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It's Working!

February 18th, 2013 at 07:01 pm

It's crazy how well just writing down our spending and having a spending plan has worked! So far this month we are 18 days in and have spent just $2,686 of our $8K monthly budget! I am so happy! The 8K is what I bring home each month. We are saving hubby's entire salary and the 8K even includes $2,500 from my salary going to savings.

Hubby and I are both in our 50s in our high earning years, about 10 years away from retirement. Unlike some of our friends who used increasing income to increase their lifestyles to exhorbitant levels, we are trying to realize the blessing of our higher income, live reasonably and save and invest toward retirement. We call this our "10 year plan."

This year is especially important as our goal is to save another $45K toward paying our tax bill to convert our real estate IRA into a ROTH IRA. If we do this, in retirement we won't have to pay any taxes on the rental income generated from the ROTH IRA account.

It's funny, but even though I have designated $150 fun money in the monthly spending plan for each of as an allowance and $200 a month each on clothes, knowing we have such a major savings goals makes me want to save everything I can toward it.

I really have plenty of clothes and except for a couple of pairs of summer sandals I can probably just live with what I have.

Since we started living with the spending plan, I have started feeling such a sense of control and peace about our finances. This is such a contrast to even a few months ago when I shopped on Ebay with a vengence and tried to ignore the monthly VISA bills as well as the many packages which came in each day. I get paid this Friday and will pay off the final $1,100 VISA BILL. HURRAY!!!!!!!

For me, spending can be quite addictive. I always need to remember to write down all my "numbers", not use credit and to take it one day at a time. I have had good, solvent periods before which ended. This time I truly want to change my lifestyle once and for all.

Thank you for your help in this effort God. I couldn't do it without you! Thank you also to all of you out there in internet land. Being accountable to you people I don't even know is helpful.

2 Responses to “It's Working!”

  1. snafu Says:

    WOW! Good on you, for making a plan, sticking to it and holding yourself accountable. I hope it's ok to push you a bit further by asking you to look at how your money is working for you. I too believe the market is oversold just now but suggest you track a couple of categories waiting for a pullback when the politicos cause upheaval or policy changes order interest rates to rise.

    You need to understand what you are buying in investments and why.

  2. SavingsQueen Says:

    Thanks Snafu! I appreciate your insight.

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