Author Topic: 2014 (Max) Annual Spending Goal = What is yours?  (Read 6283 times)

Ottawa

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2014 (Max) Annual Spending Goal = What is yours?
« on: April 19, 2014, 03:25:04 PM »
Before embracing MMM, I would guess our annual spending was >45K annually - although we *thought* we were frugal...quite frankly, I have no real idea what our savings or spending were!  I would hazard to guess that VERY FEW people have any idea what their annual spend rate is (apart from the MMM crowd of course).  The tracking of all the expenses that comprise our annual spending were eye opening to say the least.  While I don't advocate a budget, I do advocate tracking your spending.  This is the most important number to be able to project your ability to FIRE.

Over the past 19 months, we've been ramping up our Mustachianism.  For 2014 I would like to breach (below) the 30K mark. 

In order to FIRE we require 25x annual spending.  At 30K we would require 750K.

As background for the numbers - we are 2 adults, one 5 year old child.  We live in a large (mortgage free) townhouse. 

The attached picture - number table - shows that after the first year of Mustachianism we were at $36,072.28 annual spend.  The table then demonstrates how each month we reduce from the that first year as a rolling year. 

P.S. Thanks Studentstacher for the idea - taken from your 2014 Savings Rate Goals gauntlet: http://forum.mrmoneymustache.com/throw-down-the-gauntlet/2014-savings-rate-goals/


Herbert Derp

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Re: 2014 (Max) Annual Spending Goal = What is yours?
« Reply #1 on: April 19, 2014, 03:39:16 PM »
$8,000 - $8,500, once I learn the details of my rent increase I can give a better number.
« Last Edit: April 19, 2014, 03:40:56 PM by Herbert Derp »

Ian

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Re: 2014 (Max) Annual Spending Goal = What is yours?
« Reply #2 on: April 19, 2014, 06:09:40 PM »
I'm hoping my expenses will be around 3k. Rent is covered by my employer, and I won't always be able to get health insurance this cheaply, so I'm not counting on 100k as my requirement for FI. Still, it's nice to be saving this much of my income.

happy

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Re: 2014 (Max) Annual Spending Goal = What is yours?
« Reply #3 on: April 21, 2014, 07:20:00 AM »
FAD!, 3k a year? O so Badass!

smalllife

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Re: 2014 (Max) Annual Spending Goal = What is yours?
« Reply #4 on: April 21, 2014, 07:28:34 AM »
My goal this year is to paradoxically not have a goal and not to strive for less than my previous years spending (24k including a mortgage and lots of housework).   Combining incomes and trying to find the right balance for two is a lot different than reaching for solitary goals, and I'd rather blend our spending values to reach an equilibrium than get frustrated when they don't align perfectly right away.  Thus far I'm still on a good track for FIRE, but I'm spending a little more in the name of household happiness. 

Ian

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Re: 2014 (Max) Annual Spending Goal = What is yours?
« Reply #5 on: April 21, 2014, 07:29:43 PM »
FAD!, 3k a year? O so Badass!
Most of it is my job: free rent, no commute, and free internet go a long way. It doesn't pay a lot, but it has its advantages.

happy

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Re: 2014 (Max) Annual Spending Goal = What is yours?
« Reply #6 on: May 03, 2014, 07:38:38 PM »
I think you are being modest Ian! You have some built in advantages but still to contain "the rest" to 3k is fantastic.  You also get credit for organising a job with those  expenses covered.  i'm pretty sure you win the lowest annual expenses prize.

Ottawa

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Re: 2014 (Max) Annual Spending Goal = What is yours?
« Reply #7 on: May 04, 2014, 08:12:50 AM »
April 2014 ended up with $1846.32 in spending.  This represented an annual spending rate of $32635.97, an 8.1% reduction from the first full Mustache year...

Samsam

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Re: 2014 (Max) Annual Spending Goal = What is yours?
« Reply #8 on: May 04, 2014, 08:18:52 AM »
My goal for this year is under $35k and trying for a slight promotion.

scrubbyfish

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Re: 2014 (Max) Annual Spending Goal = What is yours?
« Reply #9 on: May 07, 2014, 06:43:37 PM »
$18,000, family of two.

Melody

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Re: 2014 (Max) Annual Spending Goal = What is yours?
« Reply #10 on: May 08, 2014, 04:23:29 AM »
<$30k - single in a HCOLA. $30k is minimum wage, but as I'm traveling internationally this year for 6 weeks and bought a new car ($4k out of the budget straight up) and am a renter ($10k a year for house share) this is tougher than it seems... I don't think I'll make it.

If it wasn't for the car I think would have (the car was sort of an impulse buy... I had been planning to get a new car for the same value as my old car, but ended up "upgrading" because I was able to get the car at way less than market value and spending an additional $4k. But as I ended up with a car with about 100,000km less on the clock and 10 years newer than the ones I had been eying off it was probably worth it as I can keep this car for a long time.)

MrMathMustache

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Re: 2014 (Max) Annual Spending Goal = What is yours?
« Reply #11 on: May 08, 2014, 05:29:16 AM »
I'm trying to keep total spend at <21k, which means I have to keep my miscellaneous expenses (incl. food, entertainment, and travel) <$315 per month.  Should be doable as long as I avoid a big-ticket purchase or two!

Travis

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Re: 2014 (Max) Annual Spending Goal = What is yours?
« Reply #12 on: May 08, 2014, 05:34:20 AM »
Goal is no more than $35k this year (two adults and a four year old).  A normal year for us has been around $50k, but a couple months ago my wife finished college and I'll be done with my Masters in August so that'll be a huge expense gone forever.  I'm deployed for the rest of the year so our food and fuel bill should drop by at least a third (so maybe down to $32k).

europe

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Re: 2014 (Max) Annual Spending Goal = What is yours?
« Reply #13 on: May 08, 2014, 11:37:07 AM »
Last year, I spent 27.5K - hope I can reduce my spendings at least 10 percent and get below 25K/year. Already sold my car, which should save me around 1K the rest of year, so I just need to save ~1.7K more. :)

bluecheeze

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Re: 2014 (Max) Annual Spending Goal = What is yours?
« Reply #14 on: May 12, 2014, 05:08:38 AM »
Not very mustachian at all (but to be fair I just discovered this site a month ago).  We are on track to spend about $55k this year.  $25k of it is on vacations.  I also had to buy a car and set up a new life in a new country so that number is about $12-14k higher then what I would hope it to be next year. (vacation budget will be limited to $15k next year also).

nikki

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Re: 2014 (Max) Annual Spending Goal = What is yours?
« Reply #15 on: May 12, 2014, 05:18:08 AM »
I think you are being modest Ian! You have some built in advantages but still to contain "the rest" to 3k is fantastic.  You also get credit for organising a job with those  expenses covered.  i'm pretty sure you win the lowest annual expenses prize.

He is being modest. I'm in a similar position in the same country and have already spent over $3000 USD this year.

daverobev

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Re: 2014 (Max) Annual Spending Goal = What is yours?
« Reply #16 on: May 12, 2014, 11:55:26 AM »
Does this include mortgage principal?

Ian

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Re: 2014 (Max) Annual Spending Goal = What is yours?
« Reply #17 on: May 12, 2014, 08:03:38 PM »
Hopefully my spending is an encouragement to other people - I'm certainly not trying to win any award.* I actually feel somewhat spendthrift at times compared to what I could be doing, but I'm trying to become comfortable with spending some on luxury. Everyone has a balance at a different point.

I'm over budget to hit my target thanks to $75 on an obligatory medical checkup (and being lazy with food). Hopefully I'll get a string of inexpensive summer months so my gas bill this winter doesn't take me over.

*Though if there was a cash prize for the award...

Ottawa

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Re: 2014 (Max) Annual Spending Goal = What is yours?
« Reply #18 on: May 13, 2014, 05:58:34 AM »
Does this include mortgage principal?

NO, mortgage paid off.  Car paid off.  No debts of any type. 

Sorry, I should have stated that so people could strip out principal (a form of savings).  Interest on the mortgage (or any debt) should probably be included...I would think, as it is an expense. 

My spending includes EVERYTHING else.  House expenses (taxes, insurance etc), car expenses, after school care, summer camps, good, clothes etc...

Elaine

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Re: 2014 (Max) Annual Spending Goal = What is yours?
« Reply #19 on: May 13, 2014, 08:23:25 AM »
20k. I live in NYC, so 9k of that is rent.

Fonzico

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Re: 2014 (Max) Annual Spending Goal = What is yours?
« Reply #20 on: May 13, 2014, 10:07:13 AM »
Oh. My. Goodness.

I just found MMM in March. I don't know why I didn't do this sooner, but I just checked Mint to see what we spent last year (been using Mint for a while, although obviously not very effectively until recently!)

Yeah. We spent over $56,000 in 2013. *shudder* I can't believe it, I didn't think it was that bad! That's for a 2-person household, plus with a roommate! I seriously thought we were good with money :/ (Even though we never had ANY savings... it always seemed like something would "come up" and we'd be able to start saving "in a couple months".) And yes, $56,000 was approximately our after tax income for that year. We may not have been racking up debt, but we were spending everything we had!

We're on track to spend around $45,000 this year. Which is obviously still not great, but ~$11,000 or a 20% reduction in spending isn't anything to sneeze at either. And we don't have a roommate anymore (and won't be getting one, since we're using the empty space to run our side gig, which brings in more than we'd make in rent).

My goal (for now) is to get below $40,000/yr. If I can accomplish this while increasing our income, we'll be in a much better position. Thank god I found this place when I did...

Ottawa

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Re: 2014 (Max) Annual Spending Goal = What is yours?
« Reply #21 on: May 13, 2014, 10:13:31 AM »
Oh. My. Goodness.

I just found MMM in March. I don't know why I didn't do this sooner, but I just checked Mint to see what we spent last year (been using Mint for a while, although obviously not very effectively until recently!)

Yeah. We spent over $56,000 in 2013. *shudder* I can't believe it, I didn't think it was that bad! That's for a 2-person household, plus with a roommate! I seriously thought we were good with money :/ (Even though we never had ANY savings... it always seemed like something would "come up" and we'd be able to start saving "in a couple months".) And yes, $56,000 was approximately our after tax income for that year. We may not have been racking up debt, but we were spending everything we had!

We're on track to spend around $45,000 this year. Which is obviously still not great, but ~$11,000 or a 20% reduction in spending isn't anything to sneeze at either. And we don't have a roommate anymore (and won't be getting one, since we're using the empty space to run our side gig, which brings in more than we'd make in rent).

My goal (for now) is to get below $40,000/yr. If I can accomplish this while increasing our income, we'll be in a much better position. Thank god I found this place when I did...

Knowledge gives you the power to change!  Keep up the good work, there will be many more awesome surprises in store for you yet.

Hedge_87

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Re: 2014 (Max) Annual Spending Goal = What is yours?
« Reply #22 on: May 25, 2014, 10:37:39 AM »
I was shooting for ~35k this year but.... got a different job, had to move, had some major car repair bills, and getting married (I know I know it's gotten bigger than we wanted it to be cough cough mom) we should still end up around 40K. Next year should kick as though which I'll explain in a different post hopefully Friday ;)
« Last Edit: May 26, 2014, 11:40:58 AM by Hedge_87 »

sekritdino

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Re: 2014 (Max) Annual Spending Goal = What is yours?
« Reply #23 on: May 26, 2014, 10:45:24 AM »
$25k of it is on vacations.  .... (vacation budget will be limited to $15k next year also).

Good god!! Maybe more camping trips are in order for you guys. The tent kind, not the monster RV kind.

bluecheeze

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Re: 2014 (Max) Annual Spending Goal = What is yours?
« Reply #24 on: May 26, 2014, 11:22:48 PM »
$25k of it is on vacations.  .... (vacation budget will be limited to $15k next year also).

Good god!! Maybe more camping trips are in order for you guys. The tent kind, not the monster RV kind.

Haha.  We are out in the mid east and part of the visa req is that we leave the country for a certain period of time each year (~2 months).  So we are just using this to see the world "cheaply".  This years trips got a little expensive though.  We try to stay at places under $100/night (60nights@100/night=6k right there) but those airplane tickets can kill you.  I suppose if I subtract out the rewards and cash back though it would be about 5% less but yeah- still expensive.  Next year I think we are just doing 2 months in New Zealand instead of jumping around several countries so it will probably be a little cheaper? Thinking long term rental rate.

happy

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Re: 2014 (Max) Annual Spending Goal = What is yours?
« Reply #25 on: June 03, 2014, 05:43:49 AM »
Well, I'm certainly the most un-mustachian senior mustachian. I post lots because I have lots to learn.
I projected out my expenses for the year based on my spending to end May got 46k for the year. Not really very good, but  I was aiming for less than 55k this year.  so doing a little Happy dance (no you don't want to see it)