Paying for private school

Tips and tricks for sending your child to private school

Tag: private school tuition (page 1 of 5)

One day only special! Half-priced cars!

Want a tip for buying a great car at a discount?

Go contrarian – buy out of style cars

Here is what we did;  we purchased an older car but with relatively few miles for it’s age but was out of favor at the time we purchased it.

This has varied over time depending on the circumstances which makes our car history quite varied and has almost always caused raised eye brows on our choice (we take that as a good sign).

At the time we purchased our last car, during a late stage bull market,  luxury cars buyers certainly did not want an out of style luxury car that someone else drove in. The perception of “luxury” typically doesn’t pair well with “used”.

And economy buyers wanted the used cars rated highest for reliability.

This left few buyers in the used luxury cars market segment. And we really value safety features so  we watched the market for a really safe used luxury(ish) car.

And those conditions means we were able to get our current rig at a much lower cost than one would expect.

Behold the Battle Wagon

Our current rig in all it’s glory:

Volvo Wagon - New to us!

Volvo Wagon – New to us!

Swedish steel! Best in class safety. Row boat like styling. Squishy seats. Impossibly thick paint. Odd brown stains on the ceiling of questionable provenance. Vintage!! Did you know they don’t even make this model any more? It’s true! And butt warmers!

Buy older cars with low miles to get lots of trouble free service

The Battle Wagon was ten years old with only 75K on the odometer when we purchased it. Net, we bought this unloved ride for 80% off the original sale price. It was fairly low cost. Indeed, once we sold the our previous battle wagonette and accounted for the ten years without cable savings the car was effectively  free with years of pre-paid gas included. A brand new car would have absorbed all those savings and I would have been worried about scratching the fancy doors.

Right now electric cars are out of favor because of low gas prices

Right now non-Tesla electric cars are out a vogue and can be purchased for a song. With low gas prices they are really out of fashion. You can get one for a fraction of the cost of similar vehicles. Well, that is until gas prices go back up.

Want to be an environmentalist? Get a used electric car and reduce fossil fuel emissions *and* save a perfectly good car from going to the scrap heap. You are *so* green. More of a  outdoors person? Wait until gas prices go back up to the $4 and $5 a gallon price range and get one of those gigantic pick-em-up-truck for half price.

Please check the safety rating on the model year and proceed!

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.

 

Benjamin Franklin

“The used key is always bright.”

Benjamin Franklin

Skip the Tip! Take it to go and eat at home.

This took me many years to discover but it has served us well. Despite being on the frugal track we occasionally eat out (ok, more than occasionally). Sometime as a family sit down dinner or for a special occasion but most often because we go out because it would be fun to go out.

To save 15% at a restaurant, skip the tip by taking the food to go. That will save 15% (or 20%) on the bill because there is no tip. And, after a while, you realize you have drinks at home. And bread. And that is another few dollars saved.

Electrical candlelight!

Instead, set your home up to be a delightful place to eat with a fancy and clutter free table that include  forks that haven’t been in a million people’s mouths (a no cost bonus!). At the Café De Your Place there is never ever a wait. The table is always open, there are just enough seats and it’s the best table in the joint.

Plein Air!

In the summer we eat out on the ‘rustic’ wood table that came with the house. This year we added a coral maple to enhance the view at our fine dining establishment. How many restaurants do you visit have this kind of greenery? Get creative (but low cost) and set up your own ambiance.

G Ruga Coral Maple Tree Photo

Paying for Private School’s  Frizzy Coral Maple Tree of Awesomeness.

If you are like most families where eating out just overtook the grocery sales then you probably spend around $2625 on dining out.

Ha. I know the truth.  If you have the income to consider a private school tuition and live in metropolitan area that number is much higher. It is more like $6000 a year. Lets go with $6000. That is $900 a year in tips if frequent wait in line and then sit down establishments. Toss in another $100 on desserts and drinks over the course of a year and we will make it an even $1000.

Show em’ the sink!

I know some of you are secretly cringing because you spent way more than three or even six thousand on dining out last year. This is a judgement free zone. We are here to help. You just have more opportunity to save! Start with an immediate 15% discount on many (and soon to be rapidly declining) restaurant meals. And enjoy the further benefit from having your children rarely hearing  the phrase “I will be your server for this evening”. They need the gift of responsibility and can get up and get their own water when they need a refill.

This one slight change in behavior nets you $1000 a year and comes with a free side of humility for the entire family. A $1000 here and  there starts to look like a tuition payment and there are lots of easy ways to save big money.

Paying for Private School French Country Kitchen

Paying for Private School French Simulated Country Kitchen- comes with reading materials. How many restaurants do that? Don’t worry, we bought those chairs used.

Don’t complain. Build.

In November of 2016 Mr. Money Mustache (required reading) retweeted a post by Elon Musk that said “Don’t complain. Build”.

Create, design, join or invent a way to make your situation better. Is your local school system mediocre and you can’t afford private school? Get involved and improve it.

Us amateurs work really hard to create something pretty mediocre only to have to do it again. And again. I had to install the disposal in our kitchen three times before I got it right. This is 30 minutes of work for an average plumber. It took me two weekends. I don’t care.  Honey badger doesn’t care either. It works, it has been there 5 years and I saved $300 in labor. Plus, I prevented a plumber from having to do something basic. And I *really* know a lot about disposals now. When it had a problem last month I was able to fix it really quickly

caption2

By JanekpfeiferOwn work, CC BY-SA 3.0, Link

without a reference manual. I even remembered where the stupid screw that came loose was located. How could I not after spending 20 hours under the sink looking at something with only 3 parts?

Critical thought is an important skill. Identifying what is wrong and how things could be better is important as well. But this must be followed up by action. Repeated attempts, slow progress actions is the grit of making stuff go. Posting a complaint hidden as a comment revealing how insightful you are doesn’t actually do anything.

Don’t complain.

Build.

Did you know you can get paid $5000 for wearing a pair of sandals?

Your feet are powerful tools of awesomeness.  Many folks know that walking and biking are ways to save stacks of cash.  There is a second foot power that is equally as impressive.

Unleash the Feet

Did you know the human foot has over 125,000 sweat glands? This is the highest concentration anywhere on your body. This is often described as a defect or problem. You dear reader are frugal and efficient so you already know why they are there- it’s the only part of the body that moves in a hot sunny day or inside a hot home with no breeze at all. Your do-it-yourself movement creates the  do-it-yourself cooling breeze.

feet in sandals to pay for private school

Sandals

Of course this is because the foot is mean to be bare and out there. And a great way to stay cool in summer is to get a pair of sandals and wear them around all the time. By doing so ourselves we found (after a two week adjustment period) we were just as comfortable with the air conditioning set at 82 (27 Celsius) degrees as we were with shoes on at 72 degrees (22 Celsius).

Apply Your New Found Super Power

One can save 3% on your AC bill for each degree you crank it up. That is 30% savings on your bill in the summer months! We have found it’s better – the AC didn’t turn on at all – often for an entire week with our newly discovered foot cooling super power.

In Santa Clara this is about $500 bucks over the course of the summer. Think you can make a set of sandals for the family last ten years? Good. It will net you in $5000 in actual savings. And this will be about $7500 in income you won’t have to earn over that time.

The Trick

For this to work there is a trick that took as while to figure out. And this is to wear sandals outside all the time. If you don’t your closed shoes will be puddles of discomfort and your core body temperature will rise. And tossing the shoes off at the end of the day in a fairly warm house is of little relief as it is too late. The trick is to stay cool *all* day by using your super powerful and amazing feet and then rake in the savings.

$200 bucks in sandals yields $5000 in ten years that can go towards tuition. That is 25 fold return on investment or an annual return of 90%. Try to do that in the stock market!

Bonus

As an added bonus you sandaled feet will now take you, in comfort, to other locations. You can turn off the AC and not start the car. You can walk to these things! And while Tesla’s are great, a pair of strap on sandals can make you an instant environmentalist with little upfront investment and increase your health as you work your system. Go you hippie!

And this is not new technology. For further reading check out the 22 verses about sandals in the good book.

And for next winter? No problem – just put an UGG on it!

Increase your food expenses!

Food is  a big portion of household spending. You probably think you want me to cut expenses drastically here as well. Nope.

You have enough income to consider private school so most likely you have a two income household where everyone works in competitive and draining jobs. And now I am asking you to think about cutting costs and to take regularly repeated actions. This takes a lot of energy and a clear mind.

Going for the pancakes instead of an egg white omelet with mushrooms and peppers because the pancakes are a fraction of the cost makes sense right?

Not always. Paying for private school means developing your children to their full potential. And that applies to you as well. Some things make sense to pay more for and actually ending up costing less in the long run.

Pancakes, for example, can cause a temporary spike, and insulin rush, a crash and then a fuzzy fog hours later. We need you to have steady and calm energy all day and then in the evenings, after a long commute, feeling like you could be productive. That way you will have enough energy to do some money saving record keeping after a full day at work. Slow and steady wins this race. Eat whole foods.

You will find your food costs might go up a little but your energy levels become a steady fire once you drop the spikes associated with sugar and ultra refined flours. Soon enough, after a ten hour work day followed up by dinner and dishes, more work will be quite simple and enjoyable. This is an investment in yourself, just like private school is an investment,  and will soon pay for itself many times over as your steady energy enables you to do more.

Don’t worry. You come from a long line of people who worked from dawn until dusk six days a week.  All you need to do is eat like them. Don’t eat anything your great

grandmother didn’t eat. If the dish appears to be traditional eat that – most likely it is mostly vegetables with a protein mixed in and sometimes a whole grain. Do this for a week for each meal and prepared to be amazed.

And when you are outside your dwelling some evening because there is something you need to do to save money and because you eat well you will have the energy to do so. You will invariable notice the soft glow in the windows nearby just sitting around being passively entertained. At first this will be alarming. Eventually you will realize you are playing a game where only a few are even showing up to participate.

 

 

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.

Simplicity

Years ago a statement from Bruce Lee about punching stuck with me as a good life philosophy.

“The height of cultivation is really nothing special. It is merely simplicity; the ability to express the utmost with the minimum. It is the halfway cultivation that leads to ornamentation.” – Bruce Lee

Bruce Lee

Bruce Lee

This same philosophy applies to paying for private school. Your child’s education isn’t about social status, fancy sweatshirts, a beautiful campus or a list of college admissions lists. Those are at best artifacts of a private education but more likely are distractions. They aren’t the purpose of an education.

Keep your specific purpose for sending your child to a private school in mind. It might be very different than my purpose. And that is OK as everything else is a ornamentation.  Your success on this endeavor will help both your child and the broader community by educating its citizens with a diversity of thought.

 

You can do this.

 

“It is not a daily increase, but a daily decrease. Hack away at the inessentials.”
― Bruce Lee

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.

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