Off-The-Top Savings Vs Surplus Savings Analysis

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1. Difference between Off-the-Top Savings versus surplus savings:
Off-the-top savings, money that is taken away from your paycheck before you have access to it. It looks like it was never even there and is put away into savings before you can touch it.
Surplus savings, money that is left at the end of the month is put into a savings.
2. I believe that off-the-top savings works much better, since that money is put into savings before it be can counted into a monthly budget and it is money that one doesn’t have to think about. It is automatically taken out of a paycheck and put into a savings for the future. The surplus savings, doesn’t work very well for us. We always make excuses at the end of the month on what we need to buy with the money
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My husband has a small business and has to pay taxes every three month. This is an obligation that we have to fulfill in order to stay within the law and not get into trouble with the IRS o Insurance: this is an obligation for me. My assets need to be protected in case of an emergency, such as car wreck or house fire o Tuition: school tuition, either for private school or for college need to be covered before anything else is considered. This is an investment for the future, to get higher paying jobs and financial security.

7. Before buying a house really, consider the monthly mortgage payment. Work out a budget you feel comfortable with and do not go over the amount you set yourself for a mortgage payment. For example, in your budget before you bought a house you say “$1000 per month for our mortgage.” When you start looking for a house do not look at houses that would exceed that monthly amount, but stay within. If you already own a home, refinancing might be a good option for you. You could lower your interest rate, and therefore your monthly mortgage and save

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