20 Years Of Tracked Spending And How It Helps Me Plan For The Future

50andOut said:

I am this year at last hitting my intended target date for early/semi retirement (see my thread "7 year semi retirement plan") so will be updating that in the coming months with current figures and the plan to slow down - I am looking forward to everyone's comments/feedback.

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Thanks 50and Out, looking forward to your update

Sorry Bronte meant to reply to 50andout

This is a fantastic post. Many pension providers seem to say you need x % of your salary when u retire. The Irish Life calculator on my pension fund show ' you have a shortfall of x000'. You need to increase your contributions.

The only way to know if there is a shortfall is to monitor your own expenditure and lifestyle costs.

Bronte said:

That's a fascinating post, particularly as there is so much detail. I too have kept a note of all expenditure in an excel for the last 20 years. Some questions/observations:

Heating - it went up in 2023/energy crisis, but you got the gas and electric right back down again in 2024, how did you do this?

Waste - that's down to very little

BB - is that broadband? unbelievable reduction in the 20 years. Same with the mobile.

Car - that's the purchase price in any given year, and then the running costs I assume, with fuel separate. The petrol is costing €13 a week, for 2 cars, suggesting that maybe only one car is needed.

Medical - is that the cost of insurance (VHI) or medical treatments? I'd imagine that figure will go up, we have had very high bills in the last couple of years, and thank goodness for several insurances.

Clothing, it's not even frugal, it's non existent. Probably down to only getting socks/nicks the odd pair of shoes. AS we are getting older we buy a more expensive shoe for comfort. Can't remember the last time I purchased a fancy pair for an event (wedding type)

Holidays - can't see that low being the norm for many

Long Term care - how is that built in to your finances, as in, what is the plan?

Children - for others, we have the 'problem' of whether to make sure they get an inheritance or we just blow it. The cost of private education and third level has been sizeable for us. But getting to the stage of very nearly there. As of this June will only have one left to do for. So 2024 will have been our highest and I expect 2025 will be a lot less with another drop in 2026.

Thanks for the insight. The pensions body would do well to show us how they got to their totals.

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Thanks Bronte, the reason I'm giving so much detail is comparison otherwise it's just numbers, and for people like yourself to ask questions

Heating: In another thread I've explained my switching on of the smart meter and availing of a "Free Electricity" on Sunday for year '23
In '24 I changed the plan to an EV plan which gave me very cheap electricity between 2am and 5am that with the reduction in rates reduced the yearly cost, I'll be updating that thread as soon as I get the final bill from BG, already waiting 6 weeks

Waste: I currently don't have a waste provider due to an ongoing dispute with my provider since March so am using alternatives at the moment but most likely will sign up with the only other provider in my area soon, so that will most likely end up in the €200 for the next year

BB: Yes broadband but don't forget that 20 years ago there was also the cost of a landline while now the landline is replaced with the mobiles
The mobile column is just what we pay for our unlimited sims from GoMo, handsets are in the house column but would only be upgraded when necessary and most likely bought second hand once their in perfect condition

Car: Yes and making the move to one car is something we will probably do in the future but at the moment I'm willing to absorb the cost of my car

Medical: Yes that includes a Laya plan since 2015, with last years costing €3092 for the both of us and yes I agree with you that it's only going to get more expensive as the years go by

Clothing: Yes near enough, I was hoping on doing an American road trip last summer and normally when over there we go shopping but it didn't happen but will in the next few years

Holidays: It is what it is, we think we've travelled well but would agree going forward the type of holidays we like are getting more and more expensive. we have already booked this years trip in April to China and Japan for €12k plus spending money

Long Term Care: I presume like everybody I hope that I won't need it but if it should come to pass there is the equity built up in the house that should cover it

redstar said:

This is a fantastic post. Many pension providers seem to say you need x % of your salary when u retire. The Irish Life calculator on my pension fund show ' you have a shortfall of x000'. You need to increase your contributions.

The only way to know if there is a shortfall is to monitor your own expenditure and lifestyle costs.

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Thanks redstar,

One of the reasons for the second post about my pension was to give real figures rather then an indication
Yes it means nothing in real terms as to how your pension preforms or preformed compared to how mine is performing or will preform

But when I was starting to look at this area 25 years ago, I used to be very sceptical about the performance returns I was getting quoted
So I used to ask the sales person can you show me an actual persons pension who started a pension 20 years ago, how much they actually contributed gross and net and how much that is worth today, do you think I could get an answer??
I guessing for most people it's not a normal question but for me and how my mind works it's something I'd have like answered

Thanks Cervelo for your posts!

I think there is a vested interest in getting people to put more & more money into pensions and it's driven by fear. Those vested interests charge based on the fund amount so it's to be expected I suppose.

My father is retired a good few years now and has told me countless times that you don't need nearly as much money to retire as you think you do. There are also lots of options to save money when you're time rich - I am thinking holidays & flying off-season, mid-week breaks and of course, free travel! Obviously there are different types of retirements, but like you, as time goes on, I appreciate more & more activities which cost very little.

Cervelo said:

So I used to ask the sales person can you show me an actual persons pension who started a pension 20 years ago, how much they actually contributed gross and net and how much that is worth today, do you think I could get an answer??
I guessing for most people it's not a normal question but for me and how my mind works it's something I'd have like answered

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That's the way it used to be done in the olden With Profits days. Eventually, without the benefits of smoothing, it became a bit of an unhelpful comparison.

The counterargument, I suppose, is that it’s better to have too much rather than too little.

Does the future plan include Benefit Payment 65 ?

50andOut said:

I estimate 800 per month for future food/groceries, assuming 2 mouths rather than 5

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We run two €5 off vouchers with Dunnes. We struggle to spend €50 per week on groceries.....a quarter of what you anticipate you will spend. At the moment we are still trying to get through our Christmas purchases and as a result will probably drop one of the €5 off vouchers for at least another month.
In that €50 spend we have built up a stock of non food items...bleach, dishwasher tabs, toothpaste, shampoo....etc.

We eat very well, keep an eye on the discounted items, stock up on specials....often purchase the 3 items for €10...........it's amazing how creative you can be with a €3 chicken.

We are not mean either.....we spend circa €9k per annum on holidays and like Cervelo will be doing the Hong Kong trip this year, to include Business Class seats.

I laugh at myself sometimes....saved €50 on not renewing my car insurance with Aviva but instead signing up as a new customer but will blow €5k on business class seats.

Firefly said:

Thanks Cervelo for your posts!

I think there is a vested interest in getting people to put more & more money into pensions and it's driven by fear. Those vested interests charge based on the fund amount so it's to be expected I suppose.

My father is retired a good few years now and has told me countless times that you don't need nearly as much money to retire as you think you do. There are also lots of options to save money when you're time rich - I am thinking holidays & flying off-season, mid-week breaks and of course, free travel! Obviously there are different types of retirements, but like you, as time goes on, I appreciate more & more activities which cost very little.

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Your welcome,

Yes I'd very much agree with you here about the "vested interest" but isn't it the same with nearly everything we spend money on in our capitalist society and how it's marketed to us in a way of how it will improve our lives and the fear of missing out if your not doing it or owning it or living your life in a certain way

I find it funny how sometimes when I read things here, I realize that's what I'm doing but now there's a name to it or a term for it
Being "Time Rich" is something I've never really thought about till the other day when it was mention earlier in this discussion by misemoi
but it's something I practice nearly every day, if there is something I want that's not essential I wait until I feel I'm getting the best value,
I go to the cinema in the afternoon because it's cheaper then the evening and way less people, when we eat out, it's mainly during the week when there are mid week specials or early bird options and as you say when it comes to holidays we generally travel when it's cheaper

You're 100% correct about the "different types of retirements", it is very much a "horses for courses" situation but I definitely feel I found my "course", I'm happy, she's happy and at the end of the day all that matters is that we're both happy with our lot and if some of that happiness stems from spending less on our lifestyle choices, well that's a win win in my book

Gordon Gekko said:

The counterargument, I suppose, is that it’s better to have too much rather than too little.

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Agreed and I can't really argue with that train of thought but I will say knowing when enough is enough is a very individual perspective

S class said:

Does the future plan include Benefit Payment 65 ?

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If your asking about the OAP, yes it does,
but if you're asking about additional payments on top of the OAP, I've no idea what they are and will only become relevant at the time

SlugBreath said:

We are not mean either.....we spend circa €9k per annum on holidays and like Cervelo will be doing the Hong Kong trip this year, to include Business Class seats.

I laugh at myself sometimes....saved €50 on not renewing my car insurance with Aviva but instead signing up as a new customer but will blow €5k on business class seats.

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Yes this is one I find funny as well, how we prioritize our spending and what we'll try and save money on, only to go and blow it on something else

For us we fly economy, yes it's going to be a rough 24+ hours of traveling but what we do is book an extra day at the beginning of the trip and one at the end so as we can recover from the flight there and get ready for the flight home and if necessary on these touring type holidays
if we feel we're going to need a little breather in the middle of it we book an extra night there if possible

Cervelo said:

If your asking about the OAP, yes it does,
but if you're asking about additional payments on top of the OAP, I've no idea what they are and will only become relevant at the time

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I am referring to this
With a little effort and Prsi planning you could qualify.

This payment can be available to people who cease employment before age 65.

S class said:

I am referring to this

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Thanks for that S class,
we're both 58 this year so it's a good 8 years away, so we have plenty of time to plan for it should it still be available

Cervelo said:

Thanks for that S class,
we're both 58 this year so it's a good 8 years away, so we have plenty of time to plan for it should it still be available

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The critical year for this is the year of your 63rd birthday, so it's only 5 years away.

Make sure to remain in the Prsi system.
This can be by signing on for Jobseekers credits or from class S on your investment income if its over 5k per year.

If at any stage you are out of the Prsi system for 2 years you would need 26 weeks of paid class A to requalify for the Jobseekers credits necessary for BP 65.

S class said:

The critical year for this is the year of your 63rd birthday, so it's only 5 years away.

Make sure to remain in the Prsi system.
This can be by signing on for Jobseekers credits or from class S on your investment income if its over 5k per year.

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Yes - that's why I suggested something similar earlier in the thread:

Interesting post and fair play to logging expenditure for years.
Two dogs that I enjoy and walk most days through the forest food and vet etc probably 1k per year.
Drive up to Dublin from Gorey to the home place once a week to take father out for coffee or pub lunch 2.5k per year. I could go on.
No offence to anybody but if I had to give the likes of the above a second thought I would consider my 40 plus years of work a disaster.
My wife bought 3yrs of service to finish at 62 and hopefully enjoy a long and healthy retirement.
Fair play to anyone who wants to log every euro they spend. I know what I spend in my head. I know what and how much I have in our bank accounts and investments in my head.
Anymore detail would drive me mad.

KOW said:

Interesting post and fair play to logging expenditure for years.
...
Fair play to anyone who wants to log every euro they spend. I know what I spend in my head. I know what and how much I have in our bank accounts and investments in my head.
Anymore detail would drive me mad.

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In recent years this exercise (at least the data collection part - whatever about the analysis part) often involves little or no extra effort since most or all expenditure (and access to cash) is automatically tracked via one's debit/credit cards and banking, so downloading historical statements (e.g. into CSV format) and categorising/analysing them in a spreadsheet or just on paper or whatever will usually give most or all of the picture in most cases. That's what I do anyway - my statments provide probably 95%+ of my expenditure details and I can easily manually adjust/update for anything missing where necessary.