Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
My annual expenditure
Old 12-19-2012, 03:31 AM   #1
Thinks s/he gets paid by the post
obgyn65's Avatar
 
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
My annual expenditure

As we are approaching the end of the year, I thought I should start a new thread about annual expenditure before I travel for two weeks from this coming weekend.

My personal annual expenses for 2012 were less than $40k. Single, 47, no debt, owning my condo.

I feel very safe as my FIRE plan shows I can withdraw between $85k and 100k this year from my nest egg. Therefore, I may be classified as one of those who do suffer from the "one more year" syndrome, which I hope this forum can help me get rid of .

Take care everyone.
__________________

__________________
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
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 12-19-2012, 05:44 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,627
OK, my personal annual expenses are about $5,000. It's all those other expenses that get to me like college expenses for child, income taxes, charitable giving, property taxes, health insurance, etc.
__________________

__________________
LOL! is offline   Reply With Quote
Old 12-19-2012, 06:23 AM   #3
Recycles dryer sheets
Richard4444's Avatar
 
Join Date: Jul 2011
Location: South Florida
Posts: 402
Quote:
Originally Posted by obgyn65 View Post
My personal annual expenses for 2012 were less than $40k. Single, 47, no debt, owning my condo.

I feel very safe as my FIRE plan shows I can withdraw between $85k and 100k this year from my nest egg.
Are you saying that you spend $40,000 annually, while you could FIRE now at $85 - $100 K? If that is so, give your two weeks notice before your two week vacation
__________________
Richard4444 is offline   Reply With Quote
Old 12-19-2012, 06:25 AM   #4
Thinks s/he gets paid by the post
obgyn65's Avatar
 
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
Easier said than done.

Quote:
Originally Posted by Richard4444

Are you saying that you spend $40,000 annually, while you could FIRE now at $85 - $100 K? If that is so, give your two weeks notice before your two week vacation
__________________
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 12-19-2012, 06:32 AM   #5
Recycles dryer sheets
Richard4444's Avatar
 
Join Date: Jul 2011
Location: South Florida
Posts: 402
Quote:
Originally Posted by obgyn65 View Post
Therefore, I may be classified as one of those who do suffer from the "one more year" syndrome, which I hope this forum can help me get rid of .
So, are you agreeing with my above concept. And are you looking for validation to RE when you spend 50% of your projected SWR ??
__________________
Richard4444 is offline   Reply With Quote
Old 12-19-2012, 06:54 AM   #6
Confused about dryer sheets
 
Join Date: Oct 2012
Posts: 4
i'm on course for a savings rate over 60%, a personal record
__________________
pablohk is offline   Reply With Quote
Old 12-19-2012, 07:16 AM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
donheff's Avatar
 
Join Date: Feb 2006
Location: Washington, DC
Posts: 8,653
I don't know. Living on so little and making so much are you working long hours and living very small outside of work" If so, it strikes me that "what will you do all day" may be a real question. Is there any way you can scale back at work and begin exploring what life after FIRE may hold for you? You can clearly afford to do lots more (outside of work) than you do today, but what? Alternatively, you may be one of us who thrives on chillaxing and doing pretty much nothing, but have you ever tried that to see?
__________________
Every man is, or hopes to be, an Idler. -- Samuel Johnson
donheff is online now   Reply With Quote
Old 12-19-2012, 07:34 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,020
While I'm another frugal MD, I can't beat that. My personal expenses this year will total ~$50k. Then again, I'm in Canada, where stuff costs more. And that does include socking away $5k in my TFSA, plus some debt repayment.....hmmm. Must recalculate!

Anyhow, I'm wondering about a couple of things. First, do you own a vehicle? Living in Chicago you may not need one. After ER are you likely to take road trips or move to a suburban or rural location where a vehicle will be essential?

Second, you do a lot of volunteering in Central America. Are your travel and accommodations paid for? If you are away from home a lot and eating on someone else's dollar, your personal food budget will be low.

Third, as donheff said, how will you fill the time you now devote to work? After ER that time may go from a revenue center to an expense.

Fourth, what about the cost of health insurance in ER?

For all those reasons I would not assume that your personal expenses will remain so low when you ER.
__________________
Meadbh is offline   Reply With Quote
Old 12-19-2012, 08:15 AM   #9
Full time employment: Posting here.
Koogie's Avatar
 
Join Date: Nov 2007
Location: GTA
Posts: 858
Obgyn thanks for starting this thread. I've always been impressed by your lifestyle and the way you are planning on doing things. You don't have to justify your choices, or deferring your choices, to anyone.

This years expenditures seem to be on track with last years for us. 68K, married cpl. Again, like a previous poster, you have to realize that we have a higher cost of living in Canada (think taxes and higher cost of goods). Saying that, a lot of our expenses are intermingled with the business, so it is hard to draw a straight line through them. We are also renting a house close to work for a better quality of life. When we ER, that cost (35% of the total) will reduce significantly as we buy a cheap house out in the boonies.
__________________
"No one's interested in something you didn't do"
Tragically Hip - Wheat Kings
Koogie is offline   Reply With Quote
Old 12-19-2012, 08:27 AM   #10
Recycles dryer sheets
Backpacker's Avatar
 
Join Date: Feb 2011
Location: On a dirt road
Posts: 191
I must be doing something wrong... We spent approx. $67,500 in 2012. Not sure what you'all are counting as personal expenditures. I counted food, personal hygene products, utiltities, insurance of all kinds, car gas, RE tax, tithe and gifts, and repairs. We are totally debt free, but have 5 kids so maybe that sucking noise i hear is the kids 2 are on their own for the most part 2 in college and 1 in HS
__________________
"Up sluggard and waste not the day, in the grave will be sleeping enough." Benjamin Franklin
Backpacker is offline   Reply With Quote
Old 12-19-2012, 08:28 AM   #11
Thinks s/he gets paid by the post
 
Join Date: Jul 2012
Location: Mississippi
Posts: 1,878
ontrack for a little over $16k.
__________________
rbmrtn is online now   Reply With Quote
Old 12-19-2012, 09:08 AM   #12
Thinks s/he gets paid by the post
 
Join Date: Jan 2006
Posts: 2,975
Looks like I should come in a couple hundred under my $15,000 budget. Single, no kids, no debt, low cost area.
__________________
aaronc879 is offline   Reply With Quote
Old 12-19-2012, 09:08 AM   #13
Thinks s/he gets paid by the post
 
Join Date: Nov 2009
Posts: 3,873
I am right around $20k for the year 2012.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
scrabbler1 is online now   Reply With Quote
Old 12-19-2012, 09:38 AM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Sep 2005
Location: Northern IL
Posts: 18,299
Quote:
Originally Posted by Backpacker View Post
I must be doing something wrong... We spent approx. $67,500 in 2012. Not sure what you'all are counting as personal expenditures. I counted food, personal hygene products, utiltities, insurance of all kinds, car gas, RE tax, tithe and gifts, and repairs. We are totally debt free, but have 5 kids so maybe that sucking noise i hear is the kids 2 are on their own for the most part 2 in college and 1 in HS
Assuming you know basic arithmetic, I doubt you are doing anything wrong.

The kid thing may be a significant factor. I've never felt motivated to micro-track my budget, but I only have two accounts that spending money comes out of, so I just add up the withdraws from those two accounts, and adjust for anything that was reimbursed to us, or that was transferred to another account (my annual IRA contributions).

My spending hasn't really changed much at all over the past nine years. Property tax and HI have increased, mortgage has decreased (ARM), but kids have been leaving the nest, so I suspect that has had a mitigating effect on my personal inflation rate.

I also think one needs to budget (I call it 'phantom spending') for things that are bought occasionally. Cars are the big one for us. They are paid for, so you won't see any deduction in any account, but roughly every ten years, I'll be spending roughly $20,000, times two for our two cars. So that's roughly$4,000/year, that isn't 'spent', but essentially it is. I add it to my number.

I'll bet many people don't include that - but where does the money come from when they buy a car? I don't bother with other things (new roof, furnace, AC, water heater, driveway, appliances, etc) - I tend to try to spread those out, and tackle one of those categories every year or so. It averages out, and is fairly small %.

BTW, I won't share my number here. I see no point (other than curiosity) to these many threads about what others spend on this or that. I'm not a sheep, I don't really care what others do in this regard. I will do what works for me, and that can be very different from what works for someone else. What's the point in comparing? The point is to find a way to be happy within your means. If not, find a way to adjust one or the other or both. What else is there?

-ERD50
__________________
ERD50 is offline   Reply With Quote
Old 12-19-2012, 10:05 AM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,291
Heck, I would love to get our spending less than $100K....

Insurance and taxes take about 25% of that... then there is housing/cars etc. that take a bit more than 25%....



Our budget for 'personal' items, which include food/gas/entertainment and a lot of other small things is $30K... but with DW and kids, we are closer to $40K every year... it was much easier when I was single....
__________________
Texas Proud is offline   Reply With Quote
Old 12-19-2012, 10:24 AM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Mulligan's Avatar
 
Join Date: May 2009
Posts: 7,384
Quote:
Originally Posted by Backpacker
I must be doing something wrong... We spent approx. $67,500 in 2012. Not sure what you'all are counting as personal expenditures. I counted food, personal hygene products, utiltities, insurance of all kinds, car gas, RE tax, tithe and gifts, and repairs. We are totally debt free, but have 5 kids so maybe that sucking noise i hear is the kids 2 are on their own for the most part 2 in college and 1 in HS
Well, if my current experience reflects yours, the sucking noise from kids could be bigger than you think. My DD (yes, I love her and don't think of her as an expense, though we are talking money here) is currently my biggest monthly expense. The child support and my prepayment of college expenses is running around 30% of my monthly expenses. By far number one in costs, way outpacing my mortgage payment and health insurance. I will get a heckuva pay raise in 2 years when she is off the books. Even if she comes back to the nest from graduating, homeless and without a job, I will be big money ahead.
__________________
Mulligan is online now   Reply With Quote
Old 12-19-2012, 10:25 AM   #17
Thinks s/he gets paid by the post
imoldernu's Avatar
 
Join Date: Jul 2012
Location: Peru
Posts: 4,616
Quote:
Originally Posted by donheff View Post
I don't know. Living on so little and making so much are you working long hours and living very small outside of work" If so, it strikes me that "what will you do all day" may be a real question. Is there any way you can scale back at work and begin exploring what life after FIRE may hold for you? You can clearly afford to do lots more (outside of work) than you do today, but what? Alternatively, you may be one of us who thrives on chillaxing and doing pretty much nothing, but have you ever tried that to see?
+1 what don said.

Appears that you are too intelligent and too concerned with the world, to sit back and accept an easy life. While everyone is different, and some thrive on a self indulgent lifestyle, others will only find satisfaction in challenging themselves to be what they can be. No harm in either situation... but recognizing the need to be involved can provide more satisfaction over the long haul.

The difference between "work" and "satisfaction" is often a matter of relative freedom.

IMO, it is not necessary to make decisions, once one has financial independence, but to take the time to explore every possible area of interest, no matter what direction this exploration may take.

On my own part, look forward every day, to finding something new to be involved in, to learn about or study. Bored? NEVER! When the interest flags, move on. Politics today, Global Warming tomorrow, Religion the next day, Philosophy, Soccer, Civil War, Karl Marx, The Pyramids, RFD TV, Law, Medicine, Singularity, Fishing, Motorcycles, Swimming... The list goes on forever. My avatar is the historical figure I most admire.
.................................................. ...
What a wonderful future you have ahead... 40 years to love life, and a built in instinct to be meaningful to the world.

Well done!
__________________
imoldernu is offline   Reply With Quote
Old 12-19-2012, 10:36 AM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Lsbcal's Avatar
 
Join Date: May 2006
Location: west coast, hi there!
Posts: 5,698
This year I started to feel like the spending picture was coming together for me. I don't do a lot of category tracking of spending but do know what the overall year's picture looks like from a monthly maintained spreadsheet. I'll give more details if someone asks.

I try to come up with target numbers for just these 3 categories:
1) Basic living expenses which will only be cut down a little during an extreme portfolio shock (which hopefully never comes). Includes some eating out and good food at home.
2) Spending on DS until he can become fully self supporting.
3) Fun stuff -- new things for house not really required, vacations

My current goal is to spend no more then 4% of the start of the year portfolio value. This basically determines spending on the fun category. DW cares mostly about the fun category.

Things seem to come up that I don't anticipate. This year it was DS's layoff and DW's dental work. This has pushed expenditures to 4.9% of the portfolio at the start of 2012. On the other hand, the portfolio value increased quite handsomely. That's life for you.

P.S. This year our fun category included a 2 week stay in Paris. So planning, work, and luck paid off. I'm going on Medicare soon so will then be truly a senior citizen.
__________________
Lsbcal is online now   Reply With Quote
Old 12-19-2012, 10:56 AM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
bbbamI's Avatar
 
Join Date: Dec 2006
Location: Dallas 'burb
Posts: 9,039
Two people, (55 & 58) both retired and no debt...a few hairs less than 3% of our portfolio.
__________________
There's no need to complicate, our time is short..
bbbamI is offline   Reply With Quote
Old 12-19-2012, 11:06 AM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,449
Lemme see... Two pre-geezers, both 56, one eating a lot more than the other (drinking too)...

From Quicken, (Expenses over last 12 mo.)/Current Portfolio = 3.6757021724846%.

Darn! It was only 3.25% a month or two ago. I even bragged about that low WR in a post here.

What happened? Portfolio stayed about the same, so it must be the expenses going up. Yes, there was that recent Hawaiian trip, but it was not that much. Something's wrong!

Maybe there were other bills that came in recently. No more cognac, nor eating out until that WR goes down. What's that cheap Tequila again?
__________________

__________________
NW-Bound 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


 

 
All times are GMT -6. The time now is 09:12 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.