What are you spending on?

[traineeinvestor]

Travel is high on the list - this year we did a 3.5 week holiday taking the children to London, Paris, Toronto, Niagara Falls and New York (mostly paid for with DW's redundancy package). Going forward, I see more trips to New Zealand once our oldest daughter starts boarding school.

University fees are also something of a luxury, given that I am researching something of no practical value and am not intending to take on a job again at any stage unless for recreation.

School fees for our daughter - sending them to boarding school will up the cost of their education quite a lot.

Fortunately, DW goes back to full time employment in a couple of weeks.

 

[Danmar]

For us it's a little complicated to define "discretionary" expenses. Such things as travel, dining out, and gifts/donations are certainly discretionary and as a percentage of total after tax spend they would represent approximately 12% for travel, 7% for gifts/donations, and 4% for eating out. On an ongoing base case scenario. Obviously unusual items pop up. More often than not. As an example last year it was my daughter's wedding along with a sizeable house down payment gift. These items would have, in total, been almost a full years ordinary spend.

Our biggest expenses relate to our properties. 3 out of 4 could be considered discretionary but in the short term they are fixed and with no plans to downsize they remain part of our base committed spend level.

 

[flyingaway]

Since I retired (28 months now) I've purchased three "toys" - a Jeep ($36K), a diesel pickup ($36K), and a travel trailer ($12K). The travel trailer wasn't very expensive and isn't very fancy but since its purchase earlier this year I've logged almost 40 nights in it, saving over $5K in benchmark hotel costs after campsite fees. A boat is still on my toy list but I'm going to wait for that market to cool down as they can easily be half the current asking prices when the economy slows.

What kind of travel trailer did you purchased? Is it new? Can you post a picture?

 

[daylatedollarshort]

So here is my question - there seem to be quite a few people on here who expect to spend $100k + in retirement. Assuming we all have different "base" expenses (utilities, taxes, etc) lets ignore those for now. What I am interested in is understanding the discretionary expenses e.g.

- Cars and motorbikes
- Holidays
- Expensive hobbies
- Eating out

So for the spendthrifts out there - what's your money weakness?

We're trying to keep the $100K+ lifestyle but spend less these days. We usually eat out twice a week and go to events like plays, museums or music venues 2 - 3 times a week. But I use coupons, Groupons, seat filler subscriptions, winery passports, museum memberships, etc. to keep the costs low.

 

[kitesurfer2]

since this past jan 1, I bought a new Ford Transit--cash, a new motorcycle--cash, and a new Corvette, financed 20k at 1.5% interest as my cash is drawing 7%.

I have not touched my retirement savings.

I cook most meals. We normally eat out at the same places..$40 pizza meal...$40 mexican...only on aweekends.

As the wife is still employed, our travels have been limited to 9 days at a shot. I take a few trip on my motorcycle with out her. We both love to camp which makes our vacations pretty cheap.

 

[Looking4Ward]

What kind of travel trailer did you purchased? Is it new? Can you post a picture?

It was a new 2016 Coachmen Clipper 17FQ. It was pretty much the only one I found that could be towed by both the Jeep and the pickup with a walk-around queen bed, full bath with vanity, larger holding tanks, etc.

I think MSRP was $16,600. RV show price was $10,995. With sales tax, title, registration, etc. the total was $11,750.

Here's a link: Coachmen Clipper 17FQ

 

[RockyMtn]

since this past jan 1, I bought a new Ford Transit--cash, a new motorcycle--cash, and a new Corvette, financed 20k at 1.5% interest as my cash is drawing 7%.

Where in the world does your cash draw 7%? Want me some of that!

 

[Clone]

Buying new tires for the semi tractor, I used to scrimp and buy good used tires.

Getting ready to upgrade vehicles. Ours are approaching 120K miles, and I do not want to deal with the increase in maintenance. Plus the pickup needs a set of new tires.

We are considering buying some season tickets to the local university football and basketball games. That is a bit out of my comfort zone, because it is pure entertainment.

 

[CardsFan]

Where in the world does your cash draw 7%? Want me some of that!

+1

 

[aja8888]

+1

+2 (me too wants a piece of that action)

 

[haha]

I am on Medicare. I own my condominium outright. My expense categories in order of size are food at home, Medical (Medicare B, Medigap and Pt D premiums, plus small amount of cash for pharma); housing (condo fees, utilities and RE taxes). Next but quite a bit smaller is entertainment which includes eating out, bar tabs, movies, concerts, etc.

I am frugal in that I never ignore price. I would never try to see how much I could spend on truffles, fine wine, or anything else. Nevertheless, I like foods that are often expensive. Some, such as wild sea scallops, sashimi grade tuna or scallops or sea urchin or salmon eggs or wild Sockeye or Chinook salmon, sable fish or some other seafood will never be meaningfully less expensive than they are now. So I will buy it, because I love it. So my budget for food at home is very similar to what some others here and elsewhere post for a family of four.

Some of these are much cheaper when living right on the beach and harvested directly, but that is not my situation now.

Ha

 

[Teacher Terry]

In the almost 5 years since semi-retiring we had to buy 2 cars, did 60k in home improvements and have spent about 10k/year in travel. We spend about 500/month of eating out, movies, events, etc. However, now there is nothing left to do to the house and the cars will probably last 15 years or more since we don't drive as much as when working f.t. Travel will continue to be our biggest spend.

 

[audreyh1]

Travel, high quality groceries.

We also gift a significant chunk to family/charity, otherwise our after-tax spending would usually be below $100k.

No spendthrift here - we still underspend compared to our annual withdrawal from investments.

 

[FIREd]

#1 expense: housing; #2: healthcare; #3: food

As far as discretionary spending goes, the order varies from year to year. This year, travel was #1 (2 trips to Europe plus several road trips stateside); Next year, home improvement will be #1 as we will completely renovate our 40-year old house from top to bottom. We also provide financial assistance to family, as needed. No expensive hobbies anymore (only writing, sketching, walking/hiking, etc...), very little eating out (by choice), only one basic automobile for the two of us, etc...

 

[DrRoy]

Photography is my main hobby, and we have just upgraded my ultra-wide angle lens, and also the camera body and lens that my wife uses. We are going to list all the old stuff on Ebay this weekend.

 

[jcretire77]

Finishing a backyard landscaping project - $12K
When we retired we splurged on a Yamaha digital piano - $4K
Those were out of the ordinary extras, our monthly discretionary spends are on a country club for golf (both of us) and a tennis club for my DW.

 

[bclover]

Eating out is a big one for me. Love it. lol, right now me and a girlfriend are on a search to find the best Pizza in Philly.

Next year, I'll be doing a lot of traveling, in the country though. I want to see many of the state parks.

I'm a disney fanatic so I'll be hanging out at the mouseworld a few times a year. lol, my secret occupation is to become a train conductor.

And yes, for my 60th I may treat myself to a LV bag. Ive been drooling over one for about 4 years but haven't wrapped myself around the price.

 

[eleighj416]

Travel;

1. +2 international trips per year, both cursing and otherwise, including business class upgrades.

2. Camping in our Airstream Trailer.

Ed

 

[Bamaman]

We currently have a city house, a lake house, our daughter's house and have not sold our last house. And we have 2 autos, 1 truck, our daughter's car, a fifth wheel trailer and 24' boat to keep up.

Our biggest expenses are house insurance, car insurance boat/rv insurance and utilities. End of year extra expenses are ad valorem taxes on vehicles and property taxes. I also pay for BCBS individual insurance on our daughter who has an abnormal number of doctor visits for existing physical problems.

I'd be a dead duck if I owed anything on our assets.

 

[unclemick]

Poop. Er upgrading the 1951 Farmhouse bathroom and septic system. Upgrading the electricity and lighting in six outbuildings. Plus a strategic compost toilet or two in the outer outbuildings.

And of course the usual suspects - West Coast. Texas and Florida trips with possible side jaunts to New Orleans, Quebec City and Alaska still in the planning stage.

Paying to tune up, cleanup and otherwise ready six tractors, one bulldozer three pickups, two ATV's and misc. other farm stuff for an auction before spring planting. Corn and beans are harvesting right now.

heh heh heh - All praise to being a cheap spender early in ER (1993 on) and Mr Market. Now getting more frivolous.

 

[kitesurfer2]

Where in the world does your cash draw 7%? Want me some of that!

yea where did that %7 come from? should have been 5%

 

[Lsbcal]

Poop. Er upgrading the 1951 Farmhouse bathroom and septic system. Upgrading the electricity and lighting in six outbuildings. Plus a strategic compost toilet or two in the outer outbuildings.

And of course the usual suspects - West Coast. Texas and Florida trips with possible side jaunts to New Orleans, Quebec City and Alaska still in the planning stage.

Paying to tune up, cleanup and otherwise ready six tractors, one bulldozer three pickups, two ATV's and misc. other farm stuff for an auction before spring planting. Corn and beans are harvesting right now.

heh heh heh - All praise to being a cheap spender early in ER (1993 on) and Mr Market. Now getting more frivolous.

I'm impressed with the complexity you've lived with. I guess a farm is like a business. Just a house + 2 cars is enough complications for me.

 

[Scuba]

Will ER in early Nov so not sure what we will actually spend but budget is well over 100K. About 45% is discretionary with travel budget at $35K, eating out and entertainment at $15K plus sizable budgets for wine and gifts. Healthcare is a big category too although not optional.


Sent from my iPhone using Early Retirement Forum

 

[Bestwifeever]

DD told me a story about me not giving her a piece ol aluminum foil for some craft project when she was little and telling her it was too expensive. I'm sure it was generic, bought with a coupon, and on sale, too. Now we have more net income than before REing, and we can squander all the aluminum foil we want!

 

[2017ish]

DD told me a story about me not giving her a piece of aluminum foil for some craft project when she was little and telling her it was too expensive. I'm sure it was generic, bought with a coupon, and on sale, too. Now we have more net income than before REing, and we can squander all the aluminum foil we want!

But it is difficult to give up old habits. DW's mom still cleans off and smooths her aluminum (or aluminium for our GB friends!) for reuse. No financial need whatsoever to do so, but why waste?