Monday, January 20, 2014

Having Two Incomes, but Living on One

Having Two Incomes, but Living on One

By Keith Bunn Jr.
January 20, 2014

Question From Facebook

Two weeks ago, I was asked by a Facebook follower what I thought of live on one income and save the other one (their spouse's). Here is what I had to say...

I think if you can do that, that would be AWESOME! 

I think you should absolutely do this IF... 

1) You guys are debt free. No credit cards, car loans, student loans, etc... 

2) Have 3 to 6 months worth of expenses saved up in a SEPARATE account for a fully funded emergency fund.

3) You guys are already putting 15% of your household income into some kind of retirement funds. 401K's, 403B's, Roth's, etc...

4) You guys are fully funding your kids' college funds each year.

5) If you have a mortgage on your home, I would get that paid off a.s.a.p.

Once those things are done, I would do that in a heart beat! If you guys did that, you would have an unbelievable retirement! I'm a little jealous, LOL! Good for you guys!!!

Can You Do This?

Now, not everyone can do this. I just so happen to know some of their back ground story and I think they can do it. But the ones who can't, are the ones who still have debt. We would LOVE to do this ourselves, but we still have debt we need to pay off. Once that is done, it will free up our largest wealth building tool, which is our income. 

But as long as people keep believing they have to have a credit score, that debt, in any form, is what is needed to have a life in this culture, then your incomes will continue to be held down and you will continue to be a slave to the lender. 

Again, there is nothing credit can buy you that cash can't except a FICO Score, Instant Gratification, Risk, and Stress. And none of those things are worth jeopardizing your future for.

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