Thursday, July 20, 2017

Expected future expenses in FIRE

We had mentioned in this post that our future annual expenses when we enter the FIRE phase would be $48,000. This is the breakdown of the the monthly expenses (rolled over into annual, rolled over to our final saved amount).

Most of categories and sub-categories are self explanatory, I think.

A note about the Flight Savings. We want to take a nice long vacation each year. The cost of flights is the highest component in a vacation. You can also rename this category in your mind as "Vacation Savings".

"Miscellaneous" under Discretionary Spending covers clothes shopping, entertainment, impulse buys.

As you'll notice, I had to include an "Others (buffer)" category to make it close to the annual $48K we were predicting! This tells me we will be revisiting our total saved amount in the future.

After publishing this, we realize that we need to have a post about our current expenses, to give a true comparison of which spending buckets will be eliminated or curtailed.

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