2008 Actual Spending and 2009 Budgeted Spending

[mickeyd]

Deleted

 

[ziggy29]

Our household expenses in 2008 were $70,991, of which $23,551 was income taxes, Social Security taxes and Medicare taxes. So net of those taxes we spent $47,440. But our discretionary spending was about 30% lower in the second half of '08 than the first half, so if we keep up that trend our after-tax spending will likely be around $40,000 in '09, assuming no change in our employment situations. That's about where I'm mentally preparing our budget.

 

[mickeyd]

I paid a bit over $29k to my CC in 2008 and my property taxes were about $4k, so my expense were about $33K for the year. I do not keep a very close record of my expenses as many of you disciplined folks do. As I pay for 99% of my expenses with my CC, but not the RE taxes, I'm pretty sure that this accurately reflects my expenditures.

I expect 2009 to be about the same as 2008.

 

[OAG]

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

However those #'s do not reflect the fact we did a "Mulligan" on SS Benefits using about $85% of a $100K HELOC (current interest rate on that money is 2.75%; so no rush to pay it off). Purchase of an annuity from the SS Administration seemed like a good financial deal!

 

[theloneranger]

Where do you obtain a HELOC aat 2.75%

 

[saluki9]

Where do you obtain a HELOC aat 2.75%

You don't anymore

Before the current mess plenty of banks were offering them at 50 and 75bps below prime.

 

[OAG]

Where do you obtain a HELOC aat 2.75%

PENFED (See link about 1/2 way down the page): https://www.penfed.org/productsAndRates/mortgages/homeEquity.asp

 

[FurBall]

2008 - budget $60,000, actual $56,000
2009 - budget $60,000

married, house paid off, high cost of living area but live comfortably

 

[dessert]

We spent 33K in 2008. Married, no dependents at home, no debt, home, 2 vehicles, boat, and no big vacation this year. Live in the South. Approximately 1-2 years from RE and plan is to budget 48K/yr. and go from there. Probably spend the extra money on travel.

 

[Alan]

2008 excl taxes $69k

2009 budgeted $72k

 

[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]

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]

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]

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]

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]

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]

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

Sorry rounding error

 

[OAG]

>>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]

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