As I was tracking our budget in YNAB, I grew concerned that we seemed to be spending all of the $2,000 net that I'm bringing in each month. We hope to have another child, and I plan to stay home full time again for a year or two, so it's important to me that the extra money goes to things that can be cut out later.
It was really bothering me -- why wasn't there a big surplus in the budget -- until I realized that because my income looked pretty steady we decided to increase my husband's 401k contribution from 6% to 10%, and to contibute another 10% to the employee stock purchase plan (which if you sell the shares immediately is a guaranteed 15% return.)
So about $1600 is really going to savings, and the other $400+ is funding vacations, trips to visit family overseas, and the ever-present Misc line of the budget.
Where does the second income go?
March 2nd, 2008 at 02:33 pm
March 2nd, 2008 at 02:54 pm 1204469641
Is your husband putting the max he can into his 401k? Really something to consider with your tax situation. Unless the investment options are really horrid.
Our future plan when dh returns to work is hopefully get a 401k and max it out. If not, our plan is to divide the money in thirds - taxable investments, mortgage paydown, and fun money - 1/3 each. But we would get to KEEP a lot more if we can put it in a 401k.