Tag Archives: budget

2018 Budget Planning

It’s time to plan for a baby. And 2018. I’m aiming to put together a realistic budget, and determine how – with baby I can accomplish my goal of $650k networth by the end of the year (*personal networth) en route to my major next goal of $1M by 40, or sooner. I’m bumping that up to 38 because after that I’d like to save for the down payment of a house. This gives me 4 years to hit this goal.

Principal (estimated as of Jan 1)

Retirement: $265k
Investments: $260k
Owed: -$10k

=$515k + 5% annual goal (goal) = $540,750 ($459k to goal over 3 years, or ~$153k growth per year or $12k per month)

This may not be do-able, but it also may be… if I budget smartly, keep my job, kick ass (get close to full bonuses, if that’s possible) and don’t go crazy spending on baby (and we stay in cheaper housing until baby is 3.)

Lots of variables, so here’s what is more concrete:

Start: $515k
End Goal:  $650k

$110k to be made in savings, investment income, bonus, etc.

  • $25,000 in interest (at 5%, could also be negative, of course)
  • ($85,000 remaining to save or $7083 per month)
  • $4000 monthly savings w/ exception of 2 months 401k contrib. ($40k)
  • ($41,000 remaining)
  • Bonus (after tax) = $10k (*half bonus, conservative estimate)
  • $31,000 remaining
  • Potential value of co stock/ $32k
  • 401k contributions: $24k

= end year at ~$675,000

So, if I keep my job, and kick ass, realistically I can increase my networth by ~$130k in one year, or around 30%.

Or, the stock market can go down, I can lose my job (or not get any bonus), or my child born in August could have early medical issues requiring me to leave my job to take care of it — so this is all a hypothetical, but it’s nice to have goals.

Ending the year at $675,000 is actually a great goal, because that makes it so for the following 3 years I only need $108k increases per year to hit the $1M by 38 goal. Anything excess above the $1M will be saved for a down payment. I’d like to own a house by 39, when my child is 5 and entering kindergarten. I can dip into the $1M investments if I have to then, and the downpayment will be split between myself and my husband so if I can save an extra $150k (and he does two) we can buy a house. Yes, I’ll need to keep my job, but with the $1M cushion I’ll feel a lot better about everything (as long as stock market doesn’t totally crash, which could also happen.)

MONTHLY BUDGET 2018

*note items like health, baby, home are split 50% w/ hubby. This is after split costs.

Income: $7500
Home: $1500
Health: $500
Baby: $800 avg (*includes childcare for 3 months)
Travel: $300
Bills: $200
Shop: $200
Ent: $50
==========
$4000 remaining (***not taking ANY unpaid time off, this plan expects I will be returning to work after 4 weeks of maternity leave. Hopefully I can work from home during this time.)

 

November Networth and Budget Recap ($541,989)

chart.ashx

November was a reasonably successful month for networth growth. According to NetworthIQ, my networth is now $541,989. This is a 2.98% (or $15.6k) monthly increase from the end of October.

End of Month Spend Report

Income: $7826
Spend: $3907
Remainder: $3919

Spend Breakdown

  • Rent: $1350
  • Auto: $284
  • Bills: $170
  • Entertainment: $48
  • Food & Dining: $707
  • Health: $114
  • Infertility: $563
  • Shopping: $1821*
  • Travel: $190
  • Other: $10

Went a little (ok a lot) crazy with shopping this month… mostly due to the Sephora Rouge sale. Don’t judge. I’m planning to return a chunk of items I bought that I don’t need, so that will hit December’s spend. Had I not gone psycho on shopping, this month would have actually not been that bad.

Despite spending way too much at Sephora (*this includes all of my hair products for the year, which I acquire for 20% off. And, other things I don’t need.)

My budget goal was $4400 in spend and I actually only spent $3907 so while that’s close, I’m $500 under my target spend. Not bad. I can do better, but not bad.

And all this spend was BEFORE I knew I was pregnant… so I’m definitely going to focus on cutting down the shopping habit going forward. The good thing about living in a 1 bedroom apartment is that it’s hard to go too crazy buying things for the soon-to-be newborn. And, I now have a very real “why to save” goal ahead of me… coming in 8 months! OH MY GOD. My objective is to save as much as possible before baby comes. That, and kick ass at my job so my boss allows me to work remotely and keep earning income when I return from a very brief maternity leave. (AH.)

December Spend Target: $2950 spent / $4876 saved

  • Rent/Home: $1350
  • Auto: $300
  • Bills: $200
  • Entertainment: $100
  • Food & Dining: $700
  • Health: $100
  • Infertility: $0
  • Shopping: $100
  • Travel: $0
  • Other: $100

 

October Networth & Spend Report: $519k

Despite not having a job for four solid months this year (and spending $20k on travel during that time), with the stock market’s latest performance my net worth is still up significantly. I realize what goes up must come down, but for now I’m enjoying seeing a higher net worth than I expected given how the job situation has gone down this year, and my not-so-frugal global travels.

It’s a little upsetting that if I hadn’t taken the trips and if I was able to obtain a job sooner, my net worth would be much higher — but my goal was always to close 2017 with $500k in net worth, and I’m really happy that I likely will accomplish that, barring any crazy stock market crash.

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I do owe my husband a lot of money (we keep our accounts separate) but he’s a good lender with really great rates (no interest, just hugs.) 🙂

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October spending definitely was high, given all the traveling. But I’m hoping for Nov and December expenses will be significantly reduced. I am taking one weekend trip but otherwise it should be a relatively cheap month. Here’s how October played out:

*note – believe it or not, this is my portion of monthly spend only. My husband has a separate budget, including his portion of the rent.

  • TOTAL SPEND: $7640
  • Home – $1400 (rent)
  • Auto & Transport – $621 (car detailing, new battery, gas)
  • Bills & Utilities – $331 (accidentally had international call for $75)
  • Entertainment – $154 (concert, netflix, etc)
  • Food & Dining – $583 (only half of month when not traveling)
  • Health & Fitness – $930 (infertility treatment, glasses)
  • Shopping – $1280 (new clothes for job, prob returning some)
  • Travel – $2234 (last part of honeymoon)
  • Other – $107

Obviously, I can’t spend $7640 each month!

Spend Goals for November:

  • TOTAL SPEND: $4400
  • Home – $1400 (rent)
  • Auto & Transport – $300 (gas)
  • Bills & Utilities – $200
  • Entertainment – $200
  • Food & Dining – $800
  • Health & Fitness – $1000 (infertility treatment costs)
  • Shopping – $200
  • Travel – $200
  • Other – $100
  • (Not included – investments ~$3000)

 

2016 Spending

Although I saved a substantial sum in 2016, I definitely overspent in many areas. It was the year of my wedding so even though my parents contributed a sizable sum to the event, I splurged and spent too much on it outside of their contribution. We did a small “mini moon” which also cost something, but in 2017 we will splurge on a bigger international honeymoon. Here is a quick overview of how my spending went into 2016…

Income (after tax and 401k): $112.4k
Spending: $81.2k
(remaining / savings: $31.2k + $18k  (401k) = $49.2k saved)

Auto & Transport: $5.1k
Bills & Utilities: $1.5k
Education: $2.2k
Entertainment: $1.37k
Fees: $443
Food: $11.7k (yikes)
Gifts: $1.67k
Health: $5.4k (not counting insurance)
Home (rent and home things): $17.3k
Personal Care: $4k
Shopping: $14.8k
Wedding: $9.6k
Travel: $6.2k Continue reading

Budgeting with 50/20/30 Guideline

As I work to be better at budgeting, I searched the Internet for strategies for how much I should be spending on various items each month. I like the 50/20/30 strategy which seems reasonable and maybe even do-able.

Basically, you split your after-tax, after-401k take-home income into 3 buckets:

50% – fixed expenses
20% – financial goals
30% – variable expenses

So my after-tax income (now that I’ve maxed out my 401k for the year) is $9500. That breaks down to:

$4750 fixed
$1900 financial goals
$2850 variable expenses
Continue reading

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August Net Worth and Budget Report

Spending has been getting a bit carried away this summer – and I need to get it back in check as I begin to seriously contemplate a very drastic career change (requiring a major paycut and possibly additional schooling.)

In August, my net worth was relatively flat at $394k (this includes my car worth estimate, so I’m really considering my net worth to be $386k.) My goal for the year is $400k, which leaves 4 months to save $14k. On my current income, if I stop being SO HORRIBLE at giving in to overspending, that should be very do-able. However, I will likely leave my job in October or November, meaning that most of the saving has to happen in September. This month can’t look like last month. I’m embarrassed how much I spent! Continue reading

New Unemployment/Unemployed Budget

Well. Here I am. Unemployed. Since I received no severance and was not eligible for payout of any PTO (side effect of the supposed unlimited vacation perk), I’m left with my final paycheck and waiting for unemployment to (hopefully) kick in.

When you apply for unemployment they ask you a whole host of questions and I’m concerned I won’t qualify, though I should. Even if I do qualify, it’s a whopping $1800 a month (before taxes) and they make you wait a week to start claiming, so the first month is actually more like $1350 for the month. And $1350 is about how much I pay in rent. Thank goodness I’ve been somewhat smart about saving this year (I knew the job was not going to last long given how I performed with the heaping of anxiety and lack of sleep brought on by a very non-supportive work environment and a long commute I should have never signed on for in the first place.)

I thought it would be a good time to check in regarding my networth and budget. My networth goal for this year was $400k but that was a stretch to begin with (a $100k increase from 2014 including savings and interest.) Right now, counting all my assets I’m at about $350k – which isn’t bad considering the way the markets have performed this year to date. I’m sure with some better investments and less stress spending I’d be a little closer to my initial goal, but not by enough that it would really be meaningful. I have to take a moment and applaud myself for reaching $350k networth. Even though it’s not the big $500k, $350k feels sizable enough to merit a moment of self congratulations. For some reason, this amount makes me feel better about my lack of job stability due to my mental illness. While I can’t touch all that money immediately, and after taxes it would be less, if I was desperate there’s enough there to get through my own personal instances of deep depression (yeay bipolar life.) I don’t feel secure enough yet to have kids, or quite frankly, to get married (which is happening this spring anyway), but I feel like this is an accomplishment of some sort I can be secretly proud of… especially given that just 10 years ago I had about $5k to my name and was basically living paycheck to paycheck.

Here’s how the $350k breaks down:

  • $27.5k – cash
  • -$46 – credit debts
  • $153.5k – stocks (taxable)
  • $178.3k – retirement funds
  • $6.5k – 529 / grad school fund
  • $8k – approx car value

Now, my goal for the rest of the year, revised, is to end the year above $350k. This just brings me back to my older goals of saving $50k a year – which I’ve been doing for the last couple of years. I though this year given my income increase I could save a whole lot more, but you know, markets fluctuate so much, and maybe I actually bought enough stock “on sale” this year that I’ll have a really good 2016. Who knows.

The trick at this point is not significantly dipping into my cash to live between my current job and my next job… especially since I don’t know when said next job will start (or what it will be.) The $1350/$1800 a mo in unemployment is barely enough to cover standard recurring expenses, so I’ll have to dip into my savings a bit. I’m hoping that by Dec 1 I have a job so this leaves me with just 1.5 months of unemployment, which shouldn’t hurt too much. With the wedding coming up, and all the expenses for that, I really, really, really need a job – even though I admit it’s nice to have a few weeks to just stop and focus on planning this crazy event since the lack of time to do that was also stressing me out.

But I want to plan for “worst case scenerio” 3 months without a job. I’ll give myself 3 months to find something I really think I can be good at – because the last thing I want to do right now is to jump into a position where my anxiety will get to me again. I’m hoping to find something with a bit more flexible work environment – the amount of work I can get done at home in a quiet space far surpasses what I can do in some horrible open office environment filled with stress-inducing distractions. I’ve made a pact with myself that I’m not going to apply for things I know I’ll ultimately fail at given the work environment. I also am probably going to apply to grad school because I know the field I’m in now rarely meets my minimum requirements for sanity, so despite the great pay, I think I need to take a break from chasing income and now start to actually plan for sustainability. In short, I can’t be crazy mommy who gets fired from her job every year – my future kids don’t need to see that. I want them to see me in my best state – one where I actually like my job more or less. Not the me who I am now. I would never want them to see that person.

So I’m assuming I will need to spend about $2000 a month additional from my savings in order to cover everything from gas to get to job interviews to food to grad school applications to a potential trip home to the east coast to spend some quality time with family when I have the time (dad’s cancer isn’t getting better and despite that he drives me nutso whenever I see him I always think – will this be the last time?) So… say I have $5k of my savings to spend over the next 3 months… give or take. That puts me at roughly $350k at the end of the year – but I’d then be worried I couldn’t find another job. I know that I have some talent and abilities… but I just need to figure out where and how to apply them in a way where someone will pay me money to do so, and I won’t flip out after 3 months or so feeling like I’m so overwhelmed but the piles of things to do and not be able to prioritize those things or even know where to start. Yes, this is the life of a woman who has super anxiety, bipolar II and ADHD. I’m not saying those are excuses for anything – I take full responsibility for losing this job, for falling into the same pattern. But there’s a part of it that is just inherently who I am. I’m different than most people, that’s for sure. I just need to figure out where I fit.

And I’m going to be 32 in a month, which is – such an adult. My body definitely feels like I’m in my 30s — I pinched a nerve a week ago and my back and arm are still in pain. If I don’t sleep a full 8 hours a night I feel it for many days later. And don’t get me started on drinking / hangovers, oy. That’s just to say that I’m not a kid anymore. I’m a full grown adult. Looking around at my apartment I have to stop and wonder if this is what I pictured adulthood to be like. Well, I never actually envisioned myself as an adult. Maybe that’s part of the problem. But when I envisioned adulthood as a general concept, it certainly didn’t look like this — unfinished apartment, used couch that’s falling apart, bike in the corner of the living room because there’s no where else to keep it, a career that doesn’t feel right at all, getting married (ok that’s a start) to a man who also doesn’t have much of anything figured out yet either, to a long life ahead of me that I imagine will poof suddenly transform into one filled with maturity once I have my own kids (I know it doesn’t happen that way, I just like to think there’s some kind of inciting incident to finally growing up.)

Oh well. Today, I just need to focus on not dipping in too deep to my savings this year, and ultimately continuing on to my “round 1” $500k goal. That was supposed to happen next year. It won’t. But maybe I’ll get there before I’m 40.

 

 

 

 

 

 

Saying I Do to the Wedding Industry…

This week I’m set to sign the contract for our wedding venue. It’s a lovely-but-not-perfect venue in a location that is somewhat convenient for guests traveling from all around the country and that will cost, at a minimum, if all we do is show up, about $23,000.

And as I frantically try to figure out how to cut down all the additional spend (which now is about $25k more), I ask myself over and over – WHY ARE YOU DOING THIS ARE YOU FUCKING CRAZY?

Well, yes, yes I am crazy. I have to be to spend so much money on a half of a day.

As soon as that contract is signed, I have to go through with it. Really, though, I already have to go through with something. We have a date, we’ve informed others to unofficially save the date, and we’ve asked our officiant and a few members of the bridal party to prepare for the big day. So something will happen. I just wish I could make that something cost $10,000 vs $50,000.

I wish I could have a rational conversation with my parents about money, but I can’t. They want to spend the money on this wedding, even though they have a $200k in home equity debt, and even though they just bought a $60k condo (second home) with plans to do $50k+ renovations to it, and even though every day the stock market does poorly the worse the decision to take $45,000 out of their savings is…. I can’t have one moment of rational conversation with them. The second I bring up being cost efficient in anyway, my dad throws a fit. He wouldn’t want the wedding to seem cheap or anything.

If my fiance wanted a big wedding then maybe this would make sense. But he’d much prefer something quiet and mellow with good friends. Meanwhile the thought of planning a wedding right now in nine months gives me heaping amounts of heart attacks. All in all, this seems like a horrible no good idea.

Yet I still think I’ll regret NOT having this big wedding. Maybe I wouldn’t. I don’t know. I do feel like I either go all in, or we just seriously elope and that’s that. Maybe we have a little party with local friends and call it a day. We move on with our lives. If we need to, I ask my parents for $45k for a few cycles of IVF so I can have children… or perhaps for a kick start on their college tuition savings. Not a stupid party.

But that isn’t the options. I either get the money for a stupid party, or nothing. And the guilt of accepting this money is eating me up inside. Yes I can pay for some of it, but what I wanted to do is work with my parents to negotiate with vendors, especially the venue, so all the costs could come down a bit. My dad is too stubborn to do that. Too proud. All efforts of negotiating were thwarted by his refusal to play bad cop, to state that he didn’t want to pay so much for X or Y. Ok, so with the venue at $23,000 – we’re just starting so high, it’s hard to keep the entire event under $30k, which is my goal, because I think any more than that is completely batshit.

Of course, I can’t help but want a $6,000 photographer, a $4,000 videographer, $2k-$3k for flowers, and $4k-$5k for my dress, alterations, shoes, under garments, accessories, hair and makeup. And then there’s transportation and invites and this doesn’t even count the honeymoon or the rehearsal dinner et al.

If I could do the wedding in the off season it could be cheaper, but then so many people couldn’t come. I can’t figure out how to save money… how to get to that $30k budget that I’ve set as a goal…

Here is a tight budget based on what I’ve observed in the market, with the exception of my venue which isn’t the cheapest but also isn’t the most expensive.

$23k – venue
$5k – photography
$2k – video
$3k – dress
$2k – flowers
$1k – transport
$1k – invites
$3k – music (DJ)

Well that’s $40k right there. And I don’t feel like that’s a lavish wedding at all. How do I get this down to $35k at most?

Biggest Purchases in My Life

I’m turning 32 in a few months, and I’m looking at my overall networth and if it could be higher right now if I had not made some “big” purchases. Really, though, it would be higher if I didn’t make all of the small purchases!

  • $17,000 – second car, paid for all cash (used from a dealer) — I don’t love this car, I wish I picked another, but it’s fine and safe
  • $16,000 – stock in private company (purchased stock options), worth $0 today (insert frown face here)
  • $10,000 – DUI fine, legal fees, et al. Worst expenditure in my life, for many reasons.
  • $8000 – first car, paid for all cash (used from a craigslist seller) — lasted me about 7 years, was a great car (V6!) and I miss it; probably could have lasted longer but it ended up not starting and getting towed from my parking space, wasn’t worth paying to get it out of the pound. Should have been able to sell it for at least $1000, so that was a waste.
  • $4500 – invisible braces, cosmetic and somewhat health related, so far worth it but I wish it wasn’t so expensive!
  • $4000 – “unlimited” laser hair removal — WORTH IT — though the place changed owners and “unlimited” was more like “limited”

Those are really all of my big purchases in life thus far outside of college and my annual rent ($16,200 a year for my share of a 1br.) Oh, and of course about $300k in actual stock… I guess you can say that’s a purchase.

Looking at spending $40k+ on my wedding in comparison seems kind of nutso, even if my parents are contributing a large chunk of that.

What are the biggest purchases you’ve made in your life?

Wedding Budget Woes and Excitement-Crippling Guilt

My father WANTS to pay for a $45,000 wedding. So many engaged couples planning their nuptials would love to have that generous offer. I do love it, but I also still feel ill when I think about it. $45,000 for ONE FREAKING DAY – AM I OUT OF MY MIND?

Well, yes, I am.

I’ve searched high and low, east and west for the ideal wedding venue. I’ve done tons of research and put together budget sheet after budget sheet to try to cut down on costs while pleasing all who need to be pleased — it can’t be on a Friday night because of religion, can’t be in the winter or spring or fall because people have kids in school, can’t be on a holiday, can’t be at a venue that doesn’t have lots of seats during the cocktail hour, can’t be at a venue that is too far from an airport, can’t be somewhere that only serves beer and wine because god forbid we ask people to come across the country and don’t even deliver an open bar…

At the end of the day, I realized I had two choices (ahem, have two choices) – one, I do a wedding that’s truly for “us” – I pay for it all out of my own pocket, I narrow the guest list down significantly, and heck maybe I do something totally non-traditional and just have a picnic or something in a park. I do it in the winter… on a weeknight… because who cares, the wedding isn’t about other people, it’s about us, getting, you know, married.

OR – this is an event for my family, namely my mother and father. My dad (who is equal parts terminally ill and obsessed with his daughter having a big fancy wedding and getting pregnant two seconds after the wedding ends) would be somewhat upset if I didn’t have a sizable shindig. To be fair to him, we don’t know how much longer he will live, and if he’s saved up money throughout his life then why not give him the party that he’d want, and hopefully also manage to put on an affair that stays true to my fiance and I.

But, come on, $45k on one night? I just… there are people who can’t afford to eat in this world… and I’m spending $45,000 for one stupid party?

The saddest thing of all (after the whole people in the world not being able to afford to eat) is that when I run the numbers, $45k isn’t really going to cover everything. I’ve already given up on a Saturday night wedding (minimums too high at the venues I like) and I’m doing a Sunday night, which is one of those things that all the frugal wedding blogs suggest. And I’ve already had a few people grumble about the Sunday night wedding saying they’ll leave early and not party as much (so, yea, there goes the value of that standard premium open bar.) The venue itself has a minimum of 135 people on a Sunday night, which is the one thing that may keep me from booking it — though at this point I have a hold on a date and I just want to book it and get on with my life! 135 minimum with $170 per person cost, plus some random extras that they don’t include but I consider necessary (on-site rehearsal for instance.)

For those of you who hate math, that’s $23,000-ish just for the minimum venue/catering fee. That’s BEFORE dress, band, photographer, videographer, florist, officiant, gifts, tips, rings, and the therapy I’ll need to survive all of this.

I am ridiculously torn between saying FUCK IT and eloping or saying FUCK IT and just closing my fiscal eyes to how ridiculous the entire situation is. I really wanted to figure out how to do the entire wedding for $30k and I thought Sunday night would help with that, but really there’s no way to do it for that price unless we either rent a hall and bring in catering (and have a smaller guest list) or… well, have a wedding somewhere in the middle of nowhere… and then no one will come, which is maybe for the better.

I really want someone to talk some sense into me and tell me that spending $45k+ on one day is the dumbest thing ever – even if it’s mostly my parent’s money and even if it’s money my parents want to spend. Someone knock some sense into me! I keep looking at all these wedding photos and videos and all I can think is how silly I’ll look in that set up. I feel too old for all that. And that money could be put to much better uses – either for my parents or for my future family.

The 135 minimum is really freaking me out now. I don’t know if I’ll get that many people. I’m inviting something like 150-175, but with people all around the country I bet RSVP rates will be 60% – which, for those of you who don’t like math, and who want to cringe with me, is 105 people. That means we’ll be paying $5100 for 30 people who aren’t even there.

Why are weddings a thing again?