A couple weeks back I posted an update on our debt progress. From 11/2012 - 11/2013 we paid off almost $35,000 in debt. At this point in our lives, debt means mortgage debt either on our primary home or our three investment properties or our piece of land.
I didn't think much about that number, except I liked it because I like round numbers. But, going back through our networthiq.com numbers I realized that our debt progress in 2013 took an unusual jump (thankfully in the right direction).
11/2012 - 11/2013 - @$35,000
11/2011 - 11/2012 - @$22,000
11/2010 - 11/2011 - @$20,000
11/2009 - 11/2010 - @$19,500
11/2008 - 11/2009 - @$19,000
I'm sure you can see that from 2008-2012 there was a gradual and upward trend on the amount of debt we killed each year. And then, all of sudden, whammo, this year a thirteen thousand increase. Even putting aside the mortgage principal prepayment goal of $5,000 (which was also a goal last year and the year before), I am surprised by this dramatic forward progress. I'm going to have to further investigate the numbers, but I'm assuming this year's dramatic advance is as a result of our primary home refinance, which closed last quarter of 2012, in which we shortened our term and got a reduced rate of 2.75%.
Showing posts with label 2012 Plan. Show all posts
Showing posts with label 2012 Plan. Show all posts
Thursday, November 21, 2013
Tuesday, September 17, 2013
2008 - 2013 The Great Recession Check Up - Part II
Yearly Savings Goals
In 2008, we undertook our first annual savings goal, and saved $50,000 (even with my big pay cut). In 2009, we saved slightly more at $50,168. In 2010, we had a bit of a backslide, but we saved $49,325. In 2011, we increased our annual savings by $10,000 and saved $60,060. In 2012, we saved slightly more and saved $62,446.
Retirement Savings
In January 2008, we had a combined $245,795 in 401k savings. Most of that savings, $150,000+, was in my 401k. As of September 2013, we have a combined $606,324 in 401k savings. And, our 401k savings is basically split between the two of us which means Mr. Sam has made significant progress in adding to his 401k savings. The dramatic increase in 401k savings over the past 5 years is due in large part to (1) each of us maxing out our 401k savings year over year; (2) Mr. Sam's awesome match at his prior employer in that he was getting a 20% match for 5 years; (3) continuing to regularly invest in stock based mutual funds during and after the great recession which meant that we bought some great bargains; and (4) the overall recovery of the economy.
In January 2008, we had a combined $7,217 in IRA savings. At that point, all of our IRA savings was under my name. As of September 2013, we have a combined $125,510 in IRA savings. The dramatic increase in IRA savings is due to (1) each of us maxing out our IRA savings year over year; (2) buying stocks at super bargain prices during 2008 and 2009; (3) the overall recovery of the economy.
Friday, January 25, 2013
An Apple A Day
In March 2009, when the stock market was in the pits, I bought some Apple stock. At the time it was priced around $100 and I bought 25 or so shares (a $3000 investment). Well that Apple stock did tremendously well, in fact many stocks purchased in 2009 did were winners, because the market has, overall, gone up.
As an aside, we only buy individual stocks in our IRAs, so that is $5,000 for each of us per year in stock purchases (now $5,500).
If you follow the market or new regarding the market, you probably know that Apple has been down from a high of $700 per share down to a low of $437. I did some research and, since I just funded my 2012 IRA, I decided to buy more Apple stock. Whether or not that was the right decision is not the point of this post. So I picked a limit order price of $428 earlier this week and put in an order for a few more shares. But, instead today I decided I couldn't hold out anymore and switched my limit order to a market order (meaning I was going to buy at whatever the market price was that day) and purchased my shares today at $451 per share.
This is not the first time I've switched a limit order to a market order and I need to figure out why I can't wait to see if the stock price comes down to my limit order price. So, I'm posting this to remind myself to watch the Apple price and see if it comes down to my original limit order price or not.
As an aside, we only buy individual stocks in our IRAs, so that is $5,000 for each of us per year in stock purchases (now $5,500).
If you follow the market or new regarding the market, you probably know that Apple has been down from a high of $700 per share down to a low of $437. I did some research and, since I just funded my 2012 IRA, I decided to buy more Apple stock. Whether or not that was the right decision is not the point of this post. So I picked a limit order price of $428 earlier this week and put in an order for a few more shares. But, instead today I decided I couldn't hold out anymore and switched my limit order to a market order (meaning I was going to buy at whatever the market price was that day) and purchased my shares today at $451 per share.
This is not the first time I've switched a limit order to a market order and I need to figure out why I can't wait to see if the stock price comes down to my limit order price. So, I'm posting this to remind myself to watch the Apple price and see if it comes down to my original limit order price or not.
Wednesday, January 23, 2013
Insurance Homework - Follow Up
Six months or so ago I posted about how we were in the process of obtaining life insurance. And in September, I posted information about an umbrella insurance policy we were investigating.
I pleased to report we can cross these tasks off our "to do" list.
Regarding life insurance, we each obtained $500,000, 20 year term life insurance policy through the private market. I have a $500,000 life insurance policy through work which is very reasonably priced. When open enrollment comes around in December 2013 I understand that I can obtain a similar policy on Mr. Sam at similar discounted rates. So as of now, I have $1 million in life insurance and Mr. Sam has $500,000 in life insurance but we will increase that to $1 million early next year.
As for the umbrella policy, as I previously posted, this process was complicated by the fact that three of our properties are insured through the Florida state insurer of last resort, Citizens. Citizens insurance policies only provide $100,000 in liability coverage so we had to first obtain a "wrap" policy to increase our liability coverage from $100,000 to $300,000 for these three properties and then we had to obtain the umbrella policy.
We also ended up not including our property up north in our umbrella policy because it was going to cost us a almost $1000 to obtain a regular insurance policy before we obtained the umbrella policy. Since our property up north has no structure on it, we believe the risk of someone injuring themselves on our property is very low. Since there is no structure on the property anyone on the property is not an invitee and is trespassing, which while that doesn't mean there is no liability risk, the risk is pretty low.
So overall our insurance costs are going up, but we ended up saving about $1000 per year when we combined our car insurance policies and moved to a new company (we also increased our coverage) last year. As such, the money saved in our car insurance category is going to cover our umbrella and wrap policies.
I pleased to report we can cross these tasks off our "to do" list.
Regarding life insurance, we each obtained $500,000, 20 year term life insurance policy through the private market. I have a $500,000 life insurance policy through work which is very reasonably priced. When open enrollment comes around in December 2013 I understand that I can obtain a similar policy on Mr. Sam at similar discounted rates. So as of now, I have $1 million in life insurance and Mr. Sam has $500,000 in life insurance but we will increase that to $1 million early next year.
As for the umbrella policy, as I previously posted, this process was complicated by the fact that three of our properties are insured through the Florida state insurer of last resort, Citizens. Citizens insurance policies only provide $100,000 in liability coverage so we had to first obtain a "wrap" policy to increase our liability coverage from $100,000 to $300,000 for these three properties and then we had to obtain the umbrella policy.
We also ended up not including our property up north in our umbrella policy because it was going to cost us a almost $1000 to obtain a regular insurance policy before we obtained the umbrella policy. Since our property up north has no structure on it, we believe the risk of someone injuring themselves on our property is very low. Since there is no structure on the property anyone on the property is not an invitee and is trespassing, which while that doesn't mean there is no liability risk, the risk is pretty low.
So overall our insurance costs are going up, but we ended up saving about $1000 per year when we combined our car insurance policies and moved to a new company (we also increased our coverage) last year. As such, the money saved in our car insurance category is going to cover our umbrella and wrap policies.
Tuesday, January 8, 2013
401k Spillover
In December 2012, after Mr. Sam had maxed out his 401k, I noticed that he was still contributing to his 401k in something called an "after-tax option."
We both thought the "after-tax option" was his Roth 401k option. I was certain that he couldn't go beyond the contribution limit of $17,000 between his regular 401k and his Roth 401k. And, I was correct, the 2012 contribution limit of $17,000 applies both to the 401k and the Roth 401k or a combination of contributions to both. So, I promptly freaked out as I was concerned that he had gone above and beyond the 2012 contribution limits and we were going to be back on the naughty list for the IRS (we previously were audited).
So three calls to Fidelity later and we learned that Mr. Sam's company offers an after-tax spillover contribution option in its 401k. What that means, is that Mr. Sam can max out his 401k with pre-tax dollars up to the contribution limit of $17,000 ($17,500 in 2013) and then he can continue contributing to his 401k with after tax dollars up to a maximum of $50,000.
This is one of those retirement options that most people have never heard about. So, why would we want to put more after-tax money into Mr. Sam's 401k? For us, the big advantage is the company match. Mr. Sam gets a great match and that match continues with the after-tax spillover contribution. So for each extra dollar he puts in he gets an immediate 20% return. While, his match is in company stock, since he is vested he can sell that stock at any point.
Now that we know about this option, we need to figure out how we better take advantage of this investment option in 2013.
Have you heard about the after-tax spillover? Do you have that option in your plan? If yes, do you use it?
We both thought the "after-tax option" was his Roth 401k option. I was certain that he couldn't go beyond the contribution limit of $17,000 between his regular 401k and his Roth 401k. And, I was correct, the 2012 contribution limit of $17,000 applies both to the 401k and the Roth 401k or a combination of contributions to both. So, I promptly freaked out as I was concerned that he had gone above and beyond the 2012 contribution limits and we were going to be back on the naughty list for the IRS (we previously were audited).
So three calls to Fidelity later and we learned that Mr. Sam's company offers an after-tax spillover contribution option in its 401k. What that means, is that Mr. Sam can max out his 401k with pre-tax dollars up to the contribution limit of $17,000 ($17,500 in 2013) and then he can continue contributing to his 401k with after tax dollars up to a maximum of $50,000.
This is one of those retirement options that most people have never heard about. So, why would we want to put more after-tax money into Mr. Sam's 401k? For us, the big advantage is the company match. Mr. Sam gets a great match and that match continues with the after-tax spillover contribution. So for each extra dollar he puts in he gets an immediate 20% return. While, his match is in company stock, since he is vested he can sell that stock at any point.
Now that we know about this option, we need to figure out how we better take advantage of this investment option in 2013.
Have you heard about the after-tax spillover? Do you have that option in your plan? If yes, do you use it?
Friday, January 4, 2013
Happy New Year!
(1) Max out 401k(s) - $34,000 (100%)(goal is $34,000)
(2) Max out IRA(s) - $10,000 (100%)(goal is $10,000)
(3) Add to e/r fund - $10,000 (96%)(goal is $10,000)
(4) Pay down mortgage - $3,741 (75%)(goal is $5,000)
(5) House projects - $1,600 (32%)(goal is $5,000)
(6) Trading account fund - $3,105 (62%)(goal is $5,000)
Total - $62,446 (91%)
Happy new year to you and yours.
I've tallied our final numbers and I'm happy to report that we completed several of our 2012 savings goals. First, we maxed out our tax advantaged savings opportunities by (1) maxing out our respective 401k plans and (2) maxing out our 2012 non-deductible IRAs. Additionally, we added $3691 to Mr. Sam's work retirement account via his spillover election.* And, as a result, Mr. Sam collected $4,823 in company match (the match monies are not captured in our savings calculation).
Additionally, we completed our goal to add another $10,000 to our emergency fund savings. We also put money towards paying down our mortgage and towards our house project fund.
While, we fell about $6500 short on our 2012 goals I am pleased with our overall progress. In addition to saving almost $62,500, we also refinanced our mortgage on our primary home (which will save us $180,000) and we spent about $15,000 on Mr. Sam's certification classes.
How did you do on your 2012 personal finance goals?
*More on this spillover option here.
Thursday, December 13, 2012
2012 Savings Goal - Update
(1) Max out 401k(s) - $33,293 (98%)(goal is $34,000)
(2) Max out IRA(s) - $10,000 (100%)(goal is $10,000)
(3) Add to e/r fund - $9,600 (96%)(goal is $10,000)
(4) Pay down mortgage - $2,490 (50%)(goal is $5,000)
(4)(a) Savings for goal (4) - $1,250
(5) House projects - $1,500 (30%)(goal is $5,000)
(6) Trading account fund - $50 (1%)(goal is $5,000)
Total - $58,183 (84%)
Well, the good news is we have finished maxing our our non-deductible IRAs for 2012. The other good news is that we are on track to max out our 401ks and to complete our emergency fund goal.
As, I posted previously, our revised* goal is to complete goals 1-4 which means that as of today, we have to save another $2,357 before the end of the year. I am confident that we can do it. We have, generally, completed our holiday spending (which is funded by our ING holiday savings account). I have a trip this weekend, that is paid for already. We, also, have a New Year's trip planned, we've paid for the condo for the trip, but we will have gas, grocery and misc. expenses associated with that trip. My hope and plan is to have our 2012 savings completed before we head off on our New Year's trip.
* We are $8,163 behind on our original 2012 goals.
Thursday, December 6, 2012
Mortgage Musings
Now that we are a few months into our new loan term it is time for me to start dreaming about killing the mortgage again.
As a reminder, our new loan term is 15 years (or 180 months) and our new rate is 2.75% fixed. Post-refinance, our monthly mortgage payment actually went up, although our rate went way down, about a $100 because we shortened the loan term by 6 years. Our current monthly loan payment is more than 60% principal payment, so we are already making good progress at chipping away on our principal.
If we continue to pay an extra $415 a month towards principal, which is what we have been doing the last couple of years, we will shorten our loan period by 40 months or 3+ years. We actually don't save that much in interest by prepaying on our loan because our current interest rate is so low. If we keep to this prepayment schedule of an extra $415 a month, we will save $13,500 in interest.
If we increased our prepayment to $830 a month (doubling what we are prepaying now) we will shorten the loan period by 65 months or almost 5 and a half years. Meaning that we would have the mortgage on our primary home paid off in under 10 years. Doing so would mean saving $21,800 in interest.
Having our mortgage paid off in under10 years is very appealing, but we'll have to balance that against whether it makes mathematical sense to do so and the priority of other goals.
As a reminder, our new loan term is 15 years (or 180 months) and our new rate is 2.75% fixed. Post-refinance, our monthly mortgage payment actually went up, although our rate went way down, about a $100 because we shortened the loan term by 6 years. Our current monthly loan payment is more than 60% principal payment, so we are already making good progress at chipping away on our principal.
If we continue to pay an extra $415 a month towards principal, which is what we have been doing the last couple of years, we will shorten our loan period by 40 months or 3+ years. We actually don't save that much in interest by prepaying on our loan because our current interest rate is so low. If we keep to this prepayment schedule of an extra $415 a month, we will save $13,500 in interest.
If we increased our prepayment to $830 a month (doubling what we are prepaying now) we will shorten the loan period by 65 months or almost 5 and a half years. Meaning that we would have the mortgage on our primary home paid off in under 10 years. Doing so would mean saving $21,800 in interest.
Having our mortgage paid off in under10 years is very appealing, but we'll have to balance that against whether it makes mathematical sense to do so and the priority of other goals.
Tuesday, December 4, 2012
Goal Setting
As I start planning our 2013 savings goals and I reflect on our progress to date on our 2012 savings goals this NYT Bucks Post by Carl Richards really resonated with me.
When setting an important goal, he focuses on financial goals, how do you respond to the question "how badly do you want it?"
Mr. Richards notes that there are generally two kinds of answers to this questions:
When I set our 2007 debt killing goals, I had the mindset that I (we) would do anything to reach our goals. Frankly, Mr. Sam thought I was a bit loony and he wasn't on board until he saw the plan on paper. During 2007 there were a number of times that we got derailed and our plan seemed like it was destined for failure. What did we do, we doubled our resolve and get going. The result, we paid off $55,500+ in just over a year.
Thinking about our 2012 savings goals, I can honestly say that we did want to save $69,000 but we were unwilling to change our lifestyle to meet our goals. Yes there were lots of other important expenses, our refi expenses, Mr. Sam's certification classes, that derailed us. But, more importantly, we did not make the sacrifice necessary to meet our goals.
I'll be thinking about this article as we set our 2013 savings goals and its further applicable to some career goals and personal goals that I'm working on.
When setting an important goal, he focuses on financial goals, how do you respond to the question "how badly do you want it?"
Mr. Richards notes that there are generally two kinds of answers to this questions:
- I want it badly, and I’ll do whatever it takes to get there.
- I want it badly, but I don’t think it’s possible.
When I set our 2007 debt killing goals, I had the mindset that I (we) would do anything to reach our goals. Frankly, Mr. Sam thought I was a bit loony and he wasn't on board until he saw the plan on paper. During 2007 there were a number of times that we got derailed and our plan seemed like it was destined for failure. What did we do, we doubled our resolve and get going. The result, we paid off $55,500+ in just over a year.
Thinking about our 2012 savings goals, I can honestly say that we did want to save $69,000 but we were unwilling to change our lifestyle to meet our goals. Yes there were lots of other important expenses, our refi expenses, Mr. Sam's certification classes, that derailed us. But, more importantly, we did not make the sacrifice necessary to meet our goals.
I'll be thinking about this article as we set our 2013 savings goals and its further applicable to some career goals and personal goals that I'm working on.
Friday, November 30, 2012
Monthly Networth Review
I have started my monthly update of our networthiq profile for December 2012. Updating our net worth numbers is part of my monthly personal finance tasks which also include the following: (1) update monthly spending plan (our form of a budget); (2) pay beginning of the month bills; (3) update 2012 savings goals chart and move money to savings goals as appropriate; (4) review and monitor automatic payments/automatic savings/automatic distribution of our allowance monies.
When updating our net worth numbers I review, on line, the status and amount of our ING/Wells Fargo savings which is reflected in the "cash" category on our networthiq chart. I, also, review our non savings ING accounts, these would include our various escrow and short term savings accounts for travel, holidays, fun, etc. and these monies are reflected in the "other" category on our chart.
Then, I review all of our retirement savings/investments. I log on to Fidelity and review my IRA accounts and my 401k account from a prior employer. My current 401k account is at Vanguard so I log on and check those numbers. I also log on as Mr. Sam to Fidelity and review Mr. Sam's IRA accounts and his 401k accounts. My IRA monies are reflected in the "stocks" category and Mr. Sam's IRA monies are reflected in the "bonds" category on our chart. Our 401k monies are combined into one number and are reflected in the "retirement" category on our chart.
The other asset categories on our networthiq chart include the value of our home, the value of our other real estate, the value of our cars and the value of personal property. Those numbers get updated about once a year.
On the other side of the networthiq chart are our debts which right now include the mortgage on our primary home, the mortgages on our investment properties and, currently, some Home Depot credit card debt (0% interest rate) incurred at Rental # 3. I update the debt numbers when we pay our various mortgages.
Keeping track of all these numbers and updating them on a monthly basis certainly takes some work, but I find the tracking to be beneficial. First of all, for me, tracking these numbers helps me stay motivated in our personal financial and savings goals. Second, checking in on our investments online, at least once a month, is useful. Today, while I was checking my Fidelity numbers I converted my non-deductible traditional IRA to a Roth IRA (I'll be posting about this later if you are curious) which took less than 5 minutes to do. I would have, and I did consider, doing the same for Mr. Sam but I figure I ought to ask him before I go ahead and convert his account. Three, being familiar with the online tools for our retirement accounts is very helpful because there are some great research tools. When you jump onto those accounts once or twice a month you get much more familiar and comfortable with the tools and terms, you increase your education and knowledge.
When updating our net worth numbers I review, on line, the status and amount of our ING/Wells Fargo savings which is reflected in the "cash" category on our networthiq chart. I, also, review our non savings ING accounts, these would include our various escrow and short term savings accounts for travel, holidays, fun, etc. and these monies are reflected in the "other" category on our chart.
Then, I review all of our retirement savings/investments. I log on to Fidelity and review my IRA accounts and my 401k account from a prior employer. My current 401k account is at Vanguard so I log on and check those numbers. I also log on as Mr. Sam to Fidelity and review Mr. Sam's IRA accounts and his 401k accounts. My IRA monies are reflected in the "stocks" category and Mr. Sam's IRA monies are reflected in the "bonds" category on our chart. Our 401k monies are combined into one number and are reflected in the "retirement" category on our chart.
The other asset categories on our networthiq chart include the value of our home, the value of our other real estate, the value of our cars and the value of personal property. Those numbers get updated about once a year.
On the other side of the networthiq chart are our debts which right now include the mortgage on our primary home, the mortgages on our investment properties and, currently, some Home Depot credit card debt (0% interest rate) incurred at Rental # 3. I update the debt numbers when we pay our various mortgages.
Keeping track of all these numbers and updating them on a monthly basis certainly takes some work, but I find the tracking to be beneficial. First of all, for me, tracking these numbers helps me stay motivated in our personal financial and savings goals. Second, checking in on our investments online, at least once a month, is useful. Today, while I was checking my Fidelity numbers I converted my non-deductible traditional IRA to a Roth IRA (I'll be posting about this later if you are curious) which took less than 5 minutes to do. I would have, and I did consider, doing the same for Mr. Sam but I figure I ought to ask him before I go ahead and convert his account. Three, being familiar with the online tools for our retirement accounts is very helpful because there are some great research tools. When you jump onto those accounts once or twice a month you get much more familiar and comfortable with the tools and terms, you increase your education and knowledge.
Wednesday, November 21, 2012
Cooking Baby Steps - Part IV
Tuesday night, before Thanksgiving, is NOT the time for grocery shopping especially for someone, like me, who hates grocery shopping.
Yesterday, I left work early to do some pre-Thanksgiving charitable work. Nothing helps one be thankful for one's financial stability like helping to hand out groceries to working families in need. Then, even though I didn't want to go, I made myself go to the grocery store.
Rather than head to my local Publix, which is smallish, I went to the extra big Publix one town over. Even though I do my best to avoid grocery shopping I'm familiar enough with the big Publix to know my way around.
I arrived about 6:30 p.m. and went directly to the bakery section because I had a birthday cake to buy. But, since I'm a novice grocery shopper I didn't realize I could put in an icing order. So I snooped around the bakery for 5 minutes before deciding to come back at the end of my shopping.
I utilized my Publix shopping list which I created on the Publix web site. I found the list helpful but, as I mentioned before, I'd like it better if I could designate brands. I did
Overall I spent $189 so the list didn't help me save money. The spendy items on my list were: (1) 12 pack Corona Light at $12.99; (2) the birthday cake at $16.99; (3) Gruyere cheese at $12.50; (4) salmon at $15.96; (5) white wine at $9.59. So, $68.03 in extra spendy items. Corona light is actually a staple for us, we buy it regularly. The other items were triggered by guests coming into town, the birthday cake, wine and the salmon (to be used on Friday for a birthday dinner). The pricey cheese is for the Thanksgiving casserole I'm making for our group dinner.
But, I also recognize that I did save money by purchasing the birthday dinner supplies at the grocery store rather than footing the bill for dining out which would have reached at least $100. The salmon was actually on special and I "saved" $8.
I'm thinking of noting the prices in my saved Publix shopping list so I can get better at figuring out what is or is not a good price.
Yesterday, I left work early to do some pre-Thanksgiving charitable work. Nothing helps one be thankful for one's financial stability like helping to hand out groceries to working families in need. Then, even though I didn't want to go, I made myself go to the grocery store.
Rather than head to my local Publix, which is smallish, I went to the extra big Publix one town over. Even though I do my best to avoid grocery shopping I'm familiar enough with the big Publix to know my way around.
I arrived about 6:30 p.m. and went directly to the bakery section because I had a birthday cake to buy. But, since I'm a novice grocery shopper I didn't realize I could put in an icing order. So I snooped around the bakery for 5 minutes before deciding to come back at the end of my shopping.
I utilized my Publix shopping list which I created on the Publix web site. I found the list helpful but, as I mentioned before, I'd like it better if I could designate brands. I did
Overall I spent $189 so the list didn't help me save money. The spendy items on my list were: (1) 12 pack Corona Light at $12.99; (2) the birthday cake at $16.99; (3) Gruyere cheese at $12.50; (4) salmon at $15.96; (5) white wine at $9.59. So, $68.03 in extra spendy items. Corona light is actually a staple for us, we buy it regularly. The other items were triggered by guests coming into town, the birthday cake, wine and the salmon (to be used on Friday for a birthday dinner). The pricey cheese is for the Thanksgiving casserole I'm making for our group dinner.
But, I also recognize that I did save money by purchasing the birthday dinner supplies at the grocery store rather than footing the bill for dining out which would have reached at least $100. The salmon was actually on special and I "saved" $8.
I'm thinking of noting the prices in my saved Publix shopping list so I can get better at figuring out what is or is not a good price.
Tuesday, November 20, 2012
The Bright Side
Over on the GRS forums, which is really where I started my personal finance blogging, I was moping a bit about the fact that we are unlikely to meet our 2012 savings goals of $69,000. Of course the joy of blogging and posting is that other people give you all kinds of feedback.
CecilyC provided this feedback: "Seriously, Sam, give yourself major props for this year even if you didn't exactly meet your goals. I wish I could say I'd saved $50,000."
Cecily's point is a good one, saving $50,000 is a major accomplishment. And, in fact, Mr. Sam and I are doing much better than the average American, who has $3,500 in regular savings and $35,000 in retirement savings.
While, we know we are doing well and we do celebrate the fact that we are making good progress on our savings, we want to do better. The fact is, with the exception of last year, our savings has averaged $50,000 each year with little to no increase. In 2011, we saved $60,060 (our best showing). In 2010,we saved $49,325. In 2009, we saved $50,168. In 2008, we saved $50,000. And of course in 2007, we paid off $55,500 in unsecured debt (in 12 and half months, this goal was completed in January 2008).
Now looking on the bright side, how fantastic that we were able to save $50,000 four years in a row. That is a fantastic accomplishment especially in light of the fact that we were able to save that kind of money during the great recession. But, I remain frustrated that we have not been able to increase our savings, with the exception of last year, despite the fact that both of us have had salary increases. I really want to do better and, more importantly, I believe that we can do better and save more without a major lifestyle change.
CecilyC provided this feedback: "Seriously, Sam, give yourself major props for this year even if you didn't exactly meet your goals. I wish I could say I'd saved $50,000."
Cecily's point is a good one, saving $50,000 is a major accomplishment. And, in fact, Mr. Sam and I are doing much better than the average American, who has $3,500 in regular savings and $35,000 in retirement savings.
While, we know we are doing well and we do celebrate the fact that we are making good progress on our savings, we want to do better. The fact is, with the exception of last year, our savings has averaged $50,000 each year with little to no increase. In 2011, we saved $60,060 (our best showing). In 2010,we saved $49,325. In 2009, we saved $50,168. In 2008, we saved $50,000. And of course in 2007, we paid off $55,500 in unsecured debt (in 12 and half months, this goal was completed in January 2008).
Now looking on the bright side, how fantastic that we were able to save $50,000 four years in a row. That is a fantastic accomplishment especially in light of the fact that we were able to save that kind of money during the great recession. But, I remain frustrated that we have not been able to increase our savings, with the exception of last year, despite the fact that both of us have had salary increases. I really want to do better and, more importantly, I believe that we can do better and save more without a major lifestyle change.
Monday, November 19, 2012
Cooking Baby Steps - Part III
Since its Thanksgiving week and since I will be doing some cooking for Thanksgiving dinner I was checking out the Publix web site to figure out their hours this week.
In looking at the Publix web site, I discovered that they have some helpful recipe tools and, more importantly, a grocery list tool. The grocery list tool can be personalized to your specific store and as you add items to the list it populates the location within the store so you don't have to wander around aimlessly. And, you can also add items from the weekly sale list and/or populate your grocery list from their recipe tools. You can also set up a standard grocery list of items that you buy regularly.
Since I am trying to do better on my cooking at home goal, I decided to sign up for a Publix profile. I am not a fan of having corporations track me and mine my data, but in order to save my grocery list I needed a profile. So I used my junk e-mail address (the one I use for shopping on-line) and when it asked for all my data I used my standard fake information which only includes my real zip code.
Once I had my Publix profile set up, I started adding items from my Thanksgiving recipe (I'm making one casserole dish for our group dinner) as well as regular items that I'll need to pick up since I'll have guests in town. The grocery list doesn't have each and every brand which is a bummer as it would be great if I could specify in my list the particular brands that I use (it does have a notes section where you can add that information).
Since we will have guests to cook for on Friday, I also tried out Publix's Simple Meals Recipe tool which is divided among different categories like "main dish" and "celebrations", etc. I clicked on main dish which has different categories like "beef", "vegetarian", "seafood (salmon)" and "seafood (shellfish)". I was already planning on salmon, so I clicked on a recipe that sounded easy and good and then it is one easy step to populate your grocery list with all the necessary items (you can delete those items that are already in your pantry). You can also save the recipes to your profile as well.
I plan to go shopping Tuesday evening, so I'll continue to work on my list between now and then and I'll report back on whether this tool is helpful or not. What do you do to make grocery shopping less painful?
In looking at the Publix web site, I discovered that they have some helpful recipe tools and, more importantly, a grocery list tool. The grocery list tool can be personalized to your specific store and as you add items to the list it populates the location within the store so you don't have to wander around aimlessly. And, you can also add items from the weekly sale list and/or populate your grocery list from their recipe tools. You can also set up a standard grocery list of items that you buy regularly.
Since I am trying to do better on my cooking at home goal, I decided to sign up for a Publix profile. I am not a fan of having corporations track me and mine my data, but in order to save my grocery list I needed a profile. So I used my junk e-mail address (the one I use for shopping on-line) and when it asked for all my data I used my standard fake information which only includes my real zip code.
Once I had my Publix profile set up, I started adding items from my Thanksgiving recipe (I'm making one casserole dish for our group dinner) as well as regular items that I'll need to pick up since I'll have guests in town. The grocery list doesn't have each and every brand which is a bummer as it would be great if I could specify in my list the particular brands that I use (it does have a notes section where you can add that information).
Since we will have guests to cook for on Friday, I also tried out Publix's Simple Meals Recipe tool which is divided among different categories like "main dish" and "celebrations", etc. I clicked on main dish which has different categories like "beef", "vegetarian", "seafood (salmon)" and "seafood (shellfish)". I was already planning on salmon, so I clicked on a recipe that sounded easy and good and then it is one easy step to populate your grocery list with all the necessary items (you can delete those items that are already in your pantry). You can also save the recipes to your profile as well.
I plan to go shopping Tuesday evening, so I'll continue to work on my list between now and then and I'll report back on whether this tool is helpful or not. What do you do to make grocery shopping less painful?
Friday, November 16, 2012
2012 Savings Goal - Mid November Update
(1) Max out 401k(s) - $32,036 (94%)(goal is $34,000)
(2) Max out IRA(s) - $7,829 (78%)(goal is $10,000)
(3) Add to e/r fund - $8,800 (88%)(goal is $10,000)
(4) Pay down mortgage - $2490 (50%)(goal is $5,000)
(4)(a) Savings for goal (4) - $830
(5) House projects - $1,200 (26%)(goal is $5,000)
(6) Trading account fund - $50 (1%)(goal is $5,000)
Total - $53,335 (76%)
I plan to update our 2012 goals every two weeks or so until the end of the year to help me stay focused. At present, we are about $7,700 behind on our goals.
While I don't think we will be able to meet our 2012 goal of saving $69,000 I am hoping (and planning) to completed goals 1-4 and to surpass the amount we saved last year which was $60,060.
Wednesday, November 14, 2012
Cooking Baby Steps - Part II
I have started researching the best (but not super expensive) cooking tools and I found this helpful list from Consumer Reports.
I actually already have one of the tools on the list. The KitchanAid mixer. KitchenAid Artisan Stand Mixer KSM150PS - Contour Silver - KitchenAid (Google Affiliate Ad) And, while I don't use the mixer on a daily or even monthly basis, it does work very well.
My plan is to take this list and compare it against what I've already got and work on improving our stock of kitchen tools. At present, our biggest issue is cookware and knives, although I could also use some better baking sheets.
I actually already have one of the tools on the list. The KitchanAid mixer. KitchenAid Artisan Stand Mixer KSM150PS - Contour Silver - KitchenAid (Google Affiliate Ad) And, while I don't use the mixer on a daily or even monthly basis, it does work very well.
My plan is to take this list and compare it against what I've already got and work on improving our stock of kitchen tools. At present, our biggest issue is cookware and knives, although I could also use some better baking sheets.
Tuesday, November 6, 2012
Cooking Baby Steps
One of my general financial goals for 2012 was to reduce the amount of eating out and ordering in that I do. Clearly eating out and ordering in is more expensive than eating at home or bringing my lunch. Also, eating out during the work week cuts into my productive work time. And finally, eating out and ordering in normally means that I am eating more calories than I would like.
Although we have reduced our eating out, overall I have not been particularly successful on this goal. I have a variety of excuses. First and most importantly, I really do not like to cook. Second, I hate the grocery store. Third, I work a lot and by the time I get home I want to relax not cook dinner and certainly not prep lunch for the next day.
But, recently I made an effort to improve my cooking skills by attending a healthy cooking class. A few things that I figured out from this class. First, we need to invest in a few better pots and pans and a few better quality knives. We also probably need a new set of measuring spoons. Second, I need to reorganize the kitchen. Our kitchen is not particularly large and doesn't really have a whole lot of storage (not surprising since we live in a 1920s home). But, taking a look at what I do have in my kitchen, I noticed that a lot of the space is dedicated to antique glassware, cocktail serving dishes, vases, large serving dishes, our fine china, etc. While I don't like to cook, I do like to party so I have lots of fun party/serving/cocktail supplies. I need to work on getting the special occasion things out of the way and organizing the kitchen so that more of the space is dedicated to cooking tools.
So, I'm going to work on getting our kitchen better organized and I'm going to do some cooking equipment shopping this holiday season. I'll let you know how I do.
Although we have reduced our eating out, overall I have not been particularly successful on this goal. I have a variety of excuses. First and most importantly, I really do not like to cook. Second, I hate the grocery store. Third, I work a lot and by the time I get home I want to relax not cook dinner and certainly not prep lunch for the next day.
But, recently I made an effort to improve my cooking skills by attending a healthy cooking class. A few things that I figured out from this class. First, we need to invest in a few better pots and pans and a few better quality knives. We also probably need a new set of measuring spoons. Second, I need to reorganize the kitchen. Our kitchen is not particularly large and doesn't really have a whole lot of storage (not surprising since we live in a 1920s home). But, taking a look at what I do have in my kitchen, I noticed that a lot of the space is dedicated to antique glassware, cocktail serving dishes, vases, large serving dishes, our fine china, etc. While I don't like to cook, I do like to party so I have lots of fun party/serving/cocktail supplies. I need to work on getting the special occasion things out of the way and organizing the kitchen so that more of the space is dedicated to cooking tools.
So, I'm going to work on getting our kitchen better organized and I'm going to do some cooking equipment shopping this holiday season. I'll let you know how I do.
Monday, November 5, 2012
2012 Savings Goals - November Update
(1) Max out 401k(s) - $31,379 (92%)(goal is $34,000)
(2) Max out IRA(s) - $5,829 (58%)(goal is $10,000)
(3) Add to e/r fund - $8,400 (84%)(goal is $10,000)
(4) Pay down mortgage - $2490 (50%)(goal is $5,000)
(4)(a) Savings for goal (4) - $415
(5) House projects - $1,200 (24%)(goal is $5,000)
(6) Trading account fund - $50 (1%)(goal is $5,000)
Total - $49,763 (72%)
I've added a sub goal to our list, since at present, I'm allocating our mortgage paydown money to savings until I figure out how to prepay our new mortgage.
At present, we are approximately $9,900 behind on our 2012 goals and the gap is approaching $10,000.
What can I say about our current savings deficit and the fact that it continues to grow?
I can tell you that (1) we've spent thousands on certifications for Mr. Sam this year (to improve career opportunities); (2) I can tell you we spent thousands on refinancing our primary dwelling and (3) thousands on fixing our our primary dwelling for the appraisal for the refi; and (4) recently a few thousands on some projects at Rental # 3.
But, I can also tell you that in the face of the above we have failed to change our lifestyle in any significant manner. We continue to eat out more than we should. I just booked a girls weekend in South Beach, Miami and, of course, I just bought some fabulous art.
So, with two months to go, including the expensive holiday season, it seems doubtful that we will reach our $69,000 number. Rather, at this point, while I'm not amending our goals, I'm hoping to meet and surpass last year's savings number which was $60,060.
Thursday, November 1, 2012
Happy Days - Part III
Earlier I posted about my recent raise and retroactive pay, related to my raise, and how I wanted to spend those monies. I decided that I would put 2/3 of my retroactive pay towards the art that I've been stalking since Memorial Day and the rest would be put towards our 2012 IRAs or other 2012 savings goals.
Well, I am pleased to report that I have more than enough in my ING savings account to purchase the art work and I've already e-mailed the artist and made the purchase.
And, yes, I put the other 1/3 of my retroactive pay into our 2012 IRAs.
Well, I am pleased to report that I have more than enough in my ING savings account to purchase the art work and I've already e-mailed the artist and made the purchase.
And, yes, I put the other 1/3 of my retroactive pay into our 2012 IRAs.
Tuesday, October 30, 2012
Refinance Update - Part 12
As I indicated earlier, our home mortgage (recently refinanced) has been sold to CitiMortgage. I just spent 20 minutes setting up an online profile with CitiMortgage. And while I have reviewed each and every FAQ, each section regarding payments and payoff, there is nothing on the CitiMortgage web page about how to prepay principal except for their own "Biweekly Advantage Plan" which of course has a charge associated with it.
While I am disappointed, I'm not surprised because Citi makes more money off of us if we don't prepay our mortgage. So my plan is to make our first regular payment and then I will call about how to set up principal prepayments. Its important that Citi know that I'm going to be making principal prepayments so that they properly apply them and so they don't assume I'm making some partial regular payment.
While I am disappointed, I'm not surprised because Citi makes more money off of us if we don't prepay our mortgage. So my plan is to make our first regular payment and then I will call about how to set up principal prepayments. Its important that Citi know that I'm going to be making principal prepayments so that they properly apply them and so they don't assume I'm making some partial regular payment.
Thursday, October 18, 2012
Happy Days
Good news, I received a 5% raise yesterday at work. And further good news is that the raise is retroactive for a few months. Whoo-hoo!
So, since today is pay day for me, I received my newly increased paycheck via direct deposit and a check for the retroactive pay. Eyeing that retroactive pay, we could use it towards funding our 2012 IRAs or towards paying down our mortgage. We are behind on both of these 2012 savings goals (behind $2371 in funding our IRA, and behind $1461). Or we could put it towards expenses related to turning Rental #3 (which Mr. Sam is working on as we speak).
But, what I really want to do is put it towards the art work that I've been saving for since Memorial Day.
What would you do, put it towards 2012 saving goals, put it towards current rental related expenses or spend it on something fun? As an aside, I already have $110 in my art account so I only have $515 to go before I have sufficient funds to purchase. This piece of art would be my Christmas present to myself from myself and Mr. Sam.
So, since today is pay day for me, I received my newly increased paycheck via direct deposit and a check for the retroactive pay. Eyeing that retroactive pay, we could use it towards funding our 2012 IRAs or towards paying down our mortgage. We are behind on both of these 2012 savings goals (behind $2371 in funding our IRA, and behind $1461). Or we could put it towards expenses related to turning Rental #3 (which Mr. Sam is working on as we speak).
But, what I really want to do is put it towards the art work that I've been saving for since Memorial Day.
What would you do, put it towards 2012 saving goals, put it towards current rental related expenses or spend it on something fun? As an aside, I already have $110 in my art account so I only have $515 to go before I have sufficient funds to purchase. This piece of art would be my Christmas present to myself from myself and Mr. Sam.
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