Not a No, But a Sometimes
This describes my perspective on spending right now beyond needs. Maybe I just have particular spending patterns that align where inflation has hit hardest, but I shake my head each month on the difference from a year ago. Thank goodness I was able to save a significant amount from my house and car insurance, but with new expenses for pup and everything else skyrocketing, I'm being cautious.
Not that I'm going cold turkey on spending. I still want nice experiences, good and healthy food, travel again at some point, and there's things that need replacing or repairing around the house. I won't go into the details of my exact budget, but I'm focused on keeping with the adjusted retirement budget of 70% needs, 20%wants, and 10% emergency/unforseen expenses/cash savings (from the former 50-30-20). I'm also determined to not give myself a cost of living adjustment (COLA) from my retirement. I'm squeezing that 20% wants allocation and that includes contributing to a travel fund.
While I can't think of anything I've all out cut from my prior budget, frequency and amount are considerations. Here's a few "sometimes" spending that used to be yes regularly.
Diet Coke/Diet Dr Pepper: I might buy a couple q2 packs or 24 pack, but stretch to the month or longer saving it as an occasional afternoon break. I've also purchased generic versions. If icy cold, it's still the crispness I look forward to.
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| Photo credit pexel.com |
Coffee when I fill up the gas tank: I love that all the places I fill up have the type of coffee machines you can select flavor and the machines grind the beans. Compared to coffee shops, the java's a fraction and lately it seems a straight cup of coffee (I don't do the coffee drinks) often tastes burnt, where as the machines taste fresh brewed. Still it adds up at even a couple dollars a cup and suspect will inflate more. I save coffee out for social get togethers for the most part, but will use any deals or freebies and treat myself to the occasional cup on the go.
Filling Up: Of course without working outside the home, reliance on gas went down. I'm further trying to stretch and account for miles. The luxury of hopping in the car at a whim has been replaced with intentional planning and consolidating trips and waiting for higher gas coupons or points to bring cost per gallon lower. I was not necessarily wasteful before, but definitely not as intentional. I'm still going places, just consolidating whenever possible.
Clothing: I'll always be clean and neat, house and garden work aside, but won't be winning any style awards. Instead, of buying more clothes I'm trying to invest time into knowledge and figure out what in my closet and drawers, looks best and perhaps cull to a more capsule like approach. Then, if there truly is a gap, fill in. I have decided I could use a replacement to a 14 year old pair of cotton denim, draw string trousers (seriously the best clothing purchase I've ever made) as the pair I have, has a few stains I have not been able to get out and are getting a bit thin in places.
Random gift purchases just "because": My gift drawer and closet shelf is being used up and unless something is truly a good gift for someone particular, no matter how cute or a bargain, it's staying behind in the store. As I declutter, I realize I've been the recipient of a lot of random pretty or one time use things that likely the giver found just because it was a "nice" and a good price. I'll still not turn down a great value gift though, but not to just linger in a drawer for maybe.
Deli Counter foods: With the exception of the occasional container of potato salad (because I can't seem to get a taste I like), I'm passing on those little containers of salads and dips and spendy price per pound sliced meat most of the time. There are times even when not working that time truly is crunched or something comes up spur of the moment that needs a food contribution, so I'll not say never to the convenience.
Are there things or categories you find yourself buying less frequently, but haven't cut completely? What's been the biggest shock to your budget? If you're reliant on your retirement funds like me, do you plan to give yourself a COLA or just trim a bit as I'm trying to do?
I like your rule of 70/20/10
ReplyDeleteThere are so many things I've cut back or stopped buying because of the price. Too many to name. Or I wait until they are on sale and then maybe stock up on. I don't buy as many pre-made fries/onion rings - I won't pay $5 for a bag of them. I've also cut back on chocolate (not a bad thing lol) as I'm not paying the prices they want to that either. Meat we've cut back on or wait until it goes on sale. I've been trying to shop at Aldi too - I like several of their items and they are cheaper.
Any convenience foods are a treat, and quite frankly, as I'm older most probably really bad for ne anyway. The chocolate chips at Trader Joes. Which are vegan, doubled in the last year! I buy to make a big batch every few months, for dough for cookies all in my family can eat.
DeleteInsurance for car and house, along with taxes, along with the cost of electricity,
ReplyDeletewater…food also, oh heck just everything!! Also, it was so much more expensive to start a business this time around than when I shut mine down to go
to my govt job 19 yrs ago. Yikes!!!Cindy in the South
Its criminal how high insurance has become and then the fight to get benefits if needed. Good luck with your transition.
DeleteFor my credit cards, I plan on being even more diligent about using the free hotel nights and other freebie perks that come with them. For a $95 annual fee, I get a lot of value from those free nights when used at a hotel where I can also get free breakfast. But I missed using one last year, which still irks me. Also, we are eating down our freezer and pantry stores. I made sure that 3 lingering bananas turned into 2 loaves of banana chocolate chip bread yesterday. I’m really focused on less food waste and less stocking up just because I see a sale.
ReplyDeleteWhat card do you use? I have a no fee that earns rewards. I also have a Delta that pays for itself with free baggage but only if I travel does that pan out. I do get more mileage though too fir both the travel and ticket, plus anything g else I use that card for but don't use it except for Delta flying. No waste is my mantra!
DeleteMy homeowners insurance is coming due, and it skyrocketed. Today I made a lot of phone calls, and found a good policy with highly rated Co for less than half what my existing one wants.
ReplyDeleteWell done! I saved over 1500 making the change and that was after my old company reviewed last year and I saved $900.
DeleteI have been retired nearly 4 years now, and I think it is just sinking in now that my pension is my income forever. This year I have really cut back on eating out, never on my own only with friends now. All of my subscriptions and utilities have gone up recently, so my budget has to be revised. Like you, I love to travel and I am planning one probably my last overseas trip with my family next year. Where I have cut back is clothes, and only recently (eek) as I no longer have the life I used to so only need basic outfits. It has actually left a gap in my life as I have realized that I love shopping for clothes.
ReplyDeleteI'm holding off collecting my pension for another 5+ years so will have a little boost. My SS will be higher than what I get for my husband so after 70, another little bump but who knows what changes to that. Since I had been working from home since 2020, I bought very few office clothes and had a sort of uniform of repeat on office days as did so many others. I don't enjoy shopping so not a loss, but no longer when I want to replace something do I just buy immediately.
DeleteI love this for you. It's always good to reflect on your money / spending and where it goes. I admittedly need to work on this, but I am trying. I try to stick to groceries and I typically meal plan lunch and dinner. I also try not to waste too much food, but that one is tougher for me. I am big into second hand clothes shopping, but I also enjoy a fresh manicure once a month, lol. It's all a balance but I do have savings in case of emergencies and I have no debt.
ReplyDeleteNo debt is huge for leveraging other parts of your budget. My kids have their housing costs, two own, now one rents. My son has a very fake able lender (me), but needs to treat as if he doesnt have flexibility as in future might male same arrangements for my daughtersif it makes financial sense. We're all in a Saving mode, but they're active and have their choice of luxuries like yoga classes, gym memberships, and music programs. I think some indulgences make Saving in other areas easier.
DeleteI set a goal for 2026 to cut one recurring expense a month. A few that I've done so far: 1) I cover Nick's Spotify subscription (a gift), but saw they had a student discount. We jumped through hoops & save $4/month. 2) I briefly joined a Y to see if I would get enough use out of it. I didn't. I cancelled. 3) I cancelled my Kindle Unlimited. 4) We cancelled Netflix & primarily use Apple TV, which we get for free with our credit card. 5) We cancelled Amazon Prime. We try hard not to buy any soda, ever, although we will pick it up a few times a year when the boys have friends over. I will very occasionally have a soda on a flight. I largely stopped going to Starbucks. I try to meet my friends for free meet ups, vs out, but do fit in the ones that can only meet up on evenings or weekends.
ReplyDeleteI've tried to be really diligent with travel optimization, especially for what I consider to be "logistical" trips, like getting Nick to/from school, move-in/move out, etc. - Hawaii Planner
I like your challenge tp cut something a month. Iy adds up. I do enjoy pop, but do t want my old bad habit of multiple a day. I don't do enough travel to earn all the points you do, but you've given me quite a few tips over the years.
DeleteSam, I want to first offer that we were extremely careful about our spend when we first retired about 15 years ago. That carefulness paid off in spades as our portfolio continued to grow. It seems to me based on what you share here that you are on the same path.
ReplyDeleteOur ‘raises’ came only just recently- SA for us both, Medicare for spouse, and soon Medicare for me.
Savings I’ve focused on recently- 1) Haircuts for me just four times a year now that I’m wearing my hair long 2) Buy proteins when on sale, freeze, and then menu plan from what’s in my freezer. 3) Avoid prepared foods of all sorts at the market, as that’s where I see the most dramatic cost inflation.
‘SA’ was supposed to be SS (Social Security).
DeleteAt 65 and then 66 I have built in raises with life change benefits too. Depending on what happens with SS, t H it'll be another "raise" on the future. That's aid, yes, Im being careful now.
DeleteI need to look at my grocery spending because I know I'm wasting a lot thinking I'll cook this and then that and I don't use it all up. I don't do takeaways or deliveries but I know I could do better on just the general supermarket spend. When I do shop I buy myself one Starbucks coffee for the week at 2 euros. When it's empty I just make more coffee, add in cream and put it back in the Starbucks bottle in the fridge. Probably the only thing I've been getting right lately!
ReplyDeleteIll make fewer and fewer real meals once my son is rarely here. Hes still here a couple nights it seems but by fall, I'll have to lure him and the girls. Since I dislike shopping, it motivates me to use everything up and avoud tge store. For coffee, do you mean like containers of cold brew? Coffee is a big expense in my grocery budget.
DeleteNot cold brew. I just make a ristretto coffee, pour it in the bottle and then top up with either whole milk or cream!
DeleteI like the 70/20/10 approach and hope it works well for you. I am watching the outflow here, mostly in groceries since we are not shoppers and buyers, but we have some large expenditures coming up and I want to make sure that we do not feel like we hit a brick wall when they arrive!
ReplyDeleteI bet some of my 70% needs are other people's wants so I might take a harder look and perhaps push a few more dollars/ percentage into the last category for unexoevted expenses. There's a new saving option I want to allocate towards by the end of the year.
DeleteI've been cooking from scratch at the caravan which is always a money saver, and baking too. We haven't used the car since Monday and have been happy pottering around so that's saved petrol and money on coffee out which is a big habit of ours.
ReplyDeleteI've talked myself out several times of grabbing a sandwich or salad and found something just as satisfying at home. I should be able to stretch a tank of gas to overcome weeks and need no more than two a month.
DeleteI spend less on clothes now and I find that I have simpler tastes. I also don't go in for haircuts more than twice a year, and I m trying to eat out less, too. The older I get, the simpler my tastes are. And when I finally retire, I will go thru all of my expenses with a fine tooth comb to be sure they still fit my life.
ReplyDeleteI just don't see the sense in exchanging clothes when I've perfectly fine ones. No one cares what I wear around the house. I still review my budget and what I'd rather spend mire on and where to save the money. Haircuts? Its been since October but is needed.
DeleteI'm a bit late on this one since I've been traveling for 8d. It seems you really like salads and fabulous greens are expensive. I've done this in the past and the savings add up over 5 months.
ReplyDeleteGet 2 containers at least 14" across and 6-8" deep for soil. Plant 5 around/1 center leaf lettuce and/or spinach plants. In a few weeks you can start snipping off leaves for a salad every single day. In 3 weeks start the 2nd one. When the first one bolts, replant....and continue until 2nd frost. You will spend $5 and save $100s at farmer's market prices for leafy salad mix. I used to to do these for my little sister (brown thumb) and my Mom (didn't want to mess with it in her 80s). Works like a charm. In the heat of summer, pull them into the shade at 1pm and at bedtime put them back for morning sunshine.
I hear ya on no retirement raises $.
That's a really good idea! Ill start a coupke buckets now. Yes, I love salads!
DeleteWhen in the grocery store I often think what to buy generic and when not to. We drink a lot of pop, so store-brand generic makes sense to me, but Someone says it tastes not as good and will not have it in the house.
ReplyDeleteDiet Dr Thunder is not Diet Dr Pepper. DIET Shasta cola is not Diet Coke but icy cold, they both hit the spot.
DeleteNot sure where my comment went.....
ReplyDeleteBeing a salad lover, here is how to save $100s through October. Get 2 containers about 14" across and 6-8" deep. Plant 6 leaf lettuce/spinach plants in each, 1 in the center and 5 around. In 3 weeks plant another. At about 5 weeks you'll be able to clip enough from #1 to have a daily salad. When the first pot bolts, replant. Keep going. I used to do this for brown thumb sister and Mom. They loved them! If it gets super hot there, pull them into shade about 1PM and then put back in their sunny spot before you go to bed. Feed the pot every 2 weeks with a balanced 4-6-3 product.
I hear ya on no IRA payment increase!
Oh, I moderate after 4 days so I don't miss comments on older posts. Sorry about that!
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