VA Loans

Apache is functioning normally

My husband and I are in the process of building a home on 4.5 acres in the Texas hill country. At the moment, we’re still in the planning phase — not quite ready for blueprints.

Last month, our architect asked us to start thinking about the make and model of the kitchen appliances we want for our home. Visions of sleek, Thermador cooktops and double ovens danced in my head. Even when I saw the hefty price tag, I thought maybe we could find other ways to cut back so that we could afford the dream oven. After all, we’re both avid cooks. To us, eating well is one of the best ways to enjoy life. There’s no doubt we’d use it, so the purchase makes sense. Right?

Reality Check From a Minimalist

Then I happened upon an article by Mark Bittman, who writes The Minimalist column in The New York Times. In “So Your Kitchen is Tiny. So What?” he describes how he makes do with 42 square feet of kitchen space, precious little counter space, and a stove that sometimes doubles as storage for pots and pans. It is in this space that he develops most of the recipes for his cookbooks.

But when he posted a photo of his kitchen on his blog, readers were shocked. Bittman writes:

[Chefs and food writers] know that when it comes to kitchens, size and equipment don’t count nearly as much as devotion, passion, common sense and, of course, experience.

To pretend otherwise — to spend tens of thousands of dollars or more on a kitchen before learning how to cook, as is sadly common — is to fall into the same kind of silly consumerism that leads people to believe that an expensive gym membership will get them into shape or the right bed will improve their sex life. As runners run and writers write, cooks cook, under pretty much any circumstance.

With my feet firmly back on the ground, the fancy cooktop and double oven were erased from our kitchen plans. We don’t need top-of-the-line appliances to do what we love. Sure, I’ll have to cope with the quirky nuances of our oven, which loves to cook my cupcakes unevenly just to spite me, but I’ve learned its ways and I work around it. We know where the hot spots are on the stovetop, and we’ve learned how to position the racks just so for even browning. Surely if we’ve managed with a slightly cantankerous oven for this long, we’d be just fine with a new, moderately-priced range.

We do love to cook — and we like to think we’re pretty good at it — but we don’t need a 36″ Thermador to let the world know that, hey, in case you weren’t aware, we’re serious about food. That wasn’t my conscious thought as I was drooling over appliances at Lowe’s, but Bittman’s article made me question my motives (and probably saved me a couple thousand dollars). Anything that could be cooked on a fancier stove can be cooked on a standard one.

Curbing Wants, Focusing on Needs

Because we’re building a house, it dawned on me that this is just the beginning of a long list of decisions we’ll have to make — each one with a price tag. Our goal is to keep expenses down as much as possible so that we don’t feel owned by our mortgage payment. We want to pay off the house early. We want to travel. We want the flexibility that a lower house payment affords us. My fear is that we’ll be faced with so many decisions that we might lose sight of our goals.

To help us stay on track, I started thinking about questions to ask ourselves as we’re faced with more and more building decisions. I organized the set of questions into a flowchart, which we’ll use as a tool to help ignore emotions and evaluate need.

My “Should I Buy It?” Flowchart

Let’s look at how this would work using my cooktop example:

  • First, we’d ask ourselves whether we can afford it. Technically, yes, we could.
  • Is it something we need? Yes, our house will need a cooktop of some sort.
  • Is there a less expensive option? Yes, a standard range is much less expensive.
  • Is the alternative durable? Yes, there are durable ranges. (We researched Consumer Reports articles on ranges for their top picks.)

Our result? The flowchart suggests we should purchase the less expensive option.

This chart could be used for small, personal purchases, as well. For example, I’ve been coveting a blue YogiToes towel for my yoga practice. Can I afford it? Yes. Is it something I need or lack? No. I have one in red. Flowchart says don’t buy it.

I know we’ll want a few nicer features in our home, but it’s important that our spending decisions are made consciously. Little upgrades here and there could easily add up to a sizable mortgage in the end. If there’s one thing I’ve learned from being in credit card debt, it’s that the seemingly small things accumulate quickly. The only way to combat this is to be conscious of what we buy — and why we are buying it by constantly keeping a check on our credit report.

Photo by LifeSunDeath.

Source: getrichslowly.org

Apache is functioning normally

This is a guest post from April Dykman, an avid GRS reader, and a writer and editor by trade. April is a potential Staff Writer for Get Rich Slowly. In her first article, April described how she discovered freedom from mindless spending. April is an active commenter at this site.

When my husband and I went to Italy in 2006, we spent $2500 on plane tickets. We’re planning to spend much less for our next hop across the pond because as of this month we have over 80,000 airline miles — just enough for two tickets to Europe.

I used to think frequent flier miles were only awarded to, you know, frequent fliers. Or people who use an American Express for big company expenses. I certainly didn’t think little ol’ me who gets on a plane maybe once a year would be able to rack up enough miles to matter.

Then I stumbled upon Free Frequent Flyer Miles, a guide written by Gary Steiger, air-mileage earner extraordinaire. I couldn’t believe there were so many ways to earn miles. Soon after, I learned about sites that offer quarterly cash rebates. From these two discoveries, my online buying process developed.

Rewards card
We started by applying for an air rewards card and received 30,000 miles for opening the account. My husband and I put every possible expense on this card — even our electric bill. The card earns one mile per dollar spent.

Warning: Super important disclaimer ahead. If you do not pay the balance every month, rewards cards are not for you. There are lower interest credit cards and the interest charges on a rewards card will kill any travel benefits. Our card has a higher rate than our non-reward cards, but we never pay one cent of interest. We also pay a $50 annual fee, which doesn’t bother me considering the savings we’ll get on plane tickets. In short, read the fine print.

Airline shopping malls and rebate sites
I would never buy something merely to earn rewards. But we all buy stuff at some point, and there are benefits to be gained by shopping online. Let’s say I need to stock up on some household items like detergent and dish soap. This is the process I use:

  1. Google the items. Note the names of the merchants offering the three best prices (include shipping charges).
  1. Check the airline malls and rebate sites. I use AAdvantage eShopping and Ebates. In my example, drugstore.com participates in both programs and offers free shipping for orders over $49. Let’s say my merchandise total comes to $55.
  1. Search for coupons. Typically I Google the merchant name and “coupon” or “code.” I found a $10 coupon code for drugstore.com.
  1. Log into Ebates or rebate site of your choice. Click on the merchant name, and a new window will open. (Ebates offers 6 percent back on drugstore.com purchases.)
  2. Log into AAdvantage eShopping or airline shopping portal of your choice. Click on the merchant name, and a new window will open. (AAdvantage offers three miles for every dollar spent at drugstore.com.)
  1. Using the last window to open, select your items. I always log into AA last and purchase from the AA window to ensure I’ll receive my miles. Sometimes the registration tracking to AA can be overwritten if you click to another affiliate, though I’ve always received both the rebate and the miles.
  1. Go to the checkout screen, and enter your coupon code.
  1. Complete purchase with a rewards card.
  1. Follow up to ensure you receive your rewards. It can take up to 60 days for air miles to be credited.

This process takes me maybe 10 minutes. Using my example, I’ve paid about $45 for $55 of merchandise. I will get $2.70 in cash rebates and 180 air miles (135 miles from the airline shopping portal and 45 miles for paying with my rewards card). No purchase is too small — the rewards will add up quickly.

More tips

  • Sign up for mailing lists for sites you frequent. Often subscribers are privy to special discounts.
  • Try out a site like wishlisting.com, which allows you to bookmark items and alerts you when they go on sale.
  • Stock up on products you know you’ll use if a bigger order means free shipping. I buy three bottles of dishwashing liquid per order, or more if it’s on sale.
  • Spend time perusing lists of participating vendors — you might be surprised. When we installed new floors, we bought materials from a store in town, only to discover that we could have bought our supplies online from the same merchant and earned 2,000 miles. (Yes, just to torture myself, I did the math.)
  • Look for rewards on subscription services. A new Netflix account awarded us 1,500 miles.
  • If you buy gift cards, see if the merchant participates in rewards programs. (Be sure to check the merchant exclusions. Some give credit for gift cards purchased, others for gift card money redeemed.)
  • Watch prices on items you buy. If you can find something cheaper in a store, weigh the savings versus the rewards.

Diversify
The next thing we need to do is to diversify. Right now we only have miles with one airline. Since the company can change its rewards program at any time, we’d be much better off if we stockpiled miles from several airlines. According to Gary Steiger’s site, he has nine airline accounts!

I encourage anyone who shops online to make the most of every dollar. Memberships to most reward programs are free. For very little effort, I’ve received $160 in cash and earned enough miles for roundtrip tickets to Europe. Even with the fees and taxes, we’ll pay much less for plane tickets than we would without the miles.

What about you? Do you participate in rewards or rebates programs? Which are your favorites?

Photos by Andres Rueda.

Source: getrichslowly.org

Apache is functioning normally

Most people agree that a vacation is supposed to be relaxing, but planning for one can be just the opposite. Still, poor planning can cost money and time, causing headaches and frustration when you’re supposed to be getting away from it all.

Some people like to book a ticket and see where life takes them. Others prefer cruises or tours where the planning is taken care of for them. I prefer to plan my trips, researching and budgeting as much as I can while I’m at home to make the vacation as smooth as possible. If that sounds like the route for you, today I’m going to share my method, step-by-step, for budgeting and planning a vacation, including spreadsheets you download and customize.

This method is effective in planning trip logistics and budgets, laying out how to do the following:

  • Estimate how much the trip will cost, allowing you to save sufficiently and not come back to a credit card debt slap in the face
  • Efficiently plan your time, maximizing time spent doing fun stuff and minimizing time lost due to scheduling conflicts
  • Easily keep important information at your fingertips to save money and time

This method saved me at least $375 on my last trip after a cabana in Mexico lost my reservation. Because I used this step-by-step system, I had documentation of my reservation and deposit, and the owner agreed to “make their friends leave” and accommodate me. (Things work a bit differently at Mexican beach cabanas.)

Stuff like that isn’t fun when you’re on vacation, so let’s avoid those hassles. Pick a destination, and start planning.

Choose a travel guidebook — or three
Most travelers find that there isn’t just one guide that covers all of their needs. Some books cover the logistics — where to stay and how to get around the city. Others might focus on history, culture, and the arts. Then there are some that are even more specific, like biking through the Netherlands or kayaking in New Zealand. Get one book that adequately covers the basics and at least one that covers your personal interests.

Planning tip: Check out several guide books out from your local library to get a feel for the writing style. If you like one, then purchase the latest edition. This also saves money if your trip is more than a year away. Travel guidebooks quickly become outdated, so it’s very important to purchase the latest edition to take on your trip.

How to know if it’s guidebook love
Here’s what to consider when deciding which guidebooks to buy:

  • Do the accommodations and restaurants fit your budget?
  • Do you like the layout? Is it easy to find information?
  • Does it have detailed maps?
  • Does it cover your primary travel interests, such as history, culture, food, markets, safaris, ecotourism, farm stays, hiking, etc.?
  • Does it make you feel even more excited about your trip?

If you plan to visit only one specific region or city, or if you just plan to spend the bulk of your time in one, consider a regional or city guide with more specialized information.

Guidebooks worth a look
If you aren’t sure where to start, here are a few guidebook series worth checking out:

  • Rick Steves’ Europe Through the Back Door. Steves believes in making travelers “temporary Europeans.” From his book: “The more money you spend, the bigger the wall you build between yourself and the culture you traveled so far to visit. Stay in the small inns, eat in family-style restaurants, visit out-of-the-way places, rub elbows with the locals. You’ll spend less money and have a great time in the process.” The guidebooks include tons of practical information about where to sleep, eat, how to use public transit, budgeting, historical sites, maps, and more. Steves’ book got me from Rome to Pompeii, and I saved $50 over the route that others in our travel group used.
  • Lonely Planet. Perfect for logistics, but you’ll need to supplement with another book for history and in-depth cultural information. This series is especially good for long-term travel, as is gives extensive information about where to stay, how to get around, etc.
  • Frommer’s. Another series that advocates living like a local, but is very extensive in the destinations it covers. A book from this series helped me to rent a car and successfully drive around the Yucatan peninsula, use toll roads, and not get lost once.
  • Fodor’s Guides. There are several series of Fodor’s travel books, each written for a different type of traveler. Fodor’s uses local writers to give readers the most accurate information and inside knowledge.
  • Let’s Go. If you’re a student, or just on a student’s budget, this guidebook series is one to consider. Written by students, there’s information on all things cool and free.

Also check out Budget Travel for articles on your destination(s). I’ve found some great hotels written up in Budget Travel that were out-of-the-way and not as popular as some of the ones listed in the big guidebooks tend to become.

Basic planning
Once you have your travel resources, you’re ready to start planning and budgeting. Download and open my Vacation Budget and Itinerary Planner (1.2mb XLSX) and click on the Basic Plan tab. (If you have an older version of Excel, here’s a 1.0mb XLS file.)

  • How many days do you have for this trip? Enter that number into the yellow box.
  • Where do you want to go? List each city in the column to the left.
  • How many days do you want to spend in each location? Enter those numbers into right column.

If the difference is negative, you need to earn some more vacation days or make some cuts to your itinerary. Don’t try to pack in too much. If you spend all of your time jetting from point A to point B, you won’t see as much. What is most important? Be sure to check your guide books to see how much time is recommended for each place.

Fill in the details
Now that you have a basic outline, use the Expense & Itinerary Planner page to plan your itinerary. First, fill in the dates. Next, list the following, step by step, in the Activity column:

  • Transportation between points
  • Accommodations
  • Attractions

Use the guidebooks to estimate expenses for each item in the Activity section, and enter those into the Expense column. If I’m staying at one hotel for three nights, I typically list the expense just once on the first day I’m staying there, but you can list it on each day if you like.

You’ll need to search online for airfare and train estimates. For airfare, check out the big sites, like Kayak, but don’t forget to look at budget carriers, too. Fellow GRS staff writer Adam Baker wrote a great guide, 5 Little-Known Websites That Will Save You Time and Money When Booking Airfare Online. Adam writes, “In most cases, the cheapest fare will be found using a combination of sites depending on your specific travel plans.” Try lesser-known websites when searching for the lowest airfare.

For rail travel in Europe, Rick Steves provides a comprehensive guide to Eurail passes, including how they work, how to plan your trip, and cost comparisons. Include any mode of transportation you’ll use, whether it’s rental cars, buses, taxis, ferries, or elephants.

In the Notes column, include important details, such as hotels that only accept cash upon arrival, offer continental breakfast, or other important details.

Now use your books to estimate meal expenses (plus tips) under the Food section. I like to find budget hotels with complimentary breakfasts, which can reduce expenses a bit if the hotel comes at a good price. If the primary reason you’re going to Italy is to dine like royalty, however, by all means, add that in there. You can toast to me with your glass of Brunello.

If you like souvenirs, add a budget for that expense. Personally, my favorite souvenirs are photographs, which weigh no more than my digital camera and cost nothing. Add any other expenses in this section. For example, if you are renting a car, add in an estimate for gas.

State of the budget
You should have an estimated grand total for your trip. Is it in your budget? If you haven’t started saving for the trip, how many months until departure? Divide your trip cost by the number of months until you leave to find out how much you’ll need to save each month. If you can’t save that amount, reassess your trip plan or the departure date.

No reservations: Start booking your trip
You have a budget and an itinerary, and you’re ready to start making reservations. As you make reservations, enter whatever you’re paying now in the Pre-paid column, and the amount due on arrival (DOA) in the DOA column.

Fill in times associated with each activity where appropriate, especially for departures and appointments. You don’t need to schedule every minute of every day, only the activities with a time frame associated with them. For example, if a museum you want to visit closes at 1 p.m., that’s something to write on the itinerary. If you want to see a show that starts at 7 p.m., that’s another important detail to note.

Planning tip: As you make reservations, save receipts, confirmations, and e-mails for air, hotels, and anything else that required a deposit. Just stick them in a folder until you’ve finished booking your trip.

Create your personalized travel guide
Gather the following items, in this order:

  1. Budget and Itinerary Planner sheet
  2. Torn-out, relevant pages from guide books (Tear up a book?! Yes. They are quickly outdated anyway, remember?)
  3. A page with addresses, telephone numbers, and websites to each hotel, attraction, or transportation source, where applicable
  4. Reservation receipts, confirmations, and e-mails
  5. Photocopy of the passports of each person going on the trip
  6. The 800 numbers for each credit card that will be used on the trip, in case you need to report one lost or stolen (Also, call your credit card companies to let them know when and where you are going, or your card might get frozen for unusual charges.)
  7. One page with emergency numbers, such as the nearest U.S. consular office. U.S. embassies or consulates can provide assistance if you need it. Go to the U.S. Department of State to get contact information for the area(s) in which you will be traveling.

Take this stack of papers to a print shop and make a spiral-bound copy for each person traveling with you plus an extra copy to leave with a friend or family member.

It’s a bit of work upfront, but it saves you a lot of hassle on your vacation if you have an itinerary and important information at hand, and you won’t be shocked by a massive credit card bill when you come home. Plus, if you give a copy of your personalized travel guide to your mom, she might not nag you quite as much for going white-water rafting in Nepal.

J.D.’s note: Kris and I have recently become avid watchers of The Amazing Race. Between watching that show and reading April’s article, I’m dying to get out and see the world. To celebrate the completion of my book, we’ll soon be taking a trip to Belize, but I want to do even more!

Source: getrichslowly.org

Apache is functioning normally

We all know how to rent a typical, cookie-cutter apartment or house. Find a contact number. Set-up a walk through. Fill out the application. Pay your fee and wait for a response.

But sometimes typical just doesn’t cut it.

Maybe you’re looking to secure a unique apartment in an irresistible location. Or you might be seeking the only house for rent in a certain school district. Heck, you may even find yourself in New Zealand needing a short-term (3-month) lease when everyone wants a 6-month minimum.  *raises hand*

Whatever your motivation, here are nine ways you can knock the socks off your next landlord or property manager:

1. Create a Rental Résumé. Treat this like you would a job search. The majority of applications are going to ask for the same information. Put together a basic one- or two-page document containing this commonly requested information. Even if the landlord or property manager makes you fill out the application anyway, at least you’ll already have everything on hand. Be sure to include:

      • Full names of everyone on application
      • Dates of Birth
      • Contact information (phone and e-mail)
      • Current address (length, landlord information, reason for leaving)
      • Previous addresses (with additional information)
      • Social Security numbers Previous commenters note that you may want to wait to reveal your Social Security information
      • Current employment information (salary, length, contact information)
      • Past employment (with additional information)
      • Personal references
      • Vehicle information (make, model, plates, driver’s license number)
      • Pet(s) information (breed, size, age)

2. Pull your own credit report. Use AnnualCreditReport.com, if possible. Pulling your own credit report ahead of time will ensure that you are aware of the information contained in the report. If there are any negative marks, be sure to include a written statement of explanation (especially for any bankruptcies, evictions, or missed rent payments).

3. Obtain and include full letters of reference. Most rental applications only ask for the contact information of your references. However, as with a job, you can go the extra mile by including full letters of recommendation from previous landlords, property managers, or apartment complexes. As a property manager, I was more than willing to write these for our best tenants. Many apartment complexes have a standard reference letter they provide to past tenants upon request.

4. Provide copies of commonly requested “further information”. This is especially important for the self-employed or those with inconsistent employment length. Commonly requested information can include copies of recent paystubs, recent years’ tax returns, net worth statements, bank statements, and income/expense reports for small businesses. Also, landlords may request copies of identification like driver’s licenses, social security cards, or birth certificates.

5. Look sharp. Whether you like it or not, appearance does matter, especially for first impressions. Wash the purple dye out of your mohawk, lose the three wolves T-shirt, and dress business casual. (J.D.’s note: Did anyone notice that Dwight was wearing the three wolves t-shirt on The Office recently? I just about died laughing.)

6. Be five minutes early. Waiting does not impress anyone.

7. Find common ground. In any social encounter, discussing a topic that is familiar to both parties is one of the fastest ways to build rapport. When Courtney and I were searching for apartments here in Auckland, we talked to many different agents and owners. Early on in each discussion, I brought up the fact that I had owned a property management company back in the States. It gave us an immediate connection and built instant trust. While you may not have direct real estate experience, chances are there will be many opportunities for you to find common ground of your own.

8. Know your needs and wants ahead of time. This is a important. Decide ahead of time what features are absolute musts and which are more negotiable. For example, you may know that you need a fenced in backyard for the dog. Or, you may only be willing to consider homes with a detached garage for working on your cars as a hobby. On the other hand, an included washer/dryer may only be a strong want. You’d be willing to purchase these if the rest of the property fit your needs. Get clear on this distinction and be able to articulate this to your potential landlord or manager.

9. Don’t be afraid to ask questions. As a property manager, I always had a weird feeling about tenants who appeared nervous or who seemed afraid to ask questions. The potential tenants whom impressed me the most appeared confident, stated what they were looking for, and asked specific questions about the property. For example, it’s perfectly reasonable (and somewhat expected) to inquire about the average costs of monthly utilities.

Once you’ve established yourself as a strong candidate…leverage it! Knocking the socks off your landlord is not just for fun! After positioning yourself as an ideal applicant, don’t be afraid to start negotiating.

Here in Auckland, Courtney and I had luck negotiating ourselves into a three-month lease even though it ended in the middle of December (bad timing when trying to re-rent). At our last apartment in the States, the complex ended up waiving both the application fee and our required deposit.

Try asking for a 10% rent discount. Many apartment complexes run unadvertised specials, and the individual landlord will often discount if he believes you’ll be a quality tenant.

I’ve seen people have luck requesting upgrades on appliances or requiring that an owner furnish a washer/dryer when previously it wasn’t included. If your condo or apartment charges extra for amenities (gym, pool, parking), try asking for access to be included in your rent.

Most people are scared because they think it’s uncommon to ask for more. I’ve been on both sides of the rental equation and this sort of negotiation happens all the time.  If you don’t ask, the answer will always be “no”. So get out there, impress some people, and take your apartment or house hunting to the next level!

Source: getrichslowly.org

Apache is functioning normally

I’ve already told you how the wife and I weed out our closets every summer and have a yard sale with the results. Last weekend, we did some big off-season pruning because — in a little more than a month — we’re moving to a smaller house (though it’s way cooler, closer to work, and in a better school district). Consequently, we have to get rid of a good bit of furniture.

Here’s the evolution of my furniture-buying history:

Stage of Life Type of Furniture
College student Dorm fare, boxes
Single college grad Goodwill castoffs, sturdier boxes
Newlywed Wedding gifts, furniture relatives no longer use
Up-and-coming professional Begin to buy “nice” furniture because we’ll keep it forever
Family man moving to a different house Sell “nice” furniture on Craigslist

Okay, so we have bought furniture that we’re likely keep for a very, very long time. But we’re also selling items that we thought we’d keep for much longer than we did — and getting a fraction of the price we paid. One example: I always wanted a roll-top desk, but I thought I didn’t deserve one until I became a real writer. So when I wrote my first book for The Motley Fool, I rewarded myself by using part of the money I earned to buy a swell-looking cherry roll-top desk, designed specifically to be used with computers. And I loved it…for a while.

But then I outgrew it. I don’t know why exactly, except that I now prefer to sit in a comfy chair with a laptop in my (guess!) lap rather than sitting at a desk — perhaps because I sit at a desk all day at work. I don’t want to come home and do it for another few hours. And the desk also takes up a lot of space, which we don’t want to devote to a desk in our new home.

So here’s my new thinking about furniture: Like clothes, furniture can wear out its style and usefulness. Our tastes in homes and the accompanying contents change; it just doesn’t make sense to pay up for something we may no longer want or have space for a few years later.

The flip side is that cheaper furniture may not last even a few years. That’s been our experience with the dressers we bought from Target and IKEA. So, for now, I think our best strategy is to buy high-quality stuff used. Or go back to eating off sturdy boxes.

Adventures on Craigslist

Obviously, other people agree, because within 48 hours of our listing seven items on Craigslist, we’ve sold three (including the roll-top desk). I assure you, they’re getting good deals. And we’re raising cash to buy furniture more appropriate for our new place — off Craigslist, of course.

That said, I’ve been the target of two attempted scams and possibly a third. Here’s how one went down: I received identical emails from “Mr J Benson” at [email protected], regarding two of the items we were selling. He asked if they were still available. I replied that they were, and again received two identical emails, as follows:

Thanks for the prompt response. I have instructed my
account officer to mail (overnight) a certified
check, while you hold this item for me. Let me know
when you receive the check and I will have my mover
will come pick up at your place. Please forward me
the following info so I can issue your check . . .

1.Your full name
2.Your mailing address(Physical as Ups does not deliver to P.O.Box}
3.Your phone number.

** Please note that I will overnight the payment,and
you should receive it tomorrow. I appreciate you
holding this for me. Please delete the posting as I
am definitely buying it from you and it would be sad
for me to have the payment in the mail only to be
informed of the its sale also am deaf and will like to be contacted via
email.*

This immediately smelled stinky to me, and a quick Google search showed that plenty of other people have received this identical offer. From what I can tell, here’s how the scam works: The check that gets delivered is for more than the item being sold. The “buyer” instructs the seller to deposit the check anyhow, and just wire back the difference.

Perhaps you can guess how this ends. If not, here’s how it ended for a woman in Hawaii, according to a news story:

The buyer agreed to purchase the furniture for $230. She said she would send a check for $2,452 and asked the seller to deposit the check in the bank, deduct $230 and then send back the balance via Western Union. She said she would send a male friend to Western Union to pick up the check because she couldn’t leave the house. The seller agreed with the arrangement. After sending a check for the balance through Western Union, she learned that the original check was bogus.

The second scam attempt was similar — a woman saying she wanted to buy our couch as a Christmas gift for her father-in-law, and she’d send a check. I replied that I only deal in cash, and face-to-face. Her reply: “Cash on exchange is my preffered means of payment but i dont have the time .I believe you know how hard it is to get a job these days.Pls bear with me.” I don’t think we’ll be selling this person our couch.

The third interaction may be a scam or not. I’m selling my PlayStation 2 (including a bunch of games), and here’s the email I received:

I wanted to ask if you could help my son he really want a system but i lost my job last month and i couldn’t do thanksgiving good and he was sad and now he thinks christmas is going to be the same but i dont have money i was hoping i could work something out with you to help him im a good handyman i just dont like seeing him like this can you help and put a little smile on him for christmas if you can thank you and god bless if not that ok i just wanna to try to make it better for him

The only possible scam here is that he wants a free PlayStation when he could afford to pay the $90 I’m asking for it. Or maybe his story is legit. If it is, I’d be willing to help him out. Not sure what to do about this one. What do you think?

To sum up…What have I learned over the weekend?

  • You may not keep furniture as long as you think, so it may not be worthwhile to pay a lot or buy it new.
  • Accept only cash. Experienced sellers tell me that transacting through PayPal has worked for them, though I don’t have any personal experience on the seller side with it.
  • There are a lot of people on Craigslist who should be shopping for books or software that will improve their spelling and grammar.

If you want to get rid of stuff, Craigslist works — but you have to be careful of scambags. Though I’ve never sold anything on other sites — such as eBay or Amazon — they might work as well. If you’ve used them, let us know about your experience in the comments are below.

J.D.’s note: I’m a huge Craigslist fan, but you absolutely have to watch out for scambags, as Robert calls them. In my younger naive days, I’d let “buyers” talk me into all sorts of things. For example, I traded my Nintendo Gamecube for an obsolete digital camera instead of getting cash. And I also let somebody trade me a computer that ended up being on death’s door. I’ve learned that as the seller, you can’t put up with any monkey business.

Source: getrichslowly.org

Apache is functioning normally

For more than a decade, Jay Shafer of Tumbleweed Tiny House Company has lived in an 89 square-foot home.

His decision to live in a tiny house came from concerns about the effects a larger house would have on the environment, and his desire to not maintain a lot of unused or unusable space.

Obviously Jay’s home is at the extreme low end of how small one can go with living space, but it meets his needs and allows him to live the simple lifestyle he was seeking. While it may seem impossibly small to the majority of people, 89 square feet is Jay’s right-sized home.

Contrast this with the average American home, which in 2004, was 2349 square feet, up from 1695 square feet in 1974. In 30 years, the size of kitchens doubled, ground-floor ceilings grew by more than a foot, and bedrooms increased by 54 square feet. In 2004, the average family size was 2.6 people. Thirty years ago, it was 3.1 people. Our homes have been getting larger while our families are getting smaller.

But earlier this year USA TODAY reported a change in that trend:

New homes, after doubling in size since 1960, are shrinking. Last year, for the first time in at least 10 years, the average square footage of single-family homes under construction fell dramatically, from 2,629 in the second quarter to 2,343 in the fourth quarter, Census data show.

The average size of a new home is approximately 15 percent smaller than it was just a year ago. Architects and designers believe this trend toward smaller homes was caused by the economic meltdown — but they expect it to be a lasting change.

Too Big, Too Small

I’ve mentioned that my husband and I will be building a home soon, and we’ve gone back and forth with our architect on several sketches, trying to find our right-sized home. Most of the designs have been appealing, but some have been bigger than we need, and others smaller.

Buying or building too much home has a lot of drawbacks, including:

  • Environmental effects
  • Higher mortgage payment means more energy goes into paying for housing
  • Higher taxes and insurance
  • Requires more time and money to maintain and clean
  • Higher utility bills
  • More rooms to furnish

Buying or building too small is economical, but can cost in other ways. If your house is too small, you might face some of the following challenges:

  • No room to expand if you have kids.
  • Lack of storage space, even for basic household items.
  • Not enough room to entertain friends and family. (If you enjoy entertaining, that is!)
  • Lack of space for an office (if you work from home) or hobbies.
  • Feeling like you’re living on top of your family members, with no personal space.

Finding a Size that is Just Right

Too big is a waste, and too small is a headache. How does one find a Goldilocks house — sized just right? There are many considerations, such as the following:

    • Lifestyle. Do you work from home and need office space? Do you travel a lot? How often do you entertain?
    • Family. Do you have children? If not, do you plan to have kids (and plan to stay in the same home)? Are there elderly relatives who live with you or might need to in the future?
    • Hobbies. Some hobbies require a bit of room, even if it’s just a sewing cabinet or a dedicated space for a piano.
  • Future goals. Do you plan to live in the house for a long time? Do you want to travel? What are your savings goals?

Calculating the Size of your Goldilocks Home

Once you have an idea of what you need your house to do, you can calculate your magic number. In the article “Square Feat: Foot Steps”, architect Dan Maginn recommends starting with your current home and following these five steps:

    1. Measure and record each of the rooms in your current home, thinking in terms of the functions of each room. Include cooking, dining, bedrooms, closets, bathrooms, living, storage, circulation, and mechanical/utility space.
    1. Note whether each space feels too big or too small.
    1. Write down how your needs for each function might change in the future. For example, if you plan to stay in the house and have kids, bedroom space is a consideration.
    1. Given how the spaces currently feel and your future needs, adjust the sizes until the spaces feel right.
  1. Add up the adjusted numbers.

Right now our number is around 1800 square feet, with a loft that can be built out later if and when our needs change. That number sounds big to me, but looking at the plans, spaces, and considering our future needs (we don’t plan to move from this house), it might just be our right-sized house.

What is the square footage of your right-sized living space? Do you currently live in more space than you need, or could you use some more room?

J.D.’s note: I love the Tumbleweed Homes. I want one.

Source: getrichslowly.org

Apache is functioning normally

When booking airfare online, most people think of the popular online aggregation sites. You know the ones: They have the fancy commercials, catchy jingles, and washed-up celebrity pitchmen. While those sites aren’t inherently bad, there are a few well-documented problems with relying solely on these larger engines:

  1. Many of the aggregation sites neglect to include smaller, budget carriers.
  2. Larger airline companies may temporarily exclude or intentionally block these aggregation sites from fares.
  3. Short-term specials or incentive sales aren’t usually aggregated either. They’re often only found by visiting the individual sites of the carriers.

Obviously, there isn’t just one website capable of giving you the best deal every time. I wish it were that easy.

Many larger carriers make a significant amount of money off of the loyalty factor — meaning those individuals and companies who choose to fly the same airline every time for whatever reason. Because of this, they’re not necessarily in a rush to make all their fare data open and available for the world to dissect.

In most cases, the cheapest fare will be found using a combination of sites depending on your specific travel plans. Here are some lesser-known websites you can add to your bag of tricks when searching for the lowest airfare available.

SkyScanner.net

SkyScanner is a traditional aggregation site. But it actively differentiates (and brands) itself, by including a wider variety of budget options than most larger sites of the same type.

Another helpful feature of SkyScanner is the ability to search for a whole month or even a whole year with just the click of a button. For example, you can choose December 2009 as your departure date and easily compare data for different days. If your travel plans are flexible, this is a convenient benefit.

In addition, you don’t have to specify a specific airport, but rather just a city. Many other websites allow you to search flexible dates and close airports, but I haven’t found any that make it as easy as SkyScanner. This convenience, and its access to some small budget sites, give it the nod of the larger sites in our book.

WhichBudget.com

WhichBudget is popular in international-traveling circles, and for good reason. Rather than pulling specific pricing information for flights, WhichBudget simply allows you to find budget airlines that fly a specific route.

For example, to plan our upcoming trip to Thailand, Courtney and I used WhichBudget to find budget airlines that flew various potential routes — Christchurch, NZ to Bangkok, Thailand for one. This is the type of flight that might not show up in the larger airfare search sites.

This service is especially valuable for places that play host to a variety of smaller, budget airlines, such as Europe and Southeast Asia.

BudgetFlightFinder.com

BudgetFlightFinder is an alternative site to WhichBudget. We’ve only been turned onto it recently, but I’m starting to favor it. Once again, it allows you to find budget airlines that fly a specific route.

Sometimes it’s good to check multiple sites for information like this. For example, on a sample flight path of LAX to IND, WhichBudget shows only Southwest as a budget option. BudgetFlightFinder displays Frontier as the only option for the same path.

Once you’ve uncovered a budget carrier that flies your specific route, you can go to the individual website and double check the actual prices.

SeatGuru.com

SeatGuru is a unique site that contains the specific layouts of over 700+ different planes from various airlines. How is this useful information to you?

Well for each type of aircraft, they label the different seats as “good” (green), “some drawback” (yellow), or “bad” (red).

For example, because of the layout of the hull a specific row may have a considerable amount of extra legroom. Conversely, some rows may be a tighter fit or be close to the engines or infant seating. SeatGuru will show you in full color what to look out for.

They even break down where to find power outlets, overhead television locations, and, of course, bathrooms.

This may not directly save you time or money, but it can add value. Next time an agent asks you for your seating preference, you can tell them, “I’ll take 12E, since it has a little extra leg room, a good view of a television, and nice accessibility to the exit after we land!”

Source: getrichslowly.org

Apache is functioning normally

A 2009 AP/AOL survey, Debt Stress in the United States, found that American adults are experiencing significantly more debt-related stress than reported four years ago when a similar survey was conducted.

The survey also found that those with high stress levels were likely to experience health problems, including headaches, back pain, muscle tension, depression, anxiety, ulcers, and heart problems.

It seems that a high level of debt-related stress can damage more than your credit score; it also poses serious threats to your health.

The Health Costs of Debt Stress

According to the survey findings, one in five respondents with moderately high or high levels of debt stress experienced incidents of mental and physical health deterioration. The survey also found that highly debt-stressed people were:

  • More than 13 times as likely than low- to no-stress people to lose sleep at night
  • More than seven times as likely to have severe anxiety
  • Almost seven times as likely to take stress out on others
  • Nearly six times as likely to experience severe depression
  • Four times as likely to have ulcers or other digestive problems
  • Twice as likely to have heart problems and migraines

Money doesn’t necessarily lead to happiness, but managing it poorly can certainly lead to unhappiness. Although this study focused on debt stress, a 2009 poll found that money in general is the world’s greatest source of stress. Respondents cited the state of the world as their second biggest cause of stress. Health was last on the list of concerns in almost every country.

Reducing Financial Stress

So money-related stress can cause physical and mental health problems, and health is the least of our worries, according to the 2009 poll. Sounds like a recipe for disaster, but it’s understandably difficult to see the big picture when there are schedules to keep and bills to pay. What can we do?

  1. Get a plan. If your money stress is related to debt, the first step is to get increase your emergency fund. When you start to worry, reassure yourself that you’ve got a plan in place.
  2. Identify the negative ways you cope with financial stress. Often these are the same ways you cope with any other kind of stress, and many times the ways we deal are damaging to our health and well-being: alcohol, smoking, a bag of potato chips and a date with the remote control, gambling, becoming aggressive, avoiding social interaction, compulsive spending, chewing your fingernails, criticizing yourself for being such a hopeless idiot, etc.
  3. Look for alternative, healthy ways to decompress. If there’s a specific bad habit you turn to when stressed, 13 steps to a better life for ways to encourage happiness and reduce stress.

I can identify with debt and money stress. I used to ignore my overall amount of debt, afraid to even add it up. Once I paid it off, I would stress out about spending money. Eventually I found a balance, but even today — debt-free and emergency fund in place — money can still cause me anxiety, like when I found out the warranty on my laptop didn’t cover everything I thought it did. A few deep breaths later, I reminded myself that it was only Stuff, and I save money every month for occasions such as these.

It’s a vicious cycle, as financial stress turns into health issues, possibly costly health issues, that in turn increase our money stress. Relationships and job performance also can suffer, creating a bigger pit of despair. It seems that no matter what stage we reach, we have to be careful to not let money stress take over our lives.

What are your biggest sources of stress? How do you deal with them?

J.D.’s note: Debt used to be my biggest source of money stress. Then it became an obsession with frugality, which led me to cross the line to cheap bastard. Now my biggest problem seems to be an obsession with income: I want more money all the time. I’m beginning to see, however, that if I relax on my drive for a higher income, I can have more of other stuff, like time with friends — and travel.

Source: getrichslowly.org

Apache is functioning normally

Moving to the D.C. area after my twins were born, we transformed from a family of three living comfortably, to a family of five struggling to make ends meet on one income. I had to get creative with our family budget, and one of the biggest line items to tackle was clothing. Four years later, I finally have a handle on it. Shopping for clothes for my three kids has been fine tuned into a system that keeps us humming along season by season. How?

  1. I get the best quality I can within my budget.
  2. I take good care of what we have (and teach my children to do the same).
  3. I resell my kids’ clothing in good condition to recoup my costs.

Buy Quality Clothes — For Less

You can save on sturdy kids’ clothing — I get great longevity from Lands’ End and Gymboree — by only shopping sales and clearance. In her article about the best time to buy almost everything, April mentioned which days are best to shop the clothing stores, but knowing the seasonal clearance schedule is helpful as well. For example, I send my kids to their first month of school in shorts and wait for the jeans/pants/leggings to go on sale in late September and October. Winter coats are on clearance in February; be ready to shop ahead for next year.

You can shop online, but do it wisely. I never shop online without coupon codes, and I always shop through a cashback site like Ebates. Shopping online gives me a larger selection of clearance items than local stores. Additionally, shopping online helps me stick to my list and budget, whereas in a store I am tempted to make impulse buys. Finally, most online retailers allow you to return clothing to the store for free if they don’t work out.

Another way to save is with used clothing, especially in the early years (infant to age four). Considering the amount of wear, tear, and washing these clothes go through, you’re better off saving the “good” clothes for church, holidays, and photo opportunities and dressing little ones in used clothing for everyday wear. Whether purchased at yard sales, thrift stores or consignment sales, look for those high-quality brands, the ones that hold their shape and color for years. (J.D. has shared his 18 tips for thrift-store shopping.) I’ve also found new-with-tag clothes at yard sales. The ultimate way to save? Get kids’ clothing for free through Freecycle or handed down from family and friends (don’t be shy about asking!).

Take Care of What You’ve Got

When you take care of the clothes you have, you stretch your dollars by giving items a longer life and better value. I’ve taught my children to care for their clothes by returning to the old-fashioned notion of “playclothes”. My son has learned to come home from school and change from his khaki pants (bought on sale with a coupon, of course) into sweats or other playclothes. These clothes are for running around outside, getting muddy, doing art projects, and the rest of childhood life. We all wear jeans at least twice before washing, and I tackle stains early so they don’t set in. If long-sleeved tees become stained or too worn, they become undershirts for layering.

Resell Clothing When You’re Done With It

I choose my best-quality items to resell at my multiples club’s consignment sale or eBay, sell some at yard sales, and donate or Freecycle the rest. By doing so, I not only recoup some of my initial cost, I also avoid the expense of storage space and keep my kids’ closets clutter-free. The only clothing I keep from my son are those I’ve bought with my twin girls in mind — raincoats, pajamas and other unisex items in neutral colors like red and blue (which my girls prefer to pink, anyway). I even resell my children’s shoes, though that phase is almost over; older children’s shoes get worn out before they’re outgrown.

While I’m sure I’ll have to adjust my system a bit as my kids reach the tween years, adding their opinions and peer pressure to the mix, I’ve set the groundwork for reasonable clothing expenses. My 6-year-old knows we have a budget set aside for clothing and we discuss why a Pokemon T-shirt costs more than a plain one. Already, I see him making choices with his allowance that come from our discussions about wants vs. needs.

Source: getrichslowly.org

Apache is functioning normally

J.D. and I have been employing an independent housekeeper for about 10 years. The one who’s been working for us for almost five years, Michele, is fantastic and we feel lucky to have her. (We found her through Craigslist). Housecleaning is her full-time job.

It took us some time to get over our self-imposed barrier of hiring some help with the house chores. I’m not lazy, and it struck me as a weak, self-indulgent thing to do. But, as J.D. freely admits, he’s a slob. We’d fight over the mess in the house, and time and time again would try to institute a “system” to keep it clean, only to fail once more and descend into arguments. With both of us working full-time, we wanted to spend our time at home in other ways than cleaning.

Still, I felt guilty for paying someone else to do work I didn’t want to do myself. I admit it: It feels weird to pay someone to clean your toilets! And I felt guilty for even being able to afford considering “outsourcing” the housework. After all, anyone can do housework, right?

The “Housekeeper Dilemma”

Over time, however, I’ve realized that my guilt is misplaced. (Although it still lingers a bit.) Why would I feel any guiltier paying someone for cleaning my house than cooking my food at a restaurant, or growing my food at a farmer’s market, or knitting a hat I buy at a cute store? I can cook; I can grow food; I can knit. But often I choose to pay someone else to do these tasks rather than do them myself. Why does the housekeeper, then, represent such obscene luxury in our debates on the complexities of social economics?

J.D.’s note: Some of Kris’ thoughts here remind me of my own meditations on the guilt of wealth.

Primarily, I believe it’s because we see our housekeeper face-to-face. We invite her into our homes and our lives. We see the struggles in her life (she’s a divorced mom of two teenagers) in a way that is invisible for the many other jobs we outsource. The agricultural worker doesn’t deliver pears to my door, nor the factory worker bring inexpensive mass-produced products to personally stock the shelves in my pantry. I don’t directly pay the garbage-collector, the office custodian, or the guy who sweeps out the theater after J.D. spills all his candy on the floor. For these things, there’s an insulating layer of “a company” between the producer of the goods and the consumer. With housekeeping, no such dividing layer exists.

Professional housecleaning, like agricultural harvesting, child-care, and many service-industry jobs, is a job that is frequently performed by people without much higher education or unique skills. (Or they are choosing not to use that education or skills, or perhaps there is no market for their particular talents.) These jobs are typically low-paying, but that doesn’t mean the people who perform these jobs are unworthy. I’m all for a living wage, but the more specialized and rare your skills, the higher salary you can command if there is a market for those skills. It’s basic supply and demand. And just because a job doesn’t pay well does not mean that job is demeaning.

I won’t pretend my housekeeper has such a “passion for cleaning houses” that it led her to this profession, but she’s a survivor, and has chosen housecleaning for many personal reasons, not the least of which are the flexibility in her schedule, the freedom to choose the clients she serves, and the chance to be her own boss. The trade-offs include a physically-demanding job, inconsistent income, and a relatively low salary (due to not working 40 hours a week, although at $22, her hourly wage is decent).

I think another part of the “housekeeper dilemma” is the historical disregard for the value of work that has been “women’s work”, and the expectation that if there is a woman is in the house, she shouldn’t need to pay another person (usually another woman) to do the tasks she is supposed to be doing herself. If someone is cleaning a house that’s not their own, they must feel degraded, right? But any work can be found degrading, sustaining, fulfilling or mind-numbing. I doubt that those of you who clean your own toilets feel degraded by the process.

What matters is not so much the type of work but the working conditions and the self-respect possible for the worker. Michele knows her work is valued in our home. The days I come home after Michele has been at my house are like a treat to me! And she knows it — because I tell her. I’d gladly give up other expenses before I cut Michele out of my budget. For her part, I’m pretty sure she values having us a steady clients who always have the check ready on the table and share the garden produce in the summer months.

Everyone Outsources

The popular opinion is that anyone can do housework (so you shouldn’t outsource this labor), but does that mean that everyone has to? As GRS readers know, we grow and preserve much of our own food. That’s something I truly enjoy. Housework? Not so much. Someone else might think canning applesauce in a hot kitchen on a 90-degree day sounds like pure drudgery; they’ll outsource the task and get their jar of applesauce at the store. No one gives that a second thought, but there are a lot of outsourced laborers between the apple tree and that jar. Me? I’ll outsource cleaning the kitchen instead.

In my mind, the bottom line is that everyone outsources. Unless you grow, harvest, and process your own food, make your own clothes from fibers you’ve produced and spun, build your own house, create your own power sources, and are completely independent from the long chain of people in the manufacturing economy, you’re paying other people to do that which you do not want to do, don’t want to make time to do, or lack the skills to do. In the modern word, specialization is the norm.

So, do what work works for you — I’ll be in the garden.

Bonus! After Kris wrote this article, I made a point of talking with our housekeeper when she came by on Wednesday. Here’s what she had to say about her work.J.D.: What sorts of people hire a housekeeper?

Michele: All sorts of people. Students, new mothers, women with careers. It’s usually women, although lately a lot of men have been responding to my Craigslist ad. That kind of makes me a little nervous sometimes, but so far it’s been fine. I think they’re just trying to give their wives a break.J.D.: Should people feel guilty about hiring a housekeeper?

Michele: No way! Why should they? I had a housekeeper for a while. I had so much going on that I didn’t have the time to clean like I wanted, and I could afford it then. I’d do it again if I could. But I guess some people do feel guilty — especially women. There’s this stigma: People think women should be able to do it all — raise the kids, go to work, clean the house — but they can’t. A housekeeper helps relieve some of that stress. So I guess women feel guilty because they feel like they’re not doing everything they should. But bachelors that hire me? They don’t have one ounce of guilt! I think once people get past the guilt, they love having a housekeeper. It’s just a matter of where your priorities are and what you can afford.J.D.: How do you feel about cleaning houses? Is this what you see yourself doing the rest of your life?

Michele: Well, my passion is working with animals. I’d love to work in an animal shelter. And I’m a trained doula, but I just haven’t done anything with that. So, I clean. But that’s what I do anyhow. It’s just what I do. It’s in my blood. My dad owned a janitorial service. My sister cleans houses. My mother cleans houses. I clean houses. I like it. I like being my own boss. I like the variety, going from house to house, and I like the flexibility. Last time, you let me adjust my schedule so I could take my son to get a tattoo, for example. I couldn’t do that if I wasn’t my own boss. And it’s pretty good money — if I can fill up my days, which is harder with the economy like it is. But I enjoy it.

Source: getrichslowly.org