I tend to send over 40% of our income towards debt. As a result I expect us to be rid of the debt by July. That said, I sometimes wonder if we focus on repaying debt so quickly that we forget to enjoy the here and now.
I am a big fan of the 50/30/20 budget but don't actually put it into practice. For one because my necessities don't require a whole 50% and for another reason is because we don't get close to even 20% on wants let alone 30%...
I have tried to loosen our purse strings a little so we can enjoy things but always feel guilty when I do.
What percentage of your income goes to paying off debt?
November 4th, 2009 at 07:18 pm
November 4th, 2009 at 07:47 pm 1257364079
it is too early (4am) here for me to be working out percentages
November 4th, 2009 at 07:48 pm 1257364081
November 4th, 2009 at 08:13 pm 1257365623
If you're like me, and I think many of us regulars here are, then we worry a lot about our debts. And even if we do decide it's OK to shift some debt-reduction money towards fun, I think deep down, you might not enjoy it. And when July comes around, you might kick yourself for wishing you paid off your debts instead of have it drag out for longer and still be in debt....
Of course, all this depends on each person's comfort level. Not everyone worries about debt as much as others, and if the numbers say it's OK, then I don't see why you can't live it up a little bit. Especially with us Fruggies, we have to make sure we have fun along the way too.
But I'll tell you one thing though. I absolutely do not regret paying off my debts as early as I did. Not for a single second. In fact, my only regret is not having paid it off even sooner.
November 4th, 2009 at 08:32 pm 1257366757
Whitestripe, believe it or not, I don't include repaying my mortgage or my student loan in savings, they are included in necessities because they are bills I pay. I don't even include my rare expense savings because that is meant to be spent on irregular bills (if someone billed me monthly, it would be a monthly bill so don't see why I shouldn't treat them as monthly).
Couponaddict, that would be my concern, not budgeting for fun and only for savings once the debt stops. I don't want to do that because that is a quick way of triggering my spending sprees.
November 4th, 2009 at 09:53 pm 1257371626
For me, I do feel guilty sometimes, allowing us to spend so much on fun. But it is MUCH less than we used to spend, and we watch every penny--we never spend money we don't have anymore. But my feeling is that we have a long road of debt repayment ahead of us, so I don't want to just completely cut out fun for 8-12 years; if it takes us 15-25 years to get completely out of debt including mortgages, but we get to have moderate fun the whole time, I think I can live with that.
But it is something I go back and forth on. Probably if it was just me I'd live a cheaper life, but I'd hate to deprive the other two wonderful people in my life of all material pleasures.
November 4th, 2009 at 11:10 pm 1257376257
You are spending some on fun - how about having saved for those recumbent bikes? That's fun. It may have taken a little to save for them, but now you'll enjoy them more since you paid for them up front.
I used to figure our budget on this premise 1)Past-Debt 2)Present-Living & Fun 3)Future-Retirement & Fun. It was never a hard and fast 50/30/20, but any way that helps you meet your goals.
Ask your family about their goals and you share your feelings. Together you all can come up with a plan that works for everyone.
November 4th, 2009 at 11:24 pm 1257377043
My DH has abdicated all final decisions regarding finances to me because I am better at making the money stretch to meet our goals. Incidentally, the trikes are something he really wants which is why I don't want to put them off. Its okay to put my stuff off because I have plenty to do but biking is his main form of entertainment.
November 4th, 2009 at 11:25 pm 1257377121
November 5th, 2009 at 01:12 am 1257383553
If it makes everyone miserable that's no good. Compromise is the name of the married game! After those trikes are bought you may have to remind him later, that those were part of the fun agreement now so you can pay down debt later.
Two months won't likely derail you for long, but if you're on a mission to pay off these stops for fun can be a real crimp in your style! I know because I was there, repeatedly. It just takes getting back to the task at hand and not taking on any more debt. Eventually you get there.
November 10th, 2009 at 04:59 am 1257829181
November 13th, 2009 at 10:46 pm 1258152382
This is all student loans so I'll be very glad to have that over with ASAP.