I was running the numbers yesterday to see when Todd and I will be able to go down to a one income family. I got so sad, because I dont see how it is possible for us to ever be a one income family. I hate to think that we spend everything that we earn...even when we are debt free (but the house).
By the end of March, we will owe mid $2,000 on our last credit card debt. We have paid off nearly $900/month in revolving debt in the past year and a half which is a huge feat! However, even with that $900/month nearly freed up, we still have alot of things we want to do.
After our last debt is paid off, we will secure 1 year's worth of the bi-yearly & yearly bills ($5,000). We will also save up an additional $6,000 to use as 3 month's living expenses. Between the "bi-yearly" payments and 3 month's living expenses, we will have enough money to actually live off of if something were to happen for 6 months.
Once that is taken care of, we want to:
1.) Start investing $500/month into a Roth IRA (this along with what we contribute at work with our employers would be 15% of our income)
2.) Save for our next vehicle (Goal: $12,000)
3.) Add a 1 1/2 car garage onto our house for hubby to use as his "workshop" and tear down the house next door.
On top of all this, start a family.
So...my question is, how do you do it?
I know there are a few stay at home mom's out there that read the blog, and some with very limited income.
I understand that we dont NEED a $12,000 vehicle. We most likely wont even "NEED" a vehicle for the next 5-10 years (hopefully)! But this is still looming in my mind, especially seeing as we drive so much.
And the house next door houses alot of hubby's tools and welding materials. There is a hole in the roof and it is caving in. Before long, the house will fall down around all of hubby's equipment. We need to really consider getting it taken down, but we also need to find a home for some of our belongings and his equipment. We are planning on going through and getting rid of alot of items, but we will still need to store some items.
Any suggestions and criticism is welcome.
I just dont see how all of this is possible on ONE income.