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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.

-------------------------

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 Baby Fund

July 8th, 2011 at 02:02 am

I was listening to Dave Ramey (alright - he's grown on me, I admit it!)

Anyway, was telling someone to hoard up cash for impending birth of baby.

"Listen to Dave!!!" I was thinking, because no one ever listens to this advice.

Anyway, then I Was deflated when Dave said, "Throw it all at the debt when you get home from the hospital - everyone healthy."

Seriously?

Not what I was thinking!

Okay. To be fair, this is a "get out of debt" show. So, maybe this is the right thing to do when deep in debt. I'll give him that. (I'd personally pay off the debt before having a baby - but I suppose not everyone can possibly pull that off!)

I guess, it just seems to be the norm to get caught off guard financially when it comes to babies.

So let me break down why I think it's important to keep cash on hand when you have a baby. Ideally you have several months to save up:

**Unintended disability - I think Dave has this one covered. Save up that cash in case you end up on bed rest or unable to work.

**Health Issues with delivery - mom health issues, baby health issues - whatever. You may get some big medical bills. This seems to be Dave's primary concern.

Oh no - it doesn't end there.

**So you thought you could work, but now it's the last thing you want to do. Ooops, but you didn't save a penny and there is nothing you can do. You can't even prolong your maternity leave by one week. That's gotta suck!

**So you are working and are happy, but under-estimated how daycare was going to eat up most your paycheck.

**Clean bill of health the minute you got home from the hospital, but health issues crop up later. (PPD, anyone?)

& on and on it goes...

& honestly - who here with kids had everything go exactly according to plan? You had EVERYTHING figured out beforehand, right? Wink

Honestly, a little cash in the bank can mean the difference between YEARS of misery and a lot of freedom and flexibility.

All that said, I think I probably dole out the same advice as Dave. I see pregnant women all the time who don't seem to consider the possibility that they might not be able to work 9 months. That really may be the main problem. Because then you just start out in the hole, and it really erodes your options. Like it's that unheard of for something (anything) to throw you off track. Unemployment? Disability? Bed rest? So, maybe that is the most important time to focus on some cash savings.

We learned the hard way. I looked forward to saving 9 months x $2500 (dh's take home) before baby arrived. What is that? Almost $23,000?

He got laid off the second I got pregnant. Which put us significantly under our savings plan. & one reason we felt this plan was important was in case I ended up being unable to work full-time to full term.

We are way super crazy overly cautious and had $30,000 in the bank. & things have been way tighter than we planned for. But I admit watching the majority of new parents with $0 in the bank - we obviously have had it pretty easy in comparison.

& frankly, baby #1 was easy peasy, but the extra cash cushion came in handy with baby #2, in our case. Everything about #1 was pretty easy. Everything about baby #2 was not so easy. & that's just one more reason not to get rid of all your cash the second you have your first baby. Wink

But seriously, I feel like having kids is a lesson in learning that NOTHING ever goes to plan. When it comes to kids, does it ever?

Posted in Just Thinking | 8 Comments »

8 Responses to “The Baby Fund”

M E 2 Says:
July 8th, 2011 at 02:43 am 1310093036
1310093036

There is a VERY OLD saying something to the effect of: if everyone waited to have kids until they could afford it, no one ever would. (have kids)
Mozaik Says:
July 8th, 2011 at 04:07 am 1310098046
1310098046

A new baby doesn't need 1/2 the stuff that's suggested, lots of gently used new baby clothes at the thrift shops since babies outgrow layettes remarkably fast. As for stuff on Craig'slist. Make sure all equipment meets constantly changing codes
baselle Says:
July 8th, 2011 at 04:08 am 1310098110
1310098110

...and routine additional expenses that you didn't think of: diapers and baby food and nursery items and baby clothes and and ... The baby shower maybe can cover some of it, but these are the increased expenses that you have to cover daily for baby and beyond.
PNW Mom Says:
July 8th, 2011 at 04:14 am 1310098473
1310098473

I think you are spot on! My sister works with a guy who just got married, has 2 step daughters and they are expecting a baby in Oct....wife just quit her job ....my sister thinks it is because it is summer and she wants to stay home with her girls...problem is....her poor co-working is killing himself working two jobs, hardly gets any sleep, is super stressed, and money is tight. It doesn't appear the wife couldn't work for medical reasons or anything like that. Neither of us gets that kind of thinking! There is some truth to the above old saying but that being said, it certainly doesn't hurt to think ahead and plan a bit.
MonkeyMama Says:
July 8th, 2011 at 03:11 pm 1310137897
1310137897

"A new baby doesn't need 1/2 the stuff that's suggested"

@Mozaic - I was thinking more daycare, lost wages, health insurance, etc. These are the EXPENSIVE parts of having a baby.
MonkeyMama Says:
July 8th, 2011 at 03:12 pm 1310137925
1310137925

@ME2 - I don't disagree at all with your statement - BUT - doesn't excuse lack of preparation or mean you shouldn't try. Why make it harder than it has to be?
MonkeyMama Says:
July 8th, 2011 at 04:01 pm 1310140889
1310140889

"A new baby doesn't need 1/2 the stuff that's suggested"

@Mozaic - I was thinking more daycare, lost wages, health insurance, etc. These are the EXPENSIVE parts of having a baby.

You'll notice that *baby stuff* was not the focus of my post.
MonkeyMama Says:
July 8th, 2011 at 04:08 pm 1310141292
1310141292

@Baselle - I find most parents overly focus on the stuff, diapers, formula and are actually prepared for that. They just seem to think of nothing beyond that.

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Monkey Mama*s Monkey Money Blog

Over Prepare, Then Go With The Flow

The Baby Fund

8 Responses to “The Baby Fund”

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