My Wednesday Pantry-Grocery Budget Strategies

      

Not my Pantry-DH Would have a melt
down if mine looked like this. It's one
 area he is constantly creating order! 

     This is a different kind of weekly menu. Heck, I ever stick to it anyway so thought I'd change my  word focus a bit. I'm shaping up our budget heading into 2022. I want the coming year and the following to be our test to live on my salary alone. That means everything from basics like food and utilities, to optional expenses of entertainment, travel and gift giving should be paid for from my bi-monthly paychecks, with 1-2 3rd check months. We are fortunate to have by this years end, in long term savings enough to cover the following life goals- the rest of our daughters college, set asides for three housing projects; deck, bathroom, and new flooring, plus the miscellaneous repairs, two years of Roth, and even a hold for our contribution to future weddings. It doesn't yet, nor do I think by years end, will there be enough to cover major travel, but I've got a future post to think on that. We have emergency savings of 12 months elsewhere should both shoes drop. If this goes right, every penny DH takes home will be going into savings.

     This means I need to find $150 average per month, $1800 per year in reductions to our spending. On paper, it's a breeze. My commuting costs are drastically cut. I'm trying to plug money holes and reduce purchases coming into the home of non consumable nature. But, we also want to live life and we enjoy some of the finer things, and that' where the  strategize need to come in.

     And as much as beans and rice are healthy and can be tasty, it's not all I want to cook. However, to end the year and start retraining myself for the next two, I've got a strategy for November and December. Both months have a holiday week, and both months have 1-2 people more in the house. I've got some stock up items, but not to the point I wouldn't need to shop. My plan though is to  eat a combination of low cost and healthy food, building up additional  stock items at loss leader prices, and keep a generous $100 extra for the holiday weeks. The grocery shop needs to be at or below $75 per week. It will mean scratch and double portion cooking, and lots of humble meals. I don't mind at all as when it gets chilly those are what I crave. 

Here's a few of our favorite budget meals:

• Soups of course:
• Chicken noodle soup, loaded with vegetables with bread on the side
• Bean and bacon or ham with cheddar cheese biscuits
• Potato corn chowder and bread sticks
• Tomato soup with grilled cheese
• Beef, bean and cheese enchiladas-when made with just beans, DH was luke warm but loved when I added beef and used black beans instead of refried beans.
• Taco Tuesday night-when adding rice and beans, not only is it a filling meal, it yields lunch for several days and even a burrito or two to pop in the freezer for a future lunch.
• Crock pot pasta-loads of variations, but the pizza version was definitely a winner
• Cottage pies-these have become one of DH's favorite
• Chicken, rice, broccoli and cheese hotdish-my absolute favorite
• Turkey meatloaf and roasted potatoes
• Tuna hotdish with cheese
• Egg bakes with homemade muffins-brunch options for Sundays that keeps us filled for the day
• Goulash-I can't help but getting a large batch of this staple, so it serves as lunch for many days as well
• Chili and cornbread, perhaps with rice
• Chicken-vegetable stir fry with rice
• Homemade flatbread pizza with miscellaneous toppings

     These can be recirculated through the month as needed. What's not here is a load of  meat based dishes, but there is protein across the board. I'll spurge on things like beef roasts and steaks, bacon wrapped chicken breasts, and salmon for holiday meals themselves. I'll keep replacing spices, olive and sesame oil, and other things that jazz up humble ingredients. I'll have fun browsing web sites and cooking books and putting a low cost spin on when possible. I figure if I can get in the mindset of shopping, cooking and eating this way during peak holiday season when every store has tempting and expensive treats and convenience, I can easily trim perhaps $50 a month from our grocery budget heading into 2022. I know that many people  spend on average way less than $75 per week, and with larger families, so this feels doable and not painful. Plus, for the end of the year-I'll have my holiday spending surplus.

      It's just one of many strategies to reach that $150 average monthly budget reduction. This will still be $400 for both November and December, but if I reduce to say $350 going forward, even if I keep a holiday splurge budget, I'll trim about $500 annually in groceries. Slowly building stock items will help me as well when I want to do a drastic budget challenge or a no spend week. Are you reducing pricier ingredients from your shopping? What are some basics and some splurge items you keep as part of your regular purchases that both keep your budget low, but food delicious? 

     

Retirement Planning Month 5 of 78

 

      Did you have a good Halloween yesterday? We had a good  group about 5:5, then a big trickle just a few here and there. We live towards the end of a cul de sac and looking down the street, the first  two houses on both sides were dark, so I'm guessing a lot of kids skipped walking down our block to our end of the circle, so half what we've had in more recent years, not counting last year where I just set candy out and kept refilling, with a total of 23. I remember back when my older kids were young, we easily had 75-100, There were a lot of community events this year as well, so maybe Trick or Treating has lost the appeal.  Back to my retirement progress and to recap, my target date is November 26, 2027, give or take a month. If timing is as planned, I'll be exactly 62 at retirement following my husband who should retire four years earlier. My intent is be to post this on the last Monday of each month to November 29th, 2027.Back in June, I figured out if life goes to plan, I am 78 months from retiring. Now, 74. I missed an update in September-well technically missed October, but am fitting this in even though it is the first Monday of November, not last one of October.

     Without going into details as we are all different in terms of income now, income needed, and priorities, I'll note where  we are for at this point for the month as 

• On Track
• Increased Investment Target
• Below Target
• Maintenance
• No Effort

401K: On Track, and both DH and I have met the maximum we can contribute. This should help us maximize cash savings. 

Roth:  No Effort-But is on track with what has been put away. We tend to put into this in a lump sum inthe spring. I need to not to count twice with Savings when we make this shift. .

Pension: On Track

Social Security: Maintenance-as a reminder, we are not counting on social security as part of our plan, so anything we do get will be a bonus to a comfortable retirement. 

Medical Account:  (added category) I contribute automatically 1% of my salary to a Health Savings Account. I also put $1,200 in a medical flex account for pre-tax payment of out of pocket expenses. I'll point out, the Roth account is earmarked for medical expenses between my retirement date, and the date when I have reached my full pension eligibility. I'm researching what other  HSA options might be out there, but so far, what I've uncovered is that the max allowable in a Roth seems to apply inclusively to a personal HSA savings accounts. 

Cash:  Increased Investment close to what we were aiming for, though September and October was a combined deposit. On  a positive note, DH is on board with resetting our 2022 budget to see if we can live 100% on my income alone. He had some ideas of where to plug holes as well.

     These are all still goals for the next few years, but with trying to plan to live on just my income, I've highlighted the areas that are secure/banked. While my goal is that we have 12 months of living expenses banked in liquid funds, technically that is accounted for elsewhere. We'll still try and  do better with liquid cash savings. I tweaked this a bit since originally created in June. 

• Four semesters of college for DD2 (including a study abroad semester though she has earned those added costs herself)
• Bathroom remodel-upstairs
• Bathroom retouch-downstairs
• Bedroom redecorate
• new flooring-upstairs (carpet likely, but I'd love to do hardwood)
• Office redecorate-we did this for no money so far. I still want to paint and pull the old gross carpet. 
• Pull old deck, patio pour, furniture, backyard landscaping
• Supporting wedding costs for three kids
• Two cross country road trips and or 1 plus a cruise
• At least one European vacation
• Mini vacations on years not doing the road trips or Europe 
• Replace my car (though we pay ourselves each month and that would come out of a different account like the boat)

     The mini-vacations will be part of the annual budget, but two cross country and a Europe trip, unlikely unless we determine we will use DH's income. That would be OK though since not a necessity, it would still fit my challenge to see if we can live off just my salary. (Yeah-I know, stretching the challenge a bit as usual.) However, there is a possibility I will be getting a raise-accumulated over the next six years, would be about enough to cover those three major vacations. That's not money in the bank yet, if we want to feed the Roth both this and next April, so won't go on a spreadsheet. That's my wrap up as I move into November, and close to reaching the official 6 year mark.  

     

2016 2nd Half Savings Update

October is done and we added $2,600 to the savings target which stands at $6,300. Hey, only $12,200 from the $16,500 goal she says with a mix of sigh and laughter. We should easily reach $10,000, so considering July started us in negative digits, I shouldn't despair too much. We've decided we need to keep fully feeding the Roth as opposed to college fund. There's a probability she'll go to a state college and as long as we have a years worth in cash, we should be able to cash flow the costs. Last resort would be student loans. There may or may not be any education credits by then so not counting on the tax refunds we got with other two, but we both do a hefty tax deferred savings which will greatly lower taxes now that we both can put $24,000 aside. I'll do a final update in January to this challenge with new targets, maybe in a different format. 

I've been thinking a lot about net worth. Not counting the house, the retirement calculators say we should be more than fine in ten years assuming we keep at our current actions of maxing Roth and 401K. We need more liquid savings though and that will be part of the 2017 goal setting, aiming for a three year cash savings to bridge between DH' s retirement year target and age 67. I want to draw done as little as possible to keep the tax burden low. The Roth won't be taxed as it was funded with after tax money but the 401K's, my pension, and my work sponsored health savings plan will be. My brain gets fuddled thinking all this, but it's necessary. 

Any feedback on my savings goals? Would anyone do things differently in my shoes? What's your biggest financial worry and how are you trying to handle it?

Feeling My Age?

I have been  a participator in a writing exercise via my other blog, Sam and Coffee created just  to hold my writing indulgence. The latest prompt was to write about the age I am now.  As I am now less than three months shy of turning 50, a fretful milestone birthday for some.  I am not particularly bothered by  my age.  I could do without the aches and pains, but manage with as few medications as I can.  No, what bothers me, is the passing of years, and the reality that my "to do" list, will most likely outlive my life.  I'm not talking "to do" list this time in terms of cleaning the oven, decluttering a closet, or vacuuming the stairs.  This list  is more relational to a  bucket list, though not so grand.  Sure, there are those big events I have on my wish list, or bucket list; traveling to far off places, writing a book and actually publishing it,  taking an educational sabbatical, these all rank high.

What matters just as much, if not more, is my truly basic "to do" list. The big moments may be grand and memorable, but the little daily events outnumber 10-1. Stopping on a whim for an ice cream cone with DD#2 when I picked her up from practice, just because, was a good "to do." Sitting with DD#2, showing me her latest project on-line, and hearing more about her new (now official) job, just the two of us in the middle of a Friday morning, allowing my telecommuting morning to be interrupted for a bit, was a good "to do."  In my post today, I decided there was again that link with time and money. You need money for some of the big experiences, but you need time for the ones like hanging out with friends for long afternoons chatting and laughing over cups of coffee. To have the time, means you need to have enough money somewhere to not be spending those same hours earning a living.  It is  a circular treadmill, one that I realize I haven't completely gotten out of. I am probably coming off as contradictory. I say my increasing age isn't bothering me, and yet this pending birthday is stirring up these thoughts. The difference in being bothered by an age, and being reflective of the passing of years, passing of time, is perspective and who you are and how you spend your time-no matter what your age. 

I don't feel 50, but then when I was 21, I didn't feel 21.  What is an age supposed to feel like, anyway? Things are in different places on my body; I creek when I get up.  My fingers don't do what my brain is telling them to do at times, but in many ways, my mind seems younger than it has ever been, more nimble and  if not accepting of different points of views, at least willing to listen. I guess I am saying I will try to strive towards a celebration of 50 years of life. Instead of lamenting about getting older, I want to look forward to how ever many more I have, while not being nagged inside that I'm letting down those that didn't reach whatever age I am. In this spirit, who's up for a party this year?

A Change of Plans

Most  people experience disruptions in their life plans due to unforeseen or unplanned circumstances.  Job relocation or job loss, unexpected health crisis, another child, or an elder parent needing transitional or long term care can put a life course wayward in short order.   I've experienced each of these, and even the joyous one, an unexpected but much wanted bonus baby, put DH and I back on a the couch with pen and paper, outlining new goals and timelines.  I've no direct experience, but have witnessed family and friends that have experiences that were devastating.  Divorce or loss of a spouse or child, meant not only did life plans get put on hold, they were scrapped entirely. 

A local radio station does a feature once a week or so where a listener has a situation that they are uncertain what to do, and they have other listeners call in sharing what they would do if they were in that same place. This young women called because she found a letter in an envelope, addressed to her, but never sent, packed away in a box from seven years earlier.  The letter  was from her then boyfriend, now husband, telling her he wanted to break up as there was no spark, and thought this was for the best. In figuring out the timing, she knew that was about the time she had learned she was pregnant with their first child.  He didn't break up with her and they got married, and  now have two children.  She was now questioning whether her whole marriage was only one of obligation, and if she should bring up the found letter with her husband, to learn whether or not he still felt the same way.  Cutting to the end, she learned he really didn't ever grow to fall in love with her, and was only staying in the marriage until the kids grew up.  Upon reflection, she realized, while they didn't have a bad marriage, she probably has always felt the same way. Her questions now went from should she bring up the letter, to should they even stay married. This young mom has major decisions to make with her husband that impact four people, two who have no say. 

I'm not sure why this story has been so on my mind.  I suppose it has got me thinking about how I would handle a life shocker or wake up call.  Are my hopes dreams, aspirations nimble enough to withstand a major life event?  Would I have the courage to start a new path, or would I fight to hold onto the path I feel I should be on?  I have become a bit of a blog reading addict.  I read blogs from young single people, navigating life in the early stages of their careers.  I love the blogs from 30s something moms, that bring me back to when my kids were young, and I smile when I read their silly stories, and grimace with remembrance when I hear stories of behavior and social challenges with kids.  My favorites blogs are by the newly, semi, and about to be retired writers who have or are in process of forging new paths, and are now independently employed, paid or unpaid, but fulfilled. Depending on how our current planning goes, I am anywhere from 11-16 years from retiring from a "job."  If that could be sped up by figuring a way to  earn enough income to cover our needs and  get out of the daily work grind, that would be ideal. I want to learn from others who have done just that. Realistically with over 4 years of secondary school, and college looming for DD#2, nine years might be the likely target, but then I can't know what life might throw into the mix. 

In my mind, I have lots of ideas and routes for the next 20 years or so of my life.  Some are more concrete, in that I've attached savings dollars and have congruence with DH's ideas.  Some, admittedly, are pretty half baked, but I'll choose to think of them as aspirational, like relocating to the UK.  So what about your stories.  Who either by choice or circumstances has started life anew?  Who has forged a new path, machete in hand, clearing a way forward to the next stage in life?