Life Situation: Married, not having kids, both file single, 33 and 32 years old, both have paid for BAs, live in what I think is MCOL area(Tampa within city limits)
Gross Salary: 90-100k depending on OT and 55k or 150k total
Pre-Tax Deductions: My 401k-10k/year(10%, 75% matched up to 6%)
Wifes 401k-2k/year(4% match at 100%)
health care total-around 2k/year
Adjusted Gross Income:135k
Taxes:Mine are 24.5k/year
Not completed sure of the wife's, would guess around 11k
No state taxes
Current Expenses:Mortgage 15,400(No PMI)
Property Tax 2,200
Home Insurance 1,600
Home Maintenance 1,500
Groceries 9,000
Car Payment 3,600
Alcohol/craft beer 3,000
Work Fees(union dues, gym membership) 3,000
Dining Out 2,500
Car Fuel 2,100
Cell Phones 2,100
Vacation 2,000
Electricity 1,500
Gym membership(crossfit) 1,440
Lawn Service 1,440
Auto Insurance 1,400
Internet 900
Water 750
Clothing 600
Entertainment(HBO/Netflix/Hulu) 600
Assets: My 401k 116k
Wife's 401k 35k
My Roth IRA 10k
Wife's Roth IRA 5.5k
Home Equity 100k
Emergency Fund 44k
Checking Account 5k
Liabilities:Mortgage 15 year@3.35% fixed with 14 years remaining 177k balance 285k value
Car loan 3 years@2.25% with 10k balance
As far as the Roths go we just started them since we had the option of contributing for 2017 and 2018 and I rolled a small amount over from 4k balance I had with State farm.
Sitting down and writing things out has opened my eyes to the mindless spending habit and the power of what could be if we just altered out habits. We are starting a written budget in 2018 and going to focus on increasing our SR. Actionable items that will carries out as of the first of the year include:
- Setting monthly budgets
- Heavy reduction in drinking/buying beer
- Cancelling lawn service-I have the equipment, just lack the motivation at time
- Reducing my 401k down to the 6% match to allocate more towards other investment areas like the Roth
- Cut back on eating out
One question is should we go ahead an use the over-inflated emergency fund to max out the Roth IRAs early this year?
Would ultimately like to retire in our early 50's and work something part-time that is more fulfilling. Hopefully we are on track for such.
Thanks in advance for the input, and let me know if there is any info I missed.