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I have big goals in regards to finances for 2013.

Here are some things I am doing to save money. Please share your tips or goals or both!

*Cancelled several subscriptions (including Netflix!) which will save over $600 for the year
*Cut my own hair should save around $100
*Using products that last longer and cost less...using fewer products.
*Cutting way back on sugar/candy
*Using King Sooper card to save 40 cents per gallon on gasoline (plus this will earn money for my scout)
*Use the library more so I don't have to buy books or use Netflix
*Go without a new laptop
*I might go back to couponing

just me wrote:*Go without a new laptop

What operating system does your old laptop use?

Good for you, Just Me!

I’m doing two things along these lines. First, I purchased a home. It appears to me at least that we’ve reached the bottom of the housing market, and interest rates are insanely low. So, I locked that in with a 30-year fixed-rate mortgage. The principle + interest is 35% less than what I was paying in rent, and 33% of the payment goes towards lowering principle. So, if “throwing away” money is either 1- rent or 2- interest + property taxes, I’m now throwing away about half of what I was when I was renting, and the amount I’m throwing away will go down every month rather than up with every rent increase.

Second, I created a budget. I have all of my accounts set up in iBank, and put a process together of keeping everything up to date. I'm also going to print a set of iBank reports that show how I'm doing. The idea is that if you force yourself to look at reports every month that show everything you’re spending your money on, you should be able to make better decisions and keep the big picture in mind.

Very awesome housing deal, Analytics! I live in my parents (very nice, large) basement for very low rent. Plus, I work from home saving in gas and all that jazz. Housing costs can be a budget breaker!

Shades, Windows 7.

I love budgets and budgeting, so I already have that going for me. I used to use Excel to keep track of spending, but with the death of my laptop I stopped. Now I just use paper.

I have a weekly auto-withdrawal that goes into my savings account.

just me wrote:I have big goals in regards to finances for 2013.

Here are some things I am doing to save money. Please share your tips or goals or both!

Spending less is bad for the economy. Why do you hate America, JM?

But seriously: good for you!

We refinanced our home last year to a ridiculously low fixed interest rate 15-year mortgage. We consolidated our old 30-year mortgage with an existing home-improvement loan and our current monthly payment is about half the total of the old payments. We still have an auto loan to take care of, and we are making accelerated payments and will pay it off way ahead of schedule.

We have also reduced our grocery spending by making more efficient use of our kitchen garden and doing a better job of storing our home grown veggies. Plus, the home-grown stuff just plain tasted better!

Bret Ripley wrote:Spending less is bad for the economy. Why do you hate America, JM?

I love this so much I might use it as a siggy!

But seriously: good for you!

We refinanced our home last year to a ridiculously low fixed interest rate 15-year mortgage. We consolidated our old 30-year mortgage with an existing home-improvement loan and our current monthly payment is about half the total of the old payments. We still have an auto loan to take care of, and we are making accelerated payments and will pay it off way ahead of schedule.

We have also reduced our grocery spending by making more efficient use of our kitchen garden and doing a better job of storing our home grown veggies. Plus, the home-grown stuff just plain tasted better!

YUM! Fabulous ideas.

My paid for vehicle is 12 years old. I will probably need to buy a new-to-me vehicle this summer. SAD! I plan to pay cash, though...or just finance a tiny bit and pay it off in a few months.

just me wrote:Very awesome housing deal, Analytics! I live in my parents (very nice, large) basement for very low rent. Plus, I work from home saving in gas and all that jazz. Housing costs can be a budget breaker!

Shades, Windows 7.

Absolutely--you have a great deal!

People who know me are surprised I went back into home ownership. Here are the pros and cons of my decision:

Financial Advantages

1. Mortgage Interest + Property Taxes is less than Rent
2. Interest + Principle locked in, rent increasing annually

Financial Disadvantages

1. Huge, illiquid asset—expensive to sell
2. Makes it harder to move if I needed to for an opportunity
3. Value of home fluctuates—the mortgage means I’m leveraged and could lose a ton of money if I had to sell when the value is down
4. High maintenance costs
5. Persistent temptation to remodel, redecorate, refurnish, and do other expensive things to it
6. More space to heat in the summer, cool in the winter

It isn’t clear to me the advantages outweigh the disadvantages, but I’m finally at a place now where making the minimum payments isn’t a stretch, so the breathing room helps.

Analytics wrote:It isn’t clear to me the advantages outweigh the disadvantages

Oh man, what you've admitted here. Market efficiency predicts that the advantages shouldn't outweigh the disadvantages of renting vs. buying. And rational expectations/policy ineffectiveness predicts that government policy shouldn't be able to encourage home ownership by allowing one to deduct their interest or property taxes.

BUT..congrats. I refinanced into a 15 year mortgage last year and I'm satisfied with the smaller deduction, but with the benefit of watching the principle shrink by a large amount every time I pay. What I learned in 2005, when my distrust in market efficiency reached its epic high and the disparity between rents and mortgage premiums left me shopping for a trailer to move into; whether the market is up or down, your advantage over the competition is decided by the amount of equity you have vs. everyone else.

The one really cool thing about owning your house is working on it. don't be afraid to buy power tools. you only live once. Seriously, once you tear appart a room or a kitchen with some hair-brained idea and you're forced to make it work, you'll find a whole new plane of being. You won't give a rat's ass about math or anything theoretical. Seriously, if I could get the family out of here more often, you guys would never see me posting.

Analytics wrote:Good for you, Just Me!

I’m doing two things along these lines. First, I purchased a home. It appears to me at least that we’ve reached the bottom of the housing market, and interest rates are insanely low. So, I locked that in with a 30-year fixed-rate mortgage. The principle + interest is 35% less than what I was paying in rent, and 33% of the payment goes towards lowering principle. So, if “throwing away” money is either 1- rent or 2- interest + property taxes, I’m now throwing away about half of what I was when I was renting, and the amount I’m throwing away will go down every month rather than up with every rent increase.

This. I bought a house and my mortgage payment is less than a so-so two bedroom apartment's rent. And it's all...mine.