Author Topic: Looking for opinions on how to approach my budget.  (Read 1891 times)

Geosoxs

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Looking for opinions on how to approach my budget.
« on: March 01, 2019, 10:37:13 AM »
I want to optimize my savings/investing budget to better get to FI more efficiently. A bit about me. I'm single, I do not own a home, I rent and fully own my car.

I have it worked out to save about 55% of my annual earnings. Though the categories aren't exactly focused on investing 100%. My employer 410k match is 3% which I hit. I do put the majority of my investing money into a Roth IRA.

investing   30%
home down payment    11%
learning   11%
Misc Annual   5%
vacation   11%
emergency fund   33%

What are things that you might cut or optimize so that I can get on a better track to FI

chasesfish

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Re: Looking for opinions on how to approach my budget.
« Reply #1 on: March 02, 2019, 06:21:49 AM »
The question is kind of general.

For starters, do you log every expense you make?  Why is the emergency fund percentage so high?  I also send people to this post from early retirement now when I see large emergency funds. 

Research-Geek

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Re: Looking for opinions on how to approach my budget.
« Reply #2 on: March 02, 2019, 06:51:01 AM »
How much is the balance in your emergency fund? ( Or how many months would it cover you if you stopped working tomorrow?)

Have you tried using Mint to track expenses for a few months?

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ixtap

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Re: Looking for opinions on how to approach my budget.
« Reply #3 on: March 02, 2019, 06:57:33 AM »
You haven't given us any information about your budget, except that you are evidently attending classes and taking vacations. Without knowing where you are starting, we can't know where you should go.

Raenia

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Re: Looking for opinions on how to approach my budget.
« Reply #4 on: March 02, 2019, 08:14:28 AM »
You asked about budgeting, but based on the rest of your post it seems you are wanting to know more about what to do with your savings - how much emergency fund vs downpayment vs investing.  People mostly use a budget to describe the spending side of the equation, so that's why your question seems vague to us.  Can you clarify if you're looking for help managing a spending budget, or how to allocate your savings?

Geosoxs

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Re: Looking for opinions on how to approach my budget.
« Reply #5 on: March 02, 2019, 03:44:29 PM »
I appreciate all the posts and it's been pointed out that my question was vague. I think I needed to sound board more than anything. I came to a few conclusions based off some hints and advice here for what direction I want to go now. I eliminated my house downpayment and traveling accounts for now. I want to get to hit my 19k in my 401k before I start saving for either of those.

The reasons for eliminating the home down payment. One, to fully fund my Emergency fund to 9 months. Two, live in a part of the country where the median house is worth 350k. It would be about 1250 a month for the home, and that is with a 20% down payment... which I don't have. It is cheaper for me to rent currently. I pay $730 and have roommates, and live in a nice place, some might say it's luxurious. Three, I read JL Collins blog post on should I buy a home. I do not think it a path right now I want to go down.

The travel part, I am putting a hold on to. I have a dream to travel to Japan one day. I would rather do it with someone else and I don't have any prospects who I currently wish to go with. I am doing some travel hacking. Rewards and such will help me get there. The reason I feel travel hacking will work on this occasion is I'm about to pay 2.5k-4k in medical expenses for a lovely appendicitis I enjoyed in January. So, this travel money will in part go into paying for that and helping me up my Emergency Fund.

Thanks again all.

civil4life

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Re: Looking for opinions on how to approach my budget.
« Reply #6 on: March 02, 2019, 06:55:59 PM »
This post may help with the question you are asking.  https://forum.mrmoneymustache.com/investor-alley/investment-order/

MrThatsDifferent

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Re: Looking for opinions on how to approach my budget.
« Reply #7 on: March 02, 2019, 10:24:49 PM »
I appreciate all the posts and it's been pointed out that my question was vague. I think I needed to sound board more than anything. I came to a few conclusions based off some hints and advice here for what direction I want to go now. I eliminated my house downpayment and traveling accounts for now. I want to get to hit my 19k in my 401k before I start saving for either of those.

The reasons for eliminating the home down payment. One, to fully fund my Emergency fund to 9 months. Two, live in a part of the country where the median house is worth 350k. It would be about 1250 a month for the home, and that is with a 20% down payment... which I don't have. It is cheaper for me to rent currently. I pay $730 and have roommates, and live in a nice place, some might say it's luxurious. Three, I read JL Collins blog post on should I buy a home. I do not think it a path right now I want to go down.

The travel part, I am putting a hold on to. I have a dream to travel to Japan one day. I would rather do it with someone else and I don't have any prospects who I currently wish to go with. I am doing some travel hacking. Rewards and such will help me get there. The reason I feel travel hacking will work on this occasion is I'm about to pay 2.5k-4k in medical expenses for a lovely appendicitis I enjoyed in January. So, this travel money will in part go into paying for that and helping me up my Emergency Fund.

Thanks again all.

Congrats on deciding to not buy, it’s a money and time suck, avoid and invest. As for traveling, do it and don’t wait for anyone. Solo traveling is amazing and you learn a lot about yourself. Life is short and you’re not guaranteed tomorrow. Don’t have regrets about, if only this. Just go and let yourself learn from mistakes and for things that go right. You meet interesting people traveling solo and have great adventures. Google tips. Also, if you meet someone you can always take them back and look badass for already knowing your way around, trust me, it helps.

 

Wow, a phone plan for fifteen bucks!