Budget Goals for Part 2 of 2016

With my new austerity measures starting to fall into place, mind you with a few bumps and glitches, I thought it might be good to put down some actual goals. None of these categories will be for a full 12 months, just what I am going to aim for in each short and long term savings goal by December 31st to keep us firmly on track. As DH has a variable income, and I will have one three pay pay period month, I do not anticipate this being a linear path to savings-more a meandering one. We have a variety of buckets of funds and savings set aside already, so this a clean slate savings statement. Almost like a brand new piggy bank, but with ear marked categories already. I'm not implying that our other banks are full, but you get the picture.  

The game is to not touch any of those previously mentioned funds above, hopefully adding to it if things pick up for DH, and successfully meet these categorical targets. Some categories will include savings that might be non cash, such as gift card bonuses or rewards that exchange for something in the category, for instance towards Christmas gifts, or credit towards DD2's activity fees. As some payments or fees may be coming due, when they are paid, I will count towards that category as if it was put in a savings fund. In no particular order, here's the accounts I will be tracking:

Roth	$5,500
Christmas	$1,200
DD2 Activity's	$3,000
DD2 College Fund	$6,000
Get Away Trip(s)	$800
Total	$16,500

Wowser! Putting it down like this, we may be eating beans, rice, and water. It isn't quite as dire as it appears looking at it in one lump sum. I know a good chunk can be whittled down with my third paycheck month. We haven't touched the points on our VISA rewards, and there is substantial there to draw down on either as cash, or through shopping. I'm going to feel the extra 10% of my pretax pay going into my deferred compensation plan as I try and play "catch-up" now that I am 50 and can put aside up to $24,000. I know long term that is the smart thing to do, but means creativity for now. It is very much a stretch though, as to achieve it, DH is going to have to get closer to his historical averages. Cost cutting can only go so far. Earnings have to play into it as well. I'm fearful July might start with a negative balance, but if so, I'll be honest and hold myself to finding out the spending flaw.

I read over and over that savings without goals seems overwhelming and unfocused. Hopefully by seeing the tangibles laid out in front of me, like that first bike or car I bought with my own money, I'll make the better choices. One choice, to drink from the stockpile of wine on hand instead of buying new bottles, is easy to make. And with that, I think a nice glass of white has my name on it.

Household Austerity Measures

I haven't been this concerned about household finances since DH was unemployed for over 6 months back in 2010. He is 100% commission and it has just been painful lately-more than lately. We're likely into our third month of his take home, including his car allowance which isn't really salary, of take home being less than half of mine, and all benefits and flex account spending comes out of my paycheck. This is not the time to get frustrated, though of course we both are. He is working so hard, and spends more time than I think the other staff do following up, and extending high quality customer service, and going the extra mile to treat his customers as good or better than he would want to be treated. There's a lot more to the background-power games between owners and managers, that just catches the staff in the cross fire. While I hope things turn around, and he has his eyes open for other opportunities, it is tough as men get older to find open doors.

What to do to lessen this hopefully temporary lull in our finances? Times like these call for me to bring some austerity measures into our own home budget. We have some commitments that we must follow through with such as the Alaska cruise, show choir, and DD2's choir trip. Bills have to be paid and we have money set aside for the home improvements, though some new furniture that was part of the budget may need to be reconsidered. Other than those, everything else is going to need to be cut to the bones the rest of summer, hopefully getting us through this rough patch and living entirely on my take home. It will mean tough choices for groceries, household, entertainment, and all other non-fixed expenses. I looked at our bills, and our spending patterns and think there should be room for cuts without resorting to rice and oatmeal every meal, though I am not opposed to more of either staple. Second and third thoughts before each purpose will help. If successful, this will mean anything DH does bring home will go to savings, and perhaps I can get us in a better spending groove for the long haul.

Home cooking will be the mantra along with no waste. I also need to keep up the purging and organizing, using up things that are perfectly fine and not waste money on stuff we can get by without.  I'm talking to you bathroom vanity and medicine cabinet, kitchen pantry and underwear and sock drawers! When I do need to spend, I will look for the lowest cost, perhaps not the cheapest, option. It won't do any good to buy watered down dish soap and use three times more, but I might have to settle for my 2nd or third favorite brands on things and throw aesthetics out the window. I need to use my clothes line, and chip away at the gas and electric bill. I have a few children's birthdays, and I will hunt for nice, but reduced price gifts.

As overwhelming as this feels, I am very fortunate. I don't know how single parent families or those living with one income handle the pressure when finances get tight. I have a team and I am racking my brains on ideas to reduce spending. DD is aware, without details, that belt tightening is in order. DH is bringing something home, and while we hope we can put it aside, it is at least there, plus we have savings so no resorting to credit cards for living expenses. I think I will be breaking out my old Tightwad Gazette books, and reading up on ideas from 20-25 years ago, that I probably shouldn't have left behind in the first place. Have you ever applied austerity to yourself? What were your tools to get you through, and did any of them stick with you?