Since then, I've started some part time work that has brought in additional money. Since it's a contract type job, I save most of it, particularly to account for taxes and expenses and such, and am saving in case I need to purchase a new car for that work (since it requires a lot of driving). We do use some of that money for spending if we want to, and I also invest a portion in my ROTH IRA.
So, the topic of this post is related to my wife and the possibility of her starting a part-time job. Now, the job doesn't pay a whole lot, and it is around 10-15 hours a week, but it works out to around $600 (net) a month. So, this brings us to the discussion of how to budget this additional money. My recommendation, I think, would be to budget percentages, but for things that do not increase or "Standard of Spending". I would propose something like:
- 20% for work related expenses, including gas, clothing, food
- 20% towards retirement IRA (ROTH or Traditional)
- 20% towards the big goal we're working on (currently mortgage payment)
- 20% towards personal savings
- 20% for one of our large sinking funds (car replacement, home repair, etc)
We'll see!
