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Enjoying the new pages...

March 24th, 2007 at 02:56 pm

I added some pages on the side - really like the feature. Particularly nice for the $20 challenge and my list of items bought new/used/free. Easier to find and update than going through old entries - woohoho.

So I did update the new/used/free list. Dh keeps buying these cheap beard trimmers that don't last long and just bought another one. I wish he would just buy something nice! & we mutilated the house phone. Kids are so rough with it we figured it had a premature death - seems like we just replaced the old one a couple of years ago. So we discussed it and decided to get something cheap until the kids are a little older. Was the answering machine/phone combo. So dh picked one up and it was pure crap. We are really limited to the type of phone with all the interference from other electronics. So dh found a nice phone with 3 handsets (so we can replace if 1 gets broke) for around $99 and another one for $109 at a completely new phone frequency. We figured we'd try the $99 one first and if didn't work, maybe try out this new frequency. Anyway, the phones are really nice. We have a 2-handset one for upstairs and I have an alarm clock/phone on the bed so we added one handset upstairs and kept 2 downstairs. Basically added one to my office and one to the theatre room. MEans we have like an actual phone for every dang room in our house - LOL. Way overkill, but will be nice when the kids break another handset that we have a couple of extras.

Well dh's mom is a teacher and we were ordering scholastic books through catalogs and warehouse sales (great deals) when his mom found out and gave us her online password to scholastic - said she has a zillion points for free books - we couldn't possibly use them all this life. So dh ordered a few books last night. & 3 video games he tells me (2 leapster games and a Game Cube game for the kids). All FREE though, just can't beat that. Added it to me free list on the side.

In other news, I had an "aha" moment. I saw the discussion of adding some emergency funds (over the minimum) to mutual funds. I had never thought of that before. I would really like to have $30k-$50k in an emergency fund, which I know to many is overkill. But I feel good having some decent cash. Though for job loss and such we need little - my industry is just insane right now - the odds I'd be out of a job for more than one day are slim to none and weathered the last recession easily, even before all this craziness. So I have been considering once we get our 3 months expenses (around $12k) in cash that we will invest a little in a balanced mutual fund. Something like Vanguard Wellesely which historically has never gone down much but has some decent returns. Odds are we won't need the money, and yet I will sleep better knowing we have liquid assets if I indeed lost a job or our house flooded away. But I won't be wasting away too much money in cash. Anyway, it's an idea. If so I would probably move over the $3k minimum (keeping 3 months in cash) and from there contribute 1/2 our savings to cash e-fund and 1/2 to mutual fund e-fund. We also need to save up money for a car but prospect is that it will be a good 10 years. So all the more reason - make it the car fund or something. Since we are in such a low tax bracket I may consider moving the mutual fund back over to cash before our income got too high with a 2nd job all the same. Oh depends on capital gain rates and all that at the time I guess. Does not have to stay there forever, but in the meantime seems like an idea.

Well it's an idea for now. Won't have the minimum in cash plus the $3k Vanguard minimum for another year at least. We'll re-evaluate then. Just pleased to think of something new I hadn't thought of before. It doesn't have to be so all or nothing. If I Want $100k liquid funds, doesn't have to all be cash. Hmmmm...

P.S. I decided to take Sunday off and we are going to the Bay after all. I must be crazy - but I look forward to a fun day. I am taking the kids alone so dh can get a break - hence the extra craziness. Work is really crazy until the 30th but I think the worst will be over April 15th - well I REALLY hope so. So a weekend day off just to enjoy and have fun sounds nice - will hopefully get me through the next 3 weeks.

2 Responses to “Enjoying the new pages...”

  1. zetta Says:

    I don't get why you would move the money out of the mutual fund and back into cash once you have more income. Let's take a hypothetical $10k and compare 5% interest vs 10% capital gains. So you could be taxed on your $500 in interest or $1000 in capital gains and dividends. After paying taxes you're still going to be ahead by several hundred dollars by having your money grow at the higher rate. If it's a cash flow issue, you could sell a small portion of the mutual fund to cover the taxes -- but with the 2nd income you'll have more cash flowing so I doubt it will be a problem.

  2. monkeymama Says:

    BEcause I am quite risk adverse and once we are much better off financially I will prefer to have more in cash.

    In the meantime it would be ridiculous to tie so much up in cash that I don't think I would really need. What it comes down to really. I didn't clarify.

    I am thinking in current interest-rate terms as well. Will depend on SO many factors. Taxes change with the wind.

    But it was actually your post (a post in the forums) that got me thinking and looking at some balanced funds. I do think it is a good idea in the short-term. We don't need to be hoarding cash right now, just puts us behind with so little to save. Thank you for the idea. The conventional wisdom is an e-fund is so all or nothing - cash. Just something I hadn't thought of before... & little discussed. I think you have to tread carefully having your rainy day funds tied to the market at all. But at the same time there are plenty of financially repsonsible people with many emergency options (like us) where this kind of thing makes since.

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