This is the time in our show when we talk about budgeting! Oh, joy.

I saw an article today (The Crossover Point) that got us thinking about finances again. I think Kate and I have done fairly well at creating a budget and socking away cash while we still have two full-time salaries… but we’re lacking in the long-term category. It’s true, I do have a second house in California that I co-own with my friend Eric, but that’s not turning out like we thought it would, so can’t really count on that making us money. Then there’s our savings account. We opened an HSBC Online Savings account shortly after we got married, and have be throwing money at it ever since. It’s been a great start (I highly recommend you check it out. Currently it’s at 5.05%), however it’s not an ideal solution for long-term investing.

My “non-profit” employer may pay fairly well (still not enough for us to live just on my salary) but benefits are slim compared to the corporate world (i.e. – no retirement or investment options). Don’t think it’s in the cards to look for another job just yet (praying about that one), so we’ll have to work with what we’ve got.

Anywho, back to this article on crossover points. It’s pretty simple: spend less than you make, and invest the difference. Eventually, if you’re investments will be bringing in more than you make at your job. Sounds nice in theory, but practice is another ballgame… especially when you contemplate the loss of Kate’s salary when we decide to start the family. Sure we can scrounge together some money to invest every month, but the problem is that amount will likely be so low that our Crossover point doesn’t come until we’re 200.

Conclusion? I think we need to figure out our goals. Do we go hard-core savings, or do an all-out search for that super high-return investment, or something else all together. I’m hoping that by throwing this out there, it’ll help me keep the conversation going on in my head.

Thoughts? post a comment.