Author Topic: Reader Case Study - Advice to become a better Mustacian  (Read 1586 times)

Cincy Stache

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Reader Case Study - Advice to become a better Mustacian
« on: December 06, 2013, 11:26:02 AM »
Where to go from here???
A while back, last February I posted my case.  I got a good reasonable response and have made headway in a couple different areas.

Below, I have provided an update of the current financial status today. 

Question: What else can I do to live more frugally.  I LOVE not spending $.  Saving and investing $ is the equivalent of many Unmustacians going out for a nice dinner....  I've recently purchased a house for my little (non-married) family.  Son is now 9 months old and it was important to give him a neighborhood/backyard/home to call his.  I'm really looking for answers where I can skimp and save anywhere!  I wish MMM would address the low income 20-somethings more often so that I can get a read on where I stand.
Any advice is advice!

Age: 28, unmarried living with significant other and our 9mo. old
Income: 2,200 after tax monthly
MITI:$750, $94k mortgage at 4%
Utilities: $80
Car insurance: $60
Student loan: $200, $7k at 2.1%
Hospital Baby Bill: $62.50/mo, $1,585 at 0%
Phone: $40
Gas: aprox $175 (work 25 miles one way, I'm still working on this one!  Hopefully down to 5 miles by Feb '14*
Car paid off: still put $175/mo into auto savings account.  -2003 Jetta, 140k miles-

Public emp retirement fund that I no longer contribute to since I'm in a different job: $10,000
Deferred comp ING account I no longer contribute to since I'm in different job: $3,800 (steady growth w/ market)
Stocks: $4,000 (variety of Large Cap)
HSA: $600
Car Savings Acct: $1,400
Banked: $4,000 (sv/chk negligable %)

Updated Life Info from original post: 9 month healthy boy.  Finances are still separate and still good idea since GF not up for the Mustachian lifestyle yet.  Major goal has been accomplished to buy a home and start building equity.  I've been using the Amex Preferred Blue Cash card to get the 6% back on groceries & 3% back on gas.  Paid balance in full every month.

I might be in decent shape, but please light my hair on fire... 


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Re: Reader Case Study - Advice to become a better Mustacian
« Reply #1 on: December 06, 2013, 11:45:15 AM »
Clearly you are frugal and I'm not seeing obvious changes in spending to make other than the continuous optimizing of what you already do.  If you didn't have a baby I'd suggest using your cash to knock out the student loan.  But I think having 5K in cash when you have a baby is prudent and at least the interest rate is low.

Next step for you will be upping the income. You're taking home 26K a year which is pretty miserable. You need a plan to double or triple that within 3 years, by getting promoted, new skills, new job, or side hustles.  Sounds like something is in the works for Feb, hopefully it comes with a raise as well as the reduced commute.

Cincy Stache

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Re: Reader Case Study - Advice to become a better Mustacian
« Reply #2 on: December 06, 2013, 12:24:41 PM »
Thanks for your response.  Eventually, I'd like to have 10k resting in Savings, 5k in Checking as just a matter of living.  I know neither of those accounts will be putting my dollar bills to work, but I was always taught that having a decent amount of liquidity is safe.  I know it won't be a super fast process to up the income, but as you can see, I don't require much.  I'm a former Golf Professional and headed back into the industry after a 2 year hiatus.  I'm looking forward to a shorter commute and heading back to the golf course every day.  I should be able to garner 30-35k take home next year and eventually 70k down the line at a minimum.  Seeing that I'm going back to the industry I love, my goals are less "early retirement" than just plain old FI.  My retirement will be giving golf lessons for play $ on top of what I've saved for 4% rule at 50-60 years old. 

I'll start looking for many "side hustles" as well!