Blog Post #4: Future Expenses

The total of my family's (me, my spouse, and one child) future expenses each year are $98,243.  I know this is logical because my primary sources for information are Zillow, USDA, and ehealthinsurance. This estimate was calculated using cost of housing, food, utilities, transportation, health (insurance, etc.), children, education, protection, and 'leisure and luxury.'

According to FBIjobs.gov I can likely count on making $68,000 each year in my future job as a Federal Special Agent.  My education/training to get that job will cost $120,000 total for all years of training. I did not factor this cost in when calculating my future expenses because I hope to have them paid off by then.

I want to save $7,000 for my rainy day fund each year, and $10,000 for retirement each year.  If I save $10,000 for retirement each year, by the time I am 65 years old I will have $400,000 plus interest.

Comparing my future income and expenses makes me think about how I much I need to think about when I'm older. It made me think about how much budgeting I will need to do. I now know the importance of budgeting and saving. Thinking about how much it costs to live here in California and Marin makes me question whether I want to live here when I am older. I feel that living here I might not get the kind of lifestyle I desire, as I would be living on such a tight budget.