Posted by Tim Stobbs on September 4, 2008
Frugal Trader over at Million Dollar Journey just posted his annual expenses. So I thought what the hell, let’s do a little comparison between us. This is mostly for entertainment value and also to show frugal is a completely a personal decision.
Expenses (on an annual basis): FT numbers are first and mine are second.
Housing Expenses: FT $24,500, CD $22,050
- Mortgage: FT $14,300, CD $13,300
- Property tax: FT $3,000, CD $3400
- Maintenance/Furnishings/Upgrades: FT $3,600, CD$3000
- Utilities: FT $3,600, CD $2350
Car Expenses: FT $6,280, CD $2450
- Car payment: FT $0, CD $0
- Gasoline: FT $3,600, CD $1400 (also includes bus pass)
- Maintenance: FT $2,400, CD $1000
- Registration: FT $280, CD $50 (license only, registration is included in insurance)
Home Essentials: FT $2,010, CD $1430
- TV/Internet/Landline phone: FT $1,440, CD $1300
- Cell phones: FT $570, CD $130
Food and Booze: FT $7,800, CD $3600
- Groceries: FT $6,000, CD $3600
- Entertaining/Eating Out: FT$1,800, CD $0 (Included in spending below)
Insurance: $FT 3,590, CD $2000
- Home: FT $460. CD $800
- Automobile (for 2): FT $1,750, CD $800 (one car)
- Life: FT $420, CD $400
- Disability insurance: FT $960, CD $390
Spending: FT $3,600, CD $7000
- Personal spending/shopping: FT $3,600, CD $7000 ($3800 us, $2800 kids, $400 misc)
Other Expenses: FT $3,200, CD $1500
- Charity: FT $2,000, CD $0 (This comes out of spending above)
- Gifts: FT $1,200, CD $1500
Total Annual Expense: FT $50,980, CD $40,030
Wow that was entertaining to put together. I noticed right off FT and I tend to break up our money a little differently hence some of the differences (like my spending is higher, but FT has a eat out catagory). We both don’t have childcare costs (I won’t for a while until my wife decides to stop running the daycare out the house). Also the daycare requires additional insurance so I get stuck with a bit more of an expensive home policy.
The obvious differences are my food spending is cheaper, I don’t have a second car, I only have one cell phone and my utility bills are cheaper. Also I would guess on an overall basis FT give more to charity than me ( I don’t track a exact number but likely a couple of hundred dollars a year when FT is a couple of thousand).
What is most interesting to me the rest is very similar. We both spend most of our income on housing so when you pull kid costs and mortgage costs out during our early retirements we should both be able to live off a fairly low income. So there you go folks a plan for early retirement. Keep your costs down. Or you could do like Jacob over at Early Retirement Extreme and move into a trailer to save half his living costs.