UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next
Author: pedorrero Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1491  
Subject: Re: Retirement Budgeting Date: 10/23/2006 10:02 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Home improvements? I'm proud that this (the third home I've owned in 7 years), that it'll be the first that I stayed in > 2 years so I can keep the capital gains when I sell.

In this case, it's a new house (< 3 years.) Even so, there have been some repair issues already. Hmmm, maybe I should budget those "unexpected" repairs.

Also, I am of a personality type that doesn't seem to remain long in one place. The longest I've ever lived at one address was 5 years, by my reckoning. Also, my first two homes were older units that did have a lot of repair or rennovation during/after my residence there, so in that sense I see the value of improving a home. Since my current home is virtually new, I will probably defer the non-critical repairs until it's time to sell it...that is probably standard practice anyway. I know that a refrigerator can die, or a pipe get clogged, or a water heater die ... because those exact things have happened in homes I've owned.

I think what I was driving at in my first post was that, a form of budgeting, get an accurate picture of what the known costs are (the "lower bound" to use a college term), and then you can estimate what upkeep might be (0.1% of home's value, per month is a rule o' thumb). Similar for health insurance: I know what my annual costs are, but don't know when or if I'll have a major costly crisis. Even some fairly minor health issues have cost an extra $1000 or $2000 in my already tight budget. Add to this my current car, an old bomb ('93 Saturn) still running well, but at 180+ K miles (BTW, the odometer no longer works...), huge repair bills come with the territory.

I'm a candidate to reduce my expenses, some are relatively fixed (the home), but still room to cut. In my case, I eat out a lot, even a McLunch costs something. I like to travel, but even cheap travel costs money.

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement