Tell me how I'm doing

**disneysteve** · 02-27-2014, 04:20 AM

Originally posted by shanepearson View Post

Average 3500 to 5500 take home after taxes a month. Made 68000 in 2013.

$68,000 gross puts your average take home right around $4,000 I'm estimating.

401k 4461. Putting 4% in with match

Do you mean 4% plus the match or 4% including the match?

Budget
Car insurance 109
Car payments 291 - This is wrong. You said payments totaled $391, not $291.
Car Gas 130
Internet 53
Cellphone 130 - This is a lot for 2 people. I'd look for a cheaper plan.
Utilities 200
Student loan 200
Entertainment 50
Groceries 400
Mortgage 1260
Shopping 250 - What does this include? It is a big chunk of your budget.
Total monthly budget 3225. However go over in groceries and utilities most months. - This means your budget is wrong and needs adjusting.

**bigdaddybus** · 02-27-2014, 06:59 AM

The biggest thing that stands out to me is you are making a "token gift" towards your retirement.

Its like when my family have people over and order 5 pizzas, breadsticks, a couple orders of wings, soda, tea, chips & dip, brownies and ice cream, and over in the corner there is a bag of mini carrots. Its a token vegetable, it helps us feel healthy, but really we are eating a bunch of unhealthy crap.

I suggest you move your retirement contributions up higher in your priority list, from a token contribution to a more meaningful one. The sooner (younger) you do this the better.

**autoxer** · 02-27-2014, 07:31 AM

Your total debt load is over 3 times your gross income! It'll be hard to get ahead if you continue carrying that much debt. I would suggest making some bigger/longer goals. After paying off the cars, you should make a plan to pay off the student loans and eliminate PMI from the mortgage payment.

If you want a better snapshot of your financial picture, calculate your net worth somewhat regularly. Assets - Liabilities. The cashflow is important, but ultimately you should plan to increase your net worth.

And your car insurance cost looks high. Have you shopped that around for competitive rates?

**disneysteve** · 02-27-2014, 08:11 AM

Originally posted by autoxer View Post

And your car insurance cost looks high.

You think $109/month is high? I'd kill for a rate that low.

Insurance rates are VERY regional. It totally depends on where you live.

I'm shocked that you still have a loan on a 15-year-old car.

**autoxer** · 02-27-2014, 09:45 AM

Originally posted by disneysteve View Post

You think $109/month is high? I'd kill for a rate that low.

Insurance rates are VERY regional. It totally depends on where you live.

It's definitely regional, but if you don't check it every once in a while, you'll never know you are paying too much. I currently pay <$70 / month, for full coverage on two newer cars. Before I shopped it around I was paying $118 / month. When I called my old insurer to cancel, they were willing to cut the rate down to compete. They remind me of the cable company, not willing to give you the lowest rate unless you threaten to cancel.

**ua_guy** · 02-27-2014, 10:00 AM

My honest opinion is that you're drowning without a second income.

A good rule of thumb is you should have at least 1x salary in your retirement account(s) by the time you're 35. You have a lot to save.

The Sable needs to be paid off. A vehicle that old shouldn't be financed if at all possible. I would guess it's worth no more than about $2500; you could probably drop your insurance coverage on it to liability only once it's paid off.

You make no mention of an emergency fund but I did see that you finished a basement for $15k last year. Where is the rest of your savings?

I also see no health insurance premiums as part of your budget. Is that taken directly out of your paycheck? You are covering 3 dependents; that isn't cheap.

To me it seems like you're running your budget too hard. Expenses are outpacing income some months. That's only going to get worse with a new baby, and since you own a home, that's always going to be an ongoing expense- maintenance, repairs, etc.

**LivingAlmostLarge** · 02-27-2014, 10:22 AM

It's probably worth while for you to work more since your overtime makes way more than your wife working unless she wants to. Use that money to pay down cars, then house, then student loans.

I'd focus on cars then bump up cash for EF to $12k for 3 months expenses, then house to get rid of PMI, then get rid of the student loans. Do you think you can start a Roth IRA to maybe 5% of income and slowly raise it every year?

Is your mortgage a 15 years? $1200 is in line if you make $4k/month.

**Eagle** · 02-27-2014, 11:46 AM

Originally posted by shanepearson View Post

Hello, I'm 27 yo male rn. Have been out of school for about two years now working in cardiac PCu and icu. Trying to get my finances under my belt! I'm married and have 1 daughter who is 2 and 1 son due in 2 weeks! My wife stays home! Here's my numbers let me know what you think!

....

Any input greatly appreciated!

The basics of a budget is you spend on paper every penny you make. But first things first. Congrats on your kiddos! Welcome to the forums! I’m new here too.

Good news is you have no credit card debt. Also your vehicles are at low interest and have low balances. Your home loan is at 3% interest which is fantastic. What is the house worth? You seem to grasp the idea of a budget even though it does need some tweaking.

Bad news is you have the 37k in student loans hanging over you. At $200 I imagine a very small portion of that payment is going to the actual principle (what you owe or 37k) of the loan. A majority of it is going towards interest. The other thing I noticed is that you have only 2,771 in cash. Personally, I’d save up about 3-6 months of expenses (in your case about 10k-15k) to have as your emergency fund in the bank.

So… My advice?

1. Put everything you spend on paper in it’s own category. Have you heard of Mint? Google it. It is a good resource for tracking expenses.

2. Have a goal to increase your emergency fund. Emergencies can and do happen: kid needs to go to the doctor, refrigerator or other appliance needs to be replaced, car needs repairs, etc. Be prepared!

3. Do pay off your cars. That will significantly free up your income.

4. Will you get an income tax return? Perhaps use that to pay off one of the vehicles?

5. What percentage does your employer match your 401k? You pay 4% and they put in 4%?

**shanepearson** · 02-28-2014, 04:59 AM

Originally posted by disneysteve View Post

$68,000 gross puts your average take home right around $4,000 I'm estimating.

Do you mean 4% plus the match or 4% including the match?

Yes I put in 4 and they match! Thanks

**shanepearson** · 02-28-2014, 05:02 AM

Originally posted by bigdaddybus View Post

The biggest thing that stands out to me is you are making a "token gift" towards your retirement.

Its like when my family have people over and order 5 pizzas, breadsticks, a couple orders of wings, soda, tea, chips & dip, brownies and ice cream, and over in the corner there is a bag of mini carrots. Its a token vegetable, it helps us feel healthy, but really we are eating a bunch of unhealthy crap.

I suggest you move your retirement contributions up higher in your priority list, from a token contribution to a more meaningful one. The sooner (younger) you do this the better.

Should I pay off debt first then increase retirement contributions?

**BMEPhDinCO** · 02-28-2014, 09:33 AM

Quick thoughts...

1. Move to a cheaper cell phone plan if you can (ie, if you are off contract/less than 1 year left). I currently use Republic Wireless at $25 a month (around $30 with tax) - that'd slice your bill in half.

2. Pay off that really old car immediately - no way should a loan hang around more than 3 years, even if bought used, it needs to go.

3. I agree with Steve - what's the $250 going for? Household goods?

4. Once you drop the phone plans (if you can) and pay off the car (should both be doable by the end of the year), then up retirement to at LEAST 6% plus the match (ie, 10% total) and then start hitting the other car. Also, bulk up the savings to at least $10k.

At the end of 2017, you should have no car payments, at lest 12% to retirement (hopefully with raises, those go straight into it as well right now), and two young children. Also, hopefully, you should have around $450 a month you are putting into savings - the 2017 year should let you push savings to $15k, at which point, you can start attacking the loans.

By the time you are 35 (ie, 7 years from now), you should be putting 18% into retirement, have less than $15k on loans, pay for cars in cash, and wife should have a second job with kids both in school.

Good luck

**shanepearson** · 02-28-2014, 02:18 PM

Originally posted by bigdaddybus View Post

The biggest thing that stands out to me is you are making a "token gift" towards your retirement.

Its like when my family have people over and order 5 pizzas, breadsticks, a couple orders of wings, soda, tea, chips & dip, brownies and ice cream, and over in the corner there is a bag of mini carrots. Its a token vegetable, it helps us feel healthy, but really we are eating a bunch of unhealthy crap.

I suggest you move your retirement contributions up higher in your priority list, from a token contribution to a more meaningful one. The sooner (younger) you do this the better.

I agree with you! Was putting in 3% last year bumped up to 4 this year with 4% match

**shanepearson** · 05-31-2014, 12:30 PM

Mercury Sable is paid off. We dropped car insurance down to $64 a month. I have three guaranteed extra shifts this week which would give me a an extra $1500 that I put towards the Honda.

**Eagle** · 06-01-2014, 11:38 AM

Originally posted by shanepearson View Post

Mercury Sable is paid off. We dropped car insurance down to $64 a month. I have three guaranteed extra shifts this week which would give me a an extra $1500 that I put towards the Honda.

Good job. Keep up the good work.

How's your budget been the last few months? Are you spending less than you make?

Have you used www.mint.com yet?

Tell me how I'm doing