Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Re: $50 a day? No way!
Old 09-03-2003, 03:50 AM   #21
Thinks s/he gets paid by the post
 
Join Date: Dec 2002
Posts: 3,875
Re: $50 a day? No way!

Hi Chris. My wife lived in Michigan her whole life until
she met me. I lived there for many years. May be our
favorite northern state. We briefly considered moving back, but we just don't like the winters (never did to be
honest). Soooooooooo, we will soon be "gone to Texas."
__________________

__________________
MRGALT2U is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: $50 a day? No way!
Old 09-08-2003, 10:57 AM   #22
Dryer sheet aficionado
 
Join Date: Mar 2003
Posts: 28
Re: $50 a day? No way!

Here's my 2 cents on $50/day...if you are willing to live 50 years in the past you can comfortably live on 50 bucks a day. If you' give in to the commercialism of corporate american and the advertisement industry you are doomed from the get go.

Full Disclosure: We live on $72/Day with a wife and 3 children under 5...however, annual housing expenses are only $2800 for taxes and insurance. I will say it's not the easiest existence, but the freedom is worth the lost purchasing power.
__________________

__________________
Barnstormer is offline   Reply With Quote
Re: $50 a day? No way!
Old 09-10-2003, 05:40 PM   #23
Thinks s/he gets paid by the post
 
Join Date: Dec 2002
Posts: 3,875
Re: $50 a day? No way!

Re. "the freedom is worth the lost purchasing power."
So true! When I was last employed I drove Cadillacs.
Now I drive a 6 year old pick up. I lived in a luxury
apartment in an upscale part of Dallas (rent $1750 per month). Now we live in a cottage in the country that
I bought for $68,000 cash. In fact, we live on less
total than I used to pay for rent alone. Now, that's
downsizing.
__________________
MRGALT2U is offline   Reply With Quote
Re: $50 a day? No way!
Old 09-10-2003, 07:32 PM   #24
Dryer sheet aficionado
 
Join Date: Aug 2003
Posts: 37
Re: $50 a day? No way!

My wife and I have been going over and over our retirement budget and have been able to categorize those things that are deemed as fixed expenses, i.e., taxes, insurance etc. and those that are discretionary.

We plan on a lot of discretionary spending going out of the gate, but will slow down our spending as we slow down. We can easily survive "bare bones" on our pension alone. But we will also have income coming in from our investments and from rental property.

To be in this position, we've lived simply and way below our means, paid off our debts and saved, saved, saved. We're fortunate that we don't have to live off $50 per day, but are confident we could if required. Heck, we did that when we were first married, living off love and peanut butter!
__________________
As you simplify your life, the laws of the universe will be simpler; solitude will not be solitude, poverty will not be poverty, nor weakness weakness. -- Henry David Thoreau <br />
proud_texan is offline   Reply With Quote
Re: $50 a day? No way!
Old 09-21-2003, 05:17 PM   #25
Confused about dryer sheets
 
Join Date: Sep 2003
Posts: 7
Re: $50 a day? No way!

Quote:
When I was in the planning stages for ER, I thought I could live on expenses of $50 per day. *

After eight months of retirement, I have to come clean and admit--was I ever wrong. *What was I thinking? *

You see, I've only managed to spend $41 per day. And that includes much higher than anticipated entertainment and fuel costs. *

That per day cost should be even lower by years end since most of my expensive variable costs for the year have already been paid. *

This was my experience also. I ended up only needing half of what I thought I would need. I live a pretty minimalistic lifestyle even when I owned my own home, but found that I was cutting down on things a lot (very happily) without even trying. Having a job was more costlier than I though! Just quitting work saved me a ton of money I hadn't counted on.

I live on A LOT less than everyone here - I lived on about $500/month (all basic living expenses except travel which was ariable but usually between $200 - $500/month) when I owned a paid for house and now, after selling the house over a year ago & now travelling full time or renting (shared condo) my total expenses (for everything) average $1000/month. I'm definentely not suffering either :-)! I've been tracking my expenses for years now and have been retired going on my 5th year so I'm not too delusional :-)!
Cody
P.S. Emergency expenses (new water heater, new tires, vet bills, etc) would come out of an emergency fund or out of my travel expense fund which was set aside at $500/month

__________________
Cody is offline   Reply With Quote
Re: $50 a day? No way!
Old 09-24-2003, 06:55 PM   #26
 
Posts: n/a
Re: $50 a day? No way!

It is interesting and useful to get a glimpse of the expenses of others. I've focused on expenses a great deal. Here's what we're comfortable with (each category is followed by the MONTHLY expense):

APPLIANCES - $52.00 - Took actual costs of each appliance, divided by average lifespan of each, divided by 12 months. (see below).

CABLE TV - $31.00 - What we're paying now

NEW CAR - $164.00 - Nissan Sentra 4 Door = $13,071 + 5% tax (auto trans) @ Cars Direct.com (Total = $13,725 / 84 months = $164 per month)

CAR MAINTENANCE - $46.00 - I paid $550 per year in a two year period that included some significant maintenance on one car. (550 / 12 = $46.00)

CAR INSURANCE - $50.00 - Now paying $810/year. I estimate $600/year with only one car (I now have two) and without the teen driver. $600 / 12 = $50.00

CAR LICENSE - $15.00 - Now paying $252/year. Estimate $180/year with only one car. ($180 / 12 = $15.00)

CHRISTMAS - $40.00 - Enough!!

INTERNET (HIGH SPEED) -$40.00 - This is what we're paying now

CLOTHING -$50.00 - This should be more than enough

DECORATING - $40.00 - I figured we'd spend about $480 per year for something (a new sofa, chair, carpet, etc.)

DENTAL - $25.00 - A cleaning costs $60 now. So cleaning is $180/yr. for 3 people ($15/month). 1 major item for each person per 9 yrs @ $360 (crown, etc) = $10/month.

UTILITIES - $154.00 - We paid this from 8/1/2002 through 7/31/2003

FOOD - $390.00 - What we spent from 8/1/2002 through 7/31/2003

HEAT - $75.00 - What we spent from 8/1/2002 through 7/31/2003

GENERAL - $510.00 - We spent $588/month from 8/1/2002 through 7/31/2003. We can reduce this to $510 easily.

GLASSES - $13.00 - We figured $156 per so we can buy glasses every 3 years

HOUSE INSURANCE - $50.00 - We now pay $374 per year for a modest home. With house worth half again as much (we're moving) we figured $600 per year.

HOUSE MAINTENANCE - $100 - We spent $18,000 in 14 years or $107/month (we started tracking expenses 14 years ago). I'll do a little myself now and then and get by on $100/month

PHONE - $30.00 - US West bill is now $18.43/month. Long distance with our Sam's Club card is 3.47 cents/min x 300 min/month = $10.41 Rounded up to $30.

PROPERTY TAX - $125.00 - Now pay $938/year. Guessed about 60% more when we move up to a little better house.

MEDICAL - $1,494.00 - This is a killer and will vary widely from person to person. The premium in Iowa for a family plan that provides good coverage is $1,077/month x 12 = $12,924/year. There's a $3,000 Deductible and an out of pocket max of $7,000. If we spend even 1/2 of the out of pocket max (after deductible), the total is $17,924 divided by 12 = $1494. In Iowa there are very few choices for insurance without underwriting. So we'll need to either pay this or try to find another option after COBRA. Who knows, maybe some company will accept us for less. Or we may get a part time job just for medical insurance purposes. Furthermore, we won't be paying this forever. Medicare should be less. But since this is the only good option I'm aware of that is definitely available to us now, I built it into the plan. I think we'll do better, but I don't know for sure. I'd rather be surprised positively.

TAXES - $305 - This is an estimated average based on 2002 tax tables. It will be less in the early years (as little as zero Federal), more in the later years.

TOTAL - $3,795 ($45,540/year) WITH medical insurance or $125/day. $2,301 ($27,612/year) WITHOUT medical insurance or $76/day

We know we could do it for less, however.


APPLIANCES

Refrigerator - $600.00 - 17 Years - $2.94/month
Stove - $400.00 - 12 years - $2.78/month
Dishwasher - $350.00 - 10 years - $2.92/month
Microwave - $150.00 - 5 years - $2.50/month
Range Hood - $200.00 - 12 years - $1.39/month
Disposal - $180.00 - 12 years - $1.25/month
Washer - $400.00 - 15 years - $2.22/month
Dryer - $320.00 - 15 years - $1.78/month
Freezer - $230.00 - 20 years - $0.96/month
27" TV - $350.00 - 7 years - $4.17/month
20" TV - $160.00 - 7 years - $1.90/month
VCR #1 - $80.00 - 5 years - $1.33/month
VCR #2 - $80.00 - 5 years - $1.33/month
Computer - $1,200.00 - 5 years - $20.00/month
Dehumidifier - $160.00 - 20 years - $0.67/month
Stereo - $500.00 - 15 years - $2.78/month
Vacuum - $160.00 - 15 years - $0.89/month


__________________
  Reply With Quote
Re: $50 a day? No way!
Old 09-24-2003, 08:48 PM   #27
Thinks s/he gets paid by the post
 
Join Date: Dec 2002
Posts: 3,875
Re: $50 a day? No way!

Pretty interesting that you are budgeting $50 per day
just for medical. We currently spend about $10.00
(this is for a couple), but the insurance is non-
traditional and limits a lot of disaster situation coverage.
I've crunched the numbers backwards and forwards.
It is difficult, but $50 per day for a couple is still
doable in 2003. You gotta take risks, look for free
stuff and shop yard sales and thrift shops. I regret
all of those years of spending before I discovered
this.
__________________
MRGALT2U is offline   Reply With Quote
Re: $50 a day? No way!
Old 09-24-2003, 10:15 PM   #28
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,385
Re: $50 a day? No way!

Quote:
* * * *
TOTAL - $3,795 ($45,540/year) WITH medical insurance or $125/day. * *$2,301 ($27,612/year) WITHOUT medical insurance or $76/day
This medical insurance for an essentially health family is an indictment of our bloated medical system, which apparently sees people as feedstock for the "medical services industry". You are spending 40% of your pre-tax gross income on medical care!

Another thing I don't remember seeing-vacations, pleasure spending (movies, dances, sport fees or equipment). Did you forget these, or just not do any of it?

You sound like a family- how about school expenses?

Mikey
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Re: $50 a day? No way!
Old 09-25-2003, 08:18 AM   #29
 
Posts: n/a
Re: $50 a day? No way!

Quote:
This medical insurance for an essentially health family is an indictment of our bloated medical system, which apparently sees people as feedstock for the "medical services industry".

The main problem with the Medical System is that 70% of the costs of Medical Care is administered in the last year of the Patients life. This is a statisical fact! - In other words these very expensive procedures do not work most of the time!

As, with other insurance the healthy people pick up the tab for the ones using the insurance. As a society we have not figured out how to die gracefully. We actually go out of the way to punish people like Dr. Kevorkian who are only trying to help terminally ill people! Performing very expensive operations on people over age 80 - IMHO - should only be done if the patient can come up with the money themselves, rather than sucking up insurance money from younger workers.

At least with Medical Insurance, you have a choice - you can always choose not to buy it. My Threshold is about $20,000 a year - If it gets more than this - I won't buy it!
__________________
  Reply With Quote
Re: $50 a day? No way!
Old 09-25-2003, 09:02 AM   #30
Thinks s/he gets paid by the post
Telly's Avatar
 
Join Date: Feb 2003
Posts: 1,448
Re: $50 a day? No way!

Bob, you've been pretty thorough!

Thanks for sharing the info with us. I hope one day (soon?) to be able to amass that kind of detail. I'm getting closer. But so many things are changing in and out in the past year, and the next year, I'm having trouble getting my arms around it as to what a "normal" would be. I did notice that your house and car insurance, and property taxes are very small compared to ours. We don't have a state income tax, so school funding comes out of property taxes. And due to acts of nature, (and maybe some by man :P) the insurance costs are high.

A few questions about how you categorized costs, as an aid to doing mine: Was "Heat" just natural gas cost? For the appliance costs, did you look at ads to come up with the initial purchase price? (I'm assuming you didn't just go out and equip your whole house with new appliances ). Did "Other" include products most likely bought at a grocery store, but are inedibles (like paper products, cleaning supplies, etc.)?

In an attempt to track costs better, we have really reduced using cash for anything. By using a credit card at the grocery store (and paying it off when due, of course) we get a line item on the monthly bill that says the store name. So that means that amount was food, but also includes those allied supplies. So it really is becoming "Food +" for us.

Now places like a Super Walmart that have the usual stuff, plus groceries, does make it hard to figure out what's what.

I'm predicting about $5300 for health insurance premiums this year. There have been a lot of changes, some of the early months of the year were "free", but then some Cobra in parallel with private ins. (on different family members), and now some group coverage instead of the Cobra portion. After all that, next year the private plus group coverage premium costs will probably fall in the same general area.
__________________
-- Telly, the D-I-Y guy --
Two fools dancing on the hands of time
Telly is offline   Reply With Quote
Re: $50 a day? No way!
Old 09-25-2003, 08:15 PM   #31
Full time employment: Posting here.
 
Join Date: Sep 2003
Posts: 902
Re: $50 a day? No way!

Yes, Mikey, we are a family. And college is covered in a separate fund. Our daughter graduates in May and at the moment is #1 in her class with an ACT composite of 31, so the university she wants to attend will reduce their tuition rate for her by a large amount. We'll kick in $20,000 total and her need to borrow will be minimal. Entertainment comes out of general expenses, any part time work I can muster, and savings squeezed out of other categories. For example, I think I can reduce car purchase costs (not maintenance, license, or insurance) to pretty close to zero. I have a brother who buys used cars wholesale and sells them retail. He tells me I can buy a car wholesale through him, drive it two years, and sell it (through his auction) for as much as or very close to what I paid for it. I'll help him with his personal finances in return for his help. I suspect there are other ways to cut costs, and I'll frequent this group to learn what I can from those who have been there. Also, we'll be moving next year to a town with an incredible park system, a large lake, a university, and lots of free or cheap things to do.

Telly, yes, heat is just natural gas. Utilities includes electric, sewer, water, and garbage. Yes, those are actual appliance prices checked within the past few weeks at Sam's Club, Best, Buy, and Sears. They are actual prices one can get now. I figure that there will always be appliances breaking down, and that I can buy every appliance I use new for a grand total of $5,520. (I consider the furnace and central air to be part of the house - not an appliance). So I plan to factor in a regular monthly cost of $52 to cover all those appliances because I believe it I'll actually pay that on average going forward. Yes, the general category is a catch all for things not covered elsewhere. If it doesn't fit into any other category, it goes there. And food is only food - not napkins, etc. That fits our situation because we buy our food in one place and the other stuff elsewhere. It would be awkward for those who buy food at Sam's Club along with other stuff.

Medical insurance has me concerned. We're pretty healthy, but can't risk not having it, and choices here are few. We plan to do more searching for better alternatives. I wish I had something in the area of $5,300 to $6,000 per year, or even $12,000 per year. I have enough to cover $18,000 per year for health care if I must, but if it keeps out-pacing inflation by a huge margin, I could be in trouble down the road. I have one year of work remaining and 18 months of COBRA. So I'm hoping the system will be better by then. Anyone from Iowa who knows of a better way?

__________________
Bob_Smith is offline   Reply With Quote
Re: $50 a day? No way!
Old 09-30-2003, 09:38 PM   #32
Dryer sheet aficionado
 
Join Date: Jul 2002
Posts: 26
Re: $50 a day? No way!

Quote:

Medical insurance has me concerned. We're pretty healthy, but can't risk not having it, and choices here are few. We plan to do more searching for better alternatives. I wish I had something in the area of $5,300 to $6,000 per year, or even $12,000 per year. I have enough to cover $18,000 per year for health care if I must, but if it keeps out-pacing inflation by a huge margin, I could be in trouble down the road. I have one year of work remaining and 18 months of COBRA. So I'm hoping the system will be better by then. Anyone from Iowa who knows of a better way?
I'm not from Iowa, but I have a suggestion: Try www.quotesmith.com

Just to give you an example of premiums they quote, I input information for a family of three in Des Moines: Husband and wife both age 50 with a 19 y/o daughter in college.

The premiums quoted ranged from $166 (high deductible) to $917 per month--so they are all under 12k per year. If your family is pretty healthy, perhaps you could go the high deductible route and just save the difference each year. Odds are you'd probably come out better in the long run.

Regards,

P
__________________
<br />
patnbj is offline   Reply With Quote
Re: $50 a day? No way!
Old 10-01-2003, 06:16 PM   #33
Full time employment: Posting here.
 
Join Date: Sep 2003
Posts: 902
Re: $50 a day? No way!

Thanks patnbj. We'll definitely do some shopping. I hope to find something better. We haven't actually applied for individual coverage yet, so maybe someone will accept us. I hope so.

I greatly admire your $41 per day expenses! It's good to know that is doable. I was "assimilated" by the Borg (Star Trek fans will understand what that means) 28 years ago, and I'm definitely going to escape to the ER life within a year at age 52. I hope this group will be here for the next couple of years as we make the transition.
__________________
Bob_Smith is offline   Reply With Quote
Re: $50 a day? No way!
Old 10-01-2003, 06:27 PM   #34
Thinks s/he gets paid by the post
Telly's Avatar
 
Join Date: Feb 2003
Posts: 1,448
Re: $50 a day? No way!

Sure, we'll be here, we can all eat dog food together!

Hey, its your turn to buy, Bob
__________________
-- Telly, the D-I-Y guy --
Two fools dancing on the hands of time
Telly is offline   Reply With Quote
Re: $50 a day? No way!
Old 10-02-2003, 06:39 AM   #35
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,408
Re: $50 a day? No way!

Suceess means going to the French Quarter and 'buying Lucky Dogs' and not having to take a temp job selling them!
__________________
unclemick is offline   Reply With Quote
Re: $50 a day? No way!
Old 10-15-2003, 04:37 PM   #36
 
Posts: n/a
Re: $50 a day? No way!

Started out the week fine. Had a major toothache on Monday. The tooth had developed a crack all the way to the root. They could not do a root canal. Had it pulled on Tuesday. Will probably go for an implant that will cost over $3,000. Have Dental Insurance, but implants are considered a 'luxury' and are not covered. Just like braces.

This would put a real dent into $50 day. Used up 2 months worth on 1 tooth! *-

Of course I don't have to have a tooth in my back molar and that is how you could get by on $50 a day. Not my cup of tea however. I'm getting the implant.
__________________
  Reply With Quote
Re: $50 a day? No way!
Old 10-15-2003, 08:53 PM   #37
Full time employment: Posting here.
 
Join Date: May 2004
Location: Worldwide
Posts: 913
Re: $50 a day? No way!

Cut Throat,
Or...you could fly to Guadalajara, Mexico, receive excellent dental care at a fraction of the US cost, stay in a great hotel, and do a little fishing in the surronding lakes, easily for 3K.

Always, thinking outside of the box,
Billy
Web-site http://www.geocities.com/ba264
__________________
In 1991 Billy and Akaisha Kaderli retired at the age of 38. They have lived over 2 decades of this financially independent lifestyle, traveling the globe.
Billy is offline   Reply With Quote
Re: $50 a day? No way!
Old 10-16-2003, 10:38 AM   #38
 
Posts: n/a
Re: $50 a day? No way!

Billy,

Maybe for some dental procedures, but an implant takes series of visits over a period of a year. You might have a good time in Mexico, but you would end up spending far more!
__________________
  Reply With Quote
Re: $50 a day? No way!
Old 10-17-2003, 11:08 AM   #39
Full time employment: Posting here.
 
Join Date: May 2004
Location: Worldwide
Posts: 913
Re: $50 a day? No way!

Cut-Throat

We all make choices.

Always, thinking outside of the box,

Billy
Web-site http://www.geocities.com/ba264
__________________
In 1991 Billy and Akaisha Kaderli retired at the age of 38. They have lived over 2 decades of this financially independent lifestyle, traveling the globe.
Billy is offline   Reply With Quote
Re: $50 a day? No way!
Old 10-18-2003, 03:02 AM   #40
Thinks s/he gets paid by the post
 
Join Date: Dec 2002
Posts: 3,875
Re: $50 a day? No way!

Hello friends! I have pretty much exhausted my thoughts on the $50 per day thing. However, I noticed
our old pal health care being discussed. I can't
emphasize enough how important it is to stay with one
company if you are lucky enough to have some
affordable health insurance. I did not. While I was
jumping around I was developing some chronic health
problems (most everyone will eventually). This made me
persona non grata with a lot of companies. Either
that or I just plain could not afford it any longer.
We currently pay about $10 per day for insurance.
Quite affordable but it does not cover real health
disasters. For those the options will be bankruptcy or the
"Hemingway exit."
__________________

__________________
MRGALT2U is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Glass of Wine a Day Fights Dementia Eagle43 Health and Early Retirement 9 05-24-2007 02:50 PM
For RE, we all work for pennies a day? dimwit FIRE and Money 19 06-21-2005 09:37 AM
This company pays 1% per day 365 days a year! powercash FIRE and Money 3 02-28-2005 04:33 PM
$50 per day revisited John Galt FIRE and Money 88 02-08-2005 09:31 AM
Your day to do it dex Other topics 7 08-26-2004 12:19 AM

 

 
All times are GMT -6. The time now is 12:25 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.