Thu
1
Nov '07

October Finance Recap

October was an interesting month. We've made a lot of progress, but we're also relaxing a bit on some things. As usual, taxes and rent ate up about 40% of our income (which really isn't terrible). Gas was up, again. Groceries and Dinging Out were up slightly. However with winter coming, we'll probably see that go down a bit as we eat a lot of soup in the winter and soup is cheap. If you notice in the sidebar, the savings numbers actually went down. That's entirely because I made a decision to keep a buffer in the checking account. I've been a bit overly aggressive with moving extra money to Savings, so things have gotten a bit tight when small, unexpected things come up. So what I did was put $500 in the checking account, and then enter a $500 expense on Jan 1, 2007. So that $500 doesn't appear in my running balance. So there's always $500 more in the checking account than what I think there is. Just a safety net so that I can be more comfortable being aggressive with savings.

We'll finish Christmas and Vacation funds this month, and that will leave us with our more long-term goals for savings. Aiden's Headstone is a priority, and we'll probably have that money in place by the end of the year. (Obviously we'll then have to wait till at least spring to get it placed.) After that, one of the student loans needs to get paid off quickly, then it's retirement and house down payment to work on. With almost $40K in student loans still on the table, I'm happy to report that the net worth balance I'm showing is almost $3000 in the black! (granted most of that is in my 401k, so it's not accessible.

Obviously, we're still planning on a child somewhere in the not-too-distant future, so that will shuffle things up a bit. But now it's an issue of delaying our goals at worst, rather than having to choose between them.

Sun
29
Apr '07

Financial Goals

TBWITWW and I were talking over dinner the other night about our financial goals. How much money we would like to have available for ourselves for our various expenses and savings.

Here is what we've come up with so far:
Emergency Fund
This is the money to cover things like unplanned car repair, medical expenses, or job loss. The goal is to never touch this fund. Eventually, I'd like to get it up to a total of 6 months income replacement for both of us, but that's long-term.
Goal: $2500

Vacation Fund
Both of us are the sort who don't relax. We always have to have stuff to do. Even our relaxing usually consists of projects. Vacations allow us to change focus and make our "projects" more leisurely. To this end, we need vacations for mental health. This fund would be annual.
Goal: $1000

Down Payment
We want to buy a house. While a 10% down payement would be nice, I don't think it's likely given what we want in a home. What we really want is a single-family home with a yard and we want a home in the city. We know that realistically, we're looking at an either-or. However, we want the negotiation room that a good down payment will get us.
Goal: $10,000

Retirement
My own 401K is in good shape, however TBWITWW has very little in hers. She has not contributed to a retirement fund since we got married. Her current employer does not offer one, and we've not had much available to contribute. Now that money is becoming available in our budget, we need to start building a retirement fund for her.
Goal: Fully-Funded Roth IRA