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Temporary Buyers remorse, and Change of Retirement Savings

July 14th, 2010 at 01:51 pm

Well I went back to the store and bought the furniture for upstairs. In 1 to 2 weeks I should have furniture for my house. Later that evening as I was thinking of the total bill I started to regret it.

I got a great deal on the furniture, I really do need furniture as it makes it hard to sit down and relax when you only have wood kitchen chairs to sit down in. But being the tight wad that I am I have a hard time spending money on myself.

Truthfully this is the first Me Purchase I have made in well 11 years. The last Me Purchase was my Car in 1999. I guess I am stressing because I charged it to my credit card and unless I want to pull the $ out of savings about half the charge might sit one cycle on the CC. Of course my rate is 8% so that is not bad considering. But as a pay in full credit card person this extra month freaks me out.

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I would like to have a fully funded 12 Month EF, truthfully I do not need that much as my job is really secure but it makes me feel better.

Today I reduced my retirement savings from 36% of my pay to 15%. This will bring me about an extra $700 per month into my take home. I plan to use the extra money to fund the Emergency Fund, The House Payment Fund and The Escrow Fund. (Basically I have the Emergency Fund broken down three ways) I figure if something were to happen then why breakup the fund to those three things when I can just break them up now.

Once the Emergency Funds are funded I need to save for the Deck and for a larger house repair fund. The Deck is a Need as it is a safety thing. I have a walk out lower level so without the deck if there was a fire at the front of the house the only way out the top floor would be the two story windows. The house repair fund is currently being fed $100 per month. I would like at least $2000 in the account. The deductible on the homeowners insurance is 1000 and I want to have atleast 1000 for repairs.

Once that all happens then I will raise back my retirement savings. It really hurts to reduce my retirement saving BUT truthfully if I continue how I am saving for retirement I will have $50K per year income and I am currently living off of $29K per year with the mortgage payment so I should not be stressing.

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I hope to have a rummage sale this weekend to help pay for the furniture and to also reduce the clutter in my life.

I was trying to think of ways to increase my income. I could get a parttime job (but this would require permission from my employer). I could sell stuff, which is why I am having a rummage sale/sales. Or I could think about having a roommate or two. I am not ready to go the roommate route because I like being able to live my life without having to worry about noise from other. Also if I get a parttime job I would have to line up daycare. So I am not sure what I will do for extra money once I sell everything that I can sell.

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Hopefully I will get clearity as time goes on, I just feel so pulled in so many ways.

7 Responses to “Temporary Buyers remorse, and Change of Retirement Savings”

  1. creditcardfree Says:

    Wow! You were really saving big for retirement. Nice. I do think you made a wise move to use it for emergency fund savings.

    I think in the long run you won't regret your furniture decision. I would likely find any cash I can, such as you rummage sale and put that towards the furniture. Then just before the due date, I would use the cash you have on hand to pay off the credit card. Then...just start builing your ef again. All this does is put you back a little bit on your ef timeline.

  2. CB in the City Says:

    Furniture is just one of those things you need. Some people go extravagant, but if you got a good deal, then you filled a need without going overboard. Don't stress about it.

  3. north georgia gal Says:

    I agree. You got a great deal and didn't randomly purchase the most expensive set. You will get it paid off in no time!

  4. Joan.of.the.Arch Says:

    Oh yeah. I could not handle that much new furniture at once. Use it well. Smile

  5. My English Castle Says:

    Admirable retirement percentage! I hope your new furniture is beautiful!

  6. LittleMsMom Says:

    I really like the new furniture. I will post a picture once it gets delivered.

    It is a step towards the new me, new comfy clean life. I bought a rectanguler sign for the wall for the upstairs livingroom. My cousin has the same sign and I have been looking for it for ages and found it at art and the park this 4th of July Holiday. Now I just need a picture to put under it and my upstairs livingroom is going to be a nice relaxing area for me to unwind and read.

  7. ThriftoRama Says:

    Do you have a job or any skills where you could freelance at home, at night, like when the kids are asleep? That is what I do, so I don't have to pay extra for kiddie care.

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