Clearly I'm missing something in the OPs comments. I don't see federal or state taxes or any kind of car fees, gas and maintenance, phone/internet costs (not cable), etc? Those are expenses - to leave them out is disingenuous. It appears he/she is still working as there was mention of what would happen after retirement. Owning a paid off house is great, but there are still taxes, repairs, utilities, etc. I also don't really understand why so many folks talk about cutting back on what seem to be very austere budgets to begin with. If you don't have the money to spend, then you don't spend it. LBYM is possible for most people by simply giving up a few luxuries. But I have no desire to leave our kids a large inheritance by denying ourselves things we want. Reading this list, I sometimes get the impression that there are folks who would recycle toilet paper to save a few bucks if it were feasible. If you can't enjoy life and live like a pauper (when you are far from one), what's the point of living? Life is finite - no mulligans,
That being said, if, for some unforeseen calamity, we had to cut back on expenses, we would probably be able to lower our expenses by at least $4K a month. No cable, no internet, no dining out, sell both cars and buy a junker, no trips (can't call them vacations when you are retired
), no new clothes until everything wears out, no gifts to anyone and lots of other things that add up quickly. That $4K a month seems to the OPs entire budget. What can you possibly cut from that? And why would you if you can afford it.. When I was a 2LT in the Army in 1970, the monthly pay was about $416 a month plus another $48 for subsistence. Since we lived in government furnished housing, there was no allowance for that, but also no expense. But we lived well. One car, one 19" color portable TV with an antenna, no cell phones, no cable, no internet, 30 cent a gallon gas, no computers, no ipads, no DVRs, no new tech coming out every 6 months, etc., etc. Would I want to go back to those days? Not on your life. There are people who enjoy being Luddites, but I love many aspects of technology - it makes for a far better life. I do own an iphone 6S, which I plan to keep for several more years - it does everything I want.