http://www.simplelivingforum.net/ Getting out of debt, credit cards, socially responsible investing, money management, etc. (For information specific to the nine step Financial Integrity Program, see forum above.) en-US Wed, 19 Jun 2013 04:25:01 GMT vBulletin 60 http://www.simplelivingforum.net/images/misc/rss.png http://www.simplelivingforum.net/ http://www.simplelivingforum.net/showthread.php?8441-How-does-your-budget-compare-with-this-one-(Income-196-000)&goto=newpost Tue, 18 Jun 2013 14:44:30 GMT Tooling around on Mr. Money Mustache, I was reading "Does Peak Happiness Really Come at $75,000 a Year?"

Part of it quotes a budget from a family in Toronto who is just "scraping by" with an income of $196,000.

How does your budget compare with these line items? (My amounts are in brackets)

Mortgage : $2,500. [Same]
Utilities: $500. [Same]
Gas for their Jeep Commander and Ford F-150 truck: $440. [$80 budgeted for gas per month for Prius/Fit]
Street parking and two parking permits: $200. [$0]
Home and car insurance: $300. [Same]
Cleaning lady: $160. [$0]
Groceries: $1,000. [$367 for basic and I allow $70 for "splurge food"]
Baby supplies and toiletries at drugstores: $75. [$0-NA]
Wine: $400–$500. [$50]
Eating out: $400. [$160]
Home phone, cable, Internet and two cellphones: $280. [$400: driven up with two self-employed adults with smartphones)
Dry cleaning: $50. [$20]
Haircuts, nails and waxing: $170. [$25]
Gifts: $200. [same]
Daycare for both kids: $2,500. [$0-NA]
Kids paid activites and lessons: $200. [$0-NA]
House maintenance: $410. [$100 but it should be more]
Clothes: $250 [$50]
Savings: $0 [$400]

Anyone else want to share and compare? ]]> Personal Finance catherine http://www.simplelivingforum.net/showthread.php?8441-How-does-your-budget-compare-with-this-one-(Income-196-000) http://www.simplelivingforum.net/showthread.php?8418-Okay-now-Catherine-s-got-me-thinking-what-would-YOU-do-if-you-were-me-(long)&goto=newpost Sat, 15 Jun 2013 17:05:20 GMT Here’s mysituation:
71 years old (today), DH 69 years old
Income: I bring in $1,243/mo SSI +$1,400/mo possibly unstable income / DH brings in $2,101/mo SSI + $1,763 /mopart-time income (last mo of his job and health insurance will be June 2014)/DH pension now and forever to be $239/mo from previous job. Thus our total monthly income is $6,746 andafter June 2014 will be $4,983.
Assets: $7,842 in no-interest emergency fund at local credit union we trust; SantaFe home appraised at $232,000 last year when we refinanced at 3.934% for a$150,000 30-year loan on which we owe $148,538 ($805 monthly). It’s a 600 sf old adobe house with thirteensolar modules on “Heroin Alley” (we don’t sell or use). Walking distance to groceries, low-cost healthcenters, senior center, Salvation Army meal place and good library. 2007 Prius works well, 67,000 miles, interiortorn up. DH’s 2002 Chevy S-10 truck ingood condition, 114,000 miles.
Asset or Liability? sixteen wooded acres in mountains an hour’s drive away with (240 sf livingspace) strawbale cabin with adobe exterior and three solar panels and well,offgrid. We’ve thinned the acre aroundthe cabin but that was before so much drought (predicted to last ten years) andwildfire. Beautiful, well-kept cabin withsmall barn, corrals, poultry yards. Eight miles from nearest village on the only road, taking 20-30 minutesto drive. Could be very hard/impossibleto sell (a realtor’s impression before the drought started), and much land inthese mountains is burning up. Our cabinis insured for fire. Otherwise thesurrounding area is wild, remote, gorgeous state forest and national wilderness. Wepaid $160,000 for the land in 2004, before the drought . We love it and it noticeably improves our andour four large, sometimes loud dogs’ and the African Grey parrot’s mental andphysical health to be there, but it may not be safe to go up there for much ofany summer. Too dry now to grow flowersor vegetables. Can be inaccessible inparts of winter. No mortgage on mountainland or cabin.
Liabilities: $148,538 30-year mortgage on house in town. My functioning has slowed (including spinabifida occulta, Lyme disease inadequately treated, and currently two years intopolymyalgia rheumatica (women living in high altitudes get this—our Santa Feand mountain altitudes are 7,000 feet). DH appears to have COPD. We sleepabout twelve hours a day. I need alternative health care our insurance doesn’tcover (using it a lot years ago got us into our financial mess to begin with).
Net Worth: as of right now, $247,580; after June 2014, $96,949. We calculate my current monthly living expensesat $10,674 yearly; DH’s at $35,356 (he pays the ongoing bills) for a total of$46,030. I can send the actual lists if it would help.
Other Factors: No close friends New Mexico—like nobody we could ask to be executors ofwills. No cell phones, ipads, etc., onlylaptop and landline. Computerunreliable, we’d replace it now if not putting everything into emergency fund. Two dogs with old-age health problems; theyounger two are four and six years old. No good, safe place to exercise them near Santa Fe—so we go daily tofairly unsafe place. This exercise is essential to us and the dogs,though much better when we’re at our place in the mountains.
Santa Fe hasgreat air quality, the mountains even better (when not smoky). We are somewhat vulnerable in the mountains(no gun, out-of-range if had a cell phone but we do have satellite for computercontact); in Santa Fe we have a utility pole fifteen feet from our house, andit has twenty utility lines running through it (EMFs, environmentally sensitivefamily members.
We have paidoff debts quickly: used truck and new Priusin about three year; have $200,000 life insurance for me; none for DH if I diefirst.
I read inDan Buettner’s THRIVE (2011) that a U.S. household needs $5,000 income/mo to behappy. We expect to have income $4,983/moafter June 2014, but insurance cost, continuing mortgage, etc. We have been an increasingly happy family,even given the financial difficulties. All have serious health problems. We all love, respect, and enjoy eachother every day and are creative about having fun. We have no close relatives. So far several thousand dollars a month gointo emergency fund (we’ve had it for two months, since paying off HELOC), sohave one year to keep that up, then our contributions will decrease. I go toexcellent free groups about aging and dying. We would be up for traveling wherever, ifanywhere, is near enough to be realistic, or could move to another state, townor part of Santa Fe. Another part oftown is cheaper, but without close-by necessary places our current house givesus access to as long as we can walk. Wedo not pay much for entertainment (Netflix), food or clothing. But we’d like less anxiety and a greatersense of freedom if possible in terms of travel or these things. ]]> Personal Finance larknm http://www.simplelivingforum.net/showthread.php?8418-Okay-now-Catherine-s-got-me-thinking-what-would-YOU-do-if-you-were-me-(long) http://www.simplelivingforum.net/showthread.php?8386-OK-now-you-got-me-thinking-what-would-YOU-do-if-you-were-me&goto=newpost Mon, 10 Jun 2013 18:05:11 GMT The ideas in the retirement thread we've been discussing are not new, and I have adjusted my own simple living philosophy to allow me to live with some peace of mind, but it still leaves me curious.

For you more financially-savvy simple livers, what would you do in my situation? And I'm really looking for some creative, strategic direction here, just for the fun of it:

Here's my situation:

• 61 years old/DH 60
• Make a good income--not to get too personal but in the 6 figures / DH is not earning much at this point
• Assets: $6,000 in IRA (yes you read that right--oh the shame of earning six figures and having nothing to show for it); Home in which about 75% of its $360k value is mortgaged in a brand new 15-year 3.25% interest rate mortgage.
• Liabilities: Gosh darn empty albatross of a home which I expect to close in about 4 weeks. We would have already closed if dear BIL had done his duty as executor of MIL's estate, but left the nasty probate filing until we had a closing date. (enough said)
• Additional earning potential: I'm just starting my local food delivery service and what I am hoping for is for it to grow enough for someone to be interested in either taking it over or buying it in 5 years. Or it could bomb.
• Other debts: IRS, I'm ashamed to say, but I paid the $3000 mortgage payment on my MIL's former (empty) house instead of the IRS, so I have a delinquent tax burden. Also have about $7000 left in student loan debt for my kids.
• Other asset: DH owns 50% of the house BIL lives in, but BIL is currently living there rent-free. Value of the paid-off house is about $340,000.

What would you do?? I'm talking big picture--like, should I move? Should we all move into BIL's paid off house and rent or sell my primary residence? But if I prefer to stay and pay off the mortgage in 7-9 years, would that put me in an OK situation if I sell the house at that point? Should we kick out BIL and rent the house? Sell it?

Really, what would you guys do if you were me? Just curious. ]]> Personal Finance catherine http://www.simplelivingforum.net/showthread.php?8386-OK-now-you-got-me-thinking-what-would-YOU-do-if-you-were-me http://www.simplelivingforum.net/showthread.php?8375-NY-Times-article-on-retirement-and-outliving-your-savings&goto=newpost Sun, 09 Jun 2013 16:04:16 GMT Why a million dollars doesn't buy what it used to: http://www.nytimes.com/2013/06/09/yo...g.html?hp&_r=0

I've thought for some time now that the "conventional wisdom" of most investment advice could use some updating for the 21st century -- in particular, the concept of "safety" and "preservation of principle" when the instruments which do that with the highest degree of security are the ones most likely to steal your future in the form of diminished purchasing power. "Keep your age in bonds" may well become as antiquated advice as "Here, let me feel the bumps on your head to determine your illness." ]]> Personal Finance SteveinMN http://www.simplelivingforum.net/showthread.php?8375-NY-Times-article-on-retirement-and-outliving-your-savings http://www.simplelivingforum.net/showthread.php?8351-How-To-Pay-For-Vacation-long&goto=newpost Wed, 05 Jun 2013 13:39:31 GMT Its seems as though lately all I am doing is bleeding out money all over the place, and vacation is in one week! After years of being debt-free and... Its seems as though lately all I am doing is bleeding out money all over the place, and vacation is in one week! After years of being debt-free and having no health insurance (thereby never going to the doctor), I now have that car payment and a bunch of medical bills trickling in, even though I have health insurance now (with a pretty high deductable of $2300). So because I have insurance now, I started catching up on all the standard medical tests I had missed. I had my routine mammogram, which was paid for, but they found some potential problem so I had to go back in for more detailed screenings. It turns out I have some calcifications they'll need to watch for the next six months, yada yada, and yet another mammogram in the fall. So this latest mammogram is something I am getting billed for, let alone the next one in the fall. And then there is my knee problem. I finally went in for X-rays and there is some arthritis, some patellofemoral syndrome (Runner's knee) and a bit of fluid. But that is only part of the problem, as I believe I am having a meniscus issue that will have to be looked at. I haven't even made the appointment for THAT yet. Meanwhile, my knees, especially the left, is giving me a a lot of pain.

When I requested my vacation time way back in January, I needed to get 2000 service hours under my belt for the year in order to get my maximum amount for paid time off. Well, looking at the calendar back then I thought for sure I was playing it safe by going in mi-June, so I asked for two weeks off. I wasn't planning on injuring myself and missing six days of work back in March...it looks like I will be 12 hours short of fulfilling my 2000 service hours by the time June 14th rolls around, which means I am only getting 32 paid hours off and the rest of my vacation will be without pay!

So I am just a little freaked out by all these bills and the car payment, and the fact my room mate moved out a few months ago and I lost $300 of extra income per month from that. At the end of last year I actually had $20,000 in savings! $4000 of that went for the down payment on my car but I have had some other bills to pay, so that is down to about $14,300-ish.

A lot of this is psychological; I know this is going to be a crazy-expensive trip, mainly in gas to get to and from New Mexico, plus the campground fees, etc. I am fully expecting this trip to cost me at least $1000 and most is going to go on my credit card, of which I decided would be okay to carry a balance on for a few months into the fall when I can get caught up. But then I started thinking while I was at AAA getting my maps and the lady was telling me about their pre-paid debit card plan- if I already am planning on spending around $1000 anyway, wouldn't it make sense to just transfer that $1000 out of my savings account to a new pre-paid debit card specifically earmarked for vacation that I don't have to worry about paying off later? I think a lot of it is I am having a hard time seeing my savings balance drop down from that big number back in December. But I think it would be worse seeing my credit card balance being carried over, and for what?! I technically have the money for this, and it may not be the smartest move to take this vacation, especially since I have very little vacation pay coming to me, but I have concluded my psyche really, really needs this little adventure in order to be able to function for the next year. I think it will refresh me enough to come back and really buckle down again on the frugal front and just work my butt off for the next year, find another room mate, and think of creative ways to rebuild my savings to get back on track. I can't do the all work and no play thing for much longer this time around - I didn't really have any vacation last summer when I was busy switching jobs from the guitar store to Whole Foods.

So to boil it back down to the original question, I guess what I am asking advice for is A) do I take $1000 out of savings and get a pre-paid vacation only debit card, or B) use my regular credit card and pay it off when it is all said and done out of that very same savings account, and possibly not pay it off all at once? ]]> Personal Finance SiouzQ. http://www.simplelivingforum.net/showthread.php?8351-How-To-Pay-For-Vacation-long http://www.simplelivingforum.net/showthread.php?8332-Establishing-credit&goto=newpost Mon, 03 Jun 2013 04:43:53 GMT I'm 28 years old and have never used a credit card. My parents were always concerned about money as I grew up, so I've always been very suspicious of them; I save and wait for larger purchases. The only exception is the college loans I took out, which I am steadily paying off with an eye toward fulfilling them early. Right now my parents and I live together, and I say it that way because I'm not a moocher. I buy a lot of their groceries and pay some of their bills. But I'd like to have an apartment, and even a home one day, and I know to get those I'll have to establish a good credit rating. So: how do you do that? My bank teller is constantly asking me to consider opening a line of credit, and she's mentioned the possibility of a secured credit card for people who haven't established a rating yet. How effective would making small purchases with a credit card, then immediately paying the balance, be at building my rating? What kind of rate rise might I expect from such an approach if I did it once a month or so over the course of a year?

(The approach isn't particularly attractive to me, because credit cards just seem dirty...plus, being an aspiring minimalist, I don't buy much at all. :laff:) ]]> Personal Finance smellincoffee http://www.simplelivingforum.net/showthread.php?8332-Establishing-credit http://www.simplelivingforum.net/showthread.php?8282-70k-in-credit-cards-paid-off!&goto=newpost Tue, 28 May 2013 18:31:48 GMT I'm not much of a poster but I've been around a long long time. 4 years ago I bought a house while I was getting my master's degree. I made 65k a year. Somehow in the next 6 months I managed to accumulate $70,320 in credit card debt along with my 70k in student loans. At the end of 2009 the minimum payments on the cards and my mortgage and electric were more than than my take home pay. I cut everything out that cost money and I planned out my cash flow a year ahead of time. Using my very small savings of 3k, I managed to keep current on all my payments and bills, and I paid off all of the credit card debt in 3 and a half years. I have never been so proud of myself as I was when I made the last transfer to pay off the final amount.

I made a list of every item I bought that made up that 70k and as I paid down the balances I subtracted the oldest items. By the end, I was only paying off interest. Also during those same 3 and a half years, I met the most wonderful man and ended up married to him. I told him about my debt 4 months into the relationship with the intention of letting him go if it was too much for him. He stuck around, because I was working so hard to pay it off. And while he probably paid for more of our dates than I did, I never let him help me because it was my responsibility. And today, I have a credit score above 800. I still have student loans to take care of but my income did go up because of them and they are not at credit card rates. And I know I can do it, since the hard part is behind me.

The best part of it all? Going out and buying some new clothes, with cash of course! I had 1 pair of pants, a couple of t-shirts and a couple of sweaters and a pair of shoes with holes in the soles. I feel so much more put together now with just a few more outfits. ]]> Personal Finance Jessamyn http://www.simplelivingforum.net/showthread.php?8282-70k-in-credit-cards-paid-off! http://www.simplelivingforum.net/showthread.php?8273-Vanguard-as-advisors&goto=newpost Mon, 27 May 2013 22:09:48 GMT After years of "sort of" being our own financial advisors, we finally hired a "fee-only" advisor and then in the process of putting our money in this fund, that fund, this brokerage account within Vanguard, I was hesitant to admit that I thought this guy would just find us mutual funds in Vanguard. Long story short, there were all of these addendums to everything...if this happens with the stock market, do this, if interest rates rise....

Anyway, my latest thought is that I pay 250.00 flat fee to have Vanguard help me decide where to put my money.(That is how much an adviser costs.) Someplace simple. We are not good at monitoring things and the last shot at this was overwhelming. I'm 53 and not that far away from retiring. I need to stop worrying, and my dh just doesn't really pay attention. I think it overwhelms him much more than me. Good idea? Bad idea? ]]> Personal Finance Paige http://www.simplelivingforum.net/showthread.php?8273-Vanguard-as-advisors http://www.simplelivingforum.net/showthread.php?8269-health-insruance-is-going-up-70-a-month-sigh&goto=newpost Mon, 27 May 2013 16:06:16 GMT So I think I actually make less than when i started here 3 years ago, I need to follow up with this because I pay the health insurance for the... So I think I actually make less than when i started here 3 years ago, I need to follow up with this because I pay the health insurance for the children and I need to have an adjustment from their dad. I am hoping to find a quick way to deal with that, however the recent issues with our bankruptcy has shown that between him and his lawyer I cannot expect anything approaching effective communication from either one.

Okay gottz complete the sign up process. ]]> Personal Finance Zoe Girl http://www.simplelivingforum.net/showthread.php?8269-health-insruance-is-going-up-70-a-month-sigh http://www.simplelivingforum.net/showthread.php?8238-BK-are-you-as-sick-of-this-as-I-am&goto=newpost Tue, 21 May 2013 16:48:49 GMT I just found out that the settlement is still on the table until June 16th by the collection agency. I just need in writing that my ex will not sue... I just found out that the settlement is still on the table until June 16th by the collection agency. I just need in writing that my ex will not sue me. I called his lawyer today to see if I can get that, or if he is planning on suing me. I think this could be a good deal, it is worth something to feel I was not manipulated or bullied into BK when I had worked out a deal that I felt good about.

Over the assets, I understand on advice of an attorney what they can account for in the overal deal. I don't really have anything that is able to be hidden, not that I would. The worksheet is thorough, like asking about money owed to me or if I am expecting certain assets in the near future. I don't have a business so nothing is complicated.

You guys are totally awesome, I will take you all out for virtual ice cream when this is handled and I have financially recovered!! ]]> Personal Finance Zoe Girl http://www.simplelivingforum.net/showthread.php?8238-BK-are-you-as-sick-of-this-as-I-am http://www.simplelivingforum.net/showthread.php?8233-Paying-Cash-Only-Challenge!!!&goto=newpost Mon, 20 May 2013 16:20:27 GMT I wonder if there is anyone paying cash for purchases still? I tried paying cash and realized how much I was spending physically seeing the money go.... I wonder if there is anyone paying cash for purchases still? I tried paying cash and realized how much I was spending physically seeing the money go. Debit cards are handy but we don't really see the money leave our pockets. I will try to pay cash for groceries and gas. No one really goes to the cashier's office to pay bills.(Remember the good old days-with people interactions good or bad included).I want to save up for something when I get the money I will buy it with cash. I do get a discount at my gas station for paying with cash-that's an incentive.:cool: ]]> Personal Finance sylvia http://www.simplelivingforum.net/showthread.php?8233-Paying-Cash-Only-Challenge!!! http://www.simplelivingforum.net/showthread.php?8230-What-about-that-stock-market!&goto=newpost Mon, 20 May 2013 13:15:34 GMT I am a conservative investor, but have stubbornly held on to some indexed stock funds through thick and thin, which up until last year was mostly... I am a conservative investor, but have stubbornly held on to some indexed stock funds through thick and thin, which up until last year was mostly thin. The last couple of years have given a pretty decent return and I think this year alone returns are up around 15% for just the first few months of the year. Now, when I look back at five and ten year returns, they don't look too bad and maybe are returning to a mean growth rate.

Now I'm starting to wonder what bubble will be next? It seems like that is nature of the cycles and it is time to rebalance into something more conservative, which unfortunately means low interest rates. I'm also thinking it won't be long until interest rates will edge up, but that's anyone's guess.

Anyone thinking similar thoughts? Has the recent uptick increased your confidence in the market any? ]]> Personal Finance Rogar http://www.simplelivingforum.net/showthread.php?8230-What-about-that-stock-market!