Topic Title: Reader Case Study - What to Cut?
My job satisfaction has fallen off a cliff over the past few months. It pays but is very stressful and more and more i dread going to my office. I am applying for other jobs, but most require accepting a substantial pay cut. I would like to hit $2MM to feel FI. Getting there asap is the goal. Generally I spend every penny in my base pay, but save most of my RSUs and contribute to 401K about 5% of take home pay. I came across this forum and did a budget for this month of actual expenses. It was eye opening how undisciplined Ive become. I consider my self a saver and frugal. Putting numbers to paper I realized I have a lot of wasted expense. If I take a lower paying job, I have to get back on track with my budget to hit my FIRE goals. MMM folks seem to be rock stars at this. Im a bit new to this cult. Help me out. What would you cut back if you were in my shoes? Hit me, I have my big boy pants on.
Life Situation:
Married. I am 37, wife is 34. 3 very young kids. I am employed at a mega corp, wife is a stay at home mom.
Gross Salary/Wages:
~100K annual base pay + ~70K RSU company stock (currently, very subject to market changes)
Rental Income, Actual Expenses, and Depreciation:
Own 2 paid off investment homes. Rent payments gross are $1,500 and $1,200. Should mention these are in different states and I pay a property management company. Not a perfect setup, I am considering selling 1 to pay off primary residence.
Taxes: Federal, state/local, and FICA.
I believe its ~28%Fed and ~5% state.
Current monthly expenses: Meat of my question.
Overall I took in about $8K and spent just about every penny (excluding 401K contribution of 5%)
Giving (10% of base)
Charity/Church $650.
Kids School Donations $150
Housing (31% of base)
Mortgage $1520 (30 yr fixed, 4.1% interest rate)
Water $100
Gas $40
Electricity $300
Phone $100
Internet $55
Pool $100 (pay a guy to maintain salt water pool)
Repairs/home projects $200
HOA $75
Transportation
Gas and maintenance $265
Food (16% of base)
Groceries $800
Restaurants $300
Various household/ diapers / laundry: $200
Lifestyle (17% of base)
Clothing $100
Child Care $220
Netflix/Amazon $41
GYM $120
Haircuts $30
Hobbies $400 (PM coins, bitcoin gambling, wife spending, weird crap off ebay)
Date night $100
Gifts to friends/family $200
Home Security $25
Kids Activities $100
Personal Care Products $50
Life and Auto Insurance
total $345
Rotating Expenses
Rentals and personal $565
Assets:
3 Houses : ~$685K in Real Estate equity. Just bought primary residence, only including equity in this equation.
Roth IRAs/401K : ~$275 K (all index funds with low ER)
Cash : ~$55K
Gold/Silver : ~$11K
Liabilities: only debt is residence. $270K at 4.1%.
Net worth (assets - liabilities) just gets me in the 2 comma club. Hit this goal about a month ago! Real Estate appreciation covered up my spending sins.