Poppin' Bottles...Is what I don't do...
Hmm. In an attempt to get all of my skeletons out the closet, I figured I’ll post what I earn, and what my debts are.
It’s nothing big for me, I guess. I want to create this post so my About Me page can easily link to the money that I currently earn. As my financial position changes, I’ll update the link on my About Me page.
What Do I Gross in a Month?
Salary (gross): $7398.64
Rental Property: $1100
Total Monthly Income: $8498.64
What is Deducted From My Gross Monthly Pay?
Retirement: $56.18
Federal Taxes: $525.94
FICA Social Security: $235.95
FICA Medicare: $81.46
Medical Insurance: $31.72
Total Monthly Deductions: $931.25
Where Are My Monthly Obligations?
Mortgage 1: $1536.59 (My Rental Property) Balance: $176,000
Alimony: $1500 Balance: $3,000
Mortgage 2: $700 (My Current Home) Balance: $102,150
Orthodontics: $179 (20 Weeks of Treatments Remaining) Balance: $1793
Electricity: $150 (Average)
Credit Card: $150 (Average) Balance: $10,001
Cable/Internet: $115
Car Insurance: $79.11
Sprint: $75 (Can’t wait to Switch to Boost Mobile)
Water: $50
School Lunches: $40
Natural Gas: $15
Web Hosting: $9.95
Total Monthly Obligations: $4599.65
What Remains for Discretionary Spending?
Monthly Income – Monthly Deductions – Monthly Obligations = $2967.74
My Monthly Budget for Household ($150) /Groceries ($517.74)/Entertainment ($300) = $967.74
Currently Monthly Savings or for Debt Payoff = $2000
What Can I Fix?
What I’m doing now is not really wrong, but contrary to “best practices”, I’ve dramatically lowered my contributions to my retirement account. I was saving about $1000 monthly, but then the divorce happened, I took on other debts, and I started changing my philosophy on retirement savings in general. I want to generate passive income now, not have $6,000,000 when I’m 60!
I’m paying $150 monthly on a credit card, and will have to start paying interest in April if I don’t hurry to pay it off. Yep, the costs of a divorce, getting back in the dating game, and buying a house adds up quickly.
I’m “losing” money on my rental. I’ve been trying to refinance for a while, but will need at least $30,000 to do so.
I’m paying $179 monthly for my Invisalign (braces) treatment. I have about $1600 remaining to pay. After I pay a total of $4500, my teeth better be super straight.
Conclusion
I’ve cut all of my expenses down to only what is necessary, so to speak. I’d cut the cable since I don’t watch television, but my son watches it. Take from these numbers what you want. There are a lot of things that I’m doing right, and a lot of things that I’m during wrong, per sè.
Readers: Having seen my numbers, where do you think I can change up a bit?
12 Responses to So, What’s my Monthly Net Income?
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Romeo – I absolutely love the transparency here buddy. Looking forward to getting to know you more!
Thanks, Sunil. I figured I’d let readers “know” who they are “talking” too. Transpareny is needed to establish an authoritive voice.
1. Accelerate credit card payoff, and when you reach $0, pay your balance every month.
2. Compromise on retirement savings: increase your contribution and create at least one fund that’s earmarked for your son’s education. At your age, the multiplier effect of investing is astonishing over time; at my age it’s hard to add meaningfully to my totals. Kind of like flunking out of college and then trying raise your GPA later to get into medical school.
3. Put your alimony payment somewhere that makes money after December: You have lived without that amount for a year and you won’t miss it if you put it into an investment. Same with your orthodontics payments once you’re done. One good option is to put “found” money into principal payments on any mortgage.
Thanks, Peter.
The problem with accelerating anything, especially when the interest is 0%, is once the payments goes on the debts, that money is gone. So, if I were to pay off the credit card, I would first save the $10K and then drop it all at once.
I have a 529 plan (UTAH’s) for my son that I usually put $5K or more a year in. I usually drop this all at one time. It doesn’t take advantage of “dollar cost averaging” but I’ll make at least $50K in contributions prior to him reaching 18.
Last, I feel you on the alimony payments. And can’t wait to they go away. So yes, this money will definitely be used in some way to accelerate my mortgage payments. I just don’t know which mortgage. That’s a problem in and of itself.
Thanks for getting my thoughts spinning.
Glad to hear you are making some of the changes needed to reach your goal. Cutting expenses is a great way to start. I must say you are doing quite well though with having 2000 a month to save or put on debt.
Thanks, Miss T.
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I know you said your son watches it, but is cable really necessary?
Nope. Cable is not necessary, but I do have to consider my son. Also, my woman and her daughter watches it when they come over.
Besides, I really do want to focus on cutting out big things more so than the little things, though I understand that little things add up quickly. Cutting out cable (at $50 monthly) saves $600 a year, but cutting out a car payment saves $600 a month.
Thanks, Dwayne.
You should be able to shave your electric bill also if you start unplugging things. If you’re not already doing so.
I didn’t see anything about a car payment in your rundown of expenses Mr. Clayton. Secondly, you said your cable/internet package was $115/month right? So you mean to tell me that you pay $65/month for internet? That, my friend, is preventing wealth. Secondly, what’s wrong with basic cable or basic television? Truth be told, you are opting for luxury over necessity.
Of everything you listed, and knowing what you’re focused on (you don’t want to give up your rental property and the passive income, but you probably could have waited and unless you made a typo you are currently losing on that venture $1100 in vs $1500 out), plus some expenses being fixed (it’s not like you can take your braces back), and the ease of eliminating little things really on left a few choices. Even if you wanted to sell your property, or a car.. it’s not something that would happen overnight. But, if I’m also interpreting things correctly your alimony is coming to an end, so there you go.
What Do I Gross in a Month?
Salary (gross): $7398.64
Rental Property: $1100
Total Monthly Income: $8498.64
What is Deducted From My Gross Monthly Pay?
Retirement: $56.18
Federal Taxes: $525.94
FICA Social Security: $235.95
FICA Medicare: $81.46
Medical Insurance: $31.72
Total Monthly Deductions: $931.25
Where Are My Monthly Obligations?
Mortgage 1: $1536.59 (My Rental Property) Balance: $176,000
Alimony: $1500 Balance: $3,000
Mortgage 2: $700 (My Current Home) Balance: $102,150
Orthodontics: $179 (20 Weeks of Treatments Remaining) Balance: $1793
Electricity: $150 (Average)
Credit Card: $150 (Average) Balance: $10,001
Cable/Internet: $115
Car Insurance: $79.11
Sprint: $75 (Can’t wait to Switch to Boost Mobile)
Water: $50
School Lunches: $40
Natural Gas: $15
Web Hosting: $9.95
Total Monthly Obligations: $4599.65
What Remains for Discretionary Spending?
Monthly Income – Monthly Deductions – Monthly Obligations = $2967.74
My Monthly Budget for Household ($150) /Groceries ($517.74)/Entertainment ($300) = $967.74
Currently Monthly Savings or for Debt Payoff = $2000
Oh, I know. There is no car payment. My point was I’d rather cut out a $600 monthly payment, which I do, than to cut $10 here and there although I know it can add up quickly. I’m paying $65 for internet and a land line that I need. I have a son that uses the land line to call me when needed. Also, my son watches stuff on extended cable, like the Disney XD channel that is not in a basic cable package.
Yep, I’ll be glad when the Alimony stops. I’ve already prepared for it and will share later my budget.