What (if anything) are you reducing in your monthly spending?
- jabberwockOG
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Re: What (if anything) are you reducing in your monthly spending?
We still buy what we want without paying too much attention to prices. We are lucky to have always lived relatively frugally, and well below our means so we have quite a bit of buffer in the budget. We have cut back on longer trips because the rental cost of nicer condos and hotels has gone crazy. Nicer condos at the beach in peak season that used to be 3-350/night 2 years ago are now 500-600/night.
Hoping the higher gas prices actually produce less traffic and put a lot more smaller hybrid and EV vehicles on the road. Unless you have a huge family, if you drive around in a 5,800 lb Suburban by yourself, or with one other person (like most in my area driving giant trucks and SUVs), and complain about high gas prices due to supply/demand issues, I have zero sympathy for you.
Hoping the higher gas prices actually produce less traffic and put a lot more smaller hybrid and EV vehicles on the road. Unless you have a huge family, if you drive around in a 5,800 lb Suburban by yourself, or with one other person (like most in my area driving giant trucks and SUVs), and complain about high gas prices due to supply/demand issues, I have zero sympathy for you.
- Doom&Gloom
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Re: What (if anything) are you reducing in your monthly spending?
Nothing, so far.
This is what cushions are for. And what moderate lifestyles are built upon!
This is what cushions are for. And what moderate lifestyles are built upon!
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Re: What (if anything) are you reducing in your monthly spending?
I bought three brand new vehicles over the last week. If prices are going up from here, it makes sense to get your hands on things that will last for many years to come.
Also, there’s a chance for arbitrage because used cars are inflated in value and many dealers are offering solid discounts on brand new cars.
Also, there’s a chance for arbitrage because used cars are inflated in value and many dealers are offering solid discounts on brand new cars.
Being wrong compounds forever.
Re: What (if anything) are you reducing in your monthly spending?
Food. When I got one not-full bag of groceries and it rang up at $100.19, I decided it was time to get radical. I bought a quantity of protein shakes and have them twice a day, then a dinner with substantial fruit/vegetable fiber included. I was really eating too much before, and preferentially eating "the good stuff" and buying more food before everything in the fridge was eaten. The protein shakes cost about $1.98 each. Bonus is weight loss at last.
The present inflation is painful and may get worse but I am operating on the belief that mid- to late fall there will be a reversal and deflation is likely.
I don't have confidence that the powers that be understand what is happening, or have any will to look for the answer. I expect food shortages. I am spending a certain amount on shelf-stable food, too bad I didn't stock up on my preferred coffee, it's been missing from stores for two weeks. The price on the case of canned meat I bought recently had gone up $20 since my order last month and there is now added on a $10 delivery fee. It would have been smart to buy two cases last month.
The present inflation is painful and may get worse but I am operating on the belief that mid- to late fall there will be a reversal and deflation is likely.
I don't have confidence that the powers that be understand what is happening, or have any will to look for the answer. I expect food shortages. I am spending a certain amount on shelf-stable food, too bad I didn't stock up on my preferred coffee, it's been missing from stores for two weeks. The price on the case of canned meat I bought recently had gone up $20 since my order last month and there is now added on a $10 delivery fee. It would have been smart to buy two cases last month.
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Re: What (if anything) are you reducing in your monthly spending?
There’s a story behind each of these but the main theme is that high inflation got me looking closer at expenses. I bought the Peloton at the height of the pandemic. It kept me sane and in shape for over a year. Now I’m out doing other things like playing Pickleball. It no longer makes sense for me to pay $560 a year for the membership. I still ride and the bike is usable without any monthly fee.H-Town wrote: ↑Tue May 17, 2022 5:45 pmI wonder if you hadn't bought Peloton, would you be able to use that fund on the other 8 items on your list?retired-early wrote: ↑Tue May 17, 2022 4:02 pm 1. Canceled Netflix.
2. Canceled Peloton.
3. Shopped around my auto and home insurance and saved $210 year.
4. Less Roth conversions to keep taxes and IRMAA lower.
5. Eat out 2x a week vs 3x.
6. Shop grocery store sales and Trader Joe.
7. Live like a minimalist. Stopped buying stuff.
8. Sold off a bunch of things I no longer use.
9. Once a month massage vs every 2 weeks.
Re: What (if anything) are you reducing in your monthly spending?
Not a thing. Actually spending a good bit more on travel this year.
Re: What (if anything) are you reducing in your monthly spending?
Not cutting back on any one category in particular. I'm just saying no to more things across the board.
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Re: What (if anything) are you reducing in your monthly spending?
Gas and groceries are up some but not enough to change our general use so far. There is not a lot to cut at this level. Maybe later if there is more need.
Re: What (if anything) are you reducing in your monthly spending?
Stop buying wine and beer.
Upgraded on good Tequila.
Upgraded on good Tequila.
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Re: What (if anything) are you reducing in your monthly spending?
Congratulations! You are doing your part to fight inflation by reducing unnecessary consumption.We curtailed our dining out, certain superfluous grocery items, car pool when possible, and reduced our Roth IRA contributions temporarily until prices stabilize.
Oops! It seems you have been cancelled out.The opposite. I am buying more as I expect prices to continue rising, but my income is not.
Re: What (if anything) are you reducing in your monthly spending?
Nothing!
We are retired and fortunate to have our spend rate about 1.5% of our retirement investments, at current valuations.
We've always conserved. I do the routine car/house maintenance and our taxes. Last month's front brakes on my 97 Honda cost just $45. The bill from my Dad's Tax Dude was $1000, mine was $51.
We are retired and fortunate to have our spend rate about 1.5% of our retirement investments, at current valuations.
We've always conserved. I do the routine car/house maintenance and our taxes. Last month's front brakes on my 97 Honda cost just $45. The bill from my Dad's Tax Dude was $1000, mine was $51.
Re: What (if anything) are you reducing in your monthly spending?
I found that not buying a Caffe Latte 5x/week saves me $1,000/year.
Strategic Macro Senior (top 1%, 2019 Bogleheads Contest)
Re: What (if anything) are you reducing in your monthly spending?
I've been taking a list estimated at <$100 to the grocery store and sticking to it for food and sundries. Aiming for once a week. Two kinds of fresh fruit and veggies each trip. Limiting bulk (~$10) items to two per trip. The once a week part has been the hard bit, but we made it this time (and could go longer if it wasn't for the milk), so I think I'm finally getting the rhythm down now.
"The only thing that makes life possible is permanent, intolerable uncertainty; not knowing what comes next." ~Ursula LeGuin
Re: What (if anything) are you reducing in your monthly spending?
We have big plans to cut spending, but so far, just running disposable plastic drink cups through the dishwasher (no, they don’t “melt,” as S had feared) and reusing them; before, we just tossed them after single use. Not an impressive cost-saving regimen; but, if you add up five or six other things like that, you start to realize significant savings. That’s the direction we’re headed.A440 wrote: ↑Tue May 17, 2022 11:16 am Prices of everything are rising much faster than income. Our monthly budget no longer balances and we have made some cuts.
Are you cutting back on any monthly spending? Do you care to share what discretionary item(s) are being cut?
We curtailed our dining out, certain superfluous grocery items, car pool when possible, and reduced our Roth IRA contributions temporarily until prices stabilize.
One or two projected trips and/or mini vacations have been canceled, superficially for other reasons, but we were relieved for budgetary reasons to have been spared the cost.
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Re: What (if anything) are you reducing in your monthly spending?
Food
- Drastically cut down on eating out. Learned to cook from YouTube. E.g. I can now make steaks as good as the high-end steakhouses.
- Make my own lattes everyday.
- No bottled water. I drink water from my fridge filter.
- Walmart Neighborhood Market instead of Publix. Store brand where available.
Household
- No cable, landline phone or streaming. Just Xfinity cable internet $30/mo for 60 Mbps and Xfinity Mobile $18/mo total for 4 lines.
- Insurance. Increased deductible and reduced dwelling coverage a bit to save $365.
- No cleaning service. DIY instead.
- Learned to DIY most maintenance and repairs.
- My electricity rates went up 20% this year. So I'm trying to cut usage:
- Increase A/C temp and use fans.
- Reduce hot water usage. Short showers. No baths. I don't use hot water at the basin to wash my hands, brush teeth, etc. Wash dishes in cold water, and avoid using dishwasher. Wash clothes in cold water.
- Air dry towels on the towel rack, and bed sheets to reduce load on dryer.
- I don't leave my TV on since it's mostly ads and I now just watch only the news clips that I'm interested in on YouTube. I measured it with a Kill-A-Watt meter at 133 W for a 50" 4K HDTV.
- I used to leave some porch and garage lantern lights on overnight but not anymore.
Cars
- Drastically cut down on driving since I work from home.
- Insurance. Dropped comprehensive, collision and uninsured motorist liability. Shop around at every renewal. Currently with Progressive and did their Snapshot monitoring program and got a $73/6 mo discount.
- Cars are from 2012 so one was paid off a long time ago and the other I bought used and paid cash for. I DIY most maintenance and they are in great shape so I have no urge to purchase a new car.
- Drastically cut down on eating out. Learned to cook from YouTube. E.g. I can now make steaks as good as the high-end steakhouses.
- Make my own lattes everyday.
- No bottled water. I drink water from my fridge filter.
- Walmart Neighborhood Market instead of Publix. Store brand where available.
Household
- No cable, landline phone or streaming. Just Xfinity cable internet $30/mo for 60 Mbps and Xfinity Mobile $18/mo total for 4 lines.
- Insurance. Increased deductible and reduced dwelling coverage a bit to save $365.
- No cleaning service. DIY instead.
- Learned to DIY most maintenance and repairs.
- My electricity rates went up 20% this year. So I'm trying to cut usage:
- Increase A/C temp and use fans.
- Reduce hot water usage. Short showers. No baths. I don't use hot water at the basin to wash my hands, brush teeth, etc. Wash dishes in cold water, and avoid using dishwasher. Wash clothes in cold water.
- Air dry towels on the towel rack, and bed sheets to reduce load on dryer.
- I don't leave my TV on since it's mostly ads and I now just watch only the news clips that I'm interested in on YouTube. I measured it with a Kill-A-Watt meter at 133 W for a 50" 4K HDTV.
- I used to leave some porch and garage lantern lights on overnight but not anymore.
Cars
- Drastically cut down on driving since I work from home.
- Insurance. Dropped comprehensive, collision and uninsured motorist liability. Shop around at every renewal. Currently with Progressive and did their Snapshot monitoring program and got a $73/6 mo discount.
- Cars are from 2012 so one was paid off a long time ago and the other I bought used and paid cash for. I DIY most maintenance and they are in great shape so I have no urge to purchase a new car.
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Re: What (if anything) are you reducing in your monthly spending?
Not exactly a reduction, but I use Google Maps' most fuel efficient route for driving when possible/feasible.
Other than that, no change. I don't really keep a budget anyway.
Other than that, no change. I don't really keep a budget anyway.
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Re: What (if anything) are you reducing in your monthly spending?
I am curios what is your yearly budget?stoptothink wrote: ↑Tue May 17, 2022 12:06 pmIn the same boat. Our budget is bare bones, almost unbelievable to most here. I guess we could cut out our gym memberships, but otherwise our discretionary spending is almost non-existent.runner3081 wrote: ↑Tue May 17, 2022 12:02 pm Nope, not cutting back. We are frugal and also minimalists. We have seen the cost increases hit us (mostly in food and household items), but there isn't really anything to cut back.
- Sandtrap
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- Location: Hawaii No Ka Oi - white sandy beaches, N. Arizona 1 mile high.
Re: What (if anything) are you reducing in your monthly spending?
For some folks:A440 wrote: ↑Tue May 17, 2022 11:16 am Prices of everything are rising much faster than income. Our monthly budget no longer balances and we have made some cuts.
Are you cutting back on any monthly spending? Do you care to share what discretionary item(s) are being cut?
We curtailed our dining out, certain superfluous grocery items, car pool when possible, and reduced our Roth IRA contributions temporarily until prices stabilize.
1. There was a time when 20 bucks was enough to go out on a "date" (remember those), fill up the gas tank, dinner for 2, movie for 2, late night snacks./drinks, for 2, and maybe 2 packs of cigarettes.
2. There was a time when 100 bucks was enough for the above.
Now:
Basic groceries and essentials at Costco: 100 bucks
Basic groceries at the store: 100 bucks.
Top off the tank of a Honda normal gas car: 100 bucks
etc.
Our example:
Our retired life is pretty simple and frugal so there's no feeling of "cutting back". (we don't have a "budget")
(don't spend on Rolex's, Porche's, Porches, or 6000 dollar golf clubs (heard someone did that, nuts).
But, very large 100k+ spendies on upgrading the property, etc, are all put on hold.
On a larger broader context:
Regardless of domestic and global economic fluctuations and movements, there's always huge dollars to be made by many folks and entities.
Thus: "ignore the noise" as packaged and presented for consumption and absorption.
j
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Re: What (if anything) are you reducing in your monthly spending?
I turn off my heater completely when nights are above 40 and days are above 60. No plans to ever get AC (hottest summer day here is low 90s). These are both significant savings.
I also recently cut my car insurance bill in half by reducing the coverage to the minimum. Never had an accident and the commute is on gentle suburban streets so I'm happy to take that bet. Most likely I'd drop the insurance entirely if I were legally allowed to.
Been building a 120 square foot shed, cost of materials is going to come out around $5000. No labor costs besides sore muscles.
I also recently cut my car insurance bill in half by reducing the coverage to the minimum. Never had an accident and the commute is on gentle suburban streets so I'm happy to take that bet. Most likely I'd drop the insurance entirely if I were legally allowed to.
Been building a 120 square foot shed, cost of materials is going to come out around $5000. No labor costs besides sore muscles.
Last edited by homebuyer6426 on Wed May 18, 2022 9:52 am, edited 2 times in total.
45% Total Stock Market | 52% Consumer Staples | 3% Short Term Reserves
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Re: What (if anything) are you reducing in your monthly spending?
I finally convinced my wife to sell her plane. She hasn't flown it much in the past several years so I've been flying it just to keep engine corrosion at bay. That will save us $280/month in hangar rent and several thousand a year in normal maintenance, but more importantly avoid the inevitable big ticket expense like new cylinders or an engine rebuild. The downside is that all the stuff we store in her hangar will need to move to mine which is already pretty crowded.
Re: What (if anything) are you reducing in your monthly spending?
We must be subconsciously driving less, because the monthly gas spending hasn’t changed much.
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Re: What (if anything) are you reducing in your monthly spending?
For a family of 4 in MCOL area, total household expenditures were $28k last year and that included spending $4500 on e-bikes. Keep in mind, we have a paid off home and cars (which are driven little because I WFH and wife is hybrid). The previous handful of years - when we had a mortgage, 1-2 children in childcare, and wife full-time in school - I don't believe we ever exceeded $45k in spend in a single year.iamblessed wrote: ↑Wed May 18, 2022 9:27 amI am curios what is your yearly budget?stoptothink wrote: ↑Tue May 17, 2022 12:06 pmIn the same boat. Our budget is bare bones, almost unbelievable to most here. I guess we could cut out our gym memberships, but otherwise our discretionary spending is almost non-existent.runner3081 wrote: ↑Tue May 17, 2022 12:02 pm Nope, not cutting back. We are frugal and also minimalists. We have seen the cost increases hit us (mostly in food and household items), but there isn't really anything to cut back.
We did buy a truck this year (in cash) so the number will be way up due to that large one-time expense, but I doubt we'll need another car for a decade.
Re: What (if anything) are you reducing in your monthly spending?
Nothing. My wife actually got an 12% raise. And we haven't been hit hard from inflation because we have a super short commute. Only groceries are costing us more but that's a small percentage of our overall budget.
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Re: What (if anything) are you reducing in your monthly spending?
Cancelled Peloton. Realized that I don't need the subscription to do the "Just Ride" feature and also realized I really didn't pay much attention (after 1,000 rides) to the instructors anyway. Currently use the bike with my tablet attached and ride while watching YouTube videos. Saves me $45 per month.
Also looking into cancelling Netflix... Now that Ozark is over I don't see much need until they develop any worthwhile content.
Also looking into cancelling Netflix... Now that Ozark is over I don't see much need until they develop any worthwhile content.
Re: What (if anything) are you reducing in your monthly spending?
We cut back on some of our discretionary expenses. Honestly, I’m not sure exactly where, but we are spending less every month than we expected. I used to keep a very detailed budget, but about a year ago I figured it was a waste of time and now just track monthly spending. We allow $x per quarter and the goal is to stay below it. So far so good. Surprisingly, the last quarter we have been below budget by more than previous quarters.
I think we maybe are traveling a bit less frequently. We tend to travel quite a bit and cutting back 1-2 trips a year or doing a few less expensive trips can be a big difference in a yearly budget at todays prices. As I always suspected that when times are rough, or live below your means mentality will automatically cut back without even noticing.
I think we maybe are traveling a bit less frequently. We tend to travel quite a bit and cutting back 1-2 trips a year or doing a few less expensive trips can be a big difference in a yearly budget at todays prices. As I always suspected that when times are rough, or live below your means mentality will automatically cut back without even noticing.
A time to EVALUATE your jitters: |
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Re: What (if anything) are you reducing in your monthly spending?
Am starting to think about it. I’ve noticed our weekly Instacart has grown from $150 to $200. Our gas bill was almost double the normal bill this time of year.
Unfortunately this year we committed to a vacation this summer and a kitchen reno. If I had a crystal ball, I likely would not have done either.
I’m a worrier at heart. I think we are fine. But the economic uncertainty makes me feel like we should be doing something and we might limit driving, adjust food shopping, cut down on some kids activities etc.
Every year I spend a few hundreds on annuals and plant them in our front yard. It’s a lot of hard work but I am always happy with the results. This year I am questioning whether or not it it is worth the expense.
Unfortunately this year we committed to a vacation this summer and a kitchen reno. If I had a crystal ball, I likely would not have done either.
I’m a worrier at heart. I think we are fine. But the economic uncertainty makes me feel like we should be doing something and we might limit driving, adjust food shopping, cut down on some kids activities etc.
Every year I spend a few hundreds on annuals and plant them in our front yard. It’s a lot of hard work but I am always happy with the results. This year I am questioning whether or not it it is worth the expense.
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Re: What (if anything) are you reducing in your monthly spending?
Very good we spent 19k last year for a family of two.stoptothink wrote: ↑Wed May 18, 2022 10:59 amFor a family of 4 in MCOL area, total household expenditures were $28k last year and that included spending $4500 on e-bikes. Keep in mind, we have a paid off home and cars (which are driven little because I WFH and wife is hybrid). The previous handful of years - when we had a mortgage, 1-2 children in childcare, and wife full-time in school - I don't believe we ever exceeded $45k in spend in a single year.iamblessed wrote: ↑Wed May 18, 2022 9:27 amI am curios what is your yearly budget?stoptothink wrote: ↑Tue May 17, 2022 12:06 pmIn the same boat. Our budget is bare bones, almost unbelievable to most here. I guess we could cut out our gym memberships, but otherwise our discretionary spending is almost non-existent.runner3081 wrote: ↑Tue May 17, 2022 12:02 pm Nope, not cutting back. We are frugal and also minimalists. We have seen the cost increases hit us (mostly in food and household items), but there isn't really anything to cut back.
We did buy a truck this year (in cash) so the number will be way up due to that large one-time expense, but I doubt we'll need another car for a decade.
Re: What (if anything) are you reducing in your monthly spending?
Just retired this year. had some house repairs, bought a new vehicle, doing some bucket list trips.. so actually spending more than ever. we promised ourselves we would get this in check in 2023.
DW is a coupon queen and her main hobby is saving money... She drives grocery costs low like there's no tomorrow. She's raised hundreds of $ scanning receipts over the last couple years. She's getting 25 cents to $1.50 per receipt scanning it in 5 seconds on the fetch app
We finally got a costco membership and are stocking up on some bulk things to avoid future cost increases.
We discuss the dinner menu weekly to maximize what is in the stocked freezer and manage down what little we have to purchase.
if there's a sale, we stock up or buy to the sale. We had lobsters last weekend as lobsters went on sale for $9.99/lb. They had been running $16.99/lb (we are near the ocean in the north east) We cooked them at home.
None of this is new... it's how we always lived.
I am driving less or thinking about my efficiency of trips more... riding my motorcycle more for errands or to visit mom and dad (130 mile round trip) now that it's warm. 45MPG with the bike beats 23MPG with the car. I enjoy the bike, but now I do it as much for the savings.
DW is a coupon queen and her main hobby is saving money... She drives grocery costs low like there's no tomorrow. She's raised hundreds of $ scanning receipts over the last couple years. She's getting 25 cents to $1.50 per receipt scanning it in 5 seconds on the fetch app
We finally got a costco membership and are stocking up on some bulk things to avoid future cost increases.
We discuss the dinner menu weekly to maximize what is in the stocked freezer and manage down what little we have to purchase.
if there's a sale, we stock up or buy to the sale. We had lobsters last weekend as lobsters went on sale for $9.99/lb. They had been running $16.99/lb (we are near the ocean in the north east) We cooked them at home.
None of this is new... it's how we always lived.
I am driving less or thinking about my efficiency of trips more... riding my motorcycle more for errands or to visit mom and dad (130 mile round trip) now that it's warm. 45MPG with the bike beats 23MPG with the car. I enjoy the bike, but now I do it as much for the savings.
Re: What (if anything) are you reducing in your monthly spending?
Several years ago my DW and I cut our budget to the bone to boost savings and investing.
More recently we've been working on improving our fitness and getting rid of all the Covid lock down weight gain.
We've cut way back on eating meat, drinking alcohol and eating junk food, and going out to restaurants. We've been fortunate enough that we both work from home and can go several days in a row without driving. Now that the weather is warmer it makes riding a bike in place of driving easier for getting around.
More recently we've been working on improving our fitness and getting rid of all the Covid lock down weight gain.
We've cut way back on eating meat, drinking alcohol and eating junk food, and going out to restaurants. We've been fortunate enough that we both work from home and can go several days in a row without driving. Now that the weather is warmer it makes riding a bike in place of driving easier for getting around.
Re: What (if anything) are you reducing in your monthly spending?
What do you include in the $28K, other than the e-bikes?stoptothink wrote: ↑Wed May 18, 2022 10:59 amFor a family of 4 in MCOL area, total household expenditures were $28k last year and that included spending $4500 on e-bikes. Keep in mind, we have a paid off home and cars (which are driven little because I WFH and wife is hybrid). The previous handful of years - when we had a mortgage, 1-2 children in childcare, and wife full-time in school - I don't believe we ever exceeded $45k in spend in a single year.iamblessed wrote: ↑Wed May 18, 2022 9:27 amI am curios what is your yearly budget?stoptothink wrote: ↑Tue May 17, 2022 12:06 pmIn the same boat. Our budget is bare bones, almost unbelievable to most here. I guess we could cut out our gym memberships, but otherwise our discretionary spending is almost non-existent.runner3081 wrote: ↑Tue May 17, 2022 12:02 pm Nope, not cutting back. We are frugal and also minimalists. We have seen the cost increases hit us (mostly in food and household items), but there isn't really anything to cut back.
We did buy a truck this year (in cash) so the number will be way up due to that large one-time expense, but I doubt we'll need another car for a decade.
I always included our portion of health insurance premiums and payroll taxes (when working), plus income taxes, in our expenses.
I even think there’s an argument to be made that you should amortize the initial cost of a home and vehicles over an appropriate time period (like 30 & 10 years) and include them as expenses, even if you paid cash for them. But I can’t say that I ever actually did that.
My point is that one all-inclusive (or not) number can be misleading for comparison purposes.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
Re: What (if anything) are you reducing in your monthly spending?
We aren't really doing anything to cut back.
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Re: What (if anything) are you reducing in your monthly spending?
Essentially everything, but we are not including income and payroll taxes (and I doubt most people are when estimating household expenses). So this is all insurance (including health and dental), housing costs (property taxes, HOA, utilities), all auto costs, all food costs - everything. It's really easy to tabulate because there are only two thing that don't go on a CC (health and dental premiums, and gas and electricity bills) and that is <$1500/yr combined for us (we have FANTASTIC work benefits). Yes, I agree that individual numbers can be misleading, but our level of spend (no matter when or how it is calculated) is very low.delamer wrote: ↑Fri May 20, 2022 8:23 amWhat do you include in the $28K, other than the e-bikes?stoptothink wrote: ↑Wed May 18, 2022 10:59 amFor a family of 4 in MCOL area, total household expenditures were $28k last year and that included spending $4500 on e-bikes. Keep in mind, we have a paid off home and cars (which are driven little because I WFH and wife is hybrid). The previous handful of years - when we had a mortgage, 1-2 children in childcare, and wife full-time in school - I don't believe we ever exceeded $45k in spend in a single year.iamblessed wrote: ↑Wed May 18, 2022 9:27 amI am curios what is your yearly budget?stoptothink wrote: ↑Tue May 17, 2022 12:06 pmIn the same boat. Our budget is bare bones, almost unbelievable to most here. I guess we could cut out our gym memberships, but otherwise our discretionary spending is almost non-existent.runner3081 wrote: ↑Tue May 17, 2022 12:02 pm Nope, not cutting back. We are frugal and also minimalists. We have seen the cost increases hit us (mostly in food and household items), but there isn't really anything to cut back.
We did buy a truck this year (in cash) so the number will be way up due to that large one-time expense, but I doubt we'll need another car for a decade.
I always included our portion of health insurance premiums and payroll taxes (when working), plus income taxes, in our expenses.
I even think there’s an argument to be made that you should amortize the initial cost of a home and vehicles over an appropriate time period (like 30 & 10 years) and include them as expenses, even if you paid cash for them. But I can’t say that I ever actually did that.
My point is that one all-inclusive (or not) number can be misleading for comparison purposes.
Re: What (if anything) are you reducing in your monthly spending?
Thanks.stoptothink wrote: ↑Fri May 20, 2022 10:07 amEssentially everything, but we are not including income and payroll taxes (and I doubt most people are when estimating household expenses). So this is all insurance (including health and dental), housing costs (property taxes, HOA, utilities), all auto costs, all food costs - everything. It's really easy to tabulate because there are only two thing that don't go on a CC (health and dental premiums, and gas and electricity bills) and that is <$1500/yr combined for us (we have FANTASTIC work benefits). Yes, I agree that individual numbers can be misleading, but our level of spend (no matter when or how it is calculated) is very low.delamer wrote: ↑Fri May 20, 2022 8:23 amWhat do you include in the $28K, other than the e-bikes?stoptothink wrote: ↑Wed May 18, 2022 10:59 amFor a family of 4 in MCOL area, total household expenditures were $28k last year and that included spending $4500 on e-bikes. Keep in mind, we have a paid off home and cars (which are driven little because I WFH and wife is hybrid). The previous handful of years - when we had a mortgage, 1-2 children in childcare, and wife full-time in school - I don't believe we ever exceeded $45k in spend in a single year.iamblessed wrote: ↑Wed May 18, 2022 9:27 amI am curios what is your yearly budget?stoptothink wrote: ↑Tue May 17, 2022 12:06 pm
In the same boat. Our budget is bare bones, almost unbelievable to most here. I guess we could cut out our gym memberships, but otherwise our discretionary spending is almost non-existent.
We did buy a truck this year (in cash) so the number will be way up due to that large one-time expense, but I doubt we'll need another car for a decade.
I always included our portion of health insurance premiums and payroll taxes (when working), plus income taxes, in our expenses.
I even think there’s an argument to be made that you should amortize the initial cost of a home and vehicles over an appropriate time period (like 30 & 10 years) and include them as expenses, even if you paid cash for them. But I can’t say that I ever actually did that.
My point is that one all-inclusive (or not) number can be misleading for comparison purposes.
Obviously, what should be included or not be included depends on what the purpose of someone’s expense estimate is.
My husband and I both get SS and pensions, and those are taxed whether we spend a dime of them or not. So, from my point-of-view, those income taxes are a significant, fixed expense. (Not complaining — mostly — to be clear.). But a working-age couple trying to figure out what size emergency fund they need in the event of job loss wouldn’t care about income taxes, given their purpose.
EDIT: So it turns out that 22% of our core expenses - everything but vacations and income taxes — goes to healthcare, including LTC insurance premiums (for 2 people). Our biggest category, by far, is food (for 3 people). So if we were inclined to curb spending, food would be the target. But we aren’t, so it isn’t.
Last edited by delamer on Fri May 20, 2022 12:57 pm, edited 2 times in total.
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Re: What (if anything) are you reducing in your monthly spending?
I am not reducing any monthly spending.
Last edited by sil2017 on Sun May 29, 2022 11:04 am, edited 1 time in total.
Re: What (if anything) are you reducing in your monthly spending?
This is inspiring. I need to embrace this mentality a little more.sil2017 wrote: ↑Fri May 20, 2022 12:19 pm I am spending as much as I can.
I have been going out for dinner at least 5 times per week (favorite is sushi and sashimi), paying for a deluxe health club, massage weekly and facial monthly.
I am in the process of booking luxury cruises to Antartica and Artic and land tours to Bhutan and Papua New Guinea.
Re: What (if anything) are you reducing in your monthly spending?
We are only getting older and no matter how fit you are, your brain and body will deteriorate but who knows at what degree...mega317 wrote: ↑Fri May 20, 2022 12:23 pmThis is inspiring. I need to embrace this mentality a little more.sil2017 wrote: ↑Fri May 20, 2022 12:19 pm I am spending as much as I can.
I have been going out for dinner at least 5 times per week (favorite is sushi and sashimi), paying for a deluxe health club, massage weekly and facial monthly.
I am in the process of booking luxury cruises to Antartica and Artic and land tours to Bhutan and Papua New Guinea.
Re: What (if anything) are you reducing in your monthly spending?
In year 5 of retirement, I assumed 4% Inflation in our retirement plan. Our Inflation rate average for these first 5 years was 3.8% so right on schedule. I also ensured passive income increased each year to beat inflation (pension has COLA, rents increase every year, spouse starts SS next year, I start SS in 5 years, RMD's in 7-9 years). That doesn't mean we don't cut back on some individual items, like someone else said I do have a price point on regular items such as food. If my twice a week salmon purchase keeps going up I may look for alternatives, if my favorite Bourbon hits a certain point .... well I'll just have to suck that up!!!
Re: What (if anything) are you reducing in your monthly spending?
Nothing new on the discretionary side - I already had started doing those things during the beginning of Covid and have just stuck with them. Not really a burden though.A440 wrote: ↑Tue May 17, 2022 11:16 am Prices of everything are rising much faster than income. Our monthly budget no longer balances and we have made some cuts.
Are you cutting back on any monthly spending? Do you care to share what discretionary item(s) are being cut?
We curtailed our dining out, certain superfluous grocery items, car pool when possible, and reduced our Roth IRA contributions temporarily until prices stabilize.
I was out of work for about 10 months or so several years ago. I used that time to do things that would have lasting effects such as:
- Reviewing my insurance coverage and deductibles and making some adjustments
- Monitoring electricity usage which resulted in some thermostat changes, beefing up insulation in some weak spots in the attic area, and replacing all bulbs with LED
- Replaced all shower heads with low flow heads after doing a lot of research on the different types of heads available.
When I went back to work, I found myself being able to save more because of what I had done.
I honestly couldn't imagine cutting back on savings based on how the market is performing. I don't consider that discretionary for us.
Cheers.
Re: What (if anything) are you reducing in your monthly spending?
tortoise84 wrote: ↑Wed May 18, 2022 8:02 am
- Insurance...reduced dwelling coverage a bit to save $365.
As someone who worked in the insurance industry for years, I'd be very careful about underinsuring. With the increased costs of building materials and labor, you may regret reducing the amount of dwelling coverage in the event of a catastrophic loss. Note that 2/3 of homes in the US are now underinsured. With regard to reducing auto liability coverage to the minimum, you are taking a risk of being sued in the event of an at-fault accident that results in vehicle damage over your limit (consider a multi-car accident scenario), as well as potential exposure with one or more bodily injury claims (medical bills, lost wages, etc.).homebuyer6426 wrote: ↑Wed May 18, 2022 9:45 am
I also recently cut my car insurance bill in half by reducing the coverage to the minimum. Never had an accident... Most likely I'd drop the insurance entirely if I were legally allowed to.
IMHO, it might be best to cut corners elsewhere.
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Re: What (if anything) are you reducing in your monthly spending?
We all take "risks" in some form or fashion. This is also one I personally feel comfortable with (taking into consideration our lifestyle and history); I have always had home and auto insurance as low as possible, so there would be nothing to cut for us.turtlebug wrote: ↑Fri May 20, 2022 1:12 pmtortoise84 wrote: ↑Wed May 18, 2022 8:02 am
- Insurance...reduced dwelling coverage a bit to save $365.
As someone who worked in the insurance industry for years, I'd be very careful about underinsuring. With the increased costs of building materials and labor, you may regret reducing the amount of dwelling coverage in the event of a catastrophic loss. Note that 2/3 of homes in the US are now underinsured. With regard to reducing auto liability coverage to the minimum, you are taking a risk of being sued in the event of an at-fault accident that results in vehicle damage over your limit (consider a multi-car accident scenario), as well as potential exposure with one or more bodily injury claims (medical bills, lost wages, etc.).homebuyer6426 wrote: ↑Wed May 18, 2022 9:45 am
I also recently cut my car insurance bill in half by reducing the coverage to the minimum. Never had an accident... Most likely I'd drop the insurance entirely if I were legally allowed to.
IMHO, it might be best to cut corners elsewhere.
Re: What (if anything) are you reducing in your monthly spending?
It is painful although I'm not sure how much I'm cutting back. The biggest pain is the stock market. A 10, 20%, etc. loss is more money than I can make up in earning more money or saving more (it would take years to recover). And the stock loss is greater than 10% inflation.
Right now I'm sure it is painful for a lot of people that were just getting by since you have:
1. Stock market (and bonds) losing sizable amount of money (especially painful for those like me close to retirement where you have a good sized nest egg).
2. Inflation covering a bunch of items people use (food, gas, airline tickets, repairs, labor, etc.)
3. Sky high housing (or rental increases for renters)
4. Still shortages of some items and some new items
If you have a hefty pension with a COLA you may be ok but for a lot of folks the cost of products is greatly rising faster than their income. I'm still in solid shape but depending on the next 6 months, I may work another 6-12 months to give me a better buffer for retirement. Lately we've been lucky with stocks recovering quickly but this may not occur now and previously drops (well in the last couple of decades) the drops have not coincided with high inflation and product shortages.
Right now I'm sure it is painful for a lot of people that were just getting by since you have:
1. Stock market (and bonds) losing sizable amount of money (especially painful for those like me close to retirement where you have a good sized nest egg).
2. Inflation covering a bunch of items people use (food, gas, airline tickets, repairs, labor, etc.)
3. Sky high housing (or rental increases for renters)
4. Still shortages of some items and some new items
If you have a hefty pension with a COLA you may be ok but for a lot of folks the cost of products is greatly rising faster than their income. I'm still in solid shape but depending on the next 6 months, I may work another 6-12 months to give me a better buffer for retirement. Lately we've been lucky with stocks recovering quickly but this may not occur now and previously drops (well in the last couple of decades) the drops have not coincided with high inflation and product shortages.
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Re: What (if anything) are you reducing in your monthly spending?
Me too!sil2017 wrote: ↑Fri May 20, 2022 12:19 pm I am not reducing any monthly spending.
In fact, I have been increasing.
After 5 family and close relatives death within the last year and a friend's death due to stage 4 cancer at 60 years old JUST RECENTLY, I realize how life is never a guarantee. I may live or die tomorrow.
I am spending as much as I can.
I have been going out for dinner at least 5 times per week (favorite is sushi and sashimi), paying for a deluxe health club, massage weekly and facial monthly.
I am in the process of booking luxury cruises to Antartica and Artic and land tours to Bhutan and Papua New Guinea.
My mother died at 51. My father got throat cancer at 62, lived a while longer, but the healthy portion of his life ended at 62.
I'm turning 60 this year and am celebrating - bought a new car, am taking some expensive trips, and basically, whenever I think I want to do something, I'm doing it NOW.
Re: What (if anything) are you reducing in your monthly spending?
Amen. Time is the ultimate currency.PhoebeCoco wrote: ↑Fri May 20, 2022 3:17 pmMe too!sil2017 wrote: ↑Fri May 20, 2022 12:19 pm I am not reducing any monthly spending.
In fact, I have been increasing.
After 5 family and close relatives death within the last year and a friend's death due to stage 4 cancer at 60 years old JUST RECENTLY, I realize how life is never a guarantee. I may live or die tomorrow.
I am spending as much as I can.
I have been going out for dinner at least 5 times per week (favorite is sushi and sashimi), paying for a deluxe health club, massage weekly and facial monthly.
I am in the process of booking luxury cruises to Antartica and Artic and land tours to Bhutan and Papua New Guinea.
My mother died at 51. My father got throat cancer at 62, lived a while longer, but the healthy portion of his life ended at 62.
I'm turning 60 this year and am celebrating - bought a new car, am taking some expensive trips, and basically, whenever I think I want to do something, I'm doing it NOW.
Time is the ultimate currency.
Re: What (if anything) are you reducing in your monthly spending?
We are fortunately in that we are in the time of our lives where we mostly live off one of our salaries and invest the other. Our kids are mostly self-sufficient, mortgage is paid other than a very small HELOC, no car loans, debt, etc... at the start of Covid we cut almost all disposable spending and have not really started again other than one overseas trip where we sofa surfed.
In short we are super frugal and the only cut backs now are going out to eat one meal every two weeks or so and being more cautious at the super market. No other extravagances other than Lox (i can't give everything up!) still cut my own lawn, shovel my own driveway, no cable, Spotify only, no other paid streaming as so much is free or included now with our wireless (which is billed to our business).
While this draw-down is painful to watch i also realize how fortunate we are to have built a "last one to turn out the lights" financial structure.
We have a short vacation planned for this summer but that is likely to be it for a while.
~Moshe
In short we are super frugal and the only cut backs now are going out to eat one meal every two weeks or so and being more cautious at the super market. No other extravagances other than Lox (i can't give everything up!) still cut my own lawn, shovel my own driveway, no cable, Spotify only, no other paid streaming as so much is free or included now with our wireless (which is billed to our business).
While this draw-down is painful to watch i also realize how fortunate we are to have built a "last one to turn out the lights" financial structure.
We have a short vacation planned for this summer but that is likely to be it for a while.
~Moshe
My money has no emotions. ~Moshe |
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Re: What (if anything) are you reducing in your monthly spending?
As my wife and I got married in June 2020 she switched her career from a restaurant manager to an elementary school music teacher and we've prioritized paying down her student debt (44K now down to 11.5K please help us with the final 10K Biden!). We've been living off my salary, been able to do all these things above, and save 30-35% of my take home. All to say we've only known living off my salary and putting her substitute teacher money / any extra money not into savings, investing toward student debt.
Now that she'll have a 60K per year elementary music teach job beginning in August, we've actually expanded our expenses but only just...YouTube TV, I'm looking for a landscaping service to do odds and ends I don't want to do (putting in mulch, pulling weeds, etc). Now instead of any extra money going to student debt we're saving up now for a family vehicle as we're just starting to try for a kiddo - my wife's car is a 2007 Honda Element with 170K miles, large maintenance expenses on a 12 year old house we bought and moved into last August, a vacation fund, maxing out her 403B...so yeah we lived well below our means and did just about everything we've ever really wanted and now with her salary we're viewing it as it all going into saving for big expenses, investing and then living off my salary like we had before and still be able to save 30-35% of my take home. Kids will change that a bit I'm sure but we'll be ready!
Now that she'll have a 60K per year elementary music teach job beginning in August, we've actually expanded our expenses but only just...YouTube TV, I'm looking for a landscaping service to do odds and ends I don't want to do (putting in mulch, pulling weeds, etc). Now instead of any extra money going to student debt we're saving up now for a family vehicle as we're just starting to try for a kiddo - my wife's car is a 2007 Honda Element with 170K miles, large maintenance expenses on a 12 year old house we bought and moved into last August, a vacation fund, maxing out her 403B...so yeah we lived well below our means and did just about everything we've ever really wanted and now with her salary we're viewing it as it all going into saving for big expenses, investing and then living off my salary like we had before and still be able to save 30-35% of my take home. Kids will change that a bit I'm sure but we'll be ready!
Re: What (if anything) are you reducing in your monthly spending?
I haven't look for a new BF. They're expensive, so I'm saving a lot there. Also, trying to get into the swing of buying fewer perishable groceries now that I'm solo.
Re: What (if anything) are you reducing in your monthly spending?
PhoebeCoco wrote: ↑Fri May 20, 2022 3:17 pmSorry to hear about your parents .sil2017 wrote: ↑Fri May 20, 2022 12:19 pm I am not reducing any monthly spending.
My mother died at 51. My father got throat cancer at 62, lived a while longer, but the healthy portion of his life ended at 62.
I'm turning 60 this year and am celebrating - bought a new car, am taking some expensive trips, and basically, whenever I think I want to do something, I'm doing it NOW.
Way to go!!! Happy traveling to you and enjoy the car. Eat well and get some exercise so you can enjoy your trips.
Last edited by sil2017 on Sun May 29, 2022 12:26 pm, edited 1 time in total.
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Re: What (if anything) are you reducing in your monthly spending?
Massages - use $50 percussion gun at home
Dining out - was weekly now monthly
Coffee out - drink water when not at home
Electronics - still using $40 smart phone and $199 laptop, both overdue for replacement
Dining out - was weekly now monthly
Coffee out - drink water when not at home
Electronics - still using $40 smart phone and $199 laptop, both overdue for replacement