Comments on: My Spending Weakness http://blog.canadian-dream-free-at-45.com/2008/11/25/my-spending-weakness/ Wed, 08 Feb 2012 17:31:40 +0000 hourly 1 http://wordpress.org/?v=3.1 By: steve http://blog.canadian-dream-free-at-45.com/2008/11/25/my-spending-weakness/comment-page-1/#comment-17084 steve Tue, 09 Dec 2008 07:19:31 +0000 http://blog.canadian-dream-free-at-45.com/?p=561#comment-17084 Well, what I would do is take a sober look and calculate how much money you will need at retirement to be comfortable. Then figure out how much you will have to save between now and, say, 65 years old to achieve that sum. Then compare it to what you're actually saving. There are two possibilities; a) If it matches the figure, go ahead and remodel. b) If you're not saving enough, stop spending any extra money except on very basic life needs until you can bring your monthly savings up and get on the right track. Eliminate as much spending as you can and increase your savings. If necessary and possible, increase your income. Considering your actual future needs can help give you a reason to stop certain spending habits. It could, in some cases, reassure you that it's ok to spend on those things. For me, I need $2777 per month in savings to meet my retirement goal. I'm not there and need to increase my income while keeping my expenses level. So as a result I am only spending on basics until I can increase my income. I suggest trying a similar exercise and see how it works for you. Well, what I would do is take a sober look and calculate how much money you will need at retirement to be comfortable. Then figure out how much you will have to save between now and, say, 65 years old to achieve that sum.

Then compare it to what you’re actually saving. There are two possibilities; a) If it matches the figure, go ahead and remodel. b) If you’re not saving enough, stop spending any extra money except on very basic life needs until you can bring your monthly savings up and get on the right track. Eliminate as much spending as you can and increase your savings. If necessary and possible, increase your income.

Considering your actual future needs can help give you a reason to stop certain spending habits. It could, in some cases, reassure you that it’s ok to spend on those things.

For me, I need $2777 per month in savings to meet my retirement goal. I’m not there and need to increase my income while keeping my expenses level. So as a result I am only spending on basics until I can increase my income.

I suggest trying a similar exercise and see how it works for you.

]]> By: PennySeeds.com http://blog.canadian-dream-free-at-45.com/2008/11/25/my-spending-weakness/comment-page-1/#comment-16740 PennySeeds.com Tue, 02 Dec 2008 15:58:50 +0000 http://blog.canadian-dream-free-at-45.com/?p=561#comment-16740 My mother's 'spending weakness' was little things that added up to BIG money. I mean hundreds, and thousands of dollars of credit card debt. "Oh, look! This is on sale!" I have since then made a life time resolution to never let that happen. I pay off my credit cards every month, and I'm careful with what I buy. I have the same ideas about Christmas presents, because honestly nobody needs more junk to collect dust around their house. Take the time to buy them something they actually want, and they will be far more greatful. I didn't say expensive - There's plenty things people would want that are not costly. Instead of buying 40 $5 things with trivial value I'll buy one $200 thing that I actually want. My mother’s ‘spending weakness’ was little things that added up to BIG money. I mean hundreds, and thousands of dollars of credit card debt.

“Oh, look! This is on sale!”

I have since then made a life time resolution to never let that happen. I pay off my credit cards every month, and I’m careful with what I buy.

I have the same ideas about Christmas presents, because honestly nobody needs more junk to collect dust around their house. Take the time to buy them something they actually want, and they will be far more greatful. I didn’t say expensive – There’s plenty things people would want that are not costly.

Instead of buying 40 $5 things with trivial value I’ll buy one $200 thing that I actually want.

]]> By: threadbndr (karla) http://blog.canadian-dream-free-at-45.com/2008/11/25/my-spending-weakness/comment-page-1/#comment-16683 threadbndr (karla) Mon, 01 Dec 2008 17:58:51 +0000 http://blog.canadian-dream-free-at-45.com/?p=561#comment-16683 I, too, have a 'house projects' line item in the budget - actually TWO (one for 'upgrades and repairs' and one for 'decorating and furniture'). It's a great way to get a handle on those Home Depot budget buster trips! Actually, I've seen it that you should budget 1-2% of your house value each year for repairs and maintenence. Good luck with your projects! I, too, have a ‘house projects’ line item in the budget – actually TWO (one for ‘upgrades and repairs’ and one for ‘decorating and furniture’).

It’s a great way to get a handle on those Home Depot budget buster trips! Actually, I’ve seen it that you should budget 1-2% of your house value each year for repairs and maintenence.

Good luck with your projects!

]]> By: Roger http://blog.canadian-dream-free-at-45.com/2008/11/25/my-spending-weakness/comment-page-1/#comment-16677 Roger Mon, 01 Dec 2008 16:15:16 +0000 http://blog.canadian-dream-free-at-45.com/?p=561#comment-16677 It seems to me that we have a common dream of a Zero footprint house. The first mistake we all make is to look at our power bill and see if we can replace that with electricity. If we analyse how we use the energy of that electricity, we find that most of that energy is in the form of low level THERMAL energy. We can use water at 85F to warm our floors to heat the house, and the major other use is hot water at 140F. Both of these account for 75% of our electrical use. It is way cheaper to produce this energy with thermal panels, or Evacuated tube thermal collectors. We still want to keep our self cleaning oven so it is way more practical to be connected to the grid. Just put the lighting and Thermal pumps or fans on battery backup, or PV. If in a rural area, have the water pump on backup. Than we have all the comforts at low cost, even during power failures. With careful thought, Solar energy is really quite inexpensive. Roger. It seems to me that we have a common dream of a Zero footprint house. The first mistake we all make is to look at our power bill and see if we can replace that with electricity.
If we analyse how we use the energy of that electricity, we find that most of that energy is in the form of low level THERMAL energy. We can use water at 85F to warm our floors to heat the house, and the major other use is hot water at 140F. Both of these account for 75% of our electrical use.
It is way cheaper to produce this energy with thermal panels, or Evacuated tube thermal collectors.
We still want to keep our self cleaning oven so it is way more practical to be connected to the grid. Just put the lighting and Thermal pumps or fans on battery backup, or PV. If in a rural area, have the water pump on backup. Than we have all the comforts at low cost, even during power failures.

With careful thought, Solar energy is really quite inexpensive.

Roger.

]]> By: Andy @ Retire at 40 http://blog.canadian-dream-free-at-45.com/2008/11/25/my-spending-weakness/comment-page-1/#comment-16662 Andy @ Retire at 40 Mon, 01 Dec 2008 11:28:48 +0000 http://blog.canadian-dream-free-at-45.com/?p=561#comment-16662 Great post .. you might want to read my article on <a href="http://retire-at-40.blogspot.com/2008/11/are-you-managing-your-lifestyle.html" rel="nofollow">Lifestyle Inflation</a> :-) My biggest weakness so far is having meals out. It's no-where near as often as it used to be but still I'm doing it too much. It seems that these days though, eating homemade food is just so much nicer ... and cheaper ... so I think it'll be an easy to break habit. Great post .. you might want to read my article on Lifestyle Inflation :-)

My biggest weakness so far is having meals out. It’s no-where near as often as it used to be but still I’m doing it too much. It seems that these days though, eating homemade food is just so much nicer … and cheaper … so I think it’ll be an easy to break habit.

]]> By: Carnival of Personal Finance, Cyber Monday 2008 Edition | Mighty Bargain Hunter http://blog.canadian-dream-free-at-45.com/2008/11/25/my-spending-weakness/comment-page-1/#comment-16653 Carnival of Personal Finance, Cyber Monday 2008 Edition | Mighty Bargain Hunter Mon, 01 Dec 2008 06:02:31 +0000 http://blog.canadian-dream-free-at-45.com/?p=561#comment-16653 [...] Canadian Dream: Free at 45 reveals his spending weakness. [...] [...] Canadian Dream: Free at 45 reveals his spending weakness. [...]

]]> By: Canadian Dream http://blog.canadian-dream-free-at-45.com/2008/11/25/my-spending-weakness/comment-page-1/#comment-16428 Canadian Dream Wed, 26 Nov 2008 11:50:21 +0000 http://blog.canadian-dream-free-at-45.com/?p=561#comment-16428 MGL, That's not a bad idea. Project approval and full spending plan before you get started. Jordan, It actually depends on what type of house you buy. If you go newer there is less to do. I buy older more run down ones because I know I'm going to want to change things anyway so why pay money to have paint colours and floors that I won't like. ERE, Actually we wrote up a reno list when we moved in. Then ranked the reno's by high, medium, low scale of what needed to be fixed and what we wanted to fix. We also put a rough cost to each item. So in two years we have mostly stuck to it. So just about everything I want to do to the house I still want to do after two years. Tim MGL,

That’s not a bad idea. Project approval and full spending plan before you get started.

Jordan,

It actually depends on what type of house you buy. If you go newer there is less to do. I buy older more run down ones because I know I’m going to want to change things anyway so why pay money to have paint colours and floors that I won’t like.

ERE,

Actually we wrote up a reno list when we moved in. Then ranked the reno’s by high, medium, low scale of what needed to be fixed and what we wanted to fix. We also put a rough cost to each item. So in two years we have mostly stuck to it. So just about everything I want to do to the house I still want to do after two years.

Tim

]]> By: Early Retirement Extreme http://blog.canadian-dream-free-at-45.com/2008/11/25/my-spending-weakness/comment-page-1/#comment-16416 Early Retirement Extreme Wed, 26 Nov 2008 06:51:16 +0000 http://blog.canadian-dream-free-at-45.com/?p=561#comment-16416 I don't buy it, but put it on a list. I review the list after at least a month. It is generally classified as "soon", "late" and "maybe". If I still want it after a month (we're talking the soon list here), I start thinking about buying it and doing research. If not, I delete it. Some things can sit a long time. It sometimes happens that someone will freecycle something on my list and then I get it for free. But the "waiting-list" method rejects almost all of my unneeded purchases viz. after a month I realize that I don't really want it anyway. I don’t buy it, but put it on a list. I review the list after at least a month. It is generally classified as “soon”, “late” and “maybe”. If I still want it after a month (we’re talking the soon list here), I start thinking about buying it and doing research. If not, I delete it. Some things can sit a long time. It sometimes happens that someone will freecycle something on my list and then I get it for free.

But the “waiting-list” method rejects almost all of my unneeded purchases viz. after a month I realize that I don’t really want it anyway.

]]> By: Jordan Clark http://blog.canadian-dream-free-at-45.com/2008/11/25/my-spending-weakness/comment-page-1/#comment-16393 Jordan Clark Wed, 26 Nov 2008 00:23:58 +0000 http://blog.canadian-dream-free-at-45.com/?p=561#comment-16393 I have a feeling when we become home owners we will have the same issue of home related expenses, I'm not looking forward to it. I think it will be a fight between my wife wanting to buy and upgrade too much and myself trying to be too cheap and not want to constantly pour money into the place. The only way we will agree is if we come up with an annual budget. Our spending categories aren't in separate accounts, but having the cash allocated each month we will know when we can 'afford' to buy or do something, and then just pull it out of whichever account as needed. I have a feeling when we become home owners we will have the same issue of home related expenses, I’m not looking forward to it. I think it will be a fight between my wife wanting to buy and upgrade too much and myself trying to be too cheap and not want to constantly pour money into the place.

The only way we will agree is if we come up with an annual budget. Our spending categories aren’t in separate accounts, but having the cash allocated each month we will know when we can ‘afford’ to buy or do something, and then just pull it out of whichever account as needed.

]]> By: MoneyGrubbingLawyer http://blog.canadian-dream-free-at-45.com/2008/11/25/my-spending-weakness/comment-page-1/#comment-16378 MoneyGrubbingLawyer Tue, 25 Nov 2008 19:22:24 +0000 http://blog.canadian-dream-free-at-45.com/?p=561#comment-16378 I think my weakness would be the same as yours- home renos! It's a budget line item for me. My wife (a project engineer)has tried to reign me in a little by requiring a full budget for approval before I start any new project. I think my weakness would be the same as yours- home renos! It’s a budget line item for me. My wife (a project engineer)has tried to reign me in a little by requiring a full budget for approval before I start any new project.

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