Happily Living off of 30% of our income
Sounds miserable doesn’t it? 30% of our income?!?!?!?!? It’s one of the best decisions my husband and I ever made. But what about fancy vacations and big monster TV’s and dining out luxuriously? Not anymore. We are finding out how to have more fun while on a budget and that happiness doesn’t equate having more “stuff.” According to this article half of Americans spend more than they earn and don’t even realize it…..yikes!!! Or as my mother would say “uy Dios mio.”
I was looking at our recent spending report this morning and was shocked that it got down to 30%! It used to be 40%. This 30% includes our mortgage, utilities, food, water, and all other expenses we use to live off of (clothing, spending money, insurance, 401 savings.) The other 70% comprises of 10% that we donate and 60% that we use for our mortgage debt reduction.
I used to think that as soon as we are done paying off our mortgage (hopefully by september of next year) that we would go back to our regular excessive spending habits and live a “normal” life. Hell no! It has now become our way of life. Want to go to the movies? Let’s use one of our gift cards first. Want to dine out tonight? Let’s see if there is a coupon.
We were a normal American married couple from that article: spending more then we earned! We have converted from the dark side over to the frugal side and so can you. The key thing is getting on a budget that works for you and your partner. What has worked for us is the program called YNAB (you need a budget.)
Getting on a budget has helped us to become a “team” and get on the same page with our spending and goals.
Questions for you: What is the percentage of your income that you are living off of? Do you feel the need to spend less then you are already? Is the American Dream to spend more then you earn and be happy doing it?
Disclaimer: YNAB does not pay me to promote them, I choose to because they have worked so well for us and many of our friends. They mainly advertise by word-of-mouth because their product is so awesome. If you click on the link you can get $6 off the software and I will also get $6 😉