Author Topic: Budgets and big ticket items  (Read 3132 times)

geekette

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Budgets and big ticket items
« on: July 30, 2013, 09:37:31 PM »
Attempting to create a budget.  Looking at last year, we had a lot of "one offs" - and I suspect most do.  Sick cats, new roof, replace 17 year old car with a 7 year old car...  How do you put this sort of thing in your budget?  A huge "misc" category you hope you won't spend?

I'm trying to cram last year's $58k into about $35k in the next year, all while adding about $11k in COBRA payments.  Whee!

Joel

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Re: Budgets and big ticket items
« Reply #1 on: July 30, 2013, 09:48:36 PM »
I plan for those unexpected expenses just like anything else, saving money up in categories for each of the different purposes.

I do this using YNAB.

geekette

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Re: Budgets and big ticket items
« Reply #2 on: July 30, 2013, 10:15:13 PM »
We have the money saved up (early 50's, $1m+ net worth).  I'm trying to get a handle on our minimum needs going forward in case my husband doesn't get a replacement job. 

I see people happily living off the proceeds of less than we have, but I haven't seen line items for odd stuff.

Will

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Re: Budgets and big ticket items
« Reply #3 on: July 30, 2013, 10:47:23 PM »
I use YNAB as well.  With the money you have saved up (which is of course different than your net worth), create categories and then budget whatever amount you feel comfortable with?  Create a "pet expenses" category and put in however much you think you'll need ($500? 1000?  YOU decide).  Do the same with everything else.  Car replacement: $200/month?  Car repairs?  $50/month?   Home repairs?  1% of the home's value/year or something similar.  It is all up to you.  Fund them all at once, or spread them all out.  But I would NOT recommend one gigantic Miscellaneous category.  Again, YNAB makes it easy for you to be as broad or as granular as you'd like.

gooki

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Re: Budgets and big ticket items
« Reply #4 on: July 31, 2013, 01:42:49 AM »
I put down $2,000 a year for unexpected expenses.

As for actually putting the money somewhere, I don't bother. Any expense like this comes out of our emergency fund.

geekette

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Re: Budgets and big ticket items
« Reply #5 on: July 31, 2013, 09:09:03 AM »
Sounds reasonable - thanks.

mlipps

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Re: Budgets and big ticket items
« Reply #6 on: July 31, 2013, 09:13:42 AM »
I put it into my budget every month & use PNC Virtual Wallet's "Wishlist" feature to keep the buckets of money. It might be overkill, but I like it. I have sinking funds for the car ($40, as ours is new & this is mostly oil changes & registration/parking sticker), dogs ($130/month, which goes about half to food and half to vet expenses as they come up), travel (varies, based on whatever trip we're planning, but is minimum $200/month to account for camping trips, visits home to mom & dad, etc.), and gifts ($125/month).

bo_knows

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Re: Budgets and big ticket items
« Reply #7 on: July 31, 2013, 09:51:48 AM »
We don't specifically "budget".  We keep close track of things in Mint, and have viewed our average over the last few years.  One-off items just get lumped in with the average, and I use that overall average for any sort of retirement planning or simulations.