We'll be changing from Geico to Allstate here in August.
I found out we can save over $110/6 months by switching.
Also, for the sake of simplicity, I'm going to put us on the six-month plan if they offer it. Right now at Geico we have a 4-month plan. I want simplicity. Absolute simplicity. One even payment a month is a lot easier to deal with than four unequal payments and two months "off". Drives me nuts. So, if they offer it, we're going to take advantage of it.
Monday, May 12, 2008
Yay, I've got some opinions!
I've read about six books from front to back now on the topic of personal finance.
I'm surprised how infrequently the experts have anything close to the same opinion. They really are divided on a number of issues. I was surprised to see that I had formed some of my own. I normally have quite a few, you see, but I wait to form anything strong until I've educated myself some more.
The Emergency Fund
Suze Ormand says no emergency fund until all credit card debt has been paid off. I disagree. I feel that I have a good reason to disagree; my husband has been laid of twice in the last year. He was working in leasing and estimating for the construction industry and down here many people have lost their jobs. Both times we had enough money saved that we were able to pay our bills until he found another job. Unemployment helped a lot, too. Without that savings we would have been screwed and even deeper in debt.
Credit Cards
Ms. Ormand also says that your emergency fund can temporarily be credit cards. She also suggests that once all your debt is paid off, you apply for as many cards as you can until you have about eight month's worth of income available as your limit. Then you don't use them unless you need them. This would be a recipe for disaster in our family. I would imagine that most people would be the same way. Like telling an alcoholic, "Hey, I know you aren't going to use this alcohol unless it's a real emergency--maybe a buddy loses a leg and you need to cleanse the wound--but you should have enough laying around anyway." My name is Lizz and I have a problem with credit cards. Therefore I have a bare minimum. And some would argue that you don't truly need any.
Bulk Buying
One of the authors, I think it might have been in the Automatic Millionaire but I'm not sure (I returned the books I had read as soon as I read them--I'm awful about late fees and am trying to change that), suggests that you should not stock up on things that you use. You should instead use the money you would have spent on these items and save it. Then, when you need it, you buy one of the items.
I never used coupons or anything like that until I came across The Grocery Game. It's been an inexpensive education that has really changed the way that I shop. We get razors, shaving cream, body wash, toothpaste, feminine products... you name it and we have gotten it for free or very very cheap. Name brand items that we use. At first I was so excited about getting free stuff that I "bought" a lot of things we wouldn't use. It didn't go to waste, however. My best friends have five kids so I cleaned out my stockpile and gave them lots of goodies.
Still, why would you pay $9.99 for a razor when you can get it for free? Or pay $3.59 for a cleaning solution when you can wait until they are B1G1 and then use coupons to get two for $0.27 each?
Yes, we're spending money each month on things we'll use in the future. It's not a "necessary item" right this second. And yes, we could be earning interest on that money. However, by doing things this way we've done amazing things to our grocery bill and we've saved thousands of dollars on things we needed anyway. (I kept a spreadsheet for a long time. I hit a thousand about four months into The Game.) I still have some items left that I bought last summer when they were dirt cheap. Do razors spoil? No.
The author suggested that having a closet full of toilet paper isn't the best use of money. I suggest that the author has never found their favorite uber-expensive TP on sale of twelve cents a roll. (The one brand loyalty we have is to Charmin.) It's a definite "need" item and paying the normal price is crazy.
I'm surprised how infrequently the experts have anything close to the same opinion. They really are divided on a number of issues. I was surprised to see that I had formed some of my own. I normally have quite a few, you see, but I wait to form anything strong until I've educated myself some more.
The Emergency Fund
Suze Ormand says no emergency fund until all credit card debt has been paid off. I disagree. I feel that I have a good reason to disagree; my husband has been laid of twice in the last year. He was working in leasing and estimating for the construction industry and down here many people have lost their jobs. Both times we had enough money saved that we were able to pay our bills until he found another job. Unemployment helped a lot, too. Without that savings we would have been screwed and even deeper in debt.
Credit Cards
Ms. Ormand also says that your emergency fund can temporarily be credit cards. She also suggests that once all your debt is paid off, you apply for as many cards as you can until you have about eight month's worth of income available as your limit. Then you don't use them unless you need them. This would be a recipe for disaster in our family. I would imagine that most people would be the same way. Like telling an alcoholic, "Hey, I know you aren't going to use this alcohol unless it's a real emergency--maybe a buddy loses a leg and you need to cleanse the wound--but you should have enough laying around anyway." My name is Lizz and I have a problem with credit cards. Therefore I have a bare minimum. And some would argue that you don't truly need any.
Bulk Buying
One of the authors, I think it might have been in the Automatic Millionaire but I'm not sure (I returned the books I had read as soon as I read them--I'm awful about late fees and am trying to change that), suggests that you should not stock up on things that you use. You should instead use the money you would have spent on these items and save it. Then, when you need it, you buy one of the items.
I never used coupons or anything like that until I came across The Grocery Game. It's been an inexpensive education that has really changed the way that I shop. We get razors, shaving cream, body wash, toothpaste, feminine products... you name it and we have gotten it for free or very very cheap. Name brand items that we use. At first I was so excited about getting free stuff that I "bought" a lot of things we wouldn't use. It didn't go to waste, however. My best friends have five kids so I cleaned out my stockpile and gave them lots of goodies.
Still, why would you pay $9.99 for a razor when you can get it for free? Or pay $3.59 for a cleaning solution when you can wait until they are B1G1 and then use coupons to get two for $0.27 each?
Yes, we're spending money each month on things we'll use in the future. It's not a "necessary item" right this second. And yes, we could be earning interest on that money. However, by doing things this way we've done amazing things to our grocery bill and we've saved thousands of dollars on things we needed anyway. (I kept a spreadsheet for a long time. I hit a thousand about four months into The Game.) I still have some items left that I bought last summer when they were dirt cheap. Do razors spoil? No.
The author suggested that having a closet full of toilet paper isn't the best use of money. I suggest that the author has never found their favorite uber-expensive TP on sale of twelve cents a roll. (The one brand loyalty we have is to Charmin.) It's a definite "need" item and paying the normal price is crazy.
Sunday, May 11, 2008
Car Options
My posts make more sense when the first posts are actually posted...
Option 1:
48-Month Lease
2009 Toyota Corolla
About $2000 due at signing
Pros:
Gets excellent gas mileage
Lease = tax write off (part of it)
Cons:
Big OOP cost
Insurance goes up over $50
The lease is for four years
12,000 miles/year
(Note: "due at signing" is very likely going to end up changing as part of the negotiations since we're buying 2 cars... one for us and one by my mom)
Option 2:
36-Month Lease
2008 PT Cruiser
$1995 due at signing
Pros:
I've wanted a PT Cruiser since the first time I saw one, about three months after they came out.
Much more interior room; hubby is 6'4", I'm 5'10"
Easier for business to carry equipment
Lease is only for 3 years
Insurance goes up less than $20
Lease = tax write off (part of it)
Cons:
Big OOP cost
Gas mileage sucks
(Note: The $2.99 gas card for three years only is a better deal than the Corolla if gas goes over $5.50/gallon)
Option 3:
Purchase
5 year finance
2007 PT Cruiser
under 10,000 miles
Pros:
Excellent price - under 11k drive-out price
Financing is same monthly payment as lease
Lifetime Powertrain Warranty
Own vehicle at the end
"New" used vehicle
Can trade in
No mileage worries
Cons:
Monthly payments for five years
Not sure if we get the gas card or not
Option 1:
48-Month Lease
2009 Toyota Corolla
About $2000 due at signing
Pros:
Gets excellent gas mileage
Lease = tax write off (part of it)
Cons:
Big OOP cost
Insurance goes up over $50
The lease is for four years
12,000 miles/year
(Note: "due at signing" is very likely going to end up changing as part of the negotiations since we're buying 2 cars... one for us and one by my mom)
Option 2:
36-Month Lease
2008 PT Cruiser
$1995 due at signing
Pros:
I've wanted a PT Cruiser since the first time I saw one, about three months after they came out.
Much more interior room; hubby is 6'4", I'm 5'10"
Easier for business to carry equipment
Lease is only for 3 years
Insurance goes up less than $20
Lease = tax write off (part of it)
Cons:
Big OOP cost
Gas mileage sucks
(Note: The $2.99 gas card for three years only is a better deal than the Corolla if gas goes over $5.50/gallon)
Option 3:
Purchase
5 year finance
2007 PT Cruiser
under 10,000 miles
Pros:
Excellent price - under 11k drive-out price
Financing is same monthly payment as lease
Lifetime Powertrain Warranty
Own vehicle at the end
"New" used vehicle
Can trade in
No mileage worries
Cons:
Monthly payments for five years
Not sure if we get the gas card or not
When to throw in the towel?
(My Husband and the Terrible, Horrible, No Good, Very Bad Day (PART 2))
The value of my husband's car, based on age, mileage, and condition is under $800. Add in some of the things that need to be fixed and you'd have to be a real sucker. It runs and has A/C, so it has that going for it. It also has fumes so bad that 1) my child is not allowed in it and 2) if it's parked in the garage the door needs to be cracked for a few hours because the whole house will stink. On top of that something is wrong with the airbag. It starts... almost... every time he drives it though sometimes he needs to try a few times. Those are the basic issues, anyway.
But again, it runs. And he only needs it to go to work. However, in order for us to feel safe with that we need to:
At what point do we throw in the towel? When do we say, "You know, I don't want to put half the value or all the value of this car back into it when we know it needs at least another thousand dollars of other repairs within the next year,"?
We have $400. It's sitting in our account. Heck, I saved $125 this month towards automobile repairs, so we'd only have to dent the rest of our savings.
I hate his car. I really really hate it. I haven't ridden it in several years. It stinks, it's noisy, and I'm always terrified that we'll be somewhere and then can't leave because it won't start.
The value of my husband's car, based on age, mileage, and condition is under $800. Add in some of the things that need to be fixed and you'd have to be a real sucker. It runs and has A/C, so it has that going for it. It also has fumes so bad that 1) my child is not allowed in it and 2) if it's parked in the garage the door needs to be cracked for a few hours because the whole house will stink. On top of that something is wrong with the airbag. It starts... almost... every time he drives it though sometimes he needs to try a few times. Those are the basic issues, anyway.
But again, it runs. And he only needs it to go to work. However, in order for us to feel safe with that we need to:
- Pay the dealer $110 for a diagnostic of the airbag system.
- Pay to either repair the system (the least expensive option according to one mechanic is the clock spring which is $300ish. Since the horn works, this is probably not the case. However, my research on the internet says it could be a few other things in the $60-$80 range.)
- Or pay to disconnect the system (and no, he does not have an airbag on/off switch as some cars do)
At what point do we throw in the towel? When do we say, "You know, I don't want to put half the value or all the value of this car back into it when we know it needs at least another thousand dollars of other repairs within the next year,"?
We have $400. It's sitting in our account. Heck, I saved $125 this month towards automobile repairs, so we'd only have to dent the rest of our savings.
I hate his car. I really really hate it. I haven't ridden it in several years. It stinks, it's noisy, and I'm always terrified that we'll be somewhere and then can't leave because it won't start.
Mother's Day
My hubby did good. It's amazing how a $3.00 bag of a woman's favorite chocolate, a card from the husband, and a card "from" the baby can feel like a diamond necklace. (Of course, I've never really gotten a diamond necklace, so I might be totally off base. If anyone wants to educate me on this matter by giving me one, I'd be willing to revise my opinion!)
My mom hates her digital camera. It's a Sony Mavica that takes pictures on a floppy disk. It's heavy, bulky, has a longggg shutter lag that always frustrates her, a preview screen that cannot be seen outside, and takes very low resolution pictures (compared to today's models).
We decided that with the money we budgeted for mother's day and her birthday that we were going to get her a new digital camera. We went to two stores today and found what we wanted at Circuit City. We were also able to get her a 2 GB memory card for only $17. She loves her new Kodak Easy Share camera.
My mom hates her digital camera. It's a Sony Mavica that takes pictures on a floppy disk. It's heavy, bulky, has a longggg shutter lag that always frustrates her, a preview screen that cannot be seen outside, and takes very low resolution pictures (compared to today's models).
We decided that with the money we budgeted for mother's day and her birthday that we were going to get her a new digital camera. We went to two stores today and found what we wanted at Circuit City. We were also able to get her a 2 GB memory card for only $17. She loves her new Kodak Easy Share camera.
The easiest decision ever
We arrived at the Toyota dealership and after a brief recap of our needs (the internet rep I was dealing with had the day off) we were on our way towards the Corolla. I got inside and was instructed how to move the seat down and back, change the tilt, and maneuver the steering wheel. Right off I could tell I was in trouble. I would be able to drive the car--barely. And that was with everything set optimally.
I looked at my husband and said, "before I even put the key in this car, you need to see if you'll fit."
With his knee brace on, there was no way that he'd be able to drive the car. Without it he could drive it, but only if he really had to.
We also tried out the Matrix which had the same lease. They tried to get us to try a Scion, only $30 a month more. No, thanks.
I called mom on the way home. All of us were cracking up about it. When we got back she admitted that's why she didn't want to go with us. I asked why she hadn't told us about it. She said we needed to see for ourselves. I assume she meant that she really wanted us to feel like we had done due diligence in looking into other cars so we could get our PT Cruiser with a clear conscious.
Tomorrow mom and I are going back to Chrysler so she can test drive. If she likes them I'm going to work on negotiating the price lower and seeing if I can get us gas cards. I think they're only for the 2008. Since these two are 2007 they don't apply. Cross your fingers and wish me luck!
If things work out favorably I'll make a small deposit so that when our Capital One checks come in the mail we can complete the deal. I can't apply for financing without my hubby so there's no point in doing that tomorrow. Mom is undecided.
The last thing we're going to do, when we go back to write the actual check and check their financing, is to say, "by the way, what would you give us for our cars?"
I looked at my husband and said, "before I even put the key in this car, you need to see if you'll fit."
With his knee brace on, there was no way that he'd be able to drive the car. Without it he could drive it, but only if he really had to.
We also tried out the Matrix which had the same lease. They tried to get us to try a Scion, only $30 a month more. No, thanks.
I called mom on the way home. All of us were cracking up about it. When we got back she admitted that's why she didn't want to go with us. I asked why she hadn't told us about it. She said we needed to see for ourselves. I assume she meant that she really wanted us to feel like we had done due diligence in looking into other cars so we could get our PT Cruiser with a clear conscious.
Tomorrow mom and I are going back to Chrysler so she can test drive. If she likes them I'm going to work on negotiating the price lower and seeing if I can get us gas cards. I think they're only for the 2008. Since these two are 2007 they don't apply. Cross your fingers and wish me luck!
If things work out favorably I'll make a small deposit so that when our Capital One checks come in the mail we can complete the deal. I can't apply for financing without my hubby so there's no point in doing that tomorrow. Mom is undecided.
The last thing we're going to do, when we go back to write the actual check and check their financing, is to say, "by the way, what would you give us for our cars?"
Friday, May 9, 2008
My Husband and the Terrible, Horrible, No Good, Very Bad Day (PART 1)
The warning light for the airbag system turned on in hubby's Tuesday. I've talked to five different people--all who know things about cars--and I've gotten some conflicting advice... even from the same person!
The Tool at the local dealership (the same one, by the way, that missed a cracked axle in three visits which our non-dealership mechanic found on the first visit!) told me that we needed to make an appointment immediately. The airbag "could go off" if we hit a pothole or the curb. It might even go off randomly. And, he added, since it's a 1995 car the "airbag isn't nice and soft like the ones they have today; it's like burlap and will cut your husband's face up".
Yes, he really said that.
Hubby took this as an opportunity to call said service manager and chew him out. The "cut your face up" comment was incredibly inappropriate. Anyway, the same service manager gave us two other answers including that the airbag is disabled and shouldn't deploy. *sighs*
Four other people all said the same thing. 1) The airbag shouldn't deploy. 2) But since it's a Ford, you never know.
Wow.
Needless to say, he's a little nervous about driving his car!
(More on the issue later.)
Hubby woke up and told me he was taking his bike to work. No problem; it was a nice day outside. (For Florida nice day = "no hurricane heading our way, clear skies, and a slight wind so that 100 degrees only feels like 97.") I got the kid and had time to walk her into the nursery, open her diaper, and start cleaning her bum before the garage door went up again.
"What's up, love?"
"My bike... is broken."
At that point I had to crack up. It really sucked but both of us have gained a lot of perspective since our daughter was born. It was just a thing. (A thing that can be fixed for little money.) I had him finish snapping her onsie and put her in the car seat while I threw on some clothes and brushed my hair and teeth.
Off we went to his office. He wasn't even late. In fact, he was the first one to arrive.
He put the key in the lock and found out that his boss had given him the wrong one!
At that point I had pulled out of my parking space and was alongside the curb to the entryway of the office. I reparked the car, rolled down the windows, and waited with him until his coworker showed up.
That's how the day started. Luckily, thankfully, the rest of it was pretty good.
The Tool at the local dealership (the same one, by the way, that missed a cracked axle in three visits which our non-dealership mechanic found on the first visit!) told me that we needed to make an appointment immediately. The airbag "could go off" if we hit a pothole or the curb. It might even go off randomly. And, he added, since it's a 1995 car the "airbag isn't nice and soft like the ones they have today; it's like burlap and will cut your husband's face up".
Yes, he really said that.
Hubby took this as an opportunity to call said service manager and chew him out. The "cut your face up" comment was incredibly inappropriate. Anyway, the same service manager gave us two other answers including that the airbag is disabled and shouldn't deploy. *sighs*
Four other people all said the same thing. 1) The airbag shouldn't deploy. 2) But since it's a Ford, you never know.
Wow.
Needless to say, he's a little nervous about driving his car!
(More on the issue later.)
Hubby woke up and told me he was taking his bike to work. No problem; it was a nice day outside. (For Florida nice day = "no hurricane heading our way, clear skies, and a slight wind so that 100 degrees only feels like 97.") I got the kid and had time to walk her into the nursery, open her diaper, and start cleaning her bum before the garage door went up again.
"What's up, love?"
"My bike... is broken."
At that point I had to crack up. It really sucked but both of us have gained a lot of perspective since our daughter was born. It was just a thing. (A thing that can be fixed for little money.) I had him finish snapping her onsie and put her in the car seat while I threw on some clothes and brushed my hair and teeth.
Off we went to his office. He wasn't even late. In fact, he was the first one to arrive.
He put the key in the lock and found out that his boss had given him the wrong one!
At that point I had pulled out of my parking space and was alongside the curb to the entryway of the office. I reparked the car, rolled down the windows, and waited with him until his coworker showed up.
That's how the day started. Luckily, thankfully, the rest of it was pretty good.
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