Monthly Archives: April 2010

On our way home

After months of planning and counting down, it’s finally time for us to head home.

We’ll be hitting the road to head back to Indiana this Saturday. We’ve only just begun to pack up, which means I’ll likely be too busy to post much this week. Unfortunately, I’m also quite ill, which is making packing a challenge — to say the least. I’m so thankful to Tony for picking up my slack. I couldn’t ask for a better husband and partner.

I’m sure I’ll have a lot to share once we get settled. For now, I hope you’ll check out the archives, leave a question in the comments, and bear with me while we journey 800 miles to our new home.

I do have a quick piece of fantastic news, though: our subletter problem was solved just in the nick of time. After having three different people go through the steps to sublet our apartment and back out at the last minute, I was incredibly frustrated. I was also under a lot of stress.

We finally decided to throw up our hands. We gave our landlords notice that we’d be moving out May 1, and they agreed to put our apartment back on the market. We’d only be responsible for rent until they could find a new renter. Our hope was that they’d find someone to move in by June 1, so we’d only have to pay a month of rent, but we were bracing ourselves to pay all three months if they couldn’t find a renter.

Thankfully, they notified me last week that they found a renter who will be moving in May 15! That means we’ll only have to pay 2 weeks’ rent! And they’re letting us out of the lease entirely, which means we don’t have to worry about the risks involved with subletting. It is a HUGE blessing, and it couldn’t have come at a better time for us. What a relief!

I’ll be checking on comments in the next few days, but I probably won’t have a chance to post anything substantive until next week. Next time you hear from me, I’ll be a resident of Indiana once again, and we’ll be starting a brand new chapter in our lives. I can’t wait to share it with you! :)

Photo by haumont

5 surprisingly simple foods to cook from scratch

Convenience foods have become a way of life for many families. You can purchase most things ready-made — even whole meals. Cooking from scratch may not always save a lot of money, but it’s a great way to eat healthier and cut out artificial ingredients. I think you’d also be surprised at how simple and rewarding cooking from scratch can be.

Here are the recipes we use for five common convenience foods. Even if you can’t cook them from scratch every time, consider trying out these recipes on a weekend to cut down on artificial ingredients and increase flavor.

Chicken stock

Buying ready-made chicken stock is incredibly pricey compared to the cost of cooking it from scratch, and huge amounts of sodium and preservatives make boxed chicken stock less than healthy. Cooking chicken stock from scratch is time consuming, but we make it in bulk and freeze one-quart portions so we’re only making it once every few months. Next time you roast a whole chicken, don’t throw the bones away. Freeze them, and use them on this chicken stock recipe when you have the time.

Pizza dough

Homemade pizza is a great frugal treat for the weekends, but store-bought pizza crust can cut back on your savings. Pizza dough is surprisingly easy to make, especially if you have a stand mixer on hand. Start with this recipe, but you’ll likely end up adapting it to suit your own tastes. If you don’t have a stand mixer, you can always mix and knead your dough the old fashioned way — by hand.

Marinara sauce

If you’re trying to cut artificial ingredients and preservatives out of your diet, there’s no reason not to make your own marinara sauce. It is simple, almost as fast as pouring the ready-made stuff out of the can, and much more delicious. My husband just sautes a little onion and garlic in olive oil and then mixes a large can of organic crushed tomatoes, a tablespoon of tomato paste, salt and pepper, and adds basil, oregano and parsley and a pinch of red pepper flakes to taste. It takes about 15 minutes.

Bread

It took us some time to get the hang of homemade bread, but it is so worth the trouble. The big secret? Bread flour. Really, that’s all there is to it. Any other flour makes the bread too dense and the crust too stiff. We got this recipe from a bag of Pillsbury bread flour, and it turns out perfect every time. Just store it in a plastic zip bag or freeze it for later.

Ice Cream

Homemade ice cream is one of our favorite treats for summer. We were lucky enough to be given a KitchenAid stand mixer with an ice cream maker attachment for our wedding, and this chocolate ice cream recipe is our favorite. But there are tons of simple ice cream recipes out there that don’t require special equipment, such as this ice cream in a bag recipe. Gourmet ingredients can add up, but if you save this treat for special occasions, it’s worth every penny.

What are your favorite recipes to cook from scratch?

Photo by anjuli_ayer

Why I’m a money multitasker

Last week’s post about holding off on paying down debt sparked a little controversy in the comments. I wanted to clarify some of my views, because there seems to be some confusion about my financial philosophy.

First of all, I am not debt free. I have never claimed to be. Like most 25-year-olds, my husband and I both carry student loan debt. I’ve written about it before. I don’t regret a day of my education, but I do regret some of my financial choices during that time. But it’s done now.

My husband is a graduate student. I earn an entry level salary. We’ve been blessed with a few pay increases over the past few years, but our income remains pretty low by today’s standards.

When I started this blog, I was depressed about our financial situation. We had credit card debt, student loan debt, no savings, tuition to pay, and we still felt like we didn’t have any money left over for fun. I wanted to learn to save without sacrificing fun.

Since then we’ve adapted to spending very little money in our daily lives. We don’t eat out. We shop the clearance racks (when we do shop). We meal plan. We share a single vehicle. The result is that 30% of our income goes directly into savings. Another 10% of our income goes toward debt repayment.

As my husband prepares to graduate next month, and we prepare to close this chapter in our lives, we have been spending more than usual lately. After three years of frugal living and hard work to pay off credit card debt, build an emergency fund, save for our move, and save for our vacation, we are rewarding ourselves.

I did not ask for permission. I don’t think any of you should ask for permission from anyone when you make decisions about how to manage your money. The point of my blog — from the beginning — was for my husband and I to learn to live on less than our already low income so that we could have enough money to pay debt, save, and enjoy life. Those are my priorities.

I have never subscribed to the Dave Ramsey philosophy. I understand that it’s worked for many people. I admire them, and would never ever judge their choices. I’m happy for them, because they’re happy. But putting every single penny of my extra income toward debt repayment doesn’t make me happy. I don’t want to wait until I’m debt-free to have children, own a home, or see Europe. So I’m using some of my extra income to save for these goals while I pay down our debt.

I admire the commitment to debt-free living, I do, but there is room in my budget for more than that. Dave Ramsey’s baby steps philosophy is focused on one thing at a time — save, then pay debt, then save some more. Only after you’ve saved and paid debt is there room for fun. I just don’t believe that.

I come from the generation of multitaskers, and I think if you’re smart about your spending, you can do a lot even with a very limited salary — without increasing your debt. You can save money, have fun, and pay down debt at the same time. It will take a little longer, but it’s worth it to me. I will eventually be debt free. That low-interest debt will be there waiting for me when we get back from Europe. And we will pay it off — on our own terms and our own timeline.

What Dave Ramsey takes for granted is that we have all the time in the world. But what happens if you spend your young life doing nothing but saving and paying down debt, and then your life is cut short by tragedy? You’re left with no time to enjoy the riches you’ve accumulated. I’d rather multitask now and know that I won’t run out of time before I can enjoy the fruits of all that saving and hard work.

When we get home, it’s back to counting every penny, just like we have for the past three years. It’s back to saving for our goals through very limited spending. We can’t forget about why we’re doing this, though. We want to build a better life for ourselves, and sometimes that means spending a little money.

The whole point of budgeting is making your money go further. If there’s something you’ve been wanting to save for, don’t wait for permission. Start saving now. I think you’d be surprised at just how far your money goes if you spend carefully.

Photo by amagill

iPhone apps that make my life easier

My friend Kacie is thinking about getting a smart phone. She’s been asking me lots of questions about my iPhone, and she requested that I share some of my favorite apps here. Okay!

As someone who doesn’t talk on the phone a lot, I use it more for browsing the Internet and applications than I do for talking. If you’re like me and you’re not a big cell phone user, you might consider getting an iPod Touch instead. Having instant access to the Internet without wi-fi is a really convenient perk, but it’s not necessary if you don’t want to spend the extra money on your cell phone bill.

Here are the ways that the iPhone has made my life easier:

Maps

I am perpetually lost. I have a terrible sense of direction, and even when someone gives me explicit directions, it’s easy for me to get turned around anyway. Now that I have GPS on my iPhone, even if I take a wrong turn, I can map a new course to help me find my way back. The maps aren’t also completely accurate, but they’re usually accurate enough to help me find my way.

Scheduling

I’ve never been able to get it together enough to use a day planner. I always forget to enter appointments or lose the thing entirely. My iPhone calendar is the closest I’ve come to organizing various dates and appointments. I love that I can choose multiple times to alert myself, and because it’s my phone, I check it frequently enough to see when things are coming up.

Comparison shopping

Have you ever bought something for what you thought was a great price, and then kicked yourself later when you found it on sale for cheaper somewhere else? It seems that no matter how much comparison shopping you do beforehand, it’s easy to end up in this positive. I always do a quick search on my iPhone before I buy to make sure that no one else is selling it for cheaper right now.

Road trips

The iPhone has absolutely changed long car trips for us. We invested $30 in an FM transmitter that allows us to broadcast the iPhone through a radio station. In addition to letting us play music from my iPod library, it allows us to listen to episodes of This American Life on its incredible iPhone app and catch up on the news with the NPR News app. We used to burn a ton of CDs with music and podcasts before hitting the road, but now all we need is my tiny little iPhone.

Skype

I haven’t actually tested this yet, so I’ll have to follow when we get back from Europe, but I’m planning on using Skype to help us stay in touch with family while we’re out of the country. Roaming phone and data charges are incredibly expensive overseas. I plan to keep my phone on Airplane Mode while we’re out of the country. This basically turns it into an iPod Touch. I’ll still be able to connect to wi-fi where ever it’s available, which means we can use the Skype app to make phone calls at much cheaper rates. If we connect with other Skype users, it’s even free.

Online banking

Because we keep the bulk of our money in savings accounts, our checking account balance is typically pretty low. It’s really important that we keep up with transactions to make sure we’re not overspending. I often log into our checking account to make sure all of the bills are withdrawing as they should. I also use the Mint.com app occasionally to check our budget and see how we’re doing.

Fitness

The Couch to 5K app made training for my 5K a lot easier and more.

Social Networking

While it’s not the most productive use for a smart phone, connecting to Facebook, Twitter, and other social networks where ever you are is a definite perk for smart phones. It makes waiting in a long line much more bearable, and it’s definitely fun to snap a picture and immediately upload it to Facebook or Flickr when I see something interesting.

Do you have a smart phone? What are your favorite ways to use it?

Disclaimer: I was not compensated for this post in any way by AT&T or Apple. But it sure would be nice if they sent me a new iMac. :)

Photo by chanc

Why we chose to let debt-free living wait

Update: I just wanted to clarify something. We are currently repaying our student loan debt slowly but surely. Our loans are not in forbearance. We just aren’t focusing our efforts solely on debt repayment. We’re splitting our extra income between debt repayment and savings.

In January 2009, we paid off our credit card debt. Compared to some of the debt horror stories you hear, our amount was relatively low — it was about $4,000 left over from college overspending and car repairs. We paid it off in just over a year while Tony was a graduate student and I was working in retail. Money was very tight at the time, so we’ve always been proud that we were not only able to avoid increasing out debt at that time, but we were able to pay it off.

We’re not debt-free, though. Not even close. Between the two of us, we still have a huge chunk of student loan debt — to the tune of $50,000.

For the past year or so, we’ve continued to pay minimum payments on my loans. We haven’t even begun paying Tony’s debt back because his loans are deferred until he graduates.

So here’s my confession: for right now, paying off our student loan debt is not our #1 priority. And it probably won’t be for another 5 years.

When we were working to pay off our credit card debt, we weren’t using every penny of our extra income for debt-repayment. We knew we had a move coming up in a year, and we wanted to build an emergency fund because we wanted to start a family. We made the decision to split our income between savings and debt repayment.

Right after we finished paying off our credit card debt, our plan was to use that money to pay off our student loans. But when you’re living on a small income, there just isn’t a lot of money to go around. We realized that in order to reach our savings goals, we’d need to divert a lot more money into savings.

Then we started talking about Europe. Believe me, I know that in the frugal community, saving for a vacation like that with as much debt as we have is a no-no. But you know what? We didn’t want to wait until we were debt-free to live our lives. Sure, we could put every penny toward debt and really work to pay down those student loans right now. Even then, we’d be well into our 30s before they were paid off. By then we’ll have children, maybe even a house, and a lot more financial responsibility. We’ll hopefully have more income, too.

Does debt-repayment mean putting everything else on hold when you’re young? In my opinion, no. For some people, the rush they get from sending another huge payment to pay off debt is enough to keep them motivated. Not me. If we were using every penny to pay off debt right now, it would be so depressing for me.

Unless we magically double our income overnight, it’s going to take us years to pay off this debt. For years and years, our only focus would be debt repayment. I’m not going to wait to do and see the things I want to see. I’m not going to wait to start a family or save for a house. That debt is going to be there for a long time. I can’t wait that long to live my life.

That doesn’t mean we don’t have a plan, though. There are just a couple things that are going to come first. When we get settled in Indiana, we’ll be in survival mode until Tony gets settled in a job. Then we’ll replenish our emergency fund. Then we’ll start saving for a house. Once we’re moved into a house, it will finally be time for us to put all of our extra money toward those debts.

This method isn’t for everyone. I’m sure many of you think it’s crazy for us to leave that debt alone for the next 5 years or so, accruing interest. When it’s time to pay it off, though, I plan to do it in about 5 years. Our plan is to buy a very modest starter home, which will help us put more money toward debt. It will be tough, but at least I’ll know that I’m not missing out on experiences in order to do it.

Photo by sgw

There’s nowhere you can be that isn’t where you’re
meant to be

For the past few days, this line from “All You Need is Love” has been my mantra. No matter how prepared you feel for each of life’s milestones, sometimes it can feel like you’re just not ready. I’ve known about what’s coming up in the next couple months for almost a year. I’ve planned for it, counted down, and prepared. Now that it’s here, I can’t help but feel overwhelmed.

It’s not that I’m not ready. I am ready. But I still feel like time sneaked up on me. It feels like just yesterday that we found out we’d be moving sooner than we thought. That was 6 months ago.

The past three years felt like an eternity as we lived through them, but now I’m looking back, and I can’t believe how quickly it seems to have whizzed by in hindsight.

And now we’re in the final countdown of our time here in North Carolina. We’re in the final countdown of this chapter of our lives.  Of course, nothing is happening exactly according to plan. It never does, though, does it? It’s not possible to plan for the unexpected, because you never know what life will throw at you.

I’ve spent 25 years trying to dictate the time line for everything. I’ve spent my whole life trying to anticipate the unexpected and plot everything out step by step. Now as we’re gearing up for the most hectic few months of our lives, I’m so tired of trying to control everything.

So I’m taking it one day at a time and reminding myself that I’m right where I’m supposed to be — where ever that may be. I’m recognizing that all of the changes coming in the months ahead are good ones, even if they are stressful. Every curve ball that crosses our path is meant to be there. In the end, everything will work out exactly as it should.

We just need to get through the next few weeks, and then I can breathe again.

Why are you still paying for cable?

For the record: I am not being compensated in any way by Netflix, PlayStation, or anyone else to write this post. I am just sharing our setup, and I welcome your tips and recommendations in the comments for how you get around paying a cable bill.

Once upon a time, cable television was one of our only planned indulgences. We knew it was expensive, but we liked it. We thought it saved us money by keeping up entertained at home, and we liked having something to watch in the evening.

In September, we finally cut the cable, and we cut $60 out of our monthly entertainment budget. Around Christmas time, our future brother-in-law gifted us a Playstation 3 that he wasn’t using, which enabled us to stream Netflix to our television. Using a simple rabbit ear antenna, our television picks up all of the network stations in perfect digital HD. Now there is very little we could get from cable that we’re not getting from our current setup.

Current television shows

For our favorite TV shows that are currently on the air, we have two options. Sometimes if we’re home at the right time and we’re not busy, we just tune in live. We’re busy, though, and we’re reformed DVR addicts. So what do we do if we miss the network broadcast of 30 Rock or Lost? We stream it on Hulu or the network’s website whenever we want to watch it.

TV on DVD

One of our favorite things about Netflix Instant Play is that we’ve been able to catch up on TV shows we never watched. For instance, after listening to the hype about “Lost” for years, we discovered that all six previous seasons were available on Netflix in December. Beginning around Christmas and continuing until February, we caught up on all six seasons in a few months. Bonus? No annoying cliff hangers.

Movies

For movies, we have also two options: Netflix Instant Play, which offers a huge list of movie and TV show options, or Netflix by mail, which is where we get newer releases. If we decide to watch a new release at the spur of the moment, there’s always Redbox.

If you’re considering kicking cable, I promise: you will not miss it. Thanks to all of the entertainment technology available today, you have plenty of options to keep yourself entertained.

Netflix Instant Play is also available on XBox and (soon) Wii. If you’re not a gamer, or you don’t want to drop a few hundred dollars on a video game console, you could also get a Roku player for $100. It will work the same as a video game console for streaming movies, but you won’t have the option to play games.

One month to go

After months of counting the days, we’re finally in the homestretch. We’re moving in about 32 days, and five days after that we’ll be boarding a plane to Europe!

I wish I could say the months have flown by quickly, but honestly? There were times when I felt like we’d never get here. My hope is that with everything that’s going on right now, the next few weeks will pass quickly.

I keep feeling like I should be doing something to prepare for Europe, but all of it is finished. There’s nothing left to do but pack our bags and board the plane.

Moving preparations are a completely different story. Oy.

I haven’t begun to pack. I haven’t even begun to purge. But my biggest problem right now is our apartment.

After posting on Craigslist twice, I’ve had two people show interest in subletting our apartment. After a week each of negotiating, waiting for applications, and crossing my fingers, they both backed out. Two weeks later, and I still don’t have a subletter.

Someone came to view it over the weekend, and she was very interested, but she said the price to renew once the subleasing contract is up was out of her range. Even though I dropped the rent slightly, she’ll have to pay full price if she chooses to stay here beyond the end of my lease. I’m hoping she’ll decide to take it, but I don’t know.

If she does want to move in, we’ll probably have to bump our move out day up a week to May 1. That means I won’t have the week off work I planned to use packing and preparing. I’m not ready to think about that yet, so I’ll just wait and see what happens.

Just four weeks to go before the next chapter begins! I’m just hoping they go smoothly.

Photo by mojodenbowsphotostudio

Indulgences that are killing your diet & your budget

If you’re trying to lose weight and cut expenses, it’s no secret that the first place to look is your shopping cart. The idea that healthy eating is expensive is a myth. In fact, those pricey convenience foods driving up your grocery costs are probably sabotaging your diet, too. Next time you’re at the grocery store, check your cart and swap these no-nos for healthier, more frugal alternatives.

Soda

Sodas are not only expensive — they’re also full of sugar, artificial flavors, and empty calories. Studies show that even diet sodas can lead to weight gain. Considering its negative effects on your health, the cost of soda is outrageous. Just one 12-pack per week is likely to add $12-$20 a month to your grocery expenses. Instead of drinking soda, invest in a water filtration system like Brita or Pur. If you miss flavor, drink unsweetened tea with lemon instead.

Alcohol

If wine, beer or liquor are weekly staples on your grocery list, it’s time to take a serious look at how much it’s costing you — not just in dollars but also in calories. Alcohol is one of the least nutritious, most caloric things you can consume. Removing it from your grocery list and your diet is a must.

Fruit Juice

Fruit juice is full of nutrients, and it’s not an inherently unhealthy drink to consume. However, when you’re trying to lose weight, it’s not a good idea to drink your calories. A glass of fruit juice is likely to have as many calories as a small snack, but it will leave you feeling unsatisfied and craving more food. Considering most fruit juices cost around $3 for a half gallon, you’re better off sticking to tea and water. Fresh fruit offers the same health benefits as juice, but an apple is a more satisfying snack than a glass of apple juice.

“Low calorie” or “fat free” snacks foods

These convenience foods not only cost a fortune, but they may not be helping you lose weight. Not only are they full of artificial ingredients and sweeteners, studies show that you’re likely to eat larger portions of “fat free” and “low cal” foods, which may cancel out their benefits. Instead of buying snack foods, opt for fresh produce. Choose fruits and vegetables that are currently in season for the lowest prices. If produce prices are too high, canned fruits and vegetables are the next best thing.

Photo by B Tal