Percentage of My Income to Debt and Savings
October 17, 2009 4 Comments
Krystal at Give Me Back My Five Bucks had a few anonymous commenters complaining that all she does is talk about spending. So lately she’s been kinda sticking it to them by highlighting how much of her income is going to savings (over 1/3rd, btw – good for you Krystal!).
So I wanted to look at how much of my income was going to savings vs. debt.
I’m going to assume that my current income is the total of my main job + my part time teaching gig – since my money I make tutoring I use as my “fun fund”.
So my total monthly salary between these two jobs is: $2,958.
Currently I’m saving $100/month – or 3.4% of my salary. Starting next month I’ll be saving $340/month – or 11% of my salary.
I should mention that ON TOP of my salary, my main job also contributes 10% of my salary to a retirement fund for me. So I essentially get a 110% salary. So I am “saving” for retirement every month (around $300), just not actively at this time.
How much do I pay towards debt?
This past month I put $1,000 on my credit card and $117 on my student loan.
That’s right – I paid out 38% of my income last month to DEBT.
That’s a big chunk of my salary that I’d like to have for myself to spend how I please – or to save as I please. 😉
It is reassuring knowing that I’m essentially living on a 60% income – and COULD handle a pay decrease if I had to – but I just can’t wait for this debt to be paid off and to be able to build up my E-fund to $10,000 (an amount that I feel will be a good safety net for me).
That 38% could be used for a lot better things than paying down the mistakes of my past – and I can’t wait until I can put it to good work!