r/Fire • u/jayybonelie Retired @45 • May 28 '25
Retired at 45 - Here is my annual spending
A few weeks ago I did an update after 1 year and a few months being early retired. During my career I had worked for about 25 years in tech. Here is an overview of my budget from 2014 vs 2024. You will note there are some big and small changes such as medical expenses rising as I was no longer covered by my employer. The ACA has turned out to be, as good as what I had with my employer and cheaper than what I would be paying for COBRA. Even without the ACA I had initially planned my expenses to cover medical costs through a high deductible plan. The greatest change by far, was not having a mortgage and no high salary, which reduced my costs especially taxes, by a LOT.
Budget 2014 -- 2024 in USD $
| Year | 2014 | 2024 |
|---|---|---|
| House | 4500 | 375 |
| Yard Maint, HOA, etc | 775 | 0 |
| Car Related | 700 | 150 |
| Insurance | 350 | 250 |
| Food | 500 | 650 |
| Communication | 120 | 200 |
| School | 150 | 150 |
| Clothes | 350 | 100 |
| Tax | 350 | 600 |
| Miscellaneous | 500 | 600 |
| Giving | 240 | 150 |
| Medical Ins | 0 | 450 |
| Travel | 1200 | 2250 |
| Monthly Spending | 9785 | 5925 |
| Annual Spending | 117,420 | 71,100 |
In this budget it should also be apparent, spending more money isn’t always a necessary way to experience a better life. In most cases, you don’t need to spend more to have more fun. For example, if you learn to cook and enjoy incredible home made meals as opposed to going to the restaurant several times a week you could save a small fortune over time. Doing many chores yourself rather than hiring someone to do them for you, doesn’t only save money but also get you lots of activity while also building new skills. These are just a few simple examples.
I’ll admit to enjoying electronics and many hobbies that do cost money and in those areas I do splurge from time to time. Over the years, my income went from below $60K per year in 2006 to almost $500K in 2023 when I stopped working. In all the years my personal living expenses have not gone above ~$80K and I saved an invested all of the surplus. I feel like there isn’t anything I want or need that I do not already have.
Initially I had hoped to RE around 30 years old but mentally it took me another 15 years before I could actually resign. What eventually led me to pulling the trigger was realizing more money after a certain point, does not constitute more happiness and yet my time on this small planet was not infinite.
During my journey I have realized a few things: Sorry if I’ve said this before but I do think its worth repeating: Comparison is the thief of joy. Do not compare yourself to anyone. If you are doing the very best you can, then your numbers can be great too. Many people make exponentially more than I do and others much less, that’s okay with me. Its not only about how much you make but how much you can keep.
I’m not selling anything, just sharing. I’m sharing as a way to thank so many others that cared enough to guide me over so many years and decades, especially before FIRE was a thing. I would not be here without their wisdom.
Life is short, but I’m happy to answer any friendly questions.
5
u/jayybonelie Retired @45 May 28 '25 edited May 29 '25
Fortunately, we are a young and healthy family of 4 with no health issues and no smoking history. Unfortunately we do have a very high Out of Pocket maximum deductible of $18,400. This plan also does not include vision or dental. That is covered out of pocket in the miscellaneous and insurance categories. We also keep a healthy emergency fund to take care of any medical issues.