Cost of Living

When considering retirement I always wondered how much it would cost to live. There are lots of estimating models and advice in the media and literature but I've found that the cost of living really depends on individual post-work lifestyles and probably varies greatly. One can always plan/guess but who knows what their post-work lifestyle will be until it happens:)

I no longer have the high cost of business clothes or dry cleaning but now I spend 2-3x more on groceries because I eat at home more often and because I'm very particular about food and nutrition. Savings from commuting to/from work are offset by an increase in personal travel. To date, medical costs are about the same but this could change significantly. I spend about the same now on gym membership as I did while working; I've always belonged to a gym. Not being a homeowner eliminates home maintenance and insurance costs but (depending on my situation) I may rent and still pay utilities. I now have storage costs that I didn't have when I owned a home; household costs are about the same. Vehicle insurance and maintenance costs remain the same although I'd like to eliminate or significantly . Costs for books and entertainment are about the same now as when I was working. Costs for material things is way down.

One thing I found very useful was to diligently track my daily expenses for the first year of retirement; probably would have been a good idea to also track expenses while working but who has the time:)  The cost of living largely comes down to choice; some things are necessities while much of what I purchase is discretionary. It would be difficult to live comfortably under $4k/month.