Finally...

... we bought laminate flooring for "Rover's Room". Last November, our not so tiny kitten Rover had dug a hole in the carpet near the door. We had been meaning to replace the flooring in that room ever since, but had postponed it month after month.
It wasn't lack of money, more a lack of urgency. We kept telling ourselves that there was no rush, and really there wasn't. We covered the spot with a sisal scratching mat to prevent the hole from getting bigger and to provide Rover with something that was better suited for his little claws. And in the end, it is our kitten's room where he spends the day when we are at work so that he doesn't get into trouble or hurt himself (he's clumsy) and to give our other older cat a much needed break from the little bully. But now "Rover's Room" is awaiting a little bit of a re-purposing as in February a new (human) family member wants to move into that room - it is the nursery after all!
Another factor that lead to us postponing the flooring was that we were undecided about what kind of laminate flooring we wanted. We read reviews, got samples, tested the samples, and considered prices and availability. (I am sure the husband will go into detail about that in a later post.) But a couple weeks ago we made a decision and the husband is eager to start on this new project :) but the installation probably has to wait until Thanksgiving. But that's ok, no rush, right?

Two years later ….

Two years after moving into a brand new home, this is a good time to reflect.  

Major Life Changes:

• We have adopted a kitten.
• My wife has nearly graduated from school (finishing her last dissertation credits now).
• I have changed degree plans (and majors). 
• And the wifey has a real job besides what used to be just an on-campus job.

House Changes:

• We've furnished it nicely and rearranged it as well. This took some serious time and incentive as we had family from out of the country coming and we wanted to make sure they were comfortable and that everything was within our price range. 
• This coming month (or next at latest), we’ll be posting before and after pictures of new laminate flooring in one of the bedrooms. Our kitty decided he didn't want to see carpet anymore and he was upset we spent 8 hours away from home...  
• And another nice improvement, although somewhat trivial was a garage door opener and no longer fearing of some break-in, theft, or someone just keeping an eye on us.

We've also had some repairs:

• Our AC motor blew, this would have been a several hundred dollar fix, but luckily it was still under warranty and consequently, cost us nothing. 
• And just recently, which I can’t ever recall happening in any of the past homes I've lived in, a light switch blew.  Luckily I have 2 spare switches since we swapped them out with electric timers (which we absolutely love), but regardless, it would have only been a couple of dollars.

Financial changes:

• We are still on track to have all of the interest paid off by the end of the year. This was a huge undertaking as I haven’t been paying interest on my loans for some time now since they are on deferment. This wouldn't even be remotely imaginable if it wasn't for my wife’s new job.
• Also, we are saving money for retirement! Currently we’re just trying to put back about $250 a month. I've spoken to many people about how to invest money, along with read MANY books and they all have such interesting perspectives.  So far, the best take that I have is this: diversify and try to keep costs low. How? Well, I’m currently investing in mutual funds, and I suspect that is what I will always invest in. Currently I've invested in core-large cap funds with very low costs and in due time, I’ll invest in small cap, international, bond (mutual funds), mid cap, etc.  Why own 1 stock or bond, when you can own MANY. Keeping the risk to a minimal, that’s the key.

What lies ahead:

• Making the back yard look nice, which is very very challenging in Texas if you refuse to water every day...

Brrrr.... Fridge Temperatures

In an effort to try to save some dough (pun intended) during these dog days of summer, I turned to the fridge. :-). Normal people, like myself, buy a fridge and turn it on and never even think about the temperature that the fridge is set at until, perhaps, you realize that food is spoiling. So I began a search to find out what the best temperature is for the fridge to see if it is set too high or too low.

You would think that just a few degrees difference wouldn't really matter very much, yet it does. Too warm by just a few degrees and your food will begin to spoil, bacteria like Salmonella, E. coli, and C. botulinum will grow, mold will flourish, and just bad things overall will happen. Yet too cold, you begin to waste energy (think about your home thermostat and how a few degrees will save you 10% of your energy bill),and your food will freeze resulting it going bad quicker because it's not preserving the food.

So from what I have read and researched the temperature for the fridge should be set somewhere between 0^oC and 5^oC (or 32^oF and 41^oF), with the best being around 3 or 4 Celcius. The variations really come from who you are asking and probably your lifestyle. For those non-scientific folks, the people at howstuffworks say between 35 and 38 degrees F (1.7 to 3.3 degrees C), but the food and drug administration recommend that your fridge be at or below 40^oF or 4^oC.

For those of you who are prone to power outages, it's good to know that if your home loses power and your fridge is at 4F or higher for less than 2 hours, the food will still be safe to eat according to the FDA, as long as you don't open the fridge constantly :).



Sources:
Australian food authority:
http://www.foodauthority.nsw.gov.au/science/science-in-focus/home-fridge-temperatures/
FDA:
http://www.fda.gov/ForConsumers/ConsumerUpdates/ucm093704.htm http://www.fda.gov/Food/ResourcesForYou/Consumers/ucm253954.htm

Net Debt- July 2011

Student loans: -$77,809.34
Car loan: -$3,836.49
Revolving Credit card debt: $0.
Mortgage: -$139,228.54

Net Debt: $220,874.37


It has been several months since my last net worth update and you'll likely see some dramatic changes that have happened in these numbers. So, let me explain a few things from top-down.

The student loans have been on deferment so I haven't made any payments to those; however, I have another 4 years or so left in school. So I will likely try to pay off at least some of the higher interest loans that are sitting at 6% and of course pay the interest while in deferment so it wont get added into the total again once I graduate.

Next the car loan. I was a naughty boy; I got into an accident and it was my fault and sadly, I totaled my beautiful car. Although I was starting to save for a new car, I didn't have enough saved at the time to purchase a car, hence the car loan. The car we did purchase though, I did extensive research into in regards to recalls, overall cost of ownership, mpg, etc. and will hopefully last a long time and save us some substantial money (over the life of the car) as the previous car was a gas guzzler. Likewise, you can see the loan amount is small, I'm hoping to have it completely paid for by the end of this year. Once it has been paid for, I will begin the process of saving for another car, hopefully save $12,000 or more and get a reliable car when needed.

Lastly, we purchased a home! Yay! We love our home and the mortgage principle and interest is actually less than the rent, however because we only did 3.5% down, we have a larger monthly than our rent due to the taxes, escrow and insurance along with all of the other prepay things. :-(

I am a bit disappointed with myself because we didn't pay 20% down, but I'm not sure when we would be able to save 20%. The home we purchased, as you can see wasn't an overly expensive home, and we plan on living here for AT LEAST another 5 year or so until my wife and I both finish our Ph.D.'s. Afterwards, we are hoping that we'll both be able to find a job locally, however, we are prepared, if necessary to sell and move.

However, I don't care much because we now have the freedom of doing what we want in our home. It is an energy star home (I'm too green not to go energy star) so our utilities seem to be staying around the same even though there is a lot more space in the home than the apartment.  We've also retrofitted in water saving devices into the home like the aerators and shower heads which  you can see all of those things in my previous post on how to save money, water, and the environment.  Likewise, because it is my own home I can do a lot more car repairs and maintenance at home saving us additional money!

What is a safe temperature for the hot water heater?

We have all heard of the advice to "lower the temperature of your hot water heater to save money." Perhaps you've read it online or maybe a friend or family member advised you. But my wife recently brought up the idea that it could be dangerous to do this for your health. While you may no longer scold you from burning hot water, you may get some bacterial or fungal infection due to an increased growth in the now warm (no longer killer), wet, dark tank that is your hot water heater.  So I determined it was my job to find the truth!

The answer to is it safe for you to lower the temperature is - it depends.  Below is information from the European Guidelines, OSHA, and Shriners Burn Institute to help inform & guide you.

It appears to me that at 60ºC (140ºF), everything is killed off rather quickly and is generally recommended by everyone, however, you risk getting burned in under 5 seconds.  Even OSHA can't make up their mind on what to recommend as you'll see below; so the question remains what will I do?

120-125ºF. This temperature wont scald us and we don't have a weakened immune system that would make us prone to falling ill easily. This temperature is also recommended for when you have children to help protect them. (Random side note: Temperatures of 60ºC or higher cause gradual erosion of glassware in a dishwasher.) Also, at 125ºF, while it may not kill bacteria, it likely wont encourage bacterial growth, which is good enough for me since the cold water will still likely have bacteria in it anyway. Lastly, temperatures above 60ºC encourage limescale deposits and since we live where the hardest water in the country is, I try to prevent it as best as I can. However, I do use the water booster on the dishwasher so that the dish detergent works at its optimal temperature.

So my question to you is, what temperature do you have yours set to?  After reading this, do you plan on changing it to a higher or a lower temperature?

Two more additional random side notes: From energysavers.gov "For each 10ºF reduction in water temperature, you can save between 3%–5% in energy costs." and even our own power company recommends that we keep the water heater tank at 120ºF.

Caution:Below is for the nerds like me who want to know everything.

---

Here are some facts that you should know about water, burns, and the human skin from Shriners Burn Institute:

Likewise, the most dangerous bacteria mentioned (or that I could find) in regards to water heater is the Legionella. The name came about from an outbreak in July of 1976 from a hotel where there was a convention from the American Legion when this mysterious disease made 221 people sick and caused 34 deaths. 

Here are the facts about Legionella (USA suffers from between 10,000 and 50,000 cases each year, mostly being sporadic cases not associate with outbreaks) and how temperature affects it and the typical water heater colored in yellow and typed in bold font:

Temperature range	Effect on Legionella
70 - 80ºC (158-176ºF)	Disinfection range
66ºC (151ºF)	Legionella will die in 2 minutes
60ºC (140ºF)	Legionella will die in 32 minutes
55ºC (131ºF)	Legionella will die in 5 to 6 hours
50 to 55ºC (122-131ºF)	Legionella can survive but do not multiply
20 to 50ºC (68 - 122ºF)	Legionella growth range
35 to 46ºC (95 - 115ºF)	Legionella ideal growth range
Below 20ºC (68ºF)	Legionella can survive but are dormant

Likewise for other bacteria in general from the foodsafetysite:

74ºC (165°F)	Most bacteria die; some spore-forming bacteria survive.
60ºC (140°F)	No bacteria growth; some survive.
59ºC (139°F)	Danger Zone.
52ºC (125°F)	Some bacterial growth; many survive
37ºC (98.6°F)	Body temperature - Greatest bacterial growth and toxin production by some.

---

This is what European Guidelines for Control and Prevention of Travel Associated Legionnaires’ Disease (page 54) has to say on the matter:

It is recommended that hot water should be stored at 60°C and distributed such that a temperature of at least 50°C and preferably 55°C is achieved within one minute at outlets. Care is needed to avoid much higher temperatures because of the risk of scalding.

OSHA or the Occupational Safety & Health Administration also has two important pieces about the disease:

Q. Can Legionnaires' disease be prevented?  

A. Yes. Avoiding water conditions that allow the organism to grow to high levels is the best means of prevention. Specific preventive steps include:

• Regularly maintain and clean cooling towers and evaporative condensers to prevent growth of LDB. This should include twice-yearly cleaning and periodic use of chlorine or other effective biocide.
• Maintain domestic water heaters at 60°C (140°F). The temperature of the water should be 50°C (122°F) or higher at the faucet.
• Avoid conditions that allow water to stagnate. Large water-storage tanks exposed to sunlight can produce warm conditions favorable to high levels of LDB. Frequent flushing of unused water lines will help alleviate stagnation.

Q. Do you recommend that I operate my home water heater at 60°C (140°F)?  

A. Probably not if you have small children or infirm elderly persons who could be at serious risk of being scalded by the hot water. However, if you have people living with you who are at high risk of contracting the disease, then operating the water heater at a minimum temperature of 60°C (140°F) is probably a good idea. Consider installing a scald-prevention device.

Money saving tips for heating and cooling using Energy Star

Energy Star appliances have become a common place in today's world.  Most people would really have to try to NOT have an energy star appliance or device in their home today. So let's see what makes a device an energy star one!

What is Energy Star?
According to www.energystar.gov, the energy star label is a:

...trusted, government-backed symbol for energy efficiency helping us all save money and protect the environment through energy-efficient products and practices.
The ENERGY STAR label was established to:

• Reduce greenhouse gas emissions and other pollutants caused by the inefficient use of energy; and
• Make it easy for consumers to identify and purchase energy-efficient products that offer savings on energy bills without sacrificing performance, features, and comfort.

One of the best features of the ENERGY STAR label is the fact that once they have the market share of products, meaning once there is 50% or more of an ENERGY STAR device under one category, they revise the specifications and raise the minimum efficiency standards, they impose harder performance and quality standards, etc.  Yes, in a way, that could make your device no longer ENERGY STAR, however, that makes the field grow ever better in terms of efficiency, quality and makes the world a better place. 

Currently some of the biggest bills out there that a person has is from the heating and cooling of a home accounting for approximately 29% and 17% respectively.  Following that is the water heater (14%), appliances like the refrigerator, dishwater, and clothes washer/dryer (13%), lighting (12%), electronics like the TV, DVD player, computer etc (4%) and of course, the 'other' category like the ceiling fans, home audio, vent fans, etc (11%).

The heating and cooling of ones home is by far the most expensive parts of ones budget and there are some simple ways to save a few bucks without buying a new, more efficient device.  However, if your device is more than 12 years old, replacing it could save you 30% off your bill which would result in a pretty quick payback period!  To be an energy star device you need to have a Seasonal Energy Efficiency Ratio (or SEER) and an Energy Efficiency Ratio (or EER) of 14% more efficient than standard models.  Here are some tips to help save money!

1. Change your air filter regularly (preferably every 3 months) a new filter allows the air to flow easier and the system work less, saving you energy. Likewise, a clean filter will help keep the air cleaner in the home because dirty air wont be circulating around. I recommend getting a 3M Filtrete filter, they are capable of filtering out bacteria, pet dander, smog, mold, smoke and just about everything that isn't good! I like 3M because their products are top of the line and if you can filter smoke, then everything else will get filtered as well.
2. Tune-up your HVAC yearly. Your car needs a tune-up, why wouldn't your heating/cooling system? This should be done by a professional.
3. A programable thermostat will save you money. These typically will pay for themselves very quickly as you can tell it to raise/lower the heating/cooling while you are gone and when you return so it's like nothing ever happened, except a lower energy bill.  ;-)
4. Seal & Insulate the heating and cooling ducts.
5. Insulate your home!  Not having a tightly sealed home is like leaving your windows open.  A home energy inspector should be able to tell you where your home is lacking insulation along with many other tips and look at your home as a system instead of individual pieces.

MCC requirements in Texas...

While purchasing a new home I discovered a few incentives that I thought, at first, I was eligible for. Therefore, for those of you who are now in the market, I'd like to show you a few things that may put a few bucks in your pocket or keep them there! 

Mortgage Credit Certificate, or better known as the MCC program...

"Allows the homebuyer to claim a tax credit for some portion of the mortgage interest paid per year. It is a dollar for dollar reduction against their federal tax liability."

~http://www.tdhca.state.tx.us/homeownership/fthb/mort_cred_certificate.htm

The great thing about this is that while it doesn't save you money, it does extend your salary up to $166.66 per month or $2,000 per year! Who doesn't like having an extra 2 grand in their pocket?!?

So, who's eligible? That's the tricky part, the rules aren't too complicated, but they are strict and the household has to be in a low-income bracket to begin with:

• The household has to meet income and home purchase requirements; 
• For Texas, it can vary by place, but frequently what I've seen the complete household has to be 80% below the statewide median income or an area of chronic economic distress.
• To find out what the median income is go to this website: 
• http://www.ffiec.gov/geocode/
• Enter the address and click on the "Get Census Demographic" on the bottom and you'll find the Median Income Family
• Have not owned a home as primary residence in the past three (3) years;
• Meet the qualifying requirements of the mortgage loan;
• Will use the home as their principal/primary residence. 
• Sadly, this wont work for those of you who wish to rent the home out. :-(

Some of the costs associated with this fee is a $75 non-refundable MCC Commitment Fee & 1% origination fee.

Granted that 1% origination fee could cost several thousand dollars, but keep in mind that this MCC credit is for the LIFE of the mortgage. In other words, it's possible that within the first year or two that you'll make that fee back and then the rest is free money from the government!  

Lastly, an important part of the MCC rate is that it varies by how much your home costs in Texas, so lets see what the limits are: 

• 30% of the annual interest paid on mortgage loans under $115,000 
• 25% of the annual interest paid on mortgage loans between $115,000 and $140,000
• 20% of the annual interest paid on mortgage loans between 140,000 and $210,375

There is also a cap on the program so I highly recommend applying for it as soon as possible, so that you'll be able to receive the funding, because once it's out of funds, it's out!

Example:

Let's say you want to buy a home in the medical district of San Antonio, TX.

1. I googled apartments near the medical district of San Antonio, and found the Villas of Oak Creste. 5315 Fredericksburg Rd 78229

2.  I went to http://www.ffiec.gov/geocode/ and typed in an address 5315 Fredericksburg Rd 78229 and found the MSD, Tract code, and most importantly, their demographic data:

3. I took their 2010 Est. Tract Median Family Income: $57,627 * 0.80 = $46,101.60 so everyone who lives under your new roof would have to have a combined income of less than $46,101.60 per year.

Therefore, lets say you and your wife combined make $45k, great, you've never owned a home and you're preapproved for an FHA loan. Great! You'll probably qualify for this credit!

Now how much will you get from this credit?

Lets say your mortgage is $140,000.00 with an interest rate of 4.75% (you after all have an amazing Credit Score right?), with 25% from the MCC Credit, you'll probably have an additional $1,662.50 yearly added to your salary or $138.54 per month!

Mortgage Amount:	$140,000.00
Interest Rate:	4.75%
Total Interest Paid First year:	$ 6,650.00
Mortgage Credit Certificate Rate:	X .25
Tax Credit Amount:	$1,662.50 $2,000 (max)

The major disadvantage to this program is that it counts everyone's income. My wife who isn't even a citizen, currently working as a student on an F1 visa, her stipend counted placing us just a couple of thousand dollars over the income required. I was disappointed. 

Readers, have any of you applied for the MCC? Received it? Tell me about your experience with the MCC, I'd be glad to hear about it!