Monday, June 13, 2022

Money Monday- Starting the Mid Year Analysis

   


      It's not quite the halfway point of 2022, but I know what our bills and expenses are through June, so close enough to do analysis of our money goals, the major one, figuring out if we can cover all living expenses in 2022 and 2023 on just my take home. Major home renovation projects, annual Roth contribution, and college tuition is excluded, but things like travel and general home and car maintenance is. Going into the year, we know would have ebbs and flows. If we were starting at $0, there would be cash flow gaps. That was recognized as part of the effort, but target would we'd catch up by year end. I'm happy to say, the difference in deposits to DH's take home is less than what my last quarter take home increase will be. The signs indicate we should be on target for 2022.

     I have worries or at least things that bring me pause as the first half of the year ends. Hopefully, we're able to mitigate some of these through other strategies. The plumbing unexpected issue, aren't they all, could be one of many surprises. 

     Of course inflation was already inching as the new year started, but now it feels like prices are growing by feet. My no waste mantra is stretching to every line on my budget with flexibility. I'm cutting some purchases, maybe silly, I didn't think about like diet Coke and endless coffee ( trying for no more than two mugs) and drinking more free water. We've got to reduce eating out- mostly the impulse meals, coffees, and drive throughs, and save that part of the budget for planned and enjoyed meals out. I need to get better at batch cooking. I've got to really use items I've purchased ahead for gifts. People need to double check lights and electronics are off when not in use. Errands need to be grouped for efficiency. When replacing items, we need to buy well made and cost effective. We'll rethink if something is a need or a want. If a want, how much so, before buying. 

     The second half loading of take home is due to my hitting the 401K max by mid September, when other years it might be October. That's because I converted 40 hours of vacation to deferred comp back in May. I don't want to forgoe vacation, but after the fiasco with taxes and timing, that might be nullified anyway. I could change the way I defer to spread my take home out at the same rate all year, but this way pushes me to belt tighten a bit more for 3/4 of the year. I'm slated for a July 1 salary increase of 2.5%, not much, but something. Long short of it, I think we're on track.

     And good thing too. DH waited until 7:00 Saturday to mow when it got cooler. He did fine helping my daughter move large furniture into storage Sunday morning, but then he basically napped for two hours on Sunday. I feel like he works too many hours and has little left for his own life. I don't know if I can convince him he can afford to retire earlier, but hopefully the numbers will talk and he'll listen.

25 comments:

  1. That would be wonderful if your dh can retire early. Kudos to you for working on your financial goals.

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    1. I think it's doable for him to consider it by January.

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  2. I like the idea of the mid year analysis, and should also make time for this in the next week or so. I can definitely tell that we're way over on our "kid" category, which really covers all of the cost for the kids. This is a very expensive season with them. I think we're doing reasonably well on other categories, but should verify.

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    1. Kids will do that. Mine, other than college expenses, is supposed to be self reliant but I still put the odd tankful on her car, buy something she needs when at the store.

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  3. That's a very positive mid-year analysis isn't it. Sure there are ups and downs but then you will always be able to juggle (I suspect) and the possibility of your husband retiring sooner rather than later might become more feasible and apparent to him!

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    1. I'll probably comb through the numbers again and double check, but I was worried it wouldn't be doable. It can be.

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  4. I too like to sit down at June to review the year so far with resolutions and goals and such. You inspire me to do so.

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    1. This was just money goals. The rest of my 2022 plans have gone bust.

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  5. It is smart to conserve energy by not mowing in the heat of the day. It zaps my strength more as I get older. Tommy swears he does not drink much coffee, but 16-ounce mugs add up. Plus, he is a Pepsi fiend.
    You are certainly diligent taking care of finances to get your husband to retire. Good job.

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    1. I feel bad for outside workers in the heat that have no choice.

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    2. Farmers, construction, State Hwy workers all take breaks, drink tons of fluids and wear light colored clothes that breath. Military switch uniforms to "summer" which is lighter in color. They Most wear hats to shade the face. Several in our family use a cooling neck scarf or just wet a bandana. Over half of the family works outside year around

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  6. It took a bit of convincing to get my husband to retire also but once he did he knew it was the best thing he could have ever done. Hopefully if you keep showing him the numbers he'll realize it is do-able.

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    1. As ai said to Belinda, I'll do another review, but it looks promising.

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  7. I wish I had, had to convince Hub's to retire, but once he did I was happy. Life is short and there is no reason to make it shorter..

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    1. I will respond in two parts- you are so right. He's wearing so much stress and exhaustion and it's not good.

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  8. I can't believe I just gave that advice; I need to take it myself....

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    1. And...you could listen to yourself. Do you get social security yet or tap into anything so you can cut back? You're probably still too young.

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  9. I've started to track my spending again after many years of not doing so. Quite horrifying just how much goes on meeting various friends for coffee and cake. I'm going to need to reduce my cafe habit I think! Arilx

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    1. The odd stops $5, here, $7 there don't sound like much until a months worth are added up by three people. Good luck on your tracking.

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  10. Great job on mid year analysis! I, unfortunately, am way over budget in some areas. I have only eaten out once this entire year thus far, and that was last week. and I have gotten takeout three times this year, so I am doing well in that category. Not in the gas category though….. yikes!!!!!!Cindy in the South

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    1. We are over budget in many areas, but seeing this is doable is giving me a new focus going into the second half of the year.

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  11. I can't wait to retire - hoping that both my hubs and I can do it by 60 (I'm 54, he's 52). I spend very little money during the week (I don't eat out, no coffee out - my work supplies free coffee!), and I've cut my fun spending down quite a lot.

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    1. I remember free coffee- last job. When I go back, it's going to be a travel mug for me with only an occasional splurge. I'll use the rest of June to see our holes. I'll still stay working until 62 regardless, but I want him to retire as his health is going to suffer.

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  12. What a great ides to do a mid year analysis. So far we are managing to stay under total budget, but will need to figure out ways to stay that way with prices rising like they are.

    God bless.

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    1. It's hard to stay on budget with prices up, but much of our extra spending was too much eating out, too many impulse buys, and poor planning. That's what our mid year look revealed and hopefully can work on those issues.

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