Someone on the blog suggested that I post a case study, so here goes:
Single male, I'll be 52 this year.
Gross income: about $56K
Net Income - about $1650 twice a month($3300 total)
Monthly expenses:
Mortgage 800
--
Heating - 145 budget plan
Electric - 110
Cell phone - 65
Water - about 30/mth(paid every three months)
cable/internet - 130
Total utilities - 480
--
Groceries 100
Auto fuel 300
Spending money 100
Charity 100
Bowling 400
Car insurance about 110/mth(paid every 6 months)
Netflix - 21
--
Groceries is normally 200, but I had a surplus last month so I dropped that amount. Fuel has a current surplus as well, so that will be lower next month. But most of the other amounts are pretty consistent.
I know I can lower SOME of those, but I dont see plenty of room. Where can I cut and still have a life?
Attempted saving/sinking funds:
house repairs 100
car fund(repair/replacement) 250
Total monthly expenses - 2761
Assets: Retirement account(non-Roth) from a previous employer of about $226,000
Primary residence worth about $80,000
Liabilities: mortgage of about $102,000 - @4.75% with about 29 years left. I *was* on an ARM, but was able to re-finance without an appraisal last year. That's why the mortgage is so new.
I'm debt-free except for the house.
What else? I live about 13 miles from my current job, and I'm going to try biking to work occasionally when the weather gets warm. I'm hoping I can find a job closer to home, but I don't think I'll be able to make the same salary. I would love to own rental property to increase my income, but I'd have to do it with a mortgage, which probably isn't a good idea at the moment.
So I currently have about $539 per month available for saving. Once I build up an emergency fund of about $8000, then I can direct the surplus to retirement(probably a Fidelity Roth IRA).
If I use 25x expenses as a target figure for FI, that means I need to save another $600,000, or about $828,000 total. I have about $170 going toward retirement at my current job(contribution plus partial match). Am I going to have to settle for about HALF that? I'd appreciate any suggestions. Thanks!