I’ve been tracking my daily spending (basically every time I buy anything I make a note in a notebook I carry around with me. As mentioned, I’m spending far more then I thought I was, especially on food.
I’ve tracked spending from May 7th to May 26th I seem to be spending on average $54.49 per day ($21.93 of that on food). My big purchase for the last few weeks was a plane ticket to New York (for $440). Adding in my monthly fixed costs of $695 (rent, internet and whatnot), it looks like I’m spending around $2,352.40 / month, or $28,228.85 / year.
My “annual” food spending of $8004.45 is about the same as the average Canadian HOUSEHOLD spending on food (8,035 in 2005 for Toronto), so I think there’s definitely room for improvement.
On the other hand, I’m very frugal in other areas (in the last 3 weeks I’ve spent $24 on entertainment).
In theory, if you accept that you can live off of 4% of your savings indefinitey in retirement, I’d need $705,721.25 to retire on, which seems awfully high. People often say they want 1 million to retire on, and that’s considered too high a sum (and I usually think my spending is lower compared to most people).
In a future post I’m going to try to estimate what my current “passive income” is, considering my investment condo (which arguably isn’t so passive) and my dividends. I’m also going to start trying to cut back on food spending (I shopped at “No Frills” today, and it acutally *IS* cheaper, at least for bananas, yogurt and no-name pop, three things I checked). If I can start making and taking my own lunches (and eat at home at night), I think I could dramatically lower my cost of living.