Thursday, March 14, 2013

2013 predicted percentage and dreams

Today I was playing with some of our budget numbers.  Specifically, I wondered what percentage of our income is going to debt.  I looked at the raw numbers for this past year and it seemed like we were only paying down debt with 1/3rd of our take home income.  I am not sure how that worked out but it seemed low to me.  So I calculated our 2013 take home pay ($61,248) and the amount of debt we are planning to pay in 2013 ($32,761).  That equals 53% of our take home pay for debt reduction.  Another 10% goes to our tithe so we are living on 37% of our take home pay, or $22,661.

Once we're out of debt and save up our emergency fund we'll be able to divvy up our take home pay in an entirely new way.  Finally we'll get out of using our money on the past (student loans), instead of on the future and present.  Admittedly, the mortgage is debt for the present but it doesn't represent where we want to be now or the future.  If we magically got an influx of $90,000 today, how would we be living differently next month?
 We'd have $4885 of net income.  First, we would use the $90,000 to pay off our mortgage and both student loan providers.  Next, we would probably throw a party to celebrate.  Then we'd use the following 5 months to build up our emergency fund. So by autumn we'd have that completed and start putting 15% of our household gross income towards our Roth IRAs, which I don't actually have yet, and our 401(k)s.  We won't have kids; therefore, we won't have to fund a college investment account and our home will be paid off so we'd be living the dream of baby step 7.  By this time next year we'd have the money for our October 2015 France trip and would be saving up for a down payment on our future home and car replacement.

Wish I knew how to legally come across 90 grand by the time the weekend rolls in.  Heigh ho heigh ho, it's back to work I go....


  1. So... figured out how to legally come across $90k yet?

  2. Lol you're funny Gina. I like that you specified legally