Have we got our sums right?? Appraise our plan.

Triumph13

I still think the biggest flaw in your figures is that you are overly obsessing about keeping to a budget that's half of what you could be safely spending, even if you stopped working. If that makes you happy then that's fine. I'm definitely not saying that spending more money would automatically make you happier, I just hope you don't end up regretting not doing more when you were younger/fitter.

Spreadsheetman

Triumph13 wrote: »

I still think the biggest flaw in your figures is that you are overly obsessing about keeping to a budget that's half of what you could be safely spending, even if you stopped working. If that makes you happy then that's fine. I'm definitely not saying that spending more money would automatically make you happier, I just hope you don't end up regretting not doing more when you were younger/fitter.

It does seem to be the OP's "natural" budget though rather than a self-imposed straightjacket.

I'd agree with not putting things off for later though, good health can be gone at any time.

Sea_Shell

I don't think we are obsessing about our budget. Really to call it a budget is the wrong term. It's just us keeping a track of our spending (over an extended period) to get accurate projections to help plan for our full retirement.

If there was something we wanted to buy or do, we would, we wouldn't say we can't have/do it!!! We would spend the money on things we thought were worth it. We don't go without (well in our eyes anyway)

As mentioned above, £13k seems to be our natural annual spend, without trying to cut-back, but without wasting money either (i.e. being MSE)

Whether our pots are more than enough, or not quite enough to last for the rest of our lives, only time will tell. Having no children does focus the mind on having some reserves left in old age, as we might need to pay for homehelp, tradesmen etc. long before someone with family may have to.

I post here, not just for my own benefit, but if our situation is similar to others in that they may also benefit from following our (pre)retirement journey.

Off to sit in the sunshine in the garden with cold beer....it's a hard life!!!!!:beer::beer:

Xbigman

Although allowing for inflation has been mentioned you haven't yet put it into your yearly figures. Something I also did in the first few years I was planning early retirement. I found its best to get in the habit as soon as possible.

When you started this discussion it was 17 months ago so your upper target of 15k at that time should have been increased in April this year by inflation. I use RPI so I'd move the target to 15,495. Now you can revue the increases in your various pots in line with your new target.
Increase the target by inflation again next April to keep up to date.

Just my opinion but inflation will bite you in the bottom if you ignore it long enough.


Darren

Triumph13

Sea_Shell wrote: »

I don't think we are obsessing about our budget. Really to call it a budget is the wrong term. It's just us keeping a track of our spending (over an extended period) to get accurate projections to help plan for our full retirement.

If there was something we wanted to buy or do, we would, we wouldn't say we can't have/do it!!! We would spend the money on things we thought were worth it. We don't go without (well in our eyes anyway)

As mentioned above, £13k seems to be our natural annual spend, without trying to cut-back, but without wasting money either (i.e. being MSE)

Whether our pots are more than enough, or not quite enough to last for the rest of our lives, only time will tell. Having no children does focus the mind on having some reserves left in old age, as we might need to pay for homehelp, tradesmen etc. long before someone with family may have to.

I post here, not just for my own benefit, but if our situation is similar to others in that they may also benefit from following our (pre)retirement journey.

Off to sit in the sunshine in the garden with cold beer....it's a hard life!!!!!:beer::beer:

Sorry that I got the wrong end of the stick. It sounds like you've found your happy spot and have more than enough money to keep you there so tracking spending becomes more of a hobby than a necessity so congratulations for that. I was probably projecting my own fears about being far too tight for my own good!

Spreadsheetman

I'm just scratching my head over the OP's £13k pa budget. No matter how I try I can't find a way of getting my projected retirement household budget under £18k without making unrealistic cuts (and that is without house maintenance and car depreciation factored in).

westv

Spreadsheetman wrote: »

I'm just scratching my head over the OP's £13k pa budget. No matter how I try I can't find a way of getting my projected retirement household budget under £18k without making unrealistic cuts (and that is without house maintenance and car depreciation factored in).

Maybe she sells sea shells on the sea shore.

Sea_Shell

Spreadsheetman wrote: »

I'm just scratching my head over the OP's £13k pa budget. No matter how I try I can't find a way of getting my projected retirement household budget under £18k without making unrealistic cuts (and that is without house maintenance and car depreciation factored in).

Here's how we did it in 2017....
Bills 3381.85 (Gas, Elec, Water, Sky inc BB, CT)
Holidays/Entertainment 3038.36 (1 Europe, 3 UK) includes eating out etc.
Car Expenses 1114.61 (2 cars, Insurance, service,tax)
Groceries 2560.86 (Mainly Aldi)
Household 819.88 (Insurance, maintenance)
Health/Beauty 623.76 (includes gym and glasses)
Clothes/Shoes 320.45 (Mainly Primark)
Cash/Misc. 40 (we don't spend cash!!)
Fuel 804.19 (5000 miles p.a.)
Gifts/Cards 118.97
Bank Fees 75
Phones/Calls 166.25 (inc 1 new phone £150 - PAYG sim only)
13064.18

Sea_Shell

Xbigman wrote: »

Although allowing for inflation has been mentioned you haven't yet put it into your yearly figures. Something I also did in the first few years I was planning early retirement. I found its best to get in the habit as soon as possible.

When you started this discussion it was 17 months ago so your upper target of 15k at that time should have been increased in April this year by inflation. I use RPI so I'd move the target to 15,495. Now you can revue the increases in your various pots in line with your new target.
Increase the target by inflation again next April to keep up to date.

Just my opinion but inflation will bite you in the bottom if you ignore it long enough.


Darren

We do think about inflation, and our hope is that our overall pot will grow by 3% net of inflation, but if not, then we're not trying to protect the pot from ANY erosion. At the end of the day, it's there to be spent, not hoarded (too much!!!)

Assuming starting pot of £500k, no growth, and inflation of 2%, with a stating spend of £15k, calculators show we'd still have £135k left after 20 years. So every % above inflation we get, is a bonus!

DB and state pensions then come into play.

cfw1994

Sea_Shell wrote: »

Here's how we did it in 2017....
<snip>
Groceries 2560.86 (Mainly Aldi)
<snip>
[/B]

If I shopped mainly at Aldi, the Aisle of Dreams would capture that budget alone! You know you need a small angle grinder, cycle shoes and some new ski jackets :rotfl: