Re: Need a category called, "Rebuildin
g Your Savings"
11-12-2012 03:41 AM
Thank you for your reply. Your suggestions are very wise.
Depending on your priorities and inclination may I suggest the following:
1. Make a budget -- I have one. We use it daily. Have for years. And I adjust it as needed, i.e. youngest started college this fall; i.e. house insurance went up $200 with policy renewal. I set aside money from each paycheck to pay for taxes, insurance, etc.
2. Pay your taxes (Give to Caesar what is Caesar's and to God what is God's) - we do this as well. We have to pay two state income taxes becuase DH is stationed in on place but we live over the border in another state. Work will ONLY take out their state taxes, no exception. So we have to set aside money each paycheck to save up to pay the other state's taxes. Hopefully, we can get a refund from the first state, put it in the tax account, and have to save a little less each paycheck.
3. Tithe for God, church and charity -- We have our charities that we donate to. Plus we both do volunteer work.
4. Pay your bills & mortgage -- That is our top priority - to pay off the mortgage in the next three years. Once the mortgage is paid off, we will have a little extra money. And when the last one is finished with four years of school (in four years), that will free up some money. Then we go back to living off of "retirement" paycheck. (I had estimated what our take home retirement pay will be and we try to live off of that budget. The extra money will go back into savings.)
5. Pay yourself 10% for savings (long term savings for retirement, house down payment, kids education, etc AND short term savings for vacations, large priced items AND a rainy day fund) - We use to do this. Right now, we do not feel like we can. The mortgage is x amount that we must pay each month. Son's college expenses are (literally) running us 3-8x what the mortgage is. We always pay the mortgage; we always pay the bills; we always pay son's expenses. There is, literally, no money left over. And if an expense is higher than budgeted, i.e. the electric bill, then I have to cut back on the food budget. We do put 5% into TSP and $50 into my annuity each paycheck. We do have an emergency fund locked up in CD's. We would have to be in dire straights to cash them out!
6. What you have left is your discretionary spending. Choose wisely. - Lol - discretionary spending?? What's that?? Lol. Seriously, I put aside x amount for gas. Whatever we don't use is left to pay for car maintenance. It has always worked out that I can cover car work. I put aside x amount for utilities. The majority of the time, there are a few dollars left over, which I leave in that account just in case we have a higher than expected bill. That has worked out well.
In the revised budget, we are ten dollars "short". So I took it out of the food budget. And, we will be able to save about $65 a paycheck. It is direct deposited into another account. We are super tight on funds, but we will make it. We always have.
Summer time does not change the finances either becuase we save a little each month for tuition and other school fees, so we will have the cash to pay those 2x a year costs. Actually, our gas bill (driving) goes up in the summer and our electric goes up in the fall (canning).
Hopefully, we will receive a tax refund and can put that into savings.