This past weekend, my husband and I drove down to his parent's house to celebrate Christmas, New Year's, and both of our birthdays with them. On New Year's Eve, we drove into Baltimore to go to their Spectacular, complete with live music and fireworks.
We decided to go out to diner before the fireworks, and called the day before to make reservations. When I gave the restaurant my name, they also took a credit card number to hold the table and noted that, should we cancel our reservation, it would be charged $50. This should have been my first hint that trouble was afoot. Naively, I thought they needed to take credit cards because it was a busy night and didn't want to be holding a table for people who weren't going to show up. While I'm sure that was a part of it, there was more to it.
Before we went into Baltimore, I checked out the menu on the restaurant's website. The entrees ranged from $18-$40, which is much more than we usually spend. However, we knew that this was a special occasion and had prepared for it. I picked out a meal before we went for $21, planned to have one drink and then switch to water, and figured I was golden.
When we got to the restaurant, it was an entire different story. We pranced in and were told they were using a special menu for the night. OK, no big deal, I can pick something else to eat. Until I saw the menu. Then I freaked out.
Everything on the menu was a package - appetizer, entree, dessert, soft drink, coffee & champagne toast. There was no option to just pick an entree and call it a night. Worst of all - the cheapest package was $53. Our cost had essentially doubled and there was nothing we could do about it.
We considered leaving, but the $50 hold on the credit card made it pretty pointless to do so - any other place we chose to eat would cost about $50 and, with the credit card hold, we'd be right back at square one. So we stayed and chose to enjoy ourselves instead of getting angry and ruining the night. And you had better believe we got every single thing offered as an option.
The restaurant really handled the situation poorly. First of all, it was way too much food for one person to eat. Generally we split an appetizer or a dessert, never mind each ordering our own of both. I was bursting at the seams after eating everything out of spite. In addition, there was no mention on the website or when I called to make the reservation of the special menu with the higher prices. I really feel like we were duped and tricked into spending more money than we normally would. I'm not sure what the advantage of this is for the restaurant - obviously, the make more money, but we couldn't have been the only ones who felt tricked. It has turned me off to that restaurant and eating out in general - which, I suppose is good for the budget in the long run. I'm sure that won't last too long!
Afterwards, the fireworks were Spectacular!
Friday, January 4, 2008
Thursday, January 3, 2008
2007 In Review
Well, the year has come to a close. What a year it was - tons of financial things happening, with the biggest, of course, being debt payoff. We learned the art of Cheap Dating, hit a couple of big milestones, and improved our attitudes towards finances in general. Of course, there were plenty of bumps in the road. But more importantly, the numbers!
- We paid a total of $43,712.93 towards all of our debts (except mortgage). This includes credit cards, student loans, and auto loans.
- Of that $43K, $30,099.73 was paid to principal, meaning we paid $13,613.20 in interest.
- The amount paid to credit cards was $23,712.57, with $18,769.32 of that paid to the principal, leaving $4943.25 in interest.
Friday, December 28, 2007
FSA: Use it or Lose it?
I have a medical expense FSA, or flexible spending account, set up through work. I use it mostly for co-pays at various doctor and dentist appointments, any medicine, and contacts. For 2007 I set it at $500, which turned out to be pretty close to my actual usage.
The thing that I don't know is whether or not I have to use the rest of the money - $64.15 - by December 31.
Because the money set aside for the FSA (or in my case, on a debit card) is not subject to payroll taxes, it has a coverage period or "plan year". In general, the plan year is the calendar year. However, in 2005, the IRS authorized an optional 2 1/2 month grace period that employers can offer, extending the "plan year" through March 15, 2008. I just don't know if my employer does this.
Seems like a little thing that I should easily be able to find, right? When my money is forfeit? I have already received my new FSA debit card for 2008 and my husband needs a new pair of glasses - if my 2007 FSA extended into 2008, then I could use that $64.15 towards the glasses and pay for the rest with the 2008 FSA. But I can't find anywhere the date my "plan year" ends. So I have to assume that it ends on December 31, 2007. I would rather use my money than forfeit it accidentally.
So today I bought 3 new boxes of contacts for us, as they won't expire for many years. Using a free shipping coupons I found online, the total came to $62.38, which leaves me with $1.77 left to use on my card. I just need to run to CVS and find something small to use the rest of it up!
The thing that I don't know is whether or not I have to use the rest of the money - $64.15 - by December 31.
Because the money set aside for the FSA (or in my case, on a debit card) is not subject to payroll taxes, it has a coverage period or "plan year". In general, the plan year is the calendar year. However, in 2005, the IRS authorized an optional 2 1/2 month grace period that employers can offer, extending the "plan year" through March 15, 2008. I just don't know if my employer does this.
Seems like a little thing that I should easily be able to find, right? When my money is forfeit? I have already received my new FSA debit card for 2008 and my husband needs a new pair of glasses - if my 2007 FSA extended into 2008, then I could use that $64.15 towards the glasses and pay for the rest with the 2008 FSA. But I can't find anywhere the date my "plan year" ends. So I have to assume that it ends on December 31, 2007. I would rather use my money than forfeit it accidentally.
So today I bought 3 new boxes of contacts for us, as they won't expire for many years. Using a free shipping coupons I found online, the total came to $62.38, which leaves me with $1.77 left to use on my card. I just need to run to CVS and find something small to use the rest of it up!
Thursday, December 27, 2007
Spending Relapse
As I alluded to earlier, the budget has slipped in December. Big time. I'm embarrassed to admit it, too embarrassed even to look up how bad the numbers are. All I know is this: in December, all we paid to our credit cards debt was the minimum payments. On top of that, we had covered our December minimum payment towards the Discover card with our November payments, so we didn't even put anything towards that debt. Our grand total towards the credit cards in December was $198. Somewhere, the credit card companies are cackling with glee.
As I predicted in November, the month of December was really tough. I was really quite busy and didn't pay attention to our finances hardly at all - just enough to pay the bills. No budgeting, no coupons, lots of buying. Most of the shopping was for Christmas gifts and related items, but those budgets there were still *ahem* broken. And we went out to eat quite a few times throughout the month. I am such a bad example! Maybe I'm a what not to do?
The good news is that we didn't use our credit cards. At all. Christmas, while expensive, was all cash.
All these add up to a disastrous December for debt payoff. I think the kicker is that when I allocate money towards a certain budget category (like Christmas gifts), but I don't spend it right away, I throw it toward the debt. So some of the credit card payments in November should have been made in December. I don't know if I prefer it this way or if I would rather have a sub-accounting system to allocate my money towards its final destination. I know that when we get a savings account, I will need sub-accounts to keep track of it all.
I need some ideas- when you have money to use a certain way, but not immediately, where do you put it? How do you keep from using it for something else?
As I predicted in November, the month of December was really tough. I was really quite busy and didn't pay attention to our finances hardly at all - just enough to pay the bills. No budgeting, no coupons, lots of buying. Most of the shopping was for Christmas gifts and related items, but those budgets there were still *ahem* broken. And we went out to eat quite a few times throughout the month. I am such a bad example! Maybe I'm a what not to do?
The good news is that we didn't use our credit cards. At all. Christmas, while expensive, was all cash.
All these add up to a disastrous December for debt payoff. I think the kicker is that when I allocate money towards a certain budget category (like Christmas gifts), but I don't spend it right away, I throw it toward the debt. So some of the credit card payments in November should have been made in December. I don't know if I prefer it this way or if I would rather have a sub-accounting system to allocate my money towards its final destination. I know that when we get a savings account, I will need sub-accounts to keep track of it all.
I need some ideas- when you have money to use a certain way, but not immediately, where do you put it? How do you keep from using it for something else?
Tuesday, December 25, 2007
5 Personal Finance Lessons from National Lampoon's Christmas Vacation
Merry Christmas everybody! I hope you had a great day filled with fun, family and food. And, of course Christmas traditions.
One of our traditions is to watch watch National Lampoon's Christmas Vacation when we put up our tree. Although our tree has been up for weeks now, I wanted to divulge the secret financial lessons hidden like little presents within this hilarious movie. It's much deeper than what it seems.
5. Get your Christmas tree for free. While I wouldn't recommend trekking out in the middle of the woods and pulling the perfect tree up by its roots, Clark was on to something when he dragged his frozen family deep into the forest. Why pay $30 or more for a temporary decoration? In the past, my parents have chopped down a tree on their property and used that as our tree - a fun experience and free. The King and Queen of Debt at We're in Debt reuse the same tree every December and keep it in a pot outside the other 11 months of the year. Great way to make it last!
4. Help out others who have less. Clark and Ellen offered to buy some Christmas gifts for Rocky and Ruby Sue when Eddie and Catherine were unable to get them anything. There is always someone who has less than you and, though it's easy to feel bad about being in debt and not having any money, it's important to remember that there are others worse off. So shovel your elderly neighbor's driveway, donate some canned goods to the food bank or spend some time with a sick relative. It's easy to get a little caught up in the gift frenzy, but at the end of the day, it feels much better to have made a difference in someone's Christmas.
3. Don't let pride stand in your way. When Cousin Eddie confesses that his family has had to sell their house and live in the trailer, it's easy to feel bad for him. Until they mention that he hasn't worked in 9 years because he's "holding out for a management position." There's really no excuse for not finding some way to generate income to support your family when it's needed to pay the bills. Work a part time job, sell things on eBay, work freelance. It can be tough to swallow your pride, but much much better than losing your house.
2. Give what you can afford. Aunt Bethany shows up at the house on Christmas Eve with a Jell-O mold and her cat wrapped up to put under the tree. A little extreme, but on the right track for someone who is trying to save money. Re-gifting is a tricky business, but there are plenty of gifts you can give for very little cash. It all boils down to...
1. Spend only the money you have. In the grand mother of all financial lessons, Clark puts down a deposit on a new in ground pool - before he gets his Christmas bonus necessary to cover the deposit check. Then, of course, when the bonus doesn't come in as expected, he panics. Although the desire is strong to spend spend spend and pack under the tree with gifts, it's just. not. worth. it. to go through that kind of torture.
Merry Christmas! And if you find that you made some of these mistakes, well, there's always New Year's Resolutions. :)
One of our traditions is to watch watch National Lampoon's Christmas Vacation when we put up our tree. Although our tree has been up for weeks now, I wanted to divulge the secret financial lessons hidden like little presents within this hilarious movie. It's much deeper than what it seems.
5. Get your Christmas tree for free. While I wouldn't recommend trekking out in the middle of the woods and pulling the perfect tree up by its roots, Clark was on to something when he dragged his frozen family deep into the forest. Why pay $30 or more for a temporary decoration? In the past, my parents have chopped down a tree on their property and used that as our tree - a fun experience and free. The King and Queen of Debt at We're in Debt reuse the same tree every December and keep it in a pot outside the other 11 months of the year. Great way to make it last!
4. Help out others who have less. Clark and Ellen offered to buy some Christmas gifts for Rocky and Ruby Sue when Eddie and Catherine were unable to get them anything. There is always someone who has less than you and, though it's easy to feel bad about being in debt and not having any money, it's important to remember that there are others worse off. So shovel your elderly neighbor's driveway, donate some canned goods to the food bank or spend some time with a sick relative. It's easy to get a little caught up in the gift frenzy, but at the end of the day, it feels much better to have made a difference in someone's Christmas.
3. Don't let pride stand in your way. When Cousin Eddie confesses that his family has had to sell their house and live in the trailer, it's easy to feel bad for him. Until they mention that he hasn't worked in 9 years because he's "holding out for a management position." There's really no excuse for not finding some way to generate income to support your family when it's needed to pay the bills. Work a part time job, sell things on eBay, work freelance. It can be tough to swallow your pride, but much much better than losing your house.
2. Give what you can afford. Aunt Bethany shows up at the house on Christmas Eve with a Jell-O mold and her cat wrapped up to put under the tree. A little extreme, but on the right track for someone who is trying to save money. Re-gifting is a tricky business, but there are plenty of gifts you can give for very little cash. It all boils down to...
1. Spend only the money you have. In the grand mother of all financial lessons, Clark puts down a deposit on a new in ground pool - before he gets his Christmas bonus necessary to cover the deposit check. Then, of course, when the bonus doesn't come in as expected, he panics. Although the desire is strong to spend spend spend and pack under the tree with gifts, it's just. not. worth. it. to go through that kind of torture.
Merry Christmas! And if you find that you made some of these mistakes, well, there's always New Year's Resolutions. :)
Saturday, December 22, 2007
Where Have I Been?
Busy. Busytown, busyville, busy Vegas. Busy busy busy.
I know that this is a busy time of year for everybody. What I don't know is how they handle it all, keep sane, and sleep. I was doing so many things that I had to put something on hold for a little bit, and that something was the blog. :(
During the last 10 days, I began working on 3 new big accounts at job #1, worked past 11pm 4 times at job #2 (after a full day at job #1), shoveled 16 inches of snow out of two driveways, finished my Christmas shopping, made 78 truffles for various potluck events, wrapped all my gifts and went to 3 Christmas parties. So while it was fun, it was crazy.
Now things are settling down a little. I have a few days off work, most of the Christmas preparation is done, and I have time to breathe. For anybody who has been looking for new posts, I'm sorry and thanks for sticking around.
One thing I've noticed is how much work it is to stay frugal and within budget. I let things slide a little bit recently (more on that soon) and, while not devastating, my wallet has definitely noticed the lack of attention. I wonder if I'll ever be at a point where saving money is a no-brainer. Right now, if I'm not trying to save money, it seems to *poof* disappear.
I also have a lot of catching up to do with reading other blogs. Like when I was deep in the pits of credit card debt, I found that ignoring things that make me feel bad is a defensive tool. Reading other's frequently updated blogs made me feel bad about neglecting mine. And did I mention I was busy?
I am very very excited to get things back on track, and very very excited to see that there are still people who have stuck with me throughout my little lull in posting - thank you! More soon - promise. :)
I know that this is a busy time of year for everybody. What I don't know is how they handle it all, keep sane, and sleep. I was doing so many things that I had to put something on hold for a little bit, and that something was the blog. :(
During the last 10 days, I began working on 3 new big accounts at job #1, worked past 11pm 4 times at job #2 (after a full day at job #1), shoveled 16 inches of snow out of two driveways, finished my Christmas shopping, made 78 truffles for various potluck events, wrapped all my gifts and went to 3 Christmas parties. So while it was fun, it was crazy.
Now things are settling down a little. I have a few days off work, most of the Christmas preparation is done, and I have time to breathe. For anybody who has been looking for new posts, I'm sorry and thanks for sticking around.
One thing I've noticed is how much work it is to stay frugal and within budget. I let things slide a little bit recently (more on that soon) and, while not devastating, my wallet has definitely noticed the lack of attention. I wonder if I'll ever be at a point where saving money is a no-brainer. Right now, if I'm not trying to save money, it seems to *poof* disappear.
I also have a lot of catching up to do with reading other blogs. Like when I was deep in the pits of credit card debt, I found that ignoring things that make me feel bad is a defensive tool. Reading other's frequently updated blogs made me feel bad about neglecting mine. And did I mention I was busy?
I am very very excited to get things back on track, and very very excited to see that there are still people who have stuck with me throughout my little lull in posting - thank you! More soon - promise. :)
Wednesday, December 12, 2007
Update & 7 Random Weird Things About Me
This week has been a crazy one! Work exploded all of a sudden and between that and Christmas, I have been overwhelmed. The good news is that business is up, which means more commissions! The great news is that there's about a 70% chance my commission backslide will be remedied and I will no longer owe my company the $2500. I have done all I can and I'm just crossing my fingers now.
In other news, I have been tagged by wealthy_1 over at Collecting my Cash for a 7 random weird things meme! I am definitely weird, so this should be easy :).
1. I have a wicked combination Boston/RI accent from growing up in the Ocean State and going to college in MA. Obviously, it is most prominent when I am angry, talking fast, or drinking.
2. I played rugby in college. If anyone knows anything about rugby, I was a second row, which is quite possibly the least glamorous position.
3. I like to sing in my car, dance & gesture wildly. One time, at a red light, 2 kids saw me, pointed and laughed hysterically. That was a little embarrassing.
4. I have different voices for each of my cats and I have conversations with them, speaking in my voice and then their voice. Usually the conversations are about Pounce or cat toys.
5. Following along with wealthy_1, I was caught cheating when I was in 3rd grade on a reading test. I was the one who knew the answers, and my pal Steve used to give me a pencil for each answer he took off my paper. He had some sick pencils. I think he still owes me a few.
6. I skipped 2nd grade, graduated high school when I was 17 and college when I was 20. People always seemed shocked that I wanted to graduate early instead of taking fake courses and bar hopping 7 days a week.
7. Penguins are my favorite animals. My PJ's are almost exclusively penguins, I have a penguin calendar, stuffed penguins, penguin candle holders... etc etc. The list goes on and on.
I am supposed to tag 7 more people, but I know how crazy everything is right now, so instead, leave a comment of one weird thing about you! Of course, if you want to play, then consider yourself tagged!
In other news, I have been tagged by wealthy_1 over at Collecting my Cash for a 7 random weird things meme! I am definitely weird, so this should be easy :).
1. I have a wicked combination Boston/RI accent from growing up in the Ocean State and going to college in MA. Obviously, it is most prominent when I am angry, talking fast, or drinking.
2. I played rugby in college. If anyone knows anything about rugby, I was a second row, which is quite possibly the least glamorous position.
3. I like to sing in my car, dance & gesture wildly. One time, at a red light, 2 kids saw me, pointed and laughed hysterically. That was a little embarrassing.
4. I have different voices for each of my cats and I have conversations with them, speaking in my voice and then their voice. Usually the conversations are about Pounce or cat toys.
5. Following along with wealthy_1, I was caught cheating when I was in 3rd grade on a reading test. I was the one who knew the answers, and my pal Steve used to give me a pencil for each answer he took off my paper. He had some sick pencils. I think he still owes me a few.
6. I skipped 2nd grade, graduated high school when I was 17 and college when I was 20. People always seemed shocked that I wanted to graduate early instead of taking fake courses and bar hopping 7 days a week.
7. Penguins are my favorite animals. My PJ's are almost exclusively penguins, I have a penguin calendar, stuffed penguins, penguin candle holders... etc etc. The list goes on and on.
I am supposed to tag 7 more people, but I know how crazy everything is right now, so instead, leave a comment of one weird thing about you! Of course, if you want to play, then consider yourself tagged!
Subscribe to:
Posts (Atom)