Budgeting Early Retirement Journey

Season 1, Episode 2 – The Budget (Feb 2018 edition)

OVERVIEW

SAVINGS GOAL:
$600K
OBJECTIVE: (shooting for the stars)
EARLY RETIREMENT: $600k  
DEFAULT: ($300k, landing in the clouds)
10 YEAR SABBATICAL @ $30K/YR
GOAL DATE:
2028 (Labor Day)
Age 44
GROSS SALARY:
$89,440
($43/HR)
NET SALARY:
$67,080
(estimated at 25% TAX RATE)
SPENDING BUDGET:
$2,500/ mon
($30K/YR)
SAVINGS BUDGET:
$3,115/ mon total
(37K/YR)
*Using the Calculator, this is how much I would need to invest monthly for 10 years with an annual interest rate of 6%.

 

ALLOCATIONS

MONTHLY SPENDING
($2,500/mon)
SAVINGS
($37k/yr)
Student Loans
$566
Per Pay Period
Notes
Annually
Housing, Utilities
$1000
(40%)
Experts recommend 30% = $750; would like to bring this number closer to 30% but in my defense this amount was in budget with my pre-early retirement spending
401k
$750/pp
Payroll deduction
$18,000
Groceries ($200/mon)
Entertainment
Incidentals
·         Gas ($50/mon)
·         Phone ($27/mon)
·         Other
·         Household items ($35/wk?)
·         Cable?
$540
Roth IRA
$229/pp
$5500
Tithe
$250
(10%)
Taxable account
$563/pp
(*not yet implemented)
$13,500
Remainder
Unexpected expenses:
·         travel
·         medical/dental
·         car maintenance
·         car insurance ($53/mon)
·         home repairs, if applicable
·         family needs

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