Remarkably consistent spending

[anothercog]

I have been tracking my spending with a spreadsheet for the last 20 years. I recently looked at my past budgets and was surprised to see how consistent my spending has been for the past 15 years. It's just bounced right around $160k excluding income taxes, health insurance and now college expenses (which are covered by our 529). I only had one year that was a real outlier, the year we did an extensive home remodel. This despite my income doubling over the same 15 years. I guess I peaked in 2011.

I'm spending about twice as much on food than 15 years ago and a whole lot more on pets (went from 0 to 3 dogs) but that's been offset by stopping 529 contributions (which I treated as an expense) and mortgage refinancing.

I'm still working but this should give me the confidence that my baseline spending will probably be the same and factoring in taxes and health insurance would give me under a 3% WR. Though I expect my increased travel budget when I retire will put me over 3.5%

Curious if others have found their spending somewhat flatlining despite inflation? I suspect among the savers in this forum it's probably common.

 

[imjustawarrior]

Our baseline spending increases with inflation, lifestyle creep, and kids getting older. Our overall spending is all over the place due to large purchases. This was true while working, and it still holds in retirement.

For example, we went from 2 cars to 5 cars. We only purchase new cars.

 

[anothercog]

I think we have largely resisted the lifestyle creep. I'll have another few outlying years as I plan to buy each of the 3 kids cars when they graduate college.

 

[sengsational]

I've been surprised at the consistency of spending too. When I retired, over 10 years ago, I started a cash flow sheet where I planned spending. Taxes and gifting were/are separate, but everything else went into a monthly burn rate. I pick a rate at the beginning of the year. I don't put that much thought into it, because it's purpose is to make sure I've made appropriate withdrawals from the investment side. The burn rate has been aligned amazingly well with actual spending. Unexpected things happen in both directions to level things.

 

[imjustawarrior]

I think we have largely resisted the lifestyle creep. I'll have another few outlying years as I plan to buy each of the 3 kids cars when they graduate college.

Our kids are all spaced 2 years apart. We had an old car that each kid drove from 16-18. When the kid turned 16, I bought a new car for myself. When the kid turned 18, they got my car, I got a new car, and the next kid got the old car. Each kid left his mark on the old car.

This way each kid got a 2 year old reliable car at 18. When they go out on their own, we will sign the car over to them.

This works for us. We didn't want to drive them around anymore. It would get in the way of our fun.

 

[livingalmostlarge]

I have been tracking my spending with a spreadsheet for the last 20 years. I recently looked at my past budgets and was surprised to see how consistent my spending has been for the past 15 years. It's just bounced right around $160k excluding income taxes, health insurance and now college expenses (which are covered by our 529). I only had one year that was a real outlier, the year we did an extensive home remodel. This despite my income doubling over the same 15 years. I guess I peaked in 2011.

I'm spending about twice as much on food than 15 years ago and a whole lot more on pets (went from 0 to 3 dogs) but that's been offset by stopping 529 contributions (which I treated as an expense) and mortgage refinancing.

I'm still working but this should give me the confidence that my baseline spending will probably be the same and factoring in taxes and health insurance would give me under a 3% WR. Though I expect my increased travel budget when I retire will put me over 3.5%

Curious if others have found their spending somewhat flatlining despite inflation? I suspect among the savers in this forum it's probably common.

very much so. It turns out in 5 years ago when DH took a serious paycut we ended up at $180k gross. We managed and still saved and lived on that. We tightened up a bit but not a lot.

The thing is the fixed costs are fixed like mortgage, no car or cc debt. Then you spend the same and it doesn't change much until you change the fixed costs.

for us things have changed and our expenses are increasing due to increasing fixed costs like insurance, possibly a bigger place.

 

[Dtail]

From our first year of retirement through 2025 which was 8 years later, our expenses increased a gross of 30%, which is not bad per year.

 

[jebmke]

I've been tracking total for many years and I've been surprised at how large the variation has been. The average has come in pretty close to expectation but the year to year variation has been larger than I would have expected.

 

[Stormy Kromer]

We are all a few cancer cells from having our finances in a mess. Plan accordingly and have fun.

 

[audreyh1]

I have been tracking my spending with a spreadsheet for the last 20 years. I recently looked at my past budgets and was surprised to see how consistent my spending has been for the past 15 years. It's just bounced right around $160k excluding income taxes, health insurance and now college expenses (which are covered by our 529). I only had one year that was a real outlier, the year we did an extensive home remodel. This despite my income doubling over the same 15 years. I guess I peaked in 2011.

I'm spending about twice as much on food than 15 years ago and a whole lot more on pets (went from 0 to 3 dogs) but that's been offset by stopping 529 contributions (which I treated as an expense) and mortgage refinancing.

I'm still working but this should give me the confidence that my baseline spending will probably be the same and factoring in taxes and health insurance would give me under a 3% WR. Though I expect my increased travel budget when I retire will put me over 3.5%

Curious if others have found their spending somewhat flatlining despite inflation? I suspect among the savers in this forum it's probably common.

Not here. As our portfolio has increased so has our spending.

 

[pjigar]

Our expenses have been very consistent within 10% variation as well. That is if I take out the lumpy expenses like cars, home improvements, etc.

 

[FD1000]

Our expenses were similar except all the big changes in life such as
A birth of a child
Buying a new vehicle in the last 30 years.
Buying a house and taking a mortgage
Paying for the kids education
Remodeling the house
Finish paying the mortgage
Finish paying the kids education
Stop saving and start spending.
And... inflation

Other than the above it's similar.

 

[SageForesight]

I have been tracking my spending with a spreadsheet for the last 20 years. I recently looked at my past budgets and was surprised to see how consistent my spending has been for the past 15 years. It's just bounced right around $160k excluding income taxes, health insurance and now college expenses (which are covered by our 529). I only had one year that was a real outlier, the year we did an extensive home remodel. This despite my income doubling over the same 15 years. I guess I peaked in 2011.

I'm spending about twice as much on food than 15 years ago and a whole lot more on pets (went from 0 to 3 dogs) but that's been offset by stopping 529 contributions (which I treated as an expense) and mortgage refinancing.

I'm still working but this should give me the confidence that my baseline spending will probably be the same and factoring in taxes and health insurance would give me under a 3% WR. Though I expect my increased travel budget when I retire will put me over 3.5%

Curious if others have found their spending somewhat flatlining despite inflation? I suspect among the savers in this forum it's probably common.

I divide my spending into one time major purchases and recurring purchases. One time examples: Major household repair/upgrade, Large gift out of the ordinary, etc. All drawn from investment accounts so these purchases generally do not affect general income and expenses. Recurring expenses is stuff that happens every year including yearly vacations. Recurring expenses have been growing at an average of 2%/year since I started keeping records in 2011.

 

[braumeister]

Over the last 20 years, spending has trended higher but has been very inconsistent with plenty of ups and downs.

 

[VanWinkle]

Living expenses have been consistent for 10 years of retirement. Gifting and Charity
are the 2 things that have not been consistent. I have increased our budget for food,
travel, and Insurance. These increases have been reduced to 0 by the savings on taxes
by moving from Illinois to Tennessee.

 

[sengsational]

^ On the gross spending, mine has been quite variable as well.

I divide my spending into one time major purchases and recurring purchases.

This is what I was commenting on earlier, and has been predictable. Increasing, a little annually, but stable.

We are all a few cancer cells from having our finances in a mess. Plan accordingly and have fun.

Have fun is good advice, before those cells continually double and make trouble. As to the finances, though, that should be predictable. Maybe a good percentage of your spend if you have a high max out of pocket, but can be reasonably small if you have good insurance.

 

[street]

For the 10 years I have been retired it has been consistent but spending has went up since our working years. Seems like always some big spends somewhere each year. Somme predictable and some not.

 

[NanoSour]

Mostly flat monthly living expenses over 12 years of retirement.

 

[RetiredHappy]

We have alot of ups and downs, before retirement as well as after retirement. Pre-COVID we spent about $60K in cruising per year. That is on top of our regular land vacations of about $20K to $25K a year. During COVID cruise expenses dropped off but then we bought an $80K car in 2024. We are going on another cruise next year, and including air tickets and before shore excursions, will add another $42K to spending. Then there is buying another home and selling the old home, and another $200K in renovation in 2021.

 

[ncbill]

Spending much more than normal over the last couple of years.

Hefty down payment assistance for the kids' first homes.

Additional tax payments to cover Roth conversions.

 

[anothercog]

We have alot of ups and downs, before retirement as well as after retirement. Pre-COVID we spent about $60K in cruising per year. That is on top of our regular land vacations of about $20K to $25K a year. During COVID cruise expenses dropped off but then we bought an $80K car in 2024. We are going on another cruise next year, and including air tickets and before shore excursions, will add another $42K to spending. Then there is buying another home and selling the old home, and another $200K in renovation in 2021.

$42k for a cruise? How long is the cruise?

 

[RetiredHappy]

$42k for a cruise? How long is the cruise?

11-night cruise (World owner's suite - largest stateroom), cost is only $24+K, golf package added to it is another $7+K, 2 business class tickets expected to cost about $10K for 2 of us. We are extending the trip in Scotland for 2 weeks to golf (cost not included yet, will probably cost us another $5K, but accommodations will be "free" as I intend to use my hotel points) and my Scottish friend is arranging for us to golf at some of the iconic golf courses as well as private ones.

 

[COcheesehead]

I guess it depends on one’s definition of consistent. For base needs it’s been trickling upward as insurance and property taxes increased. Food cost increases are almost inconsequential since we eat out less and cook more at home, so they likely have gone down. Travel is about the same. Our mortgage is about to go away. Portfolio continues to outpace expenditures by a wide margin.

 

[Out-to-Lunch]

as well as private ones.

Please let me know if you will get a chance to play Royal Dornoch.

 

[RetiredHappy]

Please let me know if you will get a chance to play Royal Dornoch.

My friend has recommended many courses, but I don't recall Dornoch. I will know when he lines us up. We did tell him that we would strongly prefer courses with buggies.