Quote:
Originally Posted by bjl584
Is there a general rule to follow when figuring out the 25X expenses rule? I was trying to figure this out for myself, and I realized that as I pay down my debts and eliminate expenses (mortgage, car payment, student loans, etc.), that this number is going to go down quite considerably.
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To each their own.
Yes some expenses go down or disappear. Yes some expenses go up. Yes some new expenses appear. Yes some expenses go away, come back, then go away again.
Disappear/ Go down: mortgage
Disappear/ Go down: lunches for work
Disappear/ Go down: gas to work
Disappear/ Go down: clothes to work
Go Up: Health care
Go Up: Travel
Go Up: Golf/leisure activities (24 hours is a long day)
New expenses: Lawn maintainance (might be too old or frail to do physical labor)
New expenses: senior citizens club
New expenses: grand kids
appear/disappear: car (show me a car which lasts 30 years in retirement)
appear/disappear: new roof on house
appear/disappear: new HVAC for house
appear/disappear: new driveway for house
There are lots of expenses which occur one time every 10-20 years, and if you did not pay them before you retire, you will need to pay for them after you retire.