Another HHI AE

[adogae]

I've really enjoyed seeing how others manage money. I also feel I have this board to thank for getting my financial house in order many years ago. Thus, it seemed only fair to share. 

AGI: $492,000 (Note: Spouse is a partial owner of an S-class corporation. Corporate income is treated as personal income, although this money was never taken out of the business. Income in terms of salary/bonus/vested stock was $410k, plus $20k investment income. Most years salary/bonus/vested stock ranges from $300-390k.)

Federal taxes: $107,700

State Taxes: $45,000



Auto expenses: $1,800

Childcare expenses (partial year, new baby): $23,300

Clothing: $1,700

Entertainment: $360

Gasoline: $1,000

General Merchandise (Costco/Amazon/etc.): $16,200 (This includes all purchases to prepare for a new baby and a new washer and dryer.)
Groceries: $2,800

Healthcare: $16,000 (includes premiums, OOPMax)
Hobbies: $500

Home Maintenance: $1700

Insurance: $1900

Mortgage: $36000 (includes additional $300/month principal payment)

Personal care: $450

Restaurants: $2900

Travel: $3900

Utilities: $8000 (This includes yard maintenance & snow removal, which we outsource.)


Total expenses: $133,497 (includes $12,900 in mortgage principal spending)



Dedicated Retirement Savings: $43,000 (our contributions only, excludes any employer match. Using 401k, SEP, and HSA as retirement vehicles.)
Additional Savings: $104,000

While my salary is high ($200k, plus $30k bonus, plus stock that's ranged from $0-$50k), my industry isn't stable. My goal is to save enough to be financially independent in case my job is eliminated. We're about 10 years off from that, assuming we won't need to pay for childcare if I'm not working. We've adjusted our budget to save at least $100k every year since 2013. This was our highest spend year ever thanks to the new baby.

[turkletsmom]

Thank you for posting! How are your groceries so low? Or is that also included in the Costco category?

[ohgillian]

Thank you for sharing. I love how much activity this board has had the past few months.

Reactions:
- Whoa that's a low groceries number. I'm thinking maybe some of your food purchases are in the "general merchandise" line maybe?

- I never knew snow removal was a thing. I mean, of course it is, but I've never lived in a snowy place. How much does that cost? What does it involve? Roof? Sidewalks?

- Do you have a specific goal with the extra $300 monthly principal payment? I'm curious about your putting it there vs investing it, etc. OTOH, you're already saving a ton, you may be set on investments, and I can understand wanting to end the mortgage sooner. So just wondering.


ETA: And congrats on your new baby!  

[ohgillian]

Mar 17, 2021 10:21:39 GMT -5 turkletsmom said:

Thank you for posting! How are your groceries so low? Or is that also included in the Costco category?

I took awhile editing my reply, and I duplicated this question. That was my first question too! Like, what am I doing wrong?

[flygirl]

I’m impressed by your savings! I’m in a volatile industry myself and I always worry what will happen if it disappears and I wish I could save to prepare like you are.

ETA-I live in a snowy place so I’m guess she means clearing driveways and sidewalks when it snows.  We (at least where I live don’t frequently remove snow from the roof unless there are issues with ice dams)

[Cappy]

I'm also curious about your food budget. I see that you have about equal eating out and of course there are only two of you, but we are spending like 10-12k a year on food only shopping at Aldi/generic w/ 2 small kiddos. Do you have a cook once a week type strategy? Or are you doing bulk purchases via Costco? Or work providing lunches?

[adogae]

Mar 17, 2021 10:21:39 GMT -5 turkletsmom said:

Thank you for posting! How are your groceries so low? Or is that also included in the Costco category?

We get 80% of our groceries from Costco and the remainder from TJ and our local supermarket. So that's why the split is so odd. 

[adogae]

Mar 17, 2021 10:25:16 GMT -5 ohgillian said:

Thank you for sharing. I love how much activity this board has had the past few months.

Reactions:
- Whoa that's a low groceries number. I'm thinking maybe some of your food purchases are in the "general merchandise" line maybe?

- I never knew snow removal was a thing. I mean, of course it is, but I've never lived in a snowy place. How much does that cost? What does it involve? Roof? Sidewalks?

- Do you have a specific goal with the extra $300 monthly principal payment? I'm curious about your putting it there vs investing it, etc. OTOH, you're already saving a ton, you may be set on investments, and I can understand wanting to end the mortgage sooner. So just wondering.


ETA: And congrats on your new baby!  

Thanks for the congrats, it's been an exhausting sort of amazing!

Regarding groceries, yeah, mostly Costco. We also meal plan, batch cook, and eat very little meat. I'm vegetarian, DH eats the occasional meat. 

Snow removal is someone to plow the driveway and shovel the front walk. We moved from non-snow to snow, and my non-negotiables were an attached garage and to never have to shovel snow. We pay the service $35 per snowfall to manage it. I won't pay for a housecleaner, but snow removal, that's priceless!

The extra on the mortgage is done so that we have the flexibility of a 30 year mortgage, but will have it paid off in 15, which helps with the financial independence goal. It should also mean that if we're still employed, we can cashflow college in another 16-17 years, with what we spent on the mortgage.

[adogae]

Mar 17, 2021 13:13:45 GMT -5 Cappy said:

I'm also curious about your food budget. I see that you have about equal eating out and of course there are only two of you, but we are spending like 10-12k a year on food only shopping at Aldi/generic w/ 2 small kiddos. Do you have a cook once a week type strategy? Or are you doing bulk purchases via Costco? Or work providing lunches?

We do a combo of cooking once or twice a week and doing that cooking bulk from Costco. Plus we're mostly vegetarian, eat a lot of tofu/curry, and veggie dishes with beans and rice. We do that because we enjoy it, not necessarily to save money.


I was pregnant and breastfeeding, so our alcohol expenses really dropped. It's been my goal to keep those low now that the breastfeeding is done, and so far we're doing well. DH would prefer more alcohol, but doesn't love drinking alone, so at most he'll have a case of beer every week or two.

[turkletsmom]

Mar 17, 2021 13:15:51 GMT -5 adogae said:

Mar 17, 2021 10:21:39 GMT -5 turkletsmom said:

Thank you for posting! How are your groceries so low? Or is that also included in the Costco category?

We get 80% of our groceries from Costco and the remainder from TJ and our local supermarket. So that's why the split is so odd. 

Ah ok that makes sense.  When I saw the amount for groceries I was like TEACH ME YOUR WAYS!  LOL.  We spend about $700 on food and I feel like we eat really simple/boring food.

[adogae]

For those interested here's this week's meal plan. The only thing not made from scratch is the hummus. I have celiac, so anything that might involve wheat is replaced with an alternative. I try not to replace and to just avoid.

Breakfast - blueberry baked oatmeal. I batch cook once or twice a week and use frozen blueberries and bulk oats.

Lunch - Grilled veggie fajitas with guac and black beans. Same deal - grill a huge batch once or twice a week and use them up. If DH really wanted meat this week, he'd get some and grill that too and put it on his fajitas.

Dinner - Tofu panang curry with brown rice. We get the curry paste and 15 lb bags of haiga rice at the Asian market, and I put bell peppers and frozen pineapple in the curry.

Snacks - Carrots and hummus, homemade soda bread muffins with butter, greek yogurt with chocolate chips.

We always do pancake or waffle Sundays, and often do pizza on Friday nights. We'll get a frozen crust and then each top it with what appeals to us. In non-COVID days, we'll eat one meal out a week on the weekend. I do omelets with cheese and things like sun dried tomatoes/olives/artichoke hearts as a back up meal if I need something different.

[ellipses84]

Thanks for posting, including the example meal plan! We do most of our grocery shopping at Costco too, because it’s the cheapest place for the huge amount of fruits and veggies we eat.

I always find healthcare costs fascinating when people post because they vary so much and it’s not something everyone thinks about in relation to income. Ours is about what yours is for a family of 4 (but most employers don’t charge extra for more than 1 kid).

[dr.girlfriend]

Not that you asked, but I vote that you splurge on a housecleaner! Even biweekly, it's SO worth it, especially with a new baby!  We suspended housecleaning due to COVID because DH is high risk and we wanted to limit exposure, but I'll be adding it back the second he gets two weeks past dose #2.  :-)

[aspentosh]

I also separate out Costco trips but then add back in the food portion into groceries (I use Mint to split so I can keep track). I was shocked at your grocery budget before I read the replies, lol.

Your menu sounds delicious and definitely reaffirms the fact that I could totally be vegetarian. As it stands, I don't eat meat most days.

It's great that you're able (and willing!) to save so much, knowing your job isn't stable. Way to be heads up about it.

[k3am]

Mar 18, 2021 16:46:32 GMT -5 dr.girlfriend said:

Not that you asked, but I vote that you splurge on a housecleaner! Even biweekly, it's SO worth it, especially with a new baby!  We suspended housecleaning due to COVID because DH is high risk and we wanted to limit exposure, but I'll be adding it back the second he gets two weeks past dose #2.  :-)

I plus one to this. I was anti-house cleaner for a long time because I can always do better. It took until my first kid was maybe 1 or 2 before I realized I’d rather pay someone else to scrub my toilets and spend more of my non-work time enjoying my time with her and DH.