Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 01-03-2021, 09:11 AM   #121
Recycles dryer sheets
 
Join Date: May 2013
Location: Ventura
Posts: 59
Spending total of $35,473 for 2020. This is 64% of 2019 spending. Similar reduction reasons as other responses: no international travel, minimal restaurant dinners, GF did my haircuts, etc.
hiker88 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-03-2021, 09:12 AM   #122
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 6,090
25% more than 2019.
__________________
"Never Argue With a Fool, Onlookers May Not Be Able To Tell the Difference." - Mark Twain
ShokWaveRider is online now   Reply With Quote
Old 01-03-2021, 09:21 AM   #123
Administrator
Gumby's Avatar
 
Join Date: Apr 2006
Posts: 19,489
Quote:
Originally Posted by 24601NoMore View Post
We have a pretty detailed Quicken (expense) "category" setup. For example - an expense category for household goods. Another for gifts. Another for pets. etc. And dozens of other categories covering everything we spend $$ on. ...
I do the same, only with my own Excel spreadsheet. It's not much work.
__________________
Living an analog life in the Digital Age.
Gumby is online now   Reply With Quote
Old 01-03-2021, 09:36 AM   #124
Recycles dryer sheets
Backpacker's Avatar
 
Join Date: Feb 2011
Location: On a dirt road
Posts: 312
Sounds like in order to have better results I need keep receipts for input rather than monthly cc statements. If no paper receipts as in amazon i better enter in my spreadsheet immediately. I don't use quicken, just excel spreadsheet.

I like the idea of trying to track vacation gas vs. everyday gas. We bought a 18' camper spring of 2020 and if we needed to make budget cuts it'd be good to know. At about 10 mpg fuel costs while towing can add up fast.
__________________
"Up sluggard and waste not the day, in the grave will be sleeping enough." Benjamin Franklin
Backpacker is offline   Reply With Quote
Old 01-03-2021, 10:15 AM   #125
Thinks s/he gets paid by the post
 
Join Date: Aug 2012
Posts: 1,441
Quote:
Originally Posted by Backpacker View Post
Sounds like in order to have better results I need keep receipts for input rather than monthly cc statements. If no paper receipts as in amazon i better enter in my spreadsheet immediately. I don't use quicken, just excel spreadsheet.

I like the idea of trying to track vacation gas vs. everyday gas. We bought a 18' camper spring of 2020 and if we needed to make budget cuts it'd be good to know. At about 10 mpg fuel costs while towing can add up fast.

I do that.
I have my own spreadsheets and I input the gas at my local station which is most of the time. I then have a category called "other gas" for recording vacation or long day trips etc.
We bought a small camper fall of 2019 as well.
finnski1 is online now   Reply With Quote
Old 01-03-2021, 10:30 AM   #126
Dryer sheet aficionado
 
Join Date: Apr 2017
Location: Akron
Posts: 26
Quote:
Originally Posted by Backpacker View Post
I've decided to try to track expenses better in 2021. I'm struggling with how to keep categories separate. I look at the cc statement and see 6 charges from Amazon. some were household goods, some gifts. Same with farm store, dog food vs. A box of drywall screws. How do those of you that track categories keep things straight?


Take a look at YNAB. I did what you are currently doing and, like you, wanted to drill-down a bit more. I began YBAB at the beginning of 2020, and I now know where we stand Very happy! 🥳
almosttime is offline   Reply With Quote
Old 01-03-2021, 11:01 AM   #127
Thinks s/he gets paid by the post
 
Join Date: Dec 2014
Posts: 2,501
Quote:
Originally Posted by Midpack View Post
Fed and State income taxes were way more than our next highest spending category (Roth conversions), and will be for another 5+ years. Otherwise about the same, we compare to budget monthly so no year end surprises.

+1



but the secure act will likely kill the roth conversions--edit for me
bingybear is offline   Reply With Quote
Old 01-03-2021, 11:03 AM   #128
Thinks s/he gets paid by the post
 
Join Date: Dec 2015
Posts: 1,106
Quote:
Originally Posted by scrabbler1 View Post
I mentioned income taxes in a recent post in this thread. How do you handle income taxes when it comes to categorizing expenses for a given year? Income taxes are sometimes paid in the year the income is earned, such as through withholding or same-year estimated tax payments. But income taxes may also be paid in the year after the income is earned, such as when filing an income tax return or when 4th quarter estimated income taxes are paid in early January of the following year.
There's a relatively simple Accounting approach for this. Create two Liability accounts called "Federal Taxes Payable" and "State Taxes Payable" (obviously adding City Taxes Payable or whatever else you need to track), either as "Property & Debt" in Quicken or equivalent in whatever tool you use. Then, have 2 corresponding Expense categories - eg: Estimated Taxes - Fed and Estimated Taxes - State.

Every month, go in to the Liability accounts (repeat for both Fed & State), and create a transaction in that account and use the corresponding expense category (eg: Estimated Taxes - Fed) just like you would if you were entering any other type of expense from say, a credit card or bank account and buying groceries or something else. That will assign the expense to that month from an Accounting perspective.

When you actually PAY your taxes, you'd have an entry in your Checking (or whatever account the $$ is coming from) that references the Liability (vs the Expense) account. The neat part about that is since you're listing the Liability account when you pay (eg: in January for Q420 taxes), your expense has already been recorded in Oct, Nov and Dec. The January entry is just reducing the Liability that's already been recorded.

This ensures your Tax expenses are accounted for in the year they were incurred, while still allowing you to track payment at the time actually made.

This is what I do, and it works great. Technically, it's the "right" way to account for everything from an Accounting perspective, although I realize that few probably bother to track it that way. But since you asked, that's how an Accountant would tell you to do it..

Hope that helps..
24601NoMore is offline   Reply With Quote
Old 01-03-2021, 11:18 AM   #129
Thinks s/he gets paid by the post
PaunchyPirate's Avatar
 
Join Date: Feb 2014
Location: NW Pennsylvania
Posts: 1,135
I decided to do away with the "budget" portion of my expense tracking for 2021. For the first 2 years of my retirement, I tracked expenses into categories using Quicken. I also had a spreadsheet that had monthly "estimates" of my spending set up in advance. Each month, I would put my "actual" expenses from Quicken into the spreadsheet to see how I was tracking. So I guess this was a budget, even though I never intended to limit my spending to the estimated amounts. If I want something, I buy it.

After 2 years of retirement, I no longer feel the need to track my spending to pre-defined estimates. So the monthly tracking of actual to estimates will not be done this year.

I still will track the spending into categories in Quicken. I like doing that and it's easy to see where I'm spending my money through the year. I don't go into detail for some categories. For example, I have a single "Household/Groceries - Walmart" category that would include food groceries as well as cat litter and light bulbs.
PaunchyPirate is offline   Reply With Quote
Old 01-03-2021, 11:24 AM   #130
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 33,382
Quote:
Originally Posted by sengsational View Post
Most of the time, I don't bother to split, since it really doesn't cause anything different to happen. So if the category is "groceries with the occasional appliance", that's ok. But I'd probably have split that one, since I'd just guess at the appliance cost, plus tax, and it would only take a few seconds.
It's nice to have a lot of info on record in case you need it, but I am lazy, more like forgetful, and rarely split a receipt into different categories.

In the case of the $50 air fryer I bought at Costco along with consumables, the info would be more to let me know when I bought it, to know its longevity. Yes, I often look up Quicken to see when I bought something.

What do you know, yesterday during dinner preparation the doggone thing pooped out while my wife was grilling some chicken steaks. It's the thermal fuse again, which I replaced a couple of months ago as described in the "What you repaired" thread.

Good thing I bought a pack of several fuses, but this routine of replacing it every couple of months is getting old fast. I wonder if there's something else going on, but that has to be saved for the other thread. I have to log off now to go replace the fuse, my wife just reminded me.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)

"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
NW-Bound is online now   Reply With Quote
Old 01-03-2021, 12:12 PM   #131
Thinks s/he gets paid by the post
Out-to-Lunch's Avatar
 
Join Date: Jan 2020
Location: Milwaukee
Posts: 2,546
Quote:
Originally Posted by Backpacker View Post
Sounds like in order to have better results I need keep receipts for input rather than monthly cc statements. If no paper receipts as in amazon i better enter in my spreadsheet immediately. I don't use quicken, just excel spreadsheet.

I like the idea of trying to track vacation gas vs. everyday gas. We bought a 18' camper spring of 2020 and if we needed to make budget cuts it'd be good to know. At about 10 mpg fuel costs while towing can add up fast.

I agree that keeping track of Amazon categories is hard, because the variety of stuff I buy there is large. (For "normal stores," I agree with some others upthread that say close enough is close enough.)

I use Quicken, but you can do the same with your excel sheet. I start with Quicken having downloaded the CC amounts (and incorrectly categorizing the expenditure). I then go to Amazon and call up the page "Your orders." Then I just scroll through, matching the amounts and assigning to my preferred categories. Occasionally, but rarely, I will have to split an order if I ordered disparate items on the same order. In that case, the "Invoice" or "order details" link near each item is useful.
Out-to-Lunch is online now   Reply With Quote
Old 01-03-2021, 12:30 PM   #132
Administrator
Gumby's Avatar
 
Join Date: Apr 2006
Posts: 19,489
Quote:
Originally Posted by Out-to-Lunch View Post
... I start with Quicken having downloaded the CC amounts (and incorrectly categorizing the expenditure). I then go to Amazon and call up the page "Your orders." Then I just scroll through, matching the amounts and assigning to my preferred categories. Occasionally, but rarely, I will have to split an order if I ordered disparate items on the same order. In that case, the "Invoice" or "order details" link near each item is useful.
Same here. Again, it is minimal effort to get useful information.
__________________
Living an analog life in the Digital Age.
Gumby is online now   Reply With Quote
Old 01-03-2021, 12:54 PM   #133
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jan 2018
Location: Tampa
Posts: 9,799
I record every expense every day, except on vacation. Takes a grand total of 5 minutes daily.
__________________
TGIM
Dtail is online now   Reply With Quote
Old 01-03-2021, 12:58 PM   #134
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
SecondCor521's Avatar
 
Join Date: Jun 2006
Location: Boise
Posts: 6,768
Quote:
Originally Posted by bingybear View Post
+1



but the secure act will likely kill the roth conversions--edit for me
Why? In our family the SECURE Act is encouraging spending down the traditional IRA, since inheriting it now will cause a 10 year tax bump for beneficiaries. I would think Roth conversions would be similar in that they reduce the size of the traditional IRA.

I could see a marginal effect since I think the SECURE Act was also the one that raised RMD age to 72, so you can spread out your conversions over another year or two, but that doesn't sound like "killing" to me.

Not being critical or argumentative - just curious and wanting to learn other perspectives. Thanks.
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
SecondCor521 is online now   Reply With Quote
Old 01-03-2021, 01:02 PM   #135
Thinks s/he gets paid by the post
 
Join Date: Aug 2012
Posts: 1,441
Quote:
Originally Posted by Dtail View Post
I record every expense every day, except on vacation. Takes a grand total of 5 minutes daily.

That's some serious discipline.
I reconcile my visa statements , checking etc, about once every 2 months or so. It does take me an hour or 2 but I enjoy doing it and still capture just about everything since I put everything I can on CC and checking account.
Put it all in my spreadsheets which I have diligently been doing since 2012.
I'm a bit of a numbers nerd so actually enjoy categorizing, noting year over year deltas etc.
finnski1 is online now   Reply With Quote
Old 01-03-2021, 01:43 PM   #136
Thinks s/he gets paid by the post
 
Join Date: Dec 2014
Posts: 2,501
Quote:
Originally Posted by SecondCor521 View Post
Why? In our family the SECURE Act is encouraging spending down the traditional IRA, since inheriting it now will cause a 10 year tax bump for beneficiaries. I would think Roth conversions would be similar in that they reduce the size of the traditional IRA.

I could see a marginal effect since I think the SECURE Act was also the one that raised RMD age to 72, so you can spread out your conversions over another year or two, but that doesn't sound like "killing" to me.

Not being critical or argumentative - just curious and wanting to learn other perspectives. Thanks.
your own words say it well.
bingybear is offline   Reply With Quote
Old 01-03-2021, 01:53 PM   #137
Administrator
Gumby's Avatar
 
Join Date: Apr 2006
Posts: 19,489
Don't know about SecondCor521, but I'm still confused. If the goal is to reduce your traditional IRA balance, you could do it either by just withdrawing or by converting it to a Roth. Maybe you could elaborate why you feel the Secure Act is killing Roth conversions. I worry that I am overlooking something.
__________________
Living an analog life in the Digital Age.
Gumby is online now   Reply With Quote
Old 01-03-2021, 02:08 PM   #138
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
SecondCor521's Avatar
 
Join Date: Jun 2006
Location: Boise
Posts: 6,768
Quote:
Originally Posted by Gumby View Post
Don't know about SecondCor521, but I'm still confused. If the goal is to reduce your traditional IRA balance, you could do it either by just withdrawing or by converting it to a Roth. Maybe you could elaborate why you feel the Secure Act is killing Roth conversions. I worry that I am overlooking something.
Yes, I'm still confused too.

If I didn't like the 10 year tax bump on beneficiaries of a traditional IRA due to the SECURE Act, then I'd encourage the traditional IRA to consider Roth conversions to reduce the size of the traditional IRA and therefore reduce the impact of the 10 year tax bump.

I think someone is overlooking something, but I'm not sure who and what it is.
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
SecondCor521 is online now   Reply With Quote
2020 Spending
Old 01-03-2021, 02:31 PM   #139
Recycles dryer sheets
slowsaver's Avatar
 
Join Date: Aug 2013
Location: Norcal
Posts: 206
2020 Spending

Spent $57k this year. Very different patterns than previous years. Nearly 50% increase in groceries and 100% decrease in vacation packages. More on alcohol and less on restaurants (just DoorDash without alcohol).

Category2020 SpentNotes
Air Travel$50.00bag fee, January
Alcohol$1,022.37 
Auto - Fuel$461.28 
Auto - Maint$376.71 
Auto Insurance$1,044.75 
Cell Phone$574.24 
Clothing$276.42 
Computer$202.67 
Condo (HOA, +PropTax, Insur)$4,795.68 
Dance$544.00 
DH Spending$6,005.00New computer and weekly grocery deliveries for MIL
Dining$7,329.82DoorDash
Donations$1,289.35 
Education, Entertain., Guitar$1,129.34 
Gifts$756.29 
Groceries$5,387.74 
Health, Dental, Gym Fees (Yoga)$915.00 
Home & Garden$9,571.98New fence, lawn & patio in 2020
Home Owners Insurance$1,450.00 
Internet$780.87 
Lodging Hotels$1,032.94 
Misc$216.55 
Personal Care$296.98 
Property Tax (primary home)$8,872.68 
Public Transport, Uber, Tolls$160.50 
Utilities$2,669.59 
Vacation Packages$0.00 
Total$57,162.75 
slowsaver is offline   Reply With Quote
Old 01-03-2021, 02:45 PM   #140
Recycles dryer sheets
 
Join Date: Mar 2019
Location: Gloucester
Posts: 50
Quote:
Originally Posted by Dtail View Post
I record every expense every day, except on vacation. Takes a grand total of 5 minutes daily.
+1
I record daily and check all accounts online as well. Have caught fraud a couple of times and gotten it corrected before the merchandise was even delivered to the fraudster. Hoping the police were there when they were "getting" the fly fishing gear ordered on OUR card!

Really doesn't take much time to do, but then being in accounting...numbers are my thing!
Retire2023 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
2019 Spending Summary and Analysis W2R FIRE and Money 196 01-11-2020 08:44 PM
2018 Spending Summary and Analysis W2R FIRE and Money 224 03-13-2019 12:31 PM
2017 Spending Summary and Analysis W2R FIRE and Money 246 01-24-2018 07:11 AM
Vanguard Retirement Analysis vs. 4% withdrawal analysis familyretired FIRE and Money 3 08-26-2005 02:33 AM

» Quick Links

 
All times are GMT -6. The time now is 01:21 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2022, vBulletin Solutions, Inc.