The Money Mustache Community
General Discussion => Share Your Badassity => Topic started by: johnsmithindustries on December 03, 2014, 03:22:08 PM
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If you're on r/FI you've probably already seen this, but I figured it deserves to be here as well!
I'm married, 27, in the military. 3 years ago I had $45,000 in debt @ 4.99% or worse. It consisted of my wife's car loan, student loans, and a personal loan I got right out of college. We used both incomes to aggressively pay down the debt together, but since then have split finances entirely because we're forced to thousands of miles apart. It blows. But, all the green stuff on the graph at the bottom is from my salary alone.
Here are the numbers:
Taxable pay: $54,564
Nontaxable pay: $9,295
Gross Pay: $63,859
I contribute $17,500 to Traditional TSP (401k), which drops my taxable pay down to $37,064.
I also contribute $5500 to a Roth IRA, for a combined retirement account total of $23,000 toward my net worth.
My total net pay, meaning my actual paycheck after taxes and TSP deductions, is $40,440. I typically try to save $2000 per month + $458.34 (for Roth) for a total of $29,500 per year leaving $10,939 for all living expenses. $24,000+$23,000=$47,000 * a little over 2 years + investment gains + savings variations = $100k+!
This year I'm living in a foreign country, last year I was in the states. Here are the two sets of expense for your enjoyment:
2014 Monthly Expenses: (Living in a foreign country)
Rent/Utilities: $0.00, 1 bed dorm-room ish living, but thankfully a full kitchen
Phone: $0.00 Wifi only iPhone 5.
Internet: $0.00, I bought the awesome dual band router and share it with a few guys for $10/month each – pays the whole bill!
Health insurance: $0.00
Life/Car/Renter’s Insurance: $51.10
Fuel: Diesel Jeep, Average ~$50/month
Groceries: Mint’s 6 month average is $137
Alcohol and Bars: $154/month according to mint. That’s embarrassing!
Nicotine gum $50/month. Ouch. At least it’s not tobacco…
Entertainment: About $300/month on restaurants, movies, traveling around the country, random stuff
Total Monthly expenses: $742.10 * 12 = $8905 annually.
2013 Expenses (living in the states):
If you do not live directly on a military base, you get a housing allowance to offset the rent/mortgage payments. For my area, that allowance was $1401/month, however my normal pay was less due to time in service so my take home pay was $3749/month or $44988 annually. The allowance almost exactly offsets the additional expenses. ($44988-$29500 for Savings and Roth leaves $15488 for living expenses)
Rent/Utilities: $654.00, 1 bedroom apartment
Phone: $32.76 Virgin Mobile iPhone 5.
Internet: $0.00 (Included in Rent)
Health insurance: $0.00
Life/Car/Renter’s Insurance: $49.50
Fuel: Diesel Jeep, Average $134/month
Groceries: Mint’s 6 month average is $146
Alcohol and Bars: $112/month according to mint. Still embarrassing.
Nicotine gum $50/month
Entertainment: $77/month average on restaurants, movies, random stuff
Total: $1255.26 monthly, for a total of $15063.12 annual spending
(http://i.imgur.com/YqTZqzW.png)
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That is awesome! Congrats!
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Looks great seeing in that graph like that..
So tell me are you ab F16 pilot?
Frank
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So tell me are you ab F16 pilot?
Yes I am.
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sweet I built a Vans RV7.. A number of airforce jocks have built them too.
Got my instrument rating and taught aerobatics in that little airplane.. so much fun..:)
More fun when somebody else is paying the gas bill though..:)
Frank
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Congrats! The first 100k is best. Let's you know FI can be done
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John,
Congrats. I was in a similar profile to you, O3 living overseas and trying not to listen to all my friends urging me to get a BMW because "it was such a good deal." I was saving pretty well, but didn't hit my first 100k until my 30th birthday. You are doing great!
If you can save like this right now, all of the bonuses and promotions just make the process go even faster. That way when you get to the pilot bonus time you have a lot more freedom of movement and aren't trapped like everyone else. Keep up the good work.
-Gundy
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that's an awesome graph... a couple of years down the line and the increases from the investment will overtake the amount you put in.. fun stuff!!
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I was in a similar profile to you, O3 living overseas and trying not to listen to all my friends urging me to get a BMW because "it was such a good deal."
I had a buddy come into my room and exclaim that it was "empty" because I didn't fully furnish it on top of what was provided for me, or have a giant TV/game system. I said, "Yeah, but you can't say the same about my portfolio." His answer: "Valid." Then I helped him reallocate and up his TSP contribution.
I think most guys assume they'll go 20 years and get retirement when they first get in and therefore don't start thinking about this stuff. It takes a few years to build up a cynical outlook that forces them to consider an alternate future.
Me? I don't know. If I still love what I'm doing at the end of my commitment I'll probably keep going even after FI - but I'd like the freedom of choice built in there rather than be at the mercy of the government/military to make life decisions for me.
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I was in a similar profile to you, O3 living overseas and trying not to listen to all my friends urging me to get a BMW because "it was such a good deal."
I had a buddy come into my room and exclaim that it was "empty" because I didn't fully furnish it on top of what was provided for me, or have a giant TV/game system. I said, "Yeah, but you can't say the same about my portfolio." His answer: "Valid." Then I helped him reallocate and up his TSP contribution.
I think most guys assume they'll go 20 years and get retirement when they first get in and therefore don't start thinking about this stuff. It takes a few years to build up a cynical outlook that forces them to consider an alternate future.
Me? I don't know. If I still love what I'm doing at the end of my commitment I'll probably keep going even after FI - but I'd like the freedom of choice built in there rather than be at the mercy of the government/military to make life decisions for me.
I'm in your same boat except in the reserves and full-time civil servant. Should get two retirements when it's all over.
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Well done, my friend. Very well done. $100,000 in net worth is a giant milestone that means you are well on your way to financial independence and potentially early retirement, which in your case will be made a little easier if you spend 20 years in the military and enjoy some retirement income.
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I'm a little late to the party. I'm also an O-3 living in San Diego, and my net worth is just now climbing over $50k. I had bought a brand new car last August and I sold it in May after getting the frugal gene. It cost $6000 for one year of ownership, but at least I'm free of the $20k debt.
My TSP now has $20k in it, and I'm on track to max out my TSP contributions next year, as well as saving $10-15K in IRA and after-tax accounts. Otherwise I also have another $20k in investments and a paid off Honda Fit. Oh yeah, all this while paying $1200/mo in child support.
I'm also really glad I'm focused on saving, because my FITREPs haven't been stellar so I can't count on making O-4 which I would need to avoid HYT and get a pension.
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Diggin the graph! Congrats!! Keep growing the 'stache :)
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What a gorgeous graph, I love seeing the steady climb. Congrats!
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So tell me are you ab F16 pilot?
Yes I am.
Ah man! Whats it like to fly that thing? Im Jelly
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Ah man! Whats it like to fly that thing? Im Jelly
It's the most fun you can have with your clothes on...