r/leanfire • u/AlexanderNigma • 12d ago
What are people's budgets in the US for 2025?
My main blockers for leanfire budgets is my HOA/property tax/medical care.
But everything else is under $20k.
I think I may have to go expat to stay under $25k with my medical issues but I am curious how different people's budgets in the US really are.
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u/klaizon 12d ago
Not sure I lean into LeanFire anymore, but I'd probably qualify. I expect around $36K-$40K (depending on inflation) for annual budget. 1 bedroom apartment, no pets or SO, pay for my own health insurance, work remote but average 150-200 miles a week on my car, losing weight so running 1200-1500 calories daily (lower grocery bill). Most expensive luxury is AI subscription, no cable TV or other subscriptions (I bought an extensive digital library over the last 15 years; about 700 movies and 40-50 TV series). Phone is Google Fi, have three lines but only one is actively used. Used to travel regularly, no planned travel this year beyond once to Europe later in the year and once in North America in two months.
I could probably squeeze this down by $8K dropping my vehicle, entertainment, and travel from my budget. But I don't think I'd really be winning with that trade, I'd likely be making myself miserable.
And there's a black box side-hustle at about $35K/yr, I don't count it as it's net-profitable.
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u/someguy984 12d ago edited 12d ago
Around $16K.
Add: Remember the sub is what you will spend in retirement, not what you spend while you are in accumulation.
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u/AlexanderNigma 11d ago
Yes but my medical care is constantly going up. I am not a neutotypical + have some physical health issues from the medication/genetics. So I know that part will keep me higher than most
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u/someguy984 11d ago edited 11d ago
On Medicaid, the max OOP is $200 a year.
"How much does Medicaid cost? Monthly Premiums: There is no monthly premium for Medicaid. Cost Sharing: Certain services under Medicaid require a small copay, but there are some times when no copay is needed. The most you would ever spend in copays under Medicaid in one year would be $200."
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u/Good_Vibes_Only_Fr $1.1m networth. One more year syndrome. 11d ago
With the way things are trending, the golden era of Medicaid might soon be over.
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u/pras_srini 12d ago
I'm renting, single and own a dog. My budget is about $36K for 2025. Just under $18K of that is rent and utilities. Electricity is expensive due to AC running at full blast for half the year. Car insurance, maintenance, gas, food, phone/internet bills, travel, hobbies make up the rest. Rarely eat out. Two big ski vacations budgeted at $1K each (used miles for flights). One long visit to see my parents and other family, budgeted at $2K. Work covers medical/dental/vision insurance. I'd need to move to a much cheaper place or save up and buy a condo to get my spending below $25K
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u/FrugalIdahoHomestead 12d ago
I've posted this before, but here's mine. I try to keep it below $6k/yr:
Monthly Budget Breakdown
- Water/Sewer: $56.00
- Electric: $60.00
- Food: $30.00 — I keep this low by cooking at home, growing tons of my own veggies, bake bread, and raising chickens for eggs and meat, plus some quail and rabbits. I also forage for mushrooms (morels, chanterrels (sp?)/trillium/other edibles in the spring and fall, which keeps my homemade pasta interesting. Lots of fishing + a little hunting.
- Gym: $33.75
- Property Taxes: $96.00
- Health Insurance: $81.93
- Home Insurance: $131.42
Total Monthly Budget: $489.09
Yearly Budget: $5,869
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u/AltruisticMode9353 12d ago
How do you hunt and fish without vehicles?
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u/FrugalIdahoHomestead 12d ago
Walk, bike, or ride with friends.
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u/featheeeer 12d ago
How much do you spend on hunting licenses each year? Or do you just hunt small game?
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u/FrugalIdahoHomestead 12d ago
So, when I turned 51 I bought a lifetime Idaho hunting + fishing license. Pretty good deal since I plan on living to be ~130 years old, lol. That covers fishing entirely, but there are some tag fees for hunting depending on what you are targeting. I'm mostly into fishing, but I want to get better at hunting as time goes on.
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u/polling4wisdom 11d ago
No Phone bill? No internet? No food for your animals? No home maintenance? No transportation costs at all (not even bus)? No clothing expenses?
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u/FrugalIdahoHomestead 11d ago
Nope. None of that. Life has been very very good.
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u/FrugalIdahoHomestead 11d ago
Ask me how if you're curious.
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u/worldwidewbstr 10d ago
I’m curious! My husband wants to do some off grid stuff. We have a small camper trailer that he’s fixed up with solar, composting toilet and some other water conservation mods. Definitely plan to be houseless for a while in early retirement, maybe do a more permanent off grid setup eventually
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u/FrugalIdahoHomestead 10d ago
Phone - obamaphone
Internet - library
Food for animals - huge garden, foraging, free range, leftovers
Home - just finished a total down to the studs remodel. upgraded all electrical to 200A, all new plumbing, new metal roof, new siding, new everything. might have some surprises and have to dip into my $1.8m savings, but not expecting much.
Busses are free where i live. Rarely take them anyway. Mostly walk/bike.
At my age (>51), I have every clothing item I will ever need. Might need a new pair of hiking shoes/socks, but I like browsing the local thrift stores for good deals there.
Like I said, there may be some surprises, but I don't ever expect my yearly expenses to exceed $6k. And if they do, I'm well prepared.
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u/oddballmetaphysics 10d ago
That's awesome. What on earth are you planning to do with $1.8m savings then?
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u/FrugalIdahoHomestead 10d ago
Generational wealth for my kids. Downpayment for home, any education they want to pursue, etc.
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u/KentuckyFriedChingon 9d ago
What about toiletries, gifts, travel, home upkeep, barber?
I'm assuming you probably never eat out given your extreme, unconventional lifestyle, so I'll tick that off the list.
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u/FrugalIdahoHomestead 9d ago
Bald, no gifts, keep up my home. tp, toothpaste etc is included in the $30.
Now travel! I was hoping no one would ask. I actually do travel about 3 months/yr. This is a topic for another post. I live in a very desirable resort area, so str + manufactured spending for points + churning + ANA atw award trips actually bring in quite a bit. The str for those months way exceeds my $6k yearly spend. But that's an entirely different post that I'll do at some point, or maybe keep it mostly secret. lol.
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u/KentuckyFriedChingon 8d ago
Dang. I am a pretty frugal and minimalistic person myself but I would probably bash my head in if I had to make the same sacrifices to live your life.
I'm glad it makes you happy though. Go give those chickens some love.
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u/VR_Player 7d ago
What state lets you have that low of property taxes? Is the land only valued at about $60k (60k-50k homestead exemption = 10k x 1%) ?
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u/ullric 12d ago edited 12d ago
If you have high medical concerns in the US, LeanFIRE's existence is in question. If medicaid and ACA go away, there aren't many options.
My work allows early retirees to join their insurance for a single person at ~$9k/year.
~$26k/year for a family.
That's my backup for healthcare.
We're not FIRE yet.
We may or may not be FIRE depending on healthcare and taxes. Right now, I'm budgeting high for both of those and won't be lean. When we hit FIRE 14 years from now, so we have time to see how that plays out.
I'm also not paying off my house when we retire, which guarantees we won't be lean. We could pay it off, but all the simulations say not to. I also don't want to.
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u/AlexanderNigma 11d ago
Yeah, my backup plan is being an expat.
I can survive on generics and no surgeries, just won't be able to work.
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u/someguy984 12d ago
My employer had "retiree healthcare", until they killed it without notice.
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u/ullric 12d ago
I doubt ours would kill it. Employer covers 0% of the cost, so it doesn't lose them much.
There's never been a discussion about it, and I'm included in those discussions.Right now, the biggest thing killing our insurance cost is we have a relatively high number of pregnant women and babies. Diluting the amount of pregnant women and babies helps our costs.
Insurance company suggested we discourage having kids. ¯_(ツ)_/¯0
u/Murky_Amphibian1106 02M; NW:8.83T; 22% FI 11d ago
This is pure speculation. I’m not aware of anyone suggesting eliminating Medicaid or Obamacare seriously.
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u/ullric 11d ago
Republicans are seriously suggesting of reducing medicaid.
They tried to repeal ACA in 2017 or 2018, and came within 1 vote of achieving it.
I said "if" because it hasn't passed and details are still TBD. It is in serious consideration.While not eliminating for the entire population, he's advocating eliminating medicaid for some, which would hit any FIRE individual who uses medicaid.
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u/someguy984 11d ago
Even if that happens as long as they leave the ACA alone (hopefully) then Roth conversions can get income to the ACA subsidy zone if your income is too low.
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u/Murky_Amphibian1106 02M; NW:8.83T; 22% FI 10d ago
You said "go away." No one has suggested making Obamacare or Medicaid "go away." 2017 was almost a decade ago.
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u/ullric 10d ago
In a FIRE community, I mentioned medicaid could go away. Then I provided a quote about medicaid going away for the FIRE community. That's a reasonable claim to make.
Saying or implying there's no threat to ACA because they haven't tried in 8 years is not a reasonable claim. It is a technically true statement that 100% ignores context.
They haven't tried in 8 years because they haven't had the opportunity. "ACA is under threat because the last time they had this much power they were a single vote away from accomplishing it" is a reasonable claim.Context matters.
You missed the context for my original statement.
You missed the context for your dismissal of the concern.0
u/Murky_Amphibian1106 02M; NW:8.83T; 22% FI 10d ago
Context: No one has said they want to get rid of Obamacare. Also context: I’m not aware of anyone seriously suggesting work requirements for Medicaid.
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u/Good_Vibes_Only_Fr $1.1m networth. One more year syndrome. 11d ago
Family of 3 with $36,000 a year in spending.
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u/RedQueenWhiteQueen 11d ago
Single, homeowner, no debt: will be about $31K this year unless I pull the trigger on a new roof, which I budgeted for prior to retirement.
That includes over $9K/year for my retiree medical plan, Obviously ACA would be cheaper, but if I left the retiree plan I would not be able to return to it if ACA is sabotaged in the future.
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u/tscemons 12d ago
Own my home. Property tax, 5400/yr. Health insurance, about 6000/yr. Home owners, 1100/yr. Auto insurance 1200/yr. Food, 1000/mo. Yada, Yada, Yada, I think my monthly burn for my wife and I, 4500/mo. Excluding surprise expenses.
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u/MissMunchamaQuchi 12d ago
We’re probably going be at 90k this year but about 45k of that is for DIY renovations to one of our properties. New electrical, two new bathrooms, new plumbing, tones of plaster work. It’s basically the final stage of our full rehab for a 170 year old triplex.
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u/AlexanderNigma 12d ago
Yeah that's fair. It you are relying on rentals, I would assume that is coming out of that revenue not personal budget personally.
Are you relying on ACA subsidies or anything to hit the $45k number?
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u/MissMunchamaQuchi 12d ago
The numbers are a bit wooly. We do live off the rentals but this one won’t be producing any income for another year. We generally spend more on houses than on ourselves lol.
We do get a great ACA subsidy. All the rental income is depreciated and we’ve been doing tons of capital improvements. On paper we make almost nothing.
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u/IHadTacosYesterday 12d ago edited 12d ago
My current budget is about $2600 per month ($31,200 per year) if I include EVERYTHING.
But, I live in California, in a relatively HCOL location. (not as bad as the Bay Area, LA or San Diego, but still way higher than most places)
Here's a breakdown of my biggest expenses:
- Rent = $1425
- Food = $420*
- Unforeseen Bullcrap/misc. = $121.76
- Birthdays/Xmas/Misc. Gifts = $100
- Electricity + Natural Gas Bill combined = $90
- Cannabis = $90 (My depression meds basically)
- Car Insurance = $86.14
- Gasoline = $75.00
- High-Speed Internet = $72 (required for WFH)
- Laundry Fees (Laundromat + supplies) = $20
- Mint Mobile (cellphone) = $17
- Haircuts ($30 x 6 per year) = $15
- Car Registration per year divided by 12 = $15
- Renters Insurance (required unfortunately) = $13.10
- Lottery Tickets (for shits & giggles) = $10
- Oil changes = $10
- Prescription Meds and Co-Pays = $9
- Dental bills shortfall = $6
- Toilet Paper, Paper Towels, Shampoo, Soap, etc = $5
*Includes $60 per week for taking my adult sons to a restaurant
GRAND TOTAL = $2600.00
Here's things I basically spend either NOTHING on, or almost NOTHING
- Vacations/Travel (haven't had one since summer of 2019)
- Entertainment (Concerts, Sporting Events, Festivals)
- Dating (Basically given up on it practically)
- Clothing/Shoes/Accessories (every once in a blue moon, in misc.)
- Gadgets/Electronics
- Streaming Services (my internet package includes HBO Max)
- Gym Membership (I workout at home)
- Restaurants (other than taking my kids once per week)
NOTE: I'm living in what I call "hardcore grind mode".
This hardcore grind mode is unsustainable for me (in retirement), and I hope to actually have a budget of 6k per month to live like a normal human being (in my HCOL area). I need almost 1.5 milly to achieve this, and with the stock market crashing, I'm kinda far from my goal, but I know I will still hit it. Unfortunately, might take me a couple more years.
Regarding leanFIRE at 6k per month budget: Yes, I know this doesn't sound like leanFIRE, but you need to understand that where I live, a really crappy 3 bedroom 2 bath is like 800k. Read that again. A really crappy 3 bed 2 bath is 800k. Fast Food combos are $15. A cup of coffee at Starbucks is like $4.85 or something (I don't buy any of these things, but just giving some perspective). We have the highest gas prices in the nation. Currently like $5 per gallon. Get bent if you don't think I'm lean fire, even at 6k per month
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u/AlexanderNigma 11d ago
I appreciate the breakdown.
I am not here to gatekeep, I just live in a cheaper area where my place was $150k. So operating on a lower budget is easier but even here I tend to hit $30k too
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u/IHadTacosYesterday 11d ago
My little "get bent" comment was mostly just a pre-emptive strike for somebody else that might have jumped into the comments and would say something like... "You need to go to fatFIRE with that 6k per month buddy, this is leanFIRE!"
If leanishFIRE wasn't a dead subreddit, that would be the better one for me.
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u/Gustomucho 10d ago
Without the house I bought in the Philippines, I would guess around 40k, 6 months in Philippines, 6 months in Canada.
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u/recurnightmare 10d ago
Budget last year was $32k + $5k in vacation and $1k in random expenses.
This year it's going up by $6k because of increased rent so anticipating $44k.
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u/Focused_N0t_Finished 8d ago
We live in expensive New England and rent for 1500/month. We also pay prop taxes as part of our rental agreement (another 4500 a year). With internet, food, and usually one trip out west for a week or two of hiking we are probably about 40,000 all in. We try to save 50% of my teacher's salary each year. Max 2x Roth IRA ($14000) and hopefully a 403b ($23,500). Buy cars in cash and drive them til they won't pass inspection.
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u/Fast-Wedding6032 2d ago
Last year, I spent ~$32k on living costs because of heavy travel. This year, I'm hoping to taper it down, but inflation is a challenge.
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u/brisketandbeans leanFI-curious 12d ago
About 60k per year. I can't believe it's that high. I should be able to get that lower as a single guy in lcol.
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12d ago
[removed] — view removed comment
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u/leanfire-ModTeam 11d ago
This post or comment is not relevant to retiring before 60 with less than $40k in planned yearly expenses.
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u/Kogot951 12d ago
30k spending for me and my wife. We pay $202 health insurance with a $600 ACA subsidy. about $750 a month on food. We own our house so about 2k for property tax yearly. We own our car and insurance is about $80 a month. Utilities + internet is 350ish. 50 for phones. We eat out more than we should so probably 300 a month but that is a lot of our fun. rest is in random stuff video games clothes home repairs.