Yearly Savings Plan Changes
December 5, 2010 2 Comments
You would think that maybe yearly savings goals don’t change. But it turns out they do!
I decided to reassess my yearly savings goals for a few reasons:
1. I undersaved for auto expenses both this year and last year. While I thought one year might have been a fluke, two years in a row definitely is not. I need to be saving quite a bit more to keep my car running.
2. I have an employer contributed Health Savings Account now. My employer is contributing $118.56 per month towards an interest bearing HSA account for me. The plan is pretty sweet as the money doesn’t expire each year so as long as I’m healthy the account just keeps growing. Also, I can use the money in it to pay for eye exams and contacts, which my new insurance doesn’t cover. Because of this new account I don’t need to continue to contribute $20/month towards my health like I was. Now my employer contributes even MORE for me!
3. My employer pays my professor affiliation dues now. I used to save $5/month to pay my registration dues to the American Chemical Society. Now my employer pays it for me so I don’t have to worry about saving for it any more.
4. Car and apartment insurance. I used to pay my car insurance monthly, but since I had the money to pay it in full last time I payed it (and save a good $20 or so) I did that. Now I’m saving up monthly into my yearly savings account so that I can pay it every 6 months rather than monthly. As well, I previously did not have renters insurance. My new apartment requires it, and it is a good idea, so I am saving monthly for that yearly expense as well.
5. Increased contribution to pet vaccinations. My previous location I had access to a really great low cost vaccination clinic. I’m not sure when vaccinations come around again that I’ll be so lucky to find as good of a deal here in Kansas City. The previous place did everything at cost, so even low cost vaccinations clinics here might be a little more expensive. Just to be sure I’ve upped my contributions to my pet vaccination fund. I’ll reassess this after I’ve gone through a round of vaccinations here to see how much it will REALLY cost me. Unfortunately none of the lost cost clinics in the area post their prices on their websites. Bummer.
6. Decreased contribution to haircut savings. Why? I’ve been saving $15/month to this for two years and have never used up all the money in this account. So I’m decreasing my contribution by $5. I only cut my hair 3 times per year (at most), and generally I go to places that are $35 for a cut plus tip. So not terribly expensive. I also toyed with just cutting this out of my yearly savings all together and just paying for my haircuts out of my normal every day expenses. However I’m leaving it in for now and I’ll just pay for any overages with my normal spending accounts.
Here’s how the numbers look for each category, previous and current:
I theoretically will be saving more per month. But since I’m not contributing to monthly payments to my car insurance it actually ends up being the same amount of money. (Also, spoiler alert, I switched to paying $235/month when I moved because I payed the insurance fees in August). So while it appears as if I’m saving more, I’m actually just reallocating where the money is going each month.