2017 Planning

Okay, time to get into the nitty gritty about 2017 planning.  My 2016 budget covers me until Jan 15 2016.

Obligations in order of priority:

  1.  401(k) 2017 $18,000
  2. HSA 2016 $3,350
  3. HSA 2017 $3400 (if I switch jobs, this HSA money is ??)
  4. IRA 2017 $5,500
  5. optional: ROTH IRA conversion. (maybe i should not make this option and just git er done)

Total: $30,250

It takes about 6 months to complete these.  $95,400 is  approximate take home pay for the year.  $47,700 for 6 months.  Total savings for 6 months is about $30k above + $6k mortgage paydown = $36k.  That would be a 75% savings rate.  Actual savings rate is typically like 50% for the year.  I will review later what will throw me off track.

Jan 13: $3,910+$4,800+$292 = $9,052.  I need to cover the second half of the month, so I should contribute $8000 to 401(k) and keep $1000 for expenses.  I also need to start studying for interviews in case I need to switch jobs in the first half of 2017.

Jan 31: $3,910.  I need to cover the mortgage and the first half of the month.  Keep $1900 for that.  $2,000 for the 401(k).  $10,000 for the 401(k).

Feb 15: $1,000 for the second half of the month.  $2,900 for the 401(k).  Now at $12,900.

Feb 28: $1,900 for mortgage + expenses.  $2,000 for 401(k).  $14,900 total.

Mar 15: $800 for second half of month.  $3,100 for 401(k).  $18k total.  Auto insurance $400

Mar 31: $1,900 for mortgage.  $2,000 for 2016 HSA.

April 14: $1,000 for second half of month.  $1,350 to replenish savings for 2016 HSA.  $1,550 for 2017 HSA.

April 28: $1,900 for mortgage + expenses.  $1,850 for 2017 HSA.  $150 for 2017 IRA.

May 15: $1,000 for expenses.  $2,900 for 2017 IRA.  $3,050 for ira total.

May 31: $1,900 mortgage + expenses.  $5,050 for IRA total.

June 15: $1,000 expenses.  $450 IRA, $5500 total.  $2,450 for June mortgage.  home insurance here… $1k

June 30: $45 mortgage starting.  $44k after regular mortgage payment.  – $3,450 = $40k.  Christmas ticket bought here, $300.

July 31:  $40k mortgage – $6k = $34k.

Aug 31: $28k

Sep 29: $22k [property tax and auto insurance due here, $3k]

Oct. 31: $19k

Nov 30: $13k

Dec 29: $7k

This has me saving around $43k + $30k = $73k, a mighty accomplishment.  If my current net worth is $430, that would put me at $500k by the end of the year with $7k debt.  The split would be around 70% condo and 30% retirement.

What gets me off track

  1.  Travel.  Plane tickets, hotel rooms, and eating out are expensive.  Particularly, I will have a summer trip, a Christmas trip, and probably a fall northwest trip in 2017.  I should do everything I can to keep these costs down, by buying the tickets early and by suggesting low cost options.  I’ll probably want to travel internationally.
  2. Electronics Shopping.  I will want to buy a new hard drive for my NAS probably.  I’ll want to buy Nintendo’s new game system.  If Fallout 4 VR comes out, I’ll want to play it.  I’d also be eligible for a new phone.
  3. Alcohol.  If I’m drinking in 2017, it’ll probably influence me to find and try new drinks, and that shit adds up.
  4. People I hang out with.  Hanging out with people who spend is going to influence me to spend.  Hanging out with people who save will help with that.

What will help me save

  1. Yoga.  Physical exercise helps me to be less depressed during periods where nothing is happening.  It’s also cheap and makes me healthier.  It also uses up time that I’d otherwise spend shopping or focusing on things that cost me money.
  2. Finding local friends to hang out and not spend money will help me not be sad and try to spend my way out of it.
  3. Automatic transfers
  4. Get out of Edward Jones.  It’s really shitty. [hoory i initiated a rollover to betterment]
  5. Explore new income opportunities.
  6. Sell yo-yos and other things (electric guitar, extra cameras, etc.).  get rid of storage unit?
  7. Network in general…
  8. Set break points in the year.  I predict what I’ll feel like and why, and then I’ll review that prediction as well as the accomplished savings.  I’ll revise the plan and update the break points.  Monthly and quarterly reviews.
  9. Figure out way to reduce tax burden further…

Managing this overall process in large part is about managing what my daily schedule is like.  What am I doing during the week?  How am I measuring progress to keep myself happy?  What am I doing on the weekend?  What am I doing with other people?  Right now I’m going to work and doing yoga.  The yoga reduces anxiety, but I still feel lonely and unfulfilled.

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