2020 Spending Summary and Analysis

[Lagniappe]

I assume you mean your retirement savings, not assets? If you own real estate that is an asset, do you include that in your calculation?

I meant of my portfolio.

I don't count real estate or pension assets in my calculations.

 

[JDARNELL]

I’ll crunch the numbers in a couple of days but what is standing out is all that extra cash everyone has on the sidelines. Things get back fairly normal and it could be wide open

 

[JustCurious]

I’ll crunch the numbers in a couple of days but what is standing out is all that extra cash everyone has on the sidelines. Things get back fairly normal and it could be wide open

Yes, I think there is a lot of pent up demand that will burst next year, especially for entertainment and travel. I think that's why the stock market is up for the year despite Covid, the market looks ahead 6-12 months.

 

[HarveyS]

We spent 87% of the 2019 amount in 2020. Less travel than planned, though we did still get out. Higher medical costs offset some of the travel savings.

 

[ExFlyBoy5]

Y I think that's why the stock market is up for the year despite Covid, the market looks ahead 6-12 months.

Although I am no expert, it seems like most of the latest investments have come from "new to the market" investors...like the 13+ MILLION that are using Robinhood for the first time this year. That coupled with valuations that are really...well...CRAZY...I don't think the market knows what it is doing tomorrow, let alone in 6-12 months.

 

[RockyMNHiker]

Automobile	3,018.97
Bank Charges	224.67
Clothing	34.99
Education	14.97
Food	6,173.41
Furnishings	613.13
Gifts	415.07
Housing	827.12
Insurance	3,281.63
Interest Expense	5,137.19
Leisure	11,903.50
Miscellaneous	53.42
Personal Care	34.00
Pets	40.66
Taxes	10,311.50
Utilities	2,250.05
Vacation	1,084.06
TOTAL OUTFLOWS	45,418.34

33% less spending than last year.

 

[tdv2]

Spent within 3% of last years number. Taxes were up (Did some larger Roth conversions in March when the market was down) also raised a little cash in the 3rd quarter in the taxable account. Travel & Entertainment was lower. Everything else was in-line.

 

[jollystomper]

For the two of us, 2020 spending will come in a little over $102K. It is 30% less than last year. Even if we had spent what we planned on vacation, it would still be about 15% less than last year.

Our top ten categories. They accounted for 90% of our spending:

Taxes	25,435	Fed, State, Local, Property
Medical	15,434	Premiums, doctor/lab out of pocket, medicine, supplies, etc.
Charity	12,245	Stuff that is tax deductible
Gifts	11,538	Family/friends weddings, pandemic assistance, Christmas/Holiday/Birthday/other gifts
Groceries	6,677	Includes items bought for meals DW cooked for others
Mortgage payments	5,720	Now paid off, woo hoo!
Auto related	5,041	maintenance, repairs, gas,insurance, fees, etc.)
Utilities	4,205	Electric, Cable TV, Internet
Household	2,744	supplies, repairs, maintenance
Recreation	2,422	Gym, golf, bowling, etc.

In 2019 Vacation expenses were the 2nd highest expense after taxes, this year it was a big fat zero. It dropped out and Recreation moved into the top 10.

Compared to our income we actually were savers this year. Gotta do a better job of blowing that dough .

 

[freddyw]

We spent about 10% less than 2019. Like most others, our travel expenses accounted for the difference. Hopefully will be able to make up for it in 2021.
Happy New Year!!!

 

[friar1610]

Don't have a clue and don't want to find out either. Best left unknown and never spoken of.

That’s how I feel. Pension and SS come in; expenses go out. Excess gets saved. More saved this year than last so that must mean we spent less. No travel nor dinners out after Feb and no major purchases. No gym dues, no plays, no ball games. I’d be happy to spend more in ‘21.

 

[SecondCor521]

3% more overall this year compared to last. Trying to spend more, not particularly being very successful.

 

[deserat]

Made me look.

I had a large transition last year - coming out of semi-retirement and taking a job, moving overseas, selling my house, my car, etc....I now rent but that cost is covered by an allowance. Nevertheless, rent is a big chunk of change around here.

Both years' taxes are my largest expense; I spent almost 35% less this year than last, still taxes tends to be 25-35% of the amount. I tend to travel a lot - that has been shot to he!! around here. I did buy some nice pieces of furniture, but that didn't even make up the difference from last year. I also was in the hospital last year over here and after that ordeal, the bills kept coming as most of the lab work, specialist support/etc, in the hospital were out of network, so I paid out-of-pocket.

My second highest 'expense' was tax deferred and Roth max-outs. I also took advantage of my SEP IRA withholding amounts.

This year, the biggest check I will write is for the Roth conversion taxes owed. That will be repeated over the next few years....

Nevertheless, as I review this year and the last few, I am a very fortunate person financially. My mistakes both in investing and personally that affected my financial situation have been absorbed and I am still in a great position. My goal next year is to max out the Roth, tax defer to the matching only and then shovel more into the Roth again from the tax deferred. That will mean not maxing out tax-deferred so that cash in the checking account can cover the check at the end of the year to Uncle Sam.

My other goal is to pack 25 lbs of vacation and traveling fun into a 5 lb bag while I am still here - my list has definitely grown....and my friends are waiting as well to join me.

 

[swaneesr]

Our 2020 spend is down 18%. Our transportation costs are down over 33%. … that is expected since DW and I are largely WFH.

Travel spending was reallocated to go against the mortgage. We are in a cold climate and really miss one or two winter trips to sunny shores.

Surprised to see our food/grocery/restaurant spend is down only a little.

SwaneeSR and Mrs Swanee

 

[Sittinginthesun]

Just curious, are property taxes included in your taxes bucket? And why do you take mortgage out? I’d love to see more breakdown of the net spend bucket, mainly because I think our spend pattern is somewhat similar and curious what those kids are going to cost us in a few years!

I tend to ex out big one time expenditures, since they’re usually discretionary, but I think of the property tax and mortgage as key baseline spend items.

Property taxes are not included in taxes deductions, those were about 13,000 last year on three properties (now down to 2). I take the mortgage payments out just to see what our spending was without it as I can pay it off anytime and won't go into retirement with one. Thinking $150k net in retirement will be what I want and we are on track for that before I turn 55.

 

[tb001]

Property taxes are not included in taxes deductions, those were about 13,000 last year on three properties (now down to 2). I take the mortgage payments out just to see what our spending was without it as I can pay it off anytime and won't go into retirement with one. Thinking $150k net in retirement will be what I want and we are on track for that before I turn 55.

Ah, that makes sense. At our current interest rate, I think we’re going to carry our mortgage forever!!

Thanks w2r for starting this thread. I love seeing the diversity of spend and the priorities people have on different areas of their lives. It’s been a huge help for me over the years to see how much (or how little) others spend in areas and help me target places for reduction.

I usually do my annual analysis mid Jan when the kids are back in school, but it may have to wait a bit this year.

 

[brett]

We have no idea how our number breaks down. It is simply a tape from our current account. That is as far as we care to break it down.

The biggest components are property taxes, HOA, utilities, insurances. Things that we do not control or that we keep tabs on price. The rest....food and travel is discretionary. We spend what we want and it does not matter. When our fridge packed it in we bought another. No choice. Same with car and home repairs or dental.

What we do spend time on.....reviewing our taxes (and our investments), doing pro formas in November to see where we sit with regard to income tax, and understanding what we need to do to minimize our income tax burden.

Far better use of our time than keeping track of what we spend on cans of peas, rolls of toilet paper or what DW spends at the clothing store on a new whatever.

 

[Blue531]

I spent roughly $13,000 in 2020 with $2,500 in unexpected expenses for car repair and work done around the house. Less than 2019 by a little. I'm not deprived in anyway for anyone who might be wondering how I live on so little. I do live in a very low cost area compared to almost everyone I've seen or read about. My home and cars are paid for and I have no debt. My home is quite modest and taxes are low. But I go where I want, do what I want and spend what I want. I have more than enough.

 

[DayDreaming]

$241 spent on gas for my car this year - about half of what I spent in the past few years.

 

[FANOFJESUS]

I spent roughly $13,000 in 2020 with $2,500 in unexpected expenses for car repair and work done around the house. Less than 2019 by a little. I'm not deprived in anyway for anyone who might be wondering how I live on so little. I do live in a very low cost area compared to almost everyone I've seen or read about. My home and cars are paid for and I have no debt. My home is quite modest and taxes are low. But I go where I want, do what I want and spend what I want. I have more than enough.

Very impressive. Is that Danville IL?

 

[SecondCor521]

Very impressive. Is that Danville IL?

I was guessing Danville, KY. Dunno how many Danvilles there are.

 

[RunningBum]

I was guessing Danville, KY. Dunno how many Danvilles there are.

Danville VA is bigger than both.

 

[Nemo2]

Danville VA is bigger than both.

DW & I wandered around there a number of years back...they were converting old tobacco warehouses into (condo) apartments...quite pleasant.

 

[pb4uski]

Our 2020 total spend will be about 81% of 2019... 2019 and 2018 were about the same.

2020 taxes are lower because I did 0% LTCG rather than Roth conversions this year. Recreation is lower with lower travel, dining and golf.

ATM withdrawals were also a lot lower.. the last ATM withdrawal that I did was in Feb 2020... we pay more with credit cards these days.

 

[Closet_Gamer]

I very rarely step into sector-specific investing, but this thread makes me want to invest in travel stocks. The drops in travel spending likely signals loads of pent up demand and thereby a willingness to pay.

Seems like there might be significant inflation in travel pricing when the pandemic end. People will have the desire and the money.

 

[pb4uski]

^^^ Interesting thesis... I guess it demand will depend on when people will be psychologically comfortable getting on a ship with another 1-3 thousand strangers ...and there will at least initially be mobilization, recruiting and training costs as well.