2018 Spending Summary and Analysis
- Thread starter W2R
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FANOFJESUS
Thinks s/he gets paid by the post
Here I thought W2R was the LBYM queen (King).
Nothing on entertainment or travel?
No traveling most years. Some netflix and forums for entertainment. I guess you might say we are homebodies. We are just happy to be at home.
youbet
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+1
For us, state and fed income taxes were roughly one third of our total spending and our largest category. A significant part of our taxes is caused by our annual RMD's. We move the money, as required, from our IRA's to our joint brokerage account and have fed income tax withheld. So far, we haven't spent any of the net amount, but we do classify the tax portion as "spending."
DW and I live in Midwest and spent a little over $60,000 with no mortgage, no car payments, $5K property tax, $5K vacation. It is what we expect for this stage of our lives, so luckily no surprises. We did decide to drop a cable box costing us $7.50/month today, so we're off to a good start for the new year 
Dtail
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And that's all that counts in the end.
Today for example it is 82 outside, but we are just lazying around scooping up movies.
SecondCor521
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As a percentage of overall spending:
If I strip out college, kids, recreation, charity, and Christmas - on the premise that those expenses are optional and/or mostly ending within the next year or so - my bare bones living expenses are just under $19K annually.
Single, 49, FIREd, LCOL, paid off house and car.
Someone mentioned taxes. When I was working, taxes were my single largest expense by far. With my living situation now, I don't pay much if any federal or state income taxes.
| College | 47.29% | Three kids in private high school and college |
| Kids | 19.16% | Child support mostly, plus anything other than education |
| Recreation | 7.72% | Vacations, golf, bridge, anything spent on fun |
| Food | 6.63% | Includes groceries and eating out |
| Insurance | 5.42% | Medical, auto, home, etc. |
| Utilities | 4.36% | Gas, water, trash, electric, etc. |
| Auto | 3.35% | Maintenance, repair, gas, etc. |
| House | 2.32% | Maintenance, repair, property taxes, etc. |
| Medical | 1.56% | OOP medical costs |
| Charity | 0.77% | |
| Misc | 0.70% | Mostly bank charges related to credit card games |
| Pets | 0.36% | One cat |
| Christmas | 0.23% | |
| Clothing | 0.11% |
If I strip out college, kids, recreation, charity, and Christmas - on the premise that those expenses are optional and/or mostly ending within the next year or so - my bare bones living expenses are just under $19K annually.
Single, 49, FIREd, LCOL, paid off house and car.
Someone mentioned taxes. When I was working, taxes were my single largest expense by far. With my living situation now, I don't pay much if any federal or state income taxes.
Sunset
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My point of not including taxes is it would be misleading.
We do roth conversions, which is not spending a penny, so we pay extra tax which we count in our private numbers, but posting on public boards could mislead folks into thinking taxes are super high in retirement.
We do roth conversions, which is not spending a penny, so we pay extra tax which we count in our private numbers, but posting on public boards could mislead folks into thinking taxes are super high in retirement.
dunkelblau
Recycles dryer sheets
I think for purposes of comparison, on this board the proper reference frame isn't what others spend, or what I spent last year, or my objectives-- it's the ratio to income that matters, right? Relative to W2 topline and averaged over the past five years, my expenses were:
31% income taxes
8% rent
4% gifts to family
2% everything else
So it looks like a 45% burn rate. I averaged over five years because my income taxes fluctuate a lot due to the timing of capital gains (like that unfortunate case from last week). The other stuff was stable except for rent which has been rising 5% per year.
I think I'm doing OK on the LBYM part, but maybe it's time to buy a primary residence. Condos equivalent to my apartment run for ~15x gross annual rent, and cost of ownership including property tax, insurance, HOA dues, and maintenance should total about half my rent. Pluses and minuses though, available units aren't as well-located so it'd become a long hike to shopping and restaurants, but it would be nice to have my own washer and dryer. And listing prices have been rising faster than rent around here...
31% income taxes
8% rent
4% gifts to family
2% everything else
So it looks like a 45% burn rate. I averaged over five years because my income taxes fluctuate a lot due to the timing of capital gains (like that unfortunate case from last week). The other stuff was stable except for rent which has been rising 5% per year.
I think I'm doing OK on the LBYM part, but maybe it's time to buy a primary residence. Condos equivalent to my apartment run for ~15x gross annual rent, and cost of ownership including property tax, insurance, HOA dues, and maintenance should total about half my rent. Pluses and minuses though, available units aren't as well-located so it'd become a long hike to shopping and restaurants, but it would be nice to have my own washer and dryer. And listing prices have been rising faster than rent around here...
bigcmagor
Recycles dryer sheets
| Houses -prop tax, maintenance, improvements | $27,400 |
| Charity, gifts | $22,700 |
| Food, dining | $19,500 |
| Travel, entertainment | $15,600 |
| Utilities, Cellular | $9,300 |
| Insurance | $8,700 |
| Medical | $8,600 |
| Pets | $7,000 |
| Boats | $7,000 |
| Vices | $7,000 |
| Auto | $3,800 |
| Clothing | $3,400 |
| Personal care | $2,500 |
| Gym | $1,100 |
| Total | $143,600 |
NW-Bound
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Credit card companies usually post the charges into our accounts the day after they are incurred. Quicken downloads them for me as I hit "download all" each day. Easy peasy. It's not that I spend each day, but I want to be aware of any mischarge or fraudulent activity.
Teacher Terry
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60k budget and extra 10k for 2 big vacations.
bbbamI
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Since I have 33 categories on my budget spreadsheet, I'll spare everyone and just post the withdrawal rates since retirement. The actual WR is for all expenses; from marshmallows to taxes.
Both retired in 2009. At the time dh was 54 and yours truly 51. DH receives a small non cola'd pension. The WR is based on the portfolio balance at the beginning of each year.
2009 Projected WR.....0 (dh worked part of that year, we had to take no reserves)
2010 Projected WR....3%......Actual 2.71%
2011 Projected WR....3%......Actual 3.27% (health issues)
2012 Projected WR....3%......Actual 2.87%
2013 Projected WR....3.5%...Actual 4.94% (new car)
2014 Projected WR....3.5%...Actual 2.68%
2015 Projected WR....3.5%...Actual 3.57%
2016 Projected WR....3%......Actual 2.01% (dh started SS in June)
2017 Projected WR....3%......Actual 1.5%
2018 Projected WR....3%......Actual 4.1% (blow that dough)
2019 Projected WR....3%
I like to stay under 3% each year, but will not panic if we spend more. Each year brings new 'surprises'....gotta roll with it.
Both retired in 2009. At the time dh was 54 and yours truly 51. DH receives a small non cola'd pension. The WR is based on the portfolio balance at the beginning of each year.
2009 Projected WR.....0 (dh worked part of that year, we had to take no reserves)
2010 Projected WR....3%......Actual 2.71%
2011 Projected WR....3%......Actual 3.27% (health issues)
2012 Projected WR....3%......Actual 2.87%
2013 Projected WR....3.5%...Actual 4.94% (new car)
2014 Projected WR....3.5%...Actual 2.68%
2015 Projected WR....3.5%...Actual 3.57%
2016 Projected WR....3%......Actual 2.01% (dh started SS in June)
2017 Projected WR....3%......Actual 1.5%
2018 Projected WR....3%......Actual 4.1% (blow that dough)
2019 Projected WR....3%
I like to stay under 3% each year, but will not panic if we spend more. Each year brings new 'surprises'....gotta roll with it.
Last edited:
scrabbler1
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I don't keep track of nearly as many categories a some of the rest of you. I do keep track of some broad categories and a few sub-categories within them. I haven't yet done all the work on my expense summary spreadsheet and worksheet but I have a few quick-and-dirty general percentages.
Housing expenses, meaning the total of my monthly co-op maintenance payments reduced by any property tax rebates is about 21% of my total expenses.
Medical expenses, including the ACA subsidy I have to give back because I went "over the cliff" this week is about 28% of my total expenses.
Income taxes spiked this year due to the huge cap gains distribution which threw me over the aforementioned cliff. They rose to 23% of my expenses. In my budgeting, I include only a basic level of income taxes based on the reliable monthly and quarterly dividends. If my income spikes because of unexpected cap gain distributions, I am not really concerned about being unable to cover the taxes because they will simply come out of the added income. Had that monster CG distribution not occurred, my income taxes would have been only 10% of my reduced income.
The rest of my expenses are about 28% of my total expenses. Those include utilities, groceries, home+auto insurance, and everything else. I do break much of it down in my finished spreadsheet.
Housing expenses, meaning the total of my monthly co-op maintenance payments reduced by any property tax rebates is about 21% of my total expenses.
Medical expenses, including the ACA subsidy I have to give back because I went "over the cliff" this week is about 28% of my total expenses.
Income taxes spiked this year due to the huge cap gains distribution which threw me over the aforementioned cliff. They rose to 23% of my expenses. In my budgeting, I include only a basic level of income taxes based on the reliable monthly and quarterly dividends. If my income spikes because of unexpected cap gain distributions, I am not really concerned about being unable to cover the taxes because they will simply come out of the added income. Had that monster CG distribution not occurred, my income taxes would have been only 10% of my reduced income.
The rest of my expenses are about 28% of my total expenses. Those include utilities, groceries, home+auto insurance, and everything else. I do break much of it down in my finished spreadsheet.
Morricol61
Recycles dryer sheets
Well this is embarrassing. We budgeted $34,000 for the year for the two of us.
This year's unbudgeted expenditure included $20K for a new car and over $7K for renovations / repairs to our rental property, which we are planning to move into ourselves in 2019.
Offsetting this year's expenses was $6200 received from selling our old car.
Hopefully next year will be better. Apologies for the column of figures, I cut and pasted a table but it didn't work out, just like our budget.
Description ............................. AU$
Petrol (motor cars & lawn mowers) 4530
personal spending (both of us) 3000
clothing 497
mobile phones (2) 360
internet 753
eating out 1830
vehicle registrations (2 cars, caravan & golf buggy trailer)
2770
sewerage rates 240
council rates 2275
water rates 450
house & contents insurance 1250
home maintenance & repairs 3420
vehicle insurances 2628
vehicle service and maintenance 2841
gifts 755
health (eyes, teeth, medications, doctors)
2206
hairdresser 110
dog (council registration & veterinary) 528
LP Gas for cooking (BBQ & stove) 135
groceries 5332
travel 5094
new car purchase 20000
rental property expenses (council rates, water and sewerage rates, insurance and repairs) 10953
Total $71957
This year's unbudgeted expenditure included $20K for a new car and over $7K for renovations / repairs to our rental property, which we are planning to move into ourselves in 2019.
Offsetting this year's expenses was $6200 received from selling our old car.
Hopefully next year will be better. Apologies for the column of figures, I cut and pasted a table but it didn't work out, just like our budget.
Description ............................. AU$
Petrol (motor cars & lawn mowers) 4530
personal spending (both of us) 3000
clothing 497
mobile phones (2) 360
internet 753
eating out 1830
vehicle registrations (2 cars, caravan & golf buggy trailer)
2770
sewerage rates 240
council rates 2275
water rates 450
house & contents insurance 1250
home maintenance & repairs 3420
vehicle insurances 2628
vehicle service and maintenance 2841
gifts 755
health (eyes, teeth, medications, doctors)
2206
hairdresser 110
dog (council registration & veterinary) 528
LP Gas for cooking (BBQ & stove) 135
groceries 5332
travel 5094
new car purchase 20000
rental property expenses (council rates, water and sewerage rates, insurance and repairs) 10953
Total $71957
Last edited:
lemming
Full time employment: Posting here.
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Home $7,889
Interest $3,138
Principal $3,843
Utilities $1,391
Groceries $2,802
Technology $1,556
Health/medical $2,118
Transportation $1,688
Self care $366
Shopping $939
Donations $1,967
Restaurant $1,704
Taxes $2,626
Entertainment /travel $701
Totals 31,979
Better then I had budgeted but I did not do some things I intended to do. A car purchase is in my near future. I will have cataract surgery next year. And I expect dental expenses. I break out mortgage P&I from house. I only include food in groceries-other stuff is in shopping.
Interest $3,138
Principal $3,843
Utilities $1,391
Groceries $2,802
Technology $1,556
Health/medical $2,118
Transportation $1,688
Self care $366
Shopping $939
Donations $1,967
Restaurant $1,704
Taxes $2,626
Entertainment /travel $701
Totals 31,979
Better then I had budgeted but I did not do some things I intended to do. A car purchase is in my near future. I will have cataract surgery next year. And I expect dental expenses. I break out mortgage P&I from house. I only include food in groceries-other stuff is in shopping.
audreyh1
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Up quite a bit from last year. I’m pretty sure we exceeded our budget, which is OK since we had unspent funds left over from last year.
Won’t know details for a couple of weeks though until all credit card statements are in.
Won’t know details for a couple of weeks though until all credit card statements are in.
Almost 2% above planned annual spending.
But 2017 was almost 13% below plan, so I'm not concerned. I keep track of the differences in a "slush fund" column of the spreadsheet, and that still has a healthy balance in it.
But 2017 was almost 13% below plan, so I'm not concerned. I keep track of the differences in a "slush fund" column of the spreadsheet, and that still has a healthy balance in it.
ivinsfan
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JMO but you shouldn't include rental property expenses in your budget...
UtahSkier
Recycles dryer sheets
I track everything in Quicken. Here is a report.
Medical is high cause DW broke her shoulder and required ER visit and surgery. Insurance is low because of ACA subsidy. Annual Budget is $130K.
3rd year of fire, 56 and 57 yo.
Spending by Category - Current Year
Medical is high cause DW broke her shoulder and required ER visit and surgery. Insurance is low because of ACA subsidy. Annual Budget is $130K.
3rd year of fire, 56 and 57 yo.
Spending by Category - Current Year
| Auto | 5,504.73 |
| Auto:Fuel | 1,897.37 |
| Auto:Insurance | 830 |
| Auto:Registration | 355.5 |
| Auto:Service | 2,421.86 |
| Bank Charge | 35 |
| Beauty | 2,824.08 |
| Cash | 1,881.00 |
| Dining | 7,809.88 |
| Entertainment | 3,880.27 |
| Entertainment:General | 2,359.31 |
| Entertainment:Hobby | 399.07 |
| Entertainment:Home Theater | 1,121.89 |
| Fitness | 7,716.55 |
| Fitness:Biking | 2,394.17 |
| Fitness:General | 578.8 |
| Fitness:Gym | 559.43 |
| Fitness:Skiing | 4,184.15 |
| Groceries | 18,958.01 |
| Groceries:General | 15,159.53 |
| Groceries:Spirits | 3,798.48 |
| Home Expenses | 9,217.81 |
| Home Expenses:Association Fees | 900 |
| Home Expenses:Home Improvement | 2,168.27 |
| Home Expenses:Misc | 3,476.41 |
| Home Expenses:Repair | 2,673.13 |
| Insurance | 1,193.33 |
| Insurance:Health Insurance | 352.33 |
| Insurance:Home Insurance | 397 |
| Insurance:Umbrella | 444 |
| Medical | 11,990.56 |
| Medical:Chiropractor | 39 |
| Medical: Dental | 535 |
| Medical: Doctor | 8,439.32 |
| Medical:Labwork | 610.53 |
| Medical:Medicine | 1,350.83 |
| Medicalhysical Therapy | 188.95 |
| Medical:Vision | 826.93 |
| Motorhome | 11,172.05 |
| Motorhome:Improvement | 1,404.08 |
| Motorhome:Insurance | 341 |
| Motorhome:License | 1,723.75 |
| Motorhome:Service | 4,225.72 |
| Motorhome:Storage | 3,477.50 |
| Pets | 2,175.68 |
| Pets:Grooming | 645.59 |
| Pets:Supplies | 463.04 |
| Pets:Vet | 1,067.05 |
| Software and Computers | 171.32 |
| Tax | 5,045.88 |
| Taxroperty | 2,395.88 |
| Tax:State | 2,650.00 |
| Utilities | 6,403.55 |
| Utilities:Cable TV | 801.13 |
| Utilities:Electric | 2,031.49 |
| Utilities:Garbage & Recycling | 180.48 |
| Utilities:Gas | 628 |
| Utilities:Internet | 381.61 |
| Utilities:Mail Box | 290 |
| Utilities: Fire Dept | 29.68 |
| Utilities:Telephone | 1,482.16 |
| Utilities:Water | 579 |
| Vacation | 20,295.88 |
| Vacation:Activity | 3,131.79 |
| Vacation:Campground Fee | 7,148.52 |
| Vacation:Fuel | 2,699.68 |
| Vacation:Internet | 400 |
| Vacation:Lodging | 3,802.24 |
| Vacation:Travel | 3,113.65 |
| OVERALL TOTAL | 116,275.58 |
Golden sunsets
Thinks s/he gets paid by the post
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We came in 7.2% under budget giving us a nice comfy cushion. We spent less in 2018 than in any year since 2010, despite the fact that we spent more on travel than usual, painted the house and did two other major home improvement projects in 2018. I don't know why this happened exactly, but think it may have something to do with the fact that 2018 was my first year of retirement. Our WR will be something well shy of 1% of our assets at the beginning of the year. Guess we'll have to join the Blow that Dough thread in 2019.
Golden sunsets
Thinks s/he gets paid by the post
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I track everything in Quicken. Here is a report.
Medical is high cause DW broke her shoulder and required ER visit and surgery. Insurance is low because of ACA subsidy. Annual Budget is $130K.
3rd year of fire, 56 and 57 yo.
Spending by Category - Current Year
Auto 5,504.73 Auto:Fuel 1,897.37 Auto:Insurance 830 Auto:Registration 355.5 Auto:Service 2,421.86 Bank Charge 35 Beauty 2,824.08 Cash 1,881.00 Dining 7,809.88 Entertainment 3,880.27 Entertainment:General 2,359.31 Entertainment:Hobby 399.07 Entertainment:Home Theater 1,121.89 Fitness 7,716.55 Fitness:Biking 2,394.17 Fitness:General 578.8 Fitness:Gym 559.43 Fitness:Skiing 4,184.15 Groceries 18,958.01 Groceries:General 15,159.53 Groceries:Spirits 3,798.48 Home Expenses 9,217.81 Home Expenses:Association Fees 900 Home Expenses:Home Improvement 2,168.27 Home Expenses:Misc 3,476.41 Home Expenses:Repair 2,673.13 Insurance 1,193.33 Insurance:Health Insurance 352.33 Insurance:Home Insurance 397 Insurance:Umbrella 444 Medical 11,990.56 Medical:Chiropractor 39 Medical: Dental 535 Medical: Doctor 8,439.32 Medical:Labwork 610.53 Medical:Medicine 1,350.83 Medical 188.95 Medical:Vision 826.93 Motorhome 11,172.05 Motorhome:Improvement 1,404.08 Motorhome:Insurance 341 Motorhome:License 1,723.75 Motorhome:Service 4,225.72 Motorhome:Storage 3,477.50 Pets 2,175.68 Pets:Grooming 645.59 Pets:Supplies 463.04 Pets:Vet 1,067.05 Software and Computers 171.32 Tax 5,045.88 Tax 2,395.88 Tax:State 2,650.00 Utilities 6,403.55 Utilities:Cable TV 801.13 Utilities:Electric 2,031.49 Utilities:Garbage & Recycling 180.48 Utilities:Gas 628 Utilities:Internet 381.61 Utilities:Mail Box 290 Utilities: Fire Dept 29.68 Utilities:Telephone 1,482.16 Utilities:Water 579 Vacation 20,295.88 Vacation:Activity 3,131.79 Vacation:Campground Fee 7,148.52 Vacation:Fuel 2,699.68 Vacation:Internet 400 Vacation:Lodging 3,802.24 Vacation:Travel 3,113.65 OVERALL TOTAL 116,275.58
Wow Utah. That's a lot of $$ on groceries. How many members of your family?
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I was drawn to the RV stuff...how many days was that?
UtahSkier
Recycles dryer sheets
While looking at my shoes... Just DW and I.
I categorize items from Walmart and Costco as Groceries. I try to move household items (like an Instapot) into the appropriate category. So, I think this number is pretty accurate. The credit cards tell no lies
The grocery and alcohol numbers are consistent over the years and are budgeted as such.. This year's grocery spending was $429 over budget. The spirts category is a bit over budget as we have started stocking a small wine cellar.
At least I know where to cut in a severe downturn!
RetireAge50
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While looking at my shoes... Just DW and I.
I categorize items from Walmart and Costco as Groceries. I try to move household items (like an Instapot) into the appropriate category. So, I think this number is pretty accurate. The credit cards tell no lies
The grocery and alcohol numbers are consistent over the years and are budgeted as such.. This year's grocery spending was $429 over budget. The spirts category is a bit over budget as we have started stocking a small wine cellar.
At least I know where to cut in a severe downturn!
No worries. It takes a lot of fuel (groceries) when you are skiing and being active.
UtahSkier
Recycles dryer sheets
2 Weeks in April (Moab and Southern Utah). 5 Weeks in May and June (Idaho and Wyoming). And 7 Weeks in Sept and Oct (Colorado and New Mexico).
The motorhome category is for expenses that are incurred whether the MH is being used or not. I have done a lot of pre-emptive maintenance the past 2 years and the MH category has been around $25K. I am glad to see this number finally come down.
The vacation category includes the actual use spending. This is shown by the fuel and campground expenses.
