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Author: WayneOwl Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5069  
Subject: Doing It .... Date: 8/8/2005 1:27 PM
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Howdy:

As an intro, my name is Wayne and I just recently came across this Discussion Board. My thanks go to GumNaam over on the Foolish Collective for the 'tip'.

I'm Canadian so my perspective may differ somewhat from most of you folks. On the other hand, Money is a Universal Language so I hope to add worthwhile input. With luck I'll gather some useful stuff as well.

Without further ado, I inform you that I have done it. I Retired early, that is, just shortly before my 58th birthday. I do pick up a little additional cash now and then from a bit of consulting. For the purpose of FIRE, I view that as a bonus ( intermittent and unpredictable ) as that money wasn't and isn't essential to my plan.

I noticed some discussion about how basic expenses change after retirement. The one major change I made was moving out of a fairly large city to a more countrified location about an hour and a half away. After what is admittedly only a short period of one full quarter, this is what I have found.

“Automotive” includes a 6 yr old sedan and a small RV and both are fully paid for.
Overall, my expenses for fuel, maintenance and insurance have decreased by 55%

“Food” includes home, 'at work' lunches, and coffee breaks that were/are not part of “Entertainment”. I find I now have sufficient time to prepare more ( and probably better ) meals at home and to shop for 'quantity discounts'. Overall, I am saving about 40%.

"Clothing" includes purchases, dry cleaning, and laundry.The saving so far has been ablut 80% since I have not had to buy much.

I spend the same on “Entertainment” and "Gifts", although some of the activities are different. After all, what's the point of it all if one is not enjoying life, eh? By the way, I am single with no dependants. I expect ( hope ? ) "travel expense" may rise if my investments do better than I can estimate 'with safety' at this time.

For about the last 5 years in the City I was renting. Last year I bought the current place with a down payment of 25% and an ARM interest rate so low at 3.65% that it is almost 'silly'. Interest rates could go up significantly and the mortgage would not become a hardship. It's an older house and while not a 'palace' it certainly is no 'dump' either. For a person like myself who has never been much for “keeping up with the Jones's” it is more than adequate. On an “all in' basis of home, insurance, utilities, phone, HS internet, satellite TV, and a bit of equity-building, the overall monthly expense is down by 55%.

Medical and Health Care Insurance no longer have an 'employer contribution' so they are up by 30%. Those are about the only items that have increased.

Income Tax should drop considerably but that won't be knowable until the end of the year when I can compute my ROI.

Overall, at this point I'd say that "basic living expense" is about 40% lower.

That's about all I can think of posting for now; as I am not even sure where to go from here.

Wayne
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