Security Deposit Bounced - IRX on Bank Statement

My last apartment sent my security deposit to my permanent mailing address... in NJ. So it took a few months for me to get that check. I cashed it a few weeks ago, but apparently it was too old, and it bounced. I saw "IRX" on my bank statement for $585 and didn't know what that meant, but thanks to Google I figured it out.

So now, on top of voting against Prop 8 and for Obama, tomorrow I have to figure out how to get my security deposit. It will be a busy day.

Speaking of apartments and housing, my current living arrangement is great. Moving here was the best decision I've made in a long, long time. I'm saving so, so much money. Instead of living in my last apartment, which would have cost me $1200 a month this year (!!!) + cable and internet, I'm paying just $612.50 a month + about $50 - $60 for bills. So $700 compared to $1300 a month. Sure, I have less space, but I don't really need that much space. And living with roommates is pretty fun, as long as the roommates are fun and laid back.

Stocks are slowly going up. I'm worried for Obama. That's all for today.

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Moving on Down, and Saving My Pennies

My rent has gone from $1050 a month to about $650 a month. This move, which is saving me a good $400+ a month, is probably the best decision I've made in my life. Even though my gas $ will be going up, I still think I'm going to end up saving at least $300 a month, and that doesn't even include the additional $250 that I would have had to pay if I stayed at my apartment and accepted the ridiculous rent increase.

It's kind of weird making these smart financial decisions now. I always relied on my dad to make those in the past. I didn't go totally overboard on my living situation previously, but given how much I was making, I definitely should have gotten roommates. Now, I'm making enough to live alone, barely, but I've realized that just because you make enough money to spend it, doesn't mean you actually should.

Instead, I'm going to really focus on saving money now. I'm pretty sure I want to go back to grad school at some point, prob for a degree in Human Computer Interaction (Berkeley has an awesome program) and I'm starting to take programming classes at the local community college (which happens to be a few minute walk from my new apartment) to make sure that's the right path for me - but I'm pretty sure it is. I need to learn the programming side and the research side, and then I'm ready to become a key player in web 3.0...

In the meantime, I'm dealing with some other things. Speaking of my father and his wisdom, it won't be around for much longer. He was recently diagnosed with advanced stage prostate cancer. I knew he probably had cancer, but wasn't really prepared to hear this. Basically that means he has a few years to live, at best. Well, what this means, besides all the emotional havoc it's having on me and my family, is that all that money I'm saving on not renting the more expensive place might be spent on plane tickets. It costs about $400 to fly across the country these days. Ugh.

And it really is going to be time for me to step in and help my parents with sorting out finances for the future. My mom is such a duntz when it comes to that sort of stuff - I get my bad spending habits from her. My dad's mostly a saver, and I'd like to be more like him. It makes me nervous to think that I'm going to have to take over for him, at some point.

Meanwhile, just the thought of losing him is really hard to deal with. We're not really that close, and for most of my life I hated the guy, but he's done a lot for me and my family outside of the mental and physical abuse, including working hard for most of his life and making sure we had enough money to live very comfortably. It's tough to know that he's worked so hard for most of his years - he just retired like a year or two ago - even though he is only in his late 50s - and now he's looking at the end. He won't get to enjoy retirement or that huge 401k he's accumulated. Or he likely won't... besides facing the fact that the cancer treatment will stop working in 1-10 years, he also is dealing with so many other medical issues. He can't even enjoy his last few years on this earth, because all he does is sleep all day. I can't tell how much is because he's weak and how much is just depression. Regardless, it makes me sad to think of the life he's led, working so hard, married to a woman he doesn't love, saving up for retirement... and then, he gets to retirement, and he's sick, and he's dying...

It makes you think twice about the value of saving so much for so long. Not that I won't be putting money away for retirement or focusing on getting and staying healthy so I can live to enjoy it, but... some people don't make it that far. And our entire society is set up to work and work and save and save... but then what? What if that's all you get?

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Live Within Your Means

While being interviewed for a television news feature about frugal living and saving money, I realized that despite being fully aware of ways to save, I'm just not doing enough when it comes to saving money. With gas prices rising, and my rent being what it was, I was breaking even at best most months, or covering the prior month's expenditures with my next month's savings.

While that's better than going into debt, it won't get me the things I want to save for - getting my teeth fixed ($10k), laser hair removal ($6k?), a condo/house (an $80k downpayment?), and grad school ($120k?). That's a lot of money I have to save above and beyond the basic emergency fund and other living costs.

As many of you know, my rent was skyrocking up to $1300 this year and while I could pay that with my current income, it would basically cost me my savings plan.

So I left my apartment, without knowing where my next home would be. This month I'm staying with a friend for a measly $350, as she's being so kind to let me crash in her spare bedroom. That's helping me make up a little of what I spent on my vacation in Israel... I spent way too much there, figuring I could make it up when I returned and found a cheaper place to rent. That, indeed, is what I'm going to do.

I found a place that I like, and it has a lot of the features I was looking for. And my rent is going from $1050 to about $670 per month, after utilities (except internet/cable). I'll be splitting the internet & cable bill 3 ways, so instead of it costing me $100 per month, it will be just $30. Total savings, based on last years rent, is about $350 per month, or $3750 per year. Based on the rent I was supposed to pay this year, I'm saving $600 per month, or $7200 per year.

While that's not the $80k I need for the downpayment on a house, or even the $10k to get my teeth fixed, it's a lot better than wasting that money on rent.

My new room is small. I'll be sharing a bathroom. I'll be paying a bit more in gas to actually get places since it's close to a freeway but not that close to work. Biking to work is no longer an option. But the place, for the price, is rather nice. It has a washer and dryer in unit, plus a dishwasher, and a nice community pool. The complex is a mix of owners and renters, so the property is well maintained. The owners of the specific condo that I'm renting are supposedly nice (I haven't met them yet) and haven't even raised the rent in a while - much better than the money-hungry apartment management company that took over my last complex and those $250 a year rent increases!

So... while my savings has depleted itself a bit during the last few months, I'm confident I can make back most of that money within 12 months. Or at least I hope I can. And then the real saving will begin.

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An Update on the Little Big Move

I'm moving out of my apartment. This weekend. I'm kind of unhappy about it. But deep down, and not-so deep down, I know it's for the best. Spending about $1300 a month on rent, even with utilities included, even with a job that pays me enough where it's possible, makes no sense at all.

What I need to do is save up for a house. Saving up for a house in this area requires a lot of sacrifice. It might even be logistically impossible. But I want to try.

Next month I'm cutting my "room" costs by staying with a friend. It's just a temporary thing en route to my new, yet-to-be-determined place. I offered to pay her rent, but the most she'll accept is $350. She prob should take more, but I said I'd buy her lots of meals so hopefully at some point I won't feel like I'm jipping her. Add to that about $200 in storage fees, and my monthly rent, at least for July, has been cut in half.

The big question is - how much will I spend on my next real place. There are so many options and - as I'm a bit picky when it comes to (everything) where I live, I find that most of the places I like are going to be pricey. Maybe not the full $1300 my current studio would cost me to stay in, but not far from it.

I've seen a few places so far. The only one I liked at all was a small garage-turned-studio in the back of someone's house, but it was missing one very important thing - a closet. I've got too many clothes to live sans closet. Oh, and it didn't have a stove either. Just a hot plate. But it's not like I really cook all that often (though I plan to) so I guess I could deal without the stove.

Other than one place I tried to check out yesterday (the guy stood me up, hmmph), I've put off looking at places until after I get settled into my friend's house. I'm looking prob for an Aug 1 move-in now, so most of the places haven't been posted yet.

I really wish I had enough money for a down payment right now. There are so many houses on the market around here, it's ridiculous. I went down one street today and within a single block, three houses were for sale. It's nuts!

But instead I'm going to waste more money on rent for the indeterminate future. It's not the end of the world. I just feel like now I should be living in some shit hole and spending very little in order to save my pennies. And by shit-hole I mean "nice shit-hole in the good part of town." Heck, the place I lived in for my first few months here was only $580 a month, utilities included. Of course, I had 3 roommates - 4 if you count the roommates' boyfriend that lived there practically, and for a while there the gal who was supposed to be providing me with "utilities included" wifi decided she didn't want to deal with getting it fixed (uh, and I needed it for my job). But that place was in a really nice area. So these things are possible to find. Maybe not at $580 in the renter's market right now, but maybe something around $800...

I saw one 2br/2ba that was right around the corner from my worth that was going for $850, utilities included. Pretty good deal. The apartment complex had a pool too. But it was kind of run down. And the smell was getting to me.

See, I'm picky.

I can move further south and get something nicer for the same price. If I get a place near the train that'd be ideal. I don't know if I'd sell my car (what would it be worth now that I've banged it up so much driving into inanimate objects?) but I think I'd still save money not paying for gas. It's at $4.70 a gallon around here. Not driving sounds like a really good plan if I want to save any money at all.

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Moving: The Latest On My Decision

I've decided to move.*

(*"decided" in the dictionary of me = decided for today. That could change tomorrow.)

I don't want to live in a super-cheap living space, per say, but there are a lot of big-ticket items I want to buy within the next few years (including cosmetic teeth work and a condo), and spending $1300 a month just means that my dream purchases will not be possible.

I looked at a place for about $960 that I like, but it's a bit out of the way and I feel like if I'm going to move, I might as well try to get something even cheaper than that. I'm not sure how cheap I can go... The $960 place at least has its own bathroom (just a shower, no bath), and anything less than that will undoubtedly be a shared bathroom situation.

There are plenty of random roomshares on Craigslist for about $500-$700, and some of them even include utilities, but the majority of them do not have kitchen "privileges." I don't really understand how using a kitchen can be a privilege, it's not like you're at college with a cafeteria to eat at. Not that I use my kitchen all that much other than to microwave something, but I still think I ought to get a place with a kitchen.

It's looking like I'll just move out at the end of June and look for a place in July. If I do manage to find a place for "cheap" I'm going to really be careful not to overspend throughout the year and instead to really focus on saving. That way I can save up to get my teeth fixed, maybe get some laser hair removal for my face, and finally one day buy a condo.

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Is Moving Worth It?

As many of you know, my rent has gone up $400 in the past two years. That, alone, should be enough to get me out of this $1300 a month studio apartment.

But looking at the apartment rental listings on Craigslist, there really isn't much for anything less. And at least this is utilities included for $1300 a month.

Going from $1050 a month to $1300 a month is definitely going to mess up my budget. I finally was making enough to do some serious saving (so that one day I could buy a house, god forbid) and this price increase basically makes that impossible - unless I manage to get a job that pays even better than my current job, which is probably possible, but I love my current job, and it pays pretty well, and I'm so happy working for this company, and I don't want my rent price to control my career.

It's possible I can find a place cheaper. There are studios occasionally on the market for anywhere from $900 to $1200 in the area. By area I mean anywhere from South San Francisco to Sunnyvale. The "SF Peninsula." Silicon Valley. Where the majority of people who live here are engineers making bank, and the rest of us are, well, half-wishing we were engineers.

Getting a roommate seems like the only logical thing to do right now. I don't do well with roommates. Living alone has taken my depression and thrown it out the window. For the most part.

Lucky for me, my friend volunteered her second bedroom as a place for me to live in July. That's very nice of her. I'll pay her rent, of course, and I'll save some money because I won't be paying $1050 or $1300 - what I would be paying if I stay in my current place. I can't stay there forever, but a month will probably be ok. She has a big dog and I don't get along that well with most dogs. But maybe I'll make friends with the dog in July.

So if I decide to move out, I'll pack up most of my stuff before I leave for my trip, and then put all my furniture into storage when I get back at the end of June. In July I'd do my apartment shopping and, fingers crossed, I'd find something decent that's a good amount less than $1300 a month so the entire moving situation was worth it.

Given, I'm somewhat picky about my living space. I like light in my apartment. I work from home most of the time, so I need a place where I can be comfortable working. A place that isn't too small. I get really claustrophobic in teeny tiny studios. My current studio is nice and large. It would be nice to have a balcony or patio. It would be nice to have a second room to make my office, so I could deduct that portion of the rent on my taxes. I'd probably turn the bedroom of a 1br into an office and keep the living room set up as a "studio." I hope the IRS wouldn't mind that I store my clothes in my office closet.

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First Generation with Fiscal Suckage?

Frugal Zeigeist has a great post today about whether we're the "first generation to be worse off than our parents." She writes:

...I'd say that I'm way behind because of the way the work world has changed. My dad worked for a single employer in Canada and a single employer in the US; although he went through reorganizations, I don't think he ever worried about layoffs or downsizing the way I do. He also has traditional pensions both from his years of work in Canada and from working in the US. Between that and Social Security, my parents have never had to touch their retirement savings. -- Frugal Zeitgeist

At my age (24), my parents were living in New York City, renting an apartment. In a couple of years their apartment would go 'co-op,' and they'd buy and sell their place within a few years for enough profit to put a down payment on the house in New Jersey where I grew up.

My mom was a fashion designer, working for fairly low wages, and my father was... well, I think he was a grad student when he was 24. He was going to grad school for physics but dropped out and ended up working as an actuary (pension planner). He stayed with the same company UNTIL HE RETIRED. He obviously had a good pension plan in place as well. My mom... she stopped working as a fashion designer 10 years into her career to have children (waves).

I'm not sure where they were financially at 24. Were they struggling? Possibly. I assume that if my father had started his job as an actuary, his entry-level salary was probably pretty high. And back then it wasn't so painfully expensive to live in a city like New York. Then they got lucky with buying their condo and selling it, and the rest is history.

Looking at where I'm at now, I don't see myself buying a condo anytime soon. It's not that it would be entirely impossible to make enough money to buy a small studio apartment, but I'd have to live extremely frugally and, even more so, I'd have to be sure I want to stay in this area for the foreseeable future. And I'm just not ready to make that kind of commitment.

Then again, the housing market seems to be pretty attractive right now. I don't know a lot about it other than the fact that lots of people are losing their houses because they can't afford their mortgages. That's sad for them, but good for potential buyers.

I don't want to just sit back and watch another housing boom happen without having the opportunity to partake. Still, I don't think I'm ready to buy a condo.

So, instead, I spend $12,600 a year on rent. Ouch.

My 25-year-old boyfriend... he lives at home and works part time. I don't think he's ready to make that commitment either. :X

I wonder how much monthly payment on a studio condo would be. Would that help me be as successful as my parents were at my age?

In any case, Frugal makes this important point:

They key point that this thought exercise brought out for me is this: The rules of the game have changed big-time. In the modern economy, the cards are stacked in such a way that if I'm ever going to be better off than my parents, I can't rely on employers or government to lend a helping hand as a reward for loyalty or years of service. It's definitely possible to end up being better off than my parents ever were, but I have to make it happen on my own. -- Frugal Zeitgeist

Personally I think the opportunity to switch employers and make oneself more of a commodity is to the advantage of the employee. It might hurt when it comes to long-term savings, but salaries (and benefits) are higher if the employee has well-sought skills.

Here's to hoping that my skills will develop into ones that people want to pay me for!


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Why Living Alone is Worth Half My Paycheck: Part Two

Over lunch today, I plan to drive to my apartment complex’s office and fill out a form to renew my lease for another year. I’m hesitant to do this, as I know I could be saving upwards of $300 a month if I were to live in a smaller “cozy” studio or perhaps even $500 a month if I could put up with a roommate situation. I might put off signing the lease until tomorrow, but tomorrow is the day my lease officially expires – and, as far as I know, I have until June 8 to agree to sign a new lease under the new terms.

Those terms include a rent-raise of $145 per month. My rent, for my studio, was $905 per month, utilities included (sans cable TV, internet and phone.) Now the price is being bumped up to $1050.

Realistically, I could find another studio for $850 somewhere else on the Peninsula, saving me $200 per month, or $2400 per year. But avoiding having to deal with moving again seems to be worth at least $2400. Besides, I’m still hopeful that at some point in the next year I’ll either get a raise or find a job that pays a little bit more. Most likely it will be the later, since I’m pretty sure my company is going to go under sometime fairly soon.

My rent costs have varied drastically ever since moving into an apartment in college. In Chicago, I shared a 2 bedroom with two other people. I opted for the large, door less living room and used a curtain for privacy. At the time, my parents were paying my rent (thanks mom and dad) but because I was so stingy I’d rather spend less on rent than have a place of my own and spend more. When I moved out to Burlingame, CA, I didn’t have a job – so I knew I needed to find an extremely cheap place. I ended up moving into one small room in a 4br apartment (in a nice location) for $480 a month. It was a pretty good deal, considering rents in the area. But my roommates and I didn’t get along. I was (and am) messy and they were party animals. It was a six month lease under someone else’s name. She also paid for all the utilities and charged the boarders rent. What missed me off most was the month she decided not to pay for the wireless internet (although it was supposedly included in my rent and I needed it for my freelance work and my internship). After the six months, I moved out. I was supposed to move in with one of the girls I had been living with and her friend. We found a 3br in Belmont, CA, that I think was going to be about $500 each per month. We paid our deposit of $500 each. Then, a week later, they all backed out on me. I lost $500. I was not a happy camper. At that point I figured it was worth my sanity to move into a pricey studio.

I’m not sure it’s worth it to pay $1050 a month for a studio when after taxes I take in about $2100 a month. It is, however, worth it to live alone.

I like being around people. Sometimes. But when I come home I just want to kick off my shoes, rip off my clothes, and be naked for the rest of the evening. Seriously. I need that kind of freedom. While I make my own amount of noise (the most noise I make is when I’m singing), I can’t stand other people making noise. And while I’m a bit of a slob, I cannot put up with other people’s mess. I like having ownership of my space. It’s not just about being able to go into a tiny room, close a door and shut myself off from the world. Maybe it would be better if I had a room with my own bathroom. But I like the idea of a studio. I’m even more comfortable in a studio compared to a 1br. My studio is very spacious.



What I like about my apartment:

- the high ceilings and openness
- my neighborhood, even though I don’t take advantage of it.
- Location – I’m really smack dab in the middle of anywhere I’d want to be by about a 40 minutes drive either way. I’m a six minute drive from work.
- a nice pool in my apartment complex… that I used maybe twice last year. I’m
- the utilities are included, so I don’t have to worry about forgetting to pay my monthly bills
- the dressing room hallway/closet. Lets me keep my mess contained if visitors come over.
- The size – there’s room in my place for a futon and a full size bed.
- Privacy. No one knows my name. I come home, I disappear into my apartment. I like being anonymous sometimes. I mean, I’d like to get to know my neighbors, but I also like it that no one there knows who I am
- Onsite maintenance workers that are fairly responsive. No annoying landlord to deal with.
- Carport parking (no worries about finding a spot in the middle of the night)
- Decent street parking availability for guests
- Light-hued carpeting and off-white walls make apartment look even more spacious

What I don’t like about my apartment

- The cost
- That it’s a studio, so if I have a friend stay over there is absolutely no privacy
- It’s not rent controlled. I worry how much the rent will go up next year.
- The building is old. Weird things happen. The paint on my wall seems to have melted off in stripes due to the suns rays coming in through the blinds
- Most of the people who live in the complex are older families. It would be kind of nice to know a few people my age in the gigantic complex, in case I were to have an emergency.
- I’m not close to any “downtown” area. I’m a few blocks from a large shopping mall, but that’s really dangerous when it comes to my spending habits, so I avoid going there as much as possible.
- there’s no outdoor trails to rollerblade on locally, I’d have to drive to a trail to rollerblade, and I’m too lazy to do it.

But, I’ve come to conclusion that I have to live alone. At least until I’m living with someone I’m dating or married to. I think I could deal with that. I might even like it. But I just hate living with strangers. Or even friends. Well, mostly I hate living with strangers. I’ve had the worst experiences in roommate situations. And many of them were my fault. I just can’t deal with sharing my space. Sometimes the awkward situations were not my fault. In college, the second year I lived in my 3br apartment a crazy girl moved in. She was extremely overweight and had a lot of mental issues. I could put up with her, but her boyfriend just drove me crazy. He has some sort of social disorder, which is fine and all, but I felt threatened by him on occasion. Once I was watching TV in the common area and this girl got a phone call so he walked over and turned off the TV without asking me, even though it was obvious I was watching it. So I said “excuse me, I was watching that” and he says (in a very creepy, evil way) “fuck you.” I was so pissed off I walked up to him and said “excuse me, you do not talk to me that way. Do you live here?” I was very proud of myself for my defense, but ultimately the whole occurrence sent me into depression for a few weeks.

It’s just I have such anxiety when it comes to dealing with other people. I honestly feel like there has been this huge weight lifted off my chest ever since moving into my own place and getting my car for transportation freedom. All of that costs a fortune, but I think it’s worth my sanity.

Besides, I save money on not needing therapy.

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RENT $ HISTORY

$450 (utilities not included): Chicago (Lincoln Park) “living room” in 2br apartment.
$800 (all utilities included): Washington, D.C. (SW) room sublet in a house.
$? (internship paid for housing): Berkeley, CA (room in 3br apartment)
$480 (all utilities included): Burlingame, CA (room in 4br apartment)
$905 (most utilities included): San Mateo, CA (studio)
$1050 (most utilities included): San Mateo, CA (same studio after rent increase)

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