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  #1  
January 22nd, 2011, 07:55 PM
C&K'sMama's Avatar Platinum Supermommy
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What does it mean to not live from paycheck to paycheck... I mean I know it means that my account won't be at $0 each time a paycheck comes in, but it's the only way I've every lived and not sure how to live any other way. What do people do with money that doesn't get eaten by bills (and I"m totally not being sarcastic). I know I need to build an emergency fund (DH is military, so job security is pretty much a guarantee, and each of our cars are less than 3 years old, so I'm not too worried about it, but I figure if we have it might as well have the emergency fund).

We just found out that we'll be getting enough from our taxes to pay off ALL our credit cards (we don't have much debt, and we purposefully have them take out way too much in fed taxes so that we get this great little bonus at the beginning of the year). Hubby also just reenlisted which means we paid what we are upside down on my car and are getting rid of it and are getting a car that we can pay for in cash (it's even better than the car I have now, but no payments!)

Which means an extra $500 (I believe the number is actually higher) per month that we're not paying in bills. We will still have his truck payment, but that's the only debt (since we're military, we rent and have no plans of buying until he's retired)... I know at first we'll blow it on stuff (that we can pay for in cash) that we've wanted but have been putting off, but after that wears thin, what are supposed to do with it?

I'm obviously (and would never say) that we have too much money, but I only know how to spend excess money when it comes in lump sums like a tax return.
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Last edited by C&K'sMama; January 22nd, 2011 at 08:17 PM.
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  #2  
January 23rd, 2011, 02:32 PM
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I would build a small emergency fund first (1K or so) so there's no dependency on credit cards. Then focus on paying off any debt such as the truck loan you mentioned. Then start saving and saving and saving.

Also, do you realize if you have too much taken out for taxes and you get a large return that you are actually losing out on the the interest you could be earning on that money each and every month throughout the year?
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  #3  
January 23rd, 2011, 07:31 PM
C&K'sMama's Avatar Platinum Supermommy
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Quote:
Originally Posted by ~Kris~ View Post
Also, do you realize if you have too much taken out for taxes and you get a large return that you are actually losing out on the the interest you could be earning on that money each and every month throughout the year?
Yes, and hopefully we'll be able to change our practice on here, but so far any money that comes in goes immediately out, so if we were getting it in each check right now, the likelihood of it making to a savings account is low. This has been our safety net. Even though we're losing what we could be making in interest, until we get more stable I don't want to risk spending that money on disposable things (if that makes sense). Right now every penny goes to bills, if we had any extra it would be like a lottery to us (as silly as that sounds, we really do rarely have any money to spend on ourselves), so I'm not sure either of us would be good about doing the "right thing" with it yet.
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  #4  
January 24th, 2011, 06:24 AM
mommy2Breana+Brandon's Avatar Platinum Supermommy
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I agree with the person above. Start a small emergency fund and work from there.

Good Luck
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  #5  
January 24th, 2011, 01:20 PM
Lynsann's Avatar Platinum Supermommy
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Start an emergency fund, figure out a budget, and then stick with it. Everything on top of that can go into savings so you can get a good fund set up! Good luck! You sound like you're in a good spot and headed in the right direction.
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  #6  
January 24th, 2011, 07:28 PM
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Quote:
Originally Posted by C&K'sMama View Post
if we had any extra it would be like a lottery to us (as silly as that sounds, we really do rarely have any money to spend on ourselves), so I'm not sure either of us would be good about doing the "right thing" with it yet.
Glad you recognize this. Sounds like you're doing the best thing you can then.
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  #7  
February 7th, 2011, 04:16 AM
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I don't usually post in here, but I was reading this and thought I would put in my two cents. We are military also and to save some money from each pay, we have an allotment set up that automatically takes $150 out of each pay and on the first of each month it's deposited into our savings. We have found that it's the best way for us to save money because if doesn't ever go to our checking account, so we don't feel like we're missing it! That may be something for you to look into..
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  #8  
February 20th, 2011, 11:29 PM
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Extra money (after bills have been paid, savings account funded, etc.) is our investing money. For example, we (hubby and I) will be attending a 2 day conference to help our business grow. Airfare, hotel, conference costs and other associated costs are covered.

For us, having extra money lets us have treats every now and then. Sometimes it's a small treat and sometimes it's a big one. But it mostly goes toward our business, in some way.
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