Average Spending in Retirement

[ABQ2015]

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.

A few years ago there were threads on "how much did I spend in 201x?" generally in early January. Many posted spreadsheets with their expenses for the year - those who spent the least seemed most interested in posting. But I have not seen much of this lately. You may want to dig around and find those old threads.

 

[RetireAge50]

Here is a picture of part of my spreadsheet:

 

[foxcreek9]

Here is a picture of part of my spreadsheet:

Using these same categories here is mine. I would say we could get down to 3800 a month downsizing but that is only talk right now.

Prop taxes. 570
Insurance 240
Elec/gas. 150
Cell/ooma 30
Fed tax 930
Healthcare 930
Water/sewer. 60
Internet. 50
Life ins. 80
Food,gas,misc. 1400

Total 4,440

Our big ticket budget is 2,170 per month (travel, emergency repairs, etc). We could easily cut out if needed.

Very depressing that taxes and healthcare eat up 54% of our essentials budget.

 

[ER Eddie]

Welcome to the forum, Rianne. I still ain't posting my spreadsheet. Only this time, it's not because I don't trust you. This time, it's because I'm too lazy.

 

[Blue Collar Guy]

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.

I read some MR money Mustache posts, I stopped when I read some of them dont shower regularly to save on hot water. Thats not my style.

 

[SAtoUS]

WOW...$50/month medical/dental/umbrella insurance/spending

We spend $1,600/ month on health insurance. How is it possible that you guys spend so little on it?

 

[RetireAge50]

WOW...$50/month medical/dental/umbrella insurance/spending



We spend $1,600/ month on health insurance. How is it possible that you guys spend so little on it?

This is the cost as it stands now using ACA insurance and being healthy. Obviously this can change at any moment. Income is low for this purpose by using Roth contributions and/or the proceeds from sale of home.

 

[SecondCor521]

OK, I'll play. Here are my monthly expenses based on an average of the last six months.

I have made two adjustments, you can decide if they are fair or not:

1. I am excluding the cost of private school tuition and fees for my two younger children. It is something that is important to me but is obviously a want, not a need.

2. I am also excluding the cost of child support for my two younger children.

The remaining expenses total $1,896.12 per month, and that is to support me, my three kids, and one cat in a LCOL area. I do have some seasonal variance where December is a higher cost month due to property taxes and Christmas gifts.

If you want any explanations as to how I spend "so little" (it feels average to me, but what do I know?), I'm happy to discuss any category in depth.

 

[Blue Collar Guy]

WOW...$50/month medical/dental/umbrella insurance/spending

We spend $1,600/ month on health insurance. How is it possible that you guys spend so little on it?

I retired with full medical for me and the bride. It dies with me. we have a 4000 a year out of pocket, the deductibles creep up every few years. Never hit the 4k yet, but its a line item in the imaginary budget.
Update, I do spent 4 k a tooth some years for implants . but thats cosmetic they dont cover dental implants, they will pay for bridges etc. I dont want them, so I pay.

 

[W2R]

Welcome, Rianne!

Here is a link to a post where I listed my spending for 2016, by category. I am spending a lot more than I did before my 2009 retirement, because of some good luck that has resulted in more to spend than I expected.

http://www.early-retirement.org/forums/f27/2016-spending-84736.html#post1817863

I did not list my medical expenses because I am on Medicare and have some very low cost insurance as well. I think those planning for retirement need to make their best estimate of what medical insurance will cost in their individual situation.

 

[LauAnn]

$2200 per month for me. Own home in low COL area. Home Insurance, property taxes, health insurance, food, utilities and internet, car maintenance and car insurance comes out to $15,000 per year. The balance is all discretionary items -- travel, hobbies, gifts, donations, etc.

 

[Looking4Ward]

For Reference Our home is ~$900k and PT is about $7k.....

I'm envious. In many parts of Texas the property taxes on a $900K home could easily be over $27K per year. We fought and fought this year to bring the (tax) appraised value of our home down to under $300K but the property taxes will still be close to $9K so I pretty much budget $800 a month for those alone.

 

[HappyMinimalist]

I read some MR money Mustache posts, I stopped when I read some of them dont shower regularly to save on hot water. Thats not my style.

I know of retirees who'd shower in our condo's shower facilities to save on their own water bills. It takes all kinds.

 

[Major Tom]

I'm living on $1500 a month. Works for me, and gives me a few hundred left over each month for fun stuff (mainly hobby spending). I've given rough details in the forum before, but won't do it in this thread because there are all sorts of ways to get your expenses down if you really want to. If you don't really want to, and can afford it, then good for you!

 

[FANOFJESUS]

We live on $1400 a month by living simple in the Midwest.

 

[NW-Bound]

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.

I am spending much more than $2.5K/month, but if push comes to shove I believe I can reduce down to that much by changing the lifestyle.

No, no spreadsheets available (would have to make one up), but I know people who live OK with that. Why would I be different?

Caveat: this is predicated on me being past the Medicare age of 65, or the current ACA laws continuing with its subsidy for low-income people.

 

[Fermion]

Our property taxes on near 30 acres are $29 a year. I pay more for a meal at Red Robin.

 

[NW-Bound]

Hey, the location associated with your forum username still says Seattle.

Can you get that low a tax rate on 30 acres near Seattle, even if it has no dwelling on it?

 

[Souschef]

Well, I did not factor my Angel Flight flying into the equation. Last year I spent almost 8K, and this year so far, 5K. BUT, as long as I can afford it,
Why not?

 

[Blue Collar Guy]

I'm envious. In many parts of Texas the property taxes on a $900K home could easily be over $27K per year. We fought and fought this year to bring the (tax) appraised value of our home down to under $300K but the property taxes will still be close to $9K so I pretty much budget $800 a month for those alone.

OMG. I had no Idea they were that high

 

[Blue Collar Guy]

I know of retirees who'd shower in our condo's shower facilities to save on their own water bills. It takes all kinds.

 

[Blue Collar Guy]

, love it

Our property taxes on near 30 acres are $29 a year. I pay more for a meal at Red Robin.

 

[kitesurfer2]

I don't spend cash. I use one credit card only and all my bills, groceries, gas, insurance....it's all on that card. The card is $1400 per month. Add that to my corvette payment (3 more years) and my monthly expense is less than 2 grand.

 

[bclover]

I read some MR money Mustache posts, I stopped when I read some of them dont shower regularly to save on hot water. Thats not my style.

lol, I read one post where the person said they don't flush the toilet at night to save on the water bill Yep, after the last uhm relief, they let it sit until morning.

That's when I got scared.

Rianne,
unfortunately I stop doing the spreadsheet thing after about 2 years of it. now I have a pretty good grasp of where the money goes. sorry.

 

[Al in Ohio]

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.

For me that's right in the ballpark so far, less my vacation budget ( which varies) and unforeseen medical or emergency expenses. Key is I do not live in a high COL area (central Ohio - midwest). It is about average. I have low repeating monthly expenses ( no mortgage, fully paid off cars, no high cable TV, no landline phone, etc). My biggest expense is food and groceries (two boys ages 17 & 21), followed by a $6000 annual property tax bill.