Final 2023 Expenses

[Digger1000]

This is very interesting information. Thank you all for sharing.



I think it would be more useful if you also include your age and your expenses (after SS & Pensions) as a percentage of your portfolio. I think that gives some perspective on the spending.

$13,363.70

57 retired 2017

expenses 1.05% of portfolio

 

[11522914]

I retired at the beginning of 2019 and my wife retired in February of 2021. I can't believe I've been retired 5 years.

I track every dollar in Quicken as I enjoy doing that. Expenses:

2019 $63,523.35
2020 $58,536.78
2021 $38,267.17
2022 $38,131.94
2023 $56,252.93 (includes $14,000 in exterior home repairs & painting)

Our net worth is higher than when I retired in 2019. That is quite an accomplishment since we never had more than 20% in equities and as of June 2022 currently have a 100% CD/Bond/Preferred portfolio. Plus after my wife retired in 2021 our only income has been 2 small pensions ($8,000 a year total) and my wife started collecting SS at 62 this year. I'm 63 1/2 and just let my SS increase every month. Plan on taking it at 65 but we'll see as I have a progressive disease that doesn't cause death but has the potential to be debilitating and affects many in different ways.

2024 will most likely be a very expensive year. Will be doing extensive landscaping and replacing aging carpet throughout the house. Plan on spending at least $10,000 - in addition to reward points - in travel. My 2004 Avalon just hit 200,000 miles and just keeps on running. May replace when it finally dies with an electric car or just keep my wife's car. My son is temporarily moving back home after a horrible 2023. Broke up with long term girlfriend and lost his job so that will also increase expenses. Sorry, this is a lot more than y'all needed to know but feels good to write it down.

Wishing everyone an awesome 2024!!!!

 

[walkinwood]

I am 63, DW 60. We spent 2.8% of our Jan 1, 2023 portfolio value. We haven't started SS and have no pensions.

Our plan was to budget 4% of the Jan 1 portfolio. There are some home improvements/maintenance that may bring next year's spend more in line with our plan.

 

[Born2Fish]

Spent $43k this year.

Portfolio has recovered nicely, so we may splurge a little bit in 2024!

 

[teej1985]

My 2023 spending came in at $40,942.

 

[PatrickA5]

After a final dinner out, our total ended up at $99,743.74. The first time in a couple of decades under $100K. About $25K was for travel. Food/eating out was a close second at $20K. We could probably get by on around $60K if we really wanted to. Next years budget has some home maintenance stuff, so we'll probably be back over the $100K mark, but it was nice it see we could do it.


Income taxes will add another $10K or so, but that category is so unstable due to conversions, etc. Without conversions, our taxes could easily be under $1,000 starting next year.

 

[jollystomper]

2023 is the 5th full calendar year of my retirement. My expense summary for it and the previous 4 years:

Year|Total Spending|Living Spending*|Top Spending Areas**
2019|143,305|88,590|Taxes, Vacation&Travel, Auto, Medical, Charity&Gifts, Mortgage
2020|102,356|52,978|Taxes, Medical, Charity&Gifts, Groceries, Mortgage, Auto
2021|106,626|59,467|Taxes, Medical, Charity&Gifts, Groceries, Auto, Household, Utilities
2022|104,358|62,474|Taxes, Medical, Charity&Gifts, Vacation&Travel, Auto, Groceries, Utilities
2023|117,082|74,185|Taxes, Charity&Gifts, Vacation&Travel, Medical, Auto, Groceries, Household

* Living Spending = spending excluding Taxes and Charity&Gifts
** Top Spending Areas = the spending categories, highest to lowest, that accounted for 80% of our total spending

 

[socca]

I spent only $23k in 2023 excluding taxes of all kinds (income, property, HOA, etc.) This is ridiculously low but I just didn't have the time to spend more. If time is really more valuable than money at my stage in life (early 60s) then I'm screwed.

In 2023 I was responsible for closing down a family business. This was about 600 hours of unpleasant work. If I can convince some reluctant family members to sell I'll be responsible for closing down a larger family business in 2024. This will be at least another 600 hours of unpleasant work.

Why me? Well, I'm the only technically-trained person left in the family. The other family members are good at cashing checks but not much else. It's my "toxic inheritance" to be responsible for all of this crap.

On the positive side, it was "family money" that allowed me to bail out of the corporate rat race at age 44 for self-employment as a manager. So, before I start feeling too sorry for myself I need to remember that most people don't have this option.

So .. I credit my financial success to both nature (high energy, technical training) and nurture (substantial family resources).

Good luck in 2024!!

 

[razztazz]

2023 ---
$16,799.00 --- Core expenses
$3,671.91 --- Lumpity ones


2022 ----
$16,947.98 --- Core Expenses
$5,680.50 --- Lumpity Ones

 

[DrRoy]

$133,700. Biggest category was travel at $46K.

 

[ShokWaveRider]

$53,473.31

2022 was $53,085.71

YES! this surprised me too.

We have not done any travel for the last 2 years. That would add ~$25k for an average year.

 

[Samething]

$56,162 all inclusive. I’m 63, single with a paid off everything. Under 3% withdrawal rate pre SS. I feel so fortunate!

 

[ShadowBloom]

I'm always amazed when I read these numbers. In my HCOL area, my rent alone is more than some of your total spending!

 

[53anddone]

My 2023 withdrawal rate was exactly 3.00% So even thought my spending number was pretty high with two kids in college I think I'm good.

Been retired 6 years and my net worth is up 19.2%. Also seems like I did the right thing.

 

[anothercog]

I'm always amazed when I read these numbers. In my HCOL area, my rent alone is more than some of your total spending!

Ditto. I can’t fathom some of these numbers. My property taxes are more than what some people spend in a year.

 

[Sunset]

Ditto. I can’t fathom some of these numbers. My property taxes are more than what some people spend in a year.

And I can't imagine moving to your neighborhood as the house prices and property tax (on new CA purchase) would kill my retirement.

So basically, I bet 99% of US population can't afford to buy into your neighborhood !!

 

[CardsFan]

And I can't imagine moving to your neighborhood as the house prices and property tax (on new CA purchase) would kill my retirement.

So basically, I bet 99% of US population can't afford to buy into your neighborhood !!

Bingo!

A paid off home in a Medium-Low-COL area makes things SO affordable. We could fairly comfortably live on SS (about $64,000 for 2). Typically our largest expense, when doing Roth Conversions, is Fed taxes at about $25,000.

 

[meleana]

Not including the $8000 we spent on our South Dakota tour, and the taxes we paid on a Roth conversion about $5000, we spent about $35,000 for the year. I keep track on excel and compare to the budget I create on excel as well.

 

[Pointby2]

We're in Orange County, CA. Paid off cars and home.

Our total spend was $94,097. That included about $25,000 for travel and another 15K for a new HVAC system. Plus another 5K for dental.

 

[WhenIsItTime]

We are FIRE'd in early 50's and spent 2.6% of invested asset balance including taxes, home improvements, travel, everything without much management. Very blessed.

I have been using Mint to collect all spend and put some effort into categorizing. I don't spend much time (which is as valuable as $$$ to me) on transactions below 0.1% of total spend.

 

[socca]

There has been a lot of jabber in the popular press about increased food expenses, so I took a look at my records:

• 2023: $5k
• 2022: $5k
• 2021: $4.5k
• 2020: $4.6k
• 2019: $4.4k
There does seem to have been a jump during the pandemic inflationary surge.

 

[flyover]

Me 92445.59
DW 67532.72

Total 159978.31

I don't categorize spending anymore. Did it for decades, but don't see the need to do so anymore.

How do you account for groceries, or purchases made for the both of you, etc. when assigning it to you vs. DW? Thanks!

 

[2017ish]

Our spending was, as always, high. But due to portfolio decrease from 12/31/2021 to 12/31/2022, we cut our after-tax spending 20% from 2022 to 2023. Still spent 4.5% of the portfolio value as of previous year's end.

Most of decrease was in travel, but that was still six figures and the majority of our post-tax spending.

Fortunately, 2024 looks to be a less constrained year!

 

[sengsational]

My 2023 expenses this year came in as follows:
Gifting: 31%
Taxes: 20%

Regular Expenses: 23%
Travel: 18%
Medical: 7%
Lumpy: 1%

Based on this year's actuals in regular expenses, medical, and travel, I estimate a 2024 total. These categories make up only about half of my total spend. I divide that by 12 and that's my planning number for cash flow. Taxes and gifts are paid when I pull from investments, so no need to put that into the monthly planning number. The dashed line is the plan, the green is the cash balance. I force plan to equal actual once per year. This year I overspent about 5%.

 

[SecondCor521]

0.75% net WR.

Main top level categories in 2023:

Food 25%
House 18%
Recreation 16%
Auto 13%
Utilities 9%
Christmas 5%
Kids 5%
Tax 3%

Plus some other smaller categories.

Auto would have been lower except for a large deferred maintenance bill.

Content with the ratios and amounts. Probably would be good to find a way to BTD more.