View Full Version : How is your personal economy?
awakenedsoul
8-18-12, 10:58pm
In spite of all the turmoil in the world, I realized today that my personal economy is better than it's ever been. I've found more ways to cut back my spending, and it's really made a difference. I canceled my expensive land line, and I don't even miss it. I pay $25.00 a month for Internet, and I don't have television, so my expenses are low. I've been reading at least three library books a week, and finishing knitting projects. How about you?
Pretty dicey, actually! Dammit all. But making progress.
ApatheticNoMore
8-19-12, 1:43am
I had more income and time when the economy was better :( But I'm ok. I don't tend to regard such non-fatal fluctuations in economic fortune as permanent anyway. Stuff changes, one hopes for the better, but hey ...
Right now it's really bad. DH got laid off from his day job he took last year. We just finished a big art project but that money won't last longer than a few months. I only work part-time. Not sure what is next for us but I wish it would get here quickly.
Tussiemussies
8-19-12, 7:54am
Sorry Float On, do hope your husband's business picks up soon...
flowerseverywhere
8-19-12, 8:27am
All over the country people are suffering. Unemployment, underemployment, doing more work with less people. What adds to the frustration is that at one time at least people could depend on social security and pensions and most pensions have gone the way of the horse and buggy and social security and medicare are certainly under intense scrutiny. So it's doubly hard to keep your chin up. As someone once said here (maybe bunnys) it is hard to pull yourselves up by the bootstraps if you have no boots.
We are lucky to have no debt, and during the good times thanks to good books, good websites and good friends we realized how important it was to live below our means and save. So we are OK. Holding steady. Not making gains. We even managed to sell our house for a decent price and will be downsizing and moving where taxes are much lower. That will help after the initial outlay of cash to move.
I wish I could help our floundering family members. One has long periods of unemployment, we have a few getting ready to graduate from college with big loans and few job prospects, and several others are treading water. That is the frustrating part because they are really good hard working people caught in a whirlpool trying desperately to swim out.
ToomuchStuff
8-19-12, 11:04am
awakenedsoul, What service is your internet? That is really my big expense. I tend to use it as entertainment, but have considered changing my service (not close enough for the google fiber unfortunately), so my options seem limited.
As for my personal economy, when I paid off my house two years ago, I started stashing money away for some bigger expenses. I am pricing putting a new roof on, and have some other goals. I am in better shape then some, but still consider myself underemployeed.
try2bfrugal
8-19-12, 12:05pm
In spite of all the turmoil in the world, I realized today that my personal economy is better than it's ever been. I've found more ways to cut back my spending, and it's really made a difference. I canceled my expensive land line, and I don't even miss it. I pay $25.00 a month for Internet, and I don't have television, so my expenses are low. I've been reading at least three library books a week, and finishing knitting projects. How about you?
Awakenedsoul, we are not in your league but have also been moving in the same direction trying to reduce our expenses. We have learned to look at even small expenses in 30 year time frames, so things like cutting the land line become really huge savings - $18K for us in 30 years. (We are actually still working on that one.) We have saved a lot by doing more of our own work around the house, cooking from scratch, cutting back on insurance to the essentials and just trying to get getting rid of a lot more stuff than we buy. We would like to downsize next year and that will be a huge cost saving.
I got hooked on the simple living idea when I read a magazine on homesteading and realized those people were actually leading pretty healthy lives and living on very little money. We would not go the whole homesteading route, but then I read up on simple living and urban homesteading and things started to click for us. We now work less but have more free time so it has been a good trade off for us.
I also started making much more use of the library. I get a lot of books on how to manage our money better and on urban homesteading.
iris lily
8-19-12, 12:21pm
DH's business dropped a great deal during the past few years, but the exodus of our friends/his customers from this area as well as the exodus of two major customers is largely to blame. It's all fine since it's time he scale back anyway. Our net worth continues to grow and by that measure, all is fine.
It's not bad. It would be better without Chez Albatross, the bane of my existence, but that's a personal problem. I could be more frugal, and there are lots of opportunities to cut back. If everything went completely to hell, I'd move in with my beloved and we'd be truly as snug as two bugs in a rug. And I'd have to rent a big honking storage unit.
awakenedsoul
8-19-12, 1:49pm
Wow, this is so interesting. try2bfrugal, I like your idea of how much you will save in 30 years. It's so true! It gives you a different perspective. I've even considered going car free, as that would save me $30,000. in thirty years. We'll see. Things like planting an orchard 15 years ago are now really helping me out with my food budget. Fruit trees take a long time to mature, but once they're there, it's fabulous! I also notice that my clothes are all in really good shape, so I won't need to worry about spending money on a wardrobe. I line dry everything, and it really does help my clothes to last longer. I used to have three big dogs, once passed away. Now I have two. The lab was eating $30.00 worth of food each month! That's $10,800. (just in food,) in thirty years...Ten years ago I would have immediately gotten another dog without thinking about the expense. I make total use of my library, too. It's just a short bike ride from my cottage.
Too bad I didn't have these skills and this awareness when I was earning more money!
awakenedsoul
8-19-12, 1:54pm
Toomuchstuff,
I have A.T.T. It took me about three hours on the phone to get that rate. It's a long story...I used to have a home phone and business line with them. Now I just have a Jitterbug cell that I hardly use, and my internet service. When I read that Spartana uses the library for her computer use, I realized that I could cut that expense, too. For now I keep it as a treat. I really like having less bills to pay!
thinkgreen
8-19-12, 2:12pm
Awakenedsoul - I am sorry you lost your lab. I know how much love pets give and get from their families.
My mathematical mind calculates the cost of food at $30 per month to be $360 per year, $3,600 for 10 years, or $10,800 for 30 years.
awakenedsoul
8-19-12, 3:48pm
You are exactly right. I will fix it now. I thought that amount seemed awfully high! Thanks.
Our personal economy is good. We spent quite a bit more than usual this year, but our net worth is still growing. If you have the cash many things are less expensive that they were a few years ago, houses, boats, planes, RV's, ect. And having work done is at least not any more expensive. So when the general economy is bad, we still do OK, but we do better when the economy is good.
I'm doing pretty well and have managed to become frugal enough and smart enough with my money and disciplined enough with my spending that I now am able to live below my means and save some money. Not for retirement, mind you (but not too worried about that bc will get a government pension and SS,) but for big items I need.
I finally feel like I'm pretty much in control and most of the time I am very frugal and spend very little money but then there are these periods that last several weeks (I'm about at the end of one now) where I spend and spend... School starts in about a week and I will completely stop spending then (aside for food/household expenses.) I hope to keep that up at least till Christmas vacation.
shadowmoss
8-20-12, 10:37am
I took a job outside the US (Honduras) such that I get a housing allowance and don't pay Federal income tax. My stateside address is Washington State, so I pay no state tax. Because of that, after 2 years I will be debt free hopefully by the end of the year. This assumes we get the deadbeat tenant out of the house in TN and I can sell it. I've paid over $40K in debt from credit cards and my Jeep. I am ahead financially, but more than ready to head back to the States. However, there are a few more things I will work on cutting back and probably stay down here for awhile to put aside some money since retirement is definitely on my radar. According to Mr. Moneymustache's calculators, I need to work about 12 more years to have what I want to retire. I want to retire in no more than 2 years. I'm tweeking my finances.
We have gotten better with dh getting more work and my library work, etsy sales and consignment shop earnings. We need to save more. We don't follow a budget but we're not real spenders either. For example, we won't go out for a fancy dinner for our wedding anniversary but would consider lunch.
treehugger
8-20-12, 12:32pm
My husband and I began our own personal recession in summer 2007 (started with an unexpected layoff, then morphed into kidney failure, a second layoff, going back to school, dialysis, kidney transplant, underemployment), and that still continues to today, but it has eased considerably since January. So, personally, we are doing better now than we have in 5 (loooong) years. What a relief.
The good news is that not only is our income better now, but we also learned some really valuable lessons about goals, priorities, austerity measures, saving, budgeting, etc., so we are able to apply that extra income that we finally have in a much more productive way than the last time we were a 2-income family. So, even with the debt that we accumulated in the past 5 years, and we still aren't earning 2 full incomes yet, we are better off for the long term than we have ever been in our married lives.
Kara
My personal economy is good since I'm FI and not dependant on a job. It hasn't changed much in this economy and is about the same as it's been in the last 12 years since I decided to quit my job to play sports and travel while I was younger. Inflation hasn't really effected me much - except for maybe gas but I can drive less and have a more fuel efficient car. Probably the only bad thing that has changed is that I am earning LOTS less interest on my savings but since I never counted that earned interest when determining my "early retirerment income", I can still chug along OK when rates are low. On the plus side, housing prices have gone down significantly and, since I'm in the market or will be soon, that will mean my house purchase and related expenses such as taxes, etc... will be much less then I had thought they would be before the crash.
Wow..an interesting thread! I'm basically self-employeed (realtor) so the income is sporadic. However I'm pretty good and enjoy being frugal (most of the time) so my spending is under control. However I am far from being debt-free and I look to this forum for inspiration!
I have a couple of ideas for earning extra money:
1) I live in a very touristy town and am thinking of converting part of my house into a vacation rental. If I rent it out 15 days of the month I can bring in about $800. My house is too big for me so it would not be a problem for me to live in just half of it.
2) Being a realtor and seeing all the foreclosures, I see homes left behind with a lot of "stuff"- some worth something, some worth nothing. Usually this stuff ends up in the landfield...My business idea is to get some of this stuff out and sell it to consignment shops/craigslist etc. It would save the stuff from going to the landfield and people would get a good deal on stuff...but is this ethical? Would I be profitting on others' misfortunes?! Hmmmm.
ToomuchStuff
8-21-12, 1:17pm
2) Being a realtor and seeing all the foreclosures, I see homes left behind with a lot of "stuff"- some worth something, some worth nothing. Usually this stuff ends up in the landfield...My business idea is to get some of this stuff out and sell it to consignment shops/craigslist etc. It would save the stuff from going to the landfield and people would get a good deal on stuff...but is this ethical? Would I be profitting on others' misfortunes?! Hmmmm.
Careful now, I know this Realtor :
http://www.kctv5.com/story/19115495/kctv5-undercover-investigation-exposes-home-inspectors-scheme
[QUOTE=ToomuchStuff;97211]Careful now, I know this Realtor :
http://www.kctv5.com/story/19115495/kctv5-undercover-investigation-exposes-home-inspectors-scheme[/QU
Oh...IF I did it, I would do it totally legitimately...but you've made me think about this more...I don't think I will do it because I wouldn't want any suspicion of being improper and risk losing my license! ...plus it's probably a lot of trouble. Thanks for your input...this is exactly why I posted my thoughts..to get feedback. I think it could be a great business for a non-realtor person and someone not really related to the business. I think someone should take my idea and run with it!! Thanks TOOmuchstuff!
My business idea is to get some of this stuff out and sell it to consignment shops/craigslist etc. It would save the stuff from going to the landfield and people would get a good deal on stuff...but is this ethical? Would I be profitting on others' misfortunes?! Hmmmm.
Interesting idea ... and an interesting question. I know there are companies in the Twin Cities, hired by the lenders, that go in and clean up foreclosure- and short-sale homes and part of the deal is that they can take/resell things of value as part of their income.
But I'm more intrigued by the question of profiting on the misfortune of others. I understand the ethical component of it, but don't we (the collective 'we') do this all the time? "Motivated seller!" "Moving -- will accept best offer." Liquidation sales/bankruptcy auctions for closed businesses. When does saving money under these conditions become unethical? I'm not saying the answer is "never" -- just that we readily accept certain positions of disadvantage in commerce. I'm interested in where the line is drawn -- or at least where some of us draw it.
ToomuchStuff
8-21-12, 2:27pm
But I'm more intrigued by the question of profiting on the misfortune of others. I understand the ethical component of it, but don't we (the collective 'we') do this all the time? "Motivated seller!" "Moving -- will accept best offer." Liquidation sales/bankruptcy auctions for closed businesses. When does saving money under these conditions become unethical? I'm not saying the answer is "never" -- just that we readily accept certain positions of disadvantage in commerce. I'm interested in where the line is drawn -- or at least where some of us draw it.
The whole economy is parasitic in nature. Each person has to decide where the line is drawn, for themselves. I think generally we all would say there is a line where you create the opportunity for a parasitic result for yourself. (drive someone into bankruptcy to buy their stuff, as an example)
This is a fascinating thread. I am in good shape, but more scared than ever. being close to sixty, I have a lifetime of savings and no debt...BUT am close to unemployable (age discrimination) should I lose my job..and my job is VERY insecure. I am so grateful for everything I have, but the next five years will make a very big difference in the kind of health care I'll be able to afford when I retire. So...I'm fine for now but more Scared than ever. Anyone else feel this way?
This is a fascinating thread. I am in good shape, but more scared than ever. being close to sixty, I have a lifetime of savings and no debt...BUT am close to unemployable (age discrimination) should I lose my job..and my job is VERY insecure. I am so grateful for everything I have, but the next five years will make a very big difference in the kind of health care I'll be able to afford when I retire. So...I'm fine for now but more Scared than ever. Anyone else feel this way?
Yes, sometimes. DH and I planned for early retirement and while I feel good about our savings, health insurance worries me. I'm in my 40's and stay home with my kid, but I worked in tech, so I can kiss going back into that field if I need to start working again. Age discrimination is very real. DH's field is less sensitive to it, but he figures he only has about three years left before he faces it if he has to look for work.
militaryman
8-24-12, 11:30am
By all appearances I am in good shape -- Almost debtfree ( $4k left on HELOC ) and both DW and I are employed fulltime with benefits and saving a good amount into 401k's , however.... I have a cloud over my existence knowing that to maintain the "decent economy illusion" the Fed Gov. is spending +$1.1 trillion more than it takes in each year, year after year ... So eventually the s*it will hit the fan and the reality of how much we have saved is really worth and how many taxes we will be paying to dig out of the mess will be revealed. At least I should be ahead of most other folks I guess
On a scale of 1 to 10, probably a 7.5. I have managed to maintain a 35 hr a week job at a decent salary with pension and health insurance for life. (Currently working on a scheme to make more but will be getting a 3% raise-amazing for a state govt). Dh has a steady job, paid health insurance and a company car provided with all maintenance and fuel paid for. My car was paid for years ago so our only expense is gas, licensing and maintenance for mine. Our house has appreciated in value - $130K when purchased 12 yrs ago to $340 if sold today. We have decent savings, vacation and emergency funds and I have been able to save at least $2000k a month the past few years so that has helped. I say only 7.5 on the scale though because having been around five decades, I know how quickly economies and situations can change. A health situation and ensuing job loss could change everything. It also worries me that we are looking at a lot of replacement costs on things that were purchased years ago and nearing their lifespan - roof, AC, car, appliances, etc. Oh and the ever present property tax that gets bigger every year...We have the money but at this age one begins to prioritize spending even more. And if the market collapses again as it surely well at some point soon, then there goes our retirement funds. We were not able to save enough early on to feel financially secure in all situations but things could be a lot worse.
Right now I'm in a slightly better situation than in the past few years. Although the spa is slow and work is sporadic (will pick up in the fall/holiday time), my other job in a small business is filling the gap. It's close to the spa so I can pop over there if I get a client, they pay cash (shhhh, don't tell!), and I like it. At the moment it isn't "extra" money, since it's filling the gap left by the slow spa, but it's definitely helping a lot.
I took early retirement four years ago with a small pension and partially paid health insurance. I worked all of the retirement calculators at the time and the numbers worked out ok. So far I am in decent shape as I have a frugal lifestyle and no debt. On the plus side, I spend less than I anticipated. On the minus side, my 401k type investments are not going as well as the calculators predicted. I am conservatively invested and interest rates are not even keeping up with inflation. And the stock market is lower today than the day I retired. The retirement calculators pretty much blew it, so far anyway. I think it will all work out and cannot imagine returning to work. Life is pretty good and I feel very fortunate. I would estimate that half or more of my co-workers who retired have returned to work, either due to money issues or for the structure of work environment.
Our personal economy is fine right now. I retired a year ago but DH is still working full time. He is will be 66 in January so I am not sure how much longer he will work full or maybe part time. We are debt free including our home and 4 acres and have an emergency fund and a considerable amount in 403b accounts. Like everyone else though I am very uneasy about what medical expenses could do to us or what is going to happen with Social Security or what happens if quantitative easing turns into inflationary money printing. However, right now all is quite well.
Mighty Frugal
8-27-12, 1:33pm
We are doing well but that could change soon. DH was laid off mid year but we knew it was coming. His package went straight into his RRSP and we have been living off my income since last December with no problem! Now that he is home we no long have to pay child care. Not sure how he will handle it (he's already worried about what he will do all day when the kids start school next week)
The plan was for him to stay home until I get packaged out (mid to late next year probably)
We have no debt, healthy savings and retirement savings and a well stocked EF. Being Cdn we don't worry about lack of healthcare when we are unemployed.
Our issue is dh's psychological one. He refuses to spend ANY money now on things he loves because he worries too much. He is a BIG time golfer but hasn't gone out even once this year due to the expense (in my neck of the woods a round of golf costs $150 and up) I'm not saying he sould go weekly (which he used to when we were really flush) but he can go monthly or even bi-monthly.
awakenedsoul
8-27-12, 3:10pm
Wow! Thanks for all the responses. Seems like people who live simply are very disciplined with money. I'm relieved at how little it costs me to live, since I've retired. I keep looking for more ways to reduce my spending. If we had Zipcar out here, I'd probably use it. I canceled my land line, and have a Jitterbug plan. It's only $15.00 a month. Library books, cooking, gardening, and knitting are nice cheap hobbies. I had no idea a round of golf costs $150.00!
Awakenedsoul,
I'm still trying to find ways to reduce my spending. I got rid of all cable and love not having the option to turn on the TV. I recently started making my own cat food - I make a batch on Sunday and put it into glass jars. The cats love it and it is so much healthier and less expensive than what I used to feed them. I love trying to find ways to cut expenses and live more simply. My personal economy is not great at the moment but i'm working on it!
Awakenedsoul,
I'm still trying to find ways to reduce my spending. I got rid of all cable and love not having the option to turn on the TV. I recently started making my own cat food - I make a batch on Sunday and put it into glass jars. The cats love it and it is so much healthier and less expensive than what I used to feed them. I love trying to find ways to cut expenses and live more simply. My personal economy is not great at the moment but i'm working on it!
Minz, would you please share your cat food recipe? I would love to make food for my 3 cats!
Minz, would you please share your cat food recipe? I would love to make food for my 3 cats!
Sure!! The recipes are from this site: http://www.cbahvet.com/site/view/194505_HomePreparedCatDiets.pml. However I haven't put bonemeal in yet because I can't find any I'm comfortable with; some agriculture places have it but I don't think it is for the purposes of cat food...I'm trying to find some that is sold from a healthy pet supply store or from a vet's office. I've tried the chicken recipe and tuna recipe and they are both a big hit with my furballs! Let me know what your cats think of it. I'm looking for a homemade dog recipe if anyone has one to share.
Simplemind
8-27-12, 8:31pm
Even before reading this thread I felt deeply blessed. I look to my right and look to my left and so many that I know have been deeply touched by this economy. I retired in June and it has been a big adjustment for me. I went early and took a penalty which almost everybody thought I was crazy to do. So many there can't leave because of health care insurance or they divorced at some point and had to split their pension. DH has a great job that I'm still shocked he got after his company went under a couple of years ago. He was unemployed for several months and then got a job as a consultant for a year and then was made permanent. He loves what he does and plans to stay for another 8-10 years which will carry us for health insurance.
I retired early because I had figured out what enough was. We are debt free which is an unheard of state within our aquaintance. We married 11 years ago and I had always lived below my means and DH had been married to a spendthrift and was willing to go the other direction. We used his salary to pay for everything but entertainment. I paid for entertainment and put the max into a deferred comp account. So for the past 10 years I was already adjusted to bringing home less a month than what my current pension is with the penalty. I figured my health and getting out early was worth more than a few hundred more a month. I am not scoffing at a few hundred a month I am just saying that I really felt getting my life in a healthy direction was much more important. We shall see how the economy goes but I don't see having to dip into that deferred comp account for many years. I have more there than I did in my pension and that pays $2300 net a month. It does feel weird to not be saving anymore but honestly................. enough is enough and I just have to learn how to sit back and enjoy after years of being an ant instead of a grasshopper. I am blessed with a husband who saw it even before I did and has supported me in letting go and taking care of myself for a change.
awakenedsoul
8-27-12, 9:59pm
Awakenedsoul,
I'm still trying to find ways to reduce my spending. I got rid of all cable and love not having the option to turn on the TV. I recently started making my own cat food - I make a batch on Sunday and put it into glass jars. The cats love it and it is so much healthier and less expensive than what I used to feed them. I love trying to find ways to cut expenses and live more simply. My personal economy is not great at the moment but i'm working on it!
Minz,
I don't have television anymore, either. I've thought of cutting out the trash collection and splitting it with another neighbor who is also a single woman. I only put out one bag a week and I pay $23.00 a month. But, I do all my own tree trimming, and I have two large green bins I use several months a year. Plus, I really like having the convenience of it and not having to go to the recycling station. I use the yearly bulky item pick up, too. I canceled my landline and just use my Jitterbug phone now. It's only $15.00 a month! Spartana posted her expenses one time at $500. a month, and that really impressed me!
awakenedsoul
8-27-12, 10:01pm
Simplemind,
Congratulations. That is fantastic. I agree with you about health. I find that couples seems to do better financially when one person stays home. (If they are disciplined and frugal like you and your husband.) Thanks for posting your story.
We are happy and hopeful. As a salon owner, I recently broke into a new tax bracket. However with over head, the accepting of credit cards, and taxes, I now only keep a little over a quarter on what I make in a month. Boooo! Now I am changing my perspective on life, and with the help of you fine people, I have changed how I opperate my lifestyle. Today alone I made a list of item to sell so I could build a shed and get a new used computer. Selling all my basement furniture, patio furniture, tv, and stereo system, and my 3rd car! I don't use any of these item, and need to purchase things I will use more frequently. Before I would have been stressed out and adding to an already high credit card balance, just to buy a NEW computer. Now, virtually debt free, I'm making healthier choice with my personal finances, and can say my personal economy is doing well.
I figured my health and getting out early was worth more than a few hundred more a month. I am not scoffing at a few hundred a month I am just saying that I really felt getting my life in a healthy direction was much more important. We shall see how the economy goes but I don't see having to dip into that deferred comp account for many years. I have more there than I did in my pension and that pays $2300 net a month. It does feel weird to not be saving anymore but honestly................. enough is enough and I just have to learn how to sit back and enjoy after years of being an ant instead of a grasshopper. I am blessed with a husband who saw it even before I did and has supported me in letting go and taking care of myself for a change.
Simplemind, I could have written almost exactly those words! Lots of people where I used to work thought I had retired instead of just quit. Yeah, another couple of years would have let us sock some more money into the 401(k). But that was assuming I could make it another couple of years, and that was no sure thing. Since I've quit, my health and my mental outlook has improved greatly, and everyone who has seen me "before" and "after" comments on how much better I look now. I could have spent those extra savings on makeup and medications ... :~) It's also become a lot easier to be frugal because now I have the time to cook more at home, watch the finances, do more house chores/repairs (instead of hiring it out), and "stuff" is no longer the compensation for busy-ness.
What we've encountered on the road to simplicity likely is not anything new to the folks who've been here a while. But we've been quite surprised at how well we've been doing financially so far. It's nice to take a breath. Or two.
awakenedsoul
8-28-12, 11:04am
I was thinking the same thing this morning. Being "retired" is much easier than I thought. I'm one of those people who at 47, realized it's cheaper just to stay home. I check my bank balances on line everyday, and I transfer money from the savings account at the end of the month to set up the budget for next month. I think that people are manipulated into fearing retirement, but it's really easy. For me, it's a relief. Lots of chores and organization. I sat down this morning at looked wrote our a new budget, implementing my cut backs. Wow! If I really had to, I could live on $10,000. a year! When I was working, I thought I needed $24,000-$30,000. a year. (That's without a mortgage.) My hobbies are much cheaper, I exercise in my living room, and my therapy is knitting. My neighbor was staring at me the other day, because I was up on the roof, sweeiping off the debris. If I can do it myself, I do. I guess I look kind of peculiar. Next, I think I might paint the exterior of the house!
We've definitely been spending more in the last few years, unfortunately. Our family grew by one in 2011, and our DD#2 is able to use much of what DD#1 used, but life is just busier. We eat out more, our rent went up. We are spending about 40K/year, and I want to be able to live on much less. In 2009 it was more like 26K/year. But we could swing it in a tiny (399 sqft for a family of 3!) apartment back then, and rent is over double what it once was. Still, that is only 8K of the increase or so. It's hard to believe so much is getting frittered away, but I honestly haven't taken a good look at spending in a long time. Still tracking it decently, but not looking at it or doing anything about it. I'm hoping to turn things around soon.
try2bfrugal
8-28-12, 12:06pm
I sat down this morning at looked wrote our a new budget, implementing my cut backs. Wow! If I really had to, I could live on $10,000. a year! When I was working, I thought I needed $24,000-$30,000. a year. (That's without a mortgage.) My hobbies are much cheaper, I exercise in my living room, and my therapy is knitting. My neighbor was staring at me the other day, because I was up on the roof, sweeiping off the debris. If I can do it myself, I do. I guess I look kind of peculiar. Next, I think I might paint the exterior of the house!
We do something similar. We have a master budget and I keep trying to whack away at the recurring expenses so our basic run rate is as low as possible. We were able to cut off about a third to start when my husband quit work just through having time for more DIY work, no commute costs, less to pay in taxes, etc. I started shopping at pack it yourself warehouse store that has prices about 30% lower than the regular grocery store. So with a family of four adults that was several thousand dollars in savings right there. Cutting back on restaurant meals, fast food and work lunches cut a few thousand more. If we live another 40 years, every $10 a month we cut is a savings of almost $5K in after tax money. So $10 a month here and there really reduces the total amount of money we will need saved in order to fully retire.
I stopped buying new books and now borrow them from the library or buy them for $3 a bag at the library book sales. I am building up an inexpensive reference library of DIY and simple living books this way. Every month we try to find some more recurring costs to chop, make recurring income from work or find some way to manage our 401Ks better to eek a little higher return out of them while reducing risk as much as possible. We have quite a long list of projects to go to try to keep cutting our expenses more.
I really think about how much money we spend on everything and is it worth the cost. I bought some discount tickets to Cirque du Soleil a few months ago, but even with the discount by the time I added in mileage parking and service charges on the tickets for me it just wasn't worth it. I had more fun working at our archery club since that involved exercise in a scenic, social, outdoor setting with a free lunch or spending the afternoon at an art museum with a free library pass and a sack lunch.
Right now it's really bad. DH got laid off from his day job he took last year. We just finished a big art project but that money won't last longer than a few months. I only work part-time. Not sure what is next for us but I wish it would get here quickly.
Just got better. DH got a new job - better pay, actual benefits, vacations, holidays, retirement plan, etc. He'll still have time to work on orders as they come in but we have decided that we are done traveling to art shows (at least for 3 years until the boys are done with high school). I think I'm going to try and talk him into selling our booth display and tent. Those are both expensive items that just taking up room in the storage addition to our studio. Time to clean house (studio).
Yay! That's great news Float On! What a big sigh of relief for you all!
awakenedsoul
8-28-12, 1:28pm
Fantastic news, FloatOn! Congratulations. That was quick. Good luck selling your equipment. I did that with my dance studio floor, and it was a huge relief. I'm sure if you cut out the traveling, that will free up some money, too.
try2bfrugal,
I know what you mean. I just looked at places I wasted money last year.
Argentine Tango lessons: I bought the shoes, spent $1,000. on private lessons, drove 30 miles each way to dances twice a week, and hated it! I thought I was going to learn a new skill and start teaching it out here. Ballroom teachers make excellent money. Wrong...
I bought some antiques at the Salvation Army, but they were excellent deals. They are solid furniture that won't have to be replaced. No more lamps, though. I have enough. (Those are my weakness.)
I stay off EBay, and make myself wait to make purchases. For example, I almost bought a Smeg refridgerator. I rationalized that I needed to replace the old one, since I've had it for 15 years. I did some research, and it got horrible reviews. Instead, I fixed the old one. It will probably last another 5 years.
Right now we're doing just fine. Both retired; I have small federal annuity and social security, and DH has federal annuity (he never paid into SS so doesn't get any). No debt at all. Well, we do charge a lot on our credit card, which is linked to Amazon, and we get "points", but it's paid in full every month. So while it actually IS debt, I don't count it as debt. However, our spending is not under control, and that worries me. Monthly, together, we bring home about $4,000. I "gave" DH my small annuity to spend as he wishes on his "toys" -- so I don't feel like I'm his mother and controling his spending. His hobbies seem be fairly expensive -- geocaching, woodworking tools and supplies, latest tech gadgets -- but that's his spending $$ and if he can afford it he can do what he wants and leaves me alone. (I have a small personal allowance as well.) But beyond that we seem to spend money at the drop of a hat. Not on expensive things -- just "things". We donate to a lot of worthy causes that are important to us. We support small local businesses and that usually costs more than big-box stores. We subscribe to magazines that we seldom read. But we're never in the hole, never worrying about how we're going to pay for our necessary expenses. We have "enough". But I feel a bit uneasy all the time -- and for that reason we're signed up to take Dave Ramsey's course offered at our local church. We're in no financial difficulty at all, but we just need to be more conscious about our money. If things go belly-up and we "lose everything" we have no way, at our age, to recoup our losses. My parents were Depression "Grapes of Wrath" folks, and I worry. I want to pull all our money out of investments/bank and put it all in a box under our bed! OK ... got all that off my chest ... whew ... :confused:
I just looked at places I wasted money last year.
Argentine Tango lessons: I bought the shoes, spent $1,000. on private lessons, drove 30 miles each way to dances twice a week, and hated it!
Gee, I've been dying to take Argentine Tango lessons!! Thanks for the hint that maybe it wouldn't be as great as I'm imagining it.
I'm enjoying listening to all the stories for inspiration.
fidgiegirl
8-28-12, 6:11pm
Right now we're doing just fine. Both retired; I have small federal annuity and social security, and DH has federal annuity (he never paid into SS so doesn't get any). No debt at all. Well, we do charge a lot on our credit card, which is linked to Amazon, and we get "points", but it's paid in full every month. So while it actually IS debt, I don't count it as debt. However, our spending is not under control, and that worries me. Monthly, together, we bring home about $4,000. I "gave" DH my small annuity to spend as he wishes on his "toys" -- so I don't feel like I'm his mother and controling his spending. His hobbies seem be fairly expensive -- geocaching, woodworking tools and supplies, latest tech gadgets -- but that's his spending $$ and if he can afford it he can do what he wants and leaves me alone. (I have a small personal allowance as well.) But beyond that we seem to spend money at the drop of a hat. Not on expensive things -- just "things". We donate to a lot of worthy causes that are important to us. We support small local businesses and that usually costs more than big-box stores. We subscribe to magazines that we seldom read. But we're never in the hole, never worrying about how we're going to pay for our necessary expenses. We have "enough". But I feel a bit uneasy all the time -- and for that reason we're signed up to take Dave Ramsey's course offered at our local church. We're in no financial difficulty at all, but we just need to be more conscious about our money. If things go belly-up and we "lose everything" we have no way, at our age, to recoup our losses. My parents were Depression "Grapes of Wrath" folks, and I worry. I want to pull all our money out of investments/bank and put it all in a box under our bed! OK ... got all that off my chest ... whew ... :confused:
I am feeling similarly lately. We have plenty, and actually getting back into tracking and the 3 questions is oddly, seeming to make me spend more easily, because when I think of it in terms of my hourly wage, and then if it is me and DH I tend to think of only having to pay for half since somehow he has earned the other half (we use a Real Hourly Wage that is averaged because our personal RHW's are very very similar), then it seems like an even better "deal" in terms of my life energy. But the cumulative effect of all these small ok-feeling spending does NOT feel ok.
For the rest, though, I feel good. I'd like to find a source of income to supplement that could kind of be the dynamite to blast off our mortgage repayment like Dave Ramsey talks about with personal debt repayment. But I haven't hit on it yet. I'd even teach an additional course or something but it has to be just the right opportunity to fit with my full-time employment. We'll see.
rosarugosa
8-28-12, 8:01pm
Float On: Congratulations on your excellent news!
We are living on a lot less than we were a few years ago, and due to a shift in perspective and more mindful spending, we are feeling more financially on top of things than ever before. Funny how that can happen. In absolute terms, we have far more in savings, so the greater income we used to have was not really getting us ahead; it was just slipping through our fingers.
I want to be debt-free like so many of you. I'll get there! My income is sporadic because I'm a realtor but I love what I do so I suppose I'm lucky that way. I've been trying to think of other ways to bring in some extra income. It's inspiring to read posts to see how others have gotten out of the red and into the black.
awakenedsoul
8-30-12, 8:27pm
Gee, I've been dying to take Argentine Tango lessons!! Thanks for the hint that maybe it wouldn't be as great as I'm imagining it.
I'm enjoying listening to all the stories for inspiration.
Me to. Well, the Argentine Tango lessons weren't at all like I had visualized. I even had the winning tango choreographer from Dancing With The Stars! It just didn't suit my personality. I cannot follow. I've always been cast as a leader in my family, career, etc. The women who were the best followers in class had no dance training. (I danced professionally for 30 years.) Oh well. At least I realized I was throwing money away, and stopped. Also, there's a lot of arguing and drama. I can't deal with that. I just wanted to memorize the choreography, and the woman is not allowed to memorize or think.
minz,
The Dave Ramsey books helped me get out of debt very quickly. I love how he breaks it all down. The $1,000. baby emergency fund really gave me confidence. There are so many free things you can do at home. For me, I found it easier to reduce my expenses than I did to save my income. The $10,000. reduction has really made a difference for me in the last three years. Night and day...
Blackdog Lin
9-1-12, 6:50am
Our personal economy is doing better than ever right now.....but ask me again in 6 months! :)
We've been able to get out and stay out of debt for quite a few years, and have enough discretionary income, more than enough for our needs, and plenty left over for wants. To the point where I took the plunge, sent in my retirement paperwork, and will transition from a generous biweekly paycheck to a modest-but-decent monthly pension 4 1/2 weeks from today. Whew! Scary, but exciting too.
On paper it's very doable, but one always wonders. The plan is for us to live even more simply than we do today, and scale back even more than we do now. We're homebodies anyway, no plans (or abilities, in DH's case) to travel or live large in any way, we're just looking forward to having the time to do more puttering about the house, and smell the roses. I have a year's worth of cleaning and organizing projects planned that will both keep me busy and probably save us even more money too. We'll see, I guess.....
awakenedsoul
9-1-12, 4:12pm
That's fantastic, Blackdog Lin. I have done the same thing. I need far less, now that I'm not working. I have more time, and plenty of clothes, hobbies, books, and supplies. I could actually reduce my expenses even further, if needed. I think more people would retire early if they knew how cheaply they could do it. It's a certain kind of personality that values time over money. In my case, my orchard and garden are really starting to produce. I'm excited, because food is my biggest expense. The garden is reaching its potential far faster than I expected. A big part of that is because I am home to to the daily work!
Good for you, Blackdog Lin! You'll have to keep us posted on how actual retirement turns out vs. what you thought it might be. Enjoy yourself!
Just posted about this...
Things are OK but it's become clear we need more money.
It's better than being unemployed, for sure!
Oh blackdog lin, how great!!
Congrats Blackdog Lin! We had the same thought when we scaled back to one income. I knew we would be OK, but I was worried that it might be a little tight some months. It's been great so far. We even survived some emergencies and put quite a bit of money away. Summer has been kind of expensive, but we always seem to buckle right back down in the fall months.
Blackdog Lin
9-5-12, 8:02pm
Thank y'all for the good wishes.
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