As you all know, Girl Ninja and I are on a mission to save like crazy for a down payment. We’ve been making some pretty serious progress and are just past half way to our $100,000 savings goal. If we end up buying a $350,000 house, we would be able to put $70,000 (20%) down and still have enough cash to furnish the place and maintain a reasonable E-fund (FYI: I’m assuming we won’t pay closing costs, since pretty much all sellers are paying them now). Our plan is simple, save. save. save.
Discretionary income, if you don’t already know, is the money you have leftover after paying for your essentials (things like bills, groceries, retirement contributions, etc). Sadly, many people live paycheck to paycheck, meaning they have no discretionary income. Every dollar they earn has to be paid to someone else. Fortunately, Girl Ninja and I have been able to keep our income up and our expenses down, leaving us with about $2,000 of discretionary income each month.
For the last 10 months of our marriage, I’ve been taking that money and throwing it in a high-interest (can you really call 1.1% high interest?) savings account. The balance has been steadily growing, which makes me a very happy Ninja. Each month that passes, brings us a little closer to that $100K mark.
It’s a good thing we have a goal to buy a house, otherwise I would have no idea what to do with our discretionary income. I guess we could start playing the short term investing game, buy nicer furniture, or go on lavish vacations every few months, but none of those things seem as exciting to me as having a fat chunk of change in the bank. Yeah, I don’t care what you think. Big savings accounts turn me on….meeeeow.
So now that you know what we’re doing with our discretionary income, it’s my turn to ask you a couple questions.
1. How much (if any) discretionary income do you have each month?
2. What are you doing with it? (Saving for a car? contributing more to retirement? planing to start a business?)