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My Groovy Ranch update for this week is pretty thin gruel. So to thicken things up, I decided to add an opus update and another retirement spending update. Here we go.
Groovy Virtual Book Tour
My opus, The Groovy Guide To Financial Independence. has been on sale for a month now and it’s closing in on 150 units sold. Watch out J.K. Rowling!
In one sense, 150 units are squat. But in another more important sense, I’m totally jacked that nearly 150 people decided to relinquish their hard-earned money and willingly subject themselves to my wacko scribblings. I am truly humbled and thankful.
But you don’t get my sales numbers without a good deal of promotion. To date, I have been interviewed by five podcasters. Here are the three interviews that have aired so far.
Stacking Benjamins – October 1
Countdown to FI – October 2
Everyday Money Show – October 8
The two interviews that have yet to air are the ones conducted by Kate Nesi and the Fire Drill ladies. I’ll keep you posted when they go live. In the meantime, here are my quick impressions of my virtual book tour to date.
- The FI podcasters are by far the most gracious podcasters in the podosphere. What other podcasters would allow a virtual unknown to promote his book with their audiences?
- A few months back, Mrs. Groovy found a mention of me on Reddit. Someone described me as a “nutter” who sounded like Ray Romano. None of my interviews, I’m afraid, will dissuade anyone from disagreeing with this Reddit poster.
- Getting invited down to “the basement” was truly the highlight of my blogging career. Joe (Stacking Benjamins) is one righteous dude. And he really knows his sh%t when it comes to hockey.
- Mr. CTF (Countdown To FI) is very cerebral and very brave. That means a conversation with him can quickly get dark and uncomfortable. The good news is that he has a keen sense of when to walk things back from the abyss. Yes, it’s a scary world out there, and we can’t shy away from addressing that scariness. But dwelling on it isn’t the answer. I admire Mr. CTF for adroitly going where we sometimes have to go and then exiting the topic with aplomb.
- Jason (Everyday Money Show) is one smart cookie. He really asks poignant questions. In fact, his questions were so poignant, I had a number of epiphanies. Just wait until I roll out opus two! Oh, and his dog Randy is quite adept at sniffing out great articles for discussion.
- Kate (Lifelong Learning) has the perfect voice for podcasting. It just exudes calmness and friendliness. I can listen to it for hours. Hey, Kate, have you ever considered doing voice-overs for a side-hustle?
- I can’t say enough about Gwen and J (Fire Drill Podcast). They have really found their calling. We talked for over forty-five minutes but it felt like five. The Fire Drill ladies were that professional—and that engaging.
- Finally, I still get nervous every time I do a podcast. The fear of public speaking is going to haunt me until my death. The only thing that saved me was that most of these podcast interviews took place in the afternoon or early evening. That means I was able to imbibe on some liquid courage before and during the interviews. Whew!
Groovy Follow-Up on Two Year Retirement Spending
In last week’s Groovy Ranch Update 35, I took a 30,000-foot look at our spending and income during our first two years of retirement. One commenter, The Crusher, wanted a more detailed look at our spending. Here’s what he had to say.
I was wondering if you would be willing to share some of your two year annual expenses at a high level by main categories (housing, transportation, food, restaurants, travel, etc). We are trying to get at our expenses and are struggling with how normal people get to $35K or less a year in expenses.
Since The Crusher granted that I was normal—I don’t get that very often—and since I was curious about my exact spending patterns, I decided to provide a high-level look into our spending. Here we go.
| Item | Total Two-Year Spending | Yearly Average | Monthly Average | Percentage of Spending |
|---|---|---|---|---|
| Vacation | $10,927 | $5,464 | $455 | 15.03% |
| Food | $10,107 | $5,054 | $421 | 13.90% |
| Housing (Taxes, HOA, & Insurance) | $7,196 | $3,598 | $300 | 9.90% |
| Health (Medical Insurance, Rx, Dental, Etc.) | $7,014 | $3,507 | $292 | 9.65% |
| Transportation (Gas, Insurance, Registration, Maintenance, Repairs, Etc.) | $5,256 | $2,528 | $219 | 7.23% |
| Utilities (Electricity, Gas, Phone, & Water) | $4,984 | $2,492 | $208 | 6.85% |
| Gifts | $4,372 | $2,186 | $182 | 6.01% |
| Dining Out | $3,648 | $1,824 | $152 | 5.02% |
| Income Taxes | $2,906 | $1,453 | $121 | 4.00% |
| Cell Phones | $1,793 | $897 | $75 | 2.47% |
| Internet | $1,326 | $663 | $55 | 1.82% |
| Clothing | $671 | $336 | $28 | 0.92% |
| Entertainment | $630 | $315 | $26 | 0.875 |
| Other | $11,888 | $5,944 | $495 | 16.33% |
| Totals | $72,718 | $36,359 | $3,030 | 100.00% |
By looking over our spending patterns for the first two years of our retirement, I found myself conjuring up the following axioms.
Win housing, clear a very spacious path to financial independence.
Win housing, transportation, and taxes, clear a super spacious path to financial independence.
Because Mrs. Groovy and I own our house and car outright—and because we live in low-tax North Carolina—housing, transportation, and taxes are roughly 25% of our annual income. And we’re not working! If we were still working and could bolster our household income with an extra $125K, housing, transportation, and taxes would be roughly 15% of our annual income.
See what I mean about the power of winning the housing game? See what I mean about the power of winning the housing, transportation, and taxes game? Given our income, Mrs. Groovy and I are leading shockingly groovy lives, and this is only possible because we are mortgage and rent free, drive a beater, and don’t live in a state with a ravenous tax bite.
Groovy Ranch
A lot is going on at Groovy Ranch. Unfortunately, because of Hurricane Michael, Mrs. Groovy and I weren’t able to visit there yesterday. We therefore only have one picture of Groovy Ranch from earlier in the week. Check out our ceiling fan in the great room.
Since the lighting fixtures in the great room were installed, the cement walkways have been poured and the hardwood floors have been stained. Next week, kitchen cabinets make their appearance in Groovy Ranch. As Mrs. Groovy is wont to say: “This sh%t is getting real.”
Final Thoughts
Okay, groovy freedomist, that’s all I got. Have a great weekend, and enjoy the latest kick-ass installment of Talking Trash. Peace.
How is 150 squat?!!? That’s amazing!! I don’t think I would move…8 if I wrote a book hahah. (I’m serious.)
You’re too kind, Lily. I’m blushing right now. But something tells me you’d do fine with your first book. Your writing is too infectious not to be a best-seller. Hey, if you ever decide to write your opus, will you let me do a sidebar?
Just so you know – two of your book sales reside here in the UK. I bought it the day it hit the virtual shelves and then texted my twin-brother who bought his own copy. 99 pence ! Best. Value. Ever.
As with lots of things (air-con, microwave ovens, margarine, drive-thru) us Brits, I reckon, are five to ten years behind the FI curve (The Escape Artist being the exception of course). But your book and your blog are helping to close that gap more quickly, I’m sure. ( Oh, kudos to Mrs. Groovy and others on great copy-editing. I think it’s blemish-free.)
I became familiar with The Escape Artist through Choose FI. And frankly, I’m shocked that the FIRE movement is relatively small in Britain. Who would have thought that Americans would have culturally pioneered something before the Brits (FI and the FIRE movement). You definitely don’t see that too often. But I’m sure you guys will soon be teaching us a thing or two about FI in not time. There’s just too much talent of your side of the pond for that not to happen. Thanks for stopping by, AD. And thank you for your kind support. I really appreciate it.
I’m pretty sure you’ve mentioned Kate Nesi’s podcast before, as that’s how I got onto it. I’ve been enjoying listening to them.
And I LOVE that chart! It boils all the data down to its essentials and it’s super-easy to understand. Even a numeral-phobe like myself can read it.
Kate is a joy. Glad others are enjoying her podcasts as well. And thanks for showing some love for my chart. It was really easy to make, considering that I’ve been tracking the Groovy expenses for almost four years now. Yes, it pays to be a money nerd. Thanks for stopping by, FD.
Great job on the Groovy book tour! And thanks for sharing your detailed numbers. If I’d stop going to the doctors and pharmacy for my vacation, my numbers would look a lot better! 😉 But you’re absolutely right that winning at housing, transportation, and taxes helps clear the way to FI. You’ll inspire a lot of folks with your story.
Gary @ Super Saving Tips recently posted…How to Save $25,000/Year Just By Retiring!
Thank you, Gary. It’s amazing what a chunk the big three (housing, transportation, and taxes) take out of a family’s budget. I’m frankly shocked that the tiny home movement has remained so fringe. In my mind, freedom is more important than space. But then again, I used to love airplane food when airlines served food. Cheers.
Congrats on all the interviews! And thanks for the more intricate spending breakdown. It’s pretty impressive how low you’ve kept costs in the past two years. Especially in insurance, which is a huge expense for me. (Then again, I have the highest plan since I know I’ll have plenty of medical expenses. And because I’m paranoid. Let’s not forget that.)
Thank you, Abigail. I really appreciate it. Mrs. Groovy and I are very fortunate. We’re income poor but asset rich. So we have plenty of money to live on, but a very modest annual income. That means we’re entitled to Obamacare subsidies. If it weren’t for the faulty means-testing of the Obamacare program, our insurance expenses would easily be the most costly category of our annual expenses. I implore my fellow Americans to add wealth to Obamacare eligibility, but nobody listens to me. Hope all is well in AZ. Cheers.
Someone accused you of being normal! I’m not sure if I would see that as a compliment or insult. Everyone knows you are striving to be half-normal. I admit we got stalled on the book because we’re reading aloud. 3 more chapters and we’ll have it in the bag. I promise an Amazon review is coming. Today we are on a long drive up to the Sierras to hike in the fall colors, so some reading in the car might get us there. I love it when a day trip and FI come together.
No worries, Susan. I can’t wait to read your review. And I can’t wait to see pictures of the Sierras on your blog. The fall colors must look spectacular.
which category contains the booze? our spending is remarkably similar, groovies. almost every line item is the same. our tax bill is higher because of ny state, as you are well aware and maint. is kinda high on this old house.
how do you owe income tax when not working? roth conversions? dividends?
freddy smidlap recently posted…Market Blood Bath Reflections
Hey, Freddy. We get a pension from New York State and dividends from our brokerage accounts. That comes to roughly $30K a year, and the feds and NC want their cut.
Congrats on the 150 book purchases!
I am definitely going to be getting to it soon, so you can at least sleep comfortably knowing you will for sure get 151 sales before its all said and done;)
And I feel you on the public speaking. I am not as nervous when I am in front of people, but for some reason I tense up when it’s over the phone / computer. Not being able to see faces and their expressions throws me for a loop.
Hey, Sean. Thank you for your support. I really appreciate it. Yeah, it’s a amazing. When I’m talking to a podcaster pre-recording, everything’s fine. But as soon as we go live, I start to freak out. Well, I got a bunch of podcasts to go. Hopefully, I’ll be able to shake this phobia. Thanks for stopping by, my friend. Cheers.
It amazes me how much cheaper taxes are in the South over the Northeast. I pay 3x as much, actually nearly 4x, and I have neither a large (1800sqft) nor an amazing location.
We will be retiring to a low cost area!
Even your utilities are way better! I shop around for cheap electric suppliers and oil. I put in air source heat pumps to save there.
The point being that retirement may come sooner so long as it stays cheaper down there!
My property taxes on my Charlotte home were $2,100 for the year. And my home was a nice home (2,000 sq ft) in a nice neighborhood. Our property taxes in our new home in Louisburg will probably be less than $2,000. Property taxes on a similar home on Long Island would easily be $12,000. Simply by moving to North Carolina, I will easily shave $100,000 off my housing expenses over the next 10 years. I love Long Island, but I love my freedom more. Thanks for stopping by, Mr. GenXFire. Can’t wait to have you join the team down here. Cheers.
Fingers crossed for your ranch. Already have two friends dealing with significant damage to their FL homes, now waiting to see about the VA flooding.
Thank you, Mr. Shirts. We were very fortunate. Just a lot ran. Dodged two bullets this month.
Hey, Mr. Shirts, I almost forgot. How did you make out? Are you in Virginia?
150 sold, that’s awesome dude! Not bad for a crazy nutter!
Absolutely, my friend. I’ll take it and love I can get.