Your Financial Successes of 2012

[Life_is_Simple]

As the end of the year is near, I am wondering how you guys did on your finances. A few questions to get your started:

How is your Emergency Fund?
How about your retirement funding?
Any debt paydown?
Any new savings techniques you have found useful?
Is your spending decreasing in any categories?
How did you do against any goals you may have had?
What's one success you had that you can pat yourself on the back for? ;)
Any positive influence you had on other people's finances?
Any examples of saving in one category, so that you can spend on what is important to you?
Other ______>8)

Feel free to answer any of the above questions, or none of the above ;)

[ctg492]

How is your Emergency Fund? >>No growth
How about your retirement funding?>>Small advance
Any debt paydown?>>had none to begin with
Any new savings techniques you have found useful?>>sadly nothing this year, but plans for 2013
Is your spending decreasing in any categories?>>no
How did you do against any goals you may have had?>>2011 was a traumatic personal year, never had time to plan for 2012 so no goals to reach
What's one success you had that you can pat yourself on the back for? ;)>>made it through 2012 and things are now good
Any positive influence you had on other people's finances?>>none obviously if you read "other"
Any examples of saving in one category, so that you can spend on what is important to you?>>not this year
Other ______>8)>>voiced opinions on a very Larger purchase husband made this year that went against every grain of my fabric, first time since 1978 this happened. This purchase was the reason for all the above non growth. :|(


Having said all this, I suppose one year of no growth in my adult life of planning is OK. 2013 now that is going to be a great year for everything, I just know it!

[shadowmoss]

I paid off my credit cards. All $40K (over 2 years). The house is on the market (it's in Nashville, I'm in Honduras). The Jeep will be paid off with my next paycheck, balance is down to $2.5K. I'm almost to where I can breathe again. And come back to the States.

[Kat]

2012 ended up being a tough year for us financially. My work situation hasn't been working out for a number of reasons, and we had a lot of medical bills due to DH's broken foot and the impending arrival of Baby #2 (the latter of which we are thrilled about despite the cost :-) )

Even so, we did manage to stay out of debt and pay cash for all expenses. We also paid down our mortgage by about $7000 and refinanced at a great rate. We also tucked away a good chunk of change for DD's college and looked into better yet cheaper insurance for her, which will take effect in 2013. We also saved a little for retirement each month. So, not horrible, but hopefully next year will be much, much better!

[Kat]

And shadowmoss...that is awesome! You are doing GREAT!

[SteveinMN]

How is your Emergency Fund? <-- still in fine shape; I thought we would have to touch it to pay property tax, but it turns out we didn't.
How about your retirement funding? <-- 90% set. Between pensions, deferred comp savings, annuities, and some investments, we can be pretty much on autopilot and should not have to touch SS until at least 65 (more likely 70). Still have a Roth IRA to put to work.
Any debt paydown? <-- beyond the car payment? No. That's okay. This was a year of transition.
Any new savings techniques you have found useful? <-- nothing truly new. Just new for us in looking at spending far closer than we have in the past.
Is your spending decreasing in any categories? <-- discretionary spending hit rock-bottom until we figured out how we were doing. It's gone up some but we're still careful about what we're spending on. Travel and gifts were decreased quite a bit, but the food budget went down, too.
How did you do against any goals you may have had? <-- I got to walk away from a job I hated and its substantial income without bringing us to the financial brink or having to find a McJob.
What's one success you had that you can pat yourself on the back for? ;) <-- see above re: job.
Any positive influence you had on other people's finances? <-- Many people think i retired from work. But I'm not yet 55 and I didn't retire, I quit. When people find that out, they are curious about how our finances allowed me to get off the hamster wheel. I like to hope that some people look at their burned-out, debt-ridden selves in the mirror and realize that they, too, have the choice to do what I did.
Any examples of saving in one category, so that you can spend on what is important to you? <-- none that come to mind off the top of my head. A lot of trimming. I suppose not spending the way we did meant I didn't have to throw myself into my photography business; I could move into it on my terms and at my pace.

[Rogar]

I no longer work and depend on my conservative investments for over half of my income (the rest is a small pension). Every month I add up my various accounts to see how things are going and this year my year end balance is greater than it was at the beginning of the year. I consider that a great success since I've been pulling out my allowance from things through the year.

I haven't made any big changes to my investments allocations for a few years in spite of the temptations, which I also consider a success.

I drive an older car (paid off) and license and insurance has been gradually going down. This year I stuck to some pledges to cut way back on driving, which has saved even more. My number is coming up for a replacement and i'm not looking forward to the extra costs. My window replacements, extra insulation, and wood burning fireplace insert investments of a few years ago are gradually giving me some payback on energy costs each year. All long distance travel got cancelled this year due to some expensive home repairs.

I routinely advocate to friends who are heavy into stocks to be more conservative and diversify. I don't know how much progress I make, but have a couple of friends who have thanked me a few times since the big meltdown.

[fidgiegirl]

How is your Emergency Fund? Not where I would like it to be. We depleted it quite a bit to pay for renovations, and it's building more slowly in our new house. It is time to rebuild this with intensity. We are building a separate car fund so it should help our EMERGENCY fund feel truly for emergencies, not just any old savings goal.
How about your retirement funding? Not sure. I want to check with our fee-based planner to get his take and do more research on how much we need. I have mixed feelings about retirement vehicles lately. If I want to leave paid employment sooner than that, why lock up my money in something I can't touch until later? But this isn't really based on facts, only gut - so more research is in order.
Any debt paydown? We paid off a 0% Home Depot credit card we'd used to finance our appliances. We also refi-ed the mortgage, which will accelerate this in 2013 after EF is built again.
Any new savings techniques you have found useful? No, and in fact we have to look for some. I suspect doing the monthly questions from YMOYL would help us.
What's one success you had that you can pat yourself on the back for? ;) We bought our home in November 2011 and refied in October 2012. It appraised for $50K more than we paid for it. Part of this was the market and that we got it for a steal, but part was our hard work.
Any positive influence you had on other people's finances? Well, one friend told me that she has decided I'm the person to come to with questions about poop or money, so maybe I have. :)
Any examples of saving in one category, so that you can spend on what is important to you? This year we passed on a big trip so we could have more for nesting in our new home. But next year we plan to go somewhere farther afield than we might in the car.


Thanks for these questions! We are talking a lot about money lately (seems like we always are . . . ) and they help us to clarify goals for the next year. Enjoying all the responses.

[jennipurrr]

How is your Emergency Fund? - it is small...just a few thousand $, which too small for comfort but we are working on the mortgage right now and are keeping it that way purposefully. I do have a Roth IRA someone mentioned that I could pull principal from in the event of a true emergency. I hope that is never needed, but made me sleep a little easier.

How about your retirement funding? - good, just kind of chugging along with that. We put 5% in 403b and also contribute to a pension. When the mortgage is paid off we will have to decide exactly what to do with that.

Any debt paydown? - mortgage! Down to right around $20,000. Two years ago we started with a balance of 80 something thousand...so happy about the progress.

Any new savings techniques you have found useful? - not that I can think of

Is your spending decreasing in any categories? - personal care, but only because I am bartering for haircuts. Still, no money changing hands and we both save on taxes. Other than that we are pretty stable. Would like to spend less on food in my mind, but it doesn't work out IRL.

How did you do against any goals you may have had? - mortgage was the goal for the year and we are coming along

What's one success you had that you can pat yourself on the back for? ;) - mortgage paydown has been it for the most part. Also, DH and I both took on new positions at work this year and are navigating that.

Any positive influence you had on other people's finances? - someone in my class found my mortgage blog so I spent a while talking about YMOYL to classmates...maybe someone will become a convert...or at least have a different perspective on debt, etc.

Any examples of saving in one category, so that you can spend on what is important to you? - the biggie is that we kept the old car despite it getting more and more clunkery...its 12 years old now, getting close to 200K. It has started having little issues and ran hot a couple weeks ago but coolant seems to have fixed the issue. The drivers window doesn't roll down, which is kind of embarrassing. If it can just last through 2013 not having to think about a new car will help us get the mortgage paid off. After that the longer we keep it the more we have to spend on practical stuff and fun stuff like traveling. I don't care about appearances too much, but its making me a little nervous bc of its issues. However, we only put about 3,000 miles on it a year and only around town, so it should be ok.

Other ______>8)

[Mighty Frugal]

How is your Emergency Fund?
No change. Hoping 2013 we can add to it

How about your retirement funding?
only adding 6% of gross (3 from me and 3 from employer) as well as another bit from my own account. Same as always-not very aggressive but that's all we can do

Any debt paydown?
No debt to pay-we pay our cc off every month. Proud that we were able to get done some major electrical work ~$10k without dipping into savings.

Any new savings techniques you have found useful?
We are now really thinking before buying anything. I try to avoid buying new clothes. My dh lost his job in the middle of 2012. So I am just proud are able to maintain status quo without going into debt.

Any positive influence you had on other people's finances?
a few online friends have asked for my budget spreadsheet which they love (it has YTD in it and is very detailed-I'm proud of it)

Any examples of saving in one category, so that you can spend on what is important to you?
We are more careful with clothing spending so we have enough for mini vacations we take as a family. We are so careful about eating outside the home, but we freely spend at the Lindt store when chocolate is on sale!

[ApatheticNoMore]

•How is your Emergency Fund?

Fine I have enough there

•How about your retirement funding?

Increasing, saving 20% or so but not all in retirement accounts, much of it though

•Any debt paydown?

Nah, I have no debt except monthy CC debt that gets paid off monthly. But before you envy me remember I'm a renter afterall.

•Is your spending decreasing in any categories?

Food! Shopping weekly with a weekly grocery list with planned out meals for the week (more or less, it's not a military regimen or anything), and seeing what is in the fridge first, really really helps. I didn't start that for that reason, I started it because my schedule and commute presently leaves me little time to shop for food. I'm also kind of over my experimentation period with food as well which helps. One way I'd experiment is to try every fancy thing in the market because ohhhh shiny and haha somewhere like WF is full of shiny for instance, but even the farmer's market in summer has plenty. I have neither the time or inclination to do that quite so much. I know if every fruit looks nice in summer, that I don't even eat that much fruit! So no I don't need to buy everything - I can stick to one pack of rasberries and some bananas for the week or something. Another way I'd experiment is by trying lots of different diets, but many of them would make me feel like cr@p. So I stick to a MUCH more limited variety of foods these days that I know I tolerate well (still sometimes overdo dairy, but at least stick to the full fat stuff that has less lactose and casein and sometimes pre-digested stuff like yogurt etc.). Of course veggies are almost never a problem, so I'll happily experiment with those.

[fidgiegirl]

jennipurrr, what are you bartering for the haircuts?

[awakenedsoul]

As the end of the year is near, I am wondering how you guys did on your finances. A few questions to get your started:

How is your Emergency Fund?
How about your retirement funding?
Any debt paydown?
Any new savings techniques you have found useful?
Is your spending decreasing in any categories?
How did you do against any goals you may have had?
What's one success you had that you can pat yourself on the back for? ;)
Any positive influence you had on other people's finances?
Any examples of saving in one category, so that you can spend on what is important to you?
Other ______>8)

Feel free to answer any of the above questions, or none of the above ;)

Fabulous thread! I'm so impressed with what I'm reading! You should all be very proud of yourselves.

My emergency fund is at capacity. I've found that by driving only once a week, and keeping up on my home repairs, I haven't had any emergencies this year. The only one was a car repair bill for $300. when my check engine light came on. I had to replace the sensor. My car is a 2004 Kia.
My retirement is funded. This is thanks to ultra frugal habits and investments by my father and grandfather. I also can live on between $15,000.-$20,000 a year. So, I've calculated that I need approx. $400,000. for retirement.
Fortunately, my debt is paid off. That's what made the biggest difference in my finances. Wiping out interest payments has tipped the scales in my favor. I cut up my credit cards and instead have an emergency fund. Closing my business also reduced my expenses greatly.
New savings techniques: Growing my own food has saved me a significant amount of money. I'm a big fruit eater, so having my orchard come into maturity (after 14 years,) has been very exciting and fulfilling. I used to order a box of produce from my local organic co op weekly. Now I only buy from them every six weeks or so. I order their meats and dairy.
Spending: I went on EHealthinsurance and found a cheaper policy with a higher deductible for $120. a month. I was paying $125.00 a month for catastrophic, so that will save me $60.00 a year. Actually, they were going to raise my rates, so it's saving me more like $300. a year. If it weren't for the Dave Ramsey techniques, I wouldn't be able to afford the deductible. Cash in savings really gives you an advantage. I haven't needed to buy any clothes in the past two years. I've spent time every day mending my clothing and darning my socks. I have good quality clothing, and I take care of it and hang it to dry. Some of my sweaters have lasted 15 years, and they are still beautiful. My spending is also decreasing in food, thanks to the organic garden, backyard orchard, and buying in bulk at Costco. I also am able to cook and bake everything from scratch, since I stay home. My gasoline costs have dropped, since I use my bike most of the time. I just drive the car once a week to keep it running. My car registration and insurance are lower because of that, too. The car has 124,000 miles on it. I should be able to keep it a long, long, time. I've done all the servicing.
Goals: I had enough money left over at the end of this year to splurge on new tile for the bathroom. I paid cash, (3,300.) and it's absolutely gorgeous! It's a night and day difference from the tub/shower and workmanship that was there before.
Positive influence: I'm not sure about that one. My parents seem very pleased at the improvements I've made on the house. It was a real eyesore when I bought it. My mom told me after seeing the photos of what I've done, "Your house is just so perfect, I would like to live there!" (They live in a very wealthy area. I don't.) I used to struggle to pay my property taxes and repairs. (And I mean for over ten years!) Now, with this lifestyle, I'm able to pay my bills ahead of time and be super organized.
The other questions I've already answered above. I look forward to reading more responses!

[fidgiegirl]

awakenedsoul, when I read your posts like this, I am always reminded of how important it is to do the monthly questions, including the one about will the expense go up or down in FI. I realize you may not yet consider yourself FI, but that you are not in paid employment is kind of the essence of it for me. And look at all your are able to do because you have time at your disposal. I find you really inspiring.

[Gardenarian]

How is your Emergency Fund?
We don't have a separate Emergency Fund; we do have healthy checking accounts that give interest.


How about your retirement funding?
Again, hard to separate our investments - but I do have a good pension plan and keep up an IRA. I don't plan on officially retiring anyhow.


Any debt paydown?
Debt free for many years.


Any new savings techniques you have found useful?
Hmmm, no.


Is your spending decreasing in any categories?
Reduced our energy use about 1/3 over the past few years. We've been doing a lot more of our own home maintenance.


How did you do against any goals you may have had?
A couple of years ago I did a "No new clothes year." I recently realized that I bought no new clothes at all this year, though I didn't have that as a goal.


What's one success you had that you can pat yourself on the back for? ;)
Buying a cabin and doing a ton of work on it myself.


Any positive influence you had on other people's finances?
Possibly. My siblings and I have been talking a lot about $$ since my mother died, and it is extraordinary (to me) how much they spend. They've been asking lots of questions about how we can afford to live the way we do (which looks pretty high on the hog, but isn't) when we both work part-time. My sibs are in the "I NEED a Rolex, I NEED a new car every 2 years" kind of mind set.


Any examples of saving in one category, so that you can spend on what is important to you?
Well, I guess it's just keeping in mind what is most important to me and investing my time and money in those things. So, $2500 for dd's braces? Yes. $100 for a restaraunt meal when I prefer eating at home? Nope.


Thanks! This was a fun way to look over the past year.

[awakenedsoul]

awakenedsoul, when I read your posts like this, I am always reminded of how important it is to do the monthly questions, including the one about will the expense go up or down in FI. I realize you may not yet consider yourself FI, but that you are not in paid employment is kind of the essence of it for me. And look at all your are able to do because you have time at your disposal. I find you really inspiring.

Oh thank you fidgiegirl. I read YMOYL back in 1990. I agreed with all the principles. The thing that has helped me the most has been to follow my intuition. This little house sat here vacant for two years. I saw it with a sign in the window that said, "For Sale $69,000." I had no cash at the time, but ended up renting it. After the owner saw how I had fixed it up, he offerred to sell it to me. When my parents saw the land, and what I had done so far, they saw it as an investment opportunity. Because my mother was such an excellent housekeeper, cook, and decorator, I had a good model growing up. I found incredible deals at the Salvation Army, and all of a sudden this cottage looked like a bed and breakfast. Being a dancer, and living on so little, I had learned how to make the most of a small space. I got to work with some of the best costume designers, choreographers and directors in the business. I really studied what made them great. They had such an eye, and such attention to detail. It taught me to make the most of what I had. I worked a lot in Europe, and I was really impressed with their lifetyle.

You're right, because I have the time, I can really apply myself and it saves me a ton of money. I'm sure you and everyone else here will do the same. You're making incredible proggress, and once the interest payments are gone, it's a hundred times easier.

[Life_is_Simple]

Other ______>8)>>voiced opinions on a very Larger purchase husband made this year that went against every grain of my fabric, first time since 1978 this happened. This purchase was the reason for all the above non growth. :|(


I'm not usually a nosy person by nature, but I will bite on this one. I am wondering what the large purchase was? You don't have to answer, but.... Is it bigger than a breadbox?

[Life_is_Simple]

I paid off my credit cards. All $40K (over 2 years).
Wow!!! All I can say is ... WOW!!!:+1:

[Life_is_Simple]

2012 ended up being a tough year for us financially. My work situation hasn't been working out for a number of reasons, and we had a lot of medical bills due to DH's broken foot and the impending arrival of Baby #2 (the latter of which we are thrilled about despite the cost :-) )

Even so, we did manage to stay out of debt and pay cash for all expenses. We also paid down our mortgage by about $7000 and refinanced at a great rate. We also tucked away a good chunk of change for DD's college and looked into better yet cheaper insurance for her, which will take effect in 2013. We also saved a little for retirement each month. So, not horrible, but hopefully next year will be much, much better!
That sounds like a lot, actually. You saved on many fronts, which is what I find to be the hardest thing. :+1:

[ctg492]

Life_is_Simple, I mentioned this before, so the shame on a frugal/simple board is now gone:|(, It was a a car, no not simple by any means and when I say what you will understand..... Lamborghini. I am pasted it now, I do not ride in it, I stopped the comments, and just call the yellow thing 3MLC....third mid life crisis.

[Life_is_Simple]

...
How did you do against any goals you may have had? <-- I got to walk away from a job I hated and its substantial income without bringing us to the financial brink or having to find a McJob.
What's one success you had that you can pat yourself on the back for? ;) <-- see above re: job.
Any positive influence you had on other people's finances? <-- Many people think i retired from work. But I'm not yet 55 and I didn't retire, I quit. When people find that out, they are curious about how our finances allowed me to get off the hamster wheel. I like to hope that some people look at their burned-out, debt-ridden selves in the mirror and realize that they, too, have the choice to do what I did.
...

That's pretty great! :cool: And a little bit entertaining about the inquisitive work people ;) Hopefully some things you said rubbed off on them.

Management is usually surprised too when someone quits during a poor economy, thinking that they have more control over people during those times.

[Life_is_Simple]

I no longer work and depend on my conservative investments for over half of my income (the rest is a small pension). Every month I add up my various accounts to see how things are going and this year my year end balance is greater than it was at the beginning of the year. I consider that a great success since I've been pulling out my allowance from things through the year.
...

That's really, really good. And inspiring for those of us who are still working. :)



I routinely advocate to friends who are heavy into stocks to be more conservative and diversify. I don't know how much progress I make, but have a couple of friends who have thanked me a few times since the big meltdown.
Every now and then someone listens...

[Life_is_Simple]

How is your Emergency Fund? Not where I would like it to be. We depleted it quite a bit to pay for renovations, and it's building more slowly in our new house. It is time to rebuild this with intensity. We are building a separate car fund so it should help our EMERGENCY fund feel truly for emergencies, not just any old savings goal.


This is what I wonder about sometimes...Should a person have separate savings funds for various things? Mine is all just in one lump pile. Is it hard to separate them?



Any positive influence you had on other people's finances? Well, one friend told me that she has decided I'm the person to come to with questions about poop or money, so maybe I have. :)


In case you're wondering, I'm not going to ask you any questions about poop. ;) I may ask questions about money, however :laff:

[Life_is_Simple]

Any debt paydown? - mortgage! Down to right around $20,000. Two years ago we started with a balance of 80 something thousand...so happy about the progress.


Wow. That is a LOT in just 2 years!!! :+1:

[Life_is_Simple]

Any positive influence you had on other people's finances?
a few online friends have asked for my budget spreadsheet which they love (it has YTD in it and is very detailed-I'm proud of it)

Can you give a brief description of your budget spreadsheet? I am wondering if you might have some helpful tips? :thankyou:

[Life_is_Simple]

•Is your spending decreasing in any categories?

Food! Shopping weekly with a weekly grocery list with planned out meals for the week (more or less, it's not a military regimen or anything), and seeing what is in the fridge first, really really helps. I didn't start that for that reason, I started it because my schedule and commute presently leaves me little time to shop for food.
...

I'm finding that one of the main spending categories that I'd like to reduce is Food/Groceries. I'm wondering if I should track individual food sub-categories, or what... I think that certain things I like to eat are expensive - maybe the shiny thing phenomenon that you mentioned...

[Life_is_Simple]

Life_is_Simple, I mentioned this before, so the shame on a frugal/simple board is now gone:|(, It was a a car, no not simple by any means and when I say what you will understand..... Lamborghini. I am pasted it now, I do not ride in it, I stopped the comments, and just call the yellow thing 3MLC....third mid life crisis.
I don't even think I've ever seen one of those in real life! That's quite a mid-life crisis. You say there have been 2 previously mid-life crises?

[jennipurrr]

Life_is_Simple, I mentioned this before, so the shame on a frugal/simple board is now gone:|(, It was a a car, no not simple by any means and when I say what you will understand..... Lamborghini. I am pasted it now, I do not ride in it, I stopped the comments, and just call the yellow thing 3MLC....third mid life crisis.

I thought maybe you were my Mom for a minute when I read the first post...my Dad came home from an auction with an RV this year and I have never seen her so mad for so long in their 30+ year marriage! She is over that, but she refuses to ride in it too, so, so far it has just been sitting there. I am hoping DH and I can use it in the future if we can handle driving it :)

[jennipurrr]

jennipurrr, what are you bartering for the haircuts?

Time in my short term vacation rental...its worked out pretty well so far! One year of hair stuff for us just about equals 1 week at the beach.

[awakenedsoul]

This is such an excellent thread. I was mentally going over my expenses and realized that I did cut my expenses in training. I used to take dance classes when I was teaching ballet. Last year I spent over $1,000. on Argentine Tango lessons, thinking I could teach that and make great money. Wrong. It was a very expensive lesson. (Although I guess it wasn't as expensive as a Lamborghini or a an R...) Still, those brand new shoes are just sitting there. This year I took a month's worth of knitting lessons, but they were only $5.00 a class. I also reduced my phone bill. I was spending $80.00 a month with A.T.&T. Now I have a Jitterbug, and it's only $20.00 a month. ($40.00 if I want to talk a lot.) So that's a sizeable reduction. Because I have savings, I'm able to pay my water bill for the year in January. I save 5% by paying it in advance.

I also saved $3,000-$7,000. on the tile job by finding a company further away who charged more reasonable rates. I found them on line. They have been in business for over 50 years. I'm so glad I didn't go with Home Depot's contracter. Some people see an old house and they automatically jack up the price.

[Mighty Frugal]

Can you give a brief description of your budget spreadsheet? I am wondering if you might have some helpful tips? :thankyou:

Well, probably not helpful for this crowd but it sure helped others. Here's a quick paste of it:

The bold ones across top are the cells I populate each month-except for formulas built into the variances and YTD variances. I pre-populate this with my budget-this is a monthly budget. Then, as the month goes on I enter in the actual-I just add a = at the beginning and keep + until the month is done. The formula will calculate my variance and my YTD variance.

Below my expenses I do the same with income for the month. Below that is the monthly variance between actual income and actual expenses. Hope this helps
Expenses Budget Actual Variance Variance YTD
expense
expense
expense
expense
expense
expense
expense
expense
expense
expense
Monthly Total

Income
1st cheque
2nd cheque
3rd cheque(twice yrly)
1st cheque
2nd cheque
3rd cheque(twice yrly)
Monthly Total
Variance

[Life_is_Simple]

...
New savings techniques: Growing my own food has saved me a significant amount of money. I'm a big fruit eater, so having my orchard come into maturity (after 14 years,) has been very exciting and fulfilling. I used to order a box of produce from my local organic co op weekly. Now I only buy from them every six weeks or so. I order their meats and dairy.
...
I haven't needed to buy any clothes in the past two years. I've spent time every day mending my clothing and darning my socks. I have good quality clothing, and I take care of it and hang it to dry. Some of my sweaters have lasted 15 years, and they are still beautiful. My spending is also decreasing in food, thanks to the organic garden, backyard orchard, and buying in bulk at Costco.
...

Awakenedsoul - That is just amazing how self-sufficient you are with the food-growing and clothes-mending. :+1:

What kinds of things do you buy at Costco? Maybe I should try that again.

[Life_is_Simple]

...
Expenses Budget Actual Variance Variance YTD
expense
expense
expense
expense
...

Mighty Frugal - I may try this. I must have tried to Budget a long time ago, and never got it to work for me. Your Variance YTD column especially appeals to me.

I think the fact that certain things vary from one month to the next has kept me from doing a budget. But the YTD Variance column would smooth that out, over time.
:thankyou:

[Life_is_Simple]

Any positive influence you had on other people's finances?
Possibly. My siblings and I have been talking a lot about $$ since my mother died, and it is extraordinary (to me) how much they spend. They've been asking lots of questions about how we can afford to live the way we do (which looks pretty high on the hog, but isn't) when we both work part-time. My sibs are in the "I NEED a Rolex, I NEED a new car every 2 years" kind of mind set.
...


Gardenarian - how do you think it is that you turned out to be frugal, and your siblings are the complete opposite?

[Dhiana]

My husband's hobby of Ironman Triathlons has taken a huge chunk of our budget this past year. Everything from our food budget which has increased to travel expenses and has started to cut into the amount we set aside for savings. This is where I draw the line and say time to make smarter decisions about the events he chooses. While in Australia for his latest triathlon we talked about it how he could still continue to race but with less impact on the rest of our budget. Thankfully he listens when I talk about our budget, both long term savings and the short term so I already feel a bit less stress about moving forward in 2013 :)

We didn't save as much as I was hoping for this year because of the triathlon expenses and then the illegal mismanagement of my student loan I really feel like I've taken a step back this year financially :( I'm already placing more focus on our finances to get us back on the wagon financially. It helps to see how well others here have done and also to see how others have made those positive steps :)

[flowerseverywhere]

we moved to a much warmer climate into a smaller house. Even with the moving expenses, since we lost the high NY property taxes and NY state income tax and many lifestyle costs we have already almost broken even. Food is a little higher here, but I have found some farmers markets and that has made a big difference. I can bike almost every day of the year. Where I live there are pools with shower rooms and we swim daily and shower before coming home. Our energy bill was very low for the month of October and November, and we may not put the heat on this winter by managing the shades on the windows to let the sun in then close to keep it in. We did invest in good window coverings and in the summer we'll have to continue to be careful to minimize our air conditioning bill.

So we have tracked the first few months here and even with the expenses of setting up a new house, such as window coverings we are doing better than ever. We really did not know, and we may have had to find some part time work if our expenses were too high, but all is well. Our darn health insurance is the only thing I feel we have no control over, but I sure am not going to go without it.

We have no debt, so we are structured so that when we collect social security in a few years we could actually live off of it with a barebones lifestyle. That is every comforting to me.

Now one of our goals for the new year is to get new wills in order and figure out how to best structure what we have. Since as a country we have sold our youth down the river, I will do everything in my power to provide a secure financial future for my kids and grandkids. All the adults are hard working professionals who are good about saving in 401's etc, but it really bothers me.

As far as comments go, all these years both mine and DH's sibs have chided me especially for being so cheap but they either are poor with massive debt and barely squeeking by, or still working without a secure future. Sometimes things happen, like illness or plant closings that throw your finances for a loop, but for many of us it is all about managing money, living below your means and planning. Kind of what this thread is all about.

[lhamo]

I'm a little bit scared to post this because I'm afraid it will jinx us, but here goes.

I think in 2012 we more or less became FI, at least in the virtual sense. We now have sufficient assets (barring a huge property market crash in Beijing, which could happen but I think is unlikely in the near future) that if DH and I both lost our jobs we could most likely quit working full time and be able to maintain a lifestyle that works for us. Our networth has increased by leaps and bounds over the past two years, partly due to increases in local property values (our apartment is worth more than double what we paid for it 3.5 years ago) but also due to consistent saving and excellent market returns. Our networth at the moment has increased by over two times annual income in the last 12 months.

Both DH and I are ok with continuing to work for now, but I must admit that my enthusiasm for my job and the daily grind in general has decreased substantially since we hit a major financial "target number" earlier this fall. And as that number continues to go up, I find myself questioning more and more whether our current situation is really what we want/need. DH is a bit scared to explore other options, but I'm hoping our upcoming trip to Hawaii will be a good opportunity for some blue-sky thinking about what the possibilities are. Mid-life crisis? Maybe. But the reality is that we could quit our jobs, sell our apartment and have many, many months (years, actually) to figure out next steps before we would have to start worrying about finances. And really, knowing how we live, we probably don't ever have to worry again. We're pretty much set for life. Wow. Can somebody remind me again why I'm still working? Serious case of baglady syndrome....

So yeah, 2012 has been pretty major in the financial scheme of things. Paying attention to the details over time, and having some awesome luck, really helps get you where you want to go! Good luck to everybody else out there. FI isn't just a dream, it really can be reality. Just hope I have the guts to take advantage of it before I get hit by a bus or eaten by a shark....

[cattledog]

How is your Emergency Fund? >> It's OK. In our savings account we have about nine months worth of living expenses. We could stretch it out if we had too by getting rid of things like DD's activities and DH's data plan on his phone. We had to dip into it this year for some unexpected expenses.

How about your retirement funding? >> We already have a good amount in our retirement accounts (almost enough for a bare bones existence), but we are still putting 15% away.

Is your spending decreasing in any categories? >>Yes, we have cut down the restaurant/takeout meals substantially. We went down to one income and it took a little adjusting.

What's one success you had that you can pat yourself on the back for? >> I quit my job to stay home with my kiddo! It was a good decision overall, although sometimes I find myself second-guessing my decision, mostly because I essentially killed my career. There is no way I can go back to the salary level I had, especially since I am now an "older worker." I'm not sure if I will go back to work or not. I can't imagine trying to coordinate daycare for summer vacations and winter/spring breaks. Maybe it's not as hard as I think it is? If I do go back it probably won't be for another 4 or 5 years, assuming DH's job is stable. By then I will be even older and my skills pretty useless.

[cattledog]

Congrats Lhamo! Ha, ha- I understand the bag lady syndrome. No amount of basic math can seem to overcome it either.

[flowerseverywhere]

Serious case of baglady syndrome....

So yeah, 2012 has been pretty major in the financial scheme of things. Paying attention to the details over time, and having some awesome luck, really helps get you where you want to go! Good luck to everybody else out there. FI isn't just a dream, it really can be reality. Just hope I have the guts to take advantage of it before I get hit by a bus or eaten by a shark....

the baglady fear is real for many of us, especially if you read the headlines or watch the news.

I also hope you can take advantage of it. Now that my kids are grown, married and parents they don't want to sit with me and do crafts and read books or go for bikerides, they are doing it with their own kids!

[awakenedsoul]

Awakenedsoul - That is just amazing how self-sufficient you are with the food-growing and clothes-mending. :+1:

What kinds of things do you buy at Costco? Maybe I should try that again.

Thank you. It was a long proccess, kind of like raising a child. The soil was white when I first moved in. I did a lot of ammending and mulching. I collected leaves and manure from my neighbors. I planted baby trees and waited. All of a sudden I have cases of fruit! It's a lot for one person, so I share it with my neighbors. It means spending time each day storing it and making sure it doesn't rot or go to waste. It's kind of like a part time job. The fruit has to be picked when it's ripe, or it will all fall on the ground.
Yeah, Costco took me a while. At first I hated it. I thought it was way too expensive and that I couldn't afford it. But, once I had extra money, it really had cumulative benefits. Now I spend very little because I have such a great stockpile. These are the things that I buy there: coffee, juice, butter, dog food, dried fruit, flour, sugar, salt, spices, dog treats, epsom salts, baking soda, white vinegar, t.p., tampax, nuts, chocolate chips, garbage bags, environmental dish soap, Uniball pens, bird seed, and sometimes cheese and milk. (Now that I can afford it I buy meat, raw milk, and cheese at the Farmers Market.) It took me several months to appreciate the savings. At first it seemed way more expensive. But, over time, it's worked out to be 50% cheaper than what I spent at the grocery store. I only need to shop once every 4-6 weeks.
When I was in debt, I never had enough cash. After taking a side job a la Dave Ramsey, I started stockpiling, received a windfall, and everything fell into place.
I Googled "What do you buy at Costco?" and started adding those things to my list.

[junkman]

I’d like to broaden the idea of ‘financial success’ to include one that is far more important, ‘health success’. Years and years ago, when I'd go in for my annual physical, my doctor would ask what I was doing about “exercise”.

“I’d hate exercise”, I’d say. “I get enough from my job.”

“No, you don’t”, he’d reply. “You might be working hard. But the effort isn’t aerobic. Look, if you don’t want to walk like an old man --when you get to be an old man --you’d better start walking now, and by that I mean, sustained, sweaty, aerobic exercise at least three times a week.”

I blew him off, of course, as we all do good advice that is uncomfortable to implement. But one January, I was between jobs, and I really had run out of excuses. So I grabbed an umbrella and headed out in the rain. I did feel better went I got back, and I’d like to say that my conversion was instantaneous. But it took me about three years before I was doing an almost daily walk. Then I added a bike and could extend the distances I covered. But I still wasn’t getting out every, single day, and often enough, I was exercising more out of duty than for the fun and challenge of it.

This year, however, I really can report that I’ve settled into a comfortable routine that includes daily exercise. I’m walking or biking my miles, and rarely, rarely missing a day. The distances aren’t huge: 3 to 5 miles on foot, or 10 to 20 on a bike. But the benefits are immediate and obvious. I have had zero illnesses. I’m sleeping well. I’m fit. I’m cheerful, and I’m making a ton of money from my investing. But if I had to say which has been my most important and most successful investment, I’d have to say my exercise program. A pile of money isn’t going to do me a bit of good if I’m not healthy. So, yeah, I pull money out of markets in the mornings. But my afternoons, I go walking or biking, and that's my best financial success this year.

Charlie

[Gardenarian]

But if I had to say which has been my most important and most successful investment, I’d have to say my exercise program. A pile of money isn’t going to do me a bit of good if I’m not healthy. So, yeah, I pull money out of markets in the mornings. But my afternoons, I go walking or biking, and that's my best financial success this year.

Charlie

+1 :)

[Life_is_Simple]

I haven't answered my own questions yet.

A year ago I decided to put less into retirement, and more into a general fund (partly Emergency Fund). So that worked out really well. I feel I am stocked up in that regard.

New savings techniques... I read a book by Elizabeth Warren and her daughter suggesting to put 50% into Needs, 30% into Wants, and 20% into savings. I have about that percentage scheme, except I had to convince myself that a lot of what I initially considered "Needs" were really "Wants." ;) I don't know what this knowledge does for me yet.

I sometimes wish I would save more money. However, right now my life is pretty balanced. I don't really want to work more hours in my self-employment. And I know that once my car is paid off, my expenses go back to 2005 levels. This isn't even adjusted for inflation. I keep finding a few spending areas to cut each year so that my spending really doesn't rise even with inflation.

I helped my sister create a spreadsheet of her potential retirement income vs spending, so she can decide when to retire. Her accountant had said a year ago that she would have to work another 10 years, but he didn't know about her pension. So she can take her numbers back to the accountant, and also to a person with the pension organization, and get some feedback.

On Edit: My sister could retire next year, where her spending is almost identical with what income would be. Though if she worked a little longer, she could develop more of a cushion. Also, she started tracking her spending, and she could get the cushion from reducing some expenses. So she now feels she has options!

[awakenedsoul]

I like that percentage idea. The more needs I can provide for myself, the less I spend. I find I'm wanting less, too. I still have been able to spend about the same amount, in spite of inflation. I have different expenses now.

[Life_is_Simple]

I like that percentage idea. The more needs I can provide for myself, the less I spend. I find I'm wanting less, too. I still have been able to spend about the same amount, in spite of inflation. I have different expenses now.
Awakenedsoul... I like your idea of the more needs you can provide, the less you spend.

[citrine]

How is your Emergency Fund? Great, we have a bit over 6 months in the account

How about your retirement funding? We both put in the 5K in the Roth IRA's, hubby had 5% going in and has changed it to 8%

Any debt paydown? We paid off everything this year (20K)

Any new savings techniques you have found useful? We are on a cash only spending plan.

Is your spending decreasing in any categories? Eating out


What's one success you had that you can pat yourself on the back for? We were able to grow tomatoes, basil, oregano, and jalapeno peppers....full scale next summer!

Any positive influence you had on other people's finances? I have shared what we have done with a friend who was struggling, but she is not ready to change anything at this time.

[Lainey]

I helped my sister create a spreadsheet of her potential retirement income vs spending, so she can decide when to retire. Her accountant had said a year ago that she would have to work another 10 years, but he didn't know about her pension. So she can take her numbers back to the accountant, and also to a person with the pension organization, and get some feedback.

On Edit: My sister could retire next year, where her spending is almost identical with what income would be. Though if she worked a little longer, she could develop more of a cushion. Also, she started tracking her spending, and she could get the cushion from reducing some expenses. So she now feels she has options!

Life_is_Simple - that was a very nice thing you did for your sister. She must be thrilled to know she doesn't really have to work another 10 years, but instead can retire as early as next year if she prefers. That's huge.

[Life_is_Simple]

Life_is_Simple - that was a very nice thing you did for your sister. She must be thrilled to know she doesn't really have to work another 10 years, but instead can retire as early as next year if she prefers. That's huge.
Lainey, yeah, she was feeling bad when the tax guy said she had to work another 10 years. I thought she had some retirement accounts and the pension, but none of the stuff was organized, so we had no idea what the final numbers would say. But once the income and expenses got closer and closer to each other, she was motivated to gather up and get updates on all the income sources.

As she tracks her expenses, I can see her making progress. But then she will go backwards a little when she feels like she's depriving herself. So she's figuring out what works for her. Also, I told her about the Millionaire Next Door where many people who are rich do not look it, because they are frugal. And many people who look rich, are hugely in debt. She sometimes feels poor in comparison to the people who *look* rich.

I may get her a book on the topic of "Are you ready to retire?" or something like that. If anyone has suggestions, let me know.

[Fawn]

I, also, am loving this thread. Thanks for starting it.



How is your Emergency Fund? Fully funded, ten months of expenses for me and kids.




How about your retirement funding? OK. I'm saving 10% of gross income in IRAs, there is a 3% employer match and a pension.




Any debt paydown? I paid off the car in 2012. I owe about $60,000 on the house, which will be paid off in 8 years.




Any new savings techniques you have found useful? No, really just the same old stuff. We do not eat out or pay for entertainment. I consider the music lessons to be a worthwhile luxury.




Is your spending decreasing in any categories? No, but it's holding it's own and as I launch the kids, my expenses go so low that I could easily live on $12-$15 K per year.




How did you do against any goals you may have had? I went from working 55-60 hours/week to 32-26 hours/week. I'm still saving, though not at the rates before. But I am not exhausted all the time and I am much happier.




What's one success you had that you can pat yourself on the back for? Living within our means on a part-time salary. Saving for the kid's college.




Any positive influence you had on other people's finances? Not that I know of.




Any examples of saving in one category, so that you can spend on what is important to you? Well, as mentioned above: eating at home and not out pays for music lessions. Free entertainment (kid's activities, visits with friends in our homes, library books and movies) pays for travel to visit oldest son and DIL.




Other: You all know how I love to brag on my kids. We found out 2 days ago that DD has been accepted to University of Chicago, her dream school. Tuition, room and board and fees are $62,400 and some change for the next year. She is smart and hard-working. I told her that her and my part-time job for the next several months is to find her scholarship and grant money. So that is my big goal for the new year. Help my daughter find a way to pay for school. She will likely get some money from U. of Chicago, we won't know how much until after the FAFSE is filled out.

[awakenedsoul]

That's wonderful Fawn! Congratulations.

[cattledog]

Congrats to your DD Fawn! Chicago was a tough school to get in 25 years ago, I can only imagine how much more competitive it is now. I hope the FAFSA brings good news. :)

[dmc]

Ive spent more this year than in the past. Much more, but still doing fine financially.

[Life_is_Simple]

Thank you. It was a long proccess, kind of like raising a child. The soil was white when I first moved in. I did a lot of ammending and mulching. I collected leaves and manure from my neighbors. I planted baby trees and waited. All of a sudden I have cases of fruit! It's a lot for one person, so I share it with my neighbors. It means spending time each day storing it and making sure it doesn't rot or go to waste. It's kind of like a part time job. The fruit has to be picked when it's ripe, or it will all fall on the ground.
Yeah, Costco took me a while. At first I hated it. I thought it was way too expensive and that I couldn't afford it. But, once I had extra money, it really had cumulative benefits. Now I spend very little because I have such a great stockpile. These are the things that I buy there: coffee, juice, butter, dog food, dried fruit, flour, sugar, salt, spices, dog treats, epsom salts, baking soda, white vinegar, t.p., tampax, nuts, chocolate chips, garbage bags, environmental dish soap, Uniball pens, bird seed, and sometimes cheese and milk. (Now that I can afford it I buy meat, raw milk, and cheese at the Farmers Market.) It took me several months to appreciate the savings. At first it seemed way more expensive. But, over time, it's worked out to be 50% cheaper than what I spent at the grocery store. I only need to shop once every 4-6 weeks.
When I was in debt, I never had enough cash. After taking a side job a la Dave Ramsey, I started stockpiling, received a windfall, and everything fell into place.
I Googled "What do you buy at Costco?" and started adding those things to my list.

Awakenedsoul - when I first read this, I went to bed that night and dreamt about planting trees :laff:

I have just now googled "What do you buy at Costco?" and made a list as you suggested. I used to go there quite regularly for certain items, which I have since stopped eating. I still go there to get home business items, like inkjet cartridges, TurboTax, pens, etc.

I need to go there sometime and just slowly browse the aisles. I see that a lot of people like the meat there.

[Laser_Cat]

paid off my credit card after a hefty vet bill. Now I'm ready to get back on track on my student loans!! Go go 2013!!

[HumboldtGurl]

Excellent discussion! Here's my take.



How is your Emergency Fund?

We managed to increase it this year thanks to taking an extra job all summer and fall. Thank Dog for that, because we've been hit with some really high unexpected vet bills this season.


How about your retirement funding?

This year we did an automatic payment to IRAS, and managed to max out one Roth.


Any debt paydown?

Yes! It's remained zero.


Any new savings techniques you have found useful?

We finally went to the cash-only system, nixed our old system of using American Express credit cards and paying them off every month. As a result I spend a lot less on daily expenses when because I know they're coming out of our checking account.


Is your spending decreasing in any categories?

Ugh. Nope.


How did you do against any goals you may have had?

Excellent! Our goal was to max out at least one IRA, and we did. We also ditched those credit cards, which was a long-time goal of ours.


What's one success you had that you can pat yourself on the back for? ;)

See above. Also developed a monthly budget, and stuck to it, which really helps curb our spending.


Any positive influence you had on other people's finances?

I think that through our LiveWorkDream blog, where I talk about debt-free living, I reach a lot of people. Not sure if they actually follow my suggestions but I get good feedback on my debt-free living posts.


Any examples of saving in one category, so that you can spend on what is important to you?

Nah.


Other ______>8)

Just want to reiterate how much of a difference it made in our finances by kicking American Express out of our lives. It's amazing how that plastic in your wallet really got me to toss out common sense because I wasn't feeling the pain of paying for something right away. We'll never go back.

[Lainey]

Fawn,
also wanted to add congrats to your daughter for getting in to U. of Chicago. My nephew is a freshman there.

If this were a movie on Lifetime, they would meet and enjoy a happy-ever-after Simple Livers life - ;)

[awakenedsoul]

Awakenedsoul - when I first read this, I went to bed that night and dreamt about planting trees :laff:

I have just now googled "What do you buy at Costco?" and made a list as you suggested. I used to go there quite regularly for certain items, which I have since stopped eating. I still go there to get home business items, like inkjet cartridges, TurboTax, pens, etc.

I need to go there sometime and just slowly browse the aisles. I see that a lot of people like the meat there.

I've bought rack of lamb there. It was excellent! I get my beef, chicken, and pork through the farmers at our organic co op. I hope your dreams about fruit trees come true!

[Fawn]

Fawn,
also wanted to add congrats to your daughter for getting in to U. of Chicago. My nephew is a freshman there.

If this were a movie on Lifetime, they would meet and enjoy a happy-ever-after Simple Livers life - ;)

In my opinion, going to such a cool school is all the reward needed. (I would like to go there) But if any of the students find love-ever-lasting....more power to them.

[Wildflower]

Have spent far less money on kids and pets this past year. We finally have a totally empty nest, so much less spent on groceries and utilities now. No big vet bills this year either with all our pets doing well! We lost two cats last year and a dog the year before. :(