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Sep 11, 2018    |       6 comments

Busted Budget???

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With the chaos of the move and settling in to the new place, I kind of let my budget get away from me this month.

I’ve found that, in the past, I do BEST when I have a concrete budget on paper before the month begins. Then I can reference it and know, “Oh, I’ve still got $X left for groceries” (or clothes, or household, or whatever else).

But when all my office stuff was in boxes and I was busy trying to unpack and get situated…..I just kind of “bought.” It wasn’t like I was out buying with reckless abandon or anything. I was still trying to be frugal and mindful to only buy basic necessities and not a lot of extras.

Even so, I finally got around to balancing the budget and….it’s not so pretty.

In my “household” category (which was only budgeted for $100), I’ve already spent $370. YIKES! I swear, I didn’t even realize the number was that high! Again, it’s not like I was out buying anything crazy. I needed a couple new waste baskets (I get the cheap $1 ones for the bedrooms, but I got a $30 for the kitchen), shelf liner for the kitchen cupboards,  a small $20 tool kit, some supplies to connect the washer and dryer to the water and gas lines (my Dad generously gifted the washer and dryer themselves, but I still needed some tubing and hoses, etc.) You get the idea – just your basic run of the mill we-just-moved type of stuff.

The problem is the budget was already stretched thin. I’ve tried to reallocate some funds – reducing the funds that had been set aside for exercise (races, yoga) and clothing and moving those funds to the housing line item of the budget. But even with all my tinkering, I’m still coming up $81 over budget. It could be worse, but I’m still pretty disappointed. I was determined to make the budget BALANCED, so I’m not too happy that my very first month living alone it looks like may be a failure in that regard.

I’m going to try to see if I can make up the money. I do still have $106 left in my grocery budget. It would be tough to make that stretch, seeing as its only the 11th so we’ve still got 2 and a half weeks left of the month. But maybe if I can squeeze $50 from there (leaving me with $56 for the rest of the month), then I’ll only have a deficit of $31. And then I can try to squeeze that from somewhere else. I mean, I’m really grappling with pennies over here, but I’m pretty determined to somehow make this work.

I’ve already pre-made my entire October budget so the budget is completely balanced AND includes some savings for an EF, semi-annual fees, and care/repair maintenance. So it’s not impossible to have a balanced budget (and even put some aside in savings), but it definitely will take some intentionality and a close eye on every outgoing penny. I’m going to give myself a little grace given that I literally moved on September 1st (it would’ve been tough to keep the household budget to $100 given the circumstances), but I’m bound and determined to try everything within my power to get it at least to even for this month, and to have some savings stocked away for next month.

What do you do if you need to make a quick $80 (and/or save it from another category of spending)? Would you sell some plasma? Sell goods on Facebook Marketplace? Or find ways to cut back from other budget categories?

Sep 11, 2018    |       3 comments

Will You Still Need Life Insurance After You Retire?

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One thing to keep in mind, is that just because you have retired, this does not mean that you no longer need your life insurance policy. According to experts at companies like Colonial Penn, there are many reasons why you need to keep your life insurance policy intact. For example, perhaps your retirement investments did not produce as expected, maybe you have been forced into early retirement, or perhaps you are trying to make sure you have enough coverage for your funeral expenses. With more and more couples waiting to have children these days, maybe you still have kids at home.  In addition, having a mortgage, other debts, or an elderly loved one at home counting on you, there still can be a need for that extra support. In other words, if you have loved ones, owe money, or anyone else who depends on you financially, these things are not going to disappear the moment you retire.

Will You Still Need the Same Coverage?

If the original reason for buying life insurance was to replace your income and protect your family by increasing your investments, you may no longer need it. But, then again, if you have your money tied up in investments where taxes must be paid when your survivors close the accounts, inheritance taxes that must be paid, and many other expenses. These might include probate and administration costs, perhaps you have debts or a mortgage that must be paid off. You need to make sure your life insurance coverage continues to be enough to take care of these expenses and still leaves your surviving family in a financially stable position.

Can You Still Buy Life Insurance if You Have Already Retired?

Just because you have reached retirement age, this doesn’t mean you can no longer buy life insurance. Consider this, your estate is worth more than the current amount of your federal tax exemption, leaving your family with taxes that must be paid. By investing in a life insurance policy, you provide your family with a way to pay these taxes and more. The same applies if you took a cash payout on your retirement that left nothing in the way of a survivorship provision, taking out a life insurance policy will help ensure your spouse is properly taking care of in the event of your death. Just keep in mind that life insurance premiums increase as you get older, so while you are able to purchase a plan after you have reached retirement age, the monthly payments could be significant.

Anything Else Might be Missing?

Most people don’t fully understand the benefits of having a life insurance policy in place. For example, you have been diagnosed with a terminal illness, but you don’t have enough money in your savings account to cover the medical and non-medical bills. If you choose an “accelerated death benefit” provision, you should be able to contact your insurance company and withdraw money from your policy to help cover your expenses and help you avoid having to file for bankruptcy protection.  Many companies are now offering life insurance with living benefits.The good news? Investing in a permanent life insurance policy pays better rates than many CDs and savings accounts. It represents a very safe way to invest your money with zero risk and at the same time assuring your family through a very difficult time when it’s needed most.

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