"Renting is just throwing your money away!"

Sigh...I can't tell you how many times I have heard that since the spring of this year. With DH's new job and rising gas costs, we decided to try and move closer to the church to save on fuel costs.

I got to work. I constantly checked the classifieds of our local paper, craigslist, and asked friends to keep an eye out. We were advised to look into buying since the market was definitely a buyer's market. We did try, but were unable to do so.

You see, DH and I were not taught how to be wise with money while growing up. We made lots of mistakes that cost us. We learned our lesson thank goodness. We learned it the hard way, but we are wiser nevertheless. Isn't it funny how it takes much longer to correct the mess than to make it?

Our choices were simple: 1.) buy a house or 2.) rent a house.

As I said before, buying was out. DH's credit was around 12 points below the approval score. So that left us with renting. I was very disappointed. I really got my hopes up that we would be able to buy, but if you can't do it, you just can't do it.

During this time when I would be talking to someone, they would say "Oh renting is just throwing your money away." I beg to differ.

First, I don't think paying for a place to live can be catergorized as throwing money down the drain. We're talking about providing a roof over your children's heads here people. LOL I know when you own a house, the value will increase (in most cases) over time. But if you think about it, there are many things we purchase/pay for in our lives that don't accrue value. For example, your vehicle. It loses value as soon as you drive it off the lot. However, we don't say financing a vehicle is throwing your money away do we? Of course not. Transportation is a necessity especially in towns that don't provide public transportation services.

Second, you have to remember that more goes into buying a house than just a monthly payment. If you don't have a certain percentange down payment, they add mortgage insurance to that monthly total and usually add in the property tax as well. Next, you have to think about homeowner's insurance. Another addition to your monthly mortgage payment. Last, if something breaks, it is your sole financial responsibility to fix it. If you're struggling to make ends meet or trying to get out of debt, renting may be the wiser choice.

Third and lastly, it just plain sucks to hear something like that. I know those who said it to me were not intending any ill will. But it sort of brings up feelings of guilt and shame. You feel guilty because you got yourself in the present situation and although you are doing your best to rectify those mistakes, it is still your fault. Shame comes into play because you feel sort of embarrassed that you can't get a loan for a basic, low cost home. The house were looking at was priced at $149,000 and had been on the market for almost a year. We were hoping to be able to purchase it for $140,000 at the most. And we couldn't do it...at that time anyway.

Things do work out though. We are back in the subdivision we used to live in that is right next to the church. And what is even cooler is that the house we are renting is has always been our favorite house in the neighborhood. Our landlords are very nice and have offered to sell it to us after a year. As my friend Beth says, there is season for everything.

Basically, I have said all that to say this...please don't tell someone that they are throwing their money away because they are renting instead of buying. If it is said to a person in my situation, it sort of hurts. There are also people who prefer to rent instead of own and that is their perogative. Paying for a place to live is not wasting money as long as you are being wise about what you are renting. After all, a person living alone really doesn't need a 3 bedroom house. But I shall digress...

Garage Sale Pricing

I usually go garage sale-ing every weekend and it never fails to attend at least one that is overpriced. You can tell these folks aren't very familiar with yard sales. And that's ok by the way, I'm just sayin'!

Therefore, that brings me to my post today. I thought I would offer a general guideline for pricing your garage sale items. Try to price them 75-90% off the original price paid. Where you want to fall on that range depends how desperate you are to get rid of your stuff.

So, let's say I have a bangin' picture frame I paid $5.00 for. As years have past, it doesn't bang for me like it used to and I'm ready to get rid of it. 75% of 5 bucks is $1.25. Take the quarter off and price it for $1. If you're really desperate to get rid of it, price it for $.50 which is 90% of $5. I'm not going any further. You get the picture (no pun intended) and that's the extent of my math skills.

Another thing you must note is CUSTOMERS DO NOT CARE WHAT YOU ORIGINALLY PAID FOR THAT ITEM. They only care about what they have to pay for it. People don't shop at garage sales so they can brag to their friends about purchasing something 25% off it's original price. Hell, they wouldn't even brag at 50%! If they want those kinds of deals, they'll go to Walmart, Target, etc. and BUY IT NEW. I promise I'm not being snarky when I say that. I'm just being honest.

Some common things I see overpriced are books, vhs tapes, and childrens clothes to name a few. I hope this helps you in pricing your items at your next garage sale.

The Complete Tightwad Gazette

If you are trying to live the frugal life and do not already have this book, please go get it. I'm not even a quarter of the way through yet and I have learned so much already. Yes, I'm a slow reader!

The author, Amy Dacyczyn, is my hero. She is the frugal queen of all queens if you ask me. The Complete Tightwad Gazette is filled with her best tips and ideas, along with submitted reader tips from her newsletter which was published from 1990 to 1996. If frugal living had it's own bible, I would daresay this book would be it.

Try checking it out at your local library if it's available. If not, you can purchase a used copy at half.com. If you decide to do this, please go through my referral link by clicking on the picture below. It would be very much appreciated!

Halloween Costumes: A different idea

As Halloween approaches, you see the typical save money ideas for costumes and such. I wanted to throw one more suggestion in the pot.

How about wearing the same costume from the previous year? We'll actually be doing just that for this Halloween. Luckily, the kids are still able to fit into their costumes from last year which was Peter Pan and Tinkerbell. (We vacationed in Neverland just so the kids wouldn't grow much and we could save money by not having to buy costumes this year *hehe)

Now, I know this is not always an option that will work. Kids do grow and so do their mouths in which they will argue that they are no longer into the Power Ranger thing and Transformers is the happening costume this year. Then I say is the time to get crafty and peruse the spare materials you have lying around and see what cool costume you can come up with. Until then, just let them wear the same costume from the year before if they can. Look at it as a 2-for-1 deal.

Heads Up: Scheduling Your Garage Sale

Just a little tidbit I thought I would put out there if anyone is planning to have a yard sale this time of year (Fall/Winter). Schedule your time to start no earlier than 8 a.m. The mornings are getting longer so it's still dark at 7. Right now, you could get away with 7:30 but as we get more into the winter months, 8 a.m. will be your best option.

I remember going to one last year when it was still dark and the lady had her car running with the headlights shining on the merchandise. LOL

Just Do It!

(Originally posted on my old blog "Work Around Your Wallet on 3/27/07)


No, this isn't an ad for Nike. I'm talking about mail-in rebates.

Near the end of January, I had to purchase a new cell phone. I just fell in love with the Pink Motorola Razr plus I could get a $50 rebate. Could is the operative word here. I looked this morning on my slip to check the deadline date and it was today! ARGH! Granted, I didn't purposefully keep putting it off but that's fifty bucks I could have had and most definitely used.

Oh well, lessons must be learned right? So please learn from my mistake and get on it dogonit.

Do the Dishes!

(Originally posted on my old blog "Work Around Your Wallet" on 2/28/07)

Believe it or not, keeping the dishes washed can save you money. It could have saved me $18 tonight.

For whatever reason, the dishes don't get done and instead of washing the ones you need, you eat out. I think we all do this at one time or another. I know I do! With two small children and other obligations, it becomes harder and harder to get things done. My bad habit is not thinking about dishes until I need one. Then I think: "Oh yeah, I need to load the dishwasher."

That happened tonight and instead of doing it, I ordered pizza. I used the last of my money for the week, but it was worth it because I was tired. I went to Papa Juan's online and used a coupon for a large one-topping with a free order of cheesesticks for $12.99. Of course with tax, delivery fee and tip, the total spent was 18 bucks. But I knew we would have enough pizza leftover for lunch tomorrow so I view it as paying $18 for two meals, possibly three.

It's ok to do this sometimes, but just make sure it doesn't become a steady habit because it's one that can cost you big. We allow eating out about once or twice a week in our budget, but it's these extra unplanned ones that can start adding up if it becomes a frequent thing. If you do find yourself in this situation of just not wanting to deal with cooking and cleaning, try to get the most for your money by using a coupon or take advantage of restaurant specials.