- Build a "new life" budget. Figure out exactly what we need to make, which areas we can cut, etc. There are some obvious changes (taxes will decrease, childcare will go down, I will get rid of the cleaning lady, etc) to take into account.
- Figure out how much it will cost to enroll me, plus the kids on M's insurance plan. I should be able to figure this out quickly, as we work for the same company.
- Figure out an exit date that allows me to capture a final quarterly stock vest (6/25). Maybe a combination of vacation days & working an extra week after the boys are done with school.
- Build a summer budget & plans to ensure we have enough "flex".
- Live off of our "new life" budget as much as possible, as early as possible. Obviously, we won't be able to cut down childcare until I stop working, but we may switch to a bimonthly cleaning, etc, to try & save more & prepare ourselves.
- Get a grasp on how much we will owe in taxes in 2015, as taxes due will make a major dent in my current savings.
- Determine how much "flex" money I need in our savings in order for the "40 week project" to be a go. Actively track over the next 10 months.
- Evaluate whether I can max out my 401K in 2016 with my bonus before I quit. . . this one will be totally dependent upon the new budget numbers.
- Look for areas of our existing budget to cut back asap, so we can start building up a nice cushion.
I think that will be enough. ;-) I'm super, super excited. Any other tips to share? :-)
Hi! Great start! Regarding #1, I say add 10% to whatever number you come up with. Or whatever buffer percentage you prefer. My reality has always been that you need it and having it in your estimates can be very comforting.
ReplyDeleteAlso regarding the cleaning, do you have a system in place? If no, I would start to develop one asap as it will make the transition so much easier and you'll be able to cut back on that expense sooner than you think. Also, start to enlist your boys help with the easy stuff but make it a part of their routine. It'll help you now and in the future as well as provide them with one more life skill.
Also, I have noticed that sometimes you tend to go over budget on your date nights. I would make a list of free things to do with M and start to implement this now. Plan for perhaps a quarterly outing to something that costs money so you can still splurge. Since you are in California with good weather most of the year, one idea is to be ruthless with food spending in order to carve out enough money for a "special" picnic with M - you guys eat well so you can hit a nice deli/food shop and still be able to have "good" food but not go to a restaurant.
~ Pru
Great suggestions, thanks! I'd say we have a very subpar system in place for cleaning now, as we're out of the house so much. The boys do help with watering the plants, garbage/recycling, laundry & keeping their rooms clean. But, I need a more systematic approach for the kitchen, bathrooms, floors, etc.
DeleteM & I are very erratic with our date nights, but you are right. It takes pretty much our entire dining out budget to do a dinner out with a bottle of wine. I'll have to give some thought to other suggestions - love the idea!