Category | YTD | Month | Notes |
Income | 39,669 | 2,834 | YTD includes tax refund, tuition reimbursement, and $ from parents for plane flights home. Monthly is just my paycheck |
Spend Tot | 36,238 | 2,093 | |
Difference | 3,431 | 741 | |
% Saved | 8.65% | 26% | |
Rent | 10,160 | 960 | |
Edu | 9,208 | - | Grad school. Paying in cash. 1/3 is reimbursed by work. Done 5/2015 |
Groceries | 4,107 | 339 | "Family" of 2. Proceed face punch. |
Dining | 3,619 | 339 | Insert face punch here. |
Useless stuff | 3,522 | ??? | Gifts, household, "entertainment", clothes, cash, tax prep. |
Car | 2,288 | 214 | Gas and Insurance |
Gym | 1,375 | 70 | Rock climbing gym. My only work out, especially because in winter after dark, a tiny gal like me cannot be outside alone for both temperature and safety reasons. |
Travel | 1,077 | - | Mostly paid back by parents because otherwise I'd never visit home |
Utilities | 465 | 80 | 40 electric and 40 internet/month |
Medical | 417 | - | Mostly out of network mental health |
Category | Amount | Notes |
401k | $11,900 | Started 3 years ago. See questions below |
Savings | $4,940 | In savings account to cover next year's tuition in full |
Investments | $1,708 | Index fund, just started last month |
Car | 2007 Hyundai Elantra | Paid in cash, ~150k miles |
The best remedy for this, I think, is some punches delivered directly to my face.Do you not like your parents? I ask because I see you are willing to pay to eat out, and for a rock climbing gym, but not to travel to visit home.
Synopsis/TL;DR: 25y.o. with (effectively) no debt, $52,000 salary, full time job, part time school. Capability to grow moneystubble some months but a propensity to fall victim to wussypants syndrome especially as it relates to food (and guilt spending on friends/family).
Here is my actual annual (YTD) and monthly average spending and income for 2014.*Disclaimer: I consolidated some categories by hand, so I apologize if my totals are off by a little.
Category YTD Month Notes Income 39,669 2,834 YTD includes tax refund, tuition reimbursement, and $ from parents for plane flights home. Monthly is just my paycheck Spend Tot 36,238 2,093 Difference 3,431 741 % Saved 8.65% 26% Rent 10,160 960 Edu 9,208 - Grad school. Paying in cash. 1/3 is reimbursed by work. Done 5/2015 Groceries 4,107 339 "Family" of 2. Proceed face punch. Dining 3,619 339 Insert face punch here. Useless stuff 3,522 ??? Gifts, household, "entertainment", clothes, cash, tax prep. Car 2,288 214 Gas and Insurance Gym 1,375 70 Rock climbing gym. My only work out, especially because in winter after dark, a tiny gal like me cannot be outside alone for both temperature and safety reasons. Travel 1,077 - Mostly paid back by parents because otherwise I'd never visit home Utilities 465 80 40 electric and 40 internet/month Medical 417 - Mostly out of network mental health
Assets:
Category Amount Notes 401k $11,900 Started 3 years ago. See questions below Savings $4,940 In savings account to cover next year's tuition in full Investments $1,708 Index fund, just started last month Car 2007 Hyundai Elantra Paid in cash, ~150k miles
Liabilities:
Student loan: $53,000 from undergrad. However this is entirely covered by parents, so effectively $0, and it should be gone by next year.
No car loan
No month-to-month credit card debt
Some notes
- Commuting is expensive for me, but boyfriend walks to work. He is the one with more of a pants on fire debt emergency due to his grad school.
- At 25, I don't pay for health insurance yet but that changes next year.
- I don't pay for my cell phone either. That may also change soon.
- I may be moving to California next year for boyfriend's job. Hello rent increase!
- I finish my (fully paid in cash) Master's degree next May, so that cost will go away! And my salary will increase!
Goals
- Save more than 26% per month (and more than 8% per year). Even with my luxurious dining habits, 26% per month isn't shabby, but I know I can and should do better.
- Save $100,000 for a 20% down payment on a ~$500,0000 condo/house. This would probably get me a 1 br near my work's office in CA. Until then, I'll just be hemorrhaging money on rent equal to what a mortgage payment would be.
- Live off one income (preferably mine) so that the boyfriend can pay his whole student debt (~$60,000) and credit card debt (???!!!) in one year.
- Be able to move to part time work before 30 to have more time for things like potential kids, pets, rock climbing, painting hobby, etc.
Questions
Feel free to tackle any subset of the questions below:
- Diniiiiing! Some days after work and school, I just don't have the energy to cook, and the boyfriend is a huge enabler (pusher even) of eating out because "we deserve it". I know. So mentally speaking, how do I resist this? And how do I convince him in the heat of the moment that, no, we actually deserve to not stress about debt? Any go-to foods to keep around for when this situation strikes?
- Useless stuff. Treating my mom to [Edit]expensive dinner when she visited. Buying wedding presents. Cash (read: dining). Clothing. Most months I'm good, but other months I catch wussypants disease and make enough stupid decisions to more than make up for it. Sigh. Commence the face punches. Maybe shame will help.
- My employer's 401k is stupid. It's through some small company and there is no option to put it in an index fund which makes me want to face punch someone. What do I do with it?
- Speaking of retirement, how am I doing with that 401k? I have no point of reference for my age. I don't feel the need to retire early, but would love the flexibility of part-time.
- Are my goals reasonable given my income? Especially that house one...
- Does anyone have any good references for how to talk to significant others about debt and money?
- What else would you like to face punch me for in the table above? I suspect I know already and promise I will try not to turn into Mr. Complainypants, maker of excuses.
And for those of you that made it this far, I applaud and thank you in advance for your ability to focus on such a long and rambling post and for your generosity in giving me some of your time.
Dining: Digiorno, Bertolli, Stouffers, etc. are your friends.
Do not buy a 500k place in SoCal.
First, if this income supports 2 people while your BF is in grad school, that makes it a little less facepunchy. If this is for only 1 person, you have major work to do.
If you are in a high cost area maybe this isn't so bad, but consider smaller, less trendy area, or roommates to save hereDefinitely a factor for when I move. For the current situation, I actually do live in what could be described as a "trendy" neighborhood, but in the cheapest building I could find. It's also just about the only way for the bf to walk to work without me having 2-3x the commute. For the eventual future, does anyone have good tips on finding/vetting roommates? My experience living with friends has been...highly variable. My experience living with strangers has also been...highly variable!
Don't buy useless stuff. It's ok to treat your mom to a meal, or attend a wedding, but buying crap won't make you happy long-termYeah... I guess part of the problem too is that when I do this I tend to go overboard. I don't just treat her to a meal, we go somewhere fancy schmancy. I don't just attend a wedding, I get a fancy gift and don't carpool with friends to get there. But yeah, the other useless stuff has got to go. I'm going to put a moratorium on buying clothes.
Do you not like your parents?I... will not go into too many details, but for a wide variety of reasons, I get along well with them... from a distance. However holidays are a major source of stress (see >$400 spent on metal health this month in anticipation of Thanksgiving). This is only the second Thanksgiving in the last 7 years where I have not purposefully made plans to avoid going "home". It's a shame because I like my brother and sister...but that's an entirely different post for entirely different blog. And I'd actually like to get entirely financially free from them, if only to stop the constant war over who I should have "loyalty" to. (Can you tell they are divorced?) I know many people have wonderful and healthy relationships with their parents, but I am not necessarily one of them. Once they reach a point where I can (mentally) afford to be around them for more than 10 days at a time, my priorities will probably change.
Significant others and money is one of the most difficult issues many of us deal with. Refer him here to start. If he doesn't like it, try other sites. Tell him your goals, and try to find some common ground goals to work toward.
Get employer match, then max T.IRA, then max 401k
House: Read this (http://jlcollinsnh.com/2012/02/23/rent-v-owning-your-home-opportunity-cost-and-running-some-numbers/) and this (http://jlcollinsnh.com/2013/05/29/why-your-house-is-a-terrible-investment/).
Parents/Pressure from others: This is your life. You choose. Tame the mammoth! (http://waitbutwhy.com/2014/06/taming-mammoth-let-peoples-opinions-run-life.html)
Boyfriend/podcasts: This guy (http://radicalpersonalfinance.com/about/) hangs out on these forums under 7years and has long but very good daily podcasts on all things finance. Send him a link.
401k's/IRA's: A lot of great info over here (http://www.madfientist.com/retire-even-earlier/).
If you follow all those links, you'll have a huge head start on most newbies on this forum.
NorCal actually, but where I'm looking, it's probably the same situation. I expected as much, though I have a long history behind me of pressure to buy a house ("the price will always go up", right? ...Right?) that I need to de-train myself from. And it's actually really good to get reinforcement of the idea that maybe buying a house isn't always a good idea. That being said, the move situation is so up in the air that the cost may be entirely different than what I'm thinking now. So I guess really my goal is to have the ability to put $100,000 on a house at some point in the future. Whether or not I actually do that, who knows!
For the eventual future, does anyone have good tips on finding/vetting roommates? My experience living with friends has been...highly variable. My experience living with strangers has also been...highly variable!
Questions
Feel free to tackle any subset of the questions below:
- Diniiiiing! Some days after work and school, I just don't have the energy to cook, and the boyfriend is a huge enabler (pusher even) of eating out because "we deserve it". I know. So mentally speaking, how do I resist this? And how do I convince him in the heat of the moment that, no, we actually deserve to not stress about debt? Any go-to foods to keep around for when this situation strikes?
- Useless stuff. Treating my mom to [Edit]expensive dinner when she visited. Buying wedding presents. Cash (read: dining). Clothing. Most months I'm good, but other months I catch wussypants disease and make enough stupid decisions to more than make up for it. Sigh. Commence the face punches. Maybe shame will help.
- My employer's 401k is stupid. It's through some small company and there is no option to put it in an index fund which makes me want to face punch someone. What do I do with it?
- Speaking of retirement, how am I doing with that 401k? I have no point of reference for my age. I don't feel the need to retire early, but would love the flexibility of part-time.
- Are my goals reasonable given my income? Especially that house one...
- Does anyone have any good references for how to talk to significant others about debt and money?
- What else would you like to face punch me for in the table above? I suspect I know already and promise I will try not to turn into Mr. Complainypants, maker of excuses.
Ah, yeah NorCal and SoCal are both horrid expensive, but renting usually wins there. I lived in SoCal so the numbers may be slightly different plus I haven't lived there in 3 years, but I never paid over $1100 for my share of rent- and that was for the master bedroom. Having the ability is of course a good goal, although I wouldn't keep too much of that tied up in cash with buying being a maybe, you want those $ working for you.
On the subject of your grocery bill, I don't think $339/mo is face punch worthy. You're well below the US median monthly grocery bill for a family of 2.
-Keeping shelf-stable but fast stuff on hand
-One big hurdle for me was getting away from the 'eat what I want' mentality toward 'eat what I have.' It's like, I know I have pizza at home but I want Chipotle! Well...too bad. Hold on to that feeling and make burritos next week. I think MMM helps with that.
Boyfriend: Now, I don't usually make calls on people's relationships...but I hope you realize how significantly you're supporting your bf. I'm assuming you've been together a while and are planning a future, because otherwise investing in him (25% of your rent, 40% of food, 50% of utilities) doesn't make sense.
Re: rock climbing: It's fantastic exercise and not worth giving up! Also a great way to meet great people! Don't stop! Unlike a 'traditional' gym membership this isn't something you can recreate at home for a few months of the fees, or do with a video. And it's an excellent form of mental and physical exercise and if you have a passion for it and do it regularly, your membership is worth every penny. [My family has climbed since I was about 9 or 10 and I wish I was better at it/loved it more than I do... If you do move to the Bay Area you should look up Planite Granite, it's a good rock gym and I think they offer yoga classes with a membership, too!]
QuoteOn the subject of your grocery bill, I don't think $339/mo is face punch worthy. You're well below the US median monthly grocery bill for a family of 2.
Really?! I shop at Whole Foods! And get organic/pastured beef and eggs! And I waste so much of it too. Hence why I know I can do way better in the cost department. My goal for next month is $50/week which I can do if I can resist the allure of $10 trail mixes and $8 eggs and out of season fruit every week.
The slow cooker was made for you. Get one with a removable crock that fits in your fridge. Before you go to bed fill it with whatever you are going to make. The next morning plunk it in the heating mantle and turn it on. Then when you walk in the door at night you will be greeted by the luscious fragrance of beef stew or chili or chicken breasts in sauce or whatever you made.Id recommend a rice cooker, too. Doesn't need much supervision and great to ask for as a Xmas gift. I cook a couple cups of rice, lentils, or quinoa every Sunday night and use that to supplement meals during the week.
The slow cooker was made for you. Get one with a removable crock that fits in your fridge. Before you go to bed fill it with whatever you are going to make. The next morning plunk it in the heating mantle and turn it on. Then when you walk in the door at night you will be greeted by the luscious fragrance of beef stew or chili or chicken breasts in sauce or whatever you made.
I expected as much, though I have a long history behind me of pressure to buy a house ("the price will always go up", right? ...Right?)
I... will not go into too many details, but for a wide variety of reasons, I get along well with them... from a distance. However holidays are a major source of stress (see >$400 spent on metal health this month in anticipation of Thanksgiving). This is only the second Thanksgiving in the last 7 years where I have not purposefully made plans to avoid going "home". It's a shame because I like my brother and sister...but that's an entirely different post for entirely different blog. And I'd actually like to get entirely financially free from them, if only to stop the constant war over who I should have "loyalty" to. (Can you tell they are divorced?) I know many people have wonderful and healthy relationships with their parents, but I am not necessarily one of them. Once they reach a point where I can (mentally) afford to be around them for more than 10 days at a time, my priorities will probably change.I kind of understand this. My parents separated when I was 16, divorced at 18. I had many a year of splitting up my visits home. There was so much strife that one of my sisters did not attend my wedding. It wasn't until my brother got married 6 years after I did that the whole family mostly "made up". But still my mom would give me grief when I tried to schedule a visit with my sisters (my dad's children from his previous marriage). She got the last laugh, I guess, she died the day I was supposed to be having the holiday meal with them, so I missed it.