Budget categories

[Quantum Sufficit]

Hello all,

Wife and I are looking at our target date for FIRE in 5 months (april 2015). I am 48, she 46. Our investable assets are 2 million, 80% in taxable registrations and another 10% in a roth. Therefore 90% of my money is "free of encumbrances" so to speak. We just built our dream retirement home in florida on a Gulf of Mexico access waterfront lot. I came up with these categories for budget. Can you help me envision more?

ALARM MONITORING
50
General checking
Property taxes
700
Separate Account
Cable television/internet
90
General checking
Automobile (lease x 2, 36 months)
370
General Checking/debit
Automobile fuel
225
cash
Auto Insurance
130
General checking/debit
Cell Phones/data
100
General checking/debit
Medical Insurance
1000 (or 0 with rob)

Home
PAID IN FULL!

Groceries/misc
1000
SEPARATE CHECKING ACCT/DEBIT CARD
Top off /replenish on 1st of month
Utilities
200
General checking
Homeowner ins.
170

Pool service (before move)
100 , only 3 months
**
Clothing
wife-part time job
sal- rare clothes

Sewer/water/trash
Tax includes all

Rainy day fund/house maintenance//medical misc expenses (drug, copays)...knockwood pretty healthy)
450

SEPARATE ACCT



Cash allowance for him
150

Cash allowance for her
150

Vacation/travel allowance
? already live in a tropical paradise but add 300/month







Total



5085.00

his part time
4000.00/month (incl ins. stipend)

her Part time
600- goes to her purchases clothes etc.

Portfolio Dividends


Reverse mortgage age 62??
Add 250K to portfolio (add 10k/yr income)
(no heirs, why not)

His ss age 62
2000.00

Her social security age 62
500



Please help me fill in the blanks!

[MichaelB]

The consumer expenditure survey has a breakdown you might find interesting. Here's a recent discussion that included a link to the survey http://www.early-retirement.org/foru...vey-74306.html

[nun]

Waterfront lot.......where's the flood insurance

[Moemg]

$200 for utilities & $170 for homeowner's insurance in Florida seems low !

[W2R]

Quote:

Originally Posted by Quantum Sufficit Hello all, Wife and I are looking at our target date for FIRE in 5 months (april 2015). I am 48, she 46. Our investable assets are 2 million, 80% in taxable registrations and another 10% in a roth. Therefore 90% of my money is "free of encumbrances" so to speak. We just built our dream retirement home in florida on a Gulf of Mexico access waterfront lot. I came up with these categories for budget. Can you help me envision more? ALARM MONITORING 50 General checking Property taxes 700 Separate Account Cable television/internet 90 General checking Automobile (lease x 2, 36 months) 370 General Checking/debit Automobile fuel 225 cash Auto Insurance 130 General checking/debit Cell Phones/data 100 General checking/debit Medical Insurance 1000 (or 0 with rob) Home PAID IN FULL! Groceries/misc 1000 SEPARATE CHECKING ACCT/DEBIT CARD Top off /replenish on 1st of month Utilities 200 General checking Homeowner ins. 170 Pool service (before move) 100 , only 3 months ** Clothing wife-part time job sal- rare clothes Sewer/water/trash Tax includes all Rainy day fund/house maintenance//medical misc expenses (drug, copays)...knockwood pretty healthy) 450 SEPARATE ACCT Cash allowance for him 150 Cash allowance for her 150 Vacation/travel allowance ? already live in a tropical paradise but add 300/month Total 5085.00 his part time 4000.00/month (incl ins. stipend) her Part time 600- goes to her purchases clothes etc. Portfolio Dividends Reverse mortgage age 62?? Add 250K to portfolio (add 10k/yr income) (no heirs, why not) His ss age 62 2000.00 Her social security age 62 500 Please help me fill in the blanks!

How about entertainment? Maybe I missed that in scanning over your list.

Here are my categories and what they include. I put in bold the expenses that I didn't happen to notice in your list. They are probably included in your "miscellaneous" or "rainy day fund" but it is hard for me to tell. If it was me, I'd probably try to break down those categories a little bit.

Miscellaneous
hobby -- video games in my case
food (groceries, restaurants)
car (gasoline, repairs, maintenance, insurance)
house (maintenance, upgrades, insurance, lawn care)
utilities (water/sewer/trash, electricity, natural gas, landline, cell phone, cable)
fitness (gym fees, home gym equipment, mobile fitness devices, weight loss)
clothes
medical (insurance, Medicare, prescription drugs, dental, optical)
income tax (federal, state)

Hope this helps. It's just a home-made set of categories that is very personalized for me and my spending habits, but they seem to work for me.

[Quantum Sufficit]

Quote:

Originally Posted by Moemg $200 for utilities & $170 for homeowner's insurance in Florida seems low !

oh sorry, those are monthly figures of course. I got a combined flood insurance liability rate of 2100.00 annual (which wanted to make me cry by the way)

Thank you to everybody who took the time to add their input. There are some very important categories I indeed overlook. One of the main reasons I lease rather inexpensive cars is because at 185.00 per month per car, I pay no repairs as it is always under warranty.

[pb4uski]

FWIW, here are by budgeting categories.

Housing	Mortgage
Housing	Home Insurance
Housing	Property Taxes
Housing	Propane
Housing	Firewood
Housing	Electricity
Housing	Snowplowing
Housing	Maintenance and repairs
Household	Food and groceries
Household	Gardening
Household	Spending money
Household	Clothing
Household	Gifts
Household	Donations
Transportation	Maintenance and repairs
Transportation	License fees
Transportation	Gasoline
Transportation	Car insurance
Transportation	Boat insurance
Transportation	Jet-ski insurance
Transportation	Snowmobile insurance
Personal and Health Care	Doctors
Personal and Health Care	Dentists
Personal and Health Care	Prescription Drugs
Communications	Telephone
Communications	Mobile Phone
Communications	Television
Communications	Internet
Personal Insurance	Long Term Care Insurance
Personal Insurance	Health Insurance
Personal Insurance	Health Insurance Subsidy
Personal Insurance	Dental Insurance
Personal Insurance	Umbrella Insurance
Recreation and entertainment	Travel
Recreation and entertainment	Sewing
Recreation and entertainment	Skiing
Recreation and entertainment	Snowmobiling
Recreation and entertainment	Golfing
Recreation and entertainment	Hockey
Recreation and entertainment	Movies
Recreation and entertainment	Dining Out
Miscellaneous	Miscellaneous

[nun]

Rather than trying to categorize everything, I found that the best way to find my budget was simply to track my spending. I looked at the outgoings from my bank account and just added estimates for health insurance and tax. It's worked out well. After 8 months of ER I'm spending slightly less than I estimated.

[jerome len]

I'd take anothe look at the total cost of a new car lease. Youi can lease a number of nice cars for $185 a month but most of them require a couple of grand down, you have to front the lease charge and you have to add in sales tax. So, the total lease cost could be higher than your amount. And, car costs have been gong up 4 to 5% a year.....looking ahead your costs could be 10 to 12% higher than a current lease a couple years old. Good luck.....I lease cars as well....love the warranty.....hate having a car tied up for expensive repairs.l

[travelover]

Quote:

Originally Posted by jerome len ............I lease cars as well....love the warranty.....hate having a car tied up for expensive repairs.l

I used to lease cars, too, but there is no free lunch. If you purchased a good used car and put what would have been the lease payments into a separate account labeled "free car repairs", at the end you will almost certainly have money left over.

[jerome len]

Quote:

Originally Posted by travelover I used to lease cars, too, but there is no free lunch. If you purchased a good used car and put what would have been the lease payments into a separate account labeled "free car repairs", at the end you will almost certainly have money left over.

You're probably right, if you don't put a value on avoiding breakdowns, waiting at tire centers or dealerships for repairs,etc. I try to balance cost vs. spending time doing stuff I do/don't enjoy. And, getting my car repaired is one activity low on the list of enjoyment activities. .......to each their own!

[nun]

I paid cash for a new Honda Civic back in 2007. I take it in for an oil change every 5000 miles and the only major thing it's needed is new breaks. In ER I drive it about once a week and then only for a few miles. The insurance is my major cost and I'm now looking at Zipcar instead of owning. I'll probably wait until the Honda dies, but I estimate my cost a year using Zipcar would be $500, gas and insurance are paid by Zipcar.

[travelover]

Quote:

Originally Posted by jerome len You're probably right, if you don't put a value on avoiding breakdowns, waiting at tire centers or dealerships for repairs,etc. I try to balance cost vs. spending time doing stuff I do/don't enjoy. And, getting my car repaired is one activity low on the list of enjoyment activities. .......to each their own!

I agree, gotta spend your money where it gives you the most value. I had a number of breakdowns with new lease cars, the only difference was who paid for the repair. I still had to wait.

[Quantum Sufficit]

No really, we leased 2 brand new kia optimas with 5 year 60 k warranty, got 2 free 40 inch flat screens, signed the papers with 0 OUT OF POCKET...payment 185 per month! I think they screwed up but thats on them!