Dreaming

For many reasons, February is an expensive month for us. We're flying back to Michigan, so there's all of the costs involved with traveling- car rental, food on the road, luggage fees, pet hotel, etc. But we're also doing some improvements to our home there and getting it ready for the new tenants. Our budget for home improvements is $250 which is awfully low and will be a challenge to come in at.

Our Homeowner's Insurance on the above home is also due. Last year, it was $748, but our bill came and it was $350 more this year! Not sure why. I have to call around and see if I can find a cheaper quote.

My 6-month car insurance is also due- $223 but I plan to shop around on that as well b/c $450/year on a beat up old car like the one I drive seems a little steap.

But during a month where car insurance, homeowner's insurance, traveling, and home improvements all collide, there's something I keep reading in order to keep myself focused. It's easy in months like these to feel frustrated- there's so much money going out- and I feel like I'm paying everyone else but ourselves. There's one paragraph of Dave Rasmey's The Total Money Makeover book that really hits home for me.

Please take the time to read this-

"Would you dream with me for a moment? Dream that a twenty-seven year-old couple with average to below-average income commit to a Total money makeover. They get gazelle-intense, and in three years, by age thirty, they are at Step Four [no debt except house and 3-6 months of an emergency fund]. They invest 15 percent of their income in four types of growth-stock mutual funds with five- to ten-year track records. The average household income in America is $40,816 per year, according to the Census Bureau. Joe and Suzy Average would invest $6,000 (15 percent) per year or $500 per month. If you make $40,000 per year and have no payments except the house mortgage and live on a budget, can you invest $500 per month? Follow me here. If Joe and Suzy invest $500 per month with no match into Roth IRAs from age thirty to age seventy, they will have $5,882,386 tax-FREE! That is almost $6 million."

I love the above example b/c Michael and I are 27 years old and could be at Step Four before the age of 30 and we make twice what Joe and Suzy Average do. I know we can do this. I know it.

I'm not sure what I need to do to cite his book properly and give credit where it's due- but the author and title are above and it's on page 159...