Of course, inflationYour numbers will be skewed low some because of inflation, for example 1,000 ten years ago in 2014 is worth about $1,300 today.That would average expenses over these years at 45k, which seems like a low amount.
https://data.bls.gov/cgi-bin/cpicalc.pl ... ar2=202407
One big question is if you have a paid off house or if you are paying rent or a mortgage payment out that budget.
I am retired in a medium to low cost of living area and I have a paid off house and we are both on Medicare. I do not follow a strict budget but my rough retirement budget is about $5,000 a month or $60K a year which for a couple is ample to have an above average middle class standard of living here including some things like modest international travel.
With that income level we also pay virtually no federal or state income taxes because of the way Social Security is taxed.
Compared to when when had a mortgage payment, FICA taxes, child raising expenses, retirement savings, etc living on $60K a year is easily the same as someone in their working years who was making well over $100K who had those expenses.
That $60K budget does not include some lumpy expenses like we are getting our bathrooms remodeled and in the last few years we bought replacement cars so you will also need to allow for things like that too.
! I'll adjust the expense numbers on my spreadsheet to see what they look like in 2024 dollars. I currently plan to rent in retirement. I currently have a mortgage, at around 600 a month, and around 11 years left on it. I do not like owning, but the math of renting didn't make sense anymore. I expect to move frequently the first 5-10 years of retirement, after that owning might make more sense, who knows.
Statistics: Posted by qBxCA — Wed Aug 28, 2024 11:29 pm — Replies 12 — Views 1616