Hi All! I've been thinking about early retirement since I was in my early 20s. And the numbers looked so good when I was single w/o kids and savings accounts were paying 6%! I'm 33 now and married with 2 young kids. DH is 35 and our DDs are 3 & 1. I work as an accountant full time, and DH stays home with the girls.
Having a stay at home parent is important to us. I stayed home for the 1st 15 months of DD #1's life, but as the primary earner, the plan was always for DH to stay home. I really disliked my job when I was pregnant with our first, and we ran the numbers and figured we could swing it for a year or so. We went from a combined income of 108K to just DH's of about 28K. Amazingly, we did not have to spend a penny of our savings, we just made do with the 28K. 399 sqft 1 BR apartment, but we loved our life. I was, and still am, so proud of that year!
Anyway, back to reality, I returned to work in early 2010, and now DH stays home. Had our 2nd daughter in 2011, and a 1BR apartment is no longer practical!
Here are our stats:
Income: 85K + Bonus (6-8K). I'll see an increase in March 2013.
Expenses for the last 12 months:
Rent- $14,400 (hope to buy a home soon!)
Groceries- $4,852
Travel- $4,712
Restaurants- $3,591
Utilities- $3,377 (1/3= heating oil, 2/3= electric, internet, other)
Insurance- $2,856 ($667 life, $1,883 2 cars, $281= rent, motorcycle, jewelry)
Gas- $1,987
Kids Stuff- $1,880 ($1,100 preschool, started this year, $500 Y dues/classes)
Auto- $1,844 (4 tires, 1 battery, 2 other repairs, inspections, maintenance)
Clothing/Shoes- $1,109
Other- $3,664 ($1,000 unaccounted cash, $870 Household, $490 Entertainment, $370 charity. $240 hobbies, remainder misc.)
Total: 43K spent in 1 year.
(Expenses do not include insurance premiums deducted from paychecks or taxes. This is a rolling 12 month expense report, so in the next 12 we will see higher expenses in preschool, but likely lower in travel. I'd like to bring expenses down to under 40K/year.)
Assets:
Cash: 136K ($120K earmarked for home down payment)
Mutual Funds: 27K
Retirement: 187K ($144K Roth, $43K trad. 401K, currently at max contrib.)
(I don't include personal property in my net worth. The way I see it, I'm going to use up my cars like I use up the groceries, and I'm not going to liquidate things with sentimental value, like my engagement ring.)
Liabilities: None
Total Net Worth: 350K
I think the glaring missing item is real estate. We currently rent. The cash in our net worth is going to be a down payment on a house. We want to buy something under $375K (hopefully soon) and get a 15 year mortgage. That way when the kids start college, there will be no mortgage payment.
The problem with that is I may not be able to max out retirement contributions if our housing payment goes from $1,200 to $2,500 (high RE taxes), I'm hoping my salary will continue to increase, and DH will get a side business off the ground. If not that, than he will likely take on PT work once both girls are in school. We don't want him to work FT b/c we want someone to be home whenever the kids are.
I'm pretty sure we are in good shape to retire at 55, but I'd love to be out earlier, maybe 48. Another thing- I long to spend more time at home with my kids these days, and when I'm 48, they'll both think I'm uncool and one will be off to school. Makes me a little sad, it just all seems backwards!
If you made it this far into the post, kudos! And if you have any feedback, suggestions, tips, etc, I'd be so appreciative! And one last thing: I don't use dryer sheets, we line dry everything!
Having a stay at home parent is important to us. I stayed home for the 1st 15 months of DD #1's life, but as the primary earner, the plan was always for DH to stay home. I really disliked my job when I was pregnant with our first, and we ran the numbers and figured we could swing it for a year or so. We went from a combined income of 108K to just DH's of about 28K. Amazingly, we did not have to spend a penny of our savings, we just made do with the 28K. 399 sqft 1 BR apartment, but we loved our life. I was, and still am, so proud of that year!
Anyway, back to reality, I returned to work in early 2010, and now DH stays home. Had our 2nd daughter in 2011, and a 1BR apartment is no longer practical!
Here are our stats:
Income: 85K + Bonus (6-8K). I'll see an increase in March 2013.
Expenses for the last 12 months:
Rent- $14,400 (hope to buy a home soon!)
Groceries- $4,852
Travel- $4,712
Restaurants- $3,591
Utilities- $3,377 (1/3= heating oil, 2/3= electric, internet, other)
Insurance- $2,856 ($667 life, $1,883 2 cars, $281= rent, motorcycle, jewelry)
Gas- $1,987
Kids Stuff- $1,880 ($1,100 preschool, started this year, $500 Y dues/classes)
Auto- $1,844 (4 tires, 1 battery, 2 other repairs, inspections, maintenance)
Clothing/Shoes- $1,109
Other- $3,664 ($1,000 unaccounted cash, $870 Household, $490 Entertainment, $370 charity. $240 hobbies, remainder misc.)
Total: 43K spent in 1 year.
(Expenses do not include insurance premiums deducted from paychecks or taxes. This is a rolling 12 month expense report, so in the next 12 we will see higher expenses in preschool, but likely lower in travel. I'd like to bring expenses down to under 40K/year.)
Assets:
Cash: 136K ($120K earmarked for home down payment)
Mutual Funds: 27K
Retirement: 187K ($144K Roth, $43K trad. 401K, currently at max contrib.)
(I don't include personal property in my net worth. The way I see it, I'm going to use up my cars like I use up the groceries, and I'm not going to liquidate things with sentimental value, like my engagement ring.)
Liabilities: None
Total Net Worth: 350K
I think the glaring missing item is real estate. We currently rent. The cash in our net worth is going to be a down payment on a house. We want to buy something under $375K (hopefully soon) and get a 15 year mortgage. That way when the kids start college, there will be no mortgage payment.
The problem with that is I may not be able to max out retirement contributions if our housing payment goes from $1,200 to $2,500 (high RE taxes), I'm hoping my salary will continue to increase, and DH will get a side business off the ground. If not that, than he will likely take on PT work once both girls are in school. We don't want him to work FT b/c we want someone to be home whenever the kids are.
I'm pretty sure we are in good shape to retire at 55, but I'd love to be out earlier, maybe 48. Another thing- I long to spend more time at home with my kids these days, and when I'm 48, they'll both think I'm uncool and one will be off to school. Makes me a little sad, it just all seems backwards!
If you made it this far into the post, kudos! And if you have any feedback, suggestions, tips, etc, I'd be so appreciative! And one last thing: I don't use dryer sheets, we line dry everything!
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