"Made a budget based on our take home pay, any overtime/bonus I got went into our emergency fund to make extra payments on our house or car loans to pay them off early. No loans? The extra money would go into savings. My wife's second job was for "fun" money, like trips and vacations. We decided to wait on kids until we were financially secure."
"Our oldest bought a house a number of years ago based on his and his wife's income including overtime. We got into a heated discussion with him about not doing this and the repercussions as overtime isn't guaranteed. He told us to shut up and he would ask for financial advice if he wanted it. His company then added another shift and so no overtime and yes, they lost the house. He was upset with us that we didn't help with by making their house payments."
A couple prioritized financial security, budgeting tightly and directing overtime and bonuses into an emergency fund and extra loan payments. The wife kept a second job for discretionary "fun" money and the couple delayed having children until they felt secure. They paid off four houses, rented three to cover mortgages, eliminated debt, and accumulated about $500,000 in savings plus retirement accounts and a pension. Their three adult children demonstrate poor money habits: the oldest overextended based on overtime and later lost a house and filed bankruptcy; the youngest spends on luxuries and likely lacks an emergency fund; the middle child requested an advance on a Christmas gift.
Read at Slate Magazine
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