What's your ER budget

[Rambler]

My current projections include a $6000 per year amortization schedule on the cars, and a $6000 per year amort schedule on the yet to be purchaed RV. These may change over time as I determine exactly how long I want to keep the cars. My current amort schedule assumes replacement at 6-7 years.

I also have a home maintenance fund built in, at $7200 per year, about half of which will be deferred/accrued for major maintenance items (half for current small to moderate issues).

R

 

[youbet]

While I understand adding another person doesn't double the expense for things like housing and food, it does double when you include a healthy dose of travel and other fun.

Our budget shows expenses are divided pretty evenly, so it would be accurate to say that for either of us, we'd need 50% of our combined budget. In our case, it does double expenses to have two instead of one.

Food, transportation, health care, personal expenses all clearly double with two. Housing, if you kept the same house, wouldn't double. But, in our case, neither of us would keep this place if alone. We'd sell and go to something more affordable for a single.

 

[ksr]

I budget about 20K per year, and have always come in under budget. This is for just me - although SO and I live together, we have separate finances. We do share some expenses, which helps with the costs.

 

[walkinwood]

We had budgeted about 15% more than our pre-ER spend. But, due to the downturn in 2008, we lined our budget to pre-ER spending for 09. We'll come in about 10% below that.

My experience says you need to plan, but be flexible too.

 

[kowski]

52k for 2 after taxes

 

[DangerMouse]

Wow, some of you guys just about live on the smell of an oily rag. I'm wondering how much you are all planning on leaving behind once you pop your clogs?

 

[nun]

This is all very interesting. I'm single and I thought that at $30k after taxes
I was being really frugal, but that seems to be about average. I'm looking at funding this through $15k a year I get in rent and returns from $500k investments. I should be ok, and when my $20k SS kicks in around 2024 things will be sweet.

I plan to leave the house and my capital when I "pop my clogs". I hope it will be over $1M

 

[DayDreaming]

I'm single, and expect to need about $36k after taxes

 

[aaronc879]

Wow, some of you guys just about live on the smell of an oily rag. I'm wondering how much you are all planning on leaving behind once you pop your clogs?

I'm single, no kids, therefore no plans to leave anything behind. My parents will likely inherite low 5 figures at most and the same for me from my parents. I don't plan to inherit anything from my parents since they're poor and since my mom may outlive me based on family history. Most people don't have the luxury of leaving or getting an inheritance of 6 or 7 figures.

 

[kat]

My budget depends too much on how often I am willing to go to the dentist.

Everything else is well under control, since my favorite activity is hiking with my dog.

 

[Kwirk]

~100k for 2 of us after taxes and health insurance. Lots of travel.

 

[youbet]

I'm single, and expect to need about $36k after taxes

Nicely put. Those are the two things readers need to know in order for the number to mean anything: for one or two people and pre or post tax.

 

[ksr]

I'm wondering how much you are all planning on leaving behind once you pop your clogs?

I've never heard this phrase before, and it just cracked me up!

I don't have any kids so I don't have any need to leave something behind when I "pop my clogs" - I just have a will in place so that SO will get the house and the investments if I go first. In fact, I imagine when I get older and further into retirement, I'll probably start to feel comfortable withdrawing a little more from the portfolio.

 

[harley]

Yes, i'm single. However, if I had a spouse, my expenses wouldn't double. They'd go up maybe $300/mo. not counting health ins.

Whooo! I hurt myself on that one. Hope I didn't rupture anything. heheheh

 

[youbet]

Whooo! I hurt myself on that one. Hope I didn't rupture anything. heheheh

You know I was gona say something but worried that DW might read it and beat me senseless (again).

 

[FIREd]

Whooo! I hurt myself on that one. Hope I didn't rupture anything. heheheh

I am glad I am not the only one who thought it was funny!

 

[check6]

$39,600 fixed costs, $54,000 actual for two...includes remodeling, travel, and two small homes with HOA's.

 

[bbbamI]

Ok...since others are chiming in... My budget this year for two adults is $40k. Methinks the amount will be a tad more by the time all is said and done...

If I find myself single at some point, I could do just fine on $30k.

 

[WB52]

We are not FIREd yet. But there are two of us plus two kids that will leave home over the next 5 years. Our current pre-tax expenses (not including mortgage, which I will pay off) are $55k plus $10k health care. We could sustain our current lifestyle with $65k (including expenses for kids). I am planning on FIRE when we can support $80k/year (at 4% SWR). Should leave us at least a 25% buffer between SWR and current expenses.

 

[teejayevans]

Nicely put. Those are the two things readers need to know in order for the number to mean anything: for one or two people and pre or post tax.

And whether your budget includes 1-time expenses, like new roof, new car, etc, etc that people tend not to put in their budgets. I take budgets and investment returns posted with a grain a salt.
TJ

 

[scrabbler1]

I can't speak for everyone else who has responded, but for me, my income taxes (federal and state combined) are very low, only about 5% of total ER income. Therefore, they have very little impact on my budget and its overall numbers would be nearly the same if I provided before-tax or after-tax data.

 

[bbbamI]

I take budgets and investment returns posted with a grain a salt.
TJ

Me too...however, sometimes I'll add a twist of lime and Don Julio 1942.

 

[Independent]

I'm fast approaching the mortgage pay off milestone and seriously thinking about ER. After the mortgage is gone and I don't have to save for retirement my budget is $30k per year after tax.

$7k on home insurance and real estate taxes
$5k on health insurance.
$18k is what I currently live off

Just wondering if anyone spends less.

I'd guess that half the Americans over age 65 spend less. The gov't does a survey of this. It shows about 56% of the households have incomes below $30k per year. Their spending averages a little more than their incomes, but I think that if you look at the various groupings, $30k of spending is pretty close to the median.

But that's for households, some of which have more than one person.
ftp://ftp.bls.gov/pub/special.requests/ce/CrossTabs/y0708/AGEbyINC/x65orup.TXT

If you look at one-person households in the 55-64 range, the mean spending is about $34k, and that includes $2,366 of mortgage interest and $3,052 of "pensions and Social Security". ftp://ftp.bls.gov/pub/special.requests/ce/CrossTabs/y0708/sizbyage/aone.TXT

We're a couple, and we spend less than $36k on non-medical, non-REtax.

 

[walkinwood]

And whether your budget includes 1-time expenses, like new roof, new car, etc, etc that people tend not to put in their budgets. I take budgets and investment returns posted with a grain a salt.
TJ

I think there are other factors too - like your location and your working income, whether you have health-care from a former employer etc.

A frugal family earning $50k/yr may have a different view of the word from a family earning $200K/yr.

Maybe the percentage of your ER budget as a percentage of your pre-ER spend is more useful for a large, diverse group. As always, the devil is in the details.

 

[unclemick]

I am glad I am not the only one who thought it was funny!

I only lived with women with their own 401k's!

heh heh heh - all others were just friends. I had a college room mate in ancient times(1960's) who always checked his girlfriend's teeth in case he fell in love and got married he didn't want a lot of dental bills I guess. I believe he retired(math teacher) single.