I had a question about the $24,000 income upon which I’m basing our savings goal. I am the stay-at-home mom of two small people – a 4 year old boy, Peanut, and 16 month old girl, Sweet Pea – which has great benefits to our family, but income isn’t one of them! Money that I bring into the family isn’t included in the $24,000 estimate, as I don’t know how much I will earn. I’ll post as I earn, though, and keep the savings goal up to date.
My husband is a small business owner and currently takes a salary of about $18,000 a year (gross) for 2010, after quite a substantial pay cut to make ends meet for the business. There is a possibility that as business increases, our income will as well, but I’m not counting on it.
We will also get the Earned Income Tax Credit of about $4,000 and the Child Tax Credit of $2,000 for our two kids. They are included in the $24,000 estimate, but we don’t use them for month-to-month expenses. Last year they paid off medical expenses, and this year, part will pay off the car and part will go into savings.
I admit up front that by the end of 2010, the $6,000 saved may not be a quarter of the actual money that enters our lives throughout the year. The goal stands, though, as it is a quarter of our anticipated income, and 3 months’ worth of living expenses to have on hand in case of emergency.
The Goals and Progress page has been updated with my current savings progress. I have saved $213.01 as of this morning!