2018 Spending Summary and Analysis

[DrRoy]

$25,650?? I wish! We spent more than that on travel. Including an allowance for car replacement, we were at $113K this year vs. $102K last year, including all taxes. The travel included a guided photo tour of Patagonia, trips to NC/WVa and NV/CA, plus prepayment of a Caribbean cruise early next year and air to London.

 

[Ronstar]

I'm afraid to look, but I'll probably tally it all up early Jan. The house remodel probably ran 40-50k. Other than that, I probably had a normal spending year.

 

[FIREd]

By June 2018 (the last time I checked), we were on track to spend $75K this year, which was right on budget. But then we divorced and I stopped tracking my spending. My regular expenses seemed to drop post separation (less time for hobbies and entertainment) but one-time expenses blew up (lawyers, movers, taxes, car purchase, etc...). I really don't want to add it all up...

Things should settle down from here on, although I still need to buy a condo and some furnishings in the new year (I already segregated the funds for those purchases from the rest of my retirement savings). I will start tracking my spending again on January 1st. I will try to keep my budget for 2019 around 29K euros (~$33K) - excluding the condo and furnishings purchases. This represents a conservative withdrawal rate, while I get used to my new life in Europe and as a bachelor.

 

[NW-Bound]

Our expenses have been down quite a bit since the children got out of college, moved out, and we got past our daughter's wedding. Now, they gift me XO Cognac instead of my wife buying it for me, so that saves a couple hundred bucks.

The most important thing is our WR stays below 3%, unless the market tanks further. Other than that, I do not care about the category breakdowns that much, except out of curiosity to see what I spent more on one year against the next.

 

[SmallCityDave]

My guess is that many of us are adding up our spending for 2018 right now and want to tell someone about it. How was your spending compared with last year? Are you happy with the amount you spent? This is a thread for saying as much as you WANT to say and feel comfortable sharing. If you do not feel comfortable even reading this type of thread, please stop now! There are lots of other threads to read.

The purpose of this thread is.... fun.

We have a wide range of income and spending on the board, so I'd suggest you don't compare yourself to others on the forum; no matter how much or how little you spent, there are others just like you. It's more productive to compare your spending to that of your 2017 self, or to your goals. Do you want to report it as all inclusive, or in categories? Either way, here's your thread so have at it.

These are my totals for every category except estimated income tax payments. I am 70 years old, and live alone in a 1500 sf house in an inner/urban suburb of New Orleans.

Category | Total for 2018| Comments
Groceries | $2,433.76 | Includes toiletries, detergent, etc.
Restaurants | $2,986.25 | lunch every day plus some dinners
Gasoline | $357.26 | Everything is close by.
Car | $1,773.73 | insurance, maintenance, registration
House | $5,734.38 | insurance (homeowners', wind-and-hail, and flood), prop. tax, mowing, maint.+upgrades
Utilities | $2,817.58 | internet, nat. gas, electricity, water, trash, sewage, cell
Fitness | $504.00 | gym fees
Clothes | $560.76 | casual "retiree wear", underwear, shoes
Miscellaneous | $2,456.55 | Gifts, laptop, printer, InstantPot, etc
Video Games, apps | $707.34 | Gamecube, Nintendo Switch, games, accessories
Medical | $5,319.19 | insurance, Medicare, prescriptions, dentist, HR monitor, etc
Total | $25,650.80 | plus income tax

(BTW, here's the forum explanation of how to set up a table like this one for those who might want to).

COMPARISON WITH 2017: My 2017 numbers are available here. This year I did not have all those dental implants and other dental work to pay for like I did last year, so I spent $9656 less on medical(dental) than last year. Overall, including everything but income tax for both years, I spent about $11,296 less this year than I spent in 2017.

AM I HAPPY WITH HOW IT ALL WORKED OUT? Yes, this year I was really lucky because I didn't have a lot of unexpected big expenses. I will put any excess aside for years when I am clobbered by the expense of a roof replacement, dental implants, new SUV, or whatever. I am happy with what I spent, especially since this year I started my age 70 SS so I have more to spend now.

AM I SOMEHOW TO BE REGARDED AS ADMIRABLE OR VIRTUOUS FOR SPENDING THIS MUCH OR THIS LITTLE? I don't think that I spent a lot more than, or a lot less than, the rest of our members. And if I did, I don't really give a hoot because that is not where I get my feelings of self worth (and I imagine the same is true for you, too).

OTHER COMMENTS: The above 2018 numbers are not the final numbers but hopefully very close (done on 12/28). I added in my average restaurant lunch cost for the three lunches I have yet to buy and eat this year. I don't foresee buying anything else before January 1st.

That's great thanks for sharing.


A couple of questions, do you have a set budget for these categories or do you spend and record the numbers? The other part of the question is do you have a set amount that you withdraw every month and spend within that amount or do you spend as needed?


This is very encouraging to me and it seems it's very scalable.

 

[sengsational]

Will report my numbers on Jan 1. Still 3 days of spending left....

We need to start a poll... If you're at a bar on new year's eve, do you pay your bar tab before midnight and open a new tab to segregate those 2019 drinks into the appropriate year?



I won't be doing the numbers until February, or so. I don't see how you can do it properly until after the credit card statements get reconciled. I suppose someone could pull transactions off of a web interface before the statement end date, but that's doubling the work.

 

[Dtail]

We need to start a poll... If you're at a bar on new year's eve, do you pay your bar tab before midnight and open a new tab to segregate those 2019 drinks into the appropriate year?



I won't be doing the numbers until February, or so. I don't see how you can do it properly until after the credit card statements get reconciled. I suppose someone could pull transactions off of a web interface before the statement end date, but that's doubling the work.

Like W2R and some others, I actually record all my expenses on a daily basis.
Might be crazy to some folks, but I am willing to put in the time of........ 5 minutes a day to do it. Vacation/Travel is the one exception, coz all those expenses go into travel, so doesn't matter daily.

 

[steelyman]

Like W2R and some others, I actually record all my expenses on a daily basis.

Might be crazy to some folks, but I am willing to put in the time of........ 5 minutes a day to do it. Vacation/Travel is the one exception, coz all those expenses go into travel, so doesn't matter daily.

Not so crazy. I make almost all payments by credit card, put the receipts in my wallet, enter into Quicken if they’re not already there as recurring transactions. The paper receipts don’t build up so fast that they can’t wait till the weekend (or longer) to clear out.

If you categorize you can get useful spending and budgeting information. I do categorize a lot of things in a catch-all “misc” category. Withdrawals from ATMs (not often) go into “cash”.

But I spent way too much in 2018, that’s all I’ll contribute to the thread. I’ll be better in the new year!

 

[Dtail]

Not so crazy. I make almost all payments by credit card, put the receipts in my wallet, enter into Quicken if they’re not already there as recurring transactions. The paper receipts don’t build up so fast that they can’t wait till the weekend (or longer) to clear out.

If you categorize you can get useful spending and budgeting information. I do categorize a lot of things in a catch-all “misc” category. Withdrawals from ATMs (not often) go into “cash”.

But I spent way too much in 2018, that’s all I’ll contribute to the thread. I’ll be better in the new year!

Interesting. My ATM withdrawals are recorded in the cash category. Then if we use it for food, I add to the food category and subtract it from the cash category. Try not to use cash much in order to maximize CC rewards.
A little harder to keep track of, but get it within $40 monthly.

 

[FANOFJESUS]

For two in the Midwest

Category Total for 2018 Comments
Groceries $8,400 Includes toiletries, detergent, miscellaneous etc.
Restaurants $960
Gasoline $720 Everything is close by.
Car $490 insurance, maintenance, registration
House $2,950 insurance (homeowners), prop. tax, mowing, maint.
Utilities $2,400 internet, nat. gas, electricity, water, trash, sewage, cell
Clothes $200 casual "retiree wear", underwear
Medical $1440 insurance, Medicare, prescriptions, dentist, etc
Total $17560 plus income tax

 

[RetireAge50]

We spent $92,140. Travel was the biggest item at $31,727 (136 days all over the world). Also spent about $21,000 for mortgage and home upgrades. Taxes and giving were about $6,500 each. The rest was for just regular life (which I do not track by categories).

 

[PatrickA5]

We spent $205K. Waaay over budget. But, eliminating one time expenses and DS's college we came in right around $100K. Our hope is that once DS is off the payroll in a couple of years we should settle down in the $80K range during retirement. Still too high, but affordable.

This doesn't include income taxes. No mortgage, MCOL.

 

[RobbieB]

A hundred grand on a new car, wedding, home improvements and moving.

About half that on food, drink, utilities, insurance and "other"

 

[Dtail]

For two in the Midwest

Category Total for 2018 Comments
Groceries $8,400 Includes toiletries, detergent, miscellaneous etc.
Restaurants $960
Gasoline $720 Everything is close by.
Car $490 insurance, maintenance, registration
House $2,950 insurance (homeowners), prop. tax, mowing, maint.
Utilities $2,400 internet, nat. gas, electricity, water, trash, sewage, cell
Clothes $200 casual "retiree wear", underwear
Medical $1440 insurance, Medicare, prescriptions, dentist, etc
Total $17560 plus income tax

Here I thought W2R was the LBYM queen (King).
Nothing on entertainment or travel?

 

[Sunset]

Interesting. My ATM withdrawals are recorded in the cash category. Then if we use it for food, I add to the food category and subtract it from the cash category. Try not to use cash much in order to maximize CC rewards.
A little harder to keep track of, but get it within $40 monthly.

I just record what I spend the money on, so I don't record if I take out $$ from bank, or cash a check. When I spend it, is when I record it.
I like it simple.

Our main spending categories for 2 in midwest, some not shown, but total is the real total.

We don't have a budget, we just track what we spend, so if it got crazy, we would fix it somehow.

Groceries	$3,096.32
Restaurant	$1,090.52
Fuel	$865.34
House & Utilities	$2,874.76
Travel	$17,571.61
Technology	$1,244.30
Booze	$350.82
Clothes	$571.72
Medical & Dental	$5,428.59
Insurance Auto House Umbrella	$2,668.83
Total without Taxes	$42,700

 

[W2R]

A couple of questions, do you have a set budget for these categories or do you spend and record the numbers? The other part of the question is do you have a set amount that you withdraw every month and spend within that amount or do you spend as needed?

This may not work for everybody, but for me.... if I just keep very close track of what I spend, and record every cent, then my spending just automatically seems to stay where it needs to be. If I spend more than planned one month, then I find myself cutting back after that.

So, I don't even have an overall budget, much less individual allotments for each category. I guess you could say that I spend as needed. But I do know what would seem like insane over-spending, to me, and when I see it I correct ASAP. If I know exactly what I am spending then I can't put my head in the sand and ignore it. Knowledge is power.

I withdraw all the money for the year from Vanguard during the first week in January, and it is in my local brick and mortar bank accounts during the rest of the year. This is supplemented by equal monthly payments from the TSP G Fund, which is almost like cash because it can never drop in share price, and I also get monthly deposits from SS and my mini-pension.

It helps that I am the only one in my household and I only have to oversee my own spending, not the spending of two or more people.

 

[W2R]

I won't be doing the numbers until February, or so. I don't see how you can do it properly until after the credit card statements get reconciled.

Credit cards do complicate things! Here's how I have been handling this type of purchase, though it may not be the best system but here it is. When I buy something, I record it in my Excel spending spreadsheet. It doesn't matter to me when or how I pay for it; it goes in the month in which I spent it and it counts as having been spent that month.

For example I just bought a Nintendo Switch the day before yesterday, and it went on my Amazon Visa card (which automatically pays in full each month). I included that in my December spending above, even though the corresponding payment will not be made for a while.

 

[Red Badger]

We'll come in near $100K. But that includes a trip to Europe (~$20K) and nused car ($12K). Subtract those and we're in line where we sorta need to be.
New roof coming in late 2019, but that's planned and budgeted.

Damn that year went fast!

 

[W2R]

Here I thought W2R was the LBYM queen (King).
Nothing on entertainment or travel?

I am female, a 70-year-old divorced woman. And, my spending probably sounds more LBYM than it really is; I just don't like travel, don't have dependents, live in a fairly LCOL area, and don't have any debt or mortgage to pay off. I probably spend more than a lot of people and I have a lot of flexibility. Mostly I don't care what others spend. We are all in different situations with different, very genuine spending needs as well as desires. I love video gaming and bought two consoles and games for them this year. Life is good.

 

[Dtail]

Credit cards do complicate things! Here's how I have been handling this type of purchase, though it may not be the best system but here it is. When I buy something, I record it in my Excel spending spreadsheet. It doesn't matter to me when or how I pay for it; it goes in the month in which I spent it and it counts as having been spent that month.

For example I just bought a Nintendo Switch the day before yesterday, and it went on my Amazon Visa card (which automatically pays in full each month). I included that in my December spending above, even though the corresponding payment will not be made for a while.

Bolded - Same here.
In your other post, you mentioned you move your yearly withdrawal to a B and M local bank.
Why not use an online bank like Ally for example and then transfer it monthly to the local bank, so you can pick up a few hundred in interest?

 

[dixonge]

I am female, a 70-year-old divorced woman. And, I don't think my spending is at all LBYM really; I just don't travel, don't have dependents, live in a fairly LCOL area, and don't have any debt or mortgage to pay off. Probably all that makes my spending look lower than it really is but I probably spend more than most people living in the area.

We came in slightly below you, but it feels like it should have been more. However, we spent nearly $5K traveling, so I guess we did good all in all

 

[W2R]

Bolded - Same here.
In your other post, you mentioned you move your yearly withdrawal to a B and M local bank.
Why not use an online bank like Ally for example and then transfer it monthly to the local bank, so you can pick up a few hundred in interest?

Well, I probably should but don't. I have been meaning to look into that.

We came in slightly below you, but it feels like it should have been more. However, we spent nearly $5K traveling, so I guess we did good all in all

I think that is great, especially with $5K traveling!

 

[Dtail]

I am female, a 70-year-old divorced woman. And, my spending probably sounds more LBYM than it really is; I just don't like travel, don't have dependents, live in a fairly LCOL area, and don't have any debt or mortgage to pay off. I probably spend more than a lot of people and I have a lot of flexibility. Mostly I don't care what others spend. We are all in different situations with different, very genuine spending needs as well as desires.

Yes sorry my question was to FANOFJESUS.
And yes I know your age and sex; was just putting King in parenthesis as not knowing if FANOFJESUS was male or female.

 

[W2R]

Yes sorry my question was to FANOFJESUS.
And yes I know your age and sex; was just putting King in parenthesis as not knowing if FANOFJESUS was male or female.

Oh oops! I thought you meant me. Aaagh, just ignore that post then.

 

[youbet]

About the same as last year. Needs improvement.

I've been mulling this statement over........ I wonder what you mean by "needs improvement?

If you're still in the accumulation phase vs being FIRE'd, you might be trying to spend less, accumulate faster and FIRE sooner. But if you're already FIRE'd, it's hard to know what "improvement" would mean.

You think you're spending too much and fear you'll outlive your FIRE stash so want to throttle back a bit now?

You are plagued with the "I can't spend" disease that some retirees have and despite having plenty of income and investments you're foregoing experiencs you crave but are too cheap and/or fearful to spend on? "Improvement" would mean opening up the wallet a bit and enjoying life more since you can afford it?