Hey Money Minder!
I’m a husband and wife duo living in a MCOL area. I’ve been crunching numbers on this budget for what feels like forever, always on the lookout for areas to improve. It’s just me and the wife here, so I figured I’d turn to some strangers for their two cents
Here are some extra deets:
- We’re on a bi-weekly paycheck schedule, so there are a couple months where we get an extra check and stash 95% of it away in savings
- I’m only contributing the minimum to snag that sweet employer 401k match. They throw in 5% when I put in 1%. I really want to bump up my contributions to cut down on taxes, but I’m tackling debt first even though it might not be the smartest money move
- We’ve got life insurance through my job
- Our grocery bill might look high, but we’re all about that healthy eating life, with just the occasional restaurant splurge thrown in
- We’ve got two big pups who eat like royalty, and one of them needs chemo meds daily
- As for the vet bills, we’re chipping away at the minimum payment each month with no interest. We’ll have it all cleared out by January 2025
- Our subscriptions game includes:
- Streaming $82
- Spotify $16
- Peloton $14
- Kindle $13
- AAA $15
- Gym $51
- Car Wash $67 (I know, seems steep, but I love my clean rides and it saves me time)
- I’m planning to pay off my car way ahead of schedule by April 2025 (that’s $275 freed up every month)
- My personal spending might be on the high side, I admit. I allocate $350 a month for my hobbies (which might be a bit excessive, but I can’t bear to cut any out). The wife gets most of what’s left so she can treat herself too
- The savings are headed to a high-yield savings account and then tossed at our debts – kicking off with the vet bills, then moving on to my car, her car, my student loans, and so on
So, what do you reckon? Anything jumping out as majorly off track to you?
Retired and Happy
Response from THE MONEY MINDER:
Hello There,
While it’s clear that you’ve put a lot of thought and effort into your budget, there are a few areas that could use some optimization. Firstly, it’s commendable that you’re already contributing the minimum to get the maximum employer match on your 401k. However, as you mentioned, increasing your contributions could help you save on taxes in the long run. Since you’re also focused on paying down debts, a balanced approach could involve increasing 401k contributions gradually while still prioritizing debt repayment.
Your food budget may seem high, but it’s understandable given your focus on eating healthy. However, you could potentially find ways to reduce costs without compromising on nutrition. Meal planning, buying in bulk, and exploring discount options could help you trim this expense slightly.
In terms of subscriptions, it’s always good to review them periodically to ensure you’re getting value for the money spent. Consider whether each subscription is truly essential and if you could cut down on any that you don’t use frequently.
It’s great that you have a plan in place to pay off your vet debt and other debts systematically. The key is to stay disciplined and stick to your repayment schedule to avoid any unnecessary interest or fees.
Lastly, while it’s important to set aside money for hobbies and personal enjoyment, take a closer look at your free spending budget. Are there areas where you could potentially consolidate expenses or cut back slightly to redirect more funds towards debt repayment or savings?
Overall, your budget is well-organized, but small adjustments in certain areas could help you achieve your financial goals more efficiently. Keep up the good work and stay focused on your long-term financial health.
Farewell from THE MONEY MINDER.
