Around mid-December we leave for a two-week trip to El Salvador, the country of my birth. I have not been there for two years, so naturally I am excited about seeing my family. We will be celebrating my aunt and uncle's 50th wedding anniversary... a milestone nowadays and definitely one in our family where people either die or get divorced before reaching their 50th. Whenever we visit, DH and I are given the VIP treatment... everyone is kind and thoughtful and we always have a great time.

We will be there for Christmas, so I wanted to bring gifts, even if it is something small. My aunt, age 80, is my mother's younger sister and she has five children, and they are all married and have children of their own... so we are talking about a lot of relatives. Some I do not know well, others I am close to. Altogether, I needed to buy gifts for 26 people including a baby due in May. Packing all of this will be interesting to say the least.

I called this my "shopping challenge" because in keeping with import regulations, I had a $500 limit. Moreover, I rarely see some of these relatives so I don't know sizes, likes and so on. My challenge was completed well before Black Friday. A definite benefit of being retired is that I can go shopping in the middle of the day and not fight the crowds. And did I ever score some great bargains! So far, I've spent $319.94 for items that retail for $712.48. This takes care of 21 of the 26 relatives.

The only item I paid full price for was a beautiful, 8.4-inch digital frame that will be a gift for my aunt and uncle ($99 @ Costco.com). We will take photos of the family and the celebration and get everything set up for them while we are there. Everything else was bought on sale or with a discount of some kind. For the baby-to-be (gender unknown): Carter's blankets/bibs and a 7-inch Kodak digital frame for the parents (@ 50% discount). We spent more on them because they are generously housing us during our stay. For my aunt's five children, I bought five beautiful photo frames (5 X 7) and inserted recent photos of their children. This and some type of candy will be a "couple's gift."

Knowing these are favorites, I bought Sees chocolates, Jelly Bellys, and salt-water taffy. One cousin is getting a bottle of organic Napa Valley virgin olive oil to compare to that of his homeland (Milan, Italy). Three female cousins from a different branch of the family are getting a blouse, top, or Liz Claiborne PJs (I knew their size), and an XO wallet and handbag for a teenage cousin. Oh, and the ladies from the "Italian branch" of the family will also get some imported Italian soaps.

I gave up on the five teenage boys who will end up getting money (a new $20 bill). I just don't know sizes or what teenage boys like for that matter, so I saved myself a lot of stress and decided to just go with $$. The American dollar is the official currency of El Salvador, so this will have to do... money in a card. We'll also give some $$ to my aunt and uncle, hoping they'll use it toward a trip to the USA in 2009... or something special like that. And I know it will be OK because the invitation specifies "regalo de sobre" which is like the "money tree" people sometimes have at celebrations here in the US.

My favorite stores for bargains: Ross and TJ Maxx, hands down. You can't beat their deep discounts on name-brand items, but you do have to look around as sometimes these stores can get picked over. But this doesn't stop me... I am a patient shopper. Costco and Best Buy had good deals on high-quality digital frames. All in all, I am pleased that my "shopping challenge" was a success and that I stayed under budget. Now, I better go see about that packing...

December is a spendy month for many people, and it certainly is for us because it's the month property taxes are due. I generally pay our property taxes in early December, so today I wrote checks totaling a very tidy sum. This will take care of the first half of the property taxes. The second installments are due in April (CA) and June (ID).

I systematically save for property taxes since becoming my own impound manager a few years ago. (We carry a small mortgage on our CA home, otherwise this information would not be relevant.) There was a time the mortgage company managed the impounds (aka escrow account) but one day I realized that they usually take more then they need, and furthermore, they are earning interest on MY money. To manage the process, I created my own "impound reserve account" and deposit a prorated amount each month (it's an interest-earning savings). The prorated sum is the annual charge for taxes and insurance divided by 12. When it's time to pay the bills, I transfer funds to my checking account.

This strategy works for me because I'm disciplined enough to leave the funds untouched except for their intended purpose. I've known others who tried this method with disastrous results... they treated the impound account as an "emergency fund" rather than as encumbered money. If the money's not there when you need it, what's the point? Just let the lender manage it for you and be guaranteed its availability. Of course, you "pay" the lender for the service by letting them use your money for free.

The best part about taking control yourself: the interest this money earns for you adds up over time. For example, if you pay $6,000 a year in taxes (not unusual in CA), and make prorated deposits of $500 invested @ 2% compounded monthly, you will earn ~ $55. Keep in mind that the full $6,000 has not been in the account the entire year.

One caveat: stay on top of due dates because an inadvertent late payment will result in a fine, wiping out any earnings. This happened to me once when I was distracted by a particularly pressing issue at work, and I simply forgot. And what a dear price I paid for my oversight. So now I program due dates into my e-calendar to ensure a timely reminder.

Another point: if your mortgage includes PMI (mortgage insurance) because you have less than 20% equity, taking over your impound/escrow account is not an option.

Over the years, I have practiced what I call my Rules of Thumb (ROT). These are self-imposed "rules" I use to make my life easier or better. For example, ROT #1 helps me keep our small home clutter-free, especially after the massive purging of the

Great Downsize of '06. Following this ROT makes me think twice before acquiring more "stuff" I can do without (read: clutter, junk, dust collectors, gewgaws, useless objects...). I will share other ROTs later, but here is #1:

ROT #1: For any article of clothing or household item I purchase I must select a similar one I already own to give away.

How does this ROT help me? Well, to start with, I have an abundance of nice clothes, most of which are left over from my working days. And, because I take care of my belongings, these can last a very long time. They still fit and I wear them according to the seasons (sweaters, coats, jackets, shoes, blouses).

But sometimes I spot a good bargain and I begin to think I like it better than something I already have, or maybe some favorite piece actually gets worn out, or a household item gets broken. And, then there's the weight-gain situation. If I gain just a few pounds, some of my favorites don't look so good anymore. So, I might want to buy something new.

But, my ROT requires me to select a similar item (two is even better) to donate, give away, or throw away, depending on the circumstance. This insures I still have room in my closet to actually walk-in, and helps me keep impulse buying in check. It's not always easy to apply this ROT, so sometimes I have to work at it.

My "internal conversation" might go something like this:

Me: Ohhh, look at that cute little fleece jacket...and it's 50% off. I love the color!

Frugal alter ego: Yes, very nice. So, what jacket will you give away?

Me: Hmmm, I want to keep my down jacket, it was expensive and I wear it in the snow. My microfiber jacket is warm and water-repellant... gotta keep that one. I love my red fleece jacket that DS gave me... and the black fleece has zip-pockets I use for my keys when I go walking, so I don't want to give away that one... and...

Frugal alter ego: Well then, you really don't need ANOTHER cute little jacket, after all, do you?!

Anyway, you get the idea.

Today I spoke to two of my cousins in different parts of the world... DC1 is a first cousin who lives in El Salvador. She is my age and like another sister to me. We had a nice chat to catch up on family news. Before I knew it, 45 minutes had elapsed. In San Salvador there is a two-hour difference from CA time, so we usually find each other at home on a weekend afternoon. I can't wait to see her in a few weeks when we travel to ES.

A few minutes after speaking to DC1, her brother, my DC2, called me from Geneva, where he has lived for the last 25 years. He and I had a nice long chat, too. It was 11:45 p.m. in Geneva and snowing very hard. I love updates on how DC2's children are doing in college. What a very talented group they are. It is impressive that my DC2's three children are fluent in English (their mother is American), French (the language of Geneva), German (the other prominent language in Switzerland), and Spanish (my cousin's first language). He is also multilingual, like most of the Swiss.

Did I mention that both of my calls were free? This is why I love using

Skype. Not only are we able to communicate for free, we get to see each other on our computer's videocam.

I came across this interesting

article on Market Watch over my morning coffee... very timely just before the "Black Friday" kickoff to holiday spending.

I was surprised at how much the "average" person spends on holiday shopping. The article, "Recession-proof your finances," offers some good tips for saving money. How much do you plan to spend on your holiday shopping and are you doing anything differently this year?

When I retired, I vowed I would never go to Costco on a Saturday again... it's just too busy and hectic, at least in our city. DH and I always go together but today he was out of town on business, so I decided to go on my own to beat the holiday crowd. I thought this might also result in saving money since we tend to spend more when he's along.

Well, even though I went early, Costco was as busy and crowed as a weekend day... I guess I didn't beat the holiday shoppers after all. I ended up spending $192 after using $10 worth of coupons. It sure doesn't seem as if I saved any less than when DH goes with me. The good news is I won't have to go back for at least a month and I stocked up on:
* organic cereal (2 boxes)
* Propel (2 cases)
* pesto sauce
* ravioli ~ double pack, for 2 dinners and leftovers (coupon item)
* water-packed tuna (12 - for casseroles and sandwiches)
* Pam spray (coupon item)
* Pepper Jack cheese
* Splenda (coupon item)
* fresh asparagus, green beans, romaine, mushrooms, peppers
* 2 bottles BV cabernet
* fresh tilapia (enough for 6 dinners)
* fresh lean pork chops (enough for 6 dinners)
* 3#s raw almonds
* baked pita chips (coupon item)

Some items will last well beyond a month (e.g., tuna, Pam, Splenda, Propel). I'm getting better at sticking to my list, using the coupons, and shopping with menus in mind (I have more than two weeks of dinners if you count the tuna casseroles). I will augment from the freezer and the pantry, so I don't have to buy meat but will go to Lucky's for fresh produce and bread. I also filled up for only $1.99 a gallon, lower than I've paid in a very long while.

Everyone I know, myself included, is doing the happy dance over the falling gas prices. Here in northern CA we are paying ~ $2.15 a gallon, down from the high of at least double that just a few months ago. This is a good thing, right?

Well, not necessarily. This morning I read an article on CNN.com about the

negative impact of falling consumer prices. WT heck??? Yesterday we were worried about inflation and today it's deflation. Consumers are happy, but economists are not. Go figure.

My $20 Challenge goal was to save $2,500 extra by December 31st. Although I am retired, my part-time income has been greater than I expected, something for which I am grateful. Since my last update on October 18, here is my progress:

Balance Forward = $1124.84

Gas Reimbursement - $124.12
November Part-time work income - $673.28
November 1099 Income - $739.12
NSDs (12) and NDDs (10) - $76

New Balance = $2737.36

This morning I was reading an article about a

strategy to prevent impulse buying and I reflected on some of my worst impulse buys over the years. At the top of the list is the $325 Hermes scarf I bought at the airport in Paris, minutes before departing for the US.

I am a scarf lover. Those who know me are used to frequently seeing me in a scarf, almost daily when I worked. Scarves are one of my favorite accessories. But a $325 scarf? It was a stupid, impulsive buy. I made the mistake of going into the duty-free shop and was immediately seduced by this exquisitely crafted scarf. The reality is I can buy a great scarf for less than $50 and wearing a $325 scarf would not make me look any better. And, obviously, it was impossible to return this scarf.

The truly sad thing is that my Hermes scarf has never left its pretty box... I have never ONCE worn it. In the back of my mind, maybe I am thinking I might sell it on eBay, but in the meantime it sits in the cedar chest. What probably will happen when I die is that my DDs will donate it to the Goodwill and some smart and lucky frugal person will buy this great scarf for 50 cents. Hmmm, well, maybe I will wear it one of these days, after all.

It's a small consolation that my impulse buys haven't prevented me from meeting my financial obligations, but I can think of much better ways to spend $325. Had I followed the strategy in the article, I would not have made the purchase. Live and learn.

Yesterday I stocked up on staples and sale items at Lucky's (formerly Albertson's) and spent $99.42. It was reduced to $90.42 after I used $9 of "Lucky's Bucks." The best part is that I got a FREE 14.5 lb. turkey because I spent $99. It was a surprise.

The clerk asked me if I wanted a "turkey breast or a whole turkey." I said, "Oh, that's OK, I don't need anything else." He looked at me as if I had two heads. "Madam, there are no strings attached... you are entitled to a free turkey because you spent $99!" I asked for a whole turkey and he went and brought me back one that was 14.5 pounds @ $1.19 per pound.

We are going to have Thanksgiving with my DS and BIL, and they always cook a HUGE turkey (Birdzilla), so I may end up donating this turkey to the food bank, but it was great to get it free.

Yesterday we invited my DS and BIL to the football game for the team of the university where DH works. The dean had given DH four VIP tickets that gave us access to the pregame social event that included music, food, wine and beer... all free, including the parking that would normally be $20. Plus, we had great seats on the 50-yard line in the VIP section.

Well, our team got shut out, and to make matters worse, in the 4th quarter the sky suddenly opened up and we had a monsoon-like downpour. It was not supposed to rain, but wary of the dark clouds, I had gone prepared with my raincoat and boots. DS had a short rain jacket, but DH and BIL quickly got soaked. When the rain started, the home crowd jumped and dispersed as if they'd been sprayed by a fire hose. All but the diehards started to leave. With only 7 minutes left and the bleak score (21-0), we decided to head home, too.

Once back home, I turned on the gas fireplace because DH and BIL were cold and wet, and DS's pants were wet from the thighs down, and she said she was "freezing." So, we are officially out of the "no-heat" contest. We still saved a lot by participating in it though (thanks for motivating us Fern), and it was fun. We will continue to monitor our use and try to be more frugal than we were last year. The forced air heater has yet to come on, but no doubt it will happen soon with the weather getting colder each day

As I mentioned in an earlier post, I am saving money on groceries by creating menus and shopping from a list. Here are my dinner menus for the coming week. I calculated that I am spending about $5.26 a day for two people:

Sunday: Baked whole rosemary-stuffed chicken, brown rice, Cesar salad, whole wheat French bread

Monday: Chicken curry (from leftovers) over brown rice, tossed green salad, whole wheat French bread

Tuesday: Mushroom penne, steamed asparagus, whole wheat French bread

Wednesday: Grilled tilapia with tequila-lime seasoning, quinoa cooked in vegetable bouillon, tomato/basil/baby cucumber salad

Thursday: Vegetable stir-fry with chicken (leftover) served over brown rice

Friday: Tomato and red pepper soup, leftover mushroom penne pasta, tossed green salad (we're going to a play, so we needed a quick dinner...)

Saturday: Marinated pork chops, quinoa, broccoli sauteed with mushrooms and garlic

For dessert: fresh fruit in season; sometimes we might include a slice of provolone or smoked gouda.


Cost of dinners for the week ~ $36.83 (not including wine):
Whole chicken, 4.75# (from freezer) - 4.70
1# penne pasta - .99
Tilapia (from freezer) - 2.73
Pork chops (from freezer) - 2.99
Fresh vegetables (broccoli, zucchini, asparagus, celery, romaine lettuce, mushrooms, cucumbers, tomatoes) - 12.87
Whole-wheat Artisan French bread - 2.98
Tomato/roasted red pepper soup - Free (gift from DS)
3.25#s Papaya - 3.87
2# Gala apples - 1.96
Uncle Ben's Instant Brown Rice (2/5.00) - 1.75 used
Quinoa (Trader Joe's) - 1.99

Had:
Spices
Fresh herbs (from patio planter)
Lime juice for papaya
Wine of the week: 2003 Scarbolo Merlot 11.99 (not counted in daily meal cost)

We still have not had to turn on the heat, but the month has been unseasonably warm. However, we have had a few cold days but I have resisted turning on the heat. Yesterday I received our PG&E gas/electric bill and was pleasantly surprised:

October (30 days in cycle): 14.90 kWh/day and 0.33 Therms/day
$69.54

September (31 days in cycle): 22.68 kWh/day and 0.35 Therms/day
$130.09

I did learn the power company will no longer allow customers to pay with a CC, so I won't be able to get my miles as I normally do. I will set up this account on auto-pay, though, which will still make paying very convenient.

In my part of the world, October's weather so far has been rather mild: not hot enough for the AC, yet cooler, but not enough to HAVE TO turn on the heat. Thanks to Fern (Wild Blue Yonder) and the "No Heat Contest," I am being far more conscious about the just turning on the thermostat to get comfortable. Now I just go for a sweater or a comforter instead.

No wonder my palm's been itching! I'm finally on a roll with my $20 Challenge. In the past month I have received $35 in rebates (for a new shredder and a flash drive), $739 in 1099 income for 10 hours of consulting, $30 for an insurance overpayment, and $6.85 for recycling our plastic and aluminum. Since August 27, when I last added to the challenge, I have had 11 NSDs ($3 each) and 8 NDDs ($4 each) so that is another $65 to add. I am also adding the free $25 (plus interest) I received for opening my ING account back in January. From now on, I will deposit all challenge $$ into ING which is going to be dedicated to my $20 Challenge funds.

Balance Forward = $222.43

Rebates - $35
1099 Income - $739.12
Recycling $$ - $6.85
NSDs (11) and NDDs (8) - $65
Insurance premium overpayment - $30
ING Balance - $26.44

New Balance = $1124.84

My goal by December 31, 2008: $2,500. I think I might actually make it!

Today I calculated that since retiring in late August, my grocery bill is averaging between $100 and $115 a week, not including household items such as paper towels, soap, etc. It also does not include dining out. Before I retired, our average grocery bill was at around $575-600 a month plus we spent about $200 dining out. While I am definitely spending less than when I worked, I don't know if my spending is high, average, or low for two people.

What have I done differently that has resulted in savings? To start with, in September, I took an inventory of the pantry and freezer. Unfortunately, I had to throw out a few expired cans and some items in the freezer that were freezer burned. I used some food before it expired, so this was a savings, but then I replaced them and stocked up on staples.

Another money saver is that I now make weekly menus. The impact? We are not only saving money, we are also eating healthier. I am buying more fresh vegetables and fruits and have reduced our consumption of red meat. At least once a week, I try to make a hearty soup and this provides leftovers for lunch, too. It helps that I like to cook and have fun creating menus, using some items already in my pantry.

My shopping trips are now far more efficient than when I worked. I go to the store less frequently and I always take a list. So far, I am keeping Costco runs to about once a month and trips to the grocery store to about every 10 days. When I worked, I'd hit the store on the way home and buy things I already had at home (but didn't know it). I also frequently shopped when I was hungry or tired... not a good idea.

When I worked, we ate out about 3 times a week, mostly because I was too tired to cook at the end of a hectic day. It was about convenience. Now we might dine out once a week, if that. Since I have time to cook, and I enjoy it, I am only too happy to do so. Lately, it seems dining out is mostly brunch or lunch on weekends, either before or after we go to the movies or some other activity.

My next challenge is to learn how to get better at using coupons to save money, much like Retire@50 does. I definitely can improve in this area, and I think I can still reduce our grocery bill some. But I am very happy with my savings so far. I am curious... what do you spend on groceries and for how many people?

On February 17, 2009, most TV stations in the US will stop broadcasting on analog airwaves in favor of

digital. Today I applied for a $40 coupon
toward a converter box for our analog TV at our Idaho house, where we use only a set of "rabbit ears" to get reception. It is not worth it for us to pay for cable or satellite since we are there only a week or two every couple of months, and we do not want to buy a new TV. Fortunately, in CA, our TV is newer and digital so we are OK.

I am surprised at how many people say they are buying a new digital TV. This includes people I know are having financial issues as well as some who already use cable or satellite. It doesn't make sense to me unless the TV genuinely needs replacing. How are you dealing with the transition and if you have installed a converter box, is it an easy process?

Well, I'm back in CA and it is a beautiful, clear autumn day although it was raining yesterday when I arrived. But, I still have not had to turn on the heat!

Now that I am retired, I have time to begin my Christmas shopping earlier than usual. This year, we will be in El Salvador for Christmas, so I have additional family members to shop for and I have decided to begin with this challenging group. I say challenging because, although these are all my first cousins and their families, I really do not know some of them well. The exception is one cousin with whom I am very close and my aunt and uncle who are celebrating their 50th wedding anniversary.

After an hour of searching super-clearance racks at three major department stores at the mall, I spent $20.62, saving $143.68 from the original retail price. Here is what I bought:

- Ladies black short-sleeved blazer, linen-cotton blend... lined and machine washable (original price $49)
- Red blouse, short-sleeve, classic style... polyester micro-fiber that feels like silk (original price $38)
- 2 short-sleeve, classic v-neck tee-shirts, one black and one white in 100% pima cotton (original price $22 each)
- Henley-style short sleeve, woven top, 100% cotton in dusty rose (original price $24)

My perseverance paid off! I got 70% off of the clearance prices at one store and 40% off at another. All items were already drastically reduced, so it seems the retailers are really pushing to clear their summer inventory. The items I bought are good quality, from well-known manufacturers (e.g., Liz & Co., Joneswear, Alfred Dunner), and machine-washable. I like to buy timeless, classic styles in basic colors. The tee shirts are size 4-6, so they will be gifts for some petite family members and the black blazer was on my cousin's "wish list" so I know she will love it. And, since El Salvador is in the tropics, the summer-type fashions are perfect.

Now, I only have 18 more people to shop for, and I have to stay within the baggage limit (the suitcase with gifts must weigh less than 50#s total). I have budgeted $500 (not including DA and DU) and so far, I am well under budget. I will be looking for small, light-weight, good-quality, practical gifts. Any ideas for gifts that have to be packed and carted to another country?

Wall Street gave us a roller coaster ride we won't soon forget and now my bank (WAMU) is faltering! Where will it end... or is this just the beginning of the end? Don't answer that... I really don't want to think about things getting worse right now, especially since I just broke down and checked my stocks, even though I'm trying to get into the habit of checking just once or twice a month (vs. my previous obsession of checking daily). Here's a recap of my battered stock portfolio:

Monday, September 15th - Down 3.72%
Tuesday, September 16th - Up 2.95%
Wednesday, September 17th - Down 4.67%
Thursday, September 18th - Up 3.73%
Friday, September 19th - Up 3.42%

Surprisingly, this week my portfolio fared better than expected considering the havoc in the market. But the bigger picture is bleaker: I'm down 6.1% for the month (from the previous month) and down 14.3% for the year. I'm not too alarmed (yet), but it's definitely disappointing for someone like me who just retired. Well, at least I'm not depending on this money to live on right now, but it sure would be nice for it to be there when I'm 85. I made the decision not to buy long-term care insurance because I thought I had enough assets and we also have good health insurance but I may have to rethink this.

In other money matters, I've been super-busy and this is a good thing because it kept my mind off the stock market. Here's how I've saved money this week:

1) Called my TV satellite company to complain about the high cost of their service. To me keep me as a happy customer, they gave me a credit of $10 a month for a year, gave me the high definition channels free for a year (another $10). I canceled HBO that we rarely watch and saved another $14. Total monthly savings: $34

2) Called the phone company about my landline because I wasn't happy with my rate plan. They reduced my plan to the rate they offer new customers. Monthly savings: $20 and no change to services.

3) Saved $3,000+ by buying airline tickets with miles for a family celebration we're going to in December. See yesterday's post for details.

4) Took an inventory of the pantry and freezer and stocked upon staples to last at least 3-4 months. Spent $192.58 but saved $39.73 by shopping carefully. I stocked up on chicken, ground turkey, pork roast (to be frozen), canned tuna, pasta, marinara sauce, coffee, green tea, 16#s assorted dry beans (red, black, lentils, garbanzos, green peas, and pinto), EV olive oil, salad dressing, canned tomatoes, popcorn, canned corn, cream of mushroom soup (I use it in various recipes), and a large bottle my favorite sake (yes, it's a staple!).

5) Bought a Brita "smart" water pitcher for filtering tap water to use for drinking. (We need to reduce our copious bottled water consumption and be more "green" consumers.) Used a $10 off coupon at BBB and will send for a $4 rebate on the extra filters. Final cost $45 for the large size plus filters for a year. We will also save about $30 a month by not buying as much bottled water. My DD uses a Brita pitcher and they have well water. She says it does a great job filtering.

6) Took a free online defensive driving class sponsored by my employer (my PT job). Not only will my auto insurance company reduce the annual premium by $40, but now I'm also eligible to get reimbursed for my mileage by my employer.

7) I was able to find a solid tenant for the rental that will be available on October 1. Since I leased the house without using a property manager, the monthly savings will be $119.50. I also raised the rent by $45 a month because I was told the previous rent was way under market (I've kept it the same for five years because I had really great tenants). Finding a tenant for this house is a huge load off my mind... a vacancy can suck a reserve account dry in no time.

On top of all this, I worked six hours on on Monday and spent Wednesday in beautiful Monterey at a workshop. My room was paid for, we had excellent meals, and the presenters did a decent job... not the best but better than some I've suffered through. Now, I'm ready to relax for a while. After all, I AM retired!

Yesterday afternoon I took care of September transfers and bills. The way I manage our monthly finances might seem odd to some people, but it works for me. The interesting thing is that I didn’t write a single check and the entire process online took about 30 minutes. September’s budget total is $12,152 and includes:

Payments Scheduled:
• CC1 payment ($4882.27) due 9/10
• CC2 payment ($1266.15) due 9/12

CC1 and CC2 are paid in full each month.
CC1 was higher than usual due to a homeowner’s insurance payment for the ID house and my new laptop.
CC2 included gas and expenses for our Sedona road trip in late July and all groceries.


Transfers Scheduled:
• $500 to CA Household Reserve account
• $500 to ID Household Reserve account
• $100 to Rental Reserve account
• $1,500 to regular savings (cache fund)
• $1,000 to Schwab Account (investment)

The reserve accounts collect funds to be used for periodic expenses as they come up (e.g., taxes, insurance, etc.). Not included here is DH's contribution to his 403b since it is $$ deducted by his employer and I do not have to manage the payments. (I am no longer able to contribute to my 403b/457 since I have retired.)


Other:
Mortgage payment for CA home, water bill, Direct TV, and HOA fees are on auto payment, so I don’t have to schedule payments but these expenses are part of the monthly budget of $12,152 spent. Utilities for the ID house are on auto payment and are taken from the ID Household Reserve account.


Also scheduled but not payable until October:
• utility bill payment for CA house ($99.57) on CC1;
• phone bill payment (Internet, cell, and land-line = $244.08) on CC1 and it includes DH’s iPhone charges.


Extra Deposits to Checking Account to offset expenses:
From household reserve account:
• $543 for HO insurance
• $114 for timeshare dues

From my savings account:
• $2491 for my new laptop

Whew! That's a lot of money to move around… but I love the ease of managing everything online and using the CCs to earn miles. Best of all, the mortgage for the CA house is our only debt.

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.

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.

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.

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!

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.

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.