I’ve probably already done this, but let’s redo it for fun. My paycheck is likely to be $3910. My January bonus is likely to be $4850. My tax refund is unknown, but I have quite a few writeoffs:
Writeoffs for 2016:
- investments losses -$2,384.96
- hsa $3350
- ira $5500
- mortgage interest $2000 ish
- property tax $2400 ish
- state income tax $11,693
- bonus overholding (possibly $700?)
- livingly stock loss writeoff?
- total $27,328, assuming 28%, tax return could be $8,352
Of course, the $3350 turns that into $5000. Let’s just pretend $3000 to be conservative. That refund would likely arrive in March sometime, because Edward Jones loves being slow with tax paperwork.
Okay so January has $12670, and I estimate expenses of $2400. Let’s say I can put $10,000 from January into the 401k.
February is much the same. $5420 available. Let’s pretend $5000. So by the end of February, I have $15000 in the 401k. Tax refund in March brings me to $18000. There’s a little emergency fund juggling there to fund the 2016 HSA, but whatevs. After the 401(k) is done, I need the 2017 HSA, 2017 IRA, and of course I need to keep my emergency fund up. March itself will bring in $5000ish extra, so that can be used to cover the 2017 IRA. The 2017 HSA would need to be refunded by April 15’s paycheck, or if I’m lucky the tax refund will absorb most of it. So it’s not really until May that I can get rolling on paying off the condo more. That’s only 8 months left in 2017. But if we said I could do $5000 a month in additional principle, that’s a payoff rate of $6k per month = $48k, which is about what the balance is going to be. If I miss paying it off in 2017, the 2018 retirement junk potentially delays me again until March 2018, but then I should only have $10k left, and that could be killed in a couple of months, so by summer 2018 I’m totally debt free with about $152k in retirement. Not terrible. Net worth would be around $500k, with 70% of that in the condo (not a great ratio). Minimum expenses as percentage of income would be around 20%.