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02-07-2008, 08:55 PM
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#161
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2006
Location: Boise
Posts: 7,882
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OK, excluding kids, interest expense, and taxes, here are my expenses for the last six months ending today:
Food 1,512.96
Utilities 957.38
Medical 948.17
Insurance 739.42
Auto 619.67
Recreation 595.07
Divorce 378
Christmas 367.1
House 272.61
Charity 70
MBA 61.47
Pets 59.03
Bank Charge 49.03
Clothing 46.5
Cash 18.48
which totals just under $6700, for an annual run rate of $13400. Add property taxes of $1100 back in, and you get to $14500.
Of the above categories, Recreation, Divorce, MBA, and Pets are either discretionary or NRE's. Those are at a run rate of $2200 per year, so that brings the total back to $12300 for my "floor".
2Cor521
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
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02-07-2008, 10:10 PM
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#162
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Recycles dryer sheets
Join Date: Mar 2004
Posts: 228
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We can make it on $40,000 but I hope to have an income $44,000 in 3.5 years when my husband turns 55. His pension plus 457k plan plus investment income will sustain us for two years, when my pension (substantial) kicks in.
Two adults, one kid still in high school, the other kid out of college.
Fully paid medical in retirement, thank god
Fully paid off house, small home equity loan, no other debt.
We are frugal, we can and have lived on much, much less. But I worked hard in order to be comfortable. I don't think $44,000 is luxurious by any means.
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02-08-2008, 02:56 AM
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#163
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Recycles dryer sheets
Join Date: Dec 2007
Posts: 75
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We live very comfortably in a high expense area on...
1) $24,000 (no mortgage, or rent)
2) 2 people
3) Hawaii
4) Retired
We live simply, which isn't a sacrifice for us. We have everything we need and since our wants are simple, we have everything we want, as well.
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02-08-2008, 08:13 AM
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#164
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Location: Northern IL
Posts: 26,896
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Quote:
Originally Posted by haha
I
This thread I believe contains wildly optimistic guesses.
Ha
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Quote:
Originally Posted by SecondCor521
I think it is possible with the caveats:
1. It depends on how you count.
It does not include replacement costs
2Cor521
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I agree HaHa. A good example above. 2Cor521 relies on a paid for house and a paid for car (I assume $1200/year covers gas/maint - not payments) to hit that $14,500 number. But he will need a new water heater, a new car, a new roof, etc. Amortize those costs over time and it will add up.
I also suspect that a budget focused on the items that he lists may see much more inflation than a more diversified budget. Medical, food, property taxes? Just a guess.
Even a $20,000 car every 12 years is $1666/year - that adds over 10% to his 'budget'. Just one item.
IMO, if you don't account for replacement costs, you don't really have a 'budget', you have a fantasy.
-ERD50
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02-08-2008, 08:23 AM
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#165
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Recycles dryer sheets
Join Date: Jan 2008
Posts: 328
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Quote:
Originally Posted by Helena
What is the tax appraisal of your house ?
My house is appraised for $150,000.
Property taxes are $3800.
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Tax appraisal value is $178,000.
So that kinda trumps TX. After all, I believe 2.5% is lower than 4% (or 3.1% if you use the lower amount of $5,600 ... but that rebate isn't guaranteed every year).
And I live in a "cheap" tax area of NJ. Folks up near where I work, are tax appraised at $220k, but their taxes are $11k. (5%)
And we now have 7% sales tax (just went up last year), and 6% income tax.
__________________
Primary title "chief moron"
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02-08-2008, 09:47 AM
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#166
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Full time employment: Posting here.
Join Date: Mar 2005
Location: Punta Gorda, FL
Posts: 828
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I keep revising my numbers, but here are the latest.
Bare bones and staying where I am with a paid off house and no other debt.
$31,000 would be tight and no fun. $12,000 of this is health insurance and dental.
Cutting back budget, but still having some fun, playing public golf, cheap vacations, ect.
$45,000
Current budget is $65,000. And we still have to watch our money. This is for two of us and we have no debts.
The above are all after tax.
I'm sure if I had to we would find a way to get buy on less, but I don't feel comfortable without health insurance, home insurance, and some money for repair and replacement. Thankfully, unless there is an economic collapse or other catasrophy, I won't have to worry about it.
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02-08-2008, 09:53 AM
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#167
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
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I think Scott Burn's considers the cost of living in a home at 1% of its' value per year.
So, for my house, I should budget $1430 annually for the eventual replacement of the roof, water heater, etc.
Not sure where he came upon this number, however...
__________________
Have Funds, Will Retire
...not doing anything of true substance...
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02-08-2008, 10:06 AM
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#168
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2006
Location: Boise
Posts: 7,882
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Quote:
Originally Posted by ERD50
I agree HaHa. A good example above. 2Cor521 relies on a paid for house and a paid for car (I assume $1200/year covers gas/maint - not payments) to hit that $14,500 number. But he will need a new water heater, a new car, a new roof, etc. Amortize those costs over time and it will add up.
...
IMO, if you don't account for replacement costs, you don't really have a 'budget', you have a fantasy.
-ERD50
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You're correct. I have a 1995 Toyota Corolla that was paid off a long time ago. It's so old that it has stopped depreciating; in fact it appreciated by $80 last year. The $1200 covers gas/ maintenance/ repairs/ licensing/ emissions test, etc.
I understand the mechanics of accounting for replacement costs. To be blunt, I think I stick my head in the sand on this issue as doing the accounting would push out my ostensible FIRE date. I'm too eager and impatient to get there.
2Cor521
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
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02-08-2008, 10:14 AM
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#169
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2007
Location: New Orleans
Posts: 47,500
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Quote:
Originally Posted by HFWR
I think Scott Burn's considers the cost of living in a home at 1% of its' value per year.
So, for my house, I should budget $1430 annually for the eventual replacement of the roof, water heater, etc.
Not sure where he came upon this number, however...
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Out of the air, if he meant to include taxes and insurance!
Surely he didn't. :confused:
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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02-08-2008, 11:28 AM
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#170
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Recycles dryer sheets
Join Date: Jun 2007
Location: Oklahoma City
Posts: 338
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1. 28,400 Base line needed (no mortgage -- no debt -- Federal retiree health insurance premiums included --- amount is before taxes)
2. 2 people
3. Midwest
4. Working (22years in Fed) 16 to go
$28,400 above is Min NEEDED but will have closer to 70k/year at current savings rate.
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02-08-2008, 11:44 AM
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#171
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Full time employment: Posting here.
Join Date: Oct 2007
Posts: 642
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Quote:
Originally Posted by Want2retire
Out of the air, if he meant to include taxes and insurance!
Surely he didn't. :confused:
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I've also heard the 1% per year rule of thumb, for maintenance/replacement costs only, as a long-term average.
__________________
"Making deliberate choices about how to spend your money and your time is the essence of making the most of your life energy." -Bill Perkins, Die With Zero
"I've traded love for pennies, sold my soul for less" -Jim Croce, Age
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02-08-2008, 03:54 PM
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#172
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
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Quote:
Originally Posted by Want2retire
Out of the air, if he meant to include taxes and insurance!
Surely he didn't. :confused:
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Quote:
Originally Posted by TickTock
I've also heard the 1% per year rule of thumb, for maintenance/replacement costs only, as a long-term average.
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What he said...
__________________
Have Funds, Will Retire
...not doing anything of true substance...
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02-09-2008, 01:31 AM
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#173
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Moderator Emeritus
Join Date: Aug 2007
Location: Northern Illinois
Posts: 16,602
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1) $75,000 - no mortgage, no debts.
2) 2
3) Chicago suburbs
4) still working 4 days a week - full FIRE by July 2011 at 56
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02-09-2008, 12:07 PM
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#174
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Recycles dryer sheets
Join Date: Dec 2005
Posts: 62
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Our expenses plus taxes and health in retirement: $78,000. No mortgage. Current ages 52 and 51. One working FT, the other PT. Two college aged children, one graduates in 2009, the other in 2011. Upstate NY, 3 hrs. N of NYC.
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02-09-2008, 02:29 PM
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#175
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Full time employment: Posting here.
Join Date: Jan 2006
Posts: 899
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Quote:
Originally Posted by SecondCor521
Given that, the bare bones budget I posted earlier isn't even bare bones: It includes my car expenses, eating out, air conditioning, and some other things that I don't consider needs. I could probably cut it back to $8K or less pretty easily.
2Cor521
(1) Ignoring the fact that I still have a mortgage, which is not immaterial.
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Me too but DW would have to be one of those non-essential needs that I would have to get rid of
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02-09-2008, 02:45 PM
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#176
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Thinks s/he gets paid by the post
Join Date: Dec 2005
Posts: 1,228
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Let me jest a little...
1) $0/year no mortgage on $2 million paid off apartment, Mercedes car paid for, social security, medicare, eat at soup kitchen, clothes and furnishings from hand me downs, all other expenses paid by barter and trust fund :-)
2) 5
3) New York City
4) FIREd
In case it isn't clear, I agree that many of the estimates here are wildly optimistic. Not because the numbers aren't correct, but because they are not sustainable, relying on expenditures in other years. Or they rely on outside contributions.
I think some people have been treating this exercise as "what is the least that I could withdraw from my checking account in a single year if I have all the resources I have now and didn't have to replace anything". That is an interesting exercise but not at all useful for apples to apples comparison with others.
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02-09-2008, 04:12 PM
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#177
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Administrator
Join Date: Jul 2005
Location: N. Yorkshire
Posts: 34,130
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Quote:
Originally Posted by free4now
I think some people have been treating this exercise as "what is the least that I could withdraw from my checking account in a single year if I have all the resources I have now and didn't have to replace anything". That is an interesting exercise but not at all useful for apples to apples comparison with others.
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I think you may be correct. My bottom floor for RE is $60K/year after tax, but am planning on $70K/year.
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Enough private pension and SS income to cover all needs
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02-09-2008, 04:36 PM
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#178
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2003
Location: Kansas City
Posts: 7,968
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I haven't got a clue what my 'floor' would be - after Katrina, I became less bullet proof after moving inland and let my expenses drift up to about 4% plus early SS plus non cola - cause I don't want my money to exceed my time.
New stuff - medical insurance, car payment, mortgage, cable, cell phone, higher taxes - property, federal, state.
All in maybe 60k with maybe another 20 or so on top if I wish to party till I puke, travel harder, or remodel something.
A long long way from 12k(my one time only 90's low) - don't you just love time in the market - the first ten ER years of cheap bastardhood really paid off - but you can't go home again - but it was fun while it lasted.
heh heh heh - .
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02-09-2008, 07:26 PM
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#179
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2006
Location: Boise
Posts: 7,882
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Yup, DW's and children are expensive. Cheap b*stardhood is precisely that. Not as much fun, but cheap.
2Cor521
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
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02-09-2008, 08:30 PM
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#180
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Full time employment: Posting here.
Join Date: Dec 2005
Posts: 567
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I can live on about 25K plus medical. I could probably live on less, no mortgage, private well and septic tank so low utilities, taxes reduced for low income elderly and I could grow a garden so might survive on 10K. We heat with wood.
I will have more income because I will get SS of about 14K and have enough keep about 400K invested so 16K from that and maybe 8K from rental income so will have 38K without dipping into savings. Every year I wait adds about 50K to my nest egg.
Western WA rural
One person to speak of, roommate pays me rent we don't share money so I don't pay his expenses.
I am still working, I don't mind and roommate can't retire yet.
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