# Cost analysis: Water consumption

After looking at our water/sewer/garbage bill, I have come to the conclusion that we use a ton of water.  Even during low water usage months, Mr. LL and I average (at the lowest) 50 gallons of water per day.  During peak season (May to September), water costs about \$.022/gallon, including the sewer rate.  Our low flow shower head uses about 5 gallons of water per minute, and one toilet flush uses 1.6 gallons.

We have an on-demand water heater, so we have to wait for a while for the water to warm up.  Even if we took only 5-minute showers, it would still take a minute or two for the water to be tolerable.  In the winter, it takes longer for water to warm up.  If we each took a 7-minute shower at home every day, it would cost \$1.54/day.  It would cost about \$.21 to flush the toilet a total of 6 times per day.  For just bathing and flushing the toilet alone, it would cost about \$52.50/month.  If we were able to cut down to 5-minute showers, we could cut our cost by \$.44/day, or about \$13.20/month.  That would be a 25% reduction.

It’s interesting to me to see that a shower costs \$.77, because I haven’t ever looked at the bill closely enough to really parse out the costs.

# Tracking spending

Mr. LL and I have been regularly tracking spending for about 9 months using a simple Excel spreadsheet into which we enter all our receipts and debits for the month.  We have a master category of lists (from gym and mobile phones to toiletries and sewage capacity charge) that we itemize along with one total that doesn’t include our mortgage, and a grand total that includes it.  That way we get the actual amount of money that we are spending each month, along with the total amount of spending that is adjustable based on various small decisions that we make.  We can also see what specific categories that we can spend less on.  It has been really inspiring to see how much we can cut in a variety of areas to add up to big changes.

# What to do with extra money – buy more stocks?

When the stock market started to dip after a long period of highs, I asked my husband if we wanted to buy more stocks with our “extra” money (extra service contracts, money saved from housekeeping and hair-cutting, etc.).  To which he said, “What, you want to try to time the market?”

Our strategy has just been to do dollar cost averaging through identical automatic investments every month in a variety of different funds.  It’s worked out well for us thus far, although we do occasionally make large purchases (from tax returns or bonuses) into our existing stock and bond funds.  When we have extra money to invest, it makes sense to spread it out and maintain a diversified portfolio – stocks, bonds, REITs, international, domestic, etc.

# Asset allocation in 403(b)

I recently did a quick reallocation of my retirement funds.  When I first opened my 403(b), I opted for a 2040 target retirement fund (although obviously I am planning on retiring earlier than that).  The Fidelity fund had a .79% expense ratio, which is really quite high.  I was really paying a pretty steep fee for the automatic reallocation of my assets, when I could just do it myself quite easily.

I went ahead and re-balanced my retirement funds so that I have 80% in a total stock  market index fund with a .10% expense ratio and 20% in a total bond market index fund with a .45% expense ratio.  I have the option to invest in a less expensive bond fund, but I would have to pay a transaction fee since it is not a Fidelity fund, and I am not sure how much I would save overall by doing that.  I’ll have to re-balance periodically in the future, depending on how the market goes, but it was really quite painless to do it the first time, so I’ll keep an eye on it and reallocate when I need to.

I wish I had the same option to re-balance my teacher retirement fund, but the pickings are slim for low expense ratio funds, and my current retirement fund expense ratio is relatively low compared to what my 403(b) target retirement fund was.

# What will you do when you’re retired??

As Mr. LL and my respective mothers ask us about early retirement.

“Well, what do YOU do?” we are tempted to respond to our respective mothers, one of whom is retired and the other of whom is a stay-at-home-mom.  If Mr. LL and I have kids, and are able to retire, we’ll do stay-at-home-parent stuff, and if we don’t have kids and are retired, we’ll do retirement stuff.  However, this is a bit of a glib answer and we don’t respond in this way.  But it is also hard to exactly describe what early retirement might look like.

We want to do even more outdoor recreation – camping, hiking, backpacking, biking, kayaking, snowshoeing, exploring state and national parks – whatever strikes our fancy.  And we want to do it off-peak, so that we aren’t always competing with the weekend rush to the mountain.  I am interested in doing even more baking and cooking and culinary experimenting, as well as more sewing, knitting, and gardening.  I want to learn more Spanish and Japanese, and get better at playing the flute.  I want to learn how to make furniture.  I want to be able to draw and do oil paint portraits.  I want to try new jobs and volunteer without worrying about career gaps or lack of experience.

Maybe I want to do these things and stay in my current job.  Or go half-time in my current job.  I want to always have goals that I am striving toward.  I want to develop expertise in something.  I want to spend a lot of time with my family.

# Considerations in having kids

When I was a teenager and young adult, I didn’t think I wanted kids, despite having always liked them and enjoyed being with them.  I ended up becoming an elementary school teacher and have found things to like about every age I’ve taught from preschool to ninth grade.  When I got married, I thought that I would want kids for sure, but in some nebulous future.  Future-me would want them even if present-me didn’t have any desire for them.  Maybe in 4-5 years or so.

Well, it’s the future and I am still on the fence.  Love my nieces, but also love to give them back.  Love my students, but also love to go home.  Love my free time and my time with my husband.  People say it’s different if it’s yours, priorities change, etc.

Maybe there are people out there who wanted kids and regret having them, but human psychology militates against this happening frequently or pervasively.  Alternatively, maybe there are people who never wanted kids and don’t regret not having them.

And maybe people who are on the fence like me fall on both sides.

Although Mr. LL and I are all frugal now, money isn’t what keeps us from making the leap into totally wanting kids NINE MONTHS FROM NOW.  Maybe in a year or two.  (Which is pretty much what we’ve been saying for about 6 years now.)  I’ve taught in both Title I schools and private schools.  There are delightful, happy, and well-adjusted kids everywhere, regardless of socioeconomic status.  I believe that children cost as much as you are willing to spend on them.  It’ll cost some amount more than we currently spend, but we will have to decide when the time comes just how much that amount is.

I think human nature being what it is, in the future I will probably not regret having kids if I have them, but will probably regret not having them.  This is just for me, someone who is ambivalent about having kids, but with my ambivalence a little closer to the having kids side.