tag:blogger.com,1999:blog-14245531.post9111389960004166716..comments2023-11-18T01:21:55.631-05:00Comments on My Open Wallet: Rethinking My Savings PlansMadame Xhttp://www.blogger.com/profile/11536189690094235926noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-14245531.post-26449360864671518322007-06-09T09:31:00.000-04:002007-06-09T09:31:00.000-04:00Is it OK to Spend the Money on making a home comfo...Is it OK to Spend the Money on making a home comfortable yet not lavish or perfect...I live like a spartan so I have to be careful in the home advice area as not my area of expertise..LOL<BR/><BR/>Look at the facts yet here is what I see as a behavior focus from your blog<BR/><BR/>1 - A person who saves first via 401K<BR/>2 - A person who is not crazy consumerism focused <BR/>3 - A person who looks at their expenses even to the penny (banana)<BR/>4 - A person who just bought a condo yet is making a home<BR/>5 - A person who is self reflective and centered and intelligent<BR/><BR/>Putting all that together as you examine your purchases with your new home, I think it is fine you are spending some money to live comfortable as this is the reward of your previous years efforts as you make a home. <BR/><BR/>Yet, if I had to guess where these thoughts manifest themselves, I would say perhaps a latent fear you may spend like your family or repeat the experience of childhood that you do not want to replicate in your household when it comes to money, savings and priorities for retirement. When I see behavior in myself I did not like about my family, I do not want it in my life and in some ways it jolts me yet I realize my situation is so much different too as I have conquered with ever lasting vigilance some of the challenges inherited/learned/impressed from family. <BR/><BR/>Simplicity in KansasKansas Simplicityhttps://www.blogger.com/profile/12521567699275390093noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-68545907082513925952007-06-09T09:10:00.000-04:002007-06-09T09:10:00.000-04:00Savings Rate Calculation - Interesting discussion....Savings Rate Calculation - <BR/><BR/>Interesting discussion. Some thoughts and perspective back. <BR/><BR/>Gross versus discretionary income - I think the answer is look at both. When I view my expenses, I take a look at my savings against total gross earning for the month. This gives a sense of how I am doing overall during the year against my plan of savings, wealth building and savings. Second, I take a look at discretionary incomes (gross less taxes, insurance, housing costs and must pays) to determine how I am doing on an basis of things wanted/needed yet not required. Then I compare the trends over time to see how I am doing. <BR/><BR/>I think this technique gives you two views as your mandatory costs if you treat yourself like a business are must pays yet it helps to see where the money is going post these events.<BR/><BR/>So, each month end I take my gross salary and calculate the percent saved (deposits/match in 401K, ESPP, Savings account change to account of inflows excluding change in value driven by market forces)with all bills paid in full to determine the gross savings. For my goal of 50% of gross this year it makes the calculation simple and repeatable and does reveal if I had put cash in the account.<BR/><BR/>Post this event, I use quicken to examine all my costs yet realize I have some must pay or 'fixed' cost likes taxes, housing and medical so I look at the discretionary percent too.Kansas Simplicityhttps://www.blogger.com/profile/12521567699275390093noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-40759292640413669742007-06-08T06:19:00.000-04:002007-06-08T06:19:00.000-04:00I will soon be in the same situation. I have just ...I will soon be in the same situation. I have just make an offer on a flat and it has been accepted. Next month deposit etc will go out of my account and I will need to buy a lot of furniture, when I left my ex, I sold my part of the house including all the furniture due to me moving to another country and it was no use to take it with me. <BR/><BR/>It scares me to think that it will take 2 years to get used to the higher monthly costs. I will just have to hope and pray that I get that salary increase in October and work hard and get some more of those. <BR/><BR/>Good Luck with the spending break.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-10680268234382516382007-06-07T13:09:00.000-04:002007-06-07T13:09:00.000-04:00I must say I faced many of the challenges you face...I must say I faced many of the challenges you faced almost two years ago when moving into my first place. I had virtually no furniture and had to start from scratch. I found that after a while I just had to make a concious effort and say that is enough and I am not buying any more. I then stopped going into stores. I still don't have everything I want but I have found I can improvise with a lot of things and others I still don't need.<BR/><BR/>I can agree with Boston Gals' comment where it takes about two years to recover from a purchase. I am seeing that in my financial life also.tropicsaverhttps://www.blogger.com/profile/07215461290747882813noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-47674714319132010522007-06-07T11:23:00.000-04:002007-06-07T11:23:00.000-04:00I was a bit luckier than you when I moved into my ...I was a bit luckier than you when I moved into my home, I had furniture and "stuff", it was just old and mismatched. I am SLOWLY replacing and acquiring new things. However, even after three years in this house, I still have empty corners and spaces to fill.<BR/><BR/>You are right; moving into a new home can be expensive. The furniture issue can crop up as a renter or owner - when you move from one space into another you find things don't fit, or the new space inspires some changes. In a way you are lucky that you started with little. It may not feel that way since you had to make a number of large purchases all at once, but believe me, it feels a lot worse when you have to get rid of something perfectly good and spend money on new just because it doesn’t fit into or in the new space.<BR/><BR/>As a new homeowner you have the challenge of recovering from a very costly transaction (down payment, closing costs, moving expenses) and the desire to spend money on the space to make it “home”. I have made peace with my desire to nest in the house. It will be a drawn-out evolving process and I am just living with the unfinished and not-pulled-together look. Eventually I will get there. This may be gentler on my wallet, but I am not getting the more immediate satisfaction you are seeing.<BR/><BR/>I am sure you will not repeat your Mother’s mistake, but taking a breather from spending is a good thing. I know I have mentioned it before, but I have found it to be true. It takes two years to really recover from purchasing a home. It is not just the time it seems to take to rebuild savings, but it is also the adjustment period for the new financial reality. It is one thing to know you will be spending more money, it is another thing to be confronted with an empty checking account at the end of the month or to watch your savings balance go down when you are used to watching it only rise. <BR/><BR/>It takes some time, but your monthly spending habits will adjust and the savings will begin again.Anonymousnoreply@blogger.com