retire48in2018
Recycles dryer sheets
- Joined
- Mar 12, 2008
- Messages
- 367
A few years ago, we budgeted intensely. For more discretionary accounts, we pulled cash out weekly from bank in specified denomination and then, into envelopes that we each managed.
Therefore, if we had cash in envelope, we could spend. That included a personal spending account for each. We would commonly pool our spending money if we ran out of cash from a specific account.
If we had unexpected issues, we’d decide where to pull it out from other accounts.
It was very strict. But, we had a goal of getting to X dollars saved, and getting out of debt, etc
Now that we hit those, we have relaxed, a little. We’ll use debit card - track how spending and then adjust behavior or plan if going/went over. Perhaps cut vacation, change a project from contracted out to DIY, cut streaming or other discretionary items to compensate, etc.
We have not had the flip side yet (went under expenses)
We have a large, “capital” account for large projects that we can adjust as well.
We set an annual budget, and have a target, but will adjust with market conditions. We also have some longer term sinking fund accounts.
We actually feel better with these controls, it actually provides a sense of financial peace - as we know we have a plan, and we will make it happen.
Retiring at 51, with no pensions, just our own savings has caused us to be initially more conservative in our annual spending budget plan.
Therefore, if we had cash in envelope, we could spend. That included a personal spending account for each. We would commonly pool our spending money if we ran out of cash from a specific account.
If we had unexpected issues, we’d decide where to pull it out from other accounts.
It was very strict. But, we had a goal of getting to X dollars saved, and getting out of debt, etc
Now that we hit those, we have relaxed, a little. We’ll use debit card - track how spending and then adjust behavior or plan if going/went over. Perhaps cut vacation, change a project from contracted out to DIY, cut streaming or other discretionary items to compensate, etc.
We have not had the flip side yet (went under expenses)
We have a large, “capital” account for large projects that we can adjust as well.
We set an annual budget, and have a target, but will adjust with market conditions. We also have some longer term sinking fund accounts.
We actually feel better with these controls, it actually provides a sense of financial peace - as we know we have a plan, and we will make it happen.
Retiring at 51, with no pensions, just our own savings has caused us to be initially more conservative in our annual spending budget plan.