“Hi Money Minder,”
Let me give you the lowdown on my financial situation. I’m chilling in a cheap area with my main squeeze and living that debt-free life. Bringing in $80k a year pre-tax, I’m pocketing around $4500 a month after all the deductions for Roth 401k and health insurance. I’m stashing away 10% of each paycheck into my Roth 401k to secure that bag for the future.
Here’s the breakdown of my monthly expenses:
- Rent: $500 (easy on the wallet)
- Utilities: Under $200 (keeping it light)
- Phone: $100 (staying connected)
- Subscriptions: $40 (keeping up with the trends)
- Gym: $60 (keeping fit)
- Groceries: $350 (sharing the load with my boo)
- Miscellaneous: $100 (for those unexpected needs)
- Date nights/Restaurants/Fun: $1000 (treating us both as my partner is still in school)
- Personal Shopping: $300 (guilty pleasure)
- Savings for Wedding/Car/House: Aiming for $1700 or more (planning ahead for big life events)
I need your wisdom on this. I’m lost when it comes to how much we spend on food and how much I should save for future goals on top of my 401k contributions. We’re eyeing a house in a few years and have a wedding in the works. Plus, I do love to shop. Help a friend out!
Looking forward to your guidance,
Savvy Spender
Response from THE MONEY MINDER:
Hello There,
Congratulations on living in a low cost of living area with your boyfriend and being debt-free! It sounds like you have a good handle on your expenses, but there are a few areas where we can potentially make some adjustments to help you achieve your goals of buying a house and having a wedding in the future.
Firstly, it’s great that you are contributing 10% of your paycheck to your Roth 401k. This is a solid start towards your retirement savings. However, given your financial goals of saving for a wedding, car, and house, you might want to consider increasing your savings rate if possible. Since you don’t have any debt to pay off, putting more towards your savings goals can help you reach them faster.
In terms of your monthly expenses, it’s wonderful that you and your boyfriend split groceries and have a relatively low rent and utility costs. Your phone, subscriptions, gym, and miscellaneous expenses are all reasonable. However, it might be worth reviewing your date nights, restaurants, and personal shopping budgets. Are there areas where you can cut back slightly to allocate more towards your savings goals without sacrificing too much of the enjoyment you get from these activities?
When it comes to your specific question about groceries, it might be helpful to track your food expenses for a month to get a better idea of how much you’re spending. This way, you can adjust your budget accordingly and potentially save some money in this category.
Overall, it’s essential to find a balance between enjoying life now and saving for your future goals. By making small adjustments to your budget and continuously monitoring your expenses, you can be on track to achieve your financial aspirations. All the best from THE MONEY MINDER.
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