The Budget of a 35-year old Govt. Auditor Making $100,000+ in DC
The last follow-up to wildly popular, The Budget of a 33-year old Govt. Auditor in DC and The Budget of a 31-year old Govt. Auditor in DC.
Backstory: Little known fact, I have a tattoo on my left arm that says “Law” in Chinese… Well, at least I hope it says “Law”. Got it back in Palms Springs, CA when I was in Marine Corps Communication, and Electronic School (MCCES), way before it was cool to be tatted up. It was always incomplete and in 2020, I’ll get the tattoo of “Order” on my right arm. Well, at least I still hope it would say “Order.”
“Moving toward completion on this winding road.”
Let it always be known that the odds might be stacked against you, however, GOD always pulls off the upset. Life is not easy. It never was and never will be. For those who believe wholeheartedly just go with glory and you will find your finish line.
For me, the finish line wasn’t about the money. I’m not interested in the long-term pity parties (no invites required). I wanted to prove that solutions can work.
In the end, a ton of lifestyle changes had to be made for me to get to this point. My pride had to take a hit. My ego had to take hits. The road is lonely when you are trying to course correct. I had to let go of who I was to grow into who I could be…
Here’s how my monthly budget broke down for 2018:
Avg. Monthly Take-Home: $4,171.81 (Up from $3,477 in 2016)
Uncle Sam (What up Bruh! We meet again), thanks for the visit and here’s your cut of my $100k. I ended up with $50,061.77 annual take home. Taxes and Savings (SMH). I socked away the maximum allotted levels in my 401k, IRA, and HSA.
Chris Hogan wrote a book on Everyday Millionaires: How Ordinary People Built Extraordinary Wealth (PB Episode 131) in which the research points out that most millionaires use a variant of Net/Max plan. You might want to follow the plan because your future is worth your budget.
Double the Mortgage: $1,526.37 (Up from $816)
So now, I’m holding down two mortgages. One for my personal property and the other for my joint rental property for my mom’s retirement (planning ahead as a family). Still not a bad price for two 2/2s with rental income coming in at $1.1k while some are paying over $1.3k+ for a 1 bedroom rental in DC. To each their own, but I rather live further out and use the extra money for travel and paying down debt.
The goal is to be done with both mortgages in 7.5 years.
Cost of Food and Drinks: $336.26 (Up from $227)
Definitely brunch less and meal prep more, it’s the only way to make it in this world. I do fall back into bad habits in the mornings with Pret-a-Manger. On weekends, add a girlfriend in the mix and any guy’s cost for food and the finer things goes up.
No shade toward the ladies but their taste is way more refined. Gone are my cream of wheat moments. I eat real food now or it’s HIGHLY suggested.
Student Loan PMT: $631.12 (Down from $665.52)
Still, have until 2025 to pay these pesky loans off. With the additional random fees for my certifications. The yearly drain is worth an entire trip overseas.
I will likely be a flight risk when I’m done paying. What do people do who don’t have student loans? I imagine that they jump into a pool of money and pop bottles in St. Tropez.
Credit Card PMTs: Varies (From $500)
This segment varies since I use my credit cards for churning points for travel and cash back credit card payments. I’m not too worried about that since I usually close out the year with no CC debt. In the future, I’ll endeavor to use it even less.
My credit score peaked north of 800. The myth is real. Life is better on the other side.
Utilities and Phone Bill: $328.03 (Up from $147)
Splitting costs works, especially between friends for T-mobile. We also get Netflix and it costs about $25.50/month each. I take what I can get but temps keep changing and the price sucks.
Got to upgrade my Air Conditioning unit soon and make efficiency changes. Oooh well, still solid savings. Gone are the days of cheat Comcast cable. I’ll have to eventually cut that down to just internet to save at least $1,000.
Savings and Investments: $3,150+ (Up from $1,358)
In the savings dept., I made use of any and all benefits from my reduced rent. 401k increase, IRAs, and even Investments. I was all in. Never looked back. Like driving a stick shift in Scotland, don’t blink! Dave Ramsey argues to pay off all debt first, but I’m not with that. No money left on the table and no more money donated to Uncle Sam. This is my personal financial mantra.
Next up, building in small investment groups and networking with small teams of like-minded individuals. If you want to know more, send me a Direct Message (DM).
Health & Fitness, and Personal Care: $106 (Down from $160)
This is holding this year since I’m not heading to the dentist all the time to donate and support his kids’ extracurriculars.
So some savings earned but I do need to take care of myself more and more. It will go up in 2019+ for sure. You literally have to invest in your health today to avoid catastrophe later.
Everything else: On average $1,000-$1,105 per month
Expenses change. I’m getting used to it. Some months are smoother than others. By God’s grace, I’m alive working and being grateful for the time. We ended up skiing for the first time. Traveled to see friends get married and even a rededication ceremony. Just great times with friends and family. Rental property fixes and lessons being learned.
All moving towards the goal. Additionally, I usually front-load travels for the next year by December to save money on flights and hotels.
Conclusion
Avg. Monthly Expenses of $2,909.72 (Down from $2,166 in 2016)
People never realize how much work and struggle you have to put in to be successful. It is non-negotiable. But once set in motion, it’s on autopilot. Those who don’t mind their money end up losing track of their own time and destiny. I knew of a woman making upward to $125k annually and was still broke. I also know people making $50k-$90k living above their means, and complaining that the world is against them.
It’s DOABLE and it’s NOT EASY.
Part of life is making the choices that will benefit the greater purpose and actively choosing what you really love over the things you think you are obligated to do. These choices must be timely. As of now, my life is filter-free. Wake up and change. If you want to follow my finances to fact check, see this link.
If this impacts you; share, discuss, and inspire others. Sharing good information matters, like this Million Dollar Life plan.
Sometimes you have to have a why? For me, that’s my faith, my crazy (but brilliant) ideas, my friends, and my family. This is my last budget breakdown. My goal is set for millionaire status in 6 years. I figure WHY NOT.
Most of the time, I’m as doubtful as you might be of my odds but I’ll do it anyway. If and when you are ready to change your financial life, I’m one DM away.
