My Second Case Study
Annual Salary of $64,000
27 Years Old
Male
Houston
BREAKDOWN
$18,000 = 401k Contribution, Tax Deferred ($778 biweekly, for my first week of 2016 I accidentally contributed $1,300 so it lowers my monthly for the rest of the year)
$18,000/ $64,000 * 100 = 28.13% into 401k
$5,500 = Roth IRA
$5,000/ $64,000 * 100 = 7.13% into Roth IRA
$6,400 = Tithes
$6,400/ $64,000 * 100 = 10% into Tithes
$5,041.25 = Taxes
Annual Sal: $5041.25/ $64,000 * 100 = 7.88% into Average Tax Rate
$11,000 = Gas, Car Insurance, Rent, Misc. ($900 per month)
$11,000/ $64,000 * 100 = 17.19% into Gas, Insurance, Rent, Misc.
$4,800 = Food ($400 per month)
$4,800/ $64,000 * 100 = 7.5% into Food
% Total of Annual Spent so far = 77.83%
100% of annual - 77.83% = 22.17% = $14,188.8 Goes to Extra Curricular
35.26% = currently going into Savings/ Investments in 401k, Roth IRA
Planned Expenses for 2016:
Maybe a trip out of town. (Could cost up to $1,500)
I want to have a home gym vs having a Planet Fitness membership monthly rate of $20 (Could cost up to $900. Power Rack, Rings, Weights, etc.)
A Tablet (Could cost up to $500)
New Tires (Could cost up to $400)
If I want to raise Savings/ Investments to 50% from 35.26%, 15% or $9,600 annual, $800 monthly must go to Taxable Accounts
Paycheck bi-weekly = $2,078.91
minus $778 = 401k
minus $220 = Roth IRA
minus $400 = taxable accounts
minus $200 = food for two weeks
minus $450 = Gas, Car Insurance, Rent, Misc. for two weeks
minus $220 = Tithes
= $-189.09 (why am I in the negative here? Where did my calculations go wrong?)
Please help with my case. I have no idea how I'm in the negative with my bi-weekly when I computed everything.
Also, please advise areas where I can reduce payments. Please note, some are pretty conservative numbers. Example: I don't think I actually spend $100 every week for food, maybe once a month I do.
EDIT::
I caught my error, $800 taxable accounts should be $400 instead since it's biweekly. But even then, I think I'm still in the negative.