Topic Title: Trying to grow a mustache and become FI Impossible if I stay at my current job w/ possible pension and commute 96.6 miles RT every day?
Life Situation: Hello, Im a single 25 year old currently living at home in Toms River, NJ and commuting approx. 100 miles RT to a state job as an Accountant in Trenton, NJ. I have no dependents and have recently moved back home in order to live rent-free (thanks Dad).
The original plan was to move closer to my job, but Im not sure its feasible considering my current financial position. My main priorities are to pay off my debts, and start working towards FI and early retirement. Finances aside, Im not too excited of the prospect of living anywhere near the Trenton area, but I also must continue to reside in NJ in order to keep working for NJ.
Conventional wisdom has taught me to be obsessed with the thought of having a pension through a govt job, but we all know conventional wisdom leads to a conventional life! Im only 3 months in and its a minimum of at least 10 years in order to receive a cut of the pension come retirement.
Mustachians, is it impossible to become FI and retire early if I continue to stay at my current job with nearly a 100 MI RT commute? Is a pension so valuable that I should stick in out in a state govt job regardless of distance, morale, and job location? Or am I fooling myself and should get a different job closer to home even if it means no pension?
Gross Salary/Wages: $41,072.20. Set to increase to $43,094.21 in March 2017, to $45,053.25 in September 2017, and an annual increase of $2,053.82 every September after that.
Pre-tax deductions: Not sure which are exactly Pre-tax or not, but heres a list of all the deductions coming out each paycheck. Please note that come May 2017, I will need to get health insurance.
Federal Income Tax - $137.18
FICA - $97.38
NJ Income Tax - $30.76
Medicare - @22.77
Pension (7.2%) $113.74
Pension Back Deduction (only 2 more pay periods remaining for this) - $113.31
Unemployment Insurance - $6.71
Temporary Disability Ins. $3.16
Dental Plan $9.03
Deferred Comp $67.63
Family Leave Ins. - $1.26
Contributory Ins. $14.37
Union Dues - $18.23
TOTAL DEDUCTIONS - $635.53
Monthly Income - $450 (from parents towards loans) + approx. $2050 paychecks = $2,500
Current expenses/budget:
Student Loans - $910
Lease Payment - $243
Car Insurance - $160
Gas - $150
Tolls - $25
Netflix - $11
Pet Supplies/Vet - $50
Groceries/Cleaning Supplies/Personal Care Supplies - $300
Clothes (work/casual) - $75
Restaurants/Entertainment/Fun - $50
Transfer for Savings Acct - $75
Total Monthly Spending - $2,049
$2,500 - $2,049 = $451 leftover (some to be put to CC minimum payments currently unknown since its a new CC)
Assets: $7,169 (Savings Acct - $150; Prudential 457 - $234; TIAA CREF 403(b) - $6,785)
Liabilities:
1. Student Loans (All fixed interest rates):
a. 37,104 @ 4.55%
b. 16,910 @ 2.875%
c. 15,266 @ 2.875%
d. 7,141 @ 6.8%
e. 5,550 @3.4%
f. 5,525 @ 5.41%
g. 5,458 @ 3.4%
h. 2,345 @ 6.8%
i. 2,238 @ 4.5%
j. 2,210 @ 6.8%
k. 1,736 @ 4.29%
l. 1,252 @ 6.8%
Total Student Loans - $97,210
2. Car Lease: 2015 VW Jetta S w/ Technology for 30k miles Currently at 25k miles w/ 11 months remaining on lease
9 Payments of $242.77 remaining = $2,184.93
Residual Value = $12,061.10
KBB Value = $8,415