Author Topic: New Mustacian Need Some Guidance :)  (Read 3404 times)

sbeamer

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New Mustacian Need Some Guidance :)
« on: March 30, 2014, 10:41:43 AM »
Hi Everyone,

I recently stumbled upon this website in my efforts to become financially independent in the next few years or so. I am going to follow the case study format and ask for any guidance with where I can reduce my costs or create/implement more efficient methods of doing something better. Any and all feedback is strongly encouraged!!!   :)

A little background of myself, I am currently 22 years old and still live at home and trying to save up to buy a fixer up'r of a house. I have just started a corporate 9-5 job and have recently made some really positive steps to reducing my spending. Currently it is not necessarily easy to bike to work due to not being able to ride on the highways / conditions of the road are extremely unsafe on alternative routes.

Income:
$64,000 Pre tax yearly salary (been there for 8 months now)
~$3000 in bonuses
~$1000 in coaching/officiating sports
Total Between $67,500 - 68,000

Current expenses:
Groceries cost between $60 - 70 per week which includes all meals/snacks (Yearly cost of $3120 - 3640)
Eating out 1-2 per month ~$50 total
Drive a Hyundai Santa Fe, Gas $53 per week ($2756 per year)
Phone plan $72 per month (Yearly cost of $864) Also looking into the republic wireless $25 a month plan to save $47 per month
Car Payment / insurance ~$380 a month to pay used car down quicker, should be paid off by October of this year ($3800)
Computer game monthly fee $15 ($180)
Helping my parents pay down my college costs $150 per week ($7800)
Racquetball/Group Class Gym Membership $29 per month ($348 with $174 reimbursed through employer)
Planet Fitness 1 time fee $99 per year
Purchased road bike & accessories $1100 total
Charity events $600ish per year
Snowboarding membership 399 per year/season
Family weight challenge $20 per week
Health Insurance $36 per biweekly paycheck

Per Month Costs: ~$1827
Per Year Costs: ~$23988

Assets:
401k has approximately $5200 (Contributing 22% of pay right now)
Personal brokerage account ~$2200 with a current yearly return of 18%
Personal checking / everyday spending account always less than $1000
Emergency fund (invested in dividend stocks) ~$1200

Total: ~$9200

Liabilities:
1 Credit Card @ 17% interest rate with 2% back on all purchases - $1000 ish in debt at the end of each month and always brought down to $50 each month (so I don't get dinged for not carrying a balance)
Helping my parents pay down my college, roughly $18,000 should be finished paying back in the next 1-2 years
Used Car loan under $2400 left will be paid off by October this year

Total: ~$23,400

Thank you so much for all your thoughts and help in advance :)
-Sbeamer

« Last Edit: March 30, 2014, 10:45:01 AM by sbeamer »

phred

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Re: New Mustacian Need Some Guidance :)
« Reply #1 on: March 30, 2014, 01:24:19 PM »
Phone your credit card company.  Ask them, since you've been such a great client, to lower your rate

BlueHouse

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Re: New Mustacian Need Some Guidance :)
« Reply #2 on: March 30, 2014, 01:37:09 PM »
1 Credit Card @ 17% interest rate with 2% back on all purchases - $1000 ish in debt at the end of each month and always brought down to $50 each month (so I don't get dinged for not carrying a balance)
Why would you get dinged for not carrying a balance?  You should not be charged anything for the use of a credit card if you have the ability to pay it off. 

marty998

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Re: New Mustacian Need Some Guidance :)
« Reply #3 on: March 30, 2014, 02:54:48 PM »
Yeah thats an odd one. Down here you need to pay off the entire balance each month to avoid interest and fees

FiveSigmas

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Re: New Mustacian Need Some Guidance :)
« Reply #4 on: March 30, 2014, 03:07:33 PM »
Hey, sbeamer.

Like everyone else has posted, paying off the entirety of your balance every month doesn't hurt your credit score (although just letting your credit card sit dormant can). Also, as Marty said, you're also more than likely being charged interest on your entire balance if you don't pay it off in full. Check out:

http://www.mrmoneymustache.com/forum/ask-a-mustachian/pay-off-everything-but-$5




CrochetStache

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Re: New Mustacian Need Some Guidance :)
« Reply #5 on: March 30, 2014, 05:20:51 PM »
That's quite a bit going towards a multitude of sports activities.
Pick a sport and focus your energy/fitness there.

Now that you have your bike, use it instead of spending on a gym membership.

Are you majoring in something related to all these sports activities?

Thegoblinchief

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Re: New Mustacian Need Some Guidance :)
« Reply #6 on: March 30, 2014, 05:40:53 PM »
Grocery spend is very high for a single guy. This should be under $200 including alcohol and personal care.

Eliminate some of the sports spending.

Use your new bike instead of your car whenever possible.

Ditch the MMO or find one you like that doesn't require a sub.

You might consider having a somewhat larger e-fund but that's personal choice.

sbeamer

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Re: New Mustacian Need Some Guidance :)
« Reply #7 on: April 01, 2014, 09:22:05 PM »
Thanks for the feedback everyone! Follow up question since I have recently thought about it... I am currently contributing about 22% to my 401k/Roth IRA... Should I start paying my parents back more for the money they lent me for college, or should I contribute more to those accounts. If you have any articles that you can reference or postings from MMM, that would be great!!! Sorry if this sounds all like basic questions that have been answered a million times. Still working on reading every piece of information on this blog! :)