Simple, Amplified

Maybe my mind isn't as sharp as it used to be, but lately I've been feeling overwhelmed by complexity.  Most of the complexity surrounds my finances.  I have too many accounts, and Quicken is no longer reliably downloading my transactions.  I've been working hard to streamline things.

Financial

I had two credit card accounts that I rarely used.  I called Citibank and converted one of those cards to the Double Cash Card.  I like how straightforward the card is:  I get 1% cash back when I make a purchase, and 1% back when I pay my balance.  I closed the second card completely.  Soon I will close my Chase Ink Business card.  Now that I can ean 2% cash with my Citibank card, the only benefit of the Ink card is the 5% cashback on office supplies and cell phone bill.  That isn't worth the $95 annual fee.

Clutter Control

We are working hard on getting rid of unnecessary material things.  I don't like to be distracted by my belongings.  This includes the wardrobe, where I am paring back clothes I no longer wear, decor around the house, which just collects dust, and tools, which I own a lot of from working on rental properties.  Since I have transitioned most of the rental properties to management companies I no longer need a lot of the tools I have come to own.  I'll be donating a lot of things, with the goal of taking everything to a charity drop off some time in July.

Other Areas

Several few months ago I closed out my UPS Store mailbox.  I save a decent amount in fees and no longer feel the need to make a special trip to the store to check my mailbox.  I also got rid of one of my computers.  Finally, I am trying out the Nutrisystem diet to simplify my food choices.  Once I learn proper portion control and develop a habit of eating right, I should be losing weight and will start buying healthier food from the grocery store.  We have been eating out less when we aren't traveling and I hope to continue cutting back on restaurant meals.

My Frugal Miser Files His 2009 Taxes

I wrapped up my 2009 taxes last week. I've been using TurboTax for the last few years and find it's much easier to keep using it year after year since it has an easy year over year comparison tool which I use to spot variances, which could mean I've made a mistake.

I spent about 75 hours this year and just my federal return was 80 pages long. I assume my taxes are somewhat more complicated than average because of my rental properties and mystery shopping.

I am getting a federal refund of just over $6,000. This is great, even though it represents an interest-free loan to Uncle Sam. My tax liability this year and for the foreseeable future will be negligible since I'm not longer at my cush job.

Unfortunately, the day after I filed I received a 1099 that I hadn't even thought about. Now I will have to file an amended return. I wonder if I will still get my refund or if this oversight will cause a delay.

80 pages. That's just crazy! I refuse to pay someone to prepare my taxes. I'm definitely in favor of simplification of our tax code.

My Frugal Miser - Cut Digital Clutter with Free Online Storage

There are several websites offering free remote storage of your electronic files. I am much more comfortable storing my data offsite for a couple of reasons:

1. Security. If my laptop gets stolen, I know my files have not been compromised.
2. Convenience. Often I am at work when I realize I need a file from home. Or I'm going on vacation and don't want to bring my computer. Storing files online means I can access them anywhere.
3. Performance. I'm not a computing expert, but generally the computers I have had have worked better when there are fewer files taking up space.

As a frugal miser, I don't see the need to pay for online storage (even though I'd be willing to pay a nominal amount as this is an invaluable service to me). Fortunately, there are a few places that will store your files for free:

• Microsoft's Sky Drive. I have been using Sky Drive for a couple of years, and I can personally vouch for its ease of use. Since it's from Microsoft, I am comfortable that the service won't just disappear one day, taking my files with it! They give you 25 GB free. It uses the familiar folder structure for managing your files. The only downside I have found is that you can't move or download multiple files at once.
• MediaFire. I haven't used this service, but according to the website, the free version allows you to store an unlimited amount of information. The difference between the free version and the one you pay for seems to be that you can store files larger than 200 MB, your storage page is ad-free, and you can do bulk downloads.
• ADrive. Their "basic" (free) plan includes 50 GB free space. Upgrading gives you similar benefits as MediaFire (no ads). One feature that caught my eye was the search tool. With Sky Drive, I haven't found an easy way to search for files, so it is especially important to keep my files organized, both by carefully using folders and in the way I name my files.
• Photo Sites. You can store your photos with each of the above solutions, but if that's all you plan to store, there are a few free places to park your pics. Since most people like to share their photos, this might be a good venue for you to do that. The major sites I am aware of include Flickr, Google's Picasa, and Shutterfly.

Keeping your files offsite offers many benefits. Since one of my goals in 2010 is to be paperless, this helps me do that while having the peace of mind knowing my important documents won't be stolen. Besides that, I like the portability of accessing my information from anywhere.

I'm Going Paperless

Taxes are due in a few months, though I usually complete mine in February. The thing I hate most about filing my taxes is the mound of paperwork involved. This has inspired me to become virtually paperless in every facet of my life.

As a frugal miser I use TurboTax to file my own taxes, and I manage my daily finances in Quicken. I don't save bank statements since they are generally available electronically, nor do I hoard old receipts - except for higher-ticket items where I will hold onto the receipt until the return policy is void.

I've been moving towards a paperless environment for quite some time, but expect to be 99% paperless by the end of 2010.

Tools needed to go paperless:

• I use a scanner just about every day. I scan receipts for tax deductible items or major purchases. I also scan leases for rental properties and then destroy the originals.
  
• Download a free PDF converter. I use PrimoPDF, but there are several programs out there. Instead of printing a document, ask yourself if having an electronic copy would suffice.
• Invest in a cross-cut paper shredder. These days identity theft is something to guard against. Any paper that does arrive in my house goes to the shredder.
  

Tricks to tame the paper tiger:

• User manuals can be found in electronic form. Just google the item and product/model number and "manual" and you'll usually find a PDF version you can store in a folder on your computer.
• Use the Notes feature on your cell phone instead of sticky notes. Also make use of an electronic calendar. I prefer to have access to important information wherever I am anyway, so using my iPhone for this made perfect sense.
  
• Use the local library instead of buying your books. If ownership is a must, consider an e-reader. I have an Amazon Kindle and have purchased a couple books I wanted to have accessible at all times.
  
• I go a step further by storing important documents online. I use a free storage utility from Microsoft called Skydrive. I like that it is free though moving files around and accessing them later is a little clunky.
• Before clipping interesting articles from magazines, Google the title and save a PDF version instead. Most magazines can be accessed online. I admit I still have a few magazine subscriptions that arrive by mail, most of which herald from my days as a perennial travel when I always wanted something to take on a plane.

I still have some paper, but the most important items fit into a single fireproof file safe. For example, I keep original property deeds, tax records for three years, receipts for major purchases, and a few legal documents. I also keep two files I labeled "Active Mail" and "Save Until the 30th". Active Mail includes things I am waiting for action on such as mail-in rebates. The Save folder is for short-term record keeping. For example, when I completed a balance transfer offer on one of my credit cards I saved the offer paperwork until the terms were listed on my next statement.

The First Step: Assess Your Situation

Before you can become the ultimate miser, you have to know where you are today and where you want to be. Without a map, you'll make a lot of wrong turns and waste a lot of gas. No one likes to waste gas.

Use Personal Finance Software. I am a Quicken user myself. Have been for over a decade. There are other options out there. Mint, for example, is being purchased by Intuit, makers of Quicken. It is purely web-based, which means you can manage your finances anywhere in the world pretty much. Quicken gives me the visibility I need to see how my spending compares month over month, for example. It lets me know when my bills are due so I don't miss any payments, and it tells me in real-time my Net Worth.

Create a Document Titled "2009" (or whatever year it is). This is your free-flowing list of what your goals for the year will be. For example, one of my goals for 2009 was to pay off a mortgage on a rental property. I set that goal a couple of years ago and reached it a full year ahead of schedule. List your near-term (this year) goals, your intermediate-term (next 3 years) goals, and your long-term (lifetime) goals. I think I need $2 million to comfortably retire. That's a long-term goal. I want to add $5,000 to my IRA. That's a near-term one.

List Your Top 5 Money Wasting Habits. Your list needs to include the manageable habits. If you are addicted to crack rock, leave that off this list. It's probably the dumbest thing you could do, but it's going to be hell to kick the habit, so skip it for now. This list should include those things you know you need to stop doing, and are relatively painless to implement. My Top 5 Money Wasting Habits: 1) eating out without a coupon, 2) leaving the ceiling fan (or light or TV or another energy demon) on when I leave a room, 3) running the dishwasher when it's half empty, 4) letting food expire and go to waste, and 5) talking myself into buying that beautiful BMW in my garage. It's become the bane of my existence and it's gotta go. I must have been drunk the day I talked myself into doing it.

These are the Baby Steps. In other words, if you struggle with these things, well... as my dentist once told me, "This might hurt a bit." You better buckle up.