I will be doing most of my shopping this weekend, before the crowds are too big and the selection is good. Then on Black Friday and the few days afterward (preferably late in the evening when it's less crowded), I'll go back to the stores with my receipts and get price adjustments. This way I have what I want to buy in hand, and the price adjustments are just added bonuses. I don't feel like I have to go out on Black Friday, but then I'm motivated to do so.
This article is awesome!! It explains exactly why the house you live in is a liability when most people think it's an asset. But assets make you money, liabilities take your money.
Why would you ever want to pay off your mortgage? But that's a whole different conversation.
I think this post makes a great point. People underestimate the costs associated with owning a home. They don't factor in all the maintenance, upkeep and interior decor that is required of your home. Most people probably don't account for this in their budgeting plans (if they even have a budget). This could get people caught in a tough place, not having the money for the upkeep after they are already committed to home ownership.
With proper planning, couldn't this be a good thing? When you rent you are at the whim of the owner. He should fix things but he might not do it promptly or even properly. Maybe he fixes it himself to save money? Or maybe it doesn't look as good as you would like to. By owning your house you have more choice over how and when things get done.
If there was something I needed at a good price, yes, I've gone out. My family thinks I'm crazy, but it's fun. Unfortunately, can't do it this year since I just had foot surgery.
My relatives buy into the early morning Black Friday rush to the malls (and strip malls, and big standalone stores, etc.). After one too many bad experiences shopping with them at 6am, now I stay home. I hate the crowds, and almost none of the gifts I buy are at those stores offering the huge discounts, anyway. I try to buy handmade or at least thoughtful gifts, so I'm doing online and boutique-only Christmas shopping this year. I don't spend a lot of money, but I seek out gifts that support individuals or the local economy. I admit that this works much better when you live in a big city, but even people in the suburbs can buy thoughtful gifts online without resorting to the mad dash on Black Friday.
My experiences in the past have been as expected, given that it is Black Friday. I usually hit the computer stores with their great rebates. The few times I went Best Buy, people were pushy, but not obnoxious. There was this camaraderie on the outside, given that we were freezing our buns off @ 0300, waiting for the store to open @ 0500. I tried as hard as possible to be kind to the help and not overwhelm them.
I think that as the average Jane has gotten more and more used to technology and they are willing to stand outside for those technology deals, that it brings out the win-at-all-cost shopper.
I created a spreadsheet to help decide if buying a home is affordable. I included some assumptions from a NYTimes article on the "true" cost of home ownership.
Generally good advice. The costs do ad up and people don't necessarily consider having to replace their roof, HVAC eventually. Home maintenance costs will vary greatly depending on the house. An older larger house will cost a lot more than a newer smaller house.
I'm curious though why you figure in replacing exterior doors so often? My front door is the original to our house and its been there almost 25 years and should have 25 more in it at least. I don't think doors really need replacing much. Most doors are essentially just a slab of wood and shouldn't need replacing.
Last year I noticed that, presumably in response to the more desperate retail climate, a lot of stores were advertising Saturday am specials that were nearly as good as Friday's. So I went out to do reconnaissance Friday evening, after the door-busters had gone home and collapsed in exhaustion. Then I went out Saturday morning and bought the things I'd picked out and confirmed to be available the night before. But it was focused shopping - only things that I needed (or at least intended) to buy anyway, things I would have bought at any other time of year and just had the convenient opportunity to get at a better price.
Also, I'm typically only shopping for myself/my household/semi-ordinary things - my Christmas gift shopping/making is often mostly done by Thanksgiving.
I have gotten some great deals by shopping Black Friday over the years ... project TV for $400, laptops for $400, Games for $10, Home Theater for $50, are just a few off the top of my mind. It is cold here in Colorado waiting in line, so it is not for the faint of heart. If you are on a budget, it makes a lot of sense. I have done Cyber Monday as well, but Black Friday is more fun. I usually get about 1/2 of what I wanted.
Stopped going into stores some time ago. The crowds drive me nuts. Also, it's too tempting to just buy random things. I plan, find the cheapest price and mail order. I rarely buy high ticket items (my tv is at least 10 years old) and I don't need $5 toasters.
I don't Black Friday but I DO Cyber Monday. I shop for deals year round and ferret them away for later use. When you get good deals on a regular basis it just doesn't seem worth multiple hours of lines and crowds, fighting for parking, etc just to save a few bucks. I can bide my time and do it from the comfort of my own home instead. I LOVE shopping in my Pj's!
I used one of these clinics last week for an animal bite related infection. It was two hours from check in to check out, but since they opened at 7 am, I was still done before my regular doctor even opened. Not too bad an experience. They had TV and magazines in the waiting room to pass the time.
I will check out the online sales on Black Friday, but other than that I will stay away from the main shopping centers. People from all over the Eastern half of South Dakota come to my town to do their Christmas shopping so I pretty much try to avoid the main shopping districts between Thanksgiving and Christmas (mainly because of the congested traffic). If I really need to go to one of these popular stores, I'll go on a week day.
Thanks for everyone's comments -- and there are even more costs that I didn't detail, like outdoor living space -- decks, patios, and sidewalks.
I'm not really saying that owning isn't worth it (based on what you value, such as a large yard for kids to play or space to grow a garden) but that costs are simply higher than one might think. So, when choosing to buy, it may be wise not to "stretch" yourself for a mortgage when there are so many other costs to consider.
I just bought my first home in March. Though a cozy fireplace seems idyllic, I just paid $130 (the lowest price after price-shopping) to have the annual cleaning and inspection done. After the inspection was completed, they told me about $900 worth of work needs to be done to repair bricks and mortar at the top because water is leaking through. Certainly something to take into account when buying a home, especially if you have an older home with multiple fireplaces.
It is true that it is expensive to own a home, but unless you have an inept or generous landlord, you MUST be paying a lower amount than you would be if you were renting a similar home (or else the landlord wouldn't be making any profit). A SIMILAR home is the key. I pay more in property taxes than I paid in rent for my last apartment, so I don't buy into the argument that "building equity" is always better than paying rent.
I think homes do pay off if you need more space than the typical apartment provides, or if you have need some sort of customization that can't be achieved in an apartment. Though some may disagree with me, renting a small apartment seems like the smartest choice up until you decide to start a family.
Out of curiosity, my teenage daughters and I went out on Black Friday last year for the first time. It wasn't all we thought it would be. Will probably look at the online offers this time around.
this is the most disconcerting post about home ownership that i have ever read. I mean these expenses just seemed to go on and on and what is really unsettling is that you say that you are free from the worst of them all, the mortgage. I dont own a home and after reading this, i think i will have to wait until i become a multimillionaire before deciding to get a place of my own. I am a person that is really in love with the debt free and low expense serene lifestyle and i will think deeply before trying to acquire the "coveted" title of homeowner. WOW!!
I occasionally do Black Friday. I love the festival atmosphere. As long as I go with the intent to have fun and not get too invested, I have a great time, and my Christmas dollar goes a lot further.
My friends(average renters), have no concept of the cost of upkeep. I own and pay less in mortgage then they do for rent. They think I'm making out with big savings. They don't know all the little crap that has to be done or paid for. Great article, I'm gonna email it to them.
I will be doing most of my shopping this weekend, before the crowds are too big and the selection is good. Then on Black Friday and the few days afterward (preferably late in the evening when it's less crowded), I'll go back to the stores with my receipts and get price adjustments. This way I have what I want to buy in hand, and the price adjustments are just added bonuses. I don't feel like I have to go out on Black Friday, but then I'm motivated to do so.
This article is awesome!! It explains exactly why the house you live in is a liability when most people think it's an asset. But assets make you money, liabilities take your money.
Why would you ever want to pay off your mortgage? But that's a whole different conversation.
I think this post makes a great point. People underestimate the costs associated with owning a home. They don't factor in all the maintenance, upkeep and interior decor that is required of your home. Most people probably don't account for this in their budgeting plans (if they even have a budget). This could get people caught in a tough place, not having the money for the upkeep after they are already committed to home ownership.
With proper planning, couldn't this be a good thing? When you rent you are at the whim of the owner. He should fix things but he might not do it promptly or even properly. Maybe he fixes it himself to save money? Or maybe it doesn't look as good as you would like to. By owning your house you have more choice over how and when things get done.
If there was something I needed at a good price, yes, I've gone out. My family thinks I'm crazy, but it's fun. Unfortunately, can't do it this year since I just had foot surgery.
My relatives buy into the early morning Black Friday rush to the malls (and strip malls, and big standalone stores, etc.). After one too many bad experiences shopping with them at 6am, now I stay home. I hate the crowds, and almost none of the gifts I buy are at those stores offering the huge discounts, anyway. I try to buy handmade or at least thoughtful gifts, so I'm doing online and boutique-only Christmas shopping this year. I don't spend a lot of money, but I seek out gifts that support individuals or the local economy. I admit that this works much better when you live in a big city, but even people in the suburbs can buy thoughtful gifts online without resorting to the mad dash on Black Friday.
My experiences in the past have been as expected, given that it is Black Friday. I usually hit the computer stores with their great rebates. The few times I went Best Buy, people were pushy, but not obnoxious. There was this camaraderie on the outside, given that we were freezing our buns off @ 0300, waiting for the store to open @ 0500. I tried as hard as possible to be kind to the help and not overwhelm them.
I think that as the average Jane has gotten more and more used to technology and they are willing to stand outside for those technology deals, that it brings out the win-at-all-cost shopper.
I created a spreadsheet to help decide if buying a home is affordable. I included some assumptions from a NYTimes article on the "true" cost of home ownership.
NYTimes article on home costs:
http://www.nytimes.com/2009/09/12/your-money/mortgages/12money.html
Spreadsheet from above article with relatively high assumptions about maintenance and repair costs:
http://graphics8.nytimes.com/packages/other/business/YM-extra-home-costs...
My spreadsheet including maintenance/repair assumptions:
http://spreadsheets.google.com/ccc?key=0AsEhylSHZTJUdEUxaWVwZHdnakg4VXlK...
Generally good advice. The costs do ad up and people don't necessarily consider having to replace their roof, HVAC eventually. Home maintenance costs will vary greatly depending on the house. An older larger house will cost a lot more than a newer smaller house.
I'm curious though why you figure in replacing exterior doors so often? My front door is the original to our house and its been there almost 25 years and should have 25 more in it at least. I don't think doors really need replacing much. Most doors are essentially just a slab of wood and shouldn't need replacing.
I am not sure whether I will "do" Black Friday or not, but I am tempted by some of the deals . . . we'll have to wait and see!
I just placed a small order - fun stuff! If it gets here for xmas, cool; if not, then I'll use for something else :) Thanks for the post!!
Last year I noticed that, presumably in response to the more desperate retail climate, a lot of stores were advertising Saturday am specials that were nearly as good as Friday's. So I went out to do reconnaissance Friday evening, after the door-busters had gone home and collapsed in exhaustion. Then I went out Saturday morning and bought the things I'd picked out and confirmed to be available the night before. But it was focused shopping - only things that I needed (or at least intended) to buy anyway, things I would have bought at any other time of year and just had the convenient opportunity to get at a better price.
Also, I'm typically only shopping for myself/my household/semi-ordinary things - my Christmas gift shopping/making is often mostly done by Thanksgiving.
I have gotten some great deals by shopping Black Friday over the years ... project TV for $400, laptops for $400, Games for $10, Home Theater for $50, are just a few off the top of my mind. It is cold here in Colorado waiting in line, so it is not for the faint of heart. If you are on a budget, it makes a lot of sense. I have done Cyber Monday as well, but Black Friday is more fun. I usually get about 1/2 of what I wanted.
Stopped going into stores some time ago. The crowds drive me nuts. Also, it's too tempting to just buy random things. I plan, find the cheapest price and mail order. I rarely buy high ticket items (my tv is at least 10 years old) and I don't need $5 toasters.
I love bargains and am willing to wake up ridiculously early for them. Not logical, but it's quite fun.
I don't Black Friday but I DO Cyber Monday. I shop for deals year round and ferret them away for later use. When you get good deals on a regular basis it just doesn't seem worth multiple hours of lines and crowds, fighting for parking, etc just to save a few bucks. I can bide my time and do it from the comfort of my own home instead. I LOVE shopping in my Pj's!
I think it is fun! I always have gone out. The atmosphere is fun and the deals are worth it for a couple hours at least.
I used one of these clinics last week for an animal bite related infection. It was two hours from check in to check out, but since they opened at 7 am, I was still done before my regular doctor even opened. Not too bad an experience. They had TV and magazines in the waiting room to pass the time.
I will check out the online sales on Black Friday, but other than that I will stay away from the main shopping centers. People from all over the Eastern half of South Dakota come to my town to do their Christmas shopping so I pretty much try to avoid the main shopping districts between Thanksgiving and Christmas (mainly because of the congested traffic). If I really need to go to one of these popular stores, I'll go on a week day.
Only if I see something I want in advance - or if I go with my Mom for fun. Otherwise, it's all online shopping for me!
Thanks for everyone's comments -- and there are even more costs that I didn't detail, like outdoor living space -- decks, patios, and sidewalks.
I'm not really saying that owning isn't worth it (based on what you value, such as a large yard for kids to play or space to grow a garden) but that costs are simply higher than one might think. So, when choosing to buy, it may be wise not to "stretch" yourself for a mortgage when there are so many other costs to consider.
I just bought my first home in March. Though a cozy fireplace seems idyllic, I just paid $130 (the lowest price after price-shopping) to have the annual cleaning and inspection done. After the inspection was completed, they told me about $900 worth of work needs to be done to repair bricks and mortar at the top because water is leaking through. Certainly something to take into account when buying a home, especially if you have an older home with multiple fireplaces.
It is true that it is expensive to own a home, but unless you have an inept or generous landlord, you MUST be paying a lower amount than you would be if you were renting a similar home (or else the landlord wouldn't be making any profit). A SIMILAR home is the key. I pay more in property taxes than I paid in rent for my last apartment, so I don't buy into the argument that "building equity" is always better than paying rent.
I think homes do pay off if you need more space than the typical apartment provides, or if you have need some sort of customization that can't be achieved in an apartment. Though some may disagree with me, renting a small apartment seems like the smartest choice up until you decide to start a family.
Out of curiosity, my teenage daughters and I went out on Black Friday last year for the first time. It wasn't all we thought it would be. Will probably look at the online offers this time around.
this is the most disconcerting post about home ownership that i have ever read. I mean these expenses just seemed to go on and on and what is really unsettling is that you say that you are free from the worst of them all, the mortgage. I dont own a home and after reading this, i think i will have to wait until i become a multimillionaire before deciding to get a place of my own. I am a person that is really in love with the debt free and low expense serene lifestyle and i will think deeply before trying to acquire the "coveted" title of homeowner. WOW!!
I occasionally do Black Friday. I love the festival atmosphere. As long as I go with the intent to have fun and not get too invested, I have a great time, and my Christmas dollar goes a lot further.
My friends(average renters), have no concept of the cost of upkeep. I own and pay less in mortgage then they do for rent. They think I'm making out with big savings. They don't know all the little crap that has to be done or paid for. Great article, I'm gonna email it to them.