I am sure to receive a few punches to the face, but I am posting since I need a few.
The crux of my challenge (which a punch to the face may cure) is I am taking a break from work to raise my 2 boys (who are 5 and 7) and I am recognizing I do not want to go back to work as the corporate drone I once was. On the positive side while I was working we saved and so I think that our retirement accounts are healthy (though my husband is skeptical whether we will have enough). When I am 55 in 10 years I will qualify for $1,000/ month pension and healthcare from my former employer if they are still in business (the scariest, best negotiation that was incorporated in my severance package). Our mortgage ($1,000/ month) will be paid off in 8 years. We are currently insolvent, but if I can figure out a solution to make us solvent for the next 10-15 years I think we will be okay (the gap in our life/ plan). As unmustachian as it is, I have boxed myself in a bit. We love our house, our neighbors, and our nearby friends so we are not willing to move. We have roots. I needed to discover this methodology 15 years ago.
I use Mint and Personal Capital and as much fun as it is to track net worth, our monthly cash flow is hair-on-fire dreadful and keeps me from feeling good about our financials. Here is what our financial picture looks like. The figures are based on history. I budget, but I also consistently go over budget in 2 categories: food and travel
REVENUE Annual Monthly Comments
Hubby Wages $41,544 $3,462 This is after tax and after contributing $17,500 to 401K
EXPENSES Annual Monthly Comments
Food $15,000 $1,250 Punchworthy, huh? includes household (TP, cleaning supplies); entertain
Mortgage* $12,000 $1,000
Travel $7,500 $625 I feel a punch coming; did i mention we like to travel; we live to travel
Property Taxes* $7,200 $600
Kids $4,000 $333 Preschool is $180/ month
Gifts/ Charity $3,888 $324
Shopping/Misc $3,000 $250
Electric/Gas Utility $2,500 $208
Gas (car)* $2,400 $200
Lawn/ Garden $912 $76
Car Insurance* $887 $74
Home Insurance $809 $67
Entertainment $850 $71
Car Repair/ License $500 $42
Pool (annual membership) $450 $38 Punch in the face? I felt really bad when I bought in. Peer pressure won
Cell Phone $420 $35
Healthcare* $500 $42
Home Repair $400 $33
Sewer/ water* $360 $30
Umbrella Insurance $355 $30
Garbage* $288 $24
Health/ Fitness $230 $19
TOTAL EXPENSE $64,449 $5,371
NET LOSS ($22,905) ($1,905)
* What I consider fully fixed is $2,245/ month
NET WORTH
Cash $87,000
Taxable Investments $115,000
Roth IRA $237,000
Traditional IRA/ 401K $1,220,000
College Funds - 529 $24,000
Total Inv/ Cash $1,683,000
House $360,000
House Loan $(80,000)
Net Worth: $1,963,000
* We own 2 cars. A 2003 Toyota Camry and a 2010 Toyota Sienna
Asset Allocation:
Cash/ Bonds 11%
International Stocks 13%
U.S. Stocks 73%
Alternatives 3%
Total 100%
So there you have it. I have bared our financial picture for all to see. When I look at this I see no other option other than for me to find a way to bring in a couple thousand dollars a month (and perhaps do some trimming of what an MMM would consider a bloated spending pattern). And this is where my hubby and I disagree. And perhaps it is my ego I am tripping over. He would like me to find something I can do from home to avoid daycare expense. My cursory investigations have discovered that I can do book-keeping from home at what I consider a low pay. I am accustomed to what I used to be paid and it is hard for me to swallow $15/ hour (plus the work will not be satisfying compared to what I used to do). I would prefer to continue burning through our cash (which was saved to allow me to stay at home a while) and when both kids are both in school on a similar schedule find part time work. My husband is anxious because I don't know what that work will look like. I just know I do not want what I had. An intense, high pressure, deadline-frenzied job that demanded 50-60 hours/ week in an office with no window.
I am open to input and a punch in the face or two. Bring it on!
Thank you! I feel my perspective changed and shifted once I discovered this blog that is unlike any other financial blog I have ever encountered.