Rate My Budget!

[billybob]

Age: 31
Single, no kids, 1 dog, 1 girlfriend

401K: 27K
Savings: 11K
Non-Mortgage Debt: 0

Income:

Monthly Take Home Salary (After taxes & 15% 401k Cont.): $4090
Rent Income (From Roommate): $650

Total Net Income/Month: $4740

Expenses:

Mortgage: $1440
Extra Principal Payment on Mortgage (currently): $230

Gas & Electric: $150
Water: $35

Cable TV + Internet: $125
iPhone Bill: $100

Motorcycle Insurance: $35
Car: $0 (I don't own one, I ride a bicycle mostly)

Cash (for eating lunch, everyday expenses): $867 (200/week)
Dining out (Dinners): $433 (100/week)
Groceries: $433 (100/week)

Dog care: $55

Gym Membership: $40

Savings: $800

Total Outgoing/Month: $4743

Of course these are all estimates but I tried to be as realistic as possible.

I know you are all probably going to eat me alive about how much I spend eating out and in cash expenses. I realize these are my problem areas, however I am unwilling to sacrifice too much as I really enjoy having the freedom to do this, I am somewhat of a food nut and my tastes run a bit expensive. Same for groceries, I shop at organic stores and farmer's markets. I am willing to spend some extra money in order to eat healthily, I've lost 80 pounds over the last few years and keeping it off and staying healthy is my #1 priority.

But go ahead, take your best shot! I'd love to see how I compare spending-wise to others.

Thanks!

[noppenbd]

It looks like you are saving close to 30% of your income when you factor in the extra payments on the mortgage. You are living well below your means. Of course you can always cut more, but in my opinion you are in great shape. I would not sacrifice the value you place on eating well and having some fun to cut further into your budget. Sure you could eke out another 100 or 200 a month but at what cost? Keep doing what you're doing.

[ActYourWage]

First off your outgoing is greater than your incoming. Is that savings amount for retirement or what? You need to check about the Cable TV + Internet, you should be able to get it alot cheaper than $125. Maybe you should learn to cook at home, that would save some money, but eat out too. Some trimming here and there, you could have a sound budget.

[Caoineag]

Looks pretty decent to me. You have a couple of categories that I wouldn't consider worth the money but as long as you consider it worth it, I don't see any issues.

[billybob]

I realize that the outgoing is $3 more than incoming, it's as close as I could come to matching the 2, including savings.

Yeah, I dunno, comcast is expensive. For broadband internet with a good cable package, High-definition and DVR, it adds up quickly!

[LivingAlmostLarge]

looks good to me.

[disneysteve]

As I've posted before, as long as the savings are taken care of first, I don't think it much matters how the remainder gets spent.

You are putting 15% of pre-tax income into your 401k and another 21.7% of after-tax income to savings (which is probably about 16% of gross). So all together, you are saving upwards of 30% of income. Who cares how you spend the rest? Enjoy your meals and your cable and whatever else.

[ScrimpAndSave]

I agree with Disneysteve. I bring home $1156 every two weeks and save $800 of it. I don't worry about where the rest goes.

[aida2003]

I agree with Disneysteve. I bring home $1156 every two weeks and save $800 of it. I don't worry about where the rest goes.

You're sure you didn't make a typo? I wish we could spend only $356 every two weeks.

[aida2003]

OP, what are you saving $800/mo. for? EF? Because after your EF is set, I'd try to dip a toe into investing.

Overall you're young and idependent, so why not enjoy your money while you can. On the other hand, it might be a bit different if your GF and you were to get married. Then you need to start thinking about 'kiddo' budget, cars, etc.

Another advice. In case you're very serious in your relationship with your GF, talk to her about finances in detail (or even run each other's credit reports) so that you don't get shocked like another guy in the "Should I call my wedding off?" thread.

[billybob]

Sure. Actually my GF has a lot of stock from her parents so she's all set.

My EF is currently 11K. I'd like to get it to about 15k. As I stated in another post, I was thinking about dividing my $800 monthly savings between my Emigrant account and an S&P index fund.

I know a lot of people talk about opening a Roth IRA, but with 15% going into my 401k is that really necessary?

[ScrimpAndSave]

Well, I'm in a point in my life where I only pay $400 a month in rent...so i can easily pay for rent and then I have some left over to spend and a lot to save.

I'm living VERY frugally.


Um, and have no life. lol

[MonkeyMama]

I know a lot of people talk about opening a Roth IRA, but with 15% going into my 401k is that really necessary?

YES. Because you are young and it will grow tax free for many decades. Likewise, you don't pay any taxes on current performance.

I'd put more to the 401k for the same reason. Tax savings. BEfore I put much in taxable investments.

[maat55]

As long as you are investing 15%, you can afford to misuse some of the other 85%. If your dream is to be a multi-millionaire, try to better use the 85%.