2017 Spending Summary and Analysis

[Golden sunsets]

Interesting to see the very wide range of spending. The real big spenders are smart enough not to post actual figures I suspect.

+1


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[Corporateburnout]

Spending was up 15% in 2017 mainly due to additional travel and entertainment. 2018 spending is planned at the same level.

 

[ivinsfan]

We spent $90k. That's up a bit from last year but still not bad for a family of 4.

The big categories are:

Groceries: $12,500. (remember, we have 2 teenage boys and eat at home mostly)

Insurance: $12,000 broken down as follows
- Health for me and the boys: $6,034
- Medicare B, D, and F+ for DH: $2400
- Auto 2 cars: $1430
- homeowners $830
- Rental policy (we have a granny flat): $500
- Umbrella $500

Medical coinsurance, dental, prescriptions: $10,800 (They decided I needed an endo and colonoscopy... nothing found but lots of $$$, and $4400 was money from last years high deductible as part of my son's surgery, but billed this year)

Education (ap exams, piano lessons, SAT fees, bus passes): $6350 (most was piano lessons)

Vacations/Travel (this includes meals and spending on the road, kennel charges, everything): $10,700

Utilities (water/sewer, gas/electric): $3550

Home improvement/repair: $5000 (some more new windows, new fridge)

Auto (gas, car downpayment and payments, registration, parking charges, washes, service - Less what I sold my old car for): $3800.

restaurants: $2300

Phones (2 new phones, plus service for 4 people, and a year of magic jack for our landline): $2300

Clothing: $700. (We're cheap and I've trained the kids to shop at Goodwill. LOL)

Entertainment (this includes cable, netflix, movies at the theater, tickets to concerts): $3500

The other categories are too small to list but the total was just under $90k.

Things that I expect to drop when the kids are launched:
- education
- groceries!!!!
- gas for car
- insurance

But those won't drop for a while... still have to get them through college.

I'm stunned by your DH Medicare costs, was that for the whole 12 months?

 

[REWahoo]

I'm stunned by your DH Medicare costs, was that for the whole 12 months?

Did you notice the F+ (high deductible) Medicare supplement? That plan costs substantially less than the standard Plan F, but only makes sense if you are in good health.

 

[ivinsfan]

Did you notice the F+ (high deductible) Medicare supplement? That plan costs substantially less than the standard Plan F, but only makes sense if you are in good health.

Yes I did but Part B alone is around 144 a month this year..just wondering if it was a full 12...

 

[Danmar]

Taxes are always the largest single component of our annual expenses. Do you not consider taxes as part of your spending?

I treat income taxes as an offset to income. Taxes are withheld on my pension so I simply record the net amount received. Instalments and year end tax payment on my investment income are recorded as a separate (negative)line in the income section, along with interest, dividends, and stock sales. Estimated taxes are a large moving piece of the budgeting process for me.

 

[REWahoo]

Yes I did but Part B alone is around 144 a month this year..just wondering if it was a full 12...

I'd say yes.

I just looked at my 2017 numbers which totaled $2,316:

Part B - $111 mo
Part D - $17 mo
Medigap Plan F HD - $65 mo

 

[ivinsfan]

I'd say yes.

I just looked at my 2017 numbers which totaled $2,316:

Part B - $111 mo
Part D - $17 mo
Medigap Plan F HD - $65 mo

you must have been in the hold harmless group..this year B rate for my DH is 134 per month which adds around 276 to your total which would be 2692...I wonder how much the rates vary by state?

 

[Corporateburnout]

you must have been in the hold harmless group..this year B rate for my DH is 144 per month

it's 134 per month

 

[audreyh1]

Taxes are always the largest single component of our annual expenses. Do you not consider taxes as part of your spending?

I only budget after income tax spending because that’s the only ones I can predict and usually control.

Income taxes are driven by our investments and wildly unpredictable from year to year. So I don’t put them in the annual budget.

 

[ivinsfan]

it's 134 per month

made a typo fixed it thanks for catching that

I'm actually more curious about differences in other states, but that's for another thread...I just asked Rodi a question about her budget..

 

[karen1972]

2016: $74,201 ($10K went to moving into a home, breaking lease, etc)
2017: $69,532

two people
Auto: $20,400 ($14.5K for the purchase used Camry)
Food: $11,000
Home: $8,900 (Mortage/Property/Ins)
Home Maint: $2,000 (HOA+small fixes)
Health: $10,300 (premiums+care. One of us stuck on a COBRA plan so no subsidy)
Travel $3,500
Shopping: $3,300 (furniture, electronics, software, clothing, etc)
Tax:$2100
Legal: $1000 (annoying ex employer who went on a fishing expedition by threatening every ex-employee with legal action due to a bad review, demanding passwords to accounts they have no right to.)
Business Expenses: $850
Misc: $2000 (Entertainment, charities, gifts, hair cuts, etc)

 

[REWahoo]

you must have been in the hold harmless group..this year B rate for my DH is 134 per month which adds around 276 to your total which would be 2692...I wonder how much the rates vary by state?

Yes, I was in the hold harmless group. My rate for 2018 is $134, the same as your DH.

I don't think the B rates vary by state, but I could be wrong.

 

[ivinsfan]

Yes, I was in the hold harmless group. My rate for 2018 is $134, the same as your DH.

I don't think the B rates vary by state, but I could be wrong.

No that's Federal I was wondering about the supplement. I'll go do a little research online and maybe start my own thread so I don't distract from this one.. It's minus 20 outside so I have plenty of time to sit at the computer..

 

[REWahoo]

It's minus 20 outside ..

Yikes!

 

[Ready]

I do extensive planning and tracking with Quicken. Target budget is $130K. Last year we were $10K below budget and this year we were over budget by $4K... Medical expenses got us this year.

So, we are $6K under budget since retirement (2016 start).

My approach to budgeting includes a lot of long term expenses that happen only once over a 7-10 year timeframe. This year we purchased a new washer / dryer set. Also, we started a wine cellar, so this year's expenses include wine purchases for consumption over the next 7 years. The spending for the Groceries:Spirits is clearly over budget and will be for some time.

And yes, the motorhome thing is expensive. The vacation category is for the expenses where we are actually out using the RV.

This spending is for 2 adults and 2 dogs.

The listing below is a quicken report.

	Auto	2,921.77
	Auto:Fuel	1,539.84
	Auto:Insurance	813
	Auto:Registration	383.5
	Auto:Service	185.43
	Bank Charge	35
	Beauty	1,916.34
	Cash	1,758.00
	Clothing	2,580.94
	Dining	6,713.71
	Entertainment	1,317.05
	Entertainment:General	1,041.90
	Entertainment:Hobby	275.15
	Fitness	6,694.14
	Fitness:Biking	1,063.01
	Fitness:General	1,449.40
	Fitness:Gym	402.9
	Fitness:Skiing	3,778.83
	Gifts Given	1,306.99
	Groceries	20,106.26
	Groceries:General	13,373.75
	Groceries:Spirits	6,718.51
	Home Expenses	10,269.59
	Home Expenses:Association Fees	900
	Home Expenses:Home Improvement	5,720.77
	Home Expenses:Misc	3,015.28
	Home Expenses:Repair	633.54
	Insurance	4,722.11
	Insurance:Health Insurance	3,940.11
	Insurance:Home Insurance	338
	Insurance:Umbrella	444
	Medical	16,123.22
	Motorhome	27,990.82
	Motorhome:Improvement	6,469.31
	Motorhome:Insurance	616
	Motorhome:License	1,993.20
	Motorhome:Service	15,852.31
	Motorhome:Storage	3,060.00
	Pets	3,811.87
	Pets:Grooming	610.07
	Pets:Supplies	1,545.95
	Pets:Vet	1,655.85
	Professional Services	50
	Software and Computers	53.38
	Tax	5,330.91
	Utilities	6,529.99
	Utilities:Cable TV	701.83
	Utilities:Garbage & Recycling	180.48
	Utilities:Gas & Electric	2,288.09
	Utilities:Internet	392.65
	Utilities:Telephone	2,133.26
	Utilities:Water	540
	Vacation	13,686.18
	Vacation:Activity	1,399.18
	Vacation:Campground Fee	6,775.72
	Vacation:Fuel	4,051.20
	Vacation:Internet	110
	Vacation:Lodging	1,350.08
	OVERALL TOTAL	133,918.27

I understand the spirits expense, but how do two people consume $34K of groceries?

 

[bobandsherry]

I understand the spirits expense, but how do two people consume $34K of groceries?

Look at the poster's list again, there's a sub-total for Groceries of $20K. But still seems like a lot for 2 people (based on my spend).

Groceries 20,106.26
Groceries:General 13,373.75
Groceries:Spirits 6,718.51

 

[Meadbh]

I understand the spirits expense, but how do two people consume $34K of groceries?

I wonder if “Groceries” is the sum of “Groceries:General” and “Groceries:Spirits”?

 

[Ready]

Look at the poster's list again, there's a sub-total for Groceries of $20K.

Groceries ($20,106.26) + Groceries: General ($13,373.75) = $33,480.01

 

[Ready]

I wonder if “Groceries” is the sum of “Groceries:General” and “Groceries:Spirits”?

OK, yes that makes more sense now.

 

[ivinsfan]

I wonder if “Groceries” is the sum of “Groceries:General” and “Groceries:Spirits”?

Yes the headers on that spreadsheet were confusing...

 

[cranberryjoe]

I categorize my spending in MoneyDance. Here's what it says I spent in 2017.

Automobile $40954
Taxes $16674
Hobby $8705
Healthcare $6465
Groceries $5340
Travel $4942
Bills $4847
Dining Out $4491
Household $2790
Gifts $2170
Pet Care $2114
Charitable Donations $1350
Housing $1288
Fees $618
Clothing $482
Personal $411
Leisure $92
Miscellaneous $72
Safe Deposit Box $56

Total $103K. That's mostly for one person, but most of the dining and travel expenses are for two. The big spends this year were $37K for a new car (need + want), over $5K for new camera gear (want), and $1K unexpected furnace repair (need).

Categories are a little loose. Since I've been retired for 4 years most everything could be categorized as "Leisure" (that category is mostly books).

Compared to 2016: I spent $59K last year, which was a more typical year. Last year I had $5K in emergency home repairs (vs $1K this year), twice the hobby spending this year than last, more on gifts this year (nephew's wedding), more vet bills this year than last, and I didn't buy a new car with cash last year. Everything else is roughly the same, with slight bumps for inflation and perhaps a bit of lifestyle creep.

Compared to when I was working: I spend way less on taxes, way more on healthcare and hobby, way less on gasoline, more on groceries, less on dining out (I used to eat out for lunch every day, now it's maybe 2 days a week). Everything else is roughly the same.

 

[Meadbh]

Look at the poster's list again, there's a sub-total for Groceries of $20K. But still seems like a lot for 2 people (based on my spend).

Groceries 20,106.26
Groceries:General 13,373.75
Groceries:Spirits 6,718.51

I think this applies to other categories too, eg Auto and Vacation. It would have been clearer if those category headings had been offset or bolded.

Yes, that does seem like a lot of groceries. Presumably it’s not just food, but household cleaning products, etc.

 

[ivinsfan]

I categorize my spending in MoneyDance. Here's what it says I spent in 2017.

Automobile $40954
Taxes $16674
Hobby $8705
Healthcare $6465
Groceries $5340
Travel $4942
Bills $4847
Dining Out $4491
Household $2790
Gifts $2170
Pet Care $2114
Charitable Donations $1350
Housing $1288
Fees $618
Clothing $482
Personal $411
Leisure $92
Miscellaneous $72
Safe Deposit Box $56

Total $103K. That's mostly for one person, but most of the dining and travel expenses are for two. The big spends this year were $37K for a new car (need + want), over $5K for new camera gear (want), and $1K unexpected furnace repair (need).

Categories are a little loose. Since I've been retired for 4 years most everything could be categorized as "Leisure" (that category is mostly books).

Compared to 2016: I spent $59K last year, which was a more typical year. Last year I had $5K in emergency home repairs (vs $1K this year), twice the hobby spending this year than last, more on gifts this year (nephew's wedding), more vet bills this year than last, and I didn't buy a new car with cash last year. Everything else is roughly the same, with slight bumps for inflation and perhaps a bit of lifestyle creep.

Compared to when I was working: I spend way less on taxes, way more on healthcare and hobby, way less on gasoline, more on groceries, less on dining out (I used to eat out for lunch every day, now it's maybe 2 days a week). Everything else is roughly the same.

Just a tiny quibble, even if you pay cash for the car, I'd probably break it out of my budget or put a reasonable deprecation number each year I used it. The car is obviously not worth zero so you really didn't spend the entire purchase price.

 

[NW-Bound]

I understand the spirits expense, but how do two people consume $34K of groceries?

Foie gras, beluga caviar, white truffle, Jamón ibérico, Kobe beef, Bresse chicken?