Money Monday- What I Want Money to Do For Me

     

     I've never understood the mindset of raking in more and more money just for the sake of having more and more money. It is true, money can't buy happiness. However, it's also true that a certain amount of money yields the opportunity to be able to afford things that keep us living life and affording some indulgences that add to the quality of life. I can only speak to my own perspective to where that middle ground is- not amassing wealth or hoarding of money for money's sake, and having enough to live a comfortable life with some creature comforts, experiences, legacy, and bring enjoyment and peace of mind.

    I think most of my readers, give or take a few years, are about in the same age group I am and might be in your retirement planning mode too. I know some of you have made the leap and I like learning from your wisdom and experience on what worked and what you might alter. I want money to do a few things for me. Sitting and growing without boundaries is not one of them. Here's my list for now of what I want our money to do for us now through retirement.

• to last to cover our living expenses proportionate to how we live now regardless of how long we're alive. Of course how we can live at 62 will be different at 92, but I want to know our daily needs are met well.
• used to cover health insurance and expenses at minimally our current coverage 
• be able to still give to people, causes, and organizations that can do good things with our and others money collectively.
• used to give generously to people we love
• be flexible enough that we can hire people with better skills, talents, and vision to get needed projects done that really are beyond our DIY ability. 
• along these same lines, be able to buy higher quality items that last, rather than inexpensive ones that need frequent replacement. 
• be enough to travel, while maybe not at the Ritz, but not requiring hostel stays. (Though I think hostels aimed at older adults might be an interesting experience.)
• pursue hobbies that we might not have time for now, but will post retirement even if they require additional expense or investment. For DH, that's likely golfing and water toys. I really don't know what that might be for me, but want to afford to find out. 

     Those are the things focused on DH and me. Others may scoff completely at this one, but I feel strongly about it. I want my kids to never feel so much financial stress that they don't take calculated changes and new opportunities in their life. Call it the safety net of mom and dad. This does not mean we will pay their bills, and they need to exhaust all means first. But I don't want them ever to have to experience complete destitute and risk of them or their families being homeless or without their basic needs met because they took a chance on a better job, or a self employed business and it didn't pan out. I don't want them to pass on opportunities that are well though tout that have a certain amount of risk or guarantee on a return on the investment either. This safety net needs to be built and maintained without it impacting our own priorities. (This admittedly is an example of privilege I want my kids and future grandkids to have.) 

      I feel like both DH and I had this. Had we really been in a hard place at different places in our life, we had family that no doubt would have been able to let us live with them or provide employment temporarily. (emphasis on temporary) My husband leaving a well paid but dangerous job shortly after DS was born to go to a commissioned base job was a risk we took. Draining our savings to put a  huge down payment on our house because we couldn't get a regular mortgage without doing so, meant close to nothing in the bank should we have had a major expenses elsewhere, was a risk. My going to part time employment and then going back to school, and the high tuition that came with it, were others. This all panned out, but may not have. Health care and being a safety net for our kids is my where I worry the most about the timing of my retirement, right or wrong. 

     What do you want your money to do for you? Do you have parts of your plan that worry you more than others?

Thrifty Thursday

      It's been a  an Ok week on all of my  thrift areas and I I have already written extensively about some of them. I've got a nice fiscal one below to share. I didn't  blog yesterday-nothing interesting happening in my pantry and no new real recipes to share so took a day off. Here's a few highlights  of where I feel I used my time, resources, or money well. 

Time

• Of course listening to my daughter's concert was a great use of my time!
• My daughter came over on Tuesday to listen to the  Chavin trial verdict together. I also had a meeting streaming through my ears through work. It has been an emotional time, and good to be with others in person and virtually.
• A house in a very attractive price range came up for my daughter. I had to drop some things off at the post office and took a swing by. Here it turns out it is adjacent to the house DH grew up in from the age of 14 onwards when his family first moved to town. Let's just say the cute pictures inside and out, were very creatively photographed. DH was well familiar with the house and said it should be a hard pass-was maybe worth 75% of the asking price. Basically it was  a postage stamp size, but with the number of rooms, each would have been  tiny and nonfunctioning. There was literally no lot and a yard is a must for her. My daughter saved the time not looking further and not letting the price pull her towards a house that ultimately would be a huge settle. 
•  Chatted with my son yesterday. He had been on a project "in the desert" for several days doing a commercial. Work is picking up for him, though most in his age group are not yet vaccinated, so all sets have the detailed protocol for Covid in place, and are testing daily. Because his schedule fluctuates, he is hoping the J&J comes back quickly as scheduling the second dose would be difficult with a varying schedule. 
  
• I got all the  put off appointments scheduled for after May 8th, the two week vaccination marker. The exception is hair-I will go in next week for a no frills chopping through the place DH get's his haircut, which is no appointment, but you can check in online, and not wait inside. I desperately need to color my hair again, but want the bad ends and the excess length  gone first. This cut will take likely 10 minutes or less, but I'll go back to my regular place later in the spring. 

Resources  

• I finally cooked up the  bag of dry pinto beans bought last month-the last on an Aldi shelf. It made a massive amount which we had Tuesday with burritos. I sent to containers home with  my daughter, froze two more containers, and will have leftovers for a few lunches. For my first time cooking pinto beans, I think I did ok seasoning wise. 
• While someone would have bought them eventually, I feel good about increasing my daughters wardrobes with second hand items from the church sale, and buying second hand planters for my own use. Saving raw materials is a fiscal and an environmental win. 
• We had multiple leftover meals and so far, minimal food waste. 
• When repotting monster plant, two  arms of growth broke off. I put them in vases of water and they appear to be staying green and should result in a couple new plants. 

Money

• Garage and  estate sale-bam, for the money win! My daughter and I when walking the dog decided we really want to avoid fast fashion as much as possible I know I want a new dress, and it might not yet be practical to  thrift for one as that would require multiple visits, but minimally when I buy, I will make sure it is not so trendy that I don't want to wear for multiple years. 
• Found a dime out walking-was on the ground near where pup did his business. Yeah, I disinfected it before it went in the  Croissant and Baguette fund tin. 
• And the biggie-my daughter received a $1,500 scholarships through a professional organization of which I am a member. She applied both  for her freshman and  sophomore year and didn't get one, so neither of us were expecting. Coincidentally, it is the exact amount of both a fall Cuba trip she is contemplating, or the  extra fee for the specific study abroad program she is is applying to. 

     The message on Monday that she received the award was a good way to start the week. I think it pepped her up her final week of classes before finals and final projects next week. If you remember what that was like, anything to boost energy and excitement when a semester is coming to a close is  good. We splurged on take out once, but it was pretty reasonable and yielded lots of leftovers. I had some donation spending this week as well and happy to do so. Having the good fiscal wins is a reminder of the many blessings I have in life, and the ability to give is one of those blessings.  How has your week been? Any big wins or is slow and steady a winning way? 

Bold February Household and Grocery Challenge

      February starts Monday and it is a nice neat tidy four week month with no lingering days since not leap a year. I decided this was a good month for a very bold Household and Grocery (H&G) budget challenge-aiming for under $350. I'm further challenging myself by deducting $22 for  the cost of two pizza's I ordered and were delivered yesterday, from my great nieces for their dance booster club. These are 26 ounce pizzas so more than enough even with DH's pizza appetite, for a meal each. If you are not familiar with this brand, they started as a company that  sold to  bars and pubs, quick food items where no kitchen was needed and baked in pizza ovens I remember before they were available in stores, people would specifically plan a night out to include a stop at a bar that carried Heggie's. 

     DH did a large household shop three weeks ago, so I'm stretched to think if we need anything related to house or people care, but pup will need dog food, both his canned that we mix, and his jumbo bag of kibble, so this will eat up close to $40. Perhaps we'll need more kitchen wrap, and I do think I am low on my toothpaste and mouth wash, so assume another $10 for all of that. As my self decided rules, if I find a good stock-up price, I'll do so. I'm at liberty to only include the cost of what I buy for the month, and deduct surplus from future monthly budgets. I don't though split the cost of things that last multiple months, like pups dry dog food, or  the mega bottles of shampoo and laundry soap DH bought last month. Oh-TP, I do want to add two multi-packs this month. We opened the  last multi-pack last week, and I want to have a spare. 

     Right from the get go then, I am probably  aiming towards a grocery spend of $260, or on average $65 per week, for breakfast, lunch, dinner, and snacks for two people, and  I'd like to add pantry items back to my stores as well. I don't want to deplete the freezer or pantry, even though I could be even lower if I do not restock. But I want to do both-low spend and restock. Take out meals will be separate, towards the combined entertainment and meals out budget. Regardless, I hope to whittle $250 from my on paper February budget. 

Strategies:

• Meal planning
• Maximizing leftovers
• Increase plant based meals
• Stretch meat (I firmly believe American meat portions sizes are too large)
• Bake snacks-but don't over do this (I'm telling myself)
• Limit junk food/snacks (for my health goals as much as the budget)
• Portion control (for me-DH can eat as he wants)
• Add variety with new recipes/twists on the same old

     What I don't plan is overdoing starchy meals and skimping on fruit and vegetables. I'm also not going to run to multiple stores to chase loss leaders either-likely this will be one large Aldi shop, and supplement only for fresh food, quick in and out. DH will want good football foods for the Super Bowl on February 7th and one of the pizza's will do for that, but will keep an eye to other affordable pub substitutes like haloumi grilled cheese (still have two blocks I'm rationing and they have fall best by dates), and homemade buffalo chicken strips. The Super Bowl is an event to put on the calendars in the dreary month of February and I'm taking advantage of it! I'm debating putting beer and seltzer on the H&G budget as we have neither in the house right now, or putting in the entertainment budget. We have plenty of other liquor though, several bottles of wine, prosecco, vodka, whiskey, and rum, so nobody fear I won't have my occasional indulgence. I'll figure out the alcohol rule as we go along.  

     Your thoughts? Is this more than enough or do you have visions of DH and I eating beans and rice every day or eating every crumb from the pantry? For reference, I  converted the $65 to Canadian, UK, and Euro conversion rates as of  1/29/2021. I have a lovely smattering of readers in other places so would love to her your conversation and if you feel this is an adequate budget.

• Canada-Dollar 83.02
• UK-Pound 47.40
• Euro  53.55

How Much is Enough?

     Do others find themselves asking the questions, how much is enough, more often than you used to? I find I am examining the answer to that question in everything from emergency fund reserves to toilet paper to  washable masks these days. Take for instance moving our daughter back to school.  Her medical kit was to include three reusable, washable face mask, of which the school is providing one. Well, she went back with at least a weeks worth, knowing one may be left behind somewhere, as well as making sure she regularly has a clean one ready to go. I admit that while not doing panic buying on  items like toilet paper, I am making sure I have at least a two multi-pack reserve. Sure it has been available regularly now, if not a great brand selection; But after the insanity of spring that got me down to four rolls before my daughter bought me a pack on her rare Walmart trips, I won't be caught off guard this fall. I find TP commercials  right extremely annoying now-as if we have a choice of brands!

     The old adage of having three months of living expenses morphed into having six months long before the Covid19 crisis. After  seeing that we have passed the six month mark of the pandemic in the US, six months seems too little. Yet, this is so far away from making it a reality, for most families and individuals. I continue to question every non-essential purchase, and even the essential ones like food and clothing, for why I bought what I did. I am starting to truly ask these three questions. Do I need it? If I need it, is there a less expensive and less wasteful version? If I don't need it, will it bring me incredible joy? If I don"t need it now, will it save me resources in the long run? I have had varying degrees of success. Packing our own snacks for the road, a good choice. Ordering take out sandwiches, an expensive choice that added waste. Getting a take out coffee, might give me joy in supporting an extended family members coffee house and meeting up with a friend, but using a non-recyclable coffee cup, entirely wasteful.

     I had an expensive August. The water heater element went out and we either could replace the element/repair for $1400 with no guarantee, or replace the water heater and have a warranty for the life of living in this house. We went with new, but was that wasteful-both financially and  environmentally? We had a leak this week that cost us $700! We had additional items for our daughters move. These things in life still happen, and because they don't come at convenient times, I feel like more than ever I can't let our fiscal guard down. 

     With the exception of disinfectant wipes which I can just use cleaning product and paper towels or rags, I am not too worried about the supply chain this fall. Still I want to replace items in the pantry and freezer as they are used.While Covid was not here yet, though DH seemed to have all the symptoms, I remember how sick he was for four weeks. Should we both get sick at the same time, we won't be going anywhere, and would rather not put anyone at risk, bringing us supplies. Even if only one of us gets sick, the other should stay put as well. I am not stock piling, but I am creating reserves. I want to add dry chick peas and powdered milk to my pantry as a couple staples for so many recipes

     DH's retirement for January 2024 is still on target, and mine as well. if  choose, for July 2028.  We though are a long ways away from the safety net I would like for DH to retire next March comfortably, though I think our quality of life would dramatically improve. Maybe we can make it work sometime earlier than 2024, if not as early as next spring.  I just don't think we have met our personal answer to the question, how much is enough. 

Things to Save That I Take for Granted

I waste a lot of resources. My family wastes a lot of resources. Two problems result in this. Most importantly, we are adding too much to our carbon footprint when we mindlessly overuse something, throw it away before consuming, or don't maximize the life cycle before replacing. Second, all these things come with a price tag. Wouldn't it be better to have those dollars count towards our savings goals? Here is a list of things I know I have taken for granted. As this year ends and 2019  begins, I will strive to rein in spending, use, and  abuse of the these items. 

• Running water. Am I maximizing wash loads, taking brief showers, and not letting the taps run when not in use? 
• Heat and electricity. Do I turn down the furnace temperature in the winter and forego A.C. or use only on the highest setting on the most unpleasant days? Are we leaving appliances plugged in when not in use (vampire electric use) and remembering to turn off lights not needed? 
• Toilet paper, paper towels, other paper products. Spending $42 on Toilet Paper is a kick in the wallet. Not to be gross, but how many squares are really needed? Paper towels, plates, and napkins-try and use only when the alternative is not very conducive to the job. I'm lumping wraps, foil, clings, and baggies into this group as well. Can a reusable container work as well as disposable wraps and bags? If not, can the bag have an additional life? 
• Gasoline. Am I using the most cost effective routes and doubling up trips to not waste miles? With winter here, how long is enough, but not too much to run the car before driving? Do we have enough warm clothes on so that we do not need to crank the heat? 
• Fresh food. I've probably talked about food waste to the point of boring you all, but I know my family takes this for granted. We simply cannot afford though environmentally and financially to let good food go bad, then rot in landfills. We must do better eating what is bought, and freezing leftovers for future meals. 
• Health.  I have my chronic RA, my knee that gives me issues, and boughts of insomnia. Yet, I still have a working body that does for the most part, everything it is meant to do. I need to not waste the health I have with eating junk, being sedentary, and dwelling on negativity. I know I take for granted that I wake up and am able to work, play, and take care of my family. 
• Time. As the year ends, I am looking to where I can maximize my time for spending time with my family, positive social connectedness, effective home management, hobbies that bring me joy, and opportunities to earn additional money. I must evaluate how I spend my spare time to see if it is checking one of these boxes, and if not, realize I am squandering a precious resource. 

What do you think you take for granted? Are you making efforts to change your mindset and behavior? Please share your success and  challenges. 

Watching the Loose Change

I like a good deal and I like getting good value for my money. I'm not patient though to go through adds regularly and match coupons and offers, nor do a invest much time in sourcing the best price for everyday items. I could be better about stockpiling ultra bargain priced products I know will get used. I hope to do more of that over the next year since just recently changing my grocery challenge philosophy from monthly targets to an overall annual target. I appreciate simple meals that are tasty and made with inexpensive ingredients, with occasional splurges. I bring my lunch from home 90% of the time, though indulge DH in his more frequent lunches out and use the school lunch program for DD2. I like to think I am thrifty-not a cheap skate. I like to give generously to causes and the community that I feel make a positive difference. We treat ourelves to the occasional meal out and first run movie in a theater. I like my girls night and a happy hour drink or coffee with collegues. We give gifts to family and friends. Still, I enjoy seeing our savings grow or at least see our money invested into our priorities.To these ends, I look for ways to be frugal, some weeks better than others. Here's a recap of some frugal wins in recent weeks.

• I bought a huge package of chicken drumsticks, I think 13 or 14 in the package for under $5. After dinner, there were still 9 left. Four will be cooked into broth and deboned for chicken noodle soup, and the others for a chicken hotdish. Both the soup and hotdish will yield leftovers for future brown bag lunches or another dinner so potentially as many as 4-5 meals from the package.
• Creative brown bag lunches save me time and money. Before grocery shopping Wednesday night, my kitchen was looking a bit empty, usual lunch suspects missing. I got creative resulting in meals like a melted cheese and apple sandwich on skinny round breads with a makeshift salad of shredded carrots, craisins, and celery. Another day was leftover salad, that I added  undressed coleslaw cabbage to add back some crunch. It takes me just a few minutes to scour what looks like bare cupboards and fridge and create something that will keep me going through the day. It might be at my expense, but  but there is a running joke in the office to guess what creation will appear in my lunch. I say, let them laugh while they are working past 67. 
• I filled up my nearly on fumes gas tank with a $ .15 of per gallon discount, timing it after my grocery shop. $2.10 isn't a fortune but it off set the morning coffee  I had  for a coffee meeting. 
• DH  did the annual maximum contribution on our Roth retirement fund for both of us on Thursday. With us both over 50, we can put $6,500 each. This is after taxes, so once we draw down, we will not face any taxes on the interest earned. It will be important to have some untaxed long term savings to bridge us as needed while I still work and DH retires. This expense was offset with the planned $13,000 from last years savings as part of this years financial priorities. 
• I did an inventory of various gift cards with balances. I'll make a plan on how to use them instead of cash to help top up savings in April and May. We have $15 in Target, $25 in McDonald's, $45 in Green Mill, $25.71 in Caribou Coffee, $10 in NAPA auto parts, $25 in Kohls,  $50 in a local bar and grill, and $25 in VISA. $220.71 that we can use as cash, reserving funds for savings. 
• Discovered in a box I had set aside a shirt I had bought at a rock bottom price in the brand and color scheme our nephew/God son loves. It was bought for Christmas but then we decided to give him a skateboard because at the time, I was stuck for ideas to go with the shirt as not much fun to just get clothes when you are 10. I'll find something to go with the shirt or just give him $11 with some movie theater candy, keeping the average between Christmas and his birthday more in  line with what we might otherwise spend since the skateboard was a bit of a splurge. He is saving for some new sports gear, stuff I couldn't begin to pick out so money would be a good gift I think. 
• Bought DD1's best friend from high school a baby gift combining clearance and Kohl's discount. Baby's do not care if things are previous year fashion. I bought in a 12 month, perfect for next late winter/spring. She knows she is having a boy, so I found Mickey Mouse character clothes and  books (I always give books as part of baby gifts), and spent under $12. I have some spa product to throw in for mom as well, of course bought after Christmas sales. 

There's my recent attempts to watch my funds while still living a full life. It is easier  to save money if a person socially isolates themselves. Granted, when trying to tackle debt and get to a place of norm, it probably is a necessity to pull back from the world, and only focus on not spending. More power to those that are winning that battle. 

Sometimes I Spend

Despite priding myself on being thrifty, saving for the future and special events, I'm not such a tightwad that I am pained to spend at all. The trade-off with both of us working full time is that there are required expenses and times when doing the thrifty thing just doesn't work well. Some of spending choices stem from growing up and doing without a lot of things. While we are/were not super indulgent on stuff for our kids, we spend towards fitting in, participating in experiences, and having memories.

I spent money this week and lots of it on non-necessities. It was a challenging week. While not being total spendthrifts, some of the money spent helped reduce impact of stress. Others were jsut to add to our qulaity of life. Good uses on both accounts.

• A friends mom picked up Jimmy John's for DD2 before concert, saving me from either stopping myself later or packing her something. It made life work on Tuesday.
• DH picked up frozen pizza for after concert as we hadn't eaten, since I was trying to cram more work work in, then had to help do hair at the school. Cheaper than take out, but splurged on a good pizza.
• I ate at partner agency cafe on Wednesday. My meeting schedule was chaos, out of my office, and I was famished. I was able to get a bit caught up on e-mails as there was secure WIFI. They have a decent salad bar, and with a side of cottage cheese and a Diet Coke, the $10 spent was worth it. 
• I topped off DD2's lunch account at school with $60. Occasionally she might bring lunch, but rare because of her hectic morning routine. While I know a home packed lunch can be made for under $2.90, this is a bargain piece of mind that she has access to lunch plus, can pick up something moderately healthy from the ala carte area to eat after school a few hours later when she has an activity but no time between school and when it starts. Often she doesn't spend any extra money from her account because the school lunches are bigger than her appetite so she saves her fruit or anything portable to eat later. 
• This was a while ago, but I finally distributed copies of pictures from DD2's buddy pictures (so wonderful)to the other moms. I could have just made counterfeit copies, but that is wrong to steal the photographer's work and for just $2 a copy, he made as many additional prints as was needed. I had 7 made of one and three of another,so  $20 spent, but priceless photos of all 8 kids. 
• DD2 used to run cross country before show choir got more involved last year. She misses it. She decided to run track this spring. She has a little overlap with show choir, and still with Vocal Jazz, but decided not to do the spring musical this year. So this $150 is just a different expense. She may need a new pair of track shoes as I'm not sure she can just swap out the cleats on the pair she has for a track, or if they are in good enough shape. DH will need to decide this.
• I bought a new suitcase for DH. Our old sets are crap and will be pitched. We've determined we rarely need the big suitcases, if ever, but it makes sense for each of us to have the carry on size that will fit in the overhead bins of an airplane. It is amazing with good packing what you can fit. I matched a few deals, still a bit thrifty, but splurged on the quality and  model for the four wheel spin type that are so much easier to lug around. 

Not always doing without, or feeling like I have to go the cheapest route is freeing. We have a busy lifestyle and indulging in a few conveniences and a few short cuts can make life keep working during the times of most chaos. Still, It is reassuring to know that at any time, I have some skills to implement belt tightening, and even austerity measures if my budget needs it. 

2017 Savings Update-Quarter One is on the Books

Hello, Piggy. Our March savings numbers were greatly aided by a third paycheck for me and a bonus payment for DH. It's hard knowing exactly when his bonus payments come, and how much they will be, but this was a little higher than he anticipated. We always have to plan though that some needs to be set aside immediately, as potential tax bill next year.  We completed our 2016 taxes in March and even with the untaxed bonus payments, we almost broke even, paying in $350+ to state, receiving $800+ federal in return, but paying our accountant $200+, netting when all is done,a bit above $200, enough to cover one of our two nights up north for our nieces wedding. I know many of you do your own taxes, but this is an expense that gives us both tremendous peace of mind as ours are a bit complex (to us at least) with both taxed and untaxed income, and business deductions.

I didn't put any extra cash  into our December account, but $20 Kohl's cash at the beginning of March from DH's shoe purchases went towards DD2's spring clothes haul, and from that I earned another $20, which I used towards some Christmas and birthday gifts, bought early and set aside. I stretched those $20 into a set of four etched wine glasses on 70% clearance, which I will give for extended family gift giving, and two of an item for my girls, plus a birthday gift for DD1's October birthday. All are high quality brands and items, that even if bought on Kohl's sale's plus the usual 30% discounts I get through my card, the amount would have been well over $40. When we bought DD2's clothes, I didn't even realize we would earn Kohl's cash, so a bonus. I spent a grand total of $0.61 on these items. I converted the $40 in Kohl's cash to real cash, as they reduced cash outlay on clothing and gifts. This is part of treating gift cards and bonuses like cash-not as mad money.

March Wrap Up

Annual Savings Goal          $40,417
January Deposits                $ 2,200
February Deposits               $1,283
March Deposit                     $4,901
Perks to Cash                     $      72 
Savings Goal Balance          $31,961



December Fun Money        $     480
January set aside               $       70 
February Set Aside             $         0
March Set Aside                 $        0
Savings Goal Balance         $     410

Granted, without the extra pay checks, our savings would have been in the $1500 area, but these are real parts of our compensation, and we banked, rather than splurged. Because the Roth has to be paid by April 15, I'll have to report a negative dip into savings for April. We decided we are still going to put the max of $13,000 in the fund. I knew this was the reality when I set this target, as we wouldn't have the full $13,000 in new savings by the last date to put funds in the account. One thing is for sure, seeing a $13 grand dip is going to fuel our motivation for the rest of the year. 

If we maintain the same savings/earning rate, we will be a bit over $10,000 short of my target savings. We had already made some spending decisions that would have reduced the goal, but I chose not to commit those reductions on paper. This was a mind game to keep the focus.Two areas we decided will be reduced will be increasing the home items/upgrade budget  and travel, since we eliminated Yellow Stone in exchange for  an anniversary weekend and more cabin time, and DD2 not going to Ireland. I'm not taking a 2018 family trip off the table though. I'm also not giving up meeting the goal yet. Many of you shared ideas to increase money coming in and I'll continue to look for ways to reduce spending without impacting our quality of life. We are still putting 30% into our 401K's, plus a $325 per month into a fungible account for unexpected car and home issues (think the stupid clog and the vacuum purchase last month). How are you tackling your financial goals thus far in 2017?

Onward and Upward in August

As I suspected, we are in the negatives for July in making efforts towards our December 31 savings targets, but not quite as bad as I had first thought it was going to be, ending at  -$633. On a more positive note, I am pleased to say we ended August in groceries at $298.77. Not bad at all, and if I really wanted to play Mother Hubbard, I think I could scrape together meals for another week, bizarre ones, but meals all the same. So with knowledge of what we have in stock, I am aiming for August again to be under $300. To add to the challenge, I want to keep household (personal, cleaning, laundry etc.) at under $50, and meals out, not counting the vacation meals, at under $100. I won’t count DH’s lunches-no control there on my part, and I won’t count a few activities DD2 has with friends that will need lunch money. 

I’m not even going to try and figure out what we spent beyond groceries this month on entertainment and meals out. Eating out was as much as ever, and I can’t even remember where and what we might have eaten. I splurged well beyond my per diem in New Orleans, and last night, we had planned and did end the month with pizza because DH was going to be at the cabin most of the day. But hey, August 1 is a fresh start. 

I checked our suit cases and one of our large ones still has some life in it, and we use the large so infrequently, it didn’t make sense to splurge on a new one. However, I found a carry on size, largest that will pass, with the 360 turning wheels, for $50 at Gordman’s with another 20% off. It seems as good a quality as the one I purchased for DD2 before Spain at Kohl’s for $100, plus 30% off and $10 Kohl’s cash, so I guess a better buy once all discounts and earnings are applied. All our carry on size have handles that won’t extend, or are ripping in seams. I really abused them the years  I traveled for work. I  found some light weight knit dresses, perfect for layering with tights and sweaters, to refurbish my summer to fall, and cruise appropriate wardrobe. These were not originally in my plan, but with some of my purging, I am realizing the sorry state of my work wardrobe. I really have purchased very little in the last year, and these seemed practical, not indulgent, except perhaps the black one, as I already have two black dresses. 

So that was July. August has us going on vacation, with a firm budget, and back to school expenses. As much as DD2 has clothes galore, it just feels like a fresh start to a school year to let her get a couple new things. Then there is school supplies and the list; I wish I had stock in three ring binders. I'm not sure how to pack for the trip. It could get downright cold at night out on the Alaska coast, but I’m thinking items that can be worn in layers and swapped and switched out. I need to get DH’s suit to the dry cleaners-ouch that will eat 1/3 of the household budget right there! Guess we’ll be using up the dribs and drabs of our cleaning supplies, but the last of the laundry soap went in the washer this monring. How are you all gearing up for spending to close out summer? Are splurging or cutting back, or like me, do you have a mix of both going on?

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.

Money Savings-Little Success Help Momentum

I sometimes have an odd schedule where I go into the office in the morning, but because of where a meeting is and the time, it is just silly to backtrack to the office when it is over. The back tracking wastes both work time travel, and my time driving in rush hour. When this happens, like yesterday where a meeting ended in downtown St Paul at 3:00, but my office is 20-30 minutes north (because of the start of rush hour), and I am now within 30 minutes of home, I'll head home to finish my work day.  I also needed to pick up DD#2 at school yesterday, on the opposite side of town from home, but I have one route home that takes me right by her school. 

What I really wanted to do was plant my butt firmly in a Caribou Coffee for 90 minutes and work until picking her up at 5:00. I was strong with my will power today, keeping my money in my purse. I would have loved a smoothie or a blended tea, but I  don't need to spend $5.00. A small coffee would have only set me back under $2.00, but it is a warm day and I dressed for the cool morning temps and now was dressed too hot to enjoy a coffee. Instead, I went the extra block and used the public library for my remote office. I was pretty thirsty since my car had heated up while in the meeting, but I helped myself to the free drinking fountain before I plugged and logged in. I do not drink nearly enough water in warm weather, so this was a health bonus.

Here's my rough calculations. This variation on my schedule, not counting telecommuting days, is probably three times a month. If only 1/3 of the time, I'm also making a detour stop to shuttle the kid, it's still 12 times a year I have the opportunity to make a choice to save a little money, or at least, not spend more money. Twelve times X $3.00 (average between cheap small coffee and blended drink), and I have $36.00 left in my wallet. Round trip savings on going home, then picking up my kid, 10 miles at current federal mileage rate of $ .55, at 12 times, and I've saved $66 in car wear and tear. Of course I won't have anyone handing me a check at the end of the year for $36 or $66, and might not even notice the savings, but the important point is that it is there. Finding the little ways to shave dollars off monthly expenditures, cumulatively adds up until there is actually more wallet than month come April 30, July 31, or any end of month.

There was a time when I had to think about things down to the penny, and I read a couple blogs where the writer is living on this tight edge all the time. I'm not going to get my calculator out for every  transaction, but doing the math a time or two puts some perspective in all the holes in my checkbook.  I won't give up my coffee habit completely. A cheap small coffee is a low price for a second office when the telecommuting days get to be a drag or makes for a better meeting environment than an enclosed meeting room at my office. But am I combining errands instead of haplessly jumping in the car to take care of a singleton situation? Am I taking advantage of free resources, resources I've paid through taxes to support like the library for free Internet, without the need to buy a coffee house beverage when I have time to kill? Where are there other places to plug those holes, without even thinking of them as frugal strategies, but just common behavior?

Love a good cup of Joe, but not at 3:30 in the afternoon.

April Showers-Time to Plug Holes in the Checkbook

The goal for April is to entirely bank anything DH brings in the house. We've dealt with the tax man on March 31, making that expenses a thing of the past. While we pay off the credit card bill in full each month, March was an expensive one, all planned, but semi regular expenses mounted. Even with the heftier VISA, I have a third paycheck month so saving DH's checks should be totally doable. I have not disclosed much about my take home, and it feels like it should be more as I earn a decent enough wage. Part of what reduces it is that medical and dental, short and long term disability insurance, and additional life insurance for me and DH come out of my checks. Also, I have 25% of my pre-taxed salary go directly into three accounts for retirement-pension, health savings, and 401K. This will be even higher when I play catch-up later in the year now that I am 50 and can put up to $24,000 away in my 401K. With few deductions, and Minnesota a relatively big income tax state, nearly 30% is gone for taxes. this will leave me with take home in the neighborhood of $4,360. I'd like to challenge myself even further and shoot to even spending at $4,000 for month and put that $360 in savings as well.

Here's the plan for April. Note we spend more or less at other times of the year in many of these areas. This just happens to be April. Things like clothing, gifts, vacations, church and donations, etc. are spent in different amounts at different times, but I sort of have a range of what I try and average over a 12-18 month period. We also have a different way than others might in how we save or put money towards college for DD#2. We are saving, but becasue of our ages, we want to make sure our retirement plans are prioritized and we maximize where we can in tax deferred, my pension, and our Roth. Should we have to, student loans would be available to help float college costs. but no one is going to give us a loan to paying our living expenses in retirement.

VISA-expenses from semi regular that will be on this bill                      $575
Groceries and Household-                                                                     $550
Eating Out, school lunches, work lunches (We have our daughters friend visiting so will add a meal or two out and about with her), entertainment                       
                                                                                                                 $200
Church and charitable                                                                              $400
Car Insurance                                                                                           $180
Gas and oil change                                                                                   $200
Car Payment                                                                                             $332
Utilities (phones, water, electric, gas Internet, netflix)                               $535
Annuity (life and add. retirement fund)                                                      $262
House and Auto fund (we have no mortgage and kept paying ourselves the car payment when the Equinox was paid off. The other car payment is no interest)     
                                                                                                                  $650
Music, school, sports costs, teen costs                                                     $225
Spring Clothes  (DD and DH-I'm no spend)                                              $200
Miscellaneous                                                                                            $  50
Total                                                                                                         $4,360

Technically, the annuity payment and $325 of the house and auto fund are also savings, but they are "bills" in that we pay them every month. There are also many places we could cut to save money, but we have decided those are priorities, thus choose to include as "bills" such as church and charitable regular commitments, and some of the costs associated with DD's extra curricular activities. 

The categories we can save are in groceries and household, eating out/entertainment, spring clothes, and miscellaneous. I'm also trying to watch the utilities, at least the ones that are metered, but we wouldn't see the savings immediately as we are on budget plans that average over  a course of 6 months, then they adjust up or down. To reach my second goal, would mean to reduce those cumulative $1,000 budget by 36%. That is a tough feat, requiring Ninja level savings. I'll get creative with cooking, couponing, and using up and doing without if need be. As I post a few weeks back, I will do this not feeling deprived, but see it as a competition. Anything towards the $360 will be a bonus win. If we end up having to tap into DH's pay, I'll challenge myself harder in May to keep expenses down as I'll be back to only a two check month. What's happening in your world of money in April?