To put it in Dave's terms: How much of your shovel are you utilizing?

**a.nonymous** · 09-08-2009, 10:51 AM

When I did my last update on debt repayments, I was at first a little bit dissappointed that I wasn't able to repay as much as the previous months - even though I knew that we're currently only living on one income, had a big move and all those things.

What made me feel better was, when I compared my "shovel utilization ratio". By that cryptic construct I mean the percentage of our income that went straight towards paying off debt.
I then uncovered that we used 30% of our income to pay down debt compared to a range of 20-25% previously when we were both working full time jobs.

Alright, now before I pat myself prematurely on the back, the main reason was that we had to save up a fair bit of cash for our move abroad, but still, it made me feel a tad better.

Of course, it seems logical that the bigger your 'shovel' is, the more you can put towards debt (also percentage wise), but still I think it's an interest measuring unit.

So, here's my question to you:
What is your shovel utilization ratio?

**Greebo** · 09-08-2009, 11:03 AM

Originally Posted by a.nonymous

Of course, it seems logical that the bigger your 'shovel' is, the more you can put towards debt (also percentage wise), but still I think it's an interest measuring unit.

One would think that - but the tendency is for expenses to rise to meet income, so I'd actually be surprised if the actual shovel %'s got much bigger as income went up.

**MaryCarney** · 09-08-2009, 03:59 PM

Originally Posted by a.nonymous

When I did my last update on debt repayments, I was at first a little bit dissappointed that I wasn't able to repay as much as the previous months - even though I knew that we're currently only living on one income, had a big move and all those things.

What made me feel better was, when I compared my "shovel utilization ratio". By that cryptic construct I mean the percentage of our income that went straight towards paying off debt.
I then uncovered that we used 30% of our income to pay down debt compared to a range of 20-25% previously when we were both working full time jobs.

Alright, now before I pat myself prematurely on the back, the main reason was that we had to save up a fair bit of cash for our move abroad, but still, it made me feel a tad better.

Of course, it seems logical that the bigger your 'shovel' is, the more you can put towards debt (also percentage wise), but still I think it's an interest measuring unit.

So, here's my question to you:
What is your shovel utilization ratio?

GREAT POST!!! What a great way to make comparisons of how hard you're working. I'll be interested to read responses. (Mine is 0 - as in no debt- but it was as high as 40% at times)

**danni** · 09-08-2009, 04:14 PM

We are at about 43%. You are right when you put into those terms it seems like we are accomplishing alot more.

**Denvergirlie** · 09-08-2009, 06:17 PM

Mine used to be as high as 57% of net income, but most months averaged around 48%. Of course now my answer would be 0% as I became debt free in August 2008

**larabelle** · 09-14-2009, 07:46 AM

Wow I double checked my figures my total was 67% for the month of August...No I could not even believe it!! I anticipate that it will be just as high this month. I can not say however that I have always contributed this much to my debt.
Boy once I become debt free and I am no longer sending my student loan all of that money....it will feel like I got a HUGE bonus.