I am now thirty three sleeps away from retiring, or if you prefer, three pay days away.
As the Stone’s CFO, I finally took the budget I had drawn up and sorted out what bank accounts we will need to make sure our finances work seamlessly (hopefully). Micromanaging, possibly? Overkill, perhaps? Yeah, maybe, but I prefer to think of it as mitigating risk – simply, I don’t want any cash flow problems in the future which may result in me needing to return to paid employment! Ever.
I, therefore, approached the task with a level of precision that wouldn’t go amiss in a military operation. Firstly, I worked out what expenses needed to be grouped together e.g. fortnightly, monthly, annually, one-off costs. This information was used to establish what bank accounts we needed. Using the budget figures, I then calculated how much I needed to deposit in each of these accounts to meet our expenses. I decided to deposit money in each account fortnightly as this aligned with the man’s superannuation payment ( this superannnuation will be topped up with a set amount from savings to meet the budget shortfall). I saved this bank account structure information in my computer, but I also printed it off for the study wall as I prefer using the old hard copy to refer to!
Now I have the outgoings structured, I do need to review where we have our savings deposited which we will be using over the next three years. At the moment we have money in the bank but the interest rate is far from flash. We also need to do something about the man’s Kiwisaver which remains untouched and wallowing in a conservative fund with an abysmal return rate at the moment – indeed, it is way below the inflation rate which is not something to make a CFO smile.
Yes, more to sort, but it will be absolutely worth it, I have no doubt.
Bank Account structure:
|KIwibank – (Account 1) monthly bills|
|Slingshot – mobile phones/internet||xxx||xx xmonthly total||xxxx fortnightly expense|
ASB Joint account – Yearly expenses
|Car Regos||xxx||$total cost||$xxx monthly||$xxx fortnightly|
Kiwibank –(Account 2) Monthly- Food and Petrol
|Christmas savings (supermarket club)||xxx||$ xxx monthly||$xxxfortnightly|
|Heather – (personal bank account)-||$xxx per fortnight|
|Grant – (personal bank account)||$xxx per fortnight|
Discretionary spending e.g. clothes, hair cuts, meals out, outings, small NZ trips, doctor’s bills will be funded from our own personal bank accounts. Overseas trips (unlikely, while Covid is impacting on the world) and other big adventures, or unexpected expenses will be funded from our retirement funds which are separate from these accounts. Ditto: home improvements. Although we live pretty frugally naturally, our intention is to have an enjoyable retirement and do what we want -after all, you can’t take it with you!