A simple Budget for the broke $350,000 man
Andrew Schiff was sitting in a traffic jam in California this month after giving a speech at an investment conference about gold. He turned off the satellite radio, got out of the car and screamed a profanity.
"I'm not Zen at all, and when I'm freaking out about the situation, where I'm stuck like a rat in a trap on a highway with no way to get out, it's very hard," Schiff, director of marketing for broker-dealer Euro Pacific Capital Inc., said in an interview.
Schiff, 46, is facing another kind of jam this year: Paid a lower bonus, he said the $350,000 he earns, enough to put him in the country's top 1 percent by income, doesn't cover his family's private-school tuition, a Kent, Connecticut, summer rental and the upgrade they would like from their 1,200-square- foot Brooklyn duplex.
"I feel stuck," Schiff said. "The New York that I wanted to have is still just beyond my reach."
To read the rest of the article:
http://finance.yahoo.com/news/bonus-withdrawal-puts-bankers-malaise-050100338.html
This is what is called a budget Mr. Schiff. Based on making about $200,000 after taxes(even though he says he makes less than this after insurance, I netted that amount out in this budget), there seems to be plenty of money left over.
To not be stuck Mr. Schiff you simply need to contribute $20,000 to your wife's charity instead of over $100,000 and find a school for your kid at $12,000 a year tuition instead of $32,000. Also you might want to either live in your Connecticut home year round and give up your Brooklyn apartment or vice verse.
One thing I do know-if I was making $350,000 a year I could certainly live on this budget!
ANNUAL BUDGET
| Net Income | $200,000 | Recommended | ||||
Charitable | $ 20,000 | 10.00% | 10-15% | |||
Savings | $ 12,000 | 6.00% | 5-10% | |||
Mortgage/Rent | $ 60,000 | 30.00% | 25-35% | |||
Utilities | $ 16,000 | 8.00% | 5-10% | |||
Food | $ 24,000 | 12.00% | 5-15% | |||
Transportation | $ 24,000 | 12.00% | 10-15% | |||
Clothing | $ 8,000 | 4.00% | 2-7% | |||
Medical | $ 4,000 | 2.00% | 5-10% | |||
Personal/Insurance | $ 10,000 | 5.00% | 5-10% | |||
Recreation | $ 10,000 | 5.00% | 5-10% | |||
Tuition | $ 12,000 | 6.00% | 5-10% | |||
Expenses | $200,000 | 100.00% | - | |||
Difference | $ - | 0.00% | ||||
Total Budgeted Amount | $200,000 | 100.00% | ||||
MONTHLY BUDGET
| Net Income | $16,667 | Recommended | ||||
Charitable | $ 1,667 | 10.00% | 10-15% | |||
Savings | $ 1,000 | 6.00% | 5-10% | |||
Mortgage/Rent | $ 5,000 | 30.00% | 25-35% | |||
Utilities | $ 1,333 | 8.00% | 5-10% | |||
Food | $ 2,000 | 12.00% | 5-15% | |||
Transportation | $ 2,000 | 12.00% | 10-15% | |||
Clothing | $ 667 | 4.00% | 2-7% | |||
Medical | $ 333 | 2.00% | 5-10% | |||
Personal/Insurance | $ 833 | 5.00% | 5-10% | |||
Recreation | $ 833 | 5.00% | 5-10% | |||
Tuition | $ 1,000 | 6.00% | 5-10% | |||
Expenses | $16,667 | 100.00% | - | |||
Difference | $- | 0.00% | ||||
Total Budgeted Amount | $16,667 | 100.00% | ||||
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