Hi everyone,
Looking for some advice on making further cuts in my spending, and a review of future plans. I just recently found MMM, so I've made some changes, but could still use some help. So here's the rundown -
Single, currently E5 in Air Force, claim myself on state and fed taxes.
Gross salary - $4650/month
Taxes - Federal/FICA - $540, State - $175 (state refunds all at the end of the year)
Roth TSP - $275 Cash savings allotment - $100
Works out to $3560 monthly take home pay.
Expenses -
Mortgage (including property taxes and insurance) - 916, but I send $1000/month
Electric - average of $65/month. 635kwh @ .079.
Heating oil - average of 100/month. I burned 270 gallons this past year at $3.00/gallon. I budget for cost of $4/gallon.
Cell phone - $45, basic Verizon talk plan
Internet - $45
City utilities (water, sewer, garbage) $45
Auto insurance - $61
Gas - $100
Food - $200
TOTAL - $1661
Assets/things I own
Home - current value 152K, owe 141K.
1995 GMC K1500, paid off
2006 Cadillac STS-V, paid off
Cash savings of $1500
Roth TSP of $1100
Dumb things I've done recently that derailed my plans to open Vanguard accounts -
Bought a $1200 mountain bike. I do enjoy riding, and this bike should last me a long time
Bought a $1600 bass. I already had a bass.
Things I've changed -
Eliminated trips to barber shop that were $30/month, cut my own hair.
Reduced life insurance coverage to 50K, now costs 6/month instead of 30.
Increased collision/comprehensive deductible on the car to $2500. Savings of $12 month.
Started shopping commissary for meats/cheese in larger quantities this month, don't know savings yet on that one.
Things I could use some help with -
Home insurance is currently 1000 deductible, and I have 87K of personal property coverage (!). Need some advice on how to get some savings here.
My electric usage is crazy. I turn off my water heater when I'm away (about 2 weeks/month), that has helped some.
I'm looking to open a Vanguard acct (VTSMX) at the end of this month, for early retirement income. Now here's where I need some help. I have 13-17 years left before I retire from the AF. I'd like to buy some land to build a home on about 3-4 years before I retire, so I can pay it off while I'm still in. So I'm thinking I would start an account for the intent of building a custom (high efficiency) small home on this land. Would I want to keep my early retirement and home accts separate, or just keep all my money in one acct, and pull a chunk out when I build the home?
I would also like to open a traditional IRA for tax benefit purposes. So given my 13 years before I retire from the AF (17 if I stick around past 20), what's the best way to allocate my money into all these funds I plan? I have the Roth TSP and soon a tIRA for when I'm past 59, so I'm thinking I should dump more $ into the early retirement fund, since it only has a short time to grow.
Thanks for reading my novel, and for any advice/punches you may dish out.
Kyle