How much could you cut spending?

[Totoro]

Let me see, current expenses total $34k roughly:
* Housing & utilities: 20k
* Food: 4k
* Transportation: 2k
* Travel: 4k
* Business expenses: 3k
* Everything else: 1k

Since housing is 60% of my expenditure my plan involves relocating. Have to shut down my business formally as well.

First option: shut down business & back to belgium, total $26k
* Housing & utilities: 12k
* Food: 4k
* Transportation: 4k
* Travel: 4k
* Business expenses: 0
* Everything else: 2k

Second option: move to thailand or similar, total $20k
* Housing & utilities: 7k
* Food: 3k
* Transportation: 5k
* Travel: 3k
* Business expenses: 0
* Everything else: 2k

Third option is full blown going nepali or permanent camping / thru-hiking, probably for $12k a year or so.

[Walt34]

If we had to we could cut roughly 30-40%, below that would involve selling the house and moving. First on the block would be the motorcycle, then the pickup truck. You wouldn't see me here because I wouldn't have internet. Cable TV, what little dining out we do would stop, grocery store spending would go down significantly. No more camera stuff or ink for the photo printer.

So it could be done.

[NW-Bound]

Quote:

Originally Posted by Walt34 If we had to we could cut roughly 30-40%, below that would involve selling the house and moving. First on the block would be the motorcycle, then the pickup truck. You wouldn't see me here because I wouldn't have internet. Cable TV, what little dining out we do would stop, grocery store spending would go down significantly. No more camera stuff or ink for the photo printer. So it could be done.

If you live in a suburban place, you can always ride your bike to a local public library to use the WiFi or even the computers there. Your frequency of posting will just not be as frequent.

And then about camera and printer ink, you will look for a way to make money off your hobby. Sell on eBay?

See how people can always adapt?

I think that I would like to boondock in the woods with my RV, like many people are actually doing. Here are some photos linked from RVSue's blog. Her recurrent monthly expenses are less than $400, but that does not include gas, food, vehicle repair, etc... I don't think she spends a lot more than $1000/month.

[tmm99]

Thank you for this thread. It is a good exercise to think the what if's and see how much we cut shave off - this might put us more at ease of pulling the plug knowing how much can be cut down if needs arise.

After looking at my numbers, I can reduce my expenses by about 10K (by cutting my travel, gift and hobby/entertainment expenses.) Not something I would want to do, but I guess I could I really, really had to do it.

[Walt34]

Quote:

Originally Posted by NW-Bound If you live in a suburban place, you can always ride your bike to a local public library to use the WiFi or even the computers there. Your frequency of posting will just not be as frequent. And then about camera and printer ink, you will look for a way to make money off your hobby. Sell on eBay? See how people can always adapt? I think that I would like to boondock in the woods with my RV, like many people are actually doing. Here's a photo linked from RVSue's blog.

Bicycling would be out around here because there are no shoulders on the local roads and they have lots of hills and curves. I'd have a life expectancy of about 20 minutes. That's why I bought the motorcycle instead of a bicycle for a (then) 3.5 mile commute in the first place.

Well, if I have to sell prints and stuff isn't that called work? I've developed an aversion to that. Selling on ebay is a thought though just to see if anyone would actually pay a reasonable amount for a mounted, matted and framed print. Or some sell them not framed but mounted and matted and let their customer buy the frame they like. That reduces shipping by a lot too.

Hmmm. Now you got me thinking. That rarely ends well....

You're right about the library though, I'd forgotten about that when I made the post.

[Meadbh]

Quote:

Originally Posted by Walt34 Well, if I have to sell prints and stuff isn't that called work? I've developed an aversion to that. Selling on ebay is a thought though just to see if anyone would actually pay a reasonable amount for a mounted, matted and framed print. Or some sell them not framed but mounted and matted and let their customer buy the frame they like. That reduces shipping by a lot.

I was thinking you could get a booth at a local farmers' or crafters' market. It would be a fun place to hang out and meet people, and expenses would probably be tax deductible.

[AnIntentionalRoad]

We are not living particularly frugally right now, but with a sub or near 3% WR, we are not feeling a need to cut back more.

If we had to, we could shave 25% from expenses and not be too troubled. And we could sell our vacation home, which we have about 250k equity in.

[Rustic23]

Casita!

Our DS and DIL have one just like that. Very happy with it and the size for two people is perfect!



[/QUOTE]

[aja8888]

According to DW, "what do you mean cut spending....".....according to me. 25% with ease.

1. Sell the old truck, gets used infrequently.

2. Get rid of Comcast cable.

3. Spend less on children and grandchildren.

4. Go out to eat less.

5. Sell DW's newer SUV and just live with my 2005 Jetta.

6. Enforce the budget!

[eta2020]

Quote:

Originally Posted by AnIntentionalRoad We are not living particularly frugally right now, but with a sub or near 3% WR, we are not feeling a need to cut back more. If we had to, we could shave 25% from expenses and not be too troubled. And we could sell our vacation home, which we have about 250k equity in.

Lekewise.... We live on 2% WR while still full time working for 6 more years. So cutting back simply makes no sense....

[cranberryjoe]

I'm sure I could cut by 25% easily, and probably up to 40-50% with some pain. But it would have to be a severe emergency to do so. As it is, my investments are growing more than I'm spending and I'm trying to decide if I should be spending more. However I have some big medical and home maintenance expenses coming up which may take care of that extra spending for the short term. I could defer the home maintenance for awhile if necessary but not the medical.

[jjquantz]

Our contingency plan works out like the following:

1) Cut 1/2 of travel budget - 6%
2) Reduce miscellaneous expenditures - 5%
3) Reduce/eliminate hobby spending - 10%
4) Eliminate rest of travel budget - 6%
5) eliminate eating out reduce other food costs - 5%
6) Move back to Midwest to lower housing cost 15-30% depending on details.

I would characterize a 10% cut as fairly easy, a 20% cut as painful, and a 35% cut as draconian. The first five would be temporary, if it looked like they would need to be permanent in order to stay where we are then we would invoke #6 in order to allow reinstatement of some of the others.

[FIREd]

Depends if the cut is temporary or permanent. If it's the former (a bad year in the stock market for example), then I could cut up to 30% in expenses (travel, furnishings, entertainment, eating out, clothing, etc...). If it's the latter, I'd probably go after the large recurring expenses first (rent a cheaper apartment, sell one car, cut back on groceries, get rid of cable, get dumb cell phones, review insurance coverage, etc...). Plenty to cut there without feeling a major sting.

[Lsbcal]

Current spending is about 3.3% of portfolio

Discretionary about 1.5%

Depression era reductions maybe 0.5%

So around 1.3% of a maybe shrinking portfolio. DW would not be a happy camper.

[Mulligan]

Quote:

Originally Posted by jjquantz Our contingency plan works out like the following: 1) Cut 1/2 of travel budget - 6% 2) Reduce miscellaneous expenditures - 5% 3) Reduce/eliminate hobby spending - 10% 4) Eliminate rest of travel budget - 6% 5) eliminate eating out reduce other food costs - 5% 6) Move back to Midwest to lower housing cost 15-30% depending on details. I would characterize a 10% cut as fairly easy, a 20% cut as painful, and a 35% cut as draconian. The first five would be temporary, if it looked like they would need to be permanent in order to stay where we are then we would invoke #6 in order to allow reinstatement of some of the others.

Living in the Midwest isn't that bad....especially compared #7 on the list you didn't mention....going back to work.


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[NW-Bound]

Quicken tells me that my expenses for the last 12 months run up to 3.34%, and that even includes the checks for home maintenance/repair that have all cleared. I'm good.

If things get tough, I would cut travel first. Then, if things look really bleak, I will sell the 2nd home. The above are the two big items, and if that did not help enough, I would need a major lifestyle redesign. But if it gets to that point, man, things must be really bad. And there's still SS that will come later.

Reading about how people live with so much less gives me confidence that I can survive any economic calamity, simply because I have to lose a lot to get to that budget point where other people can still live happily.

PS. Actually, unlike Alfred Neuman I still have some worry. But it is not about money.

[NW-Bound]

Quote:

Originally Posted by Sea Kayaker ...On another topic, perhaps our biggest goal post ER, is to get a cabin built on our little island property. That cute little place that NW-Bound posted would work nicely on our land. Love that. Would like to see floor plan layout.

I have not been able to find the floorplan nor more details of this "Mini-Double Loft Rock House", other than it was built in Montana and is described in the following book by Lloyd Kahn.

[daylatedollarshort]

There are all sorts of things we could still cut - travel, eating out, my Amazon gadget budget (goodbye solar flashlights ).

Worst case we could live like a college kid which isn't that much even in California. I guess taking it a step further we could live like a college kid in an even cheaper location without a car in a state with expanded Medicaid. I saw a show on an Eco-village and the people there lived on $10K a year, so in a state with expanded Medicaid I guess that could be done and still have food, clothing, shelter, health care and a shared car.

Or tiny house living seems like it could be pretty cheap -

https://www.youtube.com/watch?v=6Y15dxUZN3s

I could see having a tiny vacation home like this some day. DH thinks we would get on each other's nerves if we lived in that small a space all the time.

[Sea Kayaker]

Quote:

Originally Posted by NW-Bound I have not been able to find the floorplan nor more details of this "Mini-Double Loft Rock House", other than it was built in Montana and is described in the following book by Lloyd Kahn.

I knew that little house was familiar! I love that book and have checked it out from the library many years ago.

Our ace in the hole in terms of the flexibility of our retirement budget is the 15 acres we own on an island off the B.C. coast. If necessary, we could sell our city place, move to the island and live a borderline subsistence lifestyle. I admit to knowing next to nothing about growing food, but I have no doubt I could learn quickly. I have always been an avid fisherman - the bounty the Salish Sea provides right off our beach is endless. I think a sub $1000 monthly budget is POSSIBLE. Don't really want to try it particularly.

[steelyman]

Wasn't there someone who lived in a shoe?