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You Need Life Insurance Yesterday

Perhaps it’s a bit obvious to bring this up during a pandemic, but it needs to be asked: do you have the right life insurance? Who needs life insurance? How much life insurance is enough? And where should you get it? Let’s tackle these questions today.

Who Needs Life Insurance?

The purpose of life insurance is simple: to relieve the financial burden of a death. This is especially important when it comes to providing for dependents.

The most basic life insurance covers the cost of end of life services. A simple cremation and funeral service costs several thousand, and a full burial and funeral service runs upwards of $10,000. If you’re young and single with no dependents, covering end of life expenses is all the insurance you probably need. These policies may be called “Final Expense” or “Burial and Funeral” insurance, and are inexpensive. A totally acceptable alternative to such a policy would be to have $10,000 in savings to cover these costs.

However, if you are married and/or have children, you need much more extensive life insurance. You need to not only be able to cover funeral expenses, but also to make up for lost income and/or services.

How much is enough?

A good rule of thumb is to purchase a policy for 10 times your income. So if you earn $50,000 you would want a $500,000 policy. This is paid out to the beneficiary over a set period of time, such as ten years. You can also take into consideration if your expenses are much more or less than your income.

What about stay at home parents? STAP absolutely need life insurance. Stay at home parents provide valuable services like childcare and housework. To replace replace these services would be quite expensive, easily $25 per hour or more. Consider how you’d cover the cost of childcare and household services like cooking, cleaning, and laundry. A common estimate is that it would take $25,000 – $40,000 per year to provide the services a stay at home parent provides.

What type of policy?

Equally important to the amount of insurance is the type of insurance policy. There are two main structures to life insurance policies: whole life or term. Whole life insurance covers you for life. So if you die at age 30 or age 90, you will receive the same benefits. Term life insurance covers your benefits for a certain period of time, often 15-20 years (though longer is available). While it’s tempting to get a policy that will cover you for a lifetime without the price going up, term insurance is the way to go in nearly every case. Here’s why:

Whole life insurance costs a lot more per month–often 10-12 times more. As you can imagine, insuring someone over half a century or more is going to be more expensive. So you’re really overpaying for something you aren’t likely to need for a long time. Additionally, most people don’t need life time coverage. You need coverage for as long as people will be dependent on you, and until you are self-insured (own adequate investments).

That’s why 15-20 years is a good term length. You pay less because you’re not very likely to actually need those benefits during that time period. Additionally, if you have young children, they’ll be grown and most likely independent in that time period. As your children become independent, your expenses should decrease quite a bit as well. However, if you have one or more children who may continue to need your support into adulthood, this is an even more compelling reason to have a strong life insurance policy in place.

Lastly, you can plan to become self-insured over that 15-20 term by investing in retirement accounts. If you’ve invested consistently and wisely over that time period, your accounts should be generating enough interest for a spouse or other dependent to life off of.

Whole life insurance is an investment product that salespeople will make sound very appealing, so it’s important to understand their pitfalls. Here are some drawbacks just in case whole life is still tempting you:

  1. The investment is not diversified like other investment vehicles. This means the entire investment is with a single company and you are completely trusting that company to perform well. You would never be advised to put all your retirement funds in one single company, so why would you want to do this with whole life insurance, which is sold as a retirement product as well?
  2. Whole life insurance returns are not guaranteed. Salespeople will show you optimistic projections of returns, but the guaranteed returns (if any) are actually very low. The returns on whole life policies assume a long period such as 40 years, and perform lower and are less liquid than other investment options. The fees and commissions are much higher than 401ks or IRAs and will further reduce your returns.
  3. Everything about the product is less transparent. From the fees, the sales commission, the so-called guaranteed returns, to many other misleading claims, the product is purposely not well-explained to the consumer. The confusing nature alone is enough to deter me from this financial product, especially when a better option is available. You should NEVER buy a whole life policy without first consulting a trusted fee-only financial advisor, preferably one whom is not pushing that particular policy. Commissions on these policies are 70-100% of the first year’s premium so agents are highly motivated to sell them.

Bottom line: choose term life insurance. Getting a term policy will require some paperwork and a physical. Your exact price will depend on your age and health, as well as how much coverage you are seeking and the length of your term. We use American General (but this is not an affiliate or sponsored post).

While this pandemic is truly sad and sometimes scary, it would be a silver lining if it motivated more of us to prepare for the unexpected. Sometimes it takes something big to get our attention, and now is the time to make sure our loved ones are provided for.

What motivated you to get life insurance? Any questions about the topic?

Hello from our New Home!

After 5 years of tossing around the idea of moving, we’ve finally made the move. At first, we weren’t sure what we wanted. More land? More community? Then I couldn’t fathom moving while I was pregnant or had a baby. Next, I had my moral and logistical hang-ups: why should we go back into debt and pack up allllll our stuff just to move 1.5 miles? Why did we want more space when many people live in closer quarters? I have a real aversion to excess, and moving felt excessive in every way. But I had a light bulb moment in February that it wasn’t wrong to want more space in a family-oriented neighborhood, and when I mentioned this to Neil, his excitement revealed just how much he had wanted this all along.

He was right. Two weeks after our moving day, we haven’t had a moment of regret. Both the house and the neighborhood are great. Having more space is a welcome change, especially right now when everyone is home all the time, and trying to work. It’s much easier to keep the toddler away from the home-schooling. And there are more areas to play, which gives everyone the sense of a change of scenery. Our new yard is also about 30% bigger, if equally muddy. But with a porch, sun room, deck, and patio we have plenty of outdoor options as well.

The neighborhood vibe is also just what we were looking for. It’s very friendly, and although it’s a hard time to build community, we have been able to visit with a few neighborhood friends outdoors. As a bonus, we have a beautiful sunset view. Although we moved just over a mile, it feels like we’re in a different town. Yet moving such a short distance means we can still see our old neighbors any time. The kids don’t even have to switch schools (if they ever go back).

What’s making the whole thing seem like an even better idea is that we close on the sale of our old house today. Buying a new house is exciting, but selling one feels more worthy of celebration. Our proceeds will shrink our new mortgage once we recast our loan. A recast is basically like restarting your mortgage. Because it’s our second mortgage with the same company, one perk they offer is a free recast. It re-starts the amortization schedule, meaning you start paying the initially high ratio of interest to principle, but since we’ll only be a month into the loan, it won’t matter. This will allow us the flexibility of a smaller mortgage compared with applying the proceeds to the initial loan, which would accelerate amortization, but not change our monthly payment.

We originally planned to move first and list later. I’m so glad we didn’t. Though it was stressful to get the house ready while homeschooling, the market in our area has slowed somewhat.

This move has showed me that there are things–even expensive things–that are well worth the money. Our proximity to friends, along with how smoothly both transactions went, certainly seems like God’s hand. We are grateful for the resources and flexibility that afforded us this choice. 

Have you ever made a purchase–big or small–that was unnecessary, but so worth it?

Saying Good-Bye to the Burbstead

As I write the last post from the burbstead, I find myself reminiscing. Insert the usual cliches–so many good memories, we brought our babies home here, and had some epic parties, too. (Those were the days!)

Pretend to Be Poor was born here as well. During our decade in this home we went from naturally frugal to more financially educated and strategic as we learned about the Financial Independence/Early Retirement movement. This house will always be tied up with our financial journey, in some ways I’m just beginning to understand.

But first, an update from the home-selling front. The day after our last post, we received another offer, which we accepted. Now we’re just praying that closing goes smoothly.

Homeschooling is going fine, by which I mean everyone is still alive.

The process of selling our home is making me realize just how financially conservative we were with our home purchase, and how much wiggle room that’s given us. There’s a reason mortgage means “death pledge,” but I think we’ve avoided feeling that way about our purchase. Keeping the mortgage reasonable is why we could buy first and sell later, which is making selling during a historic crisis less stressful than it could be. It also helped allow me to stay home with our kids, and to invest more, travel more, and give more. Not being house poor is a great way to “pretend to be poor.”

I hope to share more reflections and other details once our home sale is final. But now to say good-bye to the burbstead, which also reflects our evolving priorities.

We slowly transformed our .28 acre suburban plot into what we came to call the burbstead as we raised chickens, gardened, planted fruit trees, tapped our maple trees, kept bees, canning, and split firewood. While our new yard is a little bigger, we’re leaving behind our maple trees, fruit trees, wood-burning fireplace, fenced-in yard, and our desire to have our grass destroyed by chickens.

Tapping trees
Canning salsa

I’m sure Neil will still grow things; he can’t help himself. He kept pots of peppers and tomatoes on our first apartment’s balcony, and it’ll likely be back to a container garden this year since we’ll move so close to planting time.

Our burbstead hobbies slowly faded as we had more kids. While these hobbies are fun for kids, we had less and less bandwidth to keep up with them. Just as “pretending to be poor” has morphed from me making everything from yogurt to laundry detergent, to us purchasing a larger home, our hobbies and dreams are changing as well.

Homegrown Jonagolds

We’ll also miss the efficiency of our current home. Our first floor hosts our main living area and bedrooms and measures 880 square feet. While we’ve got just as much room in the lower level, it has until recently (can anyone say home office?) served mainly as storage and “extra” space that didn’t run up our utility expenses. I’m looking forward to more first floor space, but less to the utility bills. We’re also leaving behind a high efficiency furnace, a sun room that warms up quickly, and a heat exchanger on our fireplace.

DIY jobs will live on

One question nags: what does pretending to be poor look like as we move to a bigger house in a fancier neighborhood? First, our title has never been meant to be take too literally. It’s borrowed from a tongue-in-cheek ancient proverb which raises a still-valid question: Is it better to live on more than you make, and appear richer than you are? Or to live on less, and seem “poor”? Secondly, having a third kid has really tipped the balance on how much time and effort we’ve willing to expend to save money, something that I’ve chronicled here. And wanting more space is certainly related. Lastly, we’ve honed our vision for our growing family over time, and the new house and neighborhood fits perfectly with that. Fortunately, we won’t need a bigger house forever, and, as an appreciating asset if not an investment, we should one day recover some additional costs of upgrading.

We’ll truly be rocking the suburban life in our new home. But you’ll be sure to keep hearing from us about our DIY adventures and backyard shenanigans, as well as principles and tips for gaining financial flexibility.

How have your hobbies changed over time? What about your financial priorities?

How to Sell Your House While Home Schooling During a Pandemic

The same day we reported our decision to List It, the house we were looking for came on the market. We saw it the next morning and made an offer, which was accepted. At exactly the same time, the gravity of the coronavirus pandemic in the U.S. became evident.

But first, the house. It’s in our dream neighborhood, with just two houses between it and the home of some of our closest friends. There are also many, many other friends and the kids’ friends within walking distance. There’s a great bike & hike path in the neighborhood. The house also checks the boxes of a larger entryway and more storage space for pantry items. It even has a fireplace and a sun room, wish list wants we weren’t sure we’d find. It’s far from updated, but there’s nothing we can’t live with, and with Neil’s DIY skills we can change things affordably over time.

How does one sell during a pandemic? For one thing, we changed our time frame on listing. Rather than wait we decided to list ASAP. So for two frantic weeks, we packed, cleaned, painted, and Neil even installed a wall and a vinyl tile floor to finish the unfinished half of our basement. All while having everyone home all the time, with Neil working from home and me trying to “crisis school” my kids, and with social distancing, i.e. no help and no babysitting. Let’s just say this was not my favorite.

Probably the worst part was having to make major decisions, for which no one had the experience to offer guidance. Do we buy a house right now (this was before all contingencies were released)? Do we list sooner, in presumably worse/messier condition than if we’d moved first? Or do we wait it out, risking a possible housing market crash? Do we want strangers in our home during a pandemic? When the stay at home order was issued, we didn’t know right away if you could still sell your house (our realtor quickly informed us it was covered under essential business in our state). What price should we ask? We also had a carpet order that got cancelled, hence installing the vinyl tile. Turns out home office carpet is not essential.

We decided to move forward since we have no mortgage and can afford to keep both homes for quite some time if needed. We are using a bridge loan, a low fee, low interest loan based on your home’s equity, which is used to smooth the gap between buying one home and selling another. Once our current house sells, we’ll pay back the bridge loan from our proceeds. Then we’ll re-cast our current loan, applying almost all of our remaining equity. We have one year to repay the bridge loan.

During most of the first week our home was listed we stayed at a cabin in the woods to cut down on germs and clutter. It was a great place to social isolate and it was amazing to have a change of scenery, which we never would have had were it not related to essential business. We enjoyed hiking, a hot tub, cable TV, and home schooling via my new cell phone provider Mint Mobile‘s current offer of free data add-ons.

We’re back home and after just under a week on the market, we’ve had good showing activity according to our realtor. We got an offer today, and while it was a good offer on the surface, several details left us wondering if the buyers would be able to secure financing. Since it was an FHA loan there would have been a long wait on securing the loan, and a lot of hassle on our part. Our realtor did some digging and determined that since one of the buyers is unemployed during the stay at home order in our state, the loan would not go through.

I’m realizing we’re going to have to be way more patient than we’re feeling. We’re trying to sell during an unprecedented, uncertain time. I’d really hoped for a good offer during our stay in the woods, but mainly so I can be messy and not worry about germs. The latter is a valid concern, but the former is more about convenience than anything serious. We are limiting showing times and taking precautions such as cleaning before the kids go back inside. Since we move in 3 weeks, we don’t have too much more of this to put up with. At least that’s what I’m telling myself.

To top it off, I’m “crisis schooling.” The real crisis in this schooling scenario is my sanity. My kids are extreme know-it-alls (like me). As a former teacher, people seem to think I’m somehow more qualified to educate my own brood. Let me tell you, it is not the same thing. First, I used to get paid. Second, I taught high school. Third, I taught one subject. And lastly, I did not teach anyone related to me, whom I also have to tell to use a napkin, unload the dishwasher, brush their teeth, and any number of other seemingly obvious and routine statements that my kids react to as if I’d cast an Exruciatus curse on them.

Then there are the mood swings. My oldest stares into space until I tell him what to do next, and then cries half the time when I do tell him (he’s getting better, though). My middle one swings between wild enthusiasm and wild defiance. Our very first lesson consisted of me trying to convince her that rabbit is in fact two syllables, not one. She DID NOT believe me. I dropped it, concluding that my kids are just going to be one nine-weeks dumber than they’re supposed to be. There’s nothing for it.

And then, I have a toddler. Like all toddlers, she wants nothing more than to mash keys on a computer keyboard. Most of the kids’ work is done on the computer. So in addition to running between two kids in different rooms helping them sign into 20 freaking different apps a day, I have the babe screaming at the top of her lungs because she wants the computer. And if you’ve ever tried to listen to a video, or read or write or think with someone screaming next to you, you will understand why my kids are going to be one nine-weeks dumber than they’re supposed to be.

Let’s just say the kids are learning some interesting vocabulary words this quarter.

I can’t even imagine if I was working from home on top of all this. Seriously, I feel for those parents. I’m in the best of circumstances as a stay at home mom, and one who supposedly knows how to teach people things. I’m also so grateful that Neil’s job is secure, that we have health insurance, and that we’ve stayed healthy thus far. I’m grateful that we don’t have underlying health conditions. I’m grateful that we live in a state that took early action to fight the spread. And I’m grateful for the many chances we have to connect with people virtually. We’ll get through this, we’ll move to our new house, and who knows? Maybe some day we’ll even be able to visit our neighbors again.

How crazy is this social isolating / home schooling making you? What are you grateful for in the midst of it?

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Love It or List It Update

Last summer, we shared about wondering whether to Love It or List It. We also brainstormed ideas to make our home work better for us. We did a minor living room makeover–clearing out large furniture and getting new carpet. We expanded our storage area by making a “shed” under our deck. Lastly, we started using our 4th bedroom on the lower level to better make use of our space.

In addition to tweaking our use of space, I’ve tried to do what I can to build community in our neighborhood, and to schedule play dates with friends from school. But it’s just not the same as spontaneous backyard play.

Eight months later, we are strongly leaning toward listing it, but it has more to do with location than our home. That said, we have a much clearer sense of our wants and needs than we did 10 years and 3 kids ago.

By any standard, we have a nice house in a good neighborhood. But long story short, we’d like to live in a neighborhood with more young families. Our block once enjoyed close community with lots of little kids, but this has proved transient. We really miss that vibe, and I know we can regain it in nearby neighborhoods that are less transient and are home to countless young families, including many we already know.

Will people move away wherever we live? Absolutely. But these neighborhoods were designed with young families in mind, with larger homes, community playgrounds, and walking paths. Google Earth reveals playgrounds and trampolines in most yards. And we’ve been watching home sales in these neighborhoods for years, and there are a lot fewer sales in these areas compared with ours. So we may need to wait a bit to find what we want.

The recent comps in our neighborhood have been strong and therefore it seems like a good time to sell. We’ll pay more for our new home in a thriving market, but because of our equity we can get the kind of upgrade we’d like for a reasonable amount.

This decision has been very conflicting for me, and at times I still wonder if we’re out of our minds. Should we really go through the hassle and expense just to move 1-2 miles? Do we really need a bigger house in a different neighborhood? I’ve concluded that no, we don’t need these, but we would really like more space and more community. One mom from a target neighborhood recently told me her kindergartener goes on a daily walk around the block with her friends. That’s the kind of neighborhood we want to live in, and the type of childhood we want for our kids. I’ve finally seen that it is worth the (one-time) effort and the price to gain these during this season of our lives.

Another thing I’ve wrestled with A LOT is my aversion to excess. I don’t want a too-big house. I don’t want to pay for it, maintain it, or clean it. I love efficiency, and our current home is very efficient. The houses in our desired neighborhoods simply are larger. While I don’t want excess, I can see many uses for more space (and storage!) as our kids and their friends get older.

For a long time I felt like it was somehow morally wrong to say we want more when we already have so much, and others have so little. And greed and materialism are huge risks in our culture. At the same time, I’ve realized it’s not immoral to seek more community and more living space, which we’d love to use in serving that community. And while we won’t be buying another bi-level, there’s a pretty good chance we’ll purchase a house less updated than ours, in order to afford a home in our desired neighborhoods. So it’s not necessarily about getting a “better” house.

What is on my wist list for a different home? It’s pretty simple. Four bedrooms, a larger living or family room, and a pantry. A sun room and fireplace would be great, since those are favorite features of our current house. But I won’t hold my breath. Oh, and not a bi-level. That shouldn’t be too hard, right?

Financially, the biggest trade off would be waiting up to two more years till early retirement, an opportunity cost we’ve calculated, weighed, and found worth it. Also, a home purchase in these neighborhoods will almost certainly appreciate much better than our current place.

Logistically, our plan is to move first, then finish fixing up ours (lots of painting!) and get it on the market. I cannot imagine getting our house ready to sell and show with 3 kids still living here. We’d do it if we had to, but since homes are moving quickly and we can afford to, we won’t do that to ourselves.

Overall, I feel very grateful for our current home and the community we have enjoyed. Making this move from a place of contentment is important. I know a different house won’t ultimately make me happier or make life magically easier. Starting over with new neighbors will take time and effort, and sometimes won’t work out. And there is a chance we won’t find something that checks the boxes in our price range. I’ll be content either way.

Are we insane for wanting to move nearby for these reasons? Any tips on moving with kids?

5 Habits to Improve Your Financial Health

Well into February, perhaps your new year’s resolve is waning. I didn’t make any resolutions this year, but I did find myself wanting to eat healthy and declutter. Maybe I was just recovering from all the Christmas cookies and gifts.

Another popular New Year’s goal is improving one’s finances. Maybe you made a budget or pledged to reduce spending or increase savings. Maybe you vowed to cook at home or pay off debt. Whatever your goal, have you thought about what skills or habits will help you keep that resolution past the first few weeks of the year?

Most people don’t keep their resolutions because new year, new you is unrealistic. I didn’t wake up a different person on January 1, and neither did you. My will power doesn’t magically improve with the turn of the year. We really need to understand the habits and skills that make for success in an area, rather than hoping we’ll somehow have better motivation in 2020.

Let me illustrate. I’m a naturally quiet, even shy person. I’m much more comfortable around my small inner circle of friends. But I hated feeling overwhelmed and intimidated in new social situations. So I started observing what more outgoing people do in these settings, and imitating them. They approach people. They ask questions. They smile. They laugh. They tell stories. I started doing these same things, even though it felt unnatural. And soon enough, even if I still felt a bit awkward, I was able to overcome my shyness.

I bring this up because I believe people tend to have different financial personalities. Some love to spend, others love to save. I see it with my kids. One hoards his money and we have to practically force him to spend some of it. The other wants to spend her money as soon as she gets it, often on junk she will never touch again, and we have to try to talk her out of it or at least make her wait.

So what are the traits or habits of the naturally frugal? And how can anyone learn those skills, even if they aren’t second nature? Here are 5 tools to improve your financial health:

  1. Plan ahead. Whether it’s making a grocery list for the week, or investing for retirement, much of financial health has to do with looking to the future. And this comes easier to some of us than others. Think about your spending pitfalls and ways to plan ahead and avoid them. For example, make a menu and grocery list so you can avoid eating out too much. Make a budget for the year (or month) and determine how much you want to save. Then, set that money aside as soon as you get paid.
  2. Be patient. So much of building wealth has to do with being patient. You wait for investments to grow. You wait for hard work to pay off in a raise. You wait for a great deal on something you want to buy. Instant gratification is the enemy of financial health. When you find it hard to wait, try to remember the bigger picture of the goal you’re working toward. Some people like to create visual reminders to help them see progress while they’re waiting. Others like to find inexpensive ways to celebrate smaller steps along the way. Figure out what motivates you to wait.
  3. Seek alternatives. For any problem you encounter, there’s usually an obvious option to throw money at it. But before you order for next-day delivery, try to learn the Art of the Alternative. Can you fix it? Borrow it? Use something else? Buy secondhand? DIY? Get a second quote? Ask a friend for help? There’s usually more than one option, and a little brainstorming can turn up less expensive ways to resolve the issue. If you do need to go with the pricey option, at least you’ll know it’s the best choice.
  4. Prioritize. Money is always a “Would You Rather?” proposition. There’s saving, spending, giving, investing, debt payoff. There are wants and needs, both for the short and long term. Personal finance is often a matter of prioritizing, and there is usually not one right answer. Budgeting is a great way to decide your priorities and spend accordingly. If you’re not sure how to prioritize, check out Dave Ramsey’s Baby Steps, talk to a financially wise friend, or chat with a fee-only financial adviser.
  5. Automate. Take the will power out of the equation by creating auto-payments for as many goals as possible. Many apps allow you to allocate money for savings through ACH. Set up auto-deductions from your paycheck straight to retirement savings. Don’t wait to see what’s leftover. Pay yourself first (assuming you can pay your bills, too). Start small if you need to, and slowly increase.

What other habits or skills do you notice among those who are good with money? What habit do you most wish to gain?

Pretend to Be Poor Baby Registry Recommendations

Once most of your friends are married, you can breathe a sigh of relief. That expensive season of weddings, bridal showers, and bachelorette parties has passed.

But wait—baby showers may be just around the corner.

Luckily, celebrating your friends’ new baby is often less pricey than their nuptials. And of course, who doesn’t love buying tiny, adorable clothing? It’s a fun event to shop for, but what are the items new parents need most? (Hint: it isn’t onesies!) And when it’s your turn to pop out a little, where are the best places to register?

Products We Loved

There are hundreds of lists already out there on what to register for, from minimalists/natural parenting lists that even eliminate the crib, to the buybuy Baby recommendations which would have you register for nearly everything in the entire store. Sure, all baby really needs is you, but some baby gear will make your life a whole lot easier.

My list isn’t meant to be comprehensive, but here are the items we used most in the course of having three kids, including a few less obvious favorites.

Thermometer—this is one of the best gifts I received. Our first night at home was grueling. Baby was fussy, we finally realized he had a heat rash, and couldn’t get an accurate read with the cheapo thermometer that came with the mostly useless baby grooming kit we registered for. (I’m still using the nail clippers, though.) My friend overnighted this thermometer to us and it’s been such a trusty parenting tool. It’s still going strong 8.5 years later. Plus my kids actually enjoy getting their temperature taken with it!

Rechargeable batteries—an endless number of other gadgets operate on batteries, and while it’s wise to pick out items with electric options, sometimes you just can’t. Enter rechargeable batteries, the least expected but invaluable baby shower gift.

Travel white noise machine—we are not homebodies and definitely took our kids out and about a lot. White noise helped them sleep on the road and while we host at home.

Light-blocking curtains—I really believe these made such a difference in our babies abilities to sleep, and I’m not the only young mom to say so. Sure, taping cardboard over the window works too, but I like to be able to let in sunlight when it’s not sleepy time.

Stroller frame—if you have a smaller car or just don’t want your stroller dominating your entire trunk, consider getting a stroller frame that fits the car seat (also essential). It doesn’t have an actual seat, and you’ll need a different stroller when the baby outgrows the car seat, but by then they’re ready for a jogging stroller or umbrella stroller anyway.

Jogging stroller—if you want to do any off-sidewalking, I highly recommend a jogging stroller. Most regular strollers have smaller wheels that don’t do well on grass. I’m not acquainted with the fancier, more expensive strollers, but the standard brands don’t do well off pavement. Even bumps in the sidewalk can be a lot for many strollers to take. We’ve used our jogging stroller for hiking, camping, walking, and, of course, jogging.

Ergo carrier—the nice thing about the Ergo carrier is that it allows you to wear the baby from a very young age up through toddlerhood. It transitions from front to back (and can be worn on the side as well, though I’ve never tried it).

Bath tub with sling—this is far from a necessity but we loved ours so much and the babies loved it, too. It’s a small plastic tub with a mesh sling that clips on for infants. It made bathing their slippery little selves so much easier. And when they’re able to sit up, it was a nice shape for them to keep bathing in without the sling, until they were steady enough for the big tub.

Pack n play—we used ours a ton. Didn’t get the fancy model with the changer attachment, though. It still seems too low.

Swaddle Me blankets—we loved these. I thought my daughter was going to go off to college still sleeping in these. I also liked the Miracle Swaddle.

Baby book—you’ll want to document the first year.

Battery snot sucker–Just got one for baby #3 a.k.a. Snotlout and it’s way more effective than the aspirator yet totally gentle. 

Space saver high chair–This high chair sits atop a regular chair and is easier to move and store. We also got a lot of use out of our booster high chair which is good for travel, when you have other kids over, and when you’re baby is a toddler. In fact, our kindergarten just asked to bring it back to help her sit still at dinner!

Play gym–We got sooo much use out of this play gym. The babes loved it from about one month till they were crawling.

Baby swing–I didn’t love ours and never found it to be the silver bullet for crabby babies. But again, many parents swear by them, especially for infant naps. If you get one, opt for something that looks cozy; I think ours was too hard. 

I’ve included affiliate links to the products we liked, or similar, but of course, if you can find some of these used you’ll save a ton. I’d recommend getting a new car seat, pack n play, and stroller if you plan to have multiple kids, as it seems like the normal-priced baby items are only designed to go last for 2-3 kids.

Don’t Register For:

Clothing—you’ll get it anyway. Especially onesies.

Blankets—ditto.

Toys—ditto.

Bowls that claim they won’t spill—they will spill. Toddlers are geniuses at spilling things.

What to Expect the First Year—there are one million copies of this in the universe already. Get a used one. Or just talk to another mom. 

Personal preference

I found I did not get a ton of use out of my Bumpo seat or doorway jumper. Didn’t need a video monitor. Didn’t need a Scandinavian snot sucker. Sophie the Giraffe is not worth $20. Wouldn’t get a diaper pail that doesn’t use regular trash bags. Or anything really gimmicky or trendy unless you are trying solutions for a specific problem.

I loved registering on Amazon. There are so many options, which can be overwhelming, but also means you can get what you really want. The reviews and ratings are also very helpful. I liked that I could register for non-baby items like curtains, a lamp, a hamper, a nightstand, and books.

Registering for a baby can be overwhelming. I hope this list helps. I also recommend going to the store with a mom you trust and getting her tips and tricks.

What was the most useful baby item in your opinion? What was not that worthwhile? 

10 Reasons to Give Away 10 Percent of Your Income

I’m a Christian, but I don’t believe in “tithing”–a religious requirement to give away 10% of your income. However, I think it’s a darn good idea for a host of non-religious reasons.

1. Ten percent is enough to make a difference. I’m sorry, but tossing a couple bucks in the Salvation Army bucket at Christmas isn’t going to change anyone’s life. Neither is the random $20 tip. Ten percent of your income can’t save the world, but it can truly inflate the lifestyle of someone who needs it. For example, 10 percent of a median $50,000 salary is $5,000—enough to sponsor about 14 impoverished children for one year. Or fund 50 micro-loans to help end the poverty cycle in one family.  Multiply those effects over years of giving and you’ve made a significant impact.

2. Giving ten percent motivates financial responsibility. Learning to practice giving has helped us figure out both the how and why of managing our money well. It’s led us to practical steps like getting financially educated, annual budgeting, and living like college students while we paid of our school loans. It’s also motivated us to make responsible choices, because “having something to share” (Ephesians 4:28) is one of the most convincing reasons to say no to yourself.

3. Giving ten percent can make you cheerful. A famous Bible verse says “God loves a cheerful giver” (2 Corinthians 9:6). Interestingly, secular research shows giving can actually help make you cheerful. The Paradox of Generosity, based on the most comprehensive study of American giving habits ever done, reports generosity causes—not just correlates—with happiness. The study found lower depression rates among Americans who donate more than ten percent of their income, along with many other positive outcomes. It pointed out that those who experienced happiness practiced generosity consistently over time.

4. Giving ten percent is not irresponsible. A concern is that people will give to the point of financial irresponsibility. Let’s be real: I don’t think most of us are in danger of this. But ten percent is a very reasonable guideline that will not endanger you financially. After all, it’s in proportion with your income. If you can live on $50,000, you can almost certainly make it on $45,000–though perhaps not without some sacrifice. (Of course, if you are in a financial season of no income or great need yourself, it’s wise to press pause on giving.)

5. Giving away ten percent teaches you how to live on less than you make. Ten percent is enough to inflate your lifestyle, too. Giving away a tenth means you’ll choose a slightly simpler life with lower expenses. This can come in handy in lots of scenarios, like if your income decreases due to a job layoff, career change, retirement, or one parent staying at home with kids. It’s also just a great way to keep a buffer between income and spending.

6. Giving ten percent helps you spend on what you value. We talk a lot about values-based spending, and then go to Target and buy boring stuff diapers and Lysol. It hardly feels like values-driven budgeting. I guess I value containing bodily fluids and slaying germs. Okay, I value my kids! But if I care about the homeless, the hungry, and the hurting, I will spend money on them, too. 

7. Giving ten percent acknowledges God’s provision. Even if you don’t believe in God, it’s healthy to recognize that certain circumstances outside your control, such as your intelligence, personality traits, or opportunities, contributed to your current income. Of course that doesn’t mean you didn’t work hard, hone skills, or grow your career. Both are true.

If you can believe God or the universe has smiled on you at least a little, giving acknowledges that. “What do you have, that you did not receive?” (1 Corinthians 4:7). If we believe we’ve been given to, we are so much more likely to give to others. And giving ten percent is a tipping point where you’re parting with a substantial portion of your pay. For those of faith, you’re actively agreeing that 1. God gave me this and 2. He will continue to meet my needs. I don’t need to hoard it all for myself if God is a good provider.

8. Giving ten percent helps protect against greed. It’s easy to say, I’ll give when I make more, or when I reach financial independence, or when I have XYZ in place. There are seasons where more or less giving is appropriate, to be sure. But the only way of being fairly certain that you really will give when X, Y, and Z happen is to give all along the way. Greed is not reserved for those with an affinity for nice, new things. It can also corrupt those like me who love to save. Generosity guards your heart by keeping you compassionate toward others

9. Giving ten percent allows charitable organizations to plan for consistent impact. Giving consistently over time makes you a dream donor–even if you aren’t giving away millions. We split our giving between several destinations, but deciding ahead of time how much to give, and making the commitment over several years allows the organizations you support to keep their efforts afloat.

10. You will feel it if you give away ten percent. Generosity has an opportunity cost. It’s helpful to realize the trade off and affirm how worthwhile it is. Choosing to forego a few wants in favor of supporting important causes is a beautiful way to practice mindful, sacrificial philanthropy.

Lest anyone start to feel guilty, judged, or pressured about their giving habits, I leave you with this gracious verse:

“You must each decide in your heart how much to give. And don’t give reluctantly or in response to pressure. ‘For God loves a person who gives cheerfully.’ And God will generously provide all you need. Then you will always have everything you need and plenty left over to share with others” (2 Corinthians 9:7-9).

What benefits have you experienced from practicing generosity? What causes do you value?

Reflections on a Decade of Pretending to Be Poor

How much change a decade brings! It’s almost exactly 10 years to the day since we bought our house. We started trying to start a family around the same time. We also finished paying off student loans about 7-8 years ago and have met a couple other financial goals since then.

Buying a house and having three kids hardly sounds like a frugal decade, right? It was the decade when we slowly graduated from our “live like a college student” mantra. No more living in our friends’ basement.
No more broken lamps in our bedroom. No more dates at Taco Bell. Okay, a lot less dates at Taco Bell. Neil’s car is worth more than $1000, and we even own a flat screen TV.

But while our expenses have waaaay increased since the newlywed apartment days, we’ve been able to pay off debt and get that retirement nest egg rolling, mostly on one income. I scarcely knew what a 401k was 10 years ago. Now we’re setting ourselves up to exit the traditional workforce by our mid-40s.

I imagine the next decade is going to be one of the most expensive of our lives, so I’m glad we spent the last ten years living simply a.k.a “pretending to be ‘poor'”. What’s great is that, while our spending has increased, it hasn’t kept pace with our income. So now that we’ve entered a more expensive period of our lives we have the wiggle room to keep giving and saving like we want to. We really didn’t do anything too crazy except not spend all our money on cars. But you be the judge:

Slightly crazy stuff: Neil fixing head gasket on 1990 Dodge Shadow, buying a $200 car, DIYing all home repairs and remodeling.

Crazy only in our culture stuff: not buying a bigger house (yet), buying used cars in cash, not upgrading cell phones every year, camping for some vacations, doing own car maintenance and yard work, packing lunch.

Fairly normal stuff: shopping at ALDI and the thrift store, eating most meals at home, using hand-me-downs, not going to Disney (yet).

Just five years ago I couldn’t bear the thought of opening a can of beans because dry ones are so much cheaper. Today I pay Walmart $98 a year to deliver unlimited cans of beans to my door step. Times have changed. What will the next decade bring?

Whatever it brings, I know our thrifty 2010s helped us lay the foundation for our future goals. It may take another decade to reach our next big goal. The point is, you can do a lot in 10 years! Whether you feel like you’ll never get out of debt, or buy a house, or save for retirement, the 2020s are the time to start.

Have you done anything “crazy” to save money? How have your life and finances changed in the last decade?

The Easiest, Laziest Way to Save More Money

The easiest, laziest way to build wealth is to invest in index funds. But where is that extra money supposed to come from? The easiest, laziest way to have extra cash available is to avoid car payments.

Neil recently commented while driving, “The more I think about it, cars are the key to having money or not. What else do people willingly throw away tens of thousands of dollars on?” Sure, maybe you get take-out a little more often than you’d like, but are you really dropping $300-500 a month on it? But some people do on cars. Without even thinking twice about it.

While transportation clocks in at #2 of the average top expenses behind mortgage/rent, real estate generally appreciates while vehicle values tank rapidly. Keeping the mortgage in check will go a long way toward financial stability. Yet people don’t upgrade homes at nearly the rate, or with as little thought, as they upgrade cars.

A common objection to avoiding car loans is that you won’t be able to afford a safe, reliable vehicle. Not everyone can fix cars like my handy husband. But taking out a car loan isn’t the only solution. The trick is to save up to pay for your next vehicle in cash. I understand that this will look differently for every budget. Perhaps you’re only able to save up $1000 for the first car you buy in cash. Hopefully, though, you can save up a few more thousand for the next one.

People tend to think those older cars will need such expensive repairs, you’d be better off buying a newer vehicle. Of course, it will all depend on the car. Have your mechanic or a knowledgeable friend look at any used vehicle before you buy it, using any necessary repairs as a bargaining chip unless the price already reflects these. Despite what panicky naysayers would have you believe, it would be hard not to come out ahead of paying $350-500 per month for a car payment or lease.

Let me illustrate the wealth-building potential of not having a car payment. If a couple both has a modest car payment of $250, that’s $500 a month or $6000 a year. You could max out an IRA each year for that amount!

If you set aside $1000 per year toward your next car, and invested the other $5000, in 30 years you’d have over $472,000! (Assuming 7% interest.) Up the payments to the average American’s $350, less $1000 per year, and you could build $700,000 in wealth!

In conversation with people, I’ve noticed that having just one car payment is seen as financially conservative. And I agree that it’s way better than having two. That brings your potential investment down to $189,000 – 302,000. But I’d still rather have the retirement savings than the newer vehicle. Wouldn’t you?

What if you can’t do your own repairs, or worry about reliability of older vehicles? If you absolutely must purchase a car with a payment, keep the loan amount as low as possible and pay it off as quickly as you can. When purchasing, try to avoid loans that will charge a penalty for early payoff. That’s just highway robbery.

Then drive that car as long as possible! Where people go wrong isn’t simply with buying a new car. If you pay it off in 5 years and then drive it for 15 more, that’s a pretty frugal way to go. The trouble starts when you upgrade every time the last vehicle is paid off. That never-ending cycle of car debt is will rob you of the flexibility to retire before 60, travel, be generous, or whatever else floats your boat.

What if you already have a car payment? Assess the situation. Can you pay it off quickly and drive that car for a long time? Then pay it off! If you over-spent on the vehicle, it’s probably wiser to sell it. There’s a sunk cost fallacy stating that once you’ve already spent so much on something, and it’s depreciated, it’s better to just keep it. But if you’re in over your head or realize the cost is more than you can justify, it really is better to sell. It’s a hard choice to make but in the long run you will thank yourself! Take some of that money from the sale and buy a car you can actually afford.

Of course, if you can get by with no car, you’re better off even still. But for those of who can’t swing that, your vehicle choices are part of the key to your financial future. Choose wisely! Start today by setting aside $50-100 per month, or whatever amount you can, toward the goal of owning your next car outright. Once you’ve reached that goal, direct your old car payment funds toward your future.

Further reading on frugal car ownership: How I Spent Less than $8k on Car in 17 Year of Commuting

What is the best, or worst, car purchase you’ve ever made? What other objections are there to buying cars in cash?