Questions about Giving & Saving

[ksgrlnaz]

Question # 1

I send my mom $100 every month to help out with her living expenses. She is on disability and is unable to work. My bother and sister help out too.

She depends on the money so I am not willing to "cut" this as an extra from my budget. My question is where should it go? I am leaning towards Giving, but would appreciate any thoughts. I am trying to fit everything into one of the following categories:

Giving
Savings
Housing
Utilities
Food
Transportation
Clothing
Medical/Health
Personal
Recreation
Debts

Question # 2

I see that DR recommends 5% - 10% in Savings. Once we establish the Baby Emergency Fund do we contine to allocate 5% - 10% of our income to Savings (for Baby Step # 3 - Three to Six Months of Expenses) or do we stop all savings until we complete Baby Step # 2?

Question # 3

I work for the government (local level) and I have $x.xx coming out of each check and going into our retirement system - - nothing I can do about this one since it is required so I won't be stopping my retirement savings.

However, a few years back we were offered to have 0.5% of our salary put towards a 457 plan if we made a minimum contribution of $10 per paycheck and I am doing this. Is it absolutely necessary to stop this contribution to retirement? If I stop I will no longer be elibable for the City's contribution in the future.

Thanks so much! I got the TMMO yesterday and am reading reading reading . . . DH will start reading next.

Cathleen

[dcompton]

Considering the categories that you have, I don't see any place to put it except under giving. The others address your own immediate expenses, and to put it in any of those would skew any information the budget yields about what your actual living expenses are.

I am not an expert on DR - other will have "his" answer - but in my opinion, you should not stop the $10 contribution. It is pretty minimal, and wherever you are in the plan or on whatever plan anyone is, saving for retirement is really important. The match is small, but free money is free money.

[larabelle]

1.) I would put the $100 which you send to your mom under giving.
2.) I also did the DR plan and I established the Baby Emergency Fund of $1,000 and then stopped all savings and focused on completing Baby Step #2. I did not resume saving until after Baby Step #2 was completed. However many people on this forum discourage this.
3.) I would continue the $10 per paycheck toward the 457 plan.
Good Luck!!!

[Ali Lee]

....bless your heart for sending your mom money... what a loving child......................

[Cyrano]

giving money to your mom, will attract abundance in your life