Author Topic: Speed me up  (Read 6719 times)

walkwalkwalk

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Speed me up
« on: January 19, 2019, 07:50:53 PM »
Topic Title: Speed me up

Life Situation: Single (live with parents), 29 years old, no dependents, and living near Dallas, TX

All figures listed below are monthly (adjusted for biweekly, so average income)

Gross Salary/Wages: $4,167

Pre-tax deductions:

Health Insurance: $271.91
SIMPLE IRA: $325

Adjusted Gross Income: $3570.09

Taxes:

Fed: $290.49
State: N/A (TX has no state income tax)
Soc Security: $258.35
Medicare: $60.42

Total Taxes: $609.26

Adjusted gross income less taxes: $2960.83

Current expenses:

Auto Insurance: $100.00 (note that I pay this upfront 12 months at a time, however this would be the monthly cost)
Gas: $100.00 (42 mile round trip commute)
Tolls: $15 or less (the route I take now doesn't require but a few cents in tolls most days)
Auto Repairs: $100 (2004 used Lexus bought last August when someone totaled my last car)
Rent: $400.00 (includes being on cell family plan and Netflix provided through the carrier)
Groceries: $100.00 
Dining Out: $70.00 (this includes coffee, eating out, etc.)
Personal Care: $18.00
Gambling: $250.00
Gifts: $25.00
Medical: $350 (this will be average/mo for the year as I will hit max out of pocket)
Continuing Education: $70 (average/mo since my employer only pays for my CPA license and one 16 hour course)
Redbox (DVD rental): $10 or less (most times I get a code for a free one but sometimes I'll pay)

Total Monthly Expenses: $1,608.00

Assets:

SIMPLE IRA (old): $21,555.99 (at Edward Jones in the process of rolling over to Pioneer soon, yes I know both of them have bad fees but I could only roll it over to another SIMPLE IRA so I am stuck with it for now)

SIMPLE IRA (new): $153.83 (just started contributing at new work's plan with Pioneer investments)

Vanguard (roth IRA): $21,461.07

Vanguard (trad. IRA): $11,645.25

Vanguard (brokerage): $2,999.99 (just moved this over)

Groundfloor: $1000 (just doing this today actually, yes I know could end in no repayment but I think its fun)

HSA: $6,736.12 (I use this for all of the medical expenses, yes I know it could be better to save and only use later on once retired, but this is what I am going to do)

Checking Account $783.30

Savings: $10,627.94 (2% at Capital One - have $350/paycheck going here)

Total Assets: $76,963.49

Liabilities:

Credit Card – charge some of my monthly expenses and pay off in full every month

Total liabilities: $100 currently

Specific Question(s):

I am a Certified Public Accountant (tax) going into his 6th busy season. Currently working at a tax and bookkeeping place making 50k/yr, just started last July (late July 2018). Looking for advice on increasing income, and no I cannot do a side gig. Eventually I want to be self employed, my main concern is health insurance (obviously, reading into my expenses above).  I think my main problem (ever) getting to FI is the income side of the equation, however I could try and cut back some on expenses possibly.

The $350/paycheck (26 paychecks a year) going to my savings account is for a downpayment on a house. I just feel it would take awhile to get there (to a 30% downpayment) at that rate. So I guess the question is whether to increase amount per paycheck going here or keep doing taxable account contributions? (maybe both but less per month to taxable while still increasing amount per paycheck to savings)

If there is anything that is formatted weird, or you would like me to provide additional information just let me know.

Feel free to share any and all advice/criticisms.
« Last Edit: January 22, 2019, 01:04:42 PM by walkwalkwalk »

lampstache

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Re: Speed me up
« Reply #1 on: January 19, 2019, 08:04:26 PM »
Sent you a PM.

JCGreen

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Re: Speed me up
« Reply #2 on: January 19, 2019, 08:56:12 PM »
Hi Speed me up- Welcome to the forum

First off, you are doing a better job than most at saving money. For proof just look at the asset column.

A few ideas (as we can all improve):
It might help to clarify the goal(s) you want to achieve.  You stated you want to buy a house, but did not specify the proposed purchase price of such a house. Would you like to be Financial independent (FI) as well? You seem to be saving heavily in retirement accounts that will allow you to do that. It can help if you list out how much money you will need for each goal, how long you want to take (realistically) to get there, and calculate your savings rate needed from that.

As for where to invest? I recommend looking at the investment order thread in Investor Ally. If your goal is FI, it is the best place to look for where to invest money: https://forum.mrmoneymustache.com/investor-alley/investment-order/

You can remove money from retirement accounts to fund housing purchases, I am sure as a CPA you are knowledgeable about this, but I think (its been a while) you can only fund 20% of the home purchase price with Roth money.  401K withdraws are generally considered loans.

The non-necessities (entertainment) spending could go down to help you achieve FI or home purchasing sooner. That being said, if I lived with my parents, I would probably gamble/drink too.  Your auto insurance seems a little high especially for the age of the car (I have a 2002 toyota camry am 24 year old female and a little less than $50 a month). It would be worth looking into.

As for making more money, how do you intend to do so? You stated you are not interested in a side hustle, so are you looking for a new job or to start your own business? Another job may pay better and/or provide better medical benefits, but it doesn't sound as if you have been at your current job that long. You could also save up money and start your own accounting business? In the long run it could be more lucrative than buying a house. Health insurance can be bought on the exchange and its cost is based on your income.  Another option is switching careers entirely, but that is not a path you have suggested interest in.

At the end of the day, decided what you want, then go get it.

reeshau

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Re: Speed me up
« Reply #3 on: January 20, 2019, 02:26:41 AM »
SIMPLE IRA (old): $21,555.99 (at Edward Jones in the process of rolling over to Pioneer soon, yes I know both of them have bad fees but I could only roll it over to another SIMPLE IRA so I am stuck with it for now)

Vanguard offers SIMPLE IRA's.  You do not have to roll over to your new employer's plan.

walkwalkwalk

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Re: Speed me up
« Reply #4 on: January 20, 2019, 09:26:44 AM »
SIMPLE IRA (old): $21,555.99 (at Edward Jones in the process of rolling over to Pioneer soon, yes I know both of them have bad fees but I could only roll it over to another SIMPLE IRA so I am stuck with it for now)

Vanguard offers SIMPLE IRA's.  You do not have to roll over to your new employer's plan.
How exactly would I start a SIMPLE IRA at Vanguard without an active business that makes money? Sorry that doesn't make sense. Unless you meant I should convince my employer to switch to them?
« Last Edit: January 20, 2019, 09:28:25 AM by walkwalkwalk »

Tuskalusa

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Re: Speed me up
« Reply #5 on: January 20, 2019, 09:32:15 AM »
Your salary seems low for an experienced CPA. Have you looked at other (possible higher paying) opportunities?  Could you move from a firm to a finance team in a large business, for example? 

reeshau

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Re: Speed me up
« Reply #6 on: January 20, 2019, 11:54:05 AM »
SIMPLE IRA (old): $21,555.99 (at Edward Jones in the process of rolling over to Pioneer soon, yes I know both of them have bad fees but I could only roll it over to another SIMPLE IRA so I am stuck with it for now)

Vanguard offers SIMPLE IRA's.  You do not have to roll over to your new employer's plan.
How exactly would I start a SIMPLE IRA at Vanguard without an active business that makes money? Sorry that doesn't make sense. Unless you meant I should convince my employer to switch to them?

I am suggesting you do a rollover from your old employer to Vanguard, rather than rolling it into your new employer's high-fee custodian.  You can't contribute more to it (without your own company) but it would otherwise work just like a 401k rollover to an IRA.  Just call them or search for the form on their website.

walkwalkwalk

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Re: Speed me up
« Reply #7 on: January 20, 2019, 12:47:13 PM »
SIMPLE IRA (old): $21,555.99 (at Edward Jones in the process of rolling over to Pioneer soon, yes I know both of them have bad fees but I could only roll it over to another SIMPLE IRA so I am stuck with it for now)

Vanguard offers SIMPLE IRA's.  You do not have to roll over to your new employer's plan.
How exactly would I start a SIMPLE IRA at Vanguard without an active business that makes money? Sorry that doesn't make sense. Unless you meant I should convince my employer to switch to them?

I am suggesting you do a rollover from your old employer to Vanguard, rather than rolling it into your new employer's high-fee custodian.  You can't contribute more to it (without your own company) but it would otherwise work just like a 401k rollover to an IRA.  Just call them or search for the form on their website.
I wasn't in my SIMPLE for 3 years(this is the required minimum time to roll over to an non SINPLE IRA) -long story. But thanks for the thought.

Nick_Miller

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Re: Speed me up
« Reply #8 on: January 21, 2019, 07:11:27 AM »
OP, first of all, I think you're in pretty good shape for your age with no debts and some decent investments! So congrats! Obviously expenses will go way up when you move out into a home, so yeah I agree with the others about chopping down the entertainment. Right now, you're in the best/easiest position you might ever be in to just save save save save save since you're just paying $400 for rent and phone.

You sorta did a preemptive strike with your "no, I can't do a side hussle." Did you mean in accounting, or period? May I ask why? Is it a contractual issue with your employer, or do they work you 70 hours a week, or is it something else?

I ask because my default advice to you would be to "work more/make more money," especially since you're a young single person. That advice is not as easy to put into action when you're older with dependents.

Jim Fiction

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Re: Speed me up
« Reply #9 on: January 21, 2019, 08:36:15 AM »
Topic Title: Speed me up

Life Situation: Single (live with parents), 29 years old, no dependents, and living near Dallas, TX

Specific Question(s):

I am a Certified Public Accountant (tax) going into his 6th busy season. Currently working at a tax and bookkeeping place making 50k/yr, just started last July (late July 2018). Looking for advice on increasing income, and no I cannot do a side gig. Eventually I want to be self employed, my main concern is health insurance (obviously, reading into my expenses above).  I think my main problem (ever) getting to FI is the income side of the equation, however I could try and cut back some on expenses possibly.


You seem under-employed. How long have you been a CPA? You mentioned you have been in your current position since this past summer, what does your previous experience look like? I am also a tax professional, though I am not a CPA. I was at a large regional firm, but I just left public for a position in industry. I saw a 25% bump in income when I made the switch.

harvestbook

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Re: Speed me up
« Reply #10 on: January 21, 2019, 04:24:49 PM »
$200 a month going to gambling may be entertaining, but it is also kind of stupid.  It's also nearly 12.5% of your monthly expenses.  Plenty of room to cut back there.  Find a hobby that earns you money rather than throwing it away. 
I really am trying to cut back. I understand how dumb it is. I guess if I cut it in half then I would have 3% more net income.

Wow. $2400 a year on gambling. Over four years invested, that's more that $10,000. Sounds like a nice chunk toward the down payment of a house.

I probably drank up that much when I was an active alcoholic rather than in recovery.

patrickza

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Re: Speed me up
« Reply #11 on: January 22, 2019, 02:29:49 AM »
I see gambling is now missing? Knitting is very high. I assume this is some type of hobby, but what happens to everything that gets knit? At that price tag surely your room is overflowing with knitted goods by now!

Could you sell some of them?

2Birds1Stone

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Re: Speed me up
« Reply #12 on: January 22, 2019, 04:49:25 AM »
I would say your knitting habit can go. Otherwise decent shape.

I echo looking at the market value for a CPA with your experience, the pay sounds low(ish), even for TX.

walkwalkwalk

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Re: Speed me up
« Reply #13 on: January 22, 2019, 01:02:53 PM »
I see gambling is now missing? Knitting is very high. I assume this is some type of hobby, but what happens to everything that gets knit? At that price tag surely your room is overflowing with knitted goods by now!

Could you sell some of them?
Haha you caught me. I bet on grandmas knitting. Just kidding. Sorry for being a troll. I will cut back on gambling and knitting and gambling on knitters.

Boofinator

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Re: Speed me up
« Reply #14 on: January 22, 2019, 01:22:24 PM »
How much time do you spend on your gambling habit hobby each month?

Could you break it out into two categories? (1) Actual time spent gambling (including ancillaries like travel time) and (2) Time spent earning the money to cover the costs (at most your total costs divided by your hourly wage less taxes).

Granted, these are hypothetical questions, but something to consider when choosing one's hobbies.

FreeBear

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Re: Speed me up
« Reply #15 on: January 22, 2019, 10:08:40 PM »
Nice job with the savings and a solid career choice financially!  My thoughts regarding hobby spending, car insurance, and career compensation match those of many earlier posts, so I won't rehash.

My main thoughts pertain to your plans to buy a house.  I'm not a big fan of big down payments or early payoff of relatively low interest mortgages.  You house is an expense (unless you have a renter!), not an income producing asset.  I'd rather invest in equities (Vanguard index funds) and hold a long 30 year mortgage to full term.  I would either put in a minimal down payment (eg. FHA loan) or just the minimum to avoid PMI, although this may be pretty high.

The risk, however, is that small down payments and long mortgages tend to lead undisciplined folks to buy too much house.  I suspect it would be tough to buy a house with a monthly payment close to your current rent, but  your current rent plus hobby money may get you in the $700-900/month range.  Maybe pick up a place in a great neighborhood, but needs work.  Learn to do the work yourself and become even more of a Badass!

Oh, finally, I'd give some thought on how to find a better job, probably without a major career change.  Can you get something better locally or do you need to move to another part of the country?  Please figure this out before making a major $$ on a home purchase.

walkwalkwalk

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Re: Speed me up
« Reply #16 on: January 29, 2019, 03:18:45 PM »
I have decided to quit gambling and instead semi-gamble on a site called Groundfloor. I am putting the $200 I was doing on gambling there every 1st of the month.

Anyone who knows more about Groundfloor/anything like it feel free to try to talk me out of it. However, it has a higher likelihood to be a) more financially beneficial potentially and b) I believe I can write my losses (if the loan doesn't pay off) off just like a stock sale (I'll have to look into this)

And yes, I have to do some form of "gambling" to give me the rush that driving through crazy traffic doesn't

Boofinator

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Re: Speed me up
« Reply #17 on: January 30, 2019, 07:33:45 AM »
I have decided to quit gambling and instead semi-gamble on a site called Groundfloor. I am putting the $200 I was doing on gambling there every 1st of the month.

Anyone who knows more about Groundfloor/anything like it feel free to try to talk me out of it. However, it has a higher likelihood to be a) more financially beneficial potentially and b) I believe I can write my losses (if the loan doesn't pay off) off just like a stock sale (I'll have to look into this)

And yes, I have to do some form of "gambling" to give me the rush that driving through crazy traffic doesn't

Congrats. I'm not familiar with Groundfloor, but one of the keys to FI is finding hobbies that don't cost too much. It appears you are on the right track.

bw_94

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Re: Speed me up
« Reply #18 on: January 30, 2019, 08:08:42 AM »
Cut down on the gambling, cut the Red Box (you have Netflix!), and find a better paying accounting firm. That is not a fair wage for a CPA with experience. I know entry level accountants who make 50k a year without being a CPA. I think that would go a long way to speeding things up.

Good start though man, good luck!

FreeBear

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Re: Speed me up
« Reply #19 on: January 30, 2019, 08:47:07 AM »
Cut down on the gambling, cut the Red Box (you have Netflix!), and find a better paying accounting firm. That is not a fair wage for a CPA with experience. I know entry level accountants who make 50k a year without being a CPA. I think that would go a long way to speeding things up.

OP, I recommend looking at baseline CPA salaries in your location as well as other locations.  Many replies suggest your are underpaid.  Are you stuck in a small, rural town?

A accounting buddy of mine made mid $60K, and just upgraded to $70K-ish with a new job closer to home.  He is studying for the CPA (not finished) and only has a year of experience, although with master's degree in accounting.  This is for a HCOL, upper midwest large city.

JZinCO

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Re: Speed me up
« Reply #20 on: January 30, 2019, 08:59:08 AM »
I have decided to quit gambling and instead semi-gamble on a site called Groundfloor. I am putting the $200 I was doing on gambling there every 1st of the month.

Anyone who knows more about Groundfloor/anything like it feel free to try to talk me out of it. However, it has a higher likelihood to be a) more financially beneficial potentially and b) I believe I can write my losses (if the loan doesn't pay off) off just like a stock sale (I'll have to look into this)

And yes, I have to do some form of "gambling" to give me the rush that driving through crazy traffic doesn't

This is actually what I would have suggested! If you have to gamble, buy riskier assets. I have a little left in LendingClub (4 years and something like 4% return and wasted time). I also put money into that stupid platform where you fund small businesses by buying retail products and having the business sell them to earn a commission (I think that's how it works.. negative or flat IRR). And I have money in Fundrise (9% CAGR on closed end private REIT). They're like gambling in that I am prepared to lose it all and instead of risk because of the game rules, there is institutional risk.
edit: Yes you'll get your 1099s with reported losses that you can deduct. In my mind nothing beats hard assets like actual real estate and stocks/bonds but every now and then I get greedy and try something new.
« Last Edit: January 30, 2019, 09:02:55 AM by JZinCO »

Sweet Tart

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Re: Speed me up
« Reply #21 on: February 07, 2019, 06:04:06 PM »
SIMPLE IRA (old): $21,555.99 (at Edward Jones in the process of rolling over to Pioneer soon, yes I know both of them have bad fees but I could only roll it over to another SIMPLE IRA so I am stuck with it for now)

Vanguard offers SIMPLE IRA's.  You do not have to roll over to your new employer's plan.
How exactly would I start a SIMPLE IRA at Vanguard without an active business that makes money? Sorry that doesn't make sense. Unless you meant I should convince my employer to switch to them?

I am suggesting you do a rollover from your old employer to Vanguard, rather than rolling it into your new employer's high-fee custodian.  You can't contribute more to it (without your own company) but it would otherwise work just like a 401k rollover to an IRA.  Just call them or search for the form on their website.
I wasn't in my SIMPLE for 3 years(this is the required minimum time to roll over to an non SINPLE IRA) -long story. But thanks for the thought.

FYI-Vanguard has a SIMPLE IRA option that is "locked" and can only be used to transfer other SIMPLE IRA money into. I just set one up because my employer has a SIMPLE IRA with American Funds and I just jumped through all the hoops to set up a monthly transfer to my new Vanguard SIMPLE IRA.

Chrissy

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Re: Speed me up
« Reply #22 on: February 08, 2019, 03:18:53 PM »
Speed you up?  Okay, don't do a 30% down payment.  Do 20%, and put the rest in the market where it will do better, long-term, than paying down the mortgage.

Also, once you own a place, rent out the other bedrooms, basement, garage... etc.

As others have said, start job shopping in July, once you have a full year there.  Then, once you get an offer, negotiate.

walkwalkwalk

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Re: Speed me up
« Reply #23 on: February 08, 2019, 07:21:22 PM »
SIMPLE IRA (old): $21,555.99 (at Edward Jones in the process of rolling over to Pioneer soon, yes I know both of them have bad fees but I could only roll it over to another SIMPLE IRA so I am stuck with it for now)

Vanguard offers SIMPLE IRA's.  You do not have to roll over to your new employer's plan.
How exactly would I start a SIMPLE IRA at Vanguard without an active business that makes money? Sorry that doesn't make sense. Unless you meant I should convince my employer to switch to them?

I am suggesting you do a rollover from your old employer to Vanguard, rather than rolling it into your new employer's high-fee custodian.  You can't contribute more to it (without your own company) but it would otherwise work just like a 401k rollover to an IRA.  Just call them or search for the form on their website.
I wasn't in my SIMPLE for 3 years(this is the required minimum time to roll over to an non SINPLE IRA) -long story. But thanks for the thought.

FYI-Vanguard has a SIMPLE IRA option that is "locked" and can only be used to transfer other SIMPLE IRA money into. I just set one up because my employer has a SIMPLE IRA with American Funds and I just jumped through all the hoops to set up a monthly transfer to my new Vanguard SIMPLE IRA.
I wish I could do that, however my VERY small employer is very inconsistent about the contributions he is not timely making to my Amundi pioneer SIMPLE IRA. Thank you, but it wouldn't work in my case.

However, I did just lower my contributions so less will have the high fees there and I will have more take home to invest in Vanguard through my taxable account, this time going all in VTSAX.

Schwatt

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Re: Speed me up
« Reply #24 on: February 25, 2019, 02:23:06 PM »
Let me preface this by saying I do gamble, and played poker for a living for 5 years.

The $250/mo gambling would not have received much attention if it were labeled "entertainment"

I don't think $250/mo in entertainment is that out of line. 2 nights out with friends per month and you are there.

JZinCO

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Re: Speed me up
« Reply #25 on: February 25, 2019, 05:54:21 PM »
Let me preface this by saying I do gamble, and played poker for a living for 5 years.

The $250/mo gambling would not have received much attention if it were labeled "entertainment"

I don't think $250/mo in entertainment is that out of line. 2 nights out with friends per month and you are there.
Really? 7% of post-tax income is chump change?

ps: To me, I would not sacrifice financial goals for your friends's relatively expensive tastes.

edit: oh I see your account is new. Maybe you should post a case study? I authentically don't mean that in a disrespectful way, but given your attitude about money, it might help you out! Or maybe you live in a very high COL area.
« Last Edit: February 25, 2019, 05:56:21 PM by JZinCO »

ItsALongStory

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Re: Speed me up
« Reply #26 on: February 25, 2019, 10:05:28 PM »
@JZinCO You do realize not everyone is here to tackle FI from the spending side, right? :)

JZinCO

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Re: Speed me up
« Reply #27 on: February 26, 2019, 10:39:29 AM »
@JZinCO You do realize not everyone is here to tackle FI from the spending side, right? :)
Your point is tangential.  OP did state an interest in cutting expenses. It seems OP weighs their priorities differently than you. Schwatt said spending 7% of post-tax income on a specific entertainment activity is a-okay. I disagree. The average american household spends only 4.5% on total entertainment. I'm not sure how spending above average is good advice in a forum that strives to be better than average. In either case, this choice has nothing to do with increasing income.

Can I ask you a question: What is the gambling money doing to help OP improve their income potential? e.g., I spend money, that I could have saved, on career training. The average american household spends <1% on education (not sure how BLS categorizes student loan repayment). At any rate, I say if OP wants to make more money instead of save that 7%, education/training is a good place to start.

If you're referring to my comment directed at Schwatt, yeah I think a blase attitude towards spending money can be dangerous and I don't think advice should be given from that perspective. That's different than making a assessment of one's finances and being intentional about spending money.
« Last Edit: February 26, 2019, 07:01:31 PM by JZinCO »

Schwatt

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Re: Speed me up
« Reply #28 on: February 27, 2019, 10:38:14 AM »
I personally think the amount is not significant enough to worry about. Could it be cut back? Sure, but so could almost everything.

My point was people were attacking it because he labeled it "gambling" instead of "entertainment"

I am a believer in the big 3 - Housing, transportation, and food. Get those under control, and don't sweat the small stuff.

Where are you getting the 4.5% on entertainment number? Not doubting you, but that seems low in our consumption driven society.

Dianalou

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Re: Speed me up
« Reply #29 on: February 27, 2019, 01:21:23 PM »
I work in an accounting office (admin side) and with six years of experience if they are paying you that low, they should AT LEAST be covering your CPE and you should have super low billable hour goals. Hopefully the latter is the case! I'm assuming the no side-hustle is because you have a non-compete of some sort, but it could be worth asking if that applies to non-tax related work (if you're even interested in a side hustle). I would keep shopping for jobs though, that pay seems way too low for someone with that much experience. I'm assuming that you're at least reviewing if not managing clients? Since you're already commuting it doesn't seem like distance is a deterrent for you, just keep looking around!

Awesome work not having any debt and for not buying a brand new Lexus when your car was totaled. I would cut redbox since you have other avenues. Like someone else mentioned, aim for 20% down to avoid PMI but not tie up too much cash. Keep in mind that marriage/kids/new jobs might affect where you want to live, so renting close to your work might be better anyway. You would have less commute, wear and tear on the care, possibly no tolls, and not living with your parents :) I'm sure other bills would go up, but it could be advantageous.

JZinCO

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Re: Speed me up
« Reply #30 on: February 27, 2019, 02:12:55 PM »
I personally think the amount is not significant enough to worry about. Could it be cut back? Sure, but so could almost everything.

My point was people were attacking it because he labeled it "gambling" instead of "entertainment"

I am a believer in the big 3 - Housing, transportation, and food. Get those under control, and don't sweat the small stuff.

Where are you getting the 4.5% on entertainment number? Not doubting you, but that seems low in our consumption driven society.
Gambling, travel, movie tickets, all entertainment to me (so I'm with you there). I just think the number is high given OP's position. That's why I suggested earlier that OP use the money on speculative investments. One can still get the entertainment factor, to a degree, but will be contributing to investments at the same time.

Numbers came from BLS. If you search 'average american household spending' you'll find alot of "news" articles repeating the survey statistics. If it does seem low, I think it's because most american families aren't in a privileged position to spend alot on entertainment (SINKS and DINKS aren't a plurality of households).

ItsALongStory

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Re: Speed me up
« Reply #31 on: February 27, 2019, 10:27:19 PM »
@JZinCO You do realize not everyone is here to tackle FI from the spending side, right? :)
Your point is tangential.  OP did state an interest in cutting expenses. It seems OP weighs their priorities differently than you. Schwatt said spending 7% of post-tax income on a specific entertainment activity is a-okay. I disagree. The average american household spends only 4.5% on total entertainment. I'm not sure how spending above average is good advice in a forum that strives to be better than average. In either case, this choice has nothing to do with increasing income.

Can I ask you a question: What is the gambling money doing to help OP improve their income potential? e.g., I spend money, that I could have saved, on career training. The average american household spends <1% on education (not sure how BLS categorizes student loan repayment). At any rate, I say if OP wants to make more money instead of save that 7%, education/training is a good place to start.

If you're referring to my comment directed at Schwatt, yeah I think a blase attitude towards spending money can be dangerous and I don't think advice should be given from that perspective. That's different than making a assessment of one's finances and being intentional about spending money.

All I intended to say was that there is more than 1 way to make progress towards FI but you are right, this thread is intended to identify opportunity to cut back.

I am in the same boat as Schwatt, not sure gambling is the best first step since it could very well get replaced by other forms of entertainment. Too many people try to do all the things at once, I am more in favor of piecemealing the adjustments, try to eat the elephant 1 bite at a time.

 

Wow, a phone plan for fifteen bucks!