Introduction:
Intention is to be transparent about spending habits for the past year. Expenses, excluding income tax, totaled $34,000 ($37,000 in 2022), below US GDP per capita of $76,000. Traveled overseas nine months during the calendar year.
Dave Ramsey once suggested, “live like no one else, so that you may live like no one else.” Don’t own a home, don’t rent an apartment, don’t own a car. Nine months a year, life fits inside 30-liter, 20-pound backpack.
Expenses:
Living expense $18,000:
– Rent: $9,000 (record hostels and AirBnB as rent | $24 per night)
– Medical: $3,000 ($2,000 premiums | $1,000 vaccination, dentist, eye)
– Supplies: $2,000 (iPhone 15, travel clothing, electronics & accessories)
– Gifts: $2,000 (holiday & donations)
– Food: $1,000 ($700 groceries | $300 dining)
– Other: $1,000 ($700 T-Mobile | $300 mail scanning)
Travel expense $10,000:
– Transportation: $8,000 (plane, train, bus, ferry, taxi)
– Tourism: $1,000 (hot air balloon, tours, entrance fees, etc.)
– Other: $1,000 (visa fee, border crossing tax, ATM & FX fees)
Paid $13,000 in federal income tax on taxable income of $98,000; paid $6,000 to Deloitte for tax preparation. Deloitte has prepared tax return since 2007 when I moved to Canada; will prepare tax return until I exit from partnership income within the next decade. Carried interest is earned and taxed before cash is distributed.
Portfolio is up $767,000 (14%) for the year (down 14% in 2022); $626,000 (unrealized) capital gains and $141,000 (re-invested) dividends.
20% of the portfolio is in cash, no need sell in a down market. 20% of the portfolio is bond index fund. Intend to sell in 2024 after Federal Reserve lowers interest rates; bond funds increase in value when interest rates drop. Bond fund did little to mitigate 2022 market volatility. 60% of the portfolio is Vanguard Total Stock Market Index Fund. Portfolio resides in a revocable trust; gifted to beneficiaries upon death.
Conclusion:
Modest spending, and even if doubled, to $75,000 or $80,000 spending would still be modest, or, at least consistent with US GDP per capita. Anticipate higher spending in 2024, largely influenced by astral summer cruise to Antarctica.
garthmonroe 