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I’m in the midst of a project today so I wasn’t going to post, but I couldn’t ignore The Frugal Duchess. I am a long time admirer of Sharon’s and had the wonderful opportunity to meet her in DC this summer while she was on book tour. I encourage everyone to go to a reading and meet her in person. She is wonderful and kind.

Weekend Spending Report

Sorry for the dry reports. I’ve got the summertime blahs when it comes to blogging.

I ended up with nothing in my wallet on Friday afternoon. I admit that I went to the supermarket to buy some groceries for lunch on Wednesday and used my debit card. But I also ended up skipping lunch on Thursday and just snacking on stuff I bought the day before. That will make money go further.

Thursday night:
Dinner at Austin Grill $15.

Friday:
Boyfriend bought dinner at Chevy’s for us. No idea what the check was.

Saturday:
Boyfriend bought me a bagel and cream cheese with ice tea for lunch
Dinner at home
Gas for $31 - Filled boyfriend’s car with a half tank since he drove us to an event in the burbs just for my friends and he picked up dinner the night before.
Evening - Metro $2.70 round-trip, free vodka drinks at event in exchange for marketing information

Sunday:
Lunch: Boyfriend bought us bagels and drinks and we ate in the park with the dog $14
Dinner - wasn’t very hungry, ate leftovers

The only bad thing was that Thursday night I was really car sick going to Austin Grill and never ate my dinner. I did a take out box and the food sat at home, uneaten for the rest of the weekend. I picked at it when I was feeling sick on Sunday night just to put something in my stomach. I think the rest of it will be edible on Monday night.

Cleaning Up Is Hard To Do

I’m learning how to be more ruthless throwing stuff away. I’ve watched my boyfriend clean up his house. He’s extremely tidy. He doesn’t keep paper around. He shreds it or throws it away immediately. He does not sweat the small stuff. I think the only receipts he saves are for taxes. If it’s not tax deductible, returnable or otherwise important, out it goes. It makes me wonder why I keep every single damned receipt I ever got.

While I’ve been happy in some instances to go back 4 years to dig up a receipt for something, I think I’ve only ever done that to research the original cost of an item for my blog. So why on earth do I keep it? I just don’t know and now that I know I don’t know, I can throw it out. (Or file it away so I can throw it out in 3 years?)

There are a great many things I’ve been looking at in my apartment, wondering why I have them or have so many. But that’s a revisit of some of my old hoarding posts.

Questions to ask when cleaning stuff up:
1. Are you going to need this within a month?
2. If you get rid of it, will you regret it? Why?
3. Can you replace it and will that cost you a lot?
4. What is the utility of this item? Has its usefulness expired?
5. Can you sell it or donate it?
6. Do you want to give it away on Freecycle or send it to the dumpster?
7. Are you really going to do something with it? If so, you have 30 days. Do not lie to yourself here and make up a future possible reason for something.
8. If I were moving cross-country, would I take this with me? (Done it twice and it does crystalize priorities.)

I find those seven questions to be useful when I’m feeling merciless about cleaning and throwing stuff away. What kinds of questions do you ask yourself when you are cleaning up?

If I Were to Buy a House Today…

I just ran some numbers. If I sold my condo and cleared a bit of cash, say $15K, even with my salary, I’d hardly be able to upgrade to a full one-bedroom in a nicer part of town. I worked up some numbers with the Kiplinger’s Real Estate calculators. I used the one to find out how much can I borrow and one to find out how much can I spend on housing.

The reasonable figure I came up with was buy a place for $279k, and put 5% down. With taxes, PMI and home insurance, that’s about $2030 a month for the mortgage payment. Factor in monthly maintenance cost/HOA fee, utilities, I’d barely be able to cover the cost of a home like this.

The reason is that with a full complement of saving in my 401k plan (capped at a theoretical $16k for 2009), plus some money in the company ESPP, an HSA (capped at $2400), and a little for a Roth 401k, there would be very little left for a mortgage payment. I am not sure I’d want to pay more than 50% of my take home pay on a mortgage. That seems like excessive saving, doesn’t it? But when you’re in your 30’s and undersaved for retirement like I am, I think supercharging my saving is a good idea.

I just don’t understand the DC housing market. How can people live here, save and have kids all at the same time? Unless you really are a K Street lobbyist raking in the dough, it’s nigh impossible to live here and raise children all at the same time. (But is my dream of San Francisco any better? Hardly.)

My other strategy is to stay put and ride things out, even though there are things going afoot at my condo that displease me and could end up being worse if I wait. (Action is sometimes better than inaction.) I could easily see thing going to hell in a handbasket and getting a special one-time assessment of $2-4k next year for major property repairs.

I could rent my apartment out and find an alternative place to live, but the rent I could collect is less than what I’d have to pay so it’s a negative cash flow situation.

The last strategy is to sell and move to an apartment with a roommate. However, with the way my mortgages and HOA fee work out, I’d be hard pressed to find a great living situation for rent and utilities for less than what I pay now. And great would have to mean a not crappy neighborhood where I wouldn’t have to struggle to park my car. Now that’s a joke in busy Arlington.

One of my girlfriends lives in a one-bedroom with all utilities for $950/mo, but she has no elevator, a walk up 2 flights of stairs after a 20′ flight of stairs just to reach her building from the parking lot, a crowded parking lot and crappy neighbors. Should I go in the opposite direction, I’d be paying the same amount as my current housing cost for one-bedroom rent with utilities included, and extra for limited parking. But the building would have package service and a bigger laundry facility with nicer views. And likely the rent would actually be about $200 more than my current housing cost since it’s not rent controlled and could easily balloon after 12 months.

So really I should shut up and put up with the mess that is my condo, keep my head down, pay off the credit cards and keep my savings plan intact.

Every once in a while, it’s nice to get a cold hard reality check, run the numbers, and say to yourself, “Well this glass is certainly half-fulll, but really, at least it’s not half-full of poison.”

Long Term Condo Strategy

I know I have to get out. This place is going to the birds. I ran into a neighbor of mine and frankly, there is a situation afoot which I do not like. I don’t mind so much the foreclosures and the low price being set on one of the condos in the building. If that was the only problem, no big deal, I could renovate and rent out.

What really concerns me are some other structural issues with the building I live in, and some of the machinations of the HOA president. (Telling another condo owner to whom she should rent.) He doesn’t like me anyway, but he really has no right whatsoever to tell someone they shouldn’t rent to a responsible tenant just because the guy complains (legitimately) about what needs fixing. (And often does it himself, for free.)

I got the skinny from this neighbor of mine and it worries me quite a lot. I need to find a way to renovate and sell quickly. My kitchen and the entire apartment needs to be done over, but I will barely cover my costs in this falling market. If I wait longer though, I will get screwed with a potential one-time assessment cost.

I love the concept of my apartment, but right now, I’m not loving my building, nor the HOA, and haven’t been in the last 2.5 years I’ve been here. This is all very great news as I celebrate 4 years in the place. (As of last weekend. Yay for me!)

I’ve been looking at home listings and I still think I can get about $150K for my apartment, but I would have to really spruce up the place first. I’d have to put it on credit cards, move out and pay for a sublet/rent and carry the mortgage. That kind of scares me since I liquidated all my savings in the first place for the bathroom repair. (I should stop calling it a renovation, because it was well and truly damaged.)

UGH. I’m so obsessed at the moment with paying down my credit cards that I’m not sure if I should stop all the savings I’m doing or not. (This kind of expense goes way beyond belt tightening and into needing $15K ASAP.)

Remember, Cash is freedom. Don’t forget that.

Checkpoint

I have $26 left in my wallet today. I bought lunch on Monday for $6.50. Dinner, beverage and lotter ticket for about $8.00. Tuesday was Korean buffet for $7.50. Tuesday night was awesome Cheesecake Factory dinner. FOR FREE. YAY!

One of the South Asian gentlemen at work is getting married. He’s leaving for his home country this week for 5 weeks. It’s exciting.* Because his team lead is a pretty cool guy, he asked us who wanted to go take him out for lunch or dinner. Somehow this morphed into dinner and the thought of covering dinner was making me cringe till I found out that the manager was going to expense it as a team building event.

I have only $26 to make it through three more lunches and one dinner. I already told boyfriend I expected him to thaw out some shrimps in his freezer we bought two weeks ago and make dinner today.

I will likely pull out $100 on Thursday afternoon, but it should carry me through well into next week.

*- After dinner, we all went for a walk over to someone’s apartment to check out the view from the roof and sober up a few fellows. While on the walk, the groom asked me about the neighborhood and what there is to do around there. I think once he saw our co-worker’s building, he was pretty sure this neighborhood is where he and his wife will live when she comes back with him.

Also, we were near the Apple store. Some of the guys wanted to go in and check stuff out. As they were talking I reminded them that we get a discount with our work ID’s. They didn’t believe me and I wasn’t sure if it was only through the online store. Sure enough, we asked the clerk and found out that we get anywhere between 4 and 17% off stuff. The groom went ahead and bought two iPod Shuffles as presents to take back home. I was joking that it was for him and his wife for their long return flight back to the US. But seriously, I nearly screamed when I found out all the IT geeks did not know about the discount we get through work. C’mon people! Use your benefits including corporate discounts!

FWIW, this means that I will kindly wait at the store at 8am and pick up a ticket for a new 3G 8GB iPhone for a co-worker when they are in stock. That way he has until 6pm to come to the store to buy it. Lucky me. I will get a free lunch for a little early morning hassle!

From The Archives: August

The ever popular Caveat Lector post. Just as true now as it was a year ago. Beware of hucksters, shysters and anyone else who knows what to do with your money and your credit score. By far, this is the most important post I’ve ever written here.

And a related post that still has some good advice for anyone who is nervous in a bear market. As was put in a recent article on Yahoo Finance, “The time to buy is when there’s blood on the streets.” Baron de Rothschild meant in Paris and not Wall Street, but it’s the same today as it ever was.

Weekend Spending Report

Friday night:
Tickets for 2 to the Making Time show in Philly: $36 (bought on debit earlier)
Drinks for 2 (two cocktails, two beers, water, juice) and tips: $30ish
Tolls: $15ish

Boyfriend paid for my dinner and my share of gas and SUV rental. There were 5 of us and I weaseled out of driving duty, thus forcing us into a rental car, which was $30 per person.

Saturday:
Lunch: Leftovers of Chinese food
Sushi dinner: $33 (on credit because I left my debit card in my other clothes)

Sunday:
Wendy’s: $10.08, lunch for two
Dinner: boyfriend cooked for me

It was a lot more than I expected to spend on Friday night. I really hoped I’d have more money leftover, but that’s what I get for not driving my own car and collecting gas money. le sigh. I have a sedan that will fit 5 people, but for some reason I waffled on driving so it forced us into a situation where we had to rent a car. (Epileptic friend has sold his car, another person is too young to rent, third person is an incompetent driver, leaving only my boyfriend who has a two-seater. Thus, we rented.)

On Sunday we aborted a kayak ride out on the Potomac because it was an hour wait for a double kayak. But that would have been $10 an hour for the double.

I’m left with $57 for the week in cash. That should hold me over till Friday since I have no special plans this week which will cost a lot, but I’m not sure. We are taking someone out for lunch on Wednesday before he leaves for India to get married. I think I can if I really try. I plan on buying gas with debit card, since that is what I usually do. And I also need to buy some buttons for yet another baby sweater.

Restaurant Review: Sticky Rice

Sticky Rice is a new H Street restaurant here in DC. It has its origins in Richmond, VA at the original location. It seems to have a huge following with kids who went to college around Richmond.

Sticky Rice is the second closest sushi shop near boyfriend’s house and down the street from Joe Englert’s hip locales, Rock & Roll Hotel and The Argonaut where my friends work.

Boyfriend and I were hoping to get in on their pre-opening evenings when they were trying to work the kinks out, but alas, we couldn’t get an invitation. So we waited a respectable amount of time after their official opening in late May and headed there on a week night early in the week in late July.

The night before we had dinner, we were there after a show at R&R Hotel for a Bucket of Tots and their Tot Sauce, having been warned by a friend that they don’t have sushi after hours, just drinks and tater tots. My though, it was very good drunk food and a good time. The Tot Sauce was spicy-licious! They give you a little pail of tater tots, perfectly crisp without being soggy or fishy (important from a place that makes tempura). They also gave you a ranch sauce for dipping, but forgo the ranch and ask for two containers of the Tot Sauce. It’s got a good bite to go with your beer.
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Articles I Liked This Week

My Dollar Plan has a fantastic list for saving money while you still have a job. And if it’s not an actual list of ways to save money, it definitely will give you some ideas on how to leverage your job for great benefits. Hat tip to Lazy Man & Money!

Ah the bitter sting of using your HELOC as an Emergency Fund!

Lottery tickets are not investments. But you knew that already, right?

One year ago in my blog: My thoughts on the market plunge - HA! I guess I should heed some of that same advice now, and hold on tight and keep on saving!

And from my blog two years ago: Am I making enough money as I could be?