If I am going to make saving a priority I guess the first step is to decide just what am I saving for? Does age dictate your savings goals? I mean at age 55, being able to retire in 12 years or so is one of my top priorities. If I was a twenty something I would probably have a different goal. Anyway, retirement, hopefully one day in the foreseeable future, is my first goal, followed by paying for healthcare. These two are fairly easy; I signed up for the 401K plan at work, and an HSA for health insurance. As these two items are deducted before taxes I never see the money and don't have to think too much about it.
For several years I have divided any funds for regular savings into one of three accounts. First, I had an emergency fund. This is suppose to have $2500 in it and its for Unplanned, Unexpected expenses like a car repair bill, needing a new washing machine, or a visit from my wealthy plumber. It is NOT for new tires for the car that I have known for months must be replaced before winter, or a new washing machine because I want one.
Next comes my Major Expense account. The goal is $25,000. This is for major expenses like a new roof, or to replace the septic system. I have never even gotten close to the $25,000 goal. This is an area that will need focus 2017.
Then there is my favorite savings account, the Travel Fund. The plan was that I would save money for travel, and when it came time for vacations, rather than picking a spot and using this account to pay for what it could, and the rest be paid by credit cards, the amount in the fund would actually dictate where we went. $5,000 to$7,000? We could go to Europe. $500-$700? Maybe a weekend to a B&B near vineyards (Love the Finger Lake region of New York). $50-$70? A movie at a local theater. At first I was using the account as planned, but as funds dwindled, I found myself relying on credit cards to pay an ever increasing portion of our vacation expenses. In 2017 I need to focus building this account up, and stay away from the credit cards-Sigh! That's a whole other issue!
Last year I started a new account. It doesn't have a name, or even a real purpose as of yet, but I am saving $100 a week. I started the first Friday in 2016, and so far I am on track. In fact after tomorrow I will have $4400 in it. Currently I have this vague idea I will keep doing this until I retire, and add it to my retirement savings. I also think maybe its for those times when money falls a little short (Husband earns straight commission-pay checks have a tendency to be feast or famine). However, I like to think I already plan for that, so maybe this could be for a retirement home, or something special I don't even know what for yet. Anyway, it feels good to see the savings add up each week, and to know this is one goal I haven't faltered on.
So what is my plan? I don't have a clue. I'm making this up as I go along. Retirement and health are biggies and I do need to think more about those, but I am putting them on the back burner for now. My weekly savings is just fine, working perfectly, see no reason to change. My emergency fund is close to being fully funded. I am currently short by $500. My plan is on each of my husband's next four pay checks to divert $125.00 to the fund until its whole.
The Travel Fund is tricky, its my favorite, and gives me the closes thing to instant gratification. I have always used bonus money, Christmas & Birthday money from Dad, and proceeds from yard sales and the like to fund it. but I may need to get a little more creative on my funding sources.
It's the Major Expense Fund that I am most concerned about. I am going to need a new roof within 5 years, the house needs additional updates and repairs, and I am always running scared when it comes to my well and septic. I do need a good plan to cut costs, and funnel more into this account. By New Years Day 2017 I need a plan, and it needs to be in place and active. Two months, just two months.......
.....To be Continued.
No comments:
Post a Comment