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Check out the great views waiting for you no matter where you live in Minneapolis.

There are some amazing places to call home all across Minneapolis. With so many beautiful places to choose from, location will undoubtedly be a major factor, but other amenities should also come into play. If you’re moving with your pup, you’ll definitely need a pet-friendly place. If you’re someone who loves having somewhere to chill that’s close to home, an apartment with a solid rooftop space may be the place for you.

Another overlooked feature to consider is the view. What you see out your window, or from other vantage points throughout your apartment complex matters. Whether you want a cityscape view or something completely disconnected from the hustle and bustle of the city, these apartments are where you can find some of the best views in Minneapolis.

Source: Rent. / The Lakes Residences

For a breathtaking view, check out The Lakes Residences. From the rooftop, you can see water, greenery and the city in the distance. Not only is the view great, but the amenities up here are top-notch. Grill out and dine alfresco under the pergola, or grab a seat at a table along the railing. For a more casual atmosphere, take up a spot on one of the couches or the cushy chairs. It’s all up on the roof for you to enjoy.

The big draw of living in this Cedar Isles-Dean community is the lake. Looking out onto Bde Maka Ska, the largest lake in Minneapolis, there’s no shortage of beautiful views of nature. Surrounded by parkland that includes a circular walking and biking trail, you can not only enjoy the lake from afar but get up close and personal. The Lakes Residences even has kayaks and paddle boards when the water starts to call your name.

Source: Rent. / Moment

Large windows and a private balcony combine to give each unit at Moment access to authentic Minneapolis views. Single-pane windows provide so much natural light as well as unobstructed views into the heart of Central Minneapolis. Enjoy the view in private, or head up to the roof to take it all in with old friends and new neighbors alike.

You’ll find Moment in Central Minneapolis, also as downtown. Living here puts you within walking distance of some great places, including U.S. Bank Stadium, where the Minnesota Vikings play on Sundays and many amazing musicians perform throughout the year. You’re also near The Commons, the city’s two-block urban park, and the Stone Arch Bridge which stretches across the Mississippi River.

Source: Rent. / The Original at West Lake Quarter

Bright swaths of sky and treetops comprise the view from the apartments at The Original at West Lake Quarter. Thanks to the sizable windows and private balcony, you can enjoy this view, and the sense of openness it conveys, from any room. This is a scenario where the best view in Minneapolis is more than just something to look at; it’s part of your decor.

Lake and city views await you when you call West Calhoun home. Now named West Maka Ska due to the area’s proximity to the lake, this is a great spot for anyone who enjoys outdoor recreational activities, especially on the water. From here, you can also explore the city via the Midtown Greenway Trail. At almost six miles, this path gives you a great way to get around and indulge in some exercise.

Source: Rent. / Calhoun Beach Club

Meant to impress, the park and lake views from your balcony at Calhoun Beach Club are outstanding. Residents here can always enjoy an unobstructed view of Bde Maka Ska and the lush trees in the park that surround the lake. This Cedar Isles-Dean community is yet another option that utilizes lake views to enhance the value of the entire property.

Views also include Lake of the Isles, Cedar Lake and the soaring buildings in the city’s center. All these breathtaking views aside, this community is full of high-end amenities, including a full-service salon, restaurant and spa services. For the more active residents, there’s an onsite health club, indoor and outdoor pool, tennis court, racquetball court and squash court.

Source: Rent. / Variant

Ready for another spectacular view of Minneapolis’ downtown area? Then check out the rooftop at Variant. This Central Minneapolis community benefits from a stellar location and offers up incredible views of the city’s skyline. What you can see from these small green chairs will blow you away, but the roof itself holds so much more.

While you’re up here eyeing that view, you can enjoy dining alfresco, cooking on the grill or chilling in front of the massive stone fireplace. Strings of Edison bulbs let you take in the city skyline even as night falls. Needless to say, it’s a fun and beautiful place to call home.

Source: Rent. / Eitel Apartments

Catch a perfect sunset or just enjoy the sight of the open sky from the roof at Eitel Apartments. With plenty of seating and a tabletop firepit to keep you warm even when it cools down, this will quickly become your favorite spot in the Loring Park area.

Charming and with easy access to a vibrant art, recreation and restaurant scene, Loring Park is decidedly where it’s at. This central downtown neighborhood is primarily known for its large green space (of the same name) where you’ll find a lake and extensive paths for walkers and cyclists.

Source: Rent. / The Churchill

Take in a totally different view of Minneapolis from The Churchill. Instead of looking out onto the tall buildings, settle into a Downtown West apartment with a view of what’s beyond the city center. From your patio windows, leading out to your spacious balcony, you’ll see a few tall buildings, but there’s also a lot of trees and sky — a magnificent combination.

Considered the business hub of Minneapolis, Downtown West isn’t all work and no play. The area is also known for its theaters and entertainment venues. The best part, The Churchill connects to the Skyway, so you can access everything this neighborhood has to offer, even on the coldest days, without going outside.

Source: Rent. / The Lago

Combine a serene spot with a solid view and you’ve got a winning pair when it comes to living in Minneapolis. At The Lago, you get the best view of the city from up high on the roof. The benefit beyond the sweeping skyline is the chill atmosphere and the awesome hangout spot. Gather with friends around the fire pit and enjoy the moment. That’s apartment living at its finest.

Able to boast it’s the most walkable neighborhood in Minneapolis, Lyn Lake is a great area to live in. You literally have it all right at your fingertips. The area is known for its indie stores, bars, trendy shops and restaurants. You can also hop onto the Midtown Greenway from here for some time outdoors in nature.

Source: Rent. / Laurel Village

How about this amazing view for your next Minneapolis apartment? It’s all yours when you call Laurel Village home. This Loring Park community gets you up close and personal with all the tall buildings of downtown. Having this amazing cityscape view as you hang out on this massive terrace isn’t too shabby either. Seating options range from chairs to couches to four-top tables, while the meticulous landscaping makes it feel like you’re in a park.

Living in the center of the city has more advantages than just laying claim to the best view in Minneapolis. Here, you’re close to award-winning dining, shopping and entertainment. You’re close to sports venues and plenty of locally-loved hangouts as well.

On property, you’ll find a solid amenity package that features a dog park, indoor pool with sauna and whirlpool, theater room and clubhouse. Available services include dry cleaning, package delivery, pet sitting and even plant care.

Source: Rent. / Heritage Landing

The high-rises of busy downtown are off in the distance at Heritage Landing, so when you step out on your balcony, the view tells a more mellow story. Right out front, you’ll see the varied architecture that makes up the Warehouse District. Buildings of all shapes and sizes give this whole area a more historic feel and make your view that much more dynamic. And, although you can see the urban center of the city standing tall off in the distance, what you have right around is a little more homey.

Full of scenic walking paths along the Mississippi River waterfront, when you live in the Warehouse District, you’re truly in the place to be. Also called the North Loop, what was once more of an industrial area is now full of amazing shops and restaurants. A lively neighborhood, there’s also a strong nightlife scene and lots of people out having a good time.

Make sure you have the best view in Minneapolis

With so many great neighborhoods in Minneapolis, it’s not so easy to narrow down your options. The best way to thin out the list is by the amenities available within the communities.

Make sure you get as many must have’s as you can, but don’t forget about that view. In a city like Minneapolis, you can see a lot of great things as long as your window faces the right direction.

Featured Image Source: Rent. / Laurel Village

Source: rent.com

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Well, as much as I tried, I couldn’t stay away from here for the entire rest of the year. I just missed you all too much! And when these pictures of my completed media room came back, I also couldn’t stand waiting to share the final reveal. So without further ado, a 2016 bonus post – call it the year’s finale. Seems fitting that is should a room in my own home – this really has been my biggest project to date!

Now if you’ve been an Apt34 reader for awhile (and I hope some of you have been!) this space might look familiar. That’s not just because I gave a little sneak peek in my holiday cocktail post a couple of weeks back.

You might recognize this space as I actually featured it as part of the One Room Challenge in October 2015. Yes, I said 2015. Back then I still had renovation naiveté and actually thought there was a good chance of construction being complete in time to finish a room in six weeks. HA! It only took seven more months. Lesson learned. Since moving in earlier this year, it’s also taken a significant amount of time to make my original design vision come to life. Unlike with our lofts, I’ve been incredibly picky about every single piece that comes into this house. Thankfully, I discovered ATG Stores , a new online furnishings retailer that carries just about everything under the sun. I was able to find all the finishing touches I’d been waiting for that ultimately pulled this room together. And I think my patience has paid off. I managed to create a respite from what is otherwise a toddler play zone! What do you think?

Being that this is our media room, I always knew I wanted this room to have a dramatic, dark color scheme with a very monochromatic palette. I’m obsessed with the black/blue that I found – it’s Benjamin Moore in Gravel Gray. We painted the entire space, including the crown molding and the ceiling in the same color with a flat finish. It gives the room the modern, masculine feel I was going for. Our light oak floors add just enough contrast to brighten the space. Having two oversized windows also flood the room with light so it feels chic rather than cave-like.

A point for the renovation geeks – I’m also obsessed with my outlets and light switches from the Adorne Collection by LeGrand – they come in a gray which compliments my color palette. Seriously awesome.

Keeping accessories to a minimum helps give the space a calm feel.

 

I used brass accents to warm the room. I love the little cocktail table – perfect for resting my nightly glass of wine (or two!).

A throw pillow with chartreuse and greens adds a touch of color to break up the monochromatic scheme.

I can never resist having a few treasures sitting out that make me smile. A selection of my favorite design books, a little bowl I’ve had so long I can’t remember where it came from. A strand of wood beads from the flea market.

I’ve broken down how you can recreate this look shopping from ATG Stores below.

SHOP THE LOOK: cactus / pendant light / brass table lamps / black throw / sectional / coffee table / marble & wood bookend / pillow 1, pillow 2 / brass & marble cocktail table / wood tray

For all the design inspiration for this room CLICK HERE

For the latest about our renovations, CLICK HERE

original photography for apartment34 by aubrie pick

This post is in partnership with ATG Stores. All thoughts and opinions are 100% my own. Thanks for supporting collaborations that have kept apt34’s doors open!

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Source: apartment34.com

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Last month, Alison from Diamond-Cut Life shared a guest post about providing lodging to a housemate in exchange for work (instead of rent). Her story prompted a number of readers to ask about the mechanics and practicalities of actually renting an extra room to generate income. For example, Penny wrote with the following:

In August, my brother-in-law moved in with us. By December, he couldn’t find a job, so moved back out. While I had mixed emotions about his leaving, I did lament losing the potential income, because I thought my husband would never agree to renting a room to a stranger. Imagine my surprise when I mentioned the idea and he agreed to it.

I need some advice as to some things we should consider when finding a renter.

  1. What would be the best way to charge for rent? Flat monthly rate with utilities included? Weekly rate plus a third of the utilities? In our immediate area, rooms rent for $485-500 with utilities, or $125/week plus a portion of the utilities. I’m torn between the two modes.
  2. What sort of keywords should I put in the advertisement that would help find the right fit?
  3. How would food work? I don’t mind cooking for everyone; in fact, I love it, but I don’t want to pay for all of their board.
  4. Any other suggestions? Am I being too specific?

Our situation is a bit unusual, because we’re sort of urban homesteaders. We have gardens all over our small yard. We don’t use the dryer or the air conditioner. We use wood heat in the winter. Our family hunts and fishes. Will these things matter?

I’m curious about this, too. I don’t know anyone who has ever rented out a room, so I don’t know the process — and I don’t know if the income is worth the hassle. I do have friends, though, who have been on the other side, who have rented rooms from people in Penny’s position. During college, for example, my friend Andrew rented a room in a converted garage. But although the garage was attached to the house, but he didn’t interact much with the family he rented from.

If I were doing this, I’d check with my lawyer and accountant to be sure I was fulfilling my legal obligations, as well as protecting myself from possible problems.

I’d love to hear anecdotes from other readers. Have you ever rented out a spare room? Or have you ever been on the other side? Have you ever rented somebody else’s spare room? What did you learn from the experience? What advice would you give to somebody who was hoping to generate a little income by renting out space in their home, garage, or attic? And, finally, do you have any specific advice for Penny?

Source: getrichslowly.org

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This is a guest post from CJ at WiseMoneyMatters.com. This post represents CJ’s viewpoints, which are not necessarily my viewpoints. (Although I, too, hope to pay off my mortgage early.)

Note: This is embarrassing. I don’t think I’ve ever had a post with an error like this slip by me before. I apologize. I’ve removed the offending section, not out of any attempt at revisionism, but out of interest in accuracy. Please let me know if the piece is still mathematically unsound. (And a sincere “thank you” to those who caught the error!)

The other day, I was telling my wife’s grandmother that we had sold our house. We are downsizing in order to eliminate our mortgage more quickly. It looks like we will have our mortgage completely paid off in three to five years, depending on when kids enter the scene. She gave me a speech about how our house is one of the only tax deductions we have, and how most accountants recommend you keep a mortgage payment for that reason.

I think this logic is misguided. Let me show you why.

The Standard Deduction

The 2009 standard deduction for married couples will be $11,400. That means in order to gain any benefit from tax deductions, your interest paid must exceed this number. In other words, you would have to pay $950 per month in mortgage interest (not principal) in order to see any tax benefit from your mortgage payment.

If you had a mortgage on a $200,000 house at 6.25%, you would be barely exceeding the standard deduction for the first few years, assuming the deduction never increases (which it usually does). After that, you would be better off taking the standard deduction assuming you receive no other deductions.

So, in reality, such a tax deduction would only be helpful in house purchases in which your mortgage is $200,000 or more. Anything else and it’s almost pointless.

J.D.’s note: As I usually do with articles like this, I asked my accountant for feedback. His response was: “This article seems accurate, but the author makes the assumption that an individual will only have mortgage interest to deduct when comparing to the standard deduction. Other items that are deductible include state income taxes, property taxes, and charitable donations.”

He also added: “You should not look at the tax savings as the reason to purchase a home. It is only one component, and a minor one at that.” Basically, he agrees with CJ.

A Poor Trade

If you do itemize deductions, you’re still paying more in interest than you’ll save on taxes. This is the second thing that people overlook.

If you are paying over $11,400 in interest, that does not mean that you are paying $11,400 less in taxes. It means that $11,400 of your income is not counted as taxable income.

Let’s say you’re in the 25% tax bracket. If you pay $20,000 in mortgage interest, it will save you $5,000 in taxes. $20,000 of your income does not count towards taxes. Effectively, you are paying $15,000 to get your tax deduction. This is not the most financially sound advice I’ve ever heard. If you take such advice, I’ve got a really good deal. I will pay you $33 in exchange for $100. That’s the same type of financial advice as someone telling you that keeping a mortgage is a good thing for tax reasons.

The Risk Factor

The final benefit to paying off your mortgage is that it reduces financial risk to yourself.

Keeping a mortgage payment (and especially a high mortgage payment) is risky. In the unfortunate circumstance that you lose your primary source of income, your largest “asset” can quickly turn into your largest liability. This is a big reason why so many people are facing foreclosure these days. They got into a mortgage payment they couldn’t afford (or could barely afford) and all of a sudden when a small hiccup comes up in life, they are living on the street. Emergency funds are important to help offset these risks, but to truly eliminate the risk, you should pay off your mortgage.

I’ve heard of people who took out mortgages on their homes during the housing bubble so that they could invest the money in stocks. They argued that you get the tax benefit and stocks appreciate quicker than a house. As we can see now, this is an unwise financial decision. Sure, you could make lots of money. You could also make lots of money by winning the lottery, but that doesn’t make it a wise retirement plan.

When it comes down to it, I would rather have the safety of knowing that if the economy crashed and I had to work at McDonald’s for the rest of my life, I could still survive just fine with my current lifestyle.

Final Thoughts

While I know there are a lot of variables and other tax deductions I didn’t cover here, I think it’s safe to say that the old notion that keeping a mortgage simply for its tax benefits is not the best advice you can get. When it comes down to it, get the financial advice of a professional regarding your individual situation but don’t simply take their word for it. Have them show you the numbers before you start throwing your money away. I’d argue that even if the numbers are close, the risk factor puts paying off the mortgage in a slightly better position than not.

I’d love to hear some comments or scenarios where keeping a mortgage is better than taking the standard deduction.

Source: getrichslowly.org

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Pretty much since I learned to walk, I have had an unusual disdain for waste. I noted the inefficient route of the school bus and wondered why it couldn’t just pick us up at a few centralized locations. Tracked my allowance with multi-year forecasts and kept the dollar bills organized in a photo album. Always cast a fiery eye towards a fridge or a front door left open, a car left idling, or a credit card bill left unpaid.

This odd condition has proved to be profitable over the years, as I have naturally sought out ways to use less energy and waste less money, with very positive side effects like getting to spend more time outside and retiring from work relatively early.

This is the reason the concepts of money and energy efficiency mingle so freely on this supposedly-financial blog: you can look at your energy consumption as a very close measure of the wastefulness of your life. The ideal life, even a very modern one, will require you to spend very little of your earnings buying energy. This is a contrarian opinion for me to hold in this world of Peak Oil and energy shocks, but check out the evidence:

Transportation: The Mustache family uses less than 3 gallons of gasoline per month for most of the year. This changes for special occasions like family roadtrips, but by following the basic principles of avoiding commuting and car clown local driving, and using the bikes for errands like groceries, driving is cut by almost 90%. Savings: about $10,000 per year compared to an average family.

Electricity: Although our current 2600 square foot house is oversized for three people, we manage to run it these days on 243 kWh per month, which costs about $25.00 even when offsetting 100% of the use with more expensive wind energy from the local utility. This is done by being reasonable with the air conditioning, letting our bodies toughen a bit as the seasons change, line-drying the clothes, and using CFL and LED light bulbs*.  Savings: About $1000 per year

Heating: I have upgraded some of the insulation in this house, added some South-facing windows and plenty of thermal mass, and seal the curtains and shutters up tightly on winter nights while the programmable thermostat keeps the house at 62F during the nights, 67 during the day. The water heater is in an insulation blanket and we use a low-flow showerhead. Because of this our spending on natural gas averages out to $25 per month ($300 per year), which includes all heating, hot water for showers and dishwashing, and cooking. In contrast, the average US house spends $400 on water heating and another $960 on heat, meaning we enjoy Savings of $1060 per year.

When your bills are this low, it becomes a bit difficult to save money on energy by buying high-tech upgrades. I could get a Nissan Leaf electric car, but it would sit unused in the driveway just as much as the Scion xA currently does. Could replace my 80% efficiency furnace with a 95% efficient one for $4000, but the payback period would be decades. Better to just add $100 more insulation or get a nice pair of slippers to drop the existing furnace use even more. We spend about $5 per year on electricity running the air conditioner – I’d sooner remove it altogether than upgrade it.  I can’t even upgrade my city bicycle, which cost $300 brand-new in 2008 and has over 4000 miles of errands on it, because it still works perfectly and gets me around very quickly. This whole picture is an example of a Non-Emergency Energy Situation. Spending is minimal and further optimization is difficult, so energy use fades into the background where it should be.

So when does energy use become an emergency? There is no single fixed rule, but the following are some warning signals:

When energy is unusually expensive: While living in Hawaii last winter, I noticed that their electricity is generated by burning tankerloads of imported oil, which is reflected in the 30 cent/kWh price (300% of what I pay here). And all the water is electrically heated – furiously expensive. To compensate, we took many of our showers just by jumping into the turquoise-blue ocean and outfitted the Vacation Suite project with GU10 LED bulbs in its track lighting system, which use 85% less power than halogens. People who live in the Northeastern US who rely on heating oil are in a similar situation for heat.

When more than 5% of your income is on spent on energy and gasoline: Bumping up your savings rate by 5%, for example from 10% to 15% of income will slice 8 years off of your working career. Is worth working 8 more years just to stand at the gas pump?

When you have a rattly almond-colored fridge with fake woodgrain handles:
Last year I ran some tests on an old fridge that a friend still had in operation. It was burning 110 kWh per month, or  $135 of electricity every year. For $300 he replaced it with a nearly-new fridge from Craigslist and I measured it again. This one used 62% less energy, saving him $83 per year, which is a spectacular 28% annual return on investment! When you do the math, many of the lower-cost energy upgrades described in this article will return even more than the stock market over time.

When you find yourself driving around regularly in a car that gets worse than 35MPG:  Imagine that your only vehicle was an 84-foot double-trailer Walmart semi, stuck in first gear with no muffler and a bed of nails for the driver’s seat. Would you take it down to the drive-through? Probably not. This is how ANY sub-35MPG vehicle should feel in your mind to drive regularly. It’s an emergency! Sell it! Replace it with a reasonable car!

My own Plan for Energy Efficiency

The latest sketchup model is fully detailed, and structural engineering is almost done too.(Thanks Mike B and Chris G!)

Because energy consumption is one of the biggest issues affecting humanity these days, I’ve decided to go just slightly overboard when renovating the new house. It presents an ideal blank slate for this experiment because in its current condition, it is an energy emergency. It came with almost completely uninsulated walls and ceilings, and a drafty crawlspace that lets winter air blow directly in from the outside. I found it both ridiculous and amazing that the house has existed in this condition, wasting energy for almost 60 years.

But through this blog, I had the good fortune of hearing from a reader/energy expert named Roch Naleway who manages a department of GP Conservation products. Born in Germany and having lived in the Netherlands and now Portland, Oregon, you can imagine the strict views this man has on energy efficiency. And he has been lecturing me to take my own own game to the next level on this project.

Insulation:  The new insulation will be a combination of sprayed-on foam insulation, rigid foamboard with foil backing, and standard batts. The roof, all-important in a wide flat house like this one, will be insulated to R-50.

Free Solar Heat: The amount of South-facing glass in the house should provide more than enough to heat the entire structure for most of the cool season, since my region gets over 300 sunny days per year.

Supplemental Heat: The house currently has an old gas furnace with creaky mouse-filled ducts. This will be replaced with a 95%-efficiency gas boiler and radiant under-floor heat installed between the ducts from the crawlspace side. Although it will hopefully not be used much, it will be a luxurious and efficient way to warm the house, and an excuse for me to learn how to install a multi-zone boiler heat system. Also nicely compatible with roof-mounted solar water heating panels in the future.

Electricity: I will be installing a very fancy clothesline overlooking the park, and no air conditioning system at all. With LED lighting throughout, our bills should be even lower than they are today. With usage this low and a local utility that discourages grid-tied solar installations, solar panels are not practical at this time, but I will probably do some off-the grid experiments in the future – stay tuned.

Water Heating: Either a tankless natural gas heater or an electric heat pump water heater will get the job done here. I will supplement it in the summer with a Hawaiian-style outdoor shower that gets its heat entirely from a simple coil of black irrigation pipe mounted on the roof.

As the final bit of this energy efficiency experiment, I just ordered a fine new tool which should come in handy for both the blogging and construction “businesses” : an 8-foot-long bike trailer from Bikes at work that can carry huge items up to 300 pounds. With my new house only 1.7 miles from the Home Depot, I plan to use this to haul most of the construction materials, eliminating countless trips in the van and giving me some serious leg training in the process.

 Energy Efficiency Shopping: If you find this field as interesting as I do, I recommend browsing around GP Conservation’s site. If you have questions about the field, ask them in the comments and I’ll try to get Roch to spend an entire workday answering them for us.

Further Reading: Wired Magazine comments on how we’ll all be using almost entirely clean energy by 2050 – I sure hope so.

* I recently upgraded the last frontier – the kitchen – with higher-end LEDs from GE. These were the first LED bulbs I found with a sufficently good “color rendering index” to make the food look tasty, and thus they finally allowed me to remove the power-hungry halogens.

Source: mrmoneymustache.com

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Ever wondered who your neighbors were? Looking for a lost pet? Maybe you just want to find a babysitter for Saturday night. While asking for recommendations on Facebook is one way to handle that, you may not live near most of your friends. That’s where Nextdoor comes in: this handy app not only helps you connect with your neighbors on a community level, but lets you reach out to people who live near your home.

Nextdoor App? What’s That?

Nextdoor was created in 2010 as a social network for neighbors. The idea was to connect neighbors and neighborhoods, thus drawing people together, as resources for each other.

How Do I Get On Nextdoor?

In order to register with Nextdoor, you have to provide your real name and verify your home address. Verification methods can include a credit card, or confirming a code that’s either mailed or phone to the new user.

Once verified, you can post messages to neighbors in your community, as well as nearby apartment communities. You can also reply to other messages. Can’t find anyone you know on the app? It even provides you the ability to send postcards to non-registered neighbors to get them on board.

What Can I Use Nextdoor For?

  • Lost Pets: Let’s face it — pets get out and it’s tough to track them down. Nextdoor can help you to alert your neighbors to keep an eye out.
  • Items to Sell: That horrible chest of drawers you’ve been dying to get rid of may just be someone else’s treasure. Try advertising your unwanted stuff on Nextdoor and make some extra cash.
  • Recommendations: Need a cleaner? How about a babysitter for that date on Friday night? Your neighbors in the know can help you find a reliable source.
  • Questions: Unsure and new to the area? Ask your neighbors to let you know the best commute route to downtown, or about that free shuttle bus nobody told you about.
  • Crimewatch: Many police departments are posting local crime tips on Nextdoor. Neighbors also tend to report suspicious activity. Take a look to be aware of what’s going on.

If you’re a bit too shy to go and introduce yourself to your neighbors, the Nextdoor app can be a great way to engage with your community. Try planning a pool party or potluck, or simply as where the best dry cleaner in the area is. This handy app can make sure you stay connected.

Are you friendly with your neighbors or are you just on a “nodding acquaintance” basis? Is getting to know your neighbors worthwhile? Let us know on social today!

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Today we bring back the ever-popular reader case study series with an interesting twist.

First of all, our subject is a new reader, with sizable financial baggage from earlier decades, but plenty of potential for improvement. Equally notable is the fact that I have enlisted some outside help for the research and analysis.

During a recent trip, I ran into another blogger named Jacob Wade who, quite amazingly, actually likes  budgets. In fact, he feels so strongly about it that he named his financial blog iheartbudgets.net. We got to talking, and he enthused about how much he likes analyzing and solving detailed financial problems for other people.

“Oh boy, do I have a job for you”, I said. “I get emails from people with detailed financial problems every day, and although I still read every one, it pains me not to have time to respond to many of them.”

Could Jacob’s enthusiasm be used to all of our advantage? I sent him a sample case study to test out his chops. I was pleasantly stunned by the results – he did a great job, and offers advice that even I would consider hard-hitting. Let’s dig into our dear reader’s story, then you’ll see the analysis with some joint recommendations by Jacob and myself.

[contents edited for length]

Dear Mr. Money Mustache,

I’m a recent reader of your blog, courtesy of your interview with Jesse at You Need A Budget, which is the budgeting software I’ve been using. I know that you’re all about retiring early, but I’m wondering what advice you’ve got for someone who wonders if they’re ever going to be able to retire at all!  Much of what you recommend we can still put into place, I know, and we are in the process, but I am unsure if our advanced age changes any of those tactics and strategies.

I’m not going to bother to tell you all the mistakes we’ve made in 27+ years of marriage and raising five kids.  I’m sure you know the drill, since we lived the basic “American Dream.”  We are now 53 years old. My question now is “What’s the best we can do at this point?”

This is where we are:

  • We have a home with a mortgage/equity loan that’s about $20,000 less than the list value of the house.
  • Our credit scores are low, partly due to not having any credit cards for the last ten years to show a history, and partly due to having late payments due to temporary unemployment, among other things.
  • We are the “OMG your hair is on fire” commuters; 45 minute commute for me, 55 for husband, we live in the middle of nowhere, and real estate in our area is not selling.
  • 4 of 5 of our kids are still in college, two live with us and commute, the (recent) graduate lives with us and has an entry-level job since he can’t find work with his degree.  Our commuters travel by bus 30 minutes to the WEST of us to go to school, we travel EAST to go to our jobs. Our employed graduate also travels west to his job, in the same town where the other two go to college. This makes moving a little bit more complicated.
  • Retirement: We both qualify for Social Security; however, I have met only the minimum number of quarters since I took 17 years off to home school our five kids, and my estimated benefit at age 67 is $524 a month. I have now been teaching at a charter school since 2006, and contribute to Massachusetts Teachers’ Retirement. I would need to work and contribute to that fund until the spring of 2026 to be fully vested.
  • My husband’s estimated Social Security benefit at age 67 is about $2000 a month. He has $20,000 in a 401K with his current employer, and two smaller accounts with former employers, one with a balance of about $4000, and one with roughly $500. I contributed briefly at work to a TIAA-CREF fund, and the balance is about $1000.
  • I have a newly minted Master’s Degree, which I was required to get in order to keep my teaching license, leaving me with loans of about 22,000.
  • Commuter son and husband have a Nissan Sentra and a Toyota Yaris, both paid for.  I am driving our 2005 Dodge Caravan, which is on its last legs at 180K miles with beaucoup mechanical issues.
  • We live in Massachusetts, so are among those few who still use oil for heat and hot water; we have electric appliances.
  • We own term life insurance policies, and have health insurance through my husband’s employer (a health insurance company).
  • We owe back taxes to the IRS and Mass DOR, and have had our paycheck withholdings changed recently to avoid this in the future.
  • Not necessarily in the same vein, but relevant – I am a Yankee who would love to penny-pinch, and my husband is a free spender who loves to buy things on sale and as little “rewards” for himself and others, and chafes at the yoke of a budget.  He is (grudgingly) on board with me now. We rarely disagree about anything except money.  🙂

I guess that’s a grim enough picture for now; as you can see, our situation is a giant Charlie Foxtrot*.
I know you get tons of email; perhaps this one will be just different enough to intrigue you – maybe you can Mr. Money Mustache even the old and desperate!

Thanks,
CF in MA

Mr. Money Mustache’s Observations:

This story is a great example of what happens when you live a good, honest life, but just don’t get around to doing the math. Other than the $1200 of oil and gas that goes up in flames each month, the rest of this budget looks fairly moderate for a large household. But there is no way to cheat the numbers. Children cost money to raise, and if you want to raise a large number of them on an average income, something else has to give.

And most people don’t realize that car-commuting (even a 10-minute ride) is spectacularly expensive, so your 45-minute double commute is astonishing. A 2005 vehicle that is “on its last legs?”. I bought my 2005 car four years ago with 57,000 miles and it just cracked 80k this year. It is still brand-new and has many decades of life left! Commuting in a VAN? I use my van when I need to carry home 1200 pounds of steel beams I found on Craigslist for my house rebuilding project – not when I need to transport  one lightweight human across a vast distance!

Finally, while supporting adult children and “treating” oneself are nice options to have, from a financial perspective you don’t actually have these options. This is what has caused the long-in-the-making financial emergency.  The great news is that you can dig out of this hole much more quickly than you sank in.

So let’s move on to Jacob’s analysis:

Assets:

Home – $235,000
Retirement Fund Savings (401k and MTR) – $45,000
Cars – $7,000

Debts (Balances):

Mortgage – $167,000 at 3.5%
HELOC – $25,000 at 4%
Student Loans – $22,000 at 6.8%
Dell Loan – $2,500 at 16.66%
Personal Loan – $650
Staples CC – $500

Goals:

To retire ever
Budget:

OLD NEW Comments
Total Income $ 7,200.00 $ 7,200.00
Total Expenses $ 7,161.00 $ 3,504.00
Projected Ending Balance $ 39.00 $ 3,696.00 — Much better!
Donations
Other $ 110.00 $ 110.00
Total Donations $ 110.00 $ 110.00
Bills
Mortgage $ 1,330.00 $ 1,000.00 The goal is to be able to actually stop working at some point, so aggressive measures need to be taken. I suggest selling the house and moving MUCH closer to work (within 5 miles of both if possible). If possible, find something for $1,000 a month (about $130,000 15-year loan) or less.
Electric $ 200.00 $ 100.00 You can lower your electric bill if you implement the changes suggested in this MMM article. You stated that you have started hang drying clothes, now it’s time to move on and get all CFL’s bulbs and watch the A/C.
Oil Heating $ 700.00 $ 200.00 This bill is KILLING your budget. When you re-locate to a location closer to work, look for a natural gas furnace or another home with low heating costs. Otherwise you will literally waste $86,500 over the next 10 years on this. It’s not worth delaying retirement AN ENTIRE YEAR to pay for this inefficient heating method.
Cell Phone Sprint $ 320.00 $ – When moving, you are going to need to drop the cell phone family plan. I didn’t see a line for reimbursement for this, and you cannot afford an extra $275 a month to pay for your family’s cell phone usage. Move everyone to Republic Wireless and only pay for the adult plans.
Cell Phone Republic Wireless $ 23.00 $ 46.00 Looks like you got started with one line, just double it up here.
Netflix/Hulu/Other $ 40.00 $ 40.00 MMM: Huh? Netflix is $7.99/month. Between library books, learning new skills, and this, you will have plenty of entertainment.
Car Insurance $ 155.00 $ 90.00 Shop this around. We pay $78 for liability on our two used cars, there’s no reason you need to pay any more than $90 a month for basic coverage. Since you have a used car, all the extra insurance is not necessary to cover scratches and dings and the like. (MMM Note: mine is $30/month for two cars and two drivers)
Internet $ 70.00 $ 70.00 Also worth shopping around – in your new area the competition might be better.
Land Line $ 35.00 $ – Land line is not needed. (unless there’s a business need for this)
Garbage $ 20.00 $ 20.00
Medical $ 182.00 $ 182.00
Student Loan 1 $ 293.00 $ 293.00 We’ll address this debt below.
Student Loan 2 $ 130.00 $ 130.00 We’ll address this debt below.
Life Insurance $ 91.00 $ 91.00
Personal Loan $ 90.00 $ 90.00 We’ll address this debt below.
Dell Loan $ 160.00 $ 160.00 We’ll address this debt below.
IRS and State Taxes $ 700.00 $ – You stated in email that this balance is now at $0
Paypal Loan $ 160.00 $ – You stated in email that this balance is now at $0
ADT Security $ 50.00 $ – Not necessary. Here’s a direct quote from MMM: “These are a silly invention – the Timeshare Condos of the suburbs. Drop it, live free, and save $(50)”
Homeowner’s Insurance $ 55.00 $ 55.00
Total Bills $ 4,804.00 $ 2,567.00
Other Expenses
Food $ 900.00 $ 400.00 Check out MMM’s advice here. You can reduce this bill to $400 a month easily and eat VERY well with a though-out meal plan and some smart shopping.
Gas $ 575.00 $ 150.00 Since we have cut your commute down to only a few miles, your gas bill should be VERY low ($50 a month or less). I padded it a bit to drive out and visit family.

MMM Note – and remember that “Gas” should never be used as an approximation of the true cost of commuting. You need to triple this number at least, just to account for the direct car costs. Adding in life costs, the bill is much higher again.
Eating Out $ 15.00 $ – While you’re in debt, this is a luxury that cannot be afforded. Take care of the DEBT EMERGENCY first, and then add this back in.
Spending Cash $ 25.00 $ – Same as eating out.
Personal Items $ 85.00 $ 85.00
Household Items $ 62.00 $ 62.00
Clothing $ 60.00 $ 15.00 You don’t need $60 of new clothing a month. $15 a month should take care of any clothing necessities with thrift shops, consignment stores and garage sales. Also leverage family and friends to organize a clothing swap (read: FREE CLOTHES) if additional garb is required.
Misc $ 40.00 $ 40.00
Car Maintenance $ 50.00 $ 50.00
Total Other Expenses $ 1,812.00 $ 802.00
Savings Buckets
Christmas $ 25.00 $ 25.00
Emergency Fund $ 410.00 $ – This will be addressed below.
Total Savings Buckets $ 435.00 $ 25.00
Total Expenses $ 7,161.00 $ 3,504.00

Jacob goes on to write,

Dear CF,
Thank you for exposing your budget to all of us financial voyeurs.

There is a LOT going on here, and a lot to address below. The goal here is to make every hour of work from now until retirement count. So let’s get to it:

Housing: I won’t pull any face punches here. You need to move. Your heating bill and commute are absolutely killing your financial situation, and you will NOT retire anytime soon if you stay there. There is $980 potential savings PER MONTH or more in this transition (including commute and utilities), as well as cutting your commute time down to almost nothing, saving time and stress. This move is to help you take a sharp exit off the highway of Never Retiring Wastefulness and allow you to not work until you die.

In emails, you stated the house needs about $8,000 of updates to rent or sell. Since you have about $2,000 of other monthly savings lined up in this budget, you should be able to have this taken care of within four months, and be moved out in six or seven months. Savings on mortgage is at least $330 per month.

You also stated needing a replacement car soon. Please read this MMM post and PAY CASH for your next used-car purchase.

Food: If you are feeding a flock of adult children, they are going to have to chip in. There is no reason you two people can’t eat VERY well on $400 per month, and with proper planning, that could be $300. So many people cannot save enough to retire but are actually just eating their retirement meal by meal. For reference, the extra $500 a month spent on food would cost you over $86,000 over the next 10 years, and cause you to work an additional year for that inefficiency. Nothing tastes THAT good. Savings of at least $500 a month.

Debt: This debt is to be treated as a radioactive plutonium. You must neutralize it ASAP, and this will be your first priority. Here’s how I suggest you tackle it with your extra $3,700 a month.

Dell Loan – $2,500 at 16.66% (gone in month 1)
Personal Loan – $650 (gone in month 1)
Staples CC – $500 (gone in month 1)
Student Loans – $22,000 at 6.8% (gone in month 7)

With all the expenses saved from the above changes, you can kill this debt COMPLETELY in 7 months. The first 3 debts will be gone in the first month! Now you have another $673 a month to invest.

Investments: Once your consumer debt is gone, you will have about $4,400 a month to invest in index funds to get you to retirement. Investing this at 7% for the next 12 years with your starting balance of $45,000 puts you at about $1,100,000 at age 66.

Your annual expenses with the above budget are about $42,000 per year, and using the rule of 4%, this money would provide you with $44,000 annually. You can retire!

This quick plan comes with a major safety margin:

  • the $2,000 per month of Social Security your husband can begin drawing at age 67
  • whatever you get from the teacher’s Retirement Fund
  • the fact that your new mortgage will be paid off in 15 years, dropping the future budget

Conclusion: Yes, this is a lot of change. No, moving won’t be easy, and figuring out the details of your kids housing and all that is going to be a challenge. But the status quo is what got you here, and changing the flow of money is what will get you out.

Comments: What would YOU do in CF’s position? Can she recover and earn a solid retirement in a timely manner?

MMM Note: Thanks again to my new friend Jacob for all of the help on this one, and you may see a few more case studies around here if we’re lucky.

*I think this is a witty polite way of saying “CF”, which of course means “Clusterfuck”. I thought this was a skilled use of swearwords, and it is one of the reasons I decided to take this case study. 

Source: mrmoneymustache.com