Comments on: Have You Mastered These Three Foundations of Money?

By: J. Money

J. Money — Tue, 17 Jul 2018 17:50:24 +0000

In reply to Lvls.

Liking that game plan a lot! Real estate is a sure way to speed up the wealth! (well okay – not super speed up, but def. speed up over time and lots of patience, haha…)

By: Lvls

Lvls — Tue, 17 Jul 2018 15:41:51 +0000

I spent last year paying off debt and restructuring the house to a 15 yr mortgage. I have a day job that has salary, commish, and benefits. So, technically, I’m at 48% on my housing cost – with my day job *salary* only, so that may be a FAIL.

However, I keep a really lean budget – and all the commission from my day job goes to my 401(k) and other investments. I also have a side gig that is all commission and all of that goes to saving as well – except in a pinch with an unexpected expense.

I sold my car in January and have been car payment free since then. I live close to my day job so ride my bike or borrow my boyfriend’s car. I am planning to get a car in the next year but admittedly enjoy not having a car payment so I may delay the new car. I’d say that’s a PASS.

Career-wise – between the two jobs I get what I need – insurance, 401(k) and a steady salary, and commission between both to set up for the future. I wouldn’t say I love my day job, but it does serve a purpose. PASS.

I am hoping to be FI in the next 7 years. The house with the 15 year mortgage will evolve into an income property, as well as two others that are currently just supporting themselves with the rental incomes covering the mortgages barely. I’m also somewhat waiting for the next real estate downturn and hope to pick up another property so am keeping a portion of my investments fairly liquid/accessible.

By: J. Money

J. Money — Tue, 17 Jul 2018 11:42:23 +0000

In reply to Robyn. Oooooh killer!!!! Always impressed with people who can live off one income and bank the rest. Good for you guys! And I hope your teen gets off your plan soon, haha...

By: J. Money

J. Money — Tue, 17 Jul 2018 11:41:17 +0000

In reply to Vicky. I think it's time to start a mom blog and become a digital maven ;)

By: Robyn

Robyn — Mon, 16 Jul 2018 16:21:32 +0000

#1: Pass. We paid off the house this year, but if you figure Taxes, insurance and upkeep I would put us at 10%
#2 Pass. We have 3 cars and all are paid off, so just insurance costs here…but the teenager keeps this pricier that I would like.
#3 Pass: I’m in HR related field and am doing great on 401K, Restricted Stock Awards and Bonus front. My husband runs his own business from home and we consider his income as just savings…When he decided to go out on his own with a Partner we didn’t know the outcome, so we decided not to rely on his income, so it just hits our savings account… but he benefits well from being able to invest more in his 401K

By: Vicky

Vicky — Thu, 12 Jul 2018 15:17:08 +0000

#1: 21% of take home as renters based upon only rent (no utilities). We will be loosing my income in September when Baby #3 arrives because daycare for 2 kids under 3yrs (oldest is a teenager) out paces my salary. We luckily have to make little expense reductions to do this, but it will up our percentage up to 30%. We are working towards buying home within the next 2 years. Home prices (and rent prices for that matter) are increasing 4-7% per year in my area. I would love to keep it at 20% and do expect hubby to get income increases but it isn’t likely given the housing market and the fact that hubby is dead set on getting out of the apartment ASAP.
#2 Pass…currently. I drive a oldie but a goody and hubby drives a nice newish car, both paid off totally and we are saving for a new to us car to replace the oldie. Gonna try to stick with these 2 as long as possible, but with a graduating HS senior this coming year and 2 littles previously mentioned I don’t know how long we will be able to hold out. I can see us pulling a J.Money on this one!
#3 Pass/Fail. Hubby passes..IT cyber security for the win. I fail, the market here is very tech/pharma/healthcare oriented and saturated with general “jack of all” business majors such as myself so while I currently have a job/salary/401k it is fairly low paying and I will be leaving soon as noted above. I am not sure where I will go from here…got any suggestions!

By: Becky

Becky — Wed, 11 Jul 2018 19:59:36 +0000

In reply to J. Money. Very true. Slow and steady wins the race ;)

By: J. Money

J. Money — Wed, 11 Jul 2018 13:37:27 +0000

In reply to Charlie. Loving those $500 auto-savings!! That $hit's gonna add up!

By: Charlie

Charlie — Wed, 11 Jul 2018 00:26:02 +0000

Hey, J! Sorry for the late response on this — I don’t believe you’re a #FAIL on No. 1 and neither am I. I ran my rent twice against my take home pay — first time, including my $1400 a month going to my Roth 401(k), and my percent was 31%. However, when I included the Roth 401(k) back into the total of my take home pay – my percentage was 28%. While you live in the DC area, I’m in the North Jersey area — our rents are high!!! LOL! You’re certainly not living the high life, and neither am I in my one bedroom here in Little Ferry. But I am auto-saving $500 a check (paid bi-monthly) in addition to the Roth contribution as opposed to moving back to New York City where I would be adding a minimum of $450+ to my $1215 rent. For those under 20%, bravo!!!! But I believe it doesn’t take into factor major metropolitan cities.

By: Kelly

Kelly — Tue, 10 Jul 2018 21:06:18 +0000

I get 2/3. Housing is tricky because I rent in Boston (technically Cambridge). I actually got a good deal for the area, but it is more than 20 percent of my take home pay (after taxes, retirement, benefits, etc.). But I’m making 6 figures as an engineer in my 20s and maxing out my 401k, so being able to commute to work by subway in 30 to 40 minutes is worth dealing with the Boston rental market for now.