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Old 05-22-2017, 08:42 PM
 
331 posts, read 313,468 times
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I did the "obsessive budgeting thing" before I retired, as I suppose almost everyone does, but it lasted only about two months before I realized it was an absurd waste of time and energy. I actually bought one of the most sophisticated budgeting software packages, which was almost comical in its complexity. If I were really living on the edge and barely making it to the end of each month, perhaps I'd still be doing it. Fortunately, I'm not in that boat. I have a general notion of what a typical month of living costs me, and I know my income is going to exceed that by a considerable margin, but other than that I don't worry about it. I actually do keep a budget and monitor it fairly closely just to see how much I can safely put into savings each week, but things like food, clothing, hobbies, entertainment and emergencies aren't separately monitored - they are just lumped into the "what a typical month of living costs" category. The budget also includes separate imaginary "funds" into which I allocate each month 1/12 of annual expenses such as property taxes, home and auto insurance and whatnot. But the process consumes no more than 20 minutes a week and generates no stress, which was certainly not true when I was trying to keep track of where every dollar was going.


I have a friend whose sister is married to an extremely successful executive (employed 40 years for a major sporting goods manufacturer, the last 20 as CEO) who just retired. These people are worth millions and millions, without a financial care in the world. Yet she is doing the very same "obsessive budgeting thing" that I was doing. There must be some gene that generates a primal fear in every new retiree that he is going to end up living under a bridge and eating out of dumpsters.
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Old 05-22-2017, 08:43 PM
 
126 posts, read 123,061 times
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you guys did a good job but i would still advise people that they need to have a budget, especially young people
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Old 05-22-2017, 09:34 PM
 
10,226 posts, read 7,538,680 times
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I don't see how you can pay for all that on $17,000 a year! You must live in a very low cost area.

I have a spreadsheet w/my budget. I agree with another poster than an annual budget is more accurate, but I have estimates for a monthly budget, with a separate annual column for emergencies, things I pay once or twice a year, and the like. I add the two of those together, and that's what I need to live a decent life. I needed to get a handle and KNOW a ballpark of the amount of money I NEED to pay for necessities, at least. I was generous with my budget, so that I CAN cut it down, if necessary. If I have more money than needed, that stays invested for future needs.

In addition to myself, I have two senior dogs. They run me a few thousand a year (food, treats, medicine, vet visits, heart preventive, flea stuff). Aging dogs can get expensive.

CLOTHING - $300/yr. I have enough clothes to last many years, but I do need good athletic shoes (I walk & exercise), and a new pair of jeans or top now & then. I doubt I really spend $300, but that's what I budgeted.

I have cut budget items that are less important to me. I cut cable (I stream, now, & use digital antennas). I spend $100/yr on a Tracfone cell phone (not a smartphone). I use coupons & buy food items on sale. Things like that.

I do my own hair, but get it cut a 2 or 3 times a year. Honda Fit, so gasoline bill is reasonable.

I do have splurges, though. Good face creams (but I use coupons, & Sam's Club carries my Roc face creams for almost half price). I chew Nicorette, which I am working on decreasing. It's very expensive. (I quit smoking years ago but took up Nicorette). This will free up a lot of money, when I give it up. I'm going to price gyms to see if I can afford one. If not, no big deal. I can exercise for free.

I don't take vacations (I'm ON vacation), and I don't like to travel. My hobbies will be gardening (expense up front, but this will greatly lessen over time), my dogs, and maybe helping w/animal rescue.

Just basic bills are expensive. Utilities, property taxes, income taxes, internet bill, health ins., home repairs, HO ins, car ins., groceries & household, pets (their heartworm preventive alone is about $200 yr).

Then there will be large costs in the future. A new car, new roof, new a/c. These expenses will come out of my savings & are not part of my annual budget.

I need a lot more than you do just to get by. And that's after cutting a number of things way down from when I was working. And I'm only one person. (But remember that one person doesn't have HALF the bills of two; I have maybe 3/4th the bills...I still have the home costs & internet and all, whether it's for one or five people.)
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Old 05-22-2017, 10:33 PM
 
1,667 posts, read 1,477,259 times
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I only spend what is necessary on most of the items that might be budget categories. It would serve no purpose to write it all down, as it's not going to change.
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Old 05-22-2017, 10:54 PM
 
Location: Silicon Valley
18,813 posts, read 32,382,398 times
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I would not budget donating to a church before I met my own needs. That's for people who have money left over after meeting their own basic needs.

I'm super low income. The only thing that I budget for is the monthly costs that are non-negotiable - rent, internet, power, credit cards, insurance, gas for the truck, monthly flea/heartworm prevention for my dog.

After those, comes good dog food, vaccinations for the dog, any service that may need to be done to the truck - like oi changes.

Then, hopefully, there's enough money to throw extra money at the credit card debt.

Then, if there's some disposable money I feel okay about spending, I may buy some needed underwear or other clothing. Maybe some decor items for my apartment, maybe some new shoes. Basically, after the non-negotiable important items, it's a matter of prioritizing what's most important to me. Maybe it's entertainment and forget about new underwear, etc.

If you end up with less money coming in than would be your ideal, though, it's amazing how you can still cope just fine. For instance, I had the choice after moving into my new apartment, of spending some disposable money on either some really cool room dividers for my new place - or - buying a microwave and air conditioning unit. I could not have them all. I decided I'd rather love my space until I could afford the a/c unit, and just live like the old days without a microwave for now - in order to love the decor in my new space.

Those are the kinds of decisions you have to make, if you don't have unlimited resources. It's certainly not ideal, but not the end of the world either. Would rather live like this than have stayed at a job that was making me suicidal. But, everyone has to make their own decisions.
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Old 05-22-2017, 11:13 PM
 
11,181 posts, read 10,503,755 times
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Quote:
Originally Posted by nicet4 View Post
Food
Entertainment
Clothes, Hobbies and Beauty Shop
Vacations and Emergencies
When we retired - me in late 2011, DH in early 2013, we had kept a spreadsheet tracking our expenses for a few years.
The 1st and 3rd categories were easy to track and predict. Our "hobbies" are birdwatching, genealogy, and gardening. The expenses for those haven't gone up in retirement. The amount we spent on clothes fell by the wayside, it's been such a minor expense.

Vacations became our largest single expense. We anticipated and planned for that, it's why we retired. Every year since we retired, we've spent 10-15k on travel and not regretted a penny.

Not sure what you mean by Emergencies - auto/home/sickness? That's what insurance is for. They don't impact us anymore in retirement than they did before.
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Old 05-22-2017, 11:46 PM
 
Location: Tennessee at last!
1,884 posts, read 3,021,807 times
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[quote=biscuitmom;48250367]When we retired - me in late 2011, DH in early 2013, we had kept a spreadsheet tracking our expenses for a few years.
The 1st and 3rd categories were easy to track and predict. Our "hobbies" are birdwatching, genealogy, and gardening. The expenses for those haven't gone up in retirement. The amount we spent on clothes fell by the wayside, it's been such a minor expense.

Vacations became our largest single expense. We anticipated and planned for that, it's why we retired. Every year since we retired, we've spent 10-15k on travel and not regretted a penny.

Not sure what you mean by Emergencies - auto/home/sickness? That's what insurance is for. They don't impact us anymore in retirement than they did before.[/QUOTE


I am not the OP, but assumed with the OP's budget categories that emergencies would include any house repair as that is not in the OP's budget. I could be wrong, if they rent. But hot water heater going out, new roof, microwave worn out, fireplace cleaning, etc. all likely would be an 'emergency' as the budget did not anticipate these basic things that happen.

Also, if the OP has pets, maybe vet visits for whatever reason would be an emergency.

Copayments for human medical needs.

Car maintenance--tires, oil change, etc.

Likely anything that is not budgeted for will be an emergency.
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Old 05-23-2017, 12:05 AM
 
11,181 posts, read 10,503,755 times
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Quote:
Originally Posted by lae60 View Post
I am not the OP, but assumed with the OP's budget categories that emergencies would include any house repair as that is not in the OP's budget. I could be wrong, if they rent. But hot water heater going out, new roof, microwave worn out, fireplace cleaning, etc. all likely would be an 'emergency' as the budget did not anticipate these basic things that happen.

Also, if the OP has pets, maybe vet visits for whatever reason would be an emergency.

Copayments for human medical needs.

Car maintenance--tires, oil change, etc.

Likely anything that is not budgeted for will be an emergency.
Good list, but not one single thing there that will change in retirement.
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Old 05-23-2017, 01:54 AM
 
Location: Planet Woof
3,222 posts, read 4,558,149 times
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I pay the rent first, the electric next, and then the few monthly bills like phones, internet, car insurance, etc.
What is left is food mostly. Don't buy new clothes-got plenty to wear. A tank of gas will last a month or more as I walk, bike, or scoot on most errands. Hair care could cost 20 bucks if I don't cut it myself.
We own a library of old movies and a Netflix/Amazon prime membership but I read a lot and the library is free plus we have shelves of our favorite authors and kindles.
My leisure time activities are free: biking, hiking, photography, cooking, reading, writing, riding my scooter, music, napping, swimming at the apartment pool.
Golf is 20 bucks for 18 holes and a cart with free hot dog and a drink for seniors. Play twice a month on average.
Occasionally I will buy something for the household each month, as needed. It has to be affordable and comes from the money left over after the bills are paid. This month it was a local park pass, next month it is a new vacuum-69 bucks.
I don't really budget per se, and our life is pretty frugal compared to some, but we don't have a lot of needs or wants beyond what is described.
We don't own credit cards and drive an older, paid for car. We rent and love fresh air in the summer and cool rooms in the winter. I cook and we eat in a lot which saves a bundle. Our life in no way revolves around shopping or travel. We are both homebodies.
Watching the birds in the feeder or the dogs play is our idea of peace and joy.
Who needs a budget? We just live within our means.

Last edited by HappyDogToday; 05-23-2017 at 02:08 AM..
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Old 05-23-2017, 03:08 PM
 
Location: Las Vegas
14,229 posts, read 29,970,145 times
Reputation: 27686
My budget is written in sand, not chiseled in stone. I live in a low COL area. I do my own hair and clothes shopping is $10 a couple times a year at the local thrift store. My budget busters are the once a year bills like insurance and house taxes. Those are my lean months. The electric bill is very high in the summer so that means less fun for me. Another thing that wreaks havoc with the budget short term is buying meat in bulk like 40lbs of hamburger from Zaycon Foods. But in the long run it's smart because it will last me 6 months or so. The freezer is always full.

Electricity $50 with no AC. $300 with AC
Natural Gas $20
Trash and Sewer $30
Water $25
Internet $120
Cell Phone $25
Hulu and Amazon $20
Gasoline $40
Dog Food $70
Food and Household $600

Total $1225
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