Rent Or Sell: The Decision

Posted on February 13, 2008 by Melissa
Filed Under Housing, Rental Property | 9 Comments

I guess you can’t BUY respect I apologize for not writing about our decision on whether to sell or lease out our old home earlier than today. I didn’t realize I left you all in the dark until this week! Shame on me.

The house has been on the market since January 26th. After careful consideration, we decided to put the home up for lease. Here’s why:

We will be able to rent it for more than our mortgage payment, including insurance, taxes, and fees. That means we will be able to pull in a small profit every month while still building up equity in the home. An extra $200 a month could really come in handy.

By keeping it as a rental property we can deduct the cost of repairs from our taxes. That alone will save us a good amount of money. We can also deduct the management company fees and the depreciation of the home. This means we can reduce our overall taxable income while still earning a slight profit every month.

The area is very likely to appreciate in value in the next few years. While the home used to be on the edge of town it is now considered a prime location. In the next year there are plans for more shopping centers, entertainment venues, and restaurants to be built within a mile of the home. The location is also perfect for accessing all the major highways (some newly built) in the area.

We like the idea of having our funds diversified. By owning a property we have our wealth diversified into multiple areas and not all in stocks or bonds. If we need to tap the money we have the option to get a home equity loan or we could always sell it in the future. Even though this form of investment isn’t exactly liquid we do have options just in case.

We didn’t need the equity to buy a new home or pay off debt. In my original plan, selling the old home would have provided the funds we would need if we went into debt from the move and carrying two mortgages. So far, we have avoided going into debt and we still have enough funds to carry the home for several more months. I’m a little bummed that we can’t build a screened sunroom yet (the money would have come from the sale) but I can wait. It will be a good savings goal for me to set for this year.

We might not have been able to get the price we wanted if we sold. Although our realtor felt we could get our target selling price, we felt a little uneasy because many of the recent home sales were at lower figures. Our area has not been affected by dropping property values yet but the credit crunch is everywhere. We would still need to be competitively priced despite the fresh paint and upgrades.

We also decided to go with the management company we mentioned. It will cost us $50 a month but we feel it will be worth it not to have to deal with the everyday stresses of being a landlord. We have received several applications on the property but so far none have panned out. I’ll write about those experiences soon.

Hopefully this decision will turn out to be the right one!

Image Source: mulad

Not Good Enough For Goodwill?

Posted on February 8, 2008 by Melissa
Filed Under Charity, Household | 28 Comments

A sea of thrifty clothing I’ve been donating a lot of stuff to Goodwill and have discovered they can be pretty picky sometimes.

A few years ago, we brought a U-Haul worth of old furniture (Eric’s old stuff) to Goodwill and the manager came out to sort through it. She took most of the things but the biggest items (two large black couches) got rejected because they had some white cat hair on them.

We laughed about it for days, saying that our couches were so lousy that even Goodwill didn’t want them. I hadn’t considered that something as simple as cat hair would disqualify them from being donated. Unfortunately, those poor hairy (but still useable) couches ended up at the curb on trash day. We figured if Goodwill didn’t want them that no one would.

After another unexpected rejection I started to wonder why these perfectly useable things weren’t good enough. By talking to my friend who used to work at Goodwill, I learned that many people, including myself, have misconceptions about what Goodwill really does. I assumed Goodwill resold donated items at very low prices to help people who need to make their paycheck really stretch. That isn’t their true mission, though.

Goodwill sells the donated items to help raise revenue so they can offer employment opportunities and workforce training. Their focus is on getting people back into the workforce, not necessarily providing low cost goods to lower income families.

If you’ve ever been in a Goodwill store you may have noticed that the prices weren’t at rock bottom levels. The prices are a little higher than what you might think a thrift store would have. My friend said it seemed that middle class shoppers looking for good deals were their primary customers instead of low income families like you might expect.

So, now it makes sense. Goodwill doesn’t want everything you have to donate; only the items that they can resell at decent prices without additional work. The items need to be in good sellable condition when you drop them off. That way they can get the highest price for that item and raise the most funds for their employment programs. I think the work they do is wonderful and now that I know what they are looking for I’ll make sure to screen my donations more carefully.

OK, now I know why Goodwill deemed my hairy couches unworthy but I hate having to throw out useable items I no longer want because they aren’t in top condition. For example, two perfectly good but scratched up end tables or a stained coffee machine. They may be ugly, but they are still functional and could help out someone in need.

They don’t belong in the trash just because I no longer need them and they aren’t in sellable condition. I’m sure that there are plenty of people that would be willing to take in a scratched end table. Maybe someone who doesn’t have the money to spend on end tables might have the time to refinish them. I need to find a way to reach those people.

Wouldn’t it be nice if there was a place where even slightly damaged (but fully functional) things could be given to people who need them? I’m sure there are lots of families that could have benefited from having those black couches, even if they had some cat hair on them.

My friend suggested that next time, before trashing the rejected items, I try contacting other organizations that could use them, like:

Homeless shelters

Women’s shelters

Rehabilitation centers

Thrift stores

Furniture can be especially helpful in shelters where they provide transitional housing for people getting back on their feet. My friend mentioned that she donated several pieces to our local shelter that provides temporary housing for abused women. What a wonderful way to give that old furniture a second life.

If donation isn’t an option there is always freecycle. Someone is bound to want your extra stuff and this way it doesn’t hit the landfill before it is completely used up. Everybody wins!

What do you do with the things you want to donate or give away but don’t have the time to fix up? Please share your ideas!

Image Source: get directly down

Embarrassed By Your Accomplishments?

Posted on February 1, 2008 by Melissa
Filed Under Housing, Psychology, Relationships | 9 Comments

THAT’S your new house?? I find myself in a strange dilemma these days. I often get asked how I like the new house and to tell them all about it. I consider getting the new home to be a huge accomplishment for us. It took effort, sacrifice, and hard work to manage to “move up”.

But with many significant accomplishments – like getting a nice home, a hefty promotion at work, or an upscale item – you have to figure out how to handle it gracefully with others.

How do you remain humble about your accomplishments without others thinking you are dissatisfied, embarrassed, or even rude?

Here are two scenarios I have encountered recently:

Does she even like the house?

I’m a humble person by nature. I just don’t want to “toot my own horn” around others. When people ask me about the house I usually reply that I really like it and that it works well for us. Recently, some friends thought my lack of exuberance on the subject meant that I must be unhappy with it for some reason. They asked Eric if I even liked the home. They couldn’t have been more wrong.

I absolutely love my new home. It’s perfect. I simply feel uncomfortable gushing on and on about how awesome my new house is to other people. I feel like its bragging.

I suppose they were looking forward to me telling them all about my house and were disappointed when I spoke in general terms and not of specifics. If someone asks me questions about the home (how big is it, what kind of countertops, etc) I’m happy to answer them but I’m not inclined to spend a lot of time talking about all the upgrades without being prompted. It feels like showing off to me.

Nobody likes that guy at the party who talks about how cool his brand new yacht is and how it has the best of everything. I don’t really want to listen to that guy and I certainly don’t want to become that guy. I feel a discreet reply is the appropriate way to show my happiness with the home without shoving my accomplishment in everyone’s faces.

When can we come over?

Our last house was in a modest neighborhood and we have a friendly relationship with one of our neighbors there. We talk and help each other out but we never have dinner together or anything like that. You can say that we’re cordial but not close.

When we run into them while at the old house they say that they want to come see the new home. We say we will invite them when we are more settled. Just yesterday, I got a phone call from her saying she was driving around in our new neighborhood trying to find our home. She wanted to stop by unannounced. Thank goodness I had plans already because I have been avoiding this situation.

The neighbors are wonderful people but I’m reluctant to ask them over. We don’t know them very well so I wonder if they will view us differently or if it could make them feel bad in some way. Let me explain.

When we talked this week she told me that the cable guy had just stopped by their house because they were so late on their payments. She had to write them a check right then to keep service going. She explained how terrible they were with money and how they just never figured it all out. She even said: “I’m 20 years older than you; you would think we would have learned this by now.”

Bringing her to this house, which is considered an upgrade from our old neighborhood, makes me feel immodest and a little insensitive - especially after she told me of their money issues this week. I know we worked hard and sacrificed a lot for our new home, and that their financial problems aren’t my fault, but it still doesn’t make me feel better about the situation.

In the same way that people may hesitate having “rich” friends in their home due to embarrassment or fear of judgment, I’m having the same sort of concerns. I think it goes both ways. To me, it’s kind of like talking about having a fully funded emergency fund to your friends who are living paycheck to paycheck.

I know many people would say that I’m crazy to feel funny in these situations. I should be proud to show off my successes to everyone, right? It isn’t that I’m not proud of how far we have come – I absolutely am. Maybe part of it is because I understand how it can feel being on the other side.

I can admit that I’ve seen my friend’s new Lexus or Sub-Zero fridge and felt that pang of jealousy. Hell, I’ve been jealous of my sister’s gorgeous kitchen for a long time now. Now that I finally have a kitchen I’m proud of, I just can’t help but be humble about it to others.

Have you ever felt embarrassed to talk about an accomplishment to others? How did you deal with it? Leave a comment and let us know!

Reducipe – Green Beans With Caramelized Onions

Posted on January 31, 2008 by Melissa
Filed Under Food, Reducipes | 5 Comments

Sooo good! I have vivid memories of picking fresh green beans as a child. I remember searching for them like prizes, cracking off the crisp ends, and eating them raw.

They were so fresh and vibrant. Their flavor so undeniably green.

Of course, after a few bites I’d remember that they were vegetables and stop eating them but I’d cheerfully resume harvesting them and snapping off the tips.

Every time I trim green beans the aroma takes me back. I still love green beans and I enjoy serving them whenever I can. They can be dressed up in a ton of ways or served simply with butter and salt and pepper. Either way they shine in my eyes.

This recipe takes inexpensive ingredients and combines them with a little time and effort to create something extraordinary.

Caramelized onions are a fabulous companion to green beans. When you cook onions beyond translucence and start to caramelize them they develop an intense sweetness and complexity that’s simply magical. Oh, they are sooo good. The toasted almonds add a pleasant crunch and the butter really rounds out the flavor. This side dish tastes so good it graces the table at many special occasions and it’s usually the first thing cleaned off the plate.

Don’t even think about trying this with canned green beans. Something about the canning process strips them of the lovely qualities that make green beans good eats. They turn out lifeless and limp, with no traces of “green-ness”. In my opinion, canned green beans are only marginally permissible for soups and casseroles and never ok for side dishes. If you plan to serve green beans as a side dish and you can’t find them fresh, at least go with frozen.

Green Beans with Caramelized Onions

2 pounds fresh green beans, trimmed
1/2 cup sliced almonds
2 tablespoons unsalted butter
4 tablespoons canola oil
2 large sweet onions, sliced thin
1-2 tablespoons chopped fresh thyme leaves
Kosher salt
Freshly ground black pepper

Fill a medium pot with some water. Place over high heat and bring up to boil; add a big pinch of salt and the green beans. Cook for about 5 minutes, the beans should still be crisp. Drain the beans and then run them under some cold water to stop them from cooking. Set aside.

Place a large skillet over medium heat. Add the almonds and toast, stirring frequently until golden, about 3 minutes. Remove the almonds from the skillet and reserve.

Return the skillet to the heat and add the butter and olive oil and heat until the butter has melted. Add the onions, season with salt and pepper, and cook stirring frequently until the onions caramelize, 20 to 25 minutes. Add the thyme, and cook for another 5 minutes. Add the cooked cooled green beans and almonds, and stir well to combine and heat through. Season with salt and pepper, to taste. Serves 6.

This recipe isn’t what I’d call a quick dish because it does take some time and attention to caramelize the onions until they are just right. It is worth the effort, I promise you. If you have never tasted caramelized onions do yourself a favor and try them tonight. You will love them.

Ingredients for Green Beans with Caramelized Onions

Tips: If you notice the onions starting to burn just lower the heat a little and keep stirring. You don’t want them to burn or crisp, you want them to get incredibly soft and sweet. Make sure to pull the green beans from the water when they seem a little under done or you will risk over cooking them later on. You still want them to have some crunch left after all is said and done.

Ingredient	Cost	Ingredient	Cost
Green Beans	$3.98	Onions	$1.46
Almonds	$0.35	Thyme	$0.15
Butter	$0.12	Spices	N/A
Canola Oil	$0.18	Total	$6.24 or $1.04 a serving

Short of growing the green beans and thyme at home I’m not sure how this recipe could get much cheaper. Enjoy!

On My Own (For A While)

Posted on January 29, 2008 by Melissa
Filed Under Budgeting, Relationships | 9 Comments

My husband left me! Yesterday, before the sun even came up, Eric was on his way to the airport for an extended trip. 2 weeks. He doesn’t even get to come home over the weekend. It’s the longest we have been apart since we have known each other.

It’s going to be a lonely few weeks while I hold down the fort.

When Eric goes on business trips, I find that my “alone self” faces several challenges that have the potential to affect my budget. I think we all have little things we do (or don’t do) when our partners leave town. The changes in your behavior when you’re on your own can be subtle or obvious. Maybe you leave the dishes in the sink or rent lots of movies when you are alone. Maybe you enjoy shopping sprees or rounds of golf at the country club.

Eric’s typical business trips are about 3-4 days long and the slight changes in my habits don’t usually cause any issues. But what about 2 weeks worth of that same behavior? That could cause budgetary distress.

This time, I decided to come up with a way to battle my quirky “on my own” habits before they add up to a problem.

Problem #1: The allure of the quick and easy
For me, it’s the evenings that are the worst. While I’m normally busy preparing for dinner, I now find myself no longer cooking for my usual audience. I love to cook, but mainly for other people’s pleasure. If it’s just for me I lean more towards making something quick and easy or getting take-out. Without an audience I won’t be in my normal dinner routine and making my typical economical dinners.

Solution: Keep on cookin’
I will invite several of my friends to come over in the evenings for dinner. By cooking for them I will maintain my normal cooking routine and keep my food costs down. I can also microwave the leftovers the next day to make quick heat-and-go meals. In order to resist the temptation to order out I will go to the store and get a few cheap and easy meals (like mini pizzas) for when I really want something bad. I expect the prepackaged food will raise my costs but not nearly as much as dining out would.

Problem #2: Fear of the boogeyman
I tend to be a little nervous at night when I’m home alone. I was afraid of the dark as a child and that same fear still affects me when I’m by myself sometimes. Because of that I find myself keeping way too many lights on. Eric tells me that there is no reason to be afraid of the dark and while I understand that, it doesn’t seem to help when he leaves on trips. At least I don’t need to keep lights on all the time (it could be worse).

Solution: Make it cheaper to be irrational
This weekend we made sure to change out all the light bulbs for CFLs in the key places that I would want to leave on if I’m spooked (front door, back door, living room, kitchen). I will also make sure that I turn off any extra lights as soon as I’m up in the morning. I expect that I’ll be able to wean myself off the extra lights over the course of the 2 week period but if not, at least I’m only using a fraction of the energy I would have been with the regular light bulbs.

Problem #3: Staying connected
We like to stay in touch when one of us is out of town but to keep our cell phone costs at a minimum we keep our minutes at a minimum as well. One trip out of town and the whole month’s minutes can be used up if we aren’t careful.

Solution: Chat it up online
After work, we talk on the phone briefly to say “hi” and touch base. Then we both get on our computers and continue to talk about our day using instant messenger. This helps us to be able to chat for longer periods of time without blowing all our minutes. We already have unlimited online access so it works for us. As a bonus we can still get other work done on the computer while we chat. I love multitasking!

So, do you have any little habits that pop up when your partner goes out of town? Please share!

Image Source: malias

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