Paying for private school

Tips and tricks for sending your child to private school

Tag: frugality (page 1 of 3)

Think multi-purpose

Ever noticed all those low profile and uninteresting hatchbacks, mini-vans and station wagons wheeling around?

Time to get excited about them because they are awesome.

We purchased our battle wagon for a net of $8000 even though it only has $70K miles and gobs of air bags.

Last month we needed a new side board (well, a side board, we never owned one).

New side boards were $1000 for low end ones unless you go with those glue and saw dust ones that have to be replaced soon anyway.

Too much! Guess those boxes stay on the floor.

We looked on Craigslist for weeks. And weeks. Even the cruddy stuff at low end stores was $500. Sigh. We were very close to dishing the money out for a new piece and cutting in other areas to make it work.

But wait, Craigslist has a 5 foot solid wood one for sale that on the Havertys awesome web site sells for $1000 new (love their stuff – so cool). And it is only $200 bucks and within a few miles of the house!

If only we had something to move it with – I am too lazy to rent something and it would take too much time. It might be gone and what if I don’t like it when I see it. In comes the incredible station wagon with seats that fold down! volvo-wagon-blueAn hour later the sideboard was now gracing our home instead of headed to the trash heap.  Money saving environmentalism.

On the way home I couldn’t help but realize the $800 saved was the equivalent of a 10% yield pay out on the wagon. That is pretty sweet contribution to the tuition.

Keep costs low and think multi-purpose.

Is A Used Car Cheaper To Own Than a New Car?

Is a used car cheaper than a new car to own? For those of us scrounging to pay for tuition there is a better (and easier) question to ask. And that is, what is my cost per use for this car?

Consider Cost Per Use Instead

Folks paying tuition don’t get to pick any car they want to won. Instead, we buy the safest cars possible and determine the correct one by comparing cost per use (in this case cost per miles).

Instead We Consider Cost Per Use on Large Purchases

Here is an example. Our car cost $45,000 new.  A long time ago. We paid net (after sale of the old car) $8000 for it second hand with 70,000 miles on it. Same features as the original owner had but with more miles on it, some character and a bit of a vintage feel. Let’s use the cost per use method to see if we paid a fair price for the vehicle.volvo-wagon-blue

Before we get into the numbers I realize some of you hate this sort of conversation. You find it is tedious and you never trust the numbers you end up with.  Send me a note or post a comment and I will run the numbers for you. And don’t worry about getting the match exactly right, just remember to keep cost per use in mind when facing a major purchase decision.

On to the numbers!

The original owner paid $45,000 for 75,000 miles of use or 60 cents for each mile driven, not counting fuel, tires, service and parts. Assume we keep the car another $75,000 miles and get the 75K, 100K and 125K maintenance work which will cost in total about $4000. Our combined cost for the car is $12,000, again ignoring consumables. Our cost will be 16 cents per mile or only 25% of the cost of the car if it was purchased new.  I declare this to be a good deal as we can get four of them for the same cost as the car was new.

Is A Used Car Cheaper To Own Than a New Car?

This doesn’t mean all used cars are cheaper than all new cars.

Today on Autotrader.com a 2013 Jeep Wrangler with 45K miles is selling for $25,900 despite having a poor side impact safety rating and marginal front impact rating. At the same time a new Subaru Forester, is selling for $26,100. Not as cool looking but stellar safety ratings.

If both cars are driven for 100K miles the Wrangler will need both the 75K, the expensive 100K services and a more expensive 125K service, and new tires for about $5000 in parts and labor. The Subaru will only need the $1500 75K service.

Let’s compare the cost per use of each vehicle in the handy table.

Wrangler (21 MPG) Forester (32 MPG)
Up front cost $25900 $21600
Service $5000 $1500
Gas for 100K miles @ $3 a gallon $14285 $9375
Total cost $45,185

 

$32,475

 

45 cents 32 cents

 

The Forester, despite being newer, safer, and more reliable and more gas efficient, at first glance appears to be about the same price as the used and cooler looking Wrangler. But the cost per mile reveals the Wrangler is 40% more for each mile driven. A brand new Forester is much cheaper then the used Wrangler.

The astute reader at this point will wonder – wait a minute – wouldn’t a used Subaru save us even more? I am glad you asked because today on Autotrader.com a 2013 Forester is $16,488.

Let’s compare cost per use of all three vehicles.

 

Wrangler (21 MPG) New Forester (32 MPG) Used 2013 Forester (27 MPG)
Up front cost $25900 $21600 $16488
Service $5000 $1500 $5,000
Gas for 100K miles @ $3 a gallon $14285 $9375 $11,111
Total cost $45,185

 

$32,475

 

$32,599

 

45 cents 32 cents 33 cents

 

Oooooh!  So sorry! The new car is still the most economical. The less gas efficient 2013 Forester combined with that 100K services hit really put the new vehicle in the lead.

We have found it helpful to think cost per use to get the most out of something so extra funds can be redirected towards tuition and hope you will too.

So the three cars I chose for this example were pretty close. Ideally, you are looking for comparisons that are really easy so that it is fairly obvious by adding up some numbers. But you get the idea. If you find a car that is safe and reliable but makes you go “meh” it is likely to be the correct car. That is why there are so many of them on the road as lots of other folks have come to the same conclusion.

If you are thinking a particular car you are looking into is so cool, move on. Get your excitement out of some fancy new shoes instead.

That is One Long Cable!

Eleven years ago we moved into our current home. And the previous owners had not installed cable television. To get it installed meant an all day visit and lots of holes would have to be drilled into the relatively intact walls. And then we would have a $100 a month bill.

We put it off. Then we thought about it. And then we passed on it and just used Netflix and then eventually Amazon Prime for videos and a fancy “digital” antenna for local television stations.

In the first year we spent $1200 less than we would have otherwise. Importantly, we missed all those advertisements that likely would have increased our spending even more. Ten years later we had avoided $12,000 in costs.

Last year we got a sweet deal on a used Volvo XC70. Originally $45,000 when it was new, we picked it up used for $12,000. After selling the previous car for $4000 the net cost was $8000.

Volvo Wagon - New to us!

Battle Wagon – New to us!

By skipping on the cable expense for the decade prior we essentially got a free car with all the gas it will need for many years paid for up front. And that is good because we need to pay the tuition bills.

Limit those little expenses. They add up quickly.

A Tale of Two Dishwashers

Our dishwasher was not functioning well. Repeated repair attempts had extended the life a bit but dirty dishes after each wash was the motivation to finally replace it.

We selected a washer that made sense for us (hard food disposal!) and had decent reviews.

Picture of an awesome Maytag Dishwasher with hard food disposal.

Awesome Maytag Dishwasher with hard food disposal.

There was a fancy one for $598.  Let’s assume we would have it installed for us rather than attempt to get the thing in ourselves.

The Numbers

 

Below are actual quotes from the site we purchased The Awesome Dishwasher (rhymes with West Guy).

 

Fancy Stainless Steel Version – Installed Fancy Stainless Steel Version, DYI
Base price $494 $494
Installation $139 $0
Install Kit $29 $29
Haul Away $15 $0
Totals $677 $523

 

So $154 more for the installed version. That is 30% more for the same functionality.

The Time

This might seem like a waste of time as I am wholly unqualified to install a dishwasher. And despite daily practice my ability to even use one has come into question (hence the hard food disposal). It would take a pro 1 hour. It took me two hours on a Saturday and another two hours on a Sunday. Since we took our time I was able to clean up all the junk under it, test it multiple times for leaks and line it up just right under the cabinet. The previous, professionally installed one, was a miniature leaning tower of Pisa.

And I didn’t have to wait for a contractor and can do it in the morning. 4 hours to save a measly $154. That is only 38 bucks an hour! Based on this calculator that is $79,040.00.

This is looking better already.

But wait – this is tax free money. I don’t have to earn that $154 which would have taken $215 in gross income (before taxes, withdraws, sales taxes and mystery fees). Now we are bumped up to $53 an hour.

The Adjusted Savings

That is better. $53 an hour equates to $110,000 annual salary.

Of course your salary takes priority but if you were going to spend a lazy afternoon with a non-fiction book you can have just as much fun watching a you tube video of how to install a dishwasher.

Change Your Mind Set To Make The Grade

Paying for private school means changing your mind set on seemingly small things. You can do this.

Build the Catherdral

For over half a century Trappist monk Justo Gallego has been building a cathedral in Spain. Led by his calling and with no formal training his effort has resulted in incredible results

Justo Gallego. Source: wikipedia

Justo Gallego. Source: wikipedias been a slow and steady building up of something beautiful. He expects no return on investment and, while accepting help, he has to be the driving force behind it, day after day, month after month, year after year.

I love this story. We as parents all of us are doing the same for our children. One way we do this is to match our

child’s needs to the appropriate school. And if you are at this site, you have selected, or are considering, a private school as one possible option.

Justo might be a little bit crazy. And many of us have  heard that we are nuts for wasting money on private school tuition. But wouldn’t it be nice to create something beautiful  for someone else?– In this case a series of experiences, lessons and morale frameworks for your children and the broader community.

You can do this. We can help.

 

Be Your Own General Store

Want to save money for tuition? One way to do so is to be like your grandmother and be your own general store and service center.

Make your Own Mixes

For example,  you can make your own bleach based cleaning spray with bleach, water and laundry detergent. We did it this morning and instructions are available online. You can do it too. Just be sure to use a laundry detergent for the soap portion of it so you don’t create a toxic cloud.

The mix is 1 to 10 of bleach to water. Here is the mix we prepared this morning:

  • 3 ounces of bleach
  • 1 teaspoon of power laundry detergent
  • Top of the 32 ounce spray clean bottle we already had
Bleach bottles

Bleach Bottles by WolfmannOwn work, CC BY-SA 4.0, Link

This is 2 cents a bottle as opposed to $4.99 a bottle in the store.

I saved almost $5 bucks?

Or did I? Let’s check the math.

 

 

 

 

Amount Saved = $5

Put That Creation To Use!

I immediately put this spray to use in a clean wipe of and disinfection of the bathroom surfaces. The total process took less than 20 minutes.

Less is More

And acting as your own general store is a real quality of life booster. All we need is bleach, laundry detergent and water and one spray bottle. There is no reason to visit a big box store to stock up on sprays and fill our stuff our closet with various cleaning solutions. Time saved. Plus our frugal house is also less cluttered which lowers the stress levels.

Indeed, if you have those basic ingredients on hand it’s faster and cheaper to do it yourself than calling a cleaning services and then having to do your own this-place-is-a-mess pre-cleaning before paying for $40 professional cleaning service.

Amount Saved =$45

This in turn means I won’t suck down an entire $5 pint of ice cream in a stress induced fit. Instead I will get some gentle exercise and sense of control by being able to do this myself.

Amount Saved = $50

That combination of gentle exercise, avoiding the stress (and ice cream) and having a sense of control will delay a cardiovascular event by a few years, at least, the way I see it. And that is another $20,000 not spent on rehabilitation.

Amount Saved =$20,050

The Benefits Combine and Compound

Ok that health scare bit was a bit tongue and cheek. The point here is that doing stuff your self has benefits beyond the few dollars saved for tuition expenses. Being frugal won’t delay health issues. Or will it?

What isn’t intuitive at first and what I want you to learn is how the benefits compound beyond a few extra bucks.

Some basic home chemistry very well might increase your physical, mental and financial well-being. At the very least it will save you $5 bucks and result in clean bathrooms.

A Stitch in Time Saves Nine …Hundred Dollars

I am a fan of LL. Bean’s washable wool dress pants  as I wear fancy pants to my office job.

LL Bean is known for durable easy care high quality items. Their dress pants are a mix of wool and polyester which results in torrent of financial savings for the office dweller like me. Recently, a relatively new pair had the hem come undone and flapping in the breeze.

Think Before You Toss ‘Em

LL Bean Washable Wool Pants.

LL Bean Washable Wool Pants.

Normally I would have tossed it in the Goodwill bag and gotten a new one. More on that in a minute. First, a little more about these productive pants.

Their secret super power is that you can wash and hang them and they come out looking great without a trip to the dry cleaner. They can be more expensive up front, but as you have already learned sometimes it make sense to pay more up front.

The Savings

Let’s take a closer look at the numbers.

 

LL Bean Washable Wool Dry Clean Only Pants
Cost of pants $119 $119
Dry cleaning cost per wash 0 $5
Water cost per year $4 0
Number of times worn over 3 years 156 156
Gas cost of driving back and forth 0 1
Dryer costs 0 (we hang these on a dryer rack) 0
Hassle factor Low High
Total cost $124 $899
Cost per wear 80 cents $5.76

 

What? And that is just for one pair of pants. Assuming you wear dress pants 5 days a week the fancy drying clean only pants will cost you $4495 over 3 years. And this is before you consider shirts.

Surprisingly, we have found that doing this ourselves saves time as well. There is no driving and parking needed. And there is rarely a line at our drying rack.

$5000. And time saved. And it is better for the environment.

Back to the unfurling pants. My wife took up the hobby of sowing. She took one look at the unfolded hem on my near new pants and a moment later had them back in order. No need to ditch them.

Another $119 saved that can be added to the $5000 to use for tuition costs.

You can do this.

 

What’s in Your Closet?

Like many of you I am an office drone and spend my days dressed in the knowledge worker uniform which include a  pairs of wool/polyester pants.

The second life of pants

Here is a money saving tip someone showed me years ago. When the dress pants get a bit frayed and need to be replaced, keep them for the weekends. Or for painting a room in the house (once you send your kid to

cap2

private school you are going to be in-sourcing a lot of work you use to hire experts to do).

My favorite pair of pants last saw the inside of an office 5 years ago. And they have permanent black stains on them from when I refinished the driveway in them (two points added to the man card, thank you). But they are *really* comfortable.

Save time and money

What is amazing about this approach is what didn’t happen. I haven’t bought weekend pants, jeans, or pants to work in the yard over 5 years. That is a few hundred in expenses saved right there and less stuff going to the land fill. And it is better for the environment. And it is easier – I always know the pants that move to the weekend pile (I use a permanent marker to mark the inside tag so I don’t accidentally wear them to work) fit and it requires no shopping on my part.

Take a second look-but don’t over do it

The mind set of taking a second look at anything you are going to toss or recycle to see if it has a second life can turbo boost your cash flow over time and help pay for a private school tuition.

You just have to be careful to not save things that aren’t used. I only keep 3 pairs of former office attire in the weekend or yard work draw. The rest go off to be donated for a tax write off.

The pants progression

Here is appropriate life of a pair of dress pants:

  1. Dress pants for work (helps earn the income)
  2. Weekend pants (saves on buying a second pair)
  3. Donate to the thrift store (tax deduction)

 

 

Boundaries

Fancy terms are tossed around for those who reach some impressive goal. Will-power, strength, perseverance, forcefulness and might. Awesomeness!

Super Heros

These are good and make for excellent attributes of world leaders and super heroes.

Jedi Knights

What you need to save money is more along the lines of a monk (or Jedi knights); patience, flexibility, willingness to compromise, teamwork and collaboration.

Set Boundaries and Win

But above all you need boundaries. The ability to say no to others and yourself.

Boundaries are the super power of paying for private school.

Indeed, the best way to save money for a higher purpose is to not spend it on a million other valuable things. To resist the impulses bouncing around in your 3 lb. brain driving you to get this (I might need it), visit that (it would be a great experience) or eat those (I need the energy).

Become comfortable with not having the best of everythingGive your self permission to being disliked. You will find life much less stressful as a side benefit.

Get this Book

Get this book: Boundaries: When to Say Yes, How to Say No, to Take Control of Your Life – Slightly Imperfect.

Fair warning it has a slightly religious tilt (which I like).

Did you catch what just happened?

Wait A Minute

If you are new to this this whole frugality thing you probably thought “I need this now!”  and were tempted to click on the link to purchase it. Slow down. Go pick it up at the library or at least purchase a used copy.

Slow down. Let it stew. You didn’t know about it a minute ago. Meditate.

And while you are at the library or borrowing books from Amazon pick  up The Psychology of Persuasion so you know how to catch yourself next time someone presents their problem (I need to sell books)  as yours (you need to buy this book).

There you go – together we just saved $40 in under 60 seconds.

Was that so hard?

Better put an UGG on it

Consider UGG boots for the family as one of your four holiday gifts  (something to need, want, read and wear). They will be appreciated (or will be soon enough) and yield dividends.

Fight the cold

Winter floors can get really cold. Putting on socks – or even house shoes – is too much of a hassle. Cold feet lead to the heat creeping up. UGGs are slip on house boots that have wool in them. They keep your feat toasty warm. Wearing them on even a mild day can be uncomfortable because they are the perfect winter house shoe.

Be an environmentalist *and* save money

Don’t turn up the heat up to walk around the house. Put an UGG on it! We keep our house at 62 degrees Fahrenheit (16 Celsius) in the winter and everyone has a pair of UGGs.

With a onetime investment you are able to keep the heat down for years. This in turn enables us to increase our available cash for tuition payments.

Combined with a down blanket we lowered our heat from 72 degrees Fahrenheit (22 Celsius) at night to 62 degrees (16 Celsius) with no loss in comfort. Saving 3% on our bill for every degree we lower our heat means we dropped our bill by about thirty percent. And this applies for every month of the winter. Every year. On a $200 heating bill (it’s cold where we live) that is $60 bucks each month that can be sent to the school to pay for tuition. And it reduces are carbon emissions.

Keep going!

Your job is to find five of these kinds of savings. And then, once you have that done try to find more. To start off, turn down the heat and put an UGG on it.

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