Comments on: Short, Middle, and Long Term Savings http://www.livingalmostlarge.com/2008/09/12/short-middle-and-long-term-savings/ Trying to live large ...one step at a time Thu, 18 Mar 2010 14:57:04 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: chris http://www.livingalmostlarge.com/2008/09/12/short-middle-and-long-term-savings/comment-page-1/#comment-3039 chris Fri, 12 Sep 2008 17:52:02 +0000 http://www.livingalmostlarge.com/?p=1363#comment-3039 Trying is better than 99% of the rest of the world. I don't think we as a society have done a good job of understanding the total cost of an acquisition. And that's why too many keep sinking and falling further and further behind. Until a few years ago, I would have never considered trying to find costs for repairs and maintenance so I could anticipate and save for them. Simply identifying that the cost could come down the pike and acknowledging that something needs to be done about it puts you way ahead of the pack. Trying is better than 99% of the rest of the world.

I don’t think we as a society have done a good job of understanding the total cost of an acquisition. And that’s why too many keep sinking and falling further and further behind.

Until a few years ago, I would have never considered trying to find costs for repairs and maintenance so I could anticipate and save for them.

Simply identifying that the cost could come down the pike and acknowledging that something needs to be done about it puts you way ahead of the pack.

]]> By: LivingAlmostLarge http://www.livingalmostlarge.com/2008/09/12/short-middle-and-long-term-savings/comment-page-1/#comment-3040 LivingAlmostLarge Fri, 12 Sep 2008 17:32:58 +0000 http://www.livingalmostlarge.com/?p=1363#comment-3040 I just don't like using an EF for things that aren't major. The items either have to wait or I should have planned for it. I'm not there yet but I'm trying. I just don’t like using an EF for things that aren’t major. The items either have to wait or I should have planned for it.

I’m not there yet but I’m trying.

]]> By: chris http://www.livingalmostlarge.com/2008/09/12/short-middle-and-long-term-savings/comment-page-1/#comment-3046 chris Fri, 12 Sep 2008 16:07:39 +0000 http://www.livingalmostlarge.com/?p=1363#comment-3046 I really try to seperate my emergency fund from my sinking funds. I know a lot of people don't. For example, if the roof begins to leak, then the EF covers it. I don't think that is a strategic use of the EF. I've been trying to assess the annual cost of repairs for autos and homes. I'm finding about $1500 for the average car annually and anywhere from 1-3% of the value of a home depending on it's age and condition as an annual repair cost. As I begin to age, I probably need to factor some health care costs too. I really try to seperate my emergency fund from my sinking funds. I know a lot of people don’t. For example, if the roof begins to leak, then the EF covers it. I don’t think that is a strategic use of the EF.

I’ve been trying to assess the annual cost of repairs for autos and homes. I’m finding about $1500 for the average car annually and anywhere from 1-3% of the value of a home depending on it’s age and condition as an annual repair cost.

As I begin to age, I probably need to factor some health care costs too.

]]> By: Livingalmostlarge http://www.livingalmostlarge.com/2008/09/12/short-middle-and-long-term-savings/comment-page-1/#comment-3045 Livingalmostlarge Fri, 12 Sep 2008 15:20:13 +0000 http://www.livingalmostlarge.com/?p=1363#comment-3045 Christmas, vacations, insurance, property taxes, etc. Stuff coming due this year that isn't due monthly maybe. I know I needed worked done annually on our home so $5k/year or $480/month. It's not the roof but other issues. Stuff that you know is coming soon. Car repairs for $1200/year at our cars ages of 8 and 9 years is reasonable I think. Plus tires, oil changes, etc. Things like that. Christmas, vacations, insurance, property taxes, etc. Stuff coming due this year that isn’t due monthly maybe. I know I needed worked done annually on our home so $5k/year or $480/month. It’s not the roof but other issues.

Stuff that you know is coming soon. Car repairs for $1200/year at our cars ages of 8 and 9 years is reasonable I think. Plus tires, oil changes, etc.

Things like that.

]]> By: JB http://www.livingalmostlarge.com/2008/09/12/short-middle-and-long-term-savings/comment-page-1/#comment-3044 JB Fri, 12 Sep 2008 15:18:42 +0000 http://www.livingalmostlarge.com/?p=1363#comment-3044 Nevermind... I re-read it. I guess I would combine short and mid term savings because they seem to have similar goals. Unexpected expenses. Nevermind… I re-read it. I guess I would combine short and mid term savings because they seem to have similar goals. Unexpected expenses.

]]> By: JB http://www.livingalmostlarge.com/2008/09/12/short-middle-and-long-term-savings/comment-page-1/#comment-3043 JB Fri, 12 Sep 2008 15:17:14 +0000 http://www.livingalmostlarge.com/?p=1363#comment-3043 What are your short-term savings for? What are your short-term savings for?

]]> By: Livingalmostlarge http://www.livingalmostlarge.com/2008/09/12/short-middle-and-long-term-savings/comment-page-1/#comment-3042 Livingalmostlarge Fri, 12 Sep 2008 15:07:46 +0000 http://www.livingalmostlarge.com/?p=1363#comment-3042 I think it's the planning of the midterm savings goals that are hard. Most people don't have a lot of give in the budget to allow for unexpected budget busters! I think it’s the planning of the midterm savings goals that are hard. Most people don’t have a lot of give in the budget to allow for unexpected budget busters!

]]> By: Kristy http://www.livingalmostlarge.com/2008/09/12/short-middle-and-long-term-savings/comment-page-1/#comment-3041 Kristy Fri, 12 Sep 2008 14:48:01 +0000 http://www.livingalmostlarge.com/?p=1363#comment-3041 We maximize our retirement accounts for long term saving. We have an emergency fund. I keep about $5,000 in savings for an emergency and we invest the rest in taxable accounts and college funds. If we want to go on vacation, then we save up and go. If our car needs repairs, then we have it in our savings account. Our budget is very lenient. We maximize retirement and save an additional $2K or more a month (most months). Neither of us are spenders so we are content with our lives. Plus we have one young DD and another on the way, so just picking up and traveling is not really an option right now. We maximize our retirement accounts for long term saving. We have an emergency fund. I keep about $5,000 in savings for an emergency and we invest the rest in taxable accounts and college funds. If we want to go on vacation, then we save up and go. If our car needs repairs, then we have it in our savings account.

Our budget is very lenient. We maximize retirement and save an additional $2K or more a month (most months). Neither of us are spenders so we are content with our lives. Plus we have one young DD and another on the way, so just picking up and traveling is not really an option right now.

]]> By: SP http://www.livingalmostlarge.com/2008/09/12/short-middle-and-long-term-savings/comment-page-1/#comment-3038 SP Fri, 12 Sep 2008 14:06:03 +0000 http://www.livingalmostlarge.com/?p=1363#comment-3038 Good thoughts. I agree mid-term is the hardest. I refuse to neglect my retirement, I can't neglect short term (the bill will come soon anyway), but it seems quite easy to neglect my "car fund", even though if I wanted a car in the next couple years, I should be saving several hundred a month. I sort of plan on using part of my E-fund, if necessary, since I set a goal higher than what I'd expect to need. However, there is a base level that I'd never touch. Good thoughts. I agree mid-term is the hardest. I refuse to neglect my retirement, I can’t neglect short term (the bill will come soon anyway), but it seems quite easy to neglect my “car fund”, even though if I wanted a car in the next couple years, I should be saving several hundred a month.

I sort of plan on using part of my E-fund, if necessary, since I set a goal higher than what I’d expect to need. However, there is a base level that I’d never touch.

]]>