Reader case study: California RN

[Aprés-ski]

Hello fellow Mustachians!  I've been a year long lurker here on the MMM site. I'm a 28 year old guy and I love living in midtown Sacramento. I feel it is time to open myself up for a case study as I do have a few questions I haven't found answers to!

Yearly Gross Income $80,000 - $113,000. RN's are paid hourly (oh, the OT!) and I work 56 hours every 2 weeks. If I work the bare minimum hours my yearly gross income is $80,000. If I work 40 hour work weeks then my gross is $113,152. A lot more with over time pay.

Monthly Net Income $3,000 - $4,500

Monthly Current Expenses
Rent $510
Utilities $30
Wifi $30
Groceries/going out $300 - $400
Auto insurance $56
Gas $80
T-mobile cellphone: $30
Climbing gym/crossfit/gym $70
Dues to my family for Tahoe cabin - $16.60
Health/dental/vision - free
Total $1,176

Assets
403b - $45,000 - 80% stock (FSEVX) 20% bond (FSITX)
Roth IRA  - $12,900 - Same assets as 403b but Vanguard
Vanguard taxable - $7,800 - 100% VTSMX
Emergency Fund - $3,000
4 cylinder manual Ford Ranger - $1,000 

Paycheck breakup
20% to the 403b until it is maxed out
10% to my taxable Vanguard account
10% to my savings/emergency fund until $6000 is reached (approx. a little less than 6 months)
$212 of every paycheck goes to my Roth
The rest goes into my checking where I pay bills then stuff it into savings or the taxable account.

Debt None!

Short Term Goals
1. Take the GF hiking in Nepal in 2016 - $6,000
2. Wedding ring + wedding - ???
3. Save for a down payment on a duplex - Cost about $300k in Sacramento

Long Term Goals
1. I'm in no rush to FI. Maybe 20 - 25 years. Nursing brings me great satisfaction. But, FI would allow me to follow my dreams of traveling like the Bumfuzzles
2. Own a few (2-3) duplex for semi passive income
3. Eventually buy the least expensive house in the nicest neighborhood. I love East Sac!
4. Help the GF start her own PR Firm in 5 years (she has no debt)
5. Go back to school to be a nurse practitioner/physician assistant/certified nurse anesthetist (would cost north of $100,000)
6. After FI give my time to Doctors Without Borders
7. Kids (happy accidents)

My questions to you guys!

1. Does anybody know any mustachian ways to buy a wedding ring? I cant help but feel I'm going to get hosed by a jeweler? How much should I spend?

2. I want to put a down payment on a duplex to live in one unit and rent the other out. Where do I save the capital for this? In my taxable vanguard account or in a savings account?

3. Which order should I buy the big ticket stuff? Wedding ring, duplex, grad school? Just FYI RNs make approx the same as NPs & PAs here in Sac. CRNAs make 200k+

4. I'm new to this FI thing. Am I on the right path?
 

[mxt0133]

1. Does anybody know any mustachian ways to buy a wedding ring? I cant help but feel I'm going to get hosed by a jeweler? How much should I spend?

Read this thread for some tips on what to do and not do: http://forum.mrmoneymustache.com/welcome-to-the-forum/$25k-for-engagement-ring/

2. I want to put a down payment on a duplex to live in one unit and rent the other out. Where do I save the capital for this? In my taxable vanguard account or in a savings account?

I would put the down payment funds into a 1-2 year CD and not in any type of investments other than cash like securities.  I assume that you'll be doing this within 5 years.


3. Which order should I buy the big ticket stuff? Wedding ring, duplex, grad school? Just FYI RNs make approx the same as NPs & PAs here in Sac. CRNAs make 200k+

Which one is more important to you? One way is to get engaged, pay for grad school and when you and your wife are making bank, then get the duplex.  Others might say get the duplex now, then grad school, then marriage.  One thing to note that getting engaged should not significantly delay you saving up for either a down payment or paying for grad school.


4. I'm new to this FI thing. Am I on the right path?

Your expenses are low and you are investing, I say you well on your way to FI.  Just ensure that your SO or future fiance is on the same page as you.  If you search the forums there are lots of threads about un-mustachian spouses.  You can avoid that headache by being upfront with your GF about it before you tie the knot.

[fartface]

Assets
403b: $45,000
Roth IRA: $12,900
Vanguard taxable: $7,800 INCREASE TO $10,000 and switch to VTSAX or VDADX (Admiral share class)
Emergency Fund: $3,000 USE THIS TO GET TO 10K IN VANGUARD

Paycheck breakup
20% to the 403b until it is maxed out
10% to my taxable Vanguard account
10% to my savings until $6000 is reached (approx. a little less than 6 months)
$212 of every paycheck goes to my Roth INCREASE TO $458/MONTH INSTEAD OF BUILDING SAVINGS
The rest goes into my checking where I pay bills then stuff it into savings or the taxable account.


Short Term Goals
1. Take the GF hiking in Nepal in 2016: $6,000 UH, NICE DREAM, BUT I'D POSTPONE UNTIL FI OR AT LEAST DUPLEX OWNER
2. Wedding ring + wedding: PAWN SHOP
3. Save for a down payment on a duplex - Cost about $300k in Sacramento: GOOD PLAN; WHAT'S YOUR GF GOT SAVED TO HELP W/THIS?

My questions to you guys!

1. Does anybody know any mustachian ways to buy a wedding ring? PAWN SHOP

2. I want to put a down payment on a duplex to live in one unit and rent the other out. Where do I save the capital for this? In my taxable vanguard account or in a savings account? taxable vanguard account

3. Which order should I buy the big ticket stuff? Wedding ring, duplex, grad school?
1st  RING (you could do this tomorrow if it's inexpensive enough and 0% financing on credit card)
2nd DUPLEX
3RD SKIP GRAD SCHOOL & ITS ACCOMPANYING DEBT

Just FYI RNs make approx the same as NPs & PAs here in Sac. CRNAs make 200k+

4. I'm new to this FI thing. Am I on the right path? YES, YOU'RE DOING GREAT. BUY A CHEAP RING! I didn't find out 'til after our wedding that my DH spent $3000 on my engagement ring (seventeen years ago -- half carat). I was super pissed he spent that much. I kept thinking how that $$$ could have gone towards our down payment. Even today, I think you can find a beautiful ring for less than $1000 --and like I mentioned earlier -- charge it on a 0% credit card w/sign up bonus so it won't even crimp your FI plan.

[1WattLightbulb]

Yes, you are on the right track. Cheers!

The $100K+ figure for grad school got my attention. Look carefully at the ROI (which should include the intangibles like your satisfaction/achievement in meeting that career goal). It reminds me of that chart that circulated awhile back that compared earnings of a doctor with a UPS driver (attached).

I second the thought on waiting with the Nepal trip. You can create many hiking memories w/o leaving northern CA.

One way to save on a wedding ring is to buy a stone similar to a diamond and mount it on the ring. Diamonds have huge markups.

The gym membership seems high and your next vehicle could be more fuel efficient.

[Cassie]

Don't surprise your GF with a ring-take her shopping for the one she wants. Many women have a ring that they have their heart set on & it is a bad way to start a marriage.  Together come up with a budget before going shopping.  Pawn shops are a great way to buy a ring.  Also if she sees a stone she likes you can always melt down the gold & have it set the way she wants. It is not very expensive to do this.