(1) Max out 401k(s) - $22,588 65% (goal is $35,000)
(2) Max out IRA(s) - $11,000 100% (goal is $11,000)
(3) Add to e/r fund - $10,400 104% (goal is $10,000)
(4) Roof project - $5,000 100% (goal is $5,000)
(5) Vehicle replacement - $5,000 100% (goal is $5,000)
(6) House projects - $3,000 100% (goal is $3,000)
Total: $56,988 83% (Goal is $69,000)
So, we saved almost $57,000 in 2014. While a respectable number, we missed our goal by $12,000. Mr. Sam was not eligible for his 401k until midway through the year and that is one of the main reasons that our 401k savings number was reduced in 2014.
We did have some major expenses in 2014 that are not reflected (entirely) in our savings goals. First, a new car for Mr. Sam which was paid in part with cash. Second, a new roof for one of our properties. The roof was a savings goal, but also cost more than what we saved and we could no longer put the project off.
We also incurred some debt in 2014. Mr. Sam's new car was paid in part with cash (about 40%) and the rest is loan. Second, we added to our family in 2014 (which is why I've been away from the blog for so long). We had considerable expenses related to the conception (via IVF) and related to the nursery and birth (most covered by insurance, but a big chunk that was not). We also had a major house project prior to the baby arriving. We are working on paying down the baby debt and it will be part of our 2015 savings/debt killing plan which I am working on creating.
Showing posts with label Emergency Fund. Show all posts
Showing posts with label Emergency Fund. Show all posts
Thursday, March 5, 2015
Tuesday, June 24, 2014
Car Repair Blues
One of the ways we keep our expenses down so that we can save more is keeping our transportation costs low. I drive a 2006 four door car, which was purchased with cash in 2008. Mr. Sam drives a truck, a necessity for our rental properties, which was purchased with cash in 2004. The truck is of the late 1990s vintage. So, I've had my car for six years and Mr. Sam has had his truck for 10 years now.
This year the average price of new car was $31,252. Additionally, Americans are keeping those expensive cars for more years (due in part to longer car loans).
Last year, my car needed a fair amount of work. The work was done, about $2000, and I was hopeful my car would be good for a few years. No such luck, I've just put another $1200 into my car and I have an outstanding transmission problem that needs to be addressed by a specialist (which means expensive in my mind, but its an unknown at this point).
While we were talking transmission for my car, Mr. Sam's truck has reached its end. He either needs a new engine or a new vehicle and the mechanic who looked at it said it really wasn't worth putting a new engine into the truck. The truck is also only two doors and we really need another four door vehicle for a variety of reasons.
So, we are on the hunt for a used four door truck (with a shorter bed). Interestingly, the prices on used (2010-2013) trucks are close to the price for a new one. I mentioned financing a purchase rather than depleting our savings account (which has already been battered by prior unplanned expenses this year), but Mr. Sam is strongly against having a car payment (I've trained him well). Which means that we will need to look for something that is older or figure out some other plan.
This year the average price of new car was $31,252. Additionally, Americans are keeping those expensive cars for more years (due in part to longer car loans).
Last year, my car needed a fair amount of work. The work was done, about $2000, and I was hopeful my car would be good for a few years. No such luck, I've just put another $1200 into my car and I have an outstanding transmission problem that needs to be addressed by a specialist (which means expensive in my mind, but its an unknown at this point).
While we were talking transmission for my car, Mr. Sam's truck has reached its end. He either needs a new engine or a new vehicle and the mechanic who looked at it said it really wasn't worth putting a new engine into the truck. The truck is also only two doors and we really need another four door vehicle for a variety of reasons.
So, we are on the hunt for a used four door truck (with a shorter bed). Interestingly, the prices on used (2010-2013) trucks are close to the price for a new one. I mentioned financing a purchase rather than depleting our savings account (which has already been battered by prior unplanned expenses this year), but Mr. Sam is strongly against having a car payment (I've trained him well). Which means that we will need to look for something that is older or figure out some other plan.
Monday, June 23, 2014
Rainy Day News
News today on Americans lack of savings. Since our emergency fund has taken a hit this year (more on that later), I can relate to this news. Our emergency fund is down to less than 3 months of expenses, which causes me great consternation.
Most of the time we are able to plan ahead for expenses, meaning that if we have a house project, like our recent new roof, we save up for it and then we incur the expenses. We were not able to do that with the roof because we had to replace the roof prior to the rainy season here in Florida. We had a recent family vacation, planned by family, that we were similarly not able to plan for (and our vacation savings fund was depleted due to a prior planned for vacation). And now, we've got car issues (more on that later).
But, putting all that backward slide aside, we generally do well with our savings because we have a system in which we put savings first on our list of expenses. Which means we pay ourselves first and second. First is our pre-pay savings, meaning the 401k. And, second is our automatic savings which goes for things like the emergency fund, the travel fund, annual and semi annual expenses like taxes and insurance, etc. But, our automatic savings is based on planning and when our planning is either wrong or we have unplanned expenses we run into trouble - which is where we are at now.
Most of the time we are able to plan ahead for expenses, meaning that if we have a house project, like our recent new roof, we save up for it and then we incur the expenses. We were not able to do that with the roof because we had to replace the roof prior to the rainy season here in Florida. We had a recent family vacation, planned by family, that we were similarly not able to plan for (and our vacation savings fund was depleted due to a prior planned for vacation). And now, we've got car issues (more on that later).
But, putting all that backward slide aside, we generally do well with our savings because we have a system in which we put savings first on our list of expenses. Which means we pay ourselves first and second. First is our pre-pay savings, meaning the 401k. And, second is our automatic savings which goes for things like the emergency fund, the travel fund, annual and semi annual expenses like taxes and insurance, etc. But, our automatic savings is based on planning and when our planning is either wrong or we have unplanned expenses we run into trouble - which is where we are at now.
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