Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Re: The closer I get the less I save.
Old 04-19-2007, 05:14 PM   #21
Thinks s/he gets paid by the post
SteveR's Avatar
 
Join Date: Jul 2005
Posts: 2,803
Re: The closer I get the less I save.

Quote:
Originally Posted by trixs
I cant imagine how some of you guys think living on 28k is impossible.. Well, yes I can as its all just the area.

...All of the bills above are actually my expenses.. Averages out to $1300 a month for everything :
So, how many kids are you feeding?
Health insurance?
Medical bills?
College fund?
Car and house insurance?
Fed. and State income taxes?
Vacations?
Savings?
Christmas and other gifts?
House repairs?
Car repairs?
Gas for cars?
Etc.

Not saying you CAN'T do it....only that I would not want to.
__________________

__________________
Work? I don't have time to work....I'm retired.
SteveR 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!

Re: The closer I get the less I save.
Old 04-19-2007, 05:30 PM   #22
Thinks s/he gets paid by the post
DangerMouse's Avatar
 
Join Date: Jan 2007
Location: Silicon Valley
Posts: 1,812
Re: The closer I get the less I save.

Does your increased expenditure bother you or are you more bothered that it conflicts with FIRE and LBYM?

As Steve mentioned, balance is what it is all about. With regards to your expenditure on dining out, I am just wondering if this is for you and the wife or are you spending this taking the kids out?
__________________

__________________

I be a girl, he's a boy. Think I maybe FIRED since July 08. Mid 40s, no kidlets. Actually am totally clueless as to what is going on with DH.
DangerMouse is offline   Reply With Quote
Re: The closer I get the less I save.
Old 04-19-2007, 07:07 PM   #23
Thinks s/he gets paid by the post
maddythebeagle's Avatar
 
Join Date: Jun 2005
Posts: 2,450
Re: The closer I get the less I save.

Quote:
Originally Posted by rw86347
I track my spending very closely. I am very frugal, but not extreem. I change my own oil, and my wife cuts my hair, but I don't feel deprived.

I have a $1100 mortgage, and commute 100 miles per day. In total I spend $33,600/yr.

I have 18 more house payments, then It will cost me $20,400/yr.

After I quite work, I think it will cost me $16,800/yr (1/4 the driving)

All of this without changing my lifestyle. I do worry that once I quit working I will be more temped to shop.

rw
No doubt that you have been tracking...you certainly can have a much reduced tax bill in FIRE with planning....it seems after reading a lot of folks...it comes down to the wildcard of health insurance and expenses...for that a working spouse is in order
__________________
- Hurry! to the cliffs of insanity!
maddythebeagle is offline   Reply With Quote
Re: The closer I get the less I save.
Old 04-19-2007, 09:57 PM   #24
Recycles dryer sheets
 
Join Date: Jun 2006
Posts: 133
Re: The closer I get the less I save.

Quote:
Originally Posted by Maddy the Turbo Beagle
..it comes down to the wildcard of health insurance and expenses...for that a working spouse is in order
I have racked my brain over Health care. I can't figure out how i will do it after I quit my job.

RW
__________________
rw86347 is offline   Reply With Quote
Re: The closer I get the less I save.
Old 04-19-2007, 10:30 PM   #25
Thinks s/he gets paid by the post
 
Join Date: Apr 2007
Posts: 1,304
Re: The closer I get the less I save.

Quote:
Originally Posted by rw86347
I have racked my brain over Health care. I can't figure out how i will do it after I quit my job.

RW
I've just gone through my own 'figuring' ... it is a lot more expensive.
I will be doing COBRA for 18 months which will cost me about 5x what I am paying now for DW and I. Then I get the opportunity to do MegaCorp retirement health care for about 8x the working rate.
I have looked into BCBS ppo and a 'like plan' to what I have today will be about 6x of working rate. This is not good, but I am fortunate to have the funds to do this.

Do you have a COBRA option? Are you retiring or quiting and do you have any company options? Try this as a starter: http://www.bcbs.com/coverage/
Good luck.
__________________
Life is GREAT!
megacorp-firee is offline   Reply With Quote
Re: The closer I get the less I save.
Old 04-21-2007, 07:53 PM   #26
Recycles dryer sheets
 
Join Date: Jun 2006
Posts: 322
Re: The closer I get the less I save.

Most of the retirement calculators look at your savings not your spending.
Of course you have to plug in what return you expect on those savings. As long as your expectations are reasonable. I dont see why it would be an issue.
Most people on here seem to plan on saving a % above their true target. SO they have breathing room.
Rob
__________________
spideyrdpd is offline   Reply With Quote
Re: The closer I get the less I save.
Old 04-21-2007, 08:35 PM   #27
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Re: The closer I get the less I save.

This is a list used to estimate annual expenses for a family of four. Some items are not applicable, e.g., pet care and liability insurance. It is definitely more than $28K per year.

Savings for kid's college
Savings for new car
Rent or Mortgage Payments
Property Taxes
Automobile payments
Other loan payments
Credit card payments
Electricity
Gas
Telephone/Cell Phone
Cable TV
Internet service
Water
Sewer/Garbage
House/Yard maintenance
Automobile maintenance & license
Gasoline
Other transportation costs
Automobile insurance
Homeowner's insurance
Life insurance
Liability insurance
Medical insurance
Uninsured medical/dental
Groceries
Drugs & other essentials
Restaurants
Support of others
Clothing
Vacation and travel
Entertainment & hobbies
Gifts and charities
Subscriptions and education
Other discretionary items
Home furnishings
Pet care
Long-term-care insurance
Music Lessons
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is online now   Reply With Quote
Re: The closer I get the less I save.
Old 04-21-2007, 08:41 PM   #28
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Re: The closer I get the less I save.

Quote:
Originally Posted by trixs
I cant imagine how some of you guys think living on 28k is impossible.. Well, yes I can as its all just the area.
This is it in a nutshell. I live in a pleasant, but decidedly middle-class neighborhood. Real estate taxes alone are over $6k, let alone mortgage, groceries, utilities, etc. I know I could live in a number of other areas for considerably less cash outlay, but 28k would be impossible here.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: The closer I get the less I save.
Old 04-21-2007, 10:15 PM   #29
Recycles dryer sheets
 
Join Date: Feb 2006
Posts: 82
Re: The closer I get the less I save.

Just pulled my budget from MS Money, edited it to remove taxes (explained below) Sometimes we go over the amounts listed (usually not by much, I cover that with the Misc here, or it gets "noted" and I include it into the budget. (or decide it is a one time event)

Last year we over spent by $4K, but I did that when we bought the 50 year old house and redid the windows/new heating system, new air conditioner... blah blah... that sort of remodeling can only go on for so long. I don't put these in the annual budget because I plan on being done this year. This year it will be 6K or so over again because I'm doing the kitchens and bathrooms, once those are done, I'm done. I am doing the work myself which is why its so cheap

This budget is meant to be a "retirement" budget.. Ie. I remove taxes I wouldn't pay in retirement. The only other thing I took out was parking because if we aren't working, we ain't paying for parking at work. (yes I know, its funny how some places charge you to park to work, but they do)

Also, internet is paid for by a startup company I'm part owner in since they put the server here. So for the forseeable future, I won't have to pay for that. Sometime I will, and thats where misc and wiggle room comes in play discussed below

Mortgage 7945.08
Healthcare : Dental 574.8
Healthcare : Physician 480
Healthcare : Prescriptions 120
Insurance : Health 4035.84
Dining Out 3600
Groceries 2600
Cash Withdrawal 720
Insurance : Life 502.84
Miscellaneous 2400
Insurance : Homeowner's/Renter's 450
Taxes : Federal Income Tax 0
Taxes : Medicare Tax 0
Taxes : Real Estate Taxes 1254
Taxes : Social Security Tax 0
Taxes : State Income Tax 0
Bills : Cable/Satellite Television 0
Bills : Cellular 0
Bills : Electricity 1296
Bills : Water & Sewer 540
Automobile : Gasoline 659
Automobile : Maintenance 720
Insurance : Automobile 895

Total 28792.56

Maybe my not counting the taxes is what is throwing people off on the budget of 28K just not possible.... With taxes counted, its about 38K, but after we retire, we won't have to pay that extra 10K of fed/state/ss/medicare taxes... (damn thats alot of $ isn't it)

So subtract those out of your budget, and see where you end up. I cover some things out of Misc that don't get tracked otherwise (probably should track them more). So there ya go, thats my current budget, I wouldn't retire on that tight of a budget, this is more to control/track my current spending.

My budget for FIRE is 40K. I figure with the budget above, even with creep, a little extra here (new "used" car) that sort of thing, I have plenty of wiggle room if I use the above budget as track and control, but plan for enough savings to goto 40K if need be.

Laters,
-d.
__________________
dgalbraith100 is offline   Reply With Quote
Re: The closer I get the less I save.
Old 04-21-2007, 11:40 PM   #30
Recycles dryer sheets
 
Join Date: Jun 2005
Posts: 301
Re: The closer I get the less I save.

Quote:
Originally Posted by dgalbraith100

Mortgage 7945.08
Taxes : Real Estate Taxes 1254
Here would be a big difference if I were to retire today:

Mortgage 16,236 (principle & interest only)
Real Estate Taxes 5,000

Right there I have $21,236 vs. your $9,199

So you can see for some of us, $28k is hard to believe !

And I don't live in a mansion by any means, just a decent house in the Chicago suburbs.

Granted though my mortgage will be gone when I retire, so maybe it isn't fair to compare.

- John
__________________
runchman is offline   Reply With Quote
Re: The closer I get the less I save.
Old 04-22-2007, 09:13 AM   #31
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Re: The closer I get the less I save.

Quote:
Originally Posted by dgalbraith100
My budget for FIRE is 40K. I figure with the budget above, even with creep, a little extra here (new "used" car) that sort of thing, I have plenty of wiggle room if I use the above budget as track and control, but plan for enough savings to goto 40K if need be.

Laters,
-d.
$40K seems doable. Just curios -- no taxes?
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is online now   Reply With Quote
Re: The closer I get the less I save.
Old 04-22-2007, 09:36 AM   #32
Recycles dryer sheets
 
Join Date: Feb 2006
Posts: 82
Re: The closer I get the less I save.

If I were to actually take the full 40K out, my tax estimate would be $766. 4 exemptions, 2 kids. 21K taxable income, 2K credits, tax left $766. Thats with standard deductions.

So taxes are very low (until I lose the kids) Once that happens I'll be almost a 3K tax bill, but not having the expense of kids will more than offset that won't it

-d.

[Edit]
I missed the Married filing jointly switch, that estimate above is for filing single. Filing jointly makes it 15K taxable income. And taxes owed is zero. (Thats what I remembered it being)
__________________
dgalbraith100 is offline   Reply With Quote
Re: The closer I get the less I save.
Old 04-22-2007, 10:00 AM   #33
Full time employment: Posting here.
 
Join Date: Aug 2005
Posts: 942
Re: The closer I get the less I save.

dgalbraith100

Your budget you posted includes most of the predictable monthly expenses with only $2,400 allocated for miscellaneous. That means only $2,4000 to cover
Christmas presants, decorations and entertaining
Birthday presants etc.
Home repair
Any purchases whether it be a new computer, clothes, shoes, socks, a haircut, a movie, a new toaster, a new washing machine, etc. etc.

That miscellaneous number in my budget is over $13,000. I can't emagine covering it on $2,400. I'd like to know your secret.
__________________
modhatter is offline   Reply With Quote
Re: The closer I get the less I save.
Old 04-22-2007, 10:29 AM   #34
Recycles dryer sheets
 
Join Date: Feb 2006
Posts: 82
Re: The closer I get the less I save.

Quote:
Originally Posted by modhatter
dgalbraith100

Your budget you posted includes most of the predictable monthly expenses with only $2,400 allocated for miscellaneous. That means only $2,4000 to cover
Christmas presants, decorations and entertaining
Birthday presants etc.
Home repair
Any purchases whether it be a new computer, clothes, shoes, socks, a haircut, a movie, a new toaster, a new washing machine, etc. etc.

That miscellaneous number in my budget is over $13,000. I can't emagine covering it on $2,400. I'd like to know your secret.
Christmas/B-day's we spend about $200 or so. (Not a big believer in buying things).

Home repair right now is "removed" from the budget because of remodeling. I expect once the remodeling is done I'll be left with $200-$500 a year. I do 99% of the work on the house myself. The only thing I'm not comfortable doing is Gas and flat tar roof.

New computer ($399), haven't bought one in 2 years, the one before that I owned for 6 years. Clothes usually we buy at Goodwill/Savers places (recycled stuff). Shoes I buy one pair every year or so for $50, my wife buys a couple pairs, but they are these cheap $7 shoes she gets from Target/Walmart.

Haircut, my wife does mine+kids, her sister does hers.
Washing machine is currently 14 years old (dryer too).

So yes those things will have to be purchased... but as you can see from the examples you gave, we just don't buy those sorts of things very often. Misc generally seems to cover them. When it doesn't, I slide money from the Dining out to cover and we eat out a bit less, or we just go over budget. If something huge comes up (new roof at 5K) then we'll be over budget for that year. But thats the reason to plan for 40K in retirement, not 28K which is what we "normally" spend.

-d.
__________________
dgalbraith100 is offline   Reply With Quote
Re: The closer I get the less I save.
Old 04-22-2007, 01:53 PM   #35
Thinks s/he gets paid by the post
 
Join Date: Sep 2006
Posts: 1,322
Re: The closer I get the less I save.

Quote:
Originally Posted by dgalbraith100
Christmas/B-day's we spend about $200 or so. (Not a big believer in buying things).

Home repair right now is "removed" from the budget because of remodeling. I expect once the remodeling is done I'll be left with $200-$500 a year. I do 99% of the work on the house myself. The only thing I'm not comfortable doing is Gas and flat tar roof.

New computer ($399), haven't bought one in 2 years, the one before that I owned for 6 years. Clothes usually we buy at Goodwill/Savers places (recycled stuff). Shoes I buy one pair every year or so for $50, my wife buys a couple pairs, but they are these cheap $7 shoes she gets from Target/Walmart.

Haircut, my wife does mine+kids, her sister does hers.
Washing machine is currently 14 years old (dryer too).

So yes those things will have to be purchased... but as you can see from the examples you gave, we just don't buy those sorts of things very often. Misc generally seems to cover them. When it doesn't, I slide money from the Dining out to cover and we eat out a bit less, or we just go over budget. If something huge comes up (new roof at 5K) then we'll be over budget for that year. But thats the reason to plan for 40K in retirement, not 28K which is what we "normally" spend.

-d.
Man, this is what I call frugal...

$2600 for groceries for a family of four ? What is your secret?
__________________
Corporateburnout is offline   Reply With Quote
Re: The closer I get the less I save.
Old 04-22-2007, 02:13 PM   #36
Thinks s/he gets paid by the post
martyb's Avatar
 
Join Date: Nov 2006
Location: Bossier City
Posts: 2,182
Re: The closer I get the less I save.

My wife would slap me silly if I told her she could only spend fifty bucks a week on groceries! We easily double that amount and then some for a family of three! 2 of my 3 kids are out of the house, leaving just DW & me plus a 17 yr old boy. Ain't no way in hell $2600 a year would work for us...plus we eat out some too. On the other hand, ya'll are probably skinnier than we are!

__________________
“Change is the law of life. And those who look only to the past or present are certain to miss the future.”
-John F. Kennedy

“Hard work never killed anybody, but why take a chance?” - Edgar Bergen
martyb is online now   Reply With Quote
Re: The closer I get the less I save.
Old 04-23-2007, 10:26 AM   #37
Recycles dryer sheets
 
Join Date: Jun 2006
Posts: 133
Re: The closer I get the less I save.

I think my wife and I have a very simular budget...

My wife and I get an allowance. This money has to cover everything from clothing, to computers, to dinning.

I get $25 per week. My wife gets $60 per week. This week I spent $28 on clothing (I used some from last week). We find that $85 a week is enough that you can actually save up money week to week. When you hold the cash, you relize you could save more.

We spend $75/wk on groceries and necessities (toilet paper, oil for the car, bleach).

Once we started spending cash from envelopes we found tons of way to save a little extra each week. And we don't feel deprived.
__________________
rw86347 is offline   Reply With Quote
Re: The closer I get the less I save.
Old 04-23-2007, 01:54 PM   #38
Thinks s/he gets paid by the post
 
Join Date: Sep 2006
Posts: 1,322
Re: The closer I get the less I save.

Quote:
Originally Posted by rw86347
I think my wife and I have a very simular budget...

My wife and I get an allowance. This money has to cover everything from clothing, to computers, to dinning.

I get $25 per week. My wife gets $60 per week. This week I spent $28 on clothing (I used some from last week). We find that $85 a week is enough that you can actually save up money week to week. When you hold the cash, you relize you could save more.

We spend $75/wk on groceries and necessities (toilet paper, oil for the car, bleach).

Once we started spending cash from envelopes we found tons of way to save a little extra each week. And we don't feel deprived.
I guess we know who calls the shots in your household
__________________
Corporateburnout is offline   Reply With Quote
Re: The closer I get the less I save.
Old 04-23-2007, 03:49 PM   #39
Recycles dryer sheets
 
Join Date: Jun 2006
Posts: 133
Re: The closer I get the less I save.

Quote:
Originally Posted by Corporateburnout
I guess we know who calls the shots in your household


At first she didn't want to move to a pure cash system. I took less in order to lead by example. And truthfully, I expect her to pay of things when I am at work.
__________________
rw86347 is offline   Reply With Quote
Re: The closer I get the less I save.
Old 04-23-2007, 04:32 PM   #40
Thinks s/he gets paid by the post
Milton's Avatar
 
Join Date: Apr 2007
Posts: 2,079
Re: The closer I get the less I save.

Quote:
Originally Posted by SteveR
The last thing I want to do one my deathbed is think...."if only I had done...."
Generalizations are always subject to exceptions; but I suspect that most people on their deathbeds will not be concerned with regrets over not spending money ("if only I had gone on that drip to Bora Bora!"), or other material concerns ("I wish that I had treated myself to a new Jeep!").

Most regrets tend not to involve money at all. Dying tends to sharpen one's perspective, and many people find (sometimes too late) that human relations are the most important thing in their lives.

An argument can be made that if scrimping and saving allows someone to retire early, and they spend the extra time with family and friends, they will have enhanced the real value their lives far more than increased consumption could possibly achieve.

Quote:
Originally Posted by SteveR
Don't cut so deep into your life style that you neglect to live and enjoy life. We don't know when the grim reaper will call our name. No one is promised tomorrow.
I do agree with the above. As always, finding a balance is key.
__________________

__________________
"To know what you prefer, instead of humbly saying Amen to what the world tells you you ought to prefer, is to have kept your soul alive". Robert Louis Stevenson, An Inland Voyage (1878)
Milton 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


Similar Threads
Thread Thread Starter Forum Replies Last Post
Did you continue to save in retirement? JustCurious FIRE and Money 17 04-17-2007 09:18 AM
How much do you save??? MedicalDoc FIRE and Money 13 03-20-2006 01:40 PM
Another article on our inability to save REWahoo Other topics 49 03-10-2006 10:59 AM
Getting closer dm Hi, I am... 0 10-26-2004 08:43 AM
Buy House Now w/Low Down or Save Bigger Down? BigMoneyJim Young Dreamers 11 07-14-2004 05:23 PM

 

 
All times are GMT -6. The time now is 05:37 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.