Many couples talk about how the cost of the movie or dinner out is less of an issue than the cost of the sitter. A bit of googling and I find an average rate of $10/hr. So heading out at 6pm for a movie and bite and your first $40 goes to the sitter. You’re not the only one, and that’s what prompts my suggestion today. Get friendly with the parents of one of your child’s closer friends, and suggest a date night swap. You have their child over one Friday or Saturday night and they reciprocate a week later. No money changes hands, and you both get a needed night out.
Similarly, you can save by hooking up with people whose children attend the same after school functions, sports, dance, after care programs, whatever their after school events are, carpooling can save you both time (if you’re always driving) or money (if you pay someone to do it for you). Let me know if this idea works for you.
Joe
In May, I wrote about the Credit Card Reform Act, and now it’s time for the first of the changes to take effect. Banks now have to mail out the bills at least 21 days prior to the due date. They also must provide 45 days notice before making any significant changes to either your rate or fees.
Remember, regardless of the 45 day rule, if your credit card had a fixed rate you do not need to accept the new rate. You can call the issuer and tell them you are shutting the account and will pay it off at the old rate and terms until it’s paid in full. This may impact your FICO score, but depending on the rise in rate, it’s an option to consider. More changes to come.
Joe
There was a time when people actually paid their mortgage off, burning the paperwork in celebration of that final payment. But the times seem to be changing. As recently as 1992, only 18% of Americans 65 to 74 had any mortgage remaining on their house, but by 2007, that number rose to 43%. There are many reasons why I’m not sporting a “mortgages are evil” bumper sticker. They are a necessary tool to buy a house which will typically cost 2-3X one’s annual income. If you buy a house by your early 30s, you’ll be through paying by your early 60s. That is, if when you move or refinance to a lower rate, you don’t continue to get new 30 year mortgages.
For some, the aggressive paying off of the mortgage, to the exclusion of nearly everything else, has them sleeping better. I think balance is important. Saving tax deferred in one’s retirement account, building an emergency fund, enjoying life. All these should come first. For myself, at 46, I have just over 7 years left on the mortgage, and 8 years before my 10 year old enters college. So, in theory, she graduates when I am 58, and I have the choice to retire or start a second career.
With the mortgage payment usually the highest chunk of one’s budget, I’d not want to get too close to retiring without knowing that payment is behind me.
Joe
The Bag Lady asks “Why not promote new home sales by burning down old homes?” Why not, indeed. She gives a decent explanation of how misguided the Cash For Clunkers Program really is, and her suggestion, while sarcastic, is a great analogy to what the government is having us do with our cars.
Christian PF asks “Will Social Security be around when you retire?” A post that gets you thinking whether or not you really want to count on Social Security as part of your retirement plan. I agree with his conclusion, “Plan for your retirement like Social Security will not exist. If it is still around, then you will have a nice little bonus.”
Financial Fizzle offers a great list (if you haven’t noticed by now, I love the lists) of “55 Ways to Simplify Your Finances.” A very neat list, it contains a combination of things to do to save time, money, or both. As someone who looks for and posts on frugal ideas, this list contains some gems, many of which hadn’t occurred to me.
Kevin Mercadante of Out of Your Rut guest posted on five cent nickel “Can We Take Frugality Too Far?” He takes a good look at the darker side of frugality, how it can slip into being cheap (as when one tips only 5%) or downright theft (taking a purseful of sugar packs from a restaurant). There’s also a time/money tradeoff that any of us who try to save need to acknowledge. Spend enough time shopping for a bargain and you’ve possibly traded an hour of your life for a dollar or two in savings. Good observations raised here.
Baker at Man vs Debt tells us the “Top 16 Pieces of Your Information Identity Thieves Crave.” A not so obvious list of the data we need to learn to better protect, and a great follow on to his “33 Ways To Thwart Identity Theft.” Nice posts on a subject we need to not overlook.
I’ve tried to share with my readers the best five blog posts I read the prior week, and I was going to quit here, but then Baker, guest posting at Get Rich Slowly wrote “The ‘Do-I-Have-Enough-For-This?’ Effect” which sparked my interest. A new spin on an old topic, Baker dives into the nature of spending, and concludes that for him, eliminating credit cards completely was a good path toward his goals.
An excellent week’s reading here.
Joe
