My Second Case Study

Annual Salary of $64,000

27 Years Old

Male

Houston

**BREAKDOWN**

$18,000 = 401k Contribution, Tax Deferred ($778 biweekly, for my first week of 2016 I accidentally contributed $1,300 so it lowers my monthly for the rest of the year)

$18,000/ $64,000 * 100 = 28.13% into 401k

$5,500 = Roth IRA

$5,000/ $64,000 * 100 = 7.13% into Roth IRA

$6,400 = Tithes

$6,400/ $64,000 * 100 = 10% into Tithes

$5,041.25 = Taxes

Annual Sal: $5041.25/ $64,000 * 100 = 7.88% into Average Tax Rate

$11,000 = Gas, Car Insurance, Rent, Misc. ($900 per month)

$11,000/ $64,000 * 100 = 17.19% into Gas, Insurance, Rent, Misc.

$4,800 = Food ($400 per month)

$4,800/ $64,000 * 100 = 7.5% into Food

% Total of Annual Spent so far = 77.83%

100% of annual - 77.83% = 22.17% = $14,188.8 Goes to Extra Curricular

35.26% = currently going into Savings/ Investments in 401k, Roth IRA

Planned Expenses for 2016:

Maybe a trip out of town. (Could cost up to $1,500)

I want to have a home gym vs having a Planet Fitness membership monthly rate of $20 (Could cost up to $900. Power Rack, Rings, Weights, etc.)

A Tablet (Could cost up to $500)

New Tires (Could cost up to $400)

If I want to raise Savings/ Investments to 50% from 35.26%, 15% or $9,600 annual, $800 monthly must go to Taxable Accounts

Paycheck bi-weekly = $2,078.91

minus $778 = 401k

minus $220 = Roth IRA

minus $400 = taxable accounts

minus $200 = food for two weeks

minus $450 = Gas, Car Insurance, Rent, Misc. for two weeks

minus $220 = Tithes

= $-189.09 (why am I in the negative here? Where did my calculations go wrong?)

Please help with my case. I have no idea how I'm in the negative with my bi-weekly when I computed everything.

Also, please advise areas where I can reduce payments. Please note, some are pretty conservative numbers. Example: I don't think I actually spend $100 every week for food, maybe once a month I do.

EDIT::

I caught my error, $800 taxable accounts should be $400 instead since it's biweekly. But even then, I think I'm still in the negative.