Where did you "easily" Trim expenses in retirement?
Where did you "easily" Trim expenses in retirement?
I have looked through a lot of threads and a recurring theme is the ease or unease of trimming expenses as needed in retirement.
Assuming real estate and local taxes stayed the same, how did you actually "adjust" your annual break even or lower it painlessly? What specific items did you do without in retirement?
Suggestions sought!
Assuming real estate and local taxes stayed the same, how did you actually "adjust" your annual break even or lower it painlessly? What specific items did you do without in retirement?
Suggestions sought!
Re: Where did you "easily" Trim expenses in retirement?
Fortunately
None.
No Need.
Don't Need that much
None.
No Need.
Don't Need that much
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
-
- Posts: 16054
- Joined: Fri Nov 06, 2020 12:41 pm
Re: Where did you "easily" Trim expenses in retirement?
Discretionary spending such as travel. There's no reason why this can't be cut, and it's a big mistake if one didn't include discretionary spending while planning their retirement.
- AnnetteLouisan
- Posts: 7262
- Joined: Sat Sep 18, 2021 10:16 pm
- Location: New York, NY
Re: Where did you "easily" Trim expenses in retirement?
I’m not retired yet, but I easily trimmed the following expenses in 2007 to anticipate hard times:
-housekeeping
-hairdresser
-dining out
-makeup and skincare
-pedicures and facials
during covid I easily trimmed
-take out food
-waxing
-clothing/shoes
-transportation
-health club
-stamps
-massages
-skincare
-gifts & donations
I think it’s nice to discover free or low cost sources of contentment while still covering the basics and staying healthy
-housekeeping
-hairdresser
-dining out
-makeup and skincare
-pedicures and facials
during covid I easily trimmed
-take out food
-waxing
-clothing/shoes
-transportation
-health club
-stamps
-massages
-skincare
-gifts & donations
I think it’s nice to discover free or low cost sources of contentment while still covering the basics and staying healthy
Last edited by AnnetteLouisan on Sun Oct 17, 2021 7:34 pm, edited 2 times in total.
Re: Where did you "easily" Trim expenses in retirement?
Marseille07 wrote: ↑Sun Oct 17, 2021 3:20 pm Discretionary spending such as travel. There's no reason why this can't be cut, and it's a big mistake if one didn't include discretionary spending while planning their retirement.
I don't know about "no reason"... if covid has taught us anything, it's that we need to triple our travel budget for retirement because we'll likely kill each other if we can't travel during retirement when we don't even have work to pre-occupy us.
Re: Where did you "easily" Trim expenses in retirement?
I trimmed lunch money.
The nature of my work and the need for a mental break mid-day meant I ate lunch out most days. This probably amounted to $200 a month, maybe a little more.
I still eat lunch out, but not nearly as often.
The nature of my work and the need for a mental break mid-day meant I ate lunch out most days. This probably amounted to $200 a month, maybe a little more.
I still eat lunch out, but not nearly as often.
Link to Asking Portfolio Questions
Re: Where did you "easily" Trim expenses in retirement?
Clothing (purchases of new/more clothing, that is! )
- Sandtrap
- Posts: 19591
- Joined: Sat Nov 26, 2016 5:32 pm
- Location: Hawaii No Ka Oi - white sandy beaches, N. Arizona 1 mile high.
Re: Where did you "easily" Trim expenses in retirement?
1
Spaced out very large renovation and property addition expenses over a period of 10 years to match portfolio withdrawals, etc.
2
Only changed wardrobe/clothing as they naturally shrank in size over time when in the closet which they tend to do if left unattended,.
j
Spaced out very large renovation and property addition expenses over a period of 10 years to match portfolio withdrawals, etc.
2
Only changed wardrobe/clothing as they naturally shrank in size over time when in the closet which they tend to do if left unattended,.
j
Re: Where did you "easily" Trim expenses in retirement?
If you are now able to do tasks that you enjoy but outsourced because you lacked time when you were working (like lawn care) or you had an expense that simply came to an end (like paying for a child’s college), then maybe cutting those costs would be painless.
But most cost cuts are going to make you at least at little bit worse off, because presumably you got some value out of the spending.
In order of preference (from first to go to last to go), I’d look at:
1. Reducing food costs
2. Reducing gifting to children
3. Reducing travel costs
These are our biggest ticket items, other than taxes (income & real estate). Getting rid of Hulu or buying cheaper cell phones just isn’t going to move the needle.
But most cost cuts are going to make you at least at little bit worse off, because presumably you got some value out of the spending.
In order of preference (from first to go to last to go), I’d look at:
1. Reducing food costs
2. Reducing gifting to children
3. Reducing travel costs
These are our biggest ticket items, other than taxes (income & real estate). Getting rid of Hulu or buying cheaper cell phones just isn’t going to move the needle.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
Re: Where did you "easily" Trim expenses in retirement?
As you can see, it depends on what you spend your money on before trimming.
-
- Posts: 5774
- Joined: Mon Sep 22, 2014 4:47 pm
Re: Where did you "easily" Trim expenses in retirement?
I moved so that local and RE taxes were NOT the same.
The new house is also smaller and cheaper to run.
Then I arranged for a worldwide pandemic so that I didn't feel comfortable spending money on travel and eating out.
The new house is also smaller and cheaper to run.
Then I arranged for a worldwide pandemic so that I didn't feel comfortable spending money on travel and eating out.
Re: Where did you "easily" Trim expenses in retirement?
I made no particular effort to trim expenses but certain expenses decreased anyway due to the transition to retirement:
1. Fuel, toll road, and vehicle maintenance costs all dropped substantially when commuting stopped.
2. I no longer need to periodically purchase replacement attire suitable for the office (dress shirts, dress shoes, ties, suits).
3. Very little expense now for dry cleaning/commercial laundering for business-type clothing.
4. I now rarely eat breakfast and/or lunch out.
1. Fuel, toll road, and vehicle maintenance costs all dropped substantially when commuting stopped.
2. I no longer need to periodically purchase replacement attire suitable for the office (dress shirts, dress shoes, ties, suits).
3. Very little expense now for dry cleaning/commercial laundering for business-type clothing.
4. I now rarely eat breakfast and/or lunch out.
Last edited by GmanJeff on Mon Oct 18, 2021 8:01 am, edited 5 times in total.
- ResearchMed
- Posts: 16795
- Joined: Fri Dec 26, 2008 10:25 pm
Re: Where did you "easily" Trim expenses in retirement?
This pandemic unexpectedly led us to realize how easy cutting back in a few ways could be. Much easier than we would have predicted.Marseille07 wrote: ↑Sun Oct 17, 2021 3:20 pm Discretionary spending such as travel. There's no reason why this can't be cut, and it's a big mistake if one didn't include discretionary spending while planning their retirement.
Although we've missed our traveling terribly, it's also "okay". We'd like to travel a bit again, ahem - but "less travel" would certainly be easy. We enjoy photos/videos, memories, and especially occasional conversations like "Oh, that reminds me of that amazing <event, place, etc.>..." and then we are off and running with some wonderful reminiscing.
Food is another category, assuming one isn't already eating at the "one step above cat food" level. When there were some shortages during the spring of 2020, we stocked up a bit on some beans... and we realized that we REALLY enjoyed eating them, with rice, as a good protein source, with some rather simple spicing. We were a bit annoyed that we hadn't realized this much earlier, in fact. But there are lots of ways to spend less on food if one hasn't already been focused on doing so.
(It's brought back memories of many years ago, when finances truly was very tight. Back then, I was still living with two young children in a very small apartment, and that was fine. And we ate very inexpensively. I took them to free concerts. I wore jeans all the time so the girls could have a few nicer clothes occasionally. It wasn't really a choice, so we made do, and it was fine. That was just "how we lived" then. I'd rather not cut back quite to that level, but if necessary... sure. From our recent traveling, we know what occasional smaller scale living situations cause a bit of friction, so we'd try to avoid "those" )
And pants? Who needs to buy pants? Zoom calls are just fine with a reasonably nice top on!
More seriously, spending less on clothing (less expensive items, and also fewer of them) is also especially easy if there are no professional meetings.
And lowered spending on some personal care: Hair for both of us, and for me, manicure/pedicures. {As long as we can afford some soap and antiperspirant... ]
We had always planned to "cut back if needed" (in order to spend a bit more before retirement, when we knew we could still "do" those things, etc.). And the past 1-2 years has shown us that it has been surprisingly easy to cut back. And we could pretty easily still cut back quite a bit more if it became necessary. Or... BEFORE it became truly *necessary*.
It's the incremental adjusting if needed that makes sense to us, rather than waiting until things start to feel a bit desperate.
RM
This signature is a placebo. You are in the control group.
Re: Where did you "easily" Trim expenses in retirement?
Reducing spending on traveling does not have to mean eliminating travel. I have not been on an airplane since the pandemic started but we have taken several beach vacations where we drove to the beach. We mostly fixed our meals so the food costs were about the same as when we were at home. This was not done because of financial reasons but it did save us a lot of money.MrTom wrote: ↑Sun Oct 17, 2021 3:26 pmMarseille07 wrote: ↑Sun Oct 17, 2021 3:20 pm Discretionary spending such as travel. There's no reason why this can't be cut, and it's a big mistake if one didn't include discretionary spending while planning their retirement.
I don't know about "no reason"... if covid has taught us anything, it's that we need to triple our travel budget for retirement because we'll likely kill each other if we can't travel during retirement when we don't even have work to pre-occupy us.
-
- Posts: 3338
- Joined: Thu May 19, 2016 5:04 pm
Re: Where did you "easily" Trim expenses in retirement?
Easy, your schedule is more flexible. You could cut tavel expense during slow season and take discounted ticket easily. You can move more freely to low cost and low tax area. No SS and medicare tax deduction. There are are thousand of ways to trim your expense during retirement.
Re: Where did you "easily" Trim expenses in retirement?
less gasoline and related auto expenses (oil changes, tires etc.), parking (about $1500 per year), clothes, tools
Re: Where did you "easily" Trim expenses in retirement?
We no longer save for retirement. The last year of my full time job (2009) I saved 17% of my salary in deferred compensation. During the 10 years of my part time job (2010-2019), I saved up to the top of the match in their 401k.
Re: Where did you "easily" Trim expenses in retirement?
Compared to pre-retirement, income taxes was by far the greatest reduction.
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
Re: Where did you "easily" Trim expenses in retirement?
Since OP said "as needed" and "in retirement," I assumed they were looking at planning flexibility for their budget, but seems almost everyone else has assumed that they want their post retirement budget to be lower than their current budget.
OP, could you clarify?
OP, could you clarify?
Last edited by sailaway on Sun Oct 17, 2021 5:51 pm, edited 1 time in total.
Re: Where did you "easily" Trim expenses in retirement?
My goal was to be able to maintain roughly the same standard of living in retirement as we had enjoyed before. Some expenses just naturally went away (business clothes, SS contributions, getting dress shirts laundered, gas/parking costs associated with commuting, etc.) In other cases, although there was no real need to trim costs, I just couldn’t justify spending money to get the lawn mowed or the house cleaned when I had plenty of free time. So although I can’t say I enjoyed taking those tasks on again, doing so wasn’t horrible, so I did.delamer wrote: ↑Sun Oct 17, 2021 3:45 pm If you are now able to do tasks that you enjoy but outsourced because you lacked time when you were working (like lawn care) or you had an expense that simply came to an end (like paying for a child’s college), then maybe cutting those costs would be painless.
But most cost cuts are going to make you at least at little bit worse off, because presumably you got some value out of the spending.
In order of preference (from first to go to last to go), I’d look at:
1. Reducing food costs
2. Reducing gifting to children
3. Reducing travel costs
These are our biggest ticket items, other than taxes (income & real estate). Getting rid of Hulu or buying cheaper cell phones just isn’t going to move the needle.
Friar1610 |
50-ish/50-ish - a satisficer, not a maximizer
Re: Where did you "easily" Trim expenses in retirement?
We moved out of the Chicago, IL suburbs and into the Phoenix, AZ East Valley. Illinois property taxes were $8,600.00. Current property taxes are $1,300.00. According to zillow our current home is valued at $50,000.00 more than our previous home. Also, in AZ you don't shovel heat nor mow a gravel yard.
wait until next year!
-
- Posts: 2979
- Joined: Sun Aug 25, 2019 7:16 am
Re: Where did you "easily" Trim expenses in retirement?
Clothing and food.
"History is the memory of time, the life of the dead and the happiness of the living." Captain John Smith 1580-1631
Re: Where did you "easily" Trim expenses in retirement?
Intermittent fasting lowered my weight and my food budget
Re: Where did you "easily" Trim expenses in retirement?
We didn’t retire until:
* mortgage was paid off (after 30 years)
* kids were ‘paid off’ (they were done with private K-12 schools and college, pretty much without student loans)
* our retirement accounts and pensions were funded ‘enough’.
Those items had been almost half our budget so our retirement budget is a lot less now without giving up anything.
* mortgage was paid off (after 30 years)
* kids were ‘paid off’ (they were done with private K-12 schools and college, pretty much without student loans)
* our retirement accounts and pensions were funded ‘enough’.
Those items had been almost half our budget so our retirement budget is a lot less now without giving up anything.
- jabberwockOG
- Posts: 3087
- Joined: Thu May 28, 2015 7:23 am
Re: Where did you "easily" Trim expenses in retirement?
Moved to small town LCOL area with mild climate near water.
1. New clothes expense virtually non existent. Suits, dress shirts, ties, dress shoes - 90% of it went off to the local charity.
2. Milder climate - utility costs reduced.
3. Cut cable, no land line, internet package down to $35/month 100mb - plenty for us in retirement
4. Small town living - so car mileage per year less than 5K - less gas/tires/wear and tear
5. Living in a desirable location with a nice climate - drastically reduced travel costs
6. Joined local community garden - growing significant amount of our own produce year round
7. Rarely going out to eat - enjoy cooking at home with plenty of time to shop and cook - for ourselves and friends.
8. Most socializing out is midweek via "happy hour" prices - lowers costs
9. Ability to travel off peak season and take advantage of lower costs when we do travel
1. New clothes expense virtually non existent. Suits, dress shirts, ties, dress shoes - 90% of it went off to the local charity.
2. Milder climate - utility costs reduced.
3. Cut cable, no land line, internet package down to $35/month 100mb - plenty for us in retirement
4. Small town living - so car mileage per year less than 5K - less gas/tires/wear and tear
5. Living in a desirable location with a nice climate - drastically reduced travel costs
6. Joined local community garden - growing significant amount of our own produce year round
7. Rarely going out to eat - enjoy cooking at home with plenty of time to shop and cook - for ourselves and friends.
8. Most socializing out is midweek via "happy hour" prices - lowers costs
9. Ability to travel off peak season and take advantage of lower costs when we do travel
-
- Posts: 9479
- Joined: Sun Oct 08, 2017 7:16 pm
Re: Where did you "easily" Trim expenses in retirement?
1. Pension contributions.
2. Dining out.
3. Commuting.
4. Business attire.
5. Income taxes.
6. Life insurance.
7. College tuition for kids.
8. Alimony.
Expenses that have increased since retirement:
1. International travel.
2. Personal trainer.
3. Internet access.
2. Dining out.
3. Commuting.
4. Business attire.
5. Income taxes.
6. Life insurance.
7. College tuition for kids.
8. Alimony.
Expenses that have increased since retirement:
1. International travel.
2. Personal trainer.
3. Internet access.
Re: Where did you "easily" Trim expenses in retirement?
Haven't intentionally lowered expenses since retirement. Obviously we naturally spent less on anything specifically work-related.
For me that would be gas and a bit of work clothes. For my wife that would be scrubs. Neither amounted to all that much.
We planned all along to spend at the same rate in retirement as we did when working. I'm not sure why anyone would do differently.
This isn't just my wallet. It's an organizer, a memory and an old friend.
Re: Where did you "easily" Trim expenses in retirement?
Since I retired at the beginning of the pandemic, the two biggest changes have been:
1. all travel and commuting-related expenses have gone from $10-20k per year to zero.
2. all restaurant and related (take out food, etc.) expenses have gone from $2-3k per year to zero.
Well, technically the biggest changes have been increased income taxes, due to Roth conversions, but for some reason those don't seem to count.
1. all travel and commuting-related expenses have gone from $10-20k per year to zero.
2. all restaurant and related (take out food, etc.) expenses have gone from $2-3k per year to zero.
Well, technically the biggest changes have been increased income taxes, due to Roth conversions, but for some reason those don't seem to count.
Re: Where did you "easily" Trim expenses in retirement?
As others have noted, SS tax and medicare tax are gone.
Changed insurance to "self+1" when the kids passed age 26.
Refinanced the mortgage at 2.625. In fact I did it twice with Lenderfi. Biggest savings so far.
Watch youtube videos to learn how to do new home/car repairs.
If I can buy a tool once to avoid paying someone multiple times, I usually buy the tool and do the work myself.
Cook more. Eat out less.
Covid really cut down on meals/drinks out.
I recompete the insurance (car and home) at every policy renewal.
Got rid of the landline and cable TV.
I check cell phone rates every year or so.
Changed insurance to "self+1" when the kids passed age 26.
Refinanced the mortgage at 2.625. In fact I did it twice with Lenderfi. Biggest savings so far.
Watch youtube videos to learn how to do new home/car repairs.
If I can buy a tool once to avoid paying someone multiple times, I usually buy the tool and do the work myself.
Cook more. Eat out less.
Covid really cut down on meals/drinks out.
I recompete the insurance (car and home) at every policy renewal.
Got rid of the landline and cable TV.
I check cell phone rates every year or so.
Re: Where did you "easily" Trim expenses in retirement?
Take 2 trips a year instead of 4.jgeo55 wrote: ↑Sun Oct 17, 2021 2:31 pm I have looked through a lot of threads and a recurring theme is the ease or unease of trimming expenses as needed in retirement.
Assuming real estate and local taxes stayed the same, how did you actually "adjust" your annual break even or lower it painlessly? What specific items did you do without in retirement?
Suggestions sought!
Or take 4, but cheaper ones.
Eat out at cheaper places, or eat out less.
Watch football or baseball on TV, instead of going to the game.
Drink at home with friends instead of a bar.
Pretty painless ways to "cut back" during a crash.
And I wouldn't even cut back that much in the first year of a crash... Any planned vacations, we'd still take... We'd wait to book the next ones if the crash was still on-going, but once it bounced back, we'd book double the trips to make up for skipping a few. If it didn't bounce back quickly, that's when we'd start looking at cheaper trips for the following year.
"The best tools available to us are shovels, not scalpels. Don't get carried away." - vanBogle59
Re: Where did you "easily" Trim expenses in retirement?
I find this a really good question.
We'll assume your not talking about things like pay SS taxes/income taxes/pension contributions, and we'll presume your not talking about the big things like childcare and college which many at retirement age are no longer paying. Things like kid's activity costs are more related to a kid's age vs. when one retires, so I'll exclude that big expense category from consideration. One can also cut back on retirement savings which is a big one.
Personally, about 5 yrs into retiring from work, and honestly don't think there have been many expenses that have been trimmed pre-retiring vs. post-retirement with the exception of having the home paid off. That's a debatable thing to do on this site, but it's the only big financial expense that has been trimmed.
On basic categories:
Food: No difference. Always tried to be conscientious about eating out and shop smartly in the grocery stores.
Gas: Drive less for work, but drive more for recreational activities.
Housing expenses outside mortgage: Taxes/insurance,HOA's have gone up. Still DIY many things then/now.
Cars: Nothing's changed there, still keep a car as long as possible/functional.
Recreational expenses/activities: Nothing's changed, maybe spending more on new things/activities.
Travel: Don't see how this is lower. In fact, Covid has caused a significant increase in things like hotels/cars (very significant).
Work Travel: No change. When I traveled for work, work paid for that travel.
Work Clothes: That's less but really wasn't a big life expense.
Health Insurance: Actually it's increased. Premiums higher now that work isn't covering most of that, dental care costs are higher probably due to
age.
Life Insurance: Policies are still in place, so no change there.
Maids/yard service/car washing: No change. DIY then/now.
Travel to/from family: Same, maybe more since parents are older/sicker. Parents can no longer pick us up from airports.
Other:?
OP, the above was pretty much expected. Expenses related to our kid will hopefully end once college is done, hopefully. May sell the boat when the kid is not in the picture. I do think it's important to look honestly at what things you like do pre-retirement and ask yourself if those expenses will change/drop magically after retiring. I can see as health/stamina declines, more of the activities may drop off and I suspect at some age travel desires will drop off and that will drop expenses. Again the big one was the mortgage, but most on this site will advocate carrying the mortgage for as long as possible.
We'll assume your not talking about things like pay SS taxes/income taxes/pension contributions, and we'll presume your not talking about the big things like childcare and college which many at retirement age are no longer paying. Things like kid's activity costs are more related to a kid's age vs. when one retires, so I'll exclude that big expense category from consideration. One can also cut back on retirement savings which is a big one.
Personally, about 5 yrs into retiring from work, and honestly don't think there have been many expenses that have been trimmed pre-retiring vs. post-retirement with the exception of having the home paid off. That's a debatable thing to do on this site, but it's the only big financial expense that has been trimmed.
On basic categories:
Food: No difference. Always tried to be conscientious about eating out and shop smartly in the grocery stores.
Gas: Drive less for work, but drive more for recreational activities.
Housing expenses outside mortgage: Taxes/insurance,HOA's have gone up. Still DIY many things then/now.
Cars: Nothing's changed there, still keep a car as long as possible/functional.
Recreational expenses/activities: Nothing's changed, maybe spending more on new things/activities.
Travel: Don't see how this is lower. In fact, Covid has caused a significant increase in things like hotels/cars (very significant).
Work Travel: No change. When I traveled for work, work paid for that travel.
Work Clothes: That's less but really wasn't a big life expense.
Health Insurance: Actually it's increased. Premiums higher now that work isn't covering most of that, dental care costs are higher probably due to
age.
Life Insurance: Policies are still in place, so no change there.
Maids/yard service/car washing: No change. DIY then/now.
Travel to/from family: Same, maybe more since parents are older/sicker. Parents can no longer pick us up from airports.
Other:?
OP, the above was pretty much expected. Expenses related to our kid will hopefully end once college is done, hopefully. May sell the boat when the kid is not in the picture. I do think it's important to look honestly at what things you like do pre-retirement and ask yourself if those expenses will change/drop magically after retiring. I can see as health/stamina declines, more of the activities may drop off and I suspect at some age travel desires will drop off and that will drop expenses. Again the big one was the mortgage, but most on this site will advocate carrying the mortgage for as long as possible.
Last edited by IMO on Sun Oct 17, 2021 10:49 pm, edited 2 times in total.
Re: Where did you "easily" Trim expenses in retirement?
doing without a lot of gasoline since no longer commuting. A lot less fast food lunches at work. Shoes are lasting longer. no expense for work clothes.
-
- Posts: 5463
- Joined: Wed Dec 28, 2011 8:56 am
- Location: North Carolina
Re: Where did you "easily" Trim expenses in retirement?
The first step is to identify all of your expenses for the year. Many expenses recur every month but some are quarterly or annual. Once you have that, you should review for areas you can cut with the least impact to you and your family.
We have never budgeted but we have always lived within our means. We could cut our spending but we have sufficient income to cover our expenses so I do not see the need to do so. Why sacrifice some of life's pleasures when you do not have to. The pandemic has cut our budget because are not traveling as much or going out as much. Once we are past that, there will be a surge in our spending.
We have never budgeted but we have always lived within our means. We could cut our spending but we have sufficient income to cover our expenses so I do not see the need to do so. Why sacrifice some of life's pleasures when you do not have to. The pandemic has cut our budget because are not traveling as much or going out as much. Once we are past that, there will be a surge in our spending.
Re: Where did you "easily" Trim expenses in retirement?
+1, really, it's understanding where your money now is going, and tracking and categorizing all cash outflows (every bank and credit card charge). I break apart mine in 2 sections, monthly (utilities, food, gas, home/bath supplies..etc), and then periodic (property taxes, insurance...etc). It's the monthly ones I find that one can adjust and trim up/down. Then maybe an annual review of the periodic ones, like adjusting insurance coverage. Once you start budgeting, regardless if you have excess wealth or not, I think you will spend less, because you start looking at your life finances as one would look after a business, for better or for worse.carolinaman wrote: ↑Mon Oct 18, 2021 4:10 am The first step is to identify all of your expenses for the year. Many expenses recur every month but some are quarterly or annual. Once you have that, you should review for areas you can cut with the least impact to you and your family.
-
- Posts: 2798
- Joined: Fri Nov 20, 2009 1:39 pm
Re: Where did you "easily" Trim expenses in retirement?
What I bolded in your reply describes my first condition to being able to retire back in 2008 at age 45. In my overall budget plan, the increase in my health insurance costs was roughly offset by the elimination of FICA taxes and commutation expenses. Everything else was pretty much the same as before. I wasn't making any 401k contributions in the last 17 months I worked, so there was nothing to eliminate in that area.friar1610 wrote: ↑Sun Oct 17, 2021 5:06 pmMy goal was to be able to maintain roughly the same standard of living in retirement as we had enjoyed before. Some expenses just naturally went away (business clothes, SS contributions, getting dress shirts laundered, gas/parking costs associated with commuting, etc.) In other cases, although there was no real need to trim costs, I just couldn’t justify spending money to get the lawn mowed or the house cleaned when I had plenty of free time. So although I can’t say I enjoyed taking those tasks on again, doing so wasn’t horrible, so I did.delamer wrote: ↑Sun Oct 17, 2021 3:45 pm If you are now able to do tasks that you enjoy but outsourced because you lacked time when you were working (like lawn care) or you had an expense that simply came to an end (like paying for a child’s college), then maybe cutting those costs would be painless.
But most cost cuts are going to make you at least at little bit worse off, because presumably you got some value out of the spending.
In order of preference (from first to go to last to go), I’d look at:
1. Reducing food costs
2. Reducing gifting to children
3. Reducing travel costs
These are our biggest ticket items, other than taxes (income & real estate). Getting rid of Hulu or buying cheaper cell phones just isn’t going to move the needle.
My budget had built into it a surplus or cushion which would cover me for smaller, unforeseen expenses. IOW, if I needed to go on a small spending spree once in a while, that was fine. I already had a larger "slush fund" in case there were any larger, unforeseen expenses.
Re: Where did you "easily" Trim expenses in retirement?
So that’s really a tradeoff between financial pain and use-of-time pain (for lack of a better term).friar1610 wrote: ↑Sun Oct 17, 2021 5:06 pmMy goal was to be able to maintain roughly the same standard of living in retirement as we had enjoyed before. Some expenses just naturally went away (business clothes, SS contributions, getting dress shirts laundered, gas/parking costs associated with commuting, etc.) In other cases, although there was no real need to trim costs, I just couldn’t justify spending money to get the lawn mowed or the house cleaned when I had plenty of free time. So although I can’t say I enjoyed taking those tasks on again, doing so wasn’t horrible, so I did.delamer wrote: ↑Sun Oct 17, 2021 3:45 pm If you are now able to do tasks that you enjoy but outsourced because you lacked time when you were working (like lawn care) or you had an expense that simply came to an end (like paying for a child’s college), then maybe cutting those costs would be painless.
But most cost cuts are going to make you at least at little bit worse off, because presumably you got some value out of the spending.
In order of preference (from first to go to last to go), I’d look at:
1. Reducing food costs
2. Reducing gifting to children
3. Reducing travel costs
These are our biggest ticket items, other than taxes (income & real estate). Getting rid of Hulu or buying cheaper cell phones just isn’t going to move the needle.
Like you said, some things are hard(ish) to justify paying for when you have a lot of free time especially if you don’t mind doing them. Based on what I’ve observed among my retired friends, a big chunk still pay for housecleaning but a lot don’t. Just showing that everyone puts their own value on various tasks, or avoiding them.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
Re: Where did you "easily" Trim expenses in retirement?
This is an excellent point.WhiteMaxima wrote: ↑Sun Oct 17, 2021 4:22 pm Easy, your schedule is more flexible. You could cut tavel expense during slow season and take discounted ticket easily. You can move more freely to low cost and low tax area. No SS and medicare tax deduction. There are are thousand of ways to trim your expense during retirement.
It's a big deal to move, but when you don't care about being next to good schools or close to a city with good jobs to limit the commute, it does opens up the entire world.
And traveling in the "off-season" really is a benefit.
You can also take advantage of last-second travel deals that sometimes pop up.
"The best tools available to us are shovels, not scalpels. Don't get carried away." - vanBogle59
- vanbogle59
- Posts: 1314
- Joined: Wed Mar 10, 2021 7:30 pm
Re: Where did you "easily" Trim expenses in retirement?
Living in FL, DW and I have a hobby of keeping an eye on the cruise lines.
Obviously this has been interrupted.
But, over the years, we have snagged some great last minute or off season deals.
Can't wait till I have more free time and can get back into it.
Although I've never done it, I think RV rentals have similar bargains for the flexible.
Re: Where did you "easily" Trim expenses in retirement?
This is exactly what I would have written. Didn't intentionally do it, but those categories dropped like a rock.GmanJeff wrote: ↑Sun Oct 17, 2021 4:03 pm I made no particular effort to trim expenses but certain expenses decreased anyway due to the transition to retirement:
1. Fuel, toll road, and vehicle maintenance costs all dropped substantially when commuting stopped.
2. I no longer need to periodically purchase replacement attire suitable for the office (dress shirts, dress shoes, ties, suits).
3. Very little expense now for dry cleaning/commercial laundering for business-type clothing.
4. I now rarely eat breakfast and/or lunch out.
Re: Where did you "easily" Trim expenses in retirement?
Not retirement specific, but "House and Cars" is the first place I tell anyone to look who has this question.
All these articles you see about "don't get a latte" or "change your own oil", I wouldn't want to do that in retirement. I don't do it today, I would go insane looking at every penny.
But "House and Cars" typically is usually right around 50% of a household's spending. Downgrading those slightly give you a much better quality of life.
All these articles you see about "don't get a latte" or "change your own oil", I wouldn't want to do that in retirement. I don't do it today, I would go insane looking at every penny.
But "House and Cars" typically is usually right around 50% of a household's spending. Downgrading those slightly give you a much better quality of life.
-
- Posts: 1488
- Joined: Wed Mar 23, 2016 9:28 am
- Location: SE Michigan
Re: Where did you "easily" Trim expenses in retirement?
Retired in 2005 at 50. Three areas with significant reduction in expenses after retirement: income taxes, charitable giving, clothing (I still had to wear suits up to the end). Fourth reduction was/is minor - personal spending (lunch, beer, etc). And of course, I now am not putting funds away for retirement either.
A reduction in commuting costs would normally occur too. But not for me - I happened to live about 5 miles from work (lucky accident), plus travelled a lot on the company dime. My commuting costs were negligible after mid 1990's.
Conversely, nothing went up too significantly either. So far, knock on wood. Total nominal spend ex taxes isn't all that different now vs. then (so slight decline in real terms I suppose). We're living similar lifestyle now as we were prior to retirement, as we had intended. We are moderate spenders, but not extreme frugal.
A reduction in commuting costs would normally occur too. But not for me - I happened to live about 5 miles from work (lucky accident), plus travelled a lot on the company dime. My commuting costs were negligible after mid 1990's.
Conversely, nothing went up too significantly either. So far, knock on wood. Total nominal spend ex taxes isn't all that different now vs. then (so slight decline in real terms I suppose). We're living similar lifestyle now as we were prior to retirement, as we had intended. We are moderate spenders, but not extreme frugal.
-
- Posts: 662
- Joined: Mon Mar 19, 2012 7:20 am
- Location: On the beach in SC. Hilton Head Island.
Re: Where did you "easily" Trim expenses in retirement?
Besides the social security and unemployment taxes I don't spend hardly anything on dry cleaning. We do spend more money on travel since we have more time. We bought the most expensive house we ever owned in retirement and have an order in on an expensive electric car, not a Tesla. We're giving lots of money to our son. Still have all the long pants I had when I retired seven years ago since I'm in shorts 10 months of the year. Haven't had to buy any dress shoes either. I'm pretty sure we are spending more money now then when we were working and certainly enjoying ourselves more. Having a combination of four guaranteed pensions, two of which are inflation adjusted and the other two are pegged to the stock market, as well as ss and RMDs makes life very comfortable. Sure beats work.
Re: Where did you "easily" Trim expenses in retirement?
I retired in 2012 and did not take SSA retirement until FRA in 2016. All was well. Then I got engaged and married in 2018 and now I/we have two grandsons, 2 & 6.
Trim? HA.
Trim? HA.
Re: Where did you "easily" Trim expenses in retirement?
Yes, it's those evil wooden hangers that suck a size out of hung clothing almost annually.Sandtrap wrote: ↑Sun Oct 17, 2021 3:42 pm 1
Spaced out very large renovation and property addition expenses over a period of 10 years to match portfolio withdrawals, etc.
2
Only changed wardrobe/clothing as they naturally shrank in size over time when in the closet which they tend to do if left unattended,.
j
Re: Where did you "easily" Trim expenses in retirement?
Same here. Outside of that, not much else initially...except not eating out lunch very often, but that was not much. I didn't have to buy clothes as much either. (I worked in a paint factory and had a lot of paint splattered on them.)
Woof. Woof.
Unless you try to do something beyond what you have already mastered you will never grow. (Ralph Waldo Emerson)
- Jazztonight
- Posts: 1339
- Joined: Tue Feb 27, 2007 11:21 pm
- Location: Lake Merritt
Re: Where did you "easily" Trim expenses in retirement?
Bogleheads traditionally try not to live beyond their means. They've figured out a way to save, invest, and keep things under control. (The alternative is to be in constant debt, with the associated stress and worry. Who needs that?)
Taylor said as much years ago--if his portfolio/income in retirement was down, he lowered his spending, and vice versa.
Personally, about 8 years before I hit 66 I semi-retired after crunching the numbers. The house was paid for, the kids' college expenses were over, and I knew I'd be ok. It all worked out better than I could have expected because, as others have reported, income taxes, etc., decreased. A lot. Last year we became a one-car family, and since I don't drive much anymore my car-related expenses and gas costs have gone down.
With the run-up in the stock market in the last year or so, we now have a higher worth than ever. Thus, we've actually been spending more on eating out, planned travel, and giving/donations.
I've always suspected that you don't need a tremendous amount to retire comfortably. You only need enough.
Good luck. You'll figure it out.
Taylor said as much years ago--if his portfolio/income in retirement was down, he lowered his spending, and vice versa.
Personally, about 8 years before I hit 66 I semi-retired after crunching the numbers. The house was paid for, the kids' college expenses were over, and I knew I'd be ok. It all worked out better than I could have expected because, as others have reported, income taxes, etc., decreased. A lot. Last year we became a one-car family, and since I don't drive much anymore my car-related expenses and gas costs have gone down.
With the run-up in the stock market in the last year or so, we now have a higher worth than ever. Thus, we've actually been spending more on eating out, planned travel, and giving/donations.
I've always suspected that you don't need a tremendous amount to retire comfortably. You only need enough.
Good luck. You'll figure it out.
"What does not destroy me, makes me stronger." Nietzsche
Re: Where did you "easily" Trim expenses in retirement?
We retired when our retirement house was built, so we were happy to stay home in the new place, and dear spouse was a diligent gardener so our recreation was done locally during the growing season, with off-season pricing on our ... off season traveling. We needed to eat out after a hectic week at work and that need was gone. We liked leisurely cooking but did not have time for that while working jobs that ran until the work was done everyday. We so relished our new free time in retirement that we did not need more entertainment that just leisurely living at home, our movies were from the library.
We were saving so much in the run up to retirement day that we did not need to reduce our spending when retirement started.
There wasn't any conscious trimming of expenses, just a continued awareness of value when money was spent.
We were saving so much in the run up to retirement day that we did not need to reduce our spending when retirement started.
There wasn't any conscious trimming of expenses, just a continued awareness of value when money was spent.
Re: Where did you "easily" Trim expenses in retirement?
Paid off thirty year mortgage four years early and four years before retirement. Put surplus in taxable account. have not had to touch funds except for RMDs.
- BrooklynInvest
- Posts: 1183
- Joined: Sun Jul 28, 2013 9:23 am
Re: Where did you "easily" Trim expenses in retirement?
My "retirement" was forced due to a layoff. Good news is I hit my number as a result of the package. Problem was (is) I had no time to mentally adjust to my new world. I didn't HAVE to cut costs from a financial perspective. But after a lifetime of saving it's hard to turn off the frugality. Working on it...
I cut a few expenses to make myself feel better. Eg, we now stream basic TV rather than through cable boxes, saving about $40 a month. The combination of a pandemic and a kid has changed our eating out habits but now that we're vaccinated we find the time to go out to dinner about once a week. And maybe one other time with the little one. The cold weather will reduce that. I also don't' buy lunch out very often. I could, but I gotta watch my portions now that I've started exercising again so that one's win-win.
Biggest cut has been travel. Other than renting a house at the beach over the summer (automatic social distancing!) we haven't done any.
I cut a few expenses to make myself feel better. Eg, we now stream basic TV rather than through cable boxes, saving about $40 a month. The combination of a pandemic and a kid has changed our eating out habits but now that we're vaccinated we find the time to go out to dinner about once a week. And maybe one other time with the little one. The cold weather will reduce that. I also don't' buy lunch out very often. I could, but I gotta watch my portions now that I've started exercising again so that one's win-win.
Biggest cut has been travel. Other than renting a house at the beach over the summer (automatic social distancing!) we haven't done any.