What do you think of my budget

[jeebuss31]

Since some people are listing there budgets, I'd thought I seek advice/feedbacks too. Again, my soon to be wife and I are 28 with this budget:

Currently, combine take home $7100 (12% and 9% deductions into 401k. also: tax,medical and more taxes!)
I know i said 6875 in my other thread, but did not factor some things).

Mortgage -2300
student loans -600.00
car payments -343.00
Cable/internet -100.00
Gas,electric, water -500.00
Groceries/going out to eat -500.00
Car fuel/ins (fiancee is cover by company) -280.00
Entertainment(varies) -150.00
Nest Egg/Emergency Funds -800.00
Roth IRA -300.00
Mad Money(personal accounts) -400(200 per person)
Credit card expenses allowed(paid off every mo) -600.00

This totals 6873, with remaining of $227.00 of extra spending or moving it into our Nest Egg. I know things will vary every month, but I wanted to know if I have a good grasp of our budget. I know we should be a bit more aggressive in the savings and maybe reduce the spending of credit card expenses. Should we save more? Am I missing anything? We'll have 3 saving accounts: 401k,roth,Nest egg/emergency and 2 accounts with: combine account spending and personal account(cant say what to buy)

Thanks guys!

[Snave]

What is on the cc that is paid off monthly? Why not put that in to some category? Is it entertainment, food, clothes?

[MomofFour]

Originally Posted by Snave

What is on the cc that is paid off monthly? Why not put that in to some category? Is it entertainment, food, clothes?

I agree that the cc expenses should be included in one of your other categories.

I think that you could certainly save more if you want to! For example, $500 a month for groceries/ dining out is quite a bit for two people, we have six in our family and we don't spend that much!

However, you are doing well saving the amount that you do at your age!

[searching4]

I don't see any listings for:

car, house or life insurance
car repairs
gifts
haircuts (maybe you have included those in your mad money?)
phone bill

[jIM_Ohio]

Originally Posted by jeebuss31

Since some people are listing there budgets, I'd thought I seek advice/feedbacks too. Again, my soon to be wife and I are 28 with this budget:

Currently, combine take home $7100 (12% and 9% deductions into 401k. also: tax,medical and more taxes!)
I know i said 6875 in my other thread, but did not factor some things).

Mortgage -2300
student loans -600.00
car payments -343.00
Cable/internet -100.00
Gas,electric, water -500.00
Groceries/going out to eat -500.00
Car fuel/gas (fiancee is cover by company) -280.00
Entertainment(varies) -150.00
Nest Egg/Emergency Funds -800.00
Roth IRA -300.00
Mad Money(personal accounts) -400(200 per person)
Credit card expenses allowed(paid off every mo) -600.00

This totals 6873, with remaining of $227.00 of extra spending or moving it into our Nest Egg. I know things will vary every month, but I wanted to know if I have a good grasp of our budget. I know we should be a bit more aggressive in the savings and maybe reduce the spending of credit card expenses. Should we save more? Am I missing anything? We'll have 3 saving accounts: 401k,roth,Nest egg/emergency and 2 accounts with: combine account spending and personal account(cant say what to buy)

Thanks guys!

I would quantify the goals of this money here

Nest Egg/Emergency Funds -800.00
Roth IRA -300.00


How large is the EF relative to the $5700 of monthly expenses?

[LuxLiving]

life insurance, lawn care, house repairs & upkeep, insurance co-pays, prescriptions, dental?

[jeebuss31]

Originally Posted by Snave

What is on the cc that is paid off monthly? Why not put that in to some category? Is it entertainment, food, clothes?

That could be anything: clothing, electronics, footwear, gym membership, gifts, household stuff, phone bills. This number will fluctuate month to month. Sometimes it will be under and other times could be over 400.00.

[jeebuss31]

Originally Posted by LuxLiving

life insurance, lawn care, house repairs & upkeep, insurance co-pays, prescriptions, dental?

Through our jobs we're covered by insurance co-pays, prescriptions, dental, and other various health insurance. My fiancee is has life insurance, but I don't think I do, I'll have to check.

[jeebuss31]

Originally Posted by jIM_Ohio

I would quantify the goals of this money here

Nest Egg/Emergency Funds -800.00
Roth IRA -300.00


How large is the EF relative to the $5700 of monthly expenses?

Were starting nest egg/ roth ira savings next year when we move into the house.(currently saving for a 30% downpayment) I tried to be accurate with our current budget and including a projected mortgage amount and desire savings.

I'm hoping to have atleast $5,000 combined in emergency funds when we move into our home and start putting away additional $800.00 for EF and $300.00 for Roth. The car payment will off next year and student loans in 6 years.

I don't have a budget for 1 child yet, but that won't happen until another 3-4 years, in which our income should increase and we can afford to be ready for a child.

[disneysteve]

I'm not sure exactly what type of feedback you are looking for, so here are my thoughts looking at your numbers. $100 for cable and internet is too high. I'd consider cutting back the cable package. We pay $11.30/month for basic and, I think, $29.95 for internet, so about $45/month total. $500/month for food for 2 people is a lot. You could definitely cut that back if you are looking for places to trim the spending.

I also agree that you need to break down those credit card bills. Some of the things you listed are recurring fixed expenses like the phone bill and the gym fee. Others are variable and overlap the "mad" money like clothing, electronics and "household stuff". So I think your budget could be a bit more specific which would help you manage the money and spending even better.

I don't know about your home, but $500 for gas/electric/water sounds awfully high, too. We pay $205/month for gas/electric and about $40 for water, so about half of what you are spending.

Overall, I think you're doing great. You have no CC debt. You are funding 401k, Roth and savings. And you have a budget and know where your money goes each month. Keep up the good work.

[LuxLiving]

If you aren't living in a house now you are probably underestimating move-in start up costs.

[jIM_Ohio]

Originally Posted by jeebuss31

Were starting nest egg/ roth ira savings next year when we move into the house.(currently saving for a 30% downpayment) I tried to be accurate with our current budget and including a projected mortgage amount and desire savings.

I'm hoping to have atleast $5,000 combined in emergency funds when we move into our home and start putting away additional $800.00 for EF and $300.00 for Roth. The car payment will off next year and student loans in 6 years.

I don't have a budget for 1 child yet, but that won't happen until another 3-4 years, in which our income should increase and we can afford to be ready for a child.

5k in emergency fund with $5700 of expenses each month is bass ackwards.

I would look to get EF up to 18k total (at $800/month you are looking at 23 months). I would then add to this for house down payment.

I agree with 401k and Roths you are doing well, no CC debt too so even better. Some costs look to be on high side, but it is OK to live life with a DVR, many cable channels, and high speed internet, IMO.

[jeebuss31]

Originally Posted by LuxLiving

If you aren't living in a house now you are probably underestimating move-in start up costs.

We should be prepared, but I agree with you that start up is costly. If everything falls in place, we should move in January 2009. In which, the lawn mower and garden tools shouldnt be essentials until spring.

We're both pretty excited and have blessed families giving us the "hand me downs". We just want to be prepared for our monthly budget when we live in a new house and 3-4 years later also have kids. Also not forget travel 2 times a year. I'd just want to make sure there's no RED flag in my budgeting.

Now, what is consider tight budget? Is that when you can afford to pay bills, but can't put money in EF,mad money and Roth??




Jim-
I agree with you that 5k won't be enough moving into a home. We're hoping things will work out itself and by the end of the year or two (without touching EF) save $20,000 and also have sufficent funds in our Personal and combine account everything would be ok.

[disneysteve]

Originally Posted by jIM_Ohio

Some costs look to be on high side, but it is OK to live life with a DVR, many cable channels, and high speed internet, IMO.

True, but only if you can afford it and have all of your necessities taken care of. With almost $1,000/month in student loan and car payments and an inadequate EF, I think you need to live lean until the big picture is better. Luxuries come later.