Average Spending in Retirement

[rodi]

I'm beginning to wonder.

A new person shows up and in their very first post makes a ridiculous claim and demands to see spending spreadsheets. And so many here just take it in stride and provide detailed responses. Why?

Haven't seen anyone post a spreadsheet... but it's a discussion that is generally popular here. IIRC - there's usually a thread end of the year/beginning of the year about the previous year's spending that goes into FAR more detail than what people are posting here.

 

[SheitlQueen]

Well, I don't know the poster's intent. It doesn't seem ill to me and I can post my numbers with little effort...so that's my reason. If it's helpful to the OP (or someone else, perhaps?) then so be it. If it's not useful, then I have lost a whole 10 seconds.

Same reason I posted....it may help them out. And if doesn't, what's the harm? It's not like letting them know my monthly expenses via a spread sheet is going to let them rip off my money or identity.

 

[braumeister]

Maybe I'm just suffering from acute curmudgeonliness today.

 

[MichaelB]

Maybe I'm just suffering from acute curmudgeonliness today.

I don't think so.

 

[JoeWras]

Maybe I'm just suffering from acute curmudgeonliness today.

Well, maybe not. This site does seem to be getting a lot of "research project" kind of questions lately, bot or not.

I know the "mailbag" items were always upfront. But something else is going on outside of the mailbag. Word of this site get out to MBA schools? Too many naked questions without previous engagement.

 

[ER Eddie]

Maybe I'm just suffering from acute curmudgeonliness today.

I thought the OP came off obnoxious. 2nd post, and it's "I don't believe you. Prove it by showing me your spreadsheets." Which is why I responded the way I did: "I ain't showin' you sh*t."

 

[ERD50]

Maybe I'm just suffering from acute curmudgeonliness today.

Well, the request for spreadsheets from a new poster (who hasn't been back to the thread) was a bit of a yellow (turning orange) flag for me. A spreadsheet can contain all sorts of info beyond the contents. These could be 'bots' trolling for info.

I recall the VP sent out something, and they always had the latest versions of MS Office, and MS often had compatibility problems with itself. So none of us could really open his spreadsheet properly, but IIRC, it exposed a LOT of info, like the entire directory tree it was stored under and maybe the tree of any sheets linked to it. All sorts of stuff.

Imagine if there was a link to a folder named "Friday's 1,000 layoff list"! Well, OK, at that point no one would be surprised anyhow.

-ERD50

 

[Rustward]

I've read folks spending after tax dollars, 2500/month. This seems impossible with property taxes (own home) and insurance, a vacation. Need honest and complete spending spreadsheet to compare.

Rianne, this is a very open-ended request. I don't use a spending spreadsheet, so I don't have one to share and would not share one even if I had it, but I do track spending to the penny.

Spending varies by many factors. There are probably no two people who would agree on just what those factors are.

Comparison is useless. It would be like comparing net worth -- some people use only investable assets while others include the values of their home, rental properties, automobiles, tools in the workshop, coin collection, home entertainment systems, debt owed by family members, future inheritance, and anything else they can think of.

Comparing individual market returns is another one that is all over the map. Some people factor in their portfolio contributions and withdrawal and some don't. Some use only their equity performance (which has been stellar recently) and others use their entire portfolio. (Lets see how popular the Market Return YTD threads will be when the market goes down). It seems that few people do this the same way making it difficult to get the real picture.

For any comparison to be meaningful, it would have to be prepared using some generally accepted accounting principles, and you are not likely to get that in a public forum such as this one.

. . . and if you post your own spending spreadsheet and some information about yourself, you will likely get some feedback.

 

[Nemo2]

For the past four years we've averaged $40K Canadian annually, (~$31,800US), after tax expenditure.....which includes a little travel.

 

[scrabbler1]

I spend just under $2,000 a month. If I have a moderately "bad" year (probably due to health issues), I'll hit the $2,000 a month mark. If I have a really bad year like I did in 2015, I'll spend a little over $2,000 a month. Otherwise, I'll spend a little under $2,000 a month.

 

[Rambler]

We can't come close to $2500 a month...that would barely cover the property tax and insurance on both of our homes plus the RV and car taxes and insurance. We pay all of those annually, not monthly. A typical month for us is around $10k plus or minus a little, and that $30k in various taxes and insurance premiums is on top of that. When we have a trip that involves flying, hotels and car rentals, it also goes up another few thousand, but that's only a couple times a year. And, I've discovered that we spend less monthly when we travel in the RV...yes, we spend more for fuel and $40 a night plus or minus for the RV park, but when we are home, we are constantly buying things to fix up the place, etc. so sometimes we take an RV trip just to get away from spending.

The point is, it all depends on your lifestyle, and what you CAN afford. If we downsized to the small of our homes (which we plan to do eventually), it will not only mean way fewer expenses, but also way less taxes. But it will mean more and further travel to see the kids. Probably...we don't know where they'll end up (two and a half hours away now, but they plan to move another 5-7 hours away soon).

 

[Rianne]

I've been keeping track of spending for 3 years and cannot get under $58 K a year. We own our house and cars. With healthcare these days, I'm bumping to $70 K a year.

 

[MichaelB]

Welcome to the forum, Rianne

So, you're looking for help, or advice, on managing spending?

[-]Most members take a moment to introduce themselves, here Hi, I am... - Early Retirement & Financial Independence Community
If you do so it helps by giving perspective to your specific situation.[/-] Nevermind, I see you've done so.

The thread was moved to the FIRE and Money forum where it is a better fit.

 

[daylatedollarshort]

I've been keeping track of spending for 3 years and cannot get under $58 K a year. We own our house and cars. With healthcare these days, I'm bumping to $70 K a year.

We put our household budget in the same categories as the Consumer Expenditure Survey and compared them side by side. Some categories we were okay with spending more like housing, but as far as the rest we found many expense categories we could optimize / lower without any pain or lifestyle change like making the house more energy and water efficient, dropping the landline, chaning where we grocery shopped and switching cell phone plans.

We know from supporting college kids it doesn't take too much to live even in a high cost of living area in a nice apartment with a roommate near a beach, get groceries from Costco and use a bike, Uber and a bus pass for transportation. We don't actually do that, but it wouldn't be a half bad retirement plan B, and since we're married we already have each other for roommates. For older Americans on individual insurance plans, as you already know the main hard to control and hard to predict cost in the U.S. is health care.

 

[JoeWras]

Well, the request for spreadsheets from a new poster (who hasn't been back to the thread) was a bit of a yellow (turning orange) flag for me. A spreadsheet can contain all sorts of info beyond the contents. These could be 'bots' trolling for info.

Right. I know this is a bit of a meta-discussion, but it is good to remind people out there that we do encourage sharing. However, be careful. Dropping a spreadsheet, word document and even photos can share meta data that you may not want spread around and correlated.

 

[Rianne]

I am super new at this. I'm trying to figure out what the little stars mean.

 

[Rianne]

I get the spreadsheet thing. I've read Mr. Money Moustache and a couple of other blogs but never joined in. This is the first. It seems safe and it was dumb to ask for a spreadsheet. Some people post them, but I never believe them.

 

[REWahoo]

I am super new at this. I'm trying to figure out what the little stars mean.

The more posts you have the more stars you have. Not really a big deal.

 

[JoeWras]

Well, hello Rianne! Hopefully we didn't scare you off too much. A few of us on the bridge here were calling out "orange alert, shields up!" We've had some bots (computer programs) trolling us lately, so pardon the nerves.

 

[Rianne]

What are your expenses now? You seem to be a troll unless you provide it.

No, I'm just dumb about blogging, learning.

 

[Rianne]

Well, hello Rianne! Hopefully we didn't scare you off too much. A few of us on the bridge here were calling out "orange alert, shields up!" We've had some bots (computer programs) trolling us lately, so pardon the nerves.

No problem, my first money blog ever! Actually, I read blogs but don't join in.

 

[IMATERP]

My wife and I equally contribute $1,250 per month for our joint fixed expenses. Out of that, I escrow our Auto & Home Ins, and Property Tax. The $1,250 a month does include our tithing, HOA fees, Household fixed costs, joint meals & groceries, joint house purchases, gifts, and an occasional weekend trip.

Outside of my half of the $2,500, I would estimate that I have personal discretionary expenses of $75 week which on average includes lunches, gas, RX costs & copays, etc.

I used to focus all of my energies on being frugal. Nowadays, I just recognize that I have enough - and that if I want something pretty badly - it is okay to get it.

 

[kimcdougc]

DH and I require about $4,900 per month net to live comfortably on.

This amount includes everything from medical, to taxes and insurance, food, energy etc.

We could cut costs by about a 1/3 if we needed to.

 

[Rianne]

My wife and I equally contribute $1,250 per month for our joint fixed expenses. Out of that, I escrow our Auto & Home Ins, and Property Tax. The $1,250 a month does include our tithing, HOA fees, Household fixed costs, joint meals & groceries, joint house purchases, gifts, and an occasional weekend trip.

Outside of my half of the $2,500, I would estimate that I have personal discretionary expenses of $75 week which on average includes lunches, gas, RX costs & copays, etc.

I used to focus all of my energies on being frugal. Nowadays, I just recognize that I have enough - and that if I want something pretty badly - it is okay to get it.

Yes, I run to the computer and add up expenses every week or so. Have done that for about 3 years now. Getting tired of it and you are right. I should wait till the end of the month and shock myself. We all have our OCD in one way or another. Kidding, good advice, I should quit being so frugal.

 

[REWahoo]

No, I'm just dumb about blogging, learning.

FWIW, E-R.org isn't a blog, it's a discussion forum. Here is how they differ:

Blogs are AUTHOR centred.

- posts are made by the blog's author only (may be a group)
- posts are usually opinion pieces and written in the authors voice
- readers can add comments to the author's post
- organised in reverse chronological order so the most recent posts show on the - entry page
- reflect the authors identity in the tone, look and feel and content

Discussion Forums are TOPIC centred.

- discussions are organised into topics by 'threads'
- anyone in the community can start a thread on a topic
- all participants have an equal voice
- posts require someone to reply for a discussion to take place
- you can follow through a thread on a particular topic

Differences between Discussion Boards, Blogs and Wikis | MyUni