Planning, planning
By TheRealDawn
@dawnald (85130)
Shingle Springs, California
April 3, 2013 11:13am CST
Well here I am, on my own, 11 years from retirement, 3 kids still in school, trying to do some financial planning.
Yeah, yeah, I should have done it 9 months ago.
I wasn't totally lazy. I paid off my car, and applied for my pension (from a former employer), so I have a little less money going out each month, and a little more coming in. I also bug R every month to get his life ins payment OUT of the account he's putting the "child support" into. It may happen in this life.
I also sort of put a budget together. Really, it wasn't a budget so much as:
1. How much am I making
2. How much am I spending
I've known for a while that I'm spending more than I am making, but I really thought that once the car payment was gone, and the pension started, that I'd be more or less even. Not quite. Darn it.
I do still have most of my severance money, but I want to put some of it into my IRA, and most of the rest into stocks, and keep a little bit for emergencies. Emergencies should not be "oops I'm spending too much", but really emergencies. Also, as the stocks go up, I can pay a little out to cover things like vacations, etc. I also want to start doing surveys again for the little bit of extra cash i get.
But, dang it, I still have to figure out where to cut. My big concern is that in September I no longer have my medical and dental benefits paid by my former employer, and if I have to start paying for them, I will really be in the hole. R can take the kids on if necessary, so that is a help.
Anyway there are 2 things on my mind.
1. Figure out what expenses are mandatory, and figure out what's left over. Then look at everything else, and see what can be cut. I really don't want to cut Cary's karate or his clarinet rental (maybe I should just buy the boy one, after 3 years renting I probably could have). I already told the twins they were going to have to start taking their lunches more often. Bla, no fun.
2. The other thing is my job. It's a contract to hire position. No benefits, well there are, but really expensive, and if I don't work, I don't get paid. If i can get them to hire me, the benefits are subsidized, and I get paid time off. So I guess I had better have a talk with my manager about when or if there is actually a possibility of me getting hired. And I might want to start looking around if the answer is no. Bah, I like it here.
I was spoiled before. I liked being spoiled. But it's time to start getting practical.
7 people like this
18 responses
@katsmeow1213 (28717)
• United States
3 Apr 13
When my kids decided to play clarinet last year, I bought my daughter one for $50 on Craigslist. This year my son is playing the trumpet, and he's borrowing one from the school so I didn't have to pay for it.
How are R's finances.. can he spring for the karate payments or clarinet rental to free things up for you a bit?
3 people like this
@dawnald (85130)
• Shingle Springs, California
3 Apr 13
he's ok for now (living with his mom), but he is saving up for a house, and I know that if he finds one he will have no extra money whatsoever. If I can get a decent clarinet for cheap, I think i will do that for a start....
1 person likes this
@BarBaraPrz (45437)
• St. Catharines, Ontario
3 Apr 13
Well, if you need to make a little extra, you can always scoop poop for other people... ain't that right, Ricki? 
Seriously though, you've taken the first step by having a look at your finances. 
Here's to finding a solution.
Seriously though, you've taken the first step by having a look at your finances. Here's to finding a solution.
2 people like this
@BarBaraPrz (45437)
• St. Catharines, Ontario
3 Apr 13
Yeah, but do you get paid for it?
2 people like this
@celticeagle (158695)
• Boise, Idaho
3 Apr 13
Getting down to the basics. Such fun, huh? I worked at my last job for five years and left it with a severance check, gift for service and a pension for life. I didn't think that was too bad for five years. It was a complex job and I think I did it well. It sounds like you have a lot of choices to make. I would list all the priorities and list them as to importance. Enough money set aside for three months of living expenses incase of being laid off or sickness. I bet you could find Cary a great used clarinet. Or maybe not depending on Cary. No benefits is a bummer. Hope that changes soon. Good luck on getting all of this figured out. Money matters are no fun. I get to go take my grandson to his competency hearing now. Oh joy!
2 people like this
@dawnald (85130)
• Shingle Springs, California
3 Apr 13
Not bad at all for 5 years. The company I am getting the pension from will give you medical benefits if you are 55 when you leave the company and have at least 10 years service. Maybe I should go back to work for them for 1 month.
2 people like this
@celticeagle (158695)
• Boise, Idaho
3 Apr 13
That's a good plan. My pension isn't a lot but its for life so I thought that was a good deal.
1 person likes this
@cynthiann (18602)
• Jamaica
3 Apr 13
Congratulations as you do not have your head in the financial sand. But it's a bit scary isn't it? Get every striking medical test and examination done before the benefits run out. Then yhou MUST have medical insurance and this is a necessity.
Emergency money is necesary too. All advisors say to have three months worth of expenses but I never managed to do this. I didn't do much financially at all really. A colossal failure as no preparation for retirement but I do have the land. So here I am in retirement and the money coming in from pensions is not sufficient for me to survive without maxing out my credit card. I am not the person to give you financial advice really.
However, we can cut down. It is the little few dollar expenses that add up. A silly example is that when I pick the twins up from school they usually have a cinnamon roll and I have a coffee. Now this is US$3 a day so US$15 a week and I do not earn US dollars. So it is US$60 a month which is J$6000 and this is a chunk of one of my pensions. In fact it is one week's pension of the smaller pension. Do you get my point? Save the cents wherever possible as cents make dollars and dollars make your future safe.
Cut down on all these unnecesary cleaning supplies. Vinegar and hydrogen peroxide can clean most things. Use half of recommended amount of laundry detergent. make little changes and save the rest. You will work out a budget and stick to it, I know you will. Get your kids involved too in cutting out coupons for food. Others do it and you can do.
However, we can cut down. It is the little few dollar expenses that add up. A silly example is that when I pick the twins up from school they usually have a cinnamon roll and I have a coffee. Now this is US$3 a day so US$15 a week and I do not earn US dollars. So it is US$60 a month which is J$6000 and this is a chunk of one of my pensions. In fact it is one week's pension of the smaller pension. Do you get my point? Save the cents wherever possible as cents make dollars and dollars make your future safe.
Cut down on all these unnecesary cleaning supplies. Vinegar and hydrogen peroxide can clean most things. Use half of recommended amount of laundry detergent. make little changes and save the rest. You will work out a budget and stick to it, I know you will. Get your kids involved too in cutting out coupons for food. Others do it and you can do.2 people like this
@dawnald (85130)
• Shingle Springs, California
3 Apr 13
I have such a large supply of cleaning stuff anyway, it will take me forever to go through it. But I do cut coupons (don't use them enough), I take advantage of the grocery store's gasoline discount ($.50 per gallon), am going to have the twins take their lunches more often (school lunches are $80 - $90 per month), bring mine more often, buy Cary a clarinet and get rid of that one monthly charge, two more payments and my blinds are paid off so that will be another $250 per month, and I'll be examining everything else that isnt mandatory too.
did you ever get title to the land or is Mr. Attorney still sitting on his hands?
1 person likes this
@dawnald (85130)
• Shingle Springs, California
4 Apr 13
I thought he agreed to do it for free? (sigh)
@blue65packer (11826)
• United States
11 Apr 13
I am spending more then I am taking in. I need to cut somethings out which would be not a big deal. Even with raise this year,the first in 4 years,I am not noticing more money in my check! I know more social sercurity is being taken out but have no idea how much. I have a retirement fund,dental and health insurance! Three weeks vacations,too! In august I will be at the college 12 years. I hope I can stay there until I retire in 19 years! I have it good and want it to stay that way! I never have money for a rainy day or emergencies! I'm terrible at saving money! I wish my casual part-time job was back to regular part-time! That would help so much! Besides Mylot,Clixsense and Neobux I make money recycling. It still is not enough! It sucks!
2 people like this
@bounce58 (17387)
• Canada
10 Apr 13
Back in October of 2005, I started putting my finances on an Excel spreadsheet. It was my way of coping with the financial struggle that I was in to. And a way for me to look into the future, and possibly see where I was going to be money-wise.
I'm still not out of the woods, and I'm still continuously putting data into this spreadsheet. I just conveniently call this process my own 'financial planning'.
@wolfie34 (26771)
• United Kingdom
3 Apr 13
Planning and budgeting would be extremely useful if they put it in the school's curriculum, instead of some of the other useless stuff they teach, so many kids leave school and haven't a clue about how to plan, and save for rainy days, it's all buy today and they don't stop and think about their future. I was fortunate, my mum taught me from a very young age how important money was, and I grew up to be a frugal saver, so much so that I am fortunate in that I don't have a problem with finances, the only problem I have is trying to find employment offline. I am still too far from retirement, I am 42 this years, and in theory have 23+ years working life ahead of me.
2 people like this
@dawnald (85130)
• Shingle Springs, California
4 Apr 13
No, I know for sure that he doesn't, but he offered to put them on if I lose my coverage.
@suspenseful (40193)
• Canada
4 Apr 13
That does sound confusing. When my husband passed, we had a company medical plan and after he had retired, they cut out the dental plan which with my bad teeth, was a necessity but of course, could not afford the extra payment would have been almost one hundred dollars a month and already was putting money into the church (I get a tax deduction for that). Also all of what my husband put into his retirement went for his medical expenses not covered for his als. That meant that I only had the widows pension plus the government pensions to rely on. And also a friend who thinks that I have this big pile of money to use. I do have an emergency fund and also a do not touch fund in my bank accounts. The emergency is for emergencies like if a safe falls on my head, etc. The do not touch is sort of a reserve that I have to keep in the bank and not go below it. Still building it up. Really i am hoping to have enough to live on the interest.
My basic premise for a budget is the first thing is for tithes and offerings and then the emergency fund. The housing,transportation, utilities, and food come next. Do not sacrifice your heath. In other words, buying food with trans fats or unhealthy may be cheaper, but you will die sooner if you do that. Careful of impulse buying. If you have to cut that out in order to have more for a necessity do that. Save for the big items. And try for that new job.
Oh what I have to watch for is the unexpected expenses like having a subscription to a course and not realizing that they automatically resubscribed you the next year.
1 person likes this
@suspenseful (40193)
• Canada
5 Apr 13
What bugs me is the unexpected and I do not mean the roof suddenly falling in, the oven no longer working or my dress ripped, it is something someone else suggested I do and if I have to do it every month, that means money going to that - I am talking about charities - that I have to take from something else. It is as if they are saying that I should not have put money into that something else. Yet they are able to afford to go travel that I can't.
1 person likes this
@zandi458 (28102)
• Malaysia
3 Apr 13
At my age (not that I am too old) I have ceased planning. What is there to plan when the children are already earning their own money and is their payback time so I can live through the balance of my life burden free. Luckily our medical needs are taken care of by the government so I am not too worried when old age diseases come licking on this aging body. Though I am not financially comfortable now like once upon a time but I have no complain as all my financial obligations have been finalized.
2 people like this
@wilsongoddard (7291)
• United States
3 Apr 13
Since it is so advantageous to them to maintain things as they are, it's unlikely that they will change your status from contract worker to actual employee. It's worth trying to get hired on, but it seems unlikely unless there is some sort of incentive there for them. They know you won't walk away if not hired; even if you did, they probably would feel that they likely could replace you fairly easily. 
Things really are not structured in employees' favors for the most part.
Buying the clarinet would definitely be cheaper than renting one. Dropping cable or satellite television would be another obvious cut to make. Installing some solar panels for grid-tied solar may help both with the electric bill and, provided that your state has net metering (I think it does) could even result in the electric company paying you for your excess electric generation.
Things really are not structured in employees' favors for the most part.
Buying the clarinet would definitely be cheaper than renting one. Dropping cable or satellite television would be another obvious cut to make. Installing some solar panels for grid-tied solar may help both with the electric bill and, provided that your state has net metering (I think it does) could even result in the electric company paying you for your excess electric generation.2 people like this
@dawnald (85130)
• Shingle Springs, California
3 Apr 13
I don't think they really want to train another person right in the middle of implementing Health Care Reform, but the problem is they may not have an open position.
Definitely going to look into buying a clarinet, looks like it will pay for itself in 2 - 3 months at most. As for dropping cable, nope not unless I get desperate, but if they raise my rates, I will threaten to drop it and see what they do. Can't really afford solar panels, that would be an additional payment that I don't want to take on.
2 people like this
@vandana7 (98731)
• India
3 Apr 13
Hi Sis..I really cant judge from the standards out there...I mean, what is ok for us out here, may not be ok for you all. Given that, I do feel that just 11 years away from retirement, investing in stocks, is it ok? I mean, we Indians would be busy pulling out monies from stocks at this stage...as soon as the stock markets go up, pull out monies kind. Then we invest in tax savings. Effectively, the returns are marginally higher. But then, you seem to be good in stock market investments. You have to find ways and means to help kids earn for part of their enjoyment (eating out) I guess. Like, writing articles on some of those sites? Jobs are far away, and not really assured, right...it never harmed anybody to do some part time earning and thereby become more confident about future. I would have gone about it that way I guess. Life at your end is really very difficult. :(
Out here, we can earn on fixed deposits (10 percent p.a.), inflation is about that...for retirement savings, its been the rental income. Today, that covers home expenses as well as medical insurances and taxes. Of course, I am speaking as per local standards. I earn for a couple of charities. I mean I cant become vegetable as yet, right? So I need to keep doing something...
2 people like this
@dawnald (85130)
• Shingle Springs, California
3 Apr 13
Interest on savings is like 1%. I had all this money in the bank last year and made just over $7 in interest. There are risky stocks and not so risky stocks. If you invest in large, stable companies, over a 10 year period you should be pretty OK. I'm not going to get crazy and invest in startup companies or anything.
1 person likes this
@finlander60 (1804)
• United States
4 Apr 13
Are you familiar with the NEW SIMPLIFIED FEDERAL INCOME TAX FORM?
Line #1. How much money did you make during the year?
Line #2. How much money do you have left?
Line #3. Send us the amount listed in Line #2.
Line #4. Thank you.
1 person likes this
@changjiangzhibin89 (16518)
• China
5 Apr 13
Nowadays it is hard to make ends meet as price increases hit everyone's pocket,so things don't always go according to plan.Anyway having a plan is better than not.By the way, can the contract to hire position eventually end up as a permanent job?
1 person likes this
