personal finance structuring

Hi again reader,

Before Al and I got married, our accounts were totally separate. We had a number of conversations about whether or not to combine our finances, and to what extent. At the time, we ultimately decided to keep one or more accounts in our individual names, and then open joint accounts from which we would pay bills.

Since we’ve recently started digging into our finances, I’ve become increasingly frustrated with the way that we’ve been managing our accounts, so we decided to make some changes, and things are now structured like this (some of this has changed, and other parts have remained the same over a long period of time):

  • Joint credit card: This is the card we use the most, where we get our cash back, etc. We pay off all of our credit cards every month. We also have a Lowe’s card (only ever used at Lowe’s) and will soon be closing another credit card.
  • Joint checking: This is where we pay our bills from, including the joint credit card. Auto-payments for recurring expenses come out of this account. We both contribute to it from our personal checking/savings (see below).
  • Joint emergency savings: This is for true emergencies. We are establishing a goal that’ll allow us to pay at least 3 months of our mortgage plus a bit more. We may up it in the future to include more expenses, but for the short term (and because we have the next account), we’re not going to include all monthly expenses.
  • Joint house savings: This account allows us to save for house projects. In the past, we’ve just waited to do larger projects until our joint checking filled up enough, but we wanted to be much more intentional about the way that we do these projects. We will contribute to this account regularly, and when we have a project that we want to tackle, we’ll deplete it (by using our joint credit card and paying it off with this account so that we get the cash back) and then rebuild it.
  • Personal/individual checking and savings accounts: My paycheck gets deposited into my personal checking account, and then I divvy up the money for the above-listed accounts. After each paycheck, I keep a few hundred dollars in both my personal checking account and also my savings. If I use my Target debit card to save 5%, it comes out of my checking, and I use my personal savings for things like buying gifts for my husband. I honestly don’t keep track of the intention of his personal accounts, because he’s very diligent about transferring the money and never misses paying bills; however, I can see these on Mint if I need to.

We can see everything on Mint.com, with the exception of Bo’s 529, since that’s not money for us. All of our accounts (checking, savings, credit cards), debts (just our mortgage right now), investments (our 457b deferred compensation), property/assets, etc. can be seen by both of us. I think it works really well for us.

Do you manage your own finances, share responsibilities, or split the responsibilities? I am always curious as to how others manage their personal finances! Do you have questions or suggestions for us? Drop a comment below, reader!

Cheers,
Mel

the non-FIRE-friendly car

Hi reader,

This has proven to be a painful post to write, because it’s very authentic to the internal struggles I’ve had about a recent purchase. Until recently, Al and I each had a compact car (two of basically the same car in different brands). My husband had his car since 2009, and I had mine since early 2011. They were both paid off in or before 2012. We also inherited a somewhat unreliable work truck from Al’s dad when he passed away.

Initially, I wanted to buy a new car before Bo was born. We had Bear dog already, and our cars were so small. We started the conversations, but held off. Then Al’s mom moved in with her own compact car. We then had 3 compact cars and a truck. Al is 6’6″ and his mom is 6’1″. I am 5’8″, the car seat is… huge, and the dog is a chunk.

The breaking point was when we all decided to go our favorite trail spot, about 10 minutes from our house, and my MIL’s knees were in the dash, my knees were digging into the back of the seat, and the dog was on my lap. It was officially time to car shop, so I sold my low-mileage 2008 car for a price I was happy with: $4,500. We also made the plan to sell the truck toward the end of the summer, when we’re done using it for some backyard projects.

The week that we went car shopping was the week that I first heard about FIRE.

But, sometimes these things take time to sink in, time to wrap my head around. We had saved enough to buy a 3rd row SUV, and that’s what we did. We purchased a brand new Subaru Ascent for the whopping total of around $45k (including registration and taxes), in cash.

Thar she is. Or he. The car’s gender is still up in the air.

I have such mixed feelings about this car. On one hand, we could clearly afford it, at least on some level. We had the money in cash! On the other, there’s so much else we could have done with the money. With three (tall) adults, a dog, and a massive car seat, the space is not taken for granted. This car is 100% not FIRE-approved, and I definitely have some buyer’s remorse about the price. Just kidding, it’s a lot of buyer’s remorse. But only about the price, the car is frickin’ awesome. I do realize that we could have gotten something a lot more modest, for a much lower price. There’s no justifying that price when you think about the path to FIRE.

Prior to the FIRE discovery, our motto was (more or less): Buy less stuff, but the stuff we buy and that’s important to us can be really nice. We usually hold out for a long time for new things, and then get really quality (and sometimes indulgent) items. This can be a good and bad philosophy: on one hand, we buy fewer items than our peers, and the items tend to last a long time. On the other hand, we tend to spend too much on the things we do buy. This car is case in point.

This car could (literally) last us 20 years, as we carpool to work and only had a combined total of ~130,000 miles on both of our old cars, prior to me selling mine. And we also know that this will likely be the most expensive car we ever own. It will be the car Bo grows up in, we go camping in, etc. When Al’s car dies, we intend to replace it with a moderately inexpensive electric car, and probably commute in that car. Hopefully we have a few more years before that happens. We’ve also talked about only sharing a single car between the two of us, since we carpool (and could use my MIL’s car in a pinch).

However, if this car no longer serves a solid purpose in our lives, we will sell it. I can’t fathom doing that right now, since we’ve fully utilized it multiple times per week since we’ve gotten it. However, my (new) FIRE mindset is starting to allow me to be open to alternatives in my life that I wouldn’t have considered before. And so, reader, I will be more open with this purchase, and future purchases, to make better decisions when the opportunity arises. And this has been a big, giant, expensive, luxurious lesson in life and on the path to FIRE.

What do you think about our future car plans? Go electric? Share a car? How have you handled a large purchase for which you have buyer’s remorse?

Cheers,
Mel

update: garage sale

Hi reader,

Quick update here. Including the amount in the original post, and by selling the remainder of items on Facebook Marketplace, we sold right around $400 worth of baby items. I have some things left, which I will gift to a friend or two, and then donate the rest. It feels great to be nearly at the end of this endeavor. I am tired of answering messages and having people drop by the house. I am ready to be done, and quite happy with what we made.

We’ve had some family in town for a few days, which has been great! But it’s back to the grind as I get settled back in. What’s new with you, reader?

Cheers,
Mel

money in the attic

Reader, guess how much money I had sitting in my attic for 2+ years? $140!

Every year our community has a garage sale. Which is awesome, because it draws out more people, and because I get to chat with my neighbors (which, admittedly, I don’t do often enough).

Clothes galore!

I don’t always have stuff to sell, but since Al and I decided for 99% sure that we are one & done on the children, it was time to get rid of Bo’s baby clothes. It wasn’t really easy for me, if I’m being honest. There were a lot of sentimental items in there.. a lot of really sweet times happened while she was wearing those clothes. But ultimately, it was time. Whereas I am not normally a very sentimental person with regards to tangibles, I did save just a few sentimentals (such as the first onesie and first shoes, but not much more than that).

Garage sales hit primarily on the “reuse” and “recycle” aspects of the 4R blog. I am so thrilled that people will use the (literally) hundred+ items we sold. We didn’t have many big ticket items (the most expensive was around $10), and most things sold for $0.50 or 3 for $1, so it’s a great feeling that these items that were sitting in my attic are going to be used by others… and people paid me money for these things!

These haven’t sold yet; look at the sheer quantity.

There are many items that didn’t sell (yet). My last ditch effort for these is listing them on Facebook Marketplace at a much more reduced price, in hopes that someone who needs them can use them. If they don’t sell there, they’re going to Goodwill. These clothes are in mostly great condition, used by (primarily) a single child in a clean, non-smoking home, who only spit up a handful of times. I even made a box that could clothe a single child (for a whole year!) from newborn to one year old and listed it for around $50. Imagine how much I would have saved if I didn’t buy a single item for her full first year outside of a $50 box of clothing! It would have been hundreds.

…and even more

There was one container of things that I took straight to Goodwill. Just a bunch of little odds & ends, not worth trying to sell. I also had a bunch of baby items that were not clothing… bottles, baby carriers/wraps, etc. Some sold, some didn’t. The things that didn’t got listed online.

I felt very productive with the sales that I made today. I’m planning on using the money that I got to go to a second-hand boutique to see what I can find that might fill some blank spots that are left in my wardrobe after I purged so many items. If anything’s left over, the remainder will be used towards hosting family that we have coming to town, or to cover other primary expenses.

Tell me, reader, what good deals have you come into? What items have you sold that have gotten a second life with another family?

Cheers,
Mel

the power of community

Hi reader!

Pacific Northwesterners are not known for their warmth and friendliness but for being polite, yet cold, to others. People say it’s hard to make friends and many feel isolated. And while I can see that mentality occasionally, such as in a crowded public place, I have made wonderful friends as an adult.

I often see people help each other out, and as I get older and adult friendships become more established, I increasingly see the value beyond the emotional. I see friends help each other move, people bring in food to share at work (the GovJobs are especially terrible for the waistline), and I often see the exchange of goods between friends. When someone doesn’t need something that someone else does, I see a ton of hand-me-downs.

For example, I recently went through my bathroom products to get rid of excess and reorganize. I am a notorious product hoarder, and it got really bad after I had Bo (I have genetically and chronically dry skin and my hair was falling out… I was trying everything but nothing was working!). I’ve been wanting to combat the urge to keep things I don’t use. Since all of the products were open and not brand new, I knew I couldn’t return them. I asked a friend who works with the women’s shelter, and she said that they would not take them because they were open. But, if I didn’t want them, she would take them and share them with her daughter! So I just handed them off! Some of them had barely been used, so I’m sure there was quite a bit of value in there:

And just this week, I have a different friend who is moving. Her kids are teens and she’s getting rid of Leogs. LEGOS! I asked how much she wanted for them, and she said nothing and offered them to me. With a kiddo who is getting close to the building age, I took her up on that in a heartbeat.

It’s a great feeling to be building community around me. I enjoy having friends, coworkers, and family (such as my MIL) that actively find opportunities to help each other out.

Tell me about opportunities that your community has taken to help each other out? Do you feel that you have a large and broad community? Close and tight-knit?

Cheers!
Mel

reducing expenses – small changes

Happy Tuesday, readers!

In the personal finance realm, I often read that people should reduce their expenses. Obviously that means spend less money. Especially on things that are not important to you. I’ve been looking for ways to reduce recurring expenses (in addition to reducing my food costs, of course). I like seeing real examples so here are three small changes we made recently that will reduce our spending.

  1. Downsized our garbage service: Saving $20/mo. When we started garbage service after we moved in to our house, we got the second smallest garbage can, a standard huge recycle bin, and a yard waste bin. After we had Bo, we needed to increase the size of the garbage can. Now, we rarely fill it up, and almost never fill up our yard waste. Downsizing our garbage can and stopping yard waste service all together is saving us quite a bit of money for making pretty much no change in our lives. Our yard waste goes into the compost bin anyway, and if it doesn’t belong in there, we can take it to the dump or, better yet, see if a neighbor has space in their bin!
  2. Stopped getting my eyebrows done: Saving $20 every other month. I used to get my (very unruly) brows done every other week, but when I got my GovJob (6+ years ago), the brow salon proved too far to go regularly so I was down to once every couple months. Last time I went I thought to myself “I could have done them better anyway”, which would save time AND money. So I did, and they look great and from now on I will spend $0 getting my brows shaped.
  3. Bought cloth napkins: Will start saving us money if we use them for more than a year (and then will save about $20/year). We buy the $9.99 Costco 4-pack of 260 napkins (1,040 napkins total) and since there are 4 of us in the house, we probably go through them pretty fast by using more than 1 per day (we do have a toddler, after all). The cloth napkins were right around $20 on Amazon. We used to use cloth napkins but for a couple years, we’ve been buying paper/disposable napkins. The environmental guilt definitely got to me more than the money on this one.

Those are my examples of small ways that we’ve reduced expenses lately. What other small changes have you made that lower your expenses or impact on the environment?

Cheers,
Mel

reduce, reuse, recycle, retire

Dear Reader,

Welcome to the club! My internet name is Mel, and the purpose of this blog is to document my family’s journey into intentional living, with an ultimate goal of early retirement thrown in there (but not too early, more on this later). Our family consists of my husband Al, our toddler Bo, my mother-in-law, and our dog Bear.

So, why “reduce, reuse, recycle, retire”? These four r’s sum up our plan to get where we want to be, in the manner that is important to us. But it’s not about recycling trash (though hey, that’s great!), it’s about:

  • Reducing spending, unnecessary consumer purchases, and waste;
  • Reusing items where we can and buying reusable items where it makes sense. This also includes giving away or selling items so that they don’t end up in the landfill;
  • Recycling what is no longer useful;
  • Retiring early by increasing our savings rate, while focusing our spending and energy on what is truly important to us.

We’ve been doing a lot of research, reading, and podcast-listening lately, which has started to subtly shift the trajectory of our lives. And while I am a late-adopter to some of these philosophies, my husband seems to be quite the natural for things that I find challenging (like frugality!). And although we are just starting to step off of the path we have been walking, my intent is to be authentic with this journey, the good and bad, and to find the path that fits.

Through this blog, I look forward to finding some like-minded people, who might be walking (or running) a similar path. People who are authentically sharing their successes and stumbles, tips and tricks! Drop a line and let me know who you are and how you’re living intentionally.

Cheers,
Mel