Where My Paycheck Is Going #1
I thought it would be interesting to write a post on how I am saving/spending one of my paychecks. It would be a curious experiment over time and maybe to see where my money is going and if I am on track to reach a savings rate of 50%.
Total take home: $1,504.10
Savings (Emergency): $100
Savings (High Yield): $500
Car payment: $600
Credit Card: $88.07
FICA taxable: $3,138.97
FICA medicare: $45.52
FICA OASDI: $194.61
Tax Deductions: $962.63
Roth 401K: $670.39
Non-Tax Deductions: $727.43
Lessons From This Paycheck
I saved about 42% percent of my paycheck. With some really rough math 30% of my paycheck is going towards taxes (ouch) and about 19% is going towards what I put towards my car loan. That leaves about 8% going towards bills which is lower than I expected. I am leaving the remaining balance on my credit card until my next paycheck since I won't have any heavy hitting bills due but I did pay off a good chunk of my car $600 and my principal on my car is now down to $15,527.92.
Going forward theres a few things I want to implement:
Increase my 401K contribution from 21% to 22% to make sure I max it out
Increase my contribution to my HSA account to max it out for the remainder of this year. This will hopefully wipe out some FICA taxes but will be painful in the short-term since I am maxing out with only 6 months left in the year rather than contributing over the course of a full year.
I'm rolling over my previous employer's 401k to a Roth IRA. I called Fidelity (the people who run my company's 401K) and was able to get on the phone with a financial planner and was able to hear a solid list of pros and cons. Since I am on track to maxing out my Roth 401K with my employer and getting the full 6% contribution it makes sense to diversify and to open a Roth IRA. I am currently in the process of researching various IRAs and will update when I find one that meets my needs.
Until then there is much to learn and much to enjoy while saving for the future.