$3883.91 Balance Forward
+___4.94 Interest Added
$3883.91 New Balance
Viewing the 'Savings' Category
$3883.91 Balance Forward
$3569.33 Balance Forward
+___2.90 Interest Added
$3572.33 New Balance
This is interest from C1-360 and CU#2. CU#1 only does interest quarterly.
Amber was asking on her last post about how much is too much to save in your sinking funds and was it necessary to do that when you had an emergency fund, after listening to some speaker who did not think they were. My answer got so long I decided to just make it into my own post.
As for the sinking funds, they are very necessary. To me the emergency fund is for true emergencies, not the expected expenses that can come up over the course of a year or two. Emergencies like a tree falling on your house, flooding taking out the bottom floor of your house, a car accident that puts you in the hospital due to an uninsured motorist, your car engine just dying for no discernible reason, or losing your job and not being able to find work for six months (or longer). Not for the things you can really plan for.
What a person might do is sit down and figure out how much they really need in each fund. As for the house repair fund, I'd work towards having enough in there to replace your roof. It may be several years before you need to, but those are very expensive. You probably need to eventually have saved up $7 to $10K for that, which should also cover lesser things like painting, faucet or toilet repairs, deck or porch repairs, etc. Maybe more if you want to be replacing your carpets or windows at some point.
The amount in your car maintenance fund should probably be figured by how old your vehicle is and whether or not you have any large repairs that might be coming up. For me, my van is coming up on 8 years old and will likely need new brakes when we hit 50,000 miles, which is 5000 miles away. It is also probably going to need new tires at about the 60,000 mile mark. So I am working towards saving up about $2000 for that over the next two years. We don't put that much mileage on the van. We might need to replace a belt or a fuel pump along the way as we haven't had to so far.
I have an Appliance Fund in case one of those things go out. How old is your fridge, your dishwasher, your stove, and your washer and dryer? Having the money to go for that is a good idea if your appliances are old.
And of course having sinking funds for your car insurance, sorority dues, HOA dues if you have that, and any other six month or yearly expenses is just smart planning.
Having enough in a medical fund to pay your deductible for the year is a tremendous relief. To not get smacked upside the head with emergency medical expenses and have to worry about shelling out a bunch of money you do not have is life-altering. It is so much better than having to scrape for 3 to 12 months to get it all paid off and is worth it's weight in gold.
It is all about being prepared so these things don't destroy your finances. So figure out what works for you. Do not listen to pundits who are there to make a quick buck and may not have the facts and figures to back them up. Use common sense and logic and listen to people who have been there and who have done that instead.
$3516.95 Balance Forward
+___1.30 CU #1
$3520.83 New Balance
$310.15 Starting Balance
+_46.50 Coins and Ones
$356.65 New Balance
I wasn't sure I was going to make it over to the credit union to get this deposited today, but I did. I don't know how much longer I'll be able to keep adding to this or any savings.
$269.82 Starting Balance
+_40.33 Interest Added
$310.15 New Balance
$44,500.00 Starting Balance
+__,500.00 Amount Added
$45,000.00 New Balance
$19,807.97 Starting Balance
+__,_62.65 Refund Check from the ENT doctor
$19.870.62 New Balance
$129.38 to go to hit my milestone goal. I should hit $20K next Friday.
$19,715.97 Starting Balance
+__,_92.00 Amount Added
$19,807.97 New Balance
$192.03 left to go to hit my milestone goal of $20K. I will hit that this month. I am excited.
Between the Emergency Fund and the Down Payment Fund we have $64,523.97 in savings. I've never had so much savings in my life (not counting 401K). It is a good feeling, especially considering where we started.
Another deadline for the contract announcement has come and gone. It's very frustrating. But we could live on our savings if we have to, which is very comforting, even if I would hate to see it go.
$17,591.92 Starting Balance
+_2,000.00 Overtime Money Deposited
$19,591.92 New Balance
$408.08 left to hit my milestone goal of $20K. I don't know if I will hit it before I have to give my mother the $10K lump sum. It would be nice if I could just for the sake of doing it. But if not I'll have the new goal of getting it to $10K.
I ran the numbers and in order for me to hit my goal of $20,000 in the Emergency Fund by the end of 2016 I need to come up with $1672.68 total beyond the $150 per month that I deposit normally now. That is $209.08 a month extra I'd need to be saving, or a total of $359.08 a month.
With the interest I earn on my savings accounts of $35 or so a month, I can bring the $209.08 down to $174.08 extra each month to scrape up. I'm not sure if that is going to be doable. It would have been before the pay cut, but I don't know otherwise.
If I drop my goal for the year down to $19,000 I would only have to find an additional $84.08 a month, minus the $35 for interest each month, so $49.08. I usually manage to scrape an extra $50 or so together each month between farm sales, the coin jar, and any non-allocated money left at the end of each pay period. So I know I can actually hit the $19,000 goal as long as nothing unforeseen comes up.
I might be able to hit the $20K goal if I am able to sell some rabbits or rabbit meat often enough, but not just from general scrimping and saving.
I think I need to be realistic in having $19K be my goal for 2016, with $20K being more of a stretch goal that I can aim for, but not get discouraged if I can't actually hit that. If DH gets any over time, assuming his job stays stable, we can hit $20K, because then I can grab a $1000 chunk from the OT paycheck for the EF. But that is not something we can depend on.
I know he has one day of overtime coming up, but that is not anything like a full week of it. Still, that one day might help sway the balance towards hitting $20K. Or at least $19,500. I really, really, really want that $20K.
$20K means that we would have 5 months of tight living expenses or 6 months of extremely bare bones living expenses in the bank and from there it would mean we would probably have 6 months of tight living expenses by mid-2017 since part of the tax return would go into it. At which point I could head towards $30K, which would mean 6 months of comfortable living expenses or 7.5 months of tight living expenses or 10 months of bare bones living expenses.
Once I get to $24K I feel like I can start laddering six month CD's and start earning a little bit more interest than I am earning now.
All of that to say, $19K is my reasonable goal and $20K is my hopeful goal for this year.
$16,977.32 Starting Balance
+__,150.00 Monthly Deposit
$17,127.32 New Balance
So I've hit my second 2016 mini-goal of $17K. My next mini-goal is $18K. I have $872.68 to go for that. And $2,872.68 to go to hit my next milestone goal of $20K.
Last month I found that some money seemed to be missing from one of my savings accounts. I was sure I hadn't made any errors, and my paperwork supported me. I adjusted my numbers accordingly until it could get figured out.
Now that missing money is suddenly back in the account. No explanation and no one seems to know what I am talking about. So I adjusted the EF accordingly again now that it is back. So my new starting total for the EF has changed.
I have made $30 in farm sales so far this month. I sold two flats of strawberry plants for $20 and 2 dozen duck eggs for $10. Not bad. I also received a $12 check from Pinecone. All of that goes to the Emergency Fund. I am so close to $17K now I can taste it.
$16,892.30 Starting Balance
+__,_12.00 Pinecone Check
+__,_30.00 April Farm Sales
+__,_43.00 Leftover March Grocery Money
+__,___.02 CU #2 Interest Income
$16,977.32 New Balance
$22.68 to go to hit my second mini-goal of the year of $17,000.
$16,604.95 Starting Balance
+__,_35.78 C1-360 Interest
+__,__1.27 CU #1 Interest
$16,642.01 New Balance
$357.99 to go to hit my next mini-goal of $17K.
$41,000.00 Starting Balance
+__,500.00 Deposit Added
$41,500.00 New Balance
It was a little discouraging to only put $500 into savings this month for the down payment. We've been putting away $1500 most months this year, but we had a lot of medical bills with DS's surgery come through and all the medical stuff with DD. At least we have met the deductible now, so that'll ease up. Unfortunately there was a lot of stuff that was being processed all at once so some of it we got billed for anyway because it was all "in process." So we will get checks back from the doctors who end up getting paid by us and by the insurance.
Also, we won't be able to save $1500 each month going forward, either, because of the pay cut DH was forced to take. I really don't like the way the new budget looks. We will have to be very strict if we want to save $1000 per month. I am going to try to cook more from the pantry and freezers. We will have greens soon in the garden so that will help.
I think we are going to be stuck here through 2017 now. We just won't be able to save enough by the end of this year like I'd planned on before the pay cut. I know this is a lot of whining, I am just feeling frustrated and anxious. We still don't know if the company got the new contract, which means individual contracts are still up in the air. We should know soon, but even if they do get it, it does not mean the employees will get their old wages back.
Some days I really think about just moving to rural Idaho or Montana where the cost of living is so much cheaper. But I love where we live and I don't know if I would love Idaho or Montana the same way. They are both beautiful states, but they aren't home and that is a hard thing sometimes to get over.
I think I will settle down some after the contract news. Well, if it's good. If it's bad I'll freak out for a while. I hate uncertainty. It is the worst thing for me.