Re: Need a category called, "Rebuildin
g Your Savings"
11-12-2012 05:41 PM
Roarmeister - I had to read your email twice to make sure I understood it. We are paying cash as we go with the college. The young adult gets x amount of money per month and must figure out how to pay rent, cell phone, food, tuition, books, etc. He is not taking out any student loans. We aren't either. Our gift to the kids was to have four years of college paid for or x amount towards an education (whichever came first). For this kid - it's $600 a month. That's not a lot of money.
The youngest is going to school overseas. He just got approved for his visa. He has to have the visa in hand before the companies will hire him. (He's already applied and every place said show us your visa first. argh! But I understand that.)
The youngest has already entered into a house contract in the US. He pays us $100 a month to manage the property for him. He rents out part of the house and keeps a space for himself for when he is stateside. The rent barely covers the expenses, but he can't really raise rent if he wants long term renters. He also sets aside HALF the rent income into an escrow account to pay taxes, insurance, maintenance, HOA dues, etc. The kid is doing pretty well.
As for the $100 we pays us to manage his property - it goes into our savings account.
Repo-ed - So I guess if you figure the 5% we put into TSP, the 5% that the gov't matches, we are saving 10% of our income. Add to that the additional $100 we earn as property managers...
Bonuses? Ha! Gov't budget lock down. We haven't seen a payraise or a bonus or a cost of living increase in years. Dang Congress won't pass a budget...so for us, expenses continue to go up and our pay stays the same.
But if we did receive bonuses or payraises, yes, the money would go towards paying off the mortgage first, then into savings second. It's a great idea that we use to apply before we bought the house.
Thank you both for your suggestions.