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Income to hire regularly


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I am trying to gauge if at 52 my annual income is enough to hire providers ( $1000 per month or so). Obviously I can't ask fellow forum participants their net worth, but want to ask what percentage of your annual income you spend on hiring providers. As inflation went up I feel like I have been pushed down to a lower income stratum (eg I find decent hotels too expensive now,) and I want to make sure I am not splurging beyond my means. 

Edited by jessmapex
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  • + jessmapex changed the title to Income to hire regularly
6 hours ago, jessmapex said:

Yes, so far I have been doing $500 - $1k a month on providers . Still have my job, and have well above median US savings in retirement accounts ( IRAs and 401K).

 

I mainly hire for massages - which is cheaper than escorts. I classify it as “Wellness” in my budgeting tool.  Total annual expense is less than 5% of my gross income. My rule is that I have to meet basic expenses, max out funding my 401k, IRA and HSA before I can spend on wellness.  If a year’s wellness spending exceeded 1% of my net worth, I would be worried.  That is my 2c

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13 hours ago, jessmapex said:

I want to make sure I am not splurging beyond my means. 

FWIW @jessmapex my approach was different. I first worked out what my level of spending would be for a comfortable retirement. Then I tripled it. That gave me my target retirement income after tax. It allows for inflation, tax changes, currency fluctuations etc. I also assumed I’d earn only 3% after tax on my capital. 
 

I suggest you do your own calculations and use modest or conservative rates of return as everyone spends differently and enjoys life in myriad different ways. Also everyone’s health and views on longevity will be different.

You did ask about comparative spending. I’ve been retired for a long time, but in my 50s, I was very sociable. I dated a lot of nice young men and I spent readily. My annual ‘hobby’ (or wellness) spending peaked at about $70000 but most years it averaged $15-20000. I don’t regret it as I had a great time. Now I’m older, I still save (ie don’t spend all my pension income) and my investment income is automatically reinvested.

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Thank you all for the guidance. As a left-brained person, I am not particularly money-savvy, but know enough to get by. I have been able to maintain a diverse portfolio of investments mostly in ETFs. I also use robot investors like Wealthfront , Betterment etc since I do not know how to pick stocks myself.

In my early 50s I am feeling pretty lost in life as I don't know where I am headed next, what kind of support system I will have as I become old and frail etc. Friends from 20s and 30s left me due to political differences that peaked during COVID.  Lost my father last year, and Mom is in her last years. 

This forum has been a good support system .. especially sage advice from the people ahead of me in this journey called life.

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5 hours ago, jessmapex said:

In my early 50s I am feeling pretty lost in life as I don't know where I am headed next, what kind of support system I will have as I become old and frail etc. Friends from 20s and 30s left me due to political differences that peaked during COVID. 

Sadly that's not an unusual story.

As we get older sometimes we need different kinds of friends. And the reliable love most get from parents is something none of us get to keep.

Planning your old age is tricky because we never really know what's ahead of us. But being a good friend to others who share your outlook in life are your key to feeling safe. Avoid self centered people and reach out to the givers.

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  • 4 months later...
On 4/25/2023 at 4:00 PM, jessmapex said:

In my early 50s I am feeling pretty lost in life as I don't know where I am headed next, what kind of support system I will have as I become old and frail etc. Friends from 20s and 30s left me due to political differences that peaked during COVID.  Lost my father last year, and Mom is in her last years. 

Try not to let it bother too much.  Believe me, when you are old and frail, no one wants to bother with you (that includes your own children).  I've seen it time and time again. You are not alone in feeling this way. 

Edited by augustus
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  • 4 months later...
On 4/25/2023 at 5:49 AM, FrankR said:

I mainly hire for massages - which is cheaper than escorts. I classify it as “Wellness” in my budgeting tool.  Total annual expense is less than 5% of my gross income. My rule is that I have to meet basic expenses, max out funding my 401k, IRA and HSA before I can spend on wellness.  If a year’s wellness spending exceeded 1% of my net worth, I would be worried.  That is my 2c

Interesting angle.

My MENtal Health (love that term!) spending is typically a bit more than 3% of my monthly income.  Annualized, though, it's less than a quarter of a percent of my net worth, so I guess it's sustainable.  Besides, spending that money helps me manage the stresses that accompany the career that provides the current monthly income and accumulation of that net worth.  I spend far more on far stupider things.  🙂

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A couple of buds on this board I know go to Brazil once or twice per year for an all-out, weeklong pigfest. 

The cost of providers is 10% of US, and so many hot Latin boys to choose from!  They will usually hire one or 2 for the entire week, and supplement with others.

Now that's what I call a Value Proposition!

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On 4/25/2023 at 8:03 PM, BonVivant said:

Also: you have to do things and enjoy life when still able. No point having oodles of cash if you can’t enjoy later in life. Just my three cents. 

Echoing this...  my mom never calculated her net worth. Kept working until disability forced her into retirement. I thought the reassurance that she was financially set for retirement would have been a comfort. Instead I got the reply, "what good does this do me? Money can't reverse this. (Wheelchair - mobility issues)"  

After that - "I'd rather die while I'm living; then live while I'm dead." Growing older but not up - Jimmy Buffett became a mantra.  Save for the rainy day by all means; but don't forget to enjoy life today. 

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My dad did not reach 70.  At the end he regretted not having more fun in life.  Not sure what kind of "fun" he meant.

At least Dad left Mom a comfortable life.

It's a gamble though, having enough money until the end.

So maybe there is not a perfect answer to your question, how much $$ to spend on "fun".

For me, I spend nothing on casinos or ocean cruises.  I'm happier supporting a nice provider with my business.

I do like the above idea that someone drove Uber to pay for his "fun".

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  • 1 month later...
On 4/25/2023 at 1:00 PM, jessmapex said:

In my early 50s I am feeling pretty lost in life as I don't know where I am headed next, what kind of support system I will have as I become old and frail etc. Friends from 20s and 30s left me due to political differences that peaked during COVID.  Lost my father last year, and Mom is in her last years. 

I only found this thread now, I don't look in the Financial Forum often.  I hope you have had a good 2024 and have replaced some of those friends you lost to politics.  Condolences on Mom's failing health and the loss of Dad (Father).

Edited by Rod Hagen
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  • 1 month later...

I’m spending about 7% of my gross annual income and it feels like too much. 

Lately I’ve been taking notes after I leave a spa and I’m finding that most of the time it’s not worth it.

Kind of want to cut it out altogether tbh but I have a stressful corporate job and along with edibles it’s the only thing that lets me decompress and unwind. 

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Ha!  If only some escorts understood how little money people with regular 9-5s take home after taxes, retirement contributions, etc… I know my take-home is in reality a fraction of what sounded like a really nice income a few years ago.  I don’t know if an escort would be turned on or appalled by the fact that if I give him $400, that is half of what I take home in a week!

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2 hours ago, ShortCutie7 said:

Ha!  If only some escorts understood how little money people with regular 9-5s take home after taxes, retirement contributions, etc… I know my take-home is in reality a fraction of what sounded like a really nice income a few years ago.  I don’t know if an escort would be turned on or appalled by the fact that if I give him $400, that is half of what I take home in a week!

I suspect he'd be much more concerned with what percentage that was of what he took home that week.

Kevin Slater

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1 hour ago, Kevin Slater said:

I suspect he'd be much more concerned with what percentage that was of what he took home that week.

Kevin Slater

I’m not saying a client’s income should be a provider’s concern at all, I’m saying just the perception of paying 20 hours’ worth of income for 1 hour of work could have an impact on the dynamic.  It could go several ways (ie “wow, he must really want me and value my time” or “this loser has to work 20 hours to give me what I command in one hour”).

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On 4/25/2023 at 2:55 AM, jessmapex said:

I am trying to gauge if at 52 my annual income is enough to hire providers ( $1000 per month or so). Obviously I can't ask fellow forum participants their net worth, but want to ask what percentage of your annual income you spend on hiring providers. As inflation went up I feel like I have been pushed down to a lower income stratum (eg I find decent hotels too expensive now,) and I want to make sure I am not splurging beyond my means. 

As of today, this is how my monthy expenditure breaks down (in US dollars)

Income: $1,953

Known Expenditure (Bills that are pre determined): $685

Unknown expenditure (Bills that are determined by use of materials): $189 as an average

Food Bills: $201

Overall monthly increase in savings: $878 (which is then used for things such as trying to get to events, if the train network is collapsed by idiots trespassing)

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On 4/1/2024 at 5:29 AM, Welshman said:

Food Bills: $201

Overall monthly increase in savings: $878

I congratulate you on being thrifty @Welshman.

If you’ll permit me an observation, how is it that you spend so little on food? Do you follow quite a strict diet?
 

I’m fit and healthy, but I spend far more on food as I regard good nutrition as very important. 

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