How much of your income do you save every month, how far below your means do you live, how much debt?

Answer 1

Ive been a mortgage broker for 2 years in COUNTRYWIDE HOME LOANS in Manhattan NY.

The easiest way to determine how your finances are is to simply...

#1 take your yearly income
#2 Divide that by 12 to find your monthly income.
#3 add up all your credit card debt's monthly payments to your utility bills

Once you find out how much money you have in DEBT per month, subtract that from your monthly income.

If the resultant number is more tha HALF of your monthly income, you owe too much in debt. It is better to have a DEBT TO INCOME RATIO of BELOW 50%.

You are suppossed to be paying out LESS THAN 50% of your monthly income to debts+utilities and you are suppossed to SPEND 30% of your monthly income to live and SAVE the remaining 20%.

Almost no American lives like this. Most Americans
Spend 75% on debts and utlities, and spend 75% to live (including 50% more from credit cards which only creates more debt).

Answer 2

i am currently saving 40% of my paycheck. I have no debts but the original mortgage on the house and I pay an extra $200/month on it each month(not included in the 40%).

I had cancer in 1996 and I was out of work most of the year. I went through all my savings and ran up about 18,000 in credit card debt.

I expect to have 1/2 million in my portfolio within 3 years. There is enough time for it to build into a million by the time I retire. So after 3 years, I should be able to spend a little more.

right now, I drive a beat up old 1991 pickup truck, no fancy electronic toys or wide screen tv's.

my company gives me a cell phone and laptop so I don't have to pay for that.

I live modestly, but I've never really been a big spender.

Answer 3

I save between 20 and 25% of my income every month, and I live at a level 30% below my income. Between mortgage and car payments, I have around $65K in debt, but my total assets are double that. I should be able to pay off the car loan in 2007, three years ahead of schedule. I have no revolving credit card debt; I pay the balance in full each month.

Answer 4

Those are good questions. Let me suggest a good program for anyone. Dave Ramsey wrote a book The Total Money Makeover at www.daveramsey.com

Although I was not desperately in debt, the book changed the way I look at money. Hope you read it.

Answer 5

the crooks...I mean creditors I owe. When the banking systems crash..you'll have nothing. I got property on a creek(water supply)..I have lots of fire wood(heat & cooking) generator to run my satelite(communication) lots of reserve fuel for when there is a rush on the gas stations...etc. money in cyberspace is dangerous these days...by solid resources...good luck.