Not getting ahead

[elessar78]

OR probably not as fast as I would like. We save into our retirement accounts. We save into cash savings a nominal amount that we just forget about and hopefully in many years will amount to something very substantial.

But every month it seems like we just run into stuff that is outside of our budget. Sure, we have the surplus funds to take care of it (mainly because we keep our overhead low and keep trying to cut it). This is becoming the norm for us—expect something in the ballpark of a few hundred each month: medical bills (for four healthy people nonetheless), repairs to home or car, social obligations (wedding gifts etc), and any other myriad of forms "Murphy" takes.

Just venting. For a change, we'd like to do something fun with our surplus income.

[bjl584]

How much are you saving each month?

Just a thought, but maybe you are saving too much for the future and forgetting to enjoy the here and now.

[disneysteve]

But every month it seems like we just run into stuff that is outside of our budget

a few hundred each month: medical bills (for four healthy people nonetheless), repairs to home or car, social obligations (wedding gifts etc), and any other myriad of forms "Murphy" takes.

This sounds like a budget issue. Things like medical bills, auto repairs, and gifts shouldn't be "outside" of your budget. They should be included in your budget. They are all things that you know are going to happen. They aren't surprises. They aren't emergencies. So you can plan ahead for them.

Look back over the past year and come up with an average monthly amount to set aside for those expenses and add that to your budget. Some months you may spend more, some months less, some months none at all, but you'll be ready when those costs hit.

[elessar78]

We were doing that (saving too much) so I adjusted the budget recently. We probably allow ourselves a few luxuries, we're not hardcore frugal (though I wish we were closer to that end of the spectrum).

I'll get exact numbers later. What number do you want? Just into "cash" savings? Or in total with our retirement accounts included?

[elessar78]

This sounds like a budget issue. Things like medical bills, auto repairs, and gifts shouldn't be "outside" of your budget. They should be included in your budget. They are all things that you know are going to happen. They aren't surprises. They aren't emergencies. So you can plan ahead for them.

Look back over the past year and come up with an average monthly amount to set aside for those expenses and add that to your budget. Some months you may spend more, some months less, some months none at all, but you'll be ready when those costs hit.

Thanks. Beginning to realize that. I think that's part of the frustration, as we were saving a lot but then having to pull out a lot of savings to cover these costs. So yeah, I think a) need to accept these as normal part of life and b)set budget for it accordingly.

[disneysteve]

maybe you are saving too much for the future

That's another issue. What percentage of income is going to savings?

[LivingAlmostLarge]

I feel the same. My DH has agreed to look at our budget and make it a little more loose. He's finally started being a little more reasonable. We save 10% to ESPP, then 15% to 401k, then ROTH and all bonuses are saved.

My DH and I recently argued because he wanted use to save more and I pointed out the 10% to ESPP but he wants more savings. According to our taxes we are currently living on 25% of our gross income. The rest is being saved or taxes. I don't think I'm being unreasonable so my DH is getting better.

[disneysteve]

I feel the same. My DH has agreed to look at our budget and make it a little more loose. He's finally started being a little more reasonable. We save 10% to ESPP, then 15% to 401k, then ROTH and all bonuses are saved.

My DH and I recently argued because he wanted use to save more and I pointed out the 10% to ESPP but he wants more savings. According to our taxes we are currently living on 25% of our gross income. The rest is being saved or taxes. I don't think I'm being unreasonable so my DH is getting better.

Glad to hear he's coming around. Although we don't often talk about this problem, there is such a thing as saving too much.

[keen3105]

OR probably not as fast as I would like. We save into our retirement accounts. We save into cash savings a nominal amount that we just forget about and hopefully in many years will amount to something very substantial.

But every month it seems like we just run into stuff that is outside of our budget. Sure, we have the surplus funds to take care of it (mainly because we keep our overhead low and keep trying to cut it). This is becoming the norm for us—expect something in the ballpark of a few hundred each month: medical bills (for four healthy people nonetheless), repairs to home or car, social obligations (wedding gifts etc), and any other myriad of forms "Murphy" takes.

Just venting. For a change, we'd like to do something fun with our surplus income.

This sounds to me like, you may need a side job like waiting tables for 4 hours 3 days a week, I made 150$ a night doing that, that's 450$ extra week right there. and only 4 hours after your day job

[TBH]

I have this problem too. It seems like there are so many unexpected expenses. For example, I just had to renew my driver's license. It only cost $35, but I only have to do it every four years so it's not in the budget. It sometimes seen like my budget is one bit MISCELLANEOUS category.

I don't have a better solution than what Steve said, to look back over the last year and make a monthly average for things like gifts, semi-regular expenses, etc.

I guess my point is I feel your pain.

[disneysteve]

I have this problem too. It seems like there are so many unexpected expenses. For example, I just had to renew my driver's license. It only cost $35, but I only have to do it every four years so it's not in the budget. It sometimes seen like my budget is one bit MISCELLANEOUS category.

Well not everything needs to be itemized in the budget. There is something to be said for that Miscellaneous category. A $35 expense that happens once every 4 years fits there. I don't think you need to budget $0.73/month for that.

I just think a lot of people feel their budget is a failure when the problem is that they forgot to include things in the budget that they knew were going to happen - auto repairs, medical bills, gifts, work-related expenses, etc.

[hamchan]

That's exactly why we have one big "pool" for all discretionary expenses. I prefer having the flexibility. If I want to eat out six times in one month and have beans and rice or sandwiches for the rest of the month, it's not a big deal.

This month I got a new job and spent $128 at the thrift store on clothes that meet the new dress code, and replacing some worn out things. My husband also needed a $50 book for a class that he was not aware was not included in the cost of the class itself. If we were still doing our budget the usual way those expenses would have broke us. But instead we're just going through the kitchen cabinets and freezer and using up as much as we can so we don't have to spend as much on food for the rest of the month and it's no big deal. If I had to take money out of the food envelope to pay for those other things it would somehow stress me out so much more.

[dojo]

Budgets are not perfect and 'stuff' will happen. This is why it's good to still keep track of expenses/budget (you can get a clear view over what usually happens monthly) and have a 'cushion' set aside. For us this month's budget went over almost 80%, just because we had to deal with some stuff we didn't plan. Sure, I was pretty angry, but we managed it with no fuss, since we do have money set aside. Next month (god willingly) will be less of a burden, so we'll be able to replenish our 'cushion' and get back to our regular savings habit.

[Augustine]

This is becoming the norm for us...

I think you may need to adjust your budget to make it a little more realistic.

Unless you are taking two steps forward and three steps back, I wouldn't say you are not getting ahead...