Archive for April, 2014: Retired To Win

What My Unfrugal Side Costs Me

April 4th, 2014 at 12:18 pm

Frugality without sacrifice is my spending motto*. But does the "without sacrifice" part sometimes push me over the edge into unfrugality? I took a close look at where my money goes and found quite a few items I could spend less on. So here is the rundown on what those items are, how much extra they are costing me, and what (if anything) I am going to do about it.

Baseline Spending**: An Extra $1430 a Year for Unfrugality
Groceries. Because it helps me control my weight and maintain good blood numbers, I pay an extra $20 a week to eat a meat-and-veggies diet without rice, pasta or potatoes. That is an extra $1000 a year.

Medical Checkups. Because I want to stay on top of my health, I get quarterly checkups instead of the standard annual one. That is an extra $60 a year in co-pays. (Thank goodness for insurance.)

Dental Cleanings. Because I hate having dental work done, I get quarterly cleanings instead of the standard semi-annual ones. That is an extra $170 a year.

Vehicle Maintenance. Because of their servicing system and convenience, I pay more to take my truck to Jiffy Lube instead of a local service station. That is an extra $200 a year.

What will I do about that extra $1430 a year in baseline spending? Nothing. All of it keeps either me or my truck in top running condition. And that, as they say, is priceless.

Discretionary Spending***: An Extra $1020 a Year for Unfrugality
Coffee. Because I like the taste so much, I pay an extra $10 a pound (!) to drink Tully's French Roast Keurig K-cups instead of drip coffee. That is an extra $180 a year.

Books. Because I love collecting them, I pay an average $5 a book instead of borrowing at the library. That is an extra $120 a year.

Motel Stays. Because I want the amenities it offers, I pay an extra $20 per night to stay at Best Western instead of Knight's Inn or Motel Six. That is an extra $480 a year.

Scotch Whiskey. Because I want the smoothness and the taste, I pay an extra $15 a bottle for Chivas Regal over a common brand. That is an extra $150 a year.

Beer. For the same reasons as for Scotch, I pay an extra $5 a six-pack to drink Beck's instead of Bud (or Old Milwaukee!). That is an extra $90 a year.

What will I do about that extra $1020 a year in discretionary spending? Nothing. All of that money comes out of my discretionary fund*** which is there precisely for guiltless spending on whatever I want.

All told, my unfrugal side is costing me $2450 a year. But that is less than 10% of the annual surplus cash I have after covering my $18,000 annual baseline budget**. So I think I will give myself a break and let it be.

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*My Financial Independence Key:
http://retired-to-win.savingadvice.com/2013/12/17/my-financi...

**My $18K Annual Baseline Budget:
http://retired-to-win.savingadvice.com/2013/12/29/my-18k-ann...

***A Discretionary Fund, Not a Discretionary Budget:
http://retired-to-win.savingadvice.com/2014/03/29/a-discreti...

Posted in Financial Planning My Way | 5 Comments »

Time Traveling With History Books

April 3rd, 2014 at 01:08 pm

On any given day, you might find me sailing an early Viking ship along Sweden's Baltic coast. Or hunkering down behind a pile of rocks awaiting a Confederate charge at Little Round Top. Or inside a field tent in front of Orleans, listening to Joan of Arc detail how the French assault should proceed. Anything, anywhere, anytime is possible to me thanks to my library of history books.

Since June 2006, I have read a total of 110 history books. (Yes, I log them.) Biographies such as CharleMagne by Derek Wilson. Campaign accounts like Revolt in the Desert by T. E. Lawrence. And overviews of entire long-gone civilizations such as The Hittites by O.R. Gurney.

I have gotten to know individuals (whose personal impact was so strong that it reverberates through the ages) such as Leonidas of Sparta, Boudica of Britain and Alexander of Macedon. I have learned about peoples and countries I never knew existed such as Parthia and the Icenae. And I have "witnessed" from afar events that changed the course of history. The fall of Constantinople to the Turks in 1453 AD. The Norman victory over the Saxons at the battle of Hastings in 1066 AD. The conclusive repulse of the Persian Empire by the Greeks at the battle of Platea in 479 BC. And so many other world-changing events.

All that and much more is easily accessible to me thanks to my collection of history books. All bought at bargain prices at flea markets, used bookstores and discount outlets. All carefully organized and displayed on my own built-in library shelves. An indulgence I can readily afford thanks to my very frugal spending on core living expenses*. And a very important part of my living experience in my financially free retirement.

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*My $18K Annual Baseline Budget:
http://retired-to-win.savingadvice.com/2013/12/29/my-18k-ann...

Posted in Retirement Living My Way | 2 Comments »

Home Warranties Work For Me

April 2nd, 2014 at 11:10 am

When you own your own home, you have to be ready for unexpected repair costs at any time. And sometimes that can get expensive. But home warranties have kept my repair costs way down and made it easier to get things fixed.* Here is my 14-year experience.

I learned about home warranties when I bought my second house in 2000. That house came with a home warranty provided by the seller. If any appliance or operating system (plumbing, electrical, etc) in the house failed, the warranty would cover its repair or replacement minus a set $100 deductible. "Nice," I thought, "an extra little peace of mind." And then I promptly pushed the warranty to the back of my mind -- until the gas furnace failed to start up a couple of months later.

Getting a home system fixed isn't just costly; it is also a stressful hassle -- especially when you are new in town, as I was. Who do you call? How do you know they will do a good job? How do you know you are paying a fair price? Getting those questions answered takes time and trouble. And sometimes you have to learn by trial and error. But having the home warranty changed all that for me.

I got my hands on the home warranty booklet, verified that furnace repairs were covered (hurray!), and phoned the repair request number in the booklet. And... presto! In just a couple of minutes, the claims agent gave me a repair approval code number and the contact info for an approved furnace repair company. So I did not have to search for one myself. And the warranty company would guarantee the service outfit's work. I did not have to worry about that problem, either.

So I contacted the service company, gave them my repair approval code number, their technician came and replaced some expensive gizmo in the furnace, and I just paid a $100 deductible. Problem solved. Case closed. And I was sold on home warranty policies.

Since then, I have had home warranty policies on 3 different houses in 3 different towns. I have had many electrical, plumbing and heating problems solved under those warranties. Twice I have had to ask the warranty company to rework a problem, and both times this has been done without argument. And I have had several items replaced outright: a well pump, a large refrigerator, a clothes dryer, an entire set of incoming water lines. In my experience, having a home warranty policy has been a complete success.

Financially I am also satisfied. My annual cost for a home warranty policy has averaged around $500 and fit with no trouble into my $18,000 annual baseline budget**. Aside from the $100 per call deductible, I have been totally shielded from large repair or replacement bills. I have contained my home repair costs and avoided nasty cost surprises.

In short, having a home warranty policy has given me much more control over my expenses. And it has reduced my level of homeowner stress. Home warranty policies have certainly worked for me.

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*Repair It or Replace It?:
http://retired-to-win.savingadvice.com/2014/03/31/repair-it-...
**My $18K Annual Baseline Budget:
http://retired-to-win.savingadvice.com/2013/12/29/my-18k-ann...

Posted in Financial Planning My Way | 2 Comments »

Index To All My Financial Planning Posts

April 1st, 2014 at 11:08 am

This index consists of a title link list to all my posts in this category. I will edit/update this post each time I publish a new post on a financial planning topic. And I will set/update the order of that list so that it has as much thematic continuity as possible, regardless of when each post was published.

I hope this makes it easy for visitors to my blog to browse and access all my posts in an organized manner. And here is the list.

Index to All My Financial Planning Posts
(Updated October 29, 2014)

When My Financial Freedom Ducks All Fell In a Row:

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Posted in Financial Planning My Way | 1 Comments »

Retired To Win

making the most of my time and my money

Archive for April, 2014

What My Unfrugal Side Costs Me

Time Traveling With History Books

Home Warranties Work For Me

Index To All My Financial Planning Posts