|Percent of Annual Expense|
For reference, the Discretionary category includes food, clothing, household, personal and entertainment, i.e. anything not included in taxes, insurance, utilities and mortgage. Taxes include property, federal income and state income. Insurance covers health, home, auto and long term care. Utilities are electric, gas, water and phone.
The biggest change was the eliminate of our mortgage and savings contributions in retirement. The actual amounts spend in the Insurance and Utilities categories were constant, which resulted in a percentage increase for retirement. Even though the Taxes category percentage was constant, our total taxes are about 1/2 what we paid when working, with Federal and State income taxes decreasing by 2/3. Finally, even though the Discretionary category increased in percentage, the actual amount spent has declined by 26%.
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This is not financial or retirement advice. Please consult a professional advisor.
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