They look like they’re doing pretty good from the outside. Their house is huge, their cars are sparkly, and they always seem to be eating out at the next new restaurant. But, take a look at their savings rate….1%. And the amount of money they give away? Is none. These people are looking good, but are living paycheck to paycheck and miserable. Do NOT aspire to be this family.
So if the above budget was too lavish, what’s a better approach? Here’s a much better method for allocating your spending:
Second, since you drive modest paid-for cars, you have no car payment (my wife and I had a combined car value of $4,000, which made it really easy to pay cash for them!).
Find out more about these budgets and more, from Derek at lifeandmyfinances.com