2021 spending thread

[W2R]

Most years I start an annual spending thread at about this time, like this one I started last year:

What, nobody's started a spending thread for 2020? OK, here goes. I'll copy some of the verbiage from last year's thread.

My guess is that many of us are adding up our spending for 2020 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 2019 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 72 years old, and live alone in a 1500 sf paid off house in an inner/urban suburb of New Orleans.

Category|Total for 2020|Comments
Groceries| $3,113.45 | Includes toiletries, detergent, paper towels, etc.
Restaurants| $3,299.50 | lunch every day plus some dinners
Gasoline| ... $307.39 | Everything is close by.
Car| $1,718.74 | insurance, maintenance, registration, safety sticker
House| $6,704.27 | insurance (homeowners', wind-and-hail, and flood), property tax, mowing, maintenance, upgrades
Utilities| $2,868.57 | internet, natural gas, electricity, water, trash, sewage, cell (I don't have landline or cable TV)
Fitness| ... $361.00 | gym fees
Clothes| ..... $17.46 | kitty-cat non-skid slippers
Miscellaneous| $4,445.32| gifts, haircuts, Lazy Boy recliner, new laptop, etc
Video Gaming, apps, computer software | ... $654.39 | games, accessories, Switch Lite
Medical| $5,706.37 | insurance, Medicare, prescriptions, OTC meds
Dental| ... $595.00 | cleaning, x-rays, tooth extraction
TOTAL| $29,791.46 | plus a boatload of 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 2019: My 2019 numbers are available here. This year I thought I would spend less due to the pandemic. But no, I spent more than last year. I guess the scalpers got me? And then my new recliner cost ~$2,200, my new laptop cost ~$1,200, and my new Switch Lite video game console cost ~$195. OK, I guess it makes sense.

AM I HAPPY WITH HOW IT ALL WORKED OUT? Pooh. I don't like spending more than last year while thinking I was spending less. But oh well, I can afford it, and the market is up.

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). The point of the thread is to have fun.

Unfortunately my memory and mathematical/cogitive capabilities have been temporarily affected by "Covid brain fog" (from my bout with Covid last September). This is NOT permanent, and is improving day by day. For example, I no longer think I am 53 or that Jonesboro is 2400 miles from here! However, I have a 3-4 month gap in my spending records, that I have been trying unsuccessfully to address. I started recording my spending again this month, and have most of it for this month I think. I still have not recovered enough information from past months to compare my spending this year to that of prior years. And then there are the medical bills that have started rolling in.

So, I can't participate in the annual spending thread this year. But that doesn't mean we can't have one! Please feel free to post anything you wish to share about your spending in 2021.

All I can say is that today the sum of my bank accounts plus investment portfolio is 1.06 times what it was a year ago. So, I'm not going broke but that's about all I can contribute.

 

[Dtail]

$17 on clothes..... You need to talk to my DGF. Lol
If I was alone, I could get under 50k, possibly closer to 40k, but not 29k.
Your effective ~600 on entertainment could not be accomplished either by me due to my Pickleball habit, which is still cheaper than golf.

 

[Sunset]

Anyone looking to increase their spending in a charitable way can rejoice in the extension of the above the line deduction for $$ donations.

It is allowed to be deducted even if you take the standard deduction and is $300 for singles and $600 for couples.

https://www.irs.gov/newsroom/expand...available-for-cash-donations-by-non-itemizers

" married individuals filing separate returns, can claim a deduction of up to $300 for cash contributions made to qualifying charities during 2021. The maximum deduction is increased to $600 for married individuals filing joint returns."

Note: It's for ordinary type charitable giving, link has the rules.

 

[Fermion]

Mine would be something like

$6,500 on groceries
$3,000 on dining out/take out
$200,000 on building materials for house

 

[aaronc879]

Good timing as I just finalized mine a couple hours ago since I don't plan to go anywhere or spend anything the rest of the year. My total spending for 2021 was $18,236. That includes the $3969 I paid this year for taxes from 2020. Should be lower next year. I could keep it under $12K/yr if I wanted to however I want to go to Florida for the winter which willbring it up to $15K-18K/yr. Despite my limited income potential I did make more than I spent so it's all good.

 

[aja8888]

I just do "money start amount" minus "money end amount" and I come up with about $60 K all in (taxes, living expenses, medical, auto, ins..etc, etc).

 

[CincyDave]

I just do "money start amount" minus "money end amount" and I come up with about $60 K all in (taxes, living expenses, medical, auto, ins..etc, etc).

This is what I do as well. Tracking all the categories is too much like work for me personally. Ended up at $115K for my first year of retirement.

 

[COcheesehead]

Do you want to be high or low in this thread? Cheap or BTD. Confused.

 

[disneysteve]

I haven't crunched all of the final numbers but here is a pretty decent estimate:


2019: $81,200
2020: $70,600
2021: $88,400


I left out a large one-time expense for 2021 of $14,500 paid to the attorney handling my late cousin's estate as that really doesn't reflect our normal spending. I don't need to account for things like that in future planning. Plus it technically got paid out of the estate, not out of our own income (yes I realize money is fungible but still).


We did spend more in 2021 than pre-COVID. That was mainly due to a costly home repair (just over 10K). If not for that, 2021 would have come in a few thousand less than 2019.

 

[aja8888]

Do you want to be high or low in this thread? Cheap or BTD. Confused.

If you post a lower amount than aaronc879 we will question you until you give in and give us the right number.

 

[aaronc879]

If you post a lower amount than aaronc879 we will question you until you give in and give us the right number.

There are definitely people who have posted here before that spent less than I did in 2021.

 

[TheWizard]

I just do "money start amount" minus "money end amount" and I come up with about $60 K all in (taxes, living expenses, medical, auto, ins..etc, etc).

I would have to do it something like that also: gross income minus amounts Roth converted or put into my taxable account.

I did spend something over $30k on income taxes and around $10k on property taxes for the year.
Other living expenses were less...

 

[aja8888]

There are definitely people who have posted here before that spent less than I did in 2021.

Now that you mention that, i do recall one other poster who, I believe, is in San Francisco and living pretty cheaply.

 

[aaronc879]

Now that you mention that, i do recall one other poster who, I believe, is in San Francisco and living pretty cheaply.

Major Tom? He is one of a few.

 

[gamboolman]

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.

 

[aaronc879]

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.

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.

Nothing wrong with spending that much as long as you have enough to cover it. I expect to live on 1/10 of that and barely have enough to cover that. That is fine too.

 

[W2R]

Nothing wrong with spending that much as long as you have enough to cover it. I expect to live on 1/10 of that and barely have enough to cover that. That is fine too.

Absolutely! There are people here that spend more than, or less than, any one of us but it's fine if they/we can cover what we spend. I think Shawn spent less than you or Major Tom, for example. And I remember a few that I thought might even be billionaires.

 

[TheWizard]

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.

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.

I don't see any income taxes in that table...

 

[gamboolman]

Thank you aaronc879 and W2R,

I should have added and will see can I edit the post to say that our expenses are all within planned budget.

But - to be spending when no longer dragging a paycheck.... that's a different ballgame for sure... ha !

Again, thanks to all for their feedback and advice.

I will say this - Retirement is wonderful !

Thanks, gamboolman....

 

[gamboolman]

I don't see any income taxes in that table...

Wizard,

You are correct - we are just now starting the Income Tax exercise with megaoil corp for the last time.
I will edit again to include this - as it needs to be included/clear.

It is beyond me to guesstimate taxes as we were overseas the last 20 year and with all the smoke and mirrors and used to get to our Net - is well beyond my capability.

But we ought to know mid 1st Qtr 2022 and I will try to remember to post back the results - good, bad, ugly or not so ugly.

Thanks, gamboolman....

 

[Happyras]

Our biggest expense this year was taxes, about 38% of our "spending", followed by travel at about 13%. If you count the IRMAA as a tax, as you should, that number is even higher. Add in sales tax, and.........hmmmm.

I hate to use $ in this forum, but the significant revelation is that even in Retirement our largest expense, by 3x #2 is tax. We traveled quite a bit first class, about 1x per month, but it did not come close to #1, but was our #2 expense. We eat out often, but that was still only 6% of our spending. Health Care is 1/2 of that.

I think the relative % of spending speaks more than the $ amount, WDYT? Oddly the many base spending items like insurance, groceries, utilities are small percentages. Maybe inflation won't effect us as much?

 

[aja8888]

Major Tom? He is one of a few.

Yes, I think he is the one. Maybe he will put up his stats later.

 

[NW-Bound]

Now that you mention that, i do recall one other poster who, I believe, is in San Francisco and living pretty cheaply.

Major Tom? He is one of a few.

Major Tom is in Oakland.

There was a poster who also lived up in the Bay area. He had a PhD and worked either at a university or a research organization. He made a lot of money yet was very frugal. Same as Major Tom, he was a cat lover, and one year paid a lot of money for his pet medical treatments.

He has not posted for quite a while. I am racking my brain to recall his screen name.

PS. Yes, W2R mentioned Shawn in an earlier post. That was him. His last login was in April 2017.

 

[scrabbler1]

Good timing as I just finalized mine a couple hours ago since I don't plan to go anywhere or spend anything the rest of the year. My total spending for 2021 was $18,236. That includes the $3969 I paid this year for taxes from 2020. Should be lower next year. I could keep it under $12K/yr if I wanted to however I want to go to Florida for the winter which will bring it up to $15K-18K/yr. Despite my limited income potential I did make more than I spent so it's all good.

My preliminary spending total for 2021 is almost exactly the same as yours - $18,000 and change. It has dropped a lot in the last few years, mostly because I changed my portfolio at the end of 2019 by selling off an actively managed stock fund and replaced it with a similar index fund. Eliminating those large cap gain distributions and some of the dividends enabled me to get back on the ACA premium subsidy train in 2020. My income tax bill and my health insurance premiums both dropped a lot.

The ARP dropped my 2021 HI premiums a little bit more, dropping my annual expenses further below $20k, an all-time low in my 13 years of ER.

 

[Teacher Terry]

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.