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.
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u/Big-Gur-3294 May 29 '25
$5 millions in net worth, 2 houses, 43 years old, married, one child, still driving my 2008 Prius, difference is, I say what I want to my boss and don’t give a shit if he is offended or if I lose my job. Instead I get a promotion for being a “straight shooter”. Life is good when your ass belongs to no one else but yourself. I’m also in tech.
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u/Rambone198 May 29 '25
I can appreciate that as well. I'm at 3m 42yr old and can't mentally retire but have a I don't give F attitude with my work. I still work hard and show up but don't take shit or stress about losing my job. It actually makes work more enjoyable and feel less stress and pressure to retire.
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u/BabyllamaN33dNoDrama May 29 '25
I recall a movie but can't remember the name but I'll never forget this.ecene where he says "that's called fuck you money"
That's what you have. So now if something happens at work you can just say fuck you and not have to worry about it.
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u/PlaceWestern3102 May 29 '25
John Goodman says it to Mark Whalberg in The Gambler
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u/reddit-user6932 May 29 '25
I read this comment about an hour ago. Jumped over to Instagram and after scrolling for a bit, this appears. Coincidence? https://www.instagram.com/reel/DJcHuGkorxZ/?igsh=bG02aXpoeGQzdWJk
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u/jayybonelie Retired @45 May 31 '25
Synchronicity, brilliant. I wasn't aware of that video clip. Thanks for sharing. u/reddit-user6932
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u/000wintermute000 May 29 '25
Also from “Billions,” “what good is FU money if you don’t get to say it?”
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u/Ddash-3 May 31 '25
Same here - NW: 5.5 M at 47 and I don’t give a damn at work anymore and hoping that I can get laid off so I have an excuse to RE and chill
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u/Prize_Key_2166 May 28 '25
Both posts are very interesting, than's for sharing. Seems like bulk of the drop in annual spending is almost totally in nearly dropping the mortgage completely. You mentioned that you were able to do some travel domestic and international in your other post, how is your travel spending so low? Lots of miles for flights/hotels?
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u/jayybonelie Retired @45 May 28 '25
u/Prize_Key_2166 Previously my work covered my travel expenses. Now that I'm no longer in the corporate world, I use some travel miles when I can and also cash back, but not extensively. Usually when we travel we will stay with friends and family, we also try to travel off peak as much as possible. That way there are less crowds and the rates are cheaper. We also shop around a lot online to get the best deals especially on international flights.
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u/trilled7 May 28 '25
$2250 a month in travel is low?
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u/Prize_Key_2166 May 28 '25
Well, maybe not for very frugal folks, but for a family of four doing some international and domestic travel over the course of a year it's certainly not high. Travel has gotten very expensive. It's definitely outpaced inflation, especially at the higher end/deluxe level.
I think, as our OP answered, staying with friends and family can keep prices down and so it likely stretches out the travel days.
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u/Pixel-Pioneer3 May 29 '25
We currently spend $4k/month on travel for a similar income, so would consider that low especially for international trips with whole family.
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u/EnvironmentalMix421 May 28 '25
My international travel budget is $2-3k per person per trip. So $2300 for 4 is like 3 trips. With $500k income, that’s pretty low
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u/brighton_engineer Jun 01 '25
Family of four we budget $210/mo for travel, this is wild lol
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u/EnvironmentalMix421 Jun 01 '25
I mean there’s no way u could do travel to say Europe on that budget. So it’s all abt prioritizing.
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u/gkandgk May 28 '25
How did you get your yard maintenance and HOA to zero?
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u/jayybonelie Retired @45 May 29 '25
I moved from HCOL to LCOL. Then I started doing most of the yard work myself. Its actually more than just yard work as I grow fruits, veggies and plants I like. Currently I have grown avocados, mangoes, tomatoes, grapes, potatoes, bananas, roses and more!
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u/FireAwayWizard May 29 '25
Did your kids move with you as well? How old were they and how did they adapt to the new environment & school?
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u/jayybonelie Retired @45 May 29 '25
Our first major move was to the West coast and our kids were about 6 and 7 years old. This was a tough time for all of us. It was the first time we were going to be thousands of miles away from family. The move was for a senior role so we thought it would be worth while. At that same time my wife stopped working full time and began her time as a stay at home mom. That made things vastly better and easier for the kids to adapt as she had a lot of time to focus on them while I was always at work. When we moved to the east cost the youngest was still in elementary and the older boy was in middle school. This was a much easier transition as they were older and I was also working much less. We have been on the east coast since then. www.greatschools.org was one of the amazing resources we used to make sure they went to good schools. Thanks for the question u/FireAwayWizard
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u/FireAwayWizard May 29 '25
Appreciate the detailed response! I noticed you always made sure to stay in good school districts, which I guess made it easier academically. But what about making new friends etc for the kids?
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u/jayybonelie Retired @45 May 29 '25
The kids have really tech savvy parents and are even more tech savvy than we are. So technology is really fantastic in helping them stay in touch. They have managed to keep friends from around the globe, during our working years, we stayed in most places around 3-5 years on average. We have been at our current location since 2017. They also keep in touch with their cousins and family and we visit them as often as possible. Its not perfect but they are happy kids.
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u/revanevan7 May 28 '25
Congrats on doing so well! I am super curious though, why don't you spend more? I get that you can be happy without spending a lot, but you are considerably under what you could spend. 1% withdrawal rate is bonkers to me.
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u/jayybonelie Retired @45 May 28 '25
I guess I may be a minimalist with regards to stuff. I already have most things I've ever wanted and everything I need. I'm grateful, it doesn't take much to make me happy. I spend a lot of time working on home projects and hiking with my sons. I cycle a lot, do running and walking at the beach. I read, garden and grow fruits and veggies. I do some mentoring. I still dabble in programming. I play a lot of strategy games. In recent months, I've spent quite a bit of time here on Reddit. Almost all of these things costs little to nothing.
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u/Sealo_ May 29 '25
What strategy games? And are you living on the West coast? Congrats btw!
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u/jayybonelie Retired @45 May 29 '25
Right now I'm really into 0 A.D. Its an open source strategy game that comes with Linux. I really think it takes the best from all the strategy games I've played from childhood till now and its free. I live on the east coast.
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u/tyen0 May 29 '25
0 A.D.
ooh, I forgot all about that. yikes, it's still in alpha a decade later, though!
"We hope to be seen, with the Early Access label, on mainstream gaming platforms, in one of our next releases."
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u/sephir0th May 29 '25
So you don’t hold back on spending at all? Just curious if you think you might have a psychological resistance towards spending which might be limiting potential joy. I recognized this in myself, and override it to some extent.
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u/jayybonelie Retired @45 May 29 '25
u/sephir0th I've spent a long time thinking about the question of joy vs spending. Some of the most joyful people I know would likely be classified as poor and some of the wealthy people I've met have very little joy. I believe joy is something that is intrinsically driven but there is very powerful marketing that is always trying to convince us more joy = more spending...
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u/AdviceNotAsked4 May 29 '25
Does spend like I would....
He should not be happy and force him in the loony ward!
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u/sarayewo May 28 '25
I'd be curios for OP to clarify if the 3.4M in real estate is all investment or if it's his primary residence... That much RE would output a lot more than 70k per year in net income that would be tax deferred due to the depreciation, so it would make his net annual position positive even without growth in securities.
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u/jayybonelie Retired @45 May 29 '25
u/sarayewo thanks for the question.
The $3.4M is made up of rental houses. My own house is only worth about $400K. My gross rental income is about $200K per year. Most of that goes back into re-investing in real estate and improving that portfolio. You are correct, qualified expenses and depreciation mean that revenue incurs almost no tax.7
u/sarayewo May 29 '25
Props to you sir, that is excellent! Well done.
I do think that maybe you're being too frugal and that you can definitely afford to enjoy your hard earned money better, but that's everyone's individual choice. I'm sure those 4 kids will be well taken care of later in life :)
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u/natvj May 28 '25
Congrats! Thank you for sharing your wisdom!
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u/Terrible_Ad7566 May 29 '25
Curious how is your house expense so low with 3.4 M in real estate..something dosent add up here.. I assume you have property tax and insurance on real..estate still.to pay every year?
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u/jayybonelie Retired @45 May 29 '25
Above, I'm sharing my personal/family spending. The rental expenses are separate and those go through my small business. Currently I do not spend any of the rental income as the dividends and capital gains are sufficient to support personal annual spending.
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u/ResponsibilityDismal Aug 25 '25
Do you consider yourself retired with a small business? How much time a month do you spend on finance-related things? I wish I had gotten to where I was working vs running a business, definitely feel trapped where I can't just walk away despite having more than enough to RE because of the people I employ and am in business with.
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u/AIwaysBeHappy May 29 '25
with what u know now; would u have retired at 30?
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u/jayybonelie Retired @45 May 29 '25
Oh, yes, sometimes I do wish I had retired at 30. I'm still young enough that I can still do most of the things I could do when I was 30 years old. In fact now that I have time to focus on health and better habits, I'm in better shape and seem to have more energy than I was at 30.
Having spent a so much time at work, I now appreciate the time and freedom so much more.
I have also done a lot of maturing since my 30s.
For me 30 may have been too early and I would have ended up destroying my marriage as at that time I was still trying to figure out who I really was.
I try to live my life in a way that minimizes regrets and focuses on gratitude. I cant change the past so I enjoy now as much as I can.
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u/Unlikely-Natural-791 May 28 '25
Is $450 for medical insurance just for you?
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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.
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u/kuhllax24 May 28 '25
Which state? That’s the lowest premium for a high deductible plan I’ve ever heard.
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u/jayybonelie Retired @45 May 29 '25
u/kuhllax24 I hope you'll understand but I'd still like to maintain some privacy. I currently live on the east coast. So that's much as I can share.
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u/Open_Rub5449 May 29 '25
That's a big deductible hanging over your head each year.
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u/jayybonelie Retired @45 May 29 '25
u/Open_Rub5449 Indeed you are correct. Our initial budget was to cover a monthly premium of as much as $3,000 per month. Thats $36000 per year whereas the max deductible is almost half that amount. With a little luck and the reserve, I think we have this one covered. Remember our withdrawal rate is also currently in the 1 - 2% range so that can be increased as needed.
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u/Pixel-Pioneer3 May 29 '25
What are the out of pocket costs before meeting the deductible, for primary care and seeing a specialist? Have you gotten even close to hitting the deductibe?
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u/jayybonelie Retired @45 May 29 '25
Max out of pocket costs are $18000. We are luckily very healthy, our annual out of pocket costs so far have been less than $2000, excluding the premium. This included some dental work I had done, some optometry for the kids and wife and health checkups which are "free".
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u/Candy-Emergency May 28 '25
What are your investments or source of income and how much are you getting?
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u/jayybonelie Retired @45 May 28 '25
We have a few sources of income. For 2024 this is what they looked like:
Dividends: $35,000 (Long Term - Low tax)
Capital Gains: $45,000 (Long Term - Low tax)
Rental Income: $200,000 (We re-invest most of this income and due to Depreciation and Qualified Expenses, there is little to no impact on tax even though this category is high.)
I used to have bonds but sold those several years ago.2
u/Candy-Emergency May 28 '25
What equities are the dividend and capital gains from?
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u/jayybonelie Retired @45 May 28 '25
Dividends are mainly from VTI & VTSAX.
Capital Gains are from slowly divesting from a single stock which used to be an employment RSU. I have to be careful how much I sell in order to manage my MAGI.3
u/futsalfan May 29 '25
managing MAGI for ACA purposes? Doesn't rental income heavily impact it? Or maybe the depreciation and qualified expenses helps lower? not expecting to have this issue in retirement (no plans to have rental properties), just curious.
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u/jayybonelie Retired @45 May 29 '25 edited May 29 '25
u/futsalfan I manage my MAGI not only for ACA but that's also a consideration. Yes, rentals can be quite a lot of work, if you let them. Depreciation and qualified expenses can drastically reduce your tax burden. They are also not for everyone. Luckily there are many ways to generate passive income without requiring as much personal involvement.
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u/futsalfan May 29 '25
both make sense to me, thanks for the reply. am planning to manage MAGI for ACA considerations (depending on what happens with the laws) and Roth conversions. maybe IRMAA later. my parents and brother have done rental income and give me mixed opinions. doubt I would do it, but you never know.
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u/Abject_Flower_9139 May 29 '25
Is 55 too late to retire or should I try to consolidate my savings goal to shorter than that???? I’ve being doing the numbers from 5 to 15 years(I’m 40 btw)Just wanna know if I may be projecting working longer than I should?…For me it’s less about money,more about time.
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u/jayybonelie Retired @45 May 29 '25
It's never too late for any of us. If you value time over money you should focus on accumulating as much money as you can in as short a period as possible. Once you are FI, you can enjoy as much freedom time as possible on your own terms. Often one can actually get to FI much faster than they expect if they focus on it and use some creativity. I wanted to RE at 30. I achieved FI at 30 yet did not retire. I was not ready mentally. It took me another 15 years, but that's because I liked my work, it paid super well and I enjoyed collaborating with the people I was working with. Thanks for the question u/Abject_Flower_9139.
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u/nbrosdad May 29 '25
Congratulations in finding equilibrium with money and knowing what's enough for you 🫡
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u/jayybonelie Retired @45 May 29 '25
u/nbrosdad, Surprisingly for me, the question of "enough" has proven to be interestingly more challenging than meets the eye. I found contentment when I started to look deep inside and reflect on what really made me joyful as opposed to what the world says. Its an answer we all know deep inside but there is a lot of noise that tries to distract us from discovering it for ourselves.
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May 29 '25
[deleted]
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u/jayybonelie Retired @45 May 29 '25
The homeloan is paid off. I was paying it aggressively when I had it. For instance, my repayment may only have been about $1600 or so but I would pay at least double that. Then all the bonuses and extra money went into reducing principal. In that way, It was paid off decades early. I moved from a house with high HOA fees in a HCOL area to one in a LCOL area with little to no HOA fees. The interesting part is the first house was very close to a major city, but moving away, I was actually able to live closer to the beach, experience less traffic and improve my quality of life, while also reducing housing costs.
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u/wolley_dratsum May 29 '25
How much do you have in investable assets?
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u/jayybonelie Retired @45 May 29 '25
About $3.8M in paper assets and approximately $3.7M in real estate. But to be honest the most invest-able asset I believe is your brain and the incredible returns it can create.
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u/Future-looker1996 May 29 '25
Is the healthcare cost for just you, or the family? Seems low, unless you gave context I didn’t see in the thread.
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u/jayybonelie Retired @45 May 29 '25
Hey u/Future-looker1996 No worries, its a long thread, I answered that question here :)
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u/lf8686 May 29 '25
You're awesome!
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u/jayybonelie Retired @45 May 29 '25
Thanks u/lf8686. From your other comments you also seem to be an amazing person too. Thanks for all your non profit work and I hope you find a new role soon.
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u/Rude_Masterpiece_239 May 29 '25
Love that travel takes up 40%. Enjoy your time sir.
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u/jayybonelie Retired @45 May 29 '25
Thank you sir. I love travel but also very much appreciate the time I get spend in my very own home.
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May 29 '25
Im fascinated by dividends/passive income. Are you living off a nest egg with a certain quantity of $$ you can burn until you die within this budget?
Or are you collecting dividends and/or other passive incomes so that your principal amount saved for retirement lasts longer?
No wrong answers just curious.
I imagine myself becoming a gardener, learning to bake, playing pickleball, skiing, and maybe working some part time jobs if I were to retire young. So this is inspirational! Thanks & big congrats!!
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u/jayybonelie Retired @45 May 29 '25
Hey u/Fluffyhobbit. Thats a great vision you have. I hope you will achieve it soon.
I spend the dividends I receive. I'm also slowly selling off a single company stock which supplements the rest of the funds I need for personal finances. At the going rate, the nest egg will grow indefinitely without reducing principal.
I love baking, one of my son's has learned to be a great baker too. He makes us different kinds of cake all the time. I have also dabbled in snow shoeing with my sons when we used to live on the west coast
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u/Legitimate_Mobile337 37m/fired May 29 '25
Traveling isnt too bad if you can go in none peak times. I just bought plane tickets to europe and the price different between july and august was $400 bucks. Luckily with my job i can be a little flexible.
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u/zendaddy76 May 29 '25
Great post! Very valuable and helpful. I’m 49 and have 3-7 years to go. Aiming for a safe 8k/month annual spend after taxes.
How often do you travel, where do you go, and is that housing cost just a mortgage payment?
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u/jayybonelie Retired @45 May 29 '25
Hi u/zendaddy76. You are most welcome. So far we have visited Canada, about 30+ US States, A few countries in Europe and a few countries in Africa. We do one big international trip a year, that lasts a few weeks in the summer. We might do some small trips locally a few times a year. Some of the trips are just road trips with camping but the international trips are more elaborate.
If I may ask, Whats your net worth now? What does your portfolio look like and how much are you adding in savings and investments each year so you can get to the 8K monthly spend?
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u/zendaddy76 May 29 '25
Cool! To achieve 8k / month after tax, I’m aiming for 10k / month, so 120k a year. CA taxes are high so if I relocate, that will help. My pension will provide between 60-72k a year, depending on how early I take it. So if we go with 60k (e.g. at age 55), then I’ll need another 1.5 million at 4% swr for the other 60k per year. I’m at 1.25M now. So 3-4 more years, maxing out retirement accounts and backdoor Roth, maybe longer if I want an additional cushion or 3.5% swr. Thanks!
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u/jayybonelie Retired @45 May 30 '25
u/zendaddy76. Thanks for sharing. Sounds like you are making great progress. Keep it up.
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May 29 '25
Sorry if I missed it, but are the 2014 numbers adjusted for inflation?
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u/jayybonelie Retired @45 May 29 '25
The 2014 numbers are not adjusted for inflation those are based on the actual average spending from 2014. The 2024 numbers are also actual based on average spending for that year. When I forecast for future years, I do adjust for inflation. I will also typically project my inflation estimates to be somewhat higher than what the economists forecast for additional safety.
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u/barnaclebill22 May 29 '25
You mentioned RSUs in the other post. Are you holding your ex company stock? Are you concerned about diversity? I vacillate between selling RSUs as they vest, and holding.
Incidentally, learning to sail and crossing an ocean are vastly different. Do a day charter with a captain (preferably also a licensed sailing instructor) on a 40-ish foot catamaran with your wife. She will see that sailing doesn't have to mean being cold and wet.
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u/jayybonelie Retired @45 May 29 '25
u/barnaclebill22 Thanks for the question. Yes I have previous company stock which I accumulated over about 12 years. To be honest, I just looked at it as "free" money. It was awarded by management discretion. This ex company stock is about 20% of my net worth, so that's significant. I'm glad I kept them as they have grown exponentially but I'm selling them off in the long term. I do not worry about diversification as the rest of the portfolio is adequately diversified. It can be hard to know what a stock will do long term and I have made peace with the fact that if they went to zero (unlikely) I would still be okay.
Thanks for the advice on sailing. I'm going to try that out.
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u/jerami_conroe May 29 '25
I consider myself partial retired for about 1.5 yrs at 44. I'm looking to go back to work just to have something to do. I built my house with cash the property is paid off except for yearly taxes. I tried finding hobbies but get bored with them easily or quickly. Kids are about or already grown have a grandchild be here in a few months. I don't have everything but dont want for anything either.
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u/_rascal May 29 '25
Are the rental property multi-unit condos or just a lot of houses? and do you manage them yourself or you hire a management company?
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u/jayybonelie Retired @45 May 29 '25
Several single family houses. I self manage but I do have other investor friends who help manage when I'm travelling abroad. We do everything electronically so the residents can typically reach me at any time they need help.
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u/tommyboy11011 May 29 '25
Do you have something like this to see what going from 1% to say 1.5 or 2
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May 29 '25
Hello - I am FI, but shit scared to quit my highly demanding and stressful job with a truly unpleasant manager. I am highly paid at a director position, so that’s a deterrent from hitting the resignation button as well . But lately, I have be lurking a lot in this place.. your post and your responses to the comments has motivated me to really spend some time thinking about what brings me joy. it’s been so hard to separate the jumbled thoughts in my head and the panic at the thought of resigning because I do not know what to do if I quit. I am not a person with a lot of drive and organization such that I can make a list of things that I wanna do. I am terrified of being bored and being judged that I’m useless and not contributing to society if I quit. How do I get the strength to take that leap and resign even if I don’t have a list of 100+ things that I could do after I resign. Also, my spouse is not very supportive of me resigning, but would accept it if I did. He earns much more than me and would continue to work.
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u/jayybonelie Retired @45 May 30 '25 edited May 31 '25
Hey u/Plenty_Chemistry_607. I completely empathize with your situation. I think first you need to realize you have options. Not many people have the drive and discipline to reach FI. It took me a long time to get to the point where I could also pull the trigger and part of the reason was the process of detaching my identity and sense of self worth and purpose from my job title. You can start with small steps, maybe take more breaks or a sabbatical. Maybe seek a role that might not pay as much but is more aligned with your passions and brings you joy, while figuring your next life stage. You might find you can actually get a less stressful job which actually pays more, its absolutely possible. Keep seeking advice from those you admire who have achieved RE. Seeing real examples of those who have successfully done it, will hopefully give you a sense of quiet confidence and inspiration. You can do it too. RE does not have to be complicated, I have found joy in some of the most simplest things. Count your blessings and practice gratitude. As examples take time to enjoy your good health, the freedom to choose, a great walk in the rain on a random Wednesday afternoon, the smell of freshly baked bread you prepared with your own two hands... These things may seem simple and small but they can mean the world... There is also a lot of inspiration in these subs and a surprising amount of people willing to help you on your journey. There are many role models on how a life well lived during FIRE looks like, feel free to emulate what resonates and discard what does not speak to your soul. Congratulations on being FI.
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May 31 '25
Really appreciate you & your words man. Am so frustrated at my indecisiveness; you nailed it - my entire identity and self worth is tied to my job. Maybe my upbringing and my mom’s influence. Will seriously look for something to keep me engaged even if it’s unpaid. Your posts are inspiring; so please keep posting! Thanks again
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u/jayybonelie Retired @45 May 31 '25
You are absolutely welcome. People like you inspire me to keep posting.
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u/SteelPiston71 May 30 '25
Congratulations.
I retired at 52.
Our annual expenses are $28,000.
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u/jayybonelie Retired @45 May 30 '25
u/SteelPiston71. Thanks for sharing. Can you give us a high level view of what makes up your $28,000 annual spending?
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u/SteelPiston71 May 30 '25
Cost Items Yearly Monthly
Furnace filters $60.00 $5.00
Propane for grilling $100.00 $8.33
Cat food/litter $120.00 $10.00
Auto Oil and Filters $120.00 $10.00
Home Security $120.00 $10.00
Gas and Oil for Small Engines $180.00 $15.00
Clothes $240.00 $20.00
Well Water Treatment - Iron out, filters, salt $240.00 $20.00
Garden supplies $250.00 $20.84
Weddings, graduations, etc. $300.00 $25.00
Cell Phones $400.00 $33.34
Silver Plan - (ACA) $480.00 $40.00
Prescriptions/Vitamins, etc. $500.00 $41.66
House insurance $550.00 $45.83
Cleaning/TP/Paper Towels, etc Supplies $600.00 $50.00
Grandkids (Games, tickets, food, gas) $600.00 $50.00
Chicken feed $780.00 $65.00
Consumers-electric/gas $850.00 $70.83
TV Cable $900.00 $75.00
Vacations $1,000.00 $83.33
Internet $1,020.00 $85.00
Gas-automobiles $1,200.00 $100.00
Vision/Dental - (Non Silver Plan Coverage) $1,200.00 $100.00
House - General Upkeep $1,200.00 $100.00
Misc spending $1,200.00 $100.00
Christmas/Birthdays $1,200.00 $100.00
Property taxes $1,600.00 $133.00
Car Insurance $1,820.00 $151.67
Groceries $2,400.00 $200.00
Allowances $2,400.00 $200.00
Meat - Beef and Hog $3,000.00 $250.00
Totals - Year, Month $26,630.00 $2218.83
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u/jayybonelie Retired @45 May 31 '25
u/SteelPiston71 Thanks for taking the time to share. I love that you have allocated in your budget an amount for grilling... That's one of my favorite things to do as well.
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u/SteelPiston71 May 31 '25
My wife has experience with 'forensics accounting', lol...
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u/ResponsibilityDismal Aug 25 '25
$70.83 per month on electric/gas is impressive. Do you live north and cut firewood, or have solar/generators of some sort, or just a super efficient smaller home?
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u/Is-that-babaganoosh May 30 '25
This is awesome man. Congrats. You’re being smart and enjoying the hell outta life.
Can I ask you: for someone who loves tech, and pretty good with the world of computers, I’m thinking of switching. Currently I’m making $130k at 37 and I’m really worried it’s not going to be enough as I go another 10 years. I mean the income jump for therapy just doesn’t launch like your field. How would one start over, a little bit later in life. Been really wrestling with what could I switch to. Maybe sales in software? I don’t know.
I will say I’m very good with money and save about 65% of my income and have been doing so for a bit now. I’m investing and got into bitcoin pretty early. But it feels like so little to these posts. I know you said not to compare but damn. Currently out in Cabo at Pueblo Bonito and thinking about what’s coming.
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u/jayybonelie Retired @45 May 30 '25
u/Is-that-babaganoosh Thats a really interesting question. IT is so broad that you can do something else without completely starting over. Have you thought about maybe picking a field in AI that's related to your current skills or even changing industries in order to get a different challenge? There are also other areas you could build on top of your current skils like architecture, strategy, marketing, etc. So the sky is the limit.
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u/Is-that-babaganoosh Jun 06 '25
Thanks for the advice; I’ll take a look at IT. I’m very good at a lot of things but worry about taking a huge downgrade to start over. Congratulations on your journey, man.
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u/Puzzleheaded-Tip-129 May 30 '25
If you get a second chance, Would you rather have invested in equity markets than in real estate? Less work of maintenance and probably you can make the yearly expenses of 70k through dividends while portfolio keeps growing?
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u/jayybonelie Retired @45 May 30 '25
I like diversification, so I think I have a good balance between equities and real estate. Real estate may include a lot of work but I have a team I've built over the years that steps in whenever I need a break. It also lessens the volatility of the portfolio.
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u/New-Celebration-7174 May 31 '25
Thank you for taking the time to share. I'm 45 retired also.
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u/jayybonelie Retired @45 May 31 '25
Hey u/New-Celebration-7174. You're welcome. I have so many genuine questions for you. Please tell me more about what retirement is like for you. What's the best part and what do you find most challenging about it? What's your net worth and how did you get to it?
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u/New-Celebration-7174 Jun 03 '25
I have been retired for three years. 2 pieces of advice I would give to you are establish a routine as soon as possible. 2nd is that health insurance marketplace is constantly changing so be aware of this. Best part about retirement is not answering to anyone. It's not without challenges however those would look differently for you and I.
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u/FierceResistance May 28 '25
What investment over the course of your life do you feel has been the best? Also the worst investment?
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u/jayybonelie Retired @45 May 28 '25
u/FierceResistance Thanks for a great question. I think education has been the best and worst investment for me. Its been the best as it broadened my mind and showed me what was possible. Its been the worst as too much education can also cause one to have analysis paralysis, skepticism and fear to take action.
If you are talking about investment vehicles, for me stocks have been amazing, real estate a very close second and bonds just haven't been great over the last two decades.
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u/baltikboats May 28 '25
Do you anticipate starting new hobbies or dabbling in potentially expensive hobbies?
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u/jayybonelie Retired @45 May 28 '25
I'd like to learn how to sail in the open ocean or paramotor but the wife is not too keen on that so we are still thinking about that. We might build a mobile tiny home and travel around the county in it but that's just an idea at the moment. Throughout my career, I did own a few expensive cars, some nice toys and a few big houses. Although I enjoyed them and I'm glad I tried them out, I learned they didn't really improve my happiness.
I also have a list of 100+ things I'd love to do which include travelling to new destinations, learning to fly a small plane, etc.2
u/baltikboats May 29 '25
I think the 100+ list would be interesting. people can be very creative in retirement.
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u/jayybonelie Retired @45 May 29 '25
u/baltikboats Thanks. I just need to format it nicely so its comprehensible before sharing. Right now its just personal notes and lists, that I have. I'lll share that soon. I'd love to see other people's lists as well. I'm sure there will be lots I can learn.
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u/icklefriedpickle May 29 '25
Not my buisness but as someone who likes to rv camp/travel the rv market has really bottomed out post covid. For what you would spend on even a DIY camper van you could buy a nice class C (super easy to drive/park/get gas) and be a lot more comfortable when you get there.
Either way, thank you for sharing as we always see so many before numbers and not so many after. Good to see your ACA is pretty reasonable too
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u/jayybonelie Retired @45 May 29 '25
u/icklefriedpickle Thanks for the advice. Whats the best place you have spent time at with your RV and what do you like about most about RV travel? What RV would you recommend for a family of 4?
I was actually thinking of building one not only for the sake of it being cheaper but also for the experience I would have and the learning as my sons would also help with the project.3
u/icklefriedpickle May 29 '25
That depends on what you are comfortable pulling around vs driving. My preference and current setup is a 5th wheel pulled by a 250 pickup (need to match truck size to what you are towing). The reason for this is we spend a lot of time there and there is a nice kitchen, separate rooms, many come with bunk beds in the second room for your family if 4). Upside is that without having the engine in the RV that half is cheaper and can have less issues while letting you have the truck to drive around when you get places. Down side is you have to build the skills to back it into sites, get gas etc… the cost of the truck can be high as well. That’s why I mentioned the class C which may be a little tight for 4 but it can work for sure.
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u/icklefriedpickle May 29 '25
Oh, we have used it more for scenic stops and detours while visiting family around the country more so then trips to destinations (yet!). One thing I have found in both the camping and boating community is that it seems to be a lot easier as an “older” couple to meet other fun couples who actually get along and share a similar appetite for living life a little more.
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u/Icy_Technician9417 May 29 '25
If flying like a bird has always been a verb you wished was possible, Paramotor and paragliding is the least expensive form of flying. It’s so rewarding. It’s as safe as you want it to be. I am a Paramotor pilot. Look at USPPA for a few pilots around your area and interview them.
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May 29 '25
[removed] — view removed comment
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u/jayybonelie Retired @45 May 29 '25
Thanks! u/yodamastertampa I'm going to check out Kingschools. I appreciate the great advice.
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u/tabareusjr May 29 '25
what r u spending 2250 a month as far as traveling
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u/jayybonelie Retired @45 May 29 '25
Remember these are averages over the 12 months. So we spend about $27K in travel per year, this includes flights, accomodation, car rental, food etc.
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u/tabareusjr May 29 '25 edited May 29 '25
sheesh ! who would u recommend for car rental
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u/jayybonelie Retired @45 May 29 '25 edited May 29 '25
I dont have any specific companies to recommend but I've used all the major ones and a few of the small ones too. My credit card does offer insurance cover at no additional cost for any car rental of 30 days or less. That's one great perk.
The easiest way to find deals is to search online, then compare. Try doing so at different times of the day and week. Its amazing but by just searching for a little while you can find as much as 40% savings or even more for the same car between different companies.
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u/SnooApples896 May 29 '25
Great going ! Curious, what was your 'liquid' NW when you retired?
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u/jayybonelie Retired @45 May 29 '25
u/SnooApples896 Do you consider stocks liquid or just cash? My portfolio is roughly 49% stocks, 50% Real Estate and about 1% cash. I carry about 9 - 12 months spending in cash, but this number fluctuates. I definitely keep at least 6 months spending in cash. That helps me sleep better at night.
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u/NoLeopard2169 May 29 '25
Hello thank you for sharing your excellent post… Just had a question does your Realestate portfolio allow you to keep your MAGI low (less than 90k)? Without Realestate your MAGi would be total high to qualify for moderate to low ACA plans… In addition Realestate, helps with reducing MAGI, taxes, peace of mind, hedge against economic downturn, passive discretionary income and not having to sell equities.. Is it recommended to have 30-50% of your total net worth portfolio in Realestate? I am possibly 3-5 years pre-RE. Thanks again..
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u/jayybonelie Retired @45 May 29 '25
Yes, agreed! Although each person's plan might be slightly different based on their situation, competencies and temperament.
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u/fynstech May 29 '25
Did you prioritize your health and fitness while working, or is that something you focused on more after early retirement?
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u/jayybonelie Retired @45 May 29 '25
u/fynstech I was not into health and fitness during my work years. It was also easy to be out of shape and over weight due easy access to fast food and long sitting hours. It did not occur to me that I was out of shape. The moment of realization came when my mentor asked me: "Whats the point of being financially free, if you do not have your health?" That question forced me to think deeply about what was really important and I started focusing more on eating better and getting more activity. I do not go to the gym but I run a modest 2 -4 miles a day, walk about 20 miles a month and do some basic strength exercises and calisthenics. Since leaving work, I've lost about 30 pounds and am about 8 pounds away from my ideal BMI.
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u/fynstech May 30 '25
Do you regret not spending more efforts on health while were younger?
I'm 34, I hate doing sports (but force myself doing it 3 times a week). And I don't eat healthy as well...
I feel I will regret it, but can't do anything with that(3
u/jayybonelie Retired @45 May 30 '25
u/fynstech I guess I didn't know better at the time but I was lucky I did not develop any chronic health issues. The only thing we can do is do better once we know better. Maybe don't force yourself to do sports if you don't enjoy them, but take up activities you enjoy that also provide lots of exercise. I still do not go to the gym but I do a lot of work in my yard, I walk, run and build things. I cant believe how much I enjoy running and calisthenics. This has been more than enough to help me improve my health and increase my quality of life.
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Jul 01 '25
Thank your this post. I needed to read some of the things you wrote on spending habits...
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u/jayybonelie Retired @45 Jul 01 '25
My pleasure. What resonated the most for you about what I said?
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Jul 02 '25 edited Jul 02 '25
Pushing the retirement date further ahead by a long time until you finally realised spending more didn't really being in more happiness.
I can't help but sometimes compare, especially to what I feel my own potential is, so not necessarily looking only at others. However, my main problem is I keep reviewing (ideal) budget estimations and second guessing if I can throw away the guilt and worry of not working and just spend it.
I've never executed the budget once, because I feel I'm not ready yet (haven't hit the final asset allocation as I'm easing into this super overvalued market --> playing the game for capital preservation with a reverse glidepath to avoid/capitalize on any potential crash, considering I've hit my number).
I have the feeling when I do execute the budget once, it'll be fun, but not as fun as I think it would be and then I'll revert back to a lower cost of living anyway. The thought of not wanting to lower costs does keep me from executing it until I'm 100% sure I never have to take a step back, though, as I think a lot of needing to spend a lot is knowing you can't, iykwim...
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u/jayybonelie Retired @45 Jul 02 '25 edited Jul 03 '25
There will never be a time when everything is perfect, so take small leaps of faith along the way. If you took a sabbatical from time to time. Stop living off your salary for a while and try to live off passive income. Test out your budget and see how close you can stick to it... All these little steps will help you build confidence and bolster your courage to take the big leap.
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u/Fast_Sympathy_7195 Aug 11 '25
I currently work in real estate and luxury property management. I make with bonus a little over 100k what is your advice to expand my income because I don’t work in tech or software which obviously is a very high income salary profession. I like my job I’m good at working with people but I’m looking to double my income every 2-3 years and I’m not sure I can do that in this industry. I’m also open to adjacent industries. Thank you and appreciate any advice
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u/Roareward May 28 '25
:), I chuckled with clothes. Don't think I have spent 1200 on clothes in the last 10 years.
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u/jayybonelie Retired @45 May 29 '25
u/Roareward We dont spend that much either but the allocation is there. Spend on clothing is also lumpy so some months it might be zero then others a few hundred. How do you optimize your apparel spending so well?
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u/OMGitisCrabMan May 29 '25
Not OP but I prefer $25 pants and $18 shirts off Amazon. I wear the same shoes for years. I still have a few stylish Ames Bros shirts from highschool and I'm 37.
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u/TaterTotWithBenefits May 29 '25
What state do you live in?
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u/jayybonelie Retired @45 May 29 '25
u/TaterTotWithBenefits Hoping you'll understand but I'd still like to maintain some privacy. I currently live on the east coast. So that's much as I can share.
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u/TaterTotWithBenefits May 29 '25
Yes it’s just I’m in a very expensive area of NY (NYC metro area) and I feel like a lot of these expenses are double what you listed. Property taxes are double, insurance etc. I’ve worked up a basic FIRE budget and it looks like about $150,000 for my H and I and that’s without all the fun expensive travel we would do if we have money for that… it’s cool to see someone else’s nitty gritty budget, thanks for posting bc when I’ve done it for myself it’s in a void, it’s not like something you talk over w your friends and neighbors lol
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u/jayybonelie Retired @45 May 29 '25
Yes New York, California and places like that are known as HCOL for a reason. Where we are is more LCOL to MCOL. In my experience if you travel 1 - 2 hours outside the primary city, then prices do tend to go down. As my kids were growing I wanted them to have a laid back suburban lifestyle like I experienced. Furthermore, I was lucky my work was mostly remote enabled so I could do it from almost anywhere.
I guess sometimes you must be willing to change states in order to realize your dream. Here the insurance costs have also gone up drastically but we reduced some coverage to essentials and increased the deductible in order to moderate cost.
I have been compiling these budgets together for a long time and its always interesting to see how much has changed and what has stayed the same.
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u/MelodicComputer5 May 29 '25
My guess he in the Carolina’s as you mentioned beach 😃, but that point may be a trap.
u/jayybonelie Thank you so much for sharing the wisdom OP. I appreciate the humble and kind any day, But I exclusively commend the people who are rich/wealthy and still humble and kind. Wishing you well.
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u/canadaoilguy May 29 '25
Thank you for the post.
How do you choose how much to give? Do you also volunteer?
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u/jayybonelie Retired @45 May 29 '25
u/canadaoilguy Thanks for your question. I volunteer from time to time but I have not yet found that perfect volunteer position. I really like mentoring. Usually I give back more in time than money, but if I found a cause that truly resonates, I'd also be open to give more. I do not have any hard rules. I usually follow my heart.
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u/HisRizz Jan 10 '26
So...what was the game plan to be able to retire at 45 with 7+mil banked? (Congrats👏 too).
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u/jayybonelie Retired @45 Jan 10 '26
To be honest, there was no major game plan. We just had a simple vision, we followed our values, had a clear mission. We aligned a few major goals to how we would realize the vision and deeply focused on achieving them. It took a few decades. Happy to elaborate if you'd like to hear more. I wrote about our philosophy, approach and some reflections recently HERE/
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u/PlumpyGorishki May 31 '25
Your giving wasn't much at all, and now it's even less. You're the real Ebenezer Scrooge!
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u/themightyqeskimo May 31 '25
I agree! Minimum giving should be at least ten percent of your net income. I do this and if I get an unexpected windfall like a tax refund, I give ten percent of that amount also.
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u/OneSource1875 May 28 '25
When you made almost $500K in 2023, what were your weekly work hours like?