Budget Be Damned

[sudarkoff]

Thanks for posting! I'm curious if you noticed a pattern in what causes you to spend over budget? Is it discretionary spending you can cut back in a pinch, or was the budget estimate a bit off?

[rick bertram]

Nice post sailorboy

[ocean.jedi]

this is bad logic. What you have has nothing to do with what you spend, unless you are using the famous 4% +/- rule for pension withdrawal, and agree to spend no more than that on your life per year. Otherwise, income driving spending is not going to work in a down market. in an boom market, if you don't increase your net worth you are not going to have assets in a down market.

[Captain Max1]

Interesting evaluation. Thanks for sharing. Wondered if you could share your reasons for exceeding your budget. Unforeseen events, miscalculations, or other? Anything you would do differently?

[sailorboy1]

I have posted my monthly costs the past 30 months. In each I feel I provide enough details for others to adjust for their budgets to match whatever cruising fantasy desired.

AGAIN let me remind people that this thread and the monthly cost threads are how i’m spent MY money.

[sailorboy1]

Relax

We are all boaters here and crazy

It’s not a competition

[a64pilot]

Originally Posted by ocean.jedi

Otherwise, income driving spending is not going to work in a down market.

Not sure who you are responding to, but in theory you’ve already planned for that, and don’t decrease spending as the ups and downs average out over time.
But, assume an historic event, ala the crash of 29, then yes, I’d decrease spending because even though I’ve planned and am covered for that event, my nature is conservative. But you know what, I think my purchasing power may be the same. When times are real hard, you get more for your money, “deals” are more widespread, everything is on sale.

What I did I guess was to determine what my assets would provide with a real conservative return, your 4% as an example.
That drove the budget, not the reverse. So far since Retirement we have stayed within budget, and have had some significant life changing events to cover, but we have been able to do that because the budget is realistic, and in fact we stay under it every month, so that when that oh crap moment comes, we have a cushion to deal with it.

If you budget X amount of money every month, and spend that amount of money on average every month, yes, there will be a day where you say to heck with the budget, cause unplanned stuff happens, and happens with some regularity.
It’s no different than how you have been living your whole life, most people have a set income when working, that they have to stay within that amount, if they regularly spend all their income, likely before long they will be carrying debt.
Then they not only have to live on less, but have live on an amount that allows them to service that debt, many chose not to do that, and those don’t Retire, certainly not early Retirement.

Those that do and regularly spend over the planned amount I assume go back to work at some time.

[Paul L]

Originally Posted by sailorboy1

I have posted my monthly costs the past 30 months. In each I feel I provide enough details for others to adjust for their budgets to match whatever cruising fantasy desired.

AGAIN let me remind people that this thread and the monthly cost threads are how i’m spent MY money.

You'd really need to include pictures in your budget to match my cruising fantasy

[sailorboy1]

Originally Posted by Paul L

You'd really need to include pictures in your budget to match my cruising fantasy

Somehow I think there may be laws against that

[Trimaran Ken]

Originally Posted by daletournier

Exactly, and this is where I find fault with the "FIRE" movement.

The basic principal of FIRE is that the more you save now, the better off you will be later.

It is extremely hard to argue against this philosophy. I have done it from the time I was 17 years old until the time I retired and beyond.

What I think you are taking exception with is numbers they recommend. They say, save 25 times yearly expenses and then retire and withdraw 4% a year forever. This may work out for some people, but may not, especially if inflation kicks up big time.

If you have a realistic option of going back to work should the numbers not pan out, I see nothing wrong with giving it a try, but I would want to be seeing the investments growing larger each year as a buffer.

A lot of this is about a person's tolerance for risk. If you think there is no risk, then you are a fool.

Ken
===

[letsgetsailing3]

Originally Posted by Paul L

You'd really need to include pictures in your budget to match my cruising fantasy

This isn't that kind of site.


Well, other than boat porn.

[cyan]

Originally Posted by Dark Horse

Sure that is the free market system. It is also why the kids are pooched. No wage increases. Few good paying jobs.

The US minimum wage was $3.35 in 1985, which is worth about $7.80 today.
The current minimum wage averages $8.48 among all states.
Last year, wages increased more than inflation, a free market response to record low unemployment.
In what country are kids pooched?

[Trimaran Ken]

Originally Posted by Dark Horse

Few good paying jobs.

There are currently about 3.5 million job openings in the US, many of them are "good paying". Companies are desperate for qualified employees and in many cases are willing to pay you while they provide training. Anyone who is willing to work for it can get a reasonable job.

[sailorboy1]

I’m remembering why I stopped going to the Early Retirement forum

[a64pilot]

Originally Posted by Trimaran Ken

There are currently about 3.5 million job openings in the US, many of them are "good paying". Companies are desperate for qualified employees and in many cases are willing to pay you while they provide training. Anyone who is willing to work for it can get a reasonable job.

Well I’d tell you that the good paying jobs has shifted, there are pretty much no manufacturing jobs anymore, or way fewer than there were, and they don’t come with those Union Retirements anymore.

Our kids are growing up in a different world, what used to be, isn’t anymore.