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