I have been tallying up what I spent in all of my categories for 2019. It's been very interesting. I felt like I had been very frugal at home, and then splurged on travel, taking a big cruise to Europe, and driving to Las Vegas a few times to visit friends. Still, I wasn't quite sure exactly what I had spent. I decided to examine my statements and start computing the totals.
I worked out a bare bones budget for what it could have cost me to live at the cottage last year, without any luxuries. (By this I mean things like fancy trips and restaurant meals.) It looks like it would have cost me just under $20,000. I'm pretty excited about that amount. I own my home, so I don't have to pay rent or a mortgage. I am very careful with my gas and electricity usage. The cottage is small, so it's easy to heat and cool. I turn off the lights when I'm not in the room, and layer clothing and blankets to save on heat. All of those things really make a difference.
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| peeking into an impressive courtyard on a bicycle tour of Mallorca |
Suze Orman mentioned on her podcast today that she wishes women would downsize when they are younger. If you live in a smaller home, drive one car that isn't leased or overpriced, and have inexpensive hobbies, life can be much less stressful and expensive. My car is twenty years old, and I combine my errands and try not to drive more than a few days a week. I have lots of soft hand knits that I have made over the years, and I wear them constantly. They are warm, and made of excellent quality wool, and they will last for decades. I take care of my shoes, and wear slippers and hand knit socks at home.
I ride my bike every day, and enjoy hiking in the warmer weather. My hobbies are cheap. Knitting from my fabulous stash, writing, blogging, reading library books, and cooking and baking keep me busy. I also buy groceries in bulk and grow different kinds of fruit. It all makes a difference.
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| Cannes, France on a rainy day from the tour bus window |
I make my own soap, and give that and various baked goods as gifts. The ingredients for the cookies, quick breads, and cakes that I give my neighbors are from my stockpile. I use cards from my mom's extensive stash, and I buy Christmas cards on sale. One box usually lasts me a couple of years.
Later I will add up the expenses that were luxuries. Travel was a biggie, but I paid cash for my trips, and did that carefully, in advance. I get a friends and family discount on NCL through my friend, and research the deals for several days. I still don't have television, and I don't miss it. Reading blogs is enjoyable, and I enjoy keeping in touch with everyone. Do you know what you spent last year? Did you stay within your budget? I hope you did.
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You did very well, Stephenie.
ReplyDeleteI can’t wait to pay off my mortgage, but I know realistically it will take at least 8 years, unless I win a lottery. 😀
I also looked at my expenses and savings. I’m pretty happy with the numbers, though I could have been more frugal with certain purchases. I was able to put 15% of my income towards retirement, and including travel and donations my total annual expenses were about 80%. Out of that, basic expenses were 62%. If I reduce travel and donations I can save more, but I don’t want to do that unless it’s absolutely necessary.
Let’s hope for another frugal year!
Who knows, Nil. Anything can happen. I wouldn't be surprised if you pay off your mortgage early. You have such frugal habits and are very disciplined. It sounds like you have achieved a nice balance with your spending and saving.
DeleteGood job Stephanie. I keep a running monthly tally so will do year end next week. We still have two houses so it's more than our "norm," but probably still less than what most couples live on. Now that I have a year's worth of records for this house, it will be easier to budget for the upcoming year.
ReplyDeleteYes, having two houses would increase your utilities and other expenses. I am learning that with the cabin. It does help to look back at last year to plan for next year.
DeleteExcellent post, Stephenie! The way I see it is, you live frugally on a regular basis in order to be able to afford the luxuries of travel, which you save for and pay in cash, in advance. You don't go into debt to pay for them.
ReplyDeleteI, too, know how much I spent in 2019. I have an annual budget that is higher than your bare-bones budget, but, it includes a few luxuries (such as paying for someone to do my garden, my daughter's flights home for visits, six months of unlimited acrobatics classes for her, and a warm house in the winter because I feel cold very easily). Even so, it is a budget I am comfortable with as it is based on less than 60% of my net retirement pay. :)
That's fantastic, Bless. You are very disciplined with your money. Today I am adding up the expenses for 2019 that weren't needs. It's eye opening. Like you said, though, if you pay cash, and have your emergency savings in place, it can work.
DeleteYou are a good example to follow! Smart, smart, smart! Suze should interview you. (I like her too!) My husband handles the expenses. We need to cut down and by "we" I know it is "me"! Andrea
ReplyDeleteHi Andrea, Thank you. I just sent Suze Orman an email and she answered! I was so excited. I study her carefully. She has really shaped my future with her teaching.
DeleteKnowing what money is coming in and what money is going out is very important. Somewhat unsurprising is that the routine bills for us are usually just about the same month after month. When we have guests, the utilities increase a bit, but rarely is there any shock when the bills are opened. We do splurge on travel and a few perks to make life enjoyable, but so far have not had to spend a penny from our savings.
ReplyDeleteThat's excellent, Anita. It sounds like you have disciplined habits at home. I am impressed that you haven't touched your savings.
DeleteIt sounds like you have a really good handle on your expenses which is so important. My husband does our accounts and I know that he would tell me if we were going over budget each month. We have one salary coming in for a family of four. We saved really hard before we had children and paid our mortgage off in four years, so we just have our bills now. We have made our house really economical to run which has meant some one off big payments to get it there, but I am sure we have now reduced our bills considerably as a result.
ReplyDeleteHi sustainablemum, That's fantastic that you paid your mortgage off in four years. Yes, I know what you mean about making your house economical to run. I find cooking and baking all of my meals, and making coffee at home has really helped me to save. I buy what's on sale at the grocery store. I learned that from Suze Orman on Oprah.
DeleteI live within my budget but last week reached the conclusion that I could improve things. This post has inspired me to sort this out. I can see the importance of monitoring in more detail and also recognising exactly what I spend on 'wants' rather than 'needs'. I think I will be surprised by how much more I can save. Thank you.
ReplyDeleteHi Eileen T, Thanks for reading and for commenting. It does help to know exactly how much you need to live, minus the extras. I read in a spiritual book once, that you can always get by on less, always. We all have certain things that we buy and do to make ourselves feel better.
DeleteI really enjoyed reading your post about your outgoings, I could probably take on board a thing or two (bulk buying for one). I keep a budget and I am quite disciplined, we have no personal debt other than the mortgage, which should be paid off in about 5 years. Our car is so old we won't be allowed to drive it into the low emission city centre next year.... we probably won't get a new one when it ceases to function. Living in a city with reasonable public transport makes this possible. We also cycle commute to work. Cars are expensive to maintain here. Our biggest luxury is having four children and they seem to get more expensive the older they get... We don't manage to save much but both have private workplace pension plans and free healthcare through the National Health System (although we pay for this through tax). We do go on holidays every year, which is important for us. New experiences are so valuable!
ReplyDeleteHi Christina, I am impressed that you cycle to work. I used to do that, too. My dad used to say, "Children are relatively cheap, until they turn eighteen." I think it's great for them to earn money. It builds confidence, self discipline, and work skills. It sounds like you are well prepared, and have a happy balance.
DeleteI think we could do with writing down all of our spending. I tend to be far more frugal than my hubby. He can be very wasteful which is really annoying when I try and keep our spending down to a minimum. I might eventually train him to do better... :-(
ReplyDeleteHi Cherie, I am going back to tracking every purchase. It's amazing how the incidentals can add up...
ReplyDeleteI do know how much I spent, but not category by category. A project I would like to take on this year is to divide my spending into two categories, needs and wants, and keep track of what I spend in each. I live very frugally compared to most, but it is still so easy for little luxuries to creep in. Those little amounts add up so fast!
ReplyDeleteI noticed in a past post on retirement that unlike many of your dancer friends you were able to get yourself into a strong position by owning your home, having savings etc...I would love a post on how you did that, and in particular the mindset/inspiration that made you choose a different path to most of your contemporaries.
Madeleine
Hi Madeleine, Thanks for reading and for commenting. My parents gave my brothers and I the money for a down payment on a house. They lived in a very expensive area. My house was much smaller, and in an area that was working class. I found a fixer upper in a down market. My cottage cost 1/10 of the homes my brothers bought.
DeleteSome people would say you were 'lucky' to receive the gift of a downpayment and that is why you got ahead. I would say you were wise to use the money so carefully. It must have made your parents happy to see how you used the money to look after yourself so well. And you were disciplined to get the mortgage paid off. I hope my kids will be as wise!
ReplyDeleteMadeleine
Thank you, Madeleine. My house cost far less than my brothers' down payments, so there was no mortgage. We also didn't pay a realtor, since I was renting the home at that time. My dad did tell me that he was impressed with how little money I am able to live on, while doing so much...all of the little savings habits add up over the year. A small home is much cheaper to heat and maintain. I think you know your kids and their spending habits. My older brother lost his house. It was too expensive. Becoming debt free, and staying that way made a huge difference for me.
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