2019 Spending Summary and Analysis

[Moemg]

I came in $14,000 under budget and that is the only number I care about . I only travelled once so that may be the reason .That includes a $10,000 contribution to my grandsons education funds . All in all I am pretty pleased with the numbers .

 

[Octogirl]

2019 was last year of full time employment for me (age 64.5) and 65 yr old DH

We spent about $70,000 overall, estimates:

Travel: $20k 4 trips to grd kids but nothing overseas
Health: $3k
Property Taxes: $7,200
home/car Insurance, $4 k

Utilities, Cable,Cell Phone, $4,200

Food and Misc: 7k
Gasoline: 3.2k

Auto and Home repair: 2k
Donations/ membership : 6k

Gifts (B day, Holidays, 7 gr kids) 3.5k

 

[RonBoyd]

We no longer "budget." We spend as if we won't live forever... but expect to for a long time.

Expenses
Account Adjustment	(2.80)
Automobile
Emission Inspection	25.00
Gasoline	88.00
Maintenance	453.19
Plates	171.04
Repair	164.90
Supplies	23.76
Automobile - TOTAL	925.89
Bank Charges
Service Charge	0.75
Bank Charges - TOTAL	0.75
Bank: Foreign Transaction Fee	8.34
Charitable Donations
Deductible	80.40
Charitable Donations - TOTAL	80.40
Clothing
Brenda	48.88
Clothing - TOTAL	48.88
Computer
Hardware	2,632.93
ISP & DSL	903.68
Software - Invst Mgmnt	125.00
Software - Non-deductible	1,413.48
Supplies	602.89
Wireless Broadband	379.58
Computer - TOTAL	6,057.56
Dining Out	905.84
Gifts
Personal	219.94
Gifts - TOTAL	219.94
Groceries	5,044.47
Healthcare
Co-Pay	346.47
Deductible	64.89
Non-Prescription	104.59
Other	356.41
Physician	50.00
Vision	327.67
Healthcare - TOTAL	1,250.03
Home
Furnishings	218.98
Furnishings	589.95
Kitchen	592.35
Maintenance	133.92
Misc	144.11
Postage	84.25
Security	99.00
Supplies	213.81
Home-Other	119.95
Home - TOTAL	2,196.32
Insurance
Automobile	1,223.41
Brenda - Health	1,626.00
Homeowner's-Renter's	1,133.00
Roadside Assistance	169.00
Ron - Health	1,626.00
Insurance - TOTAL	5,777.41
Interest Expense
Mortgage Interest	782.52
Interest Expense - TOTAL	782.52
Investing
Deductible Expenses	193.85
Investing - TOTAL	193.85
Leisure
Birds	114.21
Books & Magazines	58.43
Cultural Events	143.00
Entertaining	5.99
Genealogy	114.00
Newspapers	172.30
Photography	530.08
Television	3,081.32
Leisure - TOTAL	4,219.33
Liquor
Brenda	755.26
Ron	1,613.39
Liquor-Other	221.66
Liquor - TOTAL	2,590.31
Membership
Buying Club	225.00
Organizations	90.00
Membership - TOTAL	315.00
Miscellaneous	3.15
Personal
Personal Care	89.42
Personal - TOTAL	89.42
Personal Care
Cosmetics	47.94
Hair Care	17.50
Other	9.54
Personal Care - TOTAL	74.98
Taxes
Colorado Sales Tax	732.89
Federal Income Tax	8,572.50
Ownership Tax	6.00
Real Estate Taxes	689.33
State Income Tax	1,684.00
Taxes-Other	17.27
Taxes - TOTAL	11,701.99
Travel
Gasoline	2,062.21
Hotel	161.45
Meals	106.05
Membership	69.95
Other	30.00
Toll Roads	242.45
Tours	2,365.00
Travel - TOTAL	5,037.11
Utilities
Gas & Electric	2,794.89
Telephone	3,328.17
Water-Sewer-Garbage	477.18
Utilities - TOTAL	6,600.24
Expenses - TOTAL	$54,120.93

 

[Kelor]

Are these expense totals collected using Emoney or something? Are all expenses via credit card? Or do you manually enter other things in?

I see Fidelity Full View now has more Emoney capabilities than it did a few months ago. Not yet being retired, I haven't taken advantage of it.

 

[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. Even tho we doubled our travel and home improvements in 2019, we were still under budget.

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% (health issues)
2012 Projected WR....3%......Actual 2.87%
2013 Projected WR....3.5%...Actual 4.94% (new car)
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% (blow that dough)
2019 Projected WR....3%......Actual l.17%
2020 Projected WR....3%......Actual TBD (I'll start SS in January)

I like to stay under 3% each year, but will not panic if we spend more. Each year brings new 'surprises'....gotta roll with it.

 

[grasshopper]

That's funny. Your total spending numbers are not "total".

Good catch but these are only the big 10, I left off beer, internet, landline maybe 9 more categories under 1%. I guess $7K missing in action is a big number, but Mr Quicken knows the real story. Thanks David

 

[JustCurious]

ETA: Oops, I see now that I may have misinterpreted JustCurious post... I thought that he was questioning grasshopper not including the amount spent on the car but I see now that he may have just been questioning grasshopper's math. Mea culpa.

No, you were right the first time, I was questioning not including the amount spent on the car. I recognize there are different ways of looking at this, but I think money spent on a car is spending, otherwise, you could buy a new car every year and not count it in your spending.

Let's say you have two people who spend the same amount every year, except for the purchase of a new car. Both people spent $40,000 on non-car expenses, but person B spent $50,000 on a new car with a total of $90,000. Would it be fair to say that they both spent the same amount that year? Could person B keep buying a new car each year and claim to spend the same amount as person A? I don't think so.

 

[RonBoyd]

Are these expense totals collected using Emoney or something? Are all expenses via credit card? Or do you manually enter other things in?

I see Fidelity Full View now has more Emoney capabilities than it did a few months ago. Not yet being retired, I haven't taken advantage of it.

To whom are these questions directed?

 

[pb4uski]

No, you were right the first time, I was questioning not including the amount spent on the car. I recognize there are different ways of looking at this, but I think money spent on a car is spending, otherwise, you could buy a new car every year and not count it in your spending.

I can see that it is and it isn't. I don't include car purchases and such in in spending... but they are obviously withdrawals.

I view spending as normal recurring expenses of the lifestyle to which we have been accustomed.

But at the same time, that lifestyle includes replacing our cars every 5 years or so. So what to do?

I depreciate our boats and cars in Quicken and considered that depreciation as spending when I assessed whether we had enough rather than providing for a big lump every 5 years and that depreciation is included in my spending.

 

[jollystomper]

2019 was my first full calendar year for retirement. We no longer budget, but my retirement plan did estimate spending $128K (including taxes) for 2019. This is well under what FireCalc and other calculators say we could spend, but this is still a very comfortable level for us.

Our actual spending came in at $143,305. Higher than the plan, but still under the safe levels. In additional, our plan had us withdrawing $50K from cash, but we only had to withdraw $26K to cover these expenses.

Most of our top expenses categories we could reduce if we needed to. The following categories accounted for 85% of our spending:

Taxes (Fed/State/Local): $36,805 - I decided to begin conversions from 401K and traditional IRA to Roth, which I had not put in the plan, so that drove this higher

Vacation: $21,846 - we traveled in comfort

Charity/Gifts: $17,911 - additional sharing in a good financial year

Auto (purchase/gas/fees/repairs): $14,599 - includes purchase of a third vehicle

Medical: $14,247 - fortunately no big issues this year

Mortgage: $7,440 - now seriously looking at paying balance off

Groceries: $6,544- (includes purchases for meals DW prepared for others

Household (maintenance/improvement/supplies): $5,034 - the bulk of this were items we chose to do, fortunately very few unexpected repairs

 

[W2R]

I’ve shared in prior years, but we moved and sold/bought a house in 2019 so our spending is just now reverting to a new mean after a 6 month “correction”

It's hard to know how to handle the expenses of moving, selling, and buying a new house like that! I did that back in 2015 and it seemed like it involved a lot of money since both houses were paid off. I think we each need to figure out how to handle this in whatever way seems best to us.

For me, the best way to handle it as far as WR was concerned, was to separate all the expenses related to buying, selling, and move. Then, I regarded these expenses as a permanent reduction of my nestegg and did not include them in my spending or WR for the year. To me that made sense; it was like I was starting my retirement over again, in a way. It is unlikely that I would ever buy another house so this is a one time only situation.

My annual WR, based on the prior 12/31 portfolio value:

2010: 2.61%
2011: 1.98%
2012: 2.12%
2013: 2.40%
2014: 1.70%
2015: 1.72% (plus an additional 6.92% for buying, selling, and moving)
2016: 1.75% (based on new, lower portfolio value)
2017: 1.58%
2018: 0.60%
2019: 1.23%

 

[rkser]

2019 Total Spending was about around the same as previous years, although the categories have had major changes.

I am 63, DW 58, kids are on their own, will start withdrawal from Portfolio & CDs in 2021, here goes from the Full View in Fidelity -

Gifts - 23415
Insurance - 23654 (including Health Insurance )
Taxes Prepaid - 20048
Home - 15181 (Services & Supplies etc.)
Travel - 14420
Food - 11339
Utilities - 7344
Shopping - 4417 (Various, including Amazon)
Doctors & Pharmacy - 3585
Auto & Transport - 2522
Entertainment - 1616
Health & Fitness - 1338 (Gym etc.)
Pocket Money - 913
Pets - 669
Fees & Chrges - 583
Education - 324
Business - 65
Legal - 55
Shipping - 49
Unclassified - 22

Total Expenses - $ 131260 (There about)

(Savings of 72525 + Expenses of 131260 = $ 203785 )

Last year Market Returns were the best for me so far, with 55/45, so money wise all in all a good year. Wishing every one a happy & fruitful 2020 !!

 

[FANOFJESUS]

We came in at 22k for 2019

 

[Kelor]

To whom are these questions directed?

I guess anyone. I've never done a personal budget that was so detailed. I find it interesting and something that could consume some down time in retirement!

 

[RonBoyd]

I guess anyone. I've never done a personal budget that was so detailed. I find it interesting and something that could consume some down time in retirement!

You may want to visit this thread (http://www.early-retirement.org/for...oneydance-as-a-quicken-substitute-101422.html) for some direction. You are on the right track though.

 

[Charlotte]

We spent about $110k for a family of four living near Charlotte NC... The biggest single line items from the $110k are:

22k for one kid’s college expenses
11k for a new (used) truck
9k for a 15 day trip abroad
7k on our healthcare deductible (unexpected outpatient surgery)
The rest is our ordinary living expenses.

 

[Winemaker]

Another good year, there was money in the checkbook last night just before 12. All income and related matters already entered into TurboTax, although I'm waiting for 2019 depreciation schedules. Withdrawal phone call to be made 8 in the morning tomorrow. Then I gotta fix a broken garage door spring downstairs, gotta replace hem in pairs though.

 

[mpeirce]

We actually cut back on spending significantly this year. Our 2019 spending was roughly 30% below our budgeted number.

We did this for a specific reason - we're buying the family lake cottage and renovating it with the intention of moving into it. When the dust settles (sell current house, finish renovation, furnish it) we will have spent some of our seed corn, but not a significant portion if it.

But back to last year's budget, we decided we'd cut back on expenses by cutting travel a lot and watching other spending. By doing so, we won't need to cash in a lot of our assets to accomplish this project. We were quite successful doing that.

More importantly, we demonstrated to ourselves the ability to make significant cutbacks if we ever need to (i.e. the economy reverses course for a sustained period of time). This helps validate our approach. It's one thing to say "we'll cut back if need be" an another to do so.

 

[audreyh1]

We really blew that dough in 2019, but it was still under our withdrawal. ‘Nuff said.

Getting ready to blow even more in 2020.

 

[Philliefan33]

Not including income tax, we spent $97K last year. I didn't count income tax because we get pretty close to our tax liability via witholding from DH's pension, so in Quicken I just track the net pension deposited into our checking account.

This is for two of us, keeping two houses. That total includes about $30K for DD2's wedding and an unexpected vehicle purchase not entirely covered by insurance.

We had to dip into our savings account a little for the big items, but the account earned more in interest than we withdrew so all's good.

 

[Dtail]

Final actual spending came in 14.5% under budget. The excess goes to an emergency type account.
12 categories were under, 1 was equal and 4 were over.
Yes for me, I develop our budget and then we do our very best to spend within its limit.

Additionally, our budgeted WR% for 2020 was reduced from 3.0% to 2.91% while the overall gross budget is higher, since we use a bespoke version of the % of remaining portfolio.

 

[socca]

2019 SPENDING BREAKDOWN - BUDGETED
• 49% necessities: taxes, housing, food, medical, auto, reserves
• 25% savings
• 6% discretionary - allocated
• 20% discretionary - unallocated
------
100%

2019 SPENDING BREAKDOWN - ACTUAL
• 23% necessities: taxes, housing, food, medical, auto, reserves
• 25% savings - nominal
• 3% discretionary - spent
• 49% discretionary - unspent
------
100%

74% effective savings rate

ANALYSIS

• I sure do wish I could learn how to spend money and enjoy it. As the old saying goes, who wants to be the richest guy in the graveyard?

 

[foxfirev5]

As of last night all the bills are paid and the checking accounts have more than the same time last year. Success.

 

[Sue J]

Type	Amount	Comment
Internet	600
Property taxes	2,603
Property Insurance	736
City Utilities	1,978	Water, sewer, trash, recycle and electricity
Natural Gas	720
DirecTv	1,308
Car Insurance	864
Life Insurance	748	20 yr term policies expired 12/19
Medical Insurance	72	ACA Bronze HSA plan with ginormous subsidy
Groceries	9,983
Gas	485
Other	5,430	Broad category for anything that doesn't fit elsewhere
Eating Out	1,275
Pocket Cash	1,440
Donation	120
TOTAL	28,383

That's our normal monthly expenses. Of course there's more and I keep track of those too.

Home repairs and remodeling	32,156	$28,000 of this was our new kitchen
Medical/Dental/Vision/Rx	8,459	Most of this was me reaching my max out of pocket of $6650. I was ill a few times and also all the expenses leading up to and including a hip replacement
Travel	234	DH took a road trip to NYC (stayed with family in NJ) with our DIL and grandson to get grandson’s travel document to go to China to meet his other grandparents
Gift and 529 for grandson	1,500	$1000 to son and DIL when they bought a house, $500 to 529
TOTAL Spent on Everything	70,732

DHs pension covers more than what we need for our normal monthly expenses of $2,365/mo. Also, I started my Soc Sec benefit in April and we save all of that to cover lumpy expenses like medical, gifts, etc. We waited a loooooong time to do the kitchen and had the cash.

Taxes aren't included here but we had $1,881 withheld for Federal. I'm expecting a Fed refund of about $300 so our Fed tax is about $1581. This will be our last year in the 10% bracket, mostly due to both of us turning 65, starting Medicare and not having the HSA deduction any more. Ahhh, 10%, it was nice while it lasted!

 

[Teacher Terry]

We spent 63k of which 5k is federal taxes, 4800 on groceries, 1800 car gas, 8k HI and deductibles, 7848 on mortgage, property taxes and insurance, 5k on 10 day trip which includes a week cruise and 3 days in New Orleans, 3600 dining and all entertainment, 3600 discretionary money for 2, 2068 for phones, tv and internet, gifts 150, hair 600, 2882 on all utilities, 800 dog grooming, vet bills, food and medication 8600, and car insurance 1932. Our dog related expenses are decreasing as we sadly lost 2 very expensive old dogs. We now have 2 small younger ones which only cost about 1400/ year. We are done having 4 dogs mainly due to the cost.