Enjoyed reading the journals, so decided to start my own "go log". Attempting to track my goals, get feedback, improve my plans, and participate in the warm-fuzzies of information sharing with total strangers on the internet (anonymously, of course. Old user, new username to maintain a modicum of anonymity when revealing so much financial information).
Background
Another early 30s software engineer INTJ, working in the financial industry in the Boston area. Married to a freelancer, with two recently created children.
Always been reasonably frugal, and kept close track on spending. Compared to others here, I sometimes feel like a big spender. All the better to improve against, I guess. Wife is on board with frugality, but may not go for anything too extreme. Would love for me to be able to spend more time with her and the kids (a very good reason to ERE!).
Monthly expenses (Past 2 years average, rounded)
930 Housing (just mortgage interest, taxes, insurance and maintenance, not including mortgage principal or imputed rent)
350 Utilities (heat, water, electricity, internet, cell phones)
675 Transportation (fuel, maintenance + commuting pass)
300 Health (premiums for employer subsidized insurance, + co-pays)
270 Food + Household Goods
100 Hobbies / personal
75 Student loan
300 Miscellaneous (entertainment, unaccounted for cash, and the deep well of unknowns)
------
3000 total
Monthly income
9500 Combined salary and wife's income (post tax)
Savings 68%
1375 401(k) max'd
833 Roth IRAs max'd
4292 Mortgage principal payments
----
6500 Total
Assets
$292k in retirement assets
~$108k conservatively in home equity (don't currently intend to sell)
~$0 in non-retirement savings (would use HELOC/credit card float/Roth IRA for emergencies)
-----------
~$400k assets
Debts
$125k mortgage (3.75% interest on 5/5 ARM)
$5k student loan (~1% interest, I'd be crazy to pay this off)
-----
$135k debts
ERE Progress
7.3 years estimated post-ERE expenses saved
? years until ERE
Current plan
1. Pay off all debts (~3-4 years) while maxing out tax-advantaged accounts
2. Build up 'stash (? years)
3. ????
4. Profit
Open to any suggestions or questions, especially regarding reducing expenses. Currently collecting my own thoughts on the subject.
Able was I ERE's go log
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George the original one
- Posts: 5406
- Joined: Wed Jul 28, 2010 3:28 am
- Location: Wettest corner of Orygun
> Compared to others here, I sometimes feel like a big spender.
"But you can afford it!"... LOL, even if it is true. 68% savings rate is well done.
Transportation costs are where it appears you have the greatest option for saving more.
I would take a couple months to put cash into a taxable account unless you have a Roth IRA that you could yank back the deposits. Relying on HELOC for emergency proved to not be wise in the last financial crisis as the HELOCs were often canceled when people lost their jobs.
"But you can afford it!"... LOL, even if it is true. 68% savings rate is well done.
Transportation costs are where it appears you have the greatest option for saving more.
I would take a couple months to put cash into a taxable account unless you have a Roth IRA that you could yank back the deposits. Relying on HELOC for emergency proved to not be wise in the last financial crisis as the HELOCs were often canceled when people lost their jobs.
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Able was I ERE
- Posts: 56
- Joined: Wed Jan 04, 2012 1:46 pm
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Able was I ERE
- Posts: 56
- Joined: Wed Jan 04, 2012 1:46 pm
@George the original one
Transportation costs are where it appears you have the greatest option for saving more.
I'll take another look at transportation costs with an eye toward reductions. Right now, it breaks down to:
$165 monthly commuting pass
$120 vacation travel (surprised me that I'd included this in transportation)
$390 total car expenses
Car subtotals:
$80 car insurance, registration, and excise taxes
$145 car maintenance / repairs
$165 car fuel / tolls
A car is required to get to my wife's freelance jobs, so it's not currently an option to get rid of.
I would take a couple months to put cash into a taxable account unless you have a Roth IRA.
About half the retirement accounts are Roths (IRA + 401k), and could be liquidated in the event of an emergency. I'm comfortable with my cash position at the moment.
Transportation costs are where it appears you have the greatest option for saving more.
I'll take another look at transportation costs with an eye toward reductions. Right now, it breaks down to:
$165 monthly commuting pass
$120 vacation travel (surprised me that I'd included this in transportation)
$390 total car expenses
Car subtotals:
$80 car insurance, registration, and excise taxes
$145 car maintenance / repairs
$165 car fuel / tolls
A car is required to get to my wife's freelance jobs, so it's not currently an option to get rid of.
I would take a couple months to put cash into a taxable account unless you have a Roth IRA.
About half the retirement accounts are Roths (IRA + 401k), and could be liquidated in the event of an emergency. I'm comfortable with my cash position at the moment.
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Able was I ERE
- Posts: 56
- Joined: Wed Jan 04, 2012 1:46 pm
Looking at expenses for areas for reduction (one by one, largest first). Here's the first.
$930 Total housing (just mortgage interest, taxes, insurance and maintenance)
$500 mortgage interest (principal pay down under savings)
$300 taxes
$60 insurance
$70 maintenance / improvements
Extravagantly living in a house in the suburbs. Considered(/ing) moving into city to reduce commute time, but housing costs would go up, with only a lesser decrease in transportation costs. Current house is close to public transportation and shopping, so trips are reduced compared to other suburban locations.
Mortgage paid down rapidly, so interest is reduced and will continue to be. Looking into a rate-reduction on mortgage anyway.
$930 Total housing (just mortgage interest, taxes, insurance and maintenance)
$500 mortgage interest (principal pay down under savings)
$300 taxes
$60 insurance
$70 maintenance / improvements
Extravagantly living in a house in the suburbs. Considered(/ing) moving into city to reduce commute time, but housing costs would go up, with only a lesser decrease in transportation costs. Current house is close to public transportation and shopping, so trips are reduced compared to other suburban locations.
Mortgage paid down rapidly, so interest is reduced and will continue to be. Looking into a rate-reduction on mortgage anyway.
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Able was I ERE
- Posts: 56
- Joined: Wed Jan 04, 2012 1:46 pm
$350 Utilities
$130 heat (averaged over year)
$85 cell phones (2 lines, data on one and unlimited text)
$85 electricity
$40 internet
$10 water
Should get a free energy audit to determine if heating or electric bills can be reduced. Borrow Kill-A-Watt.
Should eliminate/reduce cell phone text plan, don't use it enough to justify expense. Should consider removing data plan.
Maybe share internet with neighbors?
$130 heat (averaged over year)
$85 cell phones (2 lines, data on one and unlimited text)
$85 electricity
$40 internet
$10 water
Should get a free energy audit to determine if heating or electric bills can be reduced. Borrow Kill-A-Watt.
Should eliminate/reduce cell phone text plan, don't use it enough to justify expense. Should consider removing data plan.
Maybe share internet with neighbors?
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Able was I ERE
- Posts: 56
- Joined: Wed Jan 04, 2012 1:46 pm
January Variable Expenses (can change wildly from month to month)
0 Housing (see below for fixed/estimated quarterly expenses)
64 Utilities (electricity)
434 Transportation
178 Food
98 Hobbies / personal
410 Miscellaneous (entertainment, gifts, cash)
----
1184 variable expenses
Fixed Expenses (stuff that won't change without concerted effort)
390 Housing (mortgage interest)
260 Health (insurance)
130 Utilities (cell phone, internet)
75 Student loan
-----
855 fixed expenses
Monthly Share of Quarterly/Yearly Expenses
353 Housing (insurance, taxes)
---
353 Estimated monthly share of quarterly expenses
Summary
74% estimated savings rate
7.6 years estimated post-ERE expenses saved (increase mostly due to market increases)
Decided to finally take classes to learn a dance style I've wanted to try for years. My entertainment expenses just went up ~$50 / month, but my smile has increased at least as much.
0 Housing (see below for fixed/estimated quarterly expenses)
64 Utilities (electricity)
434 Transportation
178 Food
98 Hobbies / personal
410 Miscellaneous (entertainment, gifts, cash)
----
1184 variable expenses
Fixed Expenses (stuff that won't change without concerted effort)
390 Housing (mortgage interest)
260 Health (insurance)
130 Utilities (cell phone, internet)
75 Student loan
-----
855 fixed expenses
Monthly Share of Quarterly/Yearly Expenses
353 Housing (insurance, taxes)
---
353 Estimated monthly share of quarterly expenses
Summary
74% estimated savings rate
7.6 years estimated post-ERE expenses saved (increase mostly due to market increases)
Decided to finally take classes to learn a dance style I've wanted to try for years. My entertainment expenses just went up ~$50 / month, but my smile has increased at least as much.
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Able was I ERE
- Posts: 56
- Joined: Wed Jan 04, 2012 1:46 pm
February Expenses
743 Housing (excluding principal pay down)
972 Utilities
898 Transportation
201 Food
260 Health
75 Student loan
118 Misc
--------
3267 total
Notes
A few irregular expenses:
- $500 auto tires (high mileage warranted)
- $737 oil tank fill-up (should last rest of season)
Given the irregular expenses, no action is necessary to rein in expenses.
Summary
65% savings rate (70% YTD)
8 years post-ERE expenses saved (thank you Mr. Market)
743 Housing (excluding principal pay down)
972 Utilities
898 Transportation
201 Food
260 Health
75 Student loan
118 Misc
--------
3267 total
Notes
A few irregular expenses:
- $500 auto tires (high mileage warranted)
- $737 oil tank fill-up (should last rest of season)
Given the irregular expenses, no action is necessary to rein in expenses.
Summary
65% savings rate (70% YTD)
8 years post-ERE expenses saved (thank you Mr. Market)
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Able was I ERE
- Posts: 56
- Joined: Wed Jan 04, 2012 1:46 pm
March Expenses
753 Housing (excluding principal pay down)
201 Utilities
400 Transportation
290 Food
260 Health
75 Student loan
36 Misc
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2015 total
Notes
Unusual month in that no major expenses came up. Expecting next month to have several.
Food was higher than normal due to vacation trip--making fancy dinners for hosts as thank you.
Misc low because it doesn't track cash in wallet, just ATM withdrawals (none this mouth), so actual expenses higher this month.
About to refinance mortgage to 1.99% for 5-year. Interest costs will go down, but required principal payments will go up. (Still lower than extra I have been paying.)
Summary
79% savings rate (73% YTD)
8.2 years post-ERE expenses saved
753 Housing (excluding principal pay down)
201 Utilities
400 Transportation
290 Food
260 Health
75 Student loan
36 Misc
--------
2015 total
Notes
Unusual month in that no major expenses came up. Expecting next month to have several.
Food was higher than normal due to vacation trip--making fancy dinners for hosts as thank you.
Misc low because it doesn't track cash in wallet, just ATM withdrawals (none this mouth), so actual expenses higher this month.
About to refinance mortgage to 1.99% for 5-year. Interest costs will go down, but required principal payments will go up. (Still lower than extra I have been paying.)
Summary
79% savings rate (73% YTD)
8.2 years post-ERE expenses saved
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Able was I ERE
- Posts: 56
- Joined: Wed Jan 04, 2012 1:46 pm
April Expenses
789 Housing (excluding principal pay down)
199 Utilities
336 Transportation
196 Food
295 Health
75 Student loan
611 Hobbies
746 Misc
--------
3247 total
Notes
Refinanced mortgage to 1.99% for 5 years. Decreased interest will be reflected next month.
Unusual expenses: new laptop (2/3 of Misc) and camera (Hobbies). The laptop was mostly necessary due our old one having a hard-disk controller failure along with other signs of aging. The camera was mostly a splurge and nice-to-have, but nice upgrade for my wife's photography passion.
A few "unusual" expenses come up every month or two, but the categories vary. I wish I had a better way to track these expenses, to stop making the expenses look so lumpy--it all averages out in the end. Perhaps I should starting using a trailing 12-month average, or maybe report quarterly instead.
Summary
66% savings rate (71% YTD)
8.2 years post-ERE expenses saved
789 Housing (excluding principal pay down)
199 Utilities
336 Transportation
196 Food
295 Health
75 Student loan
611 Hobbies
746 Misc
--------
3247 total
Notes
Refinanced mortgage to 1.99% for 5 years. Decreased interest will be reflected next month.
Unusual expenses: new laptop (2/3 of Misc) and camera (Hobbies). The laptop was mostly necessary due our old one having a hard-disk controller failure along with other signs of aging. The camera was mostly a splurge and nice-to-have, but nice upgrade for my wife's photography passion.
A few "unusual" expenses come up every month or two, but the categories vary. I wish I had a better way to track these expenses, to stop making the expenses look so lumpy--it all averages out in the end. Perhaps I should starting using a trailing 12-month average, or maybe report quarterly instead.
Summary
66% savings rate (71% YTD)
8.2 years post-ERE expenses saved
-
Able was I ERE
- Posts: 56
- Joined: Wed Jan 04, 2012 1:46 pm
May Expenses
529 Housing (excluding principal pay down)
220 Utilities
459 Transportation
234 Food
976 Health
75 Student loan
0 Hobbies
39 Misc
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2532 total
Notes
Decreased interest from mortgage finance reflected---now paying $224 less per month for housing.
Unusual expenses:
- $715 Hospital bill for birth of youngest (who is now 1 year old)
- $120 Yearly membership in road-side assistance club
Summary
73% savings rate (71% YTD)
7.8 years post-ERE expenses saved (Mr. Market giveth, and he taketh away)
529 Housing (excluding principal pay down)
220 Utilities
459 Transportation
234 Food
976 Health
75 Student loan
0 Hobbies
39 Misc
--------
2532 total
Notes
Decreased interest from mortgage finance reflected---now paying $224 less per month for housing.
Unusual expenses:
- $715 Hospital bill for birth of youngest (who is now 1 year old)
- $120 Yearly membership in road-side assistance club
Summary
73% savings rate (71% YTD)
7.8 years post-ERE expenses saved (Mr. Market giveth, and he taketh away)
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Able was I ERE
- Posts: 56
- Joined: Wed Jan 04, 2012 1:46 pm
June Expenses
533 Housing (excluding principal pay down)
194 Utilities
473 Transportation
742 Food
284 Health
75 Student loan
6 Hobbies
220 Misc
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2525 total
Notes
Much easier to hit the 70%+ savings rate with less mortgage interest, even with the unusual expenses below. However, the next few months, it will be challenging to keep up the savings rate---we will be taking an overseas trip with some associated expenses.
Unusual expenses:
- $400 CSA for 19 weeks of fresh, delicious food
- $100 food/beverages for camping trip/party
- $105 Passport in preparation for upcoming overseas trip
Summary
73% savings rate (72% YTD)
8 years post-ERE expenses saved
533 Housing (excluding principal pay down)
194 Utilities
473 Transportation
742 Food
284 Health
75 Student loan
6 Hobbies
220 Misc
--------
2525 total
Notes
Much easier to hit the 70%+ savings rate with less mortgage interest, even with the unusual expenses below. However, the next few months, it will be challenging to keep up the savings rate---we will be taking an overseas trip with some associated expenses.
Unusual expenses:
- $400 CSA for 19 weeks of fresh, delicious food
- $100 food/beverages for camping trip/party
- $105 Passport in preparation for upcoming overseas trip
Summary
73% savings rate (72% YTD)
8 years post-ERE expenses saved
-
George the original one
- Posts: 5406
- Joined: Wed Jul 28, 2010 3:28 am
- Location: Wettest corner of Orygun
-
Able was I ERE
- Posts: 56
- Joined: Wed Jan 04, 2012 1:46 pm
July Expenses
529 Housing (excluding principal pay down)
206 Utilities
399 Transportation
185 Food
260 Health
75 Student loan
144 Hobbies
2086 Misc
--------
3883 total
Notes
Food expenses back down to sane levels again, and the CSA is providing excessively tasty and delicious food. A very low savings rate this month, but despite unusual expenses, I still have a 70% savings rate for the year. So far... More low-savings months ahead due to our upcoming trip preparations.
Unusual expenses:
- $2000 Flight tickets for overseas trip
- $70 yearly membership in Hubway, a local bike-sharing program (classified in "hobbies" because I don't use it for real transportation needs)
Summary
59% savings rate (70% YTD)
8.2 years post-ERE expenses saved
529 Housing (excluding principal pay down)
206 Utilities
399 Transportation
185 Food
260 Health
75 Student loan
144 Hobbies
2086 Misc
--------
3883 total
Notes
Food expenses back down to sane levels again, and the CSA is providing excessively tasty and delicious food. A very low savings rate this month, but despite unusual expenses, I still have a 70% savings rate for the year. So far... More low-savings months ahead due to our upcoming trip preparations.
Unusual expenses:
- $2000 Flight tickets for overseas trip
- $70 yearly membership in Hubway, a local bike-sharing program (classified in "hobbies" because I don't use it for real transportation needs)
Summary
59% savings rate (70% YTD)
8.2 years post-ERE expenses saved
-
Able was I ERE
- Posts: 56
- Joined: Wed Jan 04, 2012 1:46 pm
August 2012
529 Housing (excluding principal pay down)
260 Utilities
366 Transportation
399 Food
260 Health
75 Student loan
0 Hobbies
1584 Misc
--------
3473 total
Notes
In the middle of a multi-week trip with family in tow. Lodgings are provided for, but food and other expenses are more expensive due to traveling.
Unusual expenses:
- ~$800 in side trips to visit "nearby" family members (Misc)
Summary
63% savings rate (69% YTD)
8.3 years post-ERE expenses saved
529 Housing (excluding principal pay down)
260 Utilities
366 Transportation
399 Food
260 Health
75 Student loan
0 Hobbies
1584 Misc
--------
3473 total
Notes
In the middle of a multi-week trip with family in tow. Lodgings are provided for, but food and other expenses are more expensive due to traveling.
Unusual expenses:
- ~$800 in side trips to visit "nearby" family members (Misc)
Summary
63% savings rate (69% YTD)
8.3 years post-ERE expenses saved
-
Able was I ERE
- Posts: 56
- Joined: Wed Jan 04, 2012 1:46 pm
September 2012
529 Housing (excluding principal pay down)
192 Utilities
333 Transportation
446 Food
260 Health
75 Student loan
0 Hobbies
287 Misc
--------
2132 total
Notes
At end of multi-week trip. Food and other expenses higher due to travel.
Unusual expenses:
- None.
Summary
77% savings rate (70% YTD)
8.7 years post-ERE expenses saved
529 Housing (excluding principal pay down)
192 Utilities
333 Transportation
446 Food
260 Health
75 Student loan
0 Hobbies
287 Misc
--------
2132 total
Notes
At end of multi-week trip. Food and other expenses higher due to travel.
Unusual expenses:
- None.
Summary
77% savings rate (70% YTD)
8.7 years post-ERE expenses saved
-
Able was I ERE
- Posts: 56
- Joined: Wed Jan 04, 2012 1:46 pm
October 2012
808 Housing (excluding principal pay down)
260 Utilities
682 Transportation
225 Food
260 Health
75 Student loan
429 Hobbies
56 Misc
--------
2795 total
Notes
What do you do when friends visit, but your frugal small car is too small to transport everyone? You rent a second small car for the week-end! Much cheaper than keeping an SUV or minivan around all year long, and much more flexible if you want to split up into separate groups temporarily.
Unusual expenses:
- Housing: Replacing broken cooktop (literally broken---the glass covering was shattered)
- Transportation: Car rental, double-counting transit passes this month due to purchase timing
- Hobbies: New camera lens, Spanish class
Summary
70% savings rate (70% YTD)
8.6 years post-ERE expenses saved
808 Housing (excluding principal pay down)
260 Utilities
682 Transportation
225 Food
260 Health
75 Student loan
429 Hobbies
56 Misc
--------
2795 total
Notes
What do you do when friends visit, but your frugal small car is too small to transport everyone? You rent a second small car for the week-end! Much cheaper than keeping an SUV or minivan around all year long, and much more flexible if you want to split up into separate groups temporarily.
Unusual expenses:
- Housing: Replacing broken cooktop (literally broken---the glass covering was shattered)
- Transportation: Car rental, double-counting transit passes this month due to purchase timing
- Hobbies: New camera lens, Spanish class
Summary
70% savings rate (70% YTD)
8.6 years post-ERE expenses saved
-
Able was I ERE
- Posts: 56
- Joined: Wed Jan 04, 2012 1:46 pm
November 2012
529 Housing (excluding principal pay down)
895 Utilities
435 Transportation
635 Food
260 Health
75 Student loan
0 Hobbies
584 Misc
--------
3413 total
Notes
Almost the highest spending month this year.
Unusual expenses:
- Utilities: 200 gallon heating oil purchase
- Food: More CSA deliciousness and Thanksgiving
- Misc: Public radio membership, restaurant out with friends, and a pots/pans set
Summary
64% savings rate (69% YTD)
8.6 years post-ERE expenses saved
529 Housing (excluding principal pay down)
895 Utilities
435 Transportation
635 Food
260 Health
75 Student loan
0 Hobbies
584 Misc
--------
3413 total
Notes
Almost the highest spending month this year.
Unusual expenses:
- Utilities: 200 gallon heating oil purchase
- Food: More CSA deliciousness and Thanksgiving
- Misc: Public radio membership, restaurant out with friends, and a pots/pans set
Summary
64% savings rate (69% YTD)
8.6 years post-ERE expenses saved