I realized that my tire thread is less about tires, and more about figuring out how to budget generally.
My financial situation has changed drastically in the last few months. Also, I now have a financial advisor who has actually given me a monthly budget to accomplish my retirement goals. In a practical sense, this means I am attempting to actually stick to a budget for the first time in my life. (Rather than, at best, ensuring that my checking account doesn't fall too low.) My budget is far from draconian, but it involves spending a lot less than I once did, and paying attention to what things cost.
My aunt, who is in a similar position due to retirement, gave me a basic spreadsheet that I've embellished. It tracks just enough to see if I'm overspending, without keeping track of so many details that I start agonizing. (I don't really want to track if I spent this much on entertainment vs food - all I care about is how much I'm spending overall. And when I do try to track things at a fine grain detail, like budget categories, I tend to fall into decision paralysis. Is fancy cheese entertainment or groceries? Where does it end?)
So, anyway, I have this spreadsheet. Everything that happens on a periodic basis is broken down into monthly payments - frex, car insurance is actually paid twice a year, but I take a chunk out of my budget every month to account for it. I have a section for "KTLO" (necessary) expenses. A section for optional, but regular, expenses (Pandora, Hulu, etc). So I subtract those mandatory and periodic payments from my monthly budget, and that's what's left to spend.
It's dead simple, but it makes sense to me. I don't have to put any thought into entering expenses, like choosing a category. It really makes me pay attention to the cost of things.
I realize there are tools like Mint to manage this sort of thing, but it's overly complex and gives me choices that lead to paralysis (is massage health or entertainment? Is wine food or self care?? How do I account for a single bill that represents multiple categories??? *runs screaming*) Three columns (what, how much, and when) are easy to enter and review.
How do you account for those large "known unknowns" in your budget? Like: a new roof. A new car, or major maintenance. A ski trip. What tricks do you use to keep yourself on track?
I'm starting this thread with the hope that it might help others, so any suggestion is welcome, even if I'm already doing it.
My financial situation has changed drastically in the last few months. Also, I now have a financial advisor who has actually given me a monthly budget to accomplish my retirement goals. In a practical sense, this means I am attempting to actually stick to a budget for the first time in my life. (Rather than, at best, ensuring that my checking account doesn't fall too low.) My budget is far from draconian, but it involves spending a lot less than I once did, and paying attention to what things cost.
My aunt, who is in a similar position due to retirement, gave me a basic spreadsheet that I've embellished. It tracks just enough to see if I'm overspending, without keeping track of so many details that I start agonizing. (I don't really want to track if I spent this much on entertainment vs food - all I care about is how much I'm spending overall. And when I do try to track things at a fine grain detail, like budget categories, I tend to fall into decision paralysis. Is fancy cheese entertainment or groceries? Where does it end?)
So, anyway, I have this spreadsheet. Everything that happens on a periodic basis is broken down into monthly payments - frex, car insurance is actually paid twice a year, but I take a chunk out of my budget every month to account for it. I have a section for "KTLO" (necessary) expenses. A section for optional, but regular, expenses (Pandora, Hulu, etc). So I subtract those mandatory and periodic payments from my monthly budget, and that's what's left to spend.
It's dead simple, but it makes sense to me. I don't have to put any thought into entering expenses, like choosing a category. It really makes me pay attention to the cost of things.
I realize there are tools like Mint to manage this sort of thing, but it's overly complex and gives me choices that lead to paralysis (is massage health or entertainment? Is wine food or self care?? How do I account for a single bill that represents multiple categories??? *runs screaming*) Three columns (what, how much, and when) are easy to enter and review.
How do you account for those large "known unknowns" in your budget? Like: a new roof. A new car, or major maintenance. A ski trip. What tricks do you use to keep yourself on track?
I'm starting this thread with the hope that it might help others, so any suggestion is welcome, even if I'm already doing it.