Hey alexb2746,
I want a solid plan too! (26, single, M, SO and I have separate everything and don't live together)
Your annual expenses are $21,096 if you multiply your 1758 by 12. 25x that (4% rule) means you need a nest egg of $527,400 in order to be financially independent. Remember, average growth is 7%. 3% is eaten by inflation, which leaves 4% for the taking without ruffling any feathers. If either/both of you work PT, your nest egg can be smaller depending on how much more you need from investment income to make up the difference between work income and expenses.
First, slap yourself for lying to yourself. You have $150 going to Miscellaneous crap. IDENTIFY THAT. Household items, car maintenance, whatever. Just have a better idea of what that goes towards. My Misc/variable category is eaten up by stuff that doesn't necessarily fit within my grocery list, like ...
Oh, wait, just saw that you ACTUALLY HAVE MORE BILL(S)!!
$209/month for car payment means puts you closer to $2,000/month in expenses or 24k/year.
Your new nest-egg target amount: $600k.
You mention a million bucks a couple different times in here, yet your annual expenses do not warrant needing that much of a nest egg at a 4% withdrawal rate.
if you had 1.3 million, a 4% withdrawal rate means annual income of $52k. Why do you need twice as much money in retirement as you are currently spending while working?
<scribble, scribble, scribble, crumple f** this starting over>
You need to...
1. Read more MMM articles and understand HOW MUCH YOU ACTUALLY NEED TO SAVE IN ORDER TO MEET YOUR CURRENT NEEDS/MAINTAIN YOUR STANDARD OF LIVING (Your target number. Again, Annual expenses x 12 = FI number)
2. SAVE AT LEAST HALF OF YOUR INCOME AND INVEST IT EACH MONTH, PAY PERIOD, WHATEVER
2a.) There's a nifty FI calculator to show you how fast you can retire based on your savings rate. 50% savings rate means you're retired in about 10 years (or was it 8 years? I forget).
2b.) The calculator provided by your 401k website calculates things THE CONSUMER SUKKA WAY, not the Mustachian way, which is why it tells you that you need way more money. The longer you work, the more they make off of you in fees.
3. READ ABOUT THE TRINITY STUDY AND ABSOLUTELY OWN THE 4% RULE.
Your cars are jokes. Its called a roof rack and a hatchback. Those two things can allow you to haul kayaks & any goodies you need to bring with them. But seriously, unless you have the hybrid Ford Fusion that gets close to 40mpg, you're wasting money. Two gas guzzlers, ew! You're in IT and your SO is a nurse. What use do you have for a truck? Also a MMM article on why AWD is not safer than FWD. #physicsbitch
Also face punch for still owing 7k on a car(or truck) that is 5 or 6 years old.
Also read MMM's rent vs buy article. Owning will most likely increase your annual expenses. Can't just call up the apartment office when something breaks.
Lastly, your nest egg shouldn't be all in your 401k. Most folks have their nest egg in a combination of :
- 401k(contributing up to the employer's match)
-Traditional or Roth IRA
- HSA
- Taxable Account
Then you have to do some rollovers (from 401k to IRA) and a conversion step ladder if you ever hope to touch this money before their required retirement thresholds. This is where I'm super fuzzy and need to do my own homework. I still have 5ish years to figure it out before I actually need to take action, so I'm not too worried about it yet. At this point, just start hoarding cash, invest with Vanguard, and do your homework.
