seemed to have been a major source of angst for the client, and in turn a huge monkey on the back of the company. Without the boring details, it was a project requiring the skill sets of two different departments. Somehow, probably because I am the newest kid on the block, my department, and therefore I, became the designated martyr for the project. The verbal understanding was that, after the project was finished, I would then begin my duties as set out in my official job description.

Long story short, changes started occuring in the company just as the project was being completed, and my original duties are disappearing into thin air. This is very frustrating for me, since the amazing job description was the carrot being dangled in front of me that kept me going through the very arduous, boring, project.

This turn of events has been the perfect time to re-evaluate my direction: masters degree, continuing on the same path, changing careers, etc. My needs and interests have changed direction since I graduated with my Bachelor's 10 years ago. I have employed the services of a career coach to help guide me through this maze. While this service is pretty expensive, I'm taking the bet that it will lead to a direction that will far outweigh the cost in the long-run.

To be continued....

It's that time of year again!

2006-07-13T11:34:00.000-04:00

Yes, it’s that time of year again, and this year I will be joining in with the masses and training for/ running in my second marathon. Marathons seem to have become so main stream that I am definitely not alone in my quest!

I was obligated to take a professional exam in June, and spent the first half of the year studying. During this time, I put on enough weight to make the running feel really different. But, in the second week of training, I’m happy to report that the weight is already starting to melt away and the runs are getting progressively easier.

What does this have to do with personal finance? Well, I use the same approach with running and fitness that Jane Dough uses with finance. She says that “If I keep saving and spending less I will never be as poor or as in debt as I am now". With marathon training and fitness, if I continue to exercise and eat healthy foods, I will never be as physically out of shape as I am right now.

Balance is so important. In the same way that cash inflows must equal cash outflows to remain financially healthy, calories consumed must equal calories burned in order to maintain a healthy weight.

So, as week 2 (out of 18 weeks) comes to a close and week 3 begins, I continue my quest for physical health in addition to financial health. Send positive energy my way!

Registering—just for married people?

2006-06-20T17:50:00.000-04:00

I’m curious to read others’ opinions on this topic. Just yesterday, I received an invitation in the mail for a “couples baby shower” for a friend of mine who will give birth to a baby boy soon. My first reaction was that I was excited to see her and the rest of gang who I’ve been fairly out of touch with. They’re friends from college, and not within my “inner ring” of friends, so when I’m as busy as I have been lately, they tend to fall off my short-term radar screen.

This couple was married in Fall of 2004. Having gone to college in the deep south, my college friends tend to be from the south, and, in turn, have pretty traditional values. Nothing wrong with that, but, unlike me, my college girlfriends grew up aspiring to someday become Mrs. So-and-So. They dreamed about what dress they would wear and who would be in attendance. So, when they started getting married (practically the day after graduation), they wanted every piece of the dream fulfilled. One friend in particular took a while longer to find that special someone. And by the time she did, we were all in our 30’s. She insisted on the traditions we followed in our early 20s, and we complied and threw her an engagement party, bridal shower, bachelorette party, and we all were either in the wedding or attended the wedding 4 states away. Following tradition, these events also included an event-appropriate gift.

So now this latest invitation really has me wondering what my responsibility is. The invitation is very sweet, but it lists 4 different places where she’s registered for baby things. My bf and I are living together, but may never get “officially” married. I would like to celebrate this moment with her, but am I required to buy a gift (that she’s chosen) as well? I’m not trying to be cheap; I just wonder where I’ll shave away money from building my own household in order to further hers. She makes a nicer salary than any of us, with pretty expensive tastes. And where does it stop?

My thoughts aren’t even well-composed, but I keep thinking back to the Sex and The City episode when Carrie registers herself at the Manolo store.

Comments?

Right place at the right time

2006-06-16T10:00:00.000-04:00

On Tuesday I bought my second home (which we call “708”), which will become my primary home. My bf and I will move into this new, bigger place, and we already have a renter for his place (“709”). The renter in my first place (“507”) is here only for the summer, so I’ll be looking for a renter to start in September.

It’s a little crazy how fast things change. Up until 2 months ago, I was living in a SMALL (450 sq. ft) apartment in the middle of DC, saving money with the (relatively cheap) rent, and waiting for my condo to be finished. I bought 507 in May of 2004 pre-construction. It was still a parking lot at the time, in a neighborhood that I was making a bet would be improving while I waited for the building to be finished. Over the following 2 years, I met the love of my life, found out that he had also bought a place in this idea of a building, and we excitedly walked past the construction site at least weekly to track its progress. Our relationship moved along quickly, as we are very compatible with each other, and we eventually closed on our condos when the building was complete and moved into his slightly bigger place (709).

The timing of the building completion worked out well for us, as we were able to furnish my condo (507) and rent it out to one of the many interns who descend on DC in the summers. She needed a furnished place, and we needed someone to pay our mortgage, so a lease was signed and she moved in with very little fanfare.

Meanwhile, the timing wasn’t as great for our neighbors in the building. As we very quickly discovered, at least half of the building was bought by investors, who bought their condos with the intention of “flipping”, or selling as soon as they closed for what they assumed would be a profit. Every Sunday afternoon is a circus, with realtors prowling the building for innocent home-seekers and even turning vicious by tearing down each other’s flyers in order to thwart the competition. Combine the massive supply of condos within the same building with a market that is showing signs of slowing (possibly due to media hype, as DC job growth is still the healthiest in the country), and you get some pretty desperate (“motivated” is the industry term, I’ve discovered) sellers.

The unit next door to 709 (the bf’s) came on the market approximately 4 weekends ago. We went to their open house out of curiosity, to see the floorplan and meet the speculator. We ended up LOVING the floorplan, and noticing that they had done the same upgrades as us, we became interested in buying. We went back to 709 for 10 minutes, discussed it, and went back over and made them an offer. We wrote them an earnest money check on the spot. They simply wanted out of the investment. They had paid cash for the transaction, had other properties that needed attention and cash flow, and were disgusted with the state of affairs and the circus that the bf and I were starting to get used to. We ended up negotiating the price they paid for the place 2 years ago. Not only that, but the bf and I now have a valuable “chess piece” for us, because we could eventually (allowed in the condo docs) knock out the adjoining wall and have a very nice, large (by DC standards) place in the future. Meanwhile, we are renting out 709 with positive cash flow.

It was a very stressful closing that was postponed twice. Our original mortgage broker who is fabulous did as much as he could for our loan before going on vacation for his wedding and honeymoon. The broker he referred us to was an absolutely lazy moron. In the end, I ended up doing most of the work and learning a lot about how things work in the process. I suppose everything happens for a reason!

So now we are in the process of moving all of our belongings to the unit next door. I will continue to update our rental progress on 507 as well as other ideas that I have brewing at the moment on this blog. These are very exciting times, and I’m having a blast. Now, if only I could figure out how to make this new-found interest into something that would allow me to stop working for someone else….

Flip That House

2006-05-30T16:38:00.000-04:00

Has anyone ever seen this show on TLC? I came across it by accident last night and I was immediately hooked. Flip That House is a 30 minute show that follows regular civilians who have purchased a "fixer upper" through renovations to appraisal by a real estate agent. It's quite possible that this show has been airing for 6 years now; I haven't had cable in quite a while.

What's interesting is the amazing transformations and vision these people have. The first episode I caught was in pretty bad shape. The owner (a woman) did everything through contractors, and she oversaw the project. The next show immediately following was a couple with a "stay-at-home-dad", and he did everything himself. Both went over budget, with aggressive timelines (30 days and 4 months). But the profits for the time spent weren't bad at all. Things that make you go "hmmm...."

I can't wait to see more of these shows. Over and over.

Who prospers with Prosper?

2006-05-27T19:51:00.000-04:00

I noticed an article a while back in the Wall Street Journal that discussed the grand opening of a new website that offers a place for personal borrowers and lenders to come together. I have checked out the site on several occasions, and can't really decide where I stand on it. I have signed up to be a group leader (probably the best passive income in the deal, out of all the different characters who come together to make the deal). But I haven't activated it. I think I'll try being a lender first and see how that goes.

Has anyone had an experience with Prosper yet? I'm looking for good and bad stories.

What's good for people is...bad?... for companies

2006-05-25T12:46:00.000-04:00

As a "bond girl", I understand that, when determining the reactions of bond prices to economic news releases, the general rule is that what's good for people is bad for bonds, and vice versa. When unemployment rates go down (good for people), bond prices go down (bad for bonds).

There is an article on the front page of the Wall Street Journal today about how credit card companies are sweating it because consumers are paying off their credit cards more aggressively than ever. There is a quote from a hot-dog analyst that normally in this point in the economic cycle, payment rates decline. They're not seeing that this time.

If only they knew the secret of the pf blogging universe! It would make much more sense, with so many interesting, creative, pfblogs out there!

Reducing my interest rate

2006-05-18T17:40:00.000-04:00

So I am ready to borrow against a portion of the equity in my home. Between the 2nd mortgage trust (taken out to avoid PMI for borrowing more than 80% of the purchase price) and my credit card, the weighted average interest rate I am paying is 8.44%. I just found a HELOC that would let me pay off the 2nd mortgage trust and the credit card at 7.49%! In addition, the interest that I pay on the HELOC loan will help reduce my taxes. I definitely wasn't getting that on the credit card.

Let me start by saying that, even though I closed on my home about 5 weeks ago, substantial equity has built up in it since the time I bought it 2+ years ago in the pre-construction phase. All it required from me was quite a bit of patience as the closing kept getting moved back....

I went to all the obvious places-- lendingtree.com, ditech, etc, and none of the offers felt right. I even had them show me three different scenarios: HELOC, Home Equity Loan, and even a refinancing of my first mortgage.

The HELOC is a variable rate loan that floats at a fixed spread to the prime rate. I would borrow the money as I need it by writing a check or even using a debit card. Unfortunately, the Fed only recently raised the overnight target rate AGAIN, which in turn increased the prime rate. The HELOC variable rate will change as often as the prime rate changes. PLUS, I was facing additional "closing costs". The closing costs came to approx $200, but still. None of those options felt quite right.

For the Home Equity Loan search, I discovered fixed rate loans, where all the money was given to me at once and the deal is that I pay it off over a predetermined period of time, most commonly 15 years. Closing costs were minimal ($200 range again), but still....

Refinancing my mortgage was going to cost several thousands of dollars. I didn't pursue this option after that information was given to me.

In the end, I went back to my original mortgage lender and found a "special deal" that they are offering. They offered me a fixed rate HELOC for 10 years, floating after that. Closing costs are waived unless I close the account within 3 years.

It's probably obvious that I went with the last choice. But if anyone else is in the same boat, don't just take the first "reasonable" offer. I almost did, then my gut told me to wait.

...or is it Liabilities and Assets?

2006-05-05T23:33:00.000-04:00

So, I've been stalking other bloggers for awhile now, and finally decided that it's time to get public with my own journeys. Hopefully it will provide a good space for me to post my thoughts and learn from myself and (hopefully) others.

Right now, my journey is overcome with thoughts of net worth and how to position myself now to let my money work for me and grow into assets.

But first I need to get rid of the liabilities.

I tend to shift my main life focuses around periodically. Probably part of the "balance" that is supposed to be so good for us. But I find that one concentrated thing will occupy my mind for awhile, then things will shift and lead to another main focus for me. So, while my focus at the moment is on money and finances, I also have a goal to run a marathon (my second) at the end of the year. Training for that starts in July, and I know it will be all I will be able to talk about.

My thoughts on assets and liabilities are linked to my recent (major) purchase of my first home! I live in DC, and let me tell you, it wasn't cheap. I bought new construction 2 years ago. It was recently completed, and I've done well by locking in a price from 2 years ago and having a rental (the reason behind me having an "extra" unit for a rental will come later) just as rental rates are rising. I think that this year and next will be a good time to be a landlord, as mortgage rates go up and leave more people out of home-buying range.

So I look forward to joining the family of bloggers and, more specifically, the family of pf bloggers. Now, in addition to reading what others are up to, hopefully I'll be able to contribute as well!

Thanks and keep reading!