2019 Spending Summary and Analysis

[brett]

I do a monthly bank tape on monthly after tax spending. And then a year end total.

Takes all of five minutes a month. We do not care whether it is clothing, dentist, food, or travel. The only number we care about or want to know is the bottom line number. We use it to estimate how much over pension income we need to draw from investments,etc. to cover our next years expenses.

 

[finnski1]

I don't have detailed spending breakdown (single, in early 40s, work full-time and remotely, renting cheaply, only did bugeting 3 out of 12 months in 2019).

Total annual spending for 2019 was $9000. Pre-tax saving rate is above 92%.

What surprised me is this my 2019 net worth growth equals 1.5x of my income. I know it is likely overvalued but my investment (mostly in total/sp500 index) had a very good year.

Then I took my car for inspection yesterday and it requires $2k of repair which means I am looking at $11k total spending in 2020 if everything in the next 363 days goes similarly to that in 2019.

Wow! $9000 annual with a 92% savings rate!
I can't imagine that
It is interesting to see the huge range of spending on here.
9k to well over 250k and more (not counting CORN18)

Wife and I only spend about 40k on average ,paid off house,no debts.
etc.
This year ran up to $47,482 but included an $8100 used but like new camper purchase and brand new car (2019 subaru outback)loan.


Groceries: $4585
dentist: $2699
vet: $2401
hospital: $1891
home depot $3678
car fuel: $1648
car maint: $1700
insurance $2100
internet/land line $964
electricity $824
heating oil $1921
new car payments $3163
cell plans $345
re taxes $4400
pet food $450
cash w/d $1526
camper $8100




plus a few other odds and ends

 

[sengsational]

Travel expenses doubled from 2018 to 2019, for example, but if I break my travel spending down to YEAR of travel, I can see that travel in 2019 is up 25% over travel in 2018. What happened this year is that I've already paid for an expensive trip I'm taking next year and put up a $750 deposit with my favorite cruise line which will probably be used in 2021.

I'm guessing that the rest of my travel in 2020 won't add up to what I spent for travel in 2019, or at least won't be up 25%. As long as I can keep my withdrawal rate at my target of 3.5% it doesn't matter.

With travel, I actually do a separate exercise. For those of you who think tracking expenses is a waste of time, you'll think I'm really loonie tunes, but I come up with a $ per person-day on my travel. I even split it (roughly) by transportation, lodging, food, and entertainment. The split is rough because how do you split a bill from the cruise ship company? But in other trips, it breaks-down more easily. From my transaction system, I export a report into Excel and put in the start/end dates, person count, and do that rough split. I have a template, so it takes about 10 minutes per trip, so not highly time-consuming. But I know that a river cruise vacation was over 3X the per-day cost of my average vacation. Was it 200% more fun/fulfilling/etc than my average trip? Nope. Not planning on another of those. Another trip I "blew the dough" and went for business-class airfare. Also was 3X the per-day cost of my average vacation. Was it 200% more fun/fulfilling/etc than my average trip? Well, considering it was the only reason DW agreed to the trip, I'd have to say yes (not too much fun for me to travel alone). That trip, the transportation was 75% of the total, whereas with air trips, it's usually around 35%.

 

[Dtail]

I really don't see the point in tracking every nickel, even after reading the responses. No offense to those that do detailed budget tracking, just not my way.
I do a snap shot budget every couple years or if considering a change. I do watch overall cash flows but estimate most of the rest based on the snap shots and general reasoning.
Just doubt I'd make changes by noting something like my incidentals expenses are increasing higher than my overall inflation, better buy cheaper toilet paper. Easier to stay as frugal as reasonable all the time.

Curious if you will, is your WR% lower than 2%?

 

[grasshopper]

We track our spending pretty closely, but we have no budget. 14 years retired now it is plain to see how our spending has evolved. I told Ms G that we could ramp up the spending another $30K a year and her answer was that we buy what we want anyway, what else is there. Huh I had to agree.

 

[Teacher Terry]

We take our spending allowances in cash and we don’t keep track of what we spent it on. No reason to.

 

[rodi]

Given that some people include some stuff and others don't... I came up with two numbers.

With everything.... (Taxes, new cars, kids college)
$135,823.

Biggest line items -
auto (everything but insurance) $21k. That's because we sold an older 4x4 pickup and bought a new rav4 for DH... and in the week in between this transaction DH was broadsided in his 24 year old truck that is mostly used by youngest son... So we chose to buy a replacement beater truck. Actually got a newer truck for less than insurance paid out on the old one.

Vacation was $21k - 3 week trip to southern Italy for a family of 4 plus we covered lodging for my sister who joined us - since one extra person in a vacation rental isn't really worth breaking out and billing for.

Older son started college - so first semester charges for tuition and dorms - and 2nd semester tuition was due in 2019 - so that was included. Education total was $19611.

Groceries were $11839.
Insurance (auto, home, umbrella cars) $14425


But if you take out car purchases, and (payments for sold cars, and totalled cars), and take out tuition/dorm it's a more reasonable number... (although not what we actually spent....
$83670.74.

Note - I included taxes in both - because they are something we spent money on - and will every year...

Withdrawal from portfolio was higher this past year if based on original portfolio value - $3.7%

But withdrawal from start of year portfolio value was $3.4%. And the same withdrawal planned for this year is around 3% because of portfolio increase.

We all know withdrawal and spending are not the same... we have DH's SS, my micro pensions, and rental income...

 

[Gumby]

Given that some people include some stuff and others don't... I came up with two numbers.

With everything.... (Taxes, new cars, kids college)
$135,823.

...

OK, you've shamed me into it, rodi. All in, including state and federal income taxes, our spending was $172k in 2019. What can I say? We are just profligate.

 

[Kelor]

I've almost finished filling out everything on Fidelity full view for 2019. Primarily because I haven't yet retired, if you add income taxes to my spending, nearly 75% of my expenses in 2019 were taxes. Take away 3 sizable gifts and a car purchase, and it's 90%. My God.

 

[Lagniappe]

Part of the reason I track spending is to help me understand where I have opportunities to spend more or less.


2019 was quite a spending year for me - I fixed up and sold a house, bought a condo and all new appliances, moved, and spent 4 months traveling in Europe, including lots of shopping, operas in Vienna, West End shows in London, Michelin restaurants in Venice, etc. I set aside $6K for my next car, and helped a family member with expenses. I thought I was really blowing that dough!


It turns out that I had a net 1.5% withdrawal rate. How in the world did that happen Did I calculate something wrong? For me, it was important to know that I am not spending more than I think I am. I felt like I was spending a lot, but the overall numbers said I wasn't.



That's where the tracking comes in handy. I paid for some of my 2019 travel in 2018, stayed in Airbnb's, used miles for my business class transatlantic flight, got a big tax refund from 2018 (my last year working), and things like property taxes, utilities and HOA's went down once I moved.



I am not counting paying cash for my new place when I used to have a mortgage; I treat this as moving money from one pocket (investment portfolio) to another (home asset) and was about 6% of my portfolio. The lack of a mortgage was also part of why I had such an otherwise low withdrawal rate.



2020 should be a little closer to a normal run rate, and I feel comfortable that I can do more renovations on the condo, travel, and generally enjoy life without stressing about SWR's.

 

[teetee]

This year ran up to $47,482 but included an $8100 used but like new camper purchase and brand new car (2019 subaru outback)loan.

Groceries: $4585
dentist: $2699
vet: $2401
hospital: $1891
home depot $3678
car fuel: $1648
car maint: $1700
insurance $2100
internet/land line $964
electricity $824
heating oil $1921
new car payments $3163
cell plans $345
re taxes $4400
pet food $450
cash w/d $1526
camper $8100

plus a few other odds and ends

My groceries (including dining out) is less than 2.5k in 2019.

I did not spend on dentist, vet, home depot, internet/land line, car payment, cell plans, re taxes, pet food, cash w/d, camper(~28k saved).



It has its merit for not owning a house with no hospital visits, no pets, no debt, and no camper. My Internet/cell phone plans are reimbursed by the company I work for. As matter of fact, your spending per person would be similar to mine (9k) by deducting 28k mentioned above and dividing by two.



My utilities and rent combined (I do handyman work for the house owner) for 2019 is around $5k. The rest spending included car fuel (~350), car insurance (~450), 2 oil changes and minor car parts (100) before a few hundred dollars of non-essential spending.


I am sure that camper is a good deal. The lightweight / popup travel trailers are at least above 15k buying new. It will be several years before I can graduate from tent/car camping to a camper. I am planning to work at least 8 more years and see if I feel comfortable to retire so right now I am focusing on increasing income and reducing spending.

 

[aaronc879]

Wow! $9000 annual with a 92% savings rate!
I can't imagine that
It is interesting to see the huge range of spending on here.
9k to well over 250k and more (not counting CORN18)

If my mortgage was paid off I would have been just under $10K in 2019. I'm low income though so nowhere near 92% savings rate. That's impressive to have such a large income and still spend so little. Certainly nothing wrong with spending 6-figures if you can afford. Personally, I wouldn't have worked nearly long enough to be able to spend that much every year in retirement. Spending less than $10K/yr shouldn't be such a shock since there are millions who do it every year. Mostly out of necessity though.

 

[finnski1]

My groceries (including dining out) is less than 2.5k in 2019.

I did not spend on dentist, vet, home depot, internet/land line, car payment, cell plans, re taxes, pet food, cash w/d, camper(~28k saved).



It has its merit for not owning a house with no hospital visits, no pets, no debt, and no camper. My Internet/cell phone plans are reimbursed by the company I work for. As matter of fact, your spending per person would be similar to mine (9k) by deducting 28k mentioned above and dividing by two.



My utilities and rent combined (I do handyman work for the house owner) for 2019 is around $5k. The rest spending included car fuel (~350), car insurance (~450), 2 oil changes and minor car parts (100) before a few hundred dollars of non-essential spending.


I am sure that camper is a good deal. The lightweight / popup travel trailers are at least above 15k buying new. It will be several years before I can graduate from tent/car camping to a camper. I am planning to work at least 8 more years and see if I feel comfortable to retire so right now I am focusing on increasing income and reducing spending.

We were tent/car campers all our life.now in our 60's we appreciate getting off the ground a bit. It is an ALiner Classic folding A frame with no canvas to mold etc. New are around 16-18 thousand, got a great deal on a used one in like new condition that was in storage for the last 3 years. This is a one time purchase so not part of normal yearly budget.


New car loan: we purchased anew Subaru Outback to replace our 14 year old Subaru Outback so again another budget item not normally there.


Dentist was high this year. one crown was $1800 plus normal cleanings etc.
Long retired so no employer providing internet/cell use.
Veterinarian was high this year as beloved dog passed away in October and had end of life expenses.
Real estate taxes cannot do anything about(we love where we live )and heat /electricity add to about $7145 yearly which is almost equivalent to your rent/utilities.


Home depot was high, we are completely redoing downstairs bath and do all our own work.
Cash w/d: only about 3-4% of total. Things like takeout pizza, pay for haircuts etc. You don't use any cash at all? the rest goes on Visa or automatic payments from checking account.
Pet food: yeah well we are dog people and is a small price to pay for the joy and companionship we receive.



I bore you with all these answers not to justify our spending but to sort of explain them in general.
The typical $38-$40k we yearly spend is very minimal to our means and we just don't need to spend much more.


My original response was simply more of a compliment to your tremendous saving rate and minimal spending.

 

[finnski1]

If my mortgage was paid off I would have been just under $10K in 2019. I'm low income though so nowhere near 92% savings rate. That's impressive to have such a large income and still spend so little. Certainly nothing wrong with spending 6-figures if you can afford. Personally, I wouldn't have worked nearly long enough to be able to spend that much every year in retirement. Spending less than $10K/yr shouldn't be such a shock since there are millions who do it every year. Mostly out of necessity though.

You are correct , I was only stating my amazement of the discipline to do that, not that it couldn't be done and is by many out of necessity.
I am impressed but obviously couldn't do that in my present situation as a homeowner and married couple. Nor do I want to.
Kudos to both of you!

 

[teetee]

We were tent/car campers all our life.now in our 60's we appreciate getting off the ground a bit. It is an ALiner Classic folding A frame with no canvas to mold etc. New are around 16-18 thousand, got a great deal on a used one in like new condition that was in storage for the last 3 years. This is a one time purchase so not part of normal yearly budget.


New car loan: we purchased anew Subaru Outback to replace our 14 year old Subaru Outback so again another budget item not normally there.


Dentist was high this year. one crown was $1800 plus normal cleanings etc.
Long retired so no employer providing internet/cell use.
Veterinarian was high this year as beloved dog passed away in October and had end of life expenses.
Real estate taxes cannot do anything about(we love where we live )and heat /electricity add to about $7145 yearly which is almost equivalent to your rent/utilities.


Home depot was high, we are completely redoing downstairs bath and do all our own work.
Cash w/d: only about 3-4% of total. Things like takeout pizza, pay for haircuts etc. You don't use any cash at all? the rest goes on Visa or automatic payments from checking account.
Pet food: yeah well we are dog people and is a small price to pay for the joy and companionship we receive.



I bore you with all these answers not to justify our spending but to sort of explain them in general.
The typical $38-$40k we yearly spend is very minimal to our means and we just don't need to spend much more.


My original response was simply more of a compliment to your tremendous saving rate and minimal spending.

I withdrew cash only for traveling. In 2019 I did business travel 5 times and no personal travel so all traveling expenses (cash plus credit card) were reimbursed.

Enjoy all the camping advantures with the new ALiner camper. It is on my list of future camper purchase after I became a fan of the slim potatohead YouTube channel.

Sorry to hear about your dog's passing. Losing a family member is always a sad thing.

 

[jkern]

Typical year for me. These expenses are for me only, my wife mostly keeps hers separate.

Essentials:

Property Tax: $6,375
Property Insurance: $1,120
HOA: $675
Home Maintenance: $1,850

Food: $3,835
Utilities: $5,050
Medical/Dental: $5,200

Auto Insurance: $925
Auto Maintenance: $1,850
Auto Registration: $400
Gas: $1,955

Total for Essentials: $29,235

Routine Spending:

Travel: $4,065
Golf: $4,610
Entertainment: $4,200
Gifts: $1,690
Clothes: $220
Miscellaneous: $1,800

Non-Routine Spending (new and replacement type purchases): $6,200

Total Non-Essential Spending: $22,785

Total Cost of Living (not including taxes): $52,020

 

[finnski1]

I withdrew cash only for traveling. In 2019 I did business travel 5 times and no personal travel so all traveling expenses (cash plus credit card) were reimbursed.

Enjoy all the camping advantures with the new ALiner camper. It is on my list of future camper purchase after I became a fan of the slim potatohead YouTube channel.

Sorry to hear about your dog's passing. Losing a family member is always a sad thing.

Yes. Slim Potatohead is great

 

[aja8888]

Typical year for me. These expenses are for me only, my wife mostly keeps hers separate.

Essentials:

Property Tax: $6,375
Property Insurance: $1,120
HOA: $675
Home Maintenance: $1,850

Food: $3,835
Utilities: $5,050
Medical/Dental: $5,200

Auto Insurance: $925
Auto Maintenance: $1,850
Auto Registration: $400
Gas: $1,955

Total for Essentials: $29,235

Routine Spending:

Travel: $4,065
Golf: $4,610
Entertainment: $4,200
Gifts: $1,690
Clothes: $220
Miscellaneous: $1,800

Non-Routine Spending (new and replacement type purchases): $6,200

Total Non-Essential Spending: $22,785

Total Cost of Living (not including taxes): $52,020

Just curious, but if these are YOUR expenses, what things does your wife spend money on that are not counted?

 

[sengsational]

3% Medical

5% Cars

11% Groceries

11% Income Tax

20% House

34% Travel and Restaurants

16% Everything Else

I'm kind of proud of "blowing through the dough", given the 34% in the completely discretionary category of Travel and Restaurants. I need to to "better" next year, as this is only 2.3% WR or 2.6% WR, depending on what I use as a base (beginning of the year or beginning of retirement 6 years ago). Lucky to have no health insurance premium to pay and just a few doctor visits. No lumpy big expenses in 2019, but in 2020 there will probably be some (new car, house addition).

 

[GravitySucks]

2% good gosh no.
It's at either 4% or 5.5 % (according how I decide to compute it.) of the 2018 portfolio value.
Since descretionary spending is 40% overall I don't think I'll worry about the $20 a year the toilet paper - falls in essential spending category - savings would make or break me.

Curious if you will, is your WR% lower than 2%?

 

[Dtail]

2% good gosh no.
It's at either 4% or 5.5 % (according how I decide to compute it.) of the 2018 portfolio value.
Since descretionary spending is 40% overall I don't think I'll worry about the $20 a year the toilet paper - falls in essential spending category - savings would make or break me.

Okay understood.
Many folks don't keep track of detailed expenses due to very low WR% or 0%.
However with 40% discretionary, you are accomplishing the same concept.

My discretionary is at 30% and currently at 3%WR, but am counting on full SS and no chance of going back to work, etc, thus I develop a detailed budget to drive the spending.
Plus as mentioned in a previous post, I do enjoy keeping track, as some others on this site also do.

 

[NW-Bound]

34% Travel and Restaurants

Despite the 6-week long trip through Portugal and Spain early in the year plus the family trip to Hawaii at year end, my travel expenses are only 19% of the total.

I guess I need to kick it up a bit. Better airfare class is the simplest thing to spend money on, as I like the Airbnbs we have been using. Well, I guess I can pay for more space there too.

 

[jim584672]

My all in expenses for 2019 is under $15,000 (every penny tracked).

 

[MarieIG]

I am responding so that I am able to find this thread easily in the future for reference and education. Detailed tracking has not been a strong point. It has been pay yourself first (i.e. savings) and make sure that credit cards are paid off. However, DH retired at the end of 2019; we are selling a home this year; and I am also slated to retire this year.

Our post-retirement expenses will be (a moving target for the first year and) significantly different from pre-retirement expenses. Taxes have been by far our largest expense (Federal, State, Property) but are expected to drop with the loss of earned income; and property taxes and overhead would drop with the sale of one of the houses.

Travel, due to need to visit family is expected to increase; but at least until we get more of a handle on things, will need be done economically.

 

[MrsHaloFIRE]

Just finalized the numbers. We spent 55pct of what we brought in last year. We FIREd in late 2017. Ignoring the car and house we paid cash for last year bc that was planned for all from savings, and I consider money "spent" when i put it in savings cause thats how i show it on my spreadsheet. We are on the 0pct w/d plan as we are blessed with a good pension and cheap taste so we haven't overspent the monthly cashflow. Im also ignoring all appreciation and dividends as they are rolling and sitting. Just ate some good ham and eggs for lunch and hoping for a walk later to go look at a house nearby that just hit the market with FUSCHIA CABINETS. I could love it no more and HaloFIRE could love it no less.