Now here’s something weird: We’re halfway through the third month of 2014 — pushing the end of Q1 — and my bank balance, which should represent the total amount of money available to spend in 2014 — is exactly $2003 less than it was in January, when we started with this experiment.
(The “experiment” being to pull down enough money from savings that, combined with Social Security and teaching income, the total accrued over a year should cover all my 2014 expenses.)
Two grand is substantially less than it should have cost me to live for two and a half months. The combined discretionary and nondiscretionary budgets come to $1,750 a month — and that’s in a good month, where there aren’t a lot of unplanned “extraordinary” expenses. So, in theory, under the best of conditions I should have spent $3,500 so far.
And the conditions have decidedly NOT been “the best.” I’ve spent and spent and spent and spent and spent and spent: car repair, landscape repair, tree pruning, electrician, dentist, puppy purchase, puppy gear, more puppy gear, first vet bill, puppy shots, ER visit, eye exam, glasses, glasses, glasses, contact lenses, contact lenses (bought two sets from two dispensers so as have a bunch stashed by way of delaying having to go back for another nuisance eye exam), findings for rosaries to be donated to next fall’s silent auction, tickets to various amusements, lunches and dinners out…on and on and on. These are things that would normally break my little bank.
But instead, the opposite seems to be happening. And there’s no clear explanation for it. Even though the power bills are much lower than the budget allows (in winter I don’t run the heat), it’s hardly enough to make a difference. Other than the January drawdown, I haven’t exactly been cranking money. The junior college district has dispensed all of two (count’em, 2) paychecks, the largest of which was a munificent $350. The only other source of regular income has been Social Security, hardly what you would call a 1-percenter’s rate of pay.
Adding to the amazement, Wonder-Accountant has extracted $2900 from the feds and $22 from the state in tax refunds. When those come in, the bottom line will come to about $1,000 more than I had when I started this year.
There are only two explanations for this: either it’s costing an awful lot less to live than I think it costs; or SDXB is right in his theory that “money happens.”
The only thing I can figure is that money materializes out of the air, sort of like matter and energy popping out of empty space in Hubble’s continuous-creation model of the universe. That would explain it.
I guess.
Whatever. If this continues — and especially if the constant barrage of extraordinary expenses slacks off — next year I shouldn’t have to draw down much from savings at all.
Wouldn’t that be nice?
I’m with SDXB ….money just seems to ….happen. But it’s been my experience when one is just starting to feel good about one’s finances an unexpected expense pops up that will make good use of the money you were just …”admiring”. Case in point, I was feeling pretty good about things and then while taking my Dad to his chemo appointment the unthinkable happened. The rear axle to my “vingtage SUV” broke away from the frame and had it not been for the rear bumper…this could have been …interesting. Soooo instead of feeling pretty good and applying for “historic tags” for our vehicle, I’m shopping for a replacement vehicle, paying a tow bill, looking at options to “scrap” the old truck AND thanking my lucky stars that we were not traveling at a high rate of speed. Funny what a difference a week makes….
ah, yes… The ancient vehicle IS the elephant in the room.
Jeez. That must have been alarming. I’m glad you didn’t get into an accident.
The big IRA earned enough money in February to pay for a new car, so I suppose I don’t need to worry too much about that. But of course, money in the stock market comes under the heading of “funny money” or “monopoly money”…it’s not real money.
In another couple of years, I’ll reach the age where the gummint forces me to withdraw a certain percentage from the IRAs. That may be the point at which to buy a new car, if in fact it turns out that I don’t need to spend much of savings on staying alive. The first year’s forced drawdown could be used to buy the last vehicle I’ll need for the rest of my life. Then after that, just roll after-tax drawdowns into a regular brokerage account.
Not looking forward to the mandated IRA withdrawls myself….my tax gal says….no worries…. to just plan ahead….CHEEZ. I’ll tell ya not many that can say they HAVE driven their car …”till the wheels fell off”…. and mean it!….LOL. The crazy thing is, my research indicates this vehicle had a recall back in ’99 for “bad welds” on this area. But the manufacturer is only responsible for ten years after the recall. When this happened it was almost sureal…only going about 15-20MPH leaving the hospital….a clunk…then a bit of swerving…then a grinding…Thankfully no one was hurt amd I was able to get the vehicle off the street and towed home. Not until after inspecting the damage did I fully realize what could have happened if DD2 or DW had of been driving at a pretty good rate of speed. In the process now selling the SUV for parts and obtaing a “gently used” replacement…no small task….
If you itemize, you may be able to donate the thing to NPR or some other nonprofit for a tax write-off.
Heh heh…or maybe you could use it to start a new business: auto wrecking yard? You’d have to get a junkyard dawg, though. 😉
Nice, that they let everyone know about this little flaw..
Certainly is lucky no one in the family was cruising down the freeway when the thing fell apart. Holy mackerel!
If you haven’t been taking withdrawals from your IRAs etc: many suggest that–if the RMDs are likely to be large–you take money out BEFORE 701/2, enough to “fill up” the 15% bracket. You don’t need to spend the money, of course. That protects you from ending up in the next bracket with RMDs.
BTW, I read a master’s paper that cited the famous biography of Robert Sidney by the well-known blogger….you!
Ooo ah! I’m CITED! Too exciting.
I forwarded your observation about the IRA’s to Wonder-Accountant. Will be good to learn what she says. Next year, I suppose, would be the time to do that.
OOPS–forgot to mention that a lot of people do Roth Conversions in the years before RMD also.
When I was in grad school and living on loans, I really didn’t like having all that money at my disposal at once. I was afraid I would spend it all, but I ended up ok after I got a part time job. Glad it seems like after the tax return you’ll be in the black!