Monday, August 11th, 2008 |
Going To One Income?
We’re going to one income very soon. This is the last month that we’ll receive two paychecks, as Mrs. PT will be going back to school next month. I decided I would do a little preparation. I did some research and came up with 9 tips for going to one income:
- Reorganize Your Banking Situation - If you’re like me, you have multiple bank accounts. One for each spouse’s paycheck. These two accounts likely have their own direct deposits and outgoing automated bill pay and withdrawal. In order to ensure you don’t incur any NSF fees, you’ll need to adjust your automatic bill pay and withdrawals. Next week I’ll share how I moved my bill pay to ING DIRECT’s Electric Orange checking account. (subscribe and never miss a post)
- Readjust Your Retirement Contributions - Since you’ll likely lose the ability to contribute to one of your retirement accounts (401(k), 403(b), Stock Plan), you’ll need to make up for it using an IRA, or adjusting the income earning spouse’s contributions. We’ll lose the option of contributing to a 403(b). I plan to supplement that by maxing out a Roth IRA by next April and by increasing my 401(k) percentage.
- Know Your Finances - Beyond banking and retirement, make sure you have a full understanding of your financial situation prior to pulling the plug on the second income. I recently built a dashboard view of my finances. Using something like this or a simple pen and paper budget accounting for your new income and expenses will give you confidence in making the move.
- Get Serious About Reducing Unnecessary Expenses - If, after you analyzed your finances you realize things are going to be tight, it’s time to get serious about reducing your expenses. Start with the unnecessary items like dining out and luxury items. Learn to live a frugal life.
- Consider Going To One Car - While we’re discussing reducing expenses, if going to one income means that a spouse will now be at home, consider selling one of your cars. We’ll be keeping our second vehicle because Mrs. PT will need to commute to school, and because here in sprawling Dallas it’s really hard to go without two cars.
- Make a List of Frugal Things You Can Do - The last thing you want to do is shut off one income and increase your expenses because you’re spending more out of boredom. Check out your local library and community event calendar for good ideas. An awesome resource for this is The Simple Dollar’s 100 Things to Do During a Money Free Weekend. The ideas in here are great for anyone who stays at home like Trent.
- Consider Working From Home - If you’re making the move to one income to stay at home with kids, consider doing some part-time work with a few free hours you may have.
- Make Sure You’re Still Insured - Don’t forget that the loss of a paycheck usually means you’ll be losing benefits as well. Health insurance is something you may need to switch to the other spouse.
- Adjust Your Tax Withholdings - Here’s a plus. Moving to one income means you’ll likely pay less in taxes. Consult your tax professional and see if it’s necessary for you to adjust the withholdings on the remaining income.
Should I Go To One Income?
If you’re trying to decide if going to one income is a good idea for your family, use the Two Income vs. One Income Calculator (@ nytimes.com) which will tell you what you’re truly giving up if you drop one income. The calculator takes into account expenses like daycare and home maintenance, as well as things you wouldn’t think of, like “un-researched expenditures” (the amount you paid more than the price you would have paid if you had time to properly research it).
Of course, the financial aspect is only one portion of it. There are many great reasons for going to one income. I believe a majority of us can make the move with just a few sacrifices.
What Others Are Saying About Going To One Income:
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As always, I don’t know all the answers. I couldn’t think of a 10th tip for going to one income. If YOU have one please leave it in the comments below.
Posted in Frugal Living, Organize Your Finances, Tax | 14 Comments »
Tuesday, August 5th, 2008 |
Walking Directions From Google: The Frugal Choice
A very wise and frugal friend shared this little tool with me recently: Google Maps Walking Directions. Apparently Google just rolled this out. Seems to be an interesting tool. The street views are cool too. What’s the personal finance tie-in? Everyone living in urban areas (and maybe a few daring others) can now map out your next walking route across town instead of using you’re gas-guzzler. You spend less on gas. I reached with that one, I know. 
(click to enlarge)
Why Use Google’s Walking Directions?
First of all, is it a bit weird that they even have this. Isn’t it? Second, what’s the difference between walking directions and driving directions? Don’t hold me to this, but I think they’ve taken into account the terrain and available sidewalks when providing you a route. They also don’t factor in one-way streets like driving directions would. Note the warning from Google, “use caution when walking in unfamiliar areas.” That struck me as funny for some reason.
More just for fun in case you’re curious…
Anyone using Google Maps Walking Directions regularly yet?
Posted in Frugal Living | 4 Comments »
Tuesday, July 29th, 2008 |
Kroger Gift Card 10% Promotion
Just a quick reminder that Kroger’s Gift Card promotion is about to end. Get your cards by this Thursday, July 31st. No word yet on an extension. From the Kroger website:
May 2nd through July 31st buy $300, $600 or $1200 worth of Kroger Gift Cards, and get an extra 10% added to the value - FREE!
Offer applies to in-store purchases only of new Kroger gift cards, and does not include re-loads on existing gift cards. This offer cannot be combined with any other discount or offer. Limit one offer per household, with Kroger Plus Card. Bonus amounts cannot be redeemed for alcohol, tobacco, pharmaceuticals or lottery tickets.
According to Kroger, this deal should also be available at Ralphs, Fred Meyer, Food 4 Less, Fry’s, King Soopers, Smith’s, Dillons, QFC and City Market.
10% Off Gas Prices Or Groceries
Remember, these cards can be used for groceries AND gas. Go pick up one of these $300 cards and have a free $30. That’s a great return for your money.
Lastly, this deal was dreamed up by the fine folks at Kroger due to the economic stimulus. However, you don’t have to use your stimulus check to get the cards.
Posted in Frugal Living | 4 Comments »
Tuesday, July 22nd, 2008 |
Dallas, Texas
Do you live here in the Dallas/Fort Worth area (or the DFW Metroplex as we call it)? Or, are you visiting this area sometime soon? If so, and you strive to live frugal like me, you’re probably on the lookout for some frugal things to do. I’ve put together a listing of some of the more interesting things to do here in the DFW Metroplex. Most are free or $10 and under a person.
Getting Around
Just a quick note to say that if you’re visiting Dallas, know that you’ll need a car while you’re here. Everything is just too spread out and public transportation wouldn’t have a chance at covering it all. There are a few train lines if you’re dead set on using public transport. The TRE runs between Fort Worth to Dallas (DFW Airport is a stop), and then there is the DART which runs from downtown Dallas up Interstate 75 to the suburb of Plano. Prices are very reasonable (under $10) and the rides themselves are fun and somewhat scenic.
Major Attractions
Sports and Recreation
- The Ball Park in Arlington, home of the Texas Rangers ($6 Adults / $3 Kids). Yes, baseball is still affordable here. Take that, Yankee fans!
- Dr. Pepper Stadium, home of the Frisco Rough Riders minor league baseball team ($7). Beautiful park.
- Six Flags Over Texas While very fun, it’s not very frugal (tickets start at $29 a person). Still, if you make a whole day of it and bring your own food it can we reasonable.
- Lone Star Park Horse Racing ($3 Adult)
- DORBA Mountain Bike Trails (Free, with your own bike). There are some great trails in this area. My favorite is the Lake Grapevine Trail.
Parks and Scenery
There aren’t many scenic views in Dallas. There are, however, plenty of lakes and parks (all free). Here are some of my favorites. But first, stop by the Reunion Tower Observation Deck ($2 Adults / $1 Kids) to get a good look at downtown Dallas.
Museums and Things
Random
Restaurants
Final Comments
Wow. I like my town. There’s so much to do here and most of it is pretty reasonable as long as you have a fuel-efficient car to get you there. There’s so much more that I left off. I’ll try and update this page as new things come to mind and as you add your comments.
For more information on the DFW area, check out my favorite guide, GuideLive, and their Top 100 list.
Remember to visit the “Frugal Things To Do In…” main page to see what other cities are covered and to add your own post.
Posted in Frugal Living | 11 Comments »
