Coffee heat rising

Moments of Fame

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carnival1Dollar Frugal hosts the Carnival of Personal Finance this week, with a funny Wizard of Oz them. Funny’s lament about getting practice for “early retirement” (read “layoff”) while still on the job (more or less) appears in this edition. The latest installment of Aryn’s series, “That Makes Me Stabby,” which has been running at Sound Money matters, is titled Over-Reliance on Retail Growth. Many of these essays are hilarious; all of them make good points. IMHO, this one is very thoughtful and makes some astute observations. Speaking of astute, over at Bible Money Matters Peter reflects that sometimes the best decision doesn’t seem to make financial sense. Another original observation comes from Michael James on Money, whose proprietor ruminates on the financial lessons he’s learned from poker.

Funny was amazed and pleased to see the the rant about cleaning up after the cleaning ladies appear at the Make It from Scratch Carnival, which appears this week at I’ve Got a Little Space to Fill. As usual, this round-up has some great recipes. In a hurry and feeling penurious? Check out this incredibly easy and economical recipe for crock-pot chicken stew, from Pseudo Life, Real Mind. And oh my goodness, over at Woman Tribune, here’s one for poppy-seed noodles. My mother used to make those, only in the good old days women used butter instead of healthier olive oil. And speaking of OMG, you’d better take a look at Ginger Won’t Snap’s post—and amazing pictures!—of her latest silversmithing adventure, in which she learns to do lost-wax casting. I want to do this!!!!!

Broke Grad Student hosts this week’s Festival of Frugality, with a winsomely funny theme about the advantages of being single for Valentine’s day. Funny’s calculation about the cost-effectiveness of riding the light-rail train to work (or not) appears here. In this line-up, I really enjoyed LAL’s rumination about whether frugality comes naturally to some people. Money Ning has some smart things to say about “free” offers and suggests ways to avoid scams. SuperSaver has a highly bookmarkable article about lowering one’s property taxes. Wish I’d read it a year ago…

Image: Carnevale di Viareggio 2008: Uer Iz de Parti by Sailko at Wikipedia

State legislators get their way

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So, here’s what happens when you gut a state university’s funding:

§ Applications to next year’s freshman class at the Great Desert University are closing.
§ Four dozen academic programs are closing.
§ Each satellite campus will be left with only one college; all other colleges and programs at those campuses, which serve the eastern and western districts of a huge, far-flung metropolitan area, will be closed.
§ The nursing progam will be further reduced (enrollment had already been cut) and moved to the downtown campus.
§ The program for training firefighters will be closed.
§ The clinical laboratory sciences program will be closed.
§ The master’s degree in sports business will be discontinued.

Here’s a summary of other programs that will be canceled at this one university:

College of Liberal Arts and Sciences (Tempe)

• M.S. Kinesiology
• Master of Natural Sciences (MNS)
• Concentrations in Natural Science in
• Life Sciences
• Geology
• Speech and Hearing
• MA Anthropology concentrations in
• Archaeology
• Physical anthropology
• Sociocultural anthropology

Herberger College of the Arts

• Ph.D. in History and Theory of Art

Music

• M.A. Music and Music Theory Concentration
• M.M. Music concentrations in
• Performance (Music Theatre/Opera Directing)
• Music (Performance)
• Performance (Music Theatre Performance)
• Performance (Music Theatre Musical Director)
• Music Ed (Jazz Studies)
– Music Artist Diploma

Theatre

•  MFA Theatre concentration in Scenography

Mary Lou Fulton College of Education

• Ed. D. in Curriculum and Instruction
• Ph.D. Curriculum and Instruction
• Physical Education
• Ed. D. in Adult Education
• M.Ed. in Curriculum and Instruction
• Communication Art
• Professional Studies

College of Teacher Education and Leadership

• M. Ed. Education Administration & Supervision concentration inEducation Entrepreneurship

College of Technology & Innovation

• Computing Studies
• M.S. Tech. concentration in Computer Systems
• Electronic Systems
• M.S. Tech.
Electrical Engineering Technology concentrations in
• Instrument and Measurement Technology *
• Microelectronics

Mechanical & Manufacturing Engineering Tech

• M.S, Tech Mechanical and Manufacturing Tech concentrations in
• Aeronautical Engineering Technology
• Security Engineering Technology

Information Management Technology]

• M.S. Technology

Technology Management

• M.S. Tech.in Fire Service Administration
• Undergraduate Certificate in Fire Service Management
• BS in Industrial Technology
• BAS concentration in Materials Joining Manufacturing Technology
• BAS concentration in Fire Service Management
• BAS concentration in Aviation Maintenance Management Technology
• BAS concentration in Digital Media Management
• BAS concentration in Digital Publishing
• BAS concentration in Municipal Operations Management
• BAS concentration in Law Enforcement Management
• BAS concentration in Technical Graphics
*BAS concentration in Computer Systems Administration
• BAS concentration in Cyber Security Applications
• BAS concentration in Software Technology Applications
• BAS concentration in Microcomputer Systems
*BAS concentration in Alternative Energy Technologies
• BAS concentration in Instrumentation
vBAS concentration in Semiconductor Technology

Morrison School of Management and Agribusiness

• B.S. in Agribusiness with concentrations in
• Golf and Facilities Management
• Professional Golf Management

New College of Interdisciplinary Arts and Sciences

• M.A.I.S. (Masters of Arts in Interdisciplinary Studies)
• M.A. in Communication Studies
• M.A. in Social Justice and Human Rights

Now, just between you and me, a few of these programs should have been closed years ago. But most are legitimate professional programs that train workers for decently paying jobs, many of which contribute not just to the state’s economy but also to the welfare and safety of the entire citizenry.

The wacko right-wingers have gotten their way: they’re killing the beast. Let’s just hope the next time the morons who vote for these people need a nurse, a firefighter, an IT specialist, or someone to diagnose and treat their hearing-impaired child, they remember to thank their elected representatives for the result.

If I were queen of the world…

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SDXB forwards this bit of intelligence from Bloomberg:

Feb. 9 (Bloomberg) — The stimulus package the U.S. Congress is completing would raise the government’s commitment to solving the financial crisis to $9.7 trillion, enough to pay off more than 90 percent of the nation’s home mortgages.

And from the Latin American Herald-Tribune we learn this:

SAO PAULO — General Motors plans to invest $1 billion in Brazil to avoid the kind of problems the U.S. automaker is facing in its home market, said the beleaguered car maker.

According to the president of GM Brazil-Mercosur, Jaime Ardila, the funding will come from the package of financial aid that the manufacturer will receive from the U.S. government and will be used to “complete the renovation of the line of products up to 2012.”

“It wouldn’t be logical to withdraw the investment from where we’re growing, and our goal is to protect investments in emerging markets,” he said in a statement published by the business daily Gazeta Mercantil.

Got that? Unimaginable amounts of U.S. taxpayer dollars are being forked over to corporate interests, who are taking that recovery money and investing it in jobs in overseas, while American workers are being thrown out of their homes.

These two reports go to prove my own theory:

If Congress handed out the cash to the people who need it—that would be you and me, folks—the “crisis” would be solved.

If everyone in the country were given enough to pay off the average U.S. mortgage and required to use the money that way,the mortgage crisis would end today. People would suddenly have between $1,500 and $5,000 a month back in their pockets, and they would start to spend again. Everyone would be solvent, and bankers would no longer have to worry about whether people with credit scores in the high 700s could make payments on loans.

Let’s suppose your mortgage weren’t as high as the handout. You’d be required to pay off your mortgage, and then you could keep the rest of the dough. If you were one of those virtuous doobies who actually scrimped, saved, worked three jobs, and paid off your mortgage, you would get the entire handout, no strings attached.

If your mortgage exceeded the handout, you’d be required to apply it all toward your mortgage, AND your lender would be required by law to let you refinance the rest at a reasonable rate, no more than 5% or 5.5%.

Everyone would win. Mortgage lenders would get their money back and not be stuck with a dog of a house that can’t be sold. They could now start over with a clean slate. Borrowers would get out from under toxic debt. For most people, it would no longer matter whether they could sell their houses for what they paid for them. And people who were willing to stay in their homes for a few years would be golden.

What a flicking outrage. You don’t suppose I would ever buy another GM car, do you? I buy Japanese cars because the two Chevvies I’ve owned were junk (though not as bad as the Ford Lemon that was my first car). In the past, I’ve bought anything but American because of the awful quality and safety issues. Now, you can be sure, I won’t buy an American car on principle.

Zillow is full of beans

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What with the proposal that the government should force mortgage rates down to 4 percent, I mentioned to M’hijito that we should be prepared to re-refinance the Investment House, the place he and I are copurchasing partly as shelter for him and a paying roommate and partly as what we imagined would be an investment. He said he didn’t think we’d qualify, because we’re now upside-down in that house. Whence this intelligence? Zillow!

So I thought I’d better check Zillow to see what it claims the house is currently worth. Yup: the site estimates its value at $188,500, which is $46,500 less than we paid for it. But… Directly behind our house is a nearly identical cute little brick house in foreclosure. It has been partially renovated (ours has been completely renovated), but the owners dropped out of the picture before they could finish the job. Flooring is down to the concrete; bathrooms are unfinished; it needs a new roof. Zillow values that wreck at $225,000!

Our house has a new roof, new air conditioner, updated wiring and plumbing, and has been completely gutted out and rebuilt inside. Makes sense, eh?

If Zillow is figuring on a straight square-footage basis, at $188,500 our house is worth $143 a square foot. The house behind it has a 500-square-foot add-on. That should add $71,500 to its value, over the value of ours; in that case, it would be worth $260,00.

Interesting. I wondered what Zillow thinks my place is worth. Entering my address brought up an estimate of $284,500, or $52,500 more than I paid. Noticing a “recently sold” icon to the north, I clicked on it, thinking it was the rental house that Manny, the font of all neighborhood gossip, said was on the market.

But no! It was my neighbor Sally’s house, directly behind me. Zillow claimed it had sold in October for $192,500.

Say what? Sally is still very much in evidence. No “for sale” sign has ever gone up, though sometimes houses around here sell with no notice. But if the house had been sold last October, surely Sally would have moved by now.

A little further investigation showed Dave’s Used Car Lot, Marina, and Weed Arboretum (now under new management) also sold last October, for the same price.

Hmh. Well, these houses are on two parallel roads with the same name, one ending in “Lane” and one in “Way.” The street numbers are the same, so that packages and workmen meant for 501 West Erewhon Way often end up at 501 West Erewhon Lane, and vice versa. Clearly, someone got the address wrong, and Zillow picked up the error. Not enough, however, to post a picture of Dave’s house when you click on Sally’s: what comes up is a fine photo of Sally’s front elevation.

It gets better. Despite the alleged fire-sale price, Zillow values Sally’s house at $300,000, well above what any house in this neighborhood has commanded over the past two years. Her house is old and unrenovated, replete with the original harvest gold Formica counters and matching appliances. It’s clean and neat, but it needs a paint job, a new roof, a new air conditioner, and a full interior remake to bring it into the three-hundred-grand range.

Dave’s house is valued at $289,500, despite the $192,500 selling price. It is two square feet larger than mine, sits on the same-sized corner lot directly across the street from mine, has a pool about the same as mine, and landscaping comparable to mine (but lacking fruit and shade trees). It was built in the same year as mine by the same builder. It has a minuscule, dark kitchen, needs a new roof and new air conditioner, and soon will need new pool equipment. My house, in contrast, has a large, bright kitchen with a skylight (one of four in the house), sunny and open rooms, gorgeous tile floors throughout, a park-like yard with not one, not two, but three beautiful outdoor sitting and entertaining areas, a new roof, new kitchen appliances, new pool equipment, new bathroom everythings: Zillow values it at $284,000.

And this makes sense…how?

Zillow is the last place I would go to get a reasonable estimate on the value of a house. If you’re interested in buying a house, get your Realtor (and do engage one who alleges to represent the buyer, despite the speciousness of that claim) to run the comparables in the area and show you a printout. Visit those houses to be sure they really are comparable to the place you covet.

If you want to know what your house is worth, any Realtor will run the comps for your place. This is generally a free service, offered in hopes that you will list with the Realtor who is nicest to you. Ask a real, live Realtor, not Zillow, about the value of your house.

Sweet potato-carrot soup

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It’s supposed to rain (but won’t, because I dumped fertilizer on the citrus and left it there for the rain to water into the ground: I have arcane powers). Nice evening for something hot and comforting, like fresh homemade soup.

For the past week, I’ve had nothing to eat but soup and ice cream. I’m mighty tired of soup and ice cream. Especially soup that comes out of a package or a can. I’d like some real food, but doubt that would be a wise thing to consume just now. So, I decided to see what I have in the house that can be reduced to a soup-like form but still taste…well…real.

A survey of the premises revealed the following (yes, the cupboard’s a bit bare just now: I have $152 to last till the 13th; will need to buy gas and dog meat before then, and so am treading lightly in grocery store aisles):

From the pantry: yam, a few carrots, an onion, a box of Target’s finest gourmet chicken broth
From the backyard: an orange, some parsley, some thyme

I chopped up the onion and sautéed it in a little olive oil. While it was percolating away, I decided to sweeten the pot—literally—with some turbinado sugar, added to the cooking onion. Peeled the thyme leaves off their stems and put them into the pot after the onion was nearly done. Meanwhile I cleaned and cut up the yam and carrots, then squeezed the orange.

When the onion was nice and translucent, it was into the kettle with the yam, carrots, orange juice, and chicken broth. The parsley, I reserved until later. Testing this brew led to a couple of afterthoughts:

Added a capful of bourbon and a generous dash of tarragon (about 1/2 tsp?). The result was good and mellow.

And so, to simmer:

When the vegetables were tender all the way through, I puréed the whole mess in the blender. The result was so smooth there was no need to run it through a strainer.

Another few afterthoughts occurred. I added a small amount of vanilla—about 1/4 to 1/2 teaspoon—some fresh-ground nutmeg, and a dash of cumin.

With the parsley added for garnish, dinner was served. And it was not too poisonous at all. All things considered.


😉

Do no-buy days work?

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For a while, I’ve suspected that “no-buy days”—days in which you deliberately stay away from merchandisers of all kinds—would cause you to spend less on those days but create a pent-up demand that would predispose you to more spending and stimulate impulse buys on the days you allowed yourself into the stores.

In the wee hours of this morning, as I was wondering how I could get around what is now a migrating closing date on my American Express account, it occurred to me that instead of “no buy” days, you could establish set “buy” days during a given billing cycle, and otherwise letevery day be a no-buy day. In other words, you would not set foot in a retail establishment or click on a Web store’s site except on specific days set aside to make purchases. This thought drove me to Quicken as dawn was cracking.

There I discovered that over the past year I’ve tended somewhat in that direction: more and more no-buy days and fewer and fewer days in which I do purchase things. In January 2008, for example, I made 16 trips to various food purveyors, dropping an astonishing $734.33 on groceries. In January 2009, I made 10 trips and spent $333.99 on groceries.

Evidently, fewer trips to grocery stores mean less cash spent on groceries.

Now, in January 2008, my German shepherd was still living. She ate a lot of food, and that may account for some of the whopping bill. But what really accounts for it is that I was in the habit of stopping by Trader Joe’s or AJ’s (a local “gourmet” market) on the way home from work, where I would regularly buy a snack and beer or wine. I’ve almost stopped doing that. To the extent that I buy beer or wine—which I’ve also almost stopped doing—I buy it at Costco, where Corona is to be had at a significant markdown over the grocery-store price. And I’ve been sick for the past month and haven’t felt like eating…that could have to do with the drop in spending.

The December grocery bill was a hundred bucks more than January’s, but then I did throw an expensive Christmas dinner party.

The truth is, it looks like staying out of grocery stores cuts one’s bills significantly. With a little tinkering—establish specific days for shopping, build a week or ten days’ worth of menus beforehand and attack the store with a carefully crafted shopping list, and shop more at Target or even (ugh!) Walmart—it ought to be possible to reduce the grocery bill to a sane level. Three hundred and thirty bucks for one old lady and one small dog is not sane.

The trouble with grocery shopping at Target is that Target is a dangerous place. The last time I saved a bunch of money on grocery items, I spent $150 on sheets and bedding that I really didn’t need. I also spotted a $250 bicycle of the type I covet, available at other purveyors for $400 to $700. Ditto Walmart: they have the minivacuum cleaner I want, the one with the electric cord. Every other store carries only the cordless variety, which won’t run long enough to vacuum an entire houseful of tiled floors. All the big box stores—Costco, Target, Home Depot, and Walmart—pose the same threat. You go in to buy necessities, but they offer so much other tempting junk that it’s very, very difficult to get out with your wallet intact.

But I will say: last year at this time I was spending way too much at Trader Joe’s and AJ’s, emporiums that sell almost nothing but groceries and household items.

Here, apparently, is the key to surviving on a reduced income: plan, plan, plan! Plan specific shopping days and gasoline-purchase days. Plan purchases carefully, using lists and resisting unplanned buys. Defer impulse buys until the next scheduled shopping day, to give yourself time to think it over. And plan to make every day a no-buy day except for the scheduled shopping days.