While the notion that by the end of the summer I will have a job sounds appealing, it leaves hubby and I trying to decide what items that money will go towards. I have said in the past that we live quite comfortably on hubbys income alone. Being able to live on one income is an amazing thing with us only being in our 20’s and allows any income I make/may make to be extra (disposable) income.
What this means in terms of me working: Not needing my income will allow us to use the money I make for “extra” things. However, we have quite a few “extra” things we would like to take care of.
A few things we know we want to do with the income:
1. Purchase hubby’s car. We already have the money saved up to buy me a new car ($7,200) but we will not have enough to fully fund a second car for Colby. While we are hoping to keep my car under $5,000 in order to carry the remainder into hubbys car, we do know we will need at least $3-4,000 more saved up.
2. Put $10,000 in our account. While we have a sizeable amount in our account already, we want to add at least $10,000 more to it. This is mainly to help when we decide to start our family. This money in our account will act as a buffer while I stay home with our child (until they are in school) and provide us with money needed for extra expenses that come with having a child.
3. Start a house fund. Hubby and I hope within the next five years to start looking at homes to buy. However, while we would love to buy a home in five years, we are completely fine with renting until we feel we are 100% ready. Buying a home is a big commitment and while we cannot wait to own a home, we are nowhere near ready. That being said, we would love to start a house fund for when we are ready to buy. We would ultimately like to put down 20% if not more.
4. …and last but not least, we want to pay off our student loans. Hubby and I are lucky enough that our only debt is school loans and between the two of us for two degrees we owe less than $40,000. Each month we pay close to $500 towards our student loans (close to 5k for a year). We would love to free up that $500 a month to be put towards something else, like our baby or house fund.
Those are the main things that hubby and I want to do with my income once I start working. While we are able to do many of those things on hubbys income, having my income dedicated to nothing but these items will enable us to accomplish them at a much faster pace. Our main problem though seems to be figuring out which one to accomplish first.
As of right now this is the way we seem to be leaning…..
1. Buy hubby a car (he needs a car that actually goes in the winter, firebirds do not fare so well in those conditions lol)
2. Split income between putting money in bank/paying off debt (i.e. If I made $2,000 a month then 1k would go in our account and 1k would go towards debt)
3. House fund….in case you may not have realized it, our house fund is the least important item. While we cannot wait to own our own home and stop renting, we are perfectly happy as renters and would be fine with renting a house opposed to buying. This will be the last thing we use my income for most likely…..the only exception would be if we found a great deal on a house that we loved. But for now, it remains last on the list.
What would you do with extra disposable income?
Also, how many of you are a 1 income family and how does this work for you
and your financial goals?
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