If you remember, we did not tuck a penny away in January due to the timing of my first paycheck in February coming after the bills were due. January , what should have been a good savings month even deferring that last patcheck to February, because I had a third paycheck, was just average. DH was off sick for most of December, which meant very little take home check. We also hadn't planned as well for Christmas, as I want to this year, with costs spilling over. March and April will be the same, with me getting paid on March 14 and April 10th, later than we would take care of bills.
Per my new tracking, I'm just showing what we deposited in savings or borrowed from savings, if that is the case, and the major expenses for 2020. This will include just three things:
- Annual Roth
- Household Improvement
- Travel/vacation
plus
- Any other expense that arise outside the basic household monthly budget
Savings Deposit: $2,700
Spending: $0
2020 Target $34,000
2020 Target $34,000
2020 Net saving-target sepnding year to date: $2,700
2020 Balance towards goal: $31,300
Different from last year in the save/spending plan is college. Since we are in the "paying for years", it's no longer an actual savings target, and is a non-negotiable cost. It might be an odd way to track for others but it makes sense to us. Our goal for the next four years is to stay in the cash black, while taking care of school the house, and an occasional bit of travel and vacations. In the black to us means minimally six months of living expenses set aside should it be needed. Do you have a new system than in the past for tracking your household spending and saving priorities? Are you on track so far in 2020?
Are main goals for 2020 are 1) get our mortgage 1/2 paid off and 2) save for the kids college 3) max retirement 4) accrue no debt
ReplyDeleteIf all of those things come together at the end, we'll be happy. We've been aggressively funneling all extra money each month to goals 1 & 2 (have already done #3 for 401k max, and are now doing after tax). #4 is something we never do, but listed for completeness. :-)
It's easier to be careful and purposeful when you have an end game in mind. I have no doubt you'll reach your goals.
DeleteAs DH is retired, we aren't building savings per se. Our main goal is to continue to grow or RE portfolio, and perhaps sell our hold home. (Currently have tenants-at-will in there.) We have no debt and don't plan on accruing any. Also, as always, I want to continue to slash expenses around here, hopefully getting all the family on board. I've turned the heat down a degree during the day, next week it goes down another degree to 64 degrees Fahrenheit. I have refused to go out to eat, and I am actively trying to wear out all the clothes I currently own. I find minimalizing and thrift go hand in hand. Come Fall, 2021, we will have two kids in college. I believe higher education is an investment, even if one majors in, say, Greek Literature. Education for the sake of education is my motto. That said, both will most likely be at the CC. DD will be only about 2 or 3 classes short of her AA upon H.S. graduation, and DS has yet to decide what he wants to major in, so is fulfilling the requirements for a transfer degree. In doing so, he is discovering he likes some courses a great deal, others not so much, which, I hope, will lead him to choosing a major in something he loves. Were we struggling, they would apply for financial aid at a heavily endowed private college, but under no condition would I allow them to take a ridiculous loan out to attend, say, U.W. That said, your "non-negotiable cost" makes perfect sense to me!
ReplyDeleteNope, nothing lofty, or even very interesting in our goals here, but they suit our stage of life.
We still have a lot of out of pocket despite our daughters significant scholarship. She's applying for one through y work this week, and that would really help towards her study abroad plans. I like your method of slowly controlling costs. It costs nothing to throw a pare of slippers on and a sweater, but heat bills can be expensive. Good for your daughter on achieving so much while in high school. My girls did well with having a lot of credits entering in, which meant they both have room to double major, and out older daughter graduated in 3 1/2 years, which meant she could work a lot before she went to grad school.
DeleteStraight commission sales is difficult, especially when your husband was sick. Glad he is feeling better. We have finished saving for retirement although had some cash in one of our retirement accounts that we just bought more of a position due to the stock market crash. We are at an odd point in our life. At that spend down mode - are using savings to fund some important things like cash for son #1s wedding and investing in our back yard (=massive enjoyment). Other than Mexico which was already planned we have little travel plans. We intend to go to Ottawa to see that son perhaps in fall but are waiting to book it until 30-60 days out pending the Coronavirus fallout plus he is trying to get on with the police force there and if that happens likely will get sent away for training. However, other than some planned spends the rest will be funded (including travel) from our regular paychecks which are still a little lower than last year as I have been super conservative with them.
ReplyDeleteFortunately, he does have a small base, or there would have been almost nothing for a month. Right now, we are focused on simple things in life, and I hope to take advantage of using the cabin more this year and more longer weekends since we aren't taking a true vacation though I'd like to do a camping trip to a state park.
DeleteI think knowing your aims/objectives is half the battle and ou certainly know what you want out of your financial life.
ReplyDeleteOf course I'd like to travel more, but spend a lot of time in a place and not just be a tourist. That can't really happen until DH retires. So until then and until DD2 is done with school, vacations will be modest. Getting my new patio done will bring me enjoyment every night in the nice weather months.
DeleteYou are doing so well even with the set back of your Hubs getting so sick and Christmas. I am just trying to get this house ready and not really looking at any savings except my silly little plans. Just keeping my head above water for fixing up the house. Yikes is all I can say.
ReplyDeleteLosing that month felt like a set back, so I' trying to make up ground now. I don't wan tot miss out on fun now though either, so looking at thrift as an opportunity not punitive.
DeleteWe had a major medical setback with my hubby at the end of 2018 and first half of 2019 where he was out of pay for about 2 whole months. We were able to handle it as I am paid significantly more. Our youngest was in her last year of college as well. It was scary and made us realize that if the same thing happened to me, though I have better benefits, we'd be in real trouble. So we are rebounding by increasing our emergency fund to a year's worth of bare minimum spending, paying down our mortgage as fast as possible, and I'm maxing out my 401k and catch-up. Those are the priorities. I will say, after finishing paying for two in college for the last 5 years, it is amazing how much money we have left over now that they are done!
ReplyDelete