So after the EF has gone from 12k (3 4k CDs) to 1k left, a plan is needed to rebuild it. If you need to know why the EF was reduced, read this
http://jim.savingadvice.com/2008/09/08/ef-went-from-12k-to-1...
To complicate matters, we have a vacation planned for July of 2009 which will cost ~$2500 to disneyworld and in Aug of 2009 we will have a payment on my wife's lease which I am estimating at $4k (went over on milage).
We had to lease because wife travels too much to make buying a good deal (IMO). We are talking about buying the next one in August, we will see.
The household budget has a 20% savings rate built right in (401k for both and Roths are maxed for both). That same budget has 5k in extra disposable income which may or may not get captured.
$2500 of that would be the months my wife gets paid 3 times.
We plan to sit down each Saturday for next 8 weeks to do the checkbook, As we come in underbudget on things, my intention is to move that money to the savings account. I expect to get about $100/month doing this.
We cancelled the home phone line- saves us another $100/month.
I will work doing taxes for HR Block (I hope) Jan-March and I am estimating I take home about 3k.
$1200 from phone
$1200 from being underbudget
$3k from second job
1k already in EF
$2400 from 2 extra paychecks
That is $8800 of the 12k needed.
Simple things get us 2/3 of the way there.
Rebuilding the EF- the plan
September 9th, 2008 at 12:10 pm
September 9th, 2008 at 12:39 pm
September 9th, 2008 at 12:53 pm
September 9th, 2008 at 03:44 pm
I've been married over 15 years. My husband & I have had fights, but we have never once had a fight over money. This is not to say that we always see eye-to-eye right off of the bat; in fact, we often disagree. (In my book, disagreements and fights are not the same.) But we always talk things out, and we both compromise.
If your wife is not as interested or motivated as you are regarding finances, I think you will have much greater success if you try to walk down the road with her as your partner, rather than trying to drag her kicking and screaming.
Try to think of it this way. Do you like to eat meat? What if your wife suddenly decided to become a health-nut vegetarian, and thought you should do the same? How would you feel if she suddenly stopped buying or cooking meat, and told you you were not "allowed" to eat it anymore? I'll bet you'd be sneaking off to Outback Steakhouse, wouldn't you? How would your wife need to approach the situation to persuade you to go vegetarian? That's the type of gentle, patient approach you might want to take with your wife.
Good luck to you , Jim. I really hope you two can work things out.
And BTW, I still highly recommend the "Smart Couples Finish Rich Workbook."
Take care.
September 9th, 2008 at 06:45 pm
September 10th, 2008 at 07:34 am
I voted no but my vote was not in the majority. I was told kids that young enter park for free.
We are doing this together- I wouldn't have it any other way. As long I see the checkbook each month, no issues from me.
September 10th, 2008 at 03:32 pm
September 10th, 2008 at 05:11 pm
Most of EF replacement will probably come from me doing tax returns. A few new bills popped in since I typed the above, so the budget is tight- but still saving 20%.