The Budget - Pre-tax and Tax Deductions

I’ve listed all assets and liabilities. I’ve also listed all sources of income.

Remaining Income to account for= 100% of monthly income

Now, its time to list all pre tax and tax expenses.

First, the pre-tax deductions

Medical, dental, company life insurance, long term disability, and Vision = 1.63%/mth

I’m currently putting 10% of my salary into my 401K plan. My company provides a 6% match (starting in Jan 2007) and I plan to take full advantage of this match.

10% of my salary comes to 6.92 %/mth

Total Pre-Tax Deductions = 8.12%/mth

Then comes the tax man.

Taxes per month (this breakdown is listed on my paystubs)
Federal Income Tax = 7.53%/mth
Social Security = 5.30%/mth
Federal Medicare = 0.56%/mth
VA Income Tax = 1.67%/mth

Total Taxes = 17.66%/mth

After Pre-tax deductions and taxes…
I’m left with a monthly income of….

[Income (100% of income)] - [Taxes and Pre-tax deductions(8.12%+17.66%)] = 74.22% of income left to account for

In the next posting, I will list all savings. Savings take away from my “income” but are added to my bottom line.

Until next time,
Thor

Edit: I decided not to include monetary vlaues but a percentage of monthly income instead.
PS: I just recalculated everything due to what I thought was an error...turned out I was double counting my taxes and my 401K contributions. Basically, I was doing % of income based on a post-tax amount when I should have been doing it on a pre-tax amount.