$100K - $110K per year in rent, food, and expenses. I don't vacation much and I love food delivery services. I don't have any car payment either.

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee
 

Maybe ~$30k/yr in discretionary expenses between eating out, impulse buying goofy stuff, going out to sporting events/concerts, etc. ~$15k/yr in HOA dues and property taxes that include all utilities (no rent, woohoo!). Rest goes to liabilities such as debt repayments, HSA/medical, vehicle maintenance and upkeep, etc.

The poster formerly known as theAudiophile. Just turned up to 11, like the stereo.
 
Stonks1990

Looking significantly less forward to those damn HOA fees...

It may seem annoying, but like I pointed out it includes all utilities such as electric, gas, water, trash, maintenance and then all the frivolities like concierge, valet and designated underground parking. So for the $700/mo it costs? Totally worth it. Then there's the property taxes which do suck. But thanks to being in an apartment and not some urban sprawl they're not exorbinate thankfully.

The poster formerly known as theAudiophile. Just turned up to 11, like the stereo.
 
Most Helpful

The short answer is as little as I can. However, if we're looking at 2022 outflows then I can't quite claim that I live 'frugally' - a lot of incurred expenses this past year, both intentional and not so. Think 2023 will be a little lighter on the wallet - that's my goal anyways. 

Wife and I bring about $475K/yr pre-tax, nets us to just under $310K filing jointly and including 401K & RIRA deductions. Fuck taxes, but at least I get a good chunk of that Fed stuff back. Would say about $60K of that goes to living expenses, which I am so damn excited to change. Once we get settled in TX and actually buy a fucking house, I can stop writing $4,500 checks for a place that I'll never own. 

The good news is that with the exception of stocking our new place, most of the big stuff is a one-off and thus less likely to be a continual problem. We got a lot of 'big-boy' furniture this past year and moved out of the IKEA realm. My car accident post-insurance (both car and medical) was about a $10,500 haircut I had to take, which hopefully isn't repeatable. The new car ran me about $50K gross, and $30K net for the insurance payout from my prior. For those who travel for business, my number-one recommendation is to combine your personal vacations with 'em if you can - yeah, sucks to not take a PURE vacation but I've found some sweet deals. For example, I was in London a couple of months ago and brought my wife so we could stay for a few days after. I expensed the covered hotel, all meals during the business period, and my roundtrip airfare, leaving me to only pay out-of-pocket for costs incurred after our covered three-day stay. Combining expenses and AMEX points, I was able to turn an $8K vacation into maybe $1750. 

Lastly, got married this past year. My FIL was kind enough to cover the ceremony & reception, but everything else was not cheap. Combined w/ the honeymoon, that was another $15K. Granted, that's a once-in-a-lifetime experience, so won't complain about it too much. 

The only reason I say all of this is to convince myself that these were one-off expenses, but 2023 will probably hold all kinds of surprises - both good and bad. I aim to save 40-50% of our combined THP, and we're doing a good job overall. Just be aware of your finances, yet not paranoid about it. That'll get you all pretty far. 

 

Did you get a pre-nup with your wife? Why or why not?

I have a lot of pre-marital assets, and it's really preventing me from settling down because I'm frightened of divorce in marriage....

 

Nope, I don't have one. Logically, I should, and I know that. But it is a hard conversation to have with someone, and I'll be the first to admit I just wasn't up for it. Our income does have some discrepancy - of that $475, about $350 is mine and she takes the rest. But that gap is smaller than a lot of couples that I've seen and we work well together. 

From your perspective, I perfectly understand why you'd have reservations. I don't have a lot of assets that would have liability splits should our marriage ever go south, but if you have some stuff that's in the grey area it's definitely something to think about. I really think it just comes down to individualism, as each couple will be different. I can say personally that my wife wouldn't have even given a shit about the financial side of things - she comes from money, and I'd have to make Partner at an MF PE group to even come close to the money on her side. The only reason I didn't get one is that I didn't want to put the idea in her head or mine that our marriage might end. I don't think it will ever, neither does she. But I know that shit happens, and God forbid if something ever happened between us. 

But overall, yeah - I get it. You will do what's best for you and if she doesn't like the answer, everything will work itself out. Best of luck to you on your love search, Pizz!

 
Pizz

Did you get a pre-nup with your wife? Why or why not?

I have a lot of pre-marital assets, and it's really preventing me from settling down because I'm frightened of divorce in marriage....

Obviously it depends on your jurisdiction, but whatever assets you have coming into the marriage are generally considered spousal property.  Or it is in NY, at least.  So if you've got $1mm in your PA, you're getting that out first in a divorce.  So there isn't really a risk of "losing" assets, you'll just have to split income and appreciation.

That being said, usual caveat that you should talk to a lawyer about the laws in your home state/country.

 

Stonks1990

The short answer is as little as I can. However, if we're looking at 2022 outflows then I can't quite claim that I live 'frugally' - a lot of incurred expenses this past year, both intentional and not so. Think 2023 will be a little lighter on the wallet - that's my goal anyways. 

Wife and I bring about $475K/yr pre-tax, nets us to just under $310K filing jointly and including 401K & RIRA deductions. Fuck taxes, but at least I get a good chunk of that Fed stuff back. Would say about $60K of that goes to living expenses, which I am so damn excited to change. Once we get settled in TX and actually buy a fucking house, I can stop writing $4,500 checks for a place that I'll never own. 

The good news is that with the exception of stocking our new place, most of the big stuff is a one-off and thus less likely to be a continual problem. We got a lot of 'big-boy' furniture this past year and moved out of the IKEA realm. My car accident post-insurance (both car and medical) was about a $10,500 haircut I had to take, which hopefully isn't repeatable. The new car ran me about $50K gross, and $30K net for the insurance payout from my prior. For those who travel for business, my number-one recommendation is to combine your personal vacations with 'em if you can - yeah, sucks to not take a PURE vacation but I've found some sweet deals. For example, I was in London a couple of months ago and brought my wife so we could stay for a few days after. I expensed the covered hotel, all meals during the business period, and my roundtrip airfare, leaving me to only pay out-of-pocket for costs incurred after our covered three-day stay. Combining expenses and AMEX points, I was able to turn an $8K vacation into maybe $1750. 

Lastly, got married this past year. My FIL was kind enough to cover the ceremony & reception, but everything else was not cheap. Combined w/ the honeymoon, that was another $15K. Granted, that's a once-in-a-lifetime experience, so won't complain about it too much. 

The only reason I say all of this is to convince myself that these were one-off expenses, but 2023 will probably hold all kinds of surprises - both good and bad. I aim to save 40-50% of our combined THP, and we're doing a good job overall. Just be aware of your finances, yet not paranoid about it. That'll get you all pretty far. 

You wrote a lot of filler and forgot to mention how much you spend in a year or per month...

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee
 

I did actually do that. I knew I was forgetting something. 

If we take our 'anomaly' year of 2022 as an average, I'll break it down:

  • (-) ~$160K in F/S/L taxes + Margin/IRA/401 contributions
  • (-) $62K in rent, utilities, admin/leasing fees
  • (-) $7.5K insurance (medical/car/etc)
  • (-) $20K unexpected expenses (non-covered medical bills, other shit I don't wanna talk about)
  • (-) $15K travel & honeymoon shit
  • (-) $10K groceries + eating out & dining leisure
  • (-) $10K slush fund for fun stuff we did
  • (-) $30K for the new car

Breakdown may be a little off, but we'll save around $190K this year post-tax. Once my tax return is finalized I'll get some of that back, and I made about $23,500 in capital gains for 2022. This was a HEAVY spending year but lots of changes. 

 
kellycriterion

 and sub-$500 a month on all else

Insanity.

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee
 

A1 in LA 

Rent $1250 (good deal)

Utilities $150

Gas $100

Car $500 (wanted something nice, luckily locked something down financed at 2.8%)

Car Insurance $180 (young male with a nice car, fuck me I guess)

Gym $275 (Equinox, use every day so fine splurging) 

Phone $0 (comped by firm)

Food During Week ~$50? (dinners comped by firm + OMAD during weeks)

Discretionary ~$1k (weekend food/going out, misc. expenses)

I think post tax I take home ~$6500 a month, so the balance is savings.

 

Married 2 kids, late 30s, ~$30k/mo including it all. It adds up. Country club, schools, real estate, charity, furnishings, artwork, vacation, Kids extracurriculars, housekeeper /nanny.  Saving several hundred k per year as well. I like my lifestyle and make no apologies to fatFIRE hermits. Enjoy your life and earnings, already seeing friends die of cancer etc. not trying to be the richest in the graveyard.  saved enough for long enough, no longer worried so much 

 

$2.2k monthly (LCOL) and I put away about $2000 every month since I split everything with my roommate. I spend at least $7.5k on every racing season (Spring to Fall) and that number only goes up each season. Tires, suspension tuning, new bike and parts, and racing fees has me at almost $5k already and the season hasn't started. Luckily my job can help me stay in organized race events, but I plan on staying with it as much as I can as my income grows. I'd rather spend the money on equipment that could help keep my life intact and avoid a $30k hospital bill down the road.

 

This is actually interesting. I haven't looked at this in awhile. 2022 is the first period I can with some accuracy, we got Ramp going the prior year so there's no distortion any more from business expenses that get reimbursed.

I am a one credit card guy, so these are good numbers for daily lifestyle. I looked at the category breakdowns, it's "Merchandise & Supplies", "Travel", then "Entertainment" for the top three. This does not reflect housing, vehicles, air, art, or anything else that goes by wire.

I do not live frugally. I agree with dutchduke, taking it all with me has never appealed to me. My philosophy is that leaning more heavily into the discretionary things helps me stay plugged in and going. Have to enjoy the ride to want to stay on it.

Single, male, 30's.

Amex

I am permanently behind on PMs, it's not personal.
 

I had to triple check this. Monthly CC payments of $100k? You’re spending $800k-$1.2mm per year after taxes and housing isn’t even on that thing? Do you make $4mm per year? Dear Jesus 

Array
 

no way it's CC payments. it's just payments from bank account. can be transfers to his broker account to buy stocks. probably withdrew everything in Jul 22, panic sold at the bottom cause the market was down. and then once market started going up, he started moving money back from bank account to broker account.

my bank account also shows payments $10k every month even though $4-5k of it is me moving money to my broker acc to buy stocks. and I could even create a payment of $100k within a month if I moved money back and forth 10 times.

 
Funniest
Pizz

Do you see yourself marrying and having kids eventually? 

Most certainly. I hope to, and a meaningful portion of my work on myself has been in preparation for this. This made me think of a longer comment I wrote on the 'Then and Now' series from the beginning of the pandemic.

I have seen that many of your comments are about women and money. Is there something specific here you're asking?

I am permanently behind on PMs, it's not personal.
 
qwertyuij

What advice would you have for someone 1 or 2 years out of school who wants to be on your level but doesn't seem themselves ever being a PE partner like yourself?

If you don't see yourself becoming partner, you will never become partner.

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee
 

Never really understood why spending like that is a flex. Everybody has a different idea of how they want to live their life, and what a “comfortable” lifestyle is. 
 

For me, even in NYC, I’m able to live fairly well on less than $1,000 per month. Of course this doesn’t include rent, but even with this budget I’m able to go out once in a while, afford a nice gym membership, buy my family/friends small gifts, and get decent clothes for myself. 
 

I try to avoid the hedonistic treadmill of lifestyle inflation as much as possible, but I can also understand the folks that have the “spend more to make more” mantra.

 

You and me both. Also in NYC, I quickly learned how big of a disparity there is between good restaurants and expensive restaurants. At the latter, half the time I felt like I was paying for a nice tablecloth with mediocre food.

 

I run my budgeting numbers every month, just to see how close I am to early retirement without accounting for any inheritance proceeds.

My main apartment mortgage, escrow and common charge is 120k. My other apartments have renters that almost cover the mortgage, so negative outflow is 15k. So total housing costs per annum of 135k.

Childcare costs 55k. Groceries cost 20k. Vacations and airfare cost 20k. Car and garage costs 25k. Nice dinners cost 20k a year. Fancy crap like a suit or electronics or jewelry is about 10k a year.

Then there are always some unexpected expenses that pop up. I always budget 15k for that.

So total is about 300k a year, all after-tax money.

 

Spending summary:

$45,000 annual mortgage

$20,000 on food (favorite hobby is eating out)

$6,500 on daycare for my best pal golden retriever 

$7,500ish on travel

$5,000-6,000 on splurges for myself or wife 

$10,000ish miscellaneous (car insurance, dog food, random little stuff like this)

Total annual spend: $95,000

Income summary:

$150,000 from dayjob

$100,000 from side hustle/hobby 

Total annual pre-tax income: $250,000