(Closed) What is your expenses to income ratio? (Poll inside!)

posted 5 years ago in Married Life
  • poll: What is your expenses to income ratio?
    0-20% so lucky! : (8 votes)
    8 %
    21-40% Not bad! : (20 votes)
    19 %
    41-60% So so! : (34 votes)
    33 %
    61-80% kind of pushing the limit! : (31 votes)
    30 %
    81-100% Please help, we are drowning in debt lol! : (9 votes)
    9 %
    100% + We could really use more income! : (1 votes)
    1 %
  • Post # 32
    Member
    5884 posts
    Bee Keeper
    • Wedding: April 2013

     

    sway0060:  “Can I ask everyone a question who is answering here. I look at this question and think I would have no idea what our ratio would be I guess I just never think about how much is going in and out.If someone asked what our mortgage is I could tell you, heat bill I could tell you but honestly I don’t add things up. Bills get paid and that is the extent that I think about it. Is this weird?”

    I personally think that if you want to have a good degree of control over your financial situation, you should track all of your spending and earning.  I do this in a model that’s pretty similar to what Christy42213:  descrived.  I have a spreadsheet with several lines for income (salary, gifts, bonuses, interest payments recieved, etc), and several lines for expenses (rent, groceries, restaurants, shopping, utilities, gas, etc) and I enter the values every month working off my electronic statements. 

    This way, I’m able to very quickly see what my total average spending was per month so far in 2014, compare that to total average earnings, see how much money I’ve saved this year, etc.  I’ve been doign this since 2008 so I can actually compare all the way back for sevearl years and see different trends in my spending, earnings, etc.  I think it’s a very powerful way to take control of your finances.  I’m continually shocked by how many people really have no idea what their total expenses are and who consistently underbudget because they have no idea of what they are really spending right now. 

    YOu don’t even have to be moniacle like me and do this all in spreadsheets.  There are lot of online system that’ll do the work for you these days, such as mint.com.

    Post # 33
    Member
    5884 posts
    Bee Keeper
    • Wedding: April 2013

     

    RedWine13:  bkrocks13:  In this calc all your 401k contributions should count as income…

    Post # 34
    Member
    2573 posts
    Sugar bee

    This poll would kind of depend of your age as well a bit. Usually when you are in your early stages in life you are broke living pay check to paycheck…… then you make a decent living and buy a house, nice vehicle, get married , have kids ,etc you still don’t have a huge amount left over since you are just beginning to establish your life…… when you are a little further in life your kids are grown, major purchaces are paid down or paid off but still working ( maybe even further along in your job) you have a lot more free income.

     

    This isn’t always the case but I would probably say that a 24 year olds answer and a 44 year olds answer will vary

    Post # 35
    Member
    3378 posts
    Sugar bee
    • Wedding: December 2011

    sway0060:  I think it’s actually really important to know where your money is going and actually follow a budget – if you ever want to improve your financial situation, this is honestly one of the best ways to do it (creating a budget to know where your money should be going, then sticking to it so that you can live below your means and save).  I’d recommend the app that my husband and I use – YNAB (You Need A Budget).  It’s a really easy-to-use system, and since it can run on any smartphone there’s no excuse for not logging all your spending (it’s super easy to pull out your phone and take 30 seconds to log whatever you just spent).  We’re really just starting the effort to build savings, as we’ve spent the last 10 years of our life as students (just finished grad school), and this really helps.

    Post # 36
    Member
    2573 posts
    Sugar bee

     

    SadieBee:   Thank you for the response honestly it wouldn’t be that easy because my bf is away for 15 days at a time for work and trying to get him to follow a budget when he is working 16 plus hours a day out of town would be pretty much impossible. . I have brought up a budget before and he laughed. We put money into retirement and when we were saving up for our house we saved 26,000 in 3 months so money is not tight. Saving is good ( and we do save) but buying what we want when we want it is sooo nice lol.   It is very hard to say no to things 🙁

    Post # 37
    Member
    7977 posts
    Bumble Beekeeper
    • Wedding: July 2013 - UK

    I worked out that we have about 10% of our income left over each month, but we are definitely not drowing in debt. We are one of the most financially solvent couples we know…. I always thought we were doing really well.

    Post # 38
    Member
    1284 posts
    Bumble bee
    • Wedding: September 2014

    I included all of our regular monthly spending (including eating out, personal spending money, etc) but not any savings even though we plan and allocate saving like it is just another bill.  Ours is ~33% if you do it from take-home pay.  We take home around 6k a month.  About $1400 of our spending is totally non-negotiable, fixed expenses like rent, utilities, etc.  The other $600-$800 we spend is more flexible and can vary by month, like groceries, and some of it we could straight up eliminate if we had to.

    We are both 23-year-old college graduates with no student loans and full-time positions in our fields that we accepted before graduation.  We rent a house and we both drive our very first cars that we got when we were sixteen.  His gets like 35 mpg.  We are driving that thing until the wheels fall off, lol!

    We live a Dave Ramsey lifestyle (look him up!) so we pay for everything we can in actual paper money, we have a short-term emergency fund and we are building a longer-term one, we budget every dollar we spend, we make collective decisions about our budget together as a family unit, we treat our credit card like it’s a debit card and budget/balance it with the rest of our expenses, etc.

    Post # 39
    Member
    4426 posts
    Honey bee
    • Wedding: December 2013

    Right now we are at about 67%, but we are cutting out expenses left and right at this time to maximize our savings each month! For example, I just contacted AT&T to see if they could get me into a cheaper plan and I went from paying $102/month to $58/month. Doing little things like this to get rid of excess spending. But (and I’m not sure where this fits in) my personal monthly income is higher, but as a teacher 14.5% is taken right off the top of each paycheck and deposited directly into my retirement account…does that count in expenses each month? What we live off of in relation to my salary is the amount that is remaining after that retirement amount is taken out (I don’t even see it and have no control over it). 

    Post # 41
    Member
    4426 posts
    Honey bee
    • Wedding: December 2013

    candy11:  Exactly. We are getting much better about this, especially as my desire to have a baby sooner has hit. Groceries are a big sore spot for me. We’ve cut down our eating out dramatically and shop at our discount grocery store (LOVE IT)…so now instead of spending $250-$300 on groceries a month, we spend at most about $150. 

    Can anyone answer this car related question…

    I bough a brand new SUV (traded in my old vehicle as down payment) and after trade in and $1000 gift from the financing company, owed $22000. I pay $379.74 (the biggest expense I have each month) meaning that 8 months in I’ve paid just over $3000 off. If I were to trade in this vehicle for one of lesser value (but still good condition) what would that do for me? Does it change the loan at all? If the car I purchased was less than the value of the car what would that mean?

    (*This is totally hypothetical at this stage. I love this car and while it is expensive each month, I’m still putting a nice chunk-usually between 15%-20% of my paycheck-in savings each month. I don’t know if I would actually want to give it up, but wanted to get other opinions.)

    • This reply was modified 5 years, 5 months ago by  KatiePi.
    Post # 43
    Member
    1440 posts
    Bumble bee
    • Wedding: September 2010

    candy11:  emergency vs. Savings example…  I set aside money for anticipated car maintenance, so car has it’s own little budget and a tune up would come out of that. I set aside some money in emergency for the things that are not anticipated, like when I took off the side view mirror when learning to drive LOL.

    Post # 44
    Member
    910 posts
    Busy bee

    candy11:  I want to live where you both live!! We spend about $800 a month on groceries. $7000 combined income, $3000 – $4,000 in expenses. We really need to cut back on a lot of things. I try to buy mostly organic for food and personal products and it’s hard to do that low cost around here.

    Post # 45
    Member
    910 posts
    Busy bee

    Darling Husband invests whatever is left over btw. I wouldn’t have a clue what we have in savings. 

    The topic ‘What is your expenses to income ratio? (Poll inside!)’ is closed to new replies.

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