I just recently started my first job out of graduate school as a professor, and am slowly getting my financial house in order after years of terrible decisions. I am still adjusting to the mustachian perspective on things, and could perhaps use some advice from more seasoned participants of this forum. At the moment I am trying to figure out whether early retirement is even an option for me! Even moving to positive net worth would be huge.
Thank you in advance for any advice you may have!
Age: 31, single
Income: Just received salary bump, and about to earn $76,475 before taxes/insurance → roughly $4,222.52 a month after taxes/insurance.
Current expenses:
Expenses have been wildly variable over the past year, but a rough estimate going forward is as follows:
Mortgage: $1,005.00
HOA dues: $305
Property tax: $225 (estimate)
Insurance (car and home): $86
Student Loan: $291
Internet: $54
Cell phone: $84
Gas and electric: $60 (average over the year – higher in summer months lower in winter)
Groceries: $250
NYTimes: $15
Hulu: $7
Gym: $38
Restaurants: $70
Alcohol/bars: $70
Haircuts: $36
Miscellaneous expenditures: $200
Total: $2796
Income minus expenses: 4222.52 – 2796 = 1426.52
Assets:
2004 Prius: KBB says $4,800 but the car has terminal problems so more like $2k
Condo purchased in 2010: $210,000
Roth IRA: $23,423.67
Individual investment account: $10,504.02
Total: $245,927
Liabilities:
Mortgage: $207, 825 at 4%
Student Loans: $93,427 at a weighted average interest rate of 5.48% (note – I qualify for loan forgiveness in 10 years time)
Total: $301,252
Specific Questions:
I would like to move to positive net worth as soon as possible, and figure out whether it is possible for me to retire within 20 years.
My questions are as follows:
What kinds of things should I be doing to reduce my expenses and move more quickly to positive net worth?
Starting this year, I am eligible for 403b contributions (employer contributes 7.75%), how much of my savings each month should I direct to this?
Is early retirement possible for me?
I greatly appreciate the information in this forum and any potential help anyone can offer!