2017 was certainly the “year of me”. My expenses for 2017 were definitely higher than I would like and I attribute this mostly to spending a lot of time and money on improving myself. Yes Financial Independence will bring with it freedom but that doesn’t necessarily mean happiness. I know that I need to find happiness in the now, today, and not wait for some future date so I have been working on improving myself in more ways than one over the past year. Overall I would say this has been a success as I am becoming more comfortable with who I am and I find that in general I am pretty happy.
All of this improvement has come at a cost, and these costs have certainly added up. My expenses in the personal care category alone more than doubled. Ouch! My hope is that many of these costs will not continue long term but I suspect that some will. Here are some of the things I have spent money on this year and why. Continue reading “The Year of Me”→
I am going to be honest, July was a brutal month when I look at my spending and my resulting savings rate. Twice per month I automatically transfer $250 to our savings account. This helps to make sure that no matter what I am putting some money away. At the end of the month I will transfer any additional money over into savings. Well when the end of July rolled around I had no money left to transfer. My heart sank a little as I looked at my dismal savings rate of only 26%. Last year I saved an average of 42% of my take home pay and yet here I was saving only 26% of a much higher amount. WTH? Has lifestyle inflation really gotten the better of me?
When I got my promotion last fall initially thought I would be save almost 100% of of my raise which would amount to a nice little sum of money by the years end. Yet it appears that lifestyle inflation has hit me a little as I am not saving as much as I should/could be.
Since starting our journey to financial independence I have really tried to buckle down on non essential expenses. I may have gone a little too extreme in some respects as I do of course still need to enjoy life. A few weeks ago I posted on the Financial Independence boards of Reddit posing the question of what are others planning on retiring to. I have this slight fear that I will be bored once I no longer have a full time job. Some people found this question strange but being that I have a Type A personality who likes to have things neatly planned, this was an important question to me.
One of the things that I realized after reading all of the posts was that I had actually cut out some hobbies because they cost money. One in particular is sewing. I love being able to create things and sewing is one great outlet for this. So this past month I decided I would loosen the purse strings a little and delve into some sewing projects. I found a few free skirt patterns online that I liked as well as wanting to reuse a pattern for a dress I made 7 years ago. With coupons in hand I headed over to Joann Fabrics to find some fabrics. They had a few bins with fabrics up to 70% off so that is where I started. I found two fabrics that would work well for two of the skirt patterns and on another sale rack I found two stretchy knit fabrics which were also on sale. One I planned to make a colorful mini skirt and the other I planned for the dress pattern I have used before.
I recently had a bit of a scare with my beloved 2007 Honda Fit. First let me start off by saying I love my car. I bought it when it was only a year old and never regretted it. It has been so trustworthy and even though it has 128,000 miles on it I have had very few problems. That was until we started to notice water INSIDE the car. Yup, that is not supposed to happen. And it has been a rainy spring. So when we kept noticing water collecting in the rear passenger foot wells I called to make an appointment.
When it comes to water related issues, whether it is with a car or even a house, it can sometime be hard to diagnose. This is due to the fact that water runs. So you could have a problem in one spot but the water runs to a different place making it hard to find the actual culprit.
Initially we thought the water issue was due to the after market roof rack we had purchased which had damaged the seal at the top of the doors. It turned out to be a good thing that I had to wait over a week for my appointment as one day when driving around Mr. SFF noticed a sloshing sound. Low and behold after a little searching, he realized there was water the in rear, hiding in the compartment with the spare tire. We then deduced that it was more likely a leak in the rear hatch and that water had sloshed into the rear passenger foot wells when going down a hill. We removed the spare tire, tire iron and jack and pumped out this water and then had another week to evaluate. I guess it was a good thing that it was rainy all week as we we able to note which side the water was at least running from. We didn’t know exactly where it originated but we had at the very least narrowed things down a little.
I will admit that I get excited about this post and, and more specifically the data it contains, every year. This is the one time where I really get to look at all of our information, jointly as a couple, rather than just my income and savings. As Mr. SFF and I keep separate checking accounts and credit cards so I don’t see the whole picture until I make him sit down and give me all of his data. I try to get an update mid-year just to see now we are tracking but it is year end numbers that I like to see. Yes, I know how much he has saved as he moves money periodically to the joint checking and then I move the money to our investment accounts, but I don’t how much he has made and if this is a large percentage of his take home income or not. Since all of our benefits and 401(k) savings comes out of my paycheck Mr. SFF’s savings makes the biggest impact on our overall savings goal. Continue reading “2016 Savings Review”→
Towards the beginning of the year I decided to set a goal of not spending any money on clothing. I didn’t set this goal on the first of the year so I did spend a whopping $3.49 on a new skirt in January but after that purchase I vowed not to purchase anything else. I didn’t actual post about the goal until the middle of the year but I had the goal in my head.
Now to be clear, I have never been a huge spender on clothing but it can be surprising how one little purchase here and there can add up which is why I set the goal. Plus, I have enough clothes so this goal has really shown me the true different between a “want” and a “need”.
Although winter is already in full force here, I figured I would do a little summary of our gardens this year and how we did. We have a pretty small yard and only two raised beds measuring 2×6 and 2×8 so we are pretty limited on the garden real estate but we do try to make the most of it. Over the past 5 years we have narrowed down our the vegetables that we grow to one that we have had success with and of course, ones that we enjoy. This past summer we planted 3 varieties of kale, rainbow chard, carrots, green beans, and unsuccessful cauliflower and cucumbers. Continue reading “The Wonders of Gardening”→
Wow, I have been so busy and preoccupied with life that I am way behind on my post. There is nothing really notable about this past month’s food budget other than going out socially a few times so our dining out costs were slightly higher but our general food costs were in control and within our normal range.
One thing we have started doing a couple of months ago was making our own pizzas instead of ordering out. I am not talking all the way from scratch as that is too much work but at least putting our own together. No matter which route we go with this it is not cheap as I am gluten free but I have found it is slightly less expensive if we make our own and we have decided we actually prefer our homemade ones. There happens to a company, Against The Grain, that makes AMAZING gluten free items. When we are in the mood for a pizza night I usually buy the three cheese pizza (in the freezer section) and then we put on our own toppings. Our recent favorite is adding chorizo, red peppers, and some kale or Swiss chard from our garden. Amazingly yummy and making my mouth water as I type this. Last time I made one I itemized out the costs just to see how much it was saving us. Continue reading “Monthly Food Update #8”→
Normally receiving a letter from the tax man, either the feds or the state, is not a good thing. Did we file our taxes incorrectly? Do we owe them money? The list of questions as I opened that envelope were endless. But as I read the letter from the state tax man it had great news: our property taxes were going down! Woot, woot! I know, I almost couldn’t contain my excitement!
Our little state has a homestead exemption where they offer tax relief for households making lower incomes. When Mr. SFF was fully employed we didn’t qualify but part of the way through 2014 he was laid off and started working for himself making less money (but still plenty for our frugal household). 2015 was the first full year of his self-employment and so our total adjusted gross income was much less so low and behold, we now qualify! We file the form every year and I usually don’t even think twice about it so when I received the letter from the state department of taxes I was pleasantly surprised. We are certainly going to enjoy the $1,244 tax savings this year and likely just put this money towards our goals.
But with this came the bigger revelation, our income will be even lower when we reach FIRE and are only working part-time meaning this credit should be even larger. This is huge news! Continue reading “Hello Mr. Tax Man!”→
The SFF household has been busy so this post is slightly delayed but we finally had a chance to sit down and review our total income/expense numbers for the first half of the year. I have been anxiously awaiting this info as we keep our individual income and expense money separate so I was a little in the dark as to how we were doing as a couple. But I am happy to report that we have increased our savings rate from last year!
In 2015 we saved 28% of our joint net income. This was a little lower than I had wanted but we have both made an effort to decrease our spending even more and Mr. SFF has been transferring money to our joint accounts more consistently resulting in a higher savings rate. Based on my calculations we have saved approximately 46% of our net income so far this year. Woohoo! I am pretty psyched about this as it is a drastic increase from last year and we both still have buffers of extra money in our individual accounts which is not included in this number.Continue reading “Mid-Year Savings Update”→