In Review

So much goes through my mind at the end of a year.  How did I do?  Did I achieve what I wanted with my year? 
I thought it might be fun to inventory my progress in preparation for the year to come- Top 10 financial steps for 2014.

1. Study for and pass my real estate exam

2. Become a REALTOR!

3.  Sell the best flip yet

4.  Buy the worst flip yet-financially speaking

 (trying to sell right now, to hopefully get my money back and start again.)

5. Save my $10 bills

6. Find more affordable health insurance

7.  Read new books! (A couple of favorites)

• "The Willpower Instinct"- Kelli McGonigal
• "The One Thing"- Keller

8.  Had monthly FFC meetings!

(Fiscally fit chicks Susan and Sam, canning salsa from homegrown veggies)

9.  Grew my brokerage account (thank you TSLA and NFLX)

10. DIY my laundry room

I can't wait to see what 2015 brings!  Happy New Year everyone!!

A Personal Challenge Makes Saving Fun

We all know saving money is not the most fun thing to do.  But turning a goal into a mental challenge proved fun (and profitable) for me.

 

My $10 bill savings goal turned into...

$340  

(in just 2 months)

 

I loved my goal I set in the middle of April.  I decided that every time I got a $10 bill I had to save it.  Sometimes I was excited to get $10 in change, other times I would desperately hope my change would come back to me in $5's and $1's.  

Once I used the self check-out at Wal-Mart for items that came to about $14.  I only had a $100 bill left of my cash grocery budget and as fate would have it, I received $80 back in $10 bills!  I was a little nervous to finish out the rest of the month with only $6 to use for groceries!!

It worked out though and within 2 months (I kept my goal going through May) I saved $340.  I deposited it into my account this month and have decided to keep my $10 savings as a rule I live by instead of just a monthly goal, that's how much I loved challenging myself to do it.

Turns out experts agree.  Check out this MSN article, suggesting playing your own mind tricks as a way to become wealthy.  

Now I just need to think of some more...

Another Flip Hard on a Mom

I picked up this 1976 beauty the same week I sold my last one.  This house (nick named "The Tire Factory" because of the old tires used for the back yard retaining walls) took me 5 very intense weeks to complete.  A perfect cosmetic flip. I did this one without a contractor and with a lot of personal sweat equity to go with the money.

 It was hard on me and my kids.

It sold quickly, and the profit was just under my goal, but pretty good for 2 months of time, work and money.


As I consistently dance the line of taking on big adventures to become more fiscally fit and living a life as a full time mom and wife, I struggle.  I LOVE having these projects, at the same time I hate feeling like I fall short at home when I'm so involved with them.  Sound familiar working moms?

Now that it is sold and money is in my bank, I can't help my urge to find another and watch my savings grow.  At the same time, I remind myself of the time struggle involved with flipping houses.

The same week I closed this house, my veteran flipping friend, J(the same friend my hubby and I partnered with on our very first flip in 2000.) asked if I'd partner with him on another little 1893 house- requiring me to do no work whatsoever.  (Just $.) 

So far so good.

I got a text while typing this post showing trees trimmed, demo done, trash hauled and drywall installing.  I get to be here with the kiddos (and their friends...it is summertime of course) while he manages the job.

Keeping fingers crossed as we move forward with this one.  Hopefully the dynamic of not having to take the time, but financing the project turns out profitable for all involved.

5 House Flip Selling Tips I Wish I Followed

I was suppose to close on my 1940's flip March 3rd.  I finally closed yesterday. 

Ten days is a long wait when you are on a schedule and a budget.  With the frustrations of working with buyers, title companies, lenders and realtors-I learned a few things I'll do differently next time.

I really have a lot of tips for women that are taking on a house flip project as an investment, but for today- I would like to share a few that help at the end of the game, when it is time to sell.

1.Never take less than $1000 earnest money.  My home was under contract in the end of January and they gave me $500 earnest money.  They took 6 weeks to close, meaning I still had to pay my carrying costs, utilities, insurance, etc.  As the buyers struggled to get their loan together, I lost money every day.  They were close to backing out and if they had, they would have left me with 6 weeks lost time, over $1000 in extra bills and only $500 to compensate. 

2.  Don't close on a Friday.  Most of the time the buyer will close and then the money will actually show up in your account the next day.  So if I closed on Friday (which was one of my scheduled closing days that they backed out of) I would still pay utilities, interest, etc. for the entire weekend until it funded on Monday.

3.  Get it in writing.  After extending the closing date for the second time, I told my buyer via my realtor that I wanted $500 more in order to keep them under contract.  They agreed they would send me a check overnight (because they went out of town instead of closing when they said they would).  It was not written as an addendum, therefore they never sent the money.  Integrity doesn't really go far for some people. 

4.  Don't assume the deal is done until it is done.  On March 3rd I went into the title company and signed all appropriate documents, was told the buyers were signing that afternoon, and went on my merry way.  I then cancelled insurance and scheduled utilities shut off.  To my surprise they did not sign and I still owned a home that was now uninsured and utilities were about to be turned off.  I re-instated insurance and utilities but it all took more time and money.

5.  Remember the cost of title insurance.  Most real estate sales negotiate some sort of closing costs into their final deals.  In my case I said I would pay $5000 toward the buyers closing costs.  As I did my numbers over and over before I closed, I had in mind exactly what my profit would be.  Unfortunately I was thrown for a $1600 loop when the title company informed me that I would also need to pay the buyers title insurance costs. In Utah, where I live, it is customary for the seller to pay this fee.  So in the future, I will always remember the 2% extra fees from the title companies when I plan out my flip deals.

Hopefully these tips help any of you in the future.  It's good to learn from mistakes-and move forward.

I'm closing on my next flip this Monday.

DIY the Laundry Room

One of my fiscally fit goals for this month was to fix up my laundry room. 

This poor neglected room has never received much attention and with my desire to learn some more "hands on" renovation skills- I thought this would be a good step.  

(I'm really the only one who sees it, so if I mess up- no big deal, right?)

It took me a couple of weeks to muster up the energy to get started, but as soon as I did it all came together quite smoothly.

I already had the gray paint, so my only expense was the yellow paint/primer, knobs and the new ironing board cover.  (Truthfully, I was a little nervous about buying a paint color called "Citrus", but I decided to go all in on this DIY)

In all, I spent $47.  

I checked off a goal, made my home a little nicer, created a brighter space to conquer the dirty clothes, and felt good about myself in the end. 

 In fact, next month our FFC meeting will be all about DIY projects with instructions from a professional, pretty great.

  

Falling in Love with the Pursuit

The true essence of a happy life is 

FALLING IN LOVE with the 

pursuit of your dreams...

This quote shared by my yoga teacher has by my constant companion this week.

I have so many dreams of who I want to be, where I want to be, what I want to achieve, and really what is most important of all of them.  Instead of wondering why I'm not already a millionaire, a mother who never loses her temper, a wife who always looks great, a woman with a constantly clean house, a friend that never forgets birthdays, a sister who keeps in close touch with her siblings, a feature article in Money Magazine, or living in Hawaii-  I will remember this quote.

I will be ...falling in love with the pursuit...

5 Tips Teach Children About Money

Our Fiscally Fit Chicks meeting was really great this month.  We had some visitors and I was lucky to get the most knowledgeable businessman, philanthropist and wealthy person I know to present for us...my dad.

As a father of nine and grandfather of 23 (so far) he was the perfect guest speaker for our topic-  

How to Teach Kids about Money. 

Dad holding newborn Beckett.

The theme of his advice started with the idea that wealth is not just about money.  We need to teach our children that they can be very wealthy even without money in their pocket.  Wealth comes from friends, family, happy attitudes, education, kindness, etc.  In that same vein many financially rich people can also be very, very poor in character and spirit.  It is our role as parents to teach children the true meanings of these words.


He followed that up with 5 tips to teach children about money.

1.  Work for what you receive.  As parents we should present opportunities for our children to work and never just hand them money.  As a child, if I wanted something my question to my parents was never, "Can I have $20 for the movie?"  It was, "Do you have some work I can do to earn $20?"

2.  Teach contentment and DO NOT COVET.  Don't keep up with the Jones' just to look like everyone else.  Recognize your blessings and help your children feel them. The next time you hear, "Everyone in my school has an iPhone- why not me?" you can respond with the gratitude of your life instead of wanting what everyone else has.

3.  Money is not for showing off.  Be sure your children know that having money does not give you a free pass to "show off".  Money should be used responsibly.  If you ever hear your child telling their friends, "My family is sooo rich. We buy whatever we want."  You need to re-think character development.

4.  It's OK to say "We can't afford it."  Some experts suggest using the words, "I don't want to spend my money on that right now." or "We haven't budgeted for that at this time." The idea is that it is OK for our children to know we can't buy everything we want.

5.  Tithe and Save.  Every financial expert I have studied suggests paying a percentage of money to church or charity and saving a percentage of money.  I have been taught to pay a 10% tithing since I was a young child.  It is a habit now and one that I never question.  Teaching these skills at a young age helps habits form and gets kids prepared for their life on their own.

Strike a Power Pose

 A couple of weeks ago while doing laundry I found this great Ted Talk about Power Posing. 

Amy Cuddy shares research on how our body language can actually change the outcome of our day and futures.  Just by making a Power Pose (opening our arms and bodies, looking up, puffing our chest, etc.) we can become more powerful! 

Did you know it works even when you don't feel powerful?  It is a perfect way to "Fake it till you make it." 

I ran after my children when they were walking to the bus stop to tell them their day would be better if they walked with their arms up in the air for a little while.  I then watched my 3 boys powerfully march down the road, arms spread in high V's and lunch bags dangling from their palms.

As a fiscally fit chick, I will now be channeling my inner Wonder Woman before speaking to any solicitors, insurance salespeople, telemarketers, medical account services, the cable company and men in general. 

You should try it!

Law of attraction got me a furnace guy

I can't believe it worked!
My January resolution of using the law of attraction and visualizing what I want worked today. 

Here's the story:
Last summer, Sonny replaced the thermostat in our sun room.  Shortly after, the furnace quit working.  Since there is a separate unit for that part of our home, we managed with ceiling fans and windows. With the cold weather Sonny had every intention to fix that furnace and even climbed on the roof (that is where it resides) and ordered a part for it.  Since there is a gas fireplace in there also, we have managed through the winter by turning on the fireplace when we are in there and keeping the doors closed when we are not. But it has been annoying. The gas smells and makes my eyes burn a little and the leather couches are like thin layers of ice, ready to crack when you sit on them.

I have said to Sonny MANY times, "We need to fix the furnace."  Every time I walk in the room I think, "We have got to fix the furnace!  I should call someone."   But we never did-hoping that Sonny would get around to looking at it again or breaking down and calling someone.

Today, there was a knock on my door.

I opened it, seeing a kind looking middle-aged man dressed in a blue uniform with the name "Dan" embroidered above the pocket.  On the street behind him sat a work van with a local heating and air company name painted all over it.

"Hi, um, I have an appointment with you, but I'm not sure what for.  It isn't in my notes."  Said Dan.

"I didn't make an appointment.  Are you sure this is the right place?"  I said.

"Yes, Carolyn, right?  Well do you have a furnace problem?" He asked.

"I do... Yes."  I told him I thought my husband must have made the appointment and forgot to tell me.  I showed him the furnace and while he looked it over, I called Sonny.

"I didn't call anyone." Sonny told me.  "I have no idea how he got there."

Dan saved the day.  He found a blown up part of the unit, ordered it, and will get it installed tomorrow.  We both kept marveling at the oddity of him just showing up.  He showed me his work order and there was my name and address, clear as can be.  No notes, but another person's phone number.  Somehow there was a mixup- but it was a lucky one for me.

Did I attract Dan to me?  Maybe.

I definitely sent the thought out a few hundred times into the universe.

The experience has renewed my excitement to this month's experiment into the law of attraction.  New found faith in the idea made me a little giddy and helped me recognize 2 other possible attractions today.

1- When I opened the bank statements to my boys' savings accounts, I saw that the accounts all had a monthly $5 service fee.  I was bugged that a kids account would charge a fee.  Especially since I am pretty careful about watching for little financial  jabs like that.
I decided that after Beck got home from Kindergarten I would go to Wells Fargo and talk to them about it.  I saw myself walking into the bank and telling the banker that I was not going to keep the accounts there with a fee as large as this in a child's account.  I saw him apologizing and waiving the fees.
After an hour I picked up the statements again and my eyes were immediately drawn to a sentence I hadn't seen before:

The bank has waived this fee.

Fantastic!

2-  I took Beck and Cohen to the library this afternoon.  I have been wanting to get some more audio books and I was hoping to find some resources on where I might send an article I'm writing as another one of my goals this month.  There is a book called "Writer's Market" that is the best compilation of publications, publishers and information on getting published in the universe.  Every time I go to the library it is missing.  (Our small town of 16,000 has a pretty little library.)

Today, I walked up to the section and found not just the out-dated 2012 version, but a brand-spanking new 2014 edition sitting there, waiting for me.  

Awesome!

I think I'll keep this positive thinking and visualizing stuff going.  Small victories lead to big wins, right?

 

Attracting a New Year

We're in it now.  2014 is official, my kids are back in school, and life is moving on.  I think New Years Day might be one of my favorite holidays because of my weird love of goal setting.  (Thank you father.) But I accept my quirky passions and hope to see them work for me (and all Fiscally Fit Chicks!) as 2014 rolls along. 

As I walk/jogged on the treadmill on January 1st, I searched Netflix for a good documentary and found "The Secret".  I had read the book a year ago, a new-age type book that discusses the law of attraction as the secret to prosperity, health, relationships and happiness.  If we think it, we can achieve it sums it up pretty well.

Here is the Secret link if interested : http://thesecret.tv/thesecretfilm/ 

Obviously this is not the only book to examine the power of the mind.  In fact, Napoleon Hill's,  "Think and Grow Rich" was written decades before and covers much of the same ideas.

So, after watching and re-reading segments of both books, I decided that this month I would actually do the exercises that they suggest and really try to focus on "attracting" what I want to myself.

• I wrote a journal entry in the present tense depicting my life exactly as I want it to be in my successful future.  
• I wrote down what I am grateful for, I have been repeating this gratitude list every day.  
• I am also using my meditation time during yoga class to visualize myself as this person in the future.  (I've tried visualizing checks coming in the mail- an example they share in the book- I'm still working on that.)

I like the exercises.  As a gymnast I would always take time to visualize my routines and skills.  I would see myself sticking my landings and being awarded perfect scores.  Even my husband came home from playing basketball this week, happy about his performance in the game.
"It is so mental." he told me. "I was able to actually see myself hitting the shots before they went in, and then they did!"

Whether you believe in Karma/universal energy or not, I think this self experiment is a good one.  I'll keep you updated as I go.  Happy New Year!