October 26, 2008 at 7:11 pm
Since leaving my last company job in mid-September to work for myself, I’ve been contacted by search marketing companies on both coasts wanting to know if I’d consider relocating the family and coming to work for them. In one case, I had to think about it a bit; in another case, it was a quick, “thanks, very flattered, but not interested” reply.
The reason? Money. Not salary, but cost of living. It’s one of the main reasons we enjoy living here. Cari wrote a few months ago on her blog about surveys showing that Tri-Cities is the least expensive place to live in Washington … and, as I remember my time in 2006-07 when I lived half of each month over in Seattle, it’s true.
This past week, a similar survey came out reinforcing this idea: the cost of living in the Tri-Cities is about 36% lower than Seattle, and about 11% less than the national average.
Fact is, our dollar goes further here … and that’s why we’re not going anywhere anytime soon.
August 6, 2008 at 11:11 pm
I don’t remember learning much about money as a kid. But I remember having it, because my dad started me working around the house and at his office building at around 10-11 years old. He paid me pretty well, and I spent it pretty well. Well, for a little while I did; when I decided I wanted to go to the prestigious, all-boys, private, Catholic high school — the one with a $2,000+ annual tuition — that’s when I learned to save money.
At Casa McGee, we’re not waiting for our son or daughter to tell us they want to go to some private school to start teaching them about money. It began tonight:
We’re using Dave Ramsey’s “Financial Peace Jr.” system, which basically works like this:
- The child has a list of jobs to do each week. Rather than “giving an allowance”, you’re paying the child for the work done. Just like real life, if you don’t work, you don’t get paid.
- If the child doesn’t do a certain job, does it poorly, or does something else s/he’s not allowed to do, the child gets “fined” and receives less money at the end of the week.
- The money earned gets divided into three categories: GIVE, SAVE, and SPEND. We’ve decided that our kids have to put 20% of their salary in the GIVE envelope, and 40% each in the SAVE and SPEND envelopes.
- The child can use the SPEND money, and some of the SAVE money, to purchase a desired item or experience. There’s a chart where s/he lists what the item is, how much it costs, how much s/he’ll put away each week toward the purchase, and how long it should take to have enough money.
I think this’ll be good. I’m hoping they learn financial discipline; the value of work; that money isn’t just for spending; that giving to the less fortunate is important; and that good money management has rewards.
The kids are excited. I think that’s half the battle right there.
July 27, 2008 at 10:51 pm
Mrs. McGee and I are doing our best to get rid of all credit cards in our possession. Unfortunately, it’s slow going because we did some pretty stupid things in our 16+ years of wedded bliss. But we’re making progress, and we’ll eventually get there. Everything will be purchased with cash or debit cards, with (I assume) the exception of homes.
Why?
Because we agree with this sentiment:
2008 Consumer Action Credit Card Survey Declares Credit Cards ‘Really !@$% Evil!’
Amen.
March 13, 2008 at 12:21 am
First things first: I hate credit cards. I’m as guilty as anyone of being fiscally irresponsible with them in the past, but I also think a special circle of hell should be reserved for credit card companies. In the past year, the McGees have paid off and cancelled 6-7 credit cards, and we still have some to go. There will be a colossal party (paid with cash) when we finally pay off and cancel the last one. It’ll be so loud, you’ll hear us … no matter where you are.
Since we still have some credit cards, I decided a couple months ago to call each one to request a lower interest rate. It worked awfully well. I believe we’re paying, on the whole, somewhere around $90/month less simply due to lower interest rates. Doesn’t sound like much, but who wouldn’t take an extra $1,000/year if the only requirement was to make a few phone calls to Satan’s helpers?
On The Consumerist today, they shared a sample call script for making such a phone call:
“I think I’ve been a good customer. I’d like to stay with you, but I really want you to lower the rate on my card. Can you help me?”
Simple, but effective. It’s similar to mine, although I took a more drawn out approach and actually got the credit card employee to agree I was a great customer before agreeing to lower our interest rates. Here’s how the conversations typically went:
Me: Hi, my name’s Matt McGee. Do you have my account information in front of you? (Several times I had to punch my account number into the phone before reaching a human, but if not, I’d give my account number at this time.)
Them: Yes, I do.
Me: Great. You’re going to help me with a few questions and then I have a request after that.
Them: Okay. How can I help you?
Me: How long have I been a customer? When was this account opened?
Them: 1990 … 1994 … (or whenever).
Me: Great. And according to your records, have we ever missed a payment?
Them: No. No missed payments. You have a perfect payment record.
Me: Cool. Thanks. So, we’re longtime customers with an outstanding balance and we’ve never missed a payment. Would you agree that makes us a great customer?
Them: Yes, you’ve been an excellent customer. (One person even shared with me that, according to their private, internal rating system, we were in the top class of customers.)
Me: Thank you. Now here’s why I’m calling: We keep getting mail from your competitors offering really low interest rates on balance transfers, usually for the lifetime of the outstanding balance. They’re offering rates that are way below the XX% (I gave them the exact rate here to show I’d done the research) you’re charging me. So, since we’re such good customers, I’d like you to match the rate they’re offering me. Can you do that?
etc……
Admittedly, they were never able to match the 3.9% rates that others were offering me, but they were able to come close enough that it wasn’t worth the hassle of switching. (Plus, regular shifting of balances from one card to the next is supposedly a black mark on your credit rating.) And now we’re saving about $1k/year on interest. I’ll take that anytime.
(photo: Michael Brenton)
