What would you save?

It seems like there has been a lot of disaster and destruction in the news lately. Earthquakes, wildfires, flooding, tornadoes, and smaller scale events like the fire in Mapgirl's neighborhood earlier this week.

Before I even begin talking about the subject, I want to reiterate Mapgirl's statement that you need to make sure you are insured and that your insurance policy is up to date. Yes, that means you too, renters. I don't care if you don't think you own anything of value. If your building burns down or even if something less tragic happens, like a pipe bursts and destroys everything in your apartment, you're going to want to be able to replace some of it. Your IKEA bed may not seem all that valuable to you now, but it's better than sleeping on the floor.

I continually remind myself that stuff is just stuff. Yes, it may have sentimental value, but at the end of the day, it's just things. That said, having watched coverage of the flooding in the midwest, I can't even imagine having to rush through my home, pick out the few things that I can fit into my car, and just leaving the rest to be damaged or destroyed by the flood waters.

I spent a bit of time thinking about what I would want to rescue from my home, and it really forced me to think about what sort of value I place on items - and thus, where I should and shouldn't be spending my money. (It also made me think about the fact that I have too much stuff.) What would I put into my car if I had to evacuate?

Of course, the first thing I would grab would be my cats. I don't count them as stuff. Yes, they're pets, and some would consider them possessions, but I think any pet owner would say that a pet is more than just something you own. (I would also take some clothes and any prescriptions that I might be on, supplies for the cats depending on where we're going, and snacks and water, but that would be more for convenience and safety than to prevent things from getting destroyed. Phone/wallet/purse also falls into this category.)

I would take my laptop and my external hard drive. But because I use Carbonite (if you want to sign up, leave your e-mail for a referral link - you get an extra month free and I get 3 extra months), everything on my laptop is backed up and can be restored. Additionally, I keep a backup of all my photos, documents, and music on discs that I keep in my desk at work. This is one huge advantage to the digital age. A friend is currently working on scanning all of her old photos, and I think that is a project I might try to take on as well. But for now, I would grab my photo albums and the few framed photos I have around the house.

I keep a fire box with important paperwork like my birth certificate and passport and copies of my cats' immunizations (I'm not sure those need to be in there, but then I know where they are). So I'd grab that, along with my filebox containing tax returns, school transcripts, banking info, etc. Of course, if I ever do anything about creating a digital filing system, that filebox would also not need to be rescued from impending disaster.

Other than that, I'm not entirely sure what I would grab. I have a box of "stuff" that I have saved - anything from awards to sweet notes from friends and family to old journals. It might make the cut, though I can't say I know what's all in that box at the moment (yet another thing to add to the to do list). There are also a few small items kept in a glass hutch that have a lot of meaning to me that I would take if there was time.

Yes, I have a lot of things that have a lot of sentimental value that, if there was time, I would try to save. Things that I can't imagine ever voluntarily getting rid of. But at the end of the day, I don't even have that many of those, and I wouldn't be devastated by their loss. Most of those are tied to memories, and I would still have the memories.

So when I think about it, I don't really have much in my home that I can't bear to get rid of. Of course, that doesn't mean that I plan to reduce my worldly possessions to what will fit in my car. While I don't need the framed art on my wall or the collection of books on my shelf, I certainly enjoy them and have no plans to get rid of them anytime soon. And I would find it tough to know that all of that had been destroyed.

What does this mean in terms of personal finance? Well, as I said, it means that I should check my insurance, just to be sure. But I think it also means that I should continue to think about what I do and don't need in my life and maybe where I can cut back to save money. And that I should be thankful that I haven't had to worry about all my possessions being destroyed.

What would you put in your car if you had to evacuate?

A decision (for now) on buying a home

Those of you who have been reading this blog a few weeks know that I've been pondering buying a home. See here and here. I've decided that for now, buying just isn't right for me and I'm going to continue renting. A number of factors influenced this decision.

1. I got some bad news at work regarding a promotion for the group I was hired along with. I don't want to go into details, but I will not be getting the promised promotion (and raise). Because of this dishonesty, I am looking for a new job, but for now, I have to realize that I'm financially stuck where I am for the foreseeable future.
2. With looking for a new job, I want to know where I'll be working before I make a decision on where I live. Right now, I have a quick, easy metro ride to work. I would hate to buy in this area and then up working completely across D.C. in an area where I didn't think to look for a home.
   
3. Right now, it's just me. I was out for a run the other day, and I saw some people out doing yardwork and I realized that I've come to value the free time I do have on the weekends. Yes, I spend a chunk of it catching up on all the chores I haven't done all week, but I appreciate the fact that I don't have a yard to work on.
4. I kind of like the fact that if something breaks in my apartment, I call maintenance and they deal with it. I don't have to worry about an emergency fund to cover a new oven, for example.
5. I can't guarantee that I'll be living in this area two and a half years from now. Maybe that's a silly reason, but it's just another factor to be considered.
6. Given my current salary, a mortgage payment and dealing with taxes and all the other fees that go with home ownership is doable, but barely. And probably not on the type of place I want to buy.
   
7. Yes, rent is not cheap. But there are perks that come with rent. No property taxes. Security on site (a nice feature for a 20-something female living alone). A gym. Someone to collect my packages when they arrive. Sweet location.

I think I have always believed that buying a home is just something you do, when a lot of people, especially in big cities, live much of their lives in apartments. I think that with where I am in my life, renting just makes more sense. And it means that I can save up more money to put towards a down payment on the perfect place when I'm ready.

More about housing

I've been continuing to ponder what to do about my housing situation. I'm really not sure that I will be ready to buy a home by the time my lease is up in September. My main thinking on this is that my current detail at my job will be over at the same time, and I will be either returning to my old job or (hopefully) starting a new job. I don't know that I want the stress of a new job and moving all at the same time, especially when I won't know exactly what kind of money I will be making.

I'm pondering the roommate thing - seeing if I can find someone that I know who'd be willing to move in for a while. I'm thinking of just renting out the room, charging a bit less than half rent, but not having to worry about moving all the furniture I already have in the other rooms. Of course, the roommate would be welcome to use all the rooms in the house (save for my bedroom), but that prevents me from having to move or get rid of any of the other furniture that I have.

I've been doing some intense decluttering in preparation. I've been cleaning out my closets and my drawers, and I have a pretty decent sized pile of clothing to take to Goodwill when I get the chance. It's a good feeling to be getting rid of all of these items, things that I know I will never wear again. The goal is to be able to empty all the things out of the second bedroom so that I can take on a roommate if necessary, and it's easier to do it slowly rather than all at once.

Dwelling on Dwellings

I have to admit, I’m starting to wonder if I’m dwelling a bit too much on my finances. I check my bank account balances almost every day. I’ve stopped checking my investment accounts daily, but still glance at them once a week in Microsoft Money. I’m constantly tweaking my YNAB spreadsheet and lamenting the fact that I’ve spent out of budget in a category and it wasn’t my fault! (Well, ok, every expense is my fault in that I initiate it, but when I get hit with expected fees months before I expected them, it hurts the budget.)

Lately, I’ve been thinking a lot about my current living situation. My apartment is too big. I love it, but it’s more space than I need (though I do manage to fill it with all my furniture and possessions. When I rented it, it was the only apartment available in the complex that I had fallen in love with. And I do still love the complex – it’s pet friendly, there are lots of amenities, and it’s in a good location. But when I rented it, I was under the impression that I was still receiving the sizeable raise at the one year mark of my fellowship that I was promised when I was hired. That (and other hiring incentives) have since been eliminated (but those are issues for another time).

The apartment is expensive. I still make ends meet, and I still put money into saving, but every so often, I find myself thinking of how much more I could be saving. If I just got a roommate who paid even less than half the rent (I do have the bigger bedroom with the en suite bathroom and my stuff pretty much fills the common space), and I stashed that away, my savings would be growing so much faster!

On the other hand, I’ve had some very bad experiences with roommates. Is it worth it to me to be spending a bit more and keep my sanity and my privacy? Quite possibly.

Plus there’s the fact that my rent will go up in September when I have to renew my lease. And my income will not be going up. Come September, I’ll hopefully be near to starting a new job, and while I do not want to take a pay cut, I might get stuck without a raise for a while.

I have a number of options. I can just suck it up and continue to pay the rent and enjoy the perks of living alone. I can find a roommate. I can try to move to a smaller apartment in the complex. I can move to a new apartment complex. Or I can start looking for a place to buy.

I’m not huge on the moving, and told myself I wouldn’t move until I bought a place. This seems to be the time to buy though. I’m just not sure how long I’ll be in D.C. I plan to stay with the federal government a minimum of three years, because that’s what it will take for all my retirement benefits to vest. Beyond that, I have no idea. Is it dumb to buy a place that I may only live in for 2 years? I don’t know.

It’s a lot to think about. And part of me doesn’t want to think about it at all. For now, I think I will focus on the small things – figuring out how to save while still spending enough to be able to have fun (one drink at the bar won’t kill me after all !).

A fascinating post

I have spent the better part of the last hour visiting the sites linked by Frugal for Life in the entry Tiny Rooms, Tiny Homes. I find Tumbleweed Homes especially appealing. I always feel as though I have too much stuff and would love to just be forced to unclutter and live a simpler life.