What do you spend money on?

There is an article in the New York Times Today about how spending money on experiences makes you happier than spending money on stuff (including real estate).  I feel like I've known this instinctively all along. In my 20s, when I didn't save outside of my 401K, I spent all of my money on traveling and going out to dinner with my friends. I had no fancy clothes, purses, furniture or shoes.  Just a lot of fun. This used to depress me. In my early 30s I thought, "I spent all this money and I literally have nothing to show for it." But now I look back fondly on that time and I know I always will savor those memories of early adulthood freedom in NYC.

I've continued the trend (well, not spending all my money luckily) but spending on experiences.  I just took a look at my spending for the year so far. The top categories (outside of the mortgage) are Travel and Food and Dining, with Health Care in 3rd.  Health Care expenses for me are seeing a therapist I really love and learn from and my acupuncturist which makes me feel amazing and helps me keep a chronic illness under control. When I do buy stuff, it's mostly sporting goods I need to practice my favorite sports/hobbies with my friends.

So yay to not spending on stuff, but yay to spending on fun experiences with friends and family and really enjoying life.

Boring

I haven't posted in a bit because things have been moving along. Nothing spectacular, except the performance of the stock market. I held out investing my bonus in January, now I wish I had dumped it all into the market and ridden this high. I'm still waiting to see if there's any kind of dip and will invest then. 

I'm still spending too much money on food, but did cut down on lunch spending by going to the grocery store 1x a week and making lunch at work instead of buying it every day. I think that helped offset some food expenses.

I worked out I've been spending about $500 a month on healthcare expenses, in addition to the $200 I put aside in my flex spending. I don't really feel like there are ways to reduce this expense. I'd rather reduce in other areas if I need to.

To date this year I have barely spent anything on clothes. As a result, I feel a kind of pent up demand. I fully anticipate increasing spending in this area in the rest of the year. I had consciously held off on clothing purchases to try to offset my significant healthcare spending.

I'll do a mid-year budget update in early July, along with a networth update.

Does More Money Make Us Fat?

One thing I never expected to miss when I moved from my 4th floor walkup was the stairs. Or the weekly trip to the laundromat. Or hauling heavy things up the stairs. Or all the stairs I had to walk in my old commute.  Or not having a dishwasher. I joke that moving to my condo was akin to the industrial revolution, my own personal industrial revolution. But now that I've left the pre-modern world behind and have all the "mod cons" of a dishwasher, a washer dryer in my house and a short flight of stairs to climb, I find I miss the old "inconveniences" because I get a lot less exercise. I thought when I moved I would use the time I gained to work out more, but that hasn't happened. I don't know where the time went. But I have definitely gained a few pounds since moving and I really miss having to work as hard physically to do my daily tasks. I was reminded of that when reading this special report on obesity in the Economist. A really interesting read: http://www.economist.com/news/special-report/21568065-world-getting-wider-says-charlotte-howard-what-can-be-done-about-it-big

Changing Expenses for Next Year

So just as I was feeling all smug about keeping my ongoing expenses down, my benefits changed at work (or will change as of Jan 1). Overall, the new benefits are much better than the old. I am truly grateful to my company, as they are adding long-term disability as a benefit! Something I pay $1400 for a year right now. Of course I'll have to buy a small supplemental policy, but it should shave like $100 off my monthly costs. So that's great.

The insurance is also a much stronger plan, except of course in my case because my therapist is out of network. If she were in-network, this plan would be a dream. But since she's not there is a HIGH (2K) deductible and the worst part is that the initial plan year is only 5 months. So to continue seeing my same therapist I am going to have to bite the bullet. It's going to cost me $2300 for the first five months of the year, and that's for only 3 visits a month.

That said, I can still afford it, and to me, it's worth it, although it is a steep price. I am going to use that time to really work hard and hopefully not need as much therapy, but also to find an in-network therapist that I can switch to in June.

I will take advantage of the FSA, so at least I will be paying this big bill in pre-tax dollars.

I will have a ton of deductions from my paycheck:
401K
Transit Reimbursement
FSA

That will over all help to lower my tax bill, and hopefully I will barely pay anything for health expenses in post-tax dollars.

Money in, Money out

I was going to do my midyear budget update, so I can compare it against last year's and try to make myself feel like I'm not reeaally spending so much more this year, haha. However, I realized its hard to keep track of my expenses right now. I still download my Mint transactions every month and categorize them in an Excel grid. But even in my not very active balance sheet there are certain expenses that make things more complicated. These fall into a few categories:
1. Work-reimbursed expenses: I always have $ outstanding that work owes me. Usually at least a few thousand dollars.
2. Health care: This year this is complicated. I pay for my care, and then for $1250 worth, my company reimburses me. For $1,000, it comes from my FSA. Also, right now I've got a $600 claim that just got denied. I have to call on Monday and figure out why they are not covering it. I think I needed preapproval (despite being told I didnt), so that could be a very costly mistake.
3. New furniture: Right now this is an off-balance sheet expense. I'm just recording my monthly minimum payments of $42. For same reason I am carrying this on a card for six months, I don't want to put it on the balance sheet!

Next week I should have a better understanding of what part of healthcare is still outstanding and in two weeks I should get a new expense report. Of course I already have work travel between then, so I'll rack up more expenses.

Overall, I know that I've spent a lot more on clothes, health care, furniture (4,000 more!) and possibly travel than last year. But I think my quality of life is better and I'm feeling more balanced.

Can't spend enough

There's one thing that I think it's more than okay to spend on. In fact, I can't spend enough on this! It's my health. Okay, that's how I wish I felt. Sadly, I sometimes delay health spending that I need (not critical, but still). That has backfired in the past. In grad school (sans dental insurance) I waited a year to get my teeth cleaned. For most people, probably not a big deal. For me, I knew it could be bad. And it was. I eventually had pain and was then forced to go get a cleaning. However, because I had waited there was so much plaque they had to do it in two visits, hence costing double the normal amount.

So I realized finally hey, I have health and dental insurance. That is a luxury in many parts of the world. I should take advantage of this. So I'm going to the dentist, eye doctor, a therapist (mental health is important too), possibly the acupuncturist and the orthodontist. This in reality shouldn't cost too much, due to my insurance. However, the orthodontist could be a couple of hundred dollars and the therapist could be several hundred dollars a month. I'm forcing myself to spend this money, because there is nothing more important to spend on. This is what my FSA is for, so it's nice to know it will be tax-free money at least. Now I wish I had dumped more in there.