2013 expenses

[Katsmeow]

I have a budget however I never figured out what I've spent. This thread prompted me add up my annual projected expenses for 2014 based on my monthly budget. Health insurance will be taken out of my pension check. Do you guys save receipts or log everything spent on a daily basis, what's a good way to track expenses? I'm thinking as long as I stay within budget I'm doing ok. Thanks

$10,284. Mortgage
$11,556. Property Taxes, HOA, house insurance, including flood, car insurance, AARP health care opt
$3780 House/Car maintenance fund & co pays
$10,800. Emergency fund
$1000. Donations
$3,600. Investments
$480. Weight Watchers
$3252. LTC insurance
$300. Pest Control
$752. House Alarm
$1740. TV/Internet/LL
$1704. Electricity
$1920. Water/Sewer/Fire
$600. Gas
$744. Cell
$780. Meds
$1200. Lawn
$600. Monthly House cleaning
$4800. Food, car gas
$1908. Misc
$2600 Vacation
$5760. Car fund

I actually enjoy budgeting and tracking spending. I'm one of those people that if I didn't do that I could spend way too much money.

The best for budgeting is a program called You Need A Budget.

Personal Budget Software - Finance Software for Windows & Mac

There really isn't a way to use it without tracking your spending. Basically you budget each month based upon what you have in hand right then. You can certainly plan for the future but the budget is based upon what you have (no, that doesn't mean you have to spend every penny. You can budget money to categories that won't be spent for months - or years).

If you don't track your spending how do you know if you met your budget and, how, you might want to change that budget going forward. I periodically go through the budget and compare it to the spending and adjust as necessary. I used to perennially under-budget groceries. It was more wishful thinking than reality. So, now I budget more realistically. Conversely, if I have a category that I over-budget to then I can adjust that one down.

Also, looking at spending in comparison to the budget categories can give me good ideas for where I might be able to cut the budget without negatively impacted my lifestyle.

 

[sengsational]

I keep track of spending in a simple Google Documents spreadsheet. My spreadsheet has just 3 columns - Groceries, Gas and Other. I use Google Documents so that DH has access to it from his computer. He has not looked at any of it for over 4 years. I keep track just with receipts, if DH has bought something he leaves the receipt on my desk and I record it in the spreadsheet.

All other categories are fixed amounts paid monthly automatically or one payment that may vary (city utility bill) so I don't need to keep track of ongoing spending in those categories.

At the end of the month I put it all (fixed monthly expenses and the Groceries/Gas/Other totals) together in one spreadsheet along with income and savings. This one just looks like a list with income at the top and totals for the bills and spent categories subtracted. Very easy. I keep a template for this and just plug in the amounts for the month.

I'm the type that ENJOYS doing all this, I know many people think of it as a chore or "work".

I like getting to the end of the month and seeing that income exceeded expenses and that we've saved something for the next rainy day.

I used to enter the transactions for myself and DW, but, unlike you, did find that it was a chore.

About a dozen years ago I "transferred budget responsibility" to the DW for groceries, girly stuff, kid stuff, etc. That meant I transferred enough to cover that budget every month. She actually tracks that spending in a separate copy of the budgeting software (good thing too, since that's like 40% of our spend). I haven't pulled her stuff and merged it in 6 or 8 years, though, hehe.

 

[martyb]

Just a wild guess (see my sig line), but I suspect if you subtract taxes and savings from your earnings figure you'll have good idea of what you spent.

I already know what we spent........all of it!!!

I'm strictly speaking about net income...after taxes, health & dental insurance, all retirement account (pre-tax) contributions, life insurance. I'm figuring that if we're making it on current net income, and net income post retirement is at least the same or more...then it's a lock! Right? Seems pretty scientific to me.

 

[daylatedollarshort]

Also, looking at spending in comparison to the budget categories can give me good ideas for where I might be able to cut the budget without negatively impacted my lifestyle.

This is pretty much my hobby. I got excited when I found out I could buy taco seasoning and gravy mix in bulk at Costco, instead of paying more for the individual packs.

I keep a list of all the expenses we have lowered since DH wanted to retire early. It is a bit scary how many expenses we have cut that we never really needed or don't miss at all.

 

[ABQ2015]

I tracked my expenses for the first time this year for a total of $63K not including taxes, SS and Medicare payments, and savings:

Mortgage/Taxes & Insurance/Utilities: $25K or 39%
House Maintenance, Cleaning, & Lawn Care: $6600 or 10.4%
Groceries and Dining Out: $6300 or 10%
Car Insurance, Gas, Repairs: $3300 or 5.3%
General Health, Drugs, Co-payments, Health Insurance: $6500 or 10.2%
Vacations: $3500 or 5.6%
Clothing: $2600 or 4%
Toiletries, Haircuts, Manicures: $2200 or 3.5%
Gifts & Charity: $2800 or 4.5%
Pets: $2500 or 4%
Misc. Household Expenses: $1900 or 3%

The health category included a fairly expensive exercise bike and the old cats cost me $1400 in medical bills. I have one more house payment so mortgage costs will decrease significantly next year. Items that I hope will decrease in retirement will be utilities, house cleaning, and lawn care when I downsize and have time to do my own housework. I like shopping for clothes so don't see that category as decreasing.

 

[NW-Bound]

I started tracking 5 years before I retired and have just kept doing it. I'm much more interested in keeping track of my net worth. As long as it is in good shape the spending is not that big of a deal.

I have been using Quicken to keep track of expenses for 3 years. Prior to that, I only paid attention to portfolio total, not even net worth. However, with no earned income now, I want to be sure that I stay around 3.5% WR.

With the market doing so well this year, I can see irrational exuberance easily pushing my expenses to the 6 figure if I do not watch out, and that can be bad in future lean years.

It takes no work to use Quicken to automatically download and classify my expenses after the fact, as we pay for everything with our AmEx or credit cards.

 

[grasshopper]

Here is 2013 spending of over 1% of $58k total.

Sent from my Nexus 7 using Early Retirement Forum mobile app

 

[eyeonFI]

Just did my rough approximation for 2013.... (single, 2 kids, pretty high cost area):

Expenses (excludes payroll deductions, i.e. health insurance and taxes):
Total: $56,501

Some of the major categories...
Childcare: $24,804.50
Property Tax: $4,642.53
utilities: $3,500.13
everything else: $23,554.07

Excluding the childcare (which went up a lot this year but should drop a lot in 2015 and even further in 2016), my increase in spending over 2012 was 1.02%

 

[haha]

Scanning these posts, it seems that almost all or all of us are naturally frugal and we don't really want to spend much more than we are already comfortably spending. I know for myself, there are many things I could spend money on that would not increase my satisfaction at all, and might even decrease it. When I had a wife and kids at home, I enjoyed spending some money on them.

Ha

 

[jerome len]

I've worked hard my whole life, my parents saved money.....bought my brother and I each a color TV set years ago while they still watched in Black and white and left me a hefty amount of money for the times when they passed on.

Well, I'm sort of doing the same thing and trying to change. I've made and saved money, paid for my kids college and weddings, have a healthy 401k, assets of a few million, and believe it's about time to enjoy it. Why? my kids spend most of what they make and whatever I leave them, they'll spend.......not foolishly but they'll take nice vacations, buy new cars, switch to newer smart phones,,,,,etc. So, I might as well do the same since I can afford it. Actually, I grew up in a 700 sq ft home, had a paper route and had to pay room and board when I was 12......not complaining because my parents gave me all the money back for a down payment on my 1st home when I got married.......I'm rambling because I worry I'm spending too much but I have it.....spend well under 3% of my net worth each year and seem to constantly be outspent by my peer group. I love "early retirement" blog because so many really smart people give out so many good ideas. .......now, I wonder if I give enough to charity, how much I should leave my kids, grandkids and how much I should help some of my lazy, broke distant relatives. I think kids should be taught a strong work ethic and too much money can destroy the need to work.......I truly respect some of you that live on less than 30k a year but to be honest, I'm glad I don't have to. In closing I worked hard and I'm really lucky.....have my health, a good immediate family and enough money......and, I'm very thankful.

 

[Mulligan]

Scanning these posts, it seems that almost all or all of us are naturally frugal and we don't really want to spend much more than we are already comfortably spending. I know for myself, there are many things I could spend money on that would not increase my satisfaction at all, and might even decrease it. When I had a wife and kids at home, I enjoyed spending some money on them. Ha

I kind of grew into modest frugality over time. Frequent purchasing of cars, clothes, and "toys" have lost their luster to me in relation to the pleasure of saving. I do not deprive myself, but I don't need a sugar high anymore by purchasing things that don't increase "my satisfaction" as you mentioned.

 

[rkser]

About approximately the same as 2012, a paid off house and cars, no debt, son is in college, a few million net worth, am glad and feel blessed I could spend what we spent.

-MINT CATEGORY SPENDING
Total $103,649.46

Kids $22,136.80
Home $15,083.90
Health & Fitness $10,376.61
Auto & Transport $10,147.53
Food & Dining $9,936.28
Taxes $5,247.67
Bills & Utilities $5,247.65
Personal: Care $5,053.81
Travel $4,876.67
Financial $4,734.92
Gifts & Donations $4,727.93
Shopping $2,122.89
Pets $1,722.63
Entertainment $1,610.92
BusinessServices $534.25
Fees & Charges $89.00

 

[W2R]

I kind of grew into modest frugality over time. Frequent purchasing of cars, clothes, and "toys" have lost their luster to me in relation to the pleasure of saving. I do not deprive myself, but I don't need a sugar high anymore by purchasing things that don't increase "my satisfaction" as you mentioned.

I don't know that I'm all that frugal, even. I am just such a rebel, and I really resent being told by Madison Avenue that I need or should have things that I don't even want.

But if there is something that I really want, I'll buy it. The hard part (still) is knowing what I really want. I am learning that part and I am a lot better at it than I was a few years back.

Besides, I spent over $30K this year! So, I guess that is that.

 

[REWahoo]

But if there is something that I really want, I'll buy it. The hard part (still) is knowing what I really want.

Spice Girls - Wannabe - YouTube

 

[W2R]

Spice Girls - Wannabe - YouTube

Well... I WAS thinking about consumer stuff.....

 

[daylatedollarshort]

We just wised up a couple of years ago and realized we would be happier with less stuff and more free time.

I still have a ways to go compared to many people here on spending, but we have been doing some things right in terms of income taxes, ACA subsidies and financial aid.

Today we are researching getting a car for one of the kids. We almost bought a sporty, brand new, all wheel drive vehicle and paid cash. Partly the lower budgets posted here made me rethink that and we are looking at a used, "catastrophically boring", front wheel drive sedan with a .99% Penfed loan instead.

We are still kind of amazed at how much we have been able to cut and not miss. Actually getting rid of expense items like fast food a few times a week has saved money as well as a lifestyle improvement.

 

[Danmar]

I kind of grew into modest frugality over time. Frequent purchasing of cars, clothes, and "toys" have lost their luster to me in relation to the pleasure of saving. I do not deprive myself, but I don't need a sugar high anymore by purchasing things that don't increase "my satisfaction" as you mentioned.

While I respect your point of view, I don't understand how someone can get pleasure from saving in retirement? What is the point? More money left to heirs or charities? You could view this as a worthy goal for sure but having a savings fetish once "you have already won the game" is certainly not something I personally strive for. I certainly agree that spending for spending sake is a waste of money. Maybe you need to find more useful and thus more enjoyable uses of your money? Anyway, a good problem to have I guess.

 

[Amethyst]

I think it is a game for some. "How much less can I pay for this" becomes its own point, instead of "Can I get this for less, because I can't afford full price."

Others may feel they've won the game for now, yet the score may turn against them at some point.

Amethyst

While I respect your point of view, I don't understand how someone can get pleasure from saving in retirement? What is the point [of] having a savings fetish once "you have already won the game" ./QUOTE]

 

[bradaz2488]

For the big ticket items it is kind of a game for me to get the "best deal" for high quality products. I do not sweat the smaller stuff (yet). I am starting to notice the higher monthly costs for Internet, DirecTV and Cell phones. I will probably try to get these cost lower in 2014. I have not resorted to coupon clipping yet ....

 

[Meadbh]

While I respect your point of view, I don't understand how someone can get pleasure from saving in retirement? What is the point? More money left to heirs or charities? You could view this as a worthy goal for sure but having a savings fetish once "you have already won the game" is certainly not something I personally strive for. I certainly agree that spending for spending sake is a waste of money. Maybe you need to find more useful and thus more enjoyable uses of your money? Anyway, a good problem to have I guess.

I don't think Mulligan was describing a "savings fetish", just choosing to spend based on the value of products to him. That certainly resonates with me. If some savings result, that's great. Otherwise, provided that spending stays within the budget, no big worries. One example of value spending has been cutting cable. I did it after I realized that I had not turned on my TV for over 6 months, and I do not miss it at all. Instead, I spent that money on travel. If I can save a little in ER, I intend to sock it away in my TFSA, where I can access it for discretionary use without paying further taxes. It's reassuring for those of us who are not in your financial league to have a little cushion like that.

 

[Danmar]

Others may feel they've won the game for now, yet the score may turn against them at some point.

Amethyst

While I respect your point of view, I don't understand how someone can get pleasure from saving in retirement? What is the point [of] having a savings fetish once "you have already won the game" .

Agree that saving in case you run out in the future could be a valid objective. In fact we are guilty of this . I really hate to sell stock, and haven't ,knowing full well at some point I need to (unless I intend to leave a huge estate). Effectively we are saving.

Another objective might be to save for a future large expenditure like a car or big trip, or to help a child with a house down payment.

But other than this I think some people get pleasure looking at their investment or cash balances and seeing them increase. I am a little guilty of this. Who doesn't like to see their net worth increase? But in my case I don't try to restrict spending to make it happen. Although, I admit that by not spending more than the income from the portfolio, I am effectively saving.

Maybe I am over thinking this, but I am always a little surprised that given improved finances some people just can't think of anything to spend it on. Seems a little defeatist to me. Anyway to each their own.

 

[Danmar]

I don't think Mulligan was describing a "savings fetish", just choosing to spend based on the value of products to him. That certainly resonates with me. If some savings result, that's great. Otherwise, provided that spending stays within the budget, no big worries. One example of value spending has been cutting cable. I did it after I realized that I had not turned on my TV for over 6 months, and I do not miss it at all. Instead, I spent that money on travel. If I can save a little in ER, I intend to sock it away in my TFSA, where I can access it for discretionary use without paying further taxes. It's reassuring for those of us who are not in your financial league to have a little cushion like that. ��

OK fetish might be a little strong. Look don't get me wrong, we would have cut our cable off long before you did. We are constantly working our cable/telco/internet expenses down in our places. If you don't they rip you off.
See my last post but my point is you can only spend it or give it away, saving it (in retirement) just defers the inevitable. Can't take it with you. So why not get some fun out of it while you are still here? If you can't think of any way to do this, kind of sad. Nothing to do with the financial league you play in.

 

[NW-Bound]

What I have found that is that while I have more money, I desire stuff less and less. I have enough toys that should last me a while. Anymore and I run out of place to keep them. And many of the new electronic toys and gadgets do not interest me at all.

We have also become fastidious. When eating out, we often noted how something was not to our liking, that we could have done the same dish better at home because we enjoy cooking. We become harder to please as we age.

Of course if we went to higher-tiered restaurants, the experience would be different, but we are not rich to do that too often, plus doing that more often then it becomes old-hat and the joy is diminished.

 

[F4mandolin]

Wasn't there somebody on here a couple years ago who only spent $800+ TOTAL for the year on food? That set off some people questioning how they could do that. I'm still not sure how they did it.

 

[Meadbh]

OK fetish might be a little strong. Look don't get me wrong, we would have cut our cable off long before you did. We are constantly working our cable/telco/internet expenses down in our places. If you don't they rip you off.
See my last post but my point is you can only spend it or give it away, saving it (in retirement) just defers the inevitable. Can't take it with you. So why not get some fun out of it while you are still here? If you can't think of any way to do this, kind of sad. Nothing to do with the financial league you play in.

I agree. But there are some people who derive their enjoyment from watching their NW grow (my mother with two pensions) or enjoy giving it away (my grandmother). I would say that my mother got a little irrational about it. When she became ill and needed home care, she didn't want to spend the money because she was "saving for a rainy day". I informed her that it was pouring!