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Saving Saving Saving

April 3rd, 2014 at 06:39 am

I guess this is the opposite of my last post. Big Grin

**I finally got my 2013 ROTH funded. Sent $4,950 off yesterday, after my paycheck hit the bank. I did not have to come up with the other $550 because my credit card rewards covered it (those get deposited automatically every month).

I updated sidebar.

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**Grandma always *insists* on paying me $300 for doing her taxes. I am going to try to be more vocal this year about her not paying me. She owed a lot of tax. So, I will try.

But... If she insists, we will just throw it at the mortgage. I would be pleased with that. IT would put our snowflakes to $1,000-ish for the year, which is about all we came up with in 2013. So I would be very pleased with that. We don't plan to throw any snowflakes at the mortgage for the rest of the year, so it will be a nice goal to meet in April. That said, I am not really concerned with it either way. If I can talk her into not paying me, we will let it go or I will just deposit $300 from my overtime check.

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**I guess it's feast or famine. I intend to hit most my "2014 savings" goal with my overtime check in 2 weeks. So, that might be $10,000 in financial goals officially hit this month (Overtime + 2013 ROTH). {I could have tallied ROTH savings month to month (have just been hoarding up cash since February 1), but I didn't really want to update my sidebar until I transferred money physically into my IRA}.

The goal for the rest of the year is to save $1300/month towards 2014 IRAs.

In addition, we will save $150/month + snowflakes and windfalls. I am going to open a "taxable" investment account for this money. I put "taxable" in quotes because our investment returns will mostly be tax-free due to our low tax bracket. We are starting small, but expecting to gain some significant momentum pretty quickly. Since our cash savings is pretty robust at this point, this should be where all our non-retirement savings goes.

5 Responses to “Saving Saving Saving”

  1. creditcardfree Says:

    I've been pondering a 'taxable' fund too. When DH gets his raise I will figure the amount, but it seems we finally will have some more cash to invest...and I don't want it all to get squandered away on college!

  2. Mooshocker Says:

    You are such an amazing "monkey"...truly an inspiration

  3. snafu Says:

    With savings instruments so low paying, I'm surprised that SA participants avoid taxable investing. I'm flamed regularly but figure we all have different experiences. We top up our retirement accounts and TFSA . Those can be offset when I make a mistake or if we suffer a 2008-like meltdown.

    The most difficult aspect is to decide what to buy at what price and then action the plan. Right now I'm waffling on a REIT for example. I suggest a gentle entrance via DCA for a no fee, low MER Index Fund. You can make changes as you wish based on your RISK comfort zone and allocation desire.

  4. snafu Says:

    Sorry, keep losing sentences...Trying to say we've had a taxable invement account for surplus funds for a long time. Capital gains cause tax consequences.

  5. MonkeyMama Says:

    Basically, all this means is I have more money to invest than I have useful tax-advantaged accounts (& more than short-term cash needs). It doesn't really mean anything more than that. I don't think taxable investing really means much in this day and age with 401ks, IRAs, 529 plans, HSAs, etc. You can tax shelter a crapload of money if you so desire. (I think blog commenters have a tendency to read way too much into things. As if having a taxable account is *any* indication to how much you have invested).

    The purpose of this money is mostly to start a college fund for our kids. We find 529 plans pretty useless given our circumstances. But since this will be a taxable account, it's just kind of a "college/mortgage payoff/retirement" fund. (I don't expect to really need any of this money for college, which is why it has not been a big priority, but just buys us more options).

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