Update

[corn18]

I was the guy that rolled on here a while ago and found out I was a hot mess. Have implemented many of the suggestions and standards offered on these fora and have made significant progress and I now have a clearer picture of where I was, where I am, where I want to go and most importantly, how to get there. This clarity has resulted in the focus required to execute a sound plan.

Where I was:
$15,367 Monthly Expenses
$13,347 Monthly Net Income (after taxes and 401k, wasn't saving a dime)
-$2,020 Monthly Excess (well, that's yer problem right there)

Where I am:
$12,287 Monthly Expenses (sold horse, got rid of home phone, quit smoking, reduced spending)
$13,347 Monthly Net Income (same as then)
$1,060 Monthly Excess (that's better, still no savings outside of 401k)

Where I will be in Mar: (bonus pays off 4 cars)
$10,505 Monthly Expenses (all debt gone except mortgage)
$13,846 Monthly Net Income (got a raise)
$3,341 Monthly Excess
-$917 Monthly IRA contribution ($11k / year)
-$1,500 E-Fund, savings ($18,000 / year)
$924 This goes into short term savings to cover irregular expenses

If I stick to the budget, I will be saving 20% of my gross income. If you count the 401k match, it's just shy of 25%. That's from my base salary.

Where I want to go: Maintain this level of savings from my base salary and save all of my bonus each year. That would put me at 36% savings of gross salary each year. That puts me back on schedule to retire @ 65 with the right amount for us.

A few things I learned along the way:

1. My net worth is $180,000 (scary)
2. Cutting $1 of expenses is equivalent to making $1.50 more in income (I pay a lot of taxes)
3. The Millionaire Next Door put things into perspective
4. The family is on board with this plan
5. I am not ashamed of what I make. I am ashamed of how much I spend.

Thanks to all. I'll probably post a hooray post in March after the cars are paid off.

Tom

[disneysteve]

This is excellent. Great progress in a short time with a plan for even more progress. Keep at it. That net worth will start growing a lot.

[agarlits]

I was the guy that rolled on here a while ago and found out I was a hot mess. Have implemented many of the suggestions and standards offered on these fora and have made significant progress and I now have a clearer picture of where I was, where I am, where I want to go and most importantly, how to get there. This clarity has resulted in the focus required to execute a sound plan.

Where I was:
$15,367 Monthly Expenses
$13,347 Monthly Net Income (after taxes and 401k, wasn't saving a dime)
-$2,020 Monthly Excess (well, that's yer problem right there)

Where I am:
$12,287 Monthly Expenses (sold horse, got rid of home phone, quit smoking, reduced spending)
$13,347 Monthly Net Income (same as then)
$1,060 Monthly Excess (that's better, still no savings outside of 401k)

Where I will be in Mar: (bonus pays off 4 cars)
$10,505 Monthly Expenses (all debt gone except mortgage)
$13,846 Monthly Net Income (got a raise)
$3,341 Monthly Excess
-$917 Monthly IRA contribution ($11k / year)
-$1,500 E-Fund, savings ($18,000 / year)
$924 This goes into short term savings to cover irregular expenses

If I stick to the budget, I will be saving 20% of my gross income. If you count the 401k match, it's just shy of 25%. That's from my base salary.

Where I want to go: Maintain this level of savings from my base salary and save all of my bonus each year. That would put me at 36% savings of gross salary each year. That puts me back on schedule to retire @ 65 with the right amount for us.

A few things I learned along the way:

1. My net worth is $180,000 (scary)
2. Cutting $1 of expenses is equivalent to making $1.50 more in income (I pay a lot of taxes)
3. The Millionaire Next Door put things into perspective
4. The family is on board with this plan
5. I am not ashamed of what I make. I am ashamed of how much I spend.

Thanks to all. I'll probably post a hooray post in March after the cars are paid off.

Tom

Congratulations Tom, you have definitely gotten on the right track to being successful financially. Going forward it will important for you to remember the mess that you were in so you can avoid getting into something similar in the future and always, always continue to educate yourself in the world of personal finance.

[corn18]

Congratulations Tom, you have definitely gotten on the right track to being successful financially. Going forward it will important for you to remember the mess that you were in so you can avoid getting into something similar in the future and always, always continue to educate yourself in the world of personal finance.

Yup, that's the battle. My mind still wanders towards thoughts of what I could buy with this year's bonus instead of paying off all the cars.

[disneysteve]

My mind still wanders towards thoughts of what I could buy with this year's bonus instead of paying off all the cars.

This year's bonus is going to buy 4 cars. You don't OWN any right now. Think of it that way.

[Joan.of.the.Arch]

(Congratulations on no longer smoking. That will contribute not only to your health, but to your kids health if you had smoked around them.)

[MonkeyMama]

[corn18]

This year's bonus is going to buy 4 cars. You don't OWN any right now. Think of it that way.

I like that.

[scfr]

Excellent progress so far! I enjoyed your entire post, but the "A Few Things I Learned Along The Way" section showed that there have been some real moments of enlightenment.

[Petunia 100]

That's awesome, Tomhole. Good for you!

[snafu]

Good on you, remarkable awareness, action and progress in a relatively small timeline. I suggest preparing a Net Worth Statement at the end of each month. It helps you stay focussed financially.

[LivingAlmostLarge]

That's an amazing turn around. It never matters what you make but what you keep.

[creditcardfree]

Congratulations!! I'm sure you will notice those cars drive so much better now that you own them outright.

[sblatner]

Where I will be in Mar: (bonus pays off 4 cars)
$10,505 Monthly Expenses (all debt gone except mortgage)
$13,846 Monthly Net Income (got a raise)
$3,341 Monthly Excess
-$917 Monthly IRA contribution ($11k / year)
-$1,500 E-Fund, savings ($18,000 / year)
$924 This goes into short term savings to cover irregular expenses

I love how you wrote your post. Where you were, where you are and where you will be. That must give you a great deal of satisfaction. Good for you to come from a deficit to excess.

[kyoko]

Congratulation and thank you for sharing your updates (and very positive one!).
I believe this forum is not only for exchanging the information and advice, but also celebrating the great achievements together.
Keep up a good work!