Debt $ense

My B&N University classes started yesterday, and so far I’m enjoying them. Not only do I like the experience of being in class again, but knowing that the whole thing is free is icing on the cake.

My mystery writing class has gone well so far, and I finally started rewriting the novel that’s been languishing on my laptop for a year. That’s one of my long-term money-making plans, plus it’s always been a dream.

The finance for women class isn’t as good, at least not so far. Less interaction and less new information. Most of the women signed up seem to be at the beginning stages of figuring out their finances, so I’m feeling “been there, done that” right now. I’m hoping as the course moves on, that will change.

And for those wondering, no. I haven’t had my review yet. Look for an update later today (I hope) or possibly tomorrow.

The good news is I bought new running sneakers today and saved more than $20 on them. The bad news is that still meant shelling out $87. And don’t even think about new off-the-shelf orthotics - they would have been another $52, and that’s with the 20 percent discount.

On the plus side, the store manager gave me a “rain check” for the discount, so I can still save the $13 when I buy them. And he was very helpful tracking down the right size once we figured out which sneaker was the best one. (It also happened to be the least-expensive one I tried on, which was nice.)

I’m going to try a sturdier brand of the cheap orthotics (the ones in the grocery store pharmacy) and see how those work. If they’re not holding up well under my higher milage, I might have to postpone increasing my weekly payment another paycheck and use the $40 to buy the better ones.

I just have to keep reminding myself that this will save me money in doctor’s bills down the road, both by preventing injuries and by helping me lose weight, something my doctor thinks will mitigate another health issue. But it’s stinging now.

In order to run (essential for my current and future health), I need to wear orthotics in my sneakers. Almost 15 years ago, I got a custom pair because I was running high school track. I still have that pair, and they still fit my feet. But they’re in pretty sad shape, and replacing them will cost a couple hundred dollars.

A few months back, I tried the Dr. Scholls off-the-rack orthotics in my non-running sneakers, and they worked well. So when I started running again last month, I tried them in my sneakers to see if they were an acceptable substitute. So far, they’ve worked well, though I should replace them in the next month or so.

So while I was at the store yesterday, I priced them. When I go to the NB store Saturday, I’ll look at what they have available. The coupon I got is for 20 percent off the entire purchase, so depending on the price, it might make sense to buy the pair for my new running sneakers there. At least by checking other sources first, I’ll know if it’s a good deal.

I’m sure a few of you are wondering, questioning even, the wisdom of replacing something that served for 15 years with less-expensive versions that last about six months. In some ways, it sounds penny-wise and pound-foolish.

Yes and no. The custom ones would run me about $200, and insurance isn’t likely to cover much. If I can get a doctor to OK them as medically necessary, I can probably use FSA money, but I didn’t fund an FSA this year. After getting burned on the dental work, I’ve learned my lesson and will fund one next year. At that point, if I make it through most of the year without major expenses, I can use the money to get one or two pair made, which hopefully will last another 10-15 years. But until then I don’t have the money for the big expense.

Using the less-expensive versions gives me some breathing room. Also, once I’m running at the level I expect to stay at (35-40 miles a week), I’ll have a good estimate for how long the off-the-shelf ones will last and can better evaluate the costs over 10 years.

I’m getting frustrated looking for tips on reducing car insurance costs. Does anybody know a place that makes recommendations about how much coverage you should have?

I’ve been with the same insurance company for the last four years, and I’ve decided to shop around during the next several weeks to see if I can get a better rate on my insurance. I also want to make sure my renter’s insurance is replacement value, not ACV, which I think is the case now.

I got a quote from AAA today, and I’m going to check at their office next weekend when I’m picking up running sneakers. I also found two independent insurance agencies in the area, so I’m going to check with them this week, then get an estimate from on what it will cost to renew my current policy for another year. I’m hoping that renters and auto combined will cost less than $350. (Yes, my car’s old and beat-up.)

But as I’ve looked, I find the same set of tips on pretty much every site. None of them addresses how much insurance I should have, and what’s overkill. If I could find such a site, it would be a huge help. Any suggestions?

Turns out I only have liability and uninsured/underinsured motorist coverage, which means I have no deductibles, so no savings there. At least I can console myself with the thought that I’ve only been paying the minimum for the last year.

In other news, I’m going to see if the other editors want me to report on places to go, things to do in Richmond while I’m there. Not only will we get some copy out of it, but I can get reimbursed for admission tickets and possibly even milage. (We’ve done stuff like this before when people are doing day trips in the region - I did one on the night monument walk in DC a couples years ago - so it could be a really good way to offset the costs of the trip.)

I’m going to Richmond in two weeks for a few days. A friend has a conference in town, so she suggested I meet her there since I could stay in the hotel room for free. She also found one with free parking, free wi-fi and a free continental breakfast. She also asked for a microwave and fridge, which will be nice if we get them.

My next challenge to keep the trip as cost-free as possible is to find things to do that are free. I’ve already tagged Maymont as one possibility, since the grounds are free and I really don’t care about the exhibits in the house. (One is about cockroaches; need I say more?)

I’m going to put in some serious Internet time this weekend and find some other free activities or cool neighborhoods to explore that won’t mean spending much on much gas/parking fees while I’m there. And to keep it fun, I’m going to make it a challenge to myself. I’ve gotten spoiled with all my trips to DC because the Smithsonians make it easy to fill up the day with free amusements.

Sorry for my disappearance yesterday. It was local Election Day, which meant I was a bit tied up at work. The good news (other then that sanity reigned in the election results) is that we always get pizza on Election Night. Our top editor builds it into the budget because we’re all running around like nuts from about 6:30 p.m. until well after 10. He figures the least he can do is feed us.

We’ve always gotten Domino’s before, mostly because their Philly Cheese Steak pizza was a huge favorite. Well, a new local pizza place opened up a few weeks ago around the corner from us. Really, really great pizza. I talked our boss into letting me try and get them to give us a deal so we could get enough pizza within his budget to feed the newsroom. It worked!

So I was able to get my new favorite pizza for free (since work paid) and then he took those of us who hung in until the end out for a beer after. Again, I didn’t have to pay. So I had good takeout and a free drink, with no cost to me. Can’t beat that!

This evening I spent a few hours cooking the food I bought Thursday night.

I ended up with 13 servings of chicken cacciatore and 17 of the sausage, veggie and pasta mix. Oh yes, and I still have one bag (three pounds) of chicken in my freezer. So that’s 30 meals (not counting the one I had for dinner) for about $15. It’s tough to beat 50 cents a meal.

Not only that, I still have plenty of food in the fridge for wraps during the next few days, plus eggs and bread for breakfast. So hopefully my May grocery money can go toward other things, like paying for my root canals.

I had the first one started today, and I go back in a week for them to finish it. Two weeks later, I get the second one, which the dentist hopes to finish that day. The first one was $200, but they only had me pay $100 while they see what my insurance will cover. (Two years ago, I only had to pay $141.)

Meanwhile, I got a statement of benefits from my dental insurance indicating my dentist can charge me $30 for my last appointment, basically because of X-rays that weren’t covered. *sigh* At least my dentist hasn’t actually sent the bill yet. Maybe they’ll hold off on that for a few weeks.

So I’m saving money on food, but since anniversary presents for my parents and grandparents drained my pinch-point account, all the savings will go toward my dentist(s) instead of paying down my credit card. *sigh* At least I got the interest rate lower.

After my healthy eating class the other day, I sat down to plan out my shopping for this paycheck. One of the things they stressed was planning meals so you eat healthy foods rather than be so stressed you grab take-out. So we talked about picking two meals that could stretch multiple days, plus one or two meals a week that are completely different for variety.

As a single person, almost any recipe means I’ve got six or eight meals if I stick with correct portion sizes. So I looked at the sales flyers and my new healthy recipes and decided on chicken cacciatore; pasta with turkey sausage, peppers, mushrooms, spinach and tomatoes; and enough vegetables to mix with grilled chicken strips in whole wheat wraps for lunches.

As you can tell, chicken was on sale. I got the three-pound bags of frozen boneless, skinless tenderloins for $5.99, each with 11 servings of chicken. The cacciatore recipe serves six, but since it doesn’t include pasta as part of it, I’m dividing it into 12 servings. The pasta also will make the sausage dish stretch for 12 servings. And I have enough wrap fixings to last me two weeks. By the time I’m done cooking Monday, I’ll have two balanced meals a day for the next two weeks (and a very full freezer).

I also picked up a flavored pork tenderloin on sale for $6.99, which had an instant savings $2 coupon on the outside, knocking my cost down to $4.99. The canned tomatoes for the two dishes were in the dented bin, so I got the big can for 79 cents. Frozen spinach was part of Kroger’s 10 for $10 sale, so I got two pounds for $2. Same with cucumbers. Pre-sliced portobello mushrooms were on sale for $2.50 and peppers for $1.29.

Oh yes, and I got a loaf of 100 percent whole wheat bread for $2 and generic egg beaters for $1.50 per pack, with each pack equal to six eggs. Those are in the freezer because I have real eggs in the refrigerator.

My total cost for all that food? $45.45. In addition to being fairly healthy, it was pretty inexpensive when you figure I’ll get at least three weeks of good meals out of all that food, possibly more. Some of it, like the eggs and spinach, are just good staples I can keep on hand for future meals. That should mean savings continue down the line. And I already have some food at home (like bulk oatmeal for breakfast) that will take up some meals.

If I can continue this trend, that will cut my grocery budget in half for the rest of this year, plus improve my health because the food is better for me. Sounds like a win-win situation!

My car - a 1998 Hyundai - is getting to the point where it will need to be replaced. Not nearing as in “pieces are falling off,” but I expect within the next two years I’ll trade it in for a newer car.

Not a new car, mind you. New cars lose about 20 percent of their value once you drive them off the lot, which makes them a pretty bad proposition unless you qualify for massive dealer incentives. (My dad used to qualify for military discounts, so he actually did OK with new cars.)

Used cars, especially “gently used” cars from leases are a much better bet than they were when I was a kid. The rise in certified pre-owned programs, and the general improvment in quality makes a used car much less risky than before. My car now is gently used; I bought it in 1999 with 12,000 miles on it for $8,500. At the time, I had to finance it for five years because I was a reporter at a weekly that paid peanuts, but it’s held up amazingly well.

My reasons for replacing the car in two years are that by then it will be 10 years old, and likely have about 135,000 miles, which is good service from a car that cost about $11K new. It’s a little car - the Accent - and doesn’t have cruise control or AWD/4WD, but it does get about 40 miles to the gallon on the highway. It was fine when I was doing lots of driving in traffic for work and had family members with minivans and SUVs nearby to help haul stuff. But now that I live in a rural area filled with hills, the lack of AWD/4WD is problematic, especially since I work more when we have bad weather. (Driving 40 miles to our back-up print site during a hurricane in order to get the paper out is interesting in a tiny car.) Not having cruise control means I waste more fuel than necessary driving to my parents and friends who live a couple hundred miles away. Not having room to carry anything longer than 4 feet is a pain in the neck, and will only become more so when I buy a house.

I researched cars, and the little Hyundai SUV, the Tucson, seems to fit my bill. It has great safety features, gets good gas milage (my friend Kyrie’s gets about 30 mpg), has a great warranty and will be on the market long enough that there should be a fair number of gently used ones available in 2008.

My other car goal? To pay cash. I might be able to do that with a used one; I’d have to get really lucky to do so with a new car. And if I’m close in spring 2008 and my car’s holding up well, I might wait a bit longer so I don’t have to finance at all. Not only will I save interest charges, I’ll know that from Day 1 it’s completely mine and I won’t have to write out a check (or set up an electronic debit) every month.

How, you ask, is a journalist going to pay cash for a reasonably new car? Well, I’m planning on putting all the money I now pay for debt into high-yield savings once the credit card is paid off, likely between $750 and $800 a month. Conservatively, that’s about 24 months to save. And that’s over and above the amount I’m saving now, which likely will increase slightly once the CC debt is gone. That will let me build up my emergency savings so all the debt money can go to replacing my car, and then later toward buying a house.
(The car’s actually a bigger priority than the house right now for reasons I won’t go into. Basically, there are some possibilities at work and in my personal life that could drastically alter the house equation, so I’m giving those time to evolve. The car needs won’t.)