Regaining lost money per cutting back?
Bob Young
very bare bones budget.
I have what I suppose folks call a 'comfort zone' of what I want
in my checking account. About every 6 months I panic, because I go
below that zone.
In the past , when I was working, I would hope for a salary increase
or a nice tax return. That is no longer there. My money coming monthly
is ALWAYS the same.
Knowing it is all relaltive about the amount, but lets say I want
to regain $800 that I think want to make up. Has anyone else watched or
do know that they have regained their money by simply by just cutting
spending radically itself?
I know there is no one answer. But this kind of close budget is new
to me. I do not waste money, but I think I bought too many "bargains",
because I thought they were bargains and I can no longer do that.
Anthony Matonak
> Like alot of us, I'm on a fixed income : SS and 2 federal bonds and a
> very bare bones budget.
> I know there is no one answer. But this kind of close budget is new
> to me. I do not waste money, but I think I bought too many "bargains",
> because I thought they were bargains and I can no longer do that.
Perhaps simply cutting back isn't the answer and you need to go back
to work.
Anthony
hchi...@hotmail.com
wrote:
As a child, I was able to see the books on how one of my grandparents
lived during retirement, and was amazed at how little was spent. No
cable tv, minimal electric and fuel cost. Many months the largest
expense was the cost of milk. It is possible to live using a minimal
amount of money.
In our own situation, we are setting up for low taxes, low insurance
costs, a fully paid for home, plenty of garden and agricultural space,
our own water and septic, plans for at least some alternate energy,
and anything else I can think of to reduce outflow before inflation
really starts to hit.* I estimate that once everything is in place,
we could live comfortably on less that $10K/yr if needed. Compare
that with what financial planners demand for "successful" retirement.
And I'm not even retired.
*The Fed has a tight row to hoe. Too high interest rates will send us
into recession, too low will not stop speculators and will fuel
inflation. I'm betting on increasing inflation, at least for the
short term. The economy is reaching a point where I think it is
becoming unstable. Not gloom and doom unstable, but enough to make me
want to be prudent and hedge bets.
Too_Many_Tools
> On Fri, 28 Sep 2007 07:34:35 -0500, difdrum...@webtv.net (Bob Young)
>
> - Show quoted text -
And how will you handle medical costs?
TMT
hchi...@hotmail.com
<too_man...@yahoo.com> wrote:
>And how will you handle medical costs?
I have a high deductable policy that I'll keep until Medicare kicks
in. I have already had experience negotiating hospital bills.
Bob Young
"And how will you handle medical costs?"
TMT
-----------------
It's figured in my budget. VA...Routine MD visit every 4 months. Meds
$8 per month.
Rick
Yeah - that's called "spaving" - spending on deals, markdowns, sales,
closeouts etc. thinking you save money in the process. The trap in
thinking that way is you end up fearing that "X" won't ever be seen for
such a good price again. And you end up buying way too much of "X" just
because it's at a sales price.
One obvious and easy reality check you can do is start marking the
month/year you buy your grocery items on the package. And then see how
long you have that item before you finally use it up. Some things turn
over real fast. But if you find two years later that you still have cans
of tomato products or canned soups in your pantry you marked "03/2005"
it's gonna cause you to think about how much of what you are buying that
you don't end up using in a reasonable time frame. Adjust your
purchasing accordingly. If you keep buying bargain after bargain just
because it's a good price, and the stuff just sits there beyond
expiration dates, you are wasting money buying bargains, not saving it.
Buying clothing on sale, just because it's on sale, can be another big
trap too.
Rick
Logan Shaw
> Like alot of us, I'm on a fixed income : SS and 2 federal bonds and a
> very bare bones budget.
I have no idea what the details are of your financial situation, but it
sounds like you may have 100% of your investments in savings bonds. If
so, are you sure that's really the optimal asset allocation? If you're
retired (SS is a hint, but you could be disabled or something), obviously
you want to be more conservative, but 100% savings bonds may be too
conservative.
Of course, it depends on a lot of particulars. I just wanted to throw
the idea out there. I'm not a financial planner, etc., etc., etc.
- Logan
Bob Young
"Yeah - that's called "spaving" - spending on deals, markdowns, sales,
closeouts etc. thinking you save money in the process. The trap in
thinking that way is you end up fearing that "X" won't ever be seen for
such a good price again. And you end up buying way too much of "X" just
because it's at a sales price.
One obvious and easy reality check you can do is start marking the
month/year you buy your grocery items on the package. And then see how
long you have that item before you finally use it up. Some things turn
over real fast. But if you find two years later that you still have cans
of tomato products or canned soups in your pantry you marked "03/2005"
it's gonna cause you to think about how much of what you are buying that
you don't end up using in a reasonable time frame.
Adjust your purchasing accordingly. If you keep buying bargain after
bargain just because it's a good price, and the stuff just sits there
beyond expiration dates, you are wasting money buying bargains, not
saving it."
-------------------------
__________________
Thanks Rick. I think you're the only one that understood my situation
and gave me the proper diagnoses: "spaving". I think I am back in
remission now.
I was not in a financial emergency , but mad at myself for the
'spaving'. I did not see the extent of it til about a month later. It
is so easy to fall into...."2 for the price of one", "buy one, get one
FREE." "Rebate if you tear this coupon off" etc. Garage sales, resale
shops etc.
I sort of see it as part of the emotional adjustment period of
being retired only 2 years. I have a working budget and I have an
income that covers that budget and I often save money on my electric
bill certain months and groceries.
But I was spending money like I had a job. And Gawd knows I
would rather starve to death than to go back to work. Not to blame
anyone else, but I had a buddy who was showing me how to save money here
and there. We spent the morning running here and there. Well it all
looked great at the time, but it came back to bite me in the ass later.
I am grateful for what I do have and am happy being retired and I
have always lived a simple life style, so it wasn't like I wanted to
keep up with the Jones. But I have to always keep my 'actual' income
in mind. I created my monthly budget for my Edward Jones folks and they
helped me supplement it with two federal bonds, who pay me so much per
month, so my budget is realistic.
I think part of it was the fun of running around with a friend
too and it seemed so 'harmless' til my chronic flare of 'spaving' hit
me. :)