M is for Money

I’m about to commit a faux pas, at least in terms of the cultural traditions I was raised with. I received a last minute wedding invitation and I have no time to come up with a great gift or shop for it. I’m considering just putting cash in a card, though my mom would be appalled if she knew.

I’ve known the bride since she was 5 years old. Our parents are colleagues and we’ve both landed in LA after growing up on the east coast. When she first got to town she crashed at my house for a few weeks until she found a place of her own, but we’re not especially close. We get together a few times a year at parties or dinners. I’m not sure if she honestly forgot to invite us or suddenly did it out of guilt. My dad knew the wedding was this weekend and asked if we were going, I told him we didn’t get an invitation. It didn’t bother me, weddings are expensive and perhaps they were keeping it small. But suddenly I received an email on Thursday full of apologies and asking for us to attend Saturday. The location – the place I had mentioned to her in December as being my dream wedding spot.

Mr. M can’t attend so I will be flying solo to a swanky party under the stars. The invitation said formal attire and I have just the perfect dress. You know the kind that sits in your closet for years cause you have no place to wear it to? I almost had a heart attack when I couldn’t find it, I had been saving it for years. Finally I found it in a different closet, the one where I keep my winter coats??

But what about a gift? Both the bride and groom are struggling artists and I think that cash would probably be appreciated, or am I just taking the easy way out? I was raised to think that cash makes a tacky gift, though looking back on some of the crystal monstrosities my mother gave perhaps money would have been kinder! So what do you my fair readers think – tacky or no?


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I’ve never done this before, I took money out of savings to pay off debt. No, it’s not that I like debt, I certainly don’t. It’s just that I like my savings more and hate to part with them. Think of all the time and sacrifice it took to save up that money. Think of the possibilities, what if I suddenly need that money tomorrow and it’s gone? But this week I bit the bullet, took $5000 from savings and paid off the credit card.

A few months ago Mr. M and I finally combined our finances. But getting control of his income came at a price, $8500 in credit card debt. Paying off that debt was not one of my priorities, I’ve dealt with the debt demon before and didn’t feel like tangling with him again. But slowly my thinking changed as I started plotting our future course. That debt was weighing us down, getting in the way of our goals. A few weeks ago I decided to speed up the payoff, setting a deadline for the end of the year. Of course as soon as I make a plan I have to change it!

We have big dreams and plans, which are on hold until the debt is gone. Fortunately we also have savings, which mean financial flexibility. In this case I think it makes sense to pay off the debt out of savings. If it meant having nothing left afterward, then I would not do it. Savings are a lifesaver, without savings you will be right back in debt in a few months. The car will break down, the plumbing will spring a leak (yep, in our basement) and invariably something will go wrong. Since I can pay off the debt completely and still have over $10,000 in savings, I feel comfortable kissing that money goodbye.

Next month I can shift our budget to focus on our long term goals. It feels amazing to know that we are now actually working towards the future we dream of, not just dreaming of it. I’ve made a list of the financial milestones we must reach to retire, next month’s budget will put us firmly on the path to complete many of those goals. The rest will depend on our ability to earn more money and to better manage the money we have.

Step one to retiring early – pay off existing debts.


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I vividly remember the first day of my career. Graduation was the Saturday before and I comfortably rolled into a full time position on Monday with the company I had interned with during the school year. My future was set, and I was miserable. I watched the hours creep by and wondered how on earth I could survive a lifetime of this purgatory. I hated it and questioned why I had gone to school and chosen this path. But over time I’ve reconciled myself to the choices I’ve made. I don’t hate my career and it affords me the opportunity to earn enough to realize other dreams, like retiring early.

At this point I want to make the most of the career I’ve built and use it to build the life I want to lead. Of course if I had been financially smarter in my 20’s I would be a whole lot closer to this goal. Like most 20-somethings retirement saving wasn’t a priority, I compounded that problem by racking up too much debt. But I’ve worked hard to fix those mistakes and get on better financial footing. That means I’m finally able to look at what it will take to reach that ultimate goal – retirement.

The Dream

Our retirement plans are a bit non-traditional, we want to live on a boat and travel the world. Beyond the cost of the vessel itself, this is an economical way to travel. Exactly what type of boat and where we plan to explore will depend on when we reach that finish line. What sounds fun and exciting in your 40’s will probably be overwhelming by our 50’s. But we both agree that this is the life we want and that early retirement is our goal together.

The Plan

To retire early is a gamble. With a long time in retirement and a world of infinite possibilities, it’s impossible to be certain of success. But I’ve laid out a list of financial milestones we need to reach before we can retire. A balance of funds, assets and income sources we can draw on, hopefully enough to leave flexibility for the challenges to come. But getting there will be tough, with our current income levels it’s not possible to retire by 50. We need to earn more, save more and invest better. Stay tuned as I lay out the steps we are taking to an early retirement.

Step 1 - Payoff Debt
Step 2 - Early Retirement: My Milestones

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Mr. M has been on a roll lately with customer service when a product or service is unsatisfactory. With work being slow, he has plenty of time to complain. First it was an awful carton of ice cream – got a coupon for a free replacement. Then it was the poorly designed ketchup bottle – coupons for free ketchup and discounts on their other products. Last week it was a bone filled burger from Fresh and Easy.

For those outside of the southwest, Fresh and Easy is a new grocery chain looking to conquer the nation. The little upstart is backed by European supermarket giant Tesco. The best description I can come up with – imagine a regular supermarket like a Ralphs or Publix marries Trader Joes and has a baby. Fresh and Easy is a hybrid, small like a TJs but with a lot of national brands. They also carry a lot of private label prepared foods like Trader Joes. The primary drawback – they don’t accept manufacturer’s coupons. But they do have pretty low prices, by keeping the stores Spartan, advertising to a minimum and solely self checkout. We’ll see if the young upstart survives, but now to that burger.

Mr. M was pretty upset when he bit into that burger, the piece of bone hurt his tooth. He promptly located a phone number for the company and alerted them to this quality control problem. They didn’t say much at the time, but then last week an envelope arrived bearing Mr. M’s name. They sent their special store coupons, $5 off a $20 purchase. Even better they sent 4 of these coupons. We just wanted acknowledgment of the problem, $20 off will do. Again this sort of considerate response from a company shows me they genuinely care about their customers. We’ll keep shopping there despite a bad experience in return.


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Many of us have to learn things the hard way, myself included. In your 20’s being financially smart is pretty low on the list of priorities. I know it meant nothing to me, I had no budget and no plan. I didn’t build up savings, instead I spent my 20’s getting into debt. I figured I had years to pay off the debt and start saving. No harm, no foul. But looking back, this thinking handicapped my future.

I’m certain you’ve heard it before, in your 20’s you have the advantage of time. Not just to make up for earlier mistakes, but to sow seeds for the future. Nest eggs take time to grow, it’s a whole lot easier when you start early. When you wait to start saving, say till your 40’s, you will have to save most of your paycheck to have enough for retirement. On the other hand, starting in your 20’s means reaching retirement while saving a smaller portion of your paycheck. You can both enjoy your money and build security by being a financially savvy 20-something. It’s the best of both worlds.

My best advice to 20-somethings, try not to screw up your finances too much. Live within your means so you aren’t burdened with debt later. Start saving so your money has time to grow through compound interest. Now is the time to learn how to handle money, both spending and saving. A healthy mix of both will serve you well through life.

For more advice to 20-somethings, see Well Heeled’s Things I wish I would’ve known in my twenties


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I don’t want to see this month’s electrical bill. The AC is working hard to keep the house somewhere below surface of the sun hot, not too successfully. Insulation works both ways, keeping a house warmer in winter and cooler in the summer. Too bad no one in California circa 1920 thought to put insulation in their houses. It doesn’t help that our neighbor majorly chopped back a tree that shaded and cooled our house. I can’t wait till it grows back, the leaves it drops are an annoyance but it’s worth it for the shade and shelter that it provides. Planting shade trees is a great way to reduce your summer cooling costs, the trees are happy to absorb the sun that would otherwise beat down on your home. Check with your city, in Los Angeles city residents are able to get free shade trees from DWP.

This week’s carnivals:

-The Carnival of Personal Finance at Poorer than You: Smarty Pig – Great Rates with a Catch
-J Money hosts the Carnival of Pecuniary Delights at Budgets are Sexy: Frugal Convert

Every Thursday on the way into the office I stop by the coffee house for a medium coffee and a pastry. I need the extra motivation to get through the rest of the week. Friday is its own reward but Thursday, I need help. The bill comes to $4.50, not much in the overall scheme of things. But this one little habit is costing me over $225 per year. Is it still worth it?

A few years ago I started looking at expenses in terms of annual cost, not just the immediate cost. It was enlightening, and really changed my spending habits! One $5 habit once a week is over $250 a year. A $40 dinner out every Friday night is $2000 a year. I wasn’t getting ahead, or saving, because I was spending so much money on little things.

I have choices when it comes to my morning pick me up. Coffee is available for free at the office. I can buy pastries at the market for a fraction of the cost of the coffee house. I could have the same meal for $0.50, saving $200 a year. In this case, I still choose to buy my breakfast once a week. I’ve given up many of these little money wasters, and save a big portion of my paycheck. But if you’ve got a spending problem and aren’t saving like you want to, try this little trick. Look at the annual cost of that habit, you might change your mind when you see just how much you spend each year.


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Every prospective first time homebuyer neglects to include one very important cost in their calculations – maintenance and repairs. Inevitably something will break or wear out around the house. These problems are easy to deal with when you are a renter, call the manager and make it their problem! But as a homeowner, you have to deal with whatever your house throws your way.

Yesterday I came home to a broken oven. The stove burners light, but the oven won’t. A quick internet search revealed a few possibilities, I’ll have to access the igniter to test my theories. This is a project for the weekend and will likely require ordering parts. In four years of homeownership I’ve fixed all number of appliance, electrical and plumbing issues. Eventually we’ll get to a problem that I can’t fix and it will be time to call in an expert. Those don’t come cheap.

Do It Yourself

There is a reason for the thousands of do it yourself home improvement books in the store, homes have issues and homeowners are looking to save a buck. Hiring a repairman, an electrician or a plumber is expensive. If you are careful, confident and handy then you can tackle many minor home repairs yourself. But for many people, this is not a good idea!

Routine Maintenance

Eventually things wear out, roofs have to be replaced and the house re-plumbed. Most of these big projects require professionals and come with big price tags. Of course, they can also be anticipated. Systems and parts of a house have an expected life span, you can ask your home inspector how much life they have left and save up in advance.

Home Repair Fund

Savvy homeowners know to have cash on hand for the unexpected problems that appear. The repairs we’ve done on our own would cost thousands if we hired professionals. Plus there is the cost of routine maintenance. But how do you know how much money to save? It really depends on your house. Smaller homes cost less to fix than larger homes. Older homes generally have more maintenance and repair needs than new homes. The cost also depends on where you live, big cities command big city prices. I’d say start with $1000, you’ll soon figure out if you’ve saved enough!


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This piece in the LA Times caught my attention: More bodies go unclaimed as families can’t afford funeral costs. The local morgue and coroner’s office can’t keep up with the increasing number of bodies being left behind by families. Claiming a body costs several hundred dollars, for families struggling to put food on the table this can be too much of a burden. Cremation or burial add thousands of dollars to that cost. My grandmother passed away in May and at the time I wrote about how expensive even her very basic funeral was. It’s a sad story when a family can’t afford to bury their loved ones.


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Does big money bring out the worst in all of us? Does money attract scoundrels? I’m working on a theory here. I think my industry is ripe for corruption simply because of the significant sums involved. Not just millions, hundreds of millions of dollars are at stake. Even honest men are tempted by that kind of cash.

A co-worker and I were discussing whether it is possible to be both honest and successful in our business. He, another R, we’ll call him R2, started his own company when he could no longer stomach the actions of his employer. You’ve been introduced to that player before, the one who lost favor once he stopped paying kickbacks. R2 didn’t want to be associated with that person, so he forged out on his own. He simply negotiated his own contract on our project and transferred his employment. He hasn’t had to bid on jobs or survive the backstabbing that occurs in the business. I think he is still in the honeymoon phase.

R2 acknowledges the corruption around us and like me he can’t deny that it translates to success. But he wants to believe that an honest person can both survive and thrive with their morals intact. I want to believe that too, but that doesn’t make it true. It’s not a level playing field, we all have a modicum of talent. The other guy is willing to go farther than me to win the job, the other guy left his ethics at the door. R1 confessed to me that even the most honest among them is still a bit dirty somehow.

Yesterday my boss asked for the contact info for a former colleague of mine, I honestly don’t know where the guy is working now. Something to do with the port was the last I heard. It made me wonder, why is he looking for D? D and I would be considered competitors, we do the same job. D has serious money issues and debt with a fat, capital D. I believe he would do anything for money. Do I need to be watching my back? I admit that being my own business is making me more suspicious of co-workers and colleagues. Anyone could turn on you, a three piece suit and a knife in your back. Big money will do that to a person.


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I admire the entrepreneurial spirit of my fellow Angelenos. They have found markets to exploit that I never imagined existed. But I confess some of these business ventures leave a bad taste in my mouth (pun intended).

There is a house that we pass on our way to the freeway, a rather shabby looking structure. The house sits above the street with a detached two car garage at street level. On a weekend several months ago I noticed the garage doors were thrown open, with a crude stand build inside. A handwritten sign on the sidewalk advertised, “Birria”. For those who don’t know, birria generally means goat stew.

There were several people gathered around on stools, slurping up their stew. I’m used to the greasy taco trucks and oil can barbeque, but goat from a garage is a new one to me. I think it’s mostly the vegetarian in me that is repulsed, but the thought of eating anything out of a very dirty garage is rather repulsive. However judging by the full seats, many other people enjoy this unusual delicacy. Who am I to judge? It’s just part of the fabric of life that make LA, unique.


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Why do we have so much stuff? How did it all get here? One problem with a basement is that it tends to collect clutter. Have something you don’t know what to do with - throw it down in the basement. But eventually the day of reckoning must come, the stuff must be dealt with.

Hollywood has been dreadfully slow and Mr M wants to purge many of the items he has kept just in case a job comes up. He is depressed being surrounded by reminders that his career isn’t going that well. But on the positive, most of these items can have a second life being donated to the thrift shop. We’ll get a tax write off and hopefully someone else will put this stuff to use. We’ve got one car load so far and probably another to go. It wouldn’t be so bad if it weren’t 100 degrees outside today.

This week’s carnivals:

First off I had the pleasure of hosting this week’s Festival of Frugality. I hope everyone stopped by and read a few of the articles.

-Carnival of Money Stories at Suburban Dollar: Watching the Spender Become a Saver
-Carnival of Personal Finance at Man vs. Debt: Home Buyer Beware – Home Inspections
-Carnival of Debt Reduction at No Credit Needed: Determined to Pay Down Debt

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I’m looking for a new place to put my money. After years of being an industry leader in savings rates, FNBO has fallen back with the rest of the pack and while I certainly don’t expect 4% right now, I do expect a rate leader to remain a leader. There are banks offering 2% with no minimum balance, compare that to FNBO’s 1.5%. Then there is Smarty Pig, at an enticing 2.75%. So what’s the catch?

Lately my time has been consumed by starting a business. I’ve been learning everything I need to know about doing business in my locale. I’ve submitted the first of the necessary forms. Most of all I’ve been preparing an estimate for an upcoming project. Cost estimates, labor estimates, schedules and overhead calculations. My nights and my weekends were devoted to this task, and it could all go to waste.

Let me back up a bit. I currently work on a project with people from many different companies. Several of my colleagues have formed their own small businesses and are raking in the dough. I’d like to join the party. A few weeks ago an opportunity presented itself.

One of my bosses, yes there are many, called me into his office. His company was going after another job and would I join their team? I accepted, in part because I would join with the one honest guy in the business. Also, the job is a continuation of a project I worked on years ago, it’s perfect for launching my new firm. So I threw myself into the task, though of course we still had to win the job.

Unfortunately we will never get the chance to try. The primary company, the one that invited me on the team, dropped out. The patchwork they assembled hence crumbles. Myself and R (the one honest guy) are looking for a new team, but it might be too late. We’re the best in town at what we do, but politics has as much to do with it. Time for a new strategy.


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Sunday didn’t go quite as planned. Instead of lazing in the sunshine having a BBQ, we were in the cold sterile waiting room of the emergency vet. It’s been about 6 month since our last vet nightmare, I guess it was time for another.

Sunday morning we took the three boys, boston terriers B, C and D, to the park. We go hiking for an hour most Sundays. Even at 8:30 in the morning it was hot so we made lots of water stops in the shade. When we got home the boys all crashed out, like they always do. D slept the entire day, which isn’t that unusual. He earned the nickname Lazy at an early age, even as a puppy he loved napping. But I was surprised that he didn’t budge from the bed all day.

In the afternoon Mr M ran to the store for a few BBQ supplies. He picked up a new toy too, but I told him to save it for later. D’s birthday is coming up and this is one of his favorite toys. The toy reminded me to go see what the lazy pup was up to, was he still in bed?

When I tried to wake him, he wouldn’t wake up. I kept calling his name and shaking him, but he wouldn’t open his eyes. I couldn’t tell if he was still asleep or what was wrong. When he finally opened his eyes, he wasn’t himself. He was shaking and pulling away from us. I was worried that the heat was too much for him or he had eaten something poisonous in the park. Whatever was going on, it was clear he was not normal. Rather than wait to see if he got better or worse we loaded him in his carrier and ran down to the vet.

Of course normal vets aren’t open on Sundays at 6 pm, relegating worried pet owners to the money pit known as the emergency vet. We’re practically on a first name basis with our local e-vet and D once spent a week in the surgical ward of this hospital. But that doesn’t mean they’ll cut us a deal. They quickly took him in back, ran some tests and hooked him up to an IV. Most likely he ate something they said, but exactly what we don’t know. They quizzed us about household chemicals, drugs and poisons around the house, but we couldn’t think of anything. He slept all day long, he wasn’t digging through the cupboards. Our only guess was something at the park. Well we’ll keep him overnight, they said, and see what the test results show.

They sent us on our way, but not before we paid a 75% deposit up front. I plunked down the Care Credit card since I knew this large of a bill would be interest free for at least a year. That would give me time to figure out where the money should come from and in the meantime I could focus on my sick baby.

In the end the tests were all inconclusive, they couldn’t find out what was wrong with him. They suspect some type of toxin but we have checked the house and found nothing. The park seems a long shot, though Mr M said he noticed some mushrooms. It may have been a seizure we didn’t witness, the signs wouldn’t show in a blood test. D seemed better by Monday morning so he was allowed to come home. He worried me more by sleeping the day away once again, but perhaps he didn’t get a good night’s rest at the hospital. Right now he is digging through the toy box and anxious for a game of fetch. I guess he is feeling better.

The final damage - $600.


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Frugality often gets the cold shoulder in the world of personal finance. It’s not sexy or glamorous, like hot stock tips and free, fast money. The frugal path to wealth is slow and determined - it takes years to realize the benefits. It’s the tortoise of the financial race, not the hare.

The anti-frugalists decry this focus on simplicity and saving, but many of them are missing the point. Frugality does not intend to be a complete financial strategy. First and foremost it is a lifestyle, a pattern of living below one’s means. It doesn’t replace earning more or being a better investor. It doesn’t replace having adequate insurance and a well balanced portfolio. It’s simply one tool in the financial toolbox that you can use to build a more secure financial house.

But, it might be the most important tool for long term financial security. Where does the money you save come from? Living frugally means having more left over at the end of the month that you can invest. Being frugal means you need less money saved to be financially secure. When you add the power of budgeting, saving and investing to a frugal lifestyle, you are in the best position to reach your financial goals. Earning power is important, but at the end of the day it is what you keep that matters.

In that vein, welcome to the 186th Edition of the Festival of Frugality. Here is a wide selection of articles from across the web on frugality and finance.

Frugal with Family
One Family’s Blog gives us some Frugal Options for Families with Kids during Summer Months

Waste Less, Want Less
Kyle from Suburban Dollar has a way to stretch a chicken and a dollar in Three Meals One Bird

Stop Wasting Gas and Money
Tyler at Frugally Green gives some excellent tips for how to maximize your gas mileage – Save $550 a year by Hypermiling

Consignment Shops, Another Place to Bargain Hunt
Matt at Financial Methods talks about stumbling into an unexpected shop one day in Finding Deals at the Consignment Shop

Don’t Lose Sight of the Big Picture
Kristy at Master Your Card wants everyone to remember that Personal Finance is not a Race

Good for Your Wallet Ideas on Good for You Organic Food
Sarah at Devastate Boredom has loads of ideas on how you can eat organically without breaking the budget – The Ultimate Cheat Sheet for Finding Organic and Local Produce

Something Handmade
Rose at Fine Craft Guild brings us directions for Handmade Business Cards in Pouch – The Perfect Gift

Big City, Big Price
Free Money Finance breaks course and writes about big towns worth the extra dough – Ten Pricey Cities Pay Off

Save Trips to the Store, Save Money
We save money by shopping less often, and apparently we’re not alone. Maggie at Your Non Toxic Life shares How Frozen Milk Saves Me Money

Will America’s New Found Frugality Last?
Darwin's Finance wonders if America has learned her lesson in The New Normal is: Abnormal – It Won’t Last

See the Game, Keep your Change
Jeff from Good Financial Cents gives his thoughts on How to Save Money Going to a Sporting Event

Money and Morals
This is a topic much on my mind lately. Money Ning talks about What to do When Money Conflicts with Ethics

What are You Frugal For?
Ben of Money Smart Life draws inspiration from the country’s Independence Day to look at personal independence in Happy Financial Independence Day

Did your childhood shape your finances?
My Life ROI looks back at The Three Most Influential Lessons from my Childhood

Small Space, Maximum Yield
Jim from Bargaineering introduces the small space garden known as the Square Foot Garden

Understanding the Home Appraisal Process
There is a lot to learn about the home buying process. Sound Money Matters brings some insight into The New Home Appraisal Process

When It Comes to Cooking, It Pays to be Prepared
Kevin from Surviving the Law School Money Crunch is always ready with The Low Cost Cookbook: Freeze Your Own Veggies

DIY Saves Money
Super Saver from My Wealth Builder tells how they saved money by fixing it themselves in Easy DIY Car Repair - $250 savings

Do Programmable Thermostats Save Money?
Vh from Funny about Money reports on one experience Update: Programmable Thermostat vs. Electric Bill

Budgets are Necessary
J Money at Budgets are Sexy presents a great resource Best Free Budget Templates and Sites

Times are Tough
Raj Patel from Debt Goal offers some ideas on regaining focus in the current economy The Fundamental Shift of Consumers

Do You Budget?
Craig at Money Help for Christians looks at why people don’t budget in Ten Budget Busters

Are You in A Credit Union?
Mathew of Fine Tuned Finances looks at the Advantages of Using Credit Unions

You Need a Budget
And SVB from The Digerati Life has a deal on YNAB software in Budget Planner on Sale

Keep Your Eye on the Prize
To help you The Smarter Wallet gives some Tips for Saving Money: The Frugal Mindset

What to Do With Extra Money
Single Guy at Single Guy Money looks at what he is doing with The Extra Paycheck – Save or Spend

Make Your Own Dishwasher Detergent
Save money and the environment, Matt from Debt Free Adventure shows you how in Simple and Effective – Jabs Homemade Dishwasher Detergent & Rinse Agent

Safety and the Stock Market, an Oxymoron?
Banker Saver ponders How Safe is Your Retirement Fund?

It’s Tough out There
Elizabeth from Modern Gal has some ideas for When Freelance Gigs Dry Up

A Question We’ve All Asked Ourselves
Ray from Money Blue Book does his own analysis of Costco Executive Membership: Is It Worth It?

Credit vs Debit, the Debate Continues
Debt Kid in a guest post at Cash Money Life breaks it down in Debit Cards versus Credit Cards

Back to Basics with a Budget
Jill in a guest post at My Dollar Plan gives some experienced based advice How to Get Control of Your Budget

Cash in on that Clunker
Free From Broke gives you the major lowdown on the government’s latest scheme Car Allowance Rebate System – Cash for Clunkers

Are You Up for the Challenge?
J Money in a guest post at Five Cent Nickel throws down the challenge in Quit Spending, Save Money

Lines Folks, Boats Don’t Have Ropes
Marjorie of GO Girls Outdoors shares her experience with garage sale finds in The Joy of Sailing

No Car Needed
WK of Fiscal Fizzle has the breakdown on Alternative Forms of Transportation

Mental Roadblocks
CJ Perry of Wise Money Matters asks What’s Getting in Your Way?


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I’m not sure summer is the best time to BBQ in Los Angeles. It’s too hot to even be outside, let alone standing next to a fire. But we’re craving some smokey goodness. I think we’ll wait till later in the afternoon, when hopefully it will be a bit cooler. For the carnivores we have – hamburgers, chicken and sausage. One the veggie front – eggplant, zucchini, yellow squash and bell peppers. Most came straight from our own garden. The extra food is for later in the week when we’ll be too tired to cook. Making extra food on the weekends is just one way we save money.

I hope everyone else is having a relaxing Sunday. Be sure to tune in Tuesday when the Festival of Frugality stops by with the best of the frugal articles from around the blogosphere. Get your submissions in by Monday afternoon. Here are last week’s carnivals:

-Carnival of Personal Finance at Darwin’s Finance: Losing Some Love for FNBO Direct
-Festival of Frugality at Your Money Relationship: Companies Value Your Opinion

Finally we have something to eat other than tomatoes. I mean I like tomatoes, but it was getting to be a little much. The tomato plants are still going strong, but thankfully their output has slowed significantly. It’s a good thing, we were having trouble keeping up.

We were also having some big time problems with our squash plants, a zucchini and a yellow squash. After adding some supplements to them, mainly calcium, they seem to be perking up. Hopefully now we’ll actually get some produce off of them. I’m used to being overwhelmed with squash, but our grand total so far this year is two of each. The rest rotted away before they grew to more than an inch. But we’re not wanting for any, my co-worker blessed us with pounds of lemons and zucchinis. His garden was overwhelming him.

Some plants have yet to be harvested, but almost every plant has produce on it. I just need to be patient. Here is a breakdown of everything in my garden and what it has produced so far. This doesn’t include the herb planter, which I harvest as needed and don’t really track.

Tomatoes – 25.4 lb
Hot Peppers - 0
Sweet Peppers – 0
Eggplant – 0.2 lbs (1 decent sized Japanese eggplant, I guess they’re pretty light)
Zucchini – 0.7 lbs
Yellow Squash – 0.8 lbs
Onions – 0
Cucumbers – 0
Beans – 1.25 lb
Peaches – 0.7 lbs
Grapes – not likely to have any worth eating
Kumquats – not going to bloom for awhile
Pomegranates - still growing

I have 10 tomato plants, which explains the 25 pounds. On the other hand only one of each of the squashes. It’s a matter of space, squash needs a lot of room. The tomatoes on the other hand are in pots, which allows us to keep them in a spot we wouldn’t otherwise have. I'm sure they would produce more if they had a place in the ground, but there is nothing I can do. My little garden shows you can still pack a lot of produce in a small space.


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Who says people can’t change?

Mr. M is a spender, but if his new habits take hold I’m soon going to have no choice but to call him – a saver. I must say this is completely unexpected, I never thought he’d change. I designed our financial system to insulate our nest egg while allowing him to spend a set amount however he wished. It’s almost too perfect.

Mr. M used to spend money as fast, or faster, than he made it. He never planned for the future, saved for a rainy day or for the bills that were coming due. It drove me nuts. After we combined finances I figured his personal account would perpetually have a zero balance, much as it always had. Instead he’s saved over $1000 and has no plans to spend it. Why the change?

His spending money is linked to how much he earns, somehow this has also linked sweat and spending in his mind. Measured in time and effort, money becomes more valuable. Plus lately work has been slow, very slow. Without more money coming in, he is reluctant to spend what he has. Or there is his explanation for the change – uncertainty. He said he is waiting to find just the perfect thing to blow his cash on. He doesn’t want to find something better as soon as he spends it. I love this new perspective.

I changed from a spender to a saver. My spending drove me deep into debt with nothing to show for it. I had stuff in my closets but nothing in my bank accounts. I felt my very survival depended on getting out of debt and changing my ways. But I’d never force a spender to change. My goal was to handle our savings, so Mr M didn’t have to worry about it. But lo and behold, he is becoming a saver along the way. It’s a wonderful sight to see.


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I don't have a post ready for today, I was up late working on my bid for an upcoming project. I only found out yesterday that they need something from me today! Ack, it's not ready. The actual bid to the city isn't due for a month so hopefully I still have time to fix it up. Wish me luck.

Ah debt, my friend, my foe. I know you well, to the point I don’t notice your shackles around my legs. But right now, I want you gone.

A few months ago Mr. M and I combined our finances. For years I held off on taking this next step in our relationship because Mr. M had debt that I didn’t want to inherit. Eventually I realized that this burden was too much for him to handle on his own and after all, I’m a seasoned veteran of the debt wars. Combining finances was the best way to get that debt paid off. But I was seriously lacking one thing – motivation.

I didn’t feel very motivated to pay off a debt that wasn’t mine, my plan was to make payments as we could. Maybe it would get paid off in a year or two, I wasn’t about to give up my savings goals in the meantime. But lately my thinking has changed. This debt is holding us back, both of us. Our money could go into savings or be invested to grow for the future, instead each month a portion must go to the credit card company. This situation will continue until the debt is paid in full. The sooner the debt is paid, the sooner our cash-flow situation improves.

Also, in today’s low investment return environment paying off a debt at 10% interest makes financial sense. Our savings are only earning 1.5% right now, so paying off higher interest debt will give us a better return on our money.

The starting balance was around $8500, the current total is $6250. My goal is to eliminate the rest of it before the year is over. I also have the Care Credit balance to pay off, which is zero percent interest, but still counts as debt. That amounts to over $8000 in 6 months – it shouldn’t be a problem. Now that I’m determined to pay this debt off, nothing will stop me.


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Savvy home shoppers know to always get a home inspection done before closing on a new house. A home inspector will look over the home you intend to purchase and inform you of important facts the average person may overlook. Unfortunately this might not be enough to protect homebuyers from unexpected, costly repairs. Listen to the following tale of woe:

We met the new next door neighbors this weekend. They have closed on the house, but they can’t move in yet. The house was in obvious need of repairs - some expected, some unexpected. They got a home inspection done, to know what they were getting themselves in to. Somehow the inspector overlooked a very important detail – all the copper plumbing had been stripped from the house! In addition to the cosmetic work that the house needed, they have to pay a plumber to replace all the piping in the house. This was an added cost they hadn’t bargained for. So what about the home inspector’s professional responsibility?

Home inspectors write their contract with you, the client, to limit their liability. Generally their liability is limited to the amount of their fee. For our neighbors that $225 wouldn’t make much of a difference in the cost of re-piping a house. A home inspection is a valuable tool, but you still have to protect yourself.

Protect Yourself from a Bad Inspection

Not all home inspectors are created equal. Some are very good at what they do, others not so much. Look for one with a good reputation, there are services such as Angie’s list that let you check a company’s reputation. Also, you must always question the inspector’s loyalty. You want to get an independent inspector, not one who has an interest in seeing you buy the house. Many inspectors have a relationship with an agent that they want to protect, giving you information that may cause a deal to fall apart is not good for business.

You want to be present while the inspector is doing their work. One to ask questions and two to notice if there is something they are overlooking. An inspector should be checking the plumbing, whether the electrical outlets and lights work, the heat and air conditioning as well as the roof and crawlspace areas. Is the inspector taking their time to look over the house, or just rushing through to get on to the next job? Make a list of your own concerns to bring to the inspection, a good inspector will be happy to go over those items with you. Any decent inspector would have noticed that the plumbing had been removed from the neighbor’s house and alerted them in the report.

Last, you should also do your own cursory inspection. Try flipping on all the lights, turn on the faucets and peer behind that closed door. You are about to shell out big money to buy this house, you have the right to know everything about it beforehand. It’s OK to kick the tires first and as most consumers know, it is always buyer beware when it comes to big purchases.

A home inspection is a valuable tool when buying a home, but only if you get what you pay for. A few key points when it comes to inspecting a new house:

1. Find an independent inspector
2. Observe the inspector while they are checking the home
3. Do your own inspection as well


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I need more hours in the day. This long weekend has flown by and I haven’t finished half of what I wanted to get done. Between the house and the yard there are enough chores to fill a few days. Then there were the usual 4th of July festivities to attend – BBQs and fireworks. But the most important task is related to my fledgling business – putting together an estimate and bid for an upcoming project. It’s exactly the type of work I’ve spent the last six years doing, but with the added pressure of being on my own. This is my chance to get in on the ground floor and do everything my way from the start. But I don’t have the job yet and there are many obstacles in my way. My biggest fear - my sponsor is unethical. My financial calculations don’t include the cost of bribes and kickbacks. He has known me for a very long time and knows I am honest, but is that enough? It’s difficult enough to start a new business without the added hardship of honesty in a world of scoundrels.

Weekly Carnivals:

The Money Hacks Carnival at Canadian Finance Blog: Knowing Your Partners Credit

June has come and gone and we’ve finally reached the halfway point for the year. The stock market suddenly realized that the prior months’ huge gains were a bit premature, the economy isn’t out of the woods yet. My net worth reflects this overall uncertainty, gains were minimal when you exclude new contributions. But I am making progress unlike last fall/winter and for that I am thankful. I’d rather have slow steady gains than the bubbles and crashes we’ve had for the last few years. Here are the numbers.

Bonds – I have stopped contributing to our snowflake bonds. I’m not planning to buy more until our debts are paid down and we’ve reached our savings goals

Sharebuilder – No trades.

T Rowe Price – I invest $300 per month, there was a small gain for the month.

Lending Club – I have a small amount invested with Lending Club and I’ve decided to start adding more to my account.

Fidelity 401k – from a former job, I no longer contribute

Wells Fargo 401k – I save 8% of my salary

Company ESOP – our company stock is structured as a retirement plan

Savings Accounts – this is where I set aside money for future expenses. Since I know I will spend this money eventually I do not include it in my net worth

Property Taxes – I confess I’ve started dipping into these funds now that our property taxes have gone down.

Dog Fund – To cover our 3 boston terrier’s care and expenses. It’s B’s birthday today, he turns 4. I have to go get him a new toy, I’m a bad mom for not doing it earlier.

Misc Fund – used for irregular or unexpected expenses

Care Credit Arbitrage – the care credit balance is 0% till the end of the year. ROTH IRA –I still have no idea where I’m going to set up my Roth. For now I’m setting aside the money I plan to invest.

House Fund – I drained the cash portion of the house fund, I still have a $2500 CD earmarked for the same purpose.

3 Month Fund – this fund is part of my plan to smooth out Mr. M’s irregular income. It’s finally topped up, and may get used soon. Work has been slow the last few weeks.

Mr. M Tax Fund – we’re setting money aside to pay taxes on Mr M’s independent contractor earnings. Most of his recent jobs have been W-2 employment so I haven’t needed to set much aside.

Wedding Fund – most of the $2700 was just spent on an engagement ring!

Care Credit – the balance is slowly creeping down. This total does not reflect the money I’ve saved in arbitrage so the balance is actually lower.

Chase Credit Balance – this is Mr. M’s debt from before we combined finances. I’m helping to get it paid off and my goal is to get rid of this debt this year.

Between paying off debts and new savings my net worth increased by 5%. Slow and steady wins the race, or so I hope.

There is no where to put my money right now. The interest rate on my savings keeps dropping, the stock market is making me nauseous and I bonds aren’t paying a dime. But there is another alternative – Lending Club.

I invested a small amount with Lending Club a few months ago and thus far my borrowers have made each payment on time. For those unfamiliar with Lending Club, it is a peer to peer lending network. Lenders fund investment notes, which are loans. As a lender you choose which borrowers to fund, based on their credit worthiness and needs. Borrowers get the benefit of lower rates than credit cards or personal loans. As long as payments are made as promised, it’s a win-win situation.

When borrowers make their payments the principal and interest gets deposited in your account, you can then relend the money. There is no waiting till the end of the loan to get your principal back. So I’ve decided to add a little more to my account and fund some more loans, aka buy some investment notes. It will still be a minor player in my money strategy, but after seeing the program at work I am more confident the idea is sound. I am keeping to the more credit worthy borrowers and splitting up my money between several notes/borrowers. The risk of course is that a borrower will default. Hopefully they will have paid off most of the loan before that point! I am trying to even out these risks as best I can, but obviously this type of investment is not for the faint of heart. Many people are stretched thin currently and I’d bet (ha ha) that defaults are more likely right now. But the reward is a pretty decent return – 10% or better. In this low rate environment 10% is pretty damn tempting.


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Lately Mr. M has way too much time on his hands. Hollywood business has been slow and he hasn’t worked in over a month. A few weeks ago while making lunch he became frustrated with the ketchup bottle. The wide mouth design with a center hole meant making a mess, why can’t the hole be closer to the edge he thought. So he called up Heinz to give them his opinion on their packaging.

This is not the sort of thing we do often, but Mr. M really has nothing better to do right now. Plus the few times we have called customer service about a product we’ve always emerged happy. An absolutely terrible carton of ice cream resulted in a coupon for a replacement, but how would a company react to complaints about their ketchup bottle? Surprisingly or not, they were very interested in his opinion. Customer service took the time to talk to him and get his ideas on how to improve the bottle. Afterwards Mr. M was thrilled they took his opinion seriously. But even better, Heinz mailed us some coupons as a thank you. When they arrived we were shocked to find both a coupon for a free bottle of ketchup and coupons for other products they make. Sweet!

I like a company that understands the value of good customer service. We will always remember that Heinz showed us we are valuable consumers and this will affect our ketchup buying in the years to come. All the advertising in the world can’t buy the loyalty they have gained.

For all the consumers out there – speak up! You might not get freebies or coupons, but hopefully you will get a company willing to listen to you. Perhaps you’ll see your ideas put into practice or your favorite product become just a little bit better. In my experience, companies are happy to listen to you, their customer.


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