Setting up a tool budget

[Michael Ballent]

Just curious what how you guys allocate funds for tool purchases. LOML has agreed to setting up a tool budget, just not sure how much it should be :confused: I do not want to give her a heart attack, but I would like to be able to get a large tool ($500+) if needed once in a while. I already have most of the large tools but there are always things that can be upgraded or just added in.

She has already put the hammer down on a lathe purchase until all my other projects are complete, I understand her position :o. So any thoughts out there

[Kent Cori]

Tool Budget is an oxymoron and an immoral thought! :eek:

However, I use a limit of about $300 for my ad hoc purchases. For anything more than that, I casually make a sublte hint, move quickly to some well timed begging followed by some first class groveling. It's not that I need to do this to get the LOML to agree, it's just that it gives her such a kick! :D

[Chris Padilla]

I allocate whatever I can convince the wife I need. Just remember that all new projects require at least 1 new tool (price unknown!) and more likely 2. :D

[Michael Ballent]

In case you guys were not aware my wife has an MBA and just finished her Certificate for Accountancy and beginning to study for the CPA :eek: Who knew that she would end up a bean counter... surprise purchases are not in the books :cool: so for peace in the house she has to have a budget line item in Quicken Just not sure what that number should be... 200/month (not a chance) I think that I can swing letting it ride year to year so that I can accumilate for big purchases like the MM16. I just make the money and she manages it :confused:

[Larry Browning]

In theroy, a tool budget is a wonderful thing! What I did was set up a virtual savings account in my checkbook program(MS money) I then move at least $50 to $100 a month into this account. I can then spend all I want to out of this account, but can never make it go negative.
Now this seems to work only in theroy.
Either LOML needs a little extra for something (it's always a necessary purchase) and she robs my stash just before I pull the trigger on great tool I "need" or I what I want is just a few dollars more than is in the account etc...etc... I always am thinking that this will straighten out and work the way it was invisioned, but so far not so. But I think it is still a good idea, it just needs a little tweeking. Maybe I should set up an actual account at the bank and have money transfered to it automaticly like a monthly bill.

Or maybe begging and whining is the best way to go :confused: What do you guys think?

[Chris Padilla]

I beg and whine....

[Steve Clardy]

Oh.:o Tool Budget.:confused: Well, never was such a thing as that around here with me being in charge of tools.:rolleyes:
I usually just BUY them, then suffer through the consequences from LOML:eek:

Course, if they aren't big and SHINY and bright RED or YELLOW:eek: or something that stands out, or She's not home when whatever the purchase was and doesn't see it unloaded, I usually manage to creep it into the mainstream shop of toys, er tools.:D

Steve

[Ian Barley]

What? That? No I've had it for ages and got it cheap second-hand from a bloke down the pub.

Works most of the time

[Ken Garlock]

In case you guys were not aware my wife has an MBA and just finished her Certificate for Accountancy and beginning to study for the CPA :eek: Who knew that she would end up a bean counter... :

Michael, your wife already knows from the first week of accounting that you fund capital purchases with long term debt. Small purchases with current income. It is obvious that you need to take out a loan for capital investments like cabinet/band saws, planner, jointer, etc. IF it takes two or more men to move it, it is a capital investment; otherwise, it is a current expense. She will understand when you go over to the credit union to finance your new Mini-Max :D

BTW, I didn't know you needed a certificate to be accountable Just look around you, there surely are a lot of people that didn't get the word, and are just plain "no account." ;) :D

[Ken Fitzgerald]

Michael.....begging, whining and groveling works!!! But.....invest in some good quality knee pads!

[John Miliunas]

Yeah, begging and groveling can go a long way, BUT, the formemost thought you should instill in your bride is that of your SAFETY! "But Dear, it's really not safe trying to (insert action here) with that old (insert tool here)! What? Well of course that 24" band saw is MUCH safer than the little 14"-er!" :D :cool:

[Dennis Peacock]

If you can sell ice to an eskimo and you are swave' in your words to the LOYL, then you can be convincing enough to make a wise purchse once in a while.

[Kevin Gerstenecker]

It's pretty simple for me. I just tell my wonderful Wife what I want, and she says when are ya gonna order it? Heck, sometimes, she tells ME what I am gonna order. To prove that point, I will have a new Oneida Cyclone in the shop soon..................honest guys, she MADE me buy it. Honest...............you can call and ask her.................really! :D

[Steve Clardy]

It's pretty simple for me. I just tell my wonderful Wife what I want, and she says when are ya gonna order it? Heck, sometimes, she tells ME what I am gonna order. To prove that point, I will have a new Oneida Cyclone in the shop soon..................honest guys, she MADE me buy it. Honest...............you can call and ask her.................really! :D
Oops!!!!!:eek: Foul Foul Foul. You forgot to include the words----PRE-GLOAT:eek:

Sounds like a Stealth Gloat to me Kevin.:D:D lol
Steve

[John Miliunas]

It's pretty simple for me. I just tell my wonderful Wife what I want, and she says when are ya gonna order it? Heck, sometimes, she tells ME what I am gonna order. To prove that point, I will have a new Oneida Cyclone in the shop soon..................honest guys, she MADE me buy it. Honest...............you can call and ask her.................really! :D

Hey Kev, seeing as to how you're still going to be in your basement shop for a while longer, I'll bet you could con....errrrrr....talk...Yeah. Talk. That's what I meant to say! :D Anyhow, you could probably talk your way into a whole boatload of Festool pieces! :D What, with all the wonderful dust control built in to them, it should be a piece of cake! :cool:

[Scott Coffelt]

Make a list of what you want and in what priority. Determine what you can afford in your budget (i.e., $100/month). When you get to a level that hits your priority buy it. I used the got to have this to build this approach when I started. Eventually, I used the well that tool is wearing out so I need to sell it and buy something bigger. Now if its on clearance and I need it I jus buy and ask for forgiveness. Keep in mind that this is all based on the checkbbok being able to cover it. I try to limit my debt to mortgage, cars and the occasional 0% financing. So, if I buy it I must be able to caover the cost of it when the bill hits. When dealing with clients, if soemthing new is needed then it gets figured into the cost of the project.

Good Luck.

[Cecil Arnold]

Just before I built some cabinets and other things for some friends (for a bargain price) LOML said I should open a seperate checking account. Her chum, a CPA thought it was a good idea and even told me how to set up books to declare a business which allowed me to write off some things for a few years before I have to make a profit. Anything I make selling wood products goes into the seperate account. Unfortunately, my woodworking does not generate enough to pay for my new MM16 (stelth gloat) but whenever I get a chance to make a few extra bucks (teaching overload, consulting, etc) that money also goes into my "mad money account." So far, the OT has paid for a number of nice tools, and as insurance it pays for LOML's Christmas, birthday, and anniversy present. Since she keeps the household check book she is very aware that the presents come from my account. She did seem to think the MM was a little much when she accidently saw the invoice, and now that I'm talking-up a PM 3520 she has stated some concern about emptying the mad money account just as I'm ready to retire. Since she has booked a month in Europe as a shared retirement celebration she'll get over it.

[James Carmichael]

Oh.:o Tool Budget.:confused: Well, never was such a thing as that around here with me being in charge of tools.:rolleyes:
I usually just BUY them, then suffer through the consequences from LOML:eek:

Course, if they aren't big and SHINY and bright RED or YELLOW:eek: or something that stands out, or She's not home when whatever the purchase was and doesn't see it unloaded, I usually manage to creep it into the mainstream shop of toys, er tools.:D

Steve

I'll second Steve's tactic, it's easier to beg forgiveness than to get permission. Fortunately, I'm a mizer and won't buy anything unless the price is right. LOML may not comprehend the need for tools, but she does grasp terms like "sale", "closeout" and "clearance".

Ian,

I've tried that approach, she's just too alert!

[Jim Becker]

I don't have a "budget" line item in Quicken for tool purchases, but I do have several expense (read: "investment") catagories! :D

Seriously, everyone's situation is different, but no one will disagree that having a regular funding stream for a hobby is a good planning element, especially when "his" and "hers" is "theirs" in the fiancial department. It prevents misunderstandings and disagreements. (In our house, Dr SWMBO and I keep things separate, largely because we married in our 40s with well established financial habits and there was no need to fully integrate things) But I'll also add that a monthly budget might not be sufficent for a truely major purchase due to timing and accumulation rates, depending on what that budget happens to work out to. There will always be situations where you and "the boss" will need to work things out with a bit more creativity, whether it be for a new vehicle, home improvement or a major tool purchase. In those cases, it's important to consider the purchase cost out over time...a higher-end machine typically has a very long life and making the commitment "now" when you have a steady and higher income will be a lot easier than trying to do it later once you enter retirement. All within your means, of course.

[Michael Ballent]

If we had completely separate accounts I could probably get away with buying tools without her really knowing, but she is in charge of the accounts so it would be hard to convince her that some bad guy just stole my CC and dropped 500 bucks at Lee Valley ;)

I guess what I am going after is to have a steady stream of money going into a line item then if the opportunity presents itself for a large tool purchase, then the hit would not be so bad ;) since maybe 50%+ could already be allocated. LOML just does not seem to understand that there are times that having multiple routers is actually good to have :D

[John Miliunas]

Grrrrr....She sounds like a tough cookie! :( OK, if the "safety" angle and begging don't work, start producing. Get to working on those projects of hers. But, as you work on them or even in the design stages, give her some options as to how the final result(s) may look. (Pics in magazines are always good!) If you're lucky, she'll pick the look she likes, but you can't do it, due to lack of tool A, B or C! :rolleyes: Or, maybe you can "make do" with what you have, but it will take x-amount of time longer than with the "proper" tool(s)! :D For me, that's been pretty easy, because LOML does indeed have kind of esoteric tastes and I've produced enough output that, I can usually justify another purchase. Like yourself, I'm THE breadwinner in the family, so that kind of helps the cause! Good luck! :cool:

[Michael Ballent]

Grrrrr....She sounds like a tough cookie! :( OK, if the "safety" angle and begging don't work, start producing. Get to working on those projects of hers. But, as you work on them or even in the design stages, give her some options as to how the final result(s) may look. (Pics in magazines are always good!) If you're lucky, she'll pick the look she likes, but you can't do it, due to lack of tool A, B or C! :rolleyes: Or, maybe you can "make do" with what you have, but it will take x-amount of time longer than with the "proper" tool(s)! :D For me, that's been pretty easy, because LOML does indeed have kind of esoteric tastes and I've produced enough output that, I can usually justify another purchase. Like yourself, I'm THE breadwinner in the family, so that kind of helps the cause! Good luck! :cool:
:eek: Is that what I have been doing wrong... I actually have to use the "investments" ;) Once is starts to cool off I will be able to work in the shop. The list of projects just keeps growing, luckily not too fast :D

[Jack Hogoboom]

Michael,

Face it pal, you're screwed. There can't be a tool "budget" because unless you're a Todd Burch you can't ever justify anything, especially to a CPA.

I bet if any of us ever sat down to figure out what we actually spent on "tools" in a year, we'd scare ourselves silly. I know I would never want to know.

I'm at the point now where I take my expense reimbursement checks and collect them into a nice little "slush" fund that I spend on whatever I want. It's just a little trick I learned from Richard Nixon.

Your best bet is to try to squeeze something into the "miscellaneous" or "other expense" category. A lot of the companies I deal with bury all kinds of crap in those categories. Maybe you can slip that one past the wife.

Good luck.

Jack

[Jack Hogoboom]

Michael,

Another thought is to convince her that these purchases should be treated as capital expenditures to be depreciated over their useful lives rather than expensed in the year they are purchased. Look at it this way, if you spend $1,500 on a Unisaw that lasts you 30 years, then you should only be recognizing $50 in expenses every year. A router probably lasts a good five years. Jointers, planers, etc. are probably good for 15 or 20 years. Plus, if you look at the residual value of some of these tools, they may be worth as much if not more than you paid for them when you go to sell them.

If you do it this way, then no one expenditure looks unjustifiable. You can justify the capital expense by showing her how long things will last and how much it'll be worth when you want to get rid of it.

Jack