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I put my budget on here and was surprised how torn apart it was getting. It seems everyone feels I'm living this crazy lifestyle and I shouldn't drive a $250 a month car, or go out to a nice dinner with my wife twice a month. I'm all for a budget and living below your means.. but how much more should I really be trying to put towards debt and investing?
basically all my bills and outgoing expenses come out to about $6,200 and we clear about $9,400 and all that's left over goes toward debt pay down and eventually investing.. how is that not enough?! I mean its like 35% of my income! I'm getting depressed.
Maybe everyone on the other thread is just looking at the budget itself and not focusing on the overall numbers? Like if bill gates is spending $1,000 a month on eating out does he really need to tone that down just because?
So how much do you have left over each month for debt pay down or investing? Hopefully it'll make me feel better, or open my eyes.
$240 weekly Roth 401k contribution. $5k into Conventional IRA annually. ( I make less than you). Savings go beyond these two figures but most are going to the bank for a downpayment.
Everyone is critiquing your budget because you are not Bill Gates with endless amounts of passive income, you are in debt and have next to no investments or savings. Clear your credit card and student loan debts and you'll be in great shape. If something happens (major car repair, home repair, sickness) before that, you are in trouble.
I have a 401k investment through my job, monthly passive investments, and fund IRAs for both of us from my annual bonuses. I make less and invest more.
Try to stay away from as much consumer debt as you can once this stuff is paid off (except for houses and cars because few can pay cash for those), buy whatever you want but pay the bill at the end of the month.
Also, it's interesting from a psychological perspective that you consider expenses to be $6200 but say all that's left is for paying down debt. You actually have more outflows than income, and paying 15% when you have a high credit score is no good.
Last edited by TheOverdog; 08-27-2015 at 02:59 PM..
Also, it's interesting from a psychological perspective that you consider expenses to be $6200 but say all that's left is for paying down debt. You actually have more outflows than income, and paying 15% when you have a high credit score is no good.[/quote]
I have made debt paydown a huge priority, I think pushing 35% of my income into debt pay down each month shows that. I do not want to put my life completely on hold and not be able to enjoy a nice dinner with my wife simply because I have student loans and $6k in credit card debt. I do 100% agree that paying down the debt has to be a priority, but general happiness should also be a priority. We don't use the credit cards anymore FYI, that was the result of my wife going nuts on "little things" for the wedding.
Could you explain how I have more outflows than income?
So how much do you have left over each month for debt pay down or investing? Hopefully it'll make me feel better, or open my eyes.
Why are you surprised? Your monthly bills are almost our entire take-home, and we make more than double the American median.
I took a look at your budget, and it looked like analysis paralysis to me. You have too many line items. Simplify it.
When you say "a month", that sounds like poor people, like you're a slave to a payment book. Work towards writing checks and being done with it.
You're not sick enough of it yet, otherwise you'd see that you're stretching yourselves too thin.
It looks like your "bills" bills are about $5K. You bring in $9.5K. Eliminate some of your bills, live on $400/wk (food/gas/etc), and pay $3K on debt per month. Once it's gone, then worry about saving/investing. Those should be far from your mind right now.
Food for thought: We clear about $7K/mo. Married, three kids. Our monthly bills are $2.5K on a bad month, only debt is a mortgage. Sure leaves a lot to work with.
Why are you surprised? Your monthly bills are almost our entire take-home, and we make more than double the American median.
I took a look at your budget, and it looked like analysis paralysis to me. You have too many line items. Simplify it.
When you say "a month", that sounds like poor people, like you're a slave to a payment book. Work towards writing checks and being done with it.
You're not sick enough of it yet, otherwise you'd see that you're stretching yourselves too thin.
It looks like your "bills" bills are about $5K. You bring in $9.5K. Eliminate some of your bills, live on $400/wk (food/gas/etc), and pay $3K on debt per month. Once it's gone, then worry about saving/investing. Those should be far from your mind right now.
Food for thought: We clear about $7K/mo. Married, three kids. Our monthly bills are $2.5K on a bad month, only debt is a mortgage. Sure leaves a lot to work with.
Breathing is nice.
Agreed.. That's what we're doing. We have high housing costs, but that's the nature of the beast in the north east. I'm going to take another look at my budget, get a better estimate on the costs and what we can work on cutting back or eliminating. I should be able to average $3,000 a month to get rid of that credit card debt in the next 3 months. After that its focusing on the 6% student loans, then we'll look at investing. If I can cut back the budget a bit, and once the debt and 1 of my cars is paid off I should have plenty to work with.
Agreed.. That's what we're doing. We have high housing costs, but that's the nature of the beast in the north east. I'm going to take another look at my budget, get a better estimate on the costs and what we can work on cutting back or eliminating. I should be able to average $3,000 a month to get rid of that credit card debt in the next 3 months. After that its focusing on the 6% student loans, then we'll look at investing. If I can cut back the budget a bit, and once the debt and 1 of my cars is paid off I should have plenty to work with.
Your housing cost isn't *that* bad, it's a bit much, but it's not outrageous IMO. You should be able to free up well over $1K+/mo once the debts are gone (I'm including the car payments here).
basically all my bills and outgoing expenses come out to about $6,200 and we clear about $9,400 and all that's left over goes toward debt pay down and eventually investing.. how is that not enough?! I mean its like 35% of my income! I'm getting depressed..
I still think you are fine. You are paying more toward your debt per month than most people take home in total pay.
Let me ask you this, once the debt is gone. How much are your necessary outgoing expenses and what does that leave you to play with? I think once you calculate that out, you'll be much happier.
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