How much monthly income to retire?

HermitJohn · #41 08/16/10, 06:09 PM

I might re-tire my pickup one of these days, .....if I can afford the tires.

thestartupman · #42 08/16/10, 11:22 PM

OK, here is my info. I am new on this thread, but thought it was really thought invoking. I am about to take a early buy out from my employer, and about to adventure out on my dream I have been planning for about 3 years. I am looking to move from the Portland Or area, and move to either Western TN, or Southern MO. I have traveled to both, and have done most of my reasearch on TN, but am still open to either. Here is what my estimates look like. These are all monthly expenses. Let me know if you think I am forgetting anything. I do realize that it will be a year or two before I can get my expenses down to this level.
Groceries $50
Car Insurance $150
Home Insurance $50
Entertainment $40
Deisel $20
Propane $30
Clothing $45
Phones + internet $150
Real Estate Tax $100
Health Insurance $250
Vet $20
gas $50

KMA1 · #43 08/17/10, 07:38 AM

thestartupman,

How do you plan to pay for repairs or replacement of vehicles? Also, if your plans include homesteading, you are going to need some maintenance budget for the repairs around the place from the house to barn, outbuildings and fencing. You will also need some funds for soil amendments for pastures fields and gardens, even if you do it by composting. Don't see any other utilities than propane, so I would include some for water and electricity. If you are planning a well and alternate energy, better add to your maintenance and replacement budget. Same for appliances. Food, you might make it on $50/month if you are one and really good at gardening. Garden spaces take a while to develop from scratch though.

Just some food for rhought.

KMA1

**Terri** · #44 08/17/10, 08:56 AM

Our retirement should be $25,000, and it wil be our job to live on that. There is a bit more in an IRA but that had best be set aside in case there is a problem or major repairs, because life happens.

To that end, we are going to make certain our home and cars are paid for: our present cars are paid off but by then we will have bought again.

**Terri** · #45 08/17/10, 09:02 AM

Thestartupman, a few people here took early retirement and then started up a backyard business to finance tools and repairs and extra expenses.

Shrek, the other moderator of Siingletree, started selling fishing bait (worms) and then used the spent worm bedding to raise vegetables to sell, and so forth. He sometimes mentions another sideline but he is rarely very specific.

jassytoo · #46 08/17/10, 10:06 AM

I see in the yearly list that you put pet food and plants and seeds under food. In the second , monthly, list that's quoted as 50$. I think that catagory is way underfunded. On the other hand ,around here, we don't spend 45$ month on clothes nor do we spend 40$ month for entertainment.That's just us of course, everyones different. Also the diesel allotment is pretty low if you live any distance from town. I do one dump run and two or three trips to town a month but I use more gas than 20$. As Terri said, there's no budget for maintenance for car or home and that is important if you only have one vehicle especially. Home insurance and taxes of course will depend upon where you live.Around here (WA where you are now) those numbers are unknown. I'd double check that depending on where you decide to settle. Health insurance too is a pretty low number plus insurance will not cover your whole bill. I think you are smart to work out a plan before you start and with some tweeking and some emergency money I'm sure you'll do fine. Homesteading is always a learn as you go proposition, you just have to go with the flow sometimes and be flexible.

Patt · #47 08/17/10, 10:33 AM

Quote:

Originally Posted by thestartupman

OK, here is my info. I am new on this thread, but thought it was really thought invoking. I am about to take a early buy out from my employer, and about to adventure out on my dream I have been planning for about 3 years. I am looking to move from the Portland Or area, and move to either Western TN, or Southern MO. I have traveled to both, and have done most of my reasearch on TN, but am still open to either. Here is what my estimates look like. These are all monthly expenses. Let me know if you think I am forgetting anything. I do realize that it will be a year or two before I can get my expenses down to this level.
Groceries $50
Car Insurance $150
Home Insurance $50
Entertainment $40
Deisel $20
Propane $30
Clothing $45
Phones + internet $150
Real Estate Tax $100
Health Insurance $250
Vet $20
gas $50

Car insurance and clothes seem a bit high and gas seems way low. Here in AR we have real estate tax and personal property tax.

Pam6 · #48 08/17/10, 10:48 AM

SOME of our expenses are:
$110 Phone, cable, and internet
$100 Car insurance
$100 Home insurance
$150 Property Taxes
$200 Electric
$500 food, toiletries, clothing
$100 Animal food and care
$300 gas for cars but that would be less if DH retires, he drives 55 miles one way to work
We still have our house payment. Plus the kids are still little and they just suck the money right out of us like vacuum cleaners when it comes to their activities! Right now we have medical through DH's work, so that would change also. I feel like I am forgetting stuff on my list.

Bentley · #49 08/17/10, 04:26 PM

Quote:

Originally Posted by Pam6

SOME of our expenses are:
$110 Phone, cable, and internet
$100 Car insurance
$100 Home insurance
$150 Property Taxes
$200 Electric
$500 food, toiletries, clothing
$100 Animal food and care
$300 gas for cars but that would be less if DH retires, he drives 55 miles one way to work
We still have our house payment. Plus the kids are still little and they just suck the money right out of us like vacuum cleaners when it comes to their activities! Right now we have medical through DH's work, so that would change also. I feel like I am forgetting stuff on my list.

Here's my best estimate for our household:
240 - phones, cable, internet, cell
140 - car insurance
75 - home insurance (no mortgage - yeah!)
110 - property taxes
130 - electric
40 - gas
700 - food, toiletries, clothing (this one is hard to know for sure)
0 - animal food and care (at least until I get the chicken coop built)
200 - gasoline
40 - water
800 - health insurance
80 - other medical/dental such as copays and deductibles
200 - tythe
50 - fertilizer, seed, poison, garden stuff, etc..
25 - gifts for grandchildren, and others....
2830 or 33,960 per year (after taxes)

Problem is, I know we are spending a few hundred more than this. It's just hard to get your arms around. Of course, we just built a new home, and have spent money on some new furniture, new washer/dryer, freezer, picnic table, and then my computer got hit by lightning, so I bought a new laptop.
Also bought some tractor tools, and I'm still fixing up the 32 x 42 shop with workbenches, and electrical wiring. Seems like there is always something we hadn't planned on that requires several hundred dollars.
But, that's life I guess. I'm just thankful that the Lord has blessed us with the income to handle it.

salmonslayer · #50 08/17/10, 10:11 PM

the startupman, having just moved to Southern MO from an extremely high cost area here are my thoughts on your estimates:

Groceries $50 - Too low to start, groceries are not as expensive as where we were before but they arent that cheap. We produce a lot of our own food but still spend about $50.00 a week which includes TP etc. so you may want to budget a bit more when your just starting out.

Car Insurance $150 - Seems a bit high to me for monthly. We pay about $38.00 a month for two trucks but both are paid off and we have good driving records.
Home Insurance $50 - About right
Entertainment $40 - About right if you include your booze budget
Deisel $20 - Thats only a few gallons but if its for a tractor that might be about right or a little high.
Propane $30 - Depends on what your using it for.
Clothing $45 - I spend that about every six months...but we arent snappy dressers.
Phones + internet $150 - A bit high
Real Estate Tax $100 - Way high depending on the county
Health Insurance $250 - Good luck
Vet $20 - Depends on your need
gas $50 - Thats about 3/4 tank for a pickup so that may be about right if your not commuting.

Some things you forgot:

Personal property tax
Consumable supplies (nails, paint, lightbulbs, wire, fertilizer, seed, etc.)
Electricity
Water and or Sewer (depending where you live)
Repairs /repair parts

You can live fairly cheaply here but maintenance on a property with fences, multiple out buildings and an older residence/vehicle does require a steady outlay of money.

Grandmotherbear · #51 08/18/10, 08:35 AM

Speaking as an economist daughter, the clothing budget should be not only for NEW but also for maintenance. 1 dry clean only suit and a washer breakdown leading to laundromat use would eat that $45 right up. Plus maybe from another climate, may need either coldweather or hot weather gear at least the first year. Course there is always the Dryel home dryer dryclean kit and the washboard and a clean mop wringer...

thestartupman · #52 08/18/10, 11:36 PM

Groceries $50
Car Insurance $150
Home Insurance $50
Entertainment $40
Deisel $20
Propane $30
Clothing $45
Phones + internet $150
Real Estate Tax $100
Health Insurance $250
Vet $20
gas $50
OK, let me clear up a few things about my estimates
The Health Insurance was based off of TN prices, that are some of the lowest in the country. I am still considering TN for my place to move too. The $50 dollar groceries was based off of a couple years in the future once I am more self sefficient with the garden, and animals. The real estate taxes may be a little high, but It is some of the higher prices I have seen for what I am looking for. Electricity was left off because I plan to go off-grid. (I hope).
Now a question, what is personal property tax, and how is it figured? Does anyone know if TN has this tax too?

Cinelu · #53 08/19/10, 05:01 AM

No, TN doesn't have a personal property tax, and only investment income (from stocks and taxable bonds) is subject to a state income tax.
We do, however. have a hefty sales tax. Combined state and county where I live is 9.5%. Tax on food is slightly lower - 8.5%. Some counties are a little higher.
I don't know about those insurance rates - are you only looking to insure one person? If so, that might be a realistic estimate.

Beeman · #54 08/19/10, 06:16 PM

No personal property tax but... we create other taxes instead. Many counties have a wheel tax, don't ask me, whenever they need money they just add $20 per year to your license plate fees. We also have almost 10% sales tax that everyone pays, fixed income or not, cuts your buying power considerably and it includes groceries and labor.

Air and water quality are not the best in TN, a health factor you might consider. Large cancer corridors in areas also.

Brooks WV · #55 08/19/10, 06:35 PM

The most recurring theme in nearly all of the posts by people who have retired: Debt free. That is the single largest obstacle most will face.

Patt · #56 08/19/10, 07:11 PM

Quote:

Originally Posted by Brooks WV

The most recurring theme in nearly all of the posts by people who have retired: Debt free. That is the single largest obstacle most will face.

pancho · #57 08/19/10, 08:53 PM

I read through the budgets posted. They all seemed quite a bit higher than what I spend. Some of their monthly expenses would equal my total for the year.
Long before I retire I plan on lowering my budget as much as possible.
A few things on my budget, not all of it.
Water $12/month
Electricity $45/month
Auto insurance $45/month
Internet, phone, cable $80/month
Home insurance $70/month
Taxes $10/month

Qhorseman · #58 08/20/10, 10:35 AM

This is a very interesting thread, I am a Disabled Veteran, I recieve a monthly pension from the VA that is tax free. I have no medical expenses. I survive nicely on my pension, the way I do that is I have no credit cards, no mortgage, no Debt other than my phone/DSL bill, electric bill and car/homeowners insurance. I bought and payed for my homestead while I was on active duty. I do have property taxes to pay each year. I stay out of Super China Mart as much as I possibly can. My trucks are 20+ years old, but well maintained. When they break down instead of buying a new one the old one gets overhauled.

I have a big garden that supplys my vegetables for most of the year. I love to hunt and fish, so my hobby takes care of my protien requirements for the year. I also raise chickens and rabbits.

If I have a weakness, it is my horses, but I have found ways to reduce the out of pocket expenses they create. I help my nieghbor with his hay in return for hay for my horses. He is also an OTR trucker so I feed his while he is on the road in return for feed for mine.

The key is, not getting caught up in the debt circle, living a simple, healthy life.

pancho · #59 08/20/10, 12:37 PM

Quote:

Originally Posted by Qhorseman

This is a very interesting thread, I am a Disabled Veteran, I recieve a monthly pension from the VA that is tax free. I have no medical expenses. I survive nicely on my pension, the way I do that is I have no credit cards, no mortgage, no Debt other than my phone/DSL bill, electric bill and car/homeowners insurance. I bought and payed for my homestead while I was on active duty. I do have property taxes to pay each year. I stay out of Super China Mart as much as I possibly can. My trucks are 20+ years old, but well maintained. When they break down instead of buying a new one the old one gets overhauled.

I have a big garden that supplys my vegetables for most of the year. I love to hunt and fish, so my hobby takes care of my protien requirements for the year. I also raise chickens and rabbits.

If I have a weakness, it is my horses, but I have found ways to reduce the out of pocket expenses they create. I help my nieghbor with his hay in return for hay for my horses. He is also an OTR trucker so I feed his while he is on the road in return for feed for mine.

The key is, not getting caught up in the debt circle, living a simple, healthy life.

Anyone planning on retiring should read this post several times. It is short, simple, and very true. Others can do the same thing if they want to.

chris30523 · #60 08/20/10, 12:59 PM

By looking at what ya'll list in expenses I need to move out of Ga. when I retire. I know I live in an expensive part of my state as far as property taxs and power bills. Just feeding 2 people and not buying organic or luxury items I can't get out of the grocery store without spending less than 85 or 90 dollars a week. My power bill on an energy efficent 70's brick 1600 sq ft ranch averages 200 dollars a month. We heat with gas and that runs about 400 dollars a yr.(filling the tank twice)Water is about 40 a month. When I sat down to figure what I would need to live as I am living now (house and cars are paid off) It was a real eye opener. Being self employed all of our lives we only have what we put back as retirement. Of course I am not the type to "retire" I enjoy working at something thats what I do for fun. Good thought provoking thread!