Why in the world would I want to post my current income?
For a blog about budgeting, saving, and trying to reach a specific monetary goal, I wanted to be sure that you all know how much I currently make at my regular full time job. Blogging is what I use as a way for you all to hold me accountable to my goals, as well as to walk others through the same journey that I’m on. I live in Silicon Valley. In Silicon Valley there are people living in $2 million dollar homes, or $4500 a month apartments, I live in neither of these.
I make $48,880 per year. As I’ve mentioned a few times before, we are a single-income family of 5 which includes myself, my fiancé Michael, my mother-in-law, and Michael’s twin siblings who we are guardians for. The house we live in is almost fully paid off, but this home will eventually be signed over into our name. But this house does not suit all of our needs to support a growing family.
What does $48,880 per year really look like?
Let’s take out my 4% contribution to my 401k. By the way, there’s no match from my company, but I really need to save for retirement. 40 years from now, I’ll be wishing I saved more. Anyway, taking out my 4% non-taxed contribution to my 401k- That’s $46,924.80. Still not too bad. Let’s take out the $27 per month I pay for medical insurance- $46,600.80. Now take out my standard taxes of around 28%- That’s $33,552.57. But wait! I get money back at the end of the year. Usually about $2500. (And please, all tax accountants out there, please remember that I’m not a tax accountant. I review my paychecks and estimate my bi-monthly earnings and find that this is approximately what I make. I may be off by saying $2500 in refunds. It may actually be $2357 or some more exact number…)
What does my yearly take home actually look like?
And now after adding my tax refund back- I make right around $36,000 per year take home. That’s about $3000 per month.
So where does my money go?
That’s something I’ll be reviewing and analyzing so you all can keep up with how I’m trying to save, save, save and cut costs where I can!
We are not defined by the numbers on our paychecks- I feel like we are better judged by the pride we take in our work. I know there are others out there who are supporting a household of my size on a lesser income, but in Silicon Valley, not everyone is making a Software Engineer’s salary. There are customer service people who help make the company run well, and we are equally as important!
I hope to hear what level of income my readers fall into: 30k-35k, 35k-40k, 40k-50k, 50k+. Leave a comment below.