It's New Year's Eve and time to wrap up 2018. I'll do a final financial update, but I can already share, as readers will know, I had too much ambition in my savings target and not enough cash coming in. I've set a more realistic budget for 2019, much of which though will rely on me managing needs and wants in discretionary spending. I commented the other day to Hawaii Plan that I wanted to keep my personal clothing shopping to a mere $60, buying no new clothing and only replacing undergarments and socks-at rock bottom prices. I foresee a need for these items, but in all honesty, I do not need anything else and for now, I don't want any more clothes either. I have appropriate work clothes, though could learn a lesson or two in styling better, play clothes, and active wear. I have good walking shoes and cross training shoes, summer and winter gear. If I am diligent enough to achieve my weight loss target, then my existing clothes should just fit better, and I'll put aim on replacing in 2020.
Like clothing for myself, I'm thinking about every line item in our budget of discretionary spending. What are truly needs for 2019, and what, as we try to maximize our savings, is really just a want? The aim being to spend as little as possible on our needs, and scrutinize the wants for 1) the amount of joy it brings us, and 2) the best value we can get for the experience. Needs and wants will vary person to person/family to family. I'll keep food, gas, utilities off the list-anything for just basic life and livelihood is of course a need, but to save redundancy won't list them here/ However, I know within those, there is also choices between items being a need or a want, for example bargain apples or perhaps expensive out of season pears. Fresh fruit is a need, but what that might be comes down to choice using the 1 and 2 question above. This is just the start of my thinking. I'll add to the list, at least in my own planner as the year progresses.
Needs
Basic clothing items replaced as worn out-for all three of us
Warm college campus coat for DD2
Replace front door
Road Trip to move DD2 into college
Proportionate cost of gas for family pontoon at the lake
Wants
All home repairs and improvement beyond the font door
Road trip for DD2 Show Choir
Family weekends to visit DD2
Family birthday gifts and celebrations
DD2 Grad party, airfare for DS to come home for party
Speed boat (used) with required accessories (DH has a separate account to pull the costs from)
Each of the items in my want column will add a lot of joy to our life and create good memories. The needs fall under either a true necessity or are commitments we have made. I'll be scouring the money blogs for tips and ideas to maximize my dollars. I don't see this as living an austere life, more taking the next year to assess our spending priorities and figure out how to better use our income as a discreet tool towards goals, in the most effective way. Are there discretionary lines in your budget that you are sticking to solely for needs? Is there a big splurge on a want planned for 2019, like DH's boat or our daughters grad party? Please comment and link to your own spending plan if you have written about one.
Monday, December 31, 2018
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My only real need I would say is a new heating system. I've been in this house 30 years and the system was already in when we moved in. The burner itself seems ok but the radiators are starting to go so I have my son's former boss coming out to give me a quote (I'm hoping under €15,000 as that is what I have budgeted). I also want my son to help install it so I can pay him (much better money than what he makes in his job). We'll see though. I would also like both bathrooms completely re-done (will also ask Jordan's mate/former boss as he can do anything) but that might have to wait. My only "want" has ever been travel (I'm off to Sri Lanka in March) and probably England in the summer but with less money coming in travel might have to be reined in depending on other expenses. But then retirement will give me the time to start re-exploring the beautiful area I live in so it won't be a loss. The other "want" is to lose weight. No excuse now!
ReplyDeleteThe next few years my wants might still be plenty but the actions towards very few. Houses are such money pits. Every repair and upgrade is twice what my head says it will be.
DeleteI would say our new house is our "splurge," for all that a one story was starting to become a necessity. I figured it was better to do it now at leisure, than when it became imperative to get out of the two story. My wants/splurges are furnishings for the house. It is important that my home please me. I feel like I am at the point in my life where I am not going to settle in regards to my forever home. There are no current needs, but when one does arise, I will look at purchasing an item, say, a chair, that I will be happy with forever.
ReplyDeleteWe don't really do a lot of entertaining, or travelling. With the animals, it is very difficult. I did mention to DH, however, that when DS graduates from H.S. this spring, we could take a family cruise. This would be a big splurge, but, if we do this, I think we will book last minute, which is the cheapest way to do it--we were masters at this kids/animals! Finally, I told DH earlier in the year that rather than eating out, I would be willing to grocery shop to preferences--say you want steak on Friday, and there's none on hand, head to the store, and I will fix it. The cost of the entire meal is cheaper than one person's serving at a restaurant. He agreed that this was a great idea--his taking the kids out is one area that we cannot seem to get under control. They suggest heading out, and you can hear him getting his keys before they finish the suggestion!
Other than our bedroom, I have exactly what I want for furniture so no need to splurge, but the house itself needs the splurge factor. Even though the kitchen table needs an upcycled paint hov, I love the size and style, and doubt I'd find a replacement I'd like more once painted. First though my home continues to need healthy purging and maybe I'll find some treasures someone might buy and help me build my side fund.
DeleteClothing for me is a definite want vs a need, and I'll be adjusting that in 2019. Additionally, less on travel is another want, so we'll be cutting that back while still creating opportunities together. We consider visiting my family to be somewhere between a want vs a need, and we want to prioritize that over other types of travel this year.
ReplyDeleteWe won't be going n any $15000+ vacation again in a long while. I'm already finding though we perhaps under estimated just the cost of hotels for the show choir trips, so I really need to figure out economic ways to make those happen-probably brining more food along and less eating out. Clothing though-I think a good purge of my closet and creating 6-7 winter and 6-7 spring complete outfits, with a few items that can help bridge both between the spring and fall seasons and I easily could cull over half my current wardrobe, only keeping hat I like and I feel good wearing.
DeleteWe don't have specific goals, other than replacing the $28000 still outstanding to our savings when we bought a newer truck(2014) last summer. We've already put 10,000 back, need to put back the rest. Instead of spending money on interest we self-fund those items...but if you don't put the savings back on a depreciating item your savings just starts to decline. We will travel less this year but I am saving for more expensive travel years in future so still contributing to that. Putting more money in the household fund for appliances, sprinkler head repair, house painting. I can't buy a decent bra in Canada for less than $35 and I try and buy 2 new ones a year so my clothing allowance is higher, although I buy almost everything else at the thrift store. I would like to rein in our grocery spending a bit, not changing the budget but would be happier to be under it every month rather than over
ReplyDeleteEven with a no interest car payment, I will be happy to see that go, but it doesn't end until July 2020. If for some reason we exceed our goal, I wouldn't mind paying that off earlier just to help increase cash flow heading into 2020, though I guess it doesn't matter much-it's just the feeling of making the payment I don't like.
DeleteI’ve long had the principle of “what’s the maximum joy I can get from this money?” as a guide with discretionary spending. This year I decided against booking a holiday as the joy-per-pound for the 2017 holiday just wasn’t good enough (although I was lucky enough to be given a seven day self catering break).
ReplyDeleteOur trip , which there is no way around it, was going to be massively expensive, but we ended up with a two week vacation for around $3,000 per person, so I think we did really well maximizing the wow factor. Now, things lie using the cabin with friends, weekends for our daughters events, and poking around ne to us communities will suffice for wows.
DeleteTO be honest we all probably don't need anything, but we all want many things. It is just a mater of choices. I seem to always choose wrong.:)
ReplyDeleteIt doesn't seem to me from reading your blog that you are making wrong choices, at lest not at present. You do you Kim, and I see your debt melting.
DeleteHmm interesting! Maybe I'll devise some similar plan. I am hoping my clothes get too big and I will need to buy some. When DD was visitng in Novemeber she commented (nicely) that my shirts had to be 3 or 4 years old..Yes- she was right. I hardly ever buy new clothes. Both my sisters have used Stitchfix and really got some cute things. I need some home maintenance too ugh- that's more a need for selling my home but I'm not quite ready to do that yet.I know I have 1 trip to San Fran looming and a couple to Disney or Universal (Harry Potter).
ReplyDeleteI think Universal/Harry Potter must be on our list potential in four years as a graduation gift to our youngest. I should add that to my savings list, but maybe a good place to motivate me for side scheme and hustles. Sure, if I lose weight, some clothes will b too big, but I cn get by with that for a year-good trade off I think.
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