Wednesday, September 28, 2016

How detailed is your retirement budget?

Earlier this week The Frugal Queen asked if we have really budgeted for everything. I'd have to answer no as I base the year's budget on last year's expenses and known increases in things like health and car insurance or property taxes.

Some people keep separate online account "envelopes" to save in advance for the rare and/or unknown expenses that pop up be it car or dishwasher replacement, vet expenses or whatever. We keep general savings and investment accounts.

This month's unbudgeted and unexpected/unplanned expenses have me wondering if that is the best approach once we are living on retirement income. Just yesterday it was a new car battery for our older car - $166 that was not included in the annual servicing & licensing budget. We do budget for poodle princess's monthly shot, meds, annual exam & grooming, but this month she had lots of tests and changes in meds and food - $718 and a substantial financial gift to elderly relatives who are struggling financially.

I have no problem with any of those expenses and am happy we can afford them. However, I didn't really budget for any of them and I'm wondering if there is a change that would be helpful to try as I know our first year or so of living on retirement cash flow is going to take lots of adjusting and planning.

Please share your ideas and experiences!


  1. Now that we are retired we don't have a written budget. When we were working we budgeted an amount for "unknown expenses" since they always occur, you can count on that.

  2. I'm afraid the only thing we can be sure of is the fact that none of us can possibly know how much money we will need for retirement. My husband and I have saved our entire married life, and have lived beneath our means, but we're still leary,at times, about having enough. Sometimes we have to simply have faith that the future will be okay--somehow.

    1. How true! We did do some financial planning projections about 10 years ago with the assumption that we would live to be 100. My Mom made it to 93 and my FIL will be 90 in February so not out of the question.


Celebrating Father’s Day, tree removal & a Hawk Moth - Thriving week 25

My DIL thought the moth that was in my front yard is a Hawk Moth. It is a White-lined Sphinx (or Hawk) moth. That is a new one for me but it...