Hi Everyone! I recently found this site and thought I would post a case study. I am selling a property and will gain about $58,000 after all realtor fees, but before taxes. According to my accountant, I will owe about $5,000 in taxes since it was rented out partially. So $53,000 Net! I am trying to figure out where to best spend my money to get out of debt. Also, I tried to list my expenses, however, it is hard because my dad had recently been very ill and I have been traveling a lot in the past 3 months and also helping out my family money-wise. Think like $5,000 in traveling expenses alone due to last minute flights. So my expenses below are my last month expenses not including those extra travel expenses.
I am 28 years old and live with my fiancé. It is hard to break out expenses since we do not keep track who pays for what, however, it's mostly 50/50. We have not combined bank accounts. Below is just what I see on my bank statements/credit cards. However, I pay for most restaurants and entertainment as I make more money.
My bi-weekly pay stub:
Gross pay = 4750
Medical= 27
Dental = 5
401k = 618
Fed tax = 812
City tax = 119
State tax = 185
Medicare = 68
Social Security = 283
Monthly income total = $5230
My salary will increase yearly by about 3% and I get a bonus of about 3-8%. I also have a pension, however, I am not vested for another year so do not know how much that will be. It is a private company.
Expenses
Mortgage = 1205 – I pay half of our mortgage
Alarm - 50
Utilities (varies on seasonal use) = $150 (inc gas, electric, water, trash)
Car payment = 475
Car insurance = 120
Car fuel = 100
Cell phones = 10 – my employer pays for 90%
Internet/Cable = 87
Groceries = 350
Student loans = 750 average – min payment is 472 however I usually pay more
Crossfit membership = 135, I really enjoy this and do not want to cut it.
Pet supplies = 40
Home supplies = 100
Restaurant/Alcohol = 500 (we have cut back, this month so far it is 250, however, going to happy hour today :/)
Bowling/Movies = 75
Amazon = 100 – this is household items (laundry detergent, sponges, etc.)
Massage = 54
Haircut = 35
Home Improvement = 100 (plants, shelves, etc.)
Total approximate expenses = 4436
Total money left over = 794 ---- I have not been able to save this really though because of family emergencies and helping them out over the past 3 months. This has now ended, however, I did not include those expenses in the above.
Assets and Debts:
Assets:
Emergency Savings = $1,000
401k = $60,000 – plan to max out this year.
Debts:
2015 Subaru Outback loan = $25,700 @ 2.24%. Valued at $24,000 currently and has only 28k miles. Tried to sell it privately and not much luck. So dealer would probably only give $22,000.
Student loans = 46,000 @ 4.0% variable rate. Min payment of $472, but often pay more. Financed with SOFI and could refinance to lower variable rate or slightly higher fixed rate.
Credit card = $8200 @ 0% until Nov 2018
Credit card = $1500 @ 0% until Dec 2017
Credit card = $1600 @ 0% until Dec 2019
Mortgage = $352,000 @ 3.5% for 20 years. Just purchased in Jan 2017. We pay $200 PMI a month, however, could refinance to get out of it. House value around $400,000
I know I will get some face punches so bring it on!