In 2011 I would have hoped I could write today, "A lot has happened in two years!" but really, not much has.
My 2011 goals with followup:1) Find a full time job I like!
- I found a full time job, but not one I like. Am looking for another. 2) Spend less on groceries
(no, these increased by $25 in 2011, and another $25 in 2012), household stuff
(yes in 2011 & even less in 2012), restaurants
(remained almost the same in 2011 & 2012), clothes
(yes, 138 in 2011, even less in 2012), travel
(less in 2011, more in 2012) and personal care
(yes in 2011 and even less in 2012) 3) Put $550/mo of non-student loan money into savings
- yes, we managed to average this in 2011 & 2012. 4) Follow through on the advice of our financial "makeover" and put our existing retirement investments into better (more risky) funds because of our youth
- this was "somewhat" done, but I had very little confidence in what I was doing or thinking. I still don't, this is an area with huge potential for improvement.
Here's our current financial picture, I tried to pack in as much as possible:
38,568 in student loans from undergrad & grad
Current Debt Payoff:
675/mo concentrating on highest interest loans first (range from 4% - 6.8%)
Aiming for 5 year payoff at most
43,678 in various retirement accounts:
- multiple 403bs
- Roth IRA (I currently contribute about 2% of my income)
- one 401k (4% of hub income goes in for 4% match)
- one state pension (10% of my income goes in) that won't vest for another 9 years but if I left the system I would get all my contributions back
- one random IRA for ~4800 that was "kicked out" of my oldest employer's 403b. I'm considering rolling the IRA into the Roth.
21,875 earning 1.8% at a local bank
Net worth (including current bank and cc balances which are paid off in full every month): $25,679
$6300 monthly net
18.5% gross (8% goes to retirement savings, 10.5% to short-term savings)
Budget breakdown (this is averaged over the past year for all categories - $$$ indicates an area I know we should cut down)
475 - groceries $$$
48 - household (including renter's insurance, small appliances)
145 - eating out $$$
1250 - rent
270 - car maintenance $$$
248 - car gas & tolls $$$
81 - car insurance
106 - cell phones
60 - electric bill
137 - internet/cable $$$ (right now this is non-negotiable in our household)
62 - heat
65 - clothing
25 - charitable giving
119 - gifts $$$
458 - travel $$$
135 - health related (copays, medicine, etc - we do take advantage of my work fsa)
673 - student loans
190 - entertainment $$$ (going out w/ friends, alcohol, movies, concerts, sporting events)
385 - hub "allowance" $$$ (he's on two sports leagues and started brewing beer)
188 - my "allowance" $$$
162 - dog (she has health issues, total non-negotiable for us)
56 - personal care (mostly haircuts, I went gray at 24 and get it professionally dyed 4x year)
81 - "other" $$$ (we owed 2011 taxes, annual membership for consumer reports online, virus software, amazon prime, and we bought an exercise bike)
178 - Roth IRA
536 - short-term savings
6133 Total spending
167 "extra" - I'm tracking something incorrectly here, based on my personal spreadsheet I can't account for the remaining $167, which is really disconcerting.
My current commute is a car killer - 28 mile round trip city driving each day plus tolls. We're not willing to move closer to the job at this point, especially because I'd like to find a new job in another area asap. Some questions that swirl in my head are...
Should we roll the IRA into the Roth?
Should I consolidate other old 403bs?
Should we cool down our short-term savings?
Boost retirement savings?
Boost loan payoff?
Buy a newer more gas efficient car with 10k savings now to offset the current expenses of our old (functioning) car?
Without clear answers to these questions, here are my current 2013 goals:
1) Figure out and take action on the displaced $4800 403b-turned-into-IRA
2) Find a new job I'd like better
3) Build up another $8000 (~$700/mo) in baby/parenting fund (medical expenses, potential unpaid time off work, daycare startup fund)
4) Maintain 10k emergency fund
5) Maintain 10k cash to replace 14-year old car when it's no longer safe and reliable
6) Reduce travel expenses to $4000 annual ($333/mo) - this is mainly travel to see far-flung immediate family and close friends, but some "fun" travel too
7) Start saving for down payment on future home, maybe aim for at least $2000 startup money by the end of the year (no timeline on this, just "someday").
It's nice to get this all out there - we have certainly made progress though it's felt painfully slow. My best moment this year was when we crossed from a negative to positive net worth!