Pensions Planning: The NUMBER

Sea_Shell

westv said:

I am very curious as to why some people have numerous spending catergories.
They just like the detail? Knowing where you can cut spending if needed? Something else?

It a [sad] hobby of sorts 😁😉😇

But then I was part time for quite a few years before full retirement, so I had time to do such things.   I've just carried on.   

Knowledge is power!! 

Pat38493

westv said:

I am very curious as to why some people have numerous spending catergories.
They just like the detail? Knowing where you can cut spending if needed? Something else?

It allows you to very quickly see what the impact of any change is e.g. what if I cancelled all TV subscriptions, what if I downsize the house and take 20% of various line items.

QrizB

Phossy said:

..but what is essential? I definitely put our food bill into 'essential', however, is it all really essential. Break it down one day into what you eat and what you drink. How much you save by drinking tap water only for example.

That leads to questions like eg. should you put the price of a supermarket "value" pasta in the Essentials column, and then the extra you spent because you bought fancy pasta instead in the Luxuries column?

Sea_Shell

QrizB said:

Phossy said:

..but what is essential? I definitely put our food bill into 'essential', however, is it all really essential. Break it down one day into what you eat and what you drink. How much you save by drinking tap water only for example.

That leads to questions like eg. should you put the price of a supermarket "value" pasta in the Essentials column, and then the extra you spent because you bought fancy pasta instead in the Luxuries column?

Everything over and above porridge, rice and beans is not "essential" 😉

westv

All food is essential. The variation is how much you spend per month on it.

Stubod

..essential (for me) is everything that we have to spend to exist, eg food, electric, council tax, water rates house repairs etc. None essential is what else we spend on oursleves, eg holidays, days out, meals out and the like....each to their own.

LHW99

I tend to have food/fuel, direct debits and "other". The last one is where I can make savings if I have to

QrizB

LHW99 said:

I tend to have food/fuel, direct debits and "other". The last one is where I can make savings if I have to

Maslow's Hierarchy of Needs, reinvented for retirement planning purposes

LHW99

QrizB said:

LHW99 said:

I tend to have food/fuel, direct debits and "other". The last one is where I can make savings if I have to

Maslow's Hierarchy of Needs, reinvented for retirement planning purposes

Aagh! Psychology AND sociology - I never knew

barnstar2077

Sea_Shell said:

QrizB said:

Phossy said:

..but what is essential? I definitely put our food bill into 'essential', however, is it all really essential. Break it down one day into what you eat and what you drink. How much you save by drinking tap water only for example.

That leads to questions like eg. should you put the price of a supermarket "value" pasta in the Essentials column, and then the extra you spent because you bought fancy pasta instead in the Luxuries column?

Everything over and above porridge, rice and beans is not "essential" 😉

Beans?!  Water & stale bread is the baseline in my opinion, everything else is pure luxury!  : )