My annual expenditure

[nun]

My budget in 2013 is $12K. The reason it was so high($15K) in 2012 was because of significant dental bills. If I can convince myself not to go 1500 miles south for the winter then $12K shouldn't be a problem at all for 2013.

That's pretty low

My ER monthly budget is $550 for house insurance and real estate taxes, $450 for health premiums (if I stay at work long enough to leave with employer insurance that will be $100), everything else $2000. So $3k/month - $36k a year. I don't have a mortgage, but this is in New England so not an inexpensive area.

 

[W2R]

Edited to change my numbers to the final numbers, computed after the end of December:

Here are my final spending totals for 2012. Income taxes are not included but everything else is.

Groceries	$2,522.47	Includes toiletries, detergent, etc.
Restaurants	$3,200.24	lunch every day plus some dinners
Gasoline	$972.96	I live in an inner suburb, and everything is close by.
Car	$1,499.96	insurance, maintenance (safety inspection is in "misc")
House	$5,881.48	insurance (homeowners' and flood), property tax, maintenance (no upgrades in 2012)
Utilities	$4,512.66	Cable TV,internet, nat. gas, electricity, water, trash, sewage, cell, landline
Fitness	$581.60	gym fees, heart rate monitor
Clothes	$154.74	sweatpants, t-shirts, "retiree wear"
Miscellaneous	$2,817.82	Gifts, Hurricane Isaac evacuation, haircuts, iPad, stamps, etc.
Books	$40.94	e-books, mostly free or cheap
Video Games, apps	$749.57	also includes two video game consoles
Medical	$1,694.75	dentist, bone graft, deductibles, co-pays, prescriptions
Health insurance	$2,226.80	federal retiree health insurance
Total	$26,855.99	plus income tax

This year, for the first year of my life I kept records not to the dollar, but to the penny. Also I doublechecked by computing my spending from income/withdrawals only and it matches. Maybe that was a little OCD but it was fun to try doing it.

I am not trying to be frugal any more since I can't take it with me (as the saying goes). I am a single person living in the South with a paid off median value house who doesn't like travel. I am impressed by the efforts made by those of you living in higher cost areas who manage to live on as little as you do.

 

[aaronc879]

That's pretty low

Yes $12K/yr in total spending isn't much but I have barely a 6-figure portfolio at age 33 and am unemployed with no job prospects so it's necessary to keep the spending at that level. There are people here who spend nearly 10X what I spend but they have 10X the money so they can afford it.

 

[aaronc879]

$23,401.80, as of today. That doesn't include my $185.42/month medical insurance or income tax, so if you include those and want to compare just add those in. Everything else is included.

I am not trying to be frugal any more since I can't take it with me (as the saying goes). At this spending level I am spending a lot on eating out and discretionary items/experiences. I just might be Amazon's best customer, but also I am a single person living in the South with a paid off median value house who doesn't like travel, KWIM? I am impressed by the efforts made by those of you living in higher cost areas in order to manage on as little as you do.

New Orleans isn't a low cost area. It's not super high cost but not low cost either. New Orleans, LA Environment, Health and Safety Info

 

[W2R]

New Orleans isn't a low cost area. It's not super high cost but not low cost either. New Orleans, LA Environment, Health and Safety Info

Well, not compared with some places, I suppose. But I live in a close-in suburb of New Orleans, so my property taxes are really low as compared with New Orleans proper. Also energy costs here are pretty low, and my house is paid off, and so on. Everything I need or want is close by, so I don't need to spend much on gas. And, at this stage in life I pretty much have all I need.

Some might be of the opinion that I am missing out on a lot, I suppose, but I am happy at this level of spending and I am just not used to living any differently. When I said, "I am spending a lot on eating out and discretionary items/experiences", that was really misleading so I am going to strike-through that line in my previous post. I meant a lot compared with someone living on a bare bones budget like you. It seems like a lot to me, but maybe in the overall scheme of things it really isn't a lot.

 

[rodi]

Some of the super low numbers don't make sense to me. Taxes, health insurance, utilites, and food add up to more than some of these numbers.

I'm still pre-retirement - so my savings rate is high (maxed 401k, kids 529's, etc). We're pounding large extra principal money into the mortgage so we'll be mortgage free in 2 years. So if you include that saving - we're spending 100% of our income.

When you look at what we're spending. less this pre-retirement preparatory savings/mortgage elimination... we're spending just over $50k for a family of four..

I got that back of the envelope number by taking our gross income (salaries, dividends that weren't reinvested, etc.) and backing out the savings and mortgage payments. We don't escrow prop taxes or insurance - so they were already included in our expenses.

Yes- I realize I'm counting the mortgage payments as "savings" - but since our plan is to retire mortgage free - that's the number I need for *my* budget. And at this point the bulk of the payment is extra principal - so it really is like saving.

 

[W2R]

Some of the super low numbers don't make sense to me. Taxes, health insurance, utilites, and food add up to more than some of these numbers.

That's right! Health insurance can be anywhere from almost nothing (for those on Tricare, I guess?) to thousands per month. Comparing those costs is ridiculous and frustrating for those who have to pay thousands, because what can they do about it? Nothing. Also, income taxes can reflect one's taxable portfolio size or pre-RMD drawdown of tax advantaged accounts, not one's spending level, and must be paid so there is not much sense in comparing income taxes IMO.

Utilities and food, on the other hand, and many other categories to me seem like legitimate spending items because they can be controlled to some extent.

Yes- I realize I'm counting the mortgage payments as "savings" - but since our plan is to retire mortgage free - that's the number I need for *my* budget. And at this point the bulk of the payment is extra principal - so it really is like saving.

That sounds fair to me.

 

[Mulligan]

Some of the super low numbers don't make sense to me. Taxes, health insurance, utilites, and food add up to more than some of these numbers.

I'm still pre-retirement - so my savings rate is high (maxed 401k, kids 529's, etc). We're pounding large extra principal money into the mortgage so we'll be mortgage free in 2 years. So if you include that saving - we're spending 100% of our income.

When you look at what we're spending. less this pre-retirement preparatory savings/mortgage elimination... we're spending just over $50k for a family of four..

I got that back of the envelope number by taking our gross income (salaries, dividends that weren't reinvested, etc.) and backing out the savings and mortgage payments. We don't escrow prop taxes or insurance - so they were already included in our expenses.

Yes- I realize I'm counting the mortgage payments as "savings" - but since our plan is to retire mortgage free - that's the number I need for *my* budget. And at this point the bulk of the payment is extra principal - so it really is like saving.

I'm sure everyone is being truthful in how they are reporting, it's just how the numbers are being interpreted and believe me , where you live definitely has an impact. I spend a little over $3k a month, but in 2 years that will be under $2500 with DD off the books. I spend no money on health insurance because my HSA tax break more than covers my individual premium. I don't figure in taxes, because they come right off the top of my monthly pension check and I add a little over $1500 a month to my savings( not counting my PT job). I am also single, but I carry a mortgage into retirement. My accounting may seem creative, but to me drawing a pension, it's all about what I spend relative to what gets sent to me each month since the taxes are already out. Others probably pay way less in taxes based on how they are drawing down their assets. BTW- Based on what you are doing, Rodi, it looks like you are doing an outstanding job yourself reigning costs in on a family of four. I wish my house would be paid off in two years!

 

[aaronc879]

Some of the super low numbers don't make sense to me. Taxes, health insurance, utilites, and food add up to more than some of these numbers.

I don't count payroll taxes as expenses which is splity fairly evenly amoung the board. Here are my other numbers:

2012

electric:85/mo
-condo fee/maint./
tax/insurance
(Housing):260/mo
-Internet/cell: 112/mo
-car-gas/maint./ins:190/mo
-food:277/mo
-enter./misc.:150/mo
-medical/dental:176/mo

Total: 1250/mo

2013(projected)

-electric:95/mo
-condo:240/mo
-internet/cell:65/mo
-car:150/mo
-food:300/mo
-enter./misc.:150/mo

total:$1000/mo

There's room in that 2013 budget to cut costs if there's an unexpected expense.

 

[FANOFJESUS]

We spend 16k in a low cost area. But at that level we don't throw money around foolishly. We try to be wise with money.

 

[aaronc879]

We spend 16k in a low cost area. But at that level we don't throw money around foolishly. We try to be wise with money.

"we"? Is that $16K for a couple? I'd be interested in details.

 

[rbmrtn]

Some of the super low numbers don't make sense to me. Taxes, health insurance, utilites, and food add up to more than some of these numbers.

When you look at what we're spending. less this pre-retirement preparatory savings/mortgage elimination... we're spending just over $50k for a family of four..

There's a large part of the difference. Most of us on the low end are single, no dependents. You're spending 12.5k/person

Property tax/insurance are my biggest line item at ~15% of total. I don't include income tax as an expense.

 

[FANOFJESUS]

"we"? Is that $16K for a couple? I'd be interested in details.

Here you go
$275 Taxes and insurance house and car
$110 Medical insurance
$250 Utilities
$500 Food
$100 Car gas
$100 odds and ends

Total $1335
About 16k

 

[Lsbcal]

Those who mention percentage of portfolio numbers may have different values because some may be getting Social Security or have pensions. We just started SS last year and that helped a lot with % of portfolio spending.

 

[Retire2013]

I am right around $20k for the year 2012.

Do you live in NYC?

 

[rodi]

I'm sure everyone is being truthful in how they are reporting, it's just how the numbers are being interpreted and believe me , where you live definitely has an impact. I spend a little over $3k a month, but in 2 years that will be under $2500 with DD off the books. I spend no money on health insurance because my HSA tax break more than covers my individual premium. I don't figure in taxes, because they come right off the top of my monthly pension check and I add a little over $1500 a month to my savings( not counting my PT job). I am also single, but I carry a mortgage into retirement. My accounting may seem creative, but to me drawing a pension, it's all about what I spend relative to what gets sent to me each month since the taxes are already out. Others probably pay way less in taxes based on how they are drawing down their assets. BTW- Based on what you are doing, Rodi, it looks like you are doing an outstanding job yourself reigning costs in on a family of four. I wish my house would be paid off in two years!

Thanks for the complement. My kids don't really agree. I had to have a heart to heart with my 12 year old on why Santa (me) wouldn't be getting him everything on his wish list... I had him tally up the prices and even he was shocked by the $800 price tag. (He wanted 3 different new video game consoles - xbox 360, nintendo 3ds, and wii U. he's going to have to live with the old school nintendo ds and old school wii and no xbox.) But I'd be making the same santa decisions even if money were no object. I'd rather he focus on school work and playing outside, than on video games. It's a losing battle I fear.

I've followed your posts quite a bit Mulligan. I envy the pension... I'll have a micro pension starting in 4 years. (approx $300/month). And so savings and budget control is everything.

 

[SumDay]

Well, all I know is that I'm going to have to give up Amazon Prime before I retire. Too darned easy to order anything & everything. I can afford it now, because we're both still pulling in income, and we have no debt. When we both retire, I'm thinking Amazon Prime has to go. Seriously. And I'll cry.

 

[ERD50]

"we"? Is that $16K for a couple? I'd be interested in details.

Here you go
$275 Taxes and insurance house and car
$110 Medical insurance
$250 Utilities
$500 Food
$100 Car gas
$100 odds and ends

Total $1335
About 16k

So here's an example of my previous post - don't you need to budget for replacing the car?

No maintenance on the house or car? You never need new appliances, furnace, paint, remodeling, etc, ... nothing?

So maybe you spend $16K in some years, but it seems you've left out the expenses that do hit us from time to time, and on average are not likely to fit in a $100/month misc category.

-ERD50

 

[ERD50]

Well, all I know is that I'm going to have to give up Amazon Prime before I retire. Too darned easy to order anything & everything. I can afford it now, because we're both still pulling in income, and we have no debt. When we both retire, I'm thinking Amazon Prime has to go. Seriously. And I'll cry.

I've never understood this kind of thinking. What you can spend in retirement is a function of what you saved earlier. I just don't see them as separate 'accounts'.

I've never thought in terms of, 'I can afford this while I'm working, but not while I'm retired'. If it is something I really value, I want to make sure I can afford it in retirement. If it isn't really of value, why spend the money now and impact my retirement spending?

-ERD50

 

[scrabbler1]

Do you live in NYC?

Long Island (Nassau County).

 

[FANOFJESUS]

So here's an example of my previous post - don't you need to budget for replacing the car?

No maintenance on the house or car? You never need new appliances, furnace, paint, remodeling, etc, ... nothing?

So maybe you spend $16K in some years, but it seems you've left out the expenses that do hit us from time to time, and on average are not likely to fit in a $100/month misc category.

-ERD50

I did not budget for replacing the car. Bought it used 11 years ago for 5k. I am guessing another five years out of current one. Appliances our washer went out a friend gave me one. I paid another guy $35 to haul it home for me. No need to remodel and I do a small bit of outside painting every 8 to 10 years maybe a gallon or two of paint. I try to do all my own repairs around the house. You are right if I did need a roof or furance that might put up the numbers 5k that year. But we have been close to 16k since the year after we bought the car.

 

[Retire2013]

I live in the suburbs of Washington DC. Mortgage already paid off but property taxes is $4980 yearly. Cost of living is high but I am likely to stay put once ER'd even though I would need a lower WR in lower-cost of living areas. My annual expenditures for a single person and 2 dogs is $38K.

 

[martyb]

Somewhere north of $45k and south of $50k for the two of us for the year in net income/spending. That number supports 2 apartments in 2 states (I work out of state & commute home on weekends). Also means 2x all utilities including cable/internet, water, elec & a family cell plan for 3 people. Full coverage insurance for 2 vehicles, no credit card debt.

 

[rbmrtn]

So here's an example of my previous post - don't you need to budget for replacing the car?

No maintenance on the house or car? You never need new appliances, furnace, paint, remodeling, etc, ... nothing?

So maybe you spend $16K in some years, but it seems you've left out the expenses that do hit us from time to time, and on average are not likely to fit in a $100/month misc category.

-ERD50

The OP said expenses not budget. I spend ~$16K, but I get more than that from dividends/interest. The left over covers any emergent expense, I just don't carry a line item for it. I got 220K miles out of the last car but that was heavy commuting to work. At my current mileage rate the new car should outlast me!

 

[nun]

Here's my current ER spending budget. The health premium is more than I pay at the moment as my employer pays 3/4 of that, and I pay more tax right now as my earned income is far higher than the income I'll draw/need in retirement. No mortgage, but I have a $400/month slush fund that I put aside for one off costs and I have an emergency fund of one year's expenses that I don't include in my income calculations so it can be used for large costs

house tax & ins 550
health premium 450
Internet & calbe TV 110
cell phone 65
food 500
misc, entertainment, clothes, repairs etc 400
gas 60
electricity 30
heat 95
car 200
tax 369
monthly total 2829

yearly total 33948