| Made those Roth contributions. Decided that a lump sum in the beginning of the year was advantageous because contributions have that much longer to grow tax free. The alternative was to leave the savings in a savings account, currently earning 1%, and taxable, of course. I moved the money out of savings and will use current pay to replenish the savings as the year goes on.
Finally made set some savings goals. Between my 401K, our Roth, and other cash savings, the goal is 35K. As aforementioned, our NW goal is 450K, which is a 76K increase over prior year. So I guess I'm looking for a decent return on our investments this year!
My gross income for the year should be about 94.7K.
5.4K will go to pre-tax benefit expenses (medical/dental, FSA)
15.4K will go to taxes
17.5K will go to my 401K,
11K will be saved to replenish savings used for Roth contributions
6.5K will be additional savings for the year
This leaves 38.9K to spend.
Total savings (401K, Roth, Other) should be 35K.
Percentages of gross are as follows:
Benefits: 6%
Taxes: 16%
Savings: 37%
Spending: 41%
We spent about 45K last year, so bringing it down to 38.9K is a 14% reduction. I believe we can do it! |