Frugal Friday-A New Budget for The New Year

This morning I was kicking myself!

 I've decided that I'm on a no new clothing plan for the rest of the winter with a couple exceptions. I'm allowing myself a couple pastel sweaters because I am VERY low on sweaters in decent condition (as in not around the house stuff).  So for the last week or so, Macy's has had a big sale on sweaters and two of them, including the one below were just at $17 each. Being me, I assumed it was an end of season sale and it might go lower, so I left it in the bag. Today, said sweater was back to $49.00.  That'll teach me!  In fact I desperately need a couple sweaters so I will probably get it if it does not go down.  But darn!!!! 

In other news, it's revamp the budget time again,  and this year (especially for the first six months) it's definitely a tightening of the tape measure plan. After some deep thought, I returned to my federal retirement insurance high option plan, and dropped my no fee Medical Advantage plan, increasing my outgo by $200.  I'll write about this in the next few weeks in a separate post, sharing my thinking and research.

In addition, for the next five months, I'll be helping my son with his rent (he pays a half of a share based on the amount of time he is here and the handyman type stuff he does around the house). I do this consciously and willingly. He has decided that he will remain here even if I go, and also where he wants to live, so I do this to enable him to save every teeny penny towards the cost of a down payment, pet deposit/rent, and all the furniture and household stuff he will need to acquire.

I also need to be putting money aside for myself. While I'll probably be with my daughter for a couple months late next fall as I begin looking at where to live (and saving because she wont let me pay for anything except perhaps some restaurant outings), I will not be taking  much of the furniture that I have here, and so will need new living room furniture and a new bed and matres and box spring at a minimum (I am happy to scavenge sales and thrift stores and online offerings for much of the rest).

So yes, the budget, it has changed:

1. My fixed expenses-both rents, my share of cable/rent insurance/gas/electric/water, car insurance (after comparison shopping), and my phone now top out at right around $1400 (health insurance comes out of my pension and social security before I budget). Without my son's share it is closer to $1100,  and obviously dependent on season and other things. Since I am naturally cold blooded, that electric and heat is higher in the winter than in the summer when I can live with an air conditioner average of about 77 degrees with ease. While my temporary assistance to my son is upping the average, I am reminding myself that a two bedroom apartment without my sister will run somewhere in the $1200 range in Texas so this is probably good training even though other costs like utilities will be much lower.

2. This leaves me at right around $1200 (possibly more) for everything else (If I've done the math with the SS increase vs Medicare increase correctly). This includes some debt (small parent student loan debt, car repair loan, etc), savings, and all unfixed expenses including groceries, personal care, entertainment, clothing and other stuff including minor medical co pays. I got the high option insurance to avoid the co pays.

3. My goal is to get back to $70 a week for groceries. This includes dinners for two or three four to five times a week, lunches, and breakfast for two (plus the wine). I could possibly do this for less and eat well, but I want to cut down the eating out while I'm at it. See below.

4. I'm cutting down the dining out and entertainment until late spring-both for my waistline/health and for the savings. While I'm still doing happy hour every Thursday (where I tend to have just a drink and avoid dinner (because I have it at home) and bar food, I have cut down the lunches in my gals group (because I'm the organizer and I can do that) an added more things like a craft and chat, a five dollar movie afternoon, and the like. And it seems I'm not the only one in the group that appreciates the budget cuts. I'm not a winter sports person and don't like to drive in the dark in the cold weather so this is not nearly as painful for me in January and February in Colorado as it would be during the summer.

5. My goal isto do a month by month budget between now and the first of June, planning for Valentines, birthdays, special occasions and everything else I can think of, and then put all the unplanned money into a separate checking account I can access as needed (since much of this money will be used by the end of 2020).  Monthly that will always include the above grocery money, gas expenses, haircut and pedicure (a medical expense in my case), monthly specific expenses, and whatever amount I've allowed for entertainment. I won't shoot myself if I use the other money, but having it in a different account (with a different attached card) will make it conscious and more thoughtful...........or so I tell myself.

6. I am allowing myself some extra spending in the first couple of months. This is for fabric and yarn supplies. Some will be used simply to keep me busy during the nights when it's dark out and the TV is my friend, and the rest will be used to purchase supplies to sew things to sell through re-opened my Facebook page (which will be called Frivolous Necessities). I plan to concentrate on memento sewing (T-shirt quilts and things sewn from wedding dresses other things) and  mainly sustainable and decorative products made nicely (fabric napkins, cloth paper towels, tote bags, table runners). I'll be making what I like and selling them. No custom work this time. Sew where I want, what I want, when I want.

And there you have it. Feel free to tell me if you think there's something I did not address in  these general budget guidelines for the first half of 2020. I'm happy to share specific numbers and answer questions in the comments and will probably let you all know how this is working and how much I spent in the notes, but I figured this post was long enough!!!!!!!!

Happy Weekend, all!