Financially Free to be Me

Today when I checked my bank account I saw that I'd received the $125 payment for a ½ day consulting job I did about a month ago on a Saturday. I’d forgotten about it, so it was a pleasant surprise. I decided to send the entire amount to Kiva, www.kiva.org/ to help a women’s weaving cooperative in Guatemala. Once I am officially retired (August 2008), I will add any subsequent 1099 income to my $20 Challenge.

I love the intricate detail and beauty of Guatemalan weavings. Here is an example of a table runner I have on the dining table in Idaho.

As I look back on June, it’s been atypical in the amount of money I’ve spent on “extras.” Most of this has been on gifts for staff I’ve worked with for the past 8 years. I always give them a small “thank you” gift at the end of the school year, but since I am retiring before the start of the new school year, I did spend more than usual. When the CC bill arrives, I will take this out of my personal “Fudge Factor” reserve account.

Gifts:
Thank you gifts for my office staff (3): $198
Thank you gift for my Assistant Principal (gift card): $75
Birthday gift for my secretary: $47
Birthday gift for my assistant: $47
Graduation gift for friend’s daughter (Macy’s gift card): $50
SIL2 Birthday (gift card): $100

Misc. expenses:
Potluck lunch contribution (from favorite restaurant): $53
Vet bills: $477
Pet sitter (includes tip): $179

Today we woke up in beautiful, scenic Idaho. DH and I made the 12-hour drive yesterday, although we usually fly. We’ve owned our second home in ID, where my two DDs live, since 2006. We’re grateful that DD2 and SIL keep an eye on the house for us since their home is nearby. During the growing season, they mow a small patch of lawn in the front and back. Everything else is automated (sprinklers, heating/cooling, lights). SIL and DD2 do a great job as caretakers and best of all, they do it willingly. We’ll be here about a week, and then drive back to our main home in CA to get ready for our NYC trip.

We love the slower, more relaxed pace here… not to mention it’s more affordable, especially food, gas, and utilities. There’s an abundance of outdoor activities and cultural events, so we never run out of fun things to do. Most importantly, we are near family and that is why we chose this location. In about 5-6 years (maybe less), the plan is to sell our townhouse in CA and relocate permanently to this lovely state. The move will depend on when DH decides to retire from the university teaching job he loves.

Our Idaho home has an appealing “Craftsman cottage” feel to it… it is one-story with high ceilings, shutters on the windows, lots of natural light, low maintenance landscaping, and a garage you access from an alleyway in the back. It is located in a family-oriented, safe neighborhood where every house is unique in a design that must adhere to the CCRs (e.g., 1400 sq. ft. minimum, rock/brick on façade, one or two large trees on front lawn, etc.). There is a small park and a greenbelt nearby. Our house is one of the smallest in the subdivision, but we like its compact footprint and lower-cost maintenance.

This is the first house we’ve ever owned that no one’s lived in before us, and it was affordable enough that we were able to pay for it in cash. The monthly upkeep including property taxes, insurance, HOA dues, and utilities, has been consistently under $400 a month. Of course, utilities are low right now because the house is vacant about 85% of the time… and we know these will increase once we live here year round. But, we’ll also save money because Idaho gives a great homeowner’s tax credit that will lower our property taxes when we make it our primary residence and are able to claim the exemption.

Here are some of our "neighbors" enjoying the green belt.

LN has been my pet-sitter for about 8 years and without her help, traveling would be more complicated. It’s important to me that my pets are able to remain in their familiar environment and do not have to suffer the stress of being placed in a kennel cage. The first time any of my pets have met LN, they've warmed right up to her, showing me she is a genuine "animal person." LN really seems to enjoy her job and has always been trustworthy and reliable.

Currently, LN charges $22 to come to our home once a day to take care of our two cats (now it’s just TC since MC passed away). She feeds, provides clean water, cleans the kitty commode, takes in the mail, waters the plants/patio, and plays with the cats. Her fee is just $4 more than the boarding facility (vet clinic). Actually, to board would cost $18 per cat, so we saved money when we had two cats. LN leaves detailed notes that I enjoy reading and sends regular email updates on the pets. I’ve referred LN to several other people and they agree she is the best.

Yesterday was a very, very sad day for me… I had to have my beloved 18-year-old kitty, MC, put to sleep. MC was like a member of the family. He was a dear little companion and friend who has been through many ups and downs with me for almost two decades, and in my life longer than my DH. I will forever miss his gentle spirit and sweet disposition.

MC – February 1, 1990 - June 24, 2008

Summary of my $20 Challenge for last week:

Balance Forward = $54.04

Drove Prius 3 days = $6.39

NSD (4) = $12

New Balance = $72.43

My $20 Challenge is looking very sad right now. If I earn any 1099 income in my retirement, I will add the entire amount to this category. I am currently negotiating a consulting contract with my soon-to-be former employer, but I am not sure I will accept the assignment. This is the great thing about having CHOICES. The project will have to really appeal to me, otherwise I will pass.

DH and I are off to NYC in early July for a family wedding and are excited to be visiting for the first time. Our challenge will be to stick to a vacation budget for the entire week. The budget does not include air fare and hotels as these are already paid for. We are spending 5 nights in Hotel 1, and then changing to another hotel because Hotel 1 would cost more than $400 a night if we had to actually pay for it. (We paid w/points but only had enough for 5 nights.) Hotel 2 is a smaller boutique hotel that is “only” about $215 a night but includes a free breakfast and like Hotel 1, is in the heart of Manhattan. We know NYC is expensive, so I’ve tried to plan accordingly.

Expenses so far:
Air Fare - Paid with “miles” (saved $1000+)
Hotel 1 - Paid with “points” (saved $2100+)
Hotel 2 - Paid from vacation “reserve fund” (cost $439.58+)

Daily Spending Budget (average):
Meals for 2 - $80
Taxis, subway, entrance fees, etc. - $70

Budget for entire week: $1,500

My questions:
Any recommendations for “must see” sites in NYC?
Is our “daily spending budget” realistic?
Any frugal travel tips?

All feedback is appreciated. Thanks!

When I decided to retire, the hardest part was to tell my staff and my community. After 8 years as principal of a large, culturally and linguistically diverse urban school, I have made many wonderful friends, have had many challenges, and many successes. Over the years, my school has been the recipient of several national and state awards, in part because we are a community that has learned to work well together.

Some people may think that I chose to retire because I didn’t like my job, or my health was bad, or I was moving…. Actually, it was none of these. Even though I had a job I LOVED and that paid very well, its very nature created more stress in my life than I was willing to live with at this point in my life. With over 800 students and 65 staff members, the pace was fast, the problems and issues constant. I chose to leave on my terms: while my school was thriving and I still had enough energy to tackle other projects and plans.

So, in late-May, on the day I informed my staff of my retirement, there were many tears, good wishes, thanks, and laughter. I did not want a lot of fanfare … it is not my style. I just wanted to go quietly. Nonetheless, I agreed to a “dinner” in my honor, hosted by my staff at a local restaurant.

To my surprise, this dinner was actually an elaborate retirement party attended by about 85 people, friends and colleagues from the last 15 years. There were videos, surprise VIP guests, entertainment, memory books, great food, orchids galore, and more. It was a wonderful celebration that I will never forget. Some “regrets” I have: because the party was planned in less than two weeks, some people at previous schools were not invited (obviously, I did not control this), and I feel badly that there are some hurt feelings. Also, I would have insisted on NO GIFTS (had I known). All in all, it was a lovely and memorable evening and I feel honored to be recognized in this way.

Today I was at a workshop for teachers. Although I'm a soon-to-be-retired administrator, I will continue to work a few days in the fall as a consultant, focusing on supporting new teachers.

At lunch I sat with a group of first year teachers and the conversation turned to vacation plans. One young teacher, XX, shared that she and her husband were taking their three-year-old son to Disneyland… a very nice plan, I thought, until XX shared that they were charging the whole trip because they had no savings AT ALL. However, she said they “deserved a great vacation” because they had worked hard all year.

A few minutes later, XX confided to me that she was concerned about how much they owed on their credit cards (“four figures and growing daily”). She didn’t know where it would stop but she knows it has to since they want to buy their first house. XX was proud that each month they paid a “far more than the minimum payment but the balance never seems to go down.”

I told XX to consider connecting to SA as there are many people in her situation who have succeeded in doing exactly what she wants… getting out of debt and taking control of their finances. Sometimes, what we need is moral support to get out of the cycle of digging deeper into debt. She seemed interested and said she would “check it out.”

Coincidentally, I just saw a piece on CNNMoney.com about ten success stories of families who “cut bad plastic habits.” Here’s the link:

http://money.cnn.com/galleries/2008/pf/0806/gallery.sans_pla...

Have you noticed how HUGE the portions at many restaurants have gotten? Yesterday DH and I went to one of our favorite restaurants for dinner. We each ordered a drink and dinner, and as we seem to end up doing more and more lately, we took home half of it. This will be our dinner tonight. With drinks but no dessert, our tab came to $62 including a 15% tip. This is more than we usually like spend for a dinner out, but it was a special celebration since it was Father’s Day and DH had just returned after three weeks in Central America. I wish more restaurants would lower their prices in exchange for smaller portions. Not only would it help the budget, but would also help those without the willpower to stop eating when they are full. Thankfully, we have gotten better about this in the last few years. Sometimes it’s hard, though, especially if you are someone like me who was raised to “clean your plate.”

DH is back from Central America, where he spends three weeks every year with some of his graduate students. He is amazed at how in one year, the cost of living has skyrocketed. DH enjoys being immersed in the culture and likes to talk to the locals (DH and I are both fluent Spanish-speakers). The wages of the typical worker (hotel and restaurant workers, drivers, etc.) have remained the same. However, food, clothing, and many basic necessities (e.g., bus fares, taxis, and tuk-tuks) have increased in some cases by more than 20% from a year ago. The minimum wage is about $175 a month. In the bilingual school where DH and his students worked, local Spanish-speaking teachers are paid $250 a month; English-speaking teachers (typically from USA, New Zealand, or Australia) are paid $500 monthly, double the salary albeit still very low by our standards. In my opinion, it is unfair to have this double-standard but they cannot get native English speakers to work otherwise.


On a brighter note, here is a link to a good article from Money Magazine,
18 Ways to Beat Inflation:

http://money.cnn.com/galleries/2008/pf/0806/gallery.inflatio...

Well, my $20 Challenge is off to a slow start. Here is a recap of the past 5 days:

Balance Forward = $47.65

Drove Prius 3 days = $6.39

New Balance = $54.04

Another way to look at it is that even small steps toward a goal are important.

was completed yesterday. Now I just have to take a form to HR to sign off on the information about the number of sick leave days I have accrued. I learned I have enough days that it gives me an additional year of credit. This is good because since I am taking early retirement, my defined benefit amount will be reduced by 33% of what it would have been in three years. Still, it is WORTH IT considering the amount of stress I am leaving behind. I have seen too many people work longer just to hold out for a higher pension, only to die within a year of retiring. Last year, two of my coworkers died before even being able to retire. By saving and planning in the early years of my career, I now have more choices.

you could have gotten a discount if only the business had informed you of it? Yesterday I learned from a friend that the vet we both use gives a 10% discount for clients over 55. I called, and sure enough, they said they would apply it for all “future” services/meds. I did not feel like arguing with the young lady who works in the front office on Saturdays but I will definitely speak to MC’s vet next week to see if they can go back to April to apply the discount. Poor old MC has kidney failure and I have spent over $2,000 on him since April.

I think they should post information about a senior discount in a visible place in the office.. and trust me, it is NOT that I don’t look 55.


$20 Challenge
Balance forward: $41.65
NSD: $3
Did not drive: $3
New total: $47.65

I've wanted to participate in the $20 Challenge for a while, but was at a loss as how to structure it. I see that my SA blogmates have many different ways of doing their challenge. This is what makes it fun. I didn’t want my savings to be “hypothetical.” In my case, I want it represent actual realized savings that are not part of the regular monthly savings that I incorporate in my budget. So here is what I decided:

No drive day = $4 (from my $150 monthly gas budget)

No spend day = $3 (from my “$100 monthly allowance”)

Drive the Prius to work (20 mi. RT) = $2.13 per day @ $4.25 per gallon

Rebates

1099 Income (if I work PT after I retire)

Under budget in any category

My goal by December 31, 2008: $2,500.


Here is what I have so far:

$20 to start
$10.65 - drove Prius to work 5 days last week
$6 – 2 “no-spend days”
$5 – rebate check received yesterday
Total: $41.65

Well, I have a long road ahead of me but I am hopeful.

This morning, the local radio station I've listened to for the last 15 years, had a "contest" about tomorrow's date. If listeners could guess what was special about it, they would win a prize. I called in and said that tomorrow was special because it was: 06-07-08. That was it! I won a 30 day pass to a local spa, just in time to enjoy it in my retirement. I was asked how I figured it out and I said, "I've always been good with numbers." So, this was a small payoff for all those years of figuring out my budgets and studying my spreadsheets... it does exercise the mind.

I have three more paychecks before I retire: June, July, and a smaller one is August. Due to my retirement, I will not be able to contribute to my 457 or 403b after August, thus falling short of the maximum allowed contributions for the calendar year.

To remedy this, yesterday I arranged with the payroll department to deduct more from my last three paychecks so that I will meet the maximum allowances for the calendar year. This will result in much smaller paychecks but I will make up the shortfall by eliminating any deposits to my regular savings, and if need be, making withdrawals from my savings.

Most of my tax-sheltered accounts will earn interest until I am 70 ½ and then I will have to begin mandatory withdrawals. One investment is a Roth and another is a non-qualified annuity, and these can continue to earn interest without concern about mandatory withdrawals. One of my goals in retirement will be to monitor these accounts more closely to ensure I get the best interest rates available to me.

Today my HR department confirmed that when I retire in August, my employer will continue to pay for my health insurance (and that of my spouse) until I am 65. Then when Medicare kicks in, my employer will pay for a supplemental health insurance policy for the rest of my life. One of the reasons I am able to retire early is that I will not have to pay for health insurance premiums. At over $900 a month for our HMO, it would be a big drag on our budget. Only employees who are at least 55 and have worked a minimum of 15 years are eligible. I feel very blessed to have this benefit and wish it were available to all our employees. Currently, only certificated employees are eligible (teachers, administrators).

Yesterday the weather was delightful and I spent some time on my patio enjoying the sun, the birds at the feeder, and marveling at how quickly things grow when the weather cooperates.

Since my patio is small, my garden is a collection of containers. In addition to the plants that are solely for the enjoyment of their beauty, I also like to grow edible plants. So far, I have planted pots with:
~ four types of mint (for tea, garnishes, salads, and mojitos)
~ basil (for salads, marinades, and pesto)
~ oregano and thyme (for marinades, sauces, rubs)
~ Fresno peppers (grilling, stuffing, salsa)

These are fun and easy to grow and do not require lots of water. The herbs are much more economical than buying fresh bunches at the store. I just snip what I need for my recipe.

The basil is ready to begin harvesting. It will grow all summer long.



The mint and thyme are ready to use but we will have to wait until July for the peppers.


Just for the beauty...these are a couple of my favorites. Million bells are easy to grow and they resist bud worms. These are planted in a pot I brought back from a trip to Mexico.



This stag horn fern is happy to just hang on a piece of bark nailed to my fence.

By nature, I do not usually complain over trivial things. However, I will not hesitate to express my concerns over an injustice or something serious or dangerous. I am not a pushover by any means. This is NOT one of those times.

Yesterday afternoon DS, BIL, and I went to the movies. I insisted it be my treat since they had driven 45 minutes to come to my house. We got to the local theater early enough to get a cup of coffee before going in and getting three good seats. After a while the theater filled up and soon the previews started.

About five minutes into the featured movie, a little boy of about 4 who was seated behind us began to yell...very loud... every few minutes. Then he alternated with kicks to the back of our seats. His baby sibling also joined in from time to time with loud, fussy cries.

What AMAZED me is that the parents never tried to quiet their child. A woman sitting next to me kept mumbling under her breath about the x!@# kids and this was almost as annoying. Finally, I turned around and asked politely, “Excuse me sir, can you please keep your child quiet? We are trying to enjoy the movie.” The man just looked right through me, did not say a word, and said nothing to his child. He ignored all the people who kept glaring, especially after particularly loud shrieks. Not once did he attempt to quiet his child.

The movie was crowded and there were no other seats available or we would have moved. The flow of the movie was interrupted not only by this child, but by the obvious annoyance of those around us. Sadly, with the exception of my comment to the father, no one said or did a thing. We suffered in silence… well not in silence, but we suffered.

I don’t get it… why do parents of small children bring them to a movie that is not appropriate? Why are they so insensitive to the other patrons? When the movie ended, this family almost flew out of the theater. Maybe it was because they knew people around them were upset, but who knows?

On the way out, I looked for the manager, and finally found him. I asked him (calmly and politely) to provide me with an address because I wanted to lodge a complaint about our experience. He said his company’s policy was that they do not turn anyone away just because they have small children, even if the movie was clearly not G rated. He asked why I had not sought his help during the movie.

I explained that I had not because I didn’t want to miss any more of the movie than I already had, nor did I want to cause a commotion that would further impact the enjoyment of the patrons. I personally do not think people should be turned away just because they have children, but if those children are ruining the experience for the rest, then they should be asked to leave.

After explaining myself, the manager offered me three free tickets if I would forget the complaint. I was only too happy to take them because the reality is that my complaint would likely not change a thing. We will probably go back to see the movie again, but definitely not to a matinee.

Yesterday I analyzed my portfolio, which consists mostly of individual stocks and a few mutual funds. So far for 2008, I am seriously in the red:

January = down - $25,676
February = down - $7,764
March = up + $7,109
April = up + $11,674
May = up + $6,817

Calendar YTD = down - $7,840

I bought most of my stocks around 1996-2000 and then stopped when the market started going haywire. To date, I’ve never sold anything but know I should do some culling... if only I had more understanding and confidence about what to do and why.

Since January of ‘06, when I started keeping a spreadsheet I update on the last day of the month, my portfolio increased by 9.37% a year. I’m not sure how this compares to indices like the Dow or Nasdaq… all I know is that my portfolio’s produced a better return than anything I’ve gotten from a CD or money fund. To be honest, I do not review my statements from Schwab that are available online. I like to keep track using my own spreadsheet.

While the mutual funds have done OK overall, I have tech stocks that dropped significantly, have never recovered, and possibly never will. Some of these dropped as much as 50-60%, yet I hang on to them. I did get lucky with a couple of stocks bought solely because I liked/used their products or did business with the company (e.g., Apple and Walmart).

My plan is to educate myself more about intelligent investment strategies once I retire and actually have more time, but I’ll probably stick to mutual funds…and maybe I’ll even sell some of my dogs of the Dow. Can anyone recommend a good book/web site on mutual fund investing or portfolio management? I want to get more actively involved in managing my portfolio but don't want to obsess over it, either. There's got to be a better strategy than "ignore and check once a month."

This morning I heard on the radio that gas is expected to go to $5 a gallon in our area within a few weeks. Wow…for some reason, $5 just hit me. I wonder where it will stop? No doubt, it is just a matter of time before rising gas costs will have an impact food prices and other goods that have to be transported, as well as on the cost of travel. And yes, I really want to whine about it, but I won’t. It won’t change a thing. So, I will focus on what I can change and control.


We don’t have adequate public transportation where we live, so driving is a necessity. I will try to drive more efficiently and less frequently when possible. I figure I’ll be spending between $35-$40 more a month if gas goes to $5, so my challenge will be to see how I can creatively save elsewhere, something I want to do anyway. DH and I are still planning to take our road trip to Sedona this summer (with my DS and BIL), but we are taking one car instead of two. We will just pack lighter and make it work.

A friend sent me these links that have tips for saving gas:

www.howtoadvice.com/savinggas


www.howtoadvice.com/ReduceGasBills

The gas savings tips were interesting. Some of these I’d heard about before and some were new to me.

Note: I did not like the “Making Money” link on the sidebar of gas saving tips web page… seemed a little "scammy" to me. (Yeah, I couldn’t resist, so I clicked.)

DH is in Central America with a group of graduate students and has been keeping me updated via email. This morning, I was able to have a nice long chat with him via Skype. Even though DH is thousands of miles away, it was great to see him “in person.” (It sure is fun to have web cams on our computers!) So far, the trip has been uneventful, except for one student who exceeded the baggage weight limit, so she had to pay an extra $50 (ouch!) for her suitcase. DH says his 15 students are now fully immersed in teaching elementary students in the hosting bilingual school.

The posada (inn) where they are staying is Spartan, but clean and affordable. Most of the rooms cost about $25 per night, have a small private bathroom, but no phone or TV. It does, however, have wireless internet available free to all guests. DH’s group has access to a communal kitchen where they will prepare and share some meals together.

About Skype: With Skype, you can make free calls over the internet to other people on Skype for as long as you like, to wherever you like. It is free to download.

I’ve been using Skype to call relatives in England, Switzerland, and Central America for more than two years. My laptop always goes with me, so I use Skype to call the US when I travel out of the country. This is a great way to make free international calls. If the computers of both Skye users have web cams, you can see each other while you are speaking. Otherwise, you will just hear each other… and it sounds as if you are on “speaker phone.”

If you want to learn more, here is the link:

www.skype.com/getconnected

two years ago brought a lot of stress, the good, the bad, and the ugly. In anticipation of retirement, we sold our family home and moved into a smaller two-bedroom townhouse in the same city.

The good: it was a financially sound move because we cut our housing expenses in half. DH and I are a blended family… I have two daughters and he has a son and a daughter from previous marriages, all of them now grown and gone. We had bought the family home when we married (his children were still in school and mine were in college by then). Once the nest was empty, we wanted out of the expensive upkeep of a five-bedroom house with its large “high maintenance” back yard. Our timing was good because the house sold quickly, and currently homes are not selling at all in our area.

The bad: we had way too much stuff! Some people by nature can be packrats, but I could not believe what we had accumulated over the last 20+ years. I still had income tax returns from 1983 and cancelled checks from 1969! DD1 tipped us about using a professional shredding service (hospitals routinely use them), so for $5 per banker’s box, we safely got rid of obsolete financial and personal papers. Condensing 11 rooms into 5 smaller ones was a challenge. We gave away our extra furniture to friend who had just bought her first house in exchange for help with sorting and packing. We donated 25 boxes clothing and household items to Goodwill and our collection of children’s literature to the library. Although friends suggested a garage or yard sale, we simply did not have time because of the escrow deadline. A yard/garage sale would have been a moneymaker, though, and I would not hesitate to do it in the future.

The ugly: DH wanted to rent a moving van and move with the help of friends and family, but fearing for his back, I insisted on hiring professionals. The movers I found online, and who seemed very reputable, ended up charging us 50% more than the quote… they justified it by re-shrink wrapping all the furniture we had already prepared for moving. They charged an exorbitant amount for the materials and held our furniture hostage until we paid them. So, a move of less than 10-miles cost much more than it should have because I didn’t do my homework and didn’t ask the right questions. If we hadn’t already moved all the items we could transport by car, it would have cost even more.

Although I occasionally miss my roses (I had 50+ bushes that bloomed until November), my tiny patio is just the right size for me to easily maintain. MC, my 18-year- old kitty, formerly an indoor/outdoor cat, at first had some adjustment problems to an indoor-only life but he eventually settled in. We love living in our smaller, cozy townhouse that will give us the freedom to travel more in our retirement.


MC always finds the best seat in the house, er...patio.

are recognized as an important source of support and information in all aspects of spending and saving. This is according to an article, “Five Basics to Building a Solid Financial Future” that appeared in today’s New York Times online:

www.nytimes.com/2008/05/17/business/yourmoney/17money.html?p...

This is an interesting article that gives “food for thought…”

Each of us seeks to manage our finances in the best, most effective way that works for us. For some, like Ima Saver and Pennywise Meanderings, using cash and envelopes is a successful system for paying bills. For me, it is using a credit card. However, the key is that I use my CC to save money as I will discuss later, and I always pay it in full each month to avoid finance charges. My method requires discipline, both to carefully monitor expenses (I use Quicken) and to charge only what I will pay in full each month.

There was a time I had credit card debt… I was a single mom and emergencies happened that depleted my emergency fund (auto, medical, etc.). I paid as much as possible each month until I was debt free. About fifteen years ago, when DD1 moved out of state for college (and never moved back), I started using a credit card primarily to buy airline tickets to visit her. It was convenient to purchase the tickets with a CC (back then, it was over the phone and now, it’s online). Another “benefit” is that the CC company I use provides life-insurance in case of a plane crash (hey, you never know…).

Now, still debt-free (except for a small mortgage), I pay for EVERYTING I can with a credit card. Why? Because I like to use my reward miles (that never expire, BTW) to save money. For example:
~ DH and took a great vacation to France in 2004 with free tickets ($2,100 saved)
~ We are going to NYC this summer with free tickets ($1052 saved)
~ We visit DD1 and DD2 several times a year, and our airfare is usually purchased or reduced using reward miles. (Savings > $1,000 annually)

I use the CC to pay for routine expenses that I’d normally pay by check or ATM card:
~ Utility bills
~ Phone and Internet
~ Prescriptions and medical co-pays
~ Vet bills
~ Groceries
~ Gas/auto expenses
~ Entertainment/ meals out
~ Insurance
~ HOA Dues
~ Donations
~ Personal care (e.g., haircuts)

I also use the CC to pay for periodic expenses such as auto maintenance, gifts, clothing, carpet cleaning, vacations, etc. and large planned purchases (new refrigerator, new carpets, shutters, etc.). However, I always write a check if there is a fee involved for paying with a CC (e.g., property taxes). The miles add up quickly.

Another advantage: I save time and $$ on stamps, because I pay only one bill online. The money used to pay the CC stays in my interest-earning savings account until I make a transfer to my checking account to cover the payment. So, this is the system that works for me, but I recommend it only for those disciplined enough to pay the account in full each month to avoid finance charges and remain debt-free.

One of my friends forwarded this to me via email. It boggled my mind! What do you think?

The year is 1908.
One hundred years ago.
What a difference a century makes!
Here are some statistics for the Year 1908:
************ ********* ********* ******

The average life expectancy was 47 years.

Only 14 percent of the homes had a bathtub.

Only 8 percent of the homes had a telephone.

There were only 8,000 cars and only 144 miles of paved roads.

The maximum speed limit in most cities was 10 mph.

The tallest structure in the world was the EiffelTower

The average wage in 1908 was 22 cents per hour.

The average worker made between $200 and $400 per year .

A competent accountant could expect to earn $2000 per year, a dentist $2,500 per year, a veterinarian between $1,500 and $4,000 per year, and a mechanical engineer about $5,000 per year.

More than 95 percent of all births took place at HOME.

Ninety percent of all doctors had NO COLLEGE EDUCATION! Instead, they attended so-called medical schools, many of which were condemned in the press AND the government as 'substandard. '

Sugar cost four cents a pound.

Eggs were fourteen cents a dozen.

Coffee was fifteen cents a pound.

Most women only washed their hair once a month, and used borax or egg yolks for shampoo.

Canada passed a law that prohibited poor people from entering into their country for any reason.

Five leading causes of death were:
1. Pneumonia and influenza
2. Tuberculosis
3. Diarrhea
4. Heart disease
5. Stroke

The American flag had 45 stars.

The population of Las Vegas, Nevada, was only 30!!!!

Crossword puzzles, canned beer, and ice tea hadn't been invented yet.

There was no Mother's Day or Father's Day.

Two out of every 10 adults couldn't read or write. Only 6 percent of all Americans had graduated from high school.

Marijuana, heroin, and morphine were all available over the counter at the local corner drugstores. Back then pharmacists said, 'Heroin clears the complexion, gives buoyancy to the mind, regulates the stomach and bowels, and is, in fact, a perfect guardian of health.'( Shocking? DUH! )

Eighteen percent of households had at least one full-time servant or domestic help.

There were about 230 reported murders in the ENTIRE U.S.A.!

Now we can forward this from someone else without typing it, and send it on to others all over Canada & U.S., and possibly the world, in a matter of seconds!

Try to imagine what it may be like in another 100 years.
IT STAGGERS THE MIND!!!!!!!!!!!

It’s been a fun and relaxing Memorial Day weekend. On Saturday, I went to see a “chick-flick,” What Happens in Vegas, with two friends. It is definitely not a film my DH would have been eager to see. My friend, FE, is also an about-to-be retired school administrator, and KM has three more years to go. With our “over 55 senior discount,” we paid $6.50 to get in (regular price is $9.50). Afterwards, we went to a favorite restaurant for appetizers and a drink ($12 each). It was an inexpensive afternoon spent in the company of good friends.

On Sunday my one-and-only, wonderful sister and “best friend,” came over with her DH. They live 45 minutes away and we try to get together at least twice a month. DS and I went to the local nursery to buy plants for my patio planters. The nursery was having a Memorial Day sale, so I saved 20% on my plants.

When DS and I finished the planting project, I started up my Cobb BBQ for a healthy dinner of grilled tilapia with homemade mango salsa. Delicious! I love using my Cobb BBQ. It’s simple and inexpensive to use, all the parts go into the dishwasher for easy clean up, and it’s great for small spaces like my patio. The Cobb originated in South Africa, and I found mine online two years ago ($69). I use it all year long, even in winter (Note: it must be used outdoors!). I’ve become the gourmet BBQ chef in our family. Here is a link if you want to learn more about the Cobb:

www.cobbq.com

Monday will be a working day for me…I need to catch up on paperwork. Can’t wait to retire. Only 84 more days!

for the tips, validation, and things I’ve learned from you in just a few short months:
1) I’m not only one out there who picks up change, even a penny, whenever I spot it (thanks, baselle);
2) I’m intrigued enough to want to learn more about DRIP stock accounts (thanks again, baselle);
3) There are people out there who love their pets as much as I love mine, and will spend $ to keep them healthy even when the budget is tight (thanks, Carolina Bound);
4) Preparing to retire can be an adventure, involves planning and taking risks, but it’s worth it (thanks again, Carolina Bound);
5) In some families, one of you might be more adept at managing the finances but everyone benefits when you take the lead (thanks, CeeJay74);
6) I finally opened an ING account with one of the “free” $25 coupons I get in the mail all the time (thanks, Princess Perky);
7) I’ve joined “My Points” and have already earned enough to redeem some points to get free books from barnes&noble.com (thanks, Amber);
8) I’ll review and check out from the library some interesting-sounding books for summer reading (thanks, Retire @ 50);
9) Rebates can be very rewarding and I need get better at having my purchases work for me (thanks, Ima Saver);
10) I tried Marmite for the first time and learned a new recipe (thanks, Tightwad Kitty);
11) I will try saving money and eating healthier by creating weekly menus (thanks again, Tightwad Kitty);
12) As I read about the day-to-day lives and financial challenges of those in other countries, I feel connected by common themes (thanks, miclason from El Salvador and Tightwad Kitty from Australia).

These are just a few that come to mind…there are so many more of you not mentioned who make this forum one of the best.

Due to living where public transportation is limited, and having jobs that require driving to meetings within the workday, we are a two-car family. DH does the most driving, so he is the primary driver of the Prius. We've had it since 2003 and it has been a good investment. When we first bought this car, people made fun of us; now they envy us. DH is away for the next three weeks, so I will be driving the Prius. I should save about $100 in gas in the next three weeks.

Here is a link to a site that helps consumers identify the best gas prices by Zip Code:
www.gasbuddy.com