What about food, health insurance, gas for the car? Do you not have these expenses, or did you just forget to list them? If you don't have those expenses, it looks like $574 to $1074 remains each month from the take home pay after you meet the $725.97 monthly obligations. That's the money we would suggest (if it is indeed available) that you could tap to be investing in retirement, Roth IRA, taxable accounts to help with your wealth accumulation.
Thanks. Health insurance comes out of my check and is already included in the numbers I provided for my take home pay after all deductions. I've maxed out my insurance benefits so no surprises other than the annual increases potentially.
Food realistically is about $300 / month if I eat out, but if I cook I can probably get by on $200 month. I don't mind eating leftovers.
kingdf wrote: ↑
Sat Jun 09, 2018 9:09 pm
While you are waiting for the 4 plex a year from now, and based on the cash flow you listed above of your current income and expenses, are you willing and able to save more than 5% of your income going into the 401k? Couldn't you bump that up based on your take home? Or are the unlisted expenses already eating that difference?
My paycheck is my "flexible" money. Royalties only come monthly and as someone still getting use to saving, investing, etc. I'm hesitant to raise my 401k too much. Honestly, 3% was a HUGE step for me. Then I went to 5% after a few months. I know its going to bump to 7% in August, but I've been considering bumping it to 7% in July and letting it bump to 9% automatically in August.
I'm not ruling out your suggestion at all. Just cautious.
We would all caution on using the word "faster" - at least in terms of trying to beat average returns. Slow and steady is the path by continual contributions to your retirement plan and savings each month, year after year, decade after decade.
I agree. Let me explain what I mean by "faster". I mean legal and steady. In my opinion dividends would be "faster" because it's money accumulating on it's own without me having to trade time for it. I'm even looking at KitSplit to rent out some film equipment I have that isn't in use. When I say faster I mean more ways of producing incoming cash... not get rich quick schemes or high risk investment. I want to grow it steadily without a lot of risk. Hope that clarifies. I believe in buy and hold vs sell. Learned my lesson when I sold all 8 of my Bitcoin when it hit $800... yep kicking myself for that.
Cash flow looks really good for your current living situation if those indeed are your expenses. Curious about the health insurance (is that deducted from your salary), and food expense. Surely you must eat and somebody is paying for that. I like your plan of the 4 plex. Have you considered tenants in the other 3 units as opposed to the Airbnb?
I mentioned food above so I won't re-write it here. As far as tenants AirBnB is vastly more profitable. I live in Vegas near the strip... well everything is near the strip here. Convention season units rent for $300+ per night. Same with New Years, Christmas, and other random events. I know a guy with 4 units clearing $12,000 / month easily. He'd never get that from tenants.
Is there potential for a somebody special in your life that could end up in a two income household? This is a well known way for household income (dual income, that is) to increase as I am sure you are well aware since you mention child support payments that you are making out of your paycheck from your prior relationship.
Not at the moment. I've been open to a financially beneficial arrangement with a woman for a while now. Sounds weird, but I'm not looking for love. After 10 years trapped in a committed relationship, I have no interest in them in the traditional sense. I enjoy my freedom too much now.
Without knowing where that extra money is going from your take home for the gap between the expenses you list, we would simply suggest utilizing that money by increasing your 401k contribution with some of it, and a Roth IRA for some as well. Not to mention the self-employed savings possibilities for your side business(es).
I do have some cash on hand because I use the Envelope Method to save up for bigger expenses. I'm currently saving for:
4 Plex expenses
EDC or some other fun event because I'm 36 and look 23. Most women don't even believe I'm over 30 and I'll be 36 this year... so fun time to be single.
Clothes. I need to shop but I tend to buy 2 pair of pants 2 pair of shoes and 5 shirts once a year. Saving to splurge $500 at Burlington year end.
New Years Party. Never had one ever so I want to party this year.
Emergency cash. I remember not being able to get cash in 08 from Washington Mutual. Never again will I hold 100% of my savings in the bank.
I don't have any set savings amount for the above items. I try to drop a minimum of $60 each paycheck and royalty payment. I do more from time to time.
I randomly spend money on 4/20 since it's legal here and my job doesn't care about drug testing anyone. That's less of an ongoing expense and more of when the mood hits. I don't smoke cigarettes or drink alcohol so no expenses there.
I've been considering a Roth IRA as a possibility as well, but haven't decided 100%. I may convert my Merrill Lynch account to one depending on the benefits.