Reader Case Study - Stop investments to reduce debt?

[primozaj]

My numbers may not be completely sorted out due to everything.  Let me try this from a paycheck perspective (biweekly, 26 pp per yr).

Gross: $4048.00
TSP: $607.20 (will be $647.68 soon - 5% matched but that's not on my pay stub as pay)
FERS: $32.38
Tax (F,S,Local): $701.94
SS/MC: $301.92
Health Ins: $71.39
FSA: $30.00
Net: $2303.27
Transfer to Credit Union: $775.00 (covers Mortgage and $355/mon to separate savings accts that I talked about)
Net to Bank: $1528.17
Bi-weekly Expenses (according to my spreadsheet): $1306.65
Which leaves $221.52 bi-weekly, so theoretically $479.96 monthly...

So yeah, I need to figure out where this is going... looks like I have a date with Quicken this weekend.

So what I think you are suggesting, former player, is sort this out and leave the extra going to my mortgage.

[zolotiyeruki]

Bi-weekly Expenses (according to my spreadsheet): $1306.65

This, right here, appears to be your problem.  That seems like an awful lot of expenses.

[former player]

So what I think you are suggesting, former player, is sort this out and leave the extra going to my mortgage.

Pretty much.  You look to be sorted on debt repayment, on tax-free savings and on low cost index fund investing, so the main mustachian change to make is understanding your spending so that you can decide whether you are happy with it or want to make changes.

Can you claim tax relief on the interest you pay on the rental?  Given that the interest you pay on it is slightly higher than on your home the mathematical advantage would say pay extra on the rental mortgage, but tax relief could cancel that out.  It's fairly marginal compared to what you don't know about your spending, though.

Overall it looks as though you have come through a rough period and put yourself in a much better position, so well done on that.  If you can understand your spending a bit better as well you will be in a stronger position to decide where you want your life to take you in the future.

[primozaj]

It feels like a mixed bag and lower I'll share my details on the CCs.  I have gotten to a point where I am not stressed for money though I'm sure the expenses should be trimmed below.  Like I said earlier, I feel that the spendy-pants ways are leaking in from my work travel to my personal life.  I'm convinced that my big expenditures are going out to eat and going on dates.  Its where I get my social interaction as a young widower but I do realize there are lower cost options.

CC1:   26 x $400.00      
CC2:   26 x $190.00      
To other acct: 26 x $100.00   
Elec/h2o/trash: 12 x $90.00      
gas:  12 x $31      
Internet: 12 x $49.99      
Roth IRA: 12 x $250.00   
Weekly ATM: 52 x $100.00
State Farm (incl. Life Ins): 12 x $242.00
No Load Fund: 12 x $50.00
Local Newspaper: 1 x $50.00
House Cleaning: 26 x $75.00   
Yard Care: 6 x $48.04   

I'll start with CC2 - I use this for bills and then send money biweekly to pay it off.  Its a hotel card that I churn somewhat, these are monthly amounts
Google Fi: $65.91 (includes cost of phone)
Massage: $84 (including tip, I lift heavy weights so I consider it necessary)
Gym: $130 (I'm on a powerlifting team)
Charity: $70
Media: $63.49 (Hulu, Netflix, Sling TV, and I've apportioned part of the money I paid for a 1TB DropBox storage) - I don't use Hulu much so I'll cancel that soon and I'm going to reduce my Sling subscription after the NFL regular season is over (I like the Red Zone Channel)

CC1 - This is my normal spend account and this is where I know there is fat to be trimmed... I don't have the detailed level of knowledge since the spend patterns aren't regular.  I use this card for groceries and eating out (mostly) and household items and such.  I check my spend categories every quarter or so but haven't been that concerned.  I guess my excuse here is that I can handle the expense even if my behavior is super face-punch worthy.

Overall, my initial concern was to move some of my extra money that is going to the mortgage to savings but I see now that there is a little more going on.

I don't know if this post has grown beyond the "Ask a Mustachian" and should be moved into the Journal section but I guess that is up to a moderator.

[primozaj]

It might be a bit arrogant to think that some of you may want an update but I'm doing this anyway.  I started a journal so feel free to check me out there.

https://forum.mrmoneymustache.com/journals/a-young-widower's-journal-my-life-after-tracy/

[nereo]

It might be a bit arrogant to think that some of you may want an update but I'm doing this anyway.  I started a journal so feel free to check me out there.

https://forum.mrmoneymustache.com/journals/a-young-widower's-journal-my-life-after-tracy/

It's good to see you posting an update - I find it more frustrating when someone starts a thread here which will obviously take several years to carry out but then stops posting after a week or two.  As a contributor I'm left wondering 'did the poster actually use any of the advice given, or were we just yelling into the ether'.

Sorry it's been a hard journey for you, but you sound like you've taken a great deal of control of your shitty circumstances.