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.