Salary Information
The information provided in this section regarding your salary, taxes, and location is used to help determine your estimated tax contributions and whether the lifestyle you're planning is above or below your current means. This information will not be shared with any third parties and is kept strictly confidential.
Fixed Expenses
Fixed expenses are monthly expenses that are required and generally remain the same from month to month. These expenses are necessary for maintaining one's standard of living and include items such as rent or mortgage payments, utility bills, insurance premiums, and car payments.
Housing
Utilities
Insurance
Miscellaneous
Optional Fixed Expenses
Optional fixed expenses are expenses that you choose to incur on a regular basis, but are not strictly necessary for your day-to-day survival. These expenses are usually predictable and occur on a monthly basis, such as a gym membership or a subscription service. While they may add to your quality of life, they can also be trimmed if necessary to meet your financial goals.
Optional fixed expenses are expenses that you choose to incur on a regular basis, but are not strictly necessary for your day-to-day survival. These expenses are usually predictable and occur on a monthly basis, such as a gym membership or a subscription service. While they may add to your quality of life, they can also be trimmed if necessary to meet your financial goals.
| Expense | Amount |
|---|---|
| Dog | $150 |
| Groceries | $200 |
| Gas | $50 |
Variable Expenses
Variable expenses are expenses that fluctuate in cost from month to month and are typically necessary for day-to-day living. These expenses can include things like groceries, gas, and entertainment. Because these expenses vary in cost, it's important to track them closely; it's safer to overestimate these costs.
Savings
Savings goals are expenses that are not immediate but require long-term planning. These expenses can include things like a down payment on a house, a new car, or a college fund. Setting a savings goal can help you stay focused and motivated in achieving your financial objectives. It's important to determine a specific amount and timeline for each goal to ensure that you are making consistent progress towards achieving it. By incorporating savings goals into your budget, you can work towards the future while still maintaining your day-to-day financial responsibilities.
Investments
Investments are a way to grow your wealth over time by allocating your money towards assets that have the potential to increase in value, such as stocks, bonds, mutual funds, and real estate. Investing involves taking on a degree of risk in exchange for the potential for greater returns. It's important to understand your risk tolerance and invest accordingly, as well as regularly monitor and adjust your investments as needed.
Retirement
Pre-tax retirement funds, such as a 401(k), are investment accounts that allow you to make contributions on a pre-tax basis, meaning that the contributions are made with pre-tax dollars and are not taxed until you withdraw the money in retirement. This can reduce your taxable income in the year you make the contribution.
Post-tax retirement funds, such as a Roth IRA, are investment accounts that allow you to make contributions on a post-tax basis, meaning that the contributions are made with after-tax dollars and are not taxed when you withdraw the money in retirement. This can provide tax-free income in retirement and can be especially beneficial if you expect to be in a higher tax bracket in retirement than you are currently.