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Old 11-07-2014, 07:06 PM   #1
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Budget categories

Hello all,

Wife and I are looking at our target date for FIRE in 5 months (april 2015). I am 48, she 46. Our investable assets are 2 million, 80% in taxable registrations and another 10% in a roth. Therefore 90% of my money is "free of encumbrances" so to speak. We just built our dream retirement home in florida on a Gulf of Mexico access waterfront lot. I came up with these categories for budget. Can you help me envision more?

ALARM MONITORING
50
General checking
Property taxes
700
Separate Account
Cable television/internet
90
General checking
Automobile (lease x 2, 36 months)
370
General Checking/debit
Automobile fuel
225
cash
Auto Insurance
130
General checking/debit
Cell Phones/data
100
General checking/debit
Medical Insurance
1000 (or 0 with rob)

Home
PAID IN FULL!

Groceries/misc
1000
SEPARATE CHECKING ACCT/DEBIT CARD
Top off /replenish on 1st of month
Utilities
200
General checking
Homeowner ins.
170

Pool service (before move)
100 , only 3 months
**
Clothing
wife-part time job
sal- rare clothes

Sewer/water/trash
Tax includes all

Rainy day fund/house maintenance//medical misc expenses (drug, copays)...knockwood pretty healthy)
450

SEPARATE ACCT



Cash allowance for him
150

Cash allowance for her
150

Vacation/travel allowance
? already live in a tropical paradise but add 300/month







Total



5085.00

his part time
4000.00/month (incl ins. stipend)

her Part time
600- goes to her purchases clothes etc.

Portfolio Dividends


Reverse mortgage age 62??
Add 250K to portfolio (add 10k/yr income)
(no heirs, why not)

His ss age 62
2000.00

Her social security age 62
500



Please help me fill in the blanks!
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Old 11-07-2014, 08:30 PM   #2
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The consumer expenditure survey has a breakdown you might find interesting. Here's a recent discussion that included a link to the survey Consumer Expenditures Survey
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Old 11-07-2014, 10:08 PM   #3
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Waterfront lot.......where's the flood insurance
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Old 11-07-2014, 10:12 PM   #4
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$200 for utilities & $170 for homeowner's insurance in Florida seems low !
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Old 11-07-2014, 10:26 PM   #5
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Quote:
Originally Posted by Quantum Sufficit View Post
Hello all,

Wife and I are looking at our target date for FIRE in 5 months (april 2015). I am 48, she 46. Our investable assets are 2 million, 80% in taxable registrations and another 10% in a roth. Therefore 90% of my money is "free of encumbrances" so to speak. We just built our dream retirement home in florida on a Gulf of Mexico access waterfront lot. I came up with these categories for budget. Can you help me envision more?

ALARM MONITORING
50
General checking
Property taxes
700
Separate Account
Cable television/internet
90
General checking
Automobile (lease x 2, 36 months)
370
General Checking/debit
Automobile fuel
225
cash
Auto Insurance
130
General checking/debit
Cell Phones/data
100
General checking/debit
Medical Insurance
1000 (or 0 with rob)

Home
PAID IN FULL!

Groceries/misc
1000
SEPARATE CHECKING ACCT/DEBIT CARD
Top off /replenish on 1st of month
Utilities
200
General checking
Homeowner ins.
170

Pool service (before move)
100 , only 3 months
**
Clothing
wife-part time job
sal- rare clothes

Sewer/water/trash
Tax includes all

Rainy day fund/house maintenance//medical misc expenses (drug, copays)...knockwood pretty healthy)
450

SEPARATE ACCT



Cash allowance for him
150

Cash allowance for her
150

Vacation/travel allowance
? already live in a tropical paradise but add 300/month







Total



5085.00

his part time
4000.00/month (incl ins. stipend)

her Part time
600- goes to her purchases clothes etc.

Portfolio Dividends


Reverse mortgage age 62??
Add 250K to portfolio (add 10k/yr income)
(no heirs, why not)

His ss age 62
2000.00

Her social security age 62
500



Please help me fill in the blanks!
How about entertainment? Maybe I missed that in scanning over your list.

Here are my categories and what they include. I put in bold the expenses that I didn't happen to notice in your list. They are probably included in your "miscellaneous" or "rainy day fund" but it is hard for me to tell. If it was me, I'd probably try to break down those categories a little bit.

Miscellaneous
hobby -- video games in my case
food (groceries, restaurants)
car (gasoline, repairs, maintenance, insurance)
house (maintenance, upgrades, insurance, lawn care)
utilities (water/sewer/trash, electricity, natural gas, landline, cell phone, cable)
fitness (gym fees, home gym equipment, mobile fitness devices, weight loss)
clothes
medical (insurance, Medicare, prescription drugs, dental, optical)
income tax (federal, state)

Hope this helps. It's just a home-made set of categories that is very personalized for me and my spending habits, but they seem to work for me.
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Old 11-07-2014, 11:39 PM   #6
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Quote:
Originally Posted by Moemg View Post
$200 for utilities & $170 for homeowner's insurance in Florida seems low !
oh sorry, those are monthly figures of course. I got a combined flood insurance liability rate of 2100.00 annual (which wanted to make me cry by the way)

Thank you to everybody who took the time to add their input. There are some very important categories I indeed overlook. One of the main reasons I lease rather inexpensive cars is because at 185.00 per month per car, I pay no repairs as it is always under warranty.
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Old 11-08-2014, 05:56 AM   #7
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FWIW, here are by budgeting categories.

HousingMortgage
HousingHome Insurance
HousingProperty Taxes
HousingPropane
HousingFirewood
HousingElectricity
HousingSnowplowing
HousingMaintenance and repairs
HouseholdFood and groceries
HouseholdGardening
HouseholdSpending money
HouseholdClothing
HouseholdGifts
HouseholdDonations
TransportationMaintenance and repairs
TransportationLicense fees
TransportationGasoline
TransportationCar insurance
TransportationBoat insurance
TransportationJet-ski insurance
TransportationSnowmobile insurance
Personal and Health CareDoctors
Personal and Health CareDentists
Personal and Health CarePrescription Drugs
CommunicationsTelephone
CommunicationsMobile Phone
CommunicationsTelevision
CommunicationsInternet
Personal InsuranceLong Term Care Insurance
Personal InsuranceHealth Insurance
Personal InsuranceHealth Insurance Subsidy
Personal InsuranceDental Insurance
Personal InsuranceUmbrella Insurance
Recreation and entertainmentTravel
Recreation and entertainmentSewing
Recreation and entertainmentSkiing
Recreation and entertainmentSnowmobiling
Recreation and entertainmentGolfing
Recreation and entertainmentHockey
Recreation and entertainmentMovies
Recreation and entertainmentDining Out
MiscellaneousMiscellaneous
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Old 11-08-2014, 08:04 AM   #8
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Rather than trying to categorize everything, I found that the best way to find my budget was simply to track my spending. I looked at the outgoings from my bank account and just added estimates for health insurance and tax. It's worked out well. After 8 months of ER I'm spending slightly less than I estimated.
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Old 11-08-2014, 08:09 AM   #9
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I'd take anothe look at the total cost of a new car lease. Youi can lease a number of nice cars for $185 a month but most of them require a couple of grand down, you have to front the lease charge and you have to add in sales tax. So, the total lease cost could be higher than your amount. And, car costs have been gong up 4 to 5% a year.....looking ahead your costs could be 10 to 12% higher than a current lease a couple years old. Good luck.....I lease cars as well....love the warranty.....hate having a car tied up for expensive repairs.l
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Old 11-08-2014, 08:25 AM   #10
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............I lease cars as well....love the warranty.....hate having a car tied up for expensive repairs.l
I used to lease cars, too, but there is no free lunch. If you purchased a good used car and put what would have been the lease payments into a separate account labeled "free car repairs", at the end you will almost certainly have money left over.
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Old 11-08-2014, 10:59 AM   #11
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I used to lease cars, too, but there is no free lunch. If you purchased a good used car and put what would have been the lease payments into a separate account labeled "free car repairs", at the end you will almost certainly have money left over.
You're probably right, if you don't put a value on avoiding breakdowns, waiting at tire centers or dealerships for repairs,etc. I try to balance cost vs. spending time doing stuff I do/don't enjoy. And, getting my car repaired is one activity low on the list of enjoyment activities. .......to each their own!
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Old 11-08-2014, 11:17 AM   #12
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I paid cash for a new Honda Civic back in 2007. I take it in for an oil change every 5000 miles and the only major thing it's needed is new breaks. In ER I drive it about once a week and then only for a few miles. The insurance is my major cost and I'm now looking at Zipcar instead of owning. I'll probably wait until the Honda dies, but I estimate my cost a year using Zipcar would be $500, gas and insurance are paid by Zipcar.
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Current AA: 65% Equity Funds / 20% Bonds / 7% Stable Value /3% Cash / 5% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
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Old 11-08-2014, 01:35 PM   #13
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Originally Posted by jerome len View Post
You're probably right, if you don't put a value on avoiding breakdowns, waiting at tire centers or dealerships for repairs,etc. I try to balance cost vs. spending time doing stuff I do/don't enjoy. And, getting my car repaired is one activity low on the list of enjoyment activities. .......to each their own!
I agree, gotta spend your money where it gives you the most value. I had a number of breakdowns with new lease cars, the only difference was who paid for the repair. I still had to wait.
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Old 11-08-2014, 04:45 PM   #14
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No really, we leased 2 brand new kia optimas with 5 year 60 k warranty, got 2 free 40 inch flat screens, signed the papers with 0 OUT OF POCKET...payment 185 per month! I think they screwed up but thats on them!
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