Trash to Cash

When we bought the Casual Shack my husband and I had to combine two households.  We had two of everything, 2 sets of dishes, 2 irons and on and on.  In addition to that, my husband liked to save stuff "just in case".  That tendency really comes in handy at times but when you're trying to cram 2000 square feet of stuff into a 1000 square foot house you find you don't need 3 Weed Whackers anymore and somethings gotta give.  This led to our first yard sale.  

That first year I did the yard sale by myself over a 3 day period.  We had that much stuff!  We rigged a rope from a tree to the fence to hang clothes on.  We used milk crates and trash cans with doors on top for tables.  We had everything you could imagine out there.   People came and they bought and they bought.  It was crazy busy and though my husband helped me set up the tables and put the big stuff out once things got going I was on my own.  BIG MISTAKE!  People everywhere asking for prices, haggling, wondering if I had this or that and best of all, shoving money in my hand.  They were buying things that I had almost thrown out thinking "who in their right mind would want that piece of junk".  Good thing I didn't as we made over $1400 that year.  We used the money to buy dining room chairs and new window treatments along with some other things we needed for the house.

Of course that wasn't $1400 profit.  I'd say only about 10% of that first sale was "found stuff" that we didn't have a monetary investment in.  That 10% came from seeing something on the curb and bringing it home or someone moving and asking "hey, you want this?" but it wasn't something we were focused on doing.  

Shortly thereafter as I was jogging one evening, I saw a mountain of stuff on the curb in front of a house that had a yard sale the previous weekend.  As I jogged home and passed it again I realized I was looking at what we now refer to as an "Instant Yard Sale".  We filled up the pickup truck, brought it home and sorted through it.  I could see from the pricing why they didn't sell much.  I put new prices on everything and we stored it in the garage for the following year.  By the time we got to the next sale our ratio of "our stuff" to "found stuff" was probably closer to 50/50. 

My husband helped with the second sale.  We found it's much easier to haggle when you don't have a dime in it and again we made over $1000 allowing us to buy my husband a fancy riding lawn mower.  We were even able to upgrade to real tables, no more makeshift door tables for us.

We lucked into another "instant yard sale" for our next sale pushing our "found stuff" to "our stuff" ratio to about 80/20.  I find we are a little more likely to watch for treasures on the street now.  It amazes me what people throw away, it amazes me more what people will buy if you price it low enough.

Because of the success of our last two sales, we've decided to continue having it the same weekend every year in February.  As we get closer to that time, I'll be posting my tips for a successful yard sale.  Right now, I need to get back to the garage to finish cleaning and pricing our latest finds.


 

Instant Gratification Yesterday Syndrome

Buying something on a whim without regard as to whether or not you can afford it or if it is really necessary to make you happy in the long run is a condition I like to call the "Instant Gratification Yesterday Syndrome". 

It could be something as small as a chocolate bar or as large as a new car.  Buying on impulse is a dangerous thing and can wreak havoc on your budget.  Instant Gratification Yesterday too often leads to tomorrow's Buyers Remorse.  In my experience these conditions are epidemic during the holiday season. 

In order to avoid both of these afflictions, it's important to THINK before you buy.  Something as small as a chocolate bar wouldn't take much time to think about.  Will it put you over budget?  Are you hungry?  Not too big a deal to make a quick decision.  When you get into higher priced items it gets trickier.  Especially if a slick salesman is filling your head with all the reasons you SHOULD buy.  This is the time to step back and really THINK about it. 

Here's a possible scenario.  You head over to the local mega store, you know, the one you need a road map to navigate and a GPS to find your car.  Okay, you're heading in there to snag a new pair of slippers for Grandma.  On the way to the shoe department you have to pass through electronics.  Then you see it.  The most beautiful 60" LED, Internet ready, DVD playing, Hi-Def TV you've ever seen.  You stand mesmerized watching the bluest ocean scene, or perhaps the most vivid football game, you feel as though you are there.  This thing can transport you to places you've never even imagined!  AND IT'S ON SALE!!  50% off!  This is your lucky day!  Or is it? 

Ask yourself a few quick questions  "Did I want this TV 5 minutes ago?"  No, then you don't really want it now, keep walking to the slipper department. 

"Is a new TV in my budget?" If you've been planning for a TV purchase and saving accordingly the answer might be yes, if you haven't then the answer is no and on to the slipper department you go. 

"Is this more TV than I need?"  You may only have room for a 27" TV, or don't need the Internet option.  If so, better go get those slippers.

"At 50% off is this a good price?"  Just because it's 50% off doesn't mean it's a good deal.  If the TV was overpriced to begin with 50% off may just be getting it down to what the normal price should be.  Doing a little research ahead of a big purchase will make it easier to see a good value.

"How long is this price in effect?"  If the item is going to be on sale for the rest of the week, go get the slippers then go home and think about it.  You may feel you don't want it as much a few days later.  If you do, try comparison shopping to see if you can snag that TV for even less somewhere else.

It all comes down to making informed choices.  Plan your purchases and do your homework.  Know what you are looking for, don't let over the top marketing tell you what you want. 

I myself have been afflicted with Instant Gratification Syndrome Yesterday.  I now take preventive measures and keep my condition under control.  By saving throughout the year, researching and delaying purchases until the deeply discounted Holiday sales begin you can acquire things you've been wanting for a fraction of original retail cost and get through the shopping season with your budget intact.



 

The Marc House Orchids

Today is Shop Local Saturday.  It's meant to promote shopping at local smaller establishments.   I took advantage of a promotion by American Express.  By registering my card ahead of time they offered a $25 account credit for spending $25 or more in a single transaction at one of the local merchants listed. 

I decided to take advantage of this by shopping at the Marc Plant Store.  The Marc House is a local nonprofit designed to help mentally challenged individuals lead independent lives.  Marc stands for Monroe Association for ReMARCable Citizens.  Residents work at the plant store and are able to learn a marketable trade.  It's a great organization that does a great service. 

I purchased two orchids today.

This one:

 

 

And this one:

 

Two beautiful flowers that will be a beautiful addition to the Casual Shack garden.

                               Here's how the deal worked:

                           2 Orchids @ $15.00 each = $30.00
                                 7.5% sales tax              = $ 2.25
                                 Total                               $32.25
                  Rebate from American Express   - $25.00
                           1.25% Blue Cash reward   -       .37      
                         Actual Cost of 2 Orchids         $ 6.88         

All profit from the $30.00 sale goes to the Marc House and I got an amazing deal on Orchids!  Does it get any better than that?         

 

Learn to say no

At one point or another anyone trying to follow a budget will be faced with choosing between being true to their financial plan or giving in to the pressure of others. 

Perhaps a friend wants to try an expensive new restaurant but your eating out budget couldn't cover the tip, what would you do?  Though you may be tempted to go you would probably spend the evening miserable knowing you are spending money you really don't have.  It's okay to say no. Simply tell them it isn't in your budget and suggest an alternative you can afford.  Search the Internet for things to do in your area such as free admission days to local museums or perhaps pack a lunch to eat at the local park.  If spending quality time with your friends requires overspending your budget consider finding new friends.

Work is another place that may leave you feeling pressured.  Well meaning employees always seem to be asking you to contribute to a workplace collection.  You don't have to give just because you are asked.  It's not a requirement of the job.  If not participating makes you feel uncomfortable budget a set amount for such collections, giving only what you can afford.  If someone accuses you of being "cheap" tell them you are on a budget and this is what you can afford.  Gift giving should be because you want to, not because you feel you have to.  I would much rather get a gift that cost the giver nothing yet came from the heart rather than get an expensive gift given from a sense of obligation. 

The only people who should get a say in how you spend your money are you and those in your household.  This is your personal finance, don't let the wishes of others dictate where your money goes.  As you realize the benefits of sticking to your budget, saying no will get a whole lot easier.




 

From the Zip files

We rescued Zip when he was about 5 months old.  He was abandoned by his family and had been running the streets for several weeks.  He came to us looking like this.

We brought him home, just for the night, to figure out what to do with him.  The local shelter was overcrowded and didn't take him when I called.  He immediately got what we believe was his first bath ever, believe me when I say he really needed it.  He was scarred from fighting, had an obvious skin infection and a belly distended with worms.  He was a mess yet he was the happiest dog I'd ever met.  To this day he gets so excitedly happy his whole back half wags along with his tail. 

Two days later we took him to see the Vet where he was checked for a microchip, treated for the worms and given the first of his shots.  I had now spent money on this sorry little furball.  He was officially ours.  We gave him a name and brought him to his forever home.  Zip had won the owner lottery.

Now, just over a year later, he looks like this:

He's a sweet boy with a lot of energy.  His name really fits him, he Zips across the yard more like a cheetah that a dog. 

From the beginning it has been a challenge to find durable toys for him.  He destroys them.  I now look for deeply discounted toys and clearance items.  Last week we found such a deal.  Two Halloween themed hedgehogs at the local pet store.  At 75% off I was on it, scoring those toys for under $1.50 each.

One red, one black, they started out looking like this:

Cute, huh?  We gave him the first one last Monday.  Exactly one week later the red one looks like this:

Not so cute anymore.  This was the second time I found this toy in a water bowl.  Just three days ago his was floating in the indoor bowl, mostly intact, missing just a foot and its tail.  He was rinsed off, dried out and given back to Zip the next day.  Apparently Zip was on a mission to finish the job and ensure this toy was toast.  He succeeded.

If anyone out there has found an indestructible soft chew toy, please share it with me.  Until then, I'll just have to accept the fact that his toys will have a very, very short life.



 

The shopping report, what I saved today!

I do my grocery shopping once per week.  I do a circuit of three different stores.  It starts at Walgreen's, then next door to CVS, culminating at Winn-Dixie.  There are only two chain grocery stores in my area.  Winn-Dixie is 7 miles away, Publix is 20 miles away.  To save time and gas I have opted to stick to one store and make the best of what they have to offer.   It does hinder my savings potential but it's the price we pay for living on a rock in the middle of the ocean.

Here's what I need to prepare for my weekly shopping trip:

 

 

Each Saturday I buy 4 Early Edition Sunday papers giving me 4 sets of coupons.  By buying the early edition I spend $4.00 each week as opposed to the $8.00 I would spend buying the Sunday edition.  Some people use more coupons but I find 4 is my magic number, anything more for me and my often hectic schedule would be overwhelming.

From those papers I pull out the coupon inserts and the ads for the stores I'll be visiting.  To clip the coupons I seperate them into single pages, stacking each like page together.  I then cut four like coupons simultaneously.  After cutting I take each stack of 4 coupons and file them into my coupon binder.  My binder is divided alphabetically.  I don't over categorize things, I like to keep it as simple as possible.  For example, the "F" section has fruit and frozen foods, the "M" section would have meat as well as medicine.  It's just easier for me to remember things that way.  If I try to micromanage my coupons I'll forget where I filed them and invariably waste them. 

After organizing the coupons it's time to make my list.  In addition to the items we need I like to check the ads for deals on items we might be running low on in the near future.  By buying extra and stockpiling when an item is at a great price I avoid having to pay full price on an item because we ran out of it.

For the CVS and Walgreens list I like to visit a site called HIP2SAVE.  There are many sites that can help you to find the best sales and coupon combinations but I like this one because for me it's extremely user friendly.  The site name is pretty cool too. 

As I make my lists, yep there's 3 of them, I look for buy one get one deals for products I use.  If I have a manufacturer coupon for the item I'm sweetening the deal.  The preparation process, start to finish, usually takes me about 2 hours.  Once my lists is done it's off to the store. 

After about 2 hours of shopping, I came home with this:

It's hard to see what's in the picture so here's a list:
4        Mrs. Smith's deep dish pies
2        Cool Whip
1        8 oz Philadelphia cream cheese
1        1/2 gallon whole milk
1        cucumber
3lbs.  sweet potatoes
2        32oz Kraft mayonaisse (with bonus Shake n Bake!)
2        boxes Stove Top Stuffing
4        Ritz Fresh Stack crackers
20      large cans Alpo Chop Filet dog food
4        cans Campbell's turkey gravy
2        packets McCormick brown gravy
1        McCormick Gourmet Chicken Rub
4        cans DelMonte vegetables
4        2 liter Diet Coke
2        15 pound frozen turkeys
6        6 oz cans Bumble Bee white chicken
2        Lady Mitchum antiperspirant
4        2 liter Mountain Dew
4        2 liter Diet Pepsi
2        12 packs Mountain Dew
5        12 packs Diet Pepsi              (yes, we drink too much soda at the casual shack)
2         2.8oz French's french fried onions
1        box Kraft Mac n Cheese
1        32 oz bottle Powerade
1        Phillips universal remote control
1        Easyfeet
1        Starbucks doubleshot
1        Starbucks refresher
1        Thermacare back wrap
1        Finesse shampoo
1        Advil 10count
1        Kotex U panty liner 18 count
1        1.25 liter Diet Coke
1        box Nature Valley Protein granola bars
1        Carmex lip balm
1        roll Charmin Basic

That's a lot of stuff. 

AT CVS I spent $45.02, saved $34.16 for a savings of 43%
At Walgreen's I spent $30.75, saved $33.00 for a savings of 52%
At Winn Dixie I spent $75.69, saved $90.06 for a savings of 54%.

My out of pocket for all three stores and the 4 newspapers was $155.46.  I saved a total of $157.22 using $11.05 worth of manufacturers coupons and taking advantage of sales.  That's a total savings percentage this week of 50%.

50% sounds good, right?  It gets better! 

Cash back!!  That's right, both CVS and Walgreens gave me coupons good toward future purchase.  At CVS I received 16 Extra Buck rewards totalling $32.92!  At Walgreens I got one for $4.00.  I will use these as cash toward my shopping trip next week and report back here as to how I'm going to maximize this $36.

But wait there's more!  Remember the Universal Remote and the Easyfeet in the list?  I don't need either of those items but by buying them I got an equal amount of Extra Bucks so in the cart they went.  I'll put both these items into the annual Trash to Cash yard sale for a potential additional $10 in my pocket.

So there you have it, $312.68 worth of products, $155.46 out of pocket, a 50% savings with a bonus of $36.92 in register rewards and 2 items for the yard sale.

Life really is good, keep it casual!

The benefits of paying extra on your mortgage

Our single biggest financial focus is to pay off the house before we retire.  We have a lofty goal of reducing our 30 year mortgage to just under 9 years.  We bought the Casual Shack in the summer of 2009 taking advantage of a short sale. To date we have made 41 monthly payments and have reduced our mortgage term by 71 months.   That means if we only make minimum mortgage payments from here on out we will pay it off almost 6 years early and have already saved close to $58,000 in future interest payments.  $58,000!!

The purchase price of our house was $200,000.  If we didn’t pay extra over the life of the loan our house would have cost $405,000. At this point, with no further additional principal payments the Casual Shack will cost $347,000.  That’s still too much.  If we reach our 9 year payoff goal our house will cost us $261,000 which is close to market value for this area, saving us $144,000 in interest payments. We can live with that. 

In order to do this we have sent an additional payment every month since the first payment.  Sometimes a lot, sometimes a little, dependent upon our extra income and unexpected expenditures.

You don’t need to add thousands of dollars to your monthly payment to make a difference.  Had we only added $100 per month, every month consistently we would still have saved $42,000 over the life of the loan and reduced the payment term by 64 payments.  That’s $42,000 that can stay in your pocket and over 5 years early!  These figures are based on our loan and its interest rate so the numbers will vary.  Here's a link to an Amortization calculator to see how much you can save by adding that little bit extra. 

I don’t know if we’ll reach our goal of owning our house by May 2018.  I do know that we have already deprived the big bank of $58,000 of our hard earned money.