2008 Actual Spending and 2009 Budgeted Spending

[Frugality_of_Apathy]

Excluding taxes, mortgage, and debt repayment I spent $15,000
~$3000 in gas
~$1500 for car maintainance insurance registration license renewal
~$3500 in motorcycle, training, gear, certification, and insurance
~$3000-$4000 in food and booze
~$1300 for utilities
~$300-$400 for clothes
~$800 for cellphone and internet(just got a new plan that shouuld save me $300 next year)
And the remainder is misc.

2009 I hope to get out for $11,000 in non-tax and mortgage money.I'm stashing 13% of my paycheck in a 401K and if I refinance I'll max that out at 20% plus 3% from employer and stick everything else in the mortgage.

[FIREd]

Quote:

Originally Posted by FIREdreamer 2008 spending: $56,321 YTD. Still a few bills to pay before the end of the year, but we should end the year below $60,000 ...

Update: The final number for 2008 is in: $60,700. Our messed up holiday travel plan ended up costing us a bundle (hotels, meals, last minute rebooking, etc...) and pushed us over the $60,000 mark. Darn! But, despite all this we were able to save a bit over $80,000 last year which is not too shabby.

In 2009, we will be trying a new approach to make sure we stay within our alloted budget. It will take us one step closer to a real "fixed income" budget.

[Shawn]

Single, living alone (one cat), 49, not yet retired ...

Mortgage (12,397)
Property Tax (3,034)
Charity (5,125)
Home Insurance (759)
Auto Insurance (413)
Auto Gas (894)
Auto Repair (1,836)
Cable TV (708)
Phone (316)
Internet (120)
Electricity and Gas (262)
Water (208)
Trash (167)
Medical (136)
Veterinary (454)
Food (1,995)
Misc (3,022)

Total (31,846) (plus 60,943 in estimated income taxes)

Previous Years:
1999 (30,915)
2000 (33,454)
2001 (27,325)
2002 (31,751)
2003 (29,757)
2004 (25,510) [plus 18K in veterinary bills]
2005 (29,424) [plus 5K in veterinary bills]
2006 (30,735)
2007 (29,703)
2008 (31,846)

I definitely want to bring my expenses back under $30K for 2009. I had a lot of auto maintenance done in 2008 since I decided to keep my 1980 car for at least another 2 years. Hopefully this won't be an expense for 2009. In addition, I need to cut back on food and miscellaneous.

[Notmuchlonger]

Good stuff. Im amazed you can live on 5.47 a day for food.

[haha]

Quote:

Originally Posted by Notmuchlonger Good stuff. Im amazed you can live on 5.47 a day for food.

3 meals off the McD $ menu would do it. Could even substitute an occasional small chili at Wendy's.

The wonders of this board- $30,000 of consumption and $60,000 in income taxes. Who said serfdom was dead?

Ha

[Notmuchlonger]

Quote:

Originally Posted by haha 3 meals off the McD $ menu would do it. Could even substitute an occasional small chili at Wendy's. The wonders of this board- $30,000 of consumption and $60,000 in income taxes. Who said serfdom was dead? Ha

But wheres the wine?

[haha]

Quote:

Originally Posted by Notmuchlonger But wheres the wine?

In the back pocket of the wino sitting next to you at Mick's.

Ha

[Amethyst]

>>2008 - 32% of Income went to expenses; we "saved" 62% of Income.

OAG, do you pay only 6% in taxes...or are taxes included in that 32% expense category?

Either way...admirable tax and savings position. congratulations!


Amethyst

Amethyst

[Shawn]

Quote:

Originally Posted by Notmuchlonger Good stuff. Im amazed you can live on 5.47 a day for food.

Hey. 2008 was a leap year. That makes it $5.45/day for food. Don't sell me short.

[Notmuchlonger]

Quote:

Originally Posted by Shawn Hey. 2008 was a leap year. That makes it $5.45/day for food. Don't sell me short.

Sorry rounding error

[OAG]

Quote:

Originally Posted by Amethyst >>2008 - 32% of Income went to expenses; we "saved" 62% of Income. OAG, do you pay only 6% in taxes...or are taxes included in that 32% expense category? Either way...admirable tax and savings position. congratulations! Amethyst Amethyst

Thanks. My math is not the best; it should have been 32 and 68%. The expenses do include Income Taxes. However, our Federal Taxes are actually about 6% of Gross Income. State taxes are negligible (less than .5% of GI). The major expense is RE Taxes (about 7.5% of GI).

[JOHNNIE36]

You guys have this budget thingy pretty much figured out. It amazes me how you can do it. My budget seems to be "receive bill-pay in full". I'd like to think it's not me, but my wife, but I'm not sure. I seem to be the frugal one and not my wife. She has taken it as her personal responsibility to bring this country out of the recession. As I tell my golf buddies, her greatest fear is that she will die and not have spent all the money. As for me, my greatest fear is that she will accomplishment it. Just like today, she calls me on my cell phone in COSTCO's to come look at the TV's. Now we both have our own TV rooms as mine is always on a sport channel while hers is either on a soap, a Home and Garden show, QVC or HSN. We both have big screen TV's with high definition, etc. Her justification for a new flat screen is that she will be able to use the table that came with the entertainment center, thereby being able to use a table that is in her sewing room taking up too much roon. I know this doesn't make sense but then neither does my wile. My solution is to sell the table taking up too much room in her sewing room. My solution =$40 profit for excess table. Her solution=loss of $1000 plus for a new TV (not required). Does anyone out there understand her economics? I need a stimulas package. HELP!

[NW-Bound]

Shawn, my hat off to you. If I remember correctly, you live in LA area, not a low-cost-of-living area?

And how many miles do you have on your 1980 car? My 1995 minivan has near 140K miles on it, and if I had to pay a mechanic to maintain it, I would have to cave in and get rid of it (I am my own grease monkey to save money). Care to share the make of this wonderful car?

[NW-Bound]

Quote:

Originally Posted by kumquat We calculate our spending by determining our net worth every Jan.1. The difference between NW on Jan 1, 2009 vs Jan.1 2008 is our annual spending. This year we are on track to spend about $1.8 million. Next year we hope to cut back.

Did you invest with Madoff?

[SecondCor521]

Preliminary Quicken number for CY2008 spending is $55,627.17. Kid expenditures were $22,518.54 and interest expense on mortgage+student loan was $9,053.93. Working, single with three kids with me a third of a time, house/mortgage, paid off car.

2009 should be less than that due to several things: reduction in interest rate on my student loan, reduction in child support due to an increase in my children's mother's income, daughter graduated from $560/month preschool.

2Cor521

[JohnP]

We spent 57K in 2008 excluding all taxes. Married, retired for 6 years, no dependents at home (DS graduated with BS in engineering and moved out in Aug), no debt, home, 2 vehicles, no big vacation this year but lots of jaunts to see grandkids. Plan is to budget 55K for 2009 not including a new car soon - intend to pay cash.

JohnP

[Koolau]

Quote:

Originally Posted by JOHNNIE36 You guys have this budget thingy pretty much figured out. It amazes me how you can do it. My budget seems to be "receive bill-pay in full". I'd like to think it's not me, but my wife, but I'm not sure. I seem to be the frugal one and not my wife. She has taken it as her personal responsibility to bring this country out of the recession. As I tell my golf buddies, her greatest fear is that she will die and not have spent all the money. As for me, my greatest fear is that she will accomplishment it. Just like today, she calls me on my cell phone in COSTCO's to come look at the TV's. Now we both have our own TV rooms as mine is always on a sport channel while hers is either on a soap, a Home and Garden show, QVC or HSN. We both have big screen TV's with high definition, etc. Her justification for a new flat screen is that she will be able to use the table that came with the entertainment center, thereby being able to use a table that is in her sewing room taking up too much roon. I know this doesn't make sense but then neither does my wile. My solution is to sell the table taking up too much room in her sewing room. My solution =$40 profit for excess table. Her solution=loss of $1000 plus for a new TV (not required). Does anyone out there understand her economics? I need a stimulas package. HELP!

Johnnie,

Budget situation is pretty much same as yours - as in: Budget? Budget? we don't need no stinkin' budget!

Maybe the difference is that DW is USUALLY more frugal than I am - especially when I want to spend some money! I want to buy a SECOND TV for myself (about $300) and she thinks we should try one of the discarded ones we find on the street every 1st Monday of the month. Sooner or later, she says, we'll find one that works well enough. Those that don't work, we can always haul back to the street next month.

Now, when she wants to spend money... That's different. Haven't had the nerve to figure what our home improvements cost this year. Over 20K for sure. But, I agree they were needed and probably added more value than they cost. Still...

Full disclosure: DW and I do actually mesh pretty well when it comes to spending. It's just that for relatively small things (like a TV or even the cable bill) she can get down right stingy! Guess I prefer my situation to yours, heh, heh. Best luck!!

[Ronnieboy]

Quote:

Originally Posted by Shawn 2004 (25,510) [plus 18K in veterinary bills] 2005 (29,424) [plus 5K in veterinary bills]

How much is a new cat?

[CuppaJoe]

Quote:

Originally Posted by haha 3 meals off the McD $ menu would do it. Could even substitute an occasional small chili at Wendy's. ...

I was thinking company cafeteria. Shawn, 'splain it? Enquiring minds are boggled. Maybe women cook for you because you take such good care of your cat? How's your cat doing now? Same cat?

[Dennis]

well, I MBW but we have a confusing mix of Both Those still having to Work and Those of us Not ( Financially Retired) and thus from 2 different planets..

While most of Us HNW Don't really watch our nickels and dimes , most others in my Group do basic planning and Some kind of basic Budgeting..but All had at least Double what others told them they needed inorder to Be Financially Able to Retire..

All of us also have a Charitiable Trust set up to fund our own Charities, etc.. as well..
along with keeping a Reserve of 2-3 yrs of Expected $ to pay the basic Bills and our standard of living.. and plans..in shorter term Investments..such as Short Term Bonds like VSGBX,FLBIX or even in Laddered CD's ..and we all have Financial Planners/A Firm that has just about everyone In house from ChFP's, CPA's, Estate Lawyers, etc..

Some are with Wilmington Bank and have major accounts with them ( $500k To open) and they provide alot of extra services mentioned above as well..as are others are with simalar Banks, etc.. that do all that stuff for us..Most don't want to spend anytime Using a Computer for anything else but for Fun, let alone do that " Pencil Pusher/Bean Counter" work we Hired people to do for us in our Former Businesses and still do now..