I discovered MMM about a month ago, and desperately wish we had started reading this stuff years ago. I thought we were decent savers until I started reading about the rest of you BAs. We want to quit working for "the Man" as soon as possible. Where can we do better?
Thanks so much for your time and help!
Here are our stats:
Income
Me: $1500 per month after taxes and 401(k)
(I work part-time and stay home with our two small children most of the week)
Husband: $5500 per month after taxes/401(k)/insurance/health savings account + monthly bonuses that can vary widely (we don’t budget for these and put them directly toward our stache)
*We both max out our 401(k)s each year, which is factored in the numbers above = $35,000 for 2013
Rental income: about $50. We have a condo that we have been trying to sell off-and-on for 5+ years. For most of that time, we have been able to rent it out, but our homeowners’ fees in the neighborhood are so expensive ($185) that it eats into most of our profit. We plan to try to sell it again this spring when the current renters leave.
Current Investments:
My Roth IRA: $50K
His Roth IRA: $50K
My 401(k): $125K
His 401(k): $200K
529 plans for both of our kids: $15K total (we put at least $5k away annually in these accounts. Our children are three years old and seven months old).
Stache account: $275K, invested mostly in cheap ETFs with some stocks, REITs mixed in
Savings: $100K in an Ally account. We realize we have entirely too much in cash, but we don’t want to buy into the market at all time highs. We plan to invest $1000 per month in 2013 in the broad market Schwab fund (SCHB).
Expenses - based on our expense tracking for 2012
Primary mortgage: $2200
:: our actual mortgage payment is $1000, but we pay an additional $1200 per month with our goal to have the house paid off in seven years or less)
:: we owe about 165K on the loan with a 2.875 interest rate
Condo mortgage: $950
:: we cannot refinance this loan at a lower rate (current rate is 6%) because it is non-owner occupied
Other debt: $500 per month for my husband’s car (we bought his car recently when he got a new job and needed a car. We were able to get 0% financing, so we will just pay it off before the rate resets/expires).
TV: $24/month (we cancelled cable several years ago, but we do have Tivo and Netflix)
Internet: $63/month (this is pricey, but we need fast internet because my husband works from home and I do as well occasionally. I’m open to suggestions – I hate Comcast and would love to go elsewhere)
Gas/Electric: Depends on the season, but averages about $150 total per month.
Cell Phone: Our jobs both pay for our plans
Groceries/Dining Out/Alcohol: $500/month. These fluctuated wildly from this year because we had a baby in May and then our house flooded, so we ate out much more than usual. We do eat as local and organic as possible, but this is something where it is important to us to spend more money in this area. We also buy in bulk, so it is difficult to come up with an accurate monthly amount.
Car Expenses: $100/month. We both have cars – mine is paid old and for, and his is not (although we could pay it off – we’re just coasting on that zero percent loan)
Charitable giving: $1000/month to church and two local organizations that we’re passionate about
Travel costs: $100/month. We like to have this amount set aside to go to some drive-able spots that we like throughout the year. We would like to increase this category as the kids get older, however.
Medical: We have a high deductible plan, so we take pre-tax money from my husband’s pay check to fund our health savings account (already factored in the take-home income above)
Water/sewage: $60/month
Association fees: $50/month
Insurance (life, auto, and umbrella): $125
Gym + childcare at gym: $60/month
Childcare/Preschool: $860/month (ouch, but we love my son’s preschool and the lady that watches our daughter during the week)
Miscellaneous: $75/month - all other expenses including clothing, concerts/sporting events, books, music, hair cuts, house stuff, etc. (although we get most of our books and music from the library)