Wealthy Turtle

How Does a Reverse Mortgage Work?

by

If you’re 62 or older and short on cash, you might be considering a reverse mortgage.  But before you jump in and sign the paperwork, it’s important you understand how a reverse mortgage works.

When I was young and just out of college, my parents took out a reverse mortgage on their home.  My dad had suffered a debilitating stroke and my mom suffered from congestive heart failure so neither of them were able to work.  I pitched in where I could but I was young and not making much money myself, so they were basically living off of Social Security and a very small monthly pension.

They had significant credit card debt and the mortgage alone ate up almost half their monthly income. Plus, like many people their age they had to deal with costly medical expenses.  I’m sure you know how quickly

Things had always been tight even when my dad was working full-time, but now that their income was reduced the situation was untenable.  In fact, it was downright desperate.  They were quickly spiraling deeper and deeper into debt and there seemed to be no way out.

One day my brother-in-law read an article about reverse mortgages and we started doing some some research.  We considered the pros and cons of reverse mortgages and decided it was the only solution that would alleviate my parent’s cash flow problems and allow them to stay in the house they loved.

To be clear…I am not recommending you go out and take a reverse mortgage on your home.  There are downsides to reverse mortgages and just because it was mostly good for my parents doesn’t mean the same will be true for you.  Do your due diligence, consider all options available to you, and talk it over with someone you trust before committing to anything.

How Does a Reverse Mortgage Work?

With a typical mortgage, you borrow money from a lender and then make monthly payments to pay them back with interest.  As you pay down your loan balance your equity in the home increases.

With a reverse mortgage you’re borrowing money against the equity you already have in the home, so it is kind of like a home equity loan in that way.  The key difference is that you won’t be making any monthly payments.  You generally don’t have to pay it back for as long as you live in your home.  The loan will be repaid when you die, sell the house, or when the home is no longer your primary residence.

Put another way, with a traditional mortgage you use debt to convert your income into equity.  But a reverse mortgage is the opposite.  You use the equity you already have in your home to create income.

That income can be paid out in the form of fixed monthly payments, a single lump sum payment, a line of credit, or some combination of the three.  For example, you might want to take a lump sum to wipe out your credit card debt and then keep a line of credit available in case you need to tap into it.

Before you can apply for a reverse mortgage you’ll need to meet with a counselor from an independent and government-approved housing counseling agency.  The counselor will explain how reverse mortgages work, what they cost, their financial implications, and possible alternatives.

Things to Consider Before Signing On

While a reverse mortgage may seem perfect to cash-strapped seniors who are struggling to pay their bills, there are some important things to consider before moving forward.

  • Reverse mortgages are expensive. Lenders usually charge a loan origination fee, a mortgage insurance premium, and other closing costs.  You can roll those expenses into the cost of the loan but keep in mind that the higher the fees the more home equity you’ll be giving up.  Be sure to shop around and compare lenders because interest rates and fees can vary from one to the next.
  • The amount you owe on a reverse mortgage increases over time.  Since you’re not making any payments to reduce the loan balance, the amount you owe will continue to increase as interest accrues on the loan.  You could end up owing far more than the amount you actually borrow.  In fact, you could end up owing more than the house is worth.
  • A reverse mortgage can leave heirs empty handed.  You’ve probably spent decades paying down your mortgage with the intention of one day leaving it to your children.  But a reverse mortgage slowly eats away at your equity and over time you may end up owing more than the house is worth.  If that happens there will be nothing left for your heirs once the house is sold to repay the loan.
  • Make sure there is a nonrecourse clause.  Since the loan balance on a reverse mortgage grows with time it is possible to owe more than the house is worth, particularly if home values drop.  A nonrecourse clause will prevent you or your heirs from owing more than the value of the home when it is sold.
    For example, let’s say the balance of your reverse mortgage loan is $170,000 but the house only sells for $150,000.  With a nonrecourse clause in place you or heirs cannot be held liable for the remaining $20,000.  Nonrecourse clauses are pretty standard, but it is definitely something you want to confirm before signing on the dotted line.
  • You’ll still have plenty of home-related expenses.  No matter what your equity situation is, you’ll still retain title on the home.  You’re still responsible for paying property taxes, homeowner’s insurance, association fees, utilities, and other expenses.  If you fail to pay property taxes or maintain condition of the home the loan may become due.
  • Make sure BOTH spouses are listed on the deed.  Let’s say you and your husband take out a reverse mortgage and only his name is listed.  When he dies, the loan becomes due and you’d have to pay back the loan in full if you want to stay in the house. As explained in this story from the New York Times, this happens all too often to unsuspecting widows who are then forced out of their homes.
  • Beware of shady sales pitches.  A reverse mortgage is a complicated financial transaction and there is no shortage of scammers and shady salesmen ready to take advantage of senior citizens.  They mislead seniors about the true cost of reverse mortgages, or they make it seem like free money and that they can never lose their home.  If you feel uncertain or pressured to complete the deal, walk away and take your business elsewhere.  And consider seeking the advice of a family member or trusted friend.

If you are a senior who is currently house rich and cash poor, a reverse mortgage may be an effective option that will increase your cash flow and improve your quality or life.  But you should carefully consider the reverse mortgage pitfalls above before taking any action.

How to Avoid Feeling Isolated and Lonely When Working from Home

by

Many people dream of a day when they can work for themselves and do that work from home.  If you’re a parent who wants to combine both caring for your child and having a career, working from home may seem to be the best of both worlds, even if you do have to juggle finding time to work while taking care of the kids.

What many people don’t think of until they’re already working at home is the sense of loneliness they may feel.  I have been a work at home mom for two years now, and while I don’t miss my old job or place of employment, I do sometimes miss the camaraderie and friendships I had with my coworkers.

If you are working from home, there are steps you can take to avoid feeling lonely:

Know Yourself

Are you an outgoing person or an introvert?  An introvert will likely have a much easier transition to working from home.  If you’re an extrovert and get your energy from being with other people, setting up social connections is important or you may be miserable working from home.  Take steps to have social connections in place before you take the leap to working from home.

Meet with Former Coworkers

Just because you have left your traditional job doesn’t mean you have to cut all connections.  Once a month, meet a former coworker for lunch or a drink after work.  You’ll get a break from the kids and the home, and you’ll be able to socialize with old friends and catch up on the work environment.

Find Other Ways to Socialize

If you’re also caring for kids, make time to take the kids out in the community.  Taking the kids to story hour at the library or to a kids’ dance or music class can be a great way to meet and mingle with other parents.

Make Online Connections

Whatever field you are in, take the time to make online connections.  If you are a blogger, for instance, find groups where bloggers in your field hang out.  Join the forum and become an active member.  When I first started staying home, I was a member of a frugal mom site, a personal finance bloggers group, and a writer’s group.  Each offered different things and helped me connect.  Now I’m not active on the frugal mom’s site, but I am still active on the other two forums.

Work Outside the Home

If you can hire a sitter for a few hours, why not change up your environment and work somewhere else?  I frequently write at Starbuck’s on the weekend, as does another freelance writer who writes about wine.  I didn’t know him last year, but because we always sit in the same spot, which happens to be next to one another, we slowly got to know one another.  Even that brief interaction can help ease loneliness.  Besides, a change of scenery is good for you.

If you work from home, you likely are glad to be rid of two or three hour meetings and office politics.  Working from home offers many opportunities and savings.  It can be truly enjoyable if you can sidestep the loneliness some people feel.

What is your favorite way to avoid loneliness when working from home?

The Difference Between Income and Wealth

by

Increasing your income is great.  But in order to build true wealth you need to use that income to acquire assets than increase your net worth.

Do you ever feel like you just can’t get ahead?  You want to start putting money away and investing for your future but there never seems to be anything left after you pay all your bills.  If only you could make just a little more money you’d be in much better shape.  Maybe when you get your next raise you can open up a brokerage account or invest in a mutual fund.

Oh that’s right…you said that last year.  And the year before.  But even with those raises you still never had any money left over.  There was always some unexpected expense that came up, or the additional income just seemed to vanish into thin air and you’re not really sure where it went.

You my friend have fallen into a trap that all too many of us find ourselves in.  You’re mistaking a high income with wealth.  You assume that if you could just earn a higher income, everything else would take care of itself.  But as you’re about to learn, there’s a big difference between income and wealth.

What Does Wealth-Building Really Mean?

When I first read The Millionaire Next Door I realized there was a big difference in mindset between a typical millionaire and myself.  One point that really made me stop and think was that “affluent people follow a lifestyle conducive to accumulating wealth.”  They allocate a considerable amount of time and energy towards building their wealth.

They focus on saving their money and investing in assets that generate income and appreciate in value.  That could include real estate, stocks or a small business.  With each asset they acquire, their net worth increases.

Most people do the exact opposite.  They spend all of their income (and then some through credit cards and loans) on status symbols like 70 inch flat screen TVs and expensive sports cars.  While these types of purchases can be rewarding and make you feel good, they erode your debt instead of building it.  The minute you open the box or drive it off the lot it is worth much less than you paid for it.

As your salary increases you just increase your spending instead of taking the extra funds and investing them.  That’s why a higher income doesn’t necessarily equal wealth.  Your neighbor down the street with the new Mercedes and the expensive landscaping may be up to his eyeballs in debt and living paycheck to paycheck, while the guy down the street with the old pickup truck in his driveway could be a millionaire.  Appearances can be deceiving.

So do yourself a favor and stop trying to keep up with the Joneses.  Because like your neighbor with the Mercedes, they may not be as well off as they appear to be.  Instead of following them to the poor house, forge your own path to financial freedom.

Is the Costco Membership Fee a Bargain or a Scam?

by

Is the Costco Membership Fee Worth It?

Looking for a conversation starter for your next dinner party or family function?  Just ask everyone what they think of the Costco membership fee and then sit back and enjoy the show!

You might think I’m joking, but I’ve witnessed several arguments (both online and off) about Costco that quickly escalated beyond reason.

It seems half the population loves Costco and the other half despises it.  I’m not sure why people get so worked up when talking about warehouse club stores like Costco, Sam’s Club, and BJ’s but let’s try to figure it out together.

According to the Costco card in my wallet I’ve been a member since 2002.  Some quick math tells me that I’ve dropped over $500 on Costco membership fees since signing up.  The current price is $55 for Gold Star Members but I think it was around $45 when I first became a member.

That’s a lot of money to spend just for the privilege of shopping and spending even more money at the store.  In fact, it sounds a lot like the personal seat licenses (PSLs) many sports teams force their fans to purchase just for the right to buy tickets.

Yet I and over 37 million other households happily pay our annual Costco membership fee and continue shopping there, so obviously a good portion of the population feels the value they receive is worth more than the cost of admission.

How Much Does the Costco Membership Fee Cost?

There are three different membership levels…

Gold Star Membership ($55) is the basic household membership which is perfect for the average family to do their shopping.  You get two membership cards so you can keep one for yourself and give the other to your spouse.

Business Membership ($55) allows business owners and managers to purchase products for business, personal, or resale use.  This also comes with two cards so if you own a small business you can keep one card for yourself and let one of your employees use the other.  You also have the option of adding up to six additional cards if you need them.

Executive Membership ($110) is an upgraded version of either the Gold Star or Business membership levels.  It comes with two cards, and you will also earn a 2 percent reward on purchases.  Obviously, you’d have to spend enough money to make your rewards worth the added cost. To be precise, you’d need to spend at least $2,750 ($230 per month) to cover the added cost of executive membership.

That may sound like a lot but as a Costco member with a growing family I don’t think that’s much more than we currently spend.

Executive membership is a really good deal for small business owners who purchase products to resell them.  For example, there’s a hot dog stand not far from my office and the woman who owns it does much of her shopping at Costco.  She can purchase a 32-count package of Coca-Cola soda for just $7.99 (about a quarter a can) and then resell them for a dollar each.

The more you spend the more your two percent rewards will add up, but there is a limit.  The reward is capped at $750 per year.  Another thing to keep in mind is that the reward is in the form of a Costco reward certificate, not cash.  That means it can only be used inside Costco itself.  While that is certainly a great benefit to regular Costco shoppers, a cash reward that can be used anywhere would be more flexible.

Why Does Costco Charge a Membership Fee?

Costco follows a different business model than typical supermarkets and retail outlets.  While other stores earn all their revenue from the spread between their cost of goods sold and their sales, Costco relies on their membership fees to maintain profitability.

Costco’s goal is to provide the lowest price possible for their customers.  That means fewer sales people on the floor and no shopping bags to lug home your stuff.  But it also means prices that are often significantly lower than you’ll find elsewhere.  There are several items (paper plates and cups for parties, Premio sausage links, grated Parmesan cheese, GoGurts) that my family only purchases at Costco because they are so much cheaper than at other stores.

Costco does put their money where their mouth is and they are even willing to drop a product if they can’t provide the best possible price to their customers.  In 2009, they actually pulled Coca-Cola products off the shelves because they felt the wholesale prices were too high.  Within a month Coke was back on the shelves at a new lower price.

“Costco is able to offer lower prices and better values by eliminating virtually all the frills and costs historically associated with conventional wholesalers and retailers, including salespeople, fancy buildings, delivery, billing and accounts receivable. We run a tight operation with extremely low overhead which enables us to pass on dramatic savings to our members.”  -Jim Sinegal, Costco’s Co-Founder and Director

Common Costco Complaints

There are a handful of arguments that Costco haters like to use to criticize the company.  I’ll list some of the common complaints about Costco and my thoughts on each.

  • Membership Fee.  Yes, I wish I didn’t have to pay Costco’s membership fee but when I add up all the money I save throughout the year I still come out way ahead.  How much you save depends on how much you spend.  Large families and small businesses can really take advantage of the low prices, while single shoppers may not see as much benefit.
  • No bags to carry stuff home.  This doesn’t bother me at all.  Many of the packages are too big for bags anyway and it is easy enough to bring along a few reusable bags for the smaller stuff.   Not providing shopping bags helps keep prices down and it is environmentally friendly too.
  • Lack of employees on the floor…good luck finding help if you need it.  If you’re looking for someone to walk around and show you where to find everything, Costco isn’t for you.  But personally I don’t like being bugged every 15 seconds by someone asking if I need help.  I just want to get in, grab what I need, and get the hell out as fast as possible.
  • You’re forced to buy in bulk.  Savvy shoppers know that buying in bulk is usually cheaper than purchasing smaller versions of the same item.  Of course, you won’t save any money if products go bad before you have a chance to use them.  Larger families have an advantage here since they’re more likely to use their entire purchases.  But smaller families and individuals can always shop with a friend or neighbor and then split up the bulk packages at home.
  • Prices are not always better than other stores.  In my experience, the everyday prices at Costco are better than regular prices at other stores.  Of course, there are times when another store could have the same item at a cheaper price.  This is especially true if the item is on sale and you have a coupon.  It’s always good to consider the per unit price when shopping and compare prices before just assuming Costco is cheaper.

What’s your opinion?  Are you a Costco member?  Do you think the Costco membership fee is worth it?

The Minimalist Guide To Car Detailing: Leave the Pros Out of It

by

Chances are if you’re reading this, then saving money appeals to you. Whether you pinch pennies or just watch the bottom dollar, car maintenance is bound to be one of those things you loathe. Regular detailing and deep-cleaning of a car can help it hold its value better for resale later. If you’re not planning to resell your car, keeping it in top-notch condition is still worth the effort. Think about it, who really wants to drive in a car that holds a strong resemblance to a dumpster?

Fortunately, there are ways to clean your car and take pride in it without busting the old wallet.

All that said, it is important to know when to seek the help of a more, ahem, qualified set of hands. If you’ve got a nasty-looking scratch or issue with your paint that could lead to rust, take the car in and have the paint touched-up. It’s much less expensive to do this now than to wait and end up fixing a rusted-out spot later.

Secrets of a Car Detailer

In an interview with Popular Mechanics, Mike Schultz, the head of new products at Turtle Wax advises you to “think of the surface of your car as you would your face. It needs to be properly taken care of in order to have a healthy glow.” Give your car that healthy glow and keep yours by not stepping on the toes of your own financial plans.

Air compressors are all the rage in car cleaning. Use the pressurized air like you would a stream of water. Move all the loose muck and grime in carpets and upholstery to where it can easily be vacuumed out. Use a stiff scrub brush to help get the dirt moving. The carpets and upholstery can hold a lot of not-so-awesome smells and getting the dirt out of them will help clean out your car so that when you put an air freshener in, it doesn’t mask bad smells, but puts good smells into an otherwise neutral zone. For leather seats, use a vacuum to get any loose dirt out of the nooks and crannies, and then wipe them down with a conditioning cleaner that has aloe in it.

Don’t put the air compressor away yet, once you’re done with the carpets and upholstery, use the compressor to clean out the air ducts and vents. That stinky, musty smell you get sometimes when you turn on the air can often be eradicated by pointing the nozzle of your air compressor at the walls of the ducts (just inside the vent) and getting rid of stuck-on dirt and grime. If you haven’t done so in a while, you might consider removing the air filters and cleaning them out with your trusty air compressor.

See, this is the deep-clean you would normally pay through the nose for, but you’re taking care of things at home so you can take the money you saved and head off in your fancy-schmancy clean car for something fun.

Next step is taking care of the wheels. Clean them with a non-acid-based cleaner. While pros use acid-based cleaners, this might not be best at home since you don’t really want to be paranoid about splashing acid on your car and corroding the paint away. Stick to a cleaner that won’t threaten to undo all your hard work. Once the wheels are nice and clean, wash the car by hand. Spend the extra $5 to buy a car-specific soap. You want to make sure the soap you use on your car won’t eliminate the necessary protective coatings and such that your paint needs. Get a 2-in-1 wash and wax formula that will help keep your car in great shape.

Once you’re done, consider squeegeeing the water off. There are car squeegees and chamois that will do the trick. Don’t just take her out on the road and air-dry her. As fun as that may be, there’s still going to be dirt stuck on your car just from washing it, so taking the time to remove as much as possible will make it more difficult for new dirt to find a place to stick.

Warning: This May Be Habit-Forming

If you take the time and effort to clean your car out all the way, chances are, you’ll be a bit more vigilant at keeping it clean. The next time you’re tempted to leave a Starbucks cup in the cup-holder, or ignore a piece of trash on the floor, you’re likely to think twice. It’s possible you’ll begin to find yourself in the driveway spending quality time with your baby, um, I mean car, more often. While you might appreciate the cleanliness of a paid-for job, it’s a whole new feeling when you do it yourself. Not to mention, there’s the added bonus of the money you saved.

What do you do to keep your car clean while saving a few dollars?

Capital One 360 Online Savings Review

by

If you’re looking for an online bank that offers interest rates far better than any brick and mortar bank plus a bunch of other customer-friendly features, I strongly recommend you consider opening a Capital One 360 savings account.

I’ve had a Capital One 360 account for over two years now (back then it was called an ING Direct Orange Savings Account, until the company was acquired by Capital One).   Setting up and funding a new account  is a piece of cake and I couldn’t be happier with their services so far.

Why I Love My Capital One 360 Savings Account

I don’t know what took me so long to open up an Capital One 360 online savings account.  I had read dozens of posts from various personal finance bloggers recommending Capital 360 savings accounts and I certainly wasn’t happy with the pathetic interest rate I was earning from my brick and mortar bank.  But laziness kept me from diving in and opening up an online savings account.  And that laziness cost me hundreds of dollars in interest!

So I finally decided to take the plunge and open up a high yield savings account online and I haven’t looked back since.  Something tells me this is going to be a long-term relationship.  Here are just a few of the reasons I have fallen so hard for Capital One 360…

1.  Some of the best interest rates on savings you’ll find anywhere.  With interest rates at historic lows you can’t expect to make a killing with a simple savings account.  My brick and mortar bank was only paying a measly 0.05% (they really forced themselves!) but my Capital One 360 rate is much higher than that!  In fact,  it is about 15 times higher interest earnings than most traditional banks are offering!

2. Sub-accounts make saving for different purposes a breeze.  I don’t know about you but I find it a lot easier to save money when I have a specific goal to focus on.  I also like to keep my savings in different “buckets” so my emergency fund doesn’t get mixed in with my vacation fund.  Capital One 360 makes this super-easy.  Once you set up your initial account you can quickly set up as many sub-accounts as you need to help you save for specific purposes.  Plus you can give each sub-account a nickname to keep them organized and separate.

We have multiple Capital 360 savings accounts that we use for our emergency fund, vacation fund,  property tax fund and income tax fund (since more of my income is coming online these days and that isn’t taxed like an employer-issued paycheck is).  I love being able to log in and instantly see a breakdown of our various accounts and balances.

3. You can set up accounts for your kids too.  In addition to the various sub-accounts I have set up to save for specific purposes, I also created separate accounts for my three children.  It’s never to early to start teaching kids about money.

All the money they’ve received over the years for birthdays, holidays, etc. is now earning some actual interest.  We also use their online accounts to pay their allowance.  They receive half their allowance in cash to use as they see fit while the other half is deposited into their kids savings account.  It’s a great opportunity to show them how their balance grows both with new deposits and the power of compound interest.

4. Automatic transfers make saving money easy.  I’m a big believer in paying yourself first, because if you wait until after you pay all your bills to put money in savings…what do you do if there is nothing left to save?  Capital One 360 allows you to set up automatic transfers into your savings accounts so you can pay yourself first before the money even has a chance to be spent.

5. Integration with Sharebuilder.  Putting aside money in high yield savings accounts is obviously a great way to secure our future.  But we’re looking to take the next step and start building some serious wealth building too.  Capital One also owns Sharebuilder, an online broker that allows you to invest in stocks, mutual funds, and ETFs.  Their automatic investing program lets me buy stocks dirt cheap, and the money comes out of my account automatically each month so I can be sure I’m paying myself first again.  Plus they allow you to buy fractional shares and reinvest dividends automatically.

Capital One 360 isn’t the only online bank that offers superior interest rates, but so far I’ve been really happy with them.  My Capital 360 savings and investment accounts to continue to grow and I recommend them to all my friends who are looking for a way to get more bang for their buck.

6 Ways to Save Money While Job Hunting

by

In today’s economy, recent college graduates are having difficulty finding jobs. The job market is becoming more and more competitive. With student loans to pay, the pressure to immediately find a good paying job can be enormous. In the meantime, the weeks or months that you spend job hunting can drain your finances. Here are six ways to save money while you are handing out resumes and interviewing with companies.

Sign Up for Free Job Boards

The internet has helped a lot in saving time and money. Instead of physically going to the company to hand over your resume and application form, most companies nowadays use the internet to do their recruiting. They advertise on various job boards. Most of these services allow job hunters to sign up for free. Subscribe to their newsletters so that you get the latest news and job listings. Also visit the company websites one by one. Some of the bigger firms have their own recruitment system on their websites.

Look for Community Career Centers

You can find a variety of groups that are concerned with the youth employment. Some of them have established community career centers which aim to help new graduates with their job hunting. These are usually NGOs or local government funded programs. Try to locate a center near you and see what services they have to offer. At the very least, you will be able to get some job listings, and maybe free internet access and photocopying services. The well-funded centers will probably offer some training programs that you can join for free or for a very minimal fee.

Carpool with Friends to Recruitment Events

Transportation costs can add up if you go to several job fairs each week. This is especially true if these events are outside your hometown. To save on transportation costs, gather a group of friends who are also looking for jobs. Plan to go together so that you only take one car. That’s a big savings in gas and parking fees. If you want to save even more money, pack your own lunch if it’s a whole day affair. That would be cheaper than eating out at the restaurant.

Keep Your Receipts

It is inevitable that you will be shelling out some cash to pay for various expenses while looking for a job. They may include but are not limited to a buying a business suit and briefcase, internet subscription, photocopying and printing, and transportation costs. You should never forget to keep your receipts and file them at home. Some of the expenses that you incur while looking for a job can be tax deductible. Familiarize yourself with IRS Publication 529 to be to determine which items can be deducted from your income tax.

Negotiate to Pay in Installments

One of the best ways to speed up your job search is to use an agency or a service that will help you match your skills to job prospects and secure job interviews. Another option is to hire a career coach that will help you rehearse for your interviews by engaging in role play. These kinds of services can help you immensely, but they can cost a lot of money. If you are hell bent going on this route, negotiate for an installment plan to make it easier on your wallet. Try to see if you can start paying once you receive your first paycheck. That will give them incentive to help you land a job as quickly as possible.

Take Free Internet Courses

While job hunting, a big chunk of your time is spent waiting. Spend your time wisely by being productive. Nowadays, there are a lot of free courses that can be taken online. You can take an online training module that will develop new skills that potential employers want to see. You can also search online for resume writing tips to improve your resume while you wait.

Looking for a job is hard on your wallet. How did you save money while you were out job hunting?

5 Ways to Work From Home with Young Children

by

While more and more parents are making the decision to stay home and care for their children while the kids are young, such a decision is not made lightly.  Living off one income in today’s economy can be tricky at best, impossible at worst.

The stay at home parent can ease the financial strain by doing some work at home.  I quit my full-time job 3 years ago to stay home because the cost of day care for two children under two would have taken most of my salary.  For the last two years, I have worked from home while caring for my kids and have enjoyed it immensely.

While working from home AND caring for your children is often glorified, the truth is that doing both jobs requires a careful balancing act.  Here are some strategies I have used to successfully work from home while caring for toddlers and preschoolers.

1.  Get up before everyone else.  Try to get up 30 to 60 minutes before everyone else.  This gives you time to clean up, get dressed, and check e-mail or do another important task you want to get done first thing in the morning.

2.  Play with the kids first.  Most kids want their parent’s attention.  If you take time first thing in the morning to play with your kids and give them your time, they will likely happily play by themselves later, allowing you a 30 to 60 minute window to do work.

3.  Let them watch their favorite television show and do your work then.  My girls love Caillou, which happens to be on right after lunch between noon and one.  I let them watch the show for an hour.  They are riveted to the television, and I can sit with them and do work with minimal interruptions.  (It’s your choice how much television you want to let them watch, but this hour is all we allow the girls.)

4.  Hire a babysitter if you need to.  As your work load increases, you may find that you sometimes need to hire a babysitter so you can have undisturbed time.  I didn’t have a babysitter the first year, but now that business is picking up, I have a sitter who comes to the house 4 to 8 hours a week, depending on my workload.  The girls enjoy having her here, and after she leaves, I can focus on the kids because I had a chunk of time to finish my work.

5.  Work on the evenings and weekends.  After the kids are in bed, you may have another hour or two every night to work.  Also, if your spouse is agreeable, you could spend some time doing your work on the weekend while your spouse plays with and cares for the kids.

Sometimes juggling work and home responsibilities can be difficult, but I love to work from home.  My flexible schedule allows me to spend time at my son’s school for special events as well as to care for my younger two children and save on the cost of daycare.

What are your favorite strategies for getting work done if you watch your kids and work from home?

Think Eating Healthy Is Expensive? Think Again

by

There’s a myth in this country that eating healthy is expensive as is getting in shape.  However, just as there are low cost alternatives to joining a gym to get in shape, there are also low cost ways to eat healthy on a budget.

But first, let’s dispel the myth that eating healthy is expensive.  If you buy your family a crockpot meal from the freezer section that you simply dump in the crockpot, you’ll likely pay $6 to $8.  However, those meals are small, and if you have a family of 4, you’ll likely need two.  You’re now looking at $12 to $16 to feed your family, and that’s assuming that you don’t eat anything else.

Compare that to a meal from scratch using fresh, organic ingredients.  You could buy a bunch of organic Swiss Chard for approximately $2 to $3.  This is the vegetable that keeps giving; there’s enough in a bunch to serve as an ample side for a family of 4.   Then, buy a 5 lb. bag of organic potatoes.  These will likely run you about $5, but you can use just 2 pounds to make homemade french fries for $2.  Add in some organic chicken breasts for $8, and you are now paying $12 for your home cooked meal.

The difference is that you are eating healthy, nutritious organic food with no chemical additives for the same price as a factory made meal filled with chemicals and ingredients that aren’t very good for you.

If you buy conventional Swiss Chard, potatoes and chicken instead of organic, you will be able to serve the same meal for much less, likely $8 or less.

Eating healthy doesn’t have to be more expensive.

Here are some other ways you can gradually change your diet to more natural, less processed food, without seeing your grocery budget go up significantly:

1.  Buy vegetables that are cheap.  Things like kale, Swiss Chard, spinach, cabbage, carrots, celery and potatoes can be purchased at very reasonable prices, and the quantity is abundant.  You can make at least two meals out of a head of cabbage.   Many of these products are also high on the ANDI scale (which stands for Aggregate Nutrient Density Index and measures how many nutrients a food has).  The higher the ANDI score, the better.

2.  Buy from a CSA.  CSAs (which stands for Community Supported Agriculture) are popping up all over the country.  You buy straight from the farmer (often an organic farmer).  You pay upfront, say between March and June, for 26 weeks of produce.  In return, the farmer delivers produce from his local farm to you every week during the growing season, usually between June and late October.  Often you will get more than you can consume in a week, so you can freeze some for the fall and winter months.  Generally, the price is much cheaper than the grocery store.  You can find a CSA by looking at localharvest.org.

3.  Take advantage of Recyclebank.  Recyclebank gives you points for doing tasks related to living a “green” life.  My favorite way to use those points is on coupons for organic products and produce.

Eating healthy, nutritious, minimally processed foods doesn’t have to be more expensive than eating factory made food filled with additives.  If your New Year’s resolution is to become healthier, taking a close look at the food you buy is a step in the right direction.

4 Exercise Alternatives to Joining the Gym

by

How have you been doing with your New Year resolutions?  The new year is a time when millions of people swear off their bad ways.  No more junk food, no more lack of exercise.  This is the year you will eat healthy and get in shape.  At least, that is what many people tell themselves.  And then they waste a lot of money by rushing out to join the gym.

Gyms are in business to make money, and one way they do this is by requesting (or requiring, depending on the gym), that people sign up for the year with automatic deposit.  They know the majority of people who flock in to sign up in December and January won’t be there by March or April, but they will still be taking out your monthly payment each month.

If you want to avoid this fate, there are plenty of ways you can get in shape for much less than the gym charges:

1.  Buy used exercise equipment.  If you have some extra space in your house, why not buy your favorite piece of exercise equipment to use at home?  Then you don’t have to get out in the cold to go to the gym, and you don’t have to fight the crowds or stand in line waiting for your favorite machine.  When you are done exercising, you can take a shower in your own home.  Bonus!

A quick look on my local Craigslist shows treadmills available for $50 to $100, and a nice exercise bike for $100.  This sure beats how much you will pay for a one year gym membership, and don’t forget that you can negotiate the prices on Craigslist.

2.  Buy exercise DVDs.  There is no need to take expensive exercise classes at the gym.  Simply buy a few exercise DVDs and work out at home.  If you have a specific choice, you can buy it at the store, but if you are not fussy about the workout program, you can find exercise DVDs on Craigslist for as little as $2 to $4.  At that price, you can buy several, and it will still cost less than one month at the gym.

3.  Take a class through the Wellness Center at the local hospital.  Many hospitals offer Wellness Programs that include classes on nutrition as well as exercise classes.  Choices often include aerobics, yoga, meditation and tai chi.  These courses often only cost a few dollars per session.  Likewise, your local community center may also offer different exercise classes.

These classes are a great alternative to the gym because you still get to go out and socialize with other people.  They are also a good choice if you lack the discipline to work out on your own at home.

4.  Go for a walk.  If you live in temperate area, you should be able to walk all winter long.  Walking is easy on the joints and an exercise that most anyone can do.  All you need is a good pair of shoes.

Getting in shape in 2013 is a great goal and one you should pursue.  However, don’t feel obligated to make a full year commitment to the gym.  There are plenty of other ways to get in shape and exercise that will only cost you a small investment, saving you hundreds of dollars over the course of a year.