2021 spending thread

[W2R]

This year was odd because the first 4 months I was divorced but sharing expenses with my ex as we were still living in the house. The last 8 months I lived in the condo I bought. I spent 35k which included taxes. I didn’t travel but had significant vet expenses which were 2700. I spent a additional 12k remodeling my condo and buying appliances and some furniture which came from my savings. Luckily my son provided all the labor which was a significant savings.

Maybe the condo remodeling costs could be thought of as part of the purchase price, since these were initial costs that made the condo into the kind of place you wanted to purchase, right? Anyway that is how I thought of my humungous landscaping project that I did right after I bought my Dream Home (back in 2015). I knew I'd have to do that project even before I made my offer on the house, and I started on it ASAP. I felt better about the landscaping when I treated it like a one time expense.

Your vet expenses were rugged! Whew. Frank bought me a Teddy Bear which doesn't require any vet bills but it's not quite the same.

 

[Ronstar]

I'm at $99k ytd with a few expenses yet to come in 2021. Jeep down payment and Jeep payments make up about $25k. BTD on my toys $21k. DW pays some of the bills but I don't track her expenses.

 

[jfn111]

Expenses
-$93,474.62
We are apparently in the RobbieB school of BTD.

 

[flyingaway]

Our two-person 2021 spending, including everything, taxes, health insurance, travel and entertainments, etc, is about $70,000, which is slightly lower than what I expected. We did not do a $6,500 Europe trip this year, but a Mexican trip, which costed us $650 (free airline tickets with miles).

 

[athena53]

I spent an additional 12k remodeling my condo and buying appliances and some furniture which came from my savings. Luckily my son provided all the labor which was a significant savings.

Yeah, DH and I had a VERY expensive year when we downsized- fixing a few things on the house we sold (including a surprise bill for $5K to un-clog a basement drain) and much more than we expected to make improvements to the house we bought (enclosing porch, replacing a few windows). It smoothed out after that and carrying costs on this place are definitely cheaper.

My tally was over $100K but sustainable; net worth continues to increase (average of 4.5% annually) in the 7 years since retirement. Of that, 35% went to charity, 8% to travel (low for me), 11% to taxes, 13% to home improvement (exterior painting, deck rebuild, quartz countertops) and 10% to out-of-pocket medical (mostly 2 dental implants).

 

[tmm99]

It's probably going to be around 70K USD including tax, which is way higher than my annual budget, due to some planned and unplanned spendings (all necessary). This number is still much lower than the amount FireCalc says I could spend, so I'm good with that.

 

[deserat]

Thank you W2R for putting this out there.

I retired effective 1-Feb-21 and the following Expenses Listing includes right at $60K in One Off 1st Year Retirement Expenses that we planned for.

ETA - All expenses were within our pre-retirement planned budgeting.

ETA 2 - Per Mr. Wizards good catch - these are all Net numbers and do not include accounting for the dreaded Income Taxes - we are just starting that exercise and I will try to post back in 1st Qtr 2022 with the results and how the numbers look then.

But even accounting for that - we have spent alot. I am abit sheepish to put it out there but it is good to get feedback and criticism from the folks on this board.

There is no doubt in our minds that advice was in large part how ms gamboolgal and I were able to plan for retirement when I joined in 2012. Sincere thanks to all.

It will be interesting to post 2022 stats next year and see how we compare.

Ok - Nomex (Fire Retardent) Carhartt work shirt and jeans and steel toed Cowboy Boots is on ...... Flame away.

First, thank you for sharing this. It is indeed educational. Second, even though the sum is large, you also have some large expenditures that to me are non-recurring and would not flow into next year. Third, you are very generous relative to your other outflows. Fourth, I will be plussing up my travel budget to almost 2x yours, so don't feel guilty about that!!!!

Happy New Year....

 

[PaunchyPirate]

My 2021 spending is a little over $45k. I am single. This is down from $95k in 2020 where I had a large tax bill due to some investment sales and purchasing a new vehicle.

This year's single biggest expense was repainting my house for $7400.

 

[NW-Bound]

I don't spend that much money, but I see that the lowest-spending posters have total expenses that's the same as my housing costs (added up by Quicken). And I have no mortgage.

 

[REWahoo]

I don't spend that much money, but I see that the lowest-spending posters have total expenses that's the same as my housing costs (added up by Quicken). And I have no mortgage.

Are you including both your houses in the total?

 

[NW-Bound]

Are you including both your houses in the total?

Yes. No maintenance, repair, or remodel this year.

PS. Oops. I lied. Quicken said there was some repairs, judging from some amounts spent at Home Depot and at the hardware store at the high-country house. Plumbing parts, PVC pipes for the underground sprinkler repairs, etc... Some drywall patching compound. A piece of lumber here and there. Chlorine, acid, and phosphate remover for the pool, etc... I did not think that they were much, but it was still $3050.82 total just for these. It did not feel right.

Wow, little things added up. Without Quicken, I would not know.

And of course, I included RE taxes, insurance, and utilities in the housing cost.

 

[REWahoo]

Our expenses for the year are ~25% less than our income from our RMDs, SS, and DW's small pension. Total spend is roughly the same as 2020, and both years are down substantially from our spending prior to Covid.

 

[Sunset]

This year mine is going to be $35K but about $8K of that is pre-paying some costs for next year.
Expenses have been low as only 1 short cheap cruise to Alaska.

DW's spending is not tracked but since I paid for most all expenses this year, was probably just a few thousand.

 

[2017ish]

...

But even accounting for that - we have spent alot [180K without taxes]. I am abit sheepish to put it out there but it is good to get feedback and criticism from the folks on this board.

...
Ok - Nomex (Fire Retardent) Carhartt work shirt and jeans and steel toed Cowboy Boots is on ...... Flame away.

As long as you are on budget, enjoy! As others have said, we all are different--even though we have things in common.

We are on the road and don't have all the data with us, but our travel spending this year came in at less than 6 figures, both because of good deals internationally, and because we are saving some powder for a major trip next year (if covid responses in the target countries permit). So we were under our retirement average.

Although we track all spending, travel is really the only category we focus on, as it is the biggest by far (except for taxes, because of Roth conversions), and is completely discretionary.

 

[bbbamI]

Both retired in 2009. At the time dh was 54 and yours truly 51. DH receives a small non cola'd pension. We own our home and have no mortgage. The WR is based on the portfolio balance at the beginning of each year.

All expenses are included...from marshmallows to federal taxes.

2009 Projected WR.....0 (dh worked part of that year, we had to take no reserves)
2010 Projected WR....3%......Actual 2.71%
2011 Projected WR....3%......Actual 3.27%
2012 Projected WR....3%......Actual 2.87%
2013 Projected WR....3.5%...Actual 4.94%
2014 Projected WR....3.5%...Actual 2.68%
2015 Projected WR....3.5%...Actual 3.57%
2016 Projected WR....3%......Actual 2.01% (dh started SS in June)
2017 Projected WR....3%......Actual 1.5%
2018 Projected WR....3%......Actual 4.1%
2019 Projected WR....3%......Actual 1.17%
2020 Projected WR....3%......Actual -.75% (I started SS in January)
2021 Projected WR....3%......Actual -.63%
2022 Projected WR....3%......Actual TBD

 

[youbet]

Thank you W2R for putting this out there.

I retired effective 1-Feb-21 and the following Expenses Listing includes right at $60K in One Off 1st Year Retirement Expenses that we planned for.

ETA - All expenses were within our pre-retirement planned budgeting.

ETA 2 - Per Mr. Wizards good catch - these are all Net numbers and do not include accounting for the dreaded Income Taxes - we are just starting that exercise and I will try to post back in 1st Qtr 2022 with the results and how the numbers look then.

But even accounting for that - we have spent alot. I am abit sheepish to put it out there but it is good to get feedback and criticism from the folks on this board.

There is no doubt in our minds that advice was in large part how ms gamboolgal and I were able to plan for retirement when I joined in 2012. Sincere thanks to all.

It will be interesting to post 2022 stats next year and see how we compare.

Ok - Nomex (Fire Retardent) Carhartt work shirt and jeans and steel toed Cowboy Boots is on ...... Flame away.

No spending for income tax? That's my biggest category.

 

[youbet]

Wow, little things added up. Without Quicken, I would not know.

That's why I don't use Quicken........ I don't wanna know!

Pretty much everything we spend funnels through the checking account. So I just add up the outflows from there and (again this year) decide we're doing OK. If some period of time looks way out of whack, I scan the checkbook for spending reminders. If the big checkbook outflow was paying the CC bill, then I scan the CC statement for that month. But a Quicken level of detail....... no thanks!

 

[NW-Bound]

With not many days left in the year, it is safe to say my WR this year is less than 1%.

But, but, but how come the WR was even lower last year, and in addition the market god has been incredibly generous?

Oh, it made sense when I looked again at the Quicken screen. I bought a new vehicle in Jan 2021.


2020 WR: 0.62%

2021 WR: 0.99%

 

[RobbieB]

This year's spending was $182,000.

 

[youbet]

This year's spending was $182,000.

Including income taxes?

 

[RobbieB]

Yeah. I just use the tool on the BofA site for the checking account. Everything is paid out of that account, so property tax, state and federal estimates, health insurance, the works.

 

[NW-Bound]

...35% went to charity...

The above number impressed me more than anything else on this thread.

My hat off to you.

My highest number in one year was 13%. It's generally below 10% (I don't go to church and don't tithe).

 

[street]

Yeah, DH and I had a VERY expensive year when we downsized- fixing a few things on the house we sold (including a surprise bill for $5K to un-clog a basement drain) and much more than we expected to make improvements to the house we bought (enclosing porch, replacing a few windows). It smoothed out after that and carrying costs on this place are definitely cheaper.

My tally was over $100K but sustainable; net worth continues to increase (average of 4.5% annually) in the 7 years since retirement. Of that, 35% went to charity, 8% to travel (low for me), 11% to taxes, 13% to home improvement (exterior painting, deck rebuild, quartz countertops) and 10% to out-of-pocket medical (mostly 2 dental implants).

That is outstanding!! My hat also goes off to YOU.

At year end I will see what percent of spending goes to charity. It has been in the 25% range in the past.

 

[kgtest]

Spent over 120k.

35k to mortgage note, property tax and insurance.
25k on a backyard reno (patio slab, steel underdecking, electrical work, new door, irrigation, new yard and new hardscape river rock and boulders.
24k on childcare.
16k on vacations. Some of that was pre-paying for airfare and hotel into 2022 though.

The rest went to bills, entertainment and charity.

Worth noting investment expenses were only $395.00 for our self managed portfolio that's returning over 26% this year.

Edit to add, we had a tougher time saving this year with the remodel, but still saved "enough". Hoping to double our savings next year.

 

[rodi]

Ours was higher this year - but we had some expected large expenses... and some unexpected ones....

All in was $130k. (It hurts just to see that.) And this was *not* FAT fire.

Big one was $24k in various educational expenses - most qualified and therefore pulled from the 529. Older son is going to community college, younger son is enrolled full time, with dorm at CalPoly. Also some stuff I tossed in that category like cap & gown, senior HS pictures, etc. Older son is hoping to go back full time this coming year and the $$ will kick up even more. But we have 529 funds to cover.

Another unexpected expense was medical - older son had ameloblastoma recur. We offered to pay for the OOP costs for this. He has decent insurance but it was still $4k we weren't planning on. (Vs the $44k before his insurance.)

And - travel. DH did some car travelling this year - with me joining him (by plane) for part of one of the trips. Add in that we pre-paid our Machu Picchu/Galapagos trip for next year and put money towards our cruise/europe trip this coming spring... Travel hit $24k.

Some of the other stuff improved or stayed the same. Groceries went down (family of 4 till Aug/Sept - then family of 2 after that.) $10k Groceries is everything bought at costco/vons/sprouts... so it includes booze, some clothes, toiletpaper, etc.

Insurance - home, health, umbrella, car, every type of insurance. $17k

Auto: - repair, purchase, repair, gas... everything but insurance. $10k. This included a van purchase and the materials to build out camping beds, new power steering pump, new differential. We now own 4 cars - one of which resides with older son. We do a lot of the maintenance ourselves.

Utilities (gas/electric/water) $3500
Phone (magic jack and t-mobile * 4) - $1300
Entertainment (cable, internet, movies, netflix) - $3000

Since taxes were mentioned - state and federal taxes - $9.3k

Last year was $90k... Travel, education, and medical definitely kicked it up for 2021