Hi all, new user and I've read a ton of great info here so far. I have unfortunately fallen into the trap of insane lifestyle inflation and it's time to fix it.
I am 29 years old (30 in August) and I have spent a ridiculous amount of money. I bought 2 brand new cars, including a BMW (which I am now planning to sell). The only good news is that I have been contributing to my 401k.
Here is the damage:
Take Home Base Income: $5,300/month (usually more with commissions but I plan on investing all bonus money from this point on. Bonus is usually in the range of $10,000-20,000 net extra per year)
Rent: $1200
Utilities: $170
BMW Payment: $908 ($17,700 remaining @ 4.9% interest)
Car Payment: $473 ($15,800 remaining @ 2.7% interest)
Student Loan Payment: $137 ($5,700 remaining @ 6.55% interest)
Car Insurance: $120
Fuel: $150
Food: $200
In the past, everything not on this budget got spent on other things. I took luxury vacations, I recently got my pilot's license so that was about $12,000 all told. I bought a bunch of luxury furniture/clothes/home wares, etc. It was quite over the top. I even developed some credit card debt (about $6,000) which I just paid off.
Assets:
401k: $42,000 (This year I started contributing 15% which will max it out)
BMW: Could probably sell it for $20,000 or so, 2012 model with low mileage
Car: $15,000 or so
I had a horrifying moment when I sat down and looked at my finances and realized while I make good money, I'd never be able to buy a house at this rate. So I started researching online and came across this and other blogs and realized what I had to do. I'd love to hear stories from people who were in similar shoes and how you achieved your goals.
My goal is to become FI and be able to retire by the time I am 45 years old (15 years from now). I am planning on having at least $2 million in assets by then.