I just discovered MMM a month ago, and I've immediately started to make some changes. For now, here's what you need to know about my finances:
25 year old male, no student loans and no debt besides credit cards I pay off monthly.
Location: Tampa Bay area
Salary: $70k in Software Development (Project Management)
Current Saved:
- Company-sponsored 401k--15k
- Roth IRA--5k
- Individual index fund--7k
Expenses:
- 850/month for rent (ouch, I know)
- 55/month for cable+internet
- 63/month car insurance
- 200/month for gas (30-45 min commute)
- 50/month for cat
- 500/month for groceries (I know, incredibly high and I need to cut down)
There are other expenses in this mix that need to go (stupid stuff like Amazon prime, excessive eating out, etc), but after ~10k after-tax (roth) contribution and 2k company match, I end up with about 10k left. I have only have a sample size of last year and it took awhile to put this together for me (again, 1 month of reading MMM) so I don't have a great handle on my finances yet.
So here's what I've done to change things:
1. Start cutting dumb expenses. Got a library card to stop the dumb $20-40 I spend on Kindle books a month. Got a clippers to stop spending $20 on haircuts monthly. Stopping spending stupid amounts on groceries and starting to mix in ground beef rather than steak, fattier cuts of meat over lean cuts that are more expensive (I eat primal).
2. Incorporate YNAB. I love the software and I now have a view of where my money is going. Never had a budget before.
3. Started to work from home one day a week. My manager will probably bend to 2 days if need be, but I don't want to push it more until I get a bit more seniority and experience.
4. Stop paying for travel. I absolutely love to travel and I know it's expensive, so I've started maximizing credit card reward points to get free flights via miles.
5. Concentrate overall on savings and investing. If it's not clear, I just started this so I know I need to cut some of the fat. Decrease spending, increase investing.
So I guess what I'm asking is: What's next? Some things I'm considering are:1. Move to a cheaper place with a roommate (I currently have a roommate as well). I live in an expensive area full of people my age and I love it, but I could live closer to work if I wanted and it might be $100-200 cheaper per month. I would hate myself socially and I am not warm to this idea. At 30 with a significant other? Maybe.
2. Cut down my grocery bill further. I'd like to get this down to $250/month (remember paleo is a lot of meat, it's more expensive).
3. Get rid of the cat. I really dig having him, but he costs me $600/year for food and vet visits. I am not warm to this idea, but I'll consider it.
4. Find ways to increase income on the side. I could take a soccer reffing job on weekends and I'd probably make $60/weekend for 3 games, plus bonuses. I'm really open to this idea.
What do you guys think? What other opportunities do you see? I would like to ultimately save $25-30k next year without blinking, my goal would be $35k if possible.