Mortgage Monday: The Work Never Ends!

Or Both!

 While it has always been a constant project on our list of things to do, now that we own our own home, cleaning is something that I try to put greater emphasis on. And with so much more room than we have previously had in rentals, there is a lot of cleaning to do. It is a never ending list of things that need to be scrubbed, swept, washed, or rinsed. And that is just the things on the inside of the house.

Now that we have some property (and no management company), there is a lot of yard work that has yet to be done. While I should have taken care of many of these things immediately after settlement, it was a project that was quickly put on the back burner once the temperature got colder and the snow began to fall. After all, nothing like a fresh blanket of white to hide all the leaves still covering most of the planting beds.

We have been pretty good about keeping the interior of the house in relative order (organization is still lacking) but, now that the weather has turned warmer once again, all of the things that we have been putting off in the yard have to be addressed and, at this point, we are ill prepared to tackle the task. The first step is going to be buying a tractor and a better rake or leaf blower. After that it is all about setting aside the time to get things done.

However, the more I think about many of these things, the more I find myself considering hiring a cleaning and/or yard service company to take care of all these tasks. While it would undoubtedly add an additional line item on our budget, it may be worth the money so that we can spend more time with our son. After all, our schedules are still quite a bit hectic and blocking off another brick of time would be less than ideal. Definitely something to consider.

While the extra time and effort has been inconvenient at times, it is still well worth it as we are taking care of a place that we own rather than someone else’s property. It is important to remember that there are great things about being a homeowner and they definitely outweigh, by a large margin, the inconveniences, but it is not a utopian dream. There is work that comes with home ownership and also a sense of pride in caring for your property. Sometimes, though, you just have to figure out the best way to balance everything and we are definitely still working on that aspect.

Mortgage Monday: The Checks Start Now

With payment book from the bank in hand, the first of our many mortgage payments is due this week. While 30 years is a long time to be making payments at least we now find ourselves with an end date and with every payment we own a little bit more of our home. Of course, we hope that it doesn’t take us 30 years to clear this debt, at least this is the goal, so we are going to be sure to pay a little bit more each month toward principal.

Having already made an early payment it is a little disconcerting at first seeing the principal reduced by so little with every check. But, again, it is still giving us more equity each month compared to the simple evaporation of funds that we have experienced over the last several years. Now that is a disheartening number to think about. Even if your average monthly rent was $1200, over the course of five years you will have ended up paying $72,000 and have absolutely nothing to show for it. In the end, given the places that we have lived and the years that we have been renting, it is safe to say that our total is probably just north of $100,000. Seeing that principal going down by so little doesn’t seem that bad anymore.

Of course, now with us owning our home, we are also responsible for the maintenance of the house and surrounding property. A few other expenses should be expected and even with major repairs, it is still better than renting… and more cost effective given the amount of space that we now have. Each check brings us a little closer to what continues to be our goal… being debt free. While credit cards were the culprit in the past, at least now the debt is something tangible and something worthwhile.

And I will finish with this simple notion that seems to no longer be simple. While it is nice if our house increases in value over the years, all I want is the stability. If the value of the property were to stay the same I would be happy in the end. What is now seen as investment should be, once again, seen first and foremost as a home. That is how things used to be and how I view our new home. Paying interest is the price of being able to buy a home and have that stability. Our limited funds are now being applied toward a goal, something of value, and stability unlike the month to month uncertainty of the past. Now, each month, we can settle a little bit more.

Investing Again

When I started at my current company there were many things that were discussed. The firm was newly formed when I first walked through the door in September 2013. In fact, the owner of the company was still waiting for the cable company to arrive later that afternoon to set up the internet. It was an interesting experience and much different from the previous conversation I had with her.

It was during that initial discussion when we talked about the clients, my role in the company, and many of the other benefits that would be part of my employment including healthcare, profit sharing, and a 401K (among others). Every salary position I have ever had, and then some, have offered healthcare so that was not a surprise to me. However the other two piqued my interest and were really bonuses to the position that I was not expecting.

Since that time over a year and a half ago, she has been true to her word. While none of us expected any sort of profit sharing at the end of 2013 we weren’t really holding out for 2014 either. After all, we are a new company. However, we were all pleasantly surprised at the end of the year when we each received an extra deposit into our accounts (which was particularly useful at that point in time).

Toward the end of last year we also continued our conversations regarding setting up a 401K. It had taken some time but things were progressing and as the calendar turned over we all started contributing to the future. While we don’t have much extra at the moment, I started with a small contribution from each pay check.

While I have had investment accounts in the past, this was my first time having a 401K. Previous accounts have long since been liquidated to pay for graduate school and other expenses. Many would consider this a tremendous loss but given the fact that I finished graduate school in the spring of 2008, it wasn’t a bad way to use the funds.

Since that time, my ‘investments’ have been on a much smaller scale and consisting of hard assets. I honestly can’t recall how many times I bought silver (and a tiny bit of gold) over the past decade but it is safe to say that I didn’t lose money or break even. A coin here and there can add up especially before the market shifted and the prices began to spike.

All the small items were nice and served a purpose when we needed that little extra. Now, it is a great feeling to be contributing to our future even though it may be one small deduction from my pay every couple of weeks. It may not seem much at the moment, it never does, but it will certainly add up in the end (especially when I start decreasing my take home pay). And it sure beats flipping coins.

Investing In The Little Things

With so many things going on at the office and outside of the office with all of my other commitments and responsibilities there are some days when I spend very little time with my wife. While it is not an ideal situation, I have to keep busy and I enjoy the constant pace of life. Fortunately, my wife is very understanding of this recent shift but every once in a while I make sure that I step back and show her, in some way, that I appreciate her and support her in her work, her hobbies, and her education.

I try to listen when she needs an ear, embrace her when she needs a hug, and offer the little knowledge I have when she had a question but there are also other time when I just decide to do something a little more. When I am able, I try to include her (or at least offer) in some of the activities that I have going on constantly. I try to make her laugh as much as possible because she tends to get caught up in things and loses sight of the good things that happen every day. I try to do all of these things on a regular basis.

There are times when I wish I could have done more and other times when I try to think what I could have done differently to make things better but I am still a husband with flaws, as we all are, and so I am not always on top of these things. However, there are instances when things go right and all the other stuff going on kind of melts away. Sometimes it is as simple as relaxing with my wife laying on the couch or going out to a reasonably price lunch or dinner.

However, there are more extravagant moments (well, for us at least) when we go away for the weekend or occasions, like today, when we find an item on clearance that I know that my wife will get years of use out of. While searching for a number of things at Wal-Mart we walked by the electronics department and noticed a camera on clearance. We have been talking about replacing her Pentax for a while and now, seeing the severely slashed price, we had the opportunity to upgrade her. While there is a little bit of investment up front just the fact that we no longer have to buy packs and packs of AA batteries anymore will recoup our money in just over a year.

More importantly, it made my wife happy both in the moment and as she goes out on her little excursions during the warmer weather to take pictures. I have my hobby which I invest in on an ongoing basis and it is nice to invest a little in her hobby every once in a while. We both found the things that relax us and take our mind off of things for a little bit which makes the limited funds put into each of them worth the financial commitment. I can’t wait to see the amazing photos that she gets with the upgrade in her equipment!

Friends With Benefits

When trying to keep a budget and cut costs there is a small group of friends that are always there to help me out… membership cards and coupon. Whether its groceries or office supplies, oil changes or admission fees, I am always looking for ways to reduce the price of items and services. Sometimes I am able to save a little, sometimes I save a lot, and occasionally I can either get something for free or make money purchasing it.

No, I am not one of those extreme coupon people on TLC although I do get a kick out of watch that show. I simply take about 20 minutes each week and go through the circulars, mailings, and emails that I get, clip or copy them, and put them in an envelope. That’s it. It doesn’t take much effort at all and that basic process, combined with the free membership cards, usually averages about a thirty percent savings at the super market every week.

Over the course of the year, with regard to total dollars, that is the most significant chunk of my savings. However, there are other areas where I can save a significant amount at a much higher percentage. The most common of which are office supplies. Thanks to Staples, I am able to save anywhere between 50-75% on anything ranging from printers to paper to bottled water. This is also the place where they have paid me to buy supplies.

Again, this is very simple and requires minimal effort. What usually happens is that they will promote a 100% rebate offer for a product (most recently it happened to be 4x6 photo paper). So, if you are willing to wait a month for reimbursement they will essentially give you the product for free and credit your rewards account for the purchase. But you can take it a step further. By utilizing a coupon that takes a percentage off your total purchase (rebate items are not sale items so they are not exempt) you can essentially get a rebate back for more than you paid for the product.

Of course, as I have previously written about, sometimes I come across free items and free contests. If it’s free, and I don’t have to set aside time to do it, I am definitely interested. No time, money, or effort is a great, and rare, combination.

The other side to this cost saving equation is where some effort is definitely required. Usually, this is when you are looking for a specific item or brand and you have to shop around to find the best price. There is a simple way to ensure success: know the price match policies. You can look around and think you found the best price but, sometimes, you may forget to check a certain store or maybe that item goes on sale the following week. It’s a great safety net that can put money back into your pocket.

One last thing to remember is that while the savings on any given day or on any particular item may not seem like much it really adds up. Keep track, a rough estimate is fine, on how much money is left in your pocket by taking the time to pay attention to prices and using the system to your advantage. You would be surprised how quickly the dollars add up by simply investing a little effort and even less time. Or think about it this way… how much are you saving during an average week? How much time are you putting into this? With those two figures in hand, what is the hourly rate you are getting paid?

Let me, and all who happen to read this, know of your experiences. How do you save money? Where do you find the best deals? What is the best deal you have ever gotten on an item?