Minimalist Money: Money, Money, Money!

Money, money, money

Must be funny

In a rich man’s world

So goes an ABBA song from my teens (yes, I’m that old). I think about money a lot. Too much. One of my goals in this journey towards a simpler life has been to decrease my financial woes and worries. It’s not that I’m poor, but I’m not rich, either. I’m somewhere in the middle. In theory, I’m fine with this.

While it would be great to win the lottery, I highly doubt I’ll get that lucky (note to self: one must buy a ticket in order to win). Anyways, we’re told that winning the lottery doesn’t make one happier (I’d be willing to participate in an experiment to prove otherwise). Fortunately, I’m not very materialistic. For years I had an old car, inexpensive clothing, and “some assembly required” furniture. For the most part, I still do, except for the car. I finally upgraded after 15 years. I now have a car manufactured in this century.

A few years ago, I sold my house for a nice profit, so why am I still feeling stressed about money? Moving is expensive, of course, as is maintaining a home. One house needed a new roof, and while the insurance paid the majority of the cost, I still had to chip in a few thousand (ouch). In recent years my adult children were in transition from school to a job or from a job back to school, so I helped them out. Pets need vet care and meds. I’d like to travel more, but I am also saving for retirement. Worrying about money has become a lifelong habit, so I’ve decided that I need to get a fresh perspective.

I’m a bit of a spreadsheet junkie and track all my expenses. Over time, I’ve developed categories to organize my finances, including fixed and non-fixed expenses, debt, income, and savings. I also include a separate tab to enter each category’s monthly sum and its average over the year. This way, unexpected expenses don’t freak me out (too much). I just look at the quarter and then the annual averages.

Tracking has helped me in several ways:

I see just how much money I’m spending on what.
I can analyze how to reduce costs in some categories.
I feel more in control by having the facts in front of me.

I have made some financial progress over the last few years. When I sold my house, I was able to pay off debts and start fresh in a less expensive one, buy a new-to-me car, and have actual savings (gasp). I have no debt except for my mortgage. With that in mind, I decide to compare my expenses over the last several years. I was shocked! My non-fixed expenses (food, entertainment, household goods, etc.) have decreased by a couple hundred on average, and my fixed expenses (mortgage, regular monthly bills) have decreased even more. I’ve cut costs significantly! OK, no more whining from me.

Still, there’s a limit to how much lower I can go. With that in mind, decluttering my possessions has taken on a new energy. I still fight money anxiety with my inner child of the past who didn’t have as much as the other kids, the broke college student, and the struggling single parent. But the numbers don’t lie. Tracking my expenses, I can see in black and white that I’ve come a long way. I guess I don’t need that lottery ticket after all.