YNAB You Need A Budget

[malisab]

...you don't replace often, but you do replace.

What's sparking this is that we're going to start shopping for a new bed. We've realized that we're in need of a new mattress for a couple years. Our current one is 10 years old. And a local mattress seller is running an ad these days that you should replace your mattress every 8 years. It seems too often to me, but when I think about when we started thinking we could use a new one...it WAS about 8 years out. I'm planning on buying one this summer, and then putting enough away to buy one in 8 years. I would hope I won't have to, but as bad as the ad is, I appreciate the guideline as a starting point or something to shoot for.

This got me thinking about other things that DH and I have bought and bought again in our 14 years together/10 years in our house. We bought a new fridge when we moved in. We replaced it last spring. I figure 10 years is probably a good guideline for a fridge. Again, I bet it could last longer and we could have gotten it fixed instead of replacing it but with changes in technology, yada, yada...it's something to shoot for.

We are trying to decide what to do about our couch and chair that we live on. They've got lots of good points and lots of bad points. We're going to look into our options to recover, get new pillows, or buy new. It's about 8 years old. I've spent more time on this couch than I have any piece of furniture except one chair from my childhood. I know exactly what I like about it and what I don't. I'd like to think that if we bought something new and could integrate all of our wants and needs, we'd never replace it. But...the reality is that SOMETHING would need to be done in another 8-10 years, I bet.

And then there are electronics/computers. More often a want than a need, I am going to start putting money aside monthly for the inevitable upgrade to TV/stereo/computers, etc.

Besides the obvious car replacement fund (which I'm far from thinking of yet) and the ones I've put here (bed, fridge, couch, and electronics/computers), what can you think of that are sizable (in the $1000 or over range) and will inevitably need replacing every once in a while?

[railbird]

If you own a house, plan for the big three - I unfortunately bought all three on the same day last year which I was not planning on - roof, furnace and CAC. Also you may have to worry about fence and/or driveway replacement.

[malisab]

If you own a house, plan for the big three - I unfortunately bought all three on the same day last year which I was not planning on - roof, furnace and CAC. Also you may have to worry about fence and/or driveway replacement.

Thanks. I think of things done to the house with a different part of my brain. I've been pretty successful at turning that part off, I think. I try to ignore that "r" word. But I suppose when I ask a question like this, I really should pay attention to those answers. Yes, I should plan for those. Thanks.

[CaptainCupcake]

I always forget (and end up 'borrowing' from other budget categories):

- Bedclothes (sheets, pillows, quilt covers, blankets etc)
- Kitchen tools (had to use a can of veggies as a meat mallet the other day, 'cause you know what? Seems I don't own one!)
- Crockery (through breakage, or to update that 70's kitsch)

Other thoughts:

- Pets (not a nice thought, I know, but my last puppy cost $500)
- Lawnmower (I inherited my dear Auntie's just weeks before I need to buy one of my own)
- Curtains (thanks, kitty )
- New 'arrivals' (sure, you're not planning on kids, but it could happen, right?)

I'm sure there are plenty others.

[c9consulting]

I may have come in too late, but definitely remember washer and dryer appliances.

[lautzu]

I think you've gotten most of them, but a few more for the house: Don't forget the paint job (not something you "buy" so to speak, but a very expensive one if you have someone else do it), carpets, hot water heater.

[Maggie Magpie]

How about dental expenses......crown replacement? Filling replacement?

[shandsh]

I would never set up a separate budget item for all of these things. I have a house repairs/maintenance that I would use for any thing like that, even appliances. Same for the car repairs/maintenance. I would create a new one for technology/electronics though because that is a good point and those items are usually replaced more often than even appliances because they are outdated and obsolete so quickly. There's no money in these buckets yet but I'm trying. I'm new to this so I can usually squirrel away a few dollars here and there. I actually think I have $5 in the house fund right now.

[debtbuster]

I totally agree about "lumping" these expenses together.

There are some guidelines regarding how much to set aside for "home" each year. A common one is a sinking fund of 1-3% of the home and land's assessed value per year.

I also have a "household" line where some of those smaller things would also fall if needed.

This to me is separate from the "emergency fund" which would cover larger emergencies.

[ladymari]

mmmm some of the house stuff might include heating, air conditioning {also checking your duct work and having it repaired or replaced if you have central air}, additional insulation, weatherstripping, etc. if your windows aren't at least thermopane then think about replacing as soon as possible;

roof will depend on type and age now; my 25 year shingles are 23 years old and the west side of the roof is beginning to look it;probably just a few more years before it's leaking; sooner if a bad storm/tree limbs hit it.

carpet, drapes, mini blinds, light fixtures they don't quit too often but I've had one go [el cheapo contractors...] ceiling fans, one went in 8 years, the other has lasted 12 and so far so good. And of course, furniture

Hot water heater, all your kitchen appliances, from stove, fridge, dish washer, mixer, blender, coffee maker....

Painting inside and out

At the moment I have just achieved bufferland and am working on the last of the debt. I do have a nice E-fund, so if the fridge, stove or washer go out, i could take it out of there. Smaller appliances like coffee maker, crockpot, ect. just come out of my 'household' category which is basically what I spend at Walmart on house stuff like towels, linens, cleaning supplies.

i should be debt free in 13months [oh Yeah, I'm excited!!!] At that time I will save up to remodel the kitchen and may replace the appliances then. Since I'll be raising the roof, that will take care of the shingles And after that I'll probably just make a house; maintenance and repair category.

Car; besides gas, registration and insurance, I have category for oil changes which I do every 3 months/3000 miles. After having to scrape up enough to buy a new set of tires when needed I now have a tire category. Add 10% of the cost of the tires, to account for price increase; 60,000 mile warranty, I don't drive 1000 miles most months, but close sometimes, so divide and get 60 months divided by cost. Save that every month; Once I am debt free I will have a category to replace the car, cuz I would like to pay cash for the next one and not have any payments. + some extra for future repairs

I also have a category I called "I wanna new...." for things like a better camera, computer, etc. I just know what it is I'm saving for and save for one Cool New Thing at a time

[Nutmegan]

New carpeting/flooring (or refinishing)

We just had a tree come down and want to replace it.

in with appliances: disposals, dishwashers, de-humidifiers, water tanks, sprinkler systems

New windows (roof, fence, driveway, interior/exterior painting)

I would not "budget" for each and every one of these things, I have a home maintenance/repair account where 99% of this would come from. What you contribute to it is up to you, but they say you should save something like 1.5 - 2% per year of the value of your house for maintenance and repairs -- divide by 12 for a monthly amount. Things like roofs, driveways, etc. would take awhile to build up, but if you can leave it somewhere and only use it for that, it will be there when you need it.

[bookman413]

The mattress co. would love you to think that you should get a new one every 8 years.

Mine is 20 years old, and others in my house are 50 years old. I don't plan on replacing any of them because they are fine--at least they are fine to me.

Anyways, for things like this that are extremely occasional I would just use long term savings for it--maybe part of my years' worth of income replacement fund that I am building. Unless you know for a fact that you are going to get something in x years it doesn't really make sense to budget for it. If it's already on your radar and you are planning on replacing it then I'd make a budget category for it, but not otherwise. I'd just pull money from savings. You could also start a home furnishings category.

BTW, if you have a high quality couch that you like but is getting long in the tooth, you can have it completely reulphostered for much less than a new couch of high quality. It usually costs $600-$1200. I had one of mine done recently for a total of $1000 and it's now gorgeous, just like having a new couch--actually higher quality because the frame on this one is of a kind that just isn't made anymore because cheaper designs hold sway these days. It's not just the outer fabric that gets done but the spring bed gets retied and new cushioning goes in.