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It's very strange to say that we will be paying off our home in 2 weeks. We bought it in July of 2018 for $342,000 and had a mortgage of $274,000. During that time, we also invested around $25,000 per year in our combined Roth IRAs and 403b's. I am 40 and my husband is 42. I'm now trying to eyeball what our new budget will look like and would love any input if it looks like I am missing anything. Here is what I believe our pay/deductions will look like come 1/1/2022 once we up our retirement contributions.
We are both paid 24 times a year and this is what my breakdown looks like per pay:
Add Fed Tax Amount: $50 (I do some online teaching as a independent contractor and this helps to offset my taxes)
403b: $979.16 (We can pay an additional $3,000 since we have been in our school district for over 15 years and the limit for next year is $20,500)
Township Tax: $2.17
Medical PPO: $85.83
Vision: $6.69
FSA: $25
Retirement: 7.5% (Public School Pension. I cannot adjust this amount nor do I have a say in how it is allocated).
Net Take Home: $2,742 (every two weeks)
I also receive a $5,000 bonus each July.
I work as an independent contractor and make around $6,000 teaching online.
This is my husband's breakdown:
403b: $979.16
Township Tax: $2.17
FSA: $25
Union dus: $39.92
Retirement: 7.5% (Same pension as above)
Husband's Net Take Home: $1,381 (every two weeks)
There are other deductions such as social security, state taxes, etc. however they are not clearly listed on our paystubs.
We have absolutely no debt after Oct. 15th
We have some sinking funds and an emergency funds that are combined are valued at about $35,000.
We are eligible for our pensions at 55 and we will receive 80% of the average of our top three years of salary.*
Our investments look like this:
My old 403b: $7,405 - From previous job.
College fund for step daughter (his 10 year old kiddo): $81,571
His Roth IRA: $13,971
My 403b: $44,516
My Roth IRA $70,212
His 403b: 71,753
* We have around $200,000 combined in our pension, however it is a defined benefit plan and we will receive the amount that I listed above.
Our mortgage payments with the extra principal have been approximately $7,600/mo. $800 of that is taxes and insurance, so I need to ensure that we are still putting that aside. I guess it is hard for me to figure out what our budget should look like.
Goal-wise, I think we would like to stay in education for another 8-9 years and then downshift to part time work that is much less stressful. We will need to figure out healthcare.
Expenses look like this:
Monthly
Gym $65
DISH Network $76.37
Netflix $10
Escrow $800 (This covers taxes and insurance)
Cell Phones $50.00
Sewer/Refuse: $200 (January, April, July, October)
Water Bill $150: (November, February, May, August, November)
UGI (Gas) $66.00
Met Ed (Electric) $167.00
(Total: $1,434)
Yearly
$1,700 – Car Insurance
Monthly Automatic Transfers into Sinking funds:
Car Repair Fund: $100
Car Savings Fund: $250
Dog Fund: $100
Home Repair Fund: $200
Pool Fund: $50 (Covers chemicals, repairs, etc. for our above ground pool)
Gifts: $200
Travel: $400
General Savings: $350 - To make purchases like cell phones, furniture, random things.
I did not list variable expenses like food and shopping because I am trying to figure out how much those categories should be. Before I decide on food, entertainment and shopping budgets...can you think of anything I am missing?
I know this was long, so if you made it this far - thank you so much for reading!
***this budget reflects our new budget. When we were aggressively paying down our home, we were not contributing as much toward retirement, so our take home was higher.
We are both paid 24 times a year and this is what my breakdown looks like per pay:
Add Fed Tax Amount: $50 (I do some online teaching as a independent contractor and this helps to offset my taxes)
403b: $979.16 (We can pay an additional $3,000 since we have been in our school district for over 15 years and the limit for next year is $20,500)
Township Tax: $2.17
Medical PPO: $85.83
Vision: $6.69
FSA: $25
Retirement: 7.5% (Public School Pension. I cannot adjust this amount nor do I have a say in how it is allocated).
Net Take Home: $2,742 (every two weeks)
I also receive a $5,000 bonus each July.
I work as an independent contractor and make around $6,000 teaching online.
This is my husband's breakdown:
403b: $979.16
Township Tax: $2.17
FSA: $25
Union dus: $39.92
Retirement: 7.5% (Same pension as above)
Husband's Net Take Home: $1,381 (every two weeks)
There are other deductions such as social security, state taxes, etc. however they are not clearly listed on our paystubs.
We have absolutely no debt after Oct. 15th
We have some sinking funds and an emergency funds that are combined are valued at about $35,000.
We are eligible for our pensions at 55 and we will receive 80% of the average of our top three years of salary.*
Our investments look like this:
My old 403b: $7,405 - From previous job.
College fund for step daughter (his 10 year old kiddo): $81,571
His Roth IRA: $13,971
My 403b: $44,516
My Roth IRA $70,212
His 403b: 71,753
* We have around $200,000 combined in our pension, however it is a defined benefit plan and we will receive the amount that I listed above.
Our mortgage payments with the extra principal have been approximately $7,600/mo. $800 of that is taxes and insurance, so I need to ensure that we are still putting that aside. I guess it is hard for me to figure out what our budget should look like.
Goal-wise, I think we would like to stay in education for another 8-9 years and then downshift to part time work that is much less stressful. We will need to figure out healthcare.
Expenses look like this:
Monthly
Gym $65
DISH Network $76.37
Netflix $10
Escrow $800 (This covers taxes and insurance)
Cell Phones $50.00
Sewer/Refuse: $200 (January, April, July, October)
Water Bill $150: (November, February, May, August, November)
UGI (Gas) $66.00
Met Ed (Electric) $167.00
(Total: $1,434)
Yearly
$1,700 – Car Insurance
Monthly Automatic Transfers into Sinking funds:
Car Repair Fund: $100
Car Savings Fund: $250
Dog Fund: $100
Home Repair Fund: $200
Pool Fund: $50 (Covers chemicals, repairs, etc. for our above ground pool)
Gifts: $200
Travel: $400
General Savings: $350 - To make purchases like cell phones, furniture, random things.
I did not list variable expenses like food and shopping because I am trying to figure out how much those categories should be. Before I decide on food, entertainment and shopping budgets...can you think of anything I am missing?
I know this was long, so if you made it this far - thank you so much for reading!
***this budget reflects our new budget. When we were aggressively paying down our home, we were not contributing as much toward retirement, so our take home was higher.
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