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. 

YOLO

I had a short but very disappointing conversation with my brother in law the other day. It all started with us borrowing his van to test drive because we're considering replacing our SUV for a van. When we dropped off the car, he said that I should get a van but I sighed and said it was too expensive. A new (to us) car means car payments and we don't have enough in our savings to pay it all off. Although, I wouldn't mind a small manageable car payment that we can pay off in a short time. It's still a big purchase involving lots of $$$ and we like to sit on it first. 
 He encouraged and said "life is short, don't deprive yourself of what you want."
 This part makes sense, we don't know if we'll still be here tomorrow and we need to make every moment count.
He then goes on and said that THEY SPEND EVERY DOLLAR THEY MAKE!!!! THEY HAVE NO SAVINGS AND HE'S OK WITH IT.
 That's when I became horrified. Are you serious!?!? That's is the most obscured thing I ever heard.  How can anyone with a mortgage, wife and 3 teenage kids say that? He's the breadwinner and they're all depending on him. He went on and tried to justify that he's behavior is ok simply because he wants to live his life in the moment.  I felt that he was encouraging me to do the same, I guess it would make his decisions normal if everyone is doing it. He went on and repeat with a wave that he has no life insurance, no savings, no NOTHING!
"I can't live like that,  I want to save money because I want to retire early." I replied
"55?" he asked.  I said, "No, 50, I don't want to work forever." He looked at me incredulous, as if my plan is naive and unattainable and said "I'm 50."
"What happens if you get sick?" I questioned. He nonchalantly shrugged and replied " I don't know, I don't care, if it happens it happens."
At this point, I was very irked by his irresponsible way of thinking. I retort, "if you get sick and can't work, you're going to loose your house, your car,  what's going to happen to your kids?" He shrugged again and said he only has enough 2-3 payments, I wasn't sure if he meant for his cars or mortgage, neither way, it's equally disturbing.
I went on and told him that I save money because I want to make sure we have a good future, I buy life insurance because if anything were to happen to me, my daughter and husband is financially ok. I told him that just because I budget and live below my means, doesn't mean I'm depriving myself.  I carry designer purses (I'm a purse girl), I buy my daughter what ever she needs, I go out and eat when ever I want. Our conversation was cut short because we had to leave.

But that conversation occupied my thoughts for the rest of the night. My husband and I always speculated that his sister and brother in law live paycheck to paycheck. After all, 3 kids, two cars and a mortgage ain't cheap. But, what shocked me the most was his admission that this is all intentional. I did catch a glimpse of uncertainty on his face when I questioned him on the possibility of him not being able to provide for his family. Perhaps, he's awaken to the fact that his ways are not sustainable. I felt like deep down, he knows he messed up, and perhaps the reason why he hasn't made any changes is because he's not sure how.  They've continuously inflate their lifestyle as their income grew, they've gotten used to having certain luxuries. So now, not having the newest model of iPhone or driving a car he really wanted might feel like deprivation. 

In someways, I completely understand his approach to life. I, too, came from a third world country. The things we didn't have was not easily comprehend by someone who had toilets in their house that flushes. We had to go the an community outhouse to do our business. Yeeep, super gross. But, it was life, it was all we had. I believe my brother in law felt that he's come from nothing and worked hard to be where he is, he deserves a gas guzzling truck because he wants it, he deserve  to buy all his kids iPads, and his wife a designer purse. But he's completely ignoring something else he deserves, STABILITY. He and his wife make a decent living. If they would budget a little, they'll be able to save for their future or a catastrophic event. They can take care of themselves when they're not longer are able to work. They don't have to be in the mercy of the government, hoping that they're benefits won't be cut. And if they try, they can even shave a few years off of their mortgage payments. What a nice gift it is to oneself, to rid yourself if your biggest debt a few years early.  

Unlike my family, money isn't discussed openly in my husband's side of the family. What I desperately wanted my brother in law to know is that it's not too late to change. Life is about the pursue of happiness, but happiness isn't necessarily derived from your purchases. If anything happens to him, those iPads and countless amount of toys he bought the kids isn't going to pay the bills. It's his  savings and life insurance that will pay for his mortgage, food and clothing. For the sake of his children,I hope he'll change his ways and set a good example. 

What We Did With Our Tax Returns

Let me begin by saying how important it is to have a good accountant who knows her shit. It truly makes a different.  I thought, since I only have a regular 9-5:45 job, my taxes should be cookie cutter simple. Twice in a roll, my return was a measly $1000 give or take a few dollars. My husband on the other hand was getting 2x as much as me. I thought, it wouldn't hurt to give his accountant a try. Last year, we filed jointly for the first time and our return blew me away. I mean, there are several factors to be considered and I can't really compare apples to apples when we file jointly versus married but filing separately. But I do believe his accountant is more knowledgeable than mine and thus able to get us a bigger return. Mine  was someone younger than me just starting out. **No offense to all the accountant just starting out, we need you. 

This year, our return was a little higher than last year, mostly due to the birth of our daughter, I made less because I took a 2 month maternity leave and I'd increased my 401k contributions. 

Last year, with our returns, we're able to pay off a small student loan my husband had. We sold my car and used proceeds with the left over tax return to buy a newer car. It feel so good to own a car outright. 

This year, we used the money and pay off our credit cards immediately. We had higher than normal credit card balances this month because we just celebrated my daughter's first birthday. We moved and needed some furniture for our new place. And, my husband took his car in for a 105k mile tune up... that was over $1000. If you take care of your car, your car will take care of you, I guess.

We still have some money left over for my husband to pay off his car, this move would make us debt free, with the exception of my mortgages. But he rather that we use this money to add to our savings. At first, I wanted his car loan paid off, this would save us $200 per month. But then, if we don't redirect that $200 else where immediately, we're bound to find ways to spend it. We thought it would be easier to keep our finances the same and keep the money to boost our savings. 

We didn't do anything "exciting" but paying off our debt is pretty exhilarating. Having a little bit of cushion in the bank really helps us sleep better at night. 

We're Moving... Again!

We are moving again and couldn't be more excited. We've only been here  less than 3 months but it feels much much longer.  Our current place has too many walls. The owner made this section of the house into a two bedroom so they can maximize on the rent. It would have been the perfect little one bedroom.

This is the entrance to the place, it looks fine when you haven't moved your things in.  What you don't see is that there is a wall to the left making this entrance extremely narrow. The lack of counter space makes it a hassle to cook. We probably only made two meals the entire time we've been here. And the brand new oven stayed a virgin.

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To the left of the "kitchen" is this space. Don't be fooled, it's smaller than a compact parking spot. You have to be an extreme minimalist to live here. For a family of three, it just doesn't work. At $1200 (includes utilities), we thought it was a good deal considering the apartments that we looked at cost $300 more and  do not include utilities.

This is the rest of the house. On the left is the 2nd bedroom, bathroom and a deep linen shelf. At the end is the master bedroom. There is a closet to the right and a door separating from us the landlord's place.

Our new place is a one bedroom with a pretty decent size living room. There is a kitchen space much larger than our current place. But there is no oven.  However, for $820 bucks (including utilities and internet)... I'm willing to make a few sacrifices. I've already remedied this issue by buying a counter top oven. I won't be baking as much as I would like, but I won't have much time with a baby anyways. We have been blessed that my husband's mom not only takes care of our baby but she cooks for us as well. That's how we get away with not cooking.

One of my goals when we move out is to keep our expenses the same. The $1200/mo rent was really pushing some limits. We were using the rent I received from my rental to pay for childcare. When usually the rental income goes to savings. The difference we're saving on rent will really make a huge impact on  our overall budget. I'm still saving 40% of my take home income and contributing 12% with 3% match to my 401k.

But moving isn't cheap. We've already incur some expenses for the new place and we haven't even moved in yet.  We intent to make the new place more permanent so we made a few large expense to make ourselves more comfortable.
Replaced the old and dirty carpet with wood: material $300-400, labor: 200
A chaise for more seating: $145
Breville counter top over: $250
Over the toilet shelf: $30
Dinning set: $300 but will be returned and will purchase another one for $250.

New Place, New Mindset

I can't believe we moved out. It's still a bit surreal. Having only moved twice in my life prior, this is a huge change for me. I didn't move out of my parents house when I got married. There was enough room and I don't see a reason for spending 2x the money on rent and receiving no equity. At least when I pay rent at home, I know it's going toward paying off our mortgage.

During the move, I come to realized was how much crap we have. You don't notice all the stuff you've collected until you have to move it all and fit it into a smaller space. Even though I stop my extreme couponing, the things I purchase still haunts me. I can't bring myself to throw them way as they're still good products, but it will take me forever to use them all. I can't even cast it off to my family member because they too, have purchase more than they need and can no longer take my load. My brother refers to my couponing as "spending money to save money." Now, I feel like I've wasted money to save money. :(

On the bright side, it's an opportunity to change directions in my life and finally clean up the clutter. I listened to Marie Kondo's "The Life Changing Magic of Tidying Up." It was very inspiring and indeed life changing. This book isn't just about folding your clothes or getting rid of clutter, but it asks you to dig deep inside yourself to realize the life you want to live. The book encourages you to part with things from your past that's holding you back so you can move on.

I feel so much weight has been lifted now that I've gotten rid of so much stuff. Although, I'm no where near minimalism, but the things I choose to keep hold more meaning in my life. I've gotten rid of a few bags of clothes and now I'm happy to report that I'm getting rid of all these heels.


When I first got pregnant I thought  would wear them after I give birth. Now that I'm 9 months post partum, I finally realize I may never wear them again. I saved a few pumps that are appropriate for work and the occasional formal events. I was bragging to another mom that I only have about 10 pairs of shoes and she reply that she only had 3. I was blown away. I guess I still have some more work to do on downsizing.

Every time I get rid of something, I feel lighter. I breathe easier. In a world that is very much driven by consumerism, I didn't think I'd be the one who feels good owning less. I feel like I'm living a more purposeful life. I no longer am dictated by the thought of having more things will give me fulfillment. Fulfillment is a state of mind. I still enjoy buying things, but I've become more selective of what I bring home. Once you bring something home, it becomes your problem. So choose wisely :P 

My experience with ThredUP

I finally did it. I shopped second hand. I always thought the idea of wearing other people's clothes as icky. You don't know who they are and where they come from. That mystery has me thinking the worst. I eventually got over my irrational worries because there are so many people out there shopping second hand and there were no incidents reported. I think I'm safe.
My goal for 2016 was to consume less and to live a more conscious lifestyle. For anything I need, I'll try to buy second hand. Not only is this better for the environment but better for my wallet too.

ThredUP is thrift/consignment shopping for millennial. I'm so used to getting everything I need on the internet. I like how the "stores" online are open 24/7. I don't have time to go out and shop during the day. I only get some down time after I put my baby to bed at night.

I paid $85 for all 7 items and saved 74% ( according to ThredUP's calculation from the each item's original price). It's a bit inflated because I don't believe these items were purchased a full prices by the sellers.
As a Buyer:
What I love <3 <3<3
1. They carry my favorite petite friendly brands: Ann Taylor and Banana Republic.
2. New items are added every day.
3. 40% off for the first purchase up to $50. 
4. FREE RETURNS- for store credit- this is what finally led me to buy, I would hate to buy something that doesn't fit and I can't return it. 

What I don't love: 
1. There are only two views for the clothes you're purchasing- the front and the back 
2. Shipping starts at $70. It would make me happier if they lower it to $50. 
3. They don't carry anything for men, my husband was interested in buying second hand seeing how happy I was with my purchases. 
4. If you want refunds to the original form of payment, then the free shipping offer is void. 

I bought a total of 7 items and here are the 6 I'm keeping.

Everything fit me perfectly except for the blue jeans. I'm going to have them hemmed. 

This dress is so cute. It ends right at the knee; it's the perfect length. 

I like how they come neatly and tightly packed to avoid excess material. The same box is used to make returns.


This site can be addicting as they have new stuff posted everyday. To keep your budget and closet space in check, always ask "Do I need this?" "Does it make me happy?" "Will I wear this often?" "Does it match what I have in my closet?" If the answer is yes x4 then you close the site and go on about your day~didn't think I was going to say that, did you? If you still want it after a few days, then you should buy it. But what if someone else snatch it up? Oh well, you can live without it, because you've been living without it... make sense? To keep things from piling up in my closet, I got rid of 6 items that I no longer wear or is old. These items will go into the donation bin; they're still wearable, I just don't love them anymore.

Quick Tip: H&M will take your old clothes, wearable or not, and recycle them. In return, you'll get a 15% of coupon that is good for about a month.

As a Seller:
 I did not sell to their site, but I was contemplating. They will send you a bag upon request, it came rather quickly. But their condition for items received made me iffy. They don't tell you approximately how much you're going to get. I guess it's hard to tell if they haven't seen your clothes. However, they decided they're nothing taking your clothes/bags etc, they're going to donated it. If you want you unsold items back there is a hefty shipping fee about $12. I've read reviews that they pay pennies for stuff you sent in. I guess, if you want to make more money, then just have a yard sale or try other method of selling your clothes. But if you don't have the time and just wanted to get rid of your stuff, and seeing the few bucks you might get back as a bonus then this would be your place.

If you want to help a sister out and also get $10 to spent, here is my referral link to ThredUP.

February's expenses

Has it been a month already? I feel like it just flew by. February is a special month. This month, we celebrated my birthday, Lunar New Year, Valentine's Day and it's also a leap year so we get an extra day this month. Growing up, we didn't have a lot of money, and allowances were not given. I always look forward to Lunar New Year the only time I can get some spending money.
This month, we also did something really brave. WE'RE MOVING OUT! My mother in law takes care of my baby, but she lives 33 miles away. That's a 66 miles commute for my little baby everyday That's just too much, so we're moving to be closer to her. Now, I'll be commuting instead of her. Even after moving to a different office, my daily commute will be 48 miles total. I'm so not looking forward to that. But, you gotta do what you gotta do. We're also paying more in rent, now we really need to find a way to stick to a budget. 

We're using our credit card to pay for pretty much everything except gas at Costco and our shared utilities. 

FIXED
Rent	600	current, new rent will be 1200 :(. Paying rent hurts.
Life ins	253
Car note	200	I really want to pay off this car
baby care	500
SEMI FIXED
Gas	328
Groceries	248
Utilities	28
Trash	140	Paying for tenent's left over bill and I'm covering trash for the new tenet
Dinning out	64
TARGET	356	100 of that was paid giftcards
CLOTHES
Thredup	84
HEALTH
Dr copay	15
optometrist	158
SPECIAL EXPENSES
Bday cake	30
New Year	750	My parents were generous, so we pretty much even out on this one.
deposit for apt	1200
Mammoth	407	but we should be getting something back
Disney pass	1700
BABYGEAR	133	95 of that was paid with gift cards.
TOTAL	7194
subtract gift cards	195
	6999	Holy S**t this is a lot of money.

I can't believe we spent that much money in just one month. We barely bring home half of that. This goes to show when you start writing things down, little things here and there really adds up. Luckily, the money spent in SPECIAL EXPENSES are just a one time thing. Although it's a pain the butt to write everything down, I'm going to keep doing it, or try to anyways. I feel like once I see the bigger number, I'll be less incline to spend. 

**** My uncle finally paid us for the car we sold him. $4000. We're using that to pay my MIL-$500, March's $1200 rent, $2000 will be used to pay off some of the car loan, and $800 will go toward the credit card bill.  

March isn't going to be a lean month neither. We're moving into our new places and it's going to incur some expenses.