I live, write, and garden in the PNW with my husband of 28 years, disabled daughter, adult son, and my 84-year-old mother. We have paid off $250,000.00 worth of debt (if you include the interest) in the last fifteen years and as of 6/12/2020 are 100% DEBT FREE!!!!I'm not sure what we would have done this year if we hadn't managed to get the credit cards paid off when we did. We have lost $600 every 4 weeks to the 2% rise in taxes. Previously that money was going to pay down debt. Our plan for this year had been to start contributing to the 401K. Now it's going to pay for a government retirement program that has no chance of even existing when we are old enough to get anything back. I feel like they are taking our retirement away from us twice. One by not allowing us to have the money to provide for our own retirement, and two, by feeding it into a system that will be bankrupt long before we ever see our 60's or 70's. It is frustrating.
Our 401K is not the greatest, it has NO matching at all. But it is a tax shelter. Just one we can't afford to contribute, too.
I am trying to rethink a lot right now. The idea of cashflowing college for the kids is still, maybe, within reach. It would be so much better if there were jobs available. If I knew they could save a couple hundred dollars a month towards college I wouldn't worry so much. Even my niece, who did manage to get a job last summer, only gets about 3 hours a week because retail is practically moving backwards right now.
So anyway, changes I will be making starting after March is to eliminate the vacation fund of $100 a month. This one is going to just have to last us for several years. And that's okay. It's a luxury and vacations were completely financed by us (no vacation benefits). If we hadn't been saving so long for this one and already had most of it taken care of, I'd seriously think about cancelling it.
I will be cutting the laptop fund down to $50 a month and I will be cutting the appliance fund down to $50 a month. Both were previously at $100 each. Once I know what the property tax is going to be this year I can make an adjustment on my property tax fund. It has been approximately $1060 per year for the last several and our tax assessment went down. They should send out the bill soon. Right now I am setting aside $100 a month, but when I know what it actually is, I will cut it accordingly.
Once mid-April arrives I can turn off the furnace at the old house, which will mean no propane costs. Propane has jumped dramatically this year. We keep the furnace on until there is no chance of the pipes freezing. Also once they are done with the repairs to the old house I can have the water/sewer shut off, saving me $72 a month.
The four person cell phone contract we are on expires this summer. With DS being homeschooled there is no reason for him to have a cell phone anymore. He is always with me or his father or his grandmother. The only person he ever texts he can IM as well. Honestly I wish there were an unlimited texting only plan, no phone calls, because that would be the best thing for our needs. DH and I use Skype when he's in Alaska.
I think when we do move I am going to up our laying hens and start selling eggs. Just one of those sign in the front yard things. If I can make enough to pay for feed for them and some broilers that would cut our food costs dramatically. Also starting to seriously research rabbits. I've talked about it off and on, but it's time to get down to the knitty gritty on it.
If eggs pay for feed I can cut our grocery budget by $200 a month. Then maybe we could handle college and retirement.
I keep trying to keep myself focused on the fact that we are out of credit card debt and we are comfortable. It is mostly luxuries I am looking to cut. It is not necessities. But we've only gotten to have luxuries recently so it is hard to have worked so hard to get here and then feel like the benefits we should have been reaping have been snatched away. We feel the loss of that $600 a month. But I imagine there are a lot of people out there that feel that 2% even deeper.
Tweaking the Budget
March 1st, 2013 at 12:59 am
March 1st, 2013 at 01:54 am 1362102883
March 1st, 2013 at 02:33 am 1362105194
March 1st, 2013 at 03:27 am 1362108423
Even if SS is not "fixed" and does go bankrupt, benefits will be paid from payroll taxes being collected. It is estimated that 3/4 of benefits will still be paid. Not ideal, but better than nothing.
March 1st, 2013 at 03:50 am 1362109843
March 1st, 2013 at 03:53 am 1362110036
March 1st, 2013 at 03:56 am 1362110160
March 1st, 2013 at 04:10 am 1362111017
What does your daughter want to do for college? Does she want to stay local or go out of state?
March 1st, 2013 at 04:13 pm 1362154401
Which, I see, Petunia already pointed out. Sorry!
March 1st, 2013 at 10:30 pm 1362177030
Although I know it will be unpopular on this particular site, I agree with you completely- starting life with a debt-free education is one of the best things you can possibly do for your children. One option if you need that money for your retirement would be to consider giving your kids an interest free loan for college instead of paying outright for all of it. That way they get to go to college without owing lots of interest, and you recover your retirement principle over the years as they pay you back when they are working. Instead of sacrificiing the total amount, you basically sacrifice the interest you would have earned by investing that principle during their college years. Of course, that situation would only work with certain family dynamics/personalities, and mixing money with family can turn out to be more mess than it is worth. Just something to consider.
March 2nd, 2013 at 12:13 am 1362183191
March 2nd, 2013 at 12:15 am 1362183319