Coffee heat rising

Too much debt? Sell your house and rent it back!

For Sale--Make Offer!

Ever doubt whether your elected representatives should be your role models? Well, here’s a new twist on finance guaranteed to convince you, one way or another: the Arizona state legislature proposes to sell state capitol buildings, presently owned free and clear by the taxpayers and including the state House and Senate buildings, and them rent them back from the new owners. So deep in debt is our feckless state government that this desperation move apparently makes sense to some of our august leaders.

Think of that.

Now let’s suppose you, the personal financier, owned your house free and clear; let’s imagine it’s worth, say, $300,000. You’ve made a few small errors in your personal finance adventure…to wit, you’ve charged up $350,000 on your credit cards, and now that the economy has imploded, you’re out of work and can’t pay those pesty, interest-bearing bills.

So to raise some cash to hush up the bill collectors, you sell your house to Bob Buzzardo for $280,000, about the best you can do in the depressed real estate market. You now have 280 grand in cash, and Bob agrees to rent the house back to you for $1,678 a month (not including taxes and insurance). You propose to pay down those nagging bills at the rate of $2,000 a month, using the money you expect will soon “begin flowing into [your] coffers,” creating a monthly outflow of $3,678. At that rate, your $280,000 will last 76 months, or about six years and four months—assuming you’ve invested the principal gained from your sale in a reasonably safe instrument.  At that time—when you run out of cash—you will have paid down your $350,000 debt by $12,688.

You will still be in debt over your head, and now you’ll be out of money to pay against those debts and also out of money to pay the rent.

Amazing concept, isn’t it?

Okay, I admit: a state government is not a household, and government finances do not equate to personal finances. Still, raising taxes—a move our legislators stoutly decline to do, especially where business taxes are concerned (horrors!)—is roughly the equivalent of taking a second or third job. Which would you do: a) take a side job or two; or b) sell your house, rent it from the new owner, and use the proceeds to pay the rent and try to keep the wolf from the door?

If your choice is the second, maybe you should consider running for public office.

😀

Best of July 2009

Recently I decided to follow other PF bloggers’ example and post a brief round-up of the best articles that have appeared on Funny about Money each month. So, for the inaugural edition, here are my choices:

Number 6:
Update: How Deferred Compensation Works with Social Security

Number 5:
Other People’s Pets

Number 4:
If You’re in Debt…

Number 3:
The Twilight Zone (guest post by Stephen Taddie)

Number 2:
Foil Debit Card Hacking and Balance Inquiries

Number 1:
What’s a Master’s Degree Worth?

And my choice for Funny’s Funniest?

When Real Estate Is Funnier Than Real Life

Choir!

Hey! The director of the choir where I used to sing (or, more accurately, pretended to sing) said I could come back. Even though I was with the choir for about three years, last weekend I revisited his summer workshop for newbies. Since I’m very naive about music—never learned an instrument and can’t read music—every time this guy opens his mouth I learn something new.

It’s ironic that even though I’m strongly averse to organized religion, my life has been so miserable since I left my husband that going to church has been about its highest point. To the extent that I have any sense of the noumenal, it barely rises to the level of agnostic, and my family has a dark history with organized churches that rings through the ages like time’s endless echo.

I joined the choir for several reasons: first, because I’d attended a number of services and realized the impressive music program was effectively delivering a free, very high-quality chamber music concert almost every Sunday; then because each summer the choir used to travel to Europe and sing in various elegant venues; and finally, because this particular church is a node of old Phoenix’s upper-crust society and I hoped to meet an eligible man.

Well, wouldn’t you know I’d take up this crass reasoning in 2001. After 9/11, the planned trip to Italy was canceled when the State Department issued an advisory urging that Americans not go there. The director probably would have canceled anyway, since he and about half of his followers were frightened enough to be wary of air travel, but the advisory made up his mind.

That notwithstanding, I found I loved singing in the very fine music program, and even though I didn’t buy into the religious dogma, sitting in the choir loft following the ritual as it evolved through the seasons had an effect much like meditation: it forces you to focus on something other than yourself and your petty woes. And I liked the people a lot.

This worked out well for two or three years, until I moved from teaching to low-level administration. In teaching, you get to work any 18 hours of the day you choose. Establishing and directing a high-profile operation housed in the dean’s office required fewer hours, but I needed to be on campus from eight in the morning till five or six at night, to which was added a commute that took an hour each way. This left only the weekends in which to do survival tasks and maintenance work, which around this place are considerable.

I’d joined the chant choir as well as the senior choir, so I was singing Saturdays at evensong as well as every Sunday morning. There just weren’t enough hours in a two-day weekend to handle all the work that had to be done and spend half the day on Sunday plus late Saturday afternoon down at the church. And some nights I’d arrive at Wednesday evening choir practice so tired I literally could not hold a conversation—by eight o’clock I could barely speak, much less sing and far less understand what the director was trying to teach us and remember it until Sunday.

Then came the day that a guest speaker took the pulpit and told us that if we didn’t buy into George Bush’s agenda in the Middle East, we were not good Christians and not good Americans.

I just went right through the roof. I don’t consider myself a good, bad, or any Christian. But I am a loyal patriot, one who has lived in the Middle East a long time, and by then I could see the road that man was leading us down. Any halfway conscious entity who looked hard at it should have been able to see it. It was clear to me at the time that this country was headed toward disaster, the very disaster we see manifest today and that, oh believe me, my friends, has barely begun: the harm the Cheney-Bush administration wreaked upon this country will not resolve itself in my lifetime and possibly not in my son’s. And since most of the readers of this blog are my son’s age…well: you see the cause of my acute annoyance.

I hung around for a couple more weeks, hoping that I could climb down off the ceiling, and I talked to the newly installed priest about the effect these ill-considered and (IMHO) insulting words had, suggesting he might want to allow a response. This didn’t register…mostly, it appears, because he had too many other problems to cope with. So I quit.

As it develops, he’s no longer with us. Apparently he had a difficult time with the complex politics of this particular urban parish, a little more yeasty, I guess, than it appears on the surface. I’m sorry to hear that, because he was a good man. A new pastor has been hired and is on his way to pick up the reins as I scribble. The guest speaker, a much respected, otherwise politically liberal rabbi who has been an Arizona fixture for decades, is now too elderly to have much more to say.

So. We’ll see. I hope this works out.

Stress Control: Second insight

Yesterday I described a small epiphany that freed up as much as two hours a day of precious morning time. It helped to relieve the stress and frustration aggravating the bruxism, the insomnia, and the general irritability that help to make my life miserable. Surprisingly, a day later another, equally significant revelation dawned.

Second moment of insight: blogging has been consuming way too large a chunk of my day. And because I’d been doing it first crack out of the box, every single day, it added to the time-stress created by a huge raft of daily chores that need to be done before I can even think about going to work or having a life. It prevented me from getting any exercise in the morning, and…well, it can’t be healthy to spend hours on end staring into a computer monitor.

The minute I would roll out of the sack, usually around 5:00 or 5:30 a.m., I would take the dog out briefly and then stumble directly into my office to call up WordPress. This had become such a firmly established routine that Cassie would run straight to the office after finishing her morning business.

Then I would spend one to two hours writing and cruising the blogosphere. From there it was on to cleaning the pool and watering the plants, another one- to two-hour set of tasks. All this took place before I so much as brushed my teeth, to say nothing of feeding the dog, brewing a pot of coffee, and fixing my own breakfast.

I don’t want to quit blogging, first because I enjoy it and second because FaM is just beginning to make a little money. But long before this, I’ve thought that I devote far too much of my attention to computer screens and far too little to living a normal life.

A day after the pool insight, I happened to feel rested enough to write three posts in one day. As I was about to publish the second one, it occurred to me that I could buy a day of vacation from blogging by scheduling that post to go live 24 hours forward. And the third post could go up two days forward. Hmmm…two days in which I would not have to write for the Internet.

I already had a guest post in-house and was about to ask Stephen Taddie for permission to post his latest investment letter: two more days off! Suddenly, I had the makings of a five-day break.

Next morning I stayed far away from the computer, much to the dog’s confusion. Didn’t even check the e-mail.

Now, with neither the pool-and-yard frenzy nor the writing-and-surfing session starting my day, a good four hours of the morning were returned to me. If I got up at 5:30 or 6:00 a.m., by 7:00 or 7:30 I was ready to get on the road.  And best of all: I felt neither frazzled nor horsewhipped!

So, that’s how I’m going to deal with blogging from here on out:

Write about three posts twice a week, and schedule them out over the coming days.
Do at least one easy-to-scribble retrospective “Best of FaM” post a month.
Solicit guest posts to give friends and fellow bloggers a say at FaM.
On days when I’m not writing, stay away from the computer monitor as much as possible.

After a couple of blog-free and pool labor-free days, I began to feel a lot less stressed. It’s no wonder my temper has been short, and no wonder I’ve been grinding my teeth. On top of the workplace headaches, I’ve been trying to do too many at-home jobs—half of them unpleasant jobs—in way too little time.

So, two small flashes of insight led to reorganizing routine activities so as to free up four hours of time—every day. Have you had a similar experience? What strategies do you use to keep yourself from being overwhelmed by responsibilities and tasks?

When real estate is funnier than real life…

Here’s a fine, recently built little palace, billed as 1,400 to 1,600 square feet, for sale in the far-flung Phoenix suburb of Anthem, an instant “community” that contributed richly to the destruction of, at the height of the real estate boom, an acre an hour of irreplaceable Sonoran desert habitat. This great lake of lookalike tracts was expected to house as many people as live in the city of Flagstaff, Arizona, most of whom would commute (endlessly!) into town over one, count it, one freeway.

In 2005, somebody paid $329,000 for this place. The current owners have been trying to unload it for the past seven months, with no luck, at the bargain-basement price of $199,000—a 39.5 percent loss on their investment.

The address?

2446 West Myopia Drive

😆    🙄    😆

Stress Control: First insight

In two small moments of Insight, I recently figured out how to cut down the Himalayan Range of chores that face me every morning and thereby relieve a great deal of daily stress.

My days start with more work than I can easily handle, most of it ditzy stuff that frustrates because it’s never done. Even as you’re plowing through chore after chore after endless chore and you’re just beginning to see what you hope will be the end of it, whack! There’s a pot you forgot to wash, another plant to water, a new mess to clean up, another timer dinging at you. And it’s tooth-grindingly frustrating because you know that when you finally do finish, tomorrow morning you’ll have to do it all over again.

Harvey

A major contributor at this time of year is the pool. The summer winds have come in, bringing no rain but bushels and bushels of devil-pods and strappy devil-pod tree leaves. I took Harvey the Hayward Pool Cleaner up to Leslie’s to be fixed after he came to a dead stop in the shallow end; turns out he’d quit because he was choked with devil pods.

LeafBonnet
Runs on the garden hose!

While I was gone, the pool’s system came on. Checking to be sure I’d remembered to put the skimmer basket in, I realized the pump’s circulating action had raked all the pods and leaves into a couple of big mounds, up against the pool’s north wall. With the debris piled in one place, it was pretty easy to suck up the litter into the bonnet cleaner—a chore that usually takes a half-hour or forty minutes, when I have to run the thing back and forth over the entire floor of the 18,000-gallon pool and over all the steps, and then flip it over and try to skim the worst of the twigs and palm-tree detritus off the water’s surface. With Harvey’s hose disconnected from the skimmer pipe, the pump had pulled all the floating debris into the skimmer basket—a half-bushel of junk that didn‘t eventually drop to the bottom to choke Harvey again.

Studying this much-easier-to-deal-with state of affairs, it occurred to me that I could pull Harvey out of the pool in the evening and drop in the skimmer basket. Then, instead of running the pump from about 10:00 a.m. to 6:00 p.m., I could set the timer to come on around 4:00 a.m. By the time I got out of bed at 5:30 or 6:00, the system would have run 90 minutes or two hours, long enough to push the junk on the bottom into a single pile and to skim the floating trash off the top. Then I’d only have about ten minutes of work to clean up the Harvey-gagging stuff. Once that junk was out of the way, all I’d have left to do is drop Harvey back in the water, where he could vacuum up the dust that blows in every evening.

“All I’d have left,” because it also dawned on me…duh! Hosing the dust and incipient algae off the tiles and pool walls doesn’t have to be done at the crack of dawn! As long as it’s done every day or so, it can wait until evening, when I usually go in the pool anyway.

So! Next morning, an hour and a half to two hours of daily drudgery dropped to about 20 or 30  minutes of easy work.

That freed time to take the dog for a walk before the heat came up and still enjoy breakfast 90 minutes or an hour earlier than usual. By 8:00 in the morning I was ready to leave the house: something that normally doesn’t happen before 9:30 or 10:00.

Better yet, I didn’t feel just whipped when I climbed into the car. The jaws were not clenching, I felt much calmer on the road, I did not (for a change) feel like murdering my fellow drivers. And though I could do without spending my days at GDU, for the first time in many a moon I did not arrive at the office with a chip on my shoulder.

Refreshing!

Tomorrow: A second liberating insight