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Agree. For the most part. We have decided to take half-day or day trips that include stops at many museums including some stellar private college museums (I have a double free pass to all), lunch out instead of dinner (today's lunch at a fine restaurant including dessert + tax/tip came to $22), free area recreation spots and parks, day trips around photography, free concerts, etc. To go out on a humdrum weekday I often take only cash (no cards or checkbook), say 10 bucks, determined not to spend more than that. Instant gratification can be cured.
Our budget for the early years is much higher then our expenses while consumed at work.
Anytime we go anywhere for the day it cost us money. Throw in having the grandchildren around and its a huge expense being home.
We are headed to philadelphia this week to play tourist and ill bet you we go through close to a grand.
We moved to a house that's less than a mile from shopping and less than five from free nightly entertainment and festivals. I'm also close to the library, parks, and lakes. I don't use more than a tank of gas a month in my new car that gets 26 mpg city around here. It's an hour to beaches and theme parks for day trips and I check Groupon and all sorts of other coupon books for discounts. First stop when looking for a lot of things is the everything for a dollar store. It's surprising what they have.
My cell phone is on a family plan that my son pays $9 a month for and we share minutes as I get few calls but like the safety and convenient apps. Haven't had a house phone in years. I download recipes from restaurant websites, bake at home, and if I eat out it's the dollar menu at fast food. Some fruit trees in the yard which we use separate well water for and plan to put in other eatibles. The house is set up for passive solar heat thru the sunroom, and a roof system to heat the pool which is a huge part of our recreation and fitness. Ceiling fans in every room to supplement the a/c which is minimal. Use to hang the laundry out to dry and may again. I would personally get rid of cable and use my Isp, redbox or nextflix.
Clothing and commuting costs: Working versus retired
Quote:
Originally Posted by Hemlock140
Keep in mind that clothing for work and commute costs will be reduced, and less frequent haircuts. Packing or buying lunch also costs more than eating at home. All that will help a little.
When we get there in 8 years or so we hope to get enough selling this house to downsize to a much less expensive area, with little or no house payment. We can also get rid of the 3rd (backup) vehicle, and probably another which will net some cash and save on insurance.
Quote:
Originally Posted by mathjak107
Ill be the first to say being home everyday and free to do anything and go anywhere carry alot more expenses then commuting costs to work.
Unless your planning on doing nothing daily just going out of the house tends to end up up having costs associated with it.
We always hear about how we will save commuting costs and clothes but the fact is many of us wear nothing special to work . The endless free time we have can cost far more then commuting costs ever did.
Hemlock, I do not doubt for a second that you are making accurate statements as they relate to your particular case, but my own experience was more in line with what Mathjak is saying.
1. Clothing: If you're a lawyer and argue cases in court, maybe you need three-piece suits and really good-looking shoes, but lots of us wear business casual (decent slacks, shirts that can be worn with or without a tie, nothing special regarding shoes) and then continue to wear the same stuff after retirement.
2. Commuting costs: Not everyone has a long commute, and not everyone pays to park at work. The last 21 years I worked full-time, my commute was never more than 9 miles one-way. I now put on just as many miles as a retiree running around doing stuff, including volunteer activities. Probably more miles than before.
I mention this not out of any desire to argue with poster Hemlock (as I have no argument with him), but because all the "standard" retirement advice seems to include the mantra about reduced clothing and commuting costs after retirement, as if everybody fits into that category. I have no figures, but I'd bet over half of retirees are close to the experience that Mathjak and I have had - i.e., no reduction in expenses for clothes and transportation after retirement.
So many articles treat the "reduced costs" as axiomatic, but I don't agree. However I do understand that in some cases it's true. Suppose you have a job that involves driving clients around on a fairly regular basis, and that they are rather high-end people. Well, it just wouldn't work to have a Ford Focus for that purpose; you'd need a late model higher-end car to match the people and their expectations. In that case, you can (after retirement) scale down the next time you buy a car. I needed my car only to get to work, not to impress anybody; actually I upgraded in the car department after retirement because I could afford it.
Being retired is NOT cheaper if you want to be busy. Throw in the cost of health care - it is more expensive. That's going to be the biggee for you. Maybe Obamacare in 2014 will cut that down.
I may spend less on cosmetics. That's about it, right now. Got enough clothes to last the duration.
I own a free and clear car I bought new and don't plan to ever replace it. My driving amounts to maybe 3,000 mi/yr. My son/dil live next door, so there are usually always two cars at home. We really don't need three cars. Two is fine. If mine ever dies, I'm done owning a car.
My medical costs are higher now than when I worked. I had health insurance for only $40/mo., and GREAT - paid 80-100% of everything - completely unavailable outside of a group, dental insurance. Most dental insurance costs $400/yr and will only pay up to $1k/yr. Never pays 100% of even cleanings or X-rays. Not worth it. Took Medicare Advantage for the zero premium. For now, I pay only $105 Medicare Part B, copays, plus 100% of dental costs. My chiro is 100% my own expense b/c he is not in-network in my Advantage plan. Fortunately, he charges me Medicare approved rate and then discounts that 15%, so it is affordable. Homeowners and auto ins. continue to go up. I've mitigated that this year by reducing coverage, but there will be a limit to that in the future.
Two days ago, my laptop screen died. Can't be without my computer, so I bought a big-screen auxiliary monitor ($95), which I've been wanting for a while, until part arrived at PC repair place next day. Parts & Labor to repair laptop $180. Car suddenly needed a new battery - another $160 b/c it had to be done right then. In the space of 24 hours, I unexpectedly spent $439. And, leaving soon to spend more money - Christmas.
I give you credit for courage retiring at 53. I would never recommend anyone retire before FRA - unless they had free and clear house, a lot of money in retirement accounts and/or very good pensions and SS on their horizon. Plus SS is reduced 32% with early retirement and can be as much as 32% higher than at FRA if one can wait until age 70. Costs continue to increase, income usually doesn't keep pace.
Last edited by Ariadne22; 12-22-2012 at 05:23 PM..
---I stopped buying books, CDs, DVDs, and use the library. All free now.
---I cook all of my food from scratch now that I'm retired. I have more time and it's far healthier.
---I only eat out in a restaurant once a month, and that is a low cost option (Panera's, etc).
---I drive far less than when I was working. No unnecessary trips anymore.
---I shop thrift shops for clothes and rarely purchase new, except for staples and basics (underwear, etc).
---Once my cell phone contract is up in 8 months, I am going to a month-to-month plan with Consumer Cellular. Far less expensive than anything offered with ATT or Verizon. You would have to do the calculation based on your needs and usage. No more contract plans for me!
---I make homemade gifts for holidays, which are appreciated and fun to make.
---I stock up on basics at Costco, saving $$ in the long run on frequently used items.
Cook and bake at home, fresh pasta, bread and all proteins. Catch fish and eat well. Eat better than we ever have before. Had to get a catastrophic medical policy as we're not near the age for any govt. healthcare/subsidies. Dental care has gone by the wayside but not to the point where we suffer (good genes). Clothes? Online at hanes.com and walmart.com along with other household staples. One trip a week to pick up the post. Nothing new coming our way.
On the other hand, we do have a penchant for travel and take holidays at least twice a year. How can we afford this? Points, miles and any other credit card incentives that get us to where we want to go.
We also barter with our pet-sitter, house-sitter, and anyone that does anything for us that we cannot do on our own. Frugality has also seeped into our charitable contributions and I'm not embarrassed about it as we gave so much when we could. Now we just give time which seems to be working quite well.
Haven't been to see a move for more than 7 years at a cinema but have been to see some great broadway plays. It's all about balance for us - not for everyone. Thankfully, we enjoy each others company - still!
Your a better man then me,i would have gone back to work before i would give up many of those things.
I had a gardner just so i didnt have to devote my own time too doing.
My own feeling is i didnt scrimp,save and invest my entire working life so i could live a notch above poverty.
I made sure my reward would be living better in retirement then we did our working years while raising a family.
My commute was 1/2 mile. My work clothes were jeans, collard t-shirt, and tennis shoes. My wife cuts my hair. We always used the library. Going out to dinner was for business trips.
Our costs went UP when we retired. Living a frugal lifestyle did allow us to retire early.
Being young and poor is ok, being old and poor sucks.
If you did not plan for retirement you are probably better off continuing to work for as long as possible. Your lifestyle choices will not change in retirement and therefore neither will your expenses.
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Clothing and commuting costs: Working versus retired
