Preparing Financially For 2025
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| Photo by Zeynep M.: https://www.pexels.com/photo/milk-coffee-wax-candle-and-book-18567306/ |
It may be early to start thinking 2025, but it's time to grab a brew, a note pad, calculator, lap top and my spending history to financially prepare for the next year. I'm doing a lot of number crunching to ease my mind now that I've set a firm retirement date. I've run several 2024 tax calculators and think I've gotten ahead on potentially having to pay in due to interest earnings. When I increased my withholding in March, it was a shock to see how drastic take home pay was cut. But, I've managed just fine on it, and the interest earned on CD's can safely sit. Granted, my son living with me has helped with costs in several areas, like previously hired out jobs. Others have increased, ones I'm not passing on to him because they've been pretty negligible so, far like utilities.
There's a few investments I'd like to make while I'm still working that long term will be beneficial. The first on the list is bought and paid for after seeing a huge end of season discount with free shipping.
- Two raised garden beds to grow some home produce. This is investment in my health in addition to financial as both the work gardening and consuming more fresh food will be good for me. Tractor Supply had these at $35, less than 1/2 of former price with free shipping. I'll set these up where the errant trees are that will be cut down. ( And then cut up for free fire wood)
- Small energy efficient chest freezer. If the garden does well, I'll want to preserve more. My daughter's garden produced a lot with little room for storage. (I'm gifting her one as well for Christmas so she'll be set for next year). This will also help me free up space inside for saving batch cooking. I'm finding more and more reasons for having extra ready meals on hand. For example, one sister had a fall a few weeks ago and asked for help with meals for a few days so she could recover. I made her tortellini soup, but it would have been so easy to have been able grab a few meals from the freezer ready to send to her for them to just thaw and reheat. Kim and Kay at Out My Window, and Chef Jules are queens at this, preparing ahead and sharing generously.
- Carefully look at cash flow needs and put any extra in CD's before interest rates come down. I've liked the flexibility of the short month CDs. I get the better interest, but have access fairly quickly if needed. I have to know what I really need for cash flow for those irregular expenses and not get caught short, but it's also savvy to take advantage of passive earnings. I'll also throw adding to my Roth IRA in this bucket too. (Late night insomnia got me on this task. I have enough on hand, with what I can add to my sinking fund account to cover 4 months of intermittent expenses so popped the minimum from that ridiculously low yielding money market in a 4 month CD. It'll add $72 dollars by March for just making a few computer clicks.)
Another action I'm slowly getting through is reviewing last year's spending to look for leeks. I'm mostly looking for elimination of recurring costs for items or services I didn't really use or didn't receive enough reward to merit the cost. My Amex card likely won't be renewed. I'm not seeing the rewards compensating for the annual fee compared to my Unlimited Rewards Visa. I want to look for better price points on the expenditures I'll keep in my budget. My husband was really good at renegotiating rates for things like cell phones and Internet. I need to channel his skills.
On paper and fairly conservatively, I look to be in good shape financially. There's room for everyday needs, home and car maintenance, indulgences on occasion, some travel, and to help others. I've no trust in promises of the cost of living going down; in fact think harder times are yet ahead. We truly need to do for ourselves, with an eye to kindness for others. Doing yet another deep dive across my spending and saving plans will add more confidence that this is the right time to retire.
Sam, I heartily agree that it is NOT too early to think about 2025. Like you, I have been looking at numbers, both $$ coming in and $$ going out, and where we can make adjustments. We have a small upright freezer that we put to heavy use, from our garden production (sliced zucchini, anyone?) to homemade stock to everything else. It's been a huge help. And I love this thought of yours: "We truly need to do for ourselves, with an eye to kindness for others." In the aftermath of the elections, as some of us reeled, my closest friends and I all agreed that our community and our family needed us no matter who won, and that there is much right here at home to turn our hands and hearts to so the least of us are supported and uplifted.
ReplyDeleteI have limited space except the garage and that was tough in my old refrigerator. I need to find a freezer rated well to be in a cold and sometimes hot garage.
DeleteI think you will truly enjoy the freedom that batch cooking and freezing affords you. Neither Tommy nor I can lift heavy pans into the oven, so cooking 8 bscb along with a package of Brussels sprouts and all carrots in refrigerator was a lot for us to handle. I did freeze a dinner for a helpful neighbor.
ReplyDeleteWe freeze the protein separate from vegetables, sort of a version of batch cooking. Maybe a bscb is what we need to thaw for sandwiches here at home or to take in the car in order not to buy a burger. So, we don't need to thaw a whole meal. He did find a chicken leg with potatoes and carrots frozen in a freezer bag. That might work for some of your batch cooking.
One day, when I did not feel like eating, I asked him what he was eating as he came in with food on his walker. He said he found frozen corn I had cut off the cob, two frozen drumsticks in another bag, and had opened a can of mixed vegetables...lol. So, he won't starve or eat a peanut butter sandwich for dinner.
That is a great deal on the gardening supplies for next spring. Is there anything you can grow in fall or winter after summer crops are done?
Because of my age, I do not have to pay any fees on my cc at PNC. Maybe you can find something like that for yourself.
By the way, Rossen Report had a list of means to obtain a home mortgage besides the First Time Homeowner's program that I knew about and told you. I think he is on NBC.
We have resources for what's available locally for home financing, but thank you.
DeleteThe most I've needed "urgently" is $13k to replace heat/cool. Water heater under $1k. Anything else has at least a 30d grace period. I do try to keep $20k liquid on hand-it offers peace of mind even though it doesn't earn a penny.
ReplyDeleteCongrats on the prepping purchases. We're a household of 2 and I'm an avid gardener. Our 14cf freezer is stuffed to the gills. I can't get another pound of butter in there. (we just had a super sale and I bought a full year's supply ;-)
My raised garden beds are rotting. I'm going to drive over to Tractor Supply (45miles) and buy some replacements! Thank you for this!!!!!! You've helped me and saved me a small fortune as we've been slowly replacing with Trex material so that they will last the rest of our lives.
Wishing you a great Sunday with some joyful moments as you congratulate yourself on your many successes. I trust the knee rehab continues in a positive direction. I've done both and it takes a full year to feel perfect and I do dearly love my twins :-)
I've never been a gardener but figure I can learn. My knee is still wobbly and feels weird but it's only been three months.
DeleteI don't think it's too early to start planning for 2025. We're doing the same! We will have two kids in college next year (tears) & we are trying really hard to be prepared. It's also our 20th anniversary, and we want to do some big housing projects.
ReplyDeleteEven though I'm not working at the moment, we definitely still follow the "cook once, eat twice" method, always planning for leftovers. It just makes life so much easier not to worry about what's for dinner half the time.
I signed up for several subscription services (mostly job related) & need to go through & cancel everything I'm not using. Some leaks have slowly crept into the budget on our side. Good remind to get those sorted.
(Hawaii Planner)
We had two overlapping college years while still having after school and summer child care so I feel for you.
DeleteYou are very smart to start your planning now. Just remember than nothing is etched in stone. You can change bits and pieces along the way. You have to be getting excited.
ReplyDeleteHave a great week.
Yes, it will be a nimble plan.
DeletePlanning early is always helpful. It's just me, so I have to do it all. I've worked my budget into 2025, tho I'm sure it'll need tweaks. Before I retired in May, I made sure to max my Roth and put all I could in my 403b. Now that I've gone back to work to teach one class, I save all that income at an online bank that pays better interest (new roof coming up soon). Plan as much as you can, but accept things will change ! I also think things will get tougher.
ReplyDeleteI have a few opportunities to beef up my retirement before March.
DeleteI'm not expecting prices to go down either, that way I won't be disappointed, but rather pleasantly surprised if they do go down. That was a real good deal on the raised beds and will give you something to do in your retirement. You are one smart cookie to be looking ahead financially and getting all your ducks in a row now while you are still working.
ReplyDeleteI think the new administration will go in promising big then blame economic conditions that don't change or get worse on the previous. That's the joker card he'll play. I hope I have success with the garden beds. My daughter has done great with hers.
Deletegood for you! I admire your industry and wherewithal. I wish I could do the same with my spouse
ReplyDeleteI find I'm trying to channel him with my actions. He was a prudent household financial manager.
DeleteIt's a bit nerve-wracking trying to make sure you cover every eventuality before you retire isn't it, but you have always seemed to be on top of all things financial and I'm sure you've already got it all covered!
ReplyDeleteIt's scary to take this leap. Worst case scenario I go back to work.
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