Weddings are a big business. I’ve been to weddings of all sizes and costs — some small and in local parks — others large in luxury city banquet halls. Looking back on the weddings, besides respective heat from being in a park outdoors with no shade, the actual cost of the event does not influence my own review of the event. What I personally remember most is the love the partners shared for each other, the kind words the family said, and how much fun was had by all.
So why is my own wedding budget suddenly increasing from $30,000 to $50,000? Even $30,000 sounds absolutely ridiculous. I have two very conflicting POVs in my mind at the moment and it’s a challenge to find a balance that makes sense.
My parents WANT to pay up to $50,000 for a wedding, but that doesn’t make it any less ridiculous in my mind. Regardless of how much they pay (and especially if they pay $50k) then it becomes THEIR wedding and not my wedding. At least they’re fairly flexible on some things, but my mother is starting to bring up all the horrific things her mother did at her wedding and, unfortunately, my mother is not the type to think “this means I should not do them to my own daughter” and instead sees this as an opportunity to do the same (*at least she claims she will not force herself onto our honeymoon, which her own mother did.) Continue reading
Based on my aggressive financial goals documented here ($500k by 1/1/18), and my 105% increase in monthly rent starting this month (le sigh), I need to stop my shopping trips to the mall and get serious about my budget. The time for fun comes when I obtain a larger percentage of my bonus or if the stock markets start to track faster to goal then planned. Right now, it’s time to be relatively frugal in the first-world-I-still-think-I-get-paid-too-much sense.
This chart documents my budget plan for May going forward. I don’t actually think it’s reasonable but in order to hit my goals I have to focus on sticking to plan. If I force myself I know I can, and my bf is on board with figuring out how to save each month and help me achieve my goals as well. We’re going to start cooking together so it will be interesting to see what sharing household costs 50/50 does for my budget.
This budget plan keeps me above water monthly while also enabling $3k to be invested into the stock market and $1.4k to go to – also stocks – in my 401k. It’s a little off balance because I’ve actually already maxed out my 401k this year, so in reality I’ll be putting $4.4kish into the stock market (Vanguard funds mostly, maybe 80% ($3500) Vanguard (split between dividend growth fund and international fund) and 20% not-too-risky individual stocks for the fun of it. I’d like to get to $10k in my Vanguard funds ASAP to get their lower cost ratios (just turned my mid-cap fund into admiral going from .26% expenses to .1%, woohoo.) Continue reading
Science tells us that when we set goals we’re more likely to accomplish them. It has been with the help of starting this blog that I’ve managed to grow my networth from less than $25k to over $250k. Now the stakes are raised.
My next big goal is $500k by 2018.
Fortunately, I’ve found myself in a career that pays reasonably well. I could be making more money, but I’ve also found that, as many of the finance gurus say, it’s not about how much you make but how much you keep. I’ll never claim to be a frugalista, but I’ve managed to control my spending to the point where my savings have grown into a sizeable nestegg for anyone who doesn’t live in such an expensive region of the world. Here, where average starter homes cost $1.2M, it’s slightly more than pocket change, but it’s a start.
Readjusting My Savings Goals for the Mid-Long Term
Previously in Mint I had three goals set up for the short term. I track my retirement accounts under one goal, my taxable investments and liquid cash under another, and then my college savings account (529 plan) in another (just because that’s an oddball I set up once in case I ever want to go back to school, but I’m not investing any more in at the moment.) Continue reading
There should be some criminal penalty for allowing me to enter a Nordstrom. The lighting, the quality-made clothing, the hip fashions that should be in my closet — not on the store rack — are too enticing. Luckily, I’m terrified of buying designer items that cost a small fortune, so I only buy items that cost a miniature fortune. Still, they add up, and I feel guilty for buying just about any item.
I wonder how these stores stay in business selling $300 shirts and $400 shoes, where a decent outfit complete with shoes and accessories costs $1000-$2000. While it doesn’t make sense for someone in a lower income bracket to shop at Nordstrom, I have to assume that this type of store and pricepoint would be targeted towards a mid-career professional earning over six figures. Not that I have to actually follow through with their marketing persona, but why can’t I enjoy the fruits of my labor in the form of a Joie blouse or Ted Baker suit? Continue reading
For anyone who has trouble with negotiating salaries and benefits for oneself, it helps to go into negotiations with a full picture of exactly how much the life you want to live (a reasonable life with the cost of living in your area) costs. This doesn’t mean that you’ll be able to make this amount, but it’s important to have a clear idea of what the ideal world would be and you can use this to determine if you need a new job, need a second job to make up for missed income, or if you can possibly negotiate for higher pay at your current position.
While this calculator is not perfect, it’s a start. It takes major budget categories and addresses the total salary required assuming a total of 40% taken out for state and federal taxes. It also takes into consideration a tax-advantaged retirement account (401k), so this helps reduce the total salary requirements (and if a job does not offer a 401k for tax-advantaged savings then it can be considered an addition to the total salary required.)
In order to reach my goal of saving $75,000 per year, assuming $1200 per month rent (50% of the average 1 bedroom in my area) and maxing out my 401k, I need a pre-tax income of around $175k. (*I currently make around $120k with my bonus, so I have a lot of work to do to get to my goal salary.)
What salary would you need to make to live the life you want and still be able to save the amount you would like to save?
I need to stick VERY close to this budget in February. I’m maxing out my 401k as fast as possible in 2014, which means I won’t actually see a portion of my paycheck until the end of February, and I won’t see a full paycheck until March 15.
Auto & Transport: $300 (*includes $200 registration)
Bills & Utilities: $100
Entertainment: $500 (two weekend trips)
Fees & Charges: $100 (*includes $85 credit card fee)
Food & Dining: $400
Health & Fitness: $350 (*3 therapy sessions)
Personal Care: $70
( $3740.34 Remaining cash for February – since I’m maxing out my 401k this month)
March 1 = $650 in bank account for rent; March 15 my paycheck will start appearing in my bank account again.
The first few months of every year I remain gainfully employed, I have one goal and one goal alone: max out my 401k right away. In order to make this possible, I left a chunk of cash liquid in my checking account to help me “survive” the first three months of the year, while putting the maximum amount of my monthly pre-tax income (90%) directly into my 401k.
Thus, assuming 90% of my pre-tax income is $8250, it will take me approximately 2.1 months to max out my 401k. This also helps alleviate the concern that should I lose my job later in the year for any reason I’d be forced to miss out on the opportunity to save $17,500 pre-tax this year. Once I save the $17,500 the next check goes into maxing out $5000 of a Roth IRA (which might not make sense at my current income rate, I need to figure that out, but I always like the idea of continuing to put a portion of my savings into an account where I can tax out all the funds and interest on those funds tax free in retirement.
I spent too much so far this month, but due to some upcoming work travel and a lot of remaining food in the fridge, that should balance out. I planned to not save much this month outside of my 401k investment (50% of income) so I have about $2500 to work with after that. I’ll be going back to a frugal life to make up for the lost cash this month in March and April, in order to save for a May car purchase. Post on that plan coming soon.
TOTAL SPEND MONTH TO DATE: $2204
– lipstick set
– perfume full size
Cooking Supplies: $212
– slow cooker
– food scale
Bills & Utilities: $212
– passport replacement
Fees & Charges: $147
– annual credit card fee
– checking account fee
– drug store stuff
– 5 night roadtrip w s/o – hotel only
– 2 tickets to comedy show
Food & Dining: $376
– groceries ($284)
– restaurants ($92)
– med for sick s/o
The unexpected expense was the $432 in travel, which I decided to splurge on for the experience. We’ll be staying in relatively cheap yet not disgusting hotels on our trip. We’ll be going for a 5 day, 5 night trip and s/o will be providing coverage for all food and entertainment on the trip.
(*note my bonus hit in January so had atypically high salary this month.)
$5166.70 Savings in January?
$872 – Shopping ($465 on electronics including my new iPhone 5; $233 on clothes, $143 on makeup, $38 on other)
$716 – Home
$697.78 – Food
$252 – Car
$162.04 – Health
$149 – Bills
$133.9 – Fees & Charges
$59.49 – Entertainment
$20 – Personal Care
Actual Networth Increase w/ Investment Performance
$205,571 ($5479 / 2.74%)
$44,429 left to hit 2013 goal or avg $4039 per month
In order to save more money this year, I wanted to take some time to analyze where my dollars went last year. After all, I spent $50,115.14 so it would be wise to know where that all went. I don’t feel like I purchased $50k worth of anything, but apparently I did.
$16,773.61 – Shopping
- $9164.78 – Clothing
- $4477.61 – Shopping General
- $1272.98 – Camping Supplies
- $858.67 – makeup
- $811.76 – hobbies
- $187.81 – electronics Continue reading