UPDATE**: just increased my 401k contribution to 15% from 6% and upped my roth to 10% (25% of each check plus 3 percent match) so this will hopefully give me a good boost in my retirement funds this year.
I am 25 years old currently living in Chicago with my girlfriend and I have zero debt. I started following this blog about 5 months ago and have decided to 180 my life because of Mr. & Mrs. MM. I used to spend 500+ a month on restaurants and drinks but I have decided to cut down considerably on (alcohol & eating out) which was really unhealthy as well. The rest of my life is fairly Mustachian in my opinion because I have learned to live on a minimal salary of 30k for the past year and a half plus a little commission every quarter. I have recently taken on a new position which will pay 60k per year plus bonus which should help catapult my savings.
I would really appreciate any critiques in my planned 2014 budget below (all expenses below are what I contribute for each line item, my gf and I currently share: rent, going out, groceries, and utilities). My biggest concern is I have about $40,000 in cash just sitting in a brokerage account not active and I am completely lost on what to do with this money? Should I invest in all ETFs or possibly buy a condo in 250-300k range (condo will come with minimum $400 a month HOA fees in Chi)?
I currently track monthly budget on Mint.com:
Rent: (850)
Restaurants/bars: (200)
Groceries: (160)
Entertainment: 50 *carry over by month for concerts/events- mostly in summer
Taxis (lyft and UberX): (60) – justified by saving 100 dollars on train a month by walking 1 mile to work
Directv & Netflix: (17)
Electric: (25)
Natural gas: 0
Internet: (24)
Gym: (65)
Hair: (21)
Shopping: (50)
Commute to work: 0
Total expenses per month: (1522)
Income: $3,545 per month after taxes/Healthcare costs and 401k withdraw
$5400 to $401k per year: saving 9% of income
Income: 42,540 salary plus 5,400 401k savings = $47,940
Yearly expenses (18,264) - travel expenses (4,500) = (22,764)
$25,176 total saving or 52.5% savings rate without tax return
Assets: 40,000 cash plus $25,176 current year expected savings. Projected net worth Jan 1, 2015 = $65,176
Travel budget for 2014: $4,500
South America trip for 9 days and 1 US city this year
Also saving for a new couch estimated at $1,500 and a bike at $500. Looking for high end to last 15+ years.
Any help would be greatly appreciated!