What changes are you making to your budget/finances/economic outlook these days?

[Anonymous]

I think interest rates trend higher in 12-18 months as Powell steps down and some clown replaces him. And in general basic living closets - food, energy- see inflationary pressures. So, now that we have 8 months of emergency funds set, we’re getting solar on our home. The utility keeps raising rates + the tax credit is going away Dec 31st. Payback is about 5.5 years so seems like a better use of cash than letting inflation erode our purchasing power.

[Anonymous]

*costs not closets!

[Anonymous]

What is the tax credit for AC replacement mentioned above?

[Anonymous]

We sold our house this winter/spring and bought a house with about half the proceeds (planned retirement and move). Instead of investing the proceeds immediately, we are holding it in cash. We might just spend it down and not pull anything from IRAs for the foreseeable future.

[Anonymous]

We are early retirees so DH handles the investing side of our finances, and I handle the expenses side, ie keep them low. So far this summer I have:
--gotten our monthly Internet/tv and phone bills down significantly with talking to account retention people,
--eliminated most food waste through meal planning
--obtain new items through Buy Nothing like an electric kettle, gardening supplies, plants, etc.
--do most yardwork and landscaping myself, and found neighborhood teens to pay $20 an hour for where I need extra muscle.
Little expenses add up, and luckily it becomes motivating after awhile.

[Anonymous]

I’ve got a chunk of money sitting in a money market, moving it in to the market slowly, over a period of several months. In the before times I probably would have just thrown the entire amount all at once. I may keep some out for now. Everything seems so volatile.

[Anonymous]

Anonymous wrote:Are you investing in Index Funds? Pulling out into cash? What are you doing/not doing? NOT selling or buying real estate? Hording canned goods? Just curious what people are doing in this economy. We have HHI in the 300K range and teenagers.

I will never invest in index funds for myself, but I have my reasons.
I already have one year's cash out as I don't really work much. I enjoy cutting expenses here and there or going without.
Not buying real estate any time soon. Glad to have got rid of the three properties we had.
Canned good? Perhaps. I do need to get our grocery spending of $700 under control for our family of two.
Even though I'm still young and strong, I will not work more than I feel like it, which is about 400 hours a year.
I will drop my own health insurance at the end of the year. I didn't see anyone saying that. I have other options.
I'm not adding money into the market. I make more by moving it around. I'm also trying to get most of it into Roths of my kids and myself. It will take awhile, but we will get there.
We don't have expenses besides housing and food paid by an 'annuity'. I also don't have a tax expense and the car is new.
I'm concentrating on my physical and mental health going forward as I want to live another 50 years. Expenses are under control and so are the investments.

[Anonymous]

Anonymous wrote:What is the tax credit for AC replacement mentioned above?

Here is a good summary of it. Must be done by end of 2025

https://johncipollone.com/how-the-big-beautiful-bill-impacts-hvac-tax-credits-in-2026/

[Anonymous]

PP, please tell us why you don’t invest in index funds and how you make more by moving money around.Thanks!

[Anonymous]

For sure is that the dollar will be worth less vs other country's money and those other countries will trade more with each other and less with us. So I'm moving into global etfs more than s&p, but keeping nasdaq.

[Anonymous]

I'm saving money to invest when the idiots in charge crash the economy.

[Anonymous]

Anonymous wrote:I'm saving money to invest when the idiots in charge crash the economy.

+1

[Anonymous]

Anonymous wrote:

Anonymous wrote:Still prepping for job loss (fed). Emergency fund is healthy, moving a big chunk from regular savings to money market and investments soon since I haven't lost my job as quickly as expected. Being pretty disciplined about saving 2/3 of my paycheck as soon as it hits. Changed my new TSP purchases to be heavier on I fund. Working on spending down FSAs.

How are you saving 2/3 of paycheck?

Our take home pay is $7k ($2.5k spouse, $4.5k me) and I'm putting $3k into savings immediately. So we are living off $4k/month, not the $1.5k left just from my paycheck.

I still feel like that's a pretty limited budget with two kids, though. I think if I lose my job we will need to either take some out of savings or I'll need an immediate part time job, we can't make ends meet on just spouse's salary.

[Anonymous]

I am confused. What is going on in all your lives that you are so worried and making such radical changes? Are you DOGE victims?Because things don’t seem bad to me right now.

Obviously, I hate Trump and his policies as much as the next guy, but in the broad scheme of things I’ve seen much worse economies over the years, and I’ve never deviated from my plan, like ever. I have always bought and held, and I’ve never had a problem. And I’m rich now. So what’s going on? Explain the hysteria , please.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Still prepping for job loss (fed). Emergency fund is healthy, moving a big chunk from regular savings to money market and investments soon since I haven't lost my job as quickly as expected. Being pretty disciplined about saving 2/3 of my paycheck as soon as it hits. Changed my new TSP purchases to be heavier on I fund. Working on spending down FSAs.

How are you saving 2/3 of paycheck?

DP

I’m (DH) the high earner of the household and we put 100% of my wife’s paycheck into her 403(b) until it’s maxed out.