Actual MM ? Coming up short

[Deleted]

Sounds like you've had some one-time expenses, glasses, medical, and Christmas. To me that's what savings is for, so I'd be fine with that and I wouldn't cut back on your savings. When I have so many one time expenses like this, I try to tighten my belt a little, cut back on eating out, no random Target trips, eat down the pantry, etc.

[y4m]

Are you pulling $500 after depositing $800? So really you're saying you're only saving $300 when you want to be saving $800? Or are you not saving in addition to the -$500?

[spankswife]

We are sort of in the same boat, except the beginning of the year our income is higher then the end of the year, so I find I am pulling from savings Jul-Dec.

I feel like it is ebb and flow. We don't buy anything ridiculous, and we are comfortable enough where I am not cutting cable, or a little shopping, quick nights out to eat, or in you case the house keeper.

ETA - I wouldn't;t change your contribution to savings, bc then you WILL spend it for sure, I know I would!

[Deleted]

You can't both have it all and save it all.

It's probably fine to know you're going to be saving less while paying daycare and a car loan. I'm pretty comfortable living close to zero-sum on our budget as long as we've got retirement covered off the top.

[L]

Coming up short = spending more than you make. That's not what this is. You're just saving $300/month instead of the $800 you want to be saving.

But semantics aside, if you want to save $500/month more than your actual current numbers, then you need to find $500 to cut from your monthly spending. How you want to do that depends on your priorities, but it's all just math.

[dancingirl21]

I pretty much could have written your post as well. We don't budget and spend pretty freely, but instead of saving the $1k that we put in savings per month, the last several months it has been more like $500. There are definite ways that we could cut back (instead of eating out 2+ times per week, we could always cook; I don't NEED to buy everything organic; the cleaning lady could go (though lord help us if she did), I don't NEED those new Puma shoes I just bought yesterday, etc.) J is 16 months, so nanny costs will not go down soon and we also will not stop contributing the amount we are to his 529/our savings.

For us, we will have one month of spending, spending, spending and then reel it back in and have a month where we try to be cognizant of where our money is going. It has helped and when we really do budget and think about where our money is going, we do save the amount we want.

[iheartbanjos]

Nov 21, 2014 9:54:15 GMT -5 toriwc said:

But I guess what I am asking is, I'm pulling from savings, but I'm still contributing to it every month, so should I just lower the contribution to $300 instead of the $800?

Ummm, yes, lol. Don't sweat it!

If it were me, I would move to a cash only system for a couple months.  A girl needs make up, I totally get it, but would you have been willing to cut from somewhere else to get $160 worth of make up, or would you have bought only what you really needed?

Also, we're looking at the 11th hour for Christmas savings, so have you saved specifically for Christmas? We use our daycare flex spending to fund Christmas, so that we know we've budgeted for it. It comes every. single. year. so there's no reason to be caught off guard by it.

I have 2 in daycare too. It's crazy, but there will be after school care after this, and I anticipate sports and activities fee to only increase. Also, we'll have to continue to kick up 529 expenses after this.  Kids are leeches. Cute, funny little leeches.

[Deleted]

It's hard to say without knowing the bigger picture. You say your efund took a hit -- but how many months of expenses does $19,000 represent now? If I were trying to rebuild a financial cushion, then I wouldn't want to cut savings. Also, it's hard to tell from your numbers what $800 represents -- 10% of your take-home? 20%? If you're spending within $300 of your take-home pay every month, you may be cutting too close to the bone. At least if you AIM for $800 in savings, even if you don't make it, you'll be in better financial shape than if you aim for $300/month in savings.

Finally, I wouldn't necessarily think, oh, when we're done with daycare in a few years, we'll get a reprieve. Even if you do public school, you'll still have aftercare, sports and other extracurriculars, summer camp, etc. So I would live tighter now instead of living on the extra money you're think you're going to have in a few years -- because that extra money may never materialize.

[Deleted]

I personally wouldn't change anything. I'd shoot to save $800 but if you only save $300 some months, you're still doing just fine.

Of course, I don't save anything most months so take my advice with a grain of salt But really, I am not a fan of living in a way that makes you feel deprived just so you can stockpile cash. As long as you aren't spending $160 at Sephora every month, an occasional splurge is well deserved and worth it.

[hulley]

I remember barely saving anything when DD was in preschool ($10K a year). We just saved what we could, when we could. Once she went to public school, it was like a windfall. I saved aggressively then to make up for the few years we paid daycare.

[noodleoo]

Wow, you are paying $1300 for 2 in daycare? 

I feel like this time of year tends to be expensive.  Between traveling for the holidays, parties, gifts, etc, we usually spend more at the end of the year.  But then we make it up in Jan thru March when we stay home and hibernate and tend to spend less.  Since you are still putting money into savings and maxing your retirement, I think you are doing okay.  I'd probably not sweat it too much and maybe try to reign in after the New Year.  If you are still saving less than you'd like a after a few months, then I'd probably reevaluate the budget.  But for now, I definitely don't think you need to return your Sephora order!  I think you are doing okay and pulling from the e-fund for surprise expenses is what it is there for.

[raangoli]

Nov 21, 2014 11:58:32 GMT -5 noodleoo said:

Wow, you are paying $1300 for 2 in daycare? 

I assume the is because that seems so low? That would be a bargain for one child where I am! 

And to the OP - I wouldn't sweat it too much. Sure it sucks right now, but after the holidays you can get back into super savings mode.

[noodleoo]

Nov 21, 2014 12:03:48 GMT -5 toriwc said:

Nov 21, 2014 11:58:32 GMT -5 noodleoo said:

Wow, you are paying $1300 for 2 in daycare? 

I know, right? So lucky. And it is a 3 star facility in our state (highest voluntary ranking there is). And we only pay for what we use, so we don't pay in the summer when I am off, unless I send the kids.

I'm looking at daycares now and $1350 per month for one is considered cheap.  It kills me.  

[noodleoo]

Nov 21, 2014 12:11:13 GMT -5 toriwc said:

Nov 21, 2014 12:08:11 GMT -5 noodleoo said:

I'm looking at daycares now and $1350 per month for one is considered cheap.  It kills me.  

I'll just shut up now then ;P

It is amazing to me the COL differences. My sister was paying $1800 for one child just an hour away from me, and it was a 2 star facility. I know we are really fortunate.

Oh no, you are fine! I didn't mean it that way. It is just tough living in HCOL. I think about moving somewhere cheaper (and warmer!) a LOT. Even more now. But it is hard to think about moving since H and I have both lived here our whole lives.

But I was watching House Hunters this weekend and it made me want to cry... we could buy a house for cash in Atlanta and have a pretty nice life.  

[ESF]

LOL only on MM is someone with $19,000 in the bank told to return a $160 Sephora purchase because they can't afford it.

Look, it sounds like things are fine. It sounds like maybe right now, saving $800 is a stretch. There is no shame in that. That's a lot of money for a lot of people. If saving $300 is not enough to meet your goals, you can probably figure out how to get that up to $500 or something without much effort, particularly given that it sounds like you've had a few unusual purchases lately.

Ultimately, though, it doesn't really matter what your bottom line looks like at the end of any given month, it matters whether, in the grand scheme of things, you are moving ahead and meeting goals. I would look at it from the vantage point of whether you are meeting your annual goals, and try not to sweat the small stuff.