Author Topic: My new budget. Advice appreciated.  (Read 3827 times)

sc281

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My new budget. Advice appreciated.
« on: January 08, 2014, 09:10:23 AM »
Hello all,

I'm David and I'm looking for some pointers for my budget, as anyone I talk to looks at me with the 1000 yard stare after about 15 seconds. :D

I'm 27, work in a bank in DFW, and looking to not work - in a bank or otherwise by 40. (okay, maybe part-time)

I'd like some input from y'all on my rough draft, specifically any flaws in my math, logic, dreams, etc. 

Current 'stache. (emphasis on the lowercase s)

401k $53,500
Pension $9,722.00
Ira mm $925
Ira Roth mm $925

Income $56,000 (not including any potential bonuses and whatnot which are anywhere from 0 - 35k and are not predictable)

"Fixed" Expenses  (Yearly)

$17,500    max 401k                (Not really "Expenses", but do lower take home pay)
$5,500      max IRA
 
$3566.25  Income Taxes          (Assuming max ira, 401, and standard deduction)
$3,360      Soc Sec Tax
$812         Medicare Taxes
$1789     Benefits                   ( Health, Dental, Vision, Supp Term Life, Employee Term Life, Lterm Disability)

$32,527.25  "Fixed" Total

"Living" Expenses   
(Once I sell my house in the next few months and move to apt 500yds+/- from work)
                         
Rent             $574/m                $6,888/yr      (Water and trash included)     
Electric         $100/m                $1,200/yr
Internet        $50/m                  $600/yr
Gym             $20/m                  $240/yr
Cell              $15/m                  $225/yr         ($10 Republic plan. Thanks MMM!)
Food             $150/m                $1800/yr
Car Ins         $50/m                  $600/yr
Gas              $35/m                   $420/yr
Misc/Ent        $150/m                $1800/yr

"Living" total  $1144/m              $13,728/yr
                 

Income left over after expenses  $9744.75
 

** Facepunch sidebar **

DEBT

401k loan  $189.73 every paycheck        $4553.52/yr       $14787.41 left
A few years back I was stupid as all getout and a naive consumer high on spenditol
Will be paid in full when I sell my house and move to the apt in March-ish.  (should net $15-20k after fees)


No other debt than this. 


Wealth accumulation

$17500/yr 401k
$5500/yr IRA
$9744.25/yr investable assets. (not assuming one-off charges for emergency room or what-not)
$1680 Employer funded "Pension" (3% of pay)
Just a savings account really with a 4.5% interest credit rate. Will only annuitize to about $230/m if I retire at 40.
$2800 Employer match for 401k     (5% of pay)

Total $37224.25/yr 

Not including the 401k match and the "pension" it will be a 58.5% savings rate. With it, it is a 66.4% savings rate.

This would allow me to accumulate $483,915.25 by the time I turn 40. Not even taking into account investment returns OR extra money through annual bonuses!!
 
I think this is doable, and I have a decent "Miscellaneous" expense column of $150 over and above food that should be enough to keep me on budget.  I'M FRIGGIN' STOKED!!!
« Last Edit: January 08, 2014, 10:03:51 AM by sc281 »

Fuzz

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Re: My new budget. Advice appreciated.
« Reply #1 on: January 08, 2014, 11:56:57 AM »
Awesome! You're in terrific shape.

As far as your budget--you might be able to get your car insurance down. I pay $300/yr through geico.


FIreDrill

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Re: My new budget. Advice appreciated.
« Reply #2 on: January 08, 2014, 01:31:06 PM »
You're already doing pretty freaking awesome.  Your livings expenses seem to be pretty low to me so the only thing I could think of is dropping the gym membership.  I wish my expenses were as low as your, lol.  You are off to a great start, can't wait to see how you progress!

savedough

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Re: My new budget. Advice appreciated.
« Reply #3 on: January 08, 2014, 03:34:56 PM »
Term life through your employer is often more expensive than getting it on the free market.   Have you priced it out?   Unless you are uninsurable I would ditch the employer plan and have my own.   It is a more than $25/month difference for us per person.

savedough

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Re: My new budget. Advice appreciated.
« Reply #4 on: January 08, 2014, 03:38:03 PM »
Actually, now that I reread this, you don't mention any dependents.  Why do you even need life insurance?  Ditch it.   Save the money.   Even if you are uninsurable, the expensive group plans will be there later.

sc281

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Re: My new budget. Advice appreciated.
« Reply #5 on: January 08, 2014, 08:16:26 PM »
Awesome! You're in terrific shape.

As far as your budget--you might be able to get your car insurance down. I pay $300/yr through geico.

Will be shopping around in a week or two for this. With my lower mileage I should be able to save 10 maybe 20 a month.... hopefully.


sc281

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Re: My new budget. Advice appreciated.
« Reply #6 on: January 08, 2014, 08:25:40 PM »
Actually, now that I reread this, you don't mention any dependents.  Why do you even need life insurance?  Ditch it.   Save the money.   Even if you are uninsurable, the expensive group plans will be there later.

You're right on dependents. None, and don't want any. Most I would want is a wife, and most days I can barely stand the girlfriend, so that ain't happening anytime soon!

I have to wait for my enrollment period, but yes this will get dropped. I only had it because it seemed cheap (about 300/yr will update with correct figure when I get to work tomorrow) for 900k in coverage, which would go to my little brother if I croak..... but seeing that he is 26 I think he can live with the $75k policy I get for free. :D


sc281

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Re: My new budget. Advice appreciated.
« Reply #7 on: January 08, 2014, 08:33:36 PM »
You're already doing pretty freaking awesome.  Your livings expenses seem to be pretty low to me so the only thing I could think of is dropping the gym membership.  I wish my expenses were as low as your, lol.  You are off to a great start, can't wait to see how you progress!

My expenses at the moment are higher with the house. I honestly shouldn't have left my first apt 4 years ago. $452/month and only because they transposed to 5 and 4. Was supposed to be 542!  What a fool I was to leave..

The gym may or may not go, depending on what the apt gym looks like. I hope I can cut it too.

nikki

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Re: My new budget. Advice appreciated.
« Reply #8 on: January 09, 2014, 03:21:21 AM »
Hi! I grew up in Grand Prairie and lived and worked in Arlington before moving to South Korea. Hurray DFWers!

I also can't really comment on cutting much out of your proposed budget, but I am fully aware that it's a proposed budget. I look forward to updates :-)

OlDogface

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Re: My new budget. Advice appreciated.
« Reply #9 on: February 15, 2014, 08:23:40 AM »
I think you might save $240 per year by foregoing the gym membership. Look on CL for a while. You can probably buy a nice, used, steel weight set for about $300 which will last for decades. Run outside. Bike/walk/run to work. MMM shows the way to fluff your 'stash here....

http://www.mrmoneymustache.com/2011/05/17/get-rich-with-olympic-barbells/

bacchi

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Re: My new budget. Advice appreciated.
« Reply #10 on: February 15, 2014, 12:49:28 PM »
Will be shopping around in a week or two for this. With my lower mileage I should be able to save 10 maybe 20 a month.... hopefully.

Yeah, after your move, you can tell them, "I no longer drive to work. My car is only for pleasure and personal errands."

Don't do it early or they won't cover your commute.