2013 expenses

[Mulligan]

I don't think Mulligan was describing a "savings fetish", just choosing to spend based on the value of products to him. That certainly resonates with me. If some savings result, that's great. Otherwise, provided that spending stays within the budget, no big worries. One example of value spending has been cutting cable. I did it after I realized that I had not turned on my TV for over 6 months, and I do not miss it at all. Instead, I spent that money on travel. If I can save a little in ER, I intend to sock it away in my TFSA, where I can access it for discretionary use without paying further taxes. It's reassuring for those of us who are not in your financial league to have a little cushion like that. dde04

Yes Mead, you summed it up pretty well. And my situation is a little different. Even though I am retired, I am heavily dependent on a one source pension income. Knowing that if I have some available cash on my own if my pension ever got cut is also reassuring to me.

 

[steelyman]

I wish I had Meadbh's self-control. I'll just leave it on all day!

 

[NW-Bound]

Or simply have a larger portfolio to begin with ...

... which also requires working a few more years.

 

[sengsational]

This doesn't include income tax and doesn't include expenditures for the two kids in college (the kids category is stuff DW buys for them, mostly cloths...my girls buy a LOT of cloths). The medical is my part of paycheck insurance premiums. DW and DH are a catch-all by person (clothes, dining out, cell phone, donations, etc). The travel is really low since we did inexpensive travel this year (have a lot of family in Florida). Housing includes mortgage, utilities and taxes.

This exercise, which also included 4 previous years, was to get a feel for how our burn rate varied (not much except for when we did overseas travel). This gives me a good base to project forward, knowing there will be some categories that just need to be recalculated without the benefit of historical data.

 

[FANOFJESUS]

Shawn and Major Tom both do great for the Bay area. I am not from there but I know it is crazy expensive. My hat is off to both of you guys.

 

[JacqJolie]

Mortgages 26.48 % $10,466.80

Groceries 17.47 % $6,904.96

never seen this so high - only explanation is that we had a Costco membership this year & I'm not splitting transactions accurately (also am no longer in frugal mode and do a food bank donation on almost every shopping trip)
Hobbies 12.97 % $5,129.10

didn't want to travel far this year so spent the $ at home
Utilities 9.46 % $3,740.13

Automotive Exp... 5.73 % $2,263.64

Insurance 3.70 % $1,461.50

Cable/Satellit... 3.08 % $1,218.44 - dropped (unwatched) cable mid year

Entertainment 2.78 % $1,097.61

General Mercha... 2.74 % $1,083.71

Telephone Serv... 2.10 % $830.94

Child/Dependen... 2.05 % $808.71

Other Categories 11.45 % $4,525.74
Total 100.00 % $39,531.28 Goal was spend of ~ $40k

Total income tax paid was just under $38,000 for ~ 1/2 year of contract work.

 

[scrabbler1]

Here is a quick breakdown of my 2013 expenses:

Co-op Maintenance Charges (mostly property taxes, also co-op mortgage interest, parking, heating oil, gas for cooking, and everything else which is part of the general upkeep of our large co-op): $6,146

Income Taxes (some for 2012, some 2013 Estimated): $3,120

Medical and Health expenses including dental: $2,399

Utilities (Cable, phone, Internet, electric): $2,233

Auto and Home Insurance: $1,567

Other Car Expenses: $613

In July, I began using a new, cashback credit card for most of my food purchases (along with other purchases) instead of using cash.

Remaining expenses (cash, credit card, check, mostly for food): $3,591

Total: $19,669

 

[Shawn]

Hi Shawn, Just curious - is this years veterinary bills for the same cat that you posted about last year ?

Yes. The veterinary bills in 2012 ($15K) and in 2013 ($20K) were for the same cat (the $23K bills listed for 2004/2005 were for a different cat). The costs may seem high, but it is interesting to note that the diagnostic and treatment options for pets can be very similar to those for people. In addition, there are a wide variety of veterinary specialists that can provide treatment, as appropriate.

The costs this past year can be approximately broken down as $9K at the veterinary clinic itself, $2K prescribed medications administered at home, $6K for daily visits by the pet nanny (look in on cat while I was at work, encourage her to eat, administer medications and subcutaneous fluids, etc), and $3K miscellaneous.

Unfortunately, my cat passed away in early November at age 17 1/2. She was quite active up until early October (e.g., climbing 6 foot fence) and mostly active up until late October (e.g., going outside on her own). So while I miss her a lot, I have no regrets or second thoughts about the costs or treatment.

 

[norcaldreamer]

We have not yet FIREd. Our 2013 expenses for two people came out to just under $120K. This includes mortgage and rent (~$30K), travel (~$30K), eating out (~$15K) and gifts/charity ($8K), but does not include income taxes.

Income-wise, this was a great year for us, but there was definitely lifestyle inflation. Last year, we spent $113K, which included $16K of loan payoffs.

 

[supernova72]

Yep, and we buy NO junk food, very little processed and hardly any soda. Lots of fruit and veg, salmon. Hubby can still run a 20 minute 5k at 60, me not so much. He has been doing all the shopping as I was still working, and he buys whatever..and never looks at sales or prices. Wine is our big expense, hate to admit it, but the two of us go thru 5-7 bottles a week, so that's around $100 a week, yikes, but it keeps us happy!

"20 minute 5K at 60" Wow! Hubby must also bring home lots of medals for winning his age group.

 

[W2R]

Unfortunately, my cat passed away in early November at age 17 1/2. She was quite active up until early October (e.g., climbing 6 foot fence) and mostly active up until late October (e.g., going outside on her own). So while I miss her a lot, I have no regrets or second thoughts about the costs or treatment.

Shawn, I am so sorry to hear about your cat. Losing a pet can be so hard. She lived to a very old age, and you were good to her and made sure she had good care to minimize any suffering if she even suffered at all. She was lucky to be your cat.

 

[Calico]

Yes. The veterinary bills in 2012 ($15K) and in 2013 ($20K) were for the same cat (the $23K bills listed for 2004/2005 were for a different cat). The costs may seem high, but it is interesting to note that the diagnostic and treatment options for pets can be very similar to those for people. In addition, there are a wide variety of veterinary specialists that can provide treatment, as appropriate.

The costs this past year can be approximately broken down as $9K at the veterinary clinic itself, $2K prescribed medications administered at home, $6K for daily visits by the pet nanny (look in on cat while I was at work, encourage her to eat, administer medications and subcutaneous fluids, etc), and $3K miscellaneous.

Unfortunately, my cat passed away in early November at age 17 1/2. She was quite active up until early October (e.g., climbing 6 foot fence) and mostly active up until late October (e.g., going outside on her own). So while I miss her a lot, I have no regrets or second thoughts about the costs or treatment.

Shawn, I am sorry to hear about your cat. She could not have had a better, more devoted human companion than you. What a wonderful life you gave her.

 

[daylatedollarshort]

Unfortunately, my cat passed away in early November at age 17 1/2. She was quite active up until early October (e.g., climbing 6 foot fence) and mostly active up until late October (e.g., going outside on her own). So while I miss her a lot, I have no regrets or second thoughts about the costs or treatment.

So sorry to hear about your cat. Our pets have always been family members and we pay for the best care for them, too.

 

[Katsmeow]

Unfortunately, my cat passed away in early November at age 17 1/2. She was quite active up until early October (e.g., climbing 6 foot fence) and mostly active up until late October (e.g., going outside on her own). So while I miss her a lot, I have no regrets or second thoughts about the costs or treatment.

You were a great pet owner and I'm sorry to hear about your cat. 17 1/2 is a very long life and she was lucky to have you.

 

[ItDontMeanAThing]

Expenses were 35% higher than last year. Travel was way up this year because the EU and Japan were more expensive that SE Asia destinations from past years. Electronics was up because I replaced a camera and smartphone.


Travel 8,918
Rent 3,582
Medical 2,969
Restaurants 2,376
Electronics 1,766
Motorbike 1,435
Misc. 1,416
Grocery & street food 1,202
Entertainment 639
Mail forwarding 397
Transport – In Country 368
Electricity 327
Laundry 209
Cell phone 157
Visa 109
Household 69
Transport - In Town 68

SUM 26,008

 

[freebird5825]

Starting to think those people who spend $20K or less have NO bad habits. Where's the drinking? Junk food? Where are the "wary of going to Hell" lifestyles

 

[dunkelblau]

Starting to think those people who spend $20K or less have NO bad habits. Where's the drinking? Junk food? Where are the "wary of going to Hell" lifestyles

OK I'll own up to something-- not drinking or junk food, but I'm addicted to speculating on pink sheet penny stocks. That's a fancy term for gambling according to relatives who know my secret. I may not be able to keep up with you indexers but as long as my return is positive I'm not counting this as an expense. Plus I hear that mental exercise can reduce risk for dementia-related problems so the opportunity cost is paid back in health benefits.

 

[Live And Learn]

Unfortunately, my cat passed away in early November at age 17 1/2. She was quite active up until early October (e.g., climbing 6 foot fence) and mostly active up until late October (e.g., going outside on her own). So while I miss her a lot, I have no regrets or second thoughts about the costs or treatment.

I am so sorry for your loss. You gave her two years that many other people would not have, filled with care and love.

 

[golfnut]

Our expenses came out to $64,678. This included RE taxes of $9,600 and healthcare premiums of $11,400. Still trying to convince my DW that we should move out of Chicago burbs to lower our RE taxes and still trying to lower healthcare expenses by getting on the ACA exchanges.

Above is for our family of three.

 

[Dreamer]

Shawn, I am also so very sorry for your loss. I agree with the others that she was a very lucky cat to have such a devoted owner.

 

[Major Tom]

Shawn - my condolences on the passing of your kitty. What a conscientious and devoted cat Dad you have been! 17 1/2 is a good age and from your description, it sounds as if she had a good quality of life until very close to the end - an indication to me that the money spent on her healthcare was money well spent.

rec7 - thanks for the props. As others have said, the main difference in cost of living between some of the major cities and the lower cost of living areas is usually housing. The 2 pricey areas I have lived in are Los Angeles and the SF Bay Area and for these kinds of areas, anyone who has owned their house for a good number of years and bought at the right time probably has a manageable mortgage. Long-time renters who stay in the same apartment usually do OK too, due to rent control laws. Once housing costs are taken care of we, just like anyone living anywhere, have a good deal of control over what else we spend our money on (or don't, as the case may be!)

 

[dvalley]

I spent $80k in 2013. The usual monthly expenses are around $5000:

$2300 mortgage, prop taxes and utilities.
$750 transportation (gas, ins, AAA etc)
$700 food/groceries
$200 pets
$780 child support and school tuition
$300 misc stuff

Planning to stick to $65-70k for 2014

 

[GoodLife]

From the suburbs of a large midwest US city (living with another adult).

2013 yearly expenses (for 1 person):

Food: $3110 (259/month), including $2562 in / $548 out (This year switched to organic foods somewhat - around $1500 of $2562 are for organics from Whole Foods.)

All housing related: $4335 (361/month), including:
- property taxes: 4440
- hired services: lawn mowing, snow removal: 450
- other hired services: 350
- house insurance: 550
- utilities:
--- primary phone and internet - $0 (paid by employer ~100/month)
--- second / backup phone: 90
--- TV cable: 590
--- water/sewer: 560
--- electricity: 560
--- gas: 1040
- Home Depot purchases: 40
Total is 8670 for two people (or 4335/person)

All car related: $1252 (or 104/month), including
- car insurance: 310
- gas: 355 (working from home)
- maintenance / registration fees: 587

Entertainment + trips: $1662
Gifts: $397
Medical: $308
All other: $272 (clothes, haircuts, misc other).

2013 total: $11,336 / year

(No one-time expenses this year)

Does NOT include depreciation for car, house, furniture, etc.

 

[Mulligan]

Good life, you are motivating me to see if I can do a lot better on my home insurance. If your house has 250% more property taxes than mine, yet I'm paying 65% more in home insurance, surely I can do better than what I am currently paying.


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[daylatedollarshort]

GoodLife I printed your budget to compare to mine to see where we could cut back. Thanks for the post.