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Old 02-14-2013, 03:10 PM   #41
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DW = 50 yo (class of 2013 / 2014 ?), DH = 55 yo (class of 2020)
Income = 200k
Current spend = 97k
Retirement budget = 87k (savings from downsizing house)
Very close to your projections but I'd bet the splits by expense type are vastly different:

Home, including food - 23K
6k: groceries / home cooked food / essential paper goods & toiletries
6k: tax, insurance (no mortgage, no debt at all actually)
3k: maintenance / repairs (including reserves for major repairs)
3k: Electric
3k: Internet, Cable, Phones (incl Cell)
2k: pest control, garbage collection, home owners assoc

Medical / Dental / Life Insurance: $29k
19k: HI premium
7k: Medical / Dental / Hearing out of pocket
2k: Medications, vitamins
1k: life insurance

Other Mandatory 13k:
6k: Income Tax
4k: Auto insurance and repairs
3k: Reserve for major repair / replace (roof, car, etc)

The Fun Stuff: 22k
7k: His and Her monthly "allowance"
5k: travel / vacations
3k: Entertainment / Dinners out
2k: Pets
2k: "Stuff" (gizmo's, gadgets, replace things that break)
1k: Donations
1k: Fishing expenses
1k: Clothing and miscellance rounding

The "Allowance" includes gas, lunch out, beer / wine / liquor, any gizmo/gadget that is not a shared joint decision, hobby expenses, etc
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Old 02-14-2013, 03:58 PM   #42
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49 years old, married, combined income is higher but we plan to spend right around your figure of ~$100k. With current assets if I pull the plug soon withdrawal rate will be <3% w/ $32k pension.
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Old 02-14-2013, 04:27 PM   #43
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I'm inspired by Live and Learn so here goes:

30k/5 - Car replacement every 5 years
10k/4 - International vacation every 4 years
6k - Unexpected big expenses
10k - Healthcare (based on Obamacare and indexed at 6%)
8k - At home food
5k - smaller vacations
4k - Property taxes
10k - Fed taxes
4k - Eating out
4k - Auto Repair in Insurance
2k - Clothing
2k - Charity donations
2k - Timeshare dues
7k - Utilities (Internet, TV, Water, Garbage, Electric, Gas)
2k - Gasoline
2k - Unclassified misc spending
2k - Housing repairs (smaller)
2k - Homeowners and Umbrella Insurance
2k - Entertainment
2k - Misc Electronics
1k - Massage Club
1k - Gifts
1k - Pet Care
6k - 19 other categories I won't bore you with
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Old 02-14-2013, 04:29 PM   #44
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1K - massage club?

Do pray tell explain......
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Old 02-14-2013, 05:57 PM   #45
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Can I join that club too ? :-)
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Originally Posted by Meadbh View Post
1K - massage club?

Do pray tell explain......
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Old 02-14-2013, 06:40 PM   #46
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1k: Fishing expenses
You can try getting by like this if you want....but this sounds way low to me! There are some things you just shouldn't skimp on!
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Old 02-14-2013, 07:59 PM   #47
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Originally Posted by devans0 View Post
59 years old and still working. No debt, married, no kids at home.

Gross last year was $115,000.
Savings amount was $52,000.
Taxes were $34,000.

Spending amount was $29,000.
Are you in one of those high income tax states?
I assume that is state plus federal tax; any other taxes added?
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Old 02-15-2013, 07:10 AM   #48
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Live and learn inspired as well. And I like the way you split expenses by category. When I was working I made excellent money. To the point I never even thought about what I spent. If I wanted something I just bought it. Always maxed out all retirement savings plus other savings. But also spent a lot of money on anything and everything. So before I retired last year I tried really hard to calculate what my expense would be once retired and would my income support that. I made detail budgets with an item by item focus. Went back through spending habits and tried to put things in buckets of required, nice, and frivolous. I finally ended up with a budget of 110K. I had to set it 50K higher (160K) for first two years because I am in the process of selling our workplace home and moving to our retirement home and that was the total cost to support that home. Mortgage, taxes, insurance, repairs, utilities, etc.

Am just coming up on first full year. The good news is total spending and total budget were about the same. The bad news is the bucket by bucket analysis was way off. Got another year to sell the home and move to retirement home before I get into any income issues, and even if it takes longer to sell we will still be OK, but would like to start the final phase of living. And based on everything I spent last year I am in the process of adjusting the budget for the next 12 months to better match actuals.

One pleasant surprise was the ability (because of available time) to identify and implement cost savings. Changing phone services, managing cable bill, walking the golf course vs riding, refinance mortgage, where we shop, DIY, and a few others. Was able to manage down expenses about 1K per month with no quality of life impact. Have done the same thing with the revenue side of things by consolidating investment accounts, moving to lower cost funds, manage and rebalanced more closely, better tax management, and a few other things to improve cash flow.

So all in all the first year has been a learning experience and a fun adventure. Ready to start year number two. Priority is selling the house so as to significantly drop all expenses. Goes back on the market end of March.
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Old 02-15-2013, 10:28 AM   #49
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1K - massage club?

Do pray tell explain......
Not as interesting as you might think....Massage envy. You may a monthly fee for a massage once a month. Been doing this for years and now have over 40 built up. At some point I hope I'll have time for a weekly one to get caught up and then decide if it's still worth the money
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Old 02-15-2013, 02:36 PM   #50
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I2Ride... Your budget cutting of walking golf course instead of riding brought a chuckle to myself, as that is what I did this coming year. I decided if I am going to spend all this time golfing, the least I could do was get additional exercise out of it plus save money.
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Old 02-16-2013, 11:53 AM   #51
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Originally Posted by l2ridehd View Post
Am just coming up on first full year. The good news is total spending and total budget were about the same. The bad news is the bucket by bucket analysis was way off.
Wow - thats interesting ! I'm glad the expenses worked out as a wash for you. My posted budget is based upon 18 months of spending plus extra for the unexpected (which I estimate at 413/month <300 in its own bucket plus half of the home maintenance>). I sure hope I'm right ! can you tell me which buckets you over/underestimated on ? Might help me identify gaps in my own plan.

Quote:
Originally Posted by l2ridehd View Post

One pleasant surprise was the ability (because of available time) to identify and implement cost savings. Changing phone services, managing cable bill, walking the golf course vs riding, refinance mortgage, where we shop, DIY, and a few others. Was able to manage down expenses about 1K per month with no quality of life impact. Have done the same thing with the revenue side of things by consolidating investment accounts, moving to lower cost funds, manage and rebalanced more closely, better tax management, and a few other things to improve cash flow.
That is truly inspiring !
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ER'd in June 2015 at age 52. Initial WR 3%. 50/40/10 (Equity/Bond/Short Term) AA.
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Old 02-16-2013, 11:58 AM   #52
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I'm inspired by Live and Learn so here goes:

10k - Healthcare (based on Obamacare and indexed at 6%)
Is that for two people ? I get much higher estimates. Based upon your estimated taxes of 10k I'd say that you're planning on using mostly tax deferred income to fund your 96k of expenses. Which would put you way over the 60k limit on income for 2 to get any Obamacare subsidy. Without subsidy I see 19k in HI cost, before any OOP expenses. I'm planning on an average of 7k OOP per year so my total Healthcare estimate is 26k, plus 2k for Medications.

How did you come to 10k ? If I could come in at 10k then I'm ready to jump into the ER waters today !
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"For the time being no discipline brings joy, but seems grievous and painful; but afterwards it yields a peaceable fruit of righteousness to those who have been trained by it." ~
Hebrews 12:11

ER'd in June 2015 at age 52. Initial WR 3%. 50/40/10 (Equity/Bond/Short Term) AA.
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Old 02-16-2013, 12:30 PM   #53
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Are you in one of those high income tax states?
I assume that is state plus federal tax; any other taxes added?
I live in a "worst list" tax state. Estate, state, FICA, property, local, sales tax estimate, however no gas tax estimates just from laziness... If it was a tax that I had a receipt for, I threw it in. Next year will be a much lower.

I plan on establishing residency in a tax friendlier state at retirement. Probably South Dakota.
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Old 03-01-2013, 12:14 AM   #54
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You guys are all spendthrifts and should learn from the Wagasky family.

How a Family of Four Manages to Live Well on Just $14,000 Per Year - Yahoo! Finance
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Old 03-01-2013, 01:06 AM   #55
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You guys are all spendthrifts and should learn from the Wagasky family.

How a Family of Four Manages to Live Well on Just $14,000 Per Year - Yahoo! Finance

That's easily doable if rent here in Los Angeles, CA didn't cost as almost as much as what he's paying to buy a house, $30k.

Most of us won't be able to follow that plan:

1.) Buy a house for $30k.

I live in a 600 sq ft apartment and I spent over $20k in rent and it's the cheapest apartment in the neighorhood.

2.) Military health benefit. I spend over $600 a month to insure myself and my wife through my company healt plan. The past 2 years, I had to spend $10k on health insurance due to some medical problems since its' a $7,500k deductible...yea, I know...it's a horrible plan.

When you don't have a big payment toward housing or health insurance, it's easy to live on $14k a year.
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Old 03-01-2013, 09:44 AM   #56
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$ 72k after tax. We own our home or at least did until six months ago when we started to downsize.

We were spot on over the past two years...with a fair amount of out of country travel. This may change a little since we have sold our home and have not yet bought or rented a new place to live.

Also, we have no requirement to budget for medical insurance, other than out of country medical when we travel.
No debts.
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Old 03-01-2013, 10:00 AM   #57
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Old 03-01-2013, 10:42 AM   #58
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In five years of retirement, I have averaged around $30k -- guess I need to step it up since that spending level is about a third of 3% WR + pension.

I tried to do better last year when I bought an RV ($75k) but sold it a few months (and 10k miles) later for more than the purchase price. I enjoyed the RV on a long western adventure but couldn't resist selling when offered such a good price.
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Old 03-01-2013, 12:58 PM   #59
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In five years of retirement, I have averaged around $30k
I'm closer to your number. Perhaps living in the south has something to do with it. Plus due to elder care responsibilities, my travel expense is almost nonexistent.
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Old 03-01-2013, 01:14 PM   #60
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I'm closer to your number. Perhaps living in the south has something to do with it. Plus due to elder care responsibilities, my travel expense is almost nonexistent.
Same here, less than 20k in expenses last year.
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