expert says: forget the ER fund

Just as I begin mine, someone says it’s not that important.

“The whole idea that everyone needs a big pile of cash, and needs it right now, should be rethought. In reality, the failure to have a fat emergency fund isn’t inevitably a crisis. At the same time, those who feel safe because they have three or even six months’ expenses saved up might be kidding themselves.”

Read the rest here.

weekend recap and future questions

Friday lunch: $7
Ticket to see Wicked: $46
Friday dinner: $10
Saturday apartment-hunting and thrift-storing: $0
(Saturday meals at home, minus a snack someone else paid for)
Sunday lunch: $12

Total Cost: $75

All in all, a good weekend, though one that left me with a lot of questions for the future. I’ve been thinking a lot about moving out on my own. It scares me, honestly, but then: that’s what all these articles say happens to someone who’s emotionally immature. Am I immature? I don’t know. I have a great relationship with my parents and like talking to them. They don’t want me to move out, and they don’t want me to pay them rent. I like living here. But maybe I’m taking advantage of a pretty nice setup.

My biggest hesitation with moving out is that I’m afraid I’ll be lonely. Those of you who live alone, do you deal with this?

apartment research

The thing about the Chicago suburbs is they are so different. I was searching on Craigslist a little today, and here’s what I found. Each apartment is within the $1000-$1100/month range; some are new, some old; some are large, some small. It’s fascinating.

1. Far western suburbs (Plano) 2 BR, 1.5 Bath townhouse, brand-new:

2. western suburbs (Oak Park) 2 BR, 1 Bath condo:

3. Northern suburbs (Evanston) 2BR, 1 Bath, in 2-flat:

4. Southside (Beverly) 3BR, 2 Bath apartment:

apartment-hunting day

Today we toured three vintage apartments in the area I’ve been dreaming about. They were a little more expensive than I should be spending, but they’re all two-bedrooms. I’d booked these showings before I knew my friend was deciding not to move. My brother would be willing to rent a room from me, since it’d be closer to his job/school than our parents’ home is. He doesn’t have a lot of money, so I’d only charge him $400/month. Still, that would take a big chunk out of my cost.

#1 was fine, with a full set of recent upgrades. It was set on a quiet, tree-lined street, not far from where I work. Negatives: it was very small, with two teeny-tiny bedrooms and awkward-opening closets, and it was three long flights above the basement laundry area. Also, the basement was dark, creepy and fully exposed to the other tenant. Price: $1260/month. No go.

#2 was better, with much more space and great vintage touches. Solid doors, original molding, great windows with views of the quiet streets. Negatives: again three flights from storage, set on a kind of creepy street and with a half-size dishwasher. There’s no eat-in area in the kitchen, so the living room doubles as that. Price: $1250/month. Probably not.

#3 was perfect, oh was it perfect. Arched entryways, hardwood floors, crown molding, built-in bookshelves, loads of windows, a living room and a separate dining room plus an office. It’s set in the city’s best section: right on one of the two nicest streets. I could walk to the library, downtown, the El. Really, besides only having one bathroom, this condo was everything I’ve ever wanted and then some. Only negative: it’s a 6-month lease. The owner has had it on the market for a while, and his term just ran out. He wants to rent it until spring/summer so that he can make his mortgage payments a little easier. There’s the chance I could buy it at the end of the lease (I’m not ready now), but it’s a little expensive for having only one bath. Price: $1100/month (owner is paying $1500 mortage).

I’m glad we went because it helped get the whole apartment thing out of my system. I know that I can move out if I want to, but I’m just not sure if I want to. I imagine moving a sofa and tables and matresses up the two flights of stairs in #3, and I imagine moving them all out again in six months. Seems like a lot to go through, especially since I don’t have to move out.

And that’s where I’m at right now.

Emergency Fund Decision

I’ve decided to go with the ING Orange Savings account (Thanks, GB, for the referral!). I deposited $250 last night and am just waiting for them to verify my bank account in order for everything to process.

Thanks to everyone for the advice—you reminded me what I love best about the PF blogging world.

friends without money

My visiting friend isn’t worried about money, she tells me.

She’s working part-time, the night shift, at a resort. She mans the desk and does some paperwork/payroll stuff. Pay? $9/hour.

She’s about to take add on another part-time job, for which she is willing to stay in her hometown. It isn’t her dream job or anything; it’s not even in the field she’s interested in. But, she says, the people are nice. And it’s something. Pay? $8/hour, with a chance to move up to $9 after 90 days.

I’ve tried to talk her into a move to Chicago, where I’m convinced she’d make much more than that, even in a low-level office job, but she wants to stick with this plan. I think in part she doesn’t want to move away from home again, and in part I think we’re both silently wondering if we’d still love each other after living together not in college.

I’m happy for her, in the sense that I think she’s made this decision and I support her. But I’m worried for her, too.

She just spent the last year living in New Orleans, making around $12.50 hour and having few expenses beyond rent, food and entertainment. She’s still enjoying the money she saved, in her bank account, then.

She has no health insurance, no savings, no back-up plan outside of family.

Today at lunch, I asked her if this is what she really wants or if it’s what she’s settling with. She said she didn’t know. We talked about money—about the future. She knows what I think.

But I don’t plan to bring it up again. At some point, you have to realize you can’t make someone else’s financial decisions for them, as much as you love and want to help them. You have to let go. What else can you do?

Weekend Plans

My college roommate is visiting for the weekend. Tonight we’re vegging out, watching television (i.e., The Office) and eating monkey bread. Tomorrow I’m taking a half day, and we’re headed downtown to see the musical Wicked. Have you seen it? I’m very excited. We’re also hitting up a delicious Italian restaurant ahead of time.

Saturday is apartment-hunting day: we’re touring three places, which I have no idea if we’ll really go with. Mostly likely, Friend is staying in her hometown, where she was just offered a job. I think it’ll be fun, though. We’re also going to visit a super-cool thrift store.

Total expected costs:

Wicked ticket: $48. Dinner: appx. $15. Various shopping/etc.: $50.

Let’s see how closely I stick to this.

waste not, want not: cooking by numbers

(This is weekly post #2 in the Frugal Foodie Thursday series.)

Personally, I think there’s a lot of satisfaction in using things up. When I squeeze the last drop of shampoo out or force one more bit of toothpaste from the tube, I take joy in knowing I used it to its fullest; it wasn’t wasted. I’m like this with a lot of things (brown lunch bags included) but with nothing more so than food.

A few weeks ago, my parents were out of town. They’d left food in the refrigerator and pantry (there’s always food in the refrigerator and pantry), so I figured with a little planning, I’d have enough to get me through the week. The first thing I did was clean out the fridge. I took everything out, figured out what was expired and tossed it (I hate throwing away food. If I could figure out a way to control the over-purchasing habits of certain unnamed members of the household, I would. The biggest problem we seem to have is our not knowing what we have. I’ll organize, but it never lasts).

Then I started deciding what I could make/eat. Right away, I made myself a shmorgasboard of cottage cheese, cheddar cheese and crackers, and iced juice. I had fruit for my lunches and recently expired milk I’d boil into pudding. Once things were neatly organized, using food up was easy. If/when I get my own kitchen, I would love to be OCD about using up what I buy; I’d love to stockpile main ingredients and be uber-organized about knowing what other things to get weekly. I’d love to know how to really stretch the food I buy, rather than wasting it.

Just last week, I came across a cool site that makes pantry/refrigerator-raiding easy: Cooking by Numbers. The way it basically works is you check off the items you have to work with, and it provides all the recipes that correspond. It will give recipes that ONLY use your ingredients, if at all possible, and it will provide recipes where you’d just need to pick up one or two things. Sounds like a dream come true to me!

Open letter to my best friend’s son

Happy first birthday, buddy! I heard all about your party last week, and it sounded like so much fun. Your mom and dad definitely love you a lot.

I guess you probably know they love you, because they hug you and feed you and make you feel safe. They take such good care of you, and I know they prayed for you for a long time before you were born. I was praying for you, too. Did you know that the first time I met you, you hadn’t been born yet. We went to a baseball game, and I got to feel you kick; I’ve always felt like we were friends since then. Last time I visited, we went for a long walk in the woods. Well, your mom and I walked; you rode on her back. We played with Maddie and sat outside in the sun and went to the mall. I took your picture when I came and I have it up in my office at work now. My boss said you were the cutest little guy he’s seen.

I’m sad I live too far away to visit you more often, but I look at your pictures all the time online and I hear about you every week. I’ve been watching you grow up this past year, from when you were a tiny baby coming home from the hospital to when you were sitting in a high-chair mimicking your parents’ noises to when you were standing up on your own and looking like a little man. I’ve been hearing about all the cute things you do, like making funny noises and repeating things Mommy says and shoving birthday cake on your face. You get more adorable every day, and now you’re crawling, sometimes walking, saying words, and sleeping through the night.

You’re a special little guy. I’m so glad God brought you to your parents and that He’s got your whole life planned out (and my life planned out, come to think of it). You don’t know this yet, but God made the whole world—the pretty fall leaves outside, the tall trees, lakes, animals, amazing babies like you. There are all sorts of great stories you’re going to learn about him: how He sent a flood and spared Noah, how He used a little boy to bring down the giant Goliath, how he made a great nation of Abraham, who didn’t think he’d ever have kids. I get excited just thinking about all the things God will teach you, and I’m happy I know your mom, who’ll tell me all about your latest updates. Your mom is the best friend I’ve ever had, and she’s so kind to let me in on your life.

Lots of love.

Quality

(or, Why I’ll Pay $80 for a Pair of Boots)

My brother had this friend in college, B.

B was gorgeous, always perfectly dressed, with brand-name clothes and designer everything. She was the kind of person who turned heads and held attention. She told my brother something one time, and he told me. She said, I only buy things I love.

While she (or her money source) could probably afford to buy many more things to love than I can, I have to say I agree, in theory at least. The difference between her philosophy and a clearance-only, bargain-basement, Goodwill-fanatic’s is this: one sees shopping as investing, and one sees it as spending.

Another bonus: when you invest in a brand-name item and keep it in good condition, you can resell it on eBay or some other online site. Can’t say that for Wal-mart or other discount stores.

Off the top of my head, here are 7 quality items I purchased more than a year ago and still use faithfully:

1) Knee-length black skirt, $40. Gap. Summer 2001.

2) Limited black dress, $60. Summer 2001.

3) Leather Coach purse, $160 (gift). Received August 2003.

4) Coach wristlet, $50 (also gift). Received August 2003.

5) Ann Taylor cashmere sweater, $80. September 2004.

6) Limited dress pants—3 pairs, $40-60/each. Fall 2004.

7) Khaki trench coat, $75. Gap. Spring 2005.

Interestingly, the unaccounted for time period—Fall 2001 through Summer 2002—was when I went through my “Goodwill phase.” I can’t remember anything that lasted from that period.