The other day, I began to notice a discarded pallet on the side of the road that must have been waiting for weeks to be picked up by the garbage trucks. We had had an ice storm back in early December and the debris from this storm was still sitting in piles everywhere. Which is where I spied my little treasure…. and oh the ideas that came to mind with all that repurposed wood.
National Severe Weather Preparedness Week is April 22 to April 28
Tornado Season has officially begun in Texas with the touchdown of more than 15 tornadoes in Dallas in the early part of this month. It was the worst day ever, having the kids at school when the sirens went off and false reports of touchdowns nearby. We survived that awful day, but soon enough, North Texas will transition into Wild Fire Season and Flash Flood Season. Are you prepared for a disaster?
Imagine worst case where you have to leave your home immediately or take cover in a closet or basement. Do you know what information you would need to have on hand after you emerge into the aftermath? Who will you call? Does your insurance over this? Does your child need a tetanus shot?
Whenever there is impending doom, I grab my “Important Information” binder, my Portable Safe and my Portable Hard-Drive …. along with the kids, the car keys, the dogs and their leashes. The first three items contain the workings of my life and if I lost every other material thing, then I have the tools to pick up the pieces for me and my kids.
STEP 1: Important Information Binder
This binder pulls together key information needed to make contact and be answer questions about your family, your insurance, your health. This binder can contain:
- A list of Emergency Contacts which include the closest members of your family and their home and cellphone numbers. It should also contain the numbers for your doctors, dentist, eye doctor, plumber, lawn service, utilities companies and alarm service. (What if you lose your cellphone?!?)
- Current Car Insurance policy
- Current Home Owners insurance policy
- Kids current shot records
- Dogs Rabies Certifications
- Life Insurance Policies
My binder is full of sheet protectors that I can just drop things into it as I think of stuff I may want to have with me.
It isn’t unusual for me to reference that binder in just doing day-to-day stuff and my mom knows where it is in case I become seriously ill or when I occasionally travel. So, I also include:
- Authorization for her to treat my kids
- Health Insurance Cards
- Current Pictures of my kids and pets (in case they go missing)
- Care and Feeding instructions for my Pet Sitter
- The Kids Routines and Schedules for when I have to travel without them.
STEP 2: Personal Safe or Safe Deposit Box
- Birth Certificates
- Vehicle and Home Titles
- SS Cards
- Your Will
- A copy of your identification card/driver license
- A copy of your Credit Cards front and back
- A Password/Combination Log of your email, online, website accounts
- A book of checks/or emergency cash
STEP 3: Portable Hard Drive/Remote Backup
Personally, I like to keep all my digital photos, and I have a zillion of them, on a 1 terabit portable hard drive which I grab when I need to take cover. If I lose every photo album in a fire, flood or storm, then I still have these valuable keepsakes.
I also keep an online remote backup of my PC Hard Drive with a service called Carbonite. For $69 a year, my home computer is constantly backed up and I can retrieve my documents from any internet-connected PC or from an App on my iPhone. This also gives me protection should my hard drive crash from a hacker, a virus or a power surge. Or sometimes, it’s been known to just crash randomly. This gives me incredible peace of mind that my data won’t disappear in a flash.
Check out this link that compares remote backup services.
This is just a small portion of what you will need in the aftermath of an emergency. There are many, many website that can provide further information on how to prepare for an emergency, such as preparing food rations, evacuation plans, and disaster kits. All these are very important to a well-rounded Disaster Preparedness Plan.
Check out these websites for more information:
If your area is prone to hurricanes and/or earthquakes, there are specific websites for preparedness for your situation:
Some of these lists can be incredibly thorough, so review them and take away what you need and can easily manage.
Peace of Mind
A plan and having information at your fingertips can give you peace of mind. Sharing this plan with your kids and extended family can give you all confidence that “in case of emergency”, you will know what to do, where to go, and how to kick start your life again.
Now, get started and here’s hoping you never have to use your plan!
- Book Review: Survival Mom (examiner.com)
- This is not a test: Disaster Preparedness in 6 Steps (cmcacorner.com)
A few weeks ago, I realized that this coming May will signify 5 years since I started this Single Mom gig. I am shocked how fast this time has passed and it started me thinking back to the beginning ….. and our first adventure as a threesome!
I have such great memories of camping when I was a kid. We camped with other families, so there were plenty of us kids running free through the woods, the streams, the campsites. Our days were filled with exploration and fishing and swimming; Our nights were filled with roasting marshmallows and singing songs around the campfire with my Daddy and my Mom strumming guitars.
Those adventures ended when my parents separated.
I wanted my kids to have these kinds of memories, too, but instead of ending with a marriage, our adventures began at the end. Are you following this?
Knowing that their dad was moving out as soon as his new place was ready, I was looking for something they could be excited about post-D Day.
I cannot remember what my inspiration was, but I knew without a “certain someone” to nix all my grand plans, the possibilities were endless. I found a place that rented popup campers and booked a weekend in May along with a recommendation to a local lakeside campground. I also had to borrow a truck to haul the camper and who in Texas doesn’t have a truck, except me.
My mom got so excited about my plans, that she booked a camper for her and my step-dad and they joined us for the weekend.
So Friday after work, we headed to the local campsite and me and kids figured out how to set up a pop-up camper. Success!!!
We built our very own, no lighter-fluid used, camp fire and roasted hot dogs for our dinner.
We slept comfortably and I even figured out how to make a bacon and egg breakfast in that tiny little kitchen.
We took long walks to the bathrooms and had a great time checking out the amenities.
We fished with leftover hotdogs and didn’t catch a thing. The kids rode bikes and I took pictures of stuff.
We celebrated my Step Dad’s birthday, and roasted marshmallows and made S’mores.
We grilled burgers and did fun things with my camera and their little camping lanterns.
We fished some more and watched the ducks and my son accidentally threw his sister’s fishing rod into the lake trying to master his casting.
And on Sunday, we brought our first “Threesome” adventure to a close and packed up and went home.
And so began our love affair with camping……
And 6 months later, Santa (Mom) surprised the kids with our very own (used) PopUp camper!
But not before my parents ran out and bought this…..
and we became a camping family once again.
Yep, the guy with the cap and cigarette is the same little boy from the picture at the beginning…..
Tomorrow, April 17th, is tax day for 2012 and for those of us who have not completed our taxes yet, here are a few tips to help you get it together.
Get it Together
Being slightly ADD, I find that having all my information in one place as I sit down to do my taxes will keep me from getting distracted. Otherwise, as I run around the house looking for information, I can certainly stumble across other things that require my immediate attention.
A list of these items also helps keep me focused. So, grab a manilla file folder and on the outside, make the following list (only the items that apply):
W-2 (Job 1)
W-2 (Job 2)
1099-G (Certain Government Payments) i.e. Unemployment
1099-Int (Bank 1)
1099-Int (Bank 2)
Form 1098 (Mortgage 1)
Form 1098-E (Student Loan Interest Paid)
Child Care Credits:
Print out of payments to Daycare/Childcare
Monetary Donation Receipts
List of Goodwill/Salvation Army drop-off/pickup with Fair Market Values)
Form 5498 (IRA Contributions)
Form 1099-R (Investment Payouts)
Receipts (if taking deductions)
Form 1099-SA (Distributions from an HS, Archer MSA, or Medicare Advantage MSA)
This is not an inclusive list. Since most people don’t have very complicated situations, this should cover most situations. If you have a business, I recommend a separate folder for those items. Heck, I recommend a Tax Consultant.
With the items listed on the outside of the folder, start collecting this information and putting it into the folder and checking them off. A series of check marks can be very satisfying.
Where to Find it
W-2’s should have been mailed to you by your employer postmarked by January 31st of the year. Many employers utilize payroll management companies that allow on-line views and prints of checks and W-2.
1099-G will be sent by the local government agency and can also be viewed on-line via the payment history.
1099-Int (Interest Earned Income) should be mailed from the banking institution and is also available though their online banking portal.
Form 1098 (Mortgage Interest Paid). If Property Taxes are escrow-ed and paid by the mortgage company, this information should also be on the Form 1098 that will be mailed by the Mortgage company. If payments can be made online, then this information should also be on their online portal.
For Child Care Credit, a printout of the money received by the Day Care Provider will be needed with the full name, address and tax Id noted. In my experience, the Day Care will only provide this information upon request. This is a very important tax credit for anyone that is paying daycare.
Donation receipts should include gifts of money made to churches and other charitable organizations. Remember that if you receive anything of value in return for your donation, then only the portion that is given above the value of the goods or service is tax deductible. Ask the organization for the fair market value of goods or service you received and deduct it from the amount you donated. Always get a receipt to support your donation.
Other donations include goods provided to organizations, such as Goodwill or the Salvation Army. Be sure to keep good records and utilize a Thrift Store value of the items you donate. And if the total of all your goods contributed values at more than $500, you have to file IRS Form 8283 with your tax return.
Here is a link to the Salvation Army Donation Value Guide to help you find a value for each item that you donate.
These can be both Income and Deductions. If you are putting money into pre-tax and even some post-tax investments, you can receive certain deductions. Discuss these with your Tax Consultant. If you are taking payouts or cashing-out your investments, then these are considered income and can be taxable or even carry penalties if you pay/cash out before you are qualified to do so. Check with your Financial Adviser or your Tax Consultant. If you have complicated investments, I recommend both a Financial Adviser and a Tax Consultant. A Financial Adviser should not be giving you tax advice.
I thought this was a great article on Investment Deductions. I was surprised by a few items on this list. Specifically, writing a check for the maintenance fees for my retirement account, rather than having it deducted from the account, allows me to deduct those fees. I may have to try that.
HSA (Heath Savings Account) are offered by some employers in conjunction with a high-deductible insurance plan. This account allows you to save pre-tax dollars to spend on your medical bills and deductibles (much like a Flexible Spending Account but you don’t forfeit your unspent money at the end of the year). It also allows you to save long term (year after year) and use the money in future years when you have a medical need. Disbursements are reported to the IRS with the Form 1099-SA and are not taxable as long as the disbursements are for medical services and goods.
Check out this page for all the benefits, qualifications and contribution limits of an HSA account.
Now that you have it all together, plugging your information into a Tax software or visiting a Tax Prep Service or dropping off with your Tax Consultant will be much easier and allow the forms preparation to go much faster.
Get Ready for Next Year
Do you really want to go through this craziness again? I didn’t think so. Right this minute, pull out another manilla (or whichever color you prefer) file folder and mark it 2012 Income Tax and put it with your other files. The next time you receive a tax document in the mail, make a drop at Goodwill, print off a receipt for a donation or a business expenditure, drop that document right into the file folder. Viola!
Are You Getting a Refund?
I really don’t want to know if you are getting a refund. Rather, ask yourself if you would rather have that money in your paycheck each month or let the government have it (interest-free) for almost a year. Some people enjoy the surprise of a refund come Spring but wouldn’t you rather have that money working for you rather than just waiting for you.
What if you took that extra money each month and put it into an interest-bearing account? You would have more money next Spring than what the government would offer you. If you want to take charge of that money, then you may want to revisit your W-4 and modify your exemptions.
This link from the IRS will help you determine the correct number of exemptions for a new W-4. After changing your exceptions and submitting it to your payroll department, remember to check your paychecks to be sure you are “on-track” to paying the same amount of taxes you paid last year (assuming all income and deductions are the same). You can change your W-4 as many times are you want, so feel free to make adjustments as needed to ensure that you are paying your fair share and no more. Otherwise, you may find yourself facing a tax bill, rather than a refund next year.
Hope this information helps you get on the ball and get your taxes done and off your plate. After all, there are more exciting things you need to be doing.
Happy Tax Day!
Funny how time can get away from a blogger….. Spring has increased this family’s social and recreational obligations. We have soccer, volleyball, birthday parties, baby shower, school field trips and even a pool party (yes, an outdoor pool party in April in Texas) ……
I did manage to get a little project done on my Home Office Makeover, which is my effort to make my Home Office more warm and inviting, even a bit feminine. The promise of Spring was my inspiration.
It doesn’t come naturally to me to design and decorate, so this makeover won’t be a “30 minutes and it’s done” makeover like on the HGTV channel. So, I actually started this little project and then got stuck, as it didn’t have the punch that I wanted it to have. Sometimes, I just to have to let thing percolate and then inspiration will hit me.
It started with this…..
Ugly binders that I have been collecting from various sources (old jobs, old school supplies) that contain all my paperwork.
With all the decorative touches I have added to the Home Office, these were still quite an eye-sore.
First, I went browsing to see if I could replace these binders with something more uniform, like a set of the same color binders, or at the very least, some of those beautifully decorative binders. As I wasn’t prepared to spend upwards to $30 to replace my existing collection, I had to come up with ideas to make the ones I have look better. So, I went back to the percolator (my left brain).
I really liked the idea of having binders with a decorative patterns, so I turned to my stash of fabric.
and I got out the pinking sheers and the spray glue and I came up with this.
Which I thought was pretty dang cool, except that I didn’t know which binder was which.
I considered adding the Dymo label to the pretty fabric, but it would just take something pretty and make it look “industrial” again. So, I put my pretty binders on a shelf and went back to the percolator.
A few weeks passed and it was driving me crazy that I didn’t know what was in my binders!!!! I tried the Dymo Label Maker again. Still hated it!
And then an idea bloomed. I could make pretty labels, with an beautiful font using my very own printer. Using MS Word and the WordArt functionality, I was able to create a vertical Title with the Candy Round BTN Font.
And with some scrapbook paper to add dimension, I came up with this …..
On a few of them I used fabric and on some I used pretty scrapbooking paper. Still a work in progress to harmonize all the items on my office shelves, but I really liked the way they turned out.
As for the horrible blue binder….
I gave it a couple of coats of “Ivory Silk” spray paint
And where the front and back film was separating from the side, I used a bit of trim and hot glue to hold it all together ….
and it’s ready to be back on the shelf with it’s pretty sisters.
Hot Glue Gun
$0 – used what I already had
Home Office Makeover Update:
I have a plan for this little corner of my home office.
I plan on returning this hunk-of-wall-damaging-swivel easy chair to the Living Room, where it belongs. I am currently building two slipper chairs that will fill this space with a nice little drum light hanging from the ceiling. It’s going to be a great place for my daughter to sit and chat with me while I work and get a start on her homework, like she does now, but without swiveling into the wall with the big easy chair. It will also have better lighting. So, stay tuned for my first attempt at upholstering.
In my last post, I listed out my Spring “To Do” list for my yard and getting my garden ready for the spring/summer growing season is next on my list. After careful consideration, I decided you would not be interested in seeing pictures of me weeding and hoeing and cursing.
However!!!! I thought you might be interested in how I built my raised garden. With the sharp increases in gas prices and subsequently, the increase cost of produce and other goods, I thought I might be able to shave some dollars off my grocery bill with growing a few essentials of my very own.
The Benefits of a Raised Vegetable Garden
The benefits of having a raised vegetable garden includes being able to overcome bad soil much easier than tilling and amending your current soil. Instead, you just fill your beds with quality soil products. Other benefits include being easier on your back, easier to keep weeds and grasses out of your beds, and an earlier growing season as the soil in raised beds will warm faster and sooner.
After some internet research, I found these plans that help me figure out the basics of garden box building. Really, sometimes things aren’t as easy as they look in pictures (click pictures to access links):
And this one:
I decided that I wanted to make two narrow boxes. I made the boxes 4 feet across (allowing for a 2 foot reach from each side of the box) and 10 feet long to allow for ample room for lots of tomato plants and some watermelon vines, among other things. I recommend first making your list of veggies you want to grow and determining how much space is needed to accommodate your garden.
Be sure to use rot-resistant wood such as cedar or redwood. I used 1×8’s and deck screws to create each box’s 4 x 10 dimensions and then set them where I wanted. I had to consider other factors in placement like the amount of daily sunlight, can a mower fit between them, where is the swampy part of my yard after a heavy rain. (On a note: Had I considered at the time I might want to create a greenhouse for winter growing, I would have put the boxes side by side rather than end to end so I can do this:)
I had a great little helper during this build, my 9-year-old (at the time) son. Yes, that long-haired kid is my son. Here he is measuring the 2×4 to make the spikes for anchoring the boxes to the ground.
Two 2×4 spikes is hammered into the inside of each end of the box . I recommend you invest in or borrow a sledge hammer, because nothing else will do the job as fast.
Here my ex is lending some muscle on the heavy swinging and hammering.
Next, three 2×4 spikes are placed at intervals on each side of the box and hammered into the ground. When they are level with the top of the box, and the box is level, the 2×4’s are then screwed into the box frame with deck screws.
That’s all it took to have two raised garden beds ready for soil and plants!!
Except that I didn’t stop there. When the Texas sun is at it’s hottest, I have no desire to stand out there after work, in my high heels, and water my garden. So, I put in a little timer-driven drip irrigation system into my beds.
I dug a trench (using a pickaxe) from the house to the first box. I utilized right angle elbows and the 1/2″ (black) tubing to run an L shape line from the brick wall of the house to the first box. I laid the tubing into the trench and ran the tubing underneath the box and recovered the trench.
With two more right-angle elbows, I extended the tubing above the inside of the box. Then I created the same right-angle extension at the other end of the box and ran tubing, underground, to the next box.
After adding the soil, I connected the elbows at each end with 1/2″ tubing and added small sprayers directly into the 1/2″ tubing at intervals. This whole ensemble is connected to a hose which is connected to a Timer at the spigot. The other end is folded over and connected with an “8” ring. I set the timer to water a few minutes every few days and increased as the weather got warmer and dryer in the heat of the summer. Remember, the raised bed will dry out faster than the rest of the yard.
If you are an apartment dweller or have limited space, you can also enjoy fresh grown vegetables with this other alternative: A Planter Box. Click on pics to open links
or for the truly space-challenged:
Now…. back to the weeding, the hoeing, the cussing.
Spring has come early to North Texas and I spent many hours on my back patio this weekend, enjoying my iced tea, basking in the sunshine and making lists of what needs to be done to get my yard ready for Summer Fun.
So, without further ado, here it is:
1. Time to get the Clothes Line out of the storage shed. CHECK!
Several reasons I have a clothes line in the summer. First, I love the smell of fabrics dried in the sun and I love sleeping on sheets with that wonderful scent of sunshine and Gain. Second, it takes less time to dry towels, jeans and sheets on the clothes line than it takes to dry in my dryer, which is less energy used while my A/C is working hard. Third, my Clothes line will dry up to 3 large loads at a time which makes short work of my laundry days. I purchased it last summer here, and it has more than paid for itself.
2. Replace the Propane Tank on my outdoor grill. CHECK!
Nothing easier than grilling food with propane and I plan an entire summer’s worth of great meals. I can even bake/roast items on my grill. By evening, my patio is in the shade of the summer sun and I love to dine outside.
3. Weed & Till my garden and amend the soil.
I have two raised beds that I started last year. With the exception of a boatload of cucumbers, it was a dismal failure. I did learn to make pickles. Anyway, I decided to do a better job of preparing the soil. The picture above is the current state of the garden overrun with weeds and grasses and runaway strawberry plants.
Sadly, I don’t want to waste my small garden space on runaway strawberries, so they may be relocated to pots. Then I plan to till the garden, amend with stuff peat moss and manure, put down a weed barrier with some newspaper I have been collecting and plant some Tomatoes, Green Beans, Cucumbers, Watermelons, etc. Whatever I think could survive the Texas Sun. Last year, I planted from seeds. This year, I will buy starter plants and see how it works out.
4. Trim the wayward Pampas Grasses. Divide and replant.
These need to be cut down to make room for the new growth. They need to be divided, as well, which would allow me to plant some on the other side of the deck. This will definitely give balance to the “floating” side of the deck.
5. Sand and Stain the Deck. Replace damaged boards.
The deck was built in 2003 and has held up really well. However, my daughter has gotten a few splinters from walking barefoot across it, so I will need to do some sanding, some board replacement and I definitely want to stain it. This will be the first year that I have ever stained the deck and I think it will give it a fresh new look. I haven’t settled on a color quite yet. I hope to have this completed in April before it gets too Dang Hot, which is a technical term for mid-90’s.
6. Add some color (Flowers and Plants)
The first year I was a Single Mom, with a single mom budget, was too scared to even water the lawn, let alone invest in flowers. I have since gotten a grip on my budget and I try to buy things that flower year after year and then I add some annuals in certain spots…… like here….
and a few containers around the deck.
7. Reactivate the watering system.
I have an Drip Irrigation watering system for my container plants, my raised garden and my water garden. In the heat of the summer, the above ground planters don’t hold on to water very well. So, I have these systems set up on timers to water a little bit everyday. Learn more here …. Drip Irrigation Systems.
8. Buy replacements hoses and sprayers and washers, as needed.
Sitting in the summer or freezing in the winter can shorten the life of your hoses and sprayers. Also, replace the rubber rings inside the hose or sprayer connectors will ensure tighter, drip-free connections.
9. Clean up the water features.
Occasionally, I find a frog bathing in the spray of this in-ground water feature, so I am skeptical to use algecide in the holding tank. So, I have to clean the funky green stuff out of the fountain head every few weeks to keep it flowing.
This water feature needs a bit of cleaning and some new plants to keep it looking as good as it did last year…..
I love the sound of splashing water, so I most likely will be putting up the 5ft above ground pool again this year, probably in the same place as noted below.
10. Put up the Above Ground Pool.
OMG! This list is huge!!!!
The next few items are on the Would Love To, but Not Right Now list, but they deserve a mention.
11. Finish the Storage Shed/Playhouse
My dad and I build this shed last fall with a Playhouse feature for my son in the roof line. He and his friends can climb up and they are on top of the world. However, the open-ended roof is collecting rain water and I need a new solution for easy access for my son and the ability to keep water out of the playhouse, which leaks through the floor and into the shed, in turn making the shed floor warped and fragile. I have some ideas that I will share in another blog.
12. Side Yard Stone Wall
A year ago, there was a fence that extended to the left of this picture with a gate. Then, last fall, a mighty wind blew it down. Rather than repair the fence, I decide to get rid of it, with the blessing of the HOA. As you can see, this side of the yard doesn’t get much, if any, sunshine.
The make-shift wooden wall on the right was an attempt to prevent the ground from eroding away from the foundation. Which was perfectly fine when it was hidden behind a fence, but now that it is exposed, I would love to have a stone wall replace the wooden wall and extend to meet with the stone wall in front of the house.
I’m sure the HOA will be complaining about this before long, so it may be a sooner rather than later. I need to get rid of the red stain (it looks like an open wound) from where the old gate use to be and someone got a little carried away with the stain-filled sprayer.
So, let me summarize what I have signed myself up for these next few weekends:
1. Time to get the Clothes Line out of the storage shed. CHECK!
2. Replace the Propane Tank on my outdoor grill. CHECK!
3. Weed & Till my garden and amend the soil
4. Trim the wayward Pampas Grasses. Divide and replant
5. Sand and Stain the Deck. Replace damaged boards.
6. Add some color (flowers and plants)
7. Reactivate the watering system.
8. Buy replacements hoses and sprayers and washers, as needed.
9. Clean up the water features
10. Put up the pool
Would Love To, but Not Right Now
11. Finish the Storage Shed/Playhouse.
12. Side Yard Stone Wall
Now that I have written down and shared it, now I’m going to be accountable for getting it done. Oh well. Sometimes a Single Gal needs someone to hold her feet to the fire. Otherwise, I might just spend all my weekends in bed with a good book.
It’s gonna be a great summer!!!
I just attained 700 hits on my little blog, Single Mom Thriving!!!!
No, there isn’t a 700 club for bloggers but since I just noticed that I hit a nice round number, I thought it was cause for celebration. I’m just shocked that my mom has managed to hit my page over 700 times. Just kidding!!!
I started this blog a little over a month ago and in my 4 weeks of blogging bliss, and 25 posts later, I’ve had 700 views to my little corner of the world. It is uplifting and motivating to know that there are people who read my blog and my readership is increasing everyday. Thanks everyone!
This is the (all caps) WOW! part. The stats below show that I have had readers in 15 countries around the world!
The stats also show that my highest readership comes from my DIY projects that I post on other popular blogs (Young House Love and Ana-White.com) and that my Money and the Single Mom blogs are pretty popular too.
Thanks for all the love. You guys are the best.
I always believed that Wealth Building was something “rich” people did. As I have schooled myself in the area of personal finance, I have learned that Wealth Building is not just for the wealthy. It’s for everyone, even a Single Mom, like me. Who knew, right?!?!
There comes a time to stop living like there is no tomorrow and start making financial decisions that will support your longer term goals. These could be to save for a down payment on a home, provide some money for the kids college, save for retirement, a newer car and/or simply to provide a comfortable cushion should life throw a few lemons your way.
None of these items are out of reach as long as you establish your priorities.
Wealth Building begins with a positive Net Worth. What is Net Worth? It is the mathmatical outcome of the value of your Assets minus the cost of your Liabilities.
Assets .v. Liabilities
Anything that is owned that has value, such as a home, auto, cash, art, and investments is an Asset. Assets always have a positive impact to your Net Worth.
A Liability is anything in which money is owed and has negative impact to your Net Worth. The more debt you carry, the more it offsets the positive influence of your Assets.
A spreadsheet adding all assets and making adjustments for liability will provide a clear picture of your Net Worth. In the example below, Assets are listed on the left side based with their present value.
On the right is where all liabilities are listed and valued. Home loans, car loans, student loans and credit card debt are all liabilities. This would also include any outstanding money owed to the IRS or legal fees or liens against your property.
A house is an asset, except for the part of it that is financed. Since this is a debt that will need to be paid (a liability) the asset is offset by the liability. If the house is worth $200,000, but $150,000 is owed, the asset is only worth $50,000 (200,000 – 150,000 = $50,000). Since the money owed is less than the value of the house, the house remains an asset but for only the amount of the equity (value – debt = equity) of the home, $50,000.
On the spreadsheet above, the house value is listed in the Assets column and the Mortgage is listed in the Liability column. The Liability will offset the Value.
If the value of the house (the amount at which it could be sold) is less than the amount owed, then the house becomes a liability. “Upside down” is a favorite term for this scenario.
When the two sides of the spreadsheet are added together Assets – Liabilities = Net Worth, the Liabilities will always devalue Assets dollar for dollar. In this example, the Net Worth is listed at the top right-hand side at $165,500. This person has a positive Net Worth and that is the beginning of building wealth.
Now imagine if that person only had a house debt. Without liquidating any of their assets, that person worked really hard (took a second job, maybe) to pay off their debt and today only had a house payment each month, then their Net Worth would have increased to $210,000 (reducing the liabilities column to only the $150,000 owed.)
A positive number in the Net Worth box is the start of Wealth Building. Why? Well, all things being equal and should someone call in all your debts, you would not be completely broke (assuming you sell all your assets). I recommend that this exercise be done every quarter and if this number is climbing, then you are increasing your assets or decreasing your liabilities and, therefore, are Building Wealth. If this number is declining, then chances are you have increased your debt load.
So, it is to be said that the first steps to a positive Net Worth is to create a budget, remove the liabilities, i.e. debt, and start saving. Your goal each month should be to pay off debt and/or add money to your savings or your investments. Both will have a dollar for dollar positive effect on your Net Worth.
There is no “Get Rich Quick” scheme for building wealth. It takes planning, budgeting, saving and investing. By the way, putting $5 a week toward the lottery is not an investment, nor is it a plan.
At this point in your financial development, investments should be limited to 401(k), IRA, or Mutual Funds. I do not recommend investments in jewelry or art or even property until your Net Worth is in excess of $1M or you are comfortable paying cash for these items.
I will cover more of how to make your wealth work hard to make more wealth in my next blog in this series….. Money and The Single Mom – Investing.
On a Personal Note
I have been working on my financial plan since 2009. At the time, I calculated my Net Worth and have tracked it quarterly for these past 3 years. During that time, I paid off all my debt (except the house) and I am careful not to incur any additional debt by planning purchases and living within my means. I have begun to give to my 401(k) and building my Emergency Fund. As a result, I have consistently increased my Net Worth by at least 5-10% each year. I am building wealth, as a Single Mom, and you can too.
Free Net Worth Spreadsheet – Excel
3 Simple Steps to Building Wealth, Investopedia.com
5 Ways to Build Wealth Automatically, Forbes.com
I recommend the following books for more insight into budgeting and other money matters:
The Total Money Makeover – Dave Ramsey
Debt-Proof Living – Mary Hunt
Next Wednesday – Investing
Enough about my Home Office Makeover. I’m taking things slow and having to make a few purchases or builds, which will require waiting for my April Budget. I might even try my hand at upholstering some slipper chairs that I want to build/add to my office.
When I decide to build, I look for plans that I can use to make what I want and then I read them and read them and read them again until I can make it in my sleep. At that point, I feel comfortable tweaking the plans to suit my liking.
The dimensions shown were a bit larger than I had in mind for the space. I was looking to create something more of a sofa-table-sized desk to put against that wall and anchor my artwork. I loved this long lean look.
So I did a mock up of the size that I was thinking to ensure that it was truly a functional depth and length. I used 8 ft cedar fence boards (because that is all I had and didn’t want to cut them down) and then used a small table that I shimmed with boards to get the height that was in the original plan. Here is the mock up.
The 8 ft length was more than I wanted for that area, so I decided to shorten the length to 66 inches (a few inches in each direction wider than the artwork) and shorten the depth to 20 inches so that it didn’t interfere with the normal flow of traffic into my bedroom.
There are many reasons I picked this plan. The first reason was the wonderful tapered legs which I knew would be a beautiful detail and a challenge to my skill set. And it was both! …. more to come in Part II of this blog.
In reading through the plans for this table, each of the table top pieces are attached individually to the frame to create a table top. I wanted to take those single pieces and make a solid table top and this differentiation was my second reason for choosing this plan.
Starting with 8 – 1×3’s (which measure ¾ x 2 ½) to reach that 20 inch depth. (vs the 4 – 1×8 boards in Ana’s design which I would have had to rip boards down the middle or modify my dimensions)
True that I could have just used a piece of birch plywood cut to fit…. but where is the fun in that!?!
I lined up the boards, without cutting to size yet, by the short sides and put a bead line of glue between them. Then I clamped them together using scrap boards to keep the 1×3’s from squeezing out.
Be sure not to clamp them too tight or all the glue will be pushed out and the table top will eventually break. Allow the bond to set overnight.
It would have been sweet had the boards all lined up prettily and gave a smooth top from the start….
So, it took some work with the belt sander to smooth out the unevenness and make a top that looks seamless.
Using a belt sander with a 50 Grit Course Sanding Belt (which is used for surface leveling and paint removal), I smoothed down the ridges on both sides of the table top. This was a slow process. I worked on it for about 15 minutes at a time for 3 evenings and I made sure that I used a dust collector, hearing protection, protective lenses and a dust mask. I think I scared the children.
After getting the ridges smoothed, I switched to an 80 Grit Medium Sanding Belt and sanding again and finally a 120 Grit Fine Sanding Pad with my small sander to smooth the surface.
Next, I cut the table top to length using a straight edge and a circular saw.
When I mocked up the table using the Cedar Fence Planks, I was drawn to the warm color of the cedar and how well it matched the other furniture in my room. So, I bought a few different stains and tested them out on scrap wood.
First I applied Pre-Stain Wood conditioner to the scrap wood then a coat or two of stain. I tried both Golden Pecan and Cherry.
The Golden Pecan on the left is too light and the Cherry is too red. So I did a blend of the two…… Cherry on the bottom and two coats of Golden Pecan on top.
And that gave me the warm rich color I was looking for.
First I applied Pre-stain to the board and then wiped off the excess. Then, I applied the Cherry stain with a brush, waited 10 minutes and wiped off the excess with a soft cloth.
Next, I applied the Golden Pecan with a brush and then wiped off the excess after 10 minutes to get this effect. I was very happy with a single coat of Golden Pecan over the Cherry.
After staining, I applied two coats of satin Poly with a brush allowing each coat to dry overnight and light sanding between coats. I had bubbles show up in my poly as I was brushing it on. Most the bubbles disappeared when it was dry.
The Table Top is now ready for a base. Which will be Part II later this week.
8 – 1×3’s -Select Pine – $57
2 – Cans Stain – $6
1 – Can Pre-Stain – $5
Paint Brush – $6
Total Costs: $74
I already had:
Have you ever taken on a project just because you knew it would challenge your skill level? I did with this project. Making a solid smooth table top with sticks of wood was an amazing experience.
Have a great week and reach for the unknown.