Leading Up to Money Goals 2026
This will be my first year full year living off a fixed income of social security and 401K withdrawal. It's an odd feeling heading into 2026. For so many years the focus was saving for retirement and now it's ensuring my funds outlive me.
Now, that's not to say I won't try to enhance my intake in different ways. I'm just trying to be mindful to not depend on the enhancements. Currently, my intake covers my living expenses including sinking funds for the required, but irregular expenses. There's also room to put savings aside for optional spending like vacations/ travel and Christmas. It might not be all I want, but is more than I suspect many retirees can afford. For that, I'm grateful and aware of this privilege.
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| I'd like more travel days in 2026. |
There's the dreaded "but" though. I do not want to go backwards in savings. While I have longer term funds in CD's, my readily accessible emergency fund could be depleted with one or more hits. Before I up the travel budget, I need the emergency account to expand. My house is going to need a new roof within the next six years. With the exception of my washing machine ( which was replaced fall 2023) and new chest freezer all appliances are seven years or more old and we all know aren't built to last any more. I still haven't replaced mattress, or any mattresses in the house and the upstairs carpeting is original to the house from 1988! Just wear and tear on the house needs to be accounted for. There's my "values" spending to include, such as for my kids, my community, and others in need.
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| These guys are part of my spending priorities. Food, daycare, and vet care are not cheap. The pets however are priceless. |
These are all the considerations in my head as I think about spending priorities over the next 12 months. I need to balance wants with needs, aspirations with practicality. It's over halfway through December and I'm not sure what to put down in my plan, but know January will be an intentional low spend month with some no spend categories. My financial advisor says I'm being more than conservative in my withdrawals and I could simply take one time increases for a particular expense. I'd rather not though as it seems I'd be reducing future peace of mind. As you enter 2026, how are you thinking about distributing your income to get the most out of your life?
I have several items on my list to accomplish in 2026. We need to replace our roof, get a new freezer, I would like to replace my car tires before the next yard sale season too. I want to save more and add to our house fund too. So, like you, these are in my head as I think about the next 12 months and the best way to handle my finances.
ReplyDeleteThe second half of 2026 is going to be tight. My HSA will be exhausted so health insurance is all out of pocket. I've got ideas on how to leverage a few mine items and bring in a touch more money to offset increased costs.
DeleteThe first year of living off retirement funds and savings is weird and somewhat scary. We are beyond that but in our new to us house I used the appliance serial numbers to look up the age of each appliance and compared that to the likely lifespan. I then listed by year the ones probably needing replacement. I want to hopefully research options and know who to call to get the work done. Other home projects - make a list and decide what is most important to you for upgrades. Then you can budget for it.
ReplyDeleteThat's a great tip on the appliance replacement fund. I'll take that tip!
DeleteIn your shoes, I'd work on tracking my "musts" for a few months or so, work on building a bit more incoming money (something simple like Prolific would work well - when I wasn't working I could make about $100 a month by filling out the studies & then maybe signing up for a few subbing shifts?) Maybe set an earning goal & really track the spending? once you do that for a few months & have a slightly more expansive emergency fund, that would like you feel more comfortable, as you wouldn't need to draw down your savings to pay for other splurges that you are right to want to enjoy. I find having that dedicated earning goal to be helpful and immediately move all funds into the savings you are looking to build.
ReplyDeleteOther than my daughter's birthday , I have no expenses but basic living until March. I'll hine in on those musts. I really need to watch for leaks. I've not heard of prolific. I'll look for that but send a link if you think of it. Yes, I hope a few opportunities a month present themselves for contracts or subbing, but organized and that I can plan ahead.
DeleteOh, and that was Hawaii Planner, above
ReplyDeleteI could tell your writing. You have such good tips all the time.
DeleteI take a monthly allowance about 10% monthly expenses so that small incidentals aren't worrisome. Then a quarterly lump for the year's expenses that are just at 6 or 12 months. I keep a "cash reserve" fund equal to 3m expenses so that an emergency doesn't need to be covered while the market is in a down week.
ReplyDeleteI have 3 months set aside, but would feel more comfortable at 6. Plus, those replacement costs need to be factored. I'm so used to monthly budgeting, moving to a quarter system would be tough but worth looking into.
DeleteI meant that to say 10% ABOVE monthly expenses. It does take some adjusting to a quarterly though process. I found however, that we have concentrated expenses in March/April for season tickets to our local theater and college football as well as homeowner/vehicle insurance and any tax bill that is underpaid (I always try to owe a little so there is no free loan from me ;-) Then in Sept/Oct vehicle insurance and Dec prop tax. Like you, I plan travel ahead of time so I lump those costs into these quarterly forecasts so my Financial Planner can monitor and "sell high" as needed. I just find it easier to do fewer sell/trades to get the $$ I need. In 2025 I earned twice what I withdrew!!!! Party time. I'm in year 6 and have become very comfortable with this. I was super nervous the first 2 years and I think you're doing terrific!
DeleteI give you gold stars for thinking and planning ahead, rather than just shrugging your shoulders and singing "Que sera, sera." That planning/thinking is critical and vital. And yes, as we age here, let alone given the health issues, we play it conservatively. No flashy investments here!
ReplyDeleteI don't want to be a burden when I'm older to my kids. I also want to live beyond ramen and beans. It's a balance but I also don't need to jet set, but modest travel. So much to consider.
DeleteI am in my third year of retirement now and will be assessing all my outgoings and planning for the next few years. I have a pension that is paid monthly which I can live off easily but not save. My savings did reduce significantly when I first retired as I moved and set up my new house, also travelled a fair bit the first few years. I am finding the challenge is how to balance making sure I have enough for my older age, with enjoying my life and travelling more now while I am still fairly mobile. I see a lot of older people in fairly poor health who are not able to get out much.
ReplyDeleteYou hit exactly where my head is at. 2026 will be a financially hard year, but manageable if I plan, and don't fritter money away. But, adding a lot to savings will be tough this year as well as tough to fit replacement expenses in and do the kind of travelling I'd like.
DeleteI like Juhli's idea above about looking at the age of her appliances and planning around that - not that that will stop things buggering up anyway, but it is at least very forward-thinking. I just finished paying off a small loan I took in connection with getting my roof insulated. I'm going to start putting money into my grandkids' accounts and then the little bit left over - yeah that bit - well my taxes are going up and PUFF there it all went! Not that I'm complaining because like you I know how to budget. I have no idea how people who just "wing it" get by in life (and I don't include people who really are on the poverty line in that). My nerves couldn't stand it!
ReplyDeleteJuhli is a smart cookie. Yes, like you, I'm a planner but see myself stretching out of my comfort zone too often. Taxes and insurance are budget killers. I feel I get little direct return in either, but I guess living in a society means supporting the common good.
DeleteI'm not much of a planner but hitting the big 6-0 next year, Jon & I (and Tony) need to celebrate in style - with what Jon's suggesting I might need to sell a kidney!!! xxx
ReplyDeleteAs airfare alone to just about anywhere outside of the US seems to be at least $1200, I want any international travel to be for a meaningful amount of time. That mean lots of accomodations costs. But, I've ideas. I hope you live up this year and celebrate 60 in style. Of, and I love Wetherspoon's no matter if fashionable or not. Dinner with a beer for £11 and refills under £4? Yes please.
DeleteThis is a good post and I enjoy hearing how others spend/save. I'm with you in that I'd rather have peace of mind as well. Here's to a new chapter. Happy 2026.
ReplyDelete2026 will be a financial stretch for wants, but I LL take care of needs before further commitments. I'll get my taxes done before going to Greece and that will then give me more knowledge to adjust after first quarter.
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