The Working Budget
Nov 24, 2023 Update
As my tracking and targets and projections have been automated and thus simplified, I'm keeping it simple for this update.
Net Pay (afer 401k max only and FSA): 74k
Target Regular Expenses 42k
Post-tax Savings: 13k
Remainder - for Discretionary Expenses/Lifestyle Upgrade/Vacation 19k
That's all folks!
2023 Summary of Working Budget
Dec 5, 2022 Update
With the announcement of extended student loan forgiveness, I've modified some of the targets below.
I crossed out student loan payments and Tithe from my monthly expenses. The $6K/yr for tithe will just be taken from Work Bonus instead of factored into monthly budget. Thus this brings my targets to these estimates:
Modified Spending Target: $20K/YR (for basic expenses)
Lifestyle Supplement: $20K/YR (no change)
Default Savings Target: $36K/YR (no change, but potential increases to ~$51K/YR)
(Last revision date: 11 Nov 2022)
| 2023 Projections | |
|
| GROSS SALARY: | $132,000 / YR | Base pay |
| PPRE-TAX 401K: (YR) | $22,500 | Goal: Max out 401k pre-tax ($22,500 in 2023) |
| NET SALARY: (YR) | $69,000 | (GROSS- 401K pretax – PAYROLL DEDUCTIONS)
9/24/22 Net Pay Estimator: $2900/pp
(parameters: $22.5k/pre-tax 401k; $132k/gross salary; $90/pp health insurance; $11/legal plan; $150/pp extra tax for capital gains)
BASIC NC EXPENSES: $32K
Remaining: 69K - 32K = 37K |
| | |
| | |
| BASIC NC EXPENSES: (YR) | $35,000 | Basic NC Expenses: $32K / YR + $3k Cushion
($2,920/MON, $1,460/pp)
|
| "LIFESTYLE" SUPPLEMENT: | $20,000 |
OK to focus on a 5 month stay if Seattle; makes the most sense |
| | |
| | |
| REMAINDER: | $14,000 | REMAINDER = NET PAY - NC EXPENSES - LIFESTYLE SUPPLEMENT
Options: (default = save)
- increase 401k aftertax (#easychoice)
- taxable brokerage
- increased from $9k so can flex beyond the basic 6 or 9% if needed for life's circumstances |
| | |
| ESTIMATED POTENTIAL TOTAL SPEND: | $55,000 | BASIC NC EXPENSES + LIFESTYLE SUPPLEMENT |
| ESTIMATED POTENTIAL TOTAL SAVE: | $36,500 | 401k + REMAINDER
(+/- ANY BONUS MONEY)
*9/30/22 note- just randomly entered into compound interest calculator, and $3k a month (a lil more than original FIRE amount), will get me to $1 mil in 5 years; if I can do it relatively easily, make that the default* |
| BASIC MONTHLY EXPENSES | $2,920 | ANNUAL = $32,000/YR BASIC ($2670/MON)
CUSHION = $3K/YR ($250/MON)
(subtotal: $2920/mon = $1460/pp)
SUM of the major expected/ known categories
Accounts for no Extras or big unexpected bills |
| Student Loans | $800 | |
Housing/
Utilities | $842 | Total |
| Mortgage | $521 | Includes mortgage, homeowner's insurance, and property tax |
| Utilities | $135 | |
| Internet | $60 | |
| (recuring monthly subtotal) | $716 | (just for my knowledge/ quick reference of monthly housing costs) |
| 1% maintenance fund (as monthly expense) | $67 | $800/yr, kept in separate account |
| Annual HOA fee (as monthly expense) | $59 | $700/yr |
| | |
Everyday Expenses
| $450 | Goes directly on Cashback Debit |
| Food | 250 | Groceries, Dining Out |
| Every Day Expenses | 200 | Personal supplies, entertainment, annual wellness visit, gas, car stuff, other supplies, family |
| | |
| | |
| Tithe | $500 | $500/mon to Overseas Family; $6K/ YR |
| | |
| Other Known Annual Expenses | $103 | $940/yr |
| Professional Licensing Fee | $4 | $50/yr |
| Free CE | $11 | $130/yr (sale in Sept) |
| Car Insurance | $52 | $625/yr |
| Vehicle Registration | $11 | $135/yr |
| Car Routine Maintenance | $25 | $295/yr...just tallied average from last 5 years after accounting for insurance and registration |
| | |
| MENTAL CUSHION | $225 | ~$3K/YR, amount to round up to $35k/yr annual spend for wiggle room, and mental cushion; provides 1 month running start in case of catastrophe and all Emergency Funds are exhausted |
| |
| SAVINGS | $36,500 | Min $22.5K; Up to ~$40K
9/30/22 Note: ~$36k/yr, enough for 1 mil in 5 years | |
| Per Pay Period
Or Monthly | Notes | Annually |
| 401K (pre-tax) | 50%/pp | 50% Payroll deduction until maxed out (Jan - Mar, including bonus)
Jan - Mar: $5500/mon x 3 = $16,500
Mar bonus: $ 6,000 (approx 27% of base bonus rate) | $22,500 |
| 401K (after-tax) | up to 14%/pp | up to 14%* Payroll deduction from Apr to Dec; flex down as needed, if needing to replenish Safety Levers
*the percent is whatever the dollar amount is, if counting from April and maxed out 401k
| $14,000 |
| | | |
| (Optional Bonus Money) | | at least 1/3 of net bonus, After 401k maxed |
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