I could never even get close to $150 per day, never mind $50!!! 
This year, my daughter's (future) school costs the equivalent of US$27.40 per day (US$10,000 pa) and she won't attend for another 3 years!
Once inflation is factored in over the next 20 years, you guys might be teaching me "How to Live US$22.60 per day"
Let's hope not though. :-/
This year, my daughter's (future) school costs the equivalent of US$27.40 per day (US$10,000 pa) and she won't attend for another 3 years!
Once inflation is factored in over the next 20 years, you guys might be teaching me "How to Live US$22.60 per day"
Let's hope not though. :-/
Nords, you are quite right. Privately and in concert with other similarly placed parents, we are considering other options but in the meantime making financial provision for the original school. Believe it or not the above school fees are actually AFTER a Government subvention (subsidy), the costs at a fully private institution are approximately 50% higher. It's just a quirk of our location and special educational needs.
G
guest
Guest
Since retiring almost two years ago, my DW and I are averaging $175 per day. That's higher than I had anticipated, but it includes several expenses that won't be annual (new car, replaced home air conditioner, replaced computer, replaced dishwasher, and a few others). We have traveled a lot these past two years. I'm not sure whether we will slow that down or not in the future. Also it is an amount that is still well below a 4% SWR and that does not include three pensions or social security benefits that will kick in as early as 4 years from now.
It seems that your capital is in the range of around $2M. Plus 3 pensions and SS? You wouldn't even need any calculator.
Congrats.
P
PTraveler
Guest
"A new study called "Understanding Expenditure Patterns in Retirement," published by the Boston College Center for Retirement Research, shows that typical married adults ages 65 and older have expenditures totaling $14,792. The top fifth in income have average expenses of $25,567 and the lowest fifth have average expenses of $10,111."
Billy
Website www.geocities.com/ba264
Billy
Website www.geocities.com/ba264
OP
OP
John Galt
Guest
It is interesting that if you take the top fifth and the bottom fifth and average them, you get almost exactly
$50.00 per day.
JG
$50.00 per day.
JG
P
PTraveler
Guest
Yes it is, yet many here have debunked the notion it can work. For the complete story here's the link
http://cbs.marketwatch.com/news/sto...9EC-4410-9BA2-3C7DCE16AE9D}&garden=&minisite=
Billy
Website www.geocities.com/ba264
http://cbs.marketwatch.com/news/sto...9EC-4410-9BA2-3C7DCE16AE9D}&garden=&minisite=
Billy
Website www.geocities.com/ba264
OP
OP
John Galt
Guest
Hi Billy. I have not read the study yet but must disagree that "many here have debunked the notion it can work" etc etc etc.
Those are opinions only. I guarantee it can work and
besides, the study can't be that flawed. Sure it's bare bones for most of us. That doesn't mean it can't be done. How about unclemick's personal best of 12K for a
whole year? These folks posting $75, or $100, or $150 per day
don't NEED that much. What they really mean to say is
that they WANT that much. We're way over $50.00 but could get down to it with less than Herculean effort.
JG
Those are opinions only. I guarantee it can work and
besides, the study can't be that flawed. Sure it's bare bones for most of us. That doesn't mean it can't be done. How about unclemick's personal best of 12K for a
whole year? These folks posting $75, or $100, or $150 per day
don't NEED that much. What they really mean to say is
that they WANT that much. We're way over $50.00 but could get down to it with less than Herculean effort.
JG
P
PTraveler
Guest
retire@40
Thinks s/he gets paid by the post
- Joined
- Feb 16, 2004
- Messages
- 2,670
You can live on $1 a day if you really try hard enough. The problem is, there is a certain quality of life most people want to maintain. Just my health insurance, real estate taxes and house insurance (average 5 room house) come to $40 a day. I can't see how a couple can enjoy life much on the remaining $10 a day.
Now if you want to live without insurance, that's another story, but most people don't want to take that chance.
It would take at least $110 a day ($40K a year) for me and my family to live a frugal-normal lifestyle.
OP
OP
John Galt
Guest
I am telling you all, it's in your attitude. There are
huge numbers of people (right here in the USA) who would feel like they were "livin' large" on $50.00 per day.
We don't do it, but just because you can't/won't
doesn't mean it can't be done. That's nonsense.
BTW, there is no such thing as a "normal lifestyle".
That is a clearly a phrase without any meaning.
JG
huge numbers of people (right here in the USA) who would feel like they were "livin' large" on $50.00 per day.
We don't do it, but just because you can't/won't
doesn't mean it can't be done. That's nonsense.
BTW, there is no such thing as a "normal lifestyle".
That is a clearly a phrase without any meaning.
JG
Put very well Retire@40.
I do not think anyone on this board who resides in the US lives on $50 a day TOTAL. They would not own a computer or subscribe to internet service.
Maybe if your home and home expenses was paid, your car and insurance were paid, your credit cards and food bills were paid, health expenses taken care of
then OK.
But in reality it is not happening.
If anyone does live on $50 a day TOTAL I would like to see a financial breakdown to compare.
Not a breakdown of what one can spend but a breakdown of someone that is actually doing it every single day for a long period of time.
P
PTraveler
Guest
We are into our15th year. 5122 days...but who's counting?...daily avg. $56.17
Oh...and did I mention..we travel the world?
Follow YOUR DREAMS!
Billy
website www.geocities.com/ba264
Oh...and did I mention..we travel the world?
Follow YOUR DREAMS!
Billy
website www.geocities.com/ba264
The total 24k annual budget would be $40,500 now, about the average budget for this board? In any case, our "Modest" category from a recent posting.
Is this annual budget of $40,500 pre-tax? Does it include health care and long term care insurance also?
Is this annual budget of $40,500 pre-tax? Does it include health care and long term care insurance also?
OP
OP
John Galt
Guest
As The Wizard of Oz said to Dorothy, "You have forced
me into a cataclysmic decision."
Here is my first year of complete retirement as best I can reconstruct. Note the inclusion of child support, and I could have cut plenty out of this had I wished to:
Rent 3180
Child support 3600
Truck (gas, oil, repairs, etc) 1500
Health insurance 1800
Groceries and household 2000
Utilities and phone 1500
Personal (travel etc) 1200
Prescriptions 100
Total 14880
This is with one (older) vehicle, no cell, no cable, no computer. Ate many meals with my parents plus hunted and fished a lot. I may have missed something, but what you see is pretty accurate. And, like I said, I can see
lots of "fat" if you got really motivated. BTW, this period
was immediately post-divorce and I was able to do pretty much whatever I wanted, whenever I wanted.
If that's an important part of ER (I believe it is to most of you), then there you go. It's mostly how bad you want it. Your income is a way distant second.
JG
me into a cataclysmic decision."
Here is my first year of complete retirement as best I can reconstruct. Note the inclusion of child support, and I could have cut plenty out of this had I wished to:
Rent 3180
Child support 3600
Truck (gas, oil, repairs, etc) 1500
Health insurance 1800
Groceries and household 2000
Utilities and phone 1500
Personal (travel etc) 1200
Prescriptions 100
Total 14880
This is with one (older) vehicle, no cell, no cable, no computer. Ate many meals with my parents plus hunted and fished a lot. I may have missed something, but what you see is pretty accurate. And, like I said, I can see
lots of "fat" if you got really motivated. BTW, this period
was immediately post-divorce and I was able to do pretty much whatever I wanted, whenever I wanted.
If that's an important part of ER (I believe it is to most of you), then there you go. It's mostly how bad you want it. Your income is a way distant second.
JG
retire@40
Thinks s/he gets paid by the post
- Joined
- Feb 16, 2004
- Messages
- 2,670
Unless you retired in 1970, this is not even close to a realistic budget today. Rent at $265 a month? Health insurance for a single 50 year old for $150 a month? No cable, no computer, and having your parents paying for some of your food isn't what most people aspire to in retirement.
unclemick
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
To repeat a very old post - Dory36's - 33% Thats my story - our standard of living didn't change much and we lived on less than 33% of our old working incomes for years (eleven so far).
Now being a cheap bastard and prone to experiment( I were an en-ga-neer) - my personal best was 12k for one year.
Generally - many ER's(with exceptions) project their current living costs into retirement minus tax adjustments, savings changes,cost of working,etc.
That's basically what we did. Oh - and I don't bother with health insurance.
Now being a cheap bastard and prone to experiment( I were an en-ga-neer) - my personal best was 12k for one year.
Generally - many ER's(with exceptions) project their current living costs into retirement minus tax adjustments, savings changes,cost of working,etc.
That's basically what we did. Oh - and I don't bother with health insurance.
P
PTraveler
Guest
The last few years have come in between 23-24K. That includes all airfare, traveling expenses, etc. If we stayed put in the US I am sure it would be well below that, but we want to travel. The countries we visited in the last 13 months are Thailand, Vietnam, Burma, Laos, China, Ecuador and the USA. Remember, retirement is a lifestyle, not a vacation. Our best year was when we were living "full time" in Mexico, and the Peso devalued. Just luck for us, not for the Mexican people.
Billy
Website www.geocities.com/ba264
Billy
Website www.geocities.com/ba264
Referring to the Boston College study, the numbers in the various charts appear to be "per capita", and not total household expenses, which would place the median household expenditures for a married couple much higher than $50 per day.
John Lee
John Lee
OP
OP
John Galt
Guest
Mostly for retire@40..............
I retired 100% in 1998. I am not suggesting my budget can
(or should) be attempted at home Most folks can't/won't cut to that level, and that includes me.
I cut back "to the bone" as it was my first year of
full retirement and I was still nervous. I only posted
those numbers to show what a little motivation and creativity can do. Remember YMOYL? Some of those folks lived on practically nothing. I am not promoting that, only supporting my claim that it can still be done right
here in the USA in 2005.
JG
I retired 100% in 1998. I am not suggesting my budget can
(or should) be attempted at home
Most folks can't/won't cut to that level, and that includes me.I cut back "to the bone" as it was my first year of
full retirement and I was still nervous. I only posted
those numbers to show what a little motivation and creativity can do. Remember YMOYL? Some of those folks lived on practically nothing. I am not promoting that, only supporting my claim that it can still be done right
here in the USA in 2005.
JG
gayl
Thinks s/he gets paid by the post
If I had $100 a month for travel & personal, I'd go back to work! That isn't even a bare bones existence for me and I retired to live it up! :
Hyperborea
Thinks s/he gets paid by the post
He's referring to the book by Dominguez called Your Money or Your Life (YMOYL). The book is worth reading for the first half where he talks about dollars for hours of life and how to figure out how much you are really getting paid. That part is a pretty good motivational text.
In the second half he talks about his investment strategy which you should ignore completely. He says to invest solely in US government bonds. If you do that you'll end up after 20 years living like he did - in a group home with strangers, doing your own dentistry with a pair of pliers, and racing roaches for entertainment.
