Biggest expenses in life
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Biggest expenses in life
What are some of the biggest expenses you have had in your life ?
a) That in retrospect, you wish you hadn't made and rather invested some portion of that amount.
b) They were worth it.
Some big ones at least in my life so far are..
1. Wedding.. could have gone smaller and saved $$
2. House..worth it
3. Day Care...very expensive but totally worth it.
a) That in retrospect, you wish you hadn't made and rather invested some portion of that amount.
b) They were worth it.
Some big ones at least in my life so far are..
1. Wedding.. could have gone smaller and saved $$
2. House..worth it
3. Day Care...very expensive but totally worth it.
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Re: Biggest expenses in life
Easy, biggest expenses were kids and houses. Kids were definitely worth the expense. Housing is a lifestyle, not an investment. I would say the houses were not worth it, my DW would disagree, so we have a house.
Re: Biggest expenses in life
Children, housing, auto, entertainment, food in that order.
So far, not an issue for me, but health would be another one. Taxes too.
So far, not an issue for me, but health would be another one. Taxes too.
Last edited by Lee_WSP on Wed Apr 14, 2021 7:13 pm, edited 1 time in total.
Re: Biggest expenses in life
$33k cash for my brand new Acura in year 2011, I wish I financed this depreciating asset. Still drive and should last another decade but that’s it for me. Rest are all natural part of life
Re: Biggest expenses in life
Totally agree on that
Re: Biggest expenses in life
Wedding was cheap. We went off and got married in Hawaii and didn't invite anyone. My biggest costs have been my education, housing, and my spendthrift ways.
- SmileyFace
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Re: Biggest expenses in life
All worth it:
- stay at home parent decision (biggest ticket item)
- house
- children's educations
- new cars
- some big memorable vacations
- inground swimming pool and landscaping (my spouse and I argued on this one for a bit but in retrospect it was worth every penny - lots of memories and still in use after 20+ years)
- stay at home parent decision (biggest ticket item)
- house
- children's educations
- new cars
- some big memorable vacations
- inground swimming pool and landscaping (my spouse and I argued on this one for a bit but in retrospect it was worth every penny - lots of memories and still in use after 20+ years)
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Re: Biggest expenses in life
It depends on who you are asking, but in my case it is Pizza
Re: Biggest expenses in life
Between the pizza, the chinese delivery and the fast food, this is probably my one regret, but that has more to do with the diabetes than the money (my diabetes is currently lifestyle controlled, so not an additional money drag).BalancedJCB19 wrote: ↑Wed Apr 14, 2021 7:28 pm It depends on who you are asking, but in my case it is Pizza
Re: Biggest expenses in life
My single biggest expense in life is Insulin. It's worth it.....
Actually, I spend more on taxes. I also think those are worth it.
Actually, I spend more on taxes. I also think those are worth it.
Re: Biggest expenses in life
Biggest expense in life....
Wasting time on the internet when I could be living life.
Not meaning to be a bomb thrower, but that's what came to mind. Time is more precious than money...and what we'll run out of first.
With that, I'm gong to take my own advice and get off the computer and hang out with my wife.
Wasting time on the internet when I could be living life.
Not meaning to be a bomb thrower, but that's what came to mind. Time is more precious than money...and what we'll run out of first.
With that, I'm gong to take my own advice and get off the computer and hang out with my wife.
"Pretired", working 20 h/wk. AA 75/25: 30% TSM, 19% value (VFVA/AVUV), 18% Int'l LC, 8% emerging, 25% GFund/VBTLX. Military pension ≈60% of expenses. Pension+SS@age 70 ≈100% of expenses.
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Re: Biggest expenses in life
Oh Man, thanks for turning this serious. Glad you have it under control. I don't have diabetes yet, but definitely other issues due to my over indulgence of my beloved Pizza and Chinese food. Damn it! Everything I love is either bad for me, immoral or illegal.sailaway wrote: ↑Wed Apr 14, 2021 7:33 pmBetween the pizza, the chinese delivery and the fast food, this is probably my one regret, but that has more to do with the diabetes than the money (my diabetes is currently lifestyle controlled, so not an additional money drag).BalancedJCB19 wrote: ↑Wed Apr 14, 2021 7:28 pm It depends on who you are asking, but in my case it is Pizza
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Re: Biggest expenses in life
Upgrading houses we didn’t stay in very long and vehicles along with wheels, accessories, etc.
Re: Biggest expenses in life
Taxes, by a country mile !!!
Re: Biggest expenses in life
From a personal standpoint, a big chunk of my budget goes to insurance in one form or another: health (100% self funded), homeonwer's, auto, umbrella, and a couple of specialty type policies.
Re: Biggest expenses in life
Our taxes have exceeded the sum of everything else for many years now.
Re: Biggest expenses in life
One of my biggest expenses was buying a brand new Harley 9 years ago. I don’t regret the purchase but DW continues to remind me that all it does is sit in the garage. She is right. It has less than 2k miles. I know. It’s shameful. I can’t bring myself to sell it as I know I will want another as soon as I sell.
One of our biggest recurring expenses was gym memberships. We spent a fortunate each year on them. I finally got smart and cancelled two of the memberships recently. I’m now trying to find a gym closer to the house as the others weren’t as close as I would like.
One of our biggest recurring expenses was gym memberships. We spent a fortunate each year on them. I finally got smart and cancelled two of the memberships recently. I’m now trying to find a gym closer to the house as the others weren’t as close as I would like.
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Re: Biggest expenses in life
So far my house and daycare tuition.
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Re: Biggest expenses in life
There are lots of one time, two time, few time expenses (Like cars, weddings, roofs, etc.). But I feel like, aside from raising children, the three biggest costs over my adult life are in descending order of magnitude:
1) Taxes
2) Interest
3) Insurance
1) Taxes
2) Interest
3) Insurance
An important key to investing is having a well-calibrated sense of your future regret.
Re: Biggest expenses in life
I've paid significant "stupid tax" as Dave Ramsey would call it!WarAdmiral wrote: ↑Wed Apr 14, 2021 7:05 pm What are some of the biggest expenses you have had in your life ?
a) That in retrospect, you wish you hadn't made and rather invested some portion of that amount.
b) They were worth it.
Some big ones at least in my life so far are..
1. Wedding.. could have gone smaller and saved $$
2. House..worth it
3. Day Care...very expensive but totally worth it.
Re: Biggest expenses in life
No doubt. By far taxes is the biggest expense.
OP: do we get to amortize expenses over useful life? House purchase seems big, but if I amortize it over the projected useful life, it's not bad. For example: $150k over 20 years is $7.5k per year. We spend more on traveling on per year basis.
Time is the ultimate currency.
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Re: Biggest expenses in life
When I was young my biggest expense was my car - a used Porsche and maintenance. Totally not worth it.
Now my biggest expenses are house, child care/school, vacations, and food. So far they seem worth it but who knows what I'll think in the future about my past
Now my biggest expenses are house, child care/school, vacations, and food. So far they seem worth it but who knows what I'll think in the future about my past
- Sandtrap
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Re: Biggest expenses in life
A
Real estate
B
Real estate
j
Real estate
B
Real estate
j
Re: Biggest expenses in life
Regret: Homeownership. If I could do it over again, we would be life-long renters.
No regret: Retiring (earlier than planned) after a job loss in order to travel.
No regret: Retiring (earlier than planned) after a job loss in order to travel.
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Re: Biggest expenses in life
This has thrown in some interesting ones..
Taxes - yes - year over year - but you can't do much about it except stop making money
Insurance - another one that adds up, year over year.
Yes, a house appropriately sized, amortized over longer period of time softens the blow..
Honorable Mention:
Pizza and Chinese food ...
Taxes - yes - year over year - but you can't do much about it except stop making money
Insurance - another one that adds up, year over year.
Yes, a house appropriately sized, amortized over longer period of time softens the blow..
Honorable Mention:
Pizza and Chinese food ...
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Re: Biggest expenses in life
Spent a very large amount, for me, to take family on safari. Worth it, would do it again. Spent excessive and perhaps not financially prudent amount on major house renovation, and very glad to have completed it before pandemic. Totally worth it especially since the past year has required so much time at home. Paying for kids education, worth it to be able to remove the burden of school debt from them.
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Re: Biggest expenses in life
Maybe I'm an outlier but for me BY FAR the biggest expense has been income taxes.
While I was working, fully 35% of my income went to work-related taxes of one type or another, federal/state/local income taxes, payroll taxes, etc.
Every other expense was much less than that.
While I was working, fully 35% of my income went to work-related taxes of one type or another, federal/state/local income taxes, payroll taxes, etc.
Every other expense was much less than that.
Re: Biggest expenses in life
Taxes, of course, but they are inevitable.
Divorce (surprised no one had mentioned that yet). Very painful financially and in every other way. Avoid if you can.
Divorce (surprised no one had mentioned that yet). Very painful financially and in every other way. Avoid if you can.
Re: Biggest expenses in life
Taxes - mandatory (limited ability to alter )
Housing - mandatory (but lifestyle/quality of life choices made a d still make this worth the “added expense” above and behind bare minimum)
Child education - mandatory (but upgrading to independent school in place of public school was shown to be very much worth the added expense during the last two years with pandemic era restrictions)
Food/dining / leisure/ vacation are by FAR are biggest discretionary spend that I could see being trimmed without issue. Basic sustenance is mandatory but all the rest above and beyond. I’ll say that perhaps 5% -10% of our dining out experiences are less than ideal and thus could be termed regrettable. I could then say that 90% of our experiences were positive and thus contributed to a enjoyment and a good use of time and resources.
Housing - mandatory (but lifestyle/quality of life choices made a d still make this worth the “added expense” above and behind bare minimum)
Child education - mandatory (but upgrading to independent school in place of public school was shown to be very much worth the added expense during the last two years with pandemic era restrictions)
Food/dining / leisure/ vacation are by FAR are biggest discretionary spend that I could see being trimmed without issue. Basic sustenance is mandatory but all the rest above and beyond. I’ll say that perhaps 5% -10% of our dining out experiences are less than ideal and thus could be termed regrettable. I could then say that 90% of our experiences were positive and thus contributed to a enjoyment and a good use of time and resources.
- MikeWillRetire
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Re: Biggest expenses in life
Daycare. I remember that my daycare costs were more than my mortgage. But it was worth it.
Private elementary school. I believe it was worth it.
Now with two grown children, I really do feel rich.
Private elementary school. I believe it was worth it.
Now with two grown children, I really do feel rich.
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Re: Biggest expenses in life
Retirement Savings: 401k/IRAs/HSA/MegaBackDoor/Brokerage/Emergency— savings Top over 30% for us — with no immediate benefit.
Yet to see/experience kids future college expenses — I am sure those will be less than other two buckets— but this could overtake for the 4-8 years of kids college going years ..
With Taxes - at least we enjoy some immediate benefits- such as decent roads, infra, police/fire, good Schools and such. With FICA taxes - future benefits such as SS, and Medicare..
Charitable giving - not near top buckets- but a big ticket item ..
Yet to see/experience kids future college expenses — I am sure those will be less than other two buckets— but this could overtake for the 4-8 years of kids college going years ..
With Taxes - at least we enjoy some immediate benefits- such as decent roads, infra, police/fire, good Schools and such. With FICA taxes - future benefits such as SS, and Medicare..
Charitable giving - not near top buckets- but a big ticket item ..
Last edited by sc9182 on Thu Apr 15, 2021 8:40 am, edited 1 time in total.
- TomatoTomahto
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Re: Biggest expenses in life
1. Taxes - some are worth it, some are wasted (NJ, I’m looking at you)
11. Home and renovation - worth it
12. Education - worth it, actually a money maker
13. Travel - worth it
11. Home and renovation - worth it
12. Education - worth it, actually a money maker
13. Travel - worth it
I get the FI part but not the RE part of FIRE.
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Re: Biggest expenses in life
Taxes are a huge expense, but to a large extent are unavoidable.
We made the decision after our 2nd child for my wife to be a stay at home mom. Admittedly, this is a revenue decision but we have no regrets and it made a difference for our kids. It was right for us. Our daughter made the same decision for her family and we are very proud of her for doing so.
Children's education can be a huge expense, especially today. We were fortunate that college expenses 25 years ago were a lot more reasonable than today.
We made the decision after our 2nd child for my wife to be a stay at home mom. Admittedly, this is a revenue decision but we have no regrets and it made a difference for our kids. It was right for us. Our daughter made the same decision for her family and we are very proud of her for doing so.
Children's education can be a huge expense, especially today. We were fortunate that college expenses 25 years ago were a lot more reasonable than today.
Re: Biggest expenses in life
Travel.
We did not spend much compared to what many other people here spend and some of our other expenses categories have been more but we have spent a significant amount on travel and I do not regret that.
I am really glad that we did that when we could because;
1) Before the pandemic over tourism was starting to overwhelm many of the popular tourist destinations and it seemed to be getting worse every year. Some cities like Barcelona or Venice were getting to the breaking point.
2) I think that it will likely be years before travel to a lot of international destinations is realistically possible again. By then we will probably be in our 70s and more limited in what we can do.
3) Even in the US many tourist destinations are overwhelmed and I think that will get worse.
We did not spend much compared to what many other people here spend and some of our other expenses categories have been more but we have spent a significant amount on travel and I do not regret that.
I am really glad that we did that when we could because;
1) Before the pandemic over tourism was starting to overwhelm many of the popular tourist destinations and it seemed to be getting worse every year. Some cities like Barcelona or Venice were getting to the breaking point.
2) I think that it will likely be years before travel to a lot of international destinations is realistically possible again. By then we will probably be in our 70s and more limited in what we can do.
3) Even in the US many tourist destinations are overwhelmed and I think that will get worse.
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Re: Biggest expenses in life
Divorce, by far. Sets retirement back some years.
Worth it, but wish I had the insight to get a pre-nup.
Worth it, but wish I had the insight to get a pre-nup.
Re: Biggest expenses in life
surprised the RMD bandwagon hasn’t chimed-in yet ; May be busy catching early Brunch/Supper specials
Or how ‘bout’em - who with high investment expenses (AUM fees and other direct/indirect fees could get pretty large especially on large AUMs)
Or how ‘bout’em - who with high investment expenses (AUM fees and other direct/indirect fees could get pretty large especially on large AUMs)
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Re: Biggest expenses in life
1. Student Loans
2. Cars
Take the most egregious of those out and I'm living a totally different life.
2. Cars
Take the most egregious of those out and I'm living a totally different life.
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Re: Biggest expenses in life
Taxes of various types (income, property, sales, etc).
By far.
I won't comment on whether or not it is worth it, since political discussions are not allowed.
EDIT: I should add that I am glad I paid them, otherwise I'd be in prison and would not be able to post on this message board!
By far.
I won't comment on whether or not it is worth it, since political discussions are not allowed.
EDIT: I should add that I am glad I paid them, otherwise I'd be in prison and would not be able to post on this message board!
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Re: Biggest expenses in life
In order of expense:
1) Taxes
2) Children's College
3) House
4) Vehicles
5) Vacations
2-5 worth it...
1) Taxes
2) Children's College
3) House
4) Vehicles
5) Vacations
2-5 worth it...
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." - Benjamin Franklin
Re: Biggest expenses in life
House
Cars
College for oldest daughter starting in the Fall. Daughters are all 4 years apart so basically non-stop college for next 12 years
I'll be a dried-out husk by the time this is all over
Cars
College for oldest daughter starting in the Fall. Daughters are all 4 years apart so basically non-stop college for next 12 years
I'll be a dried-out husk by the time this is all over
Re: Biggest expenses in life
In order:
1) Taxes
2) Housing
3) Our educations
4) Kids (ours are still young though - one 3YO and one presently in utero - so I expect they will eventually move into third place)
5) Home renovations
6) Travel
Other than taxes, all worth it.
1) Taxes
2) Housing
3) Our educations
4) Kids (ours are still young though - one 3YO and one presently in utero - so I expect they will eventually move into third place)
5) Home renovations
6) Travel
Other than taxes, all worth it.
Re: Biggest expenses in life
My brother and I came into a medium-size inheritance in 1991. He put all of his portion into purchasing his house. I divided mine between investments and buying a one-bedroom condo unit. Best financial decision I ever made. His house is now worth $3 million but it's all tied up in the house. To realize that gain he would either have to take a loan and be on the hook again with payments, or do a reverse mortgage, or sell the house and live elsewhere.
I don't face that dilemma and have liquid assets.
I don't face that dilemma and have liquid assets.
Financial decisions based on emotion often turn out to be bad decisions.
Re: Biggest expenses in life
You guys forgot KFC.sailaway wrote: ↑Wed Apr 14, 2021 7:33 pmBetween the pizza, the chinese delivery and the fast food, this is probably my one regret, but that has more to do with the diabetes than the money (my diabetes is currently lifestyle controlled, so not an additional money drag).BalancedJCB19 wrote: ↑Wed Apr 14, 2021 7:28 pm It depends on who you are asking, but in my case it is Pizza
https://twitter.com/Annakhait/status/12 ... 5520593920
Re: Biggest expenses in life
1. Spent $80k for undergrad and another $29k for grad school (company paid the other $21k of it). I probably could've done undergrad for a lot cheaper but I'm still in the same career that I majored in so I consider that a win? Grad school is still up in the air as I'm only 3 years out so not 100% sure how that ROI is gonna play out. Overall, I would say the expense was worth it as it has allowed my net worth to grow substantially while my mental/physical health is still intact in regards to my job affecting it.
2. Paid $365k (3.5% down payment) for a house in SE Portland which we're currently renting out the top unit and living in the bottom unit. This was been extremely worth it in the short term and I think will pay for itself handsomely in the long term. Only 1.5 year into home ownership but things are looking good.
2. Paid $365k (3.5% down payment) for a house in SE Portland which we're currently renting out the top unit and living in the bottom unit. This was been extremely worth it in the short term and I think will pay for itself handsomely in the long term. Only 1.5 year into home ownership but things are looking good.