Your target retirement capital and income

Any chance of a quick run down on your expenses for the year? Pretty impressive living on only 25k

 

Any chance you could post your spreadsheet with these figures

 

Yes, definitely. I ran the numbers but have not had a chance to look at them yet. In my mind, the bigger numbers are going to be groceries, transport (commuting) and utilities. It will be interesting to see if I am right.

 

Without kids and mortgage we would be under $25k, with 2 kids and mortgage our expenses are roughly just under $35k.

 

That's really good with kids. I know people who spend that just on school fees!

 

Low income so we get a discount on school fees too, I think it costs us $100/year each.

 

@Perthguy to live on so little you don't happen to hot bed in a display home

This bold new superstore in West Auckland is fast coming together for a ‘soft and slow’ opening on Monday 30 March 2020. The Nido sign is proudly displayed on the building which rises above its surroundings. This development is a tribute to the vision and sacrifice of Vinod Kumar, the key person behind bringing this 10 year plan to the start which is now just 17 days away!

This store will be like no other in NZ. It has a 170 sqm house built inside (fitted out with Nido products); a large commercial office space; a special technology space; 100 rooms displaying different furniture styles; advanced technology; a play area for the kids; and, of course, a Café which will seat 340 people.

 

I did this in a hurry and I know there is at least one error: no car insurance so I'm not sure where that has gone. Will look into it when I get a chance.
Own home
2 adults
2 mobile phones
2 cars
no personal debt

Clothing 174
Computer 212
Drivers Licence 299
Entertainment 337
Exercise 400
Bank fees 15
Groceries 4575
Health 42
Home insurance 779
Household 242
Interest 75 (accidental late credit card payment)
Internet 733
Medical 1908 (dentist and medical)
Mobile Phone 202
Motor vehicle maintenance 133
Petrol 1769
Rates 1641
Home repairs 21
Takeaway food 25
Takeaway lunch/coffee 2585
Transport 1083
Travel 1366
Utilities 4024
Vehicle Registration 1471
Total 24113

AMA

 

Interesting to see you spent about 10% of your annual budget on takeaway lunch/coffee. Not having a dig, I also like like spending money on lunch/dinner and usually eat yum cha for lunch.

 

Update: found the car insurance.
Own home
2 adults
2 mobile phones
2 cars
no personal debt

Car insurance 370
Clothing 174
Computer 212
Drivers Licence 299
Entertainment 337
Exercise 400
Bank fees 15
Groceries 4575
Health 42
Home insurance 779
Household 242
Interest 75 (accidental late credit card payment)
Internet 733
Medical 1908 (dentist and medical)
Mobile Phone 202
Motor vehicle maintenance 133
Petrol 1769
Rates 1641
Home repairs 21
Takeaway food 25
Takeaway lunch/coffee 2585
Transport 1083
Travel 1366
Utilities 4024
Vehicle Registration 1471

Updated total 24483

 

Definitely a good observation. I haven't actually sat down and looked at these numbers yet. Too much going on. I would normally buy coffee and lunch on every work day. Coffee ranges from $2.50 to $4. Lunch ranges from $5 to around $14.

I work (on average) around 230 days per year (I think). So that would mean I spend (on average) $11.23 for every work day.

I also spend $1083 on public transport commuting.

If I took my own lunch and cycled to work, I could save $3668 but would need to factor in taking my lunch for home (say $5), so back to up $1150 and also quit coffee. Spoiler: I'm not quitting coffee, so I'm back up $575 (ouch).

Takeaway lunch + coffee ($2585) vs lunch from home + coffee ($1725) is only $860 a year difference. Factor in my time to prepare lunch and I would say it's a break even.

Switching to cycle commuting would have a much greater benefit than the $1083 saving. I current barely exercise and cycling is a good 40 to 50 minutes a day and it takes around the same time as commuting. So I'm basically getting free exercise (from a time commitment point of view) and saving money at the same time. win/win.

)

 

@Perthguy I want to know how I can reduce our clothing and shoes budget to your amount. We have dress codes where we both work and op shop supplies wont cut it, especially shoes. Have you factored in your partner's lunches and coffee too?

 

When I worked in my office guvvie job I usually wore op shop clothes (except shoes and undies). I have wardrobes full of gorgeous, very smart op shop clothes I couldn't justify buying new. Shoes and most other stuff usually Kmart except for the odd treat.

 

For work, I buy quality shirts when they are on sale. A few years ago you would have seen clothing a lot higher but then low again after that. It's important to look after the clothes too. For my work shirts, quality poly cotton, cold wash with cold power (hot water breaks down the fabric) and only use fabric softener ever couple of washes (fabric softener breaks down fabric). Also, I run 4 weeks of work shirts 12), which means they last for a long time. It's a bit of an intial cost but they last about 10 years.

I bought my last lot from Myer. Ftom memory $75 shirts were around $30.

For trousers I just buy them on sale from myer or target. Good quality poly cotton then only wash them when needed instead of every week. I run a few pairs like with shirts. They last longer.

For shoes, I bought nice work shoes half price at myer then didn't look after them and wrecked them in a couple of years. I was very annoyed with myself because they were nice shoes. Men should be running 2 pairs of shoes because they need time to dry properly between use or they get stinky and wear out faster. My current shoes are airflex I pickedup for $40 new. They are nice but they are wearing out faster than they should.

To get to work and home, I wear sneakers. I find them more comfortable than dress shoes and it makes the work shoes last longer.

Yes. My partner works out of home so eats out of the grocery spending. Having 2 people working office jobs would increase our spending a lot.

Also doesn't drink coffee so that's a big saving.

Which reminds me, neither of us smoke and we rarely drink alcohol. That cuts down spending a lot.

 

I have a $7 polo shirt in my locker to throw over my other sleeveless tops when I have to go up onto the oval or the basketball courts. That would be the most pleasant part - 40 degree heat in the sun but with a nice breeze after midday. Back in the classrooms, only half of which have AC, we have to wear business attire these days which isn't available in the localish op shops. The "nice" suburbs to the east of mine dont have any op shops, and those in the poorer bogan suburbs north, further away from the CBD, dont have any clothes there for people who are actually employed.

 

Would you classify Bin 389 as a necessity / quaffer?

 

In my books, it is essential for me to sustain life .