I am putting about 25% of household income into retirement and am going to have that to 30% in a year, but I would love to get any feedback on ways to bump that up. With current expenses and planned contributions, I won't be able to retire for 25 years. I went to college a little later than most and didn't save a bit beforehand. My wife and I are 27 & 30, respectively, with a current investment balance of $25,000.
Below is my planned budget:
Item | Monthly |
Jacinto Income | 3729 |
Mrs. Jacinto Income | 3640 |
VA Disability | 136 |
Bank Interest | 20 |
Gross Income | 7525 |
| |
Income Tax | 290 |
SS/Medicare | 537 |
| |
Healthcare Premiums | 89 |
HSA/FSA Contributions | 256 |
LTD/STD/Other | 68 |
| |
Giving | 75 |
Emergency Fund | 100 |
529 | 100 |
Vacation | 50 |
Christmas | 15 |
Mortgage P&I | 1573 |
Property Taxes & Insurance | 259 |
Home Maintenance/Projects | 481 |
Gas/Water | 65 |
Electric | 70 |
HOA | 30 |
Phone | 60 |
Internet | 60 |
Daycare | 225 |
Baby Misc | 50 |
Fuel | 160 |
Car Maint/Replacement | 50 |
Registration | 16 |
Auto Insurance | 120 |
Groceries | 350 |
Restaurants | 90 |
Dog Groomer | 50 |
Dog Food | 35 |
Vet/Misc Dog | 25 |
Jacinto Spending | 80 |
Mrs. Jacinto Personal | 120 |
Misc Items | 70 |
Life Insurance Fund | 47 |
Dental Plan Fund | 9 |
Total Expenses | ~5683 |
401(k) | 737 |
Roth 401(k) | 1105 |
Items of note:
529 - Per suggestion, I dropped this down from $200 to $100. Higher education is an expectation in my household, so it will be used.
Mortgage - We are a bit house poor. On a $90k income, we have a $325k house. That isn't going to change, unfortunately. Value of the house is ~327,000, and current balance is $312,764.
Home maintenance/projects - We are saving to build a covered back porch. I haven't sat down and budgeted it out, but I am anticipating a total cost of $8,000, to be completed in a couple years. It was a new construction house that we purchased six months ago, so I don't anticipate any major repairs in the near future, but anything that exceeds this fund can be cash flowed from the emergency fund.
Groceries - I had this down to $275 before the baby. However, besides feeding him, we've also started eating healthier. We do most of our shopping at Aldi. Once things get settled in with him, I might try to work this back down a bit (I can happily live on PB&J).
Restaurants - We go to 2-3 hockey games a month (the sale of games we don't go to pay for the ones we attend), and Mrs. Jacinto and I have a pre-game ritual of eating at the same bar before games. $15 of this monthly expense is the only alcohol I indulge in at all. This is as low as I can get this category without an upset wife.
Dogs - If I could go back, I would not have gotten dogs. They bring great joy, but not enough to justify what they cost, especially now that we have a child. However, I am not going to re-home them, as I view that as ethically wrong.
Misc Items - This covers items that fall through the cracks when planning, items that don't fit in other categories, areas where we exceed the budget, and date nights. For example, in the current month, it included movie tickets, drink at movie, and a couple signed hockey pucks to collect.
Edit: Lots of comments on the number of miles we drive. My wife drives 10 miles each way for work, and (after an upcoming change) I drive 10 miles each way to reach a train station that takes me to work. Additionally, we drive 120-180 miles per month to go to the city for hockey games. Add 10 miles per week for errands, and that gives roughly 1,225 miles driven per month. That apparently seems excessive to many in here, but I live in the country where I enjoy lower property taxes and more space as a benefit.
Thanks for all of the suggestions. I cut additional money out of the 529, gas, and personal spending categories. I also added a little more balance between my Roth & traditional 401(k)s. Once I get my next raise around June or so, we will increase the traditional 401(k) and be contributing 15% to each retirement vehicle, allowing for a monthly total investment of $2,300, roughly 30% of gross income.