Expenses as % of after tax monthly household income.

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills

Expenses as % of after tax monthly household income.

Postby goru1 » Mon Jul 15, 2013 10:48 pm

Please comment.

Thanks.

Age: 42
Times annual expenses accumulated: 7
Marginal Tax rate: 25%
Emergency fund: Yes
Debt: Mortgage
All Vanguard
Account types: 401k, Roth and Taxable
Me and spouse employed full time
Two kids less than 10 years old

Home: Northeast

Expense
% of after tax monthly household income

* House (3 level townhouse condo)
26.5%
Mortgage, Tax, HOA, Utilities [Gas, Electric and Water], Cleaning, Maintain, Repair and Install

* Charity
8%

* Eat
8%
Grocery, Vitamins and Eat out

* Vacations
7%
US and Visit family in home country alternate year

* Kid 1
6%
Preschool and Kid 1's birthday party

* Kid 2
6%
Classes [acedamics, sports, music and other activities] and Kid 2's birthday party

* Transport
3.5%
Gas and Car maintenance

* Buy car
3%
Once every 7 years

* Insurances
3%
Auto, Home, Umbrella, Life and ID Theft

* Electronic utilities
2%
Cell phones, Internet and eFax

* Medical
1.5%
Copays, Deductibles, Pharmacy, Lenses etc

* Cleaning products
0.5%
Personal, House and Laundry

* Shopping
0.5%
Clothes, Shoes etc

* Jewelry
0.5%

* Misc
1%

Total expenses
77%

* Retirement savings
23% (100 - 77)
Last edited by goru1 on Mon Jul 15, 2013 11:16 pm, edited 2 times in total.
goru1
 
Posts: 201
Joined: Thu Jun 14, 2007 1:14 pm

Re: Expenses as % of after tax monthly household income.

Postby stan1 » Mon Jul 15, 2013 10:51 pm

How much in $ are you spending for each birthday party (is it the party for your kids, or gifts you give for your kid's friends at their parties -- which I know these days can be expensive). Otherwise you are saving the remainder? What about 401Ks, IRAs, etc.?
stan1
 
Posts: 3466
Joined: Mon Oct 08, 2007 5:35 pm

Re: Expenses as % of after tax monthly household income.

Postby Monkeyarms » Tue Jul 16, 2013 5:21 am

The information you have laid out is somewhat incomplete. If you have a high deductible health plan not only do you get to reduce your premiums but you might be able to save pre-tax income in a HSA. In addition most condo HOA tend to be external repairs not necessarily internal stuff so you still need to account for some money to fix interior issues. Perhaps saving 1 to 2.5% of purchase price a year?
My opinion is offered from a place of altruism, please do not take my words as law or my intentions as malicious.
Monkeyarms
 
Posts: 5
Joined: Tue Jul 16, 2013 12:29 am

Re: Expenses as % of after tax monthly household income.

Postby goru1 » Tue Jul 16, 2013 11:01 am

is it the party for your kids
Otherwise you are saving the remainder?
What about 401Ks, IRAs, etc.?

I have edited the original post.

Thanks.
goru1
 
Posts: 201
Joined: Thu Jun 14, 2007 1:14 pm

Re: Expenses as % of after tax monthly household income.

Postby BuckyBadger » Tue Jul 16, 2013 3:35 pm

Wow. That is detailed. And significantly complex enough that I doubt you'll have anyone answer in kind, unless they have LOTS of time on their hands.

I approach it from the opposite direction. I set a lofty savings goal for short and long term savings and deduct it all out first. Then we spend what's left over. A slush fund of a few thousand dollars allows this to happen easily.

I don't know how much of our after tax income are "expenses" because our "after tax" income is also our "after 401k" income, and that reduces our taxable income. I don't have anything figured with respect to after tax income - it's all with respect to our paycheck, which is after tax, after 401k/403b, and after HSA.

We save a little over 80k a year in retirement accounts. We gross about 244k. The rest goes to taxes and spending, I suppose. We pay about 50k in taxes, leaving us about 114k a year, or about 10k a month. So that's what we spend.
BuckyBadger
 
Posts: 478
Joined: Tue Nov 01, 2011 12:28 pm

Re: Expenses as % of after tax monthly household income.

Postby spotty_dog » Tue Jul 16, 2013 4:27 pm

goru1 wrote:Please comment.


What kinds of comments are you looking for? Praise? Criticism? Comparison?

We are in a similar life stage, with a preschooler and an elementary schooler, and in a slightly higher bracket and probably a lower COL. We save a lot more than you do by percentage, and spend a lot less, especially on housing and kids.
spotty_dog
 
Posts: 93
Joined: Thu Jul 26, 2012 10:06 am

Re: Expenses as % of after tax monthly household income.

Postby dpusa » Tue Jul 16, 2013 4:55 pm

spotty_dog wrote:
goru1 wrote:Please comment.


What kinds of comments are you looking for? Praise? Criticism? Comparison?

We are in a similar life stage, with a preschooler and an elementary schooler, and in a slightly higher bracket and probably a lower COL. We save a lot more than you do by percentage, and spend a lot less, especially on housing and kids.


Agree, dollar specifics would be better...
For example, we have a strategy to pay off our home in 10 years, so our housing spend is 40% of our take home (or 23% without on a 30 year); but we save about 35% if you EXCLUDE that mortgage overpayment via 401k, IRA, brokerage, 529s). I would concentrate on how much do you want to save, and look for changes in your budget to support it.
dpusa
 
Posts: 104
Joined: Thu May 19, 2011 9:07 am

Re: Expenses as % of after tax monthly household income.

Postby goru1 » Thu Jul 18, 2013 10:11 am

Thanks for all responses.
goru1
 
Posts: 201
Joined: Thu Jun 14, 2007 1:14 pm


Return to Personal Finance (Not Investing)

Who is online

Users browsing this forum: Boglegrappler, Ged, jimcrawford01, john94549, killjoy2012, RRR, Seattlenative, toofache32, Yahoo [Bot], Zapped and 47 guests