A dream yard, by Sunset

One of the challenges my husband and I face when looking at our budget to buy a house is the “fixer-upper” status of the homes in our price range. Our price range is based between a 2.5 to 3 times our income calculation that puts us in the ranges of $250,000 to $300,000 comfortably. Living in Southern California, this price range will get us a smallish-sized fixer upper in an okay neighborhood. With that said, viewing homes within this price range is very discouraging. Imagining them “fixed up” is difficult, if not impossible since we’ve never owned our own home. One place where I acquire some terrific ideas is Sunset Magazine. A lot of my ideas come from here, and they aren’t a sponsored link or anything, I swear!

Here are just a few examples of fabulous fixer-upper ideas:

• Losing the lawn. I’ve written a post about this before and Sunset Magazine has a variety of ideas on what to plant instead of a lawn to minimize water usage. They also show the difference between a boring green expanse of lawn and a colorful variety of textures and heights using drought tolerant plants.
• What to do once you’ve lost that lawn. In the Phoenix -metro area of Arizona, many homes have replaced their lawns with gravel. Not a luscious landscape to gaze upon. Sunset Magazine shows what you can do instead of just throwing down the gravel. Mix it up a bit with large pavers and drought tolerant plants.
• Extending the porch. I’m lucky to live in a temperate climate. Most of the year I can hang outdoors on my patio and enjoy a brewsky. Sunset shows how to take a small porch and turn it into living space incorporating a living area and outdoor fireplace.
• Teeny -Tiny lawn ideas. There is always the possibility of my husband and I purchasing a tiny home on a tiny piece of property. Expanding the overhang of a porch, adding the right plants in the right place can make a small yard seem like a haven.
• Private front lawns. We have been having a problem lately with a particular neighbor coming over almost everyday. We are just too nice to tell him to get lost. Sometimes, making your front lawn unapproachable is the best option. Sunset has creative ideas for that as well, like adding multiple walls covered in foliage making the home less approachable by strangers.
• Deep-set lawns. A huge yard is great, but if you’re not sure what to do with all that space it can be problematic. Creatively using the space wisely is important, some ideas include adding overhangs, patio areas, and garden areas to make it a functional yard like the photo in this post.

These are just a few ideas I gleaned from their before and after yard make-overs.  Here is the link to their entire slide show. Of course, purchasing a fixer-upper and turning it into a gem takes a lot of hard work and elbow grease,…..oh yeah, and money. Yet, these inspiring photos make me think twice about the whole “fixer upper” aspect of purchasing a home.

Have you turned a house into a home? How long did it take you to create your “dream home”? Did you have to refinance or take out a HELOC to do it? What advice would you give someone thinking of purchasing a “fixer upper”?

Cut up those credit cards?

One of my goals for this year, that I have partly accomplished, is raising my credit score. I need to get my score above 740, at minimum, so that when I apply for a mortgage loan, I’ll be able to get the best rate. I still need to raise my score about 40 points (this is an average as all 3 credit bureaus are reporting slightly different scores). One thing I’ve learned about improving my credit score, is keeping my debt to credit ratio low. Since I’ve paid off all of my credit cards, I’m looking pretty good here. However, another factor that affects a credit score is how much total credit banks are willing to loan you. Since I’ve been on a mission to improve my poor credit history, I haven’t had much credit extended to me these past few years leaving me with very low credit limits.

So, here is my dilemma: I have two credit cards with low credit limits that are charging me monthly fees and/or annual fees (totaling approx. $155 for the year) . I don’t use these cards at all anymore. However, there is a catch with these two cards: they were originally a way to pay off old collection debt. These cards were offered to me about 6 years ago to pay off two other credit cards that had gone into collections. Once I paid the old debt off in full, they extended a limited amount of credit to me. I’m now thinking of canceling these two credit cards now that they are paid in full, but then my overall total available credit limit will be reduced by almost $1,000. How will this affect my credit score? Will it ding my score by a few points? Since I’m hoping to apply for a mortgage loan with in the next year or so, I’m trying very hard to keep the activity on my credit report to a minimum.

After doing some research, canceling my two credit cards would probably affect my credit score a little bit. By how much, I don’t know exactly. I have two options; A.) I cancel these cards and save $155 annually, with the potential of losing a few points off my credit score, or B.) I keep these cards until I am able to purchase a home.  That could be up to 18 – 24 months meaning I would have to spend up to $310 on fees, but I’d be saving my credit score.

For now, I think I will keep the cards. If purchasing a house becomes ever more elusive and my time frame extends to more than 24 months, I might just go ahead and cancel these two cards. I do know that when I obtain that mortgage loan, these two cards are getting the ax!

What do you think? Would canceling these cards now be beneficial? Am I making the right choice by keeping these cards a little longer?

The Yakezie Badge

The Yakezie Group and the Alexa Challenge is going strong. Now with so many blogs involved in this challenge with the idea of networking to build up our readership and promote well-written personal finance blogs, I want to send a thanks to those carnivals and blogs that included one of my posts.

• Fiscal Geek: Thanks for including my Rainwater Collection Ideas post.
• Consumer Boomer: Also included my Rainwater Collection Ideas post.
• Beating Broker: Visitors really liked my Rainwater Collection Ideas post! Here it is again.
• Planting Dollars: Finally a different post shared, The Young and the Homeless. Thanks, Ryan!
• Out of Debt Again: Thanks for listing The Young and the Homeless post.
• Start Tags: I’m not really sure if this is a blog or not.  I think it is a link aggregator or RSS feed, but thanks for mentioning my Rainwater Collection Ideas.

Enjoy your Sunday!

Last month I drove from California to Arizona on the not-so-lovely, desolate 10 highway. As my husband and I stopped at truck stops to fill up or grab a snack, we noticed a strange phenomenon. Something we’d really never seen before in all our years of driving to and from Arizona, and it bothered me: young, homeless people. And when I mean young, I’m talking barely 20.

Our first young and homeless (or urban nomad) sighting was near Palm Springs right off a highway exit; a very young, beautiful woman with dirty blond dreads holding a “Hungry, need help” sign. She looked about 20 years old. My first reaction was that she was a run-away.  Young, homeless people aren’t that uncommon in a place like Venice, CA which is not that far from where I live. Yet seeing one so far east off the 10 freeway through me off guard. Unfortunately, we didn’t stop to help. I felt horrible about that once we were back on the highway.

As we continued our journey eastward, crossing the Arizona State Border, I noticed a young man walking in the middle of absolutely no where. He was on the other side of a barbed wire fence in the middle of the Sonoran Desert, a large duffel bag slung over his shoulder walking as if he was on a mission. As he was walking in the opposite direction that I was driving, I thought his presence was peculiar to say the least. We were at least 20 to 30 miles from a town or a truck stop. This downward gazing, beanie wearing young man obviously wasn’t hitch-hiking since he wasn’t close enough to the road. The man’s presence in the middle of sparse desert was eerie in some ways. I can’t say for sure he was homeless, he wasn’t begging or trying to hitch a ride. He also didn’t hold a sign that stated his situation. His duffel bag was really my only clue to his possible predicament. But the fact that this was the second young person within a few hundred miles who seemed alone left me thinking about the state of our economy and how tough it must be for young people these days.

Again, I didn’t stop to help. I was zooming down the highway at 75 MPH (this speed is legal in Arizona on sections of the 10, I swear). These images keep popping up in my mind over and over again. Reading articles in Time Magazine and MSN.com about how difficult it is for teenagers and young people to get a “first” job these days only confirms that there are more young, homeless people today than in the past. Not because of mental illness or drugs, but because our economy is shrinking. There are so many skilled, experienced workers to choose from, young, inexperienced job seekers must be having a heck of a time convincing a manager to hire them.

What will this eventually do to this generation of young people? Will they be late bloomers in some ways because they nabbed their first job in their mid- to late-20’s instead of getting an early start in their teens or early 20’s? Will they forever be behind the 8-ball and financially doomed? Will these two young, urban nomads eventually find jobs, reconnect with their families, get help? These questions continue to haunt me.

On a similar – yet different – note, I found an intelligently written blog about a woman raising four kids in an RV. She is currently unemployed and struggling to make ends meat. However, her blog is witty, inspiring, and coming from a totally different perspective. Check out The Box Car Kids.

I'm burning my candle at both ends this week.

I’m posting this mid-week because 1.) I didn’t post any round-ups this past weekend, and 2.) I’m really behind on some projects…crap!  Some terrific articles have been written on various Yakezie member sites that I’d like to share, instead of banging out an article of my own. Enjoy!

• Sweating the Big Stuff and How to Raise Your Credit Limit (This also touches upon hard inquiries and soft inquiries)
• Young and Thrify and What’s Your Latte Factor? Of course I had to read this one! I love my Starbucks. However, it does make me think about spending my $2.50 daily. It sure adds up!
• Ultimate Money Blog is running a whole series on state economies. I love statistics! This one is about Alaska. So who wants to live near Sarah Palin?
• Rainy Day Saver changed the look of her blog too. I like it! Check it out. (P.S. I’m still working on mine )
• My Money Minute and Wine on a Budget. I personally am more of a beer drinker, but who doesn’t love wine? Okay, me. But most people like it.
• Monevator plays devil’s advocate on Wasting Money on Memories. Yet, the conclusion is well done.

Since I’m burning the candle at both ends this week (to use a figure of speech), I will make a point to post something meaty in the next day or so. Please hang in there,  I’m just juggling too many jobs right now. (That’s a good thing, though. Right?  )

Wells Fargo ATM

Until recently, when I would deposit checks into an ATM, it would take about 2 business days or longer for them to clear the bank. Since Wells Fargo has introduced the “No Envelope” deposit method at the ATM, they now post that day if deposited before 8 PM. What a convenience! Here’s what’s different, there are no deposit envelopes to use and fill out anymore. In the past, a bank teller would have to pull out the envelopes and manually enter them as deposits into your account. Now, I deposit the checks directly into the slot (up to 8 checks can go at once, I think) and the ATM scans the routing and account numbers at the bottom of the checks. The ATM asks for confirmation of the amounts of each check and total amount.  Those funds are available the same business day, as if you went into the branch itself and deposited them.

The new method decreases the likelihood of human error, and it also reduces the amount of check scamming. With the envelope, people could deposit toilet paper and withdraw money they really didn’t have. This wasn’t caught until a human opened up the envelope and realized the scam. Now, the ATM visually sees the check numbers and can credit your account that day. If you feel uneasy about depositing checks sans-envelope, you have the option to print a receipt with copies of the checks you deposited. This is very helpful if you enter individual deposits into your check register or Quickbooks program.  I admit that I love this new method.

However, this means that if you are writing checks, you need to make sure the funds are available in your account. Something most of us do, but now it is crucial. I’m sure that Wells Fargo isn’t the only bank electronically scanning checks and crediting funds immediately. If you write a check, you had better make sure those funds are there!

Here’ an overview of the new check scanning ATM:

• Saves you the time of filling out an envelope and adding checks manually. The ATM will automatically add the amounts for you, you just need to confirm the amount.
• Checks are credited that day, just as if you went into the branch. What a time saver!
• A receipt with copies of the checks is available for your records. Just like you receive a deposit receipt from a bank teller, the ATM can not only print a receipt, but also print one with the check copies in case you are uncomfortable with this new method.
• You can also deposit cash directly into the ATM and print a receipt with a copy of the bills you deposited. I’ve always been wary about depositing cash, but because the receipt prints the bills, I feel more comfortable now.

Do you use the ATM to deposit checks? What about depositing cash? Is your bank offering this type of ATM service? Would you use it if they did?

My blog is a work in progress….as you can see! I’ve just updated the header with a more personalized one. What do you think? Is it too ….. I don’t know……. girly? Does it fit my topic of personal finance / future home buyer / bicycle riding hippie chick? I don’t necessarily consider myself a hippie chick, but I wonder if this is going too much in that direction. I like the color scheme and I’m pleased with the header. Would love feedback!

Maybe I need to add dollar bills in place of white flowers? Any suggestions welcome.

Rain Barrel Harvesting (Photo by Sunset Magazine)

I’ve been researching some ways to “green” up an existing home, in case we end up purchasing a “fixer-upper”. Some of these ideas are less inexpensive, like losing the lawn and planting drought-tolerant plants in a semi-arid region, others are more expensive like installing solar panels and running a portion of your household energy off of it, then reselling the excess to your utility company (a sweet deal!). But an idea I researched a while back, and the recent rain storm made me recall this idea, is rain collection in arid and semi-arid areas. Indulging my continued curiosity, I further investigated this idea through Sunset Magazine, I love the photos in this mag. They had some inspiring, and unusual, ideas for collecting rain. However, before I begin describing some methods, let me explain a few laws about rain water collection that I didn’t know existed:

• Colorado: If you live in Colorado, the rain that falls from the sky is not yours to keep! Did you know that? Because many of their streams feed into rivers that deliver water to other states, all rain water is supposed to end up in the streams. So rain water harvesting (I like this word) in this state is out for now. (source: Wikipedia)
• Utah and Washington: You may harvest rain water only if you own the rights to your ground water. So if you are using well water, you may then collect your rain water. I’ve read on other sites that this law is not enforced, so you could probably get away with collecting it on the down low. (source: Wikipedia)
• New Mexico: In contrast to neighboring Colorado, some areas require rain water collection on new dwellings. What a terrific idea! Most likely, this is due to their desert-like region. (source: Wikipedia)
• Arizona: Due to their desert topography, homeowners can receive a tax credit for capturing and recycling rainwater. (source: Sunset Magazine)

Other states and regions may have laws regulating stagnant water and collection techniques, so if you’re unsure, you may want to check with your city.

Now on to some rain water collection methods (all require containment or lids to avoid open, stagnant water):

• Rain (whiskey) barrel collection: With a little work, and a gutter system, you position your rain or whiskey barrel at a point where your gutters drain, usually at a corner of your house or structure. Affixing a hose or pipe from your gutter to the rain barrel, the rain collects into the barrel. They can hold about 50-60 gallons. A spiget towards the bottom of the barrel makes it easy to use the rain water.
• Rain Chain: This is a beautiful way to collect rain. The rain drips down from small bowl to small bowl, then eventually ends up in a catchment of some kind. It can fall into a creek or rock covered area of your lawn. Beneath the rock area would be a tank that holds the water until you need to use it.
• Cistern: Using a gutter system, cisterns can hold hundreds to thousands of gallons of rain water. It’s a more complex system, but if you have a huge yard or garden, this might be a feasible option.

Here are a few links I came across that describe in detail how to build a rain water harvesting system (and sell the supplies you would need to start this process!):

• A beautiful way to catch rain water.
• A huge assortment of whiskey barrels.
• How to collect rain water. Treehugger also has additional links at the bottom of this article on how to store it as well.

How many of you reuse your rain water? How do you collect it? Have you thought about installing a system recently? What if you live in an apartment, can you find a way to use rain water to water your house plants?

I wanted to thank Eliminate the Muda for posting links to the Yakezie badge! Thanks again for your efforts, they are greatly appreciated.

The Cap Light - Our passive income generator!

For years my husband has been on a mission to make money while we sleep, or figure out a way to make passive income. The beauty of this plan is simple: work more upfront, profit more later on and in the off hours. His plan is finally coming to fruition 11 years later. We’ve tried many side businesses on top of his web and graphic design business (our primary income) to get to this point. Some businesses include:

• Hot dog stand – Ended up being way more work than we thought, little profit. We quit 6 weeks into it. This wasn’t really passive income, since we were up at dawn brewing coffee, handing out danishes, and freezing on the street corner!
• Photography business -This just evolved into our successful graphic and web design business. I guess I can’t really count this as a side business or passive income either.
• Child ID Kits – My husband originally thought ID Kits would be the idea that would make us money while we sleep. It didn’t really catch on.
• FROG – Three years ago my husband had a brilliant idea (before the iPhone had launched), create a mobile portal for smart phones making accessing the internet a breeze. FROG is still going strong, but isn’t generating any income. We are still working on this one, I’m sure someday we’ll figure it out. For now it is passively working (over 10,000 active users) and adding new users daily. If anyone thinks they can help with FROG, please let me know!

Well, we finally hit one idea that is making money without a lot of work: The Cap Light. My husband’s goal this year was to begin networking with small businesses that he took an interest in. He could help design their website and marketing materials for a percentage of their sales. Now with the marketing in place, the orders are rolling in. My husband makes a small profit off each sale without much work on his end. Many of the ads came out this week in a few different travel and RV publications helping create most of the orders. As goofy as this product seemed in the beginning, it is a huge hit with campers, RV travelers, and just about anyone who needs a third hand to hold a flashlight.

We are working on another passive income generator that is a more lucrative business idea with a company that produces dependent eligibility audit software. In exchange for building their new website, we will profit 10% on every online or web sale. Since their product ranges from $8,000 on up, our profits could become very lucrative. With the success of The Cap Light this week, we can only hope that this next venture will also make us money while we sleep.

Ya’ gotta love that passive income! My 2010 motto: Work smarter, not harder.

What experiences have you had with passive income? Have you tried different business ideas to help generate additional income? Do you currently have a successful passive income generator you could share with us?