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About Me:

Monkey Mama

Just a 47-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.

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
...($156 @ 6/30/24)
...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
MM YEAR 5

DL YEAR 1 ✔
DL YEAR 2
DL YEAR 3

[ ]$10,000 to savings
...($7,121 @ 8/31/24)
...$1,000/month, plus interest
...Topping off with snowballs

[ ]$7,500 to investments
...($3,691 @ 8/31/24)
...~~$350~~ $400/month, plus snowflakes
(Snowflakes: credit card rewards and dividends)
...Topping off with snowballs
...Note: Bumped up to $400 9/1, re: reduced food expenses

[ ]$2,025 to mortgage
...($0 @ 8/31/24)
...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% @ 8/31/24)
...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 @ 8/31/24)
...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>
2023: +$ 90,000
TOTAL: +$570,000

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

Scholarship Surprise

September 24th, 2024 at 01:10 am

I was just double checking MM's bank account before sending him rent money for October. There was a random $500 deposit from his college that confused me for a beat, but I eventually realized that it must be a scholarship. What!? I figured maybe MM(21) didn't know about it. But he did know and just never bothered to tell me. It's a $1,500 scholarship for the year ($500 per quarter).

Talk about a nice surprise! It's all money in MM(21)'s pocket. I am depositing the $500 back into his 'gifted college fund'.

MM(21) Year 4 'Gifted College Fund': $16,750 (+$5K ROTH IRA ~ unknown current value)

Still no idea how MM(21)'s grant will sort out this year. I should have some answers in November and then I will know what net tuition costs will actually be this school year. & at that point I should have a pretty good idea about our 5-year tuition cost. I'll do an update at that time.

It was a big money day. DL(19) also got his first paycheck for first more steady job. It's the first job my kids have had that isn't just a summer or a temp job. DL(19) received a $750 check for 2 weeks of pay. & I think he's worked another 4 weeks already (the State pays monthly).

I don't know that DL(19) has ever made a big purchase. At the moment he owes me $400 for some car maintenance. Not that he borrowed the money from me. But we went in 50/50 with the cost and I was just being nice and waiting for his payday before I asked for his 50%. He told me that he wants to buy a used bike for $500-ish. This is probably his first big purchase, ever.

I guess now it will be all the things. He will need a high yield savings account (first priority is to save up for a car), I want him to apply for a credit card in his own name (now that he has income), and we will talk about saving for retirement. His employer is taking 7.5% for retirement (mandatory). DL(19) was playing with stock market type simulators when he was 10, maybe younger. I wouldn't necessarily prioritize taxable investing for a 19yo but I think he will like making his money work for him. One thing at a time, but it all needs to be addressed as the money starts to pile up.

Posted in Just Thinking, College | 6 Comments »

6 Responses to “Scholarship Surprise”

Tabs Says:
September 24th, 2024 at 03:01 am 1727146904
1727146904

Hey, congrats on your son for reeling in that scholarship money!

Stock simulators at age of 10 though eh? Hopefully, he leans more towards Warren Buffet, and not the guy wearing a barrel after a rousing night at a Vegas c-a-s-i-n-o (apparently that's a forbidden C word).
LivingAlmostLarge Says:
September 24th, 2024 at 03:43 am 1727149391
1727149391

yay congrats!
mumof2 Says:
September 24th, 2024 at 08:36 am 1727166978
1727166978

congrats on the scholarship...every little bit helps
MonkeyMama Says:
September 24th, 2024 at 03:10 pm 1727190628
1727190628

@Tabs, he's not the gambling type. More just doesn't see the point of stuffing money under the mattress when he can get 10% (average) in the stock market. & just seemed to naturally know this when he was a kid. So it will be interesting to see what he does with more than a couple of thousand dollars to his name.
Single Guy Says:
September 24th, 2024 at 08:49 pm 1727210984
1727210984

Well, it's been many years since I got a scholarship like that (also $500 back in the day) but all it did was nothing, as my university immediately lowered my family income needs grant by $500. Hopefully that's not the case for you, but back then it left a sour taste in my mouth when I would think about it.
rob62521 Says:
September 26th, 2024 at 05:00 pm 1727370036
1727370036

That's great about the "surprise" scholarship.

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Monkey Mama*s Monkey Money Blog

Over Prepare, Then Go With The Flow

Scholarship Surprise

6 Responses to “Scholarship Surprise”

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