Let's all see our monthly budgets...???

[TexasHusker]

Business Income $220,000
Rental $ 85,000
Total Income $305,000 20% effective
After Tax Income $244,000 (Excluded fromROTH contributions)
Yearly Expenses $144,000 12K a month expenses
Retained Earnings $100,000 100K/12= $8333 a month

Additional $5K savings = $60K a year savings a year.

You mentioned (can't remember exact number) around $3400 charity/church $40,800 a year (fully deductible)

R.E. + Savings - Church = $119,200 Net Income (Ballpark)

I have approximately $109,000 in yearly deductions, so my total annual income tax bill is in the region of $37K, putting my effective tax rate in the area of 12%.

[TexasHusker]

Retirement to me = able to spend my passive income however I see fit and besides combating inflation, no longer need to make any more money.

You are still managing a bunch of properties and always trying to find new ones..that is not retirement to me..it's more of a work at home kind of job...

Actually it's just 4 properties and I pay a manager, hence its passive income.

If you are actively involved in a business, it turns to active.

But your point is a valid one. I suppose if I live to be 90 and can't work a phone any more, I'll cash out of everything, donate it all, and live in a nursing home my final year on uncle sam's dime.

[Gailete]

Reading this thread is so interesting as it is so far away in most respects from my own situation. Living on SS disability and two self employment jobs. However we do have a rental property with only two more years to pay on it. When paid in full we should probably have around $500 more or less income from it since currently we are paying $370 total for the two mortgages on it. Of course we always have to have money set aside for the taxes, fire insurance, and the water/sewer bill comes to us the owners and boy have they been jacking that up lately! Our own home runs us almost $600 a month in taxes and we also have the HE but it sure doesn't seem like much. Hubby built the house so the 'mortgage' is in reality a home equity loan with maybe 12 more years to go. Our taxes we pay ourselves since they don't get included in the monthly payment to the bank.

Our problem with budgets is other than my SS check and a small $95 pension due to first the first hubby. The rest is self employment that is very erratic. But because of his health he is changing what he is doing and that will mean far less income, but also far less stress and far less taxes. Some years we have been able to get a tax rebate since I'm disabled, but like this year we can't since we 'made' too much. I'm proud of the fact that I had managed to tuck away everything we need to pay the taxes tomorrow as well as I think we should have enough for property taxes at the end of the month. This is a first that we didn't have to borrow some of the tax money.

I was even thrilled that for the last few years I have been tucking money away into a stock portfolio and a Roth IRA. It was almost at $9000 on Friday. This is huge for us and since it is a Roth IRA and I'm over 55 it can be used if needed although I'm one of those kinds of people that hates to pull money OUT of a savings account. I would rather find some other way to handle it. We also have two IRA's that I haven't contributed to in years. But all told our savings currently is a year's worth of living expenses.

It just amazes me that some of you have as much to live on monthly as we do for the whole year. And I'm with the guy that is happy not to have to be brown nosing. Well I never did that, but I sure hated office politics and having good ideas shot down by people that never even did the work I was doing and trying to make easier and more efficient. Or getting called on the carpet when someone would squeal on me about something they knew nothing about just to cause trouble. Plus NO driving in blizzards to get to work. If we do what we do until the day we die, we will be happy since when you are already home on disability, how do you decide that you are now retired??? Very interesting thread.

[TexasHusker]

And another one.

"I bruise you....

you bruise me....

We both bruise, so easily..."

[dawnwes]

I don't think the purpose of this thread was really to see people's monthly budgets and give feedback.

[Joan.of.the.Arch]

After all these 10+ years on Savingadvice, we still don't keep a budget.

[TexasHusker]

Reading this thread is so interesting as it is so far away in most respects from my own situation. Living on SS disability and two self employment jobs. However we do have a rental property with only two more years to pay on it. When paid in full we should probably have around $500 more or less income from it since currently we are paying $370 total for the two mortgages on it. Of course we always have to have money set aside for the taxes, fire insurance, and the water/sewer bill comes to us the owners and boy have they been jacking that up lately! Our own home runs us almost $600 a month in taxes and we also have the HE but it sure doesn't seem like much. Hubby built the house so the 'mortgage' is in reality a home equity loan with maybe 12 more years to go. Our taxes we pay ourselves since they don't get included in the monthly payment to the bank.

Our problem with budgets is other than my SS check and a small $95 pension due to first the first hubby. The rest is self employment that is very erratic. But because of his health he is changing what he is doing and that will mean far less income, but also far less stress and far less taxes. Some years we have been able to get a tax rebate since I'm disabled, but like this year we can't since we 'made' too much. I'm proud of the fact that I had managed to tuck away everything we need to pay the taxes tomorrow as well as I think we should have enough for property taxes at the end of the month. This is a first that we didn't have to borrow some of the tax money.

I was even thrilled that for the last few years I have been tucking money away into a stock portfolio and a Roth IRA. It was almost at $9000 on Friday. This is huge for us and since it is a Roth IRA and I'm over 55 it can be used if needed although I'm one of those kinds of people that hates to pull money OUT of a savings account. I would rather find some other way to handle it. We also have two IRA's that I haven't contributed to in years. But all told our savings currently is a year's worth of living expenses.

It just amazes me that some of you have as much to live on monthly as we do for the whole year. And I'm with the guy that is happy not to have to be brown nosing. Well I never did that, but I sure hated office politics and having good ideas shot down by people that never even did the work I was doing and trying to make easier and more efficient. Or getting called on the carpet when someone would squeal on me about something they knew nothing about just to cause trouble. Plus NO driving in blizzards to get to work. If we do what we do until the day we die, we will be happy since when you are already home on disability, how do you decide that you are now retired??? Very interesting thread.

First of all it sounds as if you are making do fine with the resources that you have. Happiness isn't derived from a fat bank account. The truly rich are those who are content with what they have.

As for "retired", I agree that it means different things to different people. And retirement funding can come in a lot of different flavors. A few decades ago, Uncle Sam endorsed a particular type of retirement account -the IRA and close cousin 401K - by providing tax deferred status to contributions. Employers often sweetened the deal - as an employee retention tool - by providing some sort of match.

The problem with the gubmit "endorsed" plan is that it is highly restrictive - you are likely limited to investing in mutual funds of various kinds. Mutual fund returns are consistently, and predictably, mediocre at best. And your money isn't really yours until you reach 60 unless you leave your employer and you pay substantial penalties. The opportunity cost in all of that could be substantial. You are putting your retirement into the hands of the dozen or so mutual funds that you find on the HR department's flyer.

Oh by the way, these offerings can change at any time at the employer's pleasure. And the last thing your employer is worried about is your financial well being. Employers change retirement fund companies based upon the CEO's golf foursome, so-and-so's wife works for Merrill Lynch, or the CEO is getting a free cruise from XYZ Financial to switch accounts. Happens ALL the time - I watched it.

But if you are one of the rare birds that doesn't buy in to the gubmit endorsed plan, you are somehow irresponsible and negligent with your finances.

Folks tend to resent outliers who elect to travel a less worn path.

[TexasHusker]

After all these 10+ years on Savingadvice, we still don't keep a budget.

Mine is loose at best.

[corn18]

Folks tend to resent outliers who elect to travel a less worn path.

I don't understand why you would make this statement. There are a lot of well off non-traditionalists on SA. Go visit Bogleheads.org if you want the ultimate cadre of traditional investors. I would love to diversify my portfolio with some non-traditional investments. Just don't have the guts to do it.

How old are you now, BTW? You said you left corporate at age 46. Just curious how old you are now.

Tom

[disneysteve]

After all these 10+ years on Savingadvice, we still don't keep a budget.

Same here. We've always lived below our means and saved an adequate percentage of our income without needing a recipe to follow. I fully realize, however, that not everyone can manage that. A budget can be a critical tool to keep things on track, especially early on when you're starting out and need to figure out how much you can afford to spend on various things.

[TexasHusker]

I don't understand why you would make this statement. There are a lot of well off non-traditionalists on SA. Go visit Bogleheads.org if you want the ultimate cadre of traditional investors. I would love to diversify my portfolio with some non-traditional investments. Just don't have the guts to do it.

How old are you now, BTW? You said you left corporate at age 46. Just curious how old you are now.

Tom

I've got no beef with those going the conventional wisdom route. I've always been somewhat of an anti-establishment type. I have had plenty raise an eyebrow when I reveal "I have no IRA." It's like heresy.

I'm 49 and holding ...

[disneysteve]

While it's true that 401k plans have their drawbacks, I think anyone who has access to one and doesn't participate is nuts, particularly if there is a company match. Where else can you get a guaranteed 50% return on your money? And then have your investment grow tax free for decades? That's a pretty sweet deal. I wish I had one myself but I'm in the roughly 50% of the population that doesn't have access to such a plan.

I do have a Roth because that's not a bad deal either and isn't nearly as restrictive as a 401k. I can invest in almost anything I want to. The money will never be taxed. And I can withdraw my contributions at any time for any reason. I can't touch the earnings until I'm 59.5 but that doesn't bother me a bit since I don't expect to retire until several years after that.

[autoxer]

removed. Appears me and one other were the only ones interested.

I wanna play, just only discovered this thread.

[TexasHusker]

While it's true that 401k plans have their drawbacks, I think anyone who has access to one and doesn't participate is nuts, particularly if there is a company match. Where else can you get a guaranteed 50% return on your money? And then have your investment grow tax free for decades? That's a pretty sweet deal. I wish I had one myself but I'm in the roughly 50% of the population that doesn't have access to such a plan.

I do have a Roth because that's not a bad deal either and isn't nearly as restrictive as a 401k. I can invest in almost anything I want to. The money will never be taxed. And I can withdraw my contributions at any time for any reason. I can't touch the earnings until I'm 59.5 but that doesn't bother me a bit since I don't expect to retire until several years after that.

I really wanted to leave corporate life at 40, so waiting on 401K to pay my retirement was going to put me behind by 20 years. I made it happen at 46. I cashed out the 401K (had around $400K) aid penalties and taxes, and invested what was left in real estate (income).

So far so good.

[Singuy]

I wanna play, just only discovered this thread.

Yeah now I'm the only one who actually stayed on topic...