Financially Free

I hate exercise! Always have, although when I was younger I loved to ice skate and bike ride. These seemed more like fun and not so much like a chore… I guess what bothers me about machines is the monotony, but I know that I have to do something to improve my health. Reducing stress is only the beginning. I need to lose at least 20 pounds to get my BMI back under 25. And, DH is seriously talking about a trip to Machu Picchu in the next year or two, so unless I build up stamina, he’ll be hiking the Inca trail alone. Although I enjoy walks around our complex, this doesn’t provide the strength training and aerobic exercise that will help me develop my lung capacity and a stronger heart.

DH goes to the gym about 5 days a week for an hour and he loves it. I, on the other hand, hate anything that makes me feel sweaty. I’ve belonged to Curves twice before but for me it was a waste of money. It always seemed that I was too tired, too busy, or the place was closed when I finally mustered up the energy or had the time to go. And, I am simply not disciplined enough to exercise at home in front of the TV, although I have plenty of exercise tapes. The only one who uses the Ab Lounger that DH bought me last year is TC… it’s her new favorite place to take her catnaps.

DH’s gym is having a special… $49 to join and $10 a month for a year. Maybe I will give it a try. Now that I’m retired I will have more time, so I can’t use that as an excuse any more. The gym is about 5 minutes from the house so it’s definitely convenient… and it opens early and closes late, so there goes another excuse. My goal: to go at least 3 times a week and stay for 30 minutes (and exercise the whole time, of course). Doable, definitely affordable, and the facility is very clean and well-equipped. Does anyone @SA have tips for making going to the gym bearable/fun/exciting/successful?

DH is always trying to get me motivated.

In 1992, a friend gave me a bottle of Marilyn Merlot, vintage 1988. I decided this wine would be worthy of consuming only for a very special occasion, like celebrating my retirement. Through the years, and through two moves, I stored it carefully, always monitoring the temperature. Then, one day in May of 2007, I drank it and for no special reason. Why?

A close friend had died the month before, suddenly and unexpectedly at age 55 while on vacation. He and I had talked frequently about retirement and all things we would do and the fun we would have when the day finally arrived. For my DF, that day never came, and his death made me take stock of my life and acknowledge how uncertain our future can be no matter how well we plan.

So, I finally opened that bottle of 1988 Marilyn Merlot and toasted my DF. The wine was exquisite... it exceeded my expectations. Over the course of a week, I finished the bottle. (DH was in Central America or I would have shared it with him.) Later, wanting more of this great vintage, I decided to buy another bottle to share with DH. To my utter amazement, when I got on the Marilyn Merlot website, I saw that a bottle of

1988 Marilyn Merlot sells for $2,000! I was astounded and my first thought was... I would never have opened it if I had known it was that expensive. (Gee, I could have sold it on eBay!!)

Then, I reflected about how easy it is to put off living in the moment and enjoying the simple things in our lives, waiting for some vague "special time" that may never materialize. Now, if someone gives me a nice bottle of wine "for a special occasion," I enjoy it sooner than later... just because. No more waiting... Carpe diem! Make your own special moments every day. BTW, I never did buy another bottle of the 1988 vintage, but when I retired, a friend gave me a bottle of 2004 Marilyn Merlot... and it's gone.

My favorite local radio station asks listeners a “call-in” question every morning. Today it was: “Where do you hide your money?” One caller said he had hidden $1,000 in a DVD to surprise his wife for a Disney trip… but she sold the DVD at their garage sale before he could surprise her! Another fellow called and identified himself as a “senior citizen.” He said he hides money in different places and for a variety of reasons… only problem is he can’t REMEMBER where. What was the most he’d ever hidden? He said it was $2,000 he’d stashed in a shoe for a home remodeling project.

The DJ nicely said, “Hey, it doesn’t just happen to senior citizens!” Well, at 58, I do not think I’ll call myself a senior citizen for at least 15-20 years (unless I can get an “over 55” discount somewhere for it), but I can sure identify with stashing money so safely I never find it again. The other day I found $60 in an old wallet I took out to put in the Goodwill box. I got the same rush as I did last summer when I won $7 on the penny slots in Vegas. Yeah!

Actually, I mostly use the bank for keeping my money, so when I “find” money, it is more about having forgotten it was there to begin with. One thing I have done for the last 20 + years: I keep a $100 bill folded behind my driver’s license in my wallet. This is my DIRE and IMMEDIATE emergency money. I’ve had to break it out only three or four times over the years… and it gets replaced if I use it.

Each time I’ve had to use it, I’ve been somewhere that takes only cash but I didn’t pay attention until it was too late. Out of the blue, my pedicure place stopped taking CCs and had just placed a tiny sign by the cash register. Another time, DH and I had taken my DSS to a Basque restaurant for his birthday and while we sat enjoying our meal, I spotted a sign on the door that said “Cash Only.” The restaurant was out in the boon-docks, with no ATM or bank open. The look of horror on DH’s face told me he only had his usual $40-80 on him. It was great to say, “Don’t worry, I have some cash.”

Well, I will add the $60 I found to my $20 Challenge:

Balance Forward = $155.43

8/25
NSD = $3
NDD = $4

Forgotten but Found $$ = $60

New Balance = $222.43

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

A friend from work called me tonight to see how I was doing. “How are you enjoying your retirement?” she asked. “Well, so far, I’ve been very busy,” I said. She wanted me to know that school opened as planned and all went fairly well, almost as well “as if you’d been here!” Well, surprise! The world didn’t end because I left. One thing I know and have known for quite a while: we are all replaceable and life goes on, as it should. But my life goes on, too, and it is evolving, and growing, and getting better.

My friend said, “We all miss you so much!! It’s just not the same!” “Oh, I miss you guys, too!” I say to be polite. The truth: I didn’t miss being there AT ALL, although this does not mean I don’t care about the people I worked with. I do care, but there is so much I do not miss and will not miss. Yet, I cannot say this without hurting feelings, so I am careful with my words.

I will not tell her that on Monday, the opening day of school, I woke up at 7:15 a.m., a time I normally would have been at school. I made a delicious pot of coffee and leisurely enjoyed it on the patio while I read. The morning air was clean and crisp, the birds at the feeder were flittering and chirping, and I reveled in the moment…. not having to be anywhere or do anything until I decide differently.

Last week DH and I were watching TV and an ad came on for the circus that was going to be in town for four days. DH asked me if I’d ever been to one. I commented that yes, I had taken my DDs to the circus several times when they were younger. Since I was certain I detected yearning in his voice when DH said he’d never been, I immediately went online and bought tickets for the Sunday matinee.

So, this afternoon, we went to The Greatest Show on Earth. We were surrounded by thousands of children, parents, and grandparents, all of them having great fun. The one thing I realize though, is how very expensive it is for parents to do this type if activity with their kids. We paid $35 each for our tickets, $10 for parking, and $3.50 for popcorn. (It would have been more but I took water from home because it kills me to pay $3.75 for a small bottle of water).

For parents, like the ones with three kids in front of us, it was much pricier: in addition to tickets and parking, I saw them shell out $12 for cotton candy, $15 for snow cones in an elephant cup, $22 for light wands, $15 for a program. Ouch! Glad I didn’t have to buy any of this stuff for my kid (DH).

The program was spectacular, especially the trapeze artists and the acrobats. The only thing that bothered me in a way I can’t really explain was to see the elephants, tigers, and horses performing. It seems unnatural, but the animals looked beautifully cared for and definitely not in any kind of distress. I guess this is just what a circus is about. The best part is that my 62 year old DH finally got to go to the circus and we had a blast.

Yesterday was my first official day of retirement and it feels a little weird to not have a million problems to solve, meetings to attend, and tasks to complete… but it was a great day. In the morning, I spent two hours at a local spa, getting pampered. One great massage and deluxe pedicure later, I met DH for a romantic lunch at an Italian restaurant that we love. The best part is that I used gift cards that were given to me as retirement gifts, so I did not spend any money.

Today, I am looking forward to having lunch with a friend whom I’ve not been able to see for a while. She’s been asking to take me to lunch or dinner in honor of my retirement. Well, now that my “retirement” is finally here, I think the best part is that I have choices. I’ve heard said that change is hard, especially if like me, one is retiring from a position of great responsibility (I was the administrator at a large urban school with over 800 students and 75 employees).

For me the key will be to continue to be productive and to have a purpose greater than just “playing” all day long, although I do have to get better at playing, too. For so many years, my job took prominence in my life until I realized I did not have balance and my health was affected. All work, no play. So, in retirement I will strive to enjoy a life with more balance, a life that is simple but at the same time, rewarding. Next week I will begin to research volunteer opportunities.

To help me “transition” to retirement, and to give me the opportunity to continue working in my field, I have accepted a part-time job working at the local university (same one where DH works). My job will require working about 1 day a week, and on certain weeks, it will be about 1 ½ days if I have a meeting or training to attend. My PT job begins Thursday, but I am looking forward to it. I began my career in education as a teacher, and now I am back to being a teacher… a role that gives me great satisfaction.

Today DH and I went to a class offered by the public employee's retirement system he belongs to. It was very informative. One good thing we learned was that he can increase his pension by buying service time for the two years he served in the military during the Vietnam War. We are looking into how much it would cost and then we'll determine if it is financially sound to buy this extra service credit. We also found out that his employer will pay for our health benefits after he retires. This is a great benefit considering the high cost of health care today. DH is thinking about retiring at the end of the academic year in 2009 or 2010.

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:

http://www.kiplinger.com/quiz/archives.html

After a trip to the local Farmer’s Market yesterday, I used the following fresh ingredients to make a stir-fry for dinner: crushed garlic, chopped zucchini (three kinds), thinly sliced red peppers and California peppers, sliced mushrooms, and a small amount of cabbage. For protein, I added a skinless chicken breast, cut into bite-size pieces, and flavored the stir-fry with a salt-free spice mix and a pinch of red pepper flakes. I like to use EV olive oil when I stir-fry, and I served it with instant brown rice.

It was yummy and very pretty, too! The cost was approx. $1.29 per serving (6 servings), including the rice. Oh, and we had leftovers.

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Tonight, we will have fresh corn, green salad, and grilled wild salmon. DH loves salmon, but I only buy it if it’s wild because I do not eat farmed salmon. The salmon was $12.18 and will be enough for two dinners (4 servings), so tonight’s dinner will cost under $4 per serving (everything included). Still, not too expensive, and very healthy.

Since I am retiring later this month, yesterday I bought a new laptop for my personal use. The laptop I’ve been using for the last two years is very nice but it belongs to my employer and I will be returning it. My employer gives all administrators a new laptop about every three years and mine has gotten very heavy use. I knew the replacement laptop would have to be a Mac because it has been my preferred platform since 1986. The downside is that Macs tend to be pricier than many PCs, but my computer is one of my most important tools I use and I wanted one I know how to use well.

My new laptop is the same model as my old one… a MacBook Pro. It has an Intel Core 2 Duo Processor (it’s fast!!), and more memory than the old one (2 GB RAM and a HD w/ 200 GB). I can really tell the difference in how quickly it processes. The best deal I found was at the bookstore of DH’s university. They gave us an educator’s discount ($250 off the price), a free iPod Touch ($299), a free printer ($185), and 3 years of Apple Care for $183 (regular $349). I also bought the right to use MS Office for $25, so I am all set.

I had budgeted $2500 for the new laptop and came in well under... and I also now have a free printer and iPod. The iPod is going to be given to my DSS and the printer will be donated to my previous school as we do not need another one.

On another note, I am accepting a part-time job working for the university one day a week, just enough to keep me out of trouble. My job will be to supervise student teachers and I am delighted that I’ll stay connected to my field (education). The position is temporary, for the fall semester and possibly the spring. As long as DH continues to teach, it means we will have the same calendar so we will be able to coordinate all our days off.

Because of family commitments and out-of-town visitors since last Thursday, I had not paid my August bills until this morning. I love the ease of using my computer while enjoying a good cup of coffee. I did the following online in less than 30 minutes:

~ scheduled utility bill payment ($83.42) on CC1, next cycle
~ scheduled phone bill payment (Internet, cell, and land-line, $183.45) on CC1, next cycle
~ paid CC1 ($2459.11) due 8/10
~ paid CC2 ($2286.57) due 8/12
~ paid auto license renewal for my car ($258) due 8/20
~ purchased two air fare tickets for March ’09 San Antonio trip ($20, using partner miles)
~ transferred $500 to Household Reserve account
~ transferred $100 to Rental Reserve account
~ transferred $500 to ID Household Reserve account
~ transferred $50 to ING
~ transferred $1,100 to regular savings

Both CC1 and CC2 are always paid in full each month, but were higher than usual.
CC1 had a large auto insurance payment on it, and also the last of the vet bills for MC, who passed away in late June and was cremated. I also had purchased gifts for several events (a graduation, 2 birthdays).

Extra expenses on CC2 included gas for a 1400 miles road trip to ID, and NYC vacation expenses. This is also the CC I use for groceries.

The reserve accounts collect funds to be used for period expenses as they come up (e.g., taxes, insurance, etc.).

The mortgage payment, water bill, Direct TV, and HOA fees are on auto payment, so I don’t have to schedule payments for them.

It is great to be able to do most of my household business online. The only check I write on a regular monthly basis is the one for the house cleaner who comes twice a month. At $150, it is my favorite splurge and worth it because I am very allergic to dust.

This afternoon, we went to see The Mummy... it was just OK; I liked the first two better. Well, now I guess I'll go catch up on the laundry.

We have returned from a great week in Arizona, via two nights in Las Vegas. Our home base was Sedona, where we stayed in a beautiful, one-bedroom suite with an amazing view, a fully stocked kitchen, and a large bathroom with a huge tiled shower and a Jacuzzi tub. My DS and BIL traveled with us, and they slept on the sofa sleeper in the living room. We shared expenses for gas and food. The four of us agreed to sit through a 90-minute timeshare presentation in exchange for $200 worth of gift certificates that we used at local restaurants. The timeshare presentation was low-key and of course, we declined to purchase.

DH and I already own two timeshares that we’ve had for years. Some people feel that timeshares are not a good investment, but for us, they work because I have learned to leverage them to our best advantage. However, it does take time to plan in advance. We bought our timeshares at a very low price and the maintenance fees are reasonable. Our suite in Sedona would rent for $499 a night if we had not paid with points. I have calculated that we pay under $100 per night, including reservation fees and annual maintenance fees. Not bad for being able to stay in such luxurious accommodations.

Here is the view from our suite in Sedona.


We took a day trip to the Grand Canyon because my DS and BIL had never been there. Typical of those who see it for the first time, they were awe-struck by the beautiful expanse of the canyon. As you look out onto the canyon, it does seem as if the sky and the canyon are actually painted on a backdrop. It is so exquisite.



It normally costs $25 to get into the Grand Canyon, but since DH is 62, we were able to buy a $10 lifetime senior pass to all the national parks. What a great deal!

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.

Yesterday was finally a NSD! We went to see Journey to the Center of the Earth, but we used gift cards and drove the Prius. I am also adding the $80 we saved from our vacation budget.

Balance Forward = $72.43

NSD = $3

Under budget vacation = $80

New Balance = $155.43

We are back from a week in NYC and what a great week it was. For the first five nights we stayed at a very nice hotel that connected to Grand Central Terminal, so it was very convenient to get anywhere in Manhattan. For the last two nights, we stayed in a “boutique” hotel with tiny rooms in the Murray Hill area on the east side. Manhattan is alive with an energy that resonates day and night. Although NYC is very expensive, it is an exciting, fast-paced city that has much to offer.

NYC attracts tourists from around the world, and we heard many different languages everywhere we went. New Yorkers were very friendly and I noticed that people walk everywhere…something very healthy. It also seemed that a lot of people smoke…not so healthy… but it could have been that some of these were visitors, although some were obviously New Yorkers. Since we have family in Manhattan, we had reliable information on good places to eat and interesting things to do.

The subway and buses were convenient, inexpensive, and almost always crowded. On a few occasions, we used taxis and we thought these were inexpensive compared to those in our home city. We packed in a lot of activities in one week and these are some of my favorites:
~ The Metropolitan Museum of Art
~ The Guggenheim Museum
~ The Museum of Modern Art
~ The Museum of Natural History
~ A two-hour cruise on the Hudson and East Rivers
~ The Empire State Building (we paid $15 extra to go to 102nd floor)
~ The Statue of Liberty and Ellis Island
~ Central Park (Zoo, Lake, Boat House, free Philharmonic concert)
~ Grand Central Terminal
~ Rockefeller Plaza
~ Times Square at night
~ The hot pastrami sandwiches from Katz’s Deli on Houston
~ Cannoli from Veniero's in the East Village

Food and drink can be VERY expensive in NYC. For example, one glass of Cabernet and a beer cost us over $25 at the bar in our first hotel… we did that only once. However, we came in $80 under budget, not great but it still was under budget.

We saved money by buying:
~ a City Pass that paid for all the museums and the cruise, saving a bundle ($74 PP; thanks, scfr, for the tip)
~ Metro cards for the subway and buses
~ breakfast and lunch at small delis and groceries
~ our drinking water at Rite Aid or Whole Foods instead of the street vendors (59¢ vs. $3 per bottle)
~ salads from the Whole Foods salad bar for our picnic in Central Park
~ decent CA wine for $9 a bottle at a wine shop and enjoying in our hotel room
~ walking to places that were within 10-20 blocks

We also saved money by not shopping… DH and I just enjoyed the sites and being with our family. My DS, BIL, their children and grandchildren, my DD1, and several of our friends were with us, so we had even more fun.

Our $150 a day budget included:
~ City Passes/extra tour fees
~ Two lunches and three dinners at more “upscale” restaurants (expensive)
~ Breakfast, lunch, fruit, coffee, snacks at small places like the Metro Café
~ Meals at airport
~ Metro cards and taxis
~ Shuttles to and from the airport
~ Tips
~ One souvenir for me (a $25 scarf from the Met Museum)
~ Buying items forgotten @ hotel (e.g., sunscreen)

Our airfare was free with miles, the five days at first hotel were paid with points, and the two nights at second hotel were prepaid in March.

All in all, it was a great trip and I look forward to going back some day soon. Here is a view from the Empire State Building.


Central Park is lovely, safe, and well-cared for.


Here is one reason why mass transit is so popular. It can be very costly to park your car in NYC.

We are back in CA after a relaxing week in Idaho. Since today was a workday for me, we were pressed to get home yesterday. The drive took much longer than usual due to horrendous traffic conditions that can be attributed to normal holiday traffic plus slowdowns due to the wild fires. The air was very thick with smoke and the traffic bumper-to-bumper for miles on end.

On the way home, we stopped for breakfast at a busy café and while we waited in line to pay our tab, I observed something that I am seeing more and more and it concerns me. The computer was down, so the young cashier had to count out the change on her own. Normally, the computerized cash register tells the cashier exactly how much change to give. It was sad to see how complicated this process turned out to be for the cashier (about age 18-20). After several attempts, the young woman gave back too much change to the woman ahead of us. The woman then said, “You gave me too much change,” and very patiently demonstrated to the cashier how to count back change from the $50 bill she had paid with. Years ago, I remember teaching my 6th graders how to count change and now it seems that we are relying on the computer to do it for us.

10 things that helped me to decide about retiring:

1) I listened to my doctor who said stress was ruining my health;
2) I took a class offered by my retirement system to help me understand all options;
3) I learned by reading and researching information on all aspects of retirement (financial, emotional, health care, etc.);
4) I calculated my defined benefit pension amount plus income from other sources (TSA, 457, IRAs);
5) I developed a realistic retirement budget that includes saving at least 15%;
6) I "practiced" living on my retirement budget for six months, using my lower pension amount instead of my monthly pay;
7) I made a list of monthly "retirement enjoyment" activities and their cost (factored into #5) and estimated the cost of annual travel since this will be an important activity;
8) I got input from my family (encouragement), my accountant (tax consequences), and my financial planner (analysis of investments);
9) I talked to as many retired people as I could about life after retirement (the majority said they have no regrets);
10) I made a list of the "pros" and "cons" of retiring, and, the "pros" won by a huge margin.

While I won't be officially retired until late August, I look forward to retirement as a stage in my life where I have more time, less stress, and better health. After 30 years of working in education, I still feel the need to continue teaching and learning. So, I will definitely keep learning by participating in experiences such as those offered by Elderhostel or by taking or teaching classes. It will be interesting to see how I feel about retirement a year from now.

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 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.