inchicago's journal

[inchicago]

Thrifty++: Yes, the average of my condo is about $85,000. I bought it just before the big crash at $82,000. I happen to live in a pocket that hasn't really since any significant investment so I think that is what has kept the real estate prices down. However, I have noticed lately that lots of places have been bought and are being remodeled by investors so perhaps that is going to change soon. There are still condos close to me with this price but they need some work. I'm sure there are other pockets throughout Chicago like this, but not many. Most condos are far most expensive.

[thrifty++]

Wow I just cant imagine aparments being that cheap here. I wish there was a crash here. Surely I cant imagine your apartment remaining at that value for a lot longer with how much money people earn in a city like Chicago.

[inchicago]

First of all, it would be helpful if I would post the correct numbers so here is the final January income expenses:

Income (after taxes): $4,463.90

Expenses:
ComEd $48.41
Peoples Gas $53.00
condo assessment $159.00
Geico (car insurance) $63.05
Children International (charity) $25.00
Comcast (Internet) $63.45
Hulu (Internet TV) $8.71
gifts $66.75
car fuel $21.15
eating out $477.51
groceries $312.18
misc. supplies (shampoo) $155.63
doggie $162.21
misc. spending (books, clothing, etc.) $551.85
travel fund $250.00
furniture $250.00
carryover to emergency account $100.00
silver $90.00
savings $1,000.00
business expenses $606.00

Total $4,463.90

savings rate 24%

My goal for February is to get a savings rate of 35% or more. I just had an eye exam which cost me $70 after insurance but the nice thing is that I have a HSA so I can get that money back pre-tax.

Work is getting more and more difficult. I just don't know if I can continue that much longer physically with all the hours. I really, really, really want to just get up and go teach English in some other low cost country right now and hang out at the beach on the weekends.

[inchicago]

Interestingly enough, I really thought long and hard about the reason why I keep eating out. It's mainly caused by two things: boredom and avoidance.

Every morning I stop and buy a chai latte before I get to work. I realized I am doing this to delay myself getting into work by a few minutes. Hmmm....now tomorrow starts no more doing that (pray for me!)...not only because of needing to deal with this issue and the wasted money, but also I have noticed my health is nowhere near what it should be. Putting over 75g of sugar in me per day is most likely the issue here with my health. I'm sure the next few days are going to be unpleasant, but I don't feel well at all so a few days discomfort will be worth it. Not only will I feel better but so will my bank account. Win-win.

I've been bringing my lunch to work, not only to save money, but also to get more vegetables in me. Now another interesting thing happened today, and maybe this is because I've been filling myself up with delicious vegetables for the past week and a half, but I did not bring my lunch today. As I was walking around (in the cold, might I add), nothing, and I mean nothing, interested me at all. All unhealthy and overpriced. It doesn't help that I work in such an expensive area, either. It was easier when I worked in the Loop to find something with a halfway decent price...

Anyway, I'm looking forward to getting rid of this awful habit once and for all. It's too bad I even started it 3 or 4 years ago...

[inchicago]

So February 2016 has about come and gone. Here is how the month went and my expenses/savings. Not so great.

Expenses/savings
Income (after taxes): $4,463.90

Expenses:
ComEd (electricity) $49.07
Peoples Gas $53.00
condo assessment $159.00
Geico (car insurance) $-
Children International & charity $285.00
Comcast (Internet) $64.51
Hulu (Internet TV) $8.71


gifts
car fuel $16.11
eating out $388.41
groceries $488.07
misc. supplies (shampoo) $58.96
doggie $132.25
misc. spending (books, etc.) $360.04
clothing $20.00
alternative medicine $180.00
medical (eye & dentist) $190.00

travel fund $328.00
furniture $0
carryover to emergency account $0

silver $590.00
savings $0

business expenses $55.23
taxes $1,037.54

Total $4,463.90

savings rate 13% (silver only)

My main goal was to stop drinking chai lattes. So…how did I do? Oh yeah, baby! I kicked that one right in the tush! What I had to do was substitute it with tea and soy/almond milk. This costs less than buying a chai latte (at most places). As the sugar/caffeine addiction kept wearing off, I realized I didn’t so much need the tea latte every day (usually twice a day). One of the big reasons I decided to stop drinking the chais was because of the sugar load and the fact that I keep having gum problems which is very painful. I read that it is usually caused by bacteria trapped in the pockets of the gums. I bought some red clay which you can brush with and is supposed to help bind the bacteria. I’m sure hoping it works. Drinking just two small chai lattes a day was about 75g of sugar per day. So I’m sure I was close to 100g. I’ve also cut out all chocolate. Those were my two sugar addictions. The weekend that I implemented this, I was beyond exhausted. Thank goodness it was a 3-day weekend! Anyway, I realize my substitutions for the sugary drink haven’t helped my bank account but I have high hopes that after the addiction has worn off, I will drink less and less and save quite a bit of money in the process.

I used to get several monthly packages of vegan body care products. I cancelled all these but have just one left which comes quarterly. I’m finally going to cancel this last one which frees up $33, which is $132/per year. I mean seriously, how many sugar scrubs and body balms can you have? I’ve been trying to use up the ones I have for over a year, and I have also given several of them away, but I still have a ton. I doubt I would need any for the next 5 years, but maybe I just don’t use them as often as the average person.

I used to love traveling and thinking of all the places I wanted to go, and I still get like that at times, but the hassle of going through the airports and the time and expense seems too overwhelming. I’m thinking more and more just to visit the states I haven’t gone yet, but also use my vacations to actually rest.

Maybe I don’t want to travel so much because of my work. I’ve been there a little over two years and if I had known I was going to be expected to do as much as I do but mainly that my evenings no longer belong to me, I would have NEVER, EVER said yes to this job. My time is far more valuable to be than money. So I can look for a new job, but I don’t have a ton of hope for that one. Mainly this is because it seems more and more JOBS want you to be at their beck and call 24-7. How did it get this bad?

I had the meeting with the financial “education company” planner who is paid for employees by where I work. Same tired advice. I have decided to go ahead and continue to invest in the 401k, but only up to the match. I tell him I’m planning on retiring no later than my late 40s. He says he doesn’t know how. He will work until 67. So I asked him why work until 67 if you don’t have to? He wanted to hear none of my thoughts on why you didn’t have to wait until 67. I suppressed a few chuckles there, I have to admit.

On to some accomplishments…

Books I’ve read this month (lots of time to read on the CTA):
1. The Tax & Legal Playbook (for the business)
2. Deep South (love reading about travel)
3. Three Men in a Boat (based off a recommendation I read on this board-I may recommend this as one of my book clubs selections)
4. The Bible as History (always interested in archaeology)
5. The Life Changing Magic of Tidying Up (read more from the angle of getting rid of mental clutter versus stuff, since I am very neat and clean and don’t have much clutter/stuff (by American standards)
6. The World is a Carpet (travel)
7. You are Your Own Gym (This one was bought so I can get a serious workout right in my own home.)

I also finished up the Scandinavian TV & Film course on Coursera. I am planning on taking the course on the Ancient Greeks next.

Successes this past month:
• Cooked at home more and used up even more stuff that was just sitting in the cabinets (flour, oats, lentils, pecans)
• Real estate business paperwork set-up
• Taxes done and getting a decent refund
• Completed real estate lessons with coach
• Started back with daily evening yoga (in my home, not paying for lessons)
• Ate out at lunch at work only 8 days out 20 (March I’m aiming for 5 days or less.)
• Completed the silver investing portion of my silver/gold investing plan
• Sold two end tables (now they were nowhere what I paid for them back in 1998, but I was just go to give them to charity so at least I got a little something ($150))
• The last two weeks I managed to keep my grocery spending at $75 per week. I obviously spent way to much during the first three weeks. Getting there…

New recipes (I tried to get rid of all the different flours I had in the cabinets. Still lots more to go.):
• Orange almond cake
• Spelt bread
• Cornbread
• Oat cookies with walnuts & cocoa powder
• Salad with chayote squash (that was a new vegetable I had never tried before)
• Tomato & herb couscous

The nice thing is that I’m started to see some space in the cabinets. Now, I don’t think I have a ton of cabinet space, although some think my kitchen is a pretty nice size for a condo of my size. I have no idea why they make the storage space so small in these condos. Perhaps they have a hidden deal with the self-storage rentals.

Short-term goals:
• Cut grocery bill & eating out (starting slowly I’m going for 15% reductions on both)
• Complete my first wholesaling property deal
• Lose 5 pounds and lift more weights
• Eliminate daily tea latte (no sugar!) purchases (even though I’ve gotten rid of the 2-3 chairs per day. I’ve been substituting with the no sugar latte substitutes with 1-2 per day)

Thoughts:
1. I have a co-worker who proudly one day told me that she doesn’t cook. Now, she has several health problems and eats mainly microwave meals and trail mix. Why would anyone be proud that they don’t cook? It’s not like she can afford a private cook. Seems to be if she wanted better health then she would at least attempt to learn to cook something healthy.
2. The stock market: I’m pretty much done with the stock market and 401ks. I’ve never gotten the returns that one would think. I could have done better with buying a condo here and there and then selling them. And speaking of real estate, I love all I’m learning about this field and all the ways to make money. I always wondered how investors were making a killing in a down market. Now I know. Knowledge certainly leads to empowerment. I feel once I get this started, that I will always be able to bring cash in the door.
3. I have been thinking more and more about how sad it is that all of our companies have gone overseas and entire towns have been decimated. Yet, nothing is done to these companies. All ERE people are providing a valuable service by not buying the junk from these people. It’s kind of dumb that we buy this garbage and the company has no stake here and offers absolutely no benefits. It’s like I tell people. If you shop at Wal-Mart, you are part of the problem. And people sure don’t like to hear that.
4. The presidential election: I have no idea why anyone in their right mind would vote for a Clinton or a Bush. Am I missing something?
5. I sure hope there isn’t another crash. It seems that all signs are pointing that way. If the big boys would stop manipulating the market, (of course they do that because it makes them $ in the short term), then we wouldn’t have all these problems. Sick the way the whole economic thing works.
6. I would love to have a house with my own backyard but Chicago is way too expensive and taxes are ridiculous. We are thinking in the next few years to move somewhere else. Probably somewhere in the Midwest. I hope to pay cash when that time comes for the house. I just can’t even think of ever taking another mortgage on a personal residence ever again. Now, for investment property, no problem, since someone else is paying the interest. When I think how much money I wasted on renting and homes I no longer own, it almost makes me cry. Almost.
7. “It’s not how much you make. It’s how much you spend.”-I read this on a comment to an article. 100% truth.

[inchicago]

Okay, can I get a drum roll please?

My savings rate for March? 65%! YES!

So I still managed to spend $350 on groceries and $400 eating out in March and that is where April's focus is going to be on. Now that the weather is getting warmer, I will be able to buy more fruits and vegetables at the roadside sellers, which is usually dirt cheap. My goal for this month is $500 for both us. That's a huge drop, but only a couple of years ago I was spending around $300/per month. Obviously, I picked up some very, very bad habits. Yes, my current job has a lot to do with it, but after some things that have happened there in the last 3 weeks, I've decided to approach it a bit different. I won't be working all those hours. That's just the way it's going to have to be. I will of course continue to look for a different job, and would even be willing to take a bit less money, depending on the hours and workload. I realize more and more, my time is more important to me than anything else.

Due to a break-in in broad daylight in our condo building, I will now need to invest in a decent alarm monitoring service. I've been researching several and have found one with good reviews that will be under $20/per month with no upfront costs. Another expense, but I don't need someone breaking in here and destroying my stuff or doing something to my dog.

Major goals for the next month:
1. Find new, less stressful and demanding job
2. Get grocery/eating out spending to $500/per month or less

One of my co-workers was complaining that she couldn't retire for another 10 years and I asked her why. Well, it turns out that she has bought a place that was almost $300k that comes with a high assessment because of a FT doorman. No comment.

Anyway, I'm greatly encouraged by the 65% savings rate from last month. It really wasn't even that hard to achieve. I just monitored my spending a little more than usual and really asked myself if I needed what I was buying.

[IlliniDave]

Anyway, I'm greatly encouraged by the 65% savings rate from last month. It really wasn't even that hard to achieve. I just monitored my spending a little more than usual and really asked myself if I needed what I was buying.

That's a very important question, and an excellent result. Congrats.

[inchicago]

Thanks! This month had a lot of expenses, but I'm getting the hang of this thing.

[inchicago]

April 2016 Update

This month I became a year older.

Lots of expenses this month. The vet was $320. I got an alarm system installed this month, due to the break-in of the building I’m in which happened a few weeks ago. That was also over $300. I also splurged on a fancy Scandinavian lunch which was $70 for two people.

Well, the era of cheap property in my neighborhood has ended. The investors have figured it out. I paid $82k back in 2009, which was actually a little on the high side then. The same type of place I have is going for around $160k. For investing purposes, I will soon buy another condo to rent out. Finding something under $100k isn’t easy so it’s not going to be in my neighborhood. I actually have a suburb picked out with good schools so finding something for sale is the challenge. However, being that interest rates are rising and properties are getting more expensive, I may just sit and wait out the potential bubble. It seems we are getting right back to where we were back in 2005/2006. This time I’m prepared. 

I’ve also been moving ahead with the business. We were close in getting a property, and we still hope for the owner to call us back. It would be a great deal for resale. We’ve also joined a real estate mentoring group to learn as much as we can and make contacts.

I’m still working on my health and trying to get as much energy as I can. I had to spend about $160 on vitamins and supplements this past month. I continue to get 10,000 steps per day.

Books I read this month:
• The Fortress of Solitude
• To Kill a Mockingbird

I still ended the month with a 25% savings rate. Not even close to as good as last month, but I’ve definitely figured out how I can cut the expenses down and I will continue working on that every month; a little bit here, a little bit there.

Expenses to seriously cut down still are groceries and eating out. My husband has suggested since it’s best for my health, we should go to a raw vegan diet. Ha! Like he will ever stick with that. The way I did it before was to eat raw vegan all week and on the weekends could have what I wanted. It worked out well, and I hardly ever went out to eat. Plus, I felt 90% better than I do now. I had to go to the doctor again because I have a recurring pain in my side. I’ve also been told “no more sugar” so now that has been a direct order, and probably contributing to a lot of my health problems, I am going to have to watch a lot more what I buy and make, which in the end means I will save money because I can really only purchase items to make my own recipes. So I’m shooting for under $500 on food/drink expenses this month.

According to this site https://www.16personalities.com/infj-personality, my personality type is Advocate (INFJ-T). I’ve also considered myself more on the introvert side, but can be an extrovert if the situation or environment requires it.

I’m seriously considering trying to attend law school in 2017. Now, I don’t really want to do back to school and deal with all that, but I feel like I need a real skill. The other reason is I may have significant help paying for it. I would really like to do real estate closings and use a lot of the knowledge for myself in my own business. Maybe I could even have a small firm or just do it myself. I would have to attend school part-time since I have to keep a job. Anyone out there have any thoughts on this?

Oh, and the story I told about the lady at my work who drained her retirement account and is almost 60. Sadly, she was let go last week. Which strengthens my resolve to continue to remain as debt-free as humanly possible. In fact, I’m going to challenge myself this month on the eating out/grocery spending.

[inchicago]

My savings rate for the month of May was 34%. I still have some work to do, but hey, it gets better and better. (I’m not counting my 401k of 9% in my calculation.)

I had to buy several gifts this month which raised the budget, but I was careful and spent less than I would have a year ago. There were two graduation gifts, Mother’s Day, Father’s Day and two birthdays. I should be done with the majority of gifts until the holidays. The advantages of having a very small family and no children….

My biggest cost savings came at watching the grocery spending and cutting out eating on the weekends. I have drastically reduced my tea drinking. Come on warm weather so I can cut that out completely! I’ve started making myself wraps with quinoa or rice and vegetables for lunch, along with some homemade vegetable soup. I have been making spelt flour biscuits for breakfast. Dinner is usually potatoes and rice or just vegetables, like salads, and we have tried several new recipes. I need to get back to a few years ago when my bill for two of us was under $200; not $800-$900, which is ludicrous. I’m down to $600/per month between groceries and eating out. Making slow progress. We have thrown very little out this past month, too.

Another interesting thing happened this month. My husband, who LOVES to spend money, particularly on Starbucks, candies, sodas, you name it, has decided his lifestyle is too unhealthy. (Like I haven’t been telling him that for 9 years now…) However, he has been following Jacob’s posts on Facebook. Jacob must have posted an article or two about a potential recession and that seems to have woken him up a bit. (Yes, I had mentioned the recession thing almost a million times now, but I suppose it’s because Jacob is a fellow Dane.) He has decided we eat out too much and need to focus on eating better and working out. He is always telling me about the articles. We will see if this lasts.

Weird thing, at about the first of the month, I started to feel a bit panicked. Maybe because I’m almost 40. I don’t know. I keep thinking how unstable the world of work is right now. How it’s so demanding of one’s time for so little reward. Then I do the stupid thing and spend too much money, this month it happened to be on salon services, which I rarely do. However, for June, I’ve got a plan and will keep track of every penny.

My plan going forward is as follows:
• No tea drinking on the weekends: $40 (for two people)-under control!
• No tea drinking while at work: 20 days x $8/per day=$160-this still needs work!
• No eating out on the weekends: $120 (for two people)-accomplished!
• Less lunches while at work: $200-about 60% of the way there this month!
• Grocery spending cut to: $50/per week average (mainly vegetables)=$200 savings-so close!
• The total savings altogether per month on groceries and eating out would be: $720!!!! (I'm down quite a bit but the savings are really going to be measurable. This will give me the extra money I need to put into dividend stocks.)
=NICE! (At this rate I can afford two extra international vacations. LOL)

I keep seeing articles about how if Americans would just spend more money (on worthless garbage), then the economy would grow and etc., etc., etc. I for one am not going to spend more money just so bankers and business owners and their shareholders can get even more money. I don’t think the benefits are enough to justify sacrificing someone’s financial freedom or retirement.
Skills I want to work on in the future:
• Cutting hair (I used to do my own when I was a teenager and everyone thought I went to the salon!)
• Learning to groom my little dog. $75/per month is expensive! Next time, I need to get a groom-free dog, although I really do like the dog breed I have.

Books I read this month:
• The Cities that the Bible Built (getting ready for my trip to Israel this summer)
• Smoke Gets in Your Eyes: And Other Lessons from the Crematory (book club selection)
• The Soup Cleanse
• A Beginner’s Guide to Paradise
• The Mechanical Bicycle

I’ve been thinking a lot of what I want after FI is reached. Here are some ideas I’ve been throwing around:
• Living somewhere internationally where it’s cheaper.
• Moving to a much smaller city and living outside of it and spending 2-3 months in another country for part of the year.
• I really want a place which is close to a halfway clean source of water to go swimming in.
• I really, really want a place to park my car, unless I don’t need a car, which would be even better.

I want to continue to challenge myself to save somewhere between 50-60% of my income every month. More if possible, but for now, I need to be realistic. Some big bills are coming up in a month or two: property taxes, a plumber for the bathtub which sounds like a water hammer issue and the trip I’m taking this summer.

One thing I’ve thought about lately, or should I say missing, is life before all this worthless technology, like social media. It was nice to sit on the train and read a book without some moron shouting in their phone about how their man knocked some other lady up. Does everyone really need to hear your personal business? When has that become acceptable? I miss the quiet of the “old days”. I also miss the days where I could walk down the street and not have to dodge multiple morons who are texting and playing games on their cell phones. I’ve started not moving for them, because it’s truly getting to be a public nuisance! Maybe I have “cell phone rage”? Is that’s what’s wrong with me? The other thing that irritates me in American society is that everything, and I mean everything , has to have a label. I wonder if this has to do with the marketing of every little thing in consumer culture. Okay, rant over…

I’m still debating my options:
1. I found out, though I need to confirm this with HR, that after 5 years, one is vested in the retirement plan, and will get the full pension averaged over the pay over years of service when one hits 65. If that is the case, I have a little over 2 years left. The pension would be worth about $38k/per year.
2. Do I look for a new job, with about the same pay, which may or may not have a pension, but would be less stressful and would give me more of my time back? While the new place may have a pension, I would be starting from the bottom up again. (I have had an interview and it looks promising.)
3. I’m wondering if I just hate working in general and that’s the main issue here. I think to go to a new job, but it’s the same issue for me. I have to get up too early, sit at a tiny desk for hours on end, be told when I can leave and eat lunch on someone else’s schedule. Not to mention boring, unchallenging work which usually ends in the end leads to absolutely nothing.
4. I would eventually hit $100k by the 2020s based on an increase averaging 3%/per year. My guess is that they would cap my salary, give me an extra week of vacation or force me to become a supervisor at that rate.

I would love to hear thoughts on this and what everyone thinks about them.

Other thoughts:
1. I also believe I will take my father’s offer to take his old car once mine goes kaput. If I have to stay here in my condo for a little while longer and park my car on the street, there is no reason to get anything fancy.
2. I really want to write at least one book in my lifetime.
3. While thinking about law school this past month, I decided to learn a bit on the side and went to a law library and learned to look up cases for reference in the various books. It’s nice that the law libraries are open for the public’s use.

My goals for the next couple of months are:
• Identify a rental property to purchase before the end of the year.
• Buy a few over-the-counter tax sell land plots and resell them.

What’s really helped as I soon approach my one year here, is tracking all my expenses and putting them in categories. I know exactly what to look for now and where I’m “out of control”. I can feel I’m going to get better and better with every passing month. Sure, it’s taking me some time to get a grip on spending, but it’s better late than never, or so they say.

I know this has certainly turned into a long post. I actually write this post all month long as different thoughts about ERE, FI, my finances/plans and the economy in general come to me.

[inchicago]

For those that attended the last Chicago meetup, most of this update you already know, although I threw in a couple of new things for your reading pleasure.

My savings rate for the month of June was 36%. I still have some work to do, but hey, it gets better and better. (I’m not counting my 401k of 9% in my calculation.)

One thing we did this month was starting making our own homemade pizza. We only order pizza maybe every couple of months. This will be a nice treat for the weekends. We can always watch a movie at home, too. I’m unfortunately still struggling with the eating out thing, but I’m getting more and more in the right mindset and figuring out how I can bring things to work. One thing I just started a little over a week ago was cutting out all tea lattes. Yes, I know I said I was going to do it before, but I realized all that sugar was causing me to be tired all the time, and in general just feel terrible. Since it’s the summer, I can get tons of fresh fruits and vegetables must cheaper that out of season and have been making my own juices at home which has helped with cutting down on the tea lattes. Once I’m out of the habit, I won’t need to go back to it.

I read an article earlier this month which broke down Americans biggest spending waste: http://www.cheatsheet.com/money-career/ ... yptr=yahoo
Guilty as charged! However, my really sticking to my meal plan and only buying groceries on the plan, we have cut the waste almost down to 0. I can remember only a year ago throwing at least 30% of groceries out every week. (I know that is really horrible.) 

Another thing I did this month was make my own deodorant with baking soda and lavender essential oil. I’ve done this in the past, and made a huge batch. Considering the place I usually buy it from charge $14/plus tax, over a year, I should save almost $60. Not a ton of money, but every little bit helps. Remember: baby steps first.

Here are the skills that I am learning in the very near future:
• Homemade pizza (accomplished)
• How to put air in my tires
• How to change the oil in my car
• How to unclog a sink
Baby steps first.

Additional kills to learn in the near future:
• Make my own kombucha.
• Soapmaking
• For fun, experiment with making some perfumes and colognes. (I’m not big on buying this item, but am curious on how to make it. It doesn’t seem too hard according to a magazine that I have.)

I made myself a list of all the items I’d like to be doing and yes, they were all items I could do at home for no cost. I’ve made a list and hung it where it can be seen to remind me.

One of the really big things I did this month was delete my Instagram account. I have been wasting way too much time on it. Plus, Instagram has changed its lame rules to even more lame rules and not allowing the sites to show you who unfollowed you. I don’t have the time to manually do that, so good-bye and good riddance!

I also cancelled my overseas trip which would have cost us together a total of $7,500 for two weeks. This was the hardest thing I did, but I’ve contemplated on one of Jacob’s posts about just collecting trips. Is that what I’m really doing vs. collecting things? I’d like to think not, but I have a whole list of things I want to see. But I can see those things on YouTube, in magazines, through books. I won’t stop traveling, but I need to be a more mindful traveler, not just traveling to mark it off a list and say I’ve been there.

I calculated my FI age to be 53 and $350,000 at that age. That will not include any sort of retirement assets such as 401ks, my primary residence, etc. This will be purely in cash and investing accounts. If I get some real estate investments, etc., I can raise the $350k substantially. Right now, I’m at 6% of the way there. That’s okay. That’s going to keep growing. Just look at my mindset changes recently! If thing progress how I would like them to, I will be way over the $750k mark at the age of 53, but I’ve got to get moving in terms of sticking to my savings plan and coming up with additional ways of earning money (real estate, side business(es), etc.) I I’ve decided to stop wasting time searching for a new job. After three interviews, and being in to the top 2 or 3 each time, with no offer, I feel that I should just stick to what I know. I don’t like what I know but I feel like this is going to force me to stick to my plans and put extra effort into them because I know that I don’t like my current situation. I also know that I’m going to be able to collect a very nice pension when I’m official retirement age if I stick it out. (At age 53, I qualify for the full pension.)

Other thoughts:
1. The three most important things in life for me right now are: eating right, exercising and saving money.
2. I’ve decided not to go to law school. At almost 40, what’s the point? Plus, I make a ton more than most lawyers starting out.
3. I really, really want out of Chicago. The crime, the high taxes, the cramped living quarters and no parking space. I’m ready to be out of it. However, since I need to stay at my current job for 12.5 more years, I will be stuck here for a while.
4. After early retirement, we are considering moving overseas for part of the year (during the spring, summer and early fall) during retirement for the healthcare and a change of scenery and living in the south of the U.S. where it’s warmer during the winter months.
5. I’ve been searching for a rental property but have come to the conclusion that everything in my area is way overpriced so I’ll wait this out and will have much more cash on hand when the opportunity to buy is right.
6. Since beginning “Jacob’s program”, I feel so much better about my life. Like there is some hope for the 9-5. (Ha! Don’t I wish it were 9-5!) It’s one of the first times I hadn’t had to “borrow” from my savings account to pay for my property taxes or household maintenance. And I even have a little left over. Simply amazing…
7. I’m really looking forward to my husband graduating college in the next year and a half. It will be nice to finally share the bills. Think of all the money I can save then!
8. When I first starting looking into this ERE stuff, I thought that everyone would be big cheapskates and boring, etc., but when I met them in real life, it was the total opposite. They have all been full of interesting stories and generous with their time, knowledge and goods.

My goals for the next couple of months are:
1. Continue working on implementing my plan for additional income through real estate.
2. Begin reading investment books.
3. Explore additional ways to invest in paper assets, real estate, start a mini business or two and up my savings.
4. Begin writing a book.
5. Finish my ancestry research project.
6. Exercise more.
7. My biggest goal is to get my eating out spending down, down, down…I realize that when I eat out, I usually don’t feel that great-too much salt, too much sugar, etc. in those things so to make myself feel healthier, this will be a good incentive to stop eating out. I’m looking at cutting down $100-$200 next month with cutting out the tea lattes. Plus, the juices I have been drinking make me feel so much better and energetic. I once went on a 7-day juice fast and I have never felt better. I’d love to be able to make it to 90 days sometime in the near future.
8. I also want to get my grocery bill down to $200/per month. Without eating out, I’m guessing this will be closer to $300/per month, but considering with groceries and eating out together, I’ve been spending close to $800/per month. Yes, I know. That has got to stop. I’m getting there, however slowly.

I’m looking forward to a few days off in July that I don’t need to worry about going into work. July and August are always months filled with expenses, like property taxes, house insurance, car sticker, etc. Plus there is some home maintenance I need to get done.

Until next month.

[Scott 2]

Interesting journal. Some thoughts:

Have you tried making your own tea from a high quality loose leaf? There's a little art to getting the brewing temp and time just right, but it opens a broad world of options to you. They are inexpensive compared to buying a drink somewhere, healthy, offer a broad range of options to entertain the palate (with no calories) and still offer the caffeine to help manage energy swings. Most "regular" tea becomes a sacrifice, something to suffer through, once you've had the good stuff.

I went down the pizza making path a few years ago. I found a pizza stone makes all the difference. My wife now prefers something we make at home to delivery. We've gotten pretty lazy about this - dough ball from trader joes, jarred sauce from Meijer, parchment paper to make it easy to work with the dough. I do still shred a combination of mozzarella and parmesan from blocks though, because the cellulose in the bagged cheese seemed to mess with browning. It's a great option, and with the Trader Joes dough ball, takes about the same time as frozen. I've found the ability to vary cheese combinations a lot of fun. It's also a good, cheap "couples" event, especially with a peel and the stone. Everyone feels fancy and has something to brag about at work. Oh, and hey - you could make a vegan pizza.

I've been grooming my cat for 5 years. This didn't start to save money, but instead because she came home from the groomer with bloody nipples. That made me realize what a terrifying experience it must be for her. I ordered a pair of professional clippers (required for fur, IMO) from Amazon the next day. They were about $130, but I've easily saved at least $600 in grooming fees. The cat is also happier - we had to pay the extra fee for a second person to hold her down... that should have been the only clue I needed.

The point I really wanted to make - as you transition from a consumer to a producer, you'll find it isn't just about saving money. As you develop skills, you end up with superior experiences. The changes persist, not because they are cheaper, but because going back to the consumer lifestyle just isn't as good. Buying other people's inferior result at inflated prices feels like a sacrifice. Saving the money becomes secondary. It's cool to see that happening in your journal.

[Miss Lonelyhearts]

Interesting update! It sounds like you're making a great deal of progress, so if I were to recommend anything it would be to be a bit easier on yourself. Your spending/savings rates are diverging and would form a nice "X" on a graph, so if tea lattes are currently necessary to your overall happiness, I'd pay the money. Alternatively, Scott's advice seems quite good. And I have a couple friends who've had success brewing kombucha, so that could be a great substitute as well.

I've also spent a lot of money on going out to eat, some of which I regret, and some of which I enjoyed. My general philosophy has been to try to reduce the former and increase the latter. Sometimes, when trying to get myself to eat at home more, my philosophy has been to give myself carte blanche at the grocery store and buy whatever appeals on the theory that groceries are invariably cheaper than restaurants (the only store where this probably won't work is Whole Foods!). Once I'm shopping the abundance of potential good deals and wholesome eating seems to trigger a reflex that prevents sheer depravity while also allowing for enough indulgence-type items that I'm satisifed. E.g., I would never or very rarely order cheese at a restaurant, but often get a block at the store and always enjoy it.

I can definitely relate to your weariness over the violence, crowds, expense, traffic, parking hassles, urban alienation, etc etc. of living in Chicago. On the flip side I take for granted for the diversity of interesting people, good restaurants, cultural resources, natural beauty, and reliable public transit, which collectively seem difficult to find/afford elsewhere in the US. And of course the job opportunities while working are quite good. Earlier you mentioned moving to the suburbs--is that still a possibility? That or a new neighborhood might help if you can make it work w/r/t the condo. Exploring new areas of the city is the main part of my plan for shaking off civic malaise.

Sorry to hear about your trip, although saving $7500 is pretty sweet! If this was the trip to Israel, is there anyway of doing it cheaper via kibbutz or something? Or taking a cheaper trip within the US or Mexico? Historically I'm kind of anti-travel along the lines of Jacob's post you mentioned, but in the past year I've taken some really good trips and enjoyed them, all domestic though. Perhaps it's something that changes.

They have all been full of interesting stories and generous with their time, knowledge and goods.

Indeed, I still have to read the books you gave away at the winter meetup!

[jacob]

* You can put air in your tires with a bicycle pump (auto-valve). It's not a killer workout but it does take 10-20 mins. I got a pump. Come on over, you get to pump. The rest of us get to point and laugh ... Okay, I'll take turns too, and then the SOs can point and laugh.

* You can come visit us and have my neighbour change your oil in the mean time---that's what we do. He'll charge you a bit more, but I think the $5 extra over the DIY option is worth it to establish a good relationship with a trusty mechanic. I suspect he's saved us at least 25-50% compared to going elsewhere and getting ripped off for other things. E.g. our car sounded like an "unlubricated sewing machine" to the point when people were shouting "get your oil changed" at us on the street. Turned out it was a spark plug and a new catalysator. Cost about $250 total. A random garage was happy to remove the engine for $1500 to "take a look at it" (Outbacks have some weird unserviceable engine configuration which requires extra labor. ARGH!) OTOH, changing oil is not that hard. However, you do need equipment (jack, jack stands, oil pan) which will take a few years to amortize if you're not doing any other kind of car work. If so desired, I got those in my garage ... not using them anymore, because of the above. If you want them, maybe we can trade? ... PS: FWIW, I've decided to punt on car skills, because I hate cars. And my justification is that I use ignorance to build social capital, so there. Of course, THAT is a very very slippery slope.

* In terms of DIY soap do you mean rendering your own lard and making lye out of woodash or just reforming existing soap into scented soap? Industrial soap is so cheap that the former is so not worth it. It's pretty exciting though. But only do it for badass points. Incidentally, should you be interested in badass points ... I once again extend a personal invitation. Bring some fat (freeze the cut offs from whatever steaks, chicken, and when you got a couple of pounds, in the freezer, we're in business)... I'll supply the wood ashes or toilet cleaner (NaOH). If you're interested in the second option, talk to DW, but leave me out of it. I need to preserve my image ... which is about to get destroyed considering the following:

* In terms of deodorant, this might be TMI, but taking an applied lesson from the ancient Egyptians, I've solved the stink problem by shaving my armpits and using bar soap to kill the bacteria while showering. Smells come from bacteria eating "sweat or whatever" that doesn't stink on its own, so remove/kill the bacteria and there's no smell. Science wins again. The bacteria mainly live on the hairs. The soap kills the rest. So remove most of the hair and use soap daily. Problem thus solved with engineering. PS: In case any guys feel that their manly manliness is threatened by shaving beyond the face, realize that you only need to do it once a month; you only need to do a half-assed job (think S-curve); and you can use a straight razor for extra danger because you just might kill yourself cutting a major artery... although I suppose the coronary report will make for bizarre reading. In any case, the stink is proportional to the amount of hair divided by your use of soap, so, I leave this optimization as an exercise for the reader.

[inchicago]

Thanks scott2 for all the good ideas. I used to have a pizza stone, which was a gift, but when I needed to move, I only had room for so much so the pizza stone didn’t make it. I’m looking at a nice cast iron one which I will request as a Christmas gift. I feel very sorry for your cat! Although, I’m glad you were able to take over and make it work. Cats hate being outside their environment (usually) and so it’s far better for the cat and you if you can take over grooming. My dog doesn’t like the groomer because there are so many big dogs and it scares her. When I was younger, I always made my own stuff. I lived in a small town and my father was not a big spender so I made do with what I had. I was fine when I moved to Chicago, but I guess my (first) SGO’s habits rubbed off on me and I’m slowly trying to get back to where I was. It is true that there are many things I’d rather make myself. And there are some things that I cannot, like if I want a wood-fired pizza, I’d need to go somewhere to get that. A regular pizza, I could definitely just make at home. I do have a lot of fancy teas here and should experiment with them more. I bought a tea sampler when I was in Belgium a couple of years ago so I should start there.

Thanks for the encouragement MissLonelyhearts! It’s slow going, but I’m definitely feeling the difference especially when I didn’t even need to tap into my savings to pay the property taxes this month. (Of course, that will make my savings rate a bit lower this month.) I really like having less stuff. I am a shopper at Whole Foods, but that is because I need to get specific items to make things gluten-free. The majority of my fruits and vegetables are bought at the neighborhood grocery store, which are a fraction of the price at the big chain stores. So I do treat myself at Whole Foods sometimes and this contributes to a higher grocery bill, but I’m a bit picky at times and want to watch my health and be sure I’m getting the best (and tastiest) I can. I like the cheese basket that Whole Foods has that contains the last of a block of cheese. These are cheap and contain just the right amount for a dish or two and we get to try lots of different cheeses that we would never pay full price for. I’m sure I’ll have some more books by next meetup. I’m big on non-fiction and travel books. The fiction books were my attempt to join a book club to expand my mind. Some things happened with my husband’s grant for school which made the $7500 impossible when I looked at my budget. As compensation, we are looking at 4-5 days in New Mexico which will be under $1000 for both of us. While I would love to travel internationally, it’s expensive and I’m not a big fan of everything that has been going on around the world so for now, its fine to explore America. My grandmother always said that there are several beautiful and wonderful places to see in the U.S. and so that is where my grandparents traveled. New Mexico is certainly something I can’t see in my backyard. The trip to Israel was structured and would include working on an archaeological dig for two weeks, staying in a kibbutz and tours on the weekend. The dig is something I have always wanted to do but my co-workers told me about several in the U.S. that I may check out in the future. And I know I promised some graphs. I’ll try and get those done for the August update for a mid-year review.

Jacob your post really made me laugh. I’m going to run your idea for non-stinking to my husband and see if he will adopt it. He has a lot of “great ideas” for those extreme, extreme savers so if you would like a guest blog post (that’s more humorous than realistic, although these ideas can be done) you just let me know. My friend bought one of those do-it-yourself air pumps and oh my, the neighbors were laughing! I however didn’t find it that funny since I was helping him and felt kind of dumb but after 30 minutes or so we managed to get the tire up-to-speed. An interesting little story about the soap: When I had to rent for a couple of years, I got an idea to make soap and apparently so did my landlord, although neither of knew about the other’s interest in making soap. When we found out, I should have taken her offer to practicing making soap as she started a business and now spends half her time in Jamaica and the other half in Chicago. Sigh. I’d like to start out with cold-process soap. Right now, I’m paying between $6-$8 a bar from a small producer which I purchase online. I’m allergic to most of the soaps at the store. Each bar I buy from them lasts me about a month between the two of us. I am willing to make the soap from scratch the old-fashioned way because that’s kind of cool so if you set up a get together for this, I’m in. Making candles the old-fashioned way is also a want. Yesterday, I had to take the emissions test for my car and I told myself it fails, I will replace the car (it’s 18 years old). However, it did not fail! Will it make it to 20? Probably not, but never say never. I like that your neighbor can help you out. I guess it helps him out, too, since it’s a little extra money on the side. I may take you up on this offer. The changing the oil thing is something to learn, but in the future. Right now, I have to start with the basics and build up over time.

An idea that came to me this weekend was making a small arts/crafts business out of old maps. That fulfills three needs for me: old maps, traveling, and creativity. I’m going to ask my parents to pick up the old maps they find at thrift stores and see what I can make out of it. More for fun, but great if I make a few sales. My job is really getting to me, and I need some outlet.

[Miss Lonelyhearts]

Wasn't ragging on any grocery habits in particular - I was just at WF the other day and it was the most expensive store I could think of. I meant also to recommend PedalToPetal's journal if you haven't seen it already. He has some info on getting free fat and rendering lard, although his SO does the soap making iirc.

[inchicago]

I agree: Whole Foods is probably one of the most expensive stores out there but I do enjoy shopping there. Thanks for the tip! I'll check out PedalToPetal's journal.

[inchicago]

My savings rate for the month of July was 21%. The low savings rate was because of the following bills I had to pay: property taxes, State of IL car license renewal, and some home maintenance (still need the AC unit cleaned and the plumber to come out and fix the bathtub). We also took a trip to New Mexico to visit a friend. I had a “travel fund” so I didn’t really need to worry about that.

August expenses won’t be as bad: I need a new blind for the living room as it’s hanging off the window by a couple of threads and need to get the AC/heating unit serviced plus pay the condo insurance.

I read an article earlier this month about how baby boomers have very little money saved and many are living in homes in the suburbs which will be a problem for them later down the line, since those houses are not made for older folks and they come with a lot of maintenance. That whole thing is very scary. I don’t want to be old and worry about money like that. You spend your whole life working, (well, most people do), and you would certainly expect it would all be worth it. One health problem can wipe out a large sum of money so it’s important to start saving as early as possible and taking good care of oneself.

I have really dived into studying data analytics. I think this will be a great new career for me, mainly because it’s something I halfway decent at, it’s interesting, the pay is good, and there are openings. Convincing someone to hire me, well, I’ll need to figure that out after I learn what I need to learn. My goal is to get a new position by next February in data science. Yes, I know I said I was going to try and aim for that pension but it’s affecting my health and if I get paid more, I can always invest it and come out with the same result. I read an article not too long ago, and the summary of it was basically: if you want to get paid more, provide more value. Coursera has some excellent classes which I plan on taking. I’ve taken free classes before but for these I think I will pay for the certificate since they are relatively cheap and I may need them in the future to prove I really am educated although I’d hope my experience would speak for itself. Combined with my MBA and PMP, I’m really hoping I can get something good and interesting. And let’s hope the economy keeps pace as well. However, I did learn recently that at my work place a position opened up which is about $120k. That’s a lot more $ than I make now so even though I’m not thrilled by still working there, I think I’m going to mention my interest. I do have a really good shot at it.

I still continue to read and learn about real estate investing. We have a mentor. We bought our first two small properties this past month. We are now working on

Books I read this month:
1. The Happiness Track
2. The Accidental (fiction for book club)
3. The Bad-Ass Librarians of Timbuktu
4. Investing for Dummies

Six month goals:
1. Start small business. I already have my idea; I just need to find my first customer.
2. Buy a rental unit.

Longer term goals:
1. Make more $. I have begun on this step by writing out my small business plan. I’m going to start out very small on this so I don’t have to borrow money.
2. Write a book.

Other thoughts:
1. Rome was not built in a day.
2. I so want to retire early. Like yesterday.
3. I’m much more committed to FI than I have ever been.

[inchicago]

My savings rate for the month of August was 48%. The savings rate would have been higher but there were a few bills I had to pay this month which included some home maintenance which was having the AC and heating unit cleaned. (Still need the plumber to come out and fix the bathtub and condo insurance needs to be paid next month.) I had a professional resume writer create a new resume, cover letter and LinkedIn profile for me. I consider this an investment in the future. I hope to always save 50% and will aim for 60% or higher.

I have now managed to get my money to where I save one payment per month and the other paycheck is for expenses, etc. So now out of 24 paychecks per year, I will save/invest 12 of them. That’s saving/investing over $26,000/per year with very little effort on my part! I think if I really, really stretched myself, I could get up to $30,000/per year in savings + my 401k savings bringing the total to about $36,500!

I believe I’ve began to cross over to the dark side. I’ve been questioning every purchase I make. Do I really need that magazine subscription? It’s $24! Don’t I have enough to read? And on and on and on…a side effect of the ERE program, perhaps?

I noticed that I started bargain hunting. Not extreme, but enough to notice something. I was at Walgreens and was looking at toilet paper and determining which brand would be better to buy vs. the sales that week. Normally, I’d just grab the one I usually buy but the other brand seemed equally good (and has turned out to be) and I saved $4 by buying three of them vs. two of the others. Not bad! I noticed I also did this for Tylenol, although my determination was waiting until the next sale.

I’ve been incorporating a lot of vegetables juices into my every day. I’ve lost five pounds so far in one week. While the grocery costs will go up, this is an investment in my health. Plus, there will be less eating out expenses.

Eating out savings in a perfect ERE world:
• No tea drinking on the weekends: $45 (for two people)
• No tea drinking while at work: 20 days x $4/per day=$80
• No eating out on the weekends: $100 (for two people)-already had this one covered!
• No lunches while at work: $100
• Total savings for one month: $325

My guess is cutting out all that stuff is probably going to make a huge difference on my health, when you think of all that extra salt and sugar I was consuming. I’ve cut out chocolate and soy. Those were huge. Now the last hurdle is tea lattes.

I also have begun making my own conditioner out of apple cider vinegar and water. It’s amazing for detangling.

I went to Utah earlier in the month for a conference for work. I have never been there, and I didn’t have to work, so it was a nice to get an all-expenses paid trip for four days. I saw the mountains and ate really healthy (on someone else’s dime!).

Books I read this month:
1. Dead Wake
2. Big Data MBA: Driving Business Strategies with Data Science
3. How to Say Anything to Anyone
4. How to Talk About Places You’ve Never Been
5. Food and the City
6. Easy R Programming for Beginners

[Scott 2]

I enjoy watching you win! Keep it up.

What did it cost / was involved in getting the resume re-done? I recently learned I am _terrible_ at this, and have been fortunate to find work despite my awful resume, not because of it. I had no idea.

For me personally, constructing savings goals as "I'll say no to X" results in later binging on X. My will power is weak, it runs out, then all that denial has to be satisfied. I have much more luck with replacement behaviors, where I am working towards more immediate gratification or a new identity.

Example - I want to take a 15 minute lunch in the cafeteria, so I can go home 30 minutes earlier. I'll have to bring lunch to do it.

Example - I'm going to spend my lunch on M-Th getting better at data analytics, because that ensures a regular practice of learning. I'll have to eat at my desk to make it happen. I'll still go to lunch with my team once a week to build relationships, because that will make it easier to get more money and references..

Especially for the later example, I find people are much more supportive of this type of attitude. You're a hard worker who's just trying to get ahead, not someone who's being cheap and unreasonably denying themselves.