Season 1, Episode 2 - The Budget (Feb 2018 edition)

OVERVIEW




































SAVINGS GOAL:

$600K

OBJECTIVE: (shooting for the stars)

EARLY RETIREMENT: $600k  


DEFAULT: ($300k, landing in the clouds)

10 YEAR SABBATICAL @ $30K/YR


GOAL DATE:

2028 (Labor Day)

Age 44

GROSS SALARY:

$89,440

($43/HR)

NET SALARY:

$67,080

(estimated at 25% TAX RATE)

SPENDING BUDGET:

$2,500/ mon

($30K/YR)

SAVINGS BUDGET:

$3,115/ mon total

(37K/YR)

*Using the Calculator, this is how much I would need to invest monthly for 10 years with an annual interest rate of 6%.

 

ALLOCATIONS


































































MONTHLY SPENDING

($2,500/mon)



SAVINGS



($37k/yr)

Student Loans

$566




Per Pay Period

Notes

Annually

Housing, Utilities


$1000

(40%)

Experts recommend 30% = $750; would like to bring this number closer to 30% but in my defense this amount was in budget with my pre-early retirement spending


401k

$750/pp

Payroll deduction

$18,000

Groceries ($200/mon)

Entertainment

Incidentals

·         Gas ($50/mon)

·         Phone ($27/mon)

·         Other

·         Household items ($35/wk?)

·         Cable?



$540



Roth IRA

$229/pp


$5500

Tithe

$250

(10%)


Taxable account

$563/pp

(*not yet implemented)

$13,500

Remainder

Unexpected expenses:

·         travel

·         medical/dental

·         car maintenance

·         car insurance ($53/mon)

·         home repairs, if applicable

·         family needs










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