Saving for Renovation
by, 04-17-2013 at 03:24 PM (728 Views)
So the move to improving our retirement situation is two pronged: save money and earn money. Hubby does a great job on the second one. Not so great on the first. I do good on the first, but not so great on the second. It's either a recipe for disaster or a recipe for success. I am being optimistic and saying a recipe for success.
First object is to find out where we are financially. I discovered we have improved our net worth by a considerable amount since last year this time. That is very good. Excellent! So we will continue what we're doing in that area at least. But that is not enough money for all the work we want to get done. And that money is not all available cash to us. A lot is our retirement funds. Which we do not want to touch.
I talked to hubby about a line of credit. We really do not want to do that. But it might become a necessity in order to finish the house in time for his retirement. We will see. We would rather pay cash.
So...specifics (which most people avoid on FV)...
We currently spend $600/mth. on groceries - all organic, free range, antibiotic & hormone free food...gluten-free, dairy free, sugar free. That has been axed to $400/mth. Certainly for the remaining 1 1/2 months the boarder is not here. Lots of vegetarian, soup, and canned fish meals.
I am going to use the money saved from the grocery bill for the backyard garden this year, including the raised beds. They will not be built until that huge tree is taken down and the structural engineer comes in to look at the basement. No point having them crushed by it. So I'm thinking they might be a late summer/fall project at this point.
My challenge is to empty my sewing room so we can move the boarder upstairs. Then we can rip out the basement, if necessary, for the structural engineer to look at. In order to do that I need to do a serious declutter. I am starting by going through all the CDs in the house, ripping them to the computer and selling them. No point having them take up space. I don't need them. I'll back them up on a flash drive. That will clear out 2 1/2 CD stands/bookcase shelves.
We put a moratorium on all dining out. Instead I will have to think of some way to encourage hubby to help in the kitchen every now and then. Maybe he can cook a meal on his day off. Seems he gets fewer of those these days.
For some reason we seem to have a lot of money in the medical jar. I am going to take the cost of my naturopath out of that jar instead of the account. Then, when hubby gets reimbursed for the visit, it can go directly into C&H. Plus I will not be going to the naturopath beyond hubby's ability to be reimbursed.
We already do not go out to movies or for entertainment unless it's free and we have time. So we cannot cut there.
When the boarder comes back hubby is thinking of raising her rent. She currently pays $600/mth. It costs about half that to have her here. The going rate for room and board is $825/mth. though. So we could certainly raise it a bit.
My goal is to put $2000/mth. into the C&H account (Car and House account, for renovations). Let's see how well we do. So far this month we only have $500 in there. I have $250 set aside by shorting all my jars in my jar budget system this pay period. It will be hard to come up with an additional $1250. If the boarder were here and paying full rent, we might be able to do it. But as it stands, it will be difficult. We have an additional $700 in our Operating Account that, if we are careful, will be untouched this pay period and able to go to C&H. I would need an additional $550 to make goal. Hmmm...