Countdown to Europe & moving: 3 months to go

These countdowns seem to be coming more frequently now, but it’s only because time is flying. I’m not complaining, though. Everything is coming together now. I’m pretty much done planning for Europe. Unfortunately, I can’t say the same for moving. I feel like planning for that has barely even begun.

Last week, our passports arrived in the mail. It’s exciting, and it’s a relief. We applied about 8 weeks before we’ll need them for our cruise to the Bahamas, so we’re lucky they were processed so quickly (less than a month).

The only thing left for us to do is book our train tickets. We’re riding a train from London to Amsterdam and another train from Amsterdam to Paris. We can’t book tickets more than three months in advance, but next week we’ll be able to reserve our seats. Once we’ve purchased our train tickets, we’ll have everything booked!

We’ve talked a little bit about an itinerary, and I’ve asked everyone I know who’s traveled abroad to tell me what we must see. Honestly, though, I’m wary about over-planning. I want to relax while we’re there, and I don’t want to feel like we have to be doing something every second. We’ve made a list of the things we absolutely must see. Beyond that, we’re trying to keep things as loose as possible.

There’s nothing much to report as far as moving goes. To be honest, I’ve been in denial about what I need to do. The guest room where visitors used to sleep? It’s completely overrun with boxes and various items with which we don’t know what to do. I’ve been talking about clearing some of this clutter for months now, but I’ve yet to do anything. I’m sure this will be like every other time I’ve moved — I’ll put off cleaning until it’s time to pack, and then I’ll drive myself crazy trying to get rid of stuff and pack boxes simultaneously. I’ll probably never learn.

But who wants to think about packing and cleaning when I could be planning for Europe? Besides, think of how fun it will be when it’s time for me to pack and I’m going through 3 years of useless junk!

Photo by pedrosimoes7

Over 300 hours of entertainment for $2.99

Do you have an iPhone? Are you a fan of “This American Life“? If you’re not, you should be, and the This American Life iPhone app is a great way to become one.

“This American Life” is a public radio show that offers a glimpse into the lives of real Americans through quirky stories and interviews. Each week, they feature a theme and the radio show includes different kinds of stories about that theme. One of my favorite episodes are “Somewhere Out There,” which explores the idea of soul mates, and “Matchmakers,” which focuses on (you guessed it) matchmakers.

For just $2.99, you’ll have access to almost every episode of the show ever produced. Tony and I love to listen to the podcasts on road trips, and with this app we won’t have to burn tons of CDs every time we take a trip.

It costs 99 cents per episode to download them individually. With almost 400 episodes in the catalog, this is an incredible price for portable streaming access to all of them. For a tour of the app and all its features by host Ira Glass himself, go here.

Take it from me, this is a fantastic way to spend $2.99. “This American Life” is absolutely the most interesting and entertaining radio show on the air, and you will love it. I promise.

If you don’t have an iPhone, you can stream episodes for free online. Take some time away from the TV this weekend to check it out.

Where we’re going & how far we’ve come

Last week after I  mapped out financial goals for the next 3 years, I felt overwhelmed. Whenever I set a new goal, especially one as lofty as saving $20,000 for a house within three years, I go through a period where it feels impossible.

I have to remind myself of how far we’ve come. I remind myself where we were just three years ago — living paycheck-to-paycheck with an empty savings account.

I remember how I felt when I started this blog a year and a half ago. Simple goals like building an emergency fund, starting a retirement account, and saving for our move in three years on our meager income felt so far away. It might as well have been a million dollars.

I think back to last January when Tony and I started talking about our crazy plan to go to Europe. I wanted to make it happen, but I doubted whether we could save that much money in addition to our emergency fund and moving fund.

But step by step, dollar by dollar, we met our goals. We learned to spend less and save more without compromising our comfort. We learned that determination and good planning can make even the most difficult goals a reality.

When we finally completed our emergency fund and saved enough for Europe, I felt like I’d just finished my last final exam. I was relieved and proud. We’d come so far. That’s partly why I waited so long to set new goals. I wanted to revel a little — to feel like we’d finally made it — before starting over again.

It’s time to move on, though. There’s no finish line for frugality. There are always new challenges to overcome and new goals to accomplish. That’s part of the fun of it.

This is only the beginning, and we have a long way to go. With such a long road ahead of us, it helps to look back on how far we’ve come, and remind ourselves that each step is taking us closer to the next goal. Each time we hit a new landmark, we’ll be a little more stable, a little more settled, and a little more confident in our ability to get to the next one.

Photo by cdm

Dedicated to all seven (yes, seven) of my cars

Yesterday, I wrote about the pros and cons of financing vs. buying a used car with cash. At the end of the post, I briefly mentioned that one of the reasons I don’t mind financing is because I’ve driven six unreliable cars since high school. While I hated most of those cars by the time they died, they certainly left me with a lot of stories, and I’m sharing them in this post.

This is a long one, and it’s a little off topic, but if you’re interested in reading a different kind of writing than what I usually post here, please click through.

Continue reading →

Financing a car vs. paying cash for an older vehicle

Let’s say you have $5,000 available to purchase a car, and you need it right now. You can technically afford to add a monthly payment to your finances, but of course that will take away from the amount you’re able to save each month.

You need to decide whether you want to use that $5,000 as a down payment for a financed car or use it to pay cash for an older car with a lot of miles on it.

Let’s look at some of the pros and cons of each:

Paying cash for an older car

Pros

  • No monthly car payment
  • More money to put toward savings
  • Lower insurance rates
  • Lower taxes

Cons

  • Higher maintenance fees
  • Unreliable
  • It’s a gamble. You may drive it for years with no problems, or the engine could die and leave you without a vehicle a few months later.
  • Depending on the age and type of vehicle, gas consumption is likely to be higher than a newer car.

Financing a used car

Pros

  • Certified cars come with warranties that promise reliability.
  • Less likely to have problems soon

Cons

  • Still a gamble. You don’t know how the previous owner cared for the car, so you could end up with a car payment and high repair costs.
  • Higher financing interest rates than brand new vehicles

Financing a new car

Pros

  • Guaranteed reliability through warranties.
  • If you’re the only owner, you can care for it diligently and drive it for 10+ years.
  • Possible tax incentives on cars with better gas mileage.
  • Lowest possible interest rates for financing.

Cons

  • High monthly payment.
  • High taxes.
  • High insurance rates.

I don’t really have an answer. To me, it’s a toss-up, and used cars are a gamble. You might save a lot of money, but you’ll end up funneling it back into the car for repairs. We haven’t decided what we’ll do for our next car, but we’re leaning toward financing a certified used car.

Here’s why:  I drove a lot of old beaters in high school and college. My dad is a relatively good mechanic, so this wasn’t a problem in high school. When I broke down, he’d pick me up, and get my car running again. But in college, I ended up stranded a lot with no choice but to tow my car to a garage and charge the repairs on a credit card. Ouch.

When we moved to North Carolina, Tony and I made the decision that we’d rather share one new, reliable car than have two unreliable beaters. So that’s what we did. And I don’t regret it. We bought a reasonable economy car, but it was brand new. Yes, there’s a payment every month, but I’d rather pay a car payment every month than wonder when I’ll be stranded again by a breakdown.

Many personal finance bloggers will say, “Yes, you’re likely to pay for repairs on a used car, but it still won’t add up to the amount you’ll lose in depreciation and interest on a financed car.” That’s true. But honestly? It’s not about the money for me. There was absolutely nothing I hated more than breaking down at a stoplight or being stranded in the cold after working late. I’d rather pay 100 car payments than deal with that again.

What about you?

Photo by smcgee

How a tight budget can be a blessing

Three years ago, we moved to North Carolina with a small nest egg but no real plans. Tony had a job waiting for him (an extremely low-paying teaching assistantship), but I spent three months looking for a full-time job in my field before I starting working part-time. We were frugal out of necessity. it’s scary to watch money leaving your account every month with no income. We didn’t know how to budget, though, and three months with no income depleted our savings pretty quickly.

Once I started working part-time, things were still extremely tight. During those 10 months, I learned most of what I know about finance out of necessity. Our limited income required that we prioritize our spending and avoid buying anything that wasn’t completely necessary. Frugality was easier then, because the temptation to spend wasn’t there. We were just trying to survive without getting behind on our bills.

Not only did we survive, but we paid off most of our credit card debt during that time. By the time I finally found a full-time job, though, our savings account was pretty much empty. We spent the next year and a half building it back up and saving for other goals.

Ever since our income increased, though, staying committed to frugality has become harder. Now that the need to plan and save isn’t quite so urgent, it’s tougher to make the right choices. Three years ago, if we overspent, we might not be able to pay our rent. These days, the consequences of overspending aren’t as concrete. It may mean that it takes us a little more time to buy a house or pay off our student loans, but we’re in no immediate danger.

Because of this mindset, I’m actually looking forward to hunkering down and going back into survivor mode after the move. I’m hoping that the months we spend searching for jobs will help us recommit to frugality, and once we’re finally in our own place building our savings again, we’ll have a renewed motivation to meet our goals quickly.

If you’re currently living in survivor mode, I have a little advice: Take advantage of this time without temptation and learn to be happy with what you have. Commit to this lifestyle now while temptation is low. As your income increases, don’t let your spending increase with it.

In my experience, tougher times can be a blessing. It’s a time to reflect on what’s really important in life, learn to be happy with less money, and develop habits that will help you save even more as your financial situation improves. As tight as I know things will be for us after the move, I’m looking forward to taking advantage of this opportunity to focus on our priorities.

Pixar & pain killers

I made it through the surgery just fine, and as all of you predicted it wasn’t nearly as bad as I thought it would be. I can’t thank you enough for sharing your experiences with me. The scariest part was not knowing what I was getting myself into, so your encouragement and advice helped calm my nerves more than I can even express.

I’m swollen and sore, but I’m content because I’m all cuddled up with a very concerned Howie, and Tony has canceled classes today to take care of me. A Pixar movie marathon and lots of pain meds are the only thing on my agenda.

Happy Friday to all of you, and eat something delicious tonight for me! It’s nothing but applesauce and ice cream for me for the next couple days. :)

How I saved $5 by reading a label

This week I came down with a cold. The same week I’m getting my wisdom teeth out, of course. I’ve already contacted my oral surgeon, and he says the mild congestion I’m suffering won’t affect my surgery tomorrow. Whew. I didn’t want to put it off another week.

But that’s not the point of the this post. I want to quickly tell you about my trip to CVS last night.

When I’m sick, the most effective medication for me is a blend of ibuprofen and decongestant. I don’t know why, but ibuprofen seems to work better for me than acetaminophen.

I stopped at CVS on my way home from work to pick some up. I’m used to paying high prices for even generic versions of this cold medicine. The cost was $10 for 24 pills.

I started checking alternatives to see if I could find something similar for less money. I looked at a box of generic Sudafed, which cost only $5 for 24 pills. When I compared the ingredients, I realized that the only difference between the generic Sudafed and the generic Advil Cold and Sinus was that the Advil included a dose of ibuprofen. The generic Sudafed had the same exact decongestant in the same amount (30mg of pseudoephedrine).

All this time I’ve been paying double for the generic Advil Cold and Sinus when I could have just picked up generic Sudafed and supplemented it with a dose of ibuprofen, which I always have on hand at home. This morning I took a dose of the decongestant along with a dose of ibuprofen, and it’s just as effective.

The lesson? Next time you’re browsing medications, be sure to compare ingredients and think about what you have on hand at home. Otherwise you could end up paying twice as much to buy something that’s already in your medicine cabinet.

Photo by zingersb

Note to self: Never Google “wisdom teeth death”

Tomorrow, an oral surgeon will be ripping my wisdom teeth from my skull.

I’ve been putting this off for over five years, and my fear of surgery is now bordering on pathological. I know I’m being a wuss, but I’ve never had any kind of surgery. I’ve never been sedated in my life. And since I’m a textbook type-A control freak, the idea of being knocked out for an hour while someone drills into my head with power tools is just a little terrifying. It’s not the pain that scares me. It almost seems more appealing to stay awake for the surgery. Almost.

Last Thursday I went in for a consultation. I ended up waiting in the scary little room staring at the x-rays that had doomed me for 45 minutes. I could hear the oral surgeon loudly consulting with the man in the next room. Apparently, he was about 100 years old with a 215/95 blood pressure. They canceled his surgery and called an ambulance because the doctor was convinced he was about to suffer a stroke. I hope he’s okay, and it seems they caught his symptoms early enough that they would be able to treat him, but seriously? Why did I have to end up in the room next to the guy who left the office in an ambulance? I could just picture myself being carted away in a speeding ambulance due to my rare but life-threatening complications.

When the doctor finally came in to talk to me, he spent 20 minutes telling me about risks and possible complications and explaining stitches in my gums and dry sockets and nerve damage. I couldn’t help but think this whole wisdom teeth removal thing was just a bad idea. Those teeth aren’t hurting anything. They’ve been there for years. The only reason I’m removing the things is because my dentist has been telling me to do it for five years.

But this is the responsible thing to do. We don’t know if we’ll continue our dental coverage when we move since we’ll be paying so much for health insurance already, so we’re trying to get any potential problems out of the way now. I’d be lying if I didn’t admit I had some serious doubts when I saw my estimated bill, though. Let’s just say, I can think of a million other things I’d rather do with my weekend and my money than have teeth ripped from my skull.

When I got home, I broke my number one rule when it comes to medical care: I Googled my condition. If there’s one thing I’ve learned from Google searching any symptom or medical condition, it’s that Google only gives you one prognosis: IMMINENT DEATH.

Sniffles? You’re suffering a rare strain of the flu that will kill you. Headaches? Rush to an emergency room immediately before that aneurism kills you. Mosquito bite? YOU HAVE WEST NILE VIRUS, AND YOU ARE GOING TO DIE.

So I guess I shouldn’t have been surprised when I found this.

All of this is to say, I won’t be around this weekend as I recover, and I might not get back to regular posting until Tuesday or Wednesday. I want to try to get some writing done this weekend, but I have no idea how out of it I’ll be. Wish me luck and strength to stop being a wimp.