Have you ever taken one of the Kiplinger quizzes? These are interesting and very short (less than 5 minutes to take one). There are about 20 different quizzes on a variety of topics, most of them financial. Today I took two: “How Safe is Your Money?” and “How Far Can You Stretch Your Travel Dollar?” I did pretty well, although I didn't get perfect scores. It goes to show that for me, there is always something new to learn. Here’s the link in case anyone’s interested:

Yesterday, the books I ordered using MyPoints arrived:

1) Living More With Less by Doris Janzen Longacre
2) The Frugal Senior by Rich Gray
3) Your Money or Your Life (new edition) by Joe Dominguez and Vickie Robin

Once I read #1 and #2, I will offer my thoughts in a subsequent blog.

Of the three books, I had already read Your Money or Your Life about 10 years ago and really liked it. It was a library copy, but now I want to own a copy so that I can refer to it and also share it with certain family members that need to get a grip on their financial lives. After I re-read it I’ll first pass on my copy to DSD for her to read/reflect about her relationship with money.

The nine steps outlined by the authors provide compelling insights about the emotional impact of money in our lives. I especially like Step 9: Managing Your Finances. The section about the three pillars of financial independence (Capital, Cushion, and Cache) is very validating for me. This is a must read IMHO.

I read somewhere that couples most frequently argue about money, sex, and children. Well, I know from personal experience, and I’m sure some will agree, that money definitely can be a point of contention in a relationship. I have a confession… I am married to a man who is very relaxed about how he manages his finances, although he has tremendously improved in the 15 years we’ve been together. DH earns a good living, is always responsible for paying his debts, but fairly passive about saving and investing. Sometimes I think that if it were not for the fact that we have always kept our finances separate, we might have landed in divorce court by now.

When we married, my attorney recommended a pre-nup because I had more assets and needed to protect my sole and separate property for my daughters. Thus, I established my “Sole and Separate Property Trust” and DH and I established our “Community Property Trust.” These trusts articulate the disposition of assets that were mine before marriage and those we have accrued during our marriage. DH and I found we had to make compromises if we were to live (and love) in harmony… this is what works for us.

In the framework articulated in the Millionaire Mind, I am Balance Sheet Affluent (2.13) and DH is not (1.01). Thanks, scfr, for the formula: Age x .112 x Total Annual Realized Income = Expected Net Worth. If you are 2 times your expected net worth, you are "Balance Sheet Affluent." Throughout my life, my philosophy and values about money shaped and influenced my financial position today and the same is true for DH. We are an example of how seemingly financially incompatible couples CAN live in harmony if they understand how they are different and can communicate respectfully and openly about what must happen for the relationship to work.

One example of a “minor” difference between us: DH frequently indulges in buying books, LOTS of books. Granted, he is a professor, so some of the books he uses or refers to in his classes. However, he is an avid reader who will buy books to read for pleasure instead of checking them out from the library. He likes to collects books… as only a true bibliophile will do. When we downsized, DH donated boxes and boxes and boxes of books to a local library because we simply had no room for them in our small townhouse. He spends hundreds on books every year.

An example of a bigger difference: DH has no idea how much he earns, does not track his spending, and NEVER ever balances his checkbook. When he receives a CC bill, DH pays it immediately, even though his money could earn interest for a while longer. When he makes an ATM withdrawal, he checks the balance to get an idea of how much is in his account. DH hasn’t the faintest idea of his net worth. (BTW, I know DH’s net worth and will review it with him whenever he asks and sometimes even if he doesn’t). I, on the other hand, know exactly how much I make, how much I can tax shelter, and my net worth. I use Quicken and the Internet as tools to carefully track expenditures, deposits, investments, and savings.

It helps that each of us makes a good salary, so we are able to contribute equally to our household. (Actually since I make 28% more than DH, I do pay a greater proportionate share of taxes). Each month I give DH an accounting of his 50% share of the joint household expenses. I pay all the joint household bills and set aside funds in “reserve accounts” for expenses that arise periodically (e.g., property taxes, insurance, etc.). We each pay our own gas, personal care, work lunches, professional expenses, gifts to friends or family, donations, etc. DH is very happy to delegate the majority of the financial responsibilities to me.

While I think I positively influence DH many aspects of frugal living, it is still a “work in progress.” Now, he saves regularly through an auto savings plan and contributes the maximum to his retirement account. Perhaps the area where we have the major difference: the values our adult children have learned about money. My two daughters and DH’s son and daughter are diametric opposites in the financial department, but that’s a topic for a future post.

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:

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:

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

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.

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:

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!!!!!!!!!!!

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.