Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Re: What is the most common ER budget?
Old 12-15-2004, 11:36 AM   #21
 
Posts: n/a
Re: What is the most common ER budget?

Yep!
__________________
  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: What is the most common ER budget?
Old 12-15-2004, 12:12 PM   #22
Thinks s/he gets paid by the post
 
Join Date: Jun 2004
Location: No. California
Posts: 1,600
Re: What is the most common ER budget?

I agree too Mikey.

When my 2 kids move out, my budget will drop about 1/2 person since many of the expenses are 'house' related and won't drop 50%.

My annual budget is around 26,000 for the 3 of us so should drop somewhat. I'm working on eliminating the extras that I can now, so I have a better idea of how low I can go. I'm saving 45% of my take home right now. Stashing cash and investing....
__________________

__________________
KB is online now   Reply With Quote
Re: What is the most common ER budget?
Old 12-15-2004, 12:14 PM   #23
Recycles dryer sheets
 
Join Date: Jan 2004
Posts: 159
Re: What is the most common ER budget?

I think we'll fall into the modest range, but it is going to be hard to tell for a while.

Right now I assume that our retirement spending will equal our current spending, for which I use our last six months actual expenses in Quicken times 2. However, with three young kids at home now and not when we retire (at 55 it looks like), our budget could be dramatically lower.

Taxes -- Right now I pay income taxes, SS taxes, medicare taxes, and state income taxes on a large income. In retirement SS and medicare taxes would disappear and income taxes would be based on a lower "annual withdrawal" amount.

Interest -- Right now I pay mortgage interest on a home that houses my family of five (plus two dogs, three cats, and three rats...). When my I've paid off the mortgage, I won't have interest expense at all.

Charity -- Right now we tithe 10% on my gross income. My tentative plan is to tithe on my "annual withdrawal" amount in retirement, which will be perhaps 33-40% of my current amount.

Groceries -- When my kids are grown I expect them to feed themselves. Reduce to 40%?

Clothing -- When my kids are grown I expect them to clothe themselves. Reduce to 40%?

Education -- Right now I pay for private school for my kids. When I retire I plan to have their college accounts funded separately and won't have to pay private school tuition anymore.

Smaller house -- A smaller house means smaller property taxes, smaller utility bills, and lower operating costs.

malakito
__________________
malakito is offline   Reply With Quote
Re: What is the most common ER budget?
Old 12-15-2004, 01:13 PM   #24
Recycles dryer sheets
 
Join Date: Aug 2004
Posts: 218
Re: What is the most common ER budget?

Quote:

Beachbumz: Off topic a bit. (ER's don't follow instructions very well).
Noticed you are retired at age 37 with annual budget of $60,0000. *(One of my daughters is age 37, and probably couldn't last 6 mos. without a paycheck) *
How you did it would probably be interesting.

Jarhead
Jarhead, I'll give you the short answer since here since it is a bit off topic:

My wife and I both worked and we chose not to have children, a non-financial decision that did help financially. We did pretty much max retirement accounts the last 10 years or so (although that is only about 170K of our net worth). We were not big 'savers' otherwise.

I started my own {small} CPA practice at age 25, which allowed me to keep taxes down and have some writeoffs. We purchased an Oceanfront duplex that we couldn't afford at age 29, sold the "big house" and downsized when tax law changed in '97, bought OF condo; purchased 2 more OF properties the next 2 years. I sold the CPA practice in 2/03 and the OF properties over the last 20 months (and purchased 1 in FL that we now live in).

Our net worth in 1992 <50K (only that because my WIFE built her own house), net worth today >1.5m

OK, so not so short! :P
__________________
Life is good.
Beachbumz is offline   Reply With Quote
Re: What is the most common ER budget?
Old 12-15-2004, 05:28 PM   #25
Recycles dryer sheets
 
Join Date: Jul 2004
Posts: 94
Re: What is the most common ER budget?

Rock,

We are mid thirties with a 10 month old child, a second is planned / hoped for.
Both currently working (although my wife decided to downsize her job after 1st child).
Current budget for our own living expenses is the equivalent of around US$72k pa. Assuming ''Offspring 2'' comes along, that will rise to around US$80k pa (all in current dollars) for the duration of the kid(s) education. This is the budget we are working on as far as our own retirement planning is concerned.

Simon
__________________
50% Down in NW and Can't Stop Smiling!!
SDY888 is offline   Reply With Quote
Re: What is the most common ER budget?
Old 12-15-2004, 06:56 PM   #26
Thinks s/he gets paid by the post
 
Join Date: Mar 2004
Posts: 1,318
Re: What is the most common ER budget?

We all know I have a spending problem. Lets just say we are living the double-loaded lifestyle.
High -expense NY City suburb. 2 kids. Public school. Health insurance (HMO) around 1k per month.

Lots of people here in our town and region are ER, with annual spending in the 200k per year range for a family. (Private school would add on an extra 25k per year per kid to that figure).

Thus the popularity of being early semi-retired around here.

ESRBob
__________________
ER for 10 years; living off 4.3% of savings (and a few book royalties ;-)
ESRBob is offline   Reply With Quote
Re: What is the most common ER budget?
Old 12-15-2004, 07:24 PM   #27
Recycles dryer sheets
 
Join Date: Oct 2004
Posts: 214
Re: What is the most common ER budget?

Hmm, looks like we really need four ER categories:

Frugal, Modest, Loaded, and Stinkin' Loaded.

Well done, ESR. Anything beyond that, well it just ain't natural *

Keep those ER budgets coming folks!




__________________
RockMiner is offline   Reply With Quote
Re: What is the most common ER budget?
Old 12-15-2004, 09:07 PM   #28
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,385
Re: What is the most common ER budget?

With only 2 weeks left in 2004, I can pretty accurately project my spending.

I am alone, I own my house, and these figures do not include income tax. They do include health insurance.

$25,500 cash expenses
$2700 auto maintenance and replacement sinking fund
$28,200 total budget

I don't use a sinking fund for appliances. I replaced one this year and $550 is included in cash expense. Appliances last pretty long. I only have 6, so the $550 that I spent this year should be a slight overstatement of usual annual costs.

This amount is about $5000 less than I used to spend. I have paid a lot more attention to getting control of costs since I started hanging around this board!

I feel good about this, as my SWR is comfortingly low.

mikey
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Re: What is the most common ER budget?
Old 12-16-2004, 05:29 AM   #29
 
Posts: n/a
Re: What is the most common ER budget?

I think, we spent around 65K this year. A few unplanned expenses. However this does not include medical ins. cost or income taxes.
__________________
  Reply With Quote
Re: What is the most common ER budget?
Old 12-16-2004, 06:00 AM   #30
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: What is the most common ER budget?

Quote:
I think, we spent around 65K this year. A few unplanned expenses. However this does not include medical ins. cost or income taxes.
Cut, how much time do you spend outside of Minnesota in the winter? You talk about going to the Bahamas each year and I know you have lots of fishing trips. If you don't mind, can you share about how much you spend on travel a year?

__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: What is the most common ER budget?
Old 12-16-2004, 07:00 AM   #31
Recycles dryer sheets
JonnyM's Avatar
 
Join Date: Mar 2004
Location: Modesto
Posts: 334
Send a message via AIM to JonnyM Send a message via Yahoo to JonnyM
Re: What is the most common ER budget?

DW is ER now age 49 at Frugal-Modest. I'm going out in 2006 at Age 51 at Frugal-Modest. Two Frugal Modests equals one Modest-Loaded at 60k with Medical NOT coming out of that, fully paid as a separate benefit.

In stark contrast to my our budget peers the Beachbumz's we plodded along for 13 extra years in quiet public service jobs. We discovered late in the game that the inflation indexed pension plan we were both contributing towards at a rate of about 8 percent of salary (and this includes the years we made diddley up to the recent gravy years near the end of career) generated a "virtual" net worth of 1.5 million based on the infamous 4 percent rule. Downside? I started in 1983, so it took 23 years to accumulate. I'm content.

Should keep me in guitars.
__________________
It's about the music
JonnyM is offline   Reply With Quote
Re: What is the most common ER budget?
Old 12-16-2004, 02:45 PM   #32
 
Posts: n/a
Re: What is the most common ER budget?

Hello Cut Throat! In spite of your liberal leanings, I think
your head is screwed on straight vis-a-vis ER
activities. I.E. , enjoy yourself now while being as sure
as you can that the money will not run out. Makes total
sense to me. Nice to find a liberal with some common sense.

JG
__________________
  Reply With Quote
Re: What is the most common ER budget?
Old 12-18-2004, 06:02 PM   #33
Full time employment: Posting here.
 
Join Date: Feb 2004
Location: Okanagan Valley
Posts: 805
Re: What is the most common ER budget?

Okay, I'll bite on an estimate of annual expenses for 2 empty nesters of which one stays at home and one still works 50 hrs a week. Data taken straight from Quicken for 11.5 months of activity. Does not include property taxes, health premiums, or federal income taxes, FICA, etc.

I do not know how to use any of the codes, so this might be a mess.

Charity $1500
Credit Card $23000*
Memberships $460
Monetary Gifts $700
Home Maintenance $1580
Home and Auto Insurance $1500
ATM Withdrawal $12400**
Telephone (land line) $600
Cable and Broadband $1080
Electricity $1580
Gas $615
Water and Sewer $375

Appliance Renewal Accrual $300
(6 appliances $3600 for 12 years)

Auto Renewal Accrual $5000
(2 vehicles $60000 for 12 years)

Grand Total $50690

*Credit Card covers gas, auto repairs, entertainment, dining out (3-4 times a week). medical and dental co-pays, 2 vacations a year, clothing, etc

** ATM covers mostly grocery, drug store, lunch money and miscellaneous normally under $10
__________________
AltaRed is offline   Reply With Quote
Re: What is the most common ER budget?
Old 12-18-2004, 06:47 PM   #34
 
Posts: n/a
Re: What is the most common ER budget?

We are 2 empty nesters with one at home and one
still working 32 hours a week. Couldn't help but notice that Altared's "credit card" category alone is not too far off from what we live on per year, and that includes everything.

JG
__________________
  Reply With Quote
Re: What is the most common ER budget?
Old 12-18-2004, 09:24 PM   #35
Thinks s/he gets paid by the post
 
Join Date: Mar 2004
Posts: 2,083
Re: What is the most common ER budget?

Hi,

Althought I haven't ER'd yet, my current expenses are pretty low as I am single and rather frugal.
My expenses are as follows,

Food (shopping and eating out) ...... $ 2,500
Personal Utilites ......................... $ 1,252
House expenses ......................... $ 8,942
Transportation expenses .............. $ 1,000
Medical expenses ....................... $ 3,752
Personal expenses ...................... $ 4,200
Total ....................................... $ 21,646

When I ER next year, my expenses will increase by about $25K for projected health insurance, travel and increased personal expenses. If I have to, in a pinch, I can easily reduce my projected expenses by $25k.

MJ
__________________
I look to the present moment because that's where I live my life.
MJ is offline   Reply With Quote
Re: What is the most common ER budget?
Old 12-19-2004, 06:43 AM   #36
 
Posts: n/a
Re: What is the most common ER budget?

Since we do not really budget, I do not have funds
(real or on paper) building to replace major item(appliances, cars, etc). I rely purely on creativity
when the need arises. How can that be you say?
Well, our vehicles won't last forever, but I can see
the end of my biker career coming up. So, I can sell
the bike and the older car and buy a newer used vehicle
with no extra out of pocket. Or, let's say a TV goes out
I still have 6, who needs 6 TVs? All
major appliances (except the computer) were bought used for cheap. If they die, I'll just go out to a second hand store or auction. We hardly ever buy anything new in clothing, appliances, vehicles, boats,
furniture, etc etc. In fact, quite a lot of this stuff
was basically free. (Oops, I forgot my recliner. Bought that new. Momentary lapse )

JG
__________________
  Reply With Quote
Re: What is the most common ER budget?
Old 12-19-2004, 11:26 AM   #37
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,107
Re: What is the most common ER budget?

Quote:
*We hardly ever buy anything new in clothing, ... etc etc. *In fact, quite a lot of this stuff was basically free. *(Oops, I forgot my recliner. *Bought that new. *Momentary lapse * *)

JG
JG, while I admire your frugality, the thought of wearing "pre-owned" underwear doesn't quite measure up to my standards. :-/

REW
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Re: What is the most common ER budget?
Old 12-19-2004, 01:11 PM   #38
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,385
Re: What is the most common ER budget?

Quote:
JG, while I admire your frugality, the thought of wearing "pre-owned" underwear doesn't quite measure up to my standards. :-/ REW
Amen, brother Wana!

If there is one thing in today's world that is close to free, it is clothing. Brand new cootie-free clothing from Walmart or Target. Maybe not fashion, or Italian silk ties, but then I don't think that is what Ol' John is talking about.

My mother used to take me to buy a new sweater in 1950- $20. I buy a new sweater today- $20. But boy those are different dollars.

Mikey
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Re: What is the most common ER budget?
Old 12-19-2004, 01:54 PM   #39
 
Posts: n/a
Re: What is the most common ER budget?

Hey folks............I draw the line at buying anything which has
touched others privates. I'm cheap, but not that cheap.
Anyway, let me give an example of how this works.
I needed a casual winter jacket. Found a military
issue U.S. Army jacket in excellent condition at the local
resale shop. Because my wife is a regular there, they
gave it to her for $8.50. Warm , fits great, I love it.
Before my wife got me completely converted, I bought
my last casual jacket in an upscale leather goods store.
Around $250-$275 as I recall. I like my army surplus
jacket just as much. There is a message there.

JG
__________________
  Reply With Quote
Re: What is the most common ER budget?
Old 12-19-2004, 02:28 PM   #40
Full time employment: Posting here.
 
Join Date: Apr 2004
Posts: 802
Re: What is the most common ER budget?

Hey AltaRed, come home to the Alberta beef.

Mrs. Zipper and I just settled into a Prime Rib Premium Oven Roast (C$4.99 lb.). with PEI potatoes, Holland Marsh onions, and carrots.

Mrs. Zipper joked, "this is what the rich people eat"!

As long as the ranchers down your way have the politicians in their pockets, we have way too much beef up here.

Unfortunately, you probably know some AB ranchers.........and they're not happy.
__________________

__________________
Zipper 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
Living on a budget and the MISCELLANEOUS COLUMN modhatter Life after FIRE 11 04-11-2007 07:29 PM
Optimism for Planning Your Personal Budget wog777 FIRE and Money 0 01-23-2007 01:41 PM
2007 Budget dex FIRE and Money 3 12-15-2006 07:58 PM
I'm all stuffed up! Martha Other topics 72 10-09-2006 05:10 PM
Insurance as a % of Retirement Budget REWahoo FIRE and Money 14 08-04-2005 10:46 PM

 

 
All times are GMT -6. The time now is 04:48 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.