Category: Benefits

Have fun while saving money!

October 1, 2020 / G. Ruga / 0 Comments

One of the unsung benefits of frugality is that you end up doing a broad range of things in addition to your work speciality. This has the added benefit of adding novelty to my week which I really enjoy.

For example, just this past week I changed the oil in the car, mowed the lawn, planted grass seed, baked a casserole and perform a variety of similar tasks.

Each of this were challenging, unique and the results were satisfying. It is easy to imagine that anyone of these tasks repeated 8 hours a day would become boring and then feel like a job. Instead they are interesting, productive and tax free ways to save money.

Tips for making the most of novelty

For me there are a couple of things that really making saving money fun:

I don’t take on too much. I leave the high pressure stuff for the workplace and try out money saving tasks that you enjoy. Your financial security and contentment will both increase.
I purchase (or borrow) great tools. It’s no fun to mow the lawn with a beat up device and usually a good tool pays for itself in weeks.
I calculate your hourly rate for those DYI tasks. For me it is usually more per hour than I make at work.
I take your time and do the job you are proud of your small task. This is, after all, my leisure time.
I understand the huge health benefits of perceived control. There is no better way to control how your bed is made than to do it yourself. Go fo it – even at hotels!

Have some doubts? Trust the fine folks at Harvard who report that works make you happy. Don’t let someone take away your happiness and your money just to windex your windows. Do it your self and grow your contentment and your bank account. Better yet try it out and see for yourself!

Five ways to cut college tuition costs by a third in the DC area

July 21, 2019 / G. Ruga / 0 Comments

In the DMV we are lucky to have a number of education options available. Did you know there are also ways to reduce tuition costs? Here are five ways to cut college tuition costs by a third or more.

Many people we know spend the first two years of school at community colleges and then transfer to their desired school for the final two years of study. For example, Montgomery College has a tuition of $5000 a year. The University of Maryland is $12,000 a year, ($20,000 if you live there). So you can either pay $80,000 for a four year degree from UMD… or $50,000, for the exact same degree by first completing your core credits at a local community college. That move save you $30,000 on tuition costs.
And many companies in the DC area will pay for your tuition. The MITRE Corporate , with offices in McLean, Virginia, will cover $28,000 of your studies. Assuming your student picks up a graduate degree at night over three years at one of these employers that is another $84,000 in tuition assistance. And you get to apply what you learn right away.
Also, DC residents should learn about the D.C. Tuition Assistance Grant program which grants up to $50,000 in benefits.
Stay close to home. UVA’s in state tuition is around $20,000 a year. Out of state? Almost $50,000 a year. Save your family $120,000 by selecting avoiding a school that requires a trip on the beltway to get there.
Finally, many colleges offer a discount to children of employees. For example, here is the 50% of tuition remission offered to University of Maryland Employees. That is $24,000 in tuition assistance right there.

Combining these steps can make tuition more affordable for both private and public colleges (and some high schools). These five options total $308,000 in tuition assistance with no scholarships. This will save you from having to earn almost $400,000 in income to pay for the stuff.

Education is a high priority in the DC area given the nature of the work here. Area institutions, governments and employers recognize and support this if you take the steps to apply for the benefits.

Don’t quit!

Scrimping and Saving

I realize most folks are frugal so they can escape the rat race and the idea of living frugally and then spending it all on tuition fees seems somewhat counter intuitive to many people.

Our thinking is that we are paying for a school that aligns with our values and educates our child. We are supporting our family through a great education and the school through our tuition. It means lots of stuff doesn’t happen, and we keep lots of records.

If you are following a similar path, after years of scrimping for school your spending will be on autopilot. And one day you will reach that point where there is no more tuition and you can redirect those funds to retirement savings. And one day you might have the option to quitting your job! Don’t!

An alternative

Instead select a job you enjoy and a cause that resonates with you and funnel your future earnings there. Or take on a volunteer with a charity. Help a family member. Write poetry. Or start a blog. The point is, set aside some side to be productive and direct that output to the benefit of other people.

After all, your education (from elementary school to today) probably cost more than your car. And your house. Don’t let it go to waste simply because you are done with it. After being so efficient for so many years it seems sort of wasteful to let your productive capacity diminish through lack of use.

The idea of voluntary simplicity in spending to eventually to spend most of the time on the beach might appeal for you. And do it. For a year. And then use your good fortune, your skills, and your hard acquired skills and education for the greater good.

Consider giving it away. Imagine the good you can do if you are so fortunate. I bet there is a school you are really familiar with that could use some donations from income you don’t need or hands on volunteer help.

We need you

But don’t quit. We need you. And you need us.

“The used key is always bright.”

― Benjamin Franklin

Hard work and self-restraint

July 21, 2017 / G. Ruga / 0 Comments

Paying for a private school is really challenging. And while there are many mental frameworks that help one in particular is required as the basis for the rest; industry and frugality. That is a fancy phrase for the combination of hard work and self-restraint.

This is not a new concept. Benjamin Franklin wrote the following Advice to a Young Tradesman on July 21st, 1748;

“It depends chiefly on two Words, Industry and Frugality; i.e. Waste neither Time nor Money, but make the best Use of both.”4

I urge you to read the full text. What isn’t often stated is how satisfying it is to get stuff done. Checking stuff off the list! Saving tens and sometimes hundreds of dollars in the process! And redirecting those dollars to someone else’s benefit. “Work is love made visible“. ― Kahlil Gibran

It is ok to not be the best

I am probably the least handy person on the planet. To pay the tuition we regularly apply both industry and frugality. It started with raking the leaves instead of paying someone to do it. And, slowly, ever so slowly, and with the help of lots of YouTube videos, we added more stuff to the we-do-that list. Last year, I carefully replaced the bathroom faucet. And someone heard I was doing the work myself.

By Janekpfeifer – Own work, CC BY-SA 3.0, Link

They were quite impressed. My chest puffed out a little further (for about a minute) and it occurred to me it is kind of fun being able to get stuff done. It is even more fun to understand how something was installed so when a problem invariable occurs you can usually understand what is going on and when to call for help – and when to simply tighten a bolt.

There is dignity in work

It is very easy to be a consumer. To wait in lines for stuff and services. To pay for private school (or home school) you are going to have to change you mindset from consumer to producer. It is quite satisfying. I have repeatedly noticed that the few wealthy people I know tend to like to do stuff themselves. It is not for the money. There is dignity in work. Do stuff yourself, however small, instead of standing around watching others do it for you. It’s a lot more fun (well, when you are done) even if you have to do the same job three times in a row to get it right.

Read the Money Mustache article introducing and explaining the Consumer Habit Loop versus The Mustachian Habit Loop. And then read it again. It will take a while to sink in but it a key framework in enabling you to pay for your children education while simultaneously enjoying a more satisfying life.

Roll up your sleeves. Get your hands dirty*.

You can do this.

*Not really. I go through about 100 Raven Nitrile Power Free Gloves every six months. They enable me to do jobs that normally I would resist from the gross factor alone (this includes all cleaning, car and plumbing work).

Sending your kid to private school will save you $1,053,000

June 21, 2017 / G. Ruga / 0 Comments

Time Magazine reports that private school can save you money by giving you home location flexibility. This in turn can save you $50,000. They are right! Indeed, you can save even *more* money if you take the right steps after moving in.

Small is Beautiful

We live in an OK but not great public school district. As is typically the case for such school districts, the homes are older and smaller. Our smaller home costs less to heat and cool. And it costs a lot less to repair. There are less materials needed and they often cost less to replace. Don’t be scared into buying or renting a brand new place to avoid costs – over time the smaller home will come out way ahead in many ways.

As one of many examples, our current roof cost $3000 to replace back in 2010. For larger homes a roof replacement can be $8,000 to replace with just basic materials. And larger homes are often fancier requiring you to get better materials to fit in. And this leads to the next benefit – keep up with the neighborhood expectations.

Less Pressure To Spend

Keeping up with the Jones is a lot different in our neighborhood. Folks are lot more down to earth. Literally. Hiring a lawn service is considered either 1) a mark of shame or 2) you must be ill and we should step in to help.

People who move here and hire a lawn service seem to eventually shift to mowing it themselves. Every Saturday morning they see countless examples of how do get it done. And the entire street is a tool sharing enterprise. Having auto mechanics and DYI folks as neighbors really helps as well. A a lower cost neighborhood is lower cost on many levels and with more down-home kind of folks we prefer.

The Up Side – More Earnings

And private school raises the odds of your kiddo going to college. You will be used to saving lots of money and shelling out tuition expenses anyway so you are more likely to be set up to pay for it. And that equates to a million an extra income over their career (typically). Start to think across the generations and it starts to get impressive.

And while money isn’t the main driver for a private school it is worth noting that you save a lot more than $53,000 when moving to a lower cost neighborhood and paying for private school.

And lower costs houses are smaller, older and closer to area of employment. Your car costs will go down and with that shorter commute you will be more rested and eventually promoted.

You will save $53,000 on housing expenses and realize $1 million in extra income for each child. That is not a bad deal for providing your children an education that matches your values.

The simple life

January 24, 2017 / G. Ruga / 2 Comments

One advantage of sending your child to private school is that much of your income goes along with them. As a result it limits the other available choices because you have much less discretionary income.

Fretting over a grand tour of Europe? Fret no more! You aren’t going!

This extreme financial constraints limit your choices and the resulting simplification actually leads to longer term happiness. It is known as the paradox of choice.

Have you always wanted to simplify your life? Now you can! And what better way than the assurance of a monthly tuition bill. To be clear this isn’t about poverty – this is about voluntary simplicity. It is an interesting side effect we have noticed over years of sending the kiddo to a private school.

Read more about it in this outstanding book The Paradox of Choice (you are going to have a lot of time on your hands).

Oh, and for the trip? Easy, you are either staying home or going camping. Pick one.

By Marco Bonomo – https://unsplash.com/photos/Sa7787z58VQ/, CC0, Link

Paying for private school is training wheels for college expenses

December 2, 2016 / G. Ruga / 0 Comments

I often hear from folks who say that can’t afford to pay for private school for their young children because they are saving for college.

That is like saying you are going to wait to train for a marathon until the day before because you don’t want to wear yourself out.

The time to educate your children is now, not after they have grown up and are using education primarily for job skills acquisition.

And a benefit of this approach is you are running a college simulation program! You are practicing paying for a portion (or all) of college, right now. Good for you! Keep it up!

Yes, there is a risk that things won’t work out as expected but life is full or risks. Don’t wait until the end of it to do what you feel is right.

You can do this.

Black Friday! Act now! Don’t miss the holidays!

November 25, 2016 / G. Ruga / 1 Comment

Today is Black Friday. One can save thousands by acting fast! One day sales only! Act now! Quick! Save hundreds by spending thousands. Sure, your cash balance

By Powhusku from Laramie, WY, USA – Black Friday, CC BY-SA 2.0, Link

will drop and credit card balance will rise but hey, look at all the new fancy stuff you didn’t even know you needed!

Resist.

Slow down.

Get out of line. Empty your online cart.

That stuff will still be there next week. And the week after that. And without time pressure you can buy fewer items and spend less money overall.

How about this instead? Consider just 4 items for each child for the holidays.

Something they want
Something they need
Something to wear
Something to read

Give them the benefits of a frugal Christmas. This in turn may allow for higher quality items to be purchased while creating less waste.

Expect complaints. And comparisons to what other kids received. Be ok with that. Instead, you are giving your kids a great education and the tools, later in life, to buy stacks of material goods if they so choose.

The Informed Electorate

November 12, 2016 / Administrator / 1 Comment

On Tuesday November 8th, Donald Trump was elected the 45th president of the United States by winning the required electoral college votes with a separation of only 112,000 votes.

It was a contentious election cycle with harsh words and harsher accusations flung by all parties.

Despite which side you were in favor of it is clear that the election was close, complex and nuanced.

Thomas Jefferson once said that “An educated citizenry is a vital requisite for our survival as a free people.”

An educated citizen starts with the education of children where a diversity of thought and training only enriches the discourse. Your job, with the help of others, to educate your children.

If you are considering, or already sending, your children to private school – great job! On paying for private school we discuss motivations, financial approaches and the down sides of electing to send your child to a private school.

By Ali Zifan, via Wikimedia Commons

Paying for private school in the DMV area

Tips and tricks for sending your child to private school for Washingtonians