I remember reading somewhere that something like 40% of all Americans live paycheck to paycheck. I believe it. Just about everybody I know does. I think a lot of it has to do with the job market, the fact that the cost of living increases daily and wages don't, and the exorbitant prices we pay at the pump.
Lucky for us, my husband is in the military. He gets pay increases yearly, and with advance in rank (he just started getting paid for 1st class this month). We're fortunate enough that I am able to stay home with the kids (2) and work whenever I feel like it from right where I'm sitting, taking calls for ShopNBC.
We're still a paycheck to paycheck family. I don't see that changing until I'm able to go back to school and get into the workforce once both the kids are in school.
Anyway. We have some goals. First and foremost, we'd like to buy a house. Another benefit of being in the military is being able to take advantage of a VA Home Loan. We'll get an excellent rate, and not have to come up with anything for a down payment. And with the housing market the way it is now and what's about to happen to it over the next few months, the chances of us having to pay closing costs is slim. BUT one of our goals is still to have $10,000+ when we're ready to buy.
Another goal is to have $3000 in savings.
And finally, we'd like to have $1000 set aside for fun, so we don't feel bad for pulling money out. **idea taken from krystal at Give Me Back My Five Bucks.
To accomplish these goals, I opened a savings account with ING Direct that has a MUCH higher interest rate than I'm getting at Bank of America. The money I'll be socking away I get from 4 sources.
1. DH gives me $800/month to manage the bills. The money I have left over can be split between savings and checking (for incidentals).
2. I get $400/month in child support for my oldest. Pretty much all of that can be saved.
3. $20-120/month from my random work schedule.
4. Other - Gift money, and lately checks from accounts that have been overpaid.
Further benefits of being a military family include not having to worry as much about retirement...after he's done his 20 years in (he's working towards year 11) we'll be getting almost $5000+ monthly (that figure will increase as his rank increases). Of course, I'll be adding to that figure as I plan to start an IRA once I join the work force.
We also don't have worry so much about unexpected medical expenses, as servicemembers and their families have excellent coverage.
