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Okay in about 3 months I'm going to take a serious pay cut from 4,500 a month to 3,000 a month. I'm current putting away 1,000 bi-monthly into Savings,Retirement, and Emergency Fund and I understand I won't be able to do this in the future. How could I keep a similar lifestyle while still trying to save for retirement and build up my Emergency Fund.
Future Expensive
600-700 month for Rent
300 monthly on food (I'm a big guy)
250 a month on Lights, Cellphone and High Speed Internet
5000 dollars on Traveling (Yearly)
300 a month on Car payment and Insurance.
300 every bi-monthly for playtime.
It seems I will have about 5000 a year left over to divide into Savings, Retirement and Emergency Fund.
How many years will you work before you retire?
It looks to me like you need to cut back now or you'll have to live on little when you retire. You could cut back on Travel and high speed internet. That would put some more in the bank.
How many years will you work before you retire?
It looks to me like you need to cut back now or you'll have to live on little when you retire. You could cut back on Travel and high speed internet. That would put some more in the bank.
I'm 27 now, so I have 38 years before I hit retirement age.
That's a pretty good amount of time to save until retirement. Continue to do what you can, but know that if you improve yourself and work hard in an area that is in demand, you may be able to increase your salary significantly over time. It just depends. Think long-term.
I'm about your age, my rent is about the same, but I spend $90 less than you on water/electric/DSL/cable TV/phone and $200 less than you on groceries. Paid off my car and pay $40/month for car insurance (in six month increments). And of course I don't spend on travel or "playtime." Can you cut some of these expenses by making a series of small changes?
You're spending plenty of money now on travel and playtime...you could invest that money instead, add the magic of compound interest and have even more fun later. It is a trade off. Oh, and your car payment isn't helping either. If you spent $1000 year on vacation, $200 per month playtime that would give you $8800 more to invest. Saving for retirement should not be the last thing you figure into the budget, reprioritize to find the money you already have.
You're spending plenty of money now on travel and playtime...you could invest that money instead, add the magic of compound interest and have even more fun later. It is a trade off. Oh, and your car payment isn't helping either. If you spent $1000 year on vacation, $200 per month playtime that would give you $8800 more to invest. Saving for retirement should not be the last thing you figure into the budget, reprioritize to find the money you already have.
That's a pretty good amount of time to save until retirement. Continue to do what you can, but know that if you improve yourself and work hard in an area that is in demand, you may be able to increase your salary significantly over time. It just depends. Think long-term.
I'm about your age, my rent is about the same, but I spend $90 less than you on water/electric/DSL/cable TV/phone and $200 less than you on groceries. Paid off my car and pay $40/month for car insurance (in six month increments). And of course I don't spend on travel or "playtime." Can you cut some of these expenses by making a series of small changes?
What I figure here is already a HUGE turn around from what I'm spending now.
Rent: 1800 monthly
Lights/ Cable/ Internet: 350 monthly
Food: 350 Monthly
Playtime/ and Silly spending: 400 Bi Monthly
Saving and Retirement: 2000, monthly
Vacation: I didn't go on on Vacation this year, instead I spend 11,500 on surgery.
Yes, I could probably cut back some more, but it's like taking a kid to a candy store and saying you can only have one piece of candy. This won't be easy..
Okay in about 3 months I'm going to take a serious pay cut from 4,500 a month to 3,000 a month. I'm current putting away 1,000 bi-monthly into Savings,Retirement, and Emergency Fund and I understand I won't be able to do this in the future. How could I keep a similar lifestyle while still trying to save for retirement and build up my Emergency Fund.
Future Expensive
600-700 month for Rent
300 monthly on food (I'm a big guy)
250 a month on Lights, Cellphone and High Speed Internet
5000 dollars on Traveling (Yearly)
300 a month on Car payment and Insurance.
300 every bi-monthly for playtime.
It seems I will have about 5000 a year left over to divide into Savings, Retirement and Emergency Fund.
UGH I'm going to retire poor!
I don't get it.... you have 700 + 300 + 250 + 300 + 300 + 415 = 2265
You made 4500 a month... which means you have an extra 2235 a month... but u save 1000 every 2 months... so you still have an extra 3470 every 2 months... what exactly do you spend that on?
So even if they reduce you to 3000 a month... that means you still have an extra 735 a month... still saving 1000 every 2 months nets you an extra 470 every 2 months... that is if you continue doing everything you are doing.... so I don't get it... am I missing something?
In the end, you will still put $6k into retirement each year...
at 4500/month... you were saving over 20k a year
at 3000/month.... you will be saving 5640 a year instead...
Putting away almost 12k (half in emergency fund/savings and half in retirement is pretty good).... so what is the problem?
I don't get it.... you have 700 + 300 + 250 + 300 + 300 + 415 = 2265
You made 4500 a month... which means you have an extra 2235 a month... but u save 1000 every 2 months... so you still have an extra 3470 every 2 months... what exactly do you spend that on?
So even if they reduce you to 3000 a month... that means you still have an extra 735 a month... still saving 1000 every 2 months nets you an extra 470 every 2 months... that is if you continue doing everything you are doing.... so I don't get it... am I missing something?
In the end, you will still put $6k into retirement each year...
at 4500/month... you were saving over 20k a year
at 3000/month.... you will be saving 5640 a year instead...
Putting away almost 12k (half in emergency fund/savings and half in retirement is pretty good).... so what is the problem?
The amount you quote is what I plan to spend when move back to the states, not what I'm currently spending. If I stick to the plan I have set I'll only have 5,000 to split between savings, retirement and emergency fund.
Trust me, I know how hard it is. However, we are past the mid point in our financial plan now and have been saving well more than we have been spending for several years now. You can still have fun on a budget and knowing that when we retire (early) we will be able to do/have all we have been missing plus a lot more helps keep us focused on the goal.
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Not what I wanted to hear, but great advice.
