Q's Journal

Where are you and where are you going?
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Q
Posts: 348
Joined: Thu Jul 22, 2010 8:58 pm

Post by Q »

Alright, I saw this in the "what we want" post(s).
I'll go 1st since I am up late and feel the movement just expanded all of a sudden.
My name is Q (not really, but yeh).
I climbed out of 20k of debt a few years ago when I switched jobs and have slowly but surely built up a "retirement" fund.
As of today, I have about 8k saved in cash in different savings accounts (it's higher but, I took a loan to try and raise my credit even more for an even more amazing score, but they haven't done a good job reporting it yet, so I am stuck until they report it for 6 months and then I can pay it off).
I also have roughly 70k in my 401k, and 11k in investments (one that I sorta manage, the other that is just sitting there for a bit until I save enough cash to "actively" trade, and 2k in prosper).
About 1k in paypal from selling my stuff - I hope to use this money as a staging ground into a side business.
I also have $200 in a poker account that I count as a part-time job (my retirement job basically).
I read Your Money or Your Life after reading The Simple Dollar for awhile. Soon after all that, I found Jacob's blog and then everything came together. Before all that, in 2004, I was in Thailand and had my epiphany moment that I wanted the kind of life I saw all around me - easy going! The land of smiles opened my eyes to the stupidity of spending and working forever. Until the blogs and books happened, I didn't really have a Road Map or plan, just to stop spending like crazy.
My current expenses (monthly):
Rent: $808 (this is my half)

Utils: $50 (again, my half)

Phone: $55

Food: $300 (work + home) - Yikes! (this is my rough guess atm)

Health Insurance: $40

Home bar: $100
Misc:
1 or 2 trips to see my mom: about 2k a year

1 trip to vegas: about 2k

Multiple trips to see family in LA: 2k?
That's about it really. I own the house my mom rents from me (currently trying to refi it) which provides a good tax credit. There is no gain here other than the tax credit.
My gross income is around 80k-100k depending on the hours at work. This does not include anything I earn in investments or anything from poker.
My goals:
- Increase my 401k to as close to 100k by the end of the year. Our 401k lets us manage it pretty liberally, and it is very possible to earn another 15k or 20k
- Decrease the amount of stuff I own
- Take a bartending certification class so I can take bartending jobs (I have a full home bar already - nearly 100 bottles, this is another "retirement" job for me)
- Start a drinking blog (probably not this year, comes from above goal)
- Size up boating options
- Increase old world skills (Farm, Wood, Metal, etc)
Not sure what else.
I also have some silly goals like go thru all my cookbooks thoroughly, but the logistic is I don't have enough people to eat the food on a consistent basis.
Phew!


Concojones
Posts: 117
Joined: Fri Jul 23, 2010 6:57 am

Post by Concojones »

You realize you'll need over half a million to keep that lifestyle after retirement? Good for an ER, an ERE would cut costs further.


Q
Posts: 348
Joined: Thu Jul 22, 2010 8:58 pm

Post by Q »

500k was my original number. But, lately 300k has looked better and with all the cutting, it is slowly going down.
There is plenty of room to cut. Thus boating options... hopefully in two years housing will go down a lot more.
I hope to live with relatives when I get closer to the "number" and let investments and the other "jobs" take over.


Fabian
Posts: 36
Joined: Thu Jul 22, 2010 7:49 am

Post by Fabian »

Q, do you have access to your 401k money before age about 65? Here in Germany we have something similar but I can only access the money at 60 earliest.
The best investment strategy for me is to put as much money as possible into my "kind of 401k account" because of less taxes. But I can't retire early then...
Fabian


jacob
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Post by jacob »

The IRS code has a regulation/rule called 72(t) which allows one to withdraw defined contribution plan money in installments based on one's actuary table.


Fabian
Posts: 36
Joined: Thu Jul 22, 2010 7:49 am

Post by Fabian »

jacob, unfortunately I don't understand your answer.
I want to understand Q's plans. Does he get interest out of his 401k that he can use now to replace income by work? If not he has about 20K at the moment.
Fabian


Robert Muir
Posts: 280
Joined: Thu Jul 22, 2010 10:15 pm

Post by Robert Muir »

Fabian, here's a pretty good explanation of the 72(t) rule:

http://www.moneymanagment.info/72T.htm
Of course, anyone doing this would probably want to withdraw the minimum amount allowed.


Robert Muir
Posts: 280
Joined: Thu Jul 22, 2010 10:15 pm

Post by Robert Muir »

Q, I like the idea of a bartending/drinking blog. Have you seen what Gary Vaynerchuck's done with his wine blog/webTV? http://tv.winelibrary.com/
I loved his "Crush It" book!


Q
Posts: 348
Joined: Thu Jul 22, 2010 8:58 pm

Post by Q »

That is a very cool site. I'll reserve the book @ the library if they have it.
My plan for the 401k is to possibly use the rule where you can take the 401k dough and put it into real estate and suffer no tax consequences. (Like buy a plex which generates more income per se than the 401k).


Q
Posts: 348
Joined: Thu Jul 22, 2010 8:58 pm

Post by Q »

Well - looking at my bank statements for July, I feel like I fell off the bandwagon or something.
Total expenditures (excluding rent)was roughly 2k. Me and SO took a trip to LA and Las Vegas however, and that was pre-saved prior to the trip, which I should take into account.
Total savings was about the same, not including 401(k).
This month my target is cutting down lunches that I eat out with co-workers. So far it has been 2 times in 2 weeks, mainly because I forgot to take at least something to munch on for work. I used to be really good taking my lunch, and getting back on track with that could save anywhere from $25 to $50 (or more) a week.


Robert Muir
Posts: 280
Joined: Thu Jul 22, 2010 10:15 pm

Post by Robert Muir »

Q, we have lots of Gladware containers for supper leftovers so we nearly always have lunches ready to go. You can even freeze soup portions for those times when you've run out of leftovers. Cook up a big pot of veggie or bean soup or beef stew and you'll have leftovers for a week stacked up in the freezer. Don't leave the house without a lunch in hand. When you really feel the need to go out with co-workers, say you brought your lunch, but you'll have a quick drink when them.
Wow, $50 per week?!!


Q
Posts: 348
Joined: Thu Jul 22, 2010 8:58 pm

Post by Q »

My work is at different job sites daily, so every day is "out".
When I first started this job, I took lunch daily. Then, I stopped doing that cold, then found a happy medium between eating out and bringing lunch.
Trying to get back to the brown bag.


Matthew
Posts: 391
Joined: Thu Jul 22, 2010 6:58 pm

Post by Matthew »

Mmmmm...beer
@Q
What is your favorite drink? I like dark beers like Guiness and Boddington's. Brandy for sipping. Gin and tonic for mixed. Cabernet wine.


Q
Posts: 348
Joined: Thu Jul 22, 2010 8:58 pm

Post by Q »

Top ranked drink for me is Tequila Sunrise. When I was in Portugal last year I was introduced to the Caipirinha, which is #2 (sometimes I don't have that many limes).
Beers - Dos XX usually, but I stock Corona too. Guiness is sometimes in and out depending on if it is on sale because Costco doesn't have it (often). Depending on what (where)

I am eating, the beer changes.
I randomly select drinks from my reference books every week to try out.
Wine - depends on the meal, but just to pop open, same thing, Cabernet.


Matthew
Posts: 391
Joined: Thu Jul 22, 2010 6:58 pm

Post by Matthew »

I recommend trying a Chocolate cake if you like shots and if you like chocolate cake. 1/2 absolute vodka, 1/2 frangelico, sugar on a lemon slice. Some people take the lemon with sugar before, some after. Chocolate cake!


Q
Posts: 348
Joined: Thu Jul 22, 2010 8:58 pm

Post by Q »

Oreo Cookie - coffee liquor, white creme de cacao, irish cream (in 1:1:1) plus splash vodka.
Jolly Rancher, Oatmeal Cookie, and Gummi bear also good.
I do love chocolate cake tho.


Robert Muir
Posts: 280
Joined: Thu Jul 22, 2010 10:15 pm

Post by Robert Muir »

Q, I'm totally confused. You say that your target is to cut down on lunches out and then you say something about different work sites. I don't understand what different work sites have to do with anything.
You say you're at a "happy medium" but that you're "trying to get back to the brown bag".
So which is it? Are you at a happy medium or are you trying to save money by not spending $50 per week on lunches?


Q
Posts: 348
Joined: Thu Jul 22, 2010 8:58 pm

Post by Q »

Oh oh - no I meant before I had a happy medium. Right now I have a sad medium. Brown bagging is the (consistent) goal.
Being at different work sites is problematic because others forget their lunch or we are close to a good spot.
As an example - next Monday and Tuesday I will be in Santa Cruz, and there is some extremely good clam chowder nearby, so, one of those days I will probably not brown bag. The other day, PBJ or ham and cheese. The rest of the week is up in the air.
Typical brown bag is a sandwhich, some corn chips, fruit, and some sort of granola bar (that's breakfast actually I guess, with my .25 cent coffee).
EDIT - and so far I am @ $7 for the week for the last two weeks.


Q
Posts: 348
Joined: Thu Jul 22, 2010 8:58 pm

Post by Q »

Time for an update I guess.
This month and last month output was high. with the holidays and an excessive amount of family bdays coming up (including my own), it is going to be a rough.
Also, possibly next month, I will "suffer" a pay cut. My boss quit this week, and it appears I could be promoted - to salary, thus the paycut. The advantage is no more nights, weekends, or on call that restricts activities. I would hope if this happens I take full advantage to my new found "free time".
Anyways, to the numbers:
AUG:
Rent: $808 (this is my half)
Utils: $50 (again, my half)
Phone: forgot to pay
Food/Supplies: $621 (work + home) - Yikes! BUT this is not split with SO, I cover the entire cost...and due to current circumstances, it is for 3 adults (and my "eating out" at work)
Gas (SO's): $80.95
Home bar: $177
Entertainment: $272
Other: $30
SEPT:
Rent: $808 (this is my half)
Utils: $50 (again, my half)
Phone: $102 (AUG+SEPT)
Food/Supplies: $545 (work + home) - Yikes!
Gas (SO's): $27.55
Home bar: $0
Entertainment: $405 (bought a new Xbox 360)
Other: $20
So far we have been experimenting with our food budget, which seems to be working. Making larger and bulk ingredient foods (like stews and what not). I have also been taking lunch almost daily now, bringing that cost down too.
I hope starting next month to separate out food and supplies by just making costco ring them up on different receipts. Then I should have a true cost of eating (for 3 right now :/)
My 401(k) since my last post is @ 81k, savings/investments close to 20k now. Poker account is empty.
We have cut down quite a bit of junk - but only 1 box has been donated, with two more sitting and waiting. DVDs I have dropped quite a bit. Waiting for ebay to offer free listings again and or just donate to the blood center.
To be honest, I feel like sometimes it is two steps forward, one step back. I know it is partially because in the non-monetary categories I feel like I am going nowhere - to fix this feeling I am convincing myself to start a personal journal, and keep track of different items.
After reading other peoples journals, I is clear that I really need to look back at the "own something" goals I've had...


AlexOliver
Posts: 461
Joined: Tue Aug 03, 2010 7:25 pm

Post by AlexOliver »

Why don't you split food with your SO?


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