She's a Lot Ambition Looks Good on You.

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Here’s where my 6-figure salary is going every month...

I'm a strong believer that you are only as strong as the systems you've set up for yourself. That means I don't wait until after I've spent every month to save and invest; I automate it so I never have to depend on my willpower.

The way that I split my paychecks, percentage-wise, has stayed roughly the same from when my salary was only $45,000 a year to now. I've always aimed for:

• at least 10% to my 401k
• Rent under 35% of my pre-tax income and under 50% of my post-tax income
• 20-30% of post-tax money directly into savings and investments

I've increased where I can afford to, but my system has stayed the same even as my income doubled, tripled, and kept growing - because it works. I love to spend money on travel and eating out, and I don't hold back. This system means that I can spend without worrying because my money is already flowing where it needs to. Here's my exact breakdown right now:

401k - 15% pre-tax. Currently, 15% of my pre-tax income automatically flows into my 401k before it even hits my bank account. My goal is to keep increasing this until I'm maxing it out every year.

HSA - $183/month pre-tax. This is the max contribution amount. I love my HSA because it's triple tax-advantaged: the money goes in tax-free, it can be invested to grow tax-free, and if I use it on medical expenses when I pull it out, it stays tax-free. It's essentially a second retirement account, with the added bonus of tax-free withdrawals for medical expenses.

Insurance - $200/month for my medical, dental, vision, identity theft, and life insurance.

Taxes - There's only so much you can do as a W-2 employee to lower your taxes. Contributing pre-tax to retirement accounts is one of the main levers, along with deductions when you file.

Rent - This is our largest post-tax expense, but we have chosen to continue renting instead of buying. The temptation to buy, especially as people around us start to, is real. But we ran the numbers: for a 2bd of the same size we rent now, we’d need a down payment of $180k to get our monthly mortgage the same as what we pay in rent right now.

Pet insurance - $45 a month. I used to think pet insurance was a waste of money. But this year I got it, because I never want to be in a position where I have to choose between saving my cat's life and a vet bill I wasn't prepared for. I use Lemonade and so far, signing up, filing claims, and getting reimbursed has been incredibly easy.

Gym/Spa membership - I'm grandfathered in at an amazing rate for my local gym that's also a spa. Unlimited mat pilates, barre, yoga, a weight room, hammam, sauna, and a monthly facial or massage for about half the price of an Equinox membership. My rule: if you actually use it and it adds real value to your life, it's worth it.

Brokerage account - $500/month. This automatically goes in as soon as my paycheck hits. If I have extra at the end of the month, I'll add to it. But this way I know I'm investing consistently no matter what else I spend.

Savings - $500/month. This goes right into my HYSA (High Yield Savings Account). I already have a fully funded emergency fund, so right now, so right now this is building toward things a few years out, like a down payment or future family costs. Some people would put this right into investments instead, but that's where personal risk tolerance comes in. I like having a little more cash on hand - especially with rising costs and an unpredictable economy.

Sinking funds: ~ $1275/month. Travel ($1,000), gifts ($200), car maintenance ($75). Because these aren't monthly expenses, I build them up over time so I'm never caught off guard by a larger cost.

The So What

When you have a system that works, you don't need to stress about your spending. After all of my automatic transfers go out, I can spend freely, knowing my financial security is already taken care of. And because it's built on percentages, the system scales with you no matter what your income is.

She’s A Lot Lately

Today is my birthday, so I'm intentionally taking the day off of work to spend it with myself, starting with a few hours at a coffee shop while my cleaner does a deep clean of my apartment. Investing back into your own time is always worth it. ✨

Wishing you a rich life,

Lora at She's a Lot