Emergency Fund - CD

We keep our emergency fund (and our other savings) in high yield savings accounts with ING. But with interest rates dropping, we decided to move $5000 of our $20,000 to a 12 month CD (also with ING).

Goal #4 Completed

2008 goals:
(1) 2007 IRA - $8000 (this goal is now closed)
(2) Car fund - $17000 (this goal has been completed!)
(3) E/R fund - $10000 (this goal has been completed!)
(4) Baby fund - $5000 (this goal has been completed!)
(5) 2008 IRA - $10000
Total: $50,000

Current numbers:
(1) $4000 (50%.)
(2) $17000 (Progress - 100%.)
(3) $12291 ($20,291*) (Progress - 123%)
(4) $5000 (Progress - 100%)
(5) $7000 (Progress - 70%)
Total: $45,291 (Progress - 90%)
* Our emergency fund already had $8000.

Goal number 4, baby fund, is now completed. We likely will need more than $5000 in our baby fund so we will pick up this goal again in 2009.

At present, I'm working on funding Mr. Sam's 2008 IRA. I've been buying stocks like crazy the last few weeks. My stock picking criteria - good established companies, stock priced at least 50% off, and diversified companies (i.e. conglomerates, retail, tech, energy, pharma, etc.)

We've been discussing what to do when his 2008 IRA is fully funded. If we close our 2008 goal early we could: (1) start saving money for our 2009 IRAs, (2) continue to buy stocks but not in a tax advantaged account, (3) establish our 2009 money goals and start putting money away for same, (4) save for a new couch. What would you do? At present, I'm inclined to either put money aside for our 2009 IRAs or continue to buy stocks.

Right on Track

2008 goals:
(1) 2007 IRA - $8000 (this goal is now closed)
(2) Car fund - $17000 (this goal has been completed!)
(3) E/R fund - $10000 (this goal has been completed!)
4) Baby fund - $5000
(5) 2008 IRA - $10000
Total: $50,000

Current numbers:
(1) $4000 (50%.)
(2) $17000 (Progress - 100%.)
(3) $12291 ($20,291*) (Progress - 123%)
(4) $3992 (Progress - 80%)
(5) $5000 (Progress - 50%)
Total: $42,283 (Progress - 83%)
* Our emergency fund already had $8000.

For the first time all year, we are finally on track with our savings goal. Its week 43, we should have saved 83% of our $50,000 and we have saved 83% of our $50,000. Hooray!

Correction - Working on Goals # 4 and 5

2008 goals:
(1) 2007 IRA - $8000 (this goal is now closed)
(2) Car fund - $17000 (this goal has been completed!)
(3) E/R fund - $10000 (this goal has been completed!)
(4) Baby fund - $5000
(5) 2008 IRA - $10000
Total: $50,000

Current numbers:
(1) $4000 (50%.)
(2) $17000 (Progress - 100%.)
(3) $11985 ($19,985*) (Progress - 120%)
(4) $2892 (Progress - 58%)
(5) $1500 (Progress - 15%)
Total: $37,377 (Progress - 75%)
* Our emergency fund already had $8000.

As you can see, although we are still a bit behind on our 2008 savings goals, we have hit the 3/4 point. And, we have also decided to start working on goal #5 and put some money into our IRAs to take advantage, we hope, of the bear market.

2008 Goals - Working on Goal #4

2008 goals:
(1) 2007 IRA - $8000 (this goal is now closed)
(2) Car fund - $17000 (this goal has been completed!)
(3) E/R fund - $10000 (this goal has been completed!)
(4) Baby fund - $5000
(5) 2008 IRA - $10000
Total: $50,000

Current numbers:
(1) $4000 (50%.)
(2) $17000 (Progress - 100%.)
(3) $11985 ($19,985*) (Progress - 120%)
(4) $2892 (Progress - 58%)
(5) $0
Total: $35,877 (Progress - 72%)
* Our emergency fund already had $8000.

Nused Car - Dunzo!

Yup, all that waiting and savings has finally paid off.

On Saturday, I traded in my paid off 1999 car and bought a nused (2006) car. Whoo-hoo!! Even better, I paid cash (well, really check) for the nused car. Whoo-hoo!!

I had saved $17,000 for the nused car as one of our 2008 savings goals. I also assumed I would get a couple of thousand dollars for my old car. And my budget for the car was $20,000. We've been researching 3 cars for the past six months so we had a good sense of how much our target cars should cost.

On Saturday, we decided to test drive the three cars we were interested in. The car was below budget $19,500 and was a good price for the year and the mileage. So we decided to buy it! We also decided to trade in my old car at the dealership. While I could have gotten a bit more for my old car if we sold it ourselves we would have to sell it ourselves.

It was a great experience, no discussion of monthly payments, interest rate, etc. While the finance guy asked why I would pay cash for a depreciating asset, I asked why would I pay interest on a depreciating asset. I told the finance guy, if he gave me a 0% loan I would be happy to finance the car. You can guess his response. I wrote a check and drove the car home.

2008 Savings Goal #2 - Done!

2008 goals:
(1) 2007 IRA - $8000 (this goal is now closed)
(2) Car fund - $17000 (this goal has been completed!)
(3) E/R fund - $10000 (this goal has been completed!)
(4) Baby fund - $5000
(5) 2008 IRA - $10000
Total: $50,000

Current numbers:
(1) $4000 (50%.)
(2) $17000 (Progress - 100%.)
(3) $11813 ($19,813*) (Progress - 118%)
(4) $192 (Progress - 4%)
(5) $0
Total: $33,005 (Progress - 66%)
* Our emergency fund already had $8000.

Nused car account, goal #2 for 2008, is now fully funded. Whoo-hoo!!

Updates to Net Worth and Savings Goals

Net Worth
We have received our 2008 appraisal and real estate tax information for our Florida properties. Not surprisingly, our appraised values are down by about 5%. It is surprising that the appraised values are not down more than 5%. But, our official appraised values are quick to rise and slow to fall because the bulk of taxes in Florida are based on real estate (no income tax).

I have updated our Net Worth IQ chart if you want to see the dirty details.

2008 Savings Goals
2008 goals:
(1) 2007 IRA - $8000 (this goal is now closed)
(2) Car fund - $17000
(3) E/R fund - $10000 (this goal has been completed!)
(4) Baby fund - $5000
(5) 2008 IRA - $10000
Total: $50,000

Current numbers: (1) $4000 (50%.)
(2) $15787 (Progress - 93%.)
(3) $11280 ($18,972*) (Progress - 113%)
(4) $5
(5) $0
Total: $31,072 (Progress - 62%)
* Our emergency fund already had $8000.