Gross Income Breakdown
Inspired by Budgets are Sexy’s post about breaking down the budget by percentages, I decided to tally up my monthly income and see where all the slices fit together. However, unlike his post, I am going to use Gross Income instead of Net Income because I want to include my 401k investment as Savings. This then introduces an additional slice called Taxes into the mix.
The actual monthly numbers for this is:
- Taxes - 1,600 – Hefty? Yea. Large percentage? Not really, considering this includes a host of random costs (Health, dental, vision insurance; work life insurance, tiny pension contribution) along with the FICA, federal, and state income taxes. Of course the reason it is a lower percentage is because I max out the 401k contribution every year.
- Savings - 2,710 – Consists of the after-tax savings and 401k contribution. Savings go toward building up the emergency fund, buying foreign currencies, diversifying my mutual fund portfolio, saving for another downpayment on a rental property.
- Debt Repayment – 690 – Consists of the student loan repayment and prepayment of Property #3 mortgage principle.
- Housing - 1,350 – Consists of Property #3 mortgage payment + HOA + Property Taxes + Electricity + Internet
- Life - 600 – All discretionary expenses such as eating out, getting haircut, buying clothes, etc…
Total is Gross Income of 6,950
I think overall I am doing okay. In a way the slices for Savings + Debt Repayment and part of Housing (the principle paying part) all go towards increasing my assets and lowering my liabilities and thus increasing my overall net worth. I probably could cut some fat from Life and Taxes, but it currently works for me and I do want good insurance and some fun in life.
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great post as usual .. thanks .. you just gave me a few more ideas to play with