Noisy spending data

[W2R]

I am greedy and want a lot, but most of these are way too expensive.

I guess that's the difference. I don't really want anything "way too expensive". All I want is a lifespan about 20 years longer than expected, or maybe a few decades longer than that. So you see, I'm greedy too.

 

[NW-Bound]

I guess that's the difference. I don't really want anything "way too expensive". All I want is a lifespan about 20 years longer than expected. So you see, I'm greedy too.

We both want things that are hard to get.

Perhaps it's better to change our mind and be happy to get things within reach.

Hmmm... Perhaps more Wagyu beef, or opening up another bottle of XO?

Well, I have to finish the opened ones first. High BP be damned.

 

[ncbill]

I just use mint.com to track spending, choosing the "net income" option and selecting "last 12 months" to get a monthly average.

Then I multiply that average by 12 & divide by my liquid net worth.

As long as the result is less than 3% I'm happy.

 

[corn18]

I just use mint.com to track spending, choosing the "net income" option and selecting "last 12 months" to get a monthly average.

Then I multiply that average by 12 & divide by my liquid net worth.

As long as the result is less than 3% I'm happy.

If I used that method, I would spend way less than I could between 56-70. Once SS kicks in @ 70, I will have a COLA military pension and SS that covers all my base expenses. My WR goes negative. I want to spend as much as possible between now and then. Within reason.

 

[martyp]

I looked at spending as being in three categories. There are the regular expenses you pay each month. Food, gasoline, mortgage, phone bills, etc. Then there are the regular expenses that occur over the year. Mostly these are insurance premiums once or twice a year. Then there are general unexpected expenses for things like house repairs, maybe some medical expenses, replacing appliances, etc. You have to estimate an amount for these, say $5,000/year. For the latter two categories I save an amount each month to cover these expenses so that I have the money when these bills come due or an unexpected event occurs.

 

[ncbill]

If I used that method, I would spend way less than I could between 56-70. Once SS kicks in @ 70, I will have a COLA military pension and SS that covers all my base expenses. My WR goes negative. I want to spend as much as possible between now and then. Within reason.

Sure, the most successful early retirees I've known were retired by 55 and done with worldwide travel by age 70, so why not spend the most during those years?

I hope both my kids will stay in service long enough for a military pension as well.

One already has an active duty service obligation of over a decade since they decided to go pilot, & I'm begging them to either stay active or switch to the reserves until they're eligible.

 

[DawgMan]

I just use mint.com to track spending, choosing the "net income" option and selecting "last 12 months" to get a monthly average.

Then I multiply that average by 12 & divide by my liquid net worth.

As long as the result is less than 3% I'm happy.

Generally in this camp. I took the governor off "budgeting" last year to see how we might BTD... DW did not disappoint! I am taking my first withdrawal this year as I transition to full retirement. We have planned for a very high annual spend which is loaded with discretionary spending, but I have to say, I still fall back into my more frugal/savings mentality ways at times. Frankly, I feel somewhat guilty and gluttonous with some of our spending, but try to remind myself that is what saved all the dough for. In an effort to stay in bounds with projected spending I play a little Jedi mind trick... I have effectively a planned spend/aka budget for all normalized (what should be very reasonable) annual spending and then have a category called "Contingency" which catches all the lumpy and overbudget items. Contingency makes up over 1/3rd of our planned expenses. Last year this Contingency included refurnishing/redoing dining room & basement, new HVAC/Furnace unit, excess travel, DW extra goodies, and 2 grandkids starter 529 plans. Barely stayed in bounds! This year I can already see excess travel and some additional gifting, but hoping I come under last years spend. Will watch and see...