Examples of Sample Budget for Early Retirement: 3 Practical Examples

Why Start With Examples Instead of Rules of Thumb

Everyone has heard the standard advice: save 25 times your annual spending, withdraw 4% a year, and you’re done. Sounds nice. But when you actually try to retire at 45 or 50, the gaps show up fast:

• Health insurance isn’t subsidized by an employer anymore.
• Housing costs don’t magically shrink just because you stopped working.
• Taxes shift as you move from salary to investment income.

That’s why walking through examples of sample budget for early retirement: 3 practical examples is far more useful than yet another generic formula. You can see how different choices on housing, location, and lifestyle ripple through the numbers.

Below are three budgets built around realistic scenarios in 2024–2025 dollars, using U.S. data sources like the Bureau of Labor Statistics (BLS) and healthcare cost estimates from government and nonprofit research.

Example 1: Lean Early Retirement in a Low-Cost City

This first example of a sample budget is for a single 45‑year‑old who wants lean FIRE in a mid-sized, low-cost U.S. city (think parts of the Midwest or South). No kids at home, modest condo already paid off, and a focus on keeping fixed costs low.

Key assumptions:

• Age: 45
• Location: Low-cost city (below national average rent and food costs)
• Housing: Mortgage-free condo, owner pays taxes, insurance, HOA
• Health insurance: ACA marketplace silver plan with income-based subsidy
• No debt

Monthly Lean FIRE Budget (2024–2025)

• Housing (taxes, insurance, HOA, maintenance): $750
  Property taxes and insurance around \(400, HOA and basic maintenance another \)350. This mirrors low-cost markets where median property taxes are well under national averages.

• Utilities & internet: $200
  Electricity, water, trash, and a modest internet plan.

• Groceries: $350
  Cooking at home most of the time, relying on discount grocers. BLS data shows single adults typically spend more, but this budget assumes intentional frugality.

• Dining out & entertainment: $200
  A few meals out, streaming services, and low-cost activities.

• Transportation: $250
  Paid‑off used car, gas, insurance, and maintenance. No car payment.

• Health insurance premiums: $350
  ACA marketplace silver plan with subsidies based on moderate taxable income. You can explore estimates using Healthcare.gov’s marketplace tools: https://www.healthcare.gov.

• Out-of-pocket health care: $100
  Copays, prescriptions, and occasional visits. For broader context on typical out-of-pocket costs in retirement, see the Employee Benefit Research Institute (EBRI) research: https://www.ebri.org.

• Travel: $150
  One or two domestic trips a year using budget airlines and off-peak timing.

• Clothing & personal care: $100

• Gifts & charity: $75

• Household & miscellaneous: $175
  Cleaning supplies, small repairs, subscriptions, etc.

• Long-term home repairs & big-ticket items sinking fund: $150
  Saving monthly for eventual roof, appliances, and car replacement.

Total monthly spending: ~$2,850
Total annual spending: ~$34,200

Using a 3.5%–4% withdrawal rate, this lean early retirement budget implies a portfolio in the range of \(850,000 to \)975,000. That’s one of the best examples of how a paid-off home and modest lifestyle can dramatically lower the required nest egg.

Concrete Takeaways From This Lean Example

Some of the most useful examples include the specific trade-offs:

• Choosing a mortgage-free condo over a larger house saves \(800–\)1,500 per month in many markets.
• Driving a paid‑off used car instead of financing a new one can free up \(300–\)600 monthly.
• Cooking at home and limiting dining out to $200 a month is another real example of how lifestyle choices directly shrink your FIRE number.

If your current spending is double these categories, you don’t need to copy this life. But this is one of the best examples of how aggressive frugality plus location arbitrage can make early retirement possible on a relatively modest portfolio.

Example 2: Balanced Early Retirement for a Couple in the Suburbs

The second scenario is one of the most relatable examples of sample budget for early retirement: 3 practical examples: a married couple, both 50, leaving full-time work with a paid-off home in a typical U.S. suburb. They want a comfortable—but not flashy—lifestyle, plus some travel and hobbies.

Key assumptions:

• Ages: 50 and 50
• Location: Average-cost U.S. suburb
• Housing: Paid-off single-family home
• Children: Grown and financially independent
• Health insurance: ACA marketplace silver plan for two
• One spouse may do small part-time work for fun, but budget doesn’t rely on it

Monthly Balanced FIRE Budget (Couple)

• Housing (taxes, insurance, maintenance): $1,200
  Property taxes \(500, homeowners insurance \)150, routine maintenance and repairs $550. Older homes often average 1–2% of home value annually in maintenance.

• Utilities & internet: $300
  Electric, gas, water, trash, and mid-tier internet.

• Groceries: $750
  Mix of cooking at home and some higher-quality ingredients. BLS data shows two-person households often fall in this range or higher.

• Dining out & entertainment: $500
  Regular dinners out, movie nights, memberships to local attractions.

• Transportation: $600
  Two paid-off cars, gas, insurance, routine maintenance, plus a sinking fund for eventual replacement.

• Health insurance premiums (ACA, 2 adults): $800
  This assumes some subsidy via income management and possibly using Roth conversions strategically. You can review ACA subsidy rules at Healthcare.gov: https://www.healthcare.gov.

• Out-of-pocket health care: $200
  Copays, prescriptions, dental cleanings, and vision care. For a sense of long-term health cost risk, the NIH and related research highlight rising medical costs with age: https://www.nih.gov.

• Travel: $600
  One international trip plus a few domestic trips each year, using shoulder-season flights and mid-range hotels.

• Hobbies & recreation: $300
  Golf, fitness memberships, classes, and local events.

• Clothing & personal care: $200

• Gifts & charity: $200

• Household & miscellaneous: $300

• Home upgrades & big-ticket sinking fund: $300
  Saving for roof replacement, HVAC, and other capital expenses.

Total monthly spending: ~$6,250
Total annual spending: ~$75,000

At a 3.5% withdrawal rate, this couple needs around \(2.1 million invested. At a more aggressive 4% withdrawal rate, the target drops to about \)1.9 million. This is one of the best examples for middle- to upper-middle-income couples aiming for a comfortable, mainstream early retirement.

How This Example Compares to Real Averages

To see why this is realistic, compare it with national data:

• The BLS Consumer Expenditure Survey shows average annual expenditures per consumer unit in the U.S. above $70,000 in recent years, and trending upward with inflation: https://www.bls.gov/cex/.
• Health costs tend to rise faster than inflation, which is why this example builds in higher healthcare spending and a meaningful sinking fund.

This example of a balanced early retirement budget highlights how:

• Paid-off housing keeps the total manageable, even with generous travel.
• Health insurance plus out-of-pocket costs can easily top $1,000 a month for a couple—one of the most underestimated categories in early retirement.
• A dedicated sinking fund for home and car replacement is non-negotiable if you want stability through your 60s and 70s.

Example 3: High-Spend Early Retirement With Travel and Big Hobbies

The third scenario is for readers who want to see real examples of a higher-spend lifestyle. Think: a 52‑year‑old single early retiree in a high-cost coastal city, renting a nice apartment, traveling frequently, and spending more on experiences.

Key assumptions:

• Age: 52
• Location: High-cost U.S. coastal city
• Housing: Renting a one-bedroom apartment
• No dependents
• Health insurance: ACA plan without large subsidies (higher income, more Roth conversions, or taxable account withdrawals)

Monthly High-Spend FIRE Budget (Single)

• Rent: $2,500
  Not luxury, but a solid one-bedroom in a desirable neighborhood.

• Renters insurance & utilities: $350
  Electricity, water, internet, trash, and renters insurance.

• Groceries: $600
  Higher food prices plus a mix of organic and convenience items.

• Dining out & nightlife: $800
  Frequent restaurant meals, bars, and social events.

• Transportation: $350
  Mostly public transit and rideshares, occasional car rental.

• Health insurance premiums: $650
  ACA silver plan without major subsidy. Actual quotes will vary by state and age.

• Out-of-pocket health care: $200

• Travel: $1,000
  Several international trips a year, business-class flights every few years, and more frequent weekend getaways.

• Hobbies & memberships: $400
  Think sailing club, premium gym, photography gear, or similar.

• Clothing & personal care: $300

• Gifts & charity: $250

• Household & miscellaneous: $300
  Home goods, electronics, and subscriptions.

• Big-ticket sinking fund (future car, gear, relocation): $300

Total monthly spending: ~$8,700
Total annual spending: ~$104,400

This example of a high-spend early retirement budget implies:

• At a 3.5% withdrawal rate: $2.98 million portfolio
• At a 4% withdrawal rate: $2.6 million portfolio

In other words, you can absolutely retire early in a high-cost city with heavy travel and hobbies—but you need the portfolio to match. Among the best examples of reality-check budgets, this one shows how quickly housing and lifestyle inflation drive up the required savings.

6–8 Concrete Budget Choices That Make or Break Early Retirement

Across these three examples of sample budget for early retirement: 3 practical examples, a handful of line items dominate the math. Here are specific, real examples of decisions that move the needle:

• Housing choice:

  • Lean example: Paid-off condo at $750/month all-in.
  • High-spend example: $2,500 rent.
    That’s a \(1,750 monthly swing, or \)21,000 a year—enough to change your required portfolio by roughly $500,000 at a 4% withdrawal rate.

• Car ownership vs. car-light life:

  • Two paid-off cars in the couple’s example cost about $600/month.
  • Public transit plus rideshares in the coastal-city example is around $350/month.
    Downsizing to one car or going car-free is one of the best examples of a lifestyle change that frees up hundreds of dollars every month.

• Health insurance strategy:

  • Lean example: $350/month thanks to ACA subsidies and lower income.
  • High-spend example: $650/month with fewer subsidies.
    Managing taxable income through Roth conversions, tax-efficient withdrawals, and timing Social Security can materially change your premiums.

• Travel expectations:

  • Lean example: $150/month (budget domestic trips).
  • Balanced couple: $600/month.
  • High-spend example: $1,000/month.
    These are real examples of how travel alone can add \(10,000–\)12,000 a year to your required retirement income.

• Home maintenance and sinking funds:

  • The couple’s budget includes $300/month for big-ticket home items.
  • The lean example includes $150/month.
    Skipping this is one of the classic failure points. Roofs, HVAC systems, and cars don’t care that you’re retired—they still fail on their own schedule.

• Gifts and charity:

  • All three examples include \(75–\)250/month.
    Many people forget this category entirely when planning, then feel squeezed when they want to help family or causes.

• Inflation planning:
  All three examples assume today’s prices. In reality, your plan has to withstand decades of inflation. Historic long-term U.S. inflation has averaged around 3%, but the 2021–2023 spike was a reminder that short bursts can be much higher. The Federal Reserve’s data and commentary are worth watching: https://www.federalreserve.gov.

These are not abstract ideas—these are concrete, line-by-line examples of where your early retirement budget will either hold or crack.

How to Use These Examples to Build Your Own Early Retirement Budget

The point of walking through these examples of sample budget for early retirement: 3 practical examples is not to copy them blindly. It’s to give you a realistic framework.

Here’s a simple way to adapt them:

• Start with the example that feels closest to your life today—lean, balanced, or higher-spend.
• Swap in your actual housing cost, including taxes, insurance, and HOA or rent.
• Adjust health insurance and out-of-pocket health care using current ACA quotes and your own medical history.
• Be brutally honest about travel, dining out, and hobbies. If you consistently spend \(800 a month on restaurants now, expecting to drop to \)200 in retirement is wishful thinking.
• Add a sinking fund category for home, car, and big-ticket items if you don’t already have one.
• Annualize the total and multiply by your preferred withdrawal rate to get a first-pass portfolio target.

From there, you can refine with tax planning, Social Security timing, and investment strategy—ideally with a fee-only planner or fiduciary if your situation is complex.

FAQ: Examples of Early Retirement Budgets

What are some realistic examples of early retirement budgets?

Realistic examples include a lean single-person budget around \(34,000 per year in a low-cost city, a balanced two-person suburban budget around \)75,000 per year, and a higher-spend coastal-city lifestyle around $100,000 per year. Each example of a budget reflects different choices on housing, health insurance, and travel.

How much money do I need to retire early based on these examples?

Using these examples of sample budget for early retirement: 3 practical examples, you get rough portfolio targets:

• Lean single: \(850,000–\)975,000
• Balanced couple: \(1.9–\)2.1 million
• High-spend single: \(2.6–\)3.0 million

These are starting points, not guarantees. Market returns, inflation, taxes, and health events can all shift the numbers.

Can I mix and match categories from different examples?

Yes. Many people use a hybrid approach. For instance, you might keep the lean housing and transportation from the first example but adopt the travel budget from the second. The best examples are the ones you adapt to your own reality.

Where can I find more data to validate my own early retirement budget?

Useful sources include:

• Bureau of Labor Statistics (BLS) Consumer Expenditure Survey for real-world spending averages: https://www.bls.gov/cex/
• Healthcare.gov for current ACA health insurance premiums and subsidies: https://www.healthcare.gov
• NIH and EBRI research for long-term health and retirement cost trends: https://www.nih.gov and https://www.ebri.org

Using these sources alongside the real examples in this article will help you pressure-test your assumptions.

Early retirement is not just about hitting a magic portfolio number. It’s about building a spending plan that can survive real life. The examples of sample budget for early retirement: 3 practical examples here give you a grounded starting point. From there, the question becomes simple: what do you need to change—today—to make your numbers work?