Hello! A new post! I’ve spent much of the fall either deeply immersed in volunteering, traveling, or sick. It’s been a good season (apart from the two week-long colds) and although I’ve barely logged into mint and have no interest in looking at my investment account balances, I’ve mostly managed to pay my way with freelancing rather than savings, although that’s been precarious for the last month or so.
I’m still not logging into mint for a while 🙂 So instead of a net worth update, have this list of how money has recently been flying out of, as well as into, my accounts.
I’ve been thinking a fair amount lately about the balance between my expectation of spending little/no money and the reality of keeping my life running. This meditation didn’t actually start with the big unexpected car repair yesterday (more below) but rather with an L.L. Bean purchase a month or so ago.
Nice Clothing Costs Money
I am, to say the least, not a fashionable person. I don’t like shopping, always carry too much weight for my own tastes, and frequently wear the things I buy for years on end. I have a few one-week rotations (teaching clothes, summer tshirts/shorts/skirts, winter jeans/shirts), do a load of laundry every weekend, and then have a selection of dresses, suit jackets, and the like that I can pull out when needed.
Because of this I think I felt, a few years ago when I started to budget, that I shouldn’t really budget much for clothing. I basically bought no clothes while I was paying off debt, so I knew I would have to fill in some holes when that was done, but I thought after that maybe I wouldn’t need to buy anything for a long time.
But it turns out that I consistently and reliably spend around $1000 or more every year on clothing, even though I wear everything I buy for multiple years. It turns out, though, that things just wear out on cycle — this year I haven’t had to buy summer tshirts, but I did have to buy a new set of winter long-sleeved pullover shirts, the last set (from several years ago) having gone to their eternal reward. I haven’t bought sandals in several years, but both pairs I regularly used wore completely out this summer so I’ll have to replace them next year. And so forth. And buying the quality construction I enjoy wearing and that will stand up to 100+ trips through the washer or 1000s of miles walked isn’t cheap. So I just have to keep it in my budget unless I want to change my lifestyle dramatically.
Yesterday my car demanded its annual blood sacrifice. The thing is, the car in question was free to me, and is 20 years old. Stuff happens, in this case, stuff like taking it in for an oil change and finding out the radiator is cracked and we really need to replace the original radiator hoses too. Cue unexpected $700 bill.
I mean, it’s ok. I have the money in savings, and voila, my parents hadn’t figured out what to give me for Christmas so they’re going to help me out too — I don’t “need” it but it’ll be nice to refill my emergency fund with that to some extent. But it’s just a really good example of the fact that keeping life running reliably does not have a zero cost. If I was poor, I’d be in worse shape — I wouldn’t have paid the bill, and would have just driven the car until the radiator gave out completely, then switched to the bus or something. I don’t know. Instead, I can pay the bill and keep going on my relatively merry way.
Also yesterday, while I was spending money like a drunken car-repair sailor, I signed up for a 2019 Obamacare plan. I had to estimate my freelance income, and have no idea how this is really going to work out in the end (I won’t know for sure until I file my 2019 taxes) but at least for now I think I will get a subsidy and have purchased a plan that, including a separate dental plan, comes to $190 a month (after subsidy.) I haven’t had to go to a regular doctor in a couple of years; I just do a dental visit twice a year. So the insurance may end up not really mattering. But now that I’m nearly 40 and not broke, I do feel like it’s something I need to pay up for, since it’s accessible to me.
I am, for somewhat mysterious reasons, really feeling the present-shopping spirit this year. There have been many years where I’ve spent nearly nothing on presents, giving mostly homemade items. This year, though, I just kind of want to. My godchildren are old enough that they are interested in books; I have a baby niece that needs clothing; and I wanted to give some things to several friends, as well as to the kids and to my parents and brother/sister-in-law. Honestly, I didn’t really make a budget for this stuff. I’m just buying what I want, and will figure it out later, probably with money from savings. Not very fiscally responsible! Going forward I think I need an actual Christmas budget. I’ve never had one before, but I’ve also never had four or five kids in my life that I intend to consistently gift. I’ll add a “Christmas” line to my 2019 YNAB budget so I can save up throughout the year.
Things I like include maintenance/prevention and high-quality clothing, food, etc. I am not extravagant in any of those areas, but they really do cost money and are not expenses I can ignore in my financial planning.