Hi all,
First off, I’ll warn you that I’m long winded and use way too many parentheses when I type. Apologies in advance.
First time poster here, but been lurking for 2-3 months. Discovered MMM about 6 months ago, and while I’m nowhere near hardcore-Mustachian, y’all are amazing and inspiring. Done decently on my own (up to a 25% savings rate now), but have hit a wall and figured it was time to join the community and ask your advice to see what improvements can be made.
A little background before I start sharing specific numbers: I’m 24 years old and just moved to Atlanta for a new job a few months ago. Living in a 450 square foot studio that’s a half mile walk from the grocery store and 4 miles from the office (location and size were heavily inspired by MMM and a handful of minimalism blogs). Bike occasionally, but not nearly enough. Locked into the apartment lease until August, and while I adore living alone, I’m considering finding a roommate and moving at that point to cut back on rent costs.
I’m an extremely lucky winner of the Ovarian Lottery, was blessed with parents who were capable of paying for my college education and allowed me to graduate without a nickel of debt. It’s the greatest gift I’ve ever received in my life, and I’ll never be able to thank them enough for that freedom. Still leech off their health insurance, unfortunately. Company pays for my cell phone bill. Drive a 2006 Civic with about 110k miles on it. I’ve always given away 10% of my gross income, which partially comes from a religious background – I’m aware some of you will disagree with it, and that it’s adding years to my working career, but it keeps me in a good place mentally and allows me to throw some bite behind the causes I support, instead of being a pathetic hashtag activist. Everything else in the budget is semi-negotiable, but giving is set in stone. Most of my current saving goes into the company 401k so that I can use a Roth conversion ladder on it someday. After taxes, investing, and giving, I calculate that I’m living off roughly 45% of my 49k salary. Posting today to see if any of you have ideas that can help make that number go even lower.
The current numbers, based on a biweekly paycheck:
Gross: $1884.62
401k: $414.62
Dental (Pretax): $6.62
Vision (Pretax): $2.93
Net Pay: $1104.31
Giving: $188.47
Vanguard: $58.84
Working Budget: $857.00
Bills/Semi-Fixed - $550
430, Rent/Water/Sewage
30, Electric/Gas
40, Insurance
10, Laundry
25, Internet/Cable (bundled, cheaper than internet alone)
15, YMCA (I know, wasteful. I really enjoy lifting weights, and a squat rack won’t fit in my apartment)
Negotiable - $307
120, Food
50, Entertainment (largely booze, should be cut back)
30, Gas
10, Upgrades (a holdover from the days before minimalism caught my eye, been too lazy to chop)
10, Clothing
7, Haircuts
5, Misc (cleaning supplies, tooth paste, etc)
75, Car
*A note or two: I usually don’t spend the full amount in the Food/Entertainment/Gas categories (travel for work pretty regularly, comes out of the company’s pocket), and roll any leftover into the Vanguard account when the next paycheck arrives. I let Clothing/Haircuts/Misc build up over time until they’re large enough to be useful. Car builds up in a separate account, it covers occasional maintenance and will go toward another (used) car whenever the Civic dies. When 3-paycheck months roll around, most of the $550 Bill section of the 3rd paycheck goes to Vanguard, though I do splurge some of it.
As for estimated assets:
12k, Vanguard Index Funds (Total Market Stock/Bond, and dipping a toe in REIT)
3k, Vanguard IRA (traditional, rolled over from my last job)
2k, Current company 401k
4k, Savings account (roughly 50/50 car savings and slowly growing down payment on a house - prefer to hold in cash rather than risk market volatility)
5k, Emergency Fund (Expenses could be cut to $1250 a month if I lost my job)
No side income, but real estate sounds tempting. I like the idea of buying a house I can afford by myself, then getting roommates to pay down the mortgage faster. Like I said earlier, though, I’m locked into my lease until August. Also, not a huge fan of Atlanta (originally from Chicago area and don’t do well in heat) and don’t plan on staying longer than two or three years, so buying right now isn’t the best call.
So, Mustachians: What can I improve on? What am I overlooking that deserves a solid face punch? Hit me!