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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

Be Proud for Being Responsible!

March 5th, 2009 at 05:18 pm

I am putting this here for future cutting and pasting. Wink

A question I answered in the forums (& a pet peeve of mine I do keep bringing up).

QUESTION: "Someone remind we I am working so hard to be responsible with debt?"

MY ANSWER: So you can enjoy low interest rates, own your assets outright, refinance at will, enjoy lower interest rates on just about everything.

So you don't have to juggle all your bills and worry where you are going to live tomorrow or how you are going to afford the mortgage you can't afford, for the LONG run. (A lot of the programs being offered do little more than prolong the inevitable, in my opinion).

So you can sleep at night.

{I know way too many people on the brink of losing their home - I wouldn't trade places with them for NOTHING. Loan modifications, forgiven liens, and all. They can HAVE it}.

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I think I understand some of the sentiment for people who are struggling. IT's like welfare. Anyone doing well would be insane to be jealous of those on welfare. But often times those on the brink are jealous of the handouts. IF only they did a little less, they would get more help.

& I will just never *get* that. I think ideally, to not be on welfare, should be the road to something better. I have relatives and friends who have had to rely on welfare to survive. But I think some of the happiest days of their lives was when they no longer needed it. & that was very early on a long journey to financial self sufficiency.

Anyway, I don't want to say, "NEVER gripe about the welfare system." Or, "NEVER gripe about Obama's mortgage plan." Sure, there is plenty to gripe about.

But being bitter about BEING financially responsible? From my perspective there are clearly many more benefits, in the long run, to being financially responsible. Too many to count. Tangible and intangible. I guess I forget how short sighted our society has become... No one can look past today. *sigh*

Posted in Just Thinking | 6 Comments »

6 Responses to “Be Proud for Being Responsible!”

PauletteGoddard Says:
March 5th, 2009 at 05:24 pm 1236273857
1236273857

I can attest to this from my own experience. I was once in consumer debt, took me years to get out. And yes, the low interest rates are there when your credit rating rises, you can refinance in a challenging environment, get the excellent credit card upgrades, and the emergency fund that grows when there's no more debt to payoff does rid one of the 2 am anxiety wake-ups.
Analise Says:
March 5th, 2009 at 06:03 pm 1236276188
1236276188

I wouldn't trade places, either, with anyone that is getting bailed out, nor do I wish it were me benefiting from the help. To the contrary, I believe one should be proud (never smug) of having figured out and worked toward financial solvency. Once you are there, the benefits multiply as you have outlined in your post.

It does annoy me to hear people with huge CC debt gloat about their CC debt settlement for a fraction of what they owed... But, then again, I wouldn't trade places and I'm thankful (and proud) I've never been a drag on anyone.
merch Says:
March 5th, 2009 at 10:21 pm 1236291686
1236291686

To be truly campassionate, we do have to take care of peole on the fringes of society who can't take care of themselves.

What I object to is irresponsible people not being held accountable for their behavior. And responsible people needing to pay a larger and larger price.

And that's whether it's the CEO who collected $100 million while driving the company into the ground or the neighbor who bought a house with a ninja loan for 103% value of the house.
monkeymama Says:
March 5th, 2009 at 11:40 pm 1236296427
1236296427

Merch - are you saying that people who took ninja loans are not paying a price? They sure are around here. Which I guess is much of my point.

I wanted to clarify in regards to Analise's comment. I am not saying only people who are doing well should be proud. I guess along with Merch's comments, people who take responsibility for their own actions, they should be proud about that. Whether you are struggling or doing well, just be proud you are trying your best to do the right thing!
gamecock43 Says:
March 6th, 2009 at 05:16 am 1236316567
1236316567

that's a good way to look at the Welfare system. That if you qualify for it you have stresses that I could not even imagine, and therefore its not something to be jealous of.
whitestripe Says:
March 11th, 2009 at 12:37 am 1236731849
1236731849

i could never be jealous of someone on government benefits (we call it centrelink here). honestly i could never live off the payments they recieve and maintain ANY sort of the life i have. i'm not a snob, but the places to rent that you can afford are terrible when you're on centrelink. after paying rent and bills, you re lucky to afford a very very small food budget, and practically nothing for any other sort of expense. you really do NOT get any sort of amount to live on comfortably. DF's sister has been on centrelink for years (i do think that people are in unfortunate circumstances when they are on benefits, but then there are some people just don't want to help their circumstances either - in the case of DF's sister anyway). she has been living this way for so long that she's used to living on around $200 a week, and thinks it's a big deal to save $300 a year.

anyway, so my point is, i would never aim to earn less so i could recieve a handout. whenever i hear of something that i don't get because i earn 'too much', i think to myself, that that is an achievement, to not require assistance.

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Monkey Mama*s Monkey Money Blog

Over Prepare, Then Go With The Flow

Be Proud for Being Responsible!

6 Responses to “Be Proud for Being Responsible!”

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