Kay Iscah's Blog, page 16

2 Money Videos for the price of one....(free for you)

A 5 Minute Money Talk "On Talking"

I decided to make my first Money Talk video on talking about Money with your family. I think I'm getting better at these, but I'm gonning to start working from an outline.

One tip that I hinted at but maybe didn't say as expressly as I would like in the video is that transparency can help encourage transparency. If you can become comfortable about your own finances enough to talk freely about them with those you love/trust, that helps them speak more openly in return. If you feel awkward asking your parents about their will, maybe consider researching what you need to set up for the event of your own death and use that as a conversation starter. For instance I set up my bank accounts as PoD (payable on death) so my parents could get quick access to my accounts to cover funeral expenses, also named them beneficiaries to my life insurance.

Just to show I practice what I preach. Here's my nephew and me talking about money:

5 Minute Money Talk - Introduction

I now have a vlog.  I've been planning these videos for a while, but could never find the time to figure out the scripting, screen graphics, and backgrounds, etc. that I wanted to do, so I've gone with a rough less scripted format.

Please let me know if posting videos causes any slow loading issues for any of you...I may stick them behind a cut in that case.

$1 Meal Plan: Breakfast #3

I read a fantastic book this last week.  Make the Bread, Buy the Butter by Jennifer Reese.  It's the often hilarious account of a lady who lost her job and tried to tackle the question of what's truly best to do by scratch for the modern suburbian.  It boasts about 120 from scratch recipes, some truly fascinating food trivia and info, rates each effort by hassle, price comparison, and her opinion if you should make it or buy it.  While you can treat it like a reference book/cookbook, I think it's very much worth just checking out from the library for a one time read through, entertaining and informative.

Reese is far more of a foodie than I am and gifted with a green thumb and knack with animals I just don't have.  So for the yardless single without a family to eat the foods with a short shelf life, many of her "make" recommendations I would still suggest buying.  Reese herself points out that food prices are constantly in flux and vary by area and season, so price comparison are only intended to reflect her experience and act as a general guideline.

But in general bread is a good place to start your scratch experiments.  Basic breads (like pancakes) are much easier and require less space or equipment than many of her other experiments.  In most cases, it'll probably save you a few pennies too.  Reese weighs a lot of factors, but in terms of being frugal, she made a very good case for growing your own herbs.  Even yardless singles can probably set up a small window box herb garden without a massive amount of effort.

In her book, she compared from scratch pancakes to frozen.  I was hoping she would mention pancake mixes too but sadly no.  I like pancake mixes and their semi-scratchness which makes them easier to tailor for small batches.  The above meal was fixed with a mix, but yeah, you should at least try scratch pancakes.

Breakfast #3 Breakdown:

.13 Aunt Jemima complete pancake mix - 1/3 cup
.63 Strawberries  (pictured on sale, 1.88lb/4=.47) - approx. 4oz
.11 Aunt Jemima Syrup 1oz.
.16 2 % Milk (store brand) - 8oz
1.03 cent breakfast / .87 with sale pricing

(cooked on non-stick pan without oil or butter)

Non-Traditional Credit

One of the concerns with living a credit free life style is whether lack of credit will get in the way of home ownership.  It's a valid concern, so I thought I'd share a little bit of what we've discovered recently on the subject.  I still think most people making minimum wage ($7.25/hr) have no business buying a house.  But there are exceptions, and most people in this group will work their way up to a higher income bracket which may make home buying a good idea.  My brother is a good example and has recently started looking into buying a home, so I thought I'd share a little of his story and why he may be a good candidate for a home loan even though he's lived a debt free life style.

First I'll fess up that I'm not a good candidate for a home loan.  I'm self-employed with unstable income.  I'm only working part-time right now to provide childcare for my sister, domestic help for my parents, and focus on my creative writing career (not usually a stable field).  Living at my parents' house, while good for my situation, doesn't give me any rental history or other payment records that make for a nice paper trail.  I'm okay with that.  Home buying has not been a high priority for me.

My brother on the other hand has 10 years of work history at the same company where he started out part time at minimum wage and is now earning $12.50/hr.  He's on his third year in the same apartment.  He has an electric bill and insurance payments in his name and pays his bills on time.  He's saved enough money that he could put $6,000 towards a downpayment, while still keeping a safety net of liquid cash.

His rental history and those bills that he pays on a regular basis create something called Non-Traditional Credit.  Basically it's proof of financial responsibility showing that he's capable of making payments over time.  My understanding is that at this point most banks will only accept non-traditional credit with an FHA loan (which is government insured and has it's own special rules).

The first step towards owning a home is to do your research, so you can weigh the advantages and disadvantages.  Back in July my brother and I were able to talk to several lenders at once and get info on FHA, HUD, and Tennessee specific home ownership programs by attending the Mayor's Home Ownership Fair.  This was a local Nashville event, but you may be able to find similar events in your area.  If not, there's a wealth of information on the internet, and you can call/visit these organizations individually to comparison shop.  While some aspects of home loans will be the same or very similar regardless of where you go, it's wise to compare.  One bank wanted 4 non-traditional credit sources from us, while the other was happy with 3.  One bank only figured the estimated mortgage payment itself for us, while another estimated over all cost including insurance and property tax....this was helpful because the cost of buying a house is more than the mortgage by itself.

Over all the lenders we've spoken to have been very postive.  While a few suggested he try building credit, most said he was doing "everything right" and their eyes lit up when they discovered he was debt free.

My brother is a slow paced fellow, so he's weighing the advantages and disadvantages of home buying before he submits his loan application (to get pre-approved).  I'll try to list them in brief for you:

Advantage:
1. Interest Rates are very low now.
2. Home prices are down.
3. Rent prices are going up.
4. With roommates, the house could help improve his income.
5. Home Ownership is a long term investment which can yield life long benefits.  (like not being at the mercy of a landlord in your retirement years)
6. Better privacy than an apartment allows.  Less worry about noise from neighbors or making too much noise for neighbors.

Disadvantage:
1. My bro's realistic budget would only allow for an $80,000 to $100,000 loan, and the houses/neigborhoods he likes are more in the $150,000 to $200,000 range.  It seems he would have to get lucky with a short sale or foreclosure to get what he wants.
2. Home ownership carries a lot more responsibilities than an apartment, and my bro is not the handy type.
3. A house is a long term commitment.  Even if he treats this only as a starter home, he'll probably need to plan on 5 to 10 years there.
4. While there are programs that allow for a minimal downpayment, 20% or more is ideal, and my bro's current savings would probably only allow for 3-6%.
5. He just renewed his lease in August, and buying a home right now would mean breaking that lease or paying for two residences at once.

Only my brother can decide what his best option will be.  I am encouraging him to go ahead and get pre-approved, which would allow him to start looking at houses (most of the foreclosures won't let you look unless you're pre-approved) and get the help of a realtor in finding an appropriate one that fits his budget.

Whatever he decides it was very encouraging to get such a positive reaction from the lenders we spoke to and know that this is at least a viable option for him, even though the credit agencies don't even know his name.

Yardsales and such...

So to recap my summer: have big Yardsale, make half hearted attempt to get songwriting career moving, get thwarted by musical partner's new job (yay!) and by 100°+  temps that made me feel sick (boo!), help brother consider homebuying, actually get sick with a virus, nephew gets sick, nephew starts school (at 3, Montessori rocks!!),  grandfather goes into hospital/rehab (coming home tomorrow), update Cafepress Shop, start a new writing project, grandmother selling house (get elected to price/sell her antiques/vintage items), get sick again, nephew gets sick again, start planning fresh yard/estate sale.

Yardsales are a great way to get yourself to clean out junk you no longer use and hopefully turn it into a bit of cash.  They also function as a form of recycling.  Larger sales tend to attract more customers, so it's a good idea to combine forces with friends, family, or neighbors. For apartment bound singles, this may be necessary to borrow someone else's yard...or you might be able to talk management into organizing a community sale.

Pricing for yardsales can be a bit tricky, but I try to price items with a balance of "how much is it worth?" and "how bad do I want to get rid of it?"  When possible it saves a lot of time and headaches to price things by groups.  For instance at my last couple of sales all clothes, christmas ornaments, and small toys are 25 cents each.  Probably not worth bothering with things you would price for less than a quarter, just stick them in a free box.

A free box can also be a nice was to get rid of scrap items.

Resale value can vary based on the type of item, but I think about 1/2 the cost of the item new is a good starting place.

I'm a little intimidated by the upcoming sale since I'll be selling for my grandmother and some of her stuff is old enough to actually be classified as antique or vintage...she has hundreds of very interesting salt and pepper shakers...all of which need to be researched/priced individually.  Thankfully she's not in dire need of cash, but still her means are modest.  I'd like to get the most for her that I can.

I'm hoping to get enough traffic for the yardsale to move a lot of my grandmother's collectibles, etc. that way.  It'll be a lot simpler than trying to sell them individually through ebay or craigslist.  I've located a local antique dealer who'll make house calls and would be interested in buying.  While I won't get the best price per item that way, it may help me sell a larger quantity of stuff.

Craigslist has proved a great way to help drum up traffic for yardsales btw.  I've developed the habit of posting a general sale notice and then taking pictures of some of the higher ticket items and posted them seperately.

Different neighborhoods have different rules about signs, so learn what's okay for your area...but signs help buyers find your sale.

I'm pretty sure my area allows a maximum of 2 yardsales per year, but that's something else to consider.  Too many yardsales can result in fines and angry neighbors.

My favorite part of any yardsale may be shopping my own stuff or my families...it's fun to see what you forgot you had and realize you have a use for it.  Even if you don't go to the trouble of a sale, it's still a good idea to go through your closets every six months or so if for no other reason than to take inventory and avoid redundant purchases.

Quick Update: Stay Cool

Apologies for falling behind on the posts.  It's already 101°, and my brain tends to shut down once the temperature hits the 90s.  Hope everyone is staying cool and hydrated.  Read these sections of WebMD to learn the warning signs of dehydration and Heat Stroke, and more importantly how to avoid them.

Remember alcohol and caffeinated drinks can actually contribute to dehydration, so instead try ice water, juice pops, and watermelon to keep your insides cool.  Make your own popsicles by freezing fruit juice...you can even add bits of fruit or yogurt for a more sophisticate alternative to ice cream.

If you need to be outside, remember the sunscreen (particularly if you're pale like me) and make use of available shade.  Rest as needed...and again hydrate.

You can sweat even in the pool, so while swimming is a nice way to keep cool, remember to replenish those fluids.

If you have elderly relatives or neighbors, it's good to check on them when the temps get high like this.  I hear too many sad stories when it gets this hot.

Just a note on label reading...I decided 107° is a good excuse for ice cream, while checking out the selection, my cowriter pointed out that several things which looked like ice cream at first glance were labeled "Frozen Dairy Desert"...a little research implies this has to do with milk fat percentage...and less milk fat isn't necessarily a bad thing, but you may want to check the label to see what's replaced it.

Article you may find helpful: 20 Ways to Increase Your Air Conditioning Unit's Efficiency and Lower Your Cooling Costs

$1 Meal Plan: Dinner #2

I'm on the hold list at the public library for a copy of "Make the Bread, Buy the Butter", because the reality is that it's cheaper and more efficient to buy some things pre-made, while others things cost far more this way. I think Spaghetti Sauce falls on the pre-made list (unless you grow your own tomatoes and have lots), particularly if you prefer it smooth to chunky. The French Bread on the other hand...probably cheaper from scratch, going to find a decent recipe and get back to you on that one with a comparison to store bought bread. Regardless, spaghetti is a great way to feed a bunch of people for a small amount of money. We divided up a cooked 1lb box into eight 2oz. (pre-cooked) servings.

Unfortunately, what you're looking at isn't spaghetti but angel hair pasta...which is nutritionally the same and costs the same but doesn't look as pretty with the tomato sauce. Thinner noodles means more surface area and thinner looking sauce. My co-writer prefers it and had already cooked it, so we decided not to waste the noodles.  Personally I love spaghetti sauce with spiral and tri-color noodles, but spaghetti sauce will make a meal out of most types of noodles or bread.



We also took one loaf of store bought french bread (pre-baked and bake-it-yourself cost the same, so we went with pre-baked).  I realized we were offering up a very carb heavy meal, so we made a variation with salad replacing the bread.

In the drinking glass, is 4oz of Welch's Concord Grape Juice...the studies usually use red grape juice, but I believe concord has the same, if not better, heart health benefits.  This is a good substitute for red wine, which is supposed to have heart health benefits when drunk daily in a 4 oz serving.  Red grape juice delivers the same benefits, but at a lower cost and without the alcohol.

First Example:

.16 2oz. dry Barilla Spaghetti Noodles
.26 3oz. Prego Spaghetti Sauce  (by weight 1/8 of 24oz. jar)
.26 2 - 1oz slices French Bread (1.99/16)
.24 Welch's 100% Grape Juice 4oz.
.92 Dinner

And the salad variation:

.07 .5 oz. Romaine Lettuce
.10 1 tbsp Hidden Valley Salad Dressing
.06 .5 oz carrot
.06 .5 oz Broccoli
.16 2oz. dry Barilla Spaghetti Noodles
.26 3oz.Prego Spaghetti Sauce
.24 4oz Welch's 100% Grape Juice
.95 Dinner

There's enough wiggle room to sprinkle on a bit of cheese, like parmesan, though I try to go easy since that's a hard cheese.

Apologies for not posting last week.  It was our Neighborhood Yard Sale.  I made space and a little money, and picked quite a few cheap and free goodies from my neighbors.  Charity truck did not arrive as scheduled, so many people stuck their leftovers on the curb with a free sign.  May take a break from the meals to expound on yardsale tips next week.

$1 Meal Plan: Dinner #1

In season, fresh fruit and veggies can be more budget friendly than the canned or frozen alternative.  Salad is fun because it can be a meal to itself or a portion of a meal. You need to wash and chop, but otherwise no great skill is needed.  Salads are extremely customizable and can range from pricey to cheap depending on what you put in them, but the one shown above clocked in at .98 cents....92 cents if you take into account that the cheese was on sale.

We pulled out a diet scale to measure our ingredients exactly for the example. That's really not necessary for day to day meal prep, but it was kind of fun seeing how much one ounce is for various veggies.

Example Salad

.14 1 oz. Romaine Lettuce
.11 1 oz carrot
.11 1 oz Broccoli Crown
.14 1 oz tomato
.20 1 oz (2 tbsp) Hidden Valley Salad Dressing
.05 .25 oz Kroger Brand Croutons
.13 1 tsbp Kraft Shredded cheese (Mexican Blend shown
.98 Salad

If we don't include a drink, we intend for you to drink water with the meal. It is particularly important to stay well hydrated now that summer has come. (We budget for water separately from food.)

The variation below is the same salad with 2 oz of Perdue Chicken added, which brings the total to $1.46...over a $1, but that's okay...we're going for an average.



Let's compare greens:

.05 1 oz Iceberg Lettuce
.14 1 oz. Romaine Lettuce
.28 1 oz Dole Spinach
.60 1 oz Kroger Baby Spinach

I'm not a big fan of iceberg lettuce, despite it's low price tag, because it's mainly roughage. I prefer more nutrient rich dark green leaves like Romaine or Spinach. Honestly I can't tell much taste difference between Spinach and Baby Spinach, so I usually go for the cheaper, larger leaf.  I've found bagged greens are a great place to find markdown tags, which helps stretch the salad budget even further.

Some other ingredients we priced:

.06 1 oz Cauliflower
.25 1oz Whole White Mushrooms
.34 Oscar Meyer Bacon Sliced (more than 1.15 oz. precooked) 1 strip

To create grab and go meal options, I like to use reusable (and recyclable) gladware type containers to make several salads at once. This works really well with drier ingredients like spinach, broccoli, and carrots, even shredded cheese, which tends to stay fresh for about 5-7 days in the fridge. I store moist ingredients like sliced tomatoes and dressing separately, only adding them the day I'm going to eat them.

My co-author PJ started a new job this week, so I think we'll be using left over ingredients to make him some grab and go salads for his lunches.

$1 Meal Plan: Lunch #2

A breadless, dairy free option for peanut butter. This light lunch comes in at 98 cents. I have found peanut butter goes with nearly everything crunchy, but my favorite pairing is apples and peanut butter. There's a whole carrot cut into sticks nestled between the apple slices. I often use a larger apple and don't bother with the carrot, but this is a little more nutritionally diverse. If you have a peanut allergy, swap out the peanut butter for hummus (almond butter or a hazelnut spread may also be worth a try). Ready made hummus tends to push over the $1/meal target, so I'm investigating how to make it at home. Other dippers to consider are pretzels, celery, and raisins. That's iced green tea in the glass.

Lunch #2 Breakdown:

.13 Celestial Seasonings Green Tea (1 bag)
.41 Gala Apple - 5oz.
.11 Whole carrot, approx - 2 oz.
.33 Jif Peanut Butter - 3 tbsp
.98 cent breakfast

I often see two bag recommended for making iced tea vs. hot tea. I've found it really depends on the tea brand. It's probably better for you without sugar, but I tend to sweeten mine, which will add a few cents to the overly price of the meal. While I wanted to show a dairy free option, caffeinated drinks like tea and coffee tend to draw a small amount of calcium out of the bones. You can counteract this by adding milk to your tea or coffee. Personally I like the taste of it.

Variations

Add 4 oz. of Milk to tea = 1.02
Drop to 2oz of Peanut Butter = .87
Drink water = .85 (remember we count water separately from food)
Drink water, add 1oz. Sunmade Raisins = 1.02

Again I like this meal because it's healthy and takes very little skill to prepare.  If you're out training for a marathon all day, this may count more as a snack than a meal, but if you're sitting on your bum at a desk like I'm usually doing, it's pretty filling.  These are just ideas to get you started, adapt to your calorie needs.

$1 Meal Plan: Lunch #1

The lunchbox classic PB&J, served with carrots and a 12oz glass of milk. This lunch rings in at .95 cents (though we ended up using store brand bread for the photo, so that may even be cheaper). We've hit four out of the five food groups with this one. I wouldn't count the grape jelly as a fruit. Jelly is fairly high sugar without a lot of nutrients, so it's addition is mainly for taste. We used a full tablespoon for this example, since that's the suggested serving size...but if you can use less or nix the the jelly all together you get a cheaper, healthier sandwhich. If you cut the jelly and reduce the milk, you have the space to add some fruit (raisins) and stay at the .95 level.

Lunch #1 Breakdown:

.24 Milk (store brand) 12oz.
.28 2 Slices of Nature's Own Whole Wheat Bread
.22 Jif Peanut Butter - 2 tbsp
.10 Smucker's Concord Grape Jelly - 1 tbsp
.11 Whole carrot, approx 2 oz.
.95 lunch

Jelly Free Variation (less milk, add raisins):

.16 Milk (store brand) 8oz.
.28 2 Slices of Nature's Own Whole Wheat Bread
.22 Jif Peanut Butter - 2 tbsp
.19 Sunmade Raisins 1oz.
.11 Whole carrot, approx 2 oz.
.96 lunch

1/2 Size Sandwhich Variation (1/2 Jelly, add raisins):

You can reduce carbs by dropping a bread slice and making a half sized sandwhich. We halved the jelly cause it's squishy sugar, but kept the peanut butter cause it's all protein packed.

.24 Milk 1 (store brand) 2oz.
.14 2 Slices of Nature's Own Whole Wheat Bread
.22 Jif Peanut Butter - 2 tbsp
.05 Smucker's Concord Grape Jelly - 1 tbsp
.19 Sunmade Raisins 1oz.
.11 Whole carrot, approx 2 oz.
.95 lunch

While I don't think it's necessary everytime, it was fun measuring out 2tbsp of Peanut Butter and 1tbsp Jelly and comparing that to what I normally put on a sandwhich.  We cut up our carrot, but you could save a little time by skipping the cutting; just wash, peal, and eat.  We will build up to more complex meals, but it's nice to touch on the basics that don't require any cooking skills.