My annual expenditure

[martyb]

One might avoid Fed & State tax by either (1) spending from savings, (2) taking from a Roth IRA.

We payed a lot in taxes this year.

I will be retiring in a state that will not tax any of my retirement income (Texas or Louisiana). That includes my federal pension(s) & withdrawals from my TSP. Also, I expect to be in a 10% or so federal tax bracket. My retirement planning is all calculated on net income numbers, since that's the only part that actually makes it into my checking account.

 

[Lsbcal]

I started this thread off talking about % withdrawal rates.

Now I'm thinking the $ figures really juice up the dialog here.

And wow what a spread, from maybe 20k/year up to 250k/year.

 

[Lsbcal]

We are ALL the good guys, Lsbcal. Every one of us. We are all doing our best to set goals that are reasonable for us as individuals, and to meet those goals as best we can. It's just interesting to read where others are on their parallel, though often different, journeys through life.

W2R, I will vote for you if you run for some political office.

 

[rbmrtn]

Here is just another perspective...hope it isn't taken the wrong way by anyone:

Some of us who still work, or have a partner who work, in a professional or senior management position, pay much more in taxes than we spend.
R

I know exactly what you mean, and that is one of the reasons I quit.Working 12 hr days/ 7 days a week. I made a lot but 50% was gone before I ever got to touch it. I knew I could live comfortably on a lot less and without the stress involved so I quit.

 

[NW-Bound]

I'm not particularly proud of it - just happy that I can lead a life I'm comfortable with on this kind of money. My lifestyle is very simple. I was lucky to find a nice studio apartment in a lovely 100 year-old house in a good part of town for only $640/month including utilities. In the metro area I live in, that is very reasonable. The older gentleman who owns the house rarely raises the rent, so it's a deal that has worked well for the very long-term residents. Hopefully the "outside world" won't come as too much of a shock to them if they have to move out (he is getting rather old, and I'm not sure that a new owner would want to continue to run it as a rental property.)

As well as low rent, I have a landline telephone only with DSL (total internet and phone bill is $30/month including long distance), no cable or satellite TV, and no car - just a bicycle I bought for $100 from Craigslist. The bike also gives me much-needed exercise.

Other than rent, my only other significant expense is food, for which I spend about $300 - $350/ month. I tried eating very cheaply before, and it was affecting my health so now I include lots of fruit and vegetables in my diet.

Maintaining this low-cost lifestyle is made easy by my rather reclusive personality. My favorite place to be is at home with my cats. I rarely go out to socialize and hardly ever eat out, yet this is my preferred way of life - for many it would feel like self-imposed hardship. I'm sure a few of the other introverts here can empathize!

Glad to hear you're a pet-owner too. They are my pride and joy - both of which were adopted this year. Common wisdom says that you shouldn't expect an older shy cat to get along with a kitten but after a few bathroom incidents on the sofa, my older cat has accepted the kitten and they get along just fine. In fact, I think that the outgoing little girl has helped the shy older lady come out of her shell.

Your housing cost is indeed very low for your location. I do not know much about rental markets, but recently, when wandering around downtown Fort Bragg which consisted of about 4 blocks, I saw a sign for a rental apartment on top of a storefront for $950. I thought that was high for that location, which should be a lot lower than where you are.

The problem with living so cheaply is that it might cost you more to move out on an RV, so you will not do it, and won't get to experience it.

Anyway, I like to read people's blogs on how little they live on. I have always felt that beyond some basic necessities, one's expenses are very elastic. While it is true that it is a lot easier to adjust up than to scale down, when it comes to it, people will find a way to adapt. So much of what people have is just fluff anyway. Hence, I have been itching to do an experience of my own with RV living for a few months. The problem is my family will think that I have gone crazy.

 

[Mulligan]

I do not get enough of the frugal posts!

So, I have been reading blogs of full-time RV'ers who live in the boondocks to get more. They live close to nature, and get lots of exercise. Good stuff! The smaller their RV, the more interesting story they tell.

Common NW, surely you could stand one opulent post! I'm still waiting as our wealthier brethren are way too modest here to write about it. I want to read a Trump like post so I can really know what I am missing out on. I remember being so poor in my 20's (but never in debt fortunately) that my best friend and I for entertainment would drive to the city to look at the new cars and big tvs and decide which ones we wanted if we had money to actually buy them. Now that I can actually afford some of these "extras", I somehow have become too cheap to buy them.

 

[M Paquette]

I'm not sure the dollar figures are all that meaningful. A single person with retiree medical coverage in a cheap area is going to look really different expenditure-wise from a couple with children in an expensive area buying their own insurance and having a bad year for deductibles.

 

[Major Tom]

The problem with living so cheaply is that it might cost you more to move out on an RV, so you will not do it, and won't get to experience it.

Anyway, I like to read people's blogs on how little they live on. I have always felt that beyond some basic necessities, one's expenses are very elastic. While it is true that it is a lot easier to adjust up than to scale down, when it comes to it, people will find a way to adapt. So much of what people have is just fluff anyway. Hence, I have been itching to do an experience of my own with RV living for a few months. The problem is my family will think that I have gone crazy.

That could indeed be a problem. However, I think it quite possible that I will have to move out of here at some point - the owner is older and after a sale, this may well not remain a rental property. If forced to move, I may use it as an opportunity to try RVing for a while. We'll see. I'd like to do it if for no other reason than to get it out of my system so I can move back to a "sticks and bricks" abode, but without the RV fantasies!

Like you, my SO doesn't share my RV fantasies. I have a bit more leeway though as we don't live together and see each other about once a week. I could probably live out of town and come back to see her, say, every 2 weeks. She is open to the idea of flying out to meet me on her time off from work if I am doing a bit of extended traveling. However, if I do this, it will be quite a serious challenge to the relationship. I'll cross that bridge if and when I come to it. I'm not sure how you'd work that out with your DW though. Do you have any ideas for that?

 

[NW-Bound]

However, if I do this, it will be quite a serious challenge to the relationship. I'll cross that bridge if and when I come to it. I'm not sure how you'd work that out with your DW though. Do you have any ideas for that?

I have hinted that if she cannot go for a long Alaskan trip with me, I might have to do a solo trip. My wife didn't say anything to that. The truth is we will both feel lonely when separated for longer than a couple of weeks, so it may never happen.

One thing about full-time RV'ing is that so many bloggers I follow quit after about 5 to 8 years on the road, and settle down again in a home. Very few people can be a perpetual traveler. And travel in an RV is not cheap due to the fuel cost. It would not be a lifestyle of $15K/yr as I said earlier. To keep costs low, one has to camp in a place for a period and to limit driving. And if one just camps out in the wilderness without travel, then I already have my rural boonies home where I can have some solitude in real comfort.

So, right now, it's just a fantasy, but I am really curious to see how I would feel being alone in the real Alaskan wilderness. Perhaps just after a month or so, I would crawl back home to the safer surrounding. I don't think I can be a "saint" according to my earlier definition.

 

[powerplay]

I have hinted that if she cannot go for a long Alaskan trip with me, I might have to do a solo trip. My wife didn't say anything to that. The truth is we will both feel lonely when separated for longer than a couple of weeks, so it may never happen.

One thing about full-time RV'ing is that so many bloggers I follow quit after about 5 to 8 years on the road, and settle down again in a home. Very few people can be a perpetual traveler. And travel in an RV is not cheap due to the fuel cost. It would not be a lifestyle of $15K/yr as I said earlier. To keep costs low, one has to camp in a place for a period and to limit driving. And if one just camps out in the wilderness without travel, then I already have my rural boonies home where I can have some solitude in real comfort.

So, right now, it's just a fantasy, but I am really curious to see how I would feel being alone in the real Alaskan wilderness. Perhaps just after a month or so, I would crawl back home to the safer surrounding. I don't think I can be a "saint" according to my earlier definition.

Would your wife consider traveling with you one way and then flying home while you continue to commune with the wilderness for a few weeks? Could be a win-win.

 

[NW-Bound]

That's a good suggestion.

I need to get her to go with me to Alaska first, and that leg could be a month or two. It could very well be that at the end of the trip, I have the wilderness out of my ears, and want to be back home too.

I know full-well that I am susceptible to fantasies that once realized may not be up to expectation. But when a guy's sitting at home and cannot travel because his wife has family obligation, he thinks the grass is greener "up north".

 

[rescueme]

I'm still waiting as our wealthier brethren are way too modest here to write about it.

Well, I won't do it, even though I don't consider myself/DW "wealthy", at all. I was zapped on another thread a few weeks ago, concerning the amout of money we spend on travel, and I don't need to go through that situation again.

If I tell the truth, I'm bragging according to some folks (even though that's not my intention, at all).

If I say I/DW are spending less, I'm lying.

So I just keep my mouth (e.g. fingers) "closed" and read (with interest) the posts of others...

 

[Lsbcal]

Well, I won't do it, even though I don't consider myself/DW "wealthy", at all. I was zapped on another thread a few weeks ago, concerning the amout of money we spend on travel, and I don't need to go through that situation again.

If I tell the truth, I'm bragging according to some folks (even though that's not my intention, at all).

If I say I/DW are spending less, I'm lying.

So I just keep my mouth (e.g. fingers) "closed" and read (with interest) the posts of others...

I understand your feeling as none of us wants to be tagged as one of those rich bastards. It takes very little to make some other people envious.

You could just talk in percentage terms though that doesn't pack the punch of $$$$. Fictional example,
1) We spent 1% on travel this year. Last trip was to Tahiti.
2) We spent $60000 on travel this year. Last trip was to Tahiti.

 

[Mulligan]

Well, I won't do it, even though I don't consider myself/DW "wealthy", at all. I was zapped on another thread a few weeks ago, concerning the amout of money we spend on travel, and I don't need to go through that situation again.

If I tell the truth, I'm bragging according to some folks (even though that's not my intention, at all).

If I say I/DW are spending less, I'm lying.

So I just keep my mouth (e.g. fingers) "closed" and read (with interest) the posts of others...

That's a shame because I like reading such posts and adventures about nice trips and such. This is an ER forum not ER Frugality only forum, though there certainly isn't anything wrong with frugality. Maybe sometimes amazement gets lost in translation when posted to be interpreted as jealous. If you got a good story, rescue, I will be glad to read it!

 

[Major Tom]

Well, I won't do it, even though I don't consider myself/DW "wealthy", at all. I was zapped on another thread a few weeks ago, concerning the amout of money we spend on travel, and I don't need to go through that situation again.

If I tell the truth, I'm bragging according to some folks (even though that's not my intention, at all).

If I say I/DW are spending less, I'm lying.

So I just keep my mouth (e.g. fingers) "closed" and read (with interest) the posts of others...

I didn't see that thread, but I'm sorry to hear it. I don't think any of us should have to justify how much or how little we spend. We may break down our expenses and explain them, but we should never have to defend the fact that we spend "a lot" or "not very much".

 

[NW-Bound]

I know most people say money doesn't buy happiness but I promise i'd be happier with more money.

I think all people can be happier with more money, if not for spending then for the pleasure of counting. Else, why do frugal billionaires like Buffett still work to get more?

For the average Joes like ourselves, there's plenty of worldly leisure to buy with additional money. However, any purchase can be made wisely or foolishly. Most of us with less than unlimited means must make compromise, or shop to get the most bang per buck. And one can get to the diminishing return point pretty fast.

I don't think any of us should have to justify how much or how little we spend. We may break down our expenses and explain them, but we should never have to defend the fact that we spend "a lot" or "not very much".

Yes.

It's just that when people with more means than me tell how they spend their money, it's just not as interesting as the story from someone with the same means or less. It's so that I can easily duplicate their experience if it appears exciting.

Another important point is that people who travel on more limited means can have a much more interesting experience to tell. I have told how I like to read blogs of RV'ers, some of them do not have a lot of money. Yet, their travels are a lot more adventurous than that of someone who simply books a big balcony fancy suite on a cruise ship.

PS. I found the blog of an RV'er pair in their late 50s who shipped their RV to Europe (no, not the better known Milavsky couple). They appeared to be not that rich, as the husband had to go back to work after their trek. Then, shortly after he went back to work, they deleted their blog before I had a chance to read all of it. Theirs is among the intriguing stories that I like to read.

 

[melion]

The total spends for us (my wife and I plus 3 children) is about $105k.

The 2 biggest items are holidays (we took a total of 10 trips this year) and prepayment for a new car. These 2 items account for 30% of the total.

 

[Amethyst]

I see the purpose of threads like this to educate all of us on a topic that we find endlessly interesting...how do others live, in comparison to me? Some people will always poke at others' lifestyles. I don't remember any really mean pokes at you, but I don't always get to read all of every thread. Also, criticism feels different when you're on the receiving end, instead of in the audience.

Envious people might say envious things, and whether in a real-life or Internet forum, all can see the envy for what it is. Many others say thoughtless things sometimes (guilty as charged, though not in your case since I didn't post ). Don't let any of it stop you from posting things that feel good to talk about, such as travel, etc. How is it unacceptable to talk about spending money on travel for fear of provoking envy, when some people post about their wonderful families, and for all they know, some forum members may be all alone in the world? The only risk-free alternative is to say nothing, and there goes the forum.

Amethyst

Well, I won't do it, even though I don't consider myself/DW "wealthy", at all. I was zapped on another thread a few weeks ago, concerning the amout of money we spend on travel, and I don't need to go through that situation again.

If I tell the truth, I'm bragging according to some folks (even though that's not my intention, at all).

If I say I/DW are spending less, I'm lying.

So I just keep my mouth (e.g. fingers) "closed" and read (with interest) the posts of others...

 

[NW-Bound]

I now see that my reply earlier could have been miscontrued, so let me do it again.

I didn't see that thread, but I'm sorry to hear it. I don't think any of us should have to justify how much or how little we spend. We may break down our expenses and explain them, but we should never have to defend the fact that we spend "a lot" or "not very much".

+1

I am not sure what post was talked about, but IIRC, rescueme spent something like $30K/yr on travel. I do not think that is even at the opulent level, but simply reflects the desire of someone who likes to travel, period.

My sister and her husband have been spending a lot of money on travel recently, after her recovery from a mild cancer. I just drove them off to the airport, for them to catch a 2-week cruise.

Earlier this year, they took an Alaskan cruise, and also paid for their offsprings to accompany them. They have had 2 or 3 European trips this year, and also the same number of domestic trips. Would that not add up to $30K or more? We do not ask, but are glad that they are out enjoying themselves while they still can. I myself do not think I can travel that much, but hey, everybody is different. A few years earlier, we were the frequent travelers in the family, but now hold a distant 2nd place.

 

[Purron]

About $65,000 for DH and I. Wish the nearly $12,000 we spent on health insurance coverage was for something fun like a European vacation. Even so, we consider ourselves fortunate to have retired early.

We expect this to drop to about $55,000 next year. We had a lot of expenses related to fixing up our old house for sale.

We live in a very high cost of living area (DC suburbs) but don't think we'd save a lot by moving. Our very modest home is paid for and the taxes and other expenses are not too bad.

Plus we like it here. Everyone we love and everything we love to do is close by.

 

[Purron]

Y'all must not have enough friends, LOL--my "beer budget" also includes entertaining and going out with friends. And I also include in that guess the really fun stuff, like DH's 50th birthday party last weekend. We rented a place at the beach, cooked a bunch of oysters and barbecue, and inaugurated the shot-ski drinking device. A very memorable (for the ones who could remember) night! And well worth the expense in booze. Here's the birthday boy in his splendid gift shirt with his best buddies.

You know how to live Sarah Lots of friends, lots of pets, lots of joy in your life.

 

[Purron]

They are my pride and joy - both of which were adopted this year. Common wisdom says that you shouldn't expect an older shy cat to get along with a kitten but after a few bathroom incidents on the sofa, my older cat has accepted the kitten and they get along just fine. In fact, I think that the outgoing little girl has helped the shy older lady come out of her shell.

I LOVE these 2 babies very much indeed!

Beautiful kitties! DH and I love hanging around the place with our cats too.

“I love cats because I enjoy my home; and little by little, they become its visible soul.” Jean Cocteau

 

[ejman]

If I were not married, nor had the "stuff" that I had, I would take off in my little 25' motorhome and wander around the country. I'll bet I can live on a lot less than I spend now, and not unhappy about it at all. That is as long as I get Internet access every few days to see that my stash is still there. Heh heh heh...

For me, having money can be just as good as spending it. Some scroogy types here know what I am talking about. Heh heh heh... Wife will not understand it though.

Well, if you want to follow the lifestyle of Sr. Rico McPato in your RV, how are you going to fit that swimming pool full of gold coins in there? Sorry for the delay on posting the question but we have been snowed in and without power water and communications for a couple of days here at the SW Oregon branch of paradise.

 

[NW-Bound]

That would be a NICE problem to have. It's perhaps most easily solved by abandoning the small class C RV and reluctantly moving up to an opulent class A that I really do not care for.

Alas, at this point, my figurative little pile of gold coins weights less than the two deep cycle RV batteries in my RV. I still have a long long way to go to exceed the 2600-lb cargo carrying capacity of this puny RV. I remember that even my most optimistic FIRECalc 30-yr run still ends up far below that CC, at the current Au price.

 

[NW-Bound]

Out of curiosity, I looked up the densities of gold and lead. Turned out that gold is even denser than lead. So, I could get two dead lead-acid batteries, hollow them out and hide my gold in there, and still have room for growth. Heh heh heh...