I'm suddenly having a waive of regret for my lavish spending in my single days (I'm being slightly sarcastic as I don't think I was that lavish). But then again, there are things I could have been more frugal about. There was one roommate I had who was so good with her money, within a year of working, she had enough to pay all cash for a car! I always laughed at how careful she was being, but now I'm jealous. All those dollars wasted on clothing not even in style anymore, purses that don't get used, and shoes that just sit in the closet. All those toiletries, facial products, and make-up that was thrown away when I decluttered before our last move or still sit in my drawers somewhere for the hopes of one day using them. The little things that really do add up. *sigh. I seriously can't believe how much owning a home is going to be! I thought we had done quite well with our savings, but now not only is the down payment going to take a huge chunk, but all the work we must do before we can move in (and it's not much compared to some of the homes we were looking at) is going to cost us an arm and a leg!
First, we have the down payment.
Then, there is the home inspection.
Next, there is home insurance.
Oh, and don't forget we have to do some contract work to add a washer and dryer line which is currently estimated at around $12K!
And of course, there is the cost of the appliances (fridge, washer, and dryer)
Last, we will need some curtains or blinds, something to cover our windows that are all without cover.
This is before any deco on our part, any DIY furniture additions, frames, cute welcome to our home but please take off your shoes signs, any wreaths, any closet lining, etc. And we had hoped to upgrade to a King bed but that may have to wait a few years.
It's going to be a very interesting budgeting year. I am playing around with our budget to see where we can scrimp and save, but it's not looking good. Maybe we need to stop dining out once a week or budget our weekly outings at $15 or less for all three of us. Every last bit seems to count now. We are saving a bit from a week of vacation to LA that has been cancelled since I will be too far along with baby #2. Anyone have tips on how to save money?
Onward we go!
Update: I took a hard look through our budget and actuals from prior year, and like any real finance person evaluating a budget and where to cut costs... we've made some decisions on where to cut down on the luxuries of our lives.
We are getting rid of our gym membership (and the free childcare and pool access that comes with it) because frankly, we never got out there as much as we wanted and I have become reacquainted with P90x and Bar Method DVDs, we are cutting our eating out budget to $45 a month which is about once a month or twice if we eat on the cheap and with coupons, our grocery budget to $300 (that one is going to be hard for me!), and our hobbies are down to $40 a month. Those are the costs we can control the most, as for baby and household which is budgeted at $50 and $40 per month, that might be a bit hard to control or space out when there are good Costco diaper sales or we're out of toilet paper, but we'll have to make do and hope the other cuts we made are good enough. It's tough living on a budget, but I hope it's worth it.
I've mentioned in the past that we try to live by the 10-20-70 rule, tithe 10%, save 20% and spend 70% and we actually have been pretty spot on, but the challenge will be keeping that up with the house purchase. *big gulp... Hopefully our tax return will be good to us again. Fingers crossed!