Blonde Granny
Junior Associate
Joined: Jan 15, 2013 8:27:13 GMT -5
Posts: 6,919
Today's Mood: Alone in the world
Location: Wandering Aimlessly
Mini-Profile Name Color: 28e619
Mini-Profile Text Color: 3a9900
|
Post by Blonde Granny on Jun 5, 2014 18:05:43 GMT -5
LOL...you're not starting out well are you?? Maybe think about next month.
This is how we did our test: we started Feb. 1st. I took our monthly fixed bills, i.e water/gas/elect/phone etc. added them up as they are all on autopay through our checking account. We then kept every receipt, including things like 1.95 for ice cream, then wrote each down and what it was for. I kept a weekly running total so I knew where we stood. But we also put absolutely everything including the ice cream cone on our credit card.....figured why not get the points.
At the end of the month, we discovered we actually could do it. We didn't have any unusual expenses that month, and even then, a dentist bill or something comes out of our escrow account.
It's an interesting exercise to do......I hope you succeed, it's a great feeling when you discover it can actually happen....or where you need to watch it a little bit and be more cautious.
|
|
❤ mollymouser ❤
Senior Associate
Sarcasm is my Superpower
Crazy Cat Lady
Joined: Dec 18, 2010 16:09:58 GMT -5
Posts: 12,857
Today's Mood: Gen X ... so I'm sarcastic and annoyed
Location: Central California
Favorite Drink: Diet Mountain Dew
|
Post by ❤ mollymouser ❤ on Jun 5, 2014 21:19:37 GMT -5
You should call around and find a low cost vaccine clinic for your dog's shots. Or at least compare prices at various vets ... it doesn't need to cost you a few hundred dollars You might sit down and make a master list of all infrequent expenses ... insurance premiums, car registration, property taxes. Add them up, divide them by 12, and make sure you set aside every month to cover those expenses. For things like utilities and insurance copays, sit down and figure out a generous average of what they run you every month, and set that aside, too. Figure out what you spend most months for gas, groceries, etc.... and set that aside. What you REALLY need to do is figure out how much DISCRETIONARY money you have each month ... and then you can choose how best to spend it: manicures, gifts, Clorets gum, satellite radio, etc. (At least that's how I would do it ... of course, you need to do what works for you!)
|
|
Blonde Granny
Junior Associate
Joined: Jan 15, 2013 8:27:13 GMT -5
Posts: 6,919
Today's Mood: Alone in the world
Location: Wandering Aimlessly
Mini-Profile Name Color: 28e619
Mini-Profile Text Color: 3a9900
|
Post by Blonde Granny on Jun 6, 2014 5:44:40 GMT -5
I know you live in the country Pat, but one of the things that occurred when we downsized our house was the sudden discovery of some lower costs. We have cut our gas for the 2 cars in half as we live within 15 minutes of everything!!! Going from an all electric house back to natural gas for heat, hot water and cooktop was another huge savings. Our $12K dual zone heat pump may have been efficient but it simply couldn't handle the cold weather and ran constantly.
Health problems have also hit us hard, but we can say thank goodness for the VA and the wonderful care they provide, but that doesn't mean we still don't have multiple trips per week to the Drs. only now we drive 15 minutes and 10 miles rather than 45 minutes and 35 miles. As it is now, I can easily handle this house, the HOA takes care of the outside, because the day is coming sooner than later that I probably will be by myself permanently. Just something to think about.
You may find that eventually you can no longer physically handle all the chores you have given yourself. If you do, it's perfectly fine to change your mind. The word downsize is not a 4 letter word.
|
|
kadee79
Senior Associate
S.W. Ga., zone 8b, out in the boonies!
Joined: Mar 30, 2011 15:12:55 GMT -5
Posts: 10,798
|
Post by kadee79 on Jun 6, 2014 21:12:37 GMT -5
Pat, it you are close to any of the universities...most of them in the Midwest have vet schools and going to them can save BIG time! Just something you might want to look into! I know the UofI saved us bunches on both horses & cows back when we lived in Ill. The only thing for us was that we had to transport the large animals to their clinic and then back home...which we had a horse trailer so no problem.
|
|
tallguy
Senior Associate
Joined: Apr 2, 2011 19:21:59 GMT -5
Posts: 14,134
|
Post by tallguy on Jun 6, 2014 23:11:49 GMT -5
No. It's TWO of 'em. Twice as bad.
|
|
haapai
Junior Associate
Character
Joined: Dec 20, 2010 20:40:06 GMT -5
Posts: 5,877
|
Post by haapai on Jun 7, 2014 6:41:42 GMT -5
Pat, weren't you an accountant? This exercise would be a lot more worthwhile if you kept records. Are you?
(If not prepare your excuses and I will prepare to rebut them.)
|
|
Blonde Granny
Junior Associate
Joined: Jan 15, 2013 8:27:13 GMT -5
Posts: 6,919
Today's Mood: Alone in the world
Location: Wandering Aimlessly
Mini-Profile Name Color: 28e619
Mini-Profile Text Color: 3a9900
|
Post by Blonde Granny on Jun 7, 2014 6:46:12 GMT -5
It may be a bad word to some tallguy, but for us it was liberation and freedom. The new house is designed for wheel chair access, door knobs are levers, not the round doorknobs. No steps, all lower cabinets in the house are drawers, not cabinets with doors where you have to get on your hands and knees to find what you're looking for.
We now have everything we need and everything we want, conveniently in 1700 sf. rather than the 3000sf on 2 levels as before.
The people that bought our house last year, were not in great physical shape at the time. They have now admitted to our former neighbors that they will likely be selling the house as she can't manage the steps to go downstairs to watch TV, and he can't drive anymore due to fainting spells. oh well, they had the cash and we had the house, so it was a deal made in heaven.
We still have 2 cars, my Mercedes SUV and the Mercedes SL500 that DH likes to run around in. We'll keep both regardless of what happens.
|
|
Rocky Mtn Saver
Junior Associate
Joined: Dec 23, 2010 9:40:57 GMT -5
Posts: 7,461
|
Post by Rocky Mtn Saver on Jun 9, 2014 18:23:23 GMT -5
Man, I got the heebie-jeebies just reading about all that stuff and expenses. I think I must live a very different kind of life. But the suggestions have been great so far, hope they help!
|
|
Blonde Granny
Junior Associate
Joined: Jan 15, 2013 8:27:13 GMT -5
Posts: 6,919
Today's Mood: Alone in the world
Location: Wandering Aimlessly
Mini-Profile Name Color: 28e619
Mini-Profile Text Color: 3a9900
|
Post by Blonde Granny on Jun 9, 2014 19:14:42 GMT -5
Man, I got the heebie-jeebies just reading about all that stuff and expenses. I think I must live a very different kind of life. But the suggestions have been great so far, hope they help! Are you retired RMS or just planning ahead?
|
|
tallguy
Senior Associate
Joined: Apr 2, 2011 19:21:59 GMT -5
Posts: 14,134
|
Post by tallguy on Jun 9, 2014 21:43:00 GMT -5
Medicaid does pay adult dental in some states. It may be only in the states that expanded Medicaid coverage, but as a rule I think states have the option of whether to cover it. You have probably checked for your state, but if anyone else is reading for whom the question is relevant, it is not a blanket rule in all states.
|
|
Deleted
Joined: Apr 19, 2024 14:33:46 GMT -5
Posts: 0
|
Post by Deleted on Jun 9, 2014 22:12:30 GMT -5
I think it is somewhat of a surprise for many people about just how much money they spend on average every month. When I retired I put together a spreadsheet to show exactly what we spent each month. My wife and I put into the spreadsheet what we spent everyday. We had/have no kids at home anymore and it's just the two of us. We didn't do anything differently or intentionally try to reduce spending. My main purpose was to make sure that we had more income than expenses. The results.....in 2010 we spent just around $6000/month total on everything. (That includes a mortgage on the house still. We have moved so many times we have never come close to paying off a mortgage. I got my last 30 year mortgage at age 58.) Five years later we are on course to spend about $6750/month. Admittedly we are in a LCOL area but I have found things don't get cheaper when you retire. My point is the spreadsheet has been a godsend. We still keep it updated everyday.
|
|
Blonde Granny
Junior Associate
Joined: Jan 15, 2013 8:27:13 GMT -5
Posts: 6,919
Today's Mood: Alone in the world
Location: Wandering Aimlessly
Mini-Profile Name Color: 28e619
Mini-Profile Text Color: 3a9900
|
Post by Blonde Granny on Jun 10, 2014 7:42:31 GMT -5
I think it is somewhat of a surprise for many people about just how much money they spend on average every month. When I retired I put together a spreadsheet to show exactly what we spent each month. My wife and I put into the spreadsheet what we spent everyday. We had/have no kids at home anymore and it's just the two of us. We didn't do anything differently or intentionally try to reduce spending. My main purpose was to make sure that we had more income than expenses. The results.....in 2010 we spent just around $6000/month total on everything. (That includes a mortgage on the house still. We have moved so many times we have never come close to paying off a mortgage. I got my last 30 year mortgage at age 58.) Five years later we are on course to spend about $6750/month. Admittedly we are in a LCOL area but I have found things don't get cheaper when you retire. My point is the spreadsheet has been a godsend. We still keep it updated everyday. WOW! even in a LCOL area, that seems like a lot. To each his own however.
We don't spend anywhere near that much, but we don't have a mortgage either. Our last 6 homes have been mortgage free. We do have one little car payment of $200/mo but I'm paying $250. I'll keep it until BVV Compass Bank ticks me off, which if it follows as the last time will be within the next couple of months. The amount was only $11K on a new Mercedes ML.
As I told Pat, our 1 month study proved we could live on SS and VA disability, so it's nice to know we could on a regular basis if we wanted to. Most months we"re close to it, but it's not a big deal if we go over.
|
|
haapai
Junior Associate
Character
Joined: Dec 20, 2010 20:40:06 GMT -5
Posts: 5,877
|
Post by haapai on Jun 10, 2014 8:30:48 GMT -5
It's probably a good thing that you started this project before hubby retired. That way you can get a bead on things before he comes home and starts spending like a drunken sailor just because there's stuff to buy and a place that he can permanently park it.
Does it show that my folks spent most of their adult lives as expats in places where there wasn't much to spend money on? Funny things happened when they hit American supermarkets and hardware stores.
FWIW, have you already had the epiphany that records kept for your own purposes do not have to match anyone else's idea of how records should be kept? I was pretty bowled over when I realized that my own personal accounts would only be viewed by myself and I could keep accounts any way that was meaningful to myself. In theory, I could have had only three expense categories -- fixed, discretionary and unplanned. I also had complete freedom to merge and re-characterize expenses into any way that made sense for me. The vendor information and ample explanation line that most accounting software encourages allowed me to do that without losing too much.
|
|
Rocky Mtn Saver
Junior Associate
Joined: Dec 23, 2010 9:40:57 GMT -5
Posts: 7,461
|
Post by Rocky Mtn Saver on Jun 10, 2014 8:47:27 GMT -5
Man, I got the heebie-jeebies just reading about all that stuff and expenses. I think I must live a very different kind of life. But the suggestions have been great so far, hope they help! Are you retired RMS or just planning ahead? LOL, I'm not near it at all, but I'm always thinking ahead. I have been downsizing my material things/costs for the past few years, though, so I know a little of what y'all speak.
|
|
Blonde Granny
Junior Associate
Joined: Jan 15, 2013 8:27:13 GMT -5
Posts: 6,919
Today's Mood: Alone in the world
Location: Wandering Aimlessly
Mini-Profile Name Color: 28e619
Mini-Profile Text Color: 3a9900
|
Post by Blonde Granny on Jun 10, 2014 9:06:02 GMT -5
When DH retired in 1995/96 we bought a house on the water in Florida. We then proceeded to spend like there was no tomorrow. Fortunately or unfortunately, however you want to look at it, reality set in when the stock market crashed in 2000-2002....gee, there actually was a tomorrow, imagine that!!
We lost about 40% of our retirement money due to a financial manager who sat on his hands doing nothing. His only remarks were to cut our spending drastically and "stay the course". We kicked him to the curb and took over managing our money ourselves. Over the years we have managed to undo his damage.
The temptation when first retiring I think is natural to have a ball, do everything you've ever wanted to do/have/go/buy....you name it. I wouldn't wish that philosophy on anyone. It's a dangerous attitude to take and one that is difficult to undo when it becomes necessary.
Today we still do what we want and usually when we want, but our spending plan dictates when and how to do it.
There is an old saying "life is what happens when you're busy making other plans". AMEN!!!
|
|
TheOtherMe
Distinguished Associate
Joined: Dec 24, 2010 14:40:52 GMT -5
Posts: 27,117
Mini-Profile Name Color: e619e6
|
Post by TheOtherMe on Jun 10, 2014 20:57:17 GMT -5
I think it is somewhat of a surprise for many people about just how much money they spend on average every month. When I retired I put together a spreadsheet to show exactly what we spent each month. My wife and I put into the spreadsheet what we spent everyday. We had/have no kids at home anymore and it's just the two of us. We didn't do anything differently or intentionally try to reduce spending. My main purpose was to make sure that we had more income than expenses. The results.....in 2010 we spent just around $6000/month total on everything. (That includes a mortgage on the house still. We have moved so many times we have never come close to paying off a mortgage. I got my last 30 year mortgage at age 58.) Five years later we are on course to spend about $6750/month. Admittedly we are in a LCOL area but I have found things don't get cheaper when you retire. My point is the spreadsheet has been a godsend. We still keep it updated everyday. I live in a LCOL area. I know what my retirement income is and it certainly isn't anywhere $6000 per month. I manage on what I bring in and that includes a house payment and car payment. House payment is less than what I paid for rent in Boulder, CO--like $500 less, so I think I have lots more money after that payment is made.
|
|
marvholly
Junior Associate
Joined: Dec 21, 2010 11:45:21 GMT -5
Posts: 6,540
|
Post by marvholly on Jun 11, 2014 6:45:11 GMT -5
I live in a moderatly high COL area (metro Chicago) and I spend NO WHERE near what Pat is estimationg. I have been fully retired for 2 years and my avg monthly spending is about $2500/month including VERY high real estate taxes (>$8000/yr), home insurance, auto insurance...........
I even have money put away to do a really nice vacation - maybe an alaska cruise or a couple weeks in EU.
|
|
TheOtherMe
Distinguished Associate
Joined: Dec 24, 2010 14:40:52 GMT -5
Posts: 27,117
Mini-Profile Name Color: e619e6
|
Post by TheOtherMe on Jun 11, 2014 21:43:08 GMT -5
I live in a moderatly high COL area (metro Chicago) and I spend NO WHERE near what Pat is estimationg. I have been fully retired for 2 years and my avg monthly spending is about $2500/month including VERY high real estate taxes (>$8000/yr), home insurance, auto insurance........... I even have money put away to do a really nice vacation - maybe an alaska cruise or a couple weeks in EU. This is my spending goal ~~ $2500 per month.
|
|
haapai
Junior Associate
Character
Joined: Dec 20, 2010 20:40:06 GMT -5
Posts: 5,877
|
Post by haapai on Jun 12, 2014 7:47:58 GMT -5
Yeowza! That's a lot of blank spots and unknowns. Not good!
|
|
haapai
Junior Associate
Character
Joined: Dec 20, 2010 20:40:06 GMT -5
Posts: 5,877
|
Post by haapai on Jun 12, 2014 18:24:45 GMT -5
I've been sorta dodging the question of when you moved. I feel that I should know the answer from your posts, but I don't.
Any detail that you can compile before your husband come back will be immensely helpful.
What software are you using? Have you ever depreciated cars or other durables in your own records? Do you mess with prepaids?
|
|
haapai
Junior Associate
Character
Joined: Dec 20, 2010 20:40:06 GMT -5
Posts: 5,877
|
Post by haapai on Jun 12, 2014 20:10:27 GMT -5
Would there be a cost associated with moving your personal financial info to Quickbooks? I kept my personal financials on QB for years. It wasn't much more than a glorified electronic checkbook register for a long time but then I started figuring out what it could do, including what I could do retroactively and proactively.
Prepaids and depreciation are pretty simple in QB. You can make all of the entries at once, with appropriate dates and skip all those annoying monthly non-cash expenses. It's great for smoothing your expenses and making unusual ones pop out. It also gets at least an approximation of your actually expenses into the books where it is hard not to notice.
|
|
haapai
Junior Associate
Character
Joined: Dec 20, 2010 20:40:06 GMT -5
Posts: 5,877
|
Post by haapai on Jun 14, 2014 8:24:07 GMT -5
I could set up another company but wonder if I really need to do all that. Let me think on it. You don't need to do anything that you don't want to do. I understand the joy that a well-developed spreadsheet can bring. Even when I updated QB daily, I never even investigated what forward-looking functionalities the program might have. Why would I want to do that when I had cash-flow spreadsheet that I had built myself and finally gotten used to? FWIW, it's possible to start recording transactions in WB without building a formal trial balance. You could probably start with just a checking balance and a debit to retained earnings. Any other assets or liabilities can be added later and at any date at which an accurate balance can be determined. It may be poor form, but it can get you started.
|
|
Blonde Granny
Junior Associate
Joined: Jan 15, 2013 8:27:13 GMT -5
Posts: 6,919
Today's Mood: Alone in the world
Location: Wandering Aimlessly
Mini-Profile Name Color: 28e619
Mini-Profile Text Color: 3a9900
|
Post by Blonde Granny on Jun 20, 2014 6:37:32 GMT -5
Pat, this living on retirement income is such a good idea, it's too bad no one warned me about being in the Medicare Part D donut hole. One of my Rx had been $116/90 day by mail order. As I fell head first into the donut hole, which btw did not have any raspberry filling in it, that Rx jumped to $877/90 days.
I called the cardio office like a good SS person, and begged for drugs. I was able to pick up 1 months worth. I have enough pills now, not only for this expensive one, but for all the others to last until Jan 1. I am going to ask my PCP for a written script for 4 of them that I will get filled at WMT for far less than the drug plan price.
I don't know what many of our senior population does when this happens...they likely don't have the money or the thought process to figure all this out.
|
|
Blonde Granny
Junior Associate
Joined: Jan 15, 2013 8:27:13 GMT -5
Posts: 6,919
Today's Mood: Alone in the world
Location: Wandering Aimlessly
Mini-Profile Name Color: 28e619
Mini-Profile Text Color: 3a9900
|
Post by Blonde Granny on Jun 20, 2014 17:33:20 GMT -5
North Dakota is kind of in a pickle right now. So many jobs are available, but there is no place for the work force to live. Many are living in their cars...but you certainly can't do that during the winter. Don't know the availability of RV parks vs. where the jobs are. We stayed in Bismarck for a week when we still had the motor home and Roosevelt Natl. Park just south of I-94 in Medora, ND was nice too.
|
|
Blonde Granny
Junior Associate
Joined: Jan 15, 2013 8:27:13 GMT -5
Posts: 6,919
Today's Mood: Alone in the world
Location: Wandering Aimlessly
Mini-Profile Name Color: 28e619
Mini-Profile Text Color: 3a9900
|
Post by Blonde Granny on Jun 23, 2014 10:07:22 GMT -5
Pat, if a person has the right supplement plan it pays the deductible.
|
|
TheOtherMe
Distinguished Associate
Joined: Dec 24, 2010 14:40:52 GMT -5
Posts: 27,117
Mini-Profile Name Color: e619e6
|
Post by TheOtherMe on Jun 23, 2014 21:25:54 GMT -5
I am in my retirement, I am not yet on Medicare. I am a federal retiree. My health insurance has a deductible of $500. I would have to pay $5000 of medical expenses before my catastrophic 100% coverage kicks in. When I had my surgery in 1999, that kicked in at $1000 and I think I hit it the first day.
Federal pensions do get cost of living increases--we get whatever social security retirees get. I will never collect social security.
I have savings for my various expenses set up that I know I will incur. My house is 5 years old, so not too much to replace just yet. I know that is coming and I save for it.
It's just me and a cat, so only one vehicle, which I will keep until it is no longer feasible to drive it. If it lasts 19 years like my last car did, I may not be driving.
I may decide to go off the FEHB program as there is a local health insurance program with no deductible and no co-pays. I would still need prescription insurance. Between Medicare and this insurance, 100% of medical bills are paid. It's just the meds I would have to be concerned with. That could keep me in the FEHB program because I would probably hit the donut hole.
|
|
marvholly
Junior Associate
Joined: Dec 21, 2010 11:45:21 GMT -5
Posts: 6,540
|
Post by marvholly on Jun 24, 2014 5:50:50 GMT -5
My husband is wondering how people are going to live on $2,500 a month as I have told him many here are planning to in retirement and contend with inflation and other expenses.
I'm curious what some budgets look like.
Are there line items for vehicles, repairs, home repairs, appliance replacement, and all the other expenses of life plus medicines the government won't pay for. Now also medicare deductible has changed to $1184. I'm not sure if a supplement will pick that up or not. I am fully retired 2 years now and live on about $2500/month as I am not yet drawing/required to withdraw from my IRAs.
I save 10%/month just to over emergency expenses like the 6 week period I HAD to replace my tv, fridge & have a tree cut down & removed fall 2013. I also save $100/month into my vacation pot and more $$ into the gift pot as I have some weddings of fairly close relatives that should happen in the next 1-5 years. I do have a line item for auto repair/maintenance (and insurance, plates, sticker).
As for medical I am on Medicare and have opted for an Advantage plan. Pretty much covers everything I need right now w/pretty low or no co-pays/deductable. Having about 8-10 years experience w/HMO type medical insurance before retirement and my same hospital & Drs being included I am happy w/my plan.
As for replacing my car I will likely do this in the couple of years and may take IRA money for that. My car will be about 10/more y/o then, I will be 70/more so tht car should last until I will probably not be driving anymore.
Are there things i would like to spend on? Sure: hiring my windows washed every year traveling more or farther away going out to eat MUCH more often
|
|
Blonde Granny
Junior Associate
Joined: Jan 15, 2013 8:27:13 GMT -5
Posts: 6,919
Today's Mood: Alone in the world
Location: Wandering Aimlessly
Mini-Profile Name Color: 28e619
Mini-Profile Text Color: 3a9900
|
Post by Blonde Granny on Jun 24, 2014 6:27:59 GMT -5
If my DH were to die today, I would lose significant monthly income. His VA disability would be gone as would my Social Security. I would only receive his SS. If he dies from the right cause, I would then apply for what is called DIC from the VA, but that would still not replace his current disability.
I would drastically cut my expenditures, because frankly, DH is the spender, not me. I would want to take as little as possible from our investments. In fact, I would hoard every penny until I got my monthly spending and budget worked out.
Since DH has some serious medical problems, we've had to face this reality recently. The truth of the situation is what most women know, we outlive our husbands. Do I then need a vehicle that needs $250 oil changes? How about a SUV that requires tires that cost $300 each. My eating budget would be cut from $250/mo to little if anything, and my gasoline bill would drop from $250/mo to probably $75.
So Pat, it's easy to live on the $2500/mo when you factor in the lifestyle changes marvholly has had to make, and the ones I would make.
|
|
Rocky Mtn Saver
Junior Associate
Joined: Dec 23, 2010 9:40:57 GMT -5
Posts: 7,461
|
Post by Rocky Mtn Saver on Jun 24, 2014 9:15:10 GMT -5
Ok, I do see the difference. My husband says he wants to "live" in retirement not just exist. He feels people living on a lot less won't have the options to do what they want when they want.
It depends on what a person feels is "living" for them personally. For me, I would feel incredibly tied-down and burdened by buying/spending/maintaining all the stuff you described in your posts as what you guys want to spend your money on. "Stuff" is not fun for me, and most of it is not things I want to spend my money on. So I don't need anywhere near $5-6k monthly in order to "live" quite comfortably and not feel deprived. My focuses are elsewhere, and in a lot of things that don't cost much. Also, you have an extra dependent you pay for that many people are not supporting. Finally, keep in mind different costs of living. $2500 monthly in one place is poverty, but in another, it's perfectly adequate. Frankly, it sounds like your husband is being a bit myopic about how people choose to live their lives.
|
|
Rocky Mtn Saver
Junior Associate
Joined: Dec 23, 2010 9:40:57 GMT -5
Posts: 7,461
|
Post by Rocky Mtn Saver on Jun 24, 2014 9:25:08 GMT -5
I've projected inflation and cost of living adjustments into my projections in my retirement calculations.
|
|