Join Early Retirement Today
View Poll Results: How much do you live on?
20-30K per year 37 13.03%
30-40K per year 52 18.31%
40-60K per year 78 27.46%
60-80K per year 48 16.90%
> 80K per year 69 24.30%
Voters: 284. You may not vote on this poll

Reply
 
Thread Tools Display Modes
Old 11-12-2010, 02:20 PM   #61
Dryer sheet aficionado
 
Join Date: Sep 2009
Location: Ottawa
Posts: 45
Quote:
Originally Posted by youbet View Post
What would you have to gross pre-tax up there in order to net the $37k you need to cover expenses? I'm assuming your source of funds is ordinary earned income.
Yes, my source of funds is ordinary earned income.

As a single who is under 65, and in my province, I would need about 49K pre-tax to earn 37 net.

Right now I earn more than 49k. I just did not include my savings as an "expense."

edit- if you are curious about Canadian taxes, you could check out this tax calculator: http://www.taxtips.ca/calculators/taxcalculator.htm

second edit: there is a calculator for Quebec on that site as well, but its not included in the calculator I linked to.
oneils 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!

Old 11-12-2010, 02:51 PM   #62
Recycles dryer sheets
 
Join Date: May 2010
Location: SW Ohio
Posts: 360
Quote:
Originally Posted by donheff View Post
Maybe, but I think focusing on absolute basics may encourage people to aim short of their needs. I would not wish to ER with an income stream that was anywhere near "absolute basics." I think that is something that happens to you if you don't/can't plan, not something to aim for.
Where did I say to 'aim' and 'encourage people' because my basic costs are $1580/month. He asked what people live on. I like to know what it takes for me to be on this planet with no frills. I did not encourage anyone to live on more or less. I consider someone with an income stream able to cover their absolute basic expenses to be FI and well on the way to RE depending on lifestyle.
jayc is offline   Reply With Quote
Old 11-12-2010, 04:39 PM   #63
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2008
Posts: 5,170
Quote:
Originally Posted by obgyn65 View Post
Agree. I guess $40-60k for a single person with zero debt, or $60-80k for a couple with zero debt also is perfect.
I fit right in the range
tmm99 is offline   Reply With Quote
Old 11-12-2010, 05:04 PM   #64
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
Good poll, but whether you include income taxes (say, in the 15-20% range) and health insurance (in our cases $12K per year) can make a huge difference in your reply to the OP.

I would favor treating both as expenses which need to be included since that's what happens in the real world. Maybe the next version...

PS: the tax thing is especially confusing since once my post-tax money runs out, my withdrawals will go up some 20% just to cover income taxes on IRA distributions. Shortly thereafter, SS will start kicking in, etc.
__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay is offline   Reply With Quote
Old 11-12-2010, 05:18 PM   #65
Full time employment: Posting here.
 
Join Date: Apr 2010
Posts: 717
Great feedback, thank you all!
I will need time to digest all of it, but it sound that I am not crazy
__________________
“The problem with the world is that the intelligent people are full of doubt, while the stupid people are full of confidence.”

(—Charles Bukowski)
wanaberetiree is offline   Reply With Quote
Old 11-12-2010, 05:28 PM   #66
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 35,712
Quote:
Originally Posted by ksr View Post
If you don't mind my asking, how did you arrive at the desired 2.1% SWR? Is this an approximation of dividends and interest, or some other calculation?
Not at all.

The 2.1% SWR was simply from an article that was the subject of a recent gloom-and-doom thread here:

http://www.early-retirement.org/foru...1-a-52878.html

Being a naturally pessimistic guy, I thought I would lower my expectation so that I would not be disappointed.

Regarding a couple together not spending double that of a single person, I would think that is usually true. The house does not have to be double in square footage, and two can travel in an RV for the same fuel cost, etc...

But think about it some more, if I were by myself, I would just buy an empty lot in the mountain, then park a small motor home there and call it home. Would that not be cheaper? Being a recluse should bring even more savings that I have not thought of at the moment. No?
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)

"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
NW-Bound is offline   Reply With Quote
Old 11-12-2010, 06:23 PM   #67
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 35,712
I don't know if one is virtuous in being extremely frugal. But I know it is hard.

I also know there is absolutely no virtue in spending a lot of money. It takes no skills, and if there is, it is not too difficult to learn. We have seen lottery winners learning to blow away millions of dollars in just a few years. It cannot be that hard then.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)

"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
NW-Bound is offline   Reply With Quote
Old 11-12-2010, 06:38 PM   #68
Thinks s/he gets paid by the post
obgyn65's Avatar
 
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
Hello youbet - in my opinion the figures I gave are optimal with zero debt. It's ok to disagree, this is America. Take care.

Quote:
Originally Posted by youbet View Post
Can't agree. DW and I definitely spend double what either would spend alone. How are you getting by on less than 2X your single budget as a couple?
__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
obgyn65 is offline   Reply With Quote
Old 11-12-2010, 07:52 PM   #69
gone traveling
 
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
Quote:
Originally Posted by NW-Bound View Post
That's why she's still working, isn't she? Smart woman.
Yes. I could not afford her lifestyle (she just left for Cairo this afternoon, with her "travel buddy").

I'm at home, with the dogs (I'm not complaining )...
rescueme is offline   Reply With Quote
Old 11-12-2010, 07:57 PM   #70
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 13,148
Quote:
Originally Posted by oneils View Post
Yes, my source of funds is ordinary earned income.

As a single who is under 65, and in my province, I would need about 49K pre-tax to earn 37 net.

Right now I earn more than 49k. I just did not include my savings as an "expense."

edit- if you are curious about Canadian taxes, you could check out this tax calculator: TaxTips.ca - Canadian tax calculator

second edit: there is a calculator for Quebec on that site as well, but its not included in the calculator I linked to.
Thanks oneils!
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is online now   Reply With Quote
Old 11-12-2010, 08:01 PM   #71
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 13,148
Quote:
Originally Posted by obgyn65 View Post
Hello youbet - in my opinion the figures I gave are optimal with zero debt. It's ok to disagree, this is America. Take care.
Thanks obgyn65. BTW, I wasn't disagreeing with the amount you are spending, just with the concept that 2 can live for much less than 2X the expenses for 1. At least that's how it works at our house. Our "married couple" expenses run close to 2X what either of our single expenses would be.

Alan and I discussed on the last page. He pointed out some of the tricks he and his DW use to keep expenses down as a couple such as sharing a single car, splitting entrees at the restaurant, etc.
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is online now   Reply With Quote
Old 11-13-2010, 01:46 AM   #72
Thinks s/he gets paid by the post
obgyn65's Avatar
 
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
Thank you youbet.

Just to clarify, these are not the amounts I am spending (I am still working, in accumulation phase, planning to retire in 2012 at age 47). The numbers I gave are those which in my mind are optimal. The results from the survey above and the average numbers provided by Independent above fit the ranges. I guess my range may be higher when I retire since I spend a lot of money each year supporting free clinics in the US and in Central America.

Thank you to Alan and you for discussing a few tricks to keep expenses down. Very helpful.

Have a good weekend.

obgyn65

Quote:
Originally Posted by youbet View Post
Thanks obgyn65. BTW, I wasn't disagreeing with the amount you are spending, just with the concept that 2 can live for much less than 2X the expenses for 1. At least that's how it works at our house. Our "married couple" expenses run close to 2X what either of our single expenses would be.

Alan and I discussed on the last page. He pointed out some of the tricks he and his DW use to keep expenses down as a couple such as sharing a single car, splitting entrees at the restaurant, etc.
__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
obgyn65 is offline   Reply With Quote
Old 11-13-2010, 05:05 AM   #73
Dryer sheet aficionado
 
Join Date: Sep 2009
Location: Ottawa
Posts: 45
Quote:
Originally Posted by youbet View Post
Thanks oneils!
You're welcome, youbet!

This has been an interesting thread. After thinking about it, I think my expenses may be a little higher than 3100 as I have a few things automatically deducted from my pay. The deductions are: a monthly bus pass, a small "death benefit", a dental insurance premium, and a premium for extended health coverage.

I think those deductions total about 120 a month, bringing my total expenses to 3250.
oneils is offline   Reply With Quote
Old 11-13-2010, 05:14 AM   #74
Thinks s/he gets paid by the post
 
Join Date: Mar 2006
Location: Houston
Posts: 2,155
This thread reminds of something I read a few months ago.

Quote:
Reasons I do not Brag About Room Prices

1. It tells readers they are stupid, and they paid too much.
2. My Mother does not want me to be a braggart.
3. Readers do not believe me.
4. I have this hidden fear, that if I told readers, they would come and fill up all the rooms and I would not be able to return. I know this is wrong, they just refuse to believe.
5. There is this USA cultural thing, that bragging about paying a lot of money makes you appear rich, prosperous and successful, so I have in the past shown pictures, but not always the price.
6. People try to shame me, try to make fun, try to insinuate I am cheap, I know I am the smart one, but it takes a lot of work to fend off the idiots.
...
End quote.

Source: Brag About Your 200 Dollars Per Month Room
Sam is offline   Reply With Quote
Old 11-13-2010, 07:22 AM   #75
Full time employment: Posting here.
 
Join Date: May 2007
Posts: 604
Quote:
Originally Posted by NW-Bound View Post
Not at all.

The 2.1% SWR was simply from an article that was the subject of a recent gloom-and-doom thread here:

http://www.early-retirement.org/foru...1-a-52878.html

Being a naturally pessimistic guy, I thought I would lower my expectation so that I would not be disappointed.
Thanks for the info and the link. Interesting reading, although a bit depressing. I consider myself pretty conservative financially, and may have to ratchet down a bit my max of 3% WR.
ksr is offline   Reply With Quote
Old 11-13-2010, 07:36 AM   #76
Recycles dryer sheets
Sea Kayaker's Avatar
 
Join Date: Aug 2009
Location: Vancouver/Gulf Islands/Baja
Posts: 479
DW and I live on about 36k per year in Canada's most expensive city. When we ditch the mortgage in 2012 we will be living on about 24k. Our take home pay is 92k per year, so we are taking LBYM to the extreme... this is our simple recipe for FIRE.
Sea Kayaker is offline   Reply With Quote
Old 11-13-2010, 12:00 PM   #77
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2008
Posts: 5,170
Quote:
Originally Posted by Rich_in_Tampa View Post
Good poll, but whether you include income taxes (say, in the 15-20% range) and health insurance (in our cases $12K per year) can make a huge difference in your reply to the OP.
I'd say it would make a huge difference, especially if you were making a lot of money and paid a huge income tax while you were a spend-thrift - someone paying $80K of in income tax but spends only 39K a year, for example. His/her spending range would go from one of the lowest to the highest.
tmm99 is offline   Reply With Quote
Old 11-14-2010, 10:39 PM   #78
Full time employment: Posting here.
 
Join Date: Jun 2009
Location: SoCal
Posts: 564
I am single, am still paying on my mortgage and live in Southern California (so kind of expensive)...am on track to spend $48K this year, next year will probably be closer to $55K due to a big trip I'm planning on.

Frankly if anyone asked me what I spent a year, I don't have a problem talking about it. If someone "criticized" me for what I spent, I would ignore them. I've worked damn hard at school and at w*rk in order to make enough money to comfortably spend what I do, responsibly save what I can, and anyone who had a problem with that can go pound sand as far as I'm concerned.
caninelover is offline   Reply With Quote
Old 11-15-2010, 07:03 AM   #79
Recycles dryer sheets
 
Join Date: Mar 2008
Posts: 57
Quote:
Originally Posted by Alan View Post
First year of retirement and, as planned, our expenses are up by 20% due to lots of travel. Next year should be similar.
First year of retirement, at least for me, and our expenses are up about 10% due to unexpected home repairs and appliance replacement. I certainly hope next year is NOT similar":-). But I don't think they will be. Most everything else is in good shape. Still it reminds me about preparing for the unexpected. We also need a new car but that had already been figured in the budget. That's the largest expense and it's not as worrisome since we've always had it budgeted. Other than these surprises I think we've spent just a bit less than we planned on. That's a pleasant surprise.
metabasalt is offline   Reply With Quote
Old 11-15-2010, 08:20 AM   #80
Thinks s/he gets paid by the post
 
Join Date: Dec 2004
Posts: 1,798
Quote:
Originally Posted by metabasalt View Post
First year of retirement, at least for me, and our expenses are up about 10% due to unexpected home repairs and appliance replacement. I certainly hope next year is NOT similar":-). But I don't think they will be. Most everything else is in good shape. Still it reminds me about preparing for the unexpected. We also need a new car but that had already been figured in the budget. That's the largest expense and it's not as worrisome since we've always had it budgeted. Other than these surprises I think we've spent just a bit less than we planned on. That's a pleasant surprise.
The plan I have is to either replace major items just before before retirement. I figure that way I should get about 10 years of good use before having to replace anything.
__________________
You don't want to work. You want to live like a king, but the big bad world don't owe you a thing. Get over it--The Eagles
lets-retire is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
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
What do you like about where you live? wildcat Other topics 72 06-18-2007 08:38 AM
What a way to live! citrine Other topics 1 06-14-2007 09:37 AM
Live long enough to live forever (book) JJac Health and Early Retirement 10 11-25-2006 07:41 PM
How much to do need to live off of in RE jimmycarter Life after FIRE 88 07-05-2005 11:42 AM

» Quick Links

 
All times are GMT -6. The time now is 11:45 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.