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About Me:

Monkey Mama

Just a 46-year-old mom of 2 in Northern California. My kids are Monkey Monkey(MM) and Drama Llama (DL). I am married to Monkey Hubby (MH).

We were a one-income family for 13 years. In late 2015 my spouse returned to work (minimum wage/part-time/seasonal). Something recent on his resume just buys us more options for the long run. The main benefit of this job is that he just works while the kids are in school. As always, we are saving 100% of his income.

{2023 Update: I expect that MH will retire from this job when kids are done with college and/or home is paid off. I think he likes the idea of finding more interesting or full-time work, with kids both adults now. But practically, might just stick out the *good* and very flexible job as long as possible. The very part-time job is allowing him to pursue his film passions. We are only about 5-ish years away from financial independence. Would be very different if we "needed" the money or he thought he might have decades of working years ahead of him.}

We saved a lot while we were very young and also moved to a lower cost-of-living area, to make life much simpler. We still live in California though (in one of the most expensive regions of the U.S.). *Simple* and *inexpensive* is relative.

Likewise, we have never had debt aside from our mortgage.** My blog is a testament to how much simpler life is without debt; how we have that much more money to both save and enjoy!

**Caveat: I have no problem whatsoever with credit cards paid off monthly, or low-risk credit arbitrage (for example, 0%-interest debt while earning 5% on FDIC-insured cash). These are the kinds of debt we have had. Just not interested in high-interest debt, using debt to buy beyond means, and not interested in the hassle that comes with loans and payments. With age and means, the latter (hassle) is our biggest debt avoidance motivation.

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2024 Goals

[ ]Small monthly Charitable Contribution
...($35 @ 1/31/24)
...Trying to be more mindful about how the little amounts add up and are helpful.
...This is not an all inclusive list of charitable giving but it is a new habit I want to add in addition to other donations of time, goods and money

[ ]Pay cash for college
...This is so much a given, to me. But I realize not everyone can read my mind, and so will memorialize in my goal list.
...#1 We don't do Debt
...#2 The student loan system is a scammy and corrupt mess.
...Seriously, wouldn't touch these student loan servicers with a ten foot pole.
MM YEAR 1 ✔
MM YEAR 2 ✔
MM YEAR 3 ✔
MM YEAR 4

DL YEAR 1 ✔
DL YEAR 2

[ ]$10,000 to savings
...($4,529 @ 3/31/24)
...$1,000/month, plus interest
...Topping off with snowballs

[ ]$7,500 to investments
...($1,750 @ 4/30/24)
...$350/month, plus snowflakes
(Snowflakes: credit card rewards and dividends)
...Topping off with snowballs

[ ]$2,025 to mortgage
...($0 @ 4/30/24)
...Topping off with snowballs and/or excess cash
...Keeps us on track with $10K principal paydown per year

[/]9% of household income to work retirement plans
...(9% @ 3/31/24)
...This is the minimum for the match; I'd otherwise rather fund IRAs.
...Note: Total retirement savings rate is 20% (with IRAs)

Goal savings rate = 25% of gross salary, plus funding IRAs from other sources.

[ ]$14,000 to IRAs 2024 (MAX)
...($0 @ 4/30/24)
...Will fund with MH's income
...Will not fund until the year is over. This is for tax and planning reasons. I won't know what mix of Traditional/ROTH IRA we literally can contribute until we do our 2024 taxes. In addition to that, can make a more informed decision based on our financial and tax situation for the entire year.

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**Long-Term Goals**

[X]$500,000 in retirement accounts by age 45.

Current big picture goal:

[ ]$1 Mil in retirement accounts by age 52.

Stretch Goal: Achieve by age 50

Have decided to pretty much stay the course. Keep saving 20%+ to retirement. This means taking 401K match & maxing out IRAs.

NOTE: WE HAVE NEVER CONTRIBUTED LESS THAN 10% TO RETIREMENT. NO EXCEPTIONS.

If we can't achieve at least 10%, then something else has to give. I share because it's infinitely easier to save for retirement if you start early. Let the investments do the hard work for you.

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Debt: $85,000 mortgage
{Home Purchase Price $290,000}

Ongoing goal is to *never borrow money again.*

Took on a $230k mortgage in 2001 and have not added to that.

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Net Worth: Increase net worth by $600,000 in the next 10 years. This is my "financial independence" goal.

2017: +$ 70,000 (partial year)
2018: +$ 51,000
2019: +$105,000
2020: +$104,000
2021: +$215,000
2022: <$ 65,000>
2022: +$ 85,000
TOTAL: +$565,000

This is in line with prior goal, saving 100% of our expenses every year.

{Our expenses are far more consistent than our income. Also, helps to prevent "living up to income."}

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My Pages

The Answer to ALL of your problems...

April 22nd, 2008 at 06:59 pm

A BIGGER HOUSE.

LOL.

Keep in mind we are in the middle of forclosure central and I don't think very many people around here really used their brains when purchasing the houses they are in.

Anyway, I have a mortgage broker friend who sends cute little blurbs in the mail at least once a month; maybe moe often. Usually cute little stories and moral tales and such. Just to keep in him top of mind, and somehow links them into saving money or buying a home, etc.

Anyway, I Was quite surprised when I picked up my mail today at work and started reading his latest postcard. I thought it was a joke at first. (I find myself thinking this often when I listen to commercials - yeesh. I think it's a paradoy or a joke and then I realize it is a REAL commercial. Who takes this stuff seriously? Apparently many).

Anyway, so yeah.

"Dissapointed by your Tax Return? A Bigger House could save you More!"

"...Not only do you get a nicer house, but you also get a bigger tax write-off..."

"More expensive Houses appreciate faster..."

Um, okay. Well, for one, I am not opposed to the bigger house thing. We actually bought a bigger home because we thought it was a better investment. & it has been a much better investment than we had imagined (for various reasons). So I can't see the logic as 1000% flawed.

BUT...

Buying a bigger house for a bigger tax write-off is the most insane thing I have ever heard. Spend $12000 to save $3k. THat's what it probably amounts to. (HEck, at our tax rate we would spend $12k and only save $2k).

OF course, "if you buy a $300k house instead of a $200k house, it will appreciate $500/month faster."

So in the end you'll be breakeven cash flow wise.

That's the logic.

Ugh.

I don't think taking stock of the market right now and considering a "move up" is the worst idea. But the logic in this advertisement is deeply flawed. Wink

Likewise, I know few who aren't already in WAY over their heads, so I know few who are really in any decent financial shape to move up to a bigger house. I guess makes the whole thing more crazy. "Can't afford the house you're in? Buy a bigger one!!!" Might as well be the point of this advertisement, when you consider the audience.

Posted in Just Thinking | 2 Comments »

2 Responses to “The Answer to ALL of your problems...”

Maismom Says:
April 22nd, 2008 at 07:51 pm 1208893860
1208893860

Hahaha! That sure sounds like a joke, but I know he is serious. It's crazy....
disneysteve Says:
April 22nd, 2008 at 08:53 pm 1208897586
1208897586

It is a disgrace that financial ads don't have to be cleared by any government agency in the way that pharmaceutical ads do. As much as I hate advertisements for prescription medications, at least those ads have to get FDA approval before airing. Perhaps ads from banks, mortgage companies, brokers and investment firms should have to be approved by the Fed in some way.

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Monkey Mama*s Monkey Money Blog

Over Prepare, Then Go With The Flow

The Answer to ALL of your problems...

2 Responses to “The Answer to ALL of your problems...”

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