Where does the money go?

[FIREd]

I'm not sure about "alcohol/tobacco/gambling". Alcohol is cheap if you drink it at home (unless you do it to the point where it affects your ability to work ) and if you drink it outside, that's covered. Tobacco is such an alien thing to me that I didn't think about it, but I know that for people who make below median incomes, 30 a day can be a big chunk of change (especially in Europe where $8 per pack of 20 is not uncommon). I'd probably include gambling under "hobbies".

You guys have it good in France! Alcohol is not so cheap here. If you drink two decent bottles of wine a week ($10-$20 per bottle with taxes!), which is certainly not excessive for 2 people, you could end up spending $1,000 to $2,000 a year on wine alone. That represents a sizable expense even for my above average $60K budget.

 

[Rustic23]

When we first got married, my older brother, said, 'Go easy on the entertaining, it can eat up your income in a hurry'. You could put that in hobbies, or with eating out. We only have folks over once a month or so, but it can add up. It too, like most of the list can be cut back.

 

[JBmadera]

not too big on #2, #4, #5 (when I would roll into the parking lot at the office in Palo Alto in my 8 year old honda folks would be saying WTH!!!!) but DW's #1 hobby in retirement (hers not mine... ) is still shopping, "it's not for me DH, it's for our home", but my dirty little secret is hobbies - I've got enough carbon/ti bikes in the garage to outfit an entire pro tour cycling team...yikes!

 

[Sarah in SC]

Next time I am in Charleston, you're buying..............

I'll even spring for the diesel so we can drink aboard the boat lounging around in Charleston harbor!

Considering we took the boat out exactly ONCE in December, for the boat parade (glad you enjoyed that evening vicariously Harley), I'm ready for some warm boating/drinking weather ASAP!

 

[W2R]

I have a simplified theory of where people spend their money. I reckon that, once you've put a roof over your head and paid for utilities, health insurance/deductibles if you're American, and orange juice to put in the fridge, there are five major categories of ways to burn the rest:

1. Clothes - serious fashion shopping, not $25 jeans
2. Eating out, drinking out, etc
3. Home stuff ("the one who dies with the most stuff wins")
4. Cars - replace every 2 years, 3 cars in the garage
5. Travel

I'd say for us 2 and 5 are the most important. We like throwing parties, visiting with friends, and generally value experiences over things.

For me, #2 is most important. Living in New Orleans, we do enjoy eating out frequently. I spend zero on alcohol and cigarettes.

Home stuff (#3) and average car expense over the life of the car (#4) are about equal and each is about half of what I spend eating out.

Travel (#5) and clothes (#1) are by far the smallest categories for me.

 

[Katsmeow]

Entertainment/hobbies and pets.


It is interesting that this probably reflects your own sense of priorities by carving out as separate categories two specific forms of entertainment -- dining out and travel -- while leaving in the dust all other forms of entertainment.

Item 5 really should be not travel (simply one form of entertainment) but something more like Entertainment/hobbies of which travel is simply one example. Or it should be 6 categories with one for entertainment/hobbies if one wants to, in effect, privilege travel as a separate category.

For example, for us technology would be our entertainment/hobby. This manifests in a lot of ways. For some people the occasional new computer (which costs a few hundred dollars) is part of the home category and technology related things is a small part of the budget.

DH and I like high end computers, enjoy playing World of Warcraft on the computer, and pay for a variety of things that is technology related.

 

[TromboneAl]

A lot of people spend money on high monthly expenses. That is, Cable TV with all the extras, NetFlix, Fancy cell phone service, (wasted) electricity, heating/cooling the house day and night, frequent housecleaner, etc.

Not saying those are all bad, but they can eat up a lot of dough.

 

[Meadbh]

7. Personal development. Would include everything from yoga to ayurvedic medicine, taking interesting courses, seminars and classes, e.g. golf lessons!

 

[PaddyMac]

None of the above.

We spend a lot on original art and computer equipment (iPads, cameras). We also have hobbies (that we hope will be "work" when we RE) so we buy a lot of art supplies (including a printing press), and jewelry-making supplies.

 

[caninelover]

BigNick, I think that is a great list. I would add 6. Technology and 7. Hobbies/activities
Personally I spend little to nothing on 1 and 4, a little on 2, 3 & my #6 above, but then a ton on 5 & my #7 above

 

[NW Landlady]

For us, only #5 applies as our biggest expense,
but would add # 8: WINE.....!

Being we live in an area known for its reds, we go through quite a stock pile of it and more in the $25-$60 bottle price range....
Our wine budget is sort of scary in fact....

 

[freebird5825]

1. Clothes - serious fashion shopping, not $25 jeans
2. Eating out, drinking out, etc
3. Home stuff ("the one who dies with the most stuff wins")
4. Cars - replace every 2 years, 3 cars in the garage
5. Travel

1. Clothes - always on sale, off season, very few expenditures
2. Eating out, drinking out, etc - special occasion only for eating out or using BOGO coupons or accumulating stamps for the nth free. Beverages at the Legion discount prices only.
3. Home stuff ("the one who dies with the most stuff wins") - none at all except for replacements.
4. Cars - I own 3 cars - 1 midlife crisis convertible (2005), 1 winter rat (1992), 1 Jeep (2002) for boat pulling and winter weather. I was going to sell the winter rat, but Mr B is keeping his older car's mileage at a standstill by using it.
5. Travel - as much as possible within reasonable cost.

 

[wishing4it]

I think that hobbies will be the biggest expenses in retirement. My DH is a drag racer and we can spend a small fortune on that alone... pls the travel to races, eating out during that time, etc. But, he's pretty good at it and sometimes it pays for itself. Another category for me is pets.... yikes, do you know how much it costs to get a dogs teeth cleaned these days! Ouch!

 

[GregLee]

A lot of people spend money on high monthly expenses.

We spend $100/month for satellite TV and $72/month on land line telephone+internet. Seems high to me.

 

[WhoDaresWins]

I'm not yet retired but my major discretionary expenditure is definitely entertainment. I buy a pair of tickets annually to both the symphony and a theater group (single seat for the opera). I will invite various friends to accompany me when I have two tickets as my guest. I figured the arts can use the money and as my LH and I had two good seats every year, I did not want to give them up. I keep a membership to a couple of museums, the conservatory, the church where I grew up (but rarely attend), and a historical preservation society. I attend a lot of fundraisers for things like the YWCA, the Humane Society, a cultural trust, the Red Cross, the cancer society, which involve purchasing an expensive ticket (will sometimes buy two and take a guest).
Oh, and I am not immune to clothes shopping (particularly shoes!) but try to hit the sales. My friends joke that my two extra bedrooms are nothing more than giant walk-in closets for the spillover from my bedroom. I am trying to temper this.
I am saving money in one area. I like the occasional glass of dry red wine and have discovered some pretty good box wines. I previously turned up my nose at this but sampled some at a friend's holiday party and have since purchased two boxes.

 

[Nova]

I am saving money in one area. I like the occasional glass of dry red wine and have discovered some pretty good box wines. I previously turned up my nose at this but sampled some at a friend's holiday party and have since purchased two boxes.

What box wine did you like?

 

[WhoDaresWins]

What box wine did you like?

I really enjoyed a Spanish red wine called "Seven". It was my first purchase and I will buy it again. I currently have Bota Box Old Vine Zinfandel (California 2009) as it was on sale for $3.00 off and it is very good also. They stay nice and fresh in the fridge for weeks. I will put some into the wine glass and let it stand for about 20 minutes to take the chill off.
My doctor says a glass of red wine is good for me (resveratrol you know)
I cook a lot with wine and it is nice to have a ready source to pour a little in a glass and use it to deglaze a pan.

 

[bruce1]

Where does the money go?

Marshmallows and beer.

I have a story about marshmallows and dark rum. When camping in the near north (Elliot Lake) a friend and I were cooking our liver bacon and onions over an open fire and one of us decided it was time for a rum and coke. Being young this led to several more. After a while we started roasting marshmallows. Then I set one on fire and extinguished the flame in a glass of rum and ate it still warm and steaming. (somehow there was no more coke) I thought this was good. My friend tried it. They liked it. We ate a large bag of marshmallows this way. There is a LOT of sugar in marshmallows. Soon there was no more rum and it was getting to be early morning. After awhile it was near noon the next day and I was in the tent. After I crawled out I found my friend was under the picnic table. I always say I got my first hangover from marshmallows.

Expenditures Pets, eating out, entertainment, charities, property maintenance and some toys.

 

[Midpack]

2010 in descending order...

 

[Moemg]

My money goes to a woman named JJill in return she sends me the perfect clothes .

 

[Orchidflower]

We spend $100/month for satellite TV and $72/month on land line telephone+internet. Seems high to me.

Phone, cable and internet in Phoenix is running me something like $172 or a little more I think. I hate the expense, but feel I really can't cut anything out as I need a phone in case of emergency (I don't trust a cell that much), love cable and need the internet. Kinda like a forced choice for me. I just grit my teeth and pay the darn thing.

 

[Danmar]

We spend big time on all these items. Travel, cars, and art probably the biggest discretionary items. Spend all my dividends and pension. Retired over 4 years. Vacation properties about the only thing I could think of where we might want to spend more.

 

[Midpack]

What box wine did you like?

We've tried several, Bota Box is the best we've found so far. We rarely drink whites, so I can only speak for the reds. FWIW...

 

[Midpack]

We spend $100/month for satellite TV and $72/month on land line telephone+internet. Seems high to me.

All these costs irk me somewhat (just old fashioned I guess), and we haven't found a package deal we liked. We pay

• $53/mo for HD DishTV (down from $79/mo until 2 yr contract ended),
• $50/mo Comcast hi-speed/cable internet, and
• $48/mo AT&T cell phone (no land line).

And I hope to reduce internet expense by going with dry loop DSL one of these days. FWIW...

 

[W2R]

I'm paying $25 for landline phone, and $63 for cable TV and cable internet. The total is low right now ($88), but I am only getting bare bones basic cable TV. That's about 60 channels and has been fine for the past decade.

I am thinking of cancelling my landline phone if I decide to get a Verizon iPhone. Instead of $25 for the phone, I'd be spending $30 for a data plan. That's almost a wash.

Also, with my new 58" superduper 3-D HDTV, I suppose I really should break down and pay for something more than basic cable.

So, it looks like I will be spending more in the future.