Budgeting

Detailed Grocery Review: October 2015

We realized in September that our grocery bill had gotten a bit higher than we wanted. While we don’t do a detailed review/tracking of groceries each month we figured we would do one for October. This would allow us to see what the big spends were on, and if there was anything we could do to reign it in, or if this was the new standard. We also realized that we have 2 other months that we did this detailed tracking so we have some other months to compare it with. It’s amazing to see some things change dramatically and some items remain status quo. For instance, our $40/month yogurt tab does not seem to be going down because we all still eat a lot of yogurt.
I think the biggest thing we do to keep our grocery budgets low is make a list before we go to the store. We found when we go to any store without a list, we overbuy, and spending goes up. During the week, we add things to the list, and then we stick to the list. We usually make our big grocery trip on the weekend, and then sometimes mid-week for things like bananas or milk, but not staple items. We also are mindful of sales, but we don’t buy something if it isn’t something we usually purchase. Meat is usually low priced, but we almost exclusively buy red meat and pork when it’s on sale. Otherwise, it gets really expensive really quickly.

Charts are fun!
Charts are fun!

Most categories stayed in the same trend as our previous Oct 2014 analysis, and our January 2015 analysis. Some things seem high because we stock up due to being low/out of something, and some things seem anomalously low because we stocked up the month prior. Protein bars are the perfect example, with $33 spent last Oct. (stocking up due to sale), $0 spent in January (we were already stocked up) and $8 spent this month – average spend if you buy month to month and there isn’t a sale or reason to stock up.

Mrs. SSC loves using excel for tracking!
Mrs. SSC loves using excel for tracking!

The big drop I noticed is coffee. I started buying green coffee beans off of Amazon and I just use a Whirly-Pop popcorn popper to roast the beans. Whereas before we were spending ~$8-$10/lb, now it is under $6/lb. We still buy some pre-ground coffee, but it’s only $2-$3/lb so it isn’t a big hitter on the budget.

The other 3 biggest things that jumped out to me immediately, were desserts/adult snacks, frozen prepared meals, and drink mix and juice. Last time the drink mix got high, I just started making tea with teabags, and you can see the difference in January 2015 is pretty big. Almost a $25/month savings which adds up to about $300/year. It falls into the paying for convenience category though. I drink about 1-2 pitchers (~1 gallon) of tea/lemonade or what not each day, and the kids like lemonade, so we give them watered down versions of whatever is made up. It still adds up over a month, so we’ll probably watch that.

Alcohol was higher this month. We did a Pumpkin beer tasting when the in-laws came in for a visit. This is usually only about $9 to make a sampler 6 pack of your own, but the selection was poor, so Mrs. SSC opted for 4 six packs at ~$8-$9 each. We also had the same tasting at a pumpkin carving hangout with some friends of ours since we had more than enough. As you can see usually alcohol is low on the bill. Frozen prepared meals are another thing that fluctuates as we get some frozen meals and other things that are easy for the kids. Weekends, we make a lot of food from scratch, and we save left overs for them when we make dinner, but not every night can be nice like that, so back to paying for convenience. The healthier options in those categories aren’t the cheapest either, so it’s a trade-off. When we enact our Lifestyle Change, there will probably be not much in this category as we’ll have time to get to do more cooking again.

Desserts/Adult snacks were pretty high this month as well. Between the layoff situation, and heightened anxiety, we realized we’re both comfort eaters to some degree. I know I eat more chips than I should, but chips and salsa or guacamole is just SO delicious! Mrs. SSC loves ice cream, and since Blue Bell was out of the stores due to listeria issues (they’re back, but limited flavors) Mrs. SSC found gelato as the only other same quality ice cream substitute but it’s kind of spendy.

Beyond that, cheese was a big drop, not because we had a lot, but we’re just not eating as much lately. We’re doing more baking, so baking supplies, eggs, and the like were a little higher. Surprisingly, “meat” was down. I guess we’ve been a lot better about getting meat on sale and that is reflected here. Mrs. SSC does the grocery shopping almost exclusively now, and I’ll watch the kids. It’s way easier this way for both of us. However, Mrs. SSC knows nothing about meat, except chicken and fish, as that is the only type of meat she eats. So… she will buy what she sees is on sale. It’s a bit of a gamble on my part though, so like on cooking shows, I get to see what’s in the mystery basket each week, and figure out how to cook whatever she bought. It’s been good in that I am learning lots of different cooking techniques that make cheaper cuts of meat tender and delicious and it also breaks me out of my culinary ruts. So I count that as a win on a lot of levels.

Let me know if you have tips or tricks you use to keep your grocery budget in check.

How do you define success?

Dollar, Dollar bill y'all! Oh wait, those are just dollars...
Dollar, Dollar bill y’all! Oh wait, those are just dollars…

It’s no wonder that we as a society are such consumers and create such financial issues for ourselves all in an effort to keep up appearances that we have money and are successful. You can’t go anywhere without seeing ads showing what success looks like, and therefore what we need to strive for. The bigger question that we forget to ask ourselves is, “What does success mean to us and who are we trying to look successful for”?  It all seems to be relative though, driven mostly by how you define success. When you’re constantly looking forward striving for bigger and better and more, at what point do you declare yourself successful enough?

Then what measure do you use to determine “success”? Is it having enough free cash to do what you want with? Is it the “He who has the most toys wins” mentality? By those standards, I should keep the job I have now for many more years, and spend money like I have a good oil-field salary. Why can’t I have a boat? I love to spend time on the water, the kids are old enough to enjoy it now, and we can afford it. Check – we’re getting a boat! We should get some nicer cars too. Right now we can drive past people and they don’t realize the kind of coin we’re bringing home, not anymore. Check – we’re getting newer, fancier cars! Plus, we need something to pull the boat! Now that I have a boat, I don’t want to spend 1-1.5 hrs on the yard each week to save $25 and I like boating better, so we should get a yard guy. Check – we’re getting a yard guy! You know what, now that I think about it, I like eating out for lunch at the office. I’m tired of my home made sandwiches and chips and apple every day, day in, day out. Check – I’m eating out more! We also need to vacation more, because we don’t get a lot of down time to reflect on our “success”, so you know what, we’re taking more vacations!

Dude, now this is success!! I’ve got a nice boat, a better ride(s), no lawn worries, and I get to have someone else make lunches for me and they’re WAY tastier than my ol’ sandwich. Plus, I get to plan our next vacation for the end of the year and the ones for next year. Talk about living the good life! See, it’s pretty easy to measure success, just look at all our stuff. We have SO much stuff, we even have a storage unit now to hold our extra stuff. It reminds me of when Homer told Monty Burns he was the richest guy he knew, and Monty responded with, “Yes, but I’d trade it all for a little more.” 🙂 So does more stuff equal “more success”?

What would it look like if I defined success by a different measure; a measure of time and freedom.

You're doing what?!
You’re doing what?!

If I tell someone that instead of pursuing all of that, I want to quit my 6 figure job, give up the boat, give up ever owning a fancy car (goodbye BMW dreams), eating out all the time, and give up a “big, fancy house”, so I can try to live off of $50k/yr they’d tell me I’m nuts.Heck, I told myself that before I got on board with this whole lifestyle change we’re striving for. Honestly though, after reviewing our spending this last year or two, I don’t see why we would need to live on more. Yes, more money could be more comfortable, but I’m already comfortable now. Yes, we could feel a little more secure having a paycheck show up each week, but I’m okay with withdrawing money as needed from our savings, as per the plan. You know what I will get more of though? Time and freedom.

I can’t BUY that right now. Let me rephrase that. Right now, I am currently buying future Mr. and Mrs. SSC time and freedom by forgoing the boat, the BMW, a bigger house, and bringing my own lunch to work each day. We still vacation enough for me, and after our lifestyle change, we’ll have more time to do more of that. So I can buy time, but it’s in the sacrifice of current convenience and luxury stuff now. But what about being successful, because I’ve worked my whole life to be a “success”!

Seriously, I don’t know how you could be more successful than by choosing to dictate your life how you want to live it. For me, I want to spend more time doing more family things, and to paraphrase the great Winnie the Pooh, I want to do more “Mr. SSC things.”

Fishing shouldn't only be done on vacations!
Fishing shouldn’t only be done on vacations!

Even more importantly, I want the freedom to do them when I want to do them. Not when they fall into an empty slot on my schedule and I also have the energy to do them. My current schedule has openings between 7pm and 11pm weekdays, weekends (sort of), and every other Friday (sort of). The sort of is a reminder that I still have “life things” to do like dentist appointments, car maintenance, house maintenance, errands, groceries, yard duties, and appointments for who knows what else, like haircuts, kids haircuts, kids dentists, kids birthday parties, dog things, and more. It’s amazing how easy it is to fill those days with things I’d rather not do in my “free time.”

In the end, it’s all about how you decide what success looks like to you. As the Grateful Dead put it, “sometimes we live no particular way but our own” and this rings true all over the PF blogosphere and life in general. We all have different ways we want to live our life, and we all have a plan in place to get to achieve those dreams. Some of us will get there sooner than others and some of us may never get there, although I hope we all get to where we want to be. But I guarantee that none of us will get there if we try to measure up to someone else’s definition of success.

What’s your definition of success? Do you have something you see as a success that others might think “wouldn’t count”?

September 2015 Budget Update

I can’t believe September has come and gone. It seems like only 6 months ago we were finding out Mrs. SSC may get laid off this week. We’re still waiting to find out, as they are dragging it out thru the later part of this week, maybe even into next week. Huge eyeroll… I think lack of efficiency may be a key factor in needing to have so many layoffs to begin with, but since I’m no corporate analyst, I’ll just leave that alone.

Um, it's a pie chart....
Um, it’s a pie chart….

September positives, daycare was down last month, even though it all evens out since we’re just paying “per week”. Also, health, gifts, entertainment, pets, and cash were all lower than usual. Mrs. SSC even crocheted a pair of Minion hats for a set of twins, whose birthday party our oldest was invited to. That saved us from buying any birthday presents, so YEAH for small wins!

Numbers, numbers, numbers!
Numbers, numbers, numbers!

September Negatives include utilities, which were slightly higher, probably due to that 3 weeks of 100+ degree weather in early September. Car repair/gas/tolls came in a little higher than previous months, no clue why there, maybe more toll usage? I’ll monitor that closer for next month. Groceries, though… BUST! Not sure why this jumped up so much, but we will be doing a grocery curtailing this month and monitor purchases and receipts to get it reigned in. We would analyze September’s receipts, but we don’t always keep every receipt. Looking at overall purchases from credit card statements, there doesn’t seem to be anything out of whack, so we will monitor and report back for October! SO exciting, you probably are giddy with anticipation! 🙂

Well, except for waiting for the sword of Damocles to fall later this week, there haven’t been too many changes in the SSC household. We have made multiple budget and savings scenarios, and lifestyle changes regarding this upcoming layoff cycle and we will report all that out to you as soon as we know something. I have to say, as stressful as it has been lately, it has been pretty darn encouraging to review all of our income, savings, FFLC timelines and more and realize that we are still sitting in a pretty good position. It does alleviate some stressful aspects of this situation. However, the anticipation and dragging out of this announcement and decision is just ridiculous though. Talk about adding more undo stress to an already stressful time. Aye yi yi!!

Hope everyone has a great week!

The “About Series” rolls on!

Welcome to today’s post where I’m continuing the “About Series” put out there by Steve at Think Save Retire. It’s essentially a challenge to other bloggers to write more about themselves, their blog, and what not so we can get more of a sense of who they are by giving more details than what is on their “about” page. I took our next life’s formatting and some questions from their  “About” post because I liked how it was structured, so thanks guys! Without further ado, here is About: Slowly Sipping Coffee.

Why did we start this blog

To be honest, we started it mainly to document what we were going to be doing. It was meant as a way to keep us focused on FIRE, now FFLC, and maybe connect with other people out there doing the same thing. We didn’t come across too many people trying to achieve FIRE with kids when we had been perusing the blogosphere, so we thought we would blog about our journey. It was also initially intended to be a side income deal  once we kick-off our FFLC, but now I don’t know that we will go that route. Who knows what the future may hold though, maybe there will be some ads in the future, and we’ll try to harvest those pennies, but until then, Meh….

What’s the point of SSC

Slowly Sipping Coffee is really our way to keep focused on our goals. I hadn’t been on board with this whole FIRE idea, because the few blogs that Mrs. SSC had sent me to were filled with uber extreme minimalists and ER folks. Everyone has their own idea of what is minimal and what is extravagant, and I didn’t see us being able to do this to our comfort level. When I did get on board with it, this blog seemed to be a good way to stay true to that, and put another FIRE perspective out there.

Won't you join us in our journey? It's less weird than this graffiti I promise!
Won’t you join us in our journey? It’s less weird than this graffiti I promise!

What do we get out of it

I get an outlet to write, and you guys get subjected to my drivel each week, HA! Seriously, though I get a lot out of it. Beyond getting to tap into my creative side by coming up with post ideas, I like getting to think about things, post work life, family life, and everything in between. It helps me to think about how this is all interconnected and how one little thing affects everything else. I mean, I went from reading exactly zero blogs  on personal finance, retirement, investing, and all that to being able to hold my own with a financial planner one-on-one in his office (that’s a whole separate post – maybe even two). I now read numerous blogs each week and like catching up with you guys out there in blog-ville. Seeing other people move their dates up, back, sideways, and reading about all the other motivations you guys have for wanting to FIRE has been great. Thanks to everyone out there that puts out good posts, and remind me each week that we’re actually doing this!

What’s the name all about

The name came up almost as organically as the blog idea did. We were literally sitting there sipping coffee on one of our Friday mornings off, when I said, “We should start a blog!” Once we decided we’d become bloggers, we had to pick a name. We had some interesting choices, most of which I forget now, so see, we chose wisely. Ultimately, we settled on the name Slowly Sipping Coffee, because except for our every other Friday’s off, we don’t get the luxury to sit and slowly sip anything.* With two toddlers running around, the weekends start at ~5-5:30 am and we can’t sit down and relax again until around 7-8 pm when they’re in bed, and actually staying there… We imagined our FIRE life being more of a, “get up, get the kids off to the bus stop, wave goodbye, and then head inside to get some coffee and go sit on the back deck or front porch and enjoy the view before we start our day.” Since we want the freedom and time to get to slowly sip anything, we thought it went hand in hand with what this blog is about. Plus, I’m a BIG coffee drinker, and that’s why it isn’t slowly sipping milkshakes, slowly sipping tea, or slowly sipping bourbon, which is really the only way it should be enjoyed.

What’s in our blog header

Our blog header is a picture the Mrs. took on a family trip out to Tahoe. It’s some beautiful country, and since we want to retire to mountains, we thought it was fitting. At the time, we were still scouring the Rockies for places, so it fit well with that. We may have to update it to some more Appalachian style views when we go visit out there. Until then, here’s one from a past trip.

We are hoping we will have a view like this from our porch!
We are hoping we will have a view like this from our porch!

Who writes our blog

It started off as a joint venture, but I do 98% of the writing now (that’s Mr. SSC). I like writing and except that I can tend to be really long winded even while typing, it comes easier for me than Mrs. SSC. She does make a good editor though, especially in the earlier days when I was still trying to find my voice and tended to blather on and on, and go on “shiny” mid-post tangents that make no sense but seemed to be important at the time, like this sentence. 🙂

Where do we think the blog is headed

I’m not too sure where the blog is headed, but we just hit our 1 year anniversary, so that’s pretty awesome! I like to think that it will be around when things get more interesting and we can be like Living AFI and post our actual FFLC experiences instead of our “working to get to FFLC” experiences.

Random fun facts about us we’ve never shared before

I am a big “Dead” head – enough so that I “burned out” Mrs. SSC on their music, she alleges. At least solo commuting I can crank it up on the way to and from work. That or bluegrass depending on the mood. But really, I like both kinds of music, Country and Western. 😉

Yep, that's my favorite mug to drink coffee from.
Yep, that’s my favorite mug to drink coffee from.

The Mrs. and I met as interns in New Orleans – yep, it’s an oil patch love story.

If money wasn’t an issue I’d be teaching and I wouldn’t be looking for oil. It was fun having an intern this year that knew nothing about petroleum geology or the industry and getting to teach her all of that stuff and see the “light bulb moment” when she got a new concept.

Pre FIRE Mr. SSC was horrible with money. Beyond my credit card and student loan boondoggles, I would buy musical instruments I didn’t know how to play thinking it would be a good idea to learn a new instrument. Ultimately, they would sit there and I would end up not playing them. I still occasionally find myself online thinking, “I’ve always wanted to play the cello….”

 

* – We work a 9-80 schedule where we work 9 hr days 4 days a week, and every other Friday is an 8 hr day. This leads to having every other Friday off, which is pretty dang awesome!

Layoffs are looming: Part 2!

With the upcoming layoff cycle, we’ve been looking at how we’d be affected if it happens to us. Chances are possible of Mrs. SSC getting cut, mostly due to the heavy, ~30%, cuts they’re making in her department as well as up to 20% business unit cuts. If you read the last post on this you might think, wait, wasn’t it only 12% cuts reported? Yes, yes it was, however, the biggest hit is geoscientists, so while overall it averages out to 12% company wide, the geoscientist group is getting hacked at 20-30% across the board. Yeeowch!

This affects us way more than I first thought. I figured, eh… we should be okay, just a little tight on savings, but then it sparked conversations on life, what we really want, if this career path is even fulfilling enough to go back, and if not, then what? I mean, this could drag out into at least 3 posts, haha! Don’t worry, I won’t belabor you with that, unless it’s still on my mind in a week and I haven’t found something shinier to focus on. I’m sure I could think of another music analogy post… Seriously though, beyond the financial part of all this is the innate thing we’re all searching for, and that is “what do I want to do, that I can get satisfaction from and get paid for?” Currently, that’s not Mrs. SSC’s job.

The other bigger conversation that has been brought up is, what to do next? I mean, Mrs. SSC hasn’t been happy at her company for almost 5 years now. Anyone else see how this timing ties into when Mrs SSC began plotting for FI? Haha! Coincidence? Heck, no!

For most of life we get driven to go certain ways in life or down prescribed career paths by our parents. For Mrs. SSC it’s even more extreme since she is very self-driven. She’s been driven to work hard, get a degree, work harder, save well, and all the other things will sort themselves out with life. At that point you’re already successful, so good job! For me, well I was driven to umm… well… I mean come o,n I was aspiring to be a long haul trucker for the glamour of it. Not exactly the same upbringing, and so let’s just say I took the long loopy path to where I am, and in the midst of all of that, I got to find myself. Mrs. SSC hasn’t had that experience yet and so she’s kind of wanting some time for that self-discovery that she missed when she was younger.

Personally, I think she’d be just as happy working in a bakery decorating cakes, and doing something she can see real results on. I loved working construction and getting to see an empty field become a hospital, or an empty plot of land turn into a house, it’s amazing when you see what you work on turn into something, anything, and not just be a nebulous “ XX barrels of oil/day produced”.

The beleagured point of this is that Mrs. SSC isn’t even sure she wants to go back to this field if she does get laid off. One of my colleagues recently brought up that 50% of people that get laid off in the Oil & Gas industry don’t come back. I’m sure that is an overblown number, but I know over a handful of associates that are okay with walking away for good if they get laid off. Straight up not coming back and finding something else to do with their degree. They have spent YEARS in school working on those degrees to work in this field. Now, if laid off, they’re content looking into gov’t jobs, academia, and even jobs with nothing related to their degree at all.

Heading forward, no looking back. Except this is clearly looking back…

Ever since one of our friends got laid off this spring,  we’ve been working to see how this would affect us if it hit either of our companies. Well, it’s going to hit us in a few different ways but like most people, it starts in the wallet. We maintain a pretty good savings rate of about 50%. So, if we lose one salary, our savings rate would effectively be 0%. We are fortunate to be way ahead of many colleagues, since we generally live off of one salary already. Maybe even a little under that, but for the most part, all of our “essentials” can be taken care of alright with one salary. It’s not nearly as stormy an outlook as I was thinking at first. Plus, Mrs. SSC might get an added bonus of a forced “get to know yourself and what you want to do.”

 

Stormy, but hey, the sun's still shining!
Stormy, but hey, the sun’s still shining!

If a layoff occurs, we would have to find a way to move that savings rate from 0% to hopefully 10%, just to keep FI happening before we turn 50. We’d leave our oldest child in daycare full-time because he thrives well there and does great with the structure, friends, and the like. He will be in his last year before kindergarten, so it’s not a long-term bill, maybe 6 more months tops. Our youngest could do well with a 2-3 days per week/part time day care situation as she seems to be more independent and is a super fast learner. Plus, Mrs. SSC is looking forward to having time to spend with her and help her learn more too.

 

The biggest obvious budget hits are just the other luxury allowances we have now that would go by the wayside. These are the same things that will get cut with the FFLC anyway, so nothing to drastic yet. I’ve saved us about $1200 this year just doing the yard all season (it still has about 3 months before it ends) so that’s good, and we’d cut the maids saving us $260/month, and then Mrs. SSC parking and work gym would get rolled into an outside gym fee, which would likely even out. That’s her hobby, outlet, and she likes it and uses it, so we’re both good with that. Plus, we would be saving quite a bit on tolls and gasoline, since each commuting day is the equivalent of ~2.5 gallons of gas or ~$9, and $2.50 in tolls. At 220 working days a year, that is just over $2530/yr. Maybe we could even get the car insurance rate dropped on her vehicle too! Groceries budget could easily go down by $50-$75/month since Mrs. SSC would have time to shop for better deals, and we wouldn’t have to buy ‘convenience’ foods anymore. We could likely trim another $25-50 of general spending a month for the same reasons.

 

That beach might not be the most comfortable, but it's still beautiful!
That beach might not be the most comfortable, but it’s still beautiful!

When we looked at our FFLC date, it is a different story though. First off, I’ve gotta give a shout out to my man, compounding interest! Yeah, that’s my boy!! We’ve been good at feeding our FFLC accounts so they’ll still be working in our favor, hopefully. With our savings effectively reduced to 0%, we know we’ll just have to play a couple rounds of “what expense goes next?!”. We’re assuming we can still save at least ~$1k/month/yr and then increase it by $1k/month the next year due to my raises and maybe Mrs. SSC getting a part-time gig. I think we may be able to save more, especially if we make it a challenge. Take that and assume  a 6% investment growth, and we’re still looking at mid 2020 for our FIRE date! We’re not looking at a date as early as ThinkSaveRetire, but we’re still doing better than most in this downturn since we still have an early retirement date before we’re both 45!

That’s a lot better than I was thinking initially. It helps to know your target number, and be aware of your budget, because of the case in point. My mind totally blew out of proportion how negatively we’d be affected, and then you do the math (I try to not ever do the math) and it’s like, “whoa! We got this, and we can adapt. Alright then… We can do this!” And then hope we don’t have to do this. Until we find out what we’ll be doing exactly, we’re just going to keep on, keeping on.

July 2015 Update

July was a rather boring mundane month, and after all the unexpected costs in June, I’ll take it! Boring is good on some levels, especially when it relates to out of pocket spending. For the most part, we’re on track with our predicted FFLC budget, and on an upside, July was our third cheapest month of spending this year. This has been good for us keeping a more detailed look at the finances to be able to see how accurate our predictions are for our FFLC number. Based on the year’s spending to date, it looks like our yearly budget is running right around $54k. This is inline with what we’re thinking so our target date remains unchanged. That may change in 8 weeks, but for now, we’ll just move forward as if things are good all around. Now to discuss some budget numbers!

July pie

 

As far as specifics go, the pet’s column is a little high again due to taking Lola to the vet for a baseline checkup and get her flea/tick preventer and heartworm meds. We should be good for staying away from the vet for a while now, but you never know. Groceries were a bit higher than usual, but that’s probably due to the Mother-in-law being at the house for about 3 weeks. Mrs. SSC had some allergies flare up and then turn into bronchitis, so the medical bumped up a bit. She’s fine, but had a continuous cough for almost a month… Due to the ridiculous heat, yes I know it is summer in the Gulf South, our utilities are higher as well, and that’s just keeping the house around 78… Blech…

Numbers, numbers, everywhere...
Numbers, numbers, everywhere…

On the plus side, it looks like the car repair/gas/toll is down from what is typical, woohoo for that! Phone/internet/tv is down due to the plan switching, although do I have a gripe with the new guys. I’ll save that for later though.

 

Yeah no more tall bars!
Yeah no more tall bars!

Thank goodness for an easy no surprises month. Whew! It was a welcome relief after June’s outflow of cash. I hope your spending has stayed reigned in and your month went as well as ours!

 

Layoffs are Looming! Would you be ready?

So it’s no secret that the oil industry is going through a typical cyclical downturn. Blame it on what you want, but that’s just the nature of the industry.

The ups and downs of the oil patch!
The ups and downs of the oil patch!

It’s also no secret that companies have been laying people off left and right. We’ve been fortunate enough to not have to deal with this yet, however, our time has come. Mrs. SSC’s company has been making waves about “re-org’s”, consolidation of departments and the like since February, and it had been rumored there would be layoffs, but it hasn’t been official until the last few weeks. They recently found out that there will be 12-15% staff reductions all across the board, with larger cuts most likely in Mrs. SSC’s group. No one is safe. Being true to their nature as a huge bloated bureaucracy, they plan on releasing little info and dragging the process out into October. Yippee!!
Alternatively, back in March my company announced that we can “keep on, keeping on” indefinitely with oil around $50-$60 a barrel. We did some minor reorganization, stopped our hiring campaign, and put raises on hold. They still paid out bonuses though, which was nice, and my move was well timed, so I already got a nice raise just by moving, so it isn’t too bad.

 

This week will mark the kickoff of the layoff cycle with a release of some info, possibly blank org charts, websites to see how you will be affected, and the like. Yep, everyone gets to essentially re-apply for their job and compete with others that may also apply for their job. Joy! Being a large company though, some people have gotten more information quicker than others. For instance, on a recent fishing trip a friend of mine told that he knows his boss’s job and likely his job is gone, as his group is going from 21 to 11 people. He’s kind of freaking out, because he’s a sole bread winner for his family, and no-one is currently hiring. However, he has a pretty good savings account, and he and his family live fairly well below their means. While he is worried, he isn’t super worried because they carry almost no debt, just the mortgage, they have a good savings account and emergency fund, and they have an amazing support group available from their church should things get really, really, bad. Another friend of ours who works with Mrs. SSC, recently had his wife get laid off from a different oil and gas company. Since he is now the sole bread winner and also works with Mrs. SSC he is more than a little worried about what could be coming. Again, they live pretty well below their means, and manage to save a decent amount. His job still covers their bills, and they can still save some along with that. So, while they are worried, they are not as worried as some other friends of ours, but no-one wants to be out of work, and have to start tapping into emergency funds and savings while scrounging for a job.

In my new company, I’ve only come across 2 people who mention that they save money outside of their work retirement plans. Two people… One of them is a new hire, and he follows the model of “pay yourself first” and then live off what’s left over. For instance one week, we were going out to lunch (I know, I know) and I invited him and he said he was going to be pretty broke the next 2 weeks because of a miscalculation with transferring funds to a Vanguard account. Apparently, he’d set it up to make a “monthly” transfer and it hit his account twice. Instead of dipping into his savings or other funds, he just shrugged his shoulders and said, “Nope, can’t afford it for the next 2 weeks.” Commendable, because I would’ve just used “other money” and then “rewarded” myself on saving twice as much as I’d planned. Sidenote – I still have bad financial ideas sometimes. The other person has “outside of work” retirement accounts, and a fund for a retirement home rather, a house to live in in retirement already and they’re only in their early 30’s. The rest of the people from our work group looked at us like we had tentacles growing out of our heads when they heard us talking about Vanguard funds, retirement savings, expense ratios, and the like. One person said, “Why are you talking about retirement, that’s like forever away!”

 

That leads to conversations of other people we know that are not in the same boat. Specifically, a couple that makes two oil industry salaries and are freaking out about layoffs, because they still live paycheck to paycheck with little to no savings, much less emergency fund savings. Yes, you did read that correctly. This couple, in their 30’s with children, still gets occasional help out from their parents with bills and vacations. They like extravagant vacations, and they take them as often as possible. In between vacations, their spending habits aren’t reigned in well either, because that’s just the lifestyle they are used to. They know they should be saving more, or any really, but between little things here and there, and kid functions, and birthday parties, and groceries, they just don’t manage their funds well. They are really worried, because with a layoff from just one of them, their house of cards could easily crash down. They’re taking the ostrich head in the sand, fingers crossed approach and hoping for the best.

 

This attitude and lifestyle of spend, spend, spend rings true with more colleagues of ours than you might think, hell it’s probably not much different in your industry either. For the occasional person that may be thinking about retirement early, or retirement at all, everyone else is thinking about more ways to spend their paychecks. It’s just mind boggling to me that people don’t save more. I have to say though, if I was still single and hadn’t met Mrs. SSC, I’d think I was doing alright maxing out my 401k, and having my debts paid down. If I was diligent enough to actually have them paid down, which is doubtful. Even then, I would probably still be only a few paychecks away from disaster. It was living with Mrs. SSC that got me to realize how to break that spend, spend, spend cycle and start focusing on investing, saving money, and paying off debt.

 

As the weeks move on, things will be pretty stressful around here. Maybe we’ll luck out and Mrs. SSC will get to retain a spot on the payroll. Maybe she’ll get laid off, and get to figure out what to do next? I know we’ve already figured out exactly how it will affect our FFLC date, and our savings though. Since this post has already gotten so long, I’ll go into that in detail next week with part two of this crazy adventure! Yeah, layoffs!!

 

Source: Macrotrends, Inc.

Forever In Blue Jeans? Done!

I love music, and I have since I can remember. It can give me chills, make me smile, make me cry, it’s the one thing I truly love in so many of its forms. My dad also loved music, stuff I can now appreciate musically, but most of which I still consider “crap” (sorry dad, but a lot of it is bad). Mom was more Motown, R&B, and “oldies” centric, but R&B when it meant rhythm and blues, The Temptations, The Supremes, Marvin Gaye, The Four Tops, Ray Charles, man, I’m giddy just remembering those guys, and yep, just started a good Motown playlist in the background. Aaahhh…

One musician dad was a huge fan of that stuck with me though is Neil Diamond. Man, I love me some Neil! Cheesy as it can be, those lyrics cut to my soul so much, because I just get it. Although, as Mrs. SSC put it, “Neil Diamond, Neil Young, same diff, right?” Oh, Mrs. SSC…

Neil D
I don’t know that he ever wore blue jeans…

But one of his songs in particular lately has struck a chord with me, “Forever in blue jeans.” What a song! It resonates with most of what I read on your blogs most every week, which is mainly that acquiring loads of money doesn’t matter, but as long as you have each other or what you deem your priority in life, you’re good. It’s about getting your life to a point where you call the shots and where you’re happy. Who doesn’t want that?

My whole life I’ve been money centric.

Money, money, money!! This was one of my first purchases as an intern in New Orleans.

Growing up broke as can be with parents that have zero good financial sense, I’ve tried to work towards making as much money as possible so that money is never a worry. Worrying about money, is the worst feeling in my life. It ranks up there with finding out someone you care about has died. I really hate worrying about money. This was my hangup with ER. Why the hell would I walk away from a nice comfortable setup to go back to scrounging just to not work?! No way! But then my focus changed.

For me, it was my kids. After having them I realized 2 things: 1. I’d do anything in the world for them. Yes, this really most exclusively means trading my life for theirs if God forbid that was ever an option, 2. I want to spend as much time with those guys as possible while I can.

One day, they’re going to go make their own lives and it is coming way sooner than I want. I already know this, and they just turned 2 and 4. I only have 16 years before they’re gone and off to college or career or who knows what, but it’s coming.

How does this affect me or my lifestyle or even our FFLC? Man, has my priority switched, because, since then and now, we’ve found our number that we’ve been living off of and can live off of and we have a date when we should reach that number. That date is in about 3 years and then we’ll be leaving our jobs.

Coming back to the Neil Diamond song, I realized my focus was echoed by these lyrics.

“Money talks,
But it don’t sing and dance
And it don’t walk.
And long as I can have you
Here with me, I’d much rather be
Forever in blue jeans”
….”And if you pardon me
I’d like to say
We’ll do okay
Forever in blue jeans, babe
And long as I can have you
Here with me I’d much rather be
Forever in blue jeans, babe”

Let’s see. Our “comfy life” as it is now, involves an almost 1 hr. commute each way, 9’ish hr’s at the office 4-5 days a week, to see the kids an hr or two a day before bed, and then get to hang with them while catching up on other errands/chores and what not over the weekends… Yeah, we’ve made it!! Versus taking a chance that our ER plans go as planned, but maybe we’ll be forever in blue jeans? I’ll take it.

I get really freaked out by this sometimes, and I try to put on a brave face, but I still get worried. Worried that we’ll try and fail. Worried that we’ll leave our “nice” jobs and end up in a horrid life of scrounging, scrimping, and worrying about money constantly. Kill me now, please. The knot and 20 lb weight in my stomach just writing about it makes me SO risk averse, part of me just wants to keep working until I’m really, really, sure I’ll always be good. And this is probably what drives most people to work for SO much of there lives. But that “horrid” life of watching our funds and scrounging for money, if it came to that still sounds like it’s a way better quality one than I’m living now.

I realized I’d rather be doing my life on my terms and forever in blue jeans, than in an office answering, “Yes, sir! Of course sir! Tomorrow sir, you’ll have those reports!” and if sh!t hits the fan, well, I’d rather try and fail than sit by in quiet fear and trepidation wondering what if. You know what I won’t get back ever? Time with my family. I also know that between me and Mrs. SSC, we can be making half the money my family was raised on and we’ll make it work comfortably. So, yeah, I’ll take that chance on spending as much time with family as possible while also maybe making my life way less comfortable than it is now. I have to say, the “comfort” I’m giving up versus the comfort I’m working towards I’ll take any day. And if we’re forever in blue jeans, I don’t count that as a fail either.

What made you want to get to FIRE/FFLC/Not working for the man and doing thing on your terms?

 

Neil Diamond Picture from https://www.youtube.com/watch?v=kAWpkBurVno

Kaboom, went the budget!! June 2015 Update

Man, was this a rough month for the budget in the SSC household. As I’d teased last month, we were expecting a few overages due to the A/C repairs, new tires, new greyhound adoption and the like, but I wasn’t expecting the hits to keep rolling. Fortunately, there haven’t been any breakdowns, repairs, or otherwise costly expenses that have cropped up yet this month, and we’re almost a third of the way through it. A quick glance at the bar chart shows June (appropriately orange) topping the charts in almost every category except the stable ones like mortgage, car note, and home utilities. How did this all happen and where did the money go you wonder? Since we don’t have the usual “numbers” chart for this month (it will return in the July update and you can peruse it then) I’ll just tell you.

Ouch, June hurt!
Ouch, June hurt!

Phone, tv, internet got hit with a $65/month increase due to 2 years’ worth of discounts finally running out. I called ATT, asking about any other ways to reduce our bill, and besides getting a 3 month $40 discount applied to our account, it was just lip service. I shopped around and 2 days later have our service switched and added bonus, NFL Sunday package is included for free this year! I count that as a win, since I’ll probably have to pony up for that one from my discretionary funds if we continue it in the future. Increased daycare costs – no clue. I’m guessing it’s a combo of short month in May, little longer month in June, and the difference was made up in June. Groceries were okay, trending a little higher than usual, but we’ve been on a “grocery spend watch” just to see if we can keep it steady.

Home repairs… Oh, home repairs…. Besides the A/C drip line getting clogged up (~$450), we also got 2 solar screens made for the bathroom windows (~$140) and it is now cool as can be in there, and not sauna like every day. We also had our wall mount A/C controller go out, so there was some added cost there. When we looked at replacing it with the same unit, we realized we could try the Nest for a little less (~$250). So far it’s been working great! The garage door springs also broke in this month, and that was another $440 to get them replaced. The car needed new tires, so I went a middle of the road option for that, but it was still ~$650 we didn’t want to spend.

The kids had their birthdays this past week, and we had a party. No, no, not some thousand dollar extravaganza with entertainers, balloon animals, and bounce houses. Oh wait, there was a bounce house, but upside, it was paid for over a year ago, and overall, not that pricey. Essentially we just had friends over and did snacks, drinks, and appetizer sort of food, beyond the cake and ice cream.

Both cakes came out nice!
Both cakes came out nice!

I designed and decorated James’ cake, and Mrs. SSC did Marie’s.

James wanted a construction cake, so I built this one.
James wanted a construction cake, so I built this one.

With the food and extra drinks, juice boxes and gifts (For our kids not those give away bags for the party, I just don’t get those) it was still ~$200 or so for entertaining.

The bigger kicker of the month was our shower in the master bathroom. The metal for the hinge on the door fatigued and split. When this happened the pin that rests on this tubular metal hinge now sat about ½” lower and started hanging up on the lower part of the door. Imagine any door you use dropping a half inch and you get the idea. After hours of scouring the internet and talking to 4 different shower companies, we found out that they don’t make replacement parts for the style of enclosure we had. Seriously, what a racket! None, no parts. They have to be connected to the mob somehow, but no, they just expect you to replace the WHOLE thing if something like a tubular hinge fatigues and splits. So, after getting 3 quotes all within $50 of each other, we got our shower replaced to the tune of $1350….. Ridiculous! Now you understand where the comment about fixing all the “custom everything” on the Living Big Sky show came from, as it was playing the night after we’d ordered our standard shower door replacement. Ugh…

Finally, we got the newest member of the family our new greyhound, Coffee!! Kidding, we went with Lola instead of her racing name “Rusteze”. She’s been great, but the adoption fee of $250 and the $200 vet checkup/heartworm and tick/flea medicine and some other costs added up to just over $500.

Happy and relaxing
Happy and relaxing

 

 

 

 

 

 

 

Sound asleep!
Sound asleep!

 

 

 

 

 

 

 

 

 

 

So to recap, we’re about $3600 over budget this month. Fingers crossed that we don’t have the same string of spending in the next few months, but I see it trending back downward again.

How was your month?

Did you get any crazy unexpected bills,repairs, or new pets that threw your budget for a loop?

June home repairs are killing me!

So far, June has been the month of things breaking around the house. I alluded to one repair that cropped up in our May 2015 update, and I was expecting to have to get new tires soon as well, but man, it seems like every time I turn around, something else has broken. What all has gone on? Well, let me tell you.

It started a few weeks ago when we noticed one of our pipes coming out of the house was dripping water. Mrs. SSC googled it, and found out that, “Yipe! That is our AC overflow drain and it shouldn’t ever be dripping water!” We immediately googled DIY AC drain cleaning. Looked pretty simple, just find the original drain, hook up a vacuum and it “should” suck out all the built up algae and what not. Bada-Bing, Bada-boom! Clean drain! I get in the attic, as this is where our main units are located, and trace the pipe across the attic to where it drops into the wall and into the guest bathroom where it is tied into the P trap under the sink. I start monkeying with the joints, and hooray, they have glued every single joint… At this point, I don’t want to start cutting PVC, and get myself into a plumbing rabbit hole nightmare, so we call around and find out it’s only about $69 for drain cleaning. I find this price point definitely worth it, so I set up an appointment.

My crude AC drain diagram
My crude AC drain diagram

The guy gets there and cuts apart the joints, and snakes the line, and nothing. He gets in the attic, cuts apart the line somewhere else, snakes it, vacuums, and nothing. He keeps at it for 4 hrs. and kept re-iterating that there was no guarantee on this drain cleanout. After about 5 hrs., he got a bunch of gunk out of the line and it was all sealed up. However, because this wasn’t a typical drain cleaning, it was in the $450 range, and not $70, but I had signed off on this before he started, and inwardly I was a little glad it took 5 hrs., because I felt a little more justified. I also watched everything and asked lots of questions, and realized that with 5+ hrs. of my own time, I could’ve saved $450. Lesson learned for next time.

Three days later, we notice the drip is back. Yep, remember the non-guarantee about cleaning? This time I call no one, and head to Lowe’s for some PVC connectors, piping, and then start cutting up the pipe. I essentially cut the pipe near the unit, and disconnected it at the last place the plumber cut it. This was about a 10’ section of pipe, and after some finagling, I got it outside. There I turned the jet nozzle of our hose into it and even that wasn’t getting the blockage out. I poked it with a sink snake I had sprayed some more, and about a cupful of algae, scale, and God knows what finally came out. Then I go upstairs and 15 minutes later, clean drain. Yeah me! I was sorry that I didn’t try that sooner, but I’ve always had poor luck when I work on plumbing, so I didn’t feel confident enough to try it on my own the first time. Not anymore!

The second major cost was a broken garage door spring. I went to open the garage door, and heard a loud snap and banging sound. I went to investigate and I saw that the one of the mounts had ripped out of the wall. This was the mount that holds up our garage door overhead bar that the belt travels on, and keeps it attached to the wall.

Seriously?! This just happened?
Seriously?! This just happened?

The people who had installed it had just barely hit the stud with their bolts, and it had ripped out of the top of the stud, and out of the drywall, and was laying on the top of the garage door. I sighed, cursed a little, but 15 minutes later I had it repaired and sunk into a solid stud. Yeah me!

Yep, this is where it ripped out of the top of the stud.

When I hit the door button, it would only travel about 4 inches and stop. I investigated closer and saw the spring was snapped in half. Aye yi yi! I disengaged the motor and tried to manually lift the door so I could at least get the car out, and no. I could get it up about 2 feet before the other spring forced it back down. A couple of calls around and I got some rough quotes and found a place that could get out there that afternoon. This was about 2 pm, because I was home taking care of a sick little one. That repair for both springs (why wait for this to happen again) was right at $440 too.

I think home repair folks just look at some papers, shuffle them, and say, “Meh, that’ll be about $450.” And then shrug their shoulders at you with their hand out waiting for payment. It’s only June 10th, so I can’t wait to see what the rest of the month brings.

 

How about you? Have you run into any unexpected home repairs recently?

Did you have the time to DIY them, or did you call someone?

Anyone else feel like it’s at least $100 for someone to show up to your house to say “This will cost more than $100.”