Hello fellow investors/finance,
Currently sitting at 31 years of age with zero debt, making a combined annual post-tax income of $94,080 split between my wife and me. My wife is currently taking home $2,300 a month, and I am taking home $5,600 a month, before 15% is deducted from my 401 (k) and taxes.
Below is a full list of our current budget.
| Monthly Budget | Income/Payment |
|---|---|
| Husbands (NET) | $3700 |
| Wife's (NET) | $2,300 |
| Part-time | $1,500 |
| Total Monthly Income (Post Taxes) | $7,500 |
| EXPENSES | |
| Rent | $1,378 |
| Utilties | $300 |
| Renters/Home Insurance | $26 |
| Internet | $50 |
| Home Phone (Husband) | $85 |
| Home Phone (Wife) | $71 |
| Fuel (Husband) | $100 |
| Fuel (Wife) | $100 |
| Auto Payment | No car payment |
| Auto Insurance | $224 |
| Gym Membership (Combined) | $63 |
| Groceries (Combined) | $1,200 |
| Netflix Subscription | 18 |
| Miscellaneous/Debt | Depends |
| TOTAL EXPENSES | $3,615 |
| SAVINGS | |
| Emergency Fund | $1,000 monthly |
| 401k (15%) | $840, not including 6% from my company |
| Roth IRA (Husband) | $583 |
| Roth IRA (Wife) | $583 |
| HSA | $358 |
| Total Savings/Retirement | $3,364 |
| Money Left Over for the Month | $1,361 |
Right now, we are completely debt-free. My wife is driving a fully paid-off 2023 Toyota Corolla LE gas model, and I am driving a 2024 Toyota Corolla Hybrid LE model fully paid off as well. My wife is 33 years old, and I am 31 years old. We have a goal of having a 6-month to one-year emergency fund. We are currently sitting at 9k total. Our six-month emergency fund goal would be 20k, and our 12-month emergency fund would be 40k. We currently have 6k in our Ally HYSA account, and we are hoping that at the end of this year, we will have about 25-40k in our HYSA Ally account.
My wife currently has 8k total in her Roth IRA. She had never known about investing and retirement until she met me three years ago. I currently have 74k in my 401k and 10k in my Roth IRA, with a total of 84k in my retirement. I have goals of wanting to retire between the ages of 55-60 years of age with about 1.5-3 million total.
My Roth IRA investments are
5% BND 6.5 Shares
80% VTI 25.7 shares
15% VXUS 23.9 shares
My 401k Investments are
15% FID US Bond IDX
50% SP 500 Index
15% FID EXTD MKT IDX
20% SS GACEO EXUS IDX II
Right now, I have been doing both a Roth 401 (k) and a Roth IRA. Honestly, I would like to believe my income will be less when I retire, but I am not completely sure just yet.
Our current goal is to continue doing what we are doing unless any advice given suggests better alternatives, while focusing on saving 40-60% down payment for a home in the next 3-6 years, while not dipping into our emergency fund.
Am I doing anything wrong? I feel like I am saving a lot, but at the same time, I feel like I am missing something, and I am still behind in life. I'm not sure what I want to do when I reach the emergency fund goal. Do I just keep contributing to the emergency fund? Do I put it into a taxable brokerage account? This is where I am struggling a bit to determine where else to put the money after reaching 40k in the Ally HYSA. With all my retirement, I am considering an average annual return of 7-8% annual return which should yield in my 401k and Roth IRA around 2 million.
Does anyone have any advice on what I need to do or not do? Seeking some real advice.
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