Thursday, December 13, 2007

Initial 2008 Budget

$150K/year pre-tax income.
$15.5K for wife's 401k
That leaves $134.5K pre-tax or $88.7K after-tax.
$15.5K for my Roth 401k
$10K for our Roth IRAs.

That gives us a monthly income of $5200 which needs to be deducted by
$2800 for all bills, including mortgage. The leftover is $2400.

We are planning to use $1000 to pre-pay the mortgage, and put the rest (after food expenses) in either stock market (if the condition is good) or in high-interest saving accounts.

This is a very simple on-the-napkin budgeting. If we manage to follow this, our net worth will increase by $62.4K by the end of 2008.

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