Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Because I have a pension, I don't have a budget. It's no different than when I was working and didn't have a budget. Having a pension is like getting a paycheck. Same amount every month. Just have to spend less than what I get and save some money every month. Can tell you some of my expenses, though. I'll do it by month:
Net income: $5172/mo. (what I clear after health insurance, dental insurance, life insurance, federal taxes, medicare is deducted) No TN state income tax.
Rent (2b, 2b): $1,025 (includes, sewer, water and I assume property tax passed on to tenants) Renters Insurance: Paid annually but breaks down to $14 per month Electric: (everything is electric) Typically $50 - $80/mo. depending on season. Cable: $191 (includes Internet, all TV channels and landline phone) Cell phone: $89/mo. (a not-so-smart phone ) Car Insurance: paid bi-annually but it breaks down to $71/mo. Co-Pays: Podiatrist every 9 weeks, regular doctor every 3 months $25 per visit Drugs: Varies, doctor keeps changing them. All very inexpensive except 1 that is not generic. Gasoline: Ha-ha, unless I'm taking a road trip, fill up a sedan maybe every 4 - 6 weeks. Happen to live close to everything I do regularly. Our gas is cheaper than MD and NY. Right now it's $2.37 per gallon everywhere in town here. It's $2.69 in my old MD town and $2.77 - $2.81 in my old Long Island town. I might mention, we have no toll roads/bridges and I have never paid to park. Loans: None Credit card debt: Paid off monthly in full. Automatic monthly savings: $600 (set amount direct debited) Car maintenance: Varies. Car is getting old - just had the 60,000 mi big one done. Classes: $100 per yr - $9/mo rounded. Club (2) Dues: $45/yr - $3.75/mo Eyeglasses: I pay for them. No vision insurance. Once a year. Because photography is my hobby I make sure my eyesight is 100% corrected even if there is a slight change. That's lenses, glasses and check up. State Parks: Free (don't pay to enter, don't pay to park) Contest entry fee: $15 (annual) Cleaning: Someone cleans for me every other week. $199/mo.
Food: I don't know but this is probably my biggest monthly expense - Food for me and food for the birds. I don't make lists and I don't know what anything costs. I don't go a set number of times a month, either. TN has a sales tax that includes food. I get a lot of take out because I don't like to cook for just me. I go out to lunch 3 or 4 times a month with others. Going out to eat lunch costs pretty close to take-out prices in fast food restaurants. Pizza delivery is an expense.
I don't go to movies anymore now that I have a bazillion movie channels but a matinee here (first showing of the day) only costs $5.15.
Books: Second biggest regular expense. Varies.
I'm boring so I don't have any "exciting" big expenses. I take a photography road trip once or twice a year to wildlife refuges in other states in the Spring and Fall. Don't stay in swanky places. Still eat take out. Never dress up. Biggest expense is hotel/gasoline and new memory cards. Never paid more than $4 to visit a refuge and most are free to enter.
Don't have a house so don't have anything to worry about in that vein (like replacing or fixing something major or lawn expense).
I have more discretionary money in retirement than I had when I was working so that's even less of an incentive to do a budget.
Because I have a pension, I don't have a budget. It's no different than when I was working and didn't have a budget. Having a pension is like getting a paycheck. Same amount every month. Just have to spend less than what I get and save some money every month. Can tell you some of my expenses, though. I'll do it by month:
Net income: $5172/mo. (what I clear after health insurance, dental insurance, life insurance, federal taxes, medicare is deducted) No TN state income tax.
Rent (2b, 2b): $1,025 (includes, sewer, water and I assume property tax passed on to tenants) Renters Insurance: Paid annually but breaks down to $14 per month Electric: (everything is electric) Typically $50 - $80/mo. depending on season. Cable: $191 (includes Internet, all TV channels and landline phone) Cell phone: $89/mo. (a not-so-smart phone ) Car Insurance: paid bi-annually but it breaks down to $71/mo. Co-Pays: Podiatrist every 9 weeks, regular doctor every 3 months $25 per visit Drugs: Varies, doctor keeps changing them. All very inexpensive except 1 that is not generic. Gasoline: Ha-ha, unless I'm taking a road trip, fill up a sedan maybe every 4 - 6 weeks. Happen to live close to everything I do regularly. Our gas is cheaper than MD and NY. Right now it's $2.37 per gallon everywhere in town here. It's $2.69 in my old MD town and $2.77 - $2.81 in my old Long Island town. I might mention, we have no toll roads/bridges and I have never paid to park. Loans: None Credit card debt: Paid off monthly in full. Automatic monthly savings: $600 (set amount direct debited) Car maintenance: Varies. Car is getting old - just had the 60,000 mi big one done. Classes: $100 per yr - $9/mo rounded. Club (2) Dues: $45/yr - $3.75/mo Eyeglasses: I pay for them. No vision insurance. Once a year. Because photography is my hobby I make sure my eyesight is 100% corrected even if there is a slight change. That's lenses, glasses and check up. State Parks: Free (don't pay to enter, don't pay to park) Contest entry fee: $15 (annual) Cleaning: Someone cleans for me every other week. $199/mo.
Food: I don't know but this is probably my biggest monthly expense - Food for me and food for the birds. I don't make lists and I don't know what anything costs. I don't go a set number of times a month, either. TN has a sales tax that includes food. I get a lot of take out because I don't like to cook for just me. I go out to lunch 3 or 4 times a month with others. Going out to eat lunch costs pretty close to take-out prices in fast food restaurants. Pizza delivery is an expense.
I don't go to movies anymore now that I have a bazillion movie channels but a matinee here (first showing of the day) only costs $5.15.
Books: Second biggest regular expense. Varies.
I'm boring so I don't have any "exciting" big expenses. I take a photography road trip once or twice a year to wildlife refuges in other states in the Spring and Fall. Don't stay in swanky places. Still eat take out. Never dress up. Biggest expense is hotel/gasoline and new memory cards. Never paid more than $4 to visit a refuge and most are free to enter.
Don't have a house so don't have anything to worry about in that vein (like replacing or fixing something major or lawn expense).
I have more discretionary money in retirement than I had when I was working so that's even less of an incentive to do a budget.
If your pension is not inflation adjusted you want to save a little for the future.
I spend 84+k last year but that is more to do with my life style in retirement. As to house; I own and like for like even considering taxes and maintenance add about 1500 a month to lease same; if you can find one. You can rent apartments for about 800-2000 but area is restricted by zoning to light commercial and above.
I did not reply as the real answer is it is not how much you make but how much you spend. Regardless of your income, if you spend more than you make, you are in trouble.
I did not reply as the real answer is it is not how much you make but how much you spend. Regardless of your income, if you spend more than you make, you are in trouble.
But if you just get SS as income (no pension) than it is perfectly ok to use the money you saved all during your working years to live on in retirement. We were good savers and not crazy spenders. We lived within our means. We were able to pay off our home early, have no debt, put children through college, paid for all but one remaining child's wedding and still saved for our retirement. Now, we get to enjoy that retirement. But, we cannot possibly live on SS alone. So, to say that we are "in trouble" is incorrect.
Just for the record, when I asked the question I used the term "cost of doing business" which implies whatever each of us decide is the standard of living chosen. My apologies if anyone was mislead.
For the record, my profession is in the financial field and I have asked this question many times to clients. Several years ago, I was surprised of getting answers ranging in the $3,000 to $5,000 a month range. I thought the $3,000 a month was low given that I'm in California but I believe it's possible depending on health insurance and medical costs.
Recently, I've noticed many retired clients doing so at about $72,000 a year.
I believe the big variable is how much, if any, financial dysfunction one has in their cost of doing business which I define as:
(1) Adult kids in your hip pocket wallet,
(2) Alimony and legal costs,
(3) Business disputes, payouts and legal costs,
(4) Addictions - gambling, online shopping, etc.,
(5) For guys, a trophy young blonde that you cart around in your shiny red Corvette and for women, your personalized cougar-catch,
(6) False Gods - expensive cars, boats and other luxurious trinkets to the point of excess
There may be more but these of the ones that come to mind.
And there are two more that I won't define as dysfunctional: (1) extraordinary medical/long-term care costs never imagined, and (2) helping aging and impoverished parents (honorable).
I don't have any of these issues for vices. I just live on Long Island to be near the grandkids.
If your pension is not inflation adjusted you want to save a little for the future.
It is adjusted and I do anyway, $600/mo., which is the same amount I put away while I was working (not including my Thrift account which was more) and making a lot more. In retirement, though, I spend less. As I always say, "It was expensive to go to work."
FWIW, my ballpark estimate is $3k/month for two, ignoring luxuries and unforeseen expenses. That seems like a good baseline for getting by. In the long run, it's impossible to say what kind of illnesses or other odd circumstances might pauperize you, but then in the long run, we're all dead.
It's funny how much money is now eaten up by insurance, property taxes, and the like. I wonder what percentage of the increase in average wealth (GDP per capita) has been eaten up by overhead of that type over time.
The great irony of course, is that the smart move would be to have been a public safety employee in California. Who was to know? It certainly wasn't obvious in the 1970's.
... It's funny how much money is now eaten up by insurance, property taxes, and the like. I wonder what percentage of the increase in average wealth (GDP per capita) has been eaten up by overhead of that type over time.
The great irony of course, is that the smart move would be to have been a public safety employee in California. Who was to know? It certainly wasn't obvious in the 1970's.
It is amazing to see how much medical insurance has climbed in the past few decades.
In the 80's friends of mine convinced me to focus on a government career, for the pension. The primary reasoning was the pension and concern over SS. Medical insurance costs were not even in the picture. Today I am thankful for my pension, but the medical coverage is a far greater benefit then my pension.
As for property taxes, some properties I have owned had really high taxes, others [like our current home] have much lower taxes. Look around and you can find very nice homes with annual property taxes in the $300 to $500 range. Our home includes 150 acres of forest and river frontage, so I expect to pay more, though it is still well under $1k/year.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
)
