We Bought a House!!!

Well, we bought a house! A townhouse that is. This happened rather fast. Back in December 2016, we decided that with my husband's non traditional work hours, our little rental was not working out anymore. Even with the cheap rent, we still can't sacrifice our sleep for it. I called my up old agent and soon after the new year we were house shopping every weekend.

Our requirements:
It must have an attached garage- I use to bring my daughter to my mother in law to babysit, and it's hard carrying my purse, my lunch bag and a child to the car while fumbling with the keys. And that's just one kid. It would be a struggle every morning to bring an infant and a toddler to the car. Plus, it just makes shopping easier and less likely to have our car broken into if it's safely parked in a garage steps from our house.
2 bed 2 baths-2 bathrooms is essential :)
Private patio- for the kids to safely play outside 
Low HOA fees- I think HOA fees are stupid. You get so little for your buck.
A nice kitchen- we love to cook.
Laundry Hookups- we've been doing our laundry at my mother in laws. It's such a hassle.
Guest parking- We want our friends to come and visit. They can't come if they can't find a place to park their car. There were a few places that we had to illegally park just to see the place. Needless to say, we didn't make an offer on those townhouses.

What we bought:
A 1200 sqft 3 bed 1.5 baths 2 story townhouse in a quiet complex. It has a private patio with direct access to the garage. With a HOA fee of $214 a month, it was the lowest we've seen.  The house has not been updated and the listing price reflected that. We made an offer $9k over the asking price, I believe it's still a good deal considering it was appraised at $10k more than what we paid for and that's before the renovations. There is a laundry area next to the kitchen which leads to a half bath.

Renovations:
Kitchen: we had the kitchen repainted. The cabinets were old and falling off, I can't fathom putting anything in there until it's covered in several coats of paint. We over paid on this though, I should have negotiated but I was naive :(. This will not happen again.
Repainting the cabinets: $1500
Flooring: Luckily, my brother in law and his friends do flooring as a side hustle and was able to give us a good deal. We decided to get rid of the old and gross carpet and put in laminated wood.
Labor: $1000 ( we might pay more for their good work)
Material: $1800 (nice hookups)
Recess lighting: Please don't be naive like me. When you're shopping for a house, take picture or videos of the house and review it after you get home. Mostly likely you'll be seeing so many houses in one day, you can't remember all of it. Most people only spent 5 mins seeing a house and then make a decision that's worth a few 100ks. I spend more time trying to decided which yogurt I want to buy at the supermarket. I did not know that this house doesn't have ceiling lights. I wasn't paying attention since we were viewing houses during the day. And let me tell you, putting in ceiling lights is not cheap since they have to do wiring. We put in a total of 10 LED recess lights down stairs and 1 regular ceiling light (I'm not sure if that's the correct term) in each of the bedrooms upstairs. With some hookups, the total cost was: $1300.
Electric oven/stove: Another thing I did not pay attention to was the oven. It's electric and I prefer gas. Gas cooks a lot better. ANDDD the stove is located on an island. I hate that. The oven they had was extremely old and we have to replace it. Electric oven $634.
Windows: This has not been done, being part of an HOA, such exterior renovations requires approval.  We have a total of 5 large windows and the estimated cost to replace is $2000-$2500.
Bathroom upstairs: The layout of this restroom is rather odd. It has two entrances, one through the hall and another through the master bedroom. We decided to close it off from the master bedroom. It has two large sinks, a shower and a tub. We paid my dad $1000 to close off the entrance from the masters and $550 for one of the counter top and cabinet. 
Total:$1500

There are probably more items that my husband bought along that way that didn't get recorded. There is  still a lot we need to do. Things like, getting a vanity mirror for the bathroom upstairs, curtains or blinds for the two of the bedrooms, clean out the patio and organize the garage. Our master reach in closet still needs doors, and what would be my daughter's room has an half finished closet system. The coat closet a door, maybe some shelves and also the stuff in it needs to be organized. 

Owning a house is not fun, but looking at renting a place like ours would easily be over $2000. If we sign a lease for a year, that's $24000, which is a nice chunk in down payment. We're the kind of people who believe paying this much on rent is throwing away money. But to be honest, this isn't our forever home.The kitchen is far too small and when the AC is running, it's extremely loud. The walls are thin and I don't believe it's very well insulated. The upstairs is always a few degrees hotter than downstairs. We now think of this home as more of an investment. We'll do little upgrades when time and money allows. My hope is to have this home as rental, But realistically, we'll most likely need the profit of this house to put down on our next house, a single family home. It's my husband ultimate dream to own a single family home, I can't deny the appeal of it neither. I've grew up in a single family home and really prefers the convenience of having a yard and not having to keep my voice down. Plus, I can finally have a garden like I've always wanted and maybe even have a dog again. 

Stop Trying to Impress People- Rant

I find that the less I worry about what other people think, the happier I am. That isn't to say that  I give up on how I look, or dress. But I have stopping buying thing just so other people would be impress when they see it. I'm writing about this is because I'm a bit irk about a family member and his lack of money management. My paternal side of the family doesn't talk about money like my maternal side does. I wouldn't have known about this if I wasn't somewhat involved. I don't want to go into details of course, but I do want to discuss how a combination of bad money habits get him in to this position.

I must disclose, I don't know everything. This is more of a general rant. Said person started making  a little bit of money, and next thing you know, he's pulling up in a shinny Mercedes. Seriously? In that moment, I just knew, he bought this car to impress people. He's driving it so other people see him as a BOSS, a success. This car is probably on a payment plan that's too high for someone of his income. And how do I know that this person isn't managing his money well? Well, he's in a bind, and is having trouble making certain payments on time.

I'm not against having nice things IF you can afford it. Why do you want to impress people when they're not the one putting food on your table, the clothes on your back, or take care of you when you're sick? Why do other people impression of you matter so much when they're not helping you better yourself or career? Those who truly care about you don't care about your material possessions. If someone only wants to invite you to a party because you drive a fancy car or wear designer stuff, then they're not your true friends. In fact, they can be toxic to your bank account, because to be in their circle you continuously need to have the newest and the greatest.

This person would have been in a better position if he would choose an affordable $20k car  he can pay with cash over a $50k car that he must put on a payment plan.  I bet his one car cost as must as two of my cars combine.

This person has a family and the kids are of working age, it seems like the kids don't have any monetary responsibilities to the household.  I get it, being a parent you want to provide for your kids, but they need to learn about money  and contribute when they can. It serves the kids to know how much things cost and teach them to manage their income.

I honestly believe he doesn't understand the concept of emergency funds. I think once he sees money coming in, the stream of cash will never stop. I'm pretty sure this isn't the first time he's gotten himself in a bind.  You think after a time or two you learn that money doesn't grow on trees. We share the same background, came from a third world country with nothing. I only wish he knew how much he has and doesn't need to impress others by buying more. Happiness is found from within. Like Oprah says, be happy with what you have and you'll always have more.

Family Planner and More Goals for 2017

I'm adamant about getting our finances in order this year. I even bought a personal planner to plan my life out. Made a family planner to keep track of everything. Today, I'll focus on the family planner. This planner only contain a few page as I'm still trying to figure out what works for me. This is just simple 1/2 in binder I got for $2.59 at Target. I printed the dividers with the cardstock papers I already have. It's not super decorated as I am artistically challenged. 

One of the most important page I think is our GOALS for 2017 page. Looking at this page really helps to curb the urges to buy things. If something isn't helping me reach these goals it's not worth buying. This isn't complete but it's what I have so far. I included the long terms goals here to make sure I keep focus. Some of these goals seems pretty ambitious, but not unattainable. Even if I don't succeed in all my short terms goals, but if I keep working towards it, I'm still better off than I was yesterday.  This isn't all or nothing. If we're not able to buy a house this year. It's fine, it only gives us more time to save money. Not like because we didn't buy a house this year, we're going to squander all of our savings. To me, goals are a destination that keeps you moving forward.

Behind my goals page is this spending log. I'm writing down everything we spend on this month, and hopefully every month. It would be interesting to see where we spend our money.

Under the HOME category I have a few house hunting evaluations. I got this from

scatteredsquirrel.com. We have not seen any houses yet, hopefully soon. I'll be sure the bring this along with me.

 I also have this BABY section. There is nothing set up yet. But there are a few things we need to do before the baby's arrival. The baby shower planning will go here. We also need to create a list of things we need buy for example a co-sleeper or a bed side sleeper. It's still too soon to set up a hospital bag, but that list will go here as well.  With two kids, I'm sure this will get fill up fast.

2016 in Review and 2017 Goals.

2016 in Review:
Wow, 2016 has truly gone by in a blur.  It's been an awesome year because every one is happy and healthy. Our lives have become much brighter ever since becoming parents. We enjoy every moment we have with our daughter. I learn a little bit more about myself everyday as I try to navigate my role as a mom. Watching my daughter grow has been the most rewarding experience. She's an incredibly loving and friendly child and I couldn't be more proud.
2017 is going to be even greater with baby #2 coming. Our finances has gotten better too with my husband's new job. We were able to save more and pay off some debts. But after buying the new van, we're back to square one in terms of savings. However, no regrets, we love our new car.

Our major successes:
 I paid off $20k of personal loan.
Husband paid off $6k owed on his Subaru.
We bought a new to us van with $12k down and gave the Subaru to my father in law ( we did take $2k from them, but the car is worth way more than that.)
We did not increase our standard of living even though we made more.

Our one major fail:
I'm the money person in our relationship and I'm simply did not keep track of our spending. We have a set amount of money we can spend on everything (my income). Although we never went over that. A lot of money was left unaccounted for, including the extra income I gain from my rental.

Our one goal for 2017- Buy a house.

Our place is ok  as a short term solution before you move into a more permanent place. The things that we were able to overlook due to the cheap rent is starting to annoy us. The lack of kitchen space is not allowing us to enjoy our at home life. Even making a pot of coffee is a hassle. The power always jumps anytime we have more than one appliances on. It's really effecting our everyday lives. Oh the laundry! Our landlords don't share their washer and dryer so we have to haul baskets of clothes to my mother in law's place to wash. She's very understanding and is more than happy to accommodate us, she even folds them after it's out of the dryer. But we're adults, we just wanted to do laundry in our own place.

The following are four major steps we'll take to make sure we get the funds to buy a house ASAP.

Save all of my husband's income
This one is just plain and simple. He's income goes to a different account and will stay there until we're ready to make an offer.

Save all of my rental income
If I can leave my rental income untouched it will expedite our savings for a house tremendously. And by house, I really mean a condo or a townhouse. We might be able to afford a house on paper, but that really is going to make us house poor. And plus, it'll take longer to save for the down payment. We're really ok with just having enough house for our family of four, even as the kids grow older.

Be more organized
Part of the reason why I felt like we failed in our finances is not keeping track of where everything is going. This year, we're going to be more diligent with our money. We're going to cut off more unnecessary spending. I even bought a chic planner to help me write down my goals  and set reminders to keep me on track.

Borrow money
Yup, I said it...We will borrow money to make up the difference that we need in our down payment. We'll save as aggressively as possible. But some interest free money is going to help a lot. Although, I still stick to the age old advice of not mixing family and money if anyone asks. But there are some lucky people who have relatives that don't tie money to obligations :).

I hope you all have a wonderful 2016 and Happy New Year~

Our No Gift Christmas

This may be a post from the Grinch...

This year, we are opting out of gift giving and exchanging. The main factor pushing for this decision is money. We wiped out much of our savings this year, with me paying off a personal loan, my husband paying off of his car and then with us getting a van (still no regrets in getting a car we can't pay cash for, it's amazing). We need to build it up again and this time we're saving for a house. Our place doesn't have a proper kitchen and it's starting to irk us that we don't have a proper place to make a meal. Husband and I love to cook and host get-togethers, but not having kitchen has not allowed us to do any hosting. Some days, we appreciate the low rent when we're too tired to want to cook. But the desire of wanting a place to call our own  is growing greater and greater.  I think even more so for my husband than me. I think his goal has always been getting a house when he finally have a decent job.

Another benefits of not doing gifts is the time I'll save from not shopping. Ever since I had my baby, I have more respect for time. I understand now that it's my most limited resource. Maybe because work has kept me away from her for most of the day, so any moment that I do have with her is more precious. Shopping to me feels like a waste of time since all my friends already have everything they need. I think they're a little relieve to not have to deal with gift shopping neither. This doesn't mean I'll never give any more gifts. I will, I actually enjoy giving gifts. My gifts now will be even more thoughtful because I give because I wanted to, not because a holiday mandates that I do. And isn't it more rewarding to see the surprise on someone's face when you unexpectedly gave them something?

And finally, we already have everything we needed and because we have more stuff than we have room for.  Ever since discovering minimalism and reading Marie Kondo's book, my mindset has shifted. I don't see a pleura of things as joy, but a responsibility. If you bring it home,  you have to house it and it take care of it. So if I bring something home, I must really love it or need it. I'm trying to simplify my life, not complicated.

So this year, we just want to enjoy people's company instead of things. We'll have pot lucks. I have family coming in from out of the country for a visit. We'll enjoy a short trip to Vegas with my husband's side of the family for a little get away. 

I'm not immune to Black Friday sales

So much for my plans of not buying anything this Thanksgiving weekend.  Many people spend more time planning their purchases than how they spend their time with their families during this time of year. I actually loathe Black Friday shopping. I think it's stupid how on a day where you're suppose to be thankful for everything you have and then before dinner even started you go and buy even more.

Although I haven't done any brick and mortar shopping during Black Fridays in years,  I'm not immune to their online sales.

I really wasn't planning on buying anything this year, but on a trip up north, I realized my daughter has outgrown her winter jackets, so I hop on to Carters.com to get her one. But oh no, there is a super cute sweater with a dog on it... It's sooooo cute! And added to the cart it goes. Oh, can't leave baby brother out, even when he's still in the womb. Gotta get him some shirts too.
Total spent at Carters.com $50

That super cute sweater with a dog... seriously, so cute! 

Oh, even before that, I saw a great deal on carseats from ToysRus. We been thinking about getting one for my husband's car, so he doesn't have to wait till I get home to pick up our baby. It's exactly like ours except the cover isn't removable. It's pretty excessive to have two carseats. But the convenience is worth it to us. We'll eventually need another one when our new baby out grows his infant carseat anyways.
Total spent for carseat $215

Got some emails that I 'forgot' to unsubscribe to. Damn you hollar.com and your cheap prices. They had a 40% one item. But free shipping starts at $25. I'm actually am pretty excited about these two purchases- the packing cube and storage boxes.
Total spent at Hollar.com $26

$10 for these packing cubes. 

$10 for these storage boxes. 

We visited my parents up north, while cleaning her kitchen cabinet, she asked if I've found the vegetable seeds she lost. She went crazy looking for it... turned out they were the kale seeds I bought her. So I immediately hop onto the good old internet and got her some. They were having a 35% off sale and I totally did not know until I check my email. I later hop back on to buy some herb seeds.
Total spent on seeds $6

It's the season to be giving right? So I've been on the look out for super deals. If I see a good deal that is too good to pass up, I will buy and donate.  I actually found a few that I felt the store was loosing money on. But I guess their lost is my gain. I bought a few fleece blankets for maybe the homeless or will be donating them to a woman and children center. I also found some great deals on dog beds. I bought a total of 6 from two different deals and stores.
Total on fleece blanket $16
Total on doggie beds $30

We actually had rain this pass weekend, and the weather dipped into the low 50's. I don't have any long sleeve sleepwear and decided it's time to buy some. Ultimately I ended up on the Old Navy website, everything was 40% off and an additional 20% off I believe.  But free shipping still started at $50. But guess what, on Cyber Monday, they had 50% off plus free shipping and a free gift.  I'm still piss off about that.
Total spent at Old Navy $58

I also bought some diapers and wipes from Amazon, they were too good of a deal to pass up and my baby is not potty trained so I better stock up.

Wow, so my total for this weekend was $401. That's just me on one credit card, my husband bought a few things too... probably another $50 worth. But next year, we'll do better, hopefully.

We Saved Half of Our Income

That got your attention didn't it? Husband's been working at his new job for a few months now. Even before he started, we vowed to not inflate our lifestyle and save all of his income. We did pretty well with the exception of the $1700 that we used to pay for our car insurance for the whole year. It felt really good for a few paychecks. All we see is money coming in and staying in. But, that didn't last long , once we had enough we took out about $6k to pay off his car. A few paychecks later we dive in and bought a minivan. We cleaned out his saving and now owe about $17000 to the bank. Not the most financially sound thing to do, but we think it's a good car at a very good price. And it being a Toyota, that machine will last us years to come. Which is good, we're keeping this car for as long as possible.

This is Sexy Beast.

Even though, we saved half of our income, our not so proud moment comes when we got a loan from the bank to buy the car. We got a very low APR, 1.74%, but any debt is a chain to your legs weighting and slowing you down from reaching your other goals. I seriously don't like debts, I don't think any one does. But to me, having debt is like having a gray cloud over your head, damping your mood and makes it hard to see anything else beyond it. We're paying it off asap for sure! 

Saving half of our income is fairly easy. I'm making ok money (not 6 figures, not even close to being close to 6 figures) and with the income I make from my rental, we are not living on a tight budget. So we're not really holding back on eating out or buying toys and clothes for our baby. However, this free spending streak is going to end. Because now aside from our emergency fund, we literally have no savings, not only that, we're in debt. 

One of the most important and most effective way to save a lot of money is to trim your reoccurring expenses. By that, I mean your rent. We went from paying $1200 a month to $820.  We don't live in an apartment or house, we're renting someone's extra spaces. It's cut off from the main house, we have our own entrance and everything. It has a nice size living room and bedroom ( with a small walk in closet), a bathroom and a kitchen space with no appliances. But, they do have an outdoor cooking space just right outside of our kitchen door. It's been fine, we're not cooking much anyways, we have no time and my mother in law cooks for us. The great thing about renting someone's house is that  the rent usually covers everything, gas, water, electricity etc. We lucked out on this place, it's in a nice neighborhood and our landlord is my sister in law's coworker. So if you need to find a place, start by asking your friends and family if they know anyone who has a space to rent out.

We also shop to make sure we're getting the best price for the coverage we want on our car insurance. Mercury came out on top. My husband carpools to work which cuts his driving by half. Not to mention he drives a gas saver. So we estimated that he gas costs him $100/month. I drive the van now and it will probably cost $150-$175/month. We haven't had our first gas fill up yet, so we'll see. 

Here is a list of our monthly bills: 
Rent:$820
Life Ins.: $256
Cell Phone: $100
Van Payment: $293
Childcare: $500 (yay for family) 
Gas: $275( roughly) 
Baby expenses:$100 (roughly) 
Food: $300 (I haven't been keeping track, but I'm limiting us to that much from now on. I think this is plenty considering we eat most of our weekday meals at my mother in laws)

This doesn't include misc. things, because I really don't know how much I spend on everything else. I'm terrible at documenting everything I buy. Although I really tried, but it's just a method that doesn't work for me or my husband. 

Our annual expenses include: 
Term life ins: $656
Car insurance: $1700 (for 3 cars, one's for my brother in law. We still need to add the Sexy Beast and take off the Subaru)
AAA roadside: $74

Our goals now is to pay off the car asap and save for a down payment.