Hello All
Topic Title: Government Drone Set on Fire
Life Situation: Single (live with GF, but split expenses and keep money seperate), 27 years old, no dependents, and living right outside of Sacramento, CA.
All figures listed below are monthly
Gross Salary/Wages: $4,975
Pre-tax deductions:
Health Insurance: $125.39
Pension: $356.96
457 Plan: $1,583.00
CERBT (Union Dues, cannot opt out): $42.64
Adjusted Gross Income: $2,950.01
Taxes:
Fed: $257.83
State: $57.88
Soc Security: $298.03
Medicare: $69.70
CASDI: $48.07
Total Taxes: $731.51
Current expenses*:
Auto Loan: $157.91
Auto Insurance (note that I pay this upfront 6 months at a time, however this would be the monthly cost): $147.00
Gas (48 mile round trip commute, for the short future this is non-negotiable but would like to get closer long term. Open/looking into cutting vehicle/gas costs down, potentially combo bike/bus since there is no direct route): $100.00
Rent: $825.00
Groceries: $200.00
Dining Out: $300.00
Personal Care: $35.00
Household Goods: 35.00
Entertainment: $50.00
Gifts: $50.00
Spotify: $9.99
Cell Bill: $25.61
Comcast: $41.79
Utilities: $80.00
Miscellaneous: $78.20
Total Monthly Expenses: $2,135.50
*This year I have began tracking all expenses in a spreadsheet I have created, and these are my best estimates to date of what my spending looks like.
Assets:
401(k) and 457 Plans managed by SavingsPlusNow (Nationwide is the plan administrator) Through a huge contract with the state of CA, they are able to offer some pretty low fee index funds to invest in
401(k): $5,357.91 – this was a roll-over from previous employer
International Index Fund (Expense Ratio, 0.12%): 39.56%
Small Cap Index Fund (Expense Ratio, 0.08%): 17.76%
Mid Cap Index Fund (Expense Ratio, 0.08%): 18.94%
Large Cap Index (Expense Ratio, 0.06%): 18.75%
Bond Index (Expense Ratio, 0.08%): 4.99
457 Plan: $5,409.73 – Similar asset allocation
Checking Account $1,334.19
Savings: $10,540.31
2014 Ford Mustang: ~45k miles KBB’d at about $11,000.00
Total Assets: $33,642.14
Liabilities:
Car Loan – Original Loan 5 Year $8,783.79 @ 2.99% for a total of $9,474.03. Currently, there is a remaining balance of $6,013.14. Considering going to the credit union and paying this off from the cash in my savings. Lastly, this was to purchase a 2014 Mustange… yes for my commute… yes you can punch me in the face. Since this is a convertible I would like to wait til spring til the demand goes up then clean it up and sell it for a more reasonable car.
Credit Card – Just charge some of my monthly expenses and pay off in full every month
Total liabilities: $6,013.14
Specific Question(s):
Looking for general picking apart of my budget lifestyle to look for any glaring issues that I’m too close to see. Also, if there is anyone with any knowledge on 457 plans that would be greatly appreciated. From my understanding they appear to be an awesome vehicle for early retirement. No early withdrawal penalty on the contributions or gains at any age, as long as you separate from your employer. My plan was to test out this budget for a few months, and then if all is going well increase my investing through an IRA account. From my understanding the $18,500 401(k) limit is a total combination of 401(k) & 457 contributions. So the plan was max out 457, then max out IRA if possible, then start contributing to taxable accounts.
If there is anything that is formatted wonky, or you would like me to provide additional information just let me know!
Feel free to pass along any and all advice/criticisms. As long as there is a plan of action or a course of correction I’m happy to entertain any ideas! Thanks ☺