Disturbed by not saving

[Mulligan]

I know intellectually that we have so much in our portfolio that we will never run out, but it still disturbs me to have a "negative month". That is, a month when we spend more than our pensions and social security. Even though we come out positive for the year and have yet to draw on our portfolio, it is difficult to drop the LBYM mindset that would always ring the alarm when we overspent.

You think you have mental money issues, Gumby, I am worse. I wont take a plug nickel out of my investments. I cash flow finance every big expenditure with my pension. I wanted a new vehicle, but wasnt going to take any money out of my stash for it. So last month I got a 0%, 5 year loan, financed by my COLA increase that I just received and it covers the car payment. Problem solved, ha.

 

[RobbieB]

With no pension and 1300 /mo on SS survivor, I/d be eating beans and rice with no draw.

Yeah, once you start doing it, it gets easier -

 

[gayl]

You think you have mental money issues, Gumby, I am worse. I wont take a plug nickel out of my investments. I cash flow finance every big expenditure with my pension. I wanted a new vehicle, but wasnt going to take any money out of my stash for it. So last month I got a 0%, 5 year loan, financed by my COLA increase that I just received and it covers the car payment. Problem solved, ha.

Exactly

 

[Fermion]

I feel for you OP. We are in worse shape as we do not have a pension and we were really caught off guard by the insane inflation it seems nobody else but us is experiencing (500% increase in the cost of some lumber materials in a 2 year time span).

I feel like we are going to have to cut into Roth contributions much sooner than I anticipated, or we will need to somehow get some cash out of our new home we are building. It sucks when you estimate you can build a home for $200,000 and it ends up costing $300,000, even when you are doing ALL the labor yourself!

Alternatively I could try and convince the wife to sell the sailboat we never use, which would free up a ton of cash and monthly expense but I get shut down every time I mention it.

Getting to the point where I am just going to give up and let things work out however the chips may fall. Cat food really isn't that bad.

 

[5Miler]

I recently started drawing SS but the first 9 years and 9 months of my retirement was financed through IRA withdrawals to the tune of just over a 4% WR. While working I was saving close to 40% of my pay so the abrupt reversal took some adjustment period. I was fortunate in my retirement timing as SORR turned out to be heavily in my favor. As many people have experienced, my accounts have grown steadily despite not adding to my savings over the years.

These days I no longer worry about not adding to savings, rather I worry more about what to do with the excess I will most likely leave in the end.

 

[brett]

We moved. Downsized because we wanted to and what we planned.

And because $200K of updates and renovations would have disappeared in the blink of an eye without adding as much as 100K to our sale price.

 

[1242Vintage]

I’m also one of those that retired and started a seemingly endless stream of home repairs and improvements. I look at the expenditures as improvements to my homes value. Just a transfer between liquid capital in the bank into increased home value.

Mostly everything we did (kitchen, baths, decks, flooring, HVAC, roofing, etc) would need to be fixed and addressed when we downsize. Now we have all the updates and get to enjoy them until then.

 

[RobbieB]

Me too. Well over a hundred grand in improvements and landscaping. Makes the place more enjoyable

 

[airbornesapper]

Almost 700 million of the world's population live on less than $2.00 per day. Give some thought to that and ask yourself why on earth you are worrying about "not saving" for a couple of months.

Amen

 

[Retired Expat]

Not sure how to title this or if its been discussed recently ....

I barely slept last night because of all the money I'm going through. It's not a happy "Blow that Dough" but a sleepless one. I have always saved, except right now. I'm not spending any of my savings or investments, I'm just not saving this month or next. Spending every penny of my monthly pension and SSA because of home updates. I thought it would be a relief to get everything done at once (cooktop comes in 2 weeks). Wrong.

So how do I stop this stupid (JMHO) worrying?

If money is spent on your home improves it or helps it hold it’s value or saves in future maintenance, consider (at least in that little voice in your head) that this money is just an alternate form of savings.

 

[Hermit]

I started building my home when I retired in 2013. I'm still at it. I have been spending twice what I planned for retirement and twice what I had been spending prior to retirement. In the last couple of years I have just quit tracking my spending on a regular basis. Funny thing is my investments still seem to grow most every year so I must be OK. Well, maybe I should just say my tracking is more on an annual basis. Time to update Quicken for last year!

 

[zippy2020]

Remodeling is almost always painful. I'm a longtime member of Gardenweb's Home forums, now part of HOUZZ, and I can assure you that although some home remodeling projects (of any type or size) get reported as being done on time and on/under budget, they are a very, very, small minority, LOL.

Most of us are happy to assure you that eventually, it all gets finished and the pain finally stops. And you are happy and excited about your completed new changes!

And you swear you will never put yourself through this kind of torment again.

Well, until the next time, anyway!

See, that's the trouble with the pain fading - you think, "it'll be different this time, I know what to expect, I have extra $$$ padded into the budget, and a reliable contractor I've used before."

But it isn't different, and it's just as frustrating as before. But at least you know this time, it WILL come to an end. Hopefully, before your bank account reaches zero......

 

[davidfin]

Embrace your new reality and decide to enjoy it. Spending is every bit as much and likely more fun than saving.

 

[gayl]

Well that "only spend $350 on dining out this month" plan all the way to today. Throwing a superbowl party (just 10: pizza, snacks, beverages, then coffee) on huge cushions in my family room ....

 

[GenXguy]

Well that "only spend $350 on dining out this month" plan all the way to today. Throwing a superbowl party (just 10: pizza, snacks, beverages, then coffee) on huge cushions in my family room ....

Wow, that sounds so excessive. I've probably spent $20 total dining out over the last 2 years combined. I never went out to eat much and have dialed back even more during the pandemic. I spend a lot more on take-out, but that's way down also. My super bowl meal was a can of soup and a brownie, and I'm enjoying a cup of coffee now.

 

[JDARNELL]

Yeah, once you start doing it, it gets easier -

That is what I am afraid of.

 

[Calico]

Wow, that sounds so excessive. I've probably spent $20 total dining out over the last 2 years combined. I never went out to eat much and have dialed back even more during the pandemic. I spend a lot more on take-out, but that's way down also. My super bowl meal was a can of soup and a brownie, and I'm enjoying a cup of coffee now.

 

[RobbieB]

That is what I am afraid of.

Fear is the life killer.

 

[Koolau]

Wow, that sounds so excessive. I've probably spent $20 total dining out over the last 2 years combined. I never went out to eat much and have dialed back even more during the pandemic. I spend a lot more on take-out, but that's way down also. My super bowl meal was a can of soup and a brownie, and I'm enjoying a cup of coffee now.

Whoa! Pre pandemic, we spent much more than $350 and back in the day - back when we were both w*rking, we ate out almost every day. Of course, we didn't do fine dining very often, but it would be rare to drop less than $20 for 2 meals so it adds up.

We've gotten away from it and saved enough to almost cover our inflation "bill" over the past year. YMMV

 

[gayl]

I've probably spent $20 total dining out over the last 2 years combined. ... My super bowl meal was a can of soup and a brownie, and I'm enjoying a cup of coffee now.

I'm sorry, that must be tough

 

[Aerides]

Wow, that sounds so excessive. I've probably spent $20 total dining out over the last 2 years combined. I never went out to eat much and have dialed back even more during the pandemic. I spend a lot more on take-out, but that's way down also. My super bowl meal was a can of soup and a brownie, and I'm enjoying a cup of coffee now.

$350 a month? For a couple (most of us here) that's maybe one dinner out a week.

For those that aren't on a lean-fire, who want to go maybe to lunch once or twice and dinner, etc., it's on the low side.

 

[Mulligan]

$350 a month? For a couple (most of us here) that's maybe one dinner out a week.



For those that aren't on a lean-fire, who want to go maybe to lunch once or twice and dinner, etc., it's on the low side.

We go out probably 3 times a week. I bet its $250-$275 a week counting tip. No fine eating, its usually the drinks that are the biggest cost.
But we have an Ace in the Hole. I am a member of a local Elks that provides dining in addition to drink. Food is pretty good. A person can get drunk and stuffed on $25 bucks. $2 drinks and no chintzy alcohol pours. Of course you then would have to pay for an Uber to get you home then.

 

[gayl]

Miniscule spending:: just another $135 to enlarge counter hole so new cooktop will fit. Then another big expense -> replace family room furniture.