I don’t like this already! We have a plan . . I know it’s a good id ea but I don’t have to like it, right? We’ve decided that we’re going to pretend like we’re retired and only have pension funds coming in. We’re not really retired yet but we’re going to say all we have is pension $$ and we’re not getting social security or withdrawing from the 401K.
We’ve never really had a budget (who knew that?). <G> This week, we sat down and did a budget. It was kind of a “worst case scenario budget” . . no extra spending. We’re challenging ourselves to see if we can do it. I know we can because we both have everything we need or want.
But, within the last five minutes, the Thai restaurant I like put some new pictures of some dishes she had made so I wanted Thai food. I called Vince:
Me: I know this isn’t part of the plan but Jolene has some special dishes tonight.
Vince: I knew you couldn’t do this!
Me: I can. OK . . we’re not doing it. Forget that I called.
Vince: It really doesn’t start til January 1 so we can do it.
Me: No, we’re not doing it.
Then . . I clicked on Ravelry and Miss Babs has some kits that I want. I looked at them but never got so far as putting them in my cart.
Vince thinks it’s going to take “X” amount of money for us to live. I think we can live on half that amount and the budget we did, which even includes getting Dish Network which we haven’t done yet, is about 1/3 what he thinks it takes.
We aren’t going to have to scrimp and do without during retirement but I want to prove to him that we can live on way less than what we’ve been spending but here in the last 20 minutes . . I’ve decided I don’t like this idea at all! 🙂
Seriously, it’s going to be kinda fun to try the budget, especially since it isn’t really binding but I do have to be committed to do it if I expect him to do it. OK . . I’ll stop looking at Miss Babs’ posts on Ravelry and Jolene’s pictures on Facebook.
Sherrill Pecere says
I think you should do the Thai tonight! HA
Linda in NE says
Does Vince realize he’ll have to cut way back on his shopping activities? It can’t just all be on you.
Debbie says
Ah…struck a nerve with this post. We are 3 years into early retirement. It is okay now but that first year was hell. I did not go to a quilt shop. Seriously…no purchased fabric because you know, “we’re on a budget”. 2028…I am going for my Social Security no matter what anyone says. It is a huge adjustment. I guess we should have practiced first like you and Vince are doing. We sold our house in New Hampshire and moved to Florida, too. Did I say it was a hell of an adjustment? ?
Debbie says
Sorry…that is 2018 that I will go for SS not 2028!!!!
The Eclectic Abuela says
I thought that was some long-time planning!
The Eclectic Abuela says
This is a really good idea–real-life planning for real life! 🙂
Pat says
Really good ideal to practice for retirement. My husband retired early and the one thing we did think about enough for health insurance. He worked for the state and they are self insured. When we moved out of state to help with his mother it caused a problem. He when back to work for insurance coverage.
Gloria says
I rarely reply to something like this and you didn’t ask for my advice but…. medical insurance is very costly so be prepared for that expense and my initial misc budget had to be doubled! Good idea to begin have trial run!
Susan says
Not looking is definitely your best bet. =) It’s only the first few hundred times you say no to yourself that it hurts. After that, you’re kind of numb. LOL
Sandy says
I hope your budget has a “play money” category for each of you that you can each spend as you wish!
Dorothy Matheson says
I retired early and my husband was already retired. We did have to scrimp and save and not buy.
I do have insurance through my retirement.
We managed and even saved some money. Yes it wa hard to do with out. But we managed not to purchase and purchase.
We did have to take our of my IRA the year I had major surgery. It did not hurt us that much for long term.
Now I am on social secriety it is a bit easier. I can now buy fabric for quilting my hobby and some new clothing.
We actually have saved some major amount of money over the last two years into a savings account. Makes us feel easier to have it.
You can do it but you have to do with out the instant gradification of I want it now.
Nancy says
Two years ago, I started coming up with our budget for retirement. We started to practice and then made the decision to downsize to a one level house. The move thru my budget into total disarray. Especially since the old house did not sell right away. Then we had two houses to maintain. The old house is now sold the new house totally paid for and I am retiring today. I know that I need to not look at instagram or fabric sales in the near future. My goal this year is to finish UFO’s and sew with the fabric I have. I already have a fabric stash that will last beyond my life expectancy. As Bonnie Hunter calls it I have a Stable Stash.
Kathleen says
My husband is an engineer and altho all those details bore me to tears, I’m glad he stays on top of things. One thing that really helped was making a spreadsheet with all the expenditures and forecasting into the future. He was very conservative – made the inflation percent large, allowed a good amount for hobbies, etc. Then looked into the future. We still had money when we were 100, so it felt ok. It’s scary when the paycheck stops, but just knowing the pension will last awhile and then investments should take us the rest of the way. We don’t feel that we owe our kids an inheritance, altho we’d love to leave them some, but won’t give up things for that reason. Now this doesn’t mean we can buy a yacht or take a world tour, but we’re content.
Lee Young says
In the last few years, hubs was laid off twice and switched jobs in the middle when he was employed. He is currently employed. We’re in that retirement-age bracket but he has a couple more years to go. With his first lay-off, it was 9 months before he was re-employed, so we had a good idea of where we’d be given our financial situation. Adequate but certainly not lavish, and always keeping an eye on every purchase and expense. I use Quicken for every item, perhaps far too detailed with my categories, but I like to see where the money is being spent – hubs has been “trained” to save every receipt though it seems plenty slip by both of us for some reason. We have a son just starting college this coming spring, and that’s another reason for hubs to keep working. I’ve even considered getting a part-time job, or working as a temp through an agency. When I first started tracking my expenses back in the late 80’s, it was very much a surprise where I was spending my money – it’s funny that we don’t always recognize where our funds go until we do track them. Back then, I had the green accounting pads – the wide one – was it 10-columns, or more? can’t remember, but it worked and opened my eyes to change bad habits in spending. Life is an adventure.