First, the numbers.
Income: All numbers pretax
2011: 20k
2012: 25k
2013: 27k
2014: 42k (Estimated) Income starting April 2014 = $3,700/Month
2014: 52k (Projected)
Current expenses:
Rent: $170 Month
Food: $200 Month
Restaurants/bars: $100 month
Motorcycle Insurance & Registration: $37 month
Fuel: $100 month
Electric: $50/month (Avg)
Internet: $30/month
Portion of car insurance: $30/month
Dental/Vision insurance: $30/Month
All other spending: $600 (Avg, and includes things like vacations.)
Average Monthly Costs: $1350
Monthly Investment costs:
$55 - Vanguard 500 auto deposit
$190 – 401k deposit for full match – Goal is $1100/Month with promotion effective April 2014.
Current: $250
Goal: $1,300
Expected ER expenses:
Unknown. Just getting settled in life. Let’s just call it 30k, because that seems close to the numbers that get thrown around a lot on MMM. I’m not really planning on a “full” ER at this time, just working my way towards FI so I have more flexibility in my life.
Assets:
$11,000 – Loan to family member. 10% interest rate with 4 year repayment schedule. Stable and backed by partial ownership on paid off home.
$8,000 – TSP (Government employee 401k) 33% S-Fund, 33% C-Fund, 33% I-Fund.
$5,000 – Motorcycle (I guess this goes here)
$4,500 – Vanguard 500 fund
$4,000 – Emergency fund and assorted cash.
Total assets: $32,500
Liabilities:
Zero, Zilch, Nada. Worked full time through college to ensure graduation with no debt.
Specific Question(s):
Am I on track, and what can I do better?
Backstory and helpful info.
I’m 23 and just finished college with AAS in Network Engineering and BIS in Technology Management (mostly based in project management). I have been in a federal student job working in Information Technology for the last 5 years while working on my degrees. Since finishing my degree I have been hired in a career ladder position that pays 45k for the first year, and 54k for three following years. At the end of the 4th year, the position ends. My goal is to only spend 2 years in the position before moving up. The long term goal is to stay in Federal Service for my career.
At this time I live in a sub 500 square foot 1 bedroom apartment with my girlfriend. While the rent is cheap, we’re looking to move into a larger place in the near future. We’re currently looking at a 1,000 square foot townhome as our next possible option, at a cost of $460/month plus utilities. I live and work in a remote area, roughly 60 miles from the nearest town of 10,000 people. Because of this there is very limited housing, and utility and food costs are high. There is nothing size or cost wise between the sub 500 sqft apartment we currently have and a 1,000 sqft townhome.
Asset note: $11,000 loan is to my parents to help zero out their credit card debt. One is retired, one is still working but getting close to retirement. With the credit card debt they had they were never going to be able to retire, so I “Bought Out” their highest interest debt with a lump sum from money I had in my Vanguard account. In exchange for buying out the majority of their debt I will receive a flat payment per month, with interest included, for the next four years. This will be fully repaid in April of 2018.
I’m happy to answer any questions that help fill out the information. I’ve read all of the MMM posts, as well as the Bogglehead’s guide, but I grew up in a family where money was not discussed and I’m just getting to the point in my life where I have enough free time to actually sit down and take a look at planning for the future. Thanks in advance!
-CanyonMan