Re: Spinoff to the income question

This is what we do and it works well for us. I put the max that I can into my 401k (and the company matches up to a % - the amount escapes me at the moment) and the rest of my salary goes into savings. DHs salary is broken up where he also contributes the max to his 401k, bills (mortgage, etc) are paid and the rest goes into the house savings as well as an additional savings plus some stocks.

We live comfortably and within our means...no car payments - but we're shopping for a new car for me to buy (not lease). We've been doing this for a few years now...and were able to buy our house (in '06) based on 1 salary so that we have the option for me to stay home once the little one arrives.

Message edited 2/10/2008 12:20:40 PM.

Re: Spinoff to the income question

That is essientially what we do too. My 401K is maxed - the rest of my salary goes into our savings accounts - 1 is for home improvements and emergencies - the other for the kids/college/wedding fund. I also have a seperate IRA and my DH has his 401K maxed. We also pay alot extra towards our mortgage every month, but Dh's salary cover's that and the bills.
We have 2 goals:
1 - to pay this house off in 10 years.
2- to have enough $ in retirement to actually enjoy those years.

I don't drive a BMW or wear designer clothes, but we live in a nice area and we are comfortable.