Good news and bad news

So the second lender gives verbal approval the other day and we're thinking it's a good sign. After all, that lender is going to get barely anything. If they thought the entire amount of both loans could be had, they wouldn't have approved. At least that was my thinking.

So last night my agent told me that the primary lender wanted ten grand more before submitting to closing. Said that the appraisals (aka BPO) were high and the lender felt they could get more in foreclosing. Unbelievable. While I love the house and would have considered the extra ten grand, we simply don't have it. We split the difference, initialed the contract and now get to wait some more. 

I suppose the good news is that we are taking the right approach. If we get it, we'll be excited. If we don't, we'll be disappointed but not devastated. We'll move on and start looking again. Who knows, maybe it's meant to fall through and there's something that's better awaiting us. Or maybe we just had to make sure that this is what we wanted by bumping up the bid a little.

I guess time will tell. 

And the waiting continues

So the home inspection is done (well worth the money, believe me) and the lawyers finally duked it out. And now all the paperwork is at the banks. This is where the annoying wait begins. 

It seems to me that our success on this bid will depend on one person whose desk this lands on. On whether it's the beginning of the day or the end of the day. On whether they're in a good mood or a bad mood. On whether it's Monday or Friday. On... well, you get the idea. 

But I feel we made a fair bid for the condition of the property (thanks to the home inspection revealing some issues we weren't aware of). So I think we've got a great chance of this succeeding. Now the question is just when.

In the meantime, prepping my home for sale and not looking forward to the market that awaits me.

Short sales, foreclosures, REOs, oh my!

House hunting used to be fun. Find that perfect house in that perfect location. You'd think with the amount of houses out there, the perfect one would be easy to find.

Find yes. Purchase... not so easy.

We found the perfect house for us. Good size, good location and good price. Problem is that it's a short sale. What does that mean? Well, over the past couple of weeks, I learned everything I could about short sales. 

The quick answer is that the homeowner can't afford to keep the house and the bank doesn't want to foreclose and risk losing a lot of money. So what happens is that the bank (or banks) agree to take less than is left on the loan in order to get it off the books.

Sounds good, right? It can be. 

I looked up the success rate of short sale bids and was distressed to find out that only about 15-20% off all bids make it to closing.

However, I think it's because there's a lot of time involved. First a bid needs to be made with about a 1% earnest money down payment. Then there's a 5-10 home inspection period. Then there is the attorney review (another two weeks). Then there is the mortgage approval stage (usually about 30 days allotted there). And then there's the wait. The wait is for the approval from the bank(s). This can take a long time. I've heard stories that people can wait up to six months for a response. And even then, it may not be the response you are looking for. The bank could approve, deny or counter your offer. 

Over the next several days, or weeks, I'll be updating the process we're going through. While I know that the wait will stink, I think it's worth it if it's for a house you want.

House hunting

My thriftiness has shifted to the real estate market. While I don't have to move or anything like that, I feel like I would be remiss to not at least explore the unfortunate downfall of the housing market. 

I just have to get past the guilty feeling. You know the one where I can benefit from someone else's misfortune? I realize that that's the way the economy works in a way, one person's gain is someone's loss, but I have that nagging guilt still.

But I have to tell you this: looking at purchasing real estate is an education in itself. The amount of information that is out there is truly daunting. And being the frugal consumer, I am avoiding a real estate agent. Of course, that's really not just the frugal part of me talking, that's also the person that walks into a store and sees the salesperson walking straight toward me and I turn around and walk back out. I like to browse in my own time, my own way. I don't want someone (other than my better half of course) jabbering in my ear asking me what I am looking for or what do I think of this or that.

This is going to be an adventure.

Costco rules! (second take)

So I'm at Jewel Food Stores the other day and I see on my list "Ground Cinnamon, 1 oz." Simple enough. So I pick it up for $2.15, which I think is a pretty hefty price for the small one when the three times as much one was $5.99 but apparently that wasn't necessary since I was sticking to the list.

Then, a couple of days later I find myself at Costco. Curiosity got the better of me when I went down the spice aisle. I found Ground Cinnamon, 10 oz... for $2.89. That is unbelievable. Further checking found my Grill Mates, Montreal Steak seasoning, 10 oz., for $5.99. That's the same price I paid at Jewel for 3 oz!

But while I rave about Costco for certain things, I have my complaints. That same day I saw the spice price, Friday (two days ago), I bought some strawberries. I didn't get a chance to get to eat them until today and they're already turning. I've had the same issue in the past with bananas there so I think that is where I need to draw the line. Fresh fruit is a great deal there, don't get me wrong. But if you're going to buy fresh fruit at Costco, make sure it's going to be eaten right away.

Sometimes, you just pay what you need to

I hate being sick. 

I'm sure nobody likes it, but I hate it for so many reasons. I don't like feeling like crap. I get behind in work and since I am the only one that is doing the work being self-employed, it just piles up until I get to it. I let things around the house pile up. And worst of all, I never seem to have the stuff I need already in the house.

I get sick about once a year, a nasty cold usually preceded by the flu. I know it happens sometime in the first three months of the year and yet I seem to always be short of something. This time it was juice and Cold-Ez (swear by zinc when it comes to a cold). 

And since I'm sick, I am not going to be scrounging around for a coupon, or going through the ads to find the best price... 

No, I am going to go to the closest store, even if it's a 7-11, and get what I need. At that point, it doesn't matter what it costs.

While that might sound odd to someone who doesn't believe in paying full price, my philosophy is that I can afford to "splurge" like this once in a while if I spend the rest of the time saving. 

That's my philosophy period, when it comes to saving money. If I didn't allow myself to "splurge" every so often, I would find it hard to continue to do so. It's the same with any type of regime you may find yourself in. You've got to let go once in a while or you could find yourself letting go of the whole regime.

Free money to use is still free money

So tax time is right around the corner and one of the bigger grocery chains has put together a deal that gives you up to 10% more spending power. 

SUPERVALU, whose stores include Acme, Albertsons, bigg’s, Cub Foods, Farm Fresh, Hornbacher’s, Jewel-Osco and Shaw’s/Star Market, is putting a bonus amount on grocery gift card purchases. 

Fine print: By purchasing a grocery gift card during this promotion, you can get up to 10% more money on your card. Customers who purchase grocery gift cards in either $250 or $300 increments will get another $20 or $30 added to the card, respectively. The limit is $1,250 per household. There is no need to bring in a tax form or refund check. Simply visit the service counter to purchase your grocery gift card with bonus.

Bonus amounts cannot be used for the purchase of alcohol, fuel, tobacco, lottery tickets, dairy products, prescription drugs or additional gift cards.

This is a great deal in my opinion. They ran a similar deal when the tax rebate checks were doled out last year. I took advantage of $300 but soon realized that I should have done more. I ran out within three months. Jewel-Osco is my closest and therefore most convenient store. 

I'm not sure I can afford to put up $1250 but I think $600 is doable. That's a $60 bonus to spend at a store I go to anyway. And the money never expires. It's as good as cash with no fees attached to it.

If they want to give me free money to shop in their store, I'll take it. It's more money in my pocket.

Pre-paid debit cards

In theory, I think they sound great. "As good as cash," "protecting your money," "use almost everywhere"... 

But no one is really upfront about the fees associated with such cards.

Now they're popping up everywhere. Even rebates are starting to come on prepaid debit cards. I tend to use them all at once to avoid potential fees that I know are lurking in the fine print. But when I get a $100 one, that's a tough all in one use there. 

And now, in reading an article on cnn.com, Another twist for the unemployed: Debit card fees, it's becoming a real issue in my opinion. The agency makes it sound good, get your money now in a debit card or wait 10 days to get a check. The desperate are going to go with the former of course. Some people are already desperate enough and these fees are not helping the situation.

Maybe I'll never understand

How some people can complain about how they're not saving money, that they're in debt up to their ears and yet they continue to dine out, buy big screen televisions and new computers. One person told me they bought the TV "because it was a steal of a price." I asked how he paid for it and he told me he put it on his credit card since it already had a balance.

What?!?!

So that means that the $750 television (plus tax and shipping of course), started gaining interest the moment he swiped the card. At an average rate of 14%, I'd venture to say that the steal of a price he thought he was getting won't end up that way. 

Credit cards are a wonderful tool if used correctly. Pay it off each month. If you can't, and there will be times you can't, then pay it off as soon as you can and try to avoid charging on it. If you carry a balance, however small, each new charge begins to accrue interest. And with credit card companies jacking up those rates, those charges will add up quickly.

Costco rules!

Okay, maybe not "rules," but it's certainly a great place to shop. 

If I'm lucky, I get out the door spending $100 or less but that's a rare occurrence. I try to go more often just so I can avoid hitting the 100 buck mark. Of course, that doesn't really matter since it all adds up the same at the end of the billing cycle.

Let me say one thing though... I am not the person you seeing rolling a cart out of Costco loaded with the 18-pack of paper towels, the 50-rolls of toilet paper and the oversize cans of tuna. I'm a little more particular about what I buy and don't buy.

For instance, my partner goes through Miracle Whip like nobody's business ("you can't have too much on a sandwich") and we'll easily go through a couple of 32 oz. jars in three months time. Costco sells the huge (like 100 oz. huge) buckets for the same cost as three 32 oz. jars. But there's no way we could go through that much before expiration. So it ultimately makes sense to buy it at the store when it's on sale. 

Then again, I like Starbucks coffee to drink at home. Buying it at Starbucks, or even a grocery store will cost about $13 per pound. I can get that at Costco for $20 per a 2.5 pound bag. A no-brainer.

Things I buy there regularly: Cheddar cheese, butter, sour cream, shampoo, croissants (they have an awesome bakery), bottled beer, wine, bottled water...

Things I don't buy that I can get a better deal on sale at the store: soda, paper towels, eggs, chips, pizza, lunch meat...

Costco is a great store to buy a lot of things but not to do your everyday shopping at. There are specific items I like to get there and there are some I notice when I am there. But the down side is that sometimes you find a great product and/or a great deal and then they don't carry it after their supplies run out. It's happened a few too many times for me. But all in all it's worth the membership fee hands down.

Found my way to get my fix

I couldn't justify Starbucks, it's hard to. But sometimes you just have to treat yourself. It's always been my philosophy to not become obsessive with saving money to the point you couldn't enjoy it. I tend to look at Starbucks as my indulgence. At about $5 a hit, it seemed less of an issue than buying a bottle of wine at a restaurant. 

But I still didn't want to make it "feel" like I was spending that money. Sure I could reload a card in a $50 shot but finally figured out the best way to give me my fix.

I constantly collect change. I don't know why, I just do. And it adds up. I want to take it to the bank and deposit it, but most banks charge a processing fee, even if you have an account there. So I let the change sit and grow. But now that Coinstar allows you to turn your cash into a gift card (in my case, Starbucks) with no processing fees, that was the way to go. So I dumped a bunch of change into a paper bag and off I went. Just a dent in my collection netted me a $53.23 Starbucks card. Should keep me going for a while.

Coinstar is great. If you're looking to get cash, it's not the way to go. They charge a 8.9% processing fee, much greater than any bank. But gift cards/certificates have no processing fees and there are some good options. The ones by me are amazon.com, Starbucks, JCPenney, and iTunes. You can check out their website for locations near you.

Just a little thrill...

...from saving money. I can't help it.

Went out this afternoon to buy toothpaste, something we all (hopefully all) use. Walgreens had it for $3.29 with a $3.50 register receipt back to use on my next purchase. I'll take that. Use the $3.50 toward rebate items and call it good.

Well, couldn't leave it at that.

Went to another Walgreens, they're on every street corner by me, and bought another. Hey, it's like free money. Can't beat it.

And it gives me a little thrill.

Paper, paper, everywhere paper

I remember years ago when someone predicted that with the advent of the Internet, paper would become obsolete. I wish my desk and the boxes of credit card statements, bank statements, utility bills, etc. would have gotten that message.

So, in the past few weeks I have gone about de-papering my life. 

I found this little desktop scanner that I have totally fallen in love with: ScanSnap by Fujitsu. This little scanner doesn't take up a lot of room and it's amazing. You load in several pieces of paper and hit the scan button and pretty quickly you have a PDF on your computer. It even comes with the Adobe Acrobat software, a $300 value in itself.

So for several weeks I have scanned in my life and reduced it to one single CD data disc. I've now moved on to scanning in all those recipes I've printed out or written out over the years. Truth be told I should have just gotten one of those recipe software organization programs but the thought of actually entering in all that information... scanning is just so much easier.

My favorite part? It's the easy search on the computer for the "piece of paper" I was looking for and not having to sift through piles in order to find it.

Check out the ScanSnap or other products like it (I've heard that NeatReceipts is a pretty good alternative) and go paperless. It's a very freeing feeling.

Finding a way to get my fix

So this past holiday season, I saw and took advantage of Costco's Starbucks gift cards. Great deal, 5 $20 gift cards for $79.99. That's a nice 20% off of a luxury I indulged in from time to time. Problem is, I didn't know it was a holiday promotion. So when I went back to get some more, there were none. Bummer.

That was two weeks ago. In the meantime, I have discouraged myself from going to Starbucks and spending the $4.87 for my "fix." It's not like I didn't do it before I was able to snag the 20% discounted cards, it's just that once you have that discount, it's hard to go back to paying full price.

The good news here is that I'm actually saving more money by not getting the discount. Instead of paying the 4 bucks on a discount, I'm not going and ultimately saving in the long run.

It was my father's philosophy when I was growing up all over again. My mother would come home, happy to show off something she got at 40% off and my dad would say, "what about the 60% you paid?" Such a simple philosophy but there's a lot to it.

Going forward, I know I'll want to get my Starbucks (assuming I'm still employed and can afford it), so I am trying to think of ways to cushion the cost.

Wish they offered coupons :-)

Who would've thunk it...?

Cheap is in.

Yes, you read it right, being cheap is the new fad. Personally, I prefer frugal since it sounds better but hey, who am I to judge? I love to be frugal. I love to save money on things I normally buy, save money on things I normally use and save money on things I splurge on. Who's to say it can't be a splurge even if it's cheap?

I read an article today on cnn.com, In a recession, cheap is chic. It's interesting how people are reacting to the recession. No longer wearing your income on your sleeve, no longer spending like there's no limit on your credit cards, no longer keeping up with the Joneses (heck, they're probably broke too)...

Times have changed. For the better? Maybe in some ways. This economic time might wake people up and start them living within their means. But then again, the long term effect may change everything. Inflation is a distinct possibility after a recession. Clawing our way out of debt is always a long term obstacle. Only time will tell.

Been away so long

Yelled at by my sister for not updating my blog, I have resolved to do so. 

I suppose the good news is that I have been so busy with work since I am still actively employed is a decent excuse. But as I have discovered in the past... it's not how much money you make, it's how you spend it. So my resolution this year, starting a wee bit late on 3/3/09, is to go back to the basics of savings. Employed or not, this economy sucks and each dollar saved is a dollar back in my pocket to use for other necessities.

In the past several months, I have streamlined my phone/cable/internet into one bill, totally less than $150/month. Separated, they were running me $69/$78/$49 for a total of $196. That's over $500/yr. Plus, losing DirecTV and its subscription plans (MLB Extra Innings and NFL Sunday Direct) saved another $500/year.

We also combined our cell phones into a family plan. Didn't really save much but it did finally put us on the same service so we can do mobile to mobile for free.