Sam Logan. Sam Logan / LearnVest Who: Sam Logan*, 40, a pediatric anesthesiologist

Annual Income: About $160,000

What Sam says about her budget:

"I'm recently divorced, which means my financial picture is changing — a lot.

In addition to my part-time salary, I'll soon be receiving $6,000 a month for child support for my three kids, and $3,750 for maintenance (formerly known as alimony) for 55 months — and I want to make sure I'm saving appropriately.

While I have about $50,000 in my emergency fund now, I'm not currently contributing to it, so I want to prioritize beefing that up. I'm also maxing out my 401(k) each year, but I'm not sure it'll be enough to comfortably retire.

And I've been toying with the idea of moving to a smaller house in a different school district, so I'd like to put aside some cash for a down payment.

I'd like to stay in the Chicago area, where there are a lot of flexible medical job opportunities. If we lived in a more rural part of the state, I'd likely be forced to work full-time and be on-call — which isn't the lifestyle I want.

When I was married, my husband was the one who kept us on track financially. Our divorce has been friendly, but I don't want to continue turning to him for advice.

Entering this new life phase has inspired me to sort through my finances to ensure I'm being smart and remain debt-free. I've always said that while I don't need to be wealthy, I'd like enough money not to have to worry about it."

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What the CFP® Thinks "I think it's great that Sam is really focusing on her budget — especially during this transition.

When you have specific goals and a solid framework, it's so much easier to come up with a feasible plan for how to spend and save — whether you're bringing in $20,000 a month, like Sam, or $2,000.

Like Jim and Sue, I wonder if Sam is underestimating her spending. Considering she's a busy, working mom, it seems like spending $300 each month on restaurants and takeout may not be actual. She should comb through her credit and debit card statements to learn if that number — and any others — should be higher.

Even after adjustments are made, Sam should have enough to funnel $5,000 to savings each month — in addition to every penny of her maintenance check. That way, she won't get used to spending it, or miss it when it expires. She can use this cash influx to meet her home down payment goal or fund her kids' college funds, while preserving her $50,000 emergency fund.

I'd also like to see her ramp up her retirement savings. At LearnVest, we recommend setting an income replacement goal equal to about 85% of your pre-retirement salary.

So while it's great Sam is maxing out a 401(k), if she wants to bring in $140,000 or so in retirement, she'll need to save about $3 million in the next 20 or 30 years, assuming a 5% return. To make sure she meets that goal, Sam should aim to invest another $4,000 a month in a brokerage account.



I realize we might be getting close to allocating every cent of Sam's income. If things start to feel tight, she may need to reassess the necessity of some of her higher-cost budgeting items, like kids' expenses. I'd challenge her to find creative ways to scale back on clothes and extracurriculars in order to prioritize her savings goals.

In the end, Sam's doing great. She has a lot to work with, and I'm confident she'll reach her goals."

RELATED: Tough Money Talks: How to Tackle 7 Difficult Financial Scenarios With Your Kids

*Name has been changed.

This post was excerpted from "4 People, 1 City: How I Spend, Save and Splurge in Chicago," originally published on LearnVest.

LearnVest Planning Services is a registered investment adviser and subsidiary of LearnVest, Inc., that provides financial plans for its clients. Information shown is for illustrative purposes only and is not intended as investment, legal or tax planning advice. Please consult a financial adviser, attorney or tax specialist for advice specific to your financial situation. Unless specifically identified as such, the individuals interviewed or quoted in this piece are neither clients, employees nor affiliates of LearnVest Planning Services, and the views expressed are their own. LearnVest Planning Services and any third parties listed, linked to or otherwise appearing in this message are separate and unaffiliated and are not responsible for each other's products, services or policies.