Disturbed by not saving

[gayl]

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?

 

[Ronstar]

Yes - stop worrying. Home updates eventually end. I felt the same way through a remodel a few years ago. Now it's a distant memory.

Someday you'll look back and realize that your spending on your home updates was not a big deal.

How to stop worrying - realize that you're making progress toward completing the updates. You're getting closer to the end with each step you complete and each check you write.

 

[gayl]

You felt like that too? Thx. I know it's affordable but it's just that I've always saved. Except right now. Unfortunately

 

[Ronstar]

yep - I saved for years and then retired and then started a remodel. I knew spending was coming, but it still was a jolt.

 

[CindyBlue]

You felt like that too? Thx. I know it's affordable but it's just that I've always saved. Except right now. Unfortunately

I know how you feel...I felt that way for the first year and a half of my retired life when I had to live off savings to make it to my pension and then to SS. It was SO scary!! I ran my calculations over and over and over!

But finally, I just had to trust that my calculations were correct, and that I'd be able to stop the outward cash flow when the 18 months were up, which is what happened. I now can live off those two incomes without (so far!) needing to access my savings anymore. But I am making it a point to save some money each month even now - I just feel better when I do it (smile!)

You will get there - make sure your calculations are correct, and make sure that you make adjustments if necessary, and you'll be fine!

 

[REWahoo]

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.

 

[Jerry1]

I know how you feel. I’ve been retired only three years and every year so far I’ve gone over budget. While it’s true that I accounted for these “lumpy” expenditures, it feels like I need to get things to settle down. If every year has lumpy expenses, i.e., I go over budget, then some time in the not to distant future, I’m going to have to adjust. I’m thinking this year should be good because the big hits are done. I’d like to come in under budget this year. We’ll see.

In the meantime, I don’t really “worry”. I pay attention and will adjust as needed, but I know there’s a lot of conservatism built into my plan and one way or another, I’ll be okay. You will be too. Don’t spoil your remodeling excitement.

 

[USGrant1962]

Yes, it is a difficult mental switch to flip for frugal people who saved prodigiously to attain ER. Having a savings habit got you to where you are. But think about it this way - what were you saving for? Presumably, you were saving for retirement - so it is OK to stop saving now. Especially if your other income covers your base expenses, which yours apparently does.

 

[dmpi]

It's a skill/mindset most people already have. Spend for something...and then forget about it. It took me awhile but I finally learned how to do it.

 

[RobbieB]

So...instead of smiling at your new floors and saying "Yes, just what I wanted"

You are despondent about blowing all your income (no nest egg hit at all) and sorry about the whole thing?

Well, no more home improvements for you eh? Good enough is good enough.

 

[skyking1]

I know how you feel...I felt that way for the first year and a half of my retired life when I had to live off savings to make it to my pension and then to SS. It was SO scary!! I ran my calculations over and over and over!

But finally, I just had to trust that my calculations were correct, and that I'd be able to stop the outward cash flow when the 18 months were up, which is what happened. I now can live off those two incomes without (so far!) needing to access my savings anymore. But I am making it a point to save some money each month even now - I just feel better when I do it (smile!)

You will get there - make sure your calculations are correct, and make sure that you make adjustments if necessary, and you'll be fine!

That is very much the same for our plan, about 18 months of lumpy spending till things settle out. Your report back was heartening.

 

[Scuba]

Consider the spending just a change in your asset allocation. You’re withdrawing cash to invest in your home. No change in assets/net worth, presuming you are making updates that will ultimately add value to your home.

 

[Aerides]

I thought it would be a relief to get everything done at once (cooktop comes in 2 weeks). Wrong.

Not wrong, right. Get it all done and over with so you get to enjoy it quicker and longer.

The "old" way of thinking, in the accumulation phase, would be to spread it out, to budget, do a bit now a bit later, no big hits. But that no longer makes sense.

Once retired (and, presumably older) if you need 10 new widgets, getting all 10 now, which you can totally afford, means you get to enjoy all 10 now, longer, and no longer have to put up with the old widgets. - insert home repairs, redo, furniture, clothing, whatever, for your widgets.

Last year I took inventory of a lot of new furniture we needed throughout the house. DH wanted to do piecemeal, spread things out. Nope, I was already more than ready to replace, it was time. So I did.

 

[iloveyoga]

I actually don't "save" money any more. I try to preserve what we have, spend a reasonable amount as needed, and watch the rest grow over time. Our pensions and SS cover most of our living expenses. As I look back over it all, we probably saved too much in our working years, which is actually a weird feeling.

 

[old medic]

Consider the spending just a change in your asset allocation. You’re withdrawing cash to invest in your home. No change in assets/net worth, presuming you are making updates that will ultimately add value to your home.

THIS.... Your investing the next couple months in your home...

 

[athena53]

I also stopped saving when I retired in mid-2014- the first year our assets went up by $100K AFTER withdrawals but we downsized the next year and that was an expensive year. House we bought cost more than planned (I still love it 7 years later), a few problems we needed to fix in the old place including a "surprise" clogged drain in the basement for $5K, changes to the new place cost more than expected, furnace had to be replaced that fall and the A/C in the spring. Both were 20 years old but we didn't expect them to fail in the same year!

Things have calmed down considerably since then. I've settled on a withdrawal rate that's sustainable (assets up an average of 3.4% annually AFTER withdrawals) and it's high enough to cover the lumpy expenses. If there are no urgent lumpy expenses (unexpectedly high taxes, replacing the car), I spend it on fun home upgrades, travel, or my grandchildren's 529 accounts.

The first year is scary for many of us and the recent market doesn't help. As long as your income and withdrawals are sustainable and are high enough to cover the "expected unexpected" you should be fine. The biggies in that category can include car replacement, roof replacement and medical/dental expenses (Medicare is a blessing but I got 2 dental implants in 2021).

Enjoy your home improvements!

 

[ElizabethT]

Consider the spending just a change in your asset allocation. You’re withdrawing cash to invest in your home. No change in assets/net worth, presuming you are making updates that will ultimately add value to your home.

This is precisely what I came here to say. You've simply diversified your assets a bit. More real estate in return for slightly less cash or equitities.

I do understand what you are experiencing, however, as I went through the same thing when we redid all four of our bathrooms at once in 2020, and it seemed that the outflow of corresponding cash was endless. It finally did end, of course, and now, in 2022, I continue to be so pleased with how each and every one of them turned out, with absolutely no regrets.

 

[Dtail]

It is a mindset and realize it is temporary.
You are not going through any savings or investments, so that should make you feel better about the whole situation.
You saved all your life and so think about how it will all look in the end. Your home will be even more beautiful.

 

[freedomatlast]

Sounds like you're able to pay for all of the home updates with cash flow from your pension and social security without dipping into savings or investments. That's a great position to be in. The time is now to enjoy what you worked for and being able to do so while letting 100% of your investments continue to grow is an ideal situation. Relax and enjoy!

 

[street]

Not that I would lose sleep over spending money I totally understand your feelings. I still struggle with spending money on something like home remodel and vehicles. After it is done the hurt disappears and I realize I could afford spending the money. I think it is a very natural feeling for people with our frugal ways of living.

Good Luck and have fun!

 

[Midpack]

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?

I wouldn’t worry about it, but if it bothers you that much. From now on, set aside the money for special projects separately and don’t proceed until you have the full amount. Then you can do the project and continue with your monthly savings without impacting your monthly income or your nest egg…

 

[tb001]

I know how you feel. I’ve been retired only three years and every year so far I’ve gone over budget. While it’s true that I accounted for these “lumpy” expenditures, it feels like I need to get things to settle down. If every year has lumpy expenses, i.e., I go over budget, then some time in the not to distant future, I’m going to have to adjust. I’m thinking this year should be good because the big hits are done. I’d like to come in under budget this year. We’ll see.

In the meantime, I don’t really “worry”. I pay attention and will adjust as needed, but I know there’s a lot of conservatism built into my plan and one way or another, I’ll be okay. You will be too. Don’t spoil your remodeling excitement.

We’re feeling the same way. We relocated 3.5 yrs ago and I officially pulled the trigger two years ago. But we’ve been spending a lot on the house to get things the way we want them. Some of it cuts annual spend (solar, etc…), but it’s still money out the door on top of our budget. And now we pay taxes to take it out, so it seems to hurt even more! The first few years DH was doing some side work and I had some money come in from my job, so it was easier to justify. This year it’s possible we’ll have a little coming in, but the outflow is stressful!

Mr. market and inflation don’t help. I know we theoretically get to raise our spend by inflation, but it stresses me out!

 

[Markola]

You might try reading the book “Die with Zero”, which forces a reader to confront some of these fears and ask oneself, “What high quality life later, exactly, are you storing your monetized life energy FOR?”

You still might not want to die with zero but if it gets you to “Die with 90%”, maybe that’s an improvement.

 

[gayl]

You might try reading the book “Die with Zero”, which forces a reader to confront some of these fears and ask oneself, “What high quality life later, exactly, are you storing your monetized life energy FOR?”

You still might not want to die with zero but if it gets you to “Die with 90%”, maybe that’s an improvement.

I'll check it out from the library. One of my concerns is that I'm self insuring for LTC as insurance felt too expensive (everyone in my family & extended family aged in place .... it's our culture). Another is all the furniture went to the dump along with the old floors in the 3 rooms. And the stove. So I'm not nearly done.

Weird thought in my sleep last night:: do I need to get a new toilet?? Why can't the old one (replaced by water company once) be used?? Well ~~~~ got a new one & asked him to pick it up. Moving a chair from another room until I decide on furniture

 

[Sue J]

As a devoted saver I understand your feelings!

Since DH retired we have made it a point to live on just his pension. Other income (his HRA, my SS, my part-time income is SAVED. We are still able to do that most months.

But I have learned that stuff breaks and sh!t happens. Some months we blow right past that point and because we save so much every other month, it's ok!

In 2019 we finally redid our kitchen. It was hard for me to accept that this was going to take a nice sized chunk out of our savings, and of course by the end we had spent at least 25% more. We waited a long time to do it and I know it was the best thing to spend the money on. Like another poster said, you are moving the money from cash into the value of your home. It's a GOOD THING!

I do an income and expense spreadsheet for every month. Most months show that we save 25%-35% of total income. If some month turns out to be a negative it just starts over again for the next month. Clean slate.