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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.

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

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

OT Update

April 24th, 2017 at 01:09 pm

**Work has been totally crazy and will be for a while. On the plus side, I did get my annual OT payout.

I do have $3,000 to throw at the mortgage, which is my minimum annual OT goal.

**I did also pay off the TV with my OT check.

My husband was so aggravated with the store he bought the TV from. He had negotiated at several stores, trying to see how much wiggle room he could get on price. & settled on one store that we buy most our electronics from. Since he was haggling, they told him to just buy it on an installment plan. Not the right thing to say to my husband. He was PISSED. He told me about that later. He said, "Who on earth buys a TV on credit?!" Um, just about everyone?? He just has no clue. He's a "debt = hair on fire emergency" type, so he was just completely dumbfounded by the suggestion, and aggravated that they were trying to sell him a payment plan to "save money." Rolleyes

{In case I wasn't clear, their whole sales pitch was, "Who cares how much it cost? Just throw it on credit!" We chose to *care* and to negotiate the price down.}

Even though I am well aware that most people put this kind of stuff on credit, I suppose it often doesn't register. I wondered aloud in a recent blog post why people would pay full retail price for these type things. When wondering that, I Was presuming everyone pays cash. It's not always front of mind how "weird" we are. I guess it makes a little more sense if I step back and realize that most these sales are made on credit.

Posted in Spending, Just Thinking | 9 Comments »

9 Responses to “OT Update”

LivingAlmostLarge Says:
April 24th, 2017 at 03:05 pm 1493046341
1493046341

Great work on OT
creditcardfree Says:
April 24th, 2017 at 03:57 pm 1493049475
1493049475

I was in an electronics store sometime in the last year inquiring about price and sales on something that was around $400. I was offered a payment plan too! I was shocked at the suggestion, as though this was a big purchase like a car! I really think people don't think through all their options and alternatives before making larger purchases.
Laura S. Says:
April 24th, 2017 at 04:15 pm 1493050536
1493050536

I have a small budget, but I cannot imagine financing anything other than an education, home or car.
Kaycee Fisher Says:
April 24th, 2017 at 11:37 pm 1493077029
1493077029

It's a win/win to take the payment plan. IF/when you do it right. You don't tie up all your cash and it is an interest free loan. Who wouldn't take that kind of offer??
lirpalynn Says:
April 25th, 2017 at 01:05 am 1493082359
1493082359

I remember being 19 years old and I had a boyfriend that worked at Rent a Center. Boggled my mind when he rented a couch, loveseat and HUGE tv. But it was "such a great deal" at $X a week. We got into a huge argument because I wouldn't agree that it makes sense in any world to rent (sort of what I would consider a payment plan here 19 years later) things and end up paying MORE because of finance charges. But it boggled his mind that anyone would/could ever save up to buy something like a couch. Oh my. I just wasn't raised that way. I'm glad that relationship didn't last long.
VS_ozgirl Says:
April 25th, 2017 at 12:10 pm 1493122223
1493122223

Payment plans are simply another type of debt, even if it is interest-free. Simply because you now have to allow for that payment to come out of your account weekly, monthly, whatever. I agree with your husband; why on earth would you put a tv on credit? But the salespeople simply want to make a sale so they will use whatever angle they have. Here in Australia there is a payment plan called "Afterpay" which is being promoted throughout various stores and online stores. What a crock. The rules of Afterpay is that the item must be paid off in four weekly instalments; so when there is an $80 tshirt next to it they put "only $20 per week in Afterpay". I couldn't be bothered with the headache but I guess some people find it appealing.
LuckyRobin Says:
April 26th, 2017 at 06:50 pm 1493232647
1493232647

I will do the 18 months same as cash deals, but only after I have saved up the money for the item, and then that money sits in the account collecting interest as I make the monthly installments. If I can, I cash flow it out of the monthly budget, and then whatever money is left in that fund can be transferred to another fund or the EF. If I can't cash flow it, then I pay it out of the fund.

My reasons for this are two fold. It can be an easy way to put a big chunk of money into the EF or another fund later on and two, it builds my personal credit. Most of my credit is joint with my husband. I need to have my own separate credit and doing this occasionally without him anywhere on it, gives me my own history, so that if something ever happens to him, I have a history of paying things on time on my own. I would never do it where I have to pay interest, though.
MonkeyMama Says:
April 30th, 2017 at 12:02 am 1493510569
1493510569

Lord knows if they gave us a discount, we would have taken store credit, in exchange. *shrugs*
creditcardfree Says:
April 30th, 2017 at 10:48 am 1493549337
1493549337

I have to add that I've learned I really despise monthly payments. I want our finances as simple as possible. I just don't want to deal with one more payment, so where we are in life puts me in pay it in full at the time of purchase. And yes, if give a discount to take credit I might consider it. But if I have to open a store card to do so, that is a real toss up. I guess it would depend on the amount of the discount.

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Monkey Mama*s Monkey Money Blog

Over Prepare, Then Go With The Flow

OT Update

9 Responses to “OT Update”

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