vfinx wrote: ↑Fri Nov 17, 2023 9:54 pm
I am considering enacting some spending cuts to exercise the muscle, and prove to myself that I can do it. Painless cuts (e.g. inefficiencies) are always being hunted down, but I would be curious to know what kind of painful
spending cuts people have made, and how it turned out.
While anyone can obviously post whatever they want on the internet, the following would be particularly useful to me:
- The spending cut should have (or at least was anticipated to have) caused some displeasure.
- Explain why you made the change.
- Explain whether it turned out well, or if you ended up regretting it, or undoing it.
- Small and large spending cuts are both interesting.
And the following aren't really useful to me:
- Expressions that no painful spending cuts have ever been necessary since one is optimal.
- Expressions that one doesn't worry about spending, because one has enough to buy whatever one wants.
- Tangents into judgements of the hedonistic treadmill, or keeping up with the Joneses.
Random notes: (for us not others, perspectives vary, lives vary, money varies) (dis laimer).
State of things.
DW recently informed me that she spends over 300 dollars for every grocery shopping trip, and there's nothing extravagant in the bags. We shop for nutritious food at the health food store (Sprouts, Whole Foods, etc), no meat, no "food in a box", no processed foods, no dairy, etc.
A pack of Charmin' toilet tissue, large with 120 equiv roles, costs well over 30 dollars at Walmart. Yikes! Inflation has us coming and going!
Despite having the best medical insurance (Medicaire Original (not privatized/corporate), and RX and other supplementals, RX copays have gone up fast. Why? Like everything else....
Homeowners and other insurance, (insurance companies....why?)..costs have skyrocketed. Yikes!
We have no institutional or gov't pension from years of toil...only our portfolio and SS and R/E income. It seems like our portfolio has not recovered well since being "hammered" in 2020. Maybe "sequence of returns risk"? (allocation 60/40). (Those with pensions as the primary asset fair better sometimes).
Large health issue related expenses over the past 2 years. "Black Swans" ...flocks of them.
No Medicare or other medical insurance coverage on some pricey "mobility aids", this year. (huge spending here).
**Warning to others: Medical insurance and private industry for "mobility aids" is highly predatory
and a real slam despite all the fancy website ads and stores that advertise...
What we've done (or has happened):
Put on indefinite hold: Finishing the last major home property improvement on a 10 year plan. Landscaping around the house and grounds. Major pricey project. Large areas. For now...it's just flat graded gravel. Oh well. Also the back porch stairs is still missing. Oh well.
No fancy or big non essential expenses or luxuries. On indefinite hold.
Increase small expenses for things that improve quality of life from day to day. Fun things like shorts that fit. Overhauling some aspect of our clothing, stacks of stuff cleaned out and dropped off at Goodwill. Like that. Activities that dont cost much but are rewarding and fun.
Full SS at age 70 coming up. Automatic deposit to our checking account for household expenses will be helpful.
3 of our dearest "fuzzy buddies" of 18 years have passed away over the past 2 years. Very sad. Great effect on the "feeling" of daily life and routines, but no real effect on household economics. Costs are irrelevant when it comes to these things.
As far as economic changes for us personally: In the Biggest picture: Nothing painful. As senior retirees, just surviving from day to day is painful...why add to it...