First post + first question on budgeting :)

[chrisburke21]

What I did is to track my spending over a couple of months. I listed out all of my expenses over a couple of months. Then I took this list and analyzed what I could get rid of. In my case, I have gotten rid of bills like TV, a storage facility I had, a premium music service I subscribe too. I tried to remove any additional expenses I could. When I did this I was left with only housing, utilities, cell phone, student loan, food, gas, and internet (I watch TV online). This has allowed me to save a lot more money. I continue to track my expenses to see if I can identify other areas where I am bleeding money. It will take some tinkering, but soon you will be able to plug the leaks.

[EarlyRetirementJoy]

Ticker,

My husband and I made excellent salaries prior to retiring in 2011 (me at 48) and 2012 (DH at 56) respectively, consciously living off of just 25% of our combined paychecks and banking the rest. Even before our salaries zoomed, we lived on less than one income (mine, banking DH's), while still living an enjoyable life, because early retirement was always our goal. I guess the question, really, is how long you want to work? In our case, we understood that by keeping our annual run rate low, we'd reaching financial independence (FI) much sooner. Based on our own research, we landed on needing 33x our annual run rate banked to reach FI.

Have you done that yet? You might find it a useful exercise. Based on your July update, your annual run rate appears to be around $180,000, which is just under $6 million when multiplied out by 33. Are you willing to work as long as it takes to hit that number? If not, the easiest way to reach FI sooner is to simply cut your run rate.

Early retirement is the bomb by the way. Our current plans are to travel 6 months of the year. Well worth giving up a few dinners out and driving modest vehicles in the years leading up to our recent exits from corporate America.

[Christian321]

All I can say is that there are too many people out there truly struggling to make ends meet and when they read a post like this, I am sure it makes them pull their hair out.

[Ticker]

Interesting comment, what makes you think so?

[LivingAlmostLarge]

It's why the 99% is not thrilled with the 1%? LOL. I think more interesting is that some people think it's okay for the 1% to avoid paying taxes like Mitt Romney and his 13.9% tax rate. Very nice. But I want that rate too and we make way less than him.

But then again I'm for a flat tax. Everyone pay the same.

[Bella Blues]

All I can say is that there are too many people out there truly struggling to make ends meet and when they read a post like this, I am sure it makes them pull their hair out.

What? Why? The OP obviously lives in an area with high cost of living. Yes, they make more money than average but everything costs more where they live. It's not like they're spending just for the sake of spending. Their rent two years ago was $2950. He either lives on the East Coast or the Bay Area here in the West Coast.

[Ticker]

Early retirement etc

Early retirement: I'm 38 and love what I do. Have ways to go before I want to stop working and I honestly don't think I will. At the same time my work is not what most people think of when they talk about work. It is highly stressful but highly rewarding and there is no ceiling to the growth. As far as 6M goes that's a bit less then my goal for next exit. Of course you never know what the future holds

I live in SF bay area and work in high tech.

T

[Bella Blues]

Early retirement: I'm 38 and love what I do. Have ways to go before I want to stop working and I honestly don't think I will. At the same time my work is not what most people think of when they talk about work. It is highly stressful but highly rewarding and there is no ceiling to the growth. As far as 6M goes that's a bit less then my goal for next exit. Of course you never know what the future holds

I live in SF bay area and work in high tech.

T

I thought so! SF has high cost of living. My friend was renting a studio apartment for $1500 way back in 2002.

[Ticker]

Another year, another update.
I was quite wrong about the economy taking a turn for the worse, it ended costing us quite a bit of money. On the positive side financial issues have all been put to bed. Income is up a lot and expenses have either decreased or stayed the same.

House is now mostly done (remodeling) and loan is down to 600k at 3.5% for 30 years so not sending any more extra $ there.

mortgage <4000 (PITI+PGE)
kids 1500
dining 1500
groceries 1200
shopping 1000
household 1000
cleaning 150
gym 150
travel 1000


Trying to figure out what the future brings and where the economy goes next year or two.
Also looking to any good ideas on what to invest in for next few years. I think this RE cycle is again played out and its not a good time to invest there.

T.