My 'Come to Jesus' moment.

[Giro]

For the past several months I've been very focused on investing all of my extra money and documenting my goals for FI.  I want to retire in 4 years.  I've budgeted my after retirement expenses over and over and over.  Well, today was the first time I've actually looked at what I really spend.  I know that seems absurd that I just now did that, BUT I was so focused on needs and my retirement budget that I never really looked at what I spend now or my pre-FIRE spending.

I am devastated at the results.  My FIRE budget was about $25K a year.  My DH's would be another $25K a year.  So, total FIRE budget $50K.  I thought it was a great budget until now.

We split household expenses.  We have no debt.  I pay utilities and cable. He pays insurance.  We split taxes and we both shop for groceries whenever.  I also have two kids in college but I have a separate college fund for that and it isn't counted in my expenses. 

My average monthly expenses has been $3500 !!!   WTH????   I'm bleeding cash and was paying ZERO attention.  So starting today, everyone is cutoff.  No more handouts to grown children.  No more sushi restaurants.  I need one month of solid necessity spending only.

:( 

just a vent. 
Carry on.

[Elderwood17]

Actually tracking expenses can be a real eye opener -- even for someone with an eye to FIRE and doing as well as you!  The good news is it looks like you have some opportunities and a chance to get the stache going to overdrive in the future.  Good luck!

[Giro]

I think my biggest problem is that I have a hard time seeing the cause and effect of my current spending.  If I pay my daughter's car note, it helps her out tremendously.  If I throw those few dollars in my investments, I don't retire any earlier. 

I need to get past that and start throwing extra money into my investments instead of the set it and forget it mentality I've been operating with.  Even if it's just a few hundred more a month, go ahead and transfer it. 

[Retired To Win]

Actually tracking expenses can be a real eye opener -- even for someone with an eye to FIRE and doing as well as you!  The good news is it looks like you have some opportunities and a chance to get the stach going to overdrive in the future.  Good luck!

Well said. I had an analogous experience as the OP several years ago.  I found that my basic living expenses tracked at about $26K a year.  But I found there was a lot of optionality in those numbers.  And I managed, applying frugality without sacrifice, to bring my basic living expenses below $15K a year.  Sounds to me like the OP will be able to do a very similar thing.  ;)

[Giro]

So, what should I keep in my liquid accounts?  I'm thinking of trying a zero budget where I'm spending or moving all of the money I earn instead of doing a set amount investment twice a month.  I could keep that and do an ad-hoc investment twice a month after I pay my expenses.

Right now, I think I have about $20K liquid.  I could move $10K of that to my funds and then just keep that account at $10K.  So, at the end of the month after everything is paid or funded, I move what's left to my Vanguard and start the next month at $10K.

Suggestions?

[MDM]

I could move $10K of that to my funds and then just keep that account at $10K.  So, at the end of the month after everything is paid or funded, I move what's left to my Vanguard and start the next month at $10K.

Suggestions?

That seems reasonable.

You'll see similar suggestions in a pretty good thread: http://forum.mrmoneymustache.com/ask-a-mustachian/how-do-you-manage-cash-flow-if-you-don%27t-use-a-budget/

[arebelspy]

Ouch.  Well, at least you know now, and can work on optimizing spending and happiness.

:)

[StockBeard]

If I pay my daughter's car note, it helps her out tremendously.  If I throw those few dollars in my investments, I don't retire any earlier. 

Actually, you do, if that kind of spending is recurring. If you keep "not" paying attention, it's very easy to overspend on this or that, every single month, making is a "miscellaneous" recurring spending