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Subject:  Re: How low can you go? Date:  1/18/2000  10:25 AM
Author:  hocus Number:  2292 of 876377

"Easily Forgotten Budget Items for the Early Retiree" seems like a good topic for the FAQ.

In developing my own Retire Early budget, it's the expenses that don't come up on a regular basis that have caused the most problems. For example, there is the issue of purchasing a car. I own my car and thus do not have a category for mortgage payments. Nor have I had to purchase a car in the time that I have kept budgets.

But at some point I am going to have to break down and pay out a lump sum for a used car to replace the one I am now using. I need to have this amount covered for life before I execute a decision to Retire Early. I don't remember off the top of my head how much we allocate to this each month--my recollection is that it is about $200. This would produce a fund of $2400 a year, and every four years (or so) there would be enough to purchase a replacement used car. I also provide an inflation factor in my budget, so that the $250 figure can be adjusted over time so that it will always provide $250 a month in today's dollars.

Any thoughts that others have on how to handle these occasional expense accounts are welcomed. Home repair falls into this category (it doesn't take place every year, yet can be a big number when it does. Vacation is another possiblity (if you do not plan to take vacations often). Furniture is another possibility, but we hope to cover that largely by keeping the expense to a minimum through yard sale purchases, etc.

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