Changes in Expenses after FIRE

[Still Learning]

After 4 years of retirement (61) pulled our last working budget vs our current retirement budget and found we are currently spending about $3K less than back in 2018. Lots of money shifts - monthly train fare paid my health insurance, less clothing, work lunches, auto use, etc. allowed us to increase our discretionary spending 3X and create a new monthly budget just for eating out. Believe we are already in our forever home with no loans. Our lifestyle remains the same but with a huge increase in time for whatever. A few important decisions for us included taking SS at 62 ( pays all bills with enough excess to last until about 72 which allows savings/investments to grow faster, entered retirement with 50% cash and 50% investments which is now 95% investments and 5% cash and switched our boat for land travel. Our investment withdrawal rate is 1.5% with most put into savings for use in gifting and CD purchases. We still live to an annual budget that feels comfortable.

 

[ShokWaveRider]

I think discretionary spending skews the numbers, at least for me it does. I do not include them in our day-to-day/annual spending habits. Some years it is up, some down.

Other expenses that one incurs because one spends more time at home are more relevant. The home still needs maintenance if one owns it, as does the pool, car and other necessities, those are the costs we consider. These tended to be more for us when working as we had to hire vendors to get things sorted. Now I do a lot myself. One now has to for the most part pay for healthcare oneself now (ACA, Medicare Etc.),

Paying for a 2 week or more holiday buying a new drone, watch, phone, Laptop etc., for us is not something we track. If we want a holiday, we take one, if we want a new XYZ, we buy it. We do shop for the best prices for everything discretional though. Old habits die hard, and we have the time to do more of it.

 

[Koolau]

Wow, an eleven year old thread. Lots has happened in 11 years.


Back then, we "worried" about the cost of our latest remodel (about $50K.) Now, we worry about going over IRMAA limits! Ghhaaaaaaccccckk! What has happened to us??



All great problems to have with our budgets I guess. YMMV

 

[jollystomper]

Old thread, but I was not FIRED when it was created, so...
I have a Quicken report comparing income and expenses for the 5 year periods before and after FIRE, and I may have posted the info on another related thread. In sum, expenses were down 29% in the 5 year FIRE period. Biggest drops were taxes, college expenses, household spending, and charity. Biggest increases were vacation, medical, auto (we bought a car), and gifts.