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Diving deeper into annual budgeting

January 22nd, 2014 at 05:15 am

A couple days ago I talked about some wants and needs that were tugging at our surplus and endangering our goals for the year. Well, tonight I learned that both duvet covers have big holes in them that may be hard to fix. Also, our handheld vacuum has been making burny smells when we try to use it. I started feeling a bit frantic, wondering just how much our goals were in danger. So I sat down and did some projections for the year.

OK, so the tuition is already budgeted out, as well as the UK flat reno, EF and moving fund goals. So is the bathroom renovation. The only big uncertainty is whether we'll have enough to pay off student loans.

We have $12,196 of student loan debt. AS's student loan payments will put at least $1596 toward principal over the course of the year. That leaves $10,600 we need to come up with.

I went over our projected surplus for the year and there's a little less than $11,000 there. Less than $400 surplus, so I'm calling it $300, just to give us a tiny bit of fluff each month.

I went over the year and all aspects of living I could think of with NT, and had him consider the things that we would probably be wanting to purchase over the course of it that are unbudgeted-for. This is the list we came up with:

Duvet/comforter $40
Dual citizenship for girls $580
NT passport $250
CJ license $25
AS yoga $700
Swim lessons for both girls $480
2nd half of laptop $500
SL bed & mattress $120
Drill $50
Girls' new snow gear $150

Grand total? $2,895. So, at first glance, we come up pretty short what with the paltry $300 surplus.

But, I can predict we'll have at least $1000 of bonus credit card rewards (hopefully more, but we'll leave it there for now). AS said one of her out-of-town engagements will get her $1000. So that brings our surplus to $2300.

OK, $695 short. I kind of have faith in windfalls because we usually have a few. Setbacks, too, but they typically average out and we come out a little bit a head. Some potential sources for the rest of the money:
- NT possible raise
- My possible raise
- Tax refund (though I'm thinking we'll break even -- I need to do them soon)
- More credit card bonus offers later in the year
- Freelance jobs (we don't have any lined up, but it's possible we could scrape up one or two if needed)

So, I'm not too worried about the shortfall and feel we'll probably be able to achieve all of that. But I don't really see a big 40th bday party in the cards. Now that the space I wanted is no longer available, I've lost enthusiasm for it a bit. So I might just go to dinner with a few friends or have a party at the house. Hey, maybe I can gear up for a 41st bday bash instead!

Overall, I'm feeling relieved that achieving our goals still looks realistic. And if we find we have another need, now we have a list to go to and see if anything can be pushed to next year instead.

Oh, and the handheld vacuum? NT did some research and now thinks it needs a new filter. Only $7. Big Grin

8 Responses to “Diving deeper into annual budgeting”

  1. creditcardfree Says:
    1390396884

    You might check online at Land's End or Ebay for snow gear, either used or on clearance for your girls. I really like Land's End things. Also, you can return Land's End items to Sears...at anytime for any reason! I returned a coat my daughter wore twice a whole year later and was refunded the money I spent.

  2. ThriftoRama Says:
    1390405679

    I am amazed you can budget out everything you might want to buy in the entire year.
    It does seems like you are stressing out a bit. Would it be the end of the world if the student loan were say, $95 percent paid off at the end of the year, vs 100 percent gone? Wiggle room is important. Things break, emergencies happen, opportunities arise.

    I've had to do a lot of soul searching in recent years about financial goals vs. opportunities and quality of life. Would we like to be saving even more or paying even more on the house? Yes. BUT, not at the expense of enjoying life and friends along the way. (I'm not saying your not...) I wouldn't skip the 40th birthday party.

    You are only 40 once, and with two little kids, sometimes you just need to let loose and have a night of fun. DH turned 40 last year (mine is in 2015). We put the kids to bed, invited our friends over, and had the best party in our basement, at our basement bar. Booze, music, and food. It was so fun, we're having another one later this month for his 41st.

    I just worry that something as day-to-day as needing to replace duvets sends you into a tail spin. That says to me you might be trying to do too much?

    Just my two cents. Feel free to ignore me!

  3. ceejay74 Says:
    1390406964

    Great tip, CCF! They're for next winter, but I'll put a note on my spreadsheet to check there. I'm hoping to come in way under that budget, but NT pointed out we may need to try and get some fancy sleek snowsuits so the girls can fit in the stroller for their last year of going to daycare together. They're getting big, and the snowsuits practically double their bulk! Smile
    Totally appreciate your perspective, Thrift. Especially since I feel like you're a much, well, thriftier person than I, it means something that you think it's important to have a 40th bday celebration. I'll think about it some more.

    And yes, you're absolutely right that I'm overreacting to everything right now. I think the cabin fever is getting to me! I feel like I'm handling the extra harsh winter really well, but maybe it's taking its toll on my sanity in subtle ways. Will try to breathe more. Big Grin

  4. Buendia Says:
    1390410265

    I do this, too - I think it's ok to budget super-carefully for the year. That way if there are any surprises, you can usually absorb it. We bought a new duvet cover last year for the same reason - unrepairable holes! I also paid about $40 (I think I got it on Overstock). We have the same issues with citizenship/passports; I have a budget item for that (we have to keep up 7 passports!). Anyway, I think you're right to figure it all out! And I agree with Thriftorama... you deserve that 40th Birthday!! Doesn't have to be super-fancy, but have FUN!! I didn't do it (main reason: my birthday is on Halloween and I don't want to overshadow F's fun) and I'd love to do a big 50! (three years)

  5. creditcardfree Says:
    1390415960

    If you buy the snowsuits now they are probably only a size up from where they are now, cost way less than if you buy in the fall...and you can use the purchase to meet your credit card reward. Just ideas! I like the idea of slimmer snow wear, but I don't know much about it.

  6. ThriftoRama Says:
    1390433159

    Oh, and we buy our snowsuits at the thrift store. They usually cost us less than $5 each, and are in good shape because it's not something most kids wear every day.

  7. snafu Says:
    1390435407

    I too emphasis the importance of celebrating your birthday and all of last year's accomplishments with the people you care about. Can it be that this dreary weather and limited hours of light are affecting your spirit? You've an excellent money management plan in place. You needn't fret, please rejoice!

  8. FrugalTexan75 Says:
    1390524041

    Could you have a birthday blowout potluck? Have your friends come for a get-together that doubles as a celebration of your 40th? That way you still get to celebrate it, but it wouldn't be a big budget buster. Maybe have it adults only (so splurge a bit on babysitting) so you can have adult drinks if you want?

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