CNN Money’s back in the Millionaire in the Making game with an article featuring Paul and Audrey Yazbeck. She’s an account and he’s in the military, and they earn $125,000 combined each year.
The couple emphasizes starting to save early on in life and budgeting to keep expenses down. A sidebar included with article breaks down the couple’s monthly budget.
| Income | $9,600 | 100% |
| Investments | ($3,150) | 33% |
| Taxes | ($1,150) | 12% |
| Mortgage | ($970) | 10% |
| Transportation | ($760) | 8% |
| Entertainment and Food | ($700) | 7% |
| Miscellaneous (Clothes, Gifts, Donations) | ($570) | 6% |
| Travel | ($420) | 4% |
| Bills | ($355) | 4% |
| Insurance | ($270) | 3% |
| Household | ($150) | 2% |
They still have about 12% of their income left over each month.
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1:08 pm (reply)
I notice in the article that their combined income is $125,000, but they chose to live on one income, saving his $50,000 last year. If the two of them can live on one income, then I should be able to live on half my salary. I’m up for the challenge!
2:19 pm (reply)
Gotta love how much they are saving!
7:32 pm (reply)
Huh. I don’t understand how they are only having to pay 12% taxes. I mean, yeah, she’s an accountant … but that seems awfully low to me!
12:38 am (reply)
That’s probably a sensible effective tax rate. Perhaps they plan their taxes well enough to owe or be owed very little when it comes time to file.
8:48 am (reply)
Texas has no state income tax, so that helps. However, 12% still sounds low. If I wanted to move back to TX, I guess I could be saving that much, but it’s not worth the tradeoffs. I couldn’t mortgage a trailer up here for that monthy payment.
11:00 am (reply)
I love reading these “Millionaire” posts. I wish that CNNMoney would put one out each day, but I suppose they’d run out of potential millionaires pretty fast.
I think they should also highlight couples in trouble and then help them figure out how to move forward. I find that reading about others finances is very interesting
Hazzard
2:49 pm (reply)
I guess if I made as much as $9600 per month I’d be on my way to millionaire status, too. The problem is that most Americans don’t make even $1500 per month!
Not to say that you can’t save money but it’ll, definitely, take longer to become a millionaire. On top of that they’re combine income is 125,000! This article is for yuppies.
8:25 pm (reply)
Since I serve in the military, about 1/3 my income is tax-free. Military pay is broken down into Base Pay, BAH, and BAS. BAH & BAS are tax-free and total about $1400 a month. I was also deployed to Iraq for 3 months in 2005, and all income is tax-free while in a combat zone.
$125,000-16800(BAH/BAS)-28000(401ks)-9000(3 months tax-free)
=~71000 taxable income
9:49 pm (reply)
Hi, Paul. Thanks so much for the comment. The housing and food allowances in the military are sure to be very helpful.
5:43 pm (reply)
Our household income is aprox. $150k and our effective tax rate is about 12-13%. After the standard deduction and a couple other deductions, 12% total tax on their income sounds pretty accurate.
7:09 am (reply)
Hell, I’d save a lot too if my mortgage was only $970/month. 10% of income going to housing is way below average.