Hello, im kind of new to MMM concepts and trying to get to a decent saving rates,
but the question is,
how do you account for mortgage, specially if my mortgage is on a high interest rate ( 9%) due to living outside of US ? am i on the right path here?
i currently spend about 43% of my after tax money on my mortgage, im planning to increase that to 61% in order to finish in the next 7 years...
that leaves me with 39% of my income ... so i have only been saving 8-7% ....the rest is family spending...( kids tuition, groceries, bills, etc)
it is hard translating all of my expenses to us dollars to match up with your money saving scenarios and case studies, also different cost of living over here.
but it must be something like this.
We are a family of 4, i have a 5 year old and a new born.
After tax income 82K
income 6.8K per month
mortgage 3K per month
mortage + 1.2K per month more to finish off in 7 years
tuition 500
house maintenance 100
utilities 200
internet 40
grocery 400
entertainment 400
car 1 insurance 100
car 2 insurance 100
other taxes 80
cell phone 40
gifts 40
savings 600
am i on the right path here? 7 years to finish off the house seems like an eternity really.. and to think that ill start saving for my retirement only after that...