Did Your Spending Surprise You?

[Telly]

Quote:

Originally Posted by TromboneAl .............*Housing includes prop taxes, insurance, and utilities. Housing 5086 19%

Wow, just my prop taxes, house insurance, and utilities are > 2.5 times your whole housing bucket!* I don't think I could live in a tent here with your low numbers* :P

[haha]

Here are mine, for one person living alone. This is only cash expenses- I have several fairly large house maintenance items coming due, and I have a new car which doesn’t cost much to maintain yet. Realistically, I think $.40 x 12,000 miles/year, or $4800 is a better estimate of car expenses. And housing should have at least $2000 a year added
for a sinking fund for even bare bones maintenance-well, septic, paint, etc.

Total: $26,258 100%
Auto $2,499 10%
Housing 4897 19%
Communications $866 3%
Clothing $540 2%
Electronics $828 3%
Groceries $4,697 18%
Gifts $528 2%
Healthcare $3,959 15%
Ins (other than health) $2,108 8%
Leisure $3,430 13%
Pers Care $196 1%
Pet $1,200 5%
Travel $510 2%

[mickeyd]

It is quite interesting to see how everyone seems to have arrived at a different method to figure out that time honored question of "How much is enough?".

About 4 yeras ago I found myself between jobs and 58 years old. After calling on all of the folks that "owed me a favor" and realizing that no new job was going to be produced that would generate the money that I required in exchange for the talent and experience that I had, I arrived at the realization that I was retired, ERd as it were.

As I did not want to begin drawing on my stash or pull the string on the pension plan(s) that I had coming to me,* I decided to try living on DW's pay from the school disrtict. Up to that point, we had mostly saved her pay and lived high on the hog on mine.

Even though she contributes to a pension plan and contributes $500/mo to her 403b plan, her take-home pay has been adequate enough for us to live on with the exception of about $4K in property taxes. So, 4 years later, we have an excellent idea of what it will actually cost us to live when we are both retired.*

I can not imagine any mathmatical calculation that I could have made 4 years ago* that would have produced a more accurate prognostication! 8)

[youbet]

You're damn right my spending has "surprised" me!* I always knew that spending it would be more fun than earning it was, but, wow!* It is much, much more fun.* I'm surprised at how much fun it is! * Even more fun than I thought it would be!

From a more quantitative point of view........* Through the first 12 weeks of ER expenditures are about as expected.* We do what we want, when we want.* No real concern about what others think we should be doing.* That's the real blessing of FIRE and makes the earlier sacrifices well worth while.

[Billy]

Sheryl:

Quote:

Akaisha, you guys amaze me! (In a good way). If I recall correctly, you also maintain a small condo or some sort of "home base" here in the US, right?

Thanks, Sheryl... We do maintain a place in the states that we own outright. We lease the land (which suits us fine - no property taxes, for one) and we have all these amenities -- swimming pool, tennis courts, fitness room, computer room, social events, etc.

Carrying no mortgage and having entertainment options within walking distance really helps keep the expenses down.

Also, our transport costs include airtickets, taxis, car repairs and gasoline, etc. We try to live in places where we can walk to restaurants, grocery stores, etc. Once we travel somewhere, we stay for a while. The costs amortize out that way.

Also, we know how to cook, and cook well. Much of our entertainment for friends surround the food area of our lives. It's social and it beats waiting in line to pay $75.00 for a meal, when we can cook better than most places. Still, when we travel, we eat out* most of our meals.

HAHA

Quote:

Looked at this way, their achievement is even more amazing.

Again, Thanks, guys!*

Astromeria

Quote:

we don't have pets any more and have scaled WAY back on charity and gifts as well as clothing and other personal items & services--I consider my volunteer work as being in lieu of donations.

Not to step on anyone's toes, but pets are very expensive. With food, grooming, medical care and kennels when one travels, it all adds up. Yes, it is a lifestyle choice... Also, we consider volunteering entertainment, social connection and charity donation as well!

Telly

Quote:

Wow, just my prop taxes, house insurance, and utilities are > 2.5 times your whole housing bucket! I don't think I could live in a tent here with your low numbers

Exactly.* 8)* Where one chooses to live is verrrrry important. It can impact your numbers in a significant way.

Best,
Akaisha
Author, The Adventurer's Guide to Early Retirement

[maddythebeagle]

dont track expenses and probably never will....I am closer to the unclemick approach.....just keep shrinking expenses until you are 12k/year and declare victory and pay yourself first until it hurts

[Billy]

I'd love to get down to $12K a year... We did hit $10K one year while in Mexico, but that was a special circumstance.

Normally we are in the $24K annual net spending, but have had years from the $10K mentioned above to $36K depending on how much we live it up.

Even if you don't track much of any spending, it is wise to watch your housing, transportation, and taxes. Those are large contributors to the minus column!* *

Best,
Akaisha
Author, The Adventurere's Guide to Early Retirement

[unclemick]

Quote:

Originally Posted by Billy Even if you don't track much of any spending, it is wise to watch your housing, transportation, and taxes. Those are large contributors to the minus column!* * Best, Akaisha Author, The Adventurere's Guide to Early Retirement

Yep - you nailed my big three post Katrina other than one off remodeling. Suprisingly 5k deductible health care insurance at age 63 is under 3k/yr here in MO including adding in my BP pills and two checkups/per year.

Have no idea where my budget will settle in my 2nd yr in MO - may start looking at places to cut some to free up more travel/entertainment $.

SWAG - 35-40k plus the fun stuff.

We'll see.

heh heh heh heh - unfrugally yours, er so far.

[Billy]

Hi Unclemick!

Heck, if you are having fun and don't mind the expense, just take your time to find the right balance of spending and fun.

Life is for living, and you can't take it with you... Better to have memories that make you smile than those which make you pucker!

Are you adjusting to MO fairly well? This will be your 2nd winter there, right?

Best to you, Unclemick...

Akaisha
Author, The Adventurer's Guide to Early Retirement

[unclemick]

Yep - I think I'm starting to get the hang of this four season climate stuff. We'll see how hard the snowbird itch hits come jan/feb - got my passport renewed should the urge to go someplace warm hits.

heh heh heh heh heh - heck - might even do a left handed manuever - go ski lodging although haven't snow skied since 1974 - could be dangerous?