Margin of error for expense

[Sam]

Good morning all,

One of the critical component in the ER equation is the annual desired expense.  In my calculation, I make sure that everything is included.  After arriving at the final number, I couldn't help but to add 15% to it.  I scorn myself repeatedly for doing it, but am unable to remove that safety margin.

Do you have that problem?

Sam

 

[Rustic23]

The spreadsheet I use has in the budget area a place for misc. expense/gifts. I run the sheet with all the other expenses at what I think they will be, and the e/g category there also. Then I will start playing with that category and the ‘one time expense’ category and see how high I can get these before I run out of money at give stock returns and inflation numbers. It gives me a warm feeling so far. That is if the spreadsheet is right.

 

[lazygood4nothinbum]

i pad each expense and then round up. then i pad the total and round that up as well. lastly i add vacation/emergency budget onto that. hardly scientific but easier for me to sleep.

i'm happy to report since re i've stayed well within my budget without even trying.

 

[Sam]

i'm happy to report since re i've stayed well within my budget without even trying.

Is that budget padded or not?

Sam

 

[lazygood4nothinbum]

Is that budget padded or not?

hehehe. there is so much padded room in that budget, i could bounce off the walls for weeks and never bump my head. and i'm pretty sure i already have.