Author Topic: Race to 50K  (Read 2307 times)

Rosy

  • Handlebar Stache
  • *****
  • Posts: 1143
  • Location: Florida
Race to 50K
« on: June 05, 2017, 02:37:49 PM »
Can you imagine seeing 50K on your own statement? I can't quite yet, but I just figured out a plan on how to get there - in 30 months (less than a 3 yr car loan:)

This is a challenge to reach 50K - devise your own plan, state your deadline and go for it!
To be clear, this is not a Net Worth challenge - this is a savings/investment challenge. Doesn't matter if you presently have zero NW or 100K+ already.


Here is my plan:
$50K by December 31, 2019
$1666.66 mo x 30 mo = $50,000  - I can do this!:) says she, fiercely wishing it to be true.

So here we go:
June 2017
$  $1533 - still need $133 by the end of the month - wish me luck.
« Last Edit: June 08, 2017, 02:20:54 PM by Rosy »

TartanTallulah

  • Stubble
  • **
  • Posts: 228
  • Location: The Middle of Scenic Nowhere
Re: Save or invest - 50K
« Reply #1 on: June 06, 2017, 04:43:29 AM »
I wish you lots of luck, strength, wisdom and determination, and as few obstacles as possible. Have you decided how you're going to apportion the money as you save it?

(I have a similar challenge, with a slightly different time frame and target, and a sketched-out plan of how I'm going to make it happen and how the savings are going to be divided in order to meet my requirements at different points in time as efficiently as possible. It feels a bit like spending money and still having it.)



Rosy

  • Handlebar Stache
  • *****
  • Posts: 1143
  • Location: Florida
Re: Save or invest - 50K
« Reply #2 on: June 06, 2017, 01:51:20 PM »
I wish you lots of luck, strength, wisdom and determination, and as few obstacles as possible. Have you decided how you're going to apportion the money as you save it?

(I have a similar challenge, with a slightly different time frame and target, and a sketched-out plan of how I'm going to make it happen and how the savings are going to be divided in order to meet my requirements at different points in time as efficiently as possible. It feels a bit like spending money and still having it.)

No concrete plan on how I will ultimately apportion it - other than that I'm leaning toward 50% investment and 50% savings
right now, I'm thinking 6 months ahead - Jun-Dec = 10K if all goes to plan:)
I am pondering if I should place it in Vanguard Admiral shares once it hits 10K.

Or - after three months I'd have enough to open a regular Vanguard account and then simply add the monthly savings until I reached 25K
Or - possibly stop at 10K investments and put the next 10K into a CD or similar vehicle

I wish I were smart enough to figure out a way to make the 25K cash savings work for me too, other than interest. A super secret stock tip? a hot new company? 

@TartanTallulah - I'm curious - So what were you thinking of doing that would be a bit like spending money and still having it?

TartanTallulah

  • Stubble
  • **
  • Posts: 228
  • Location: The Middle of Scenic Nowhere
Re: Save or invest - 50K
« Reply #3 on: June 07, 2017, 09:54:25 AM »

@TartanTallulah - I'm curious - So what were you thinking of doing that would be a bit like spending money and still having it?

It's just a psychological thing, I haven't found the Holy Grail! Being focused on saving and investing with a definite endpoint means that every time I plan and make a deposit in my interest-bearing cash account, after-tax investment account, or freestanding pension fund it feels like I'm spending money and getting something I value for it, even though that something is as intangible as making measurable progress towards my goal, rather than letting it dissipate into household expenditure.



Rosy

  • Handlebar Stache
  • *****
  • Posts: 1143
  • Location: Florida
Re: Race to 50K
« Reply #4 on: June 08, 2017, 02:17:23 PM »
Yes, makes perfect sense to me. ^^^ If every dollar has a purpose it is much easier to stay on track. Automatic savings is the best invention ever - I don't ever really "have" the money, it goes to a different account and it is fun to see your stash grow.

I just looked up to read the inscription on the coin of the Mustachian logo (banner) - Financial Freedom through Badassity - so true.
Be back to post at the end of June - to record whether I made my first monthly goal of $1666.66
In the meantime, maybe I can find a new bank that pays both a bonus and offers at least 1% or better APY.
« Last Edit: June 08, 2017, 02:21:38 PM by Rosy »

MommyCake

  • Stubble
  • **
  • Posts: 102
  • Location: NJ
Re: Race to 50K
« Reply #5 on: June 09, 2017, 06:27:43 AM »
Hi Rosy!  I think I will join you!  I really need to have a 50k balance in my TSP in the next 30 months.

My balance is depressing low at 29k.  I am currently adding only $440 a month (minimum I can do to still get the max match) as I stash cash for a rental property down payment.  I really need to give the retirement account some attention.  My average returns on this account are 8%, and at this rate (440 a month deposit with 8% returns) the online calculator I used says I will reach 50k in exactly 30 months.  So while this doesn't seem like much of a challenge for me, it means if my returns are not actually 8%, I will have to increase my deposits to hit that 50k.  Not as exciting a plan as yours for sure!

TartanTallulah

  • Stubble
  • **
  • Posts: 228
  • Location: The Middle of Scenic Nowhere
Re: Race to 50K
« Reply #6 on: June 09, 2017, 03:59:01 PM »
Automatic savings is the best invention ever - I don't ever really "have" the money, it goes to a different account and it is fun to see your stash grow.


Very true. The main reason I'm close to being able to claim a meagre sort of FI is that over the years I've had a payroll deduction with employer contributions which has meant that I've saved money without ever seeing it, and that has protected me through years of financial carelessness. That, and a phobia of debt which has meant that I've never had actual money troubles.

I've been selling off the remaining stock from an online shop that was my husband's "job" while he was a SAHP, but which was really just a hobby and was never profitable. He closed the business a few years ago and the stock has just stayed in the cupboard, neatly organised and in as-new condition. I've priced it to sell and cut our losses rather than to break even. So far, deducting the cost of postage and eBay and PayPal fees, I've made enough for my husband to double his monthly pension contribution for 12 months and almost covered the cost of a piece of workshop equipment that needed replacing - our "jam today" portion. Anything above that will be mine to invest, and I've earmarked it for my after-tax investments which I intend to leave for as long as possible but will be able to access any time if I need it.  The actual numbers are small, but when you've got a target it all counts.



Rosy

  • Handlebar Stache
  • *****
  • Posts: 1143
  • Location: Florida
Re: Race to 50K
« Reply #7 on: June 10, 2017, 02:30:17 PM »
Hi Rosy!  I think I will join you!  I really need to have a 50k balance in my TSP in the next 30 months.

My balance is depressing low at 29k.  I am currently adding only $440 a month (minimum I can do to still get the max match) as I stash cash for a rental property down payment.  I really need to give the retirement account some attention.  My average returns on this account are 8%, and at this rate (440 a month deposit with 8% returns) the online calculator I used says I will reach 50k in exactly 30 months.  So while this doesn't seem like much of a challenge for me, it means if my returns are not actually 8%, I will have to increase my deposits to hit that 50k.  Not as exciting a plan as yours for sure!

@mommycake - Welcome to the challenge and thanks for joining me - I am thrilled to have some company on this long journey. 
I'm holding you to it:) $440 x30 months for you to reach your goal of 50K.
Oh, I don't know about yours not being as exciting as my goal - $50K is plenty exciting no matter how you look at it.

So tell me, how will you make up the difference - if it plummets below 8%? Quarterly? Spare change - side gig?

@TartanTallulah That sounds like a lot of work to me - yay you for pulling it off. You know, I think it is always the small stuff that adds up or sinks us. Those are some impressive results either way.
I've decided to work a bit more on my own side gigs, an area that I totally neglected this year. Mostly, because for three months I couldn't see - eye surgery related. Then we had company for weeks and indulged in a nice long vacation - so it is time to examine our financial lives and work on long term goals.
My plan is among other things to update my long neglected photography website. Just signed up for some classes to improve my skills, partly because I hope to improve my sales, but even more so, because I really enjoy it and now that we replaced the old computer and monitor, I'm ready to roll with edits and uploads. It was a real pain before.
Who knows, you and I may well exceed our goals and timelines - good luck!

MommyCake

  • Stubble
  • **
  • Posts: 102
  • Location: NJ
Re: Race to 50K
« Reply #8 on: June 14, 2017, 04:38:24 AM »
Hi Rosy,

If I have to increase my retirement deposits, I will have to spend less on groceries and baby stuff.  I have a tendency to spend more than necessary on these areas.  Right now I know my daughter needs a new swimsuit/sun hat/ sunglasses.  There is a perfectly nice second hand store I can go to for these items to save money.  Also I can temporarily cut my food budget by buying less meat and shopping at Aldi's more instead of the closer grocery store.  Actually I should probably do these things anyway! and not just if my market returns decrease :)

westtoeast

  • Stubble
  • **
  • Posts: 220
  • Location: East Coast City
Re: Race to 50K
« Reply #9 on: June 14, 2017, 05:32:49 AM »
Hi, I'd love to join! I put myself in the race to 100k challenge but that's so far off that I find myself ignoring the thread.

Here's where I am:
$7100 in Emergency Fund
$9,400 in Roth & 457 investment accounts
$9,500 in pension (post-tax)... not sure if I should count this but chances are high I'll withdraw it prior to vesting.
Total w/o pension: $16,500
Total w/ pension: $26,000

I also have a few thousand in a short terms savings account for travel and stuff-- I won't count that.

My plan: I'm a teacher so my numbers look funny in summer.
June: $500 --> EF
July: $1200 of summer school salary --> EF
Sept-June: $1300 --> 457; $200 --> EF (per month)

I'm in a high cost area and I'm aggressively paying student loan down so these numbers are as high as I can!

Goals: (w/o pension)
June 2018: 33,000
June 2019: 50,000




Sent from my iPhone using Tapatalk

Rosy

  • Handlebar Stache
  • *****
  • Posts: 1143
  • Location: Florida
Re: Race to 50K
« Reply #10 on: June 16, 2017, 08:25:41 PM »
Hi Rosy,

If I have to increase my retirement deposits, I will have to spend less on groceries and baby stuff.  I have a tendency to spend more than necessary on these areas.  Right now I know my daughter needs a new swimsuit/sun hat/ sunglasses.  There is a perfectly nice second hand store I can go to for these items to save money.  Also I can temporarily cut my food budget by buying less meat and shopping at Aldi's more instead of the closer grocery store.  Actually I should probably do these things anyway! and not just if my market returns decrease :)

Exactly! Once it becomes a habit, you'll automatically do it - almost as good as having automatic savings withdrawals. You can do it!:)

 I'm so tight this month, even the $134 extra savings is going to be tougher than I thought it would be. Not the best start, but hey, what's life without a little challenge? I just need to come up with some ideas to generate some extra cash - $134 would be a nice start:)


Hi, I'd love to join! I put myself in the race to 100k challenge but that's so far off that I find myself ignoring the thread.

Goals: (w/o pension)
June 2018: 33,000
June 2019: 50,000


Sent from my iPhone using Tapatalk

Welcome to the challenge westtoeast! Glad to have you join our journey to 50K.
 I know, I was thinking the same thing, that 100K is way too far off and honestly may or may not ever happen for me. For now, I am very happy to have figured out how to get to 50K in 30 months - so I am sticking to my plan - although, this first month is proving tricky already.

Good luck with your summer teaching job!

Rosy

  • Handlebar Stache
  • *****
  • Posts: 1143
  • Location: Florida
Re: Race to 50K
« Reply #11 on: June 22, 2017, 08:25:24 AM »

Here is my plan:
$50K by December 31, 2019
$1666.66 mo x 30 mo = $50,000
- I can do this!:) says she, fiercely wishing it to be true.

So here we go:
June 2017
$  $1533 - still need $133 by the end of the month - wish me luck.

Whoa:) - Update:

June 2017
New balance: $ 4,588.92 - "only" $45,411.08 more to go:)

Mindgames:)  I only counted the $1.5K that I was due on the 21st of June, this month.
I was so focused on the process in my head about how to reach 50K within 30 mo that I forgot to count what I already had saved as of May, because I originally thought I needed that money to cover June expenses, but then figured out ways to hang onto it all - by my fingernails.
So June is indeed an uber frugal month for me, but with these results I don't mind.

I am obsessed with reaching that 50K goal, the sooner the better:)
I plan to stay uber focused and hope that throwing a little extra at it each month will speed up the process along the way.

Outlook for July 2017:
As long as I make the $1,666 happen in July then I'm golden, because that is the last month with (larger than comfortable for me, if I also want to save) cc pmts.
I definitely need a side gig to make it through July unscathed.
(Reminder math games for myself: $45,411.08 new bal divided by 29 months to go = $1,565.90 mo - reduced mo sav would still get me to my goal of 50K by Dec 2018 as planned.) Right now I am almost two months ahead of schedule - I like that.

Thanks guys for hanging out with me as I try to make it all happen as planned - or sooner:)
Good luck with your goals!

TartanTallulah

  • Stubble
  • **
  • Posts: 228
  • Location: The Middle of Scenic Nowhere
Re: Race to 50K
« Reply #12 on: June 22, 2017, 12:19:53 PM »
It's always a good feeling to be ahead. Well done Rosy!

I have scope to get ahead too. My husband worked lots of overtime last month, and it looks as if he'll have similar working hours for at least the next month though I don't think he could sustain it forever (bless him, he's worked around 50% of the number of hour each week that I usually work - but he does work hard during those hours). And the next three months look like being brutal months at work for me too because we're short-handed. I'd rather work three days a week and have more time to go out to play, but if I work four or five days a week I'll earn more, and our expenses are dropping, so each extra session brings me closer to my target.

8% of my before-tax income gets skimmed off into my pension fund before I see it, I've swept 35% of our total income into our joint linked savings account and another 12% into my ISA, and over the month another 6% gets debited to my husband's pension and my ISA, so if we manage to live on what's left in the checking account (and we should) we'll be saving two-thirds of our joint income this month.

I got round to writing down what I want all our little pots to do at various stages of retirement too. It was a reality check - we're not there yet unless we're prepared to live on grass and roadkill and will have to be focused about saving if I want to retire rather than just having a career break at 55.



MommyCake

  • Stubble
  • **
  • Posts: 102
  • Location: NJ
Re: Race to 50K
« Reply #13 on: June 28, 2017, 05:00:32 AM »
Great job Rosy!  That's a nice jump ahead :)

Rosy

  • Handlebar Stache
  • *****
  • Posts: 1143
  • Location: Florida
Re: Race to 50K
« Reply #14 on: June 30, 2017, 03:27:14 PM »
June 2017 - $4,588.92
July 2017 begins with $6,221.92
- only $43,779.08 more dollars to go

Outlook for July is not as bad as I feared, so I set up trsf of $100, plus my already dedicated $1533. Not a bad start:)

For now, I am getting 0.75% APY with my regular Capital One 360 savings account. But, I noticed that their Money Market account pays 1.10% APY for balances over $10K - that means an extra, free $110 annually, if I transfer once it hits $10K.

Current plan
Right now I am leaning toward a split of $20K Vanguard and $30K liquid savings for my $50K total.
 
1. The current plan is to stash $10K, hope to be there by Sep? - immediately open Money Market @1.10% APY.
2. Then save up 3K by Nov 2017? - open Vanguard account and fill up to $10K - by Apr 2018?
3. Next, I'll switch to 50% save and 50% invest each month, until Vanguard hits $20K, by Apr 2019?
4. Finish line - add another $10K to Money Market by Oct 2019?

I guess a lot depends on whether I can ramp up the process by saving a bit more along the way, so far I am two months ahead of the original target date of Dec 2019.

How about you?




TartanTallulah

  • Stubble
  • **
  • Posts: 228
  • Location: The Middle of Scenic Nowhere
Re: Race to 50K
« Reply #15 on: June 30, 2017, 04:38:30 PM »
Nicely done, Rosy!

Late June/early July might be a leaner savings month in my household. We have two car services to pay for, my husband needed to buy a new smartphone, and we've had a vacation which, though not intrinsically expensive, involved buying an extra three or four tanks of fuel. Some of the money I swept into the linked savings account may be getting swept back into the checking account. I'm hoping that signing up to reducing my grocery spending in July will help retrieve the situation.

My husband had a message from work asking him to continue to work additional hours (24 hours instead of 9 hours a week) for longer than expected. This will provide additional income for saving for the next two months. With both of us working so much overtime, though, we are going to treat ourselves to a fortnight in the sun during the winter.



Rosy

  • Handlebar Stache
  • *****
  • Posts: 1143
  • Location: Florida
Re: Race to 50K
« Reply #16 on: June 30, 2017, 09:12:32 PM »
Quote
With both of us working so much overtime, though, we are going to treat ourselves to a fortnight in the sun during the winter.

Tartan - I wish to get away from the heat in Florida:), but the 4th of July weekend is upon us, so we may indulge as well:)
Looking good for your income - $$$ are a good thing.


MommyCake

  • Stubble
  • **
  • Posts: 102
  • Location: NJ
Re: Race to 50K
« Reply #17 on: July 07, 2017, 08:05:42 AM »
update - 29 months to go...

up 500 from last month to 29,500 in retirement account.  Returns dropped this month so I went ahead and increased my monthly deposits from 440 to 535, set to start next pay period. 

Hope everyone had a good 4th of July!  We had a very low-key holiday but saved money by staying home and hanging in the backyard. 

Rosy

  • Handlebar Stache
  • *****
  • Posts: 1143
  • Location: Florida
Re: Race to 50K
« Reply #18 on: July 10, 2017, 02:33:51 PM »
Looking good Mommy Cake - we're really doing it!

I am obsessed with this 50K goal. Decided to add an extra $2K by redirecting money originally allocated for my Travel stash.
Added small side gig monies to the travel fund instead.

UPDATE:
July 2017
$8,221.92 - only $41,779.08 to go to reach my goal of 50K

YAY - the new ticker worked - I love visuals:)
« Last Edit: July 10, 2017, 02:47:24 PM by Rosy »

MommyCake

  • Stubble
  • **
  • Posts: 102
  • Location: NJ
Re: Race to 50K
« Reply #19 on: July 19, 2017, 04:14:12 AM »
Rosy you are crushing this !!!!!

I hit 30k, yay!  28.5 months left to go, and with my increased deposits I should hit 50k just in time.

Westtoeast, how are you doing? 

TartanTallulah

  • Stubble
  • **
  • Posts: 228
  • Location: The Middle of Scenic Nowhere
Re: Race to 50K
« Reply #20 on: July 19, 2017, 05:09:29 AM »
Yay, everyone's making great progress :-)

I'm doing OK too. My main target is to have a year's projected and researched expenditure in cash by the end of March 2019. My secondary, good-to-have, target is to have a year's expenditure plus the cost of a frivolous midlife crisis set of (two) wheels in cash by the end of March 2019 and not let my husband talk me into the frivolous midlife crisis purchase before I've got time to play on it. If I can keep working until then, everything will fall into place.



westtoeast

  • Stubble
  • **
  • Posts: 220
  • Location: East Coast City
Re: Race to 50K
« Reply #21 on: July 19, 2017, 05:39:29 AM »
Rosy you are crushing this !!!!!

I hit 30k, yay!  28.5 months left to go, and with my increased deposits I should hit 50k just in time.

Westtoeast, how are you doing?


I was just coming to update-- thanks for asking!

My investments just crossed $10,000. My Emergency Fund just crossed $9,000. So my number is now $19,000... feeling pretty excited! It will be $20,000 after my next summer school paycheck. I'm on track to exceed my goal, actually. I should be at $36,000 by this time next year (assuming I don't have to touch my emergency fund).

Nice work everyone, some solid gains!


Sent from my iPhone using Tapatalk

Rosy

  • Handlebar Stache
  • *****
  • Posts: 1143
  • Location: Florida
Re: Race to 50K
« Reply #22 on: July 30, 2017, 08:20:38 AM »
Rosy you are crushing this !!!!!

I hit 30k, yay!  28.5 months left to go, and with my increased deposits I should hit 50k just in time.

Westtoeast, how are you doing?


I was just coming to update-- thanks for asking!

My investments just crossed $10,000. My Emergency Fund just crossed $9,000. So my number is now $19,000... feeling pretty excited! It will be $20,000 after my next summer school paycheck. I'm on track to exceed my goal, actually. I should be at $36,000 by this time next year (assuming I don't have to touch my emergency fund).

Nice work everyone, some solid gains!


Sent from my iPhone using Tapatalk

We are all crushing this:) - yay! You go guys! We got this!

Update:
July ended with $8,221.92

August starts with:
$1,533 auto trsf
$  100  auto trsf
$  200  one time trsf Reg
TOTAL $1833
Looking into finding another $200 this month to reach a cool two thou. My goal is to come up with an even $2K each month from now on, except for Dec.

To keep it real and to keep me motivated, I broke up my 50K goal into five steps - each step is $10K!

PLAN - SUCCESS - reached step one of my five step plan to reach 50K!!!
1. Aug 2017 - $ 10,054 - opening a Money Market account at Capital One - APY 1.10%
- comes with a $200 bank bonus if I qualify, which would sweeten the pot even more.

Next step - open VC by Oct 2017:)
2. Sep 2017 to Feb/Mar 2018 - $10K total. The plan is to open VG acct in Oct 2017 w $3K+ and contribute ea mo until it hits $10K+ (Admiral shares)
3. Apr 2018? - skip savings send to vacation account instead - May 2018 to Oct 2018  - save up to the next $10K online at 1.5% APY
4. Nov 2018 to May 2019 - $1K ea mo to MM and $1K ea mo to VG - total $5K ea = $10K
5. Jun 2019 to Nov 2019 ??? - total $10K - sav/inv?

I can't believe this is really happening. Anticipation - it will be so cool to hit each step, can't wait for the halfway mark.

How are things looking for August for everyone?






MommyCake

  • Stubble
  • **
  • Posts: 102
  • Location: NJ
Re: Race to 50K
« Reply #23 on: August 02, 2017, 04:35:16 AM »
Great job Everyone!!!!!!  Glad we're all on track :)

My last July deposit has me at 30,500 to start out the new month.  July brought great returns, and Mint thinks I will hit 50k by November 2018. 

Rosy

  • Handlebar Stache
  • *****
  • Posts: 1143
  • Location: Florida
Re: Race to 50K
« Reply #24 on: August 10, 2017, 01:29:54 PM »
Just reporting in because of a slight detour.

Aug is now a straight up total of $10K in a CD at 3% APY

Step one completed. $40K more to go:)

GO MOMMYCAKE GO! I'm so jealous:) - love your August numbers.

MommyCake

  • Stubble
  • **
  • Posts: 102
  • Location: NJ
Re: Race to 50K
« Reply #25 on: September 05, 2017, 04:31:42 AM »
Well it's a new month everyone! Great job on the 10k Rosy!

My retirement account didn't do very well in August; I'm only at 31,000 to start out September.  I'm still on track to hit 50k sometime in November 2019 though.

I've been saving for another rental property but after months of no luck am considering putting this on hold.  If I stop the down payment savings, I can really up the contributions to the retirement account.  I'm gonna take some time to mull this over....

How did everyone else's August go?

westtoeast

  • Stubble
  • **
  • Posts: 220
  • Location: East Coast City
Re: Race to 50K
« Reply #26 on: September 05, 2017, 04:37:22 AM »
I'll have to come back at the end of Sept for a real update, since I didn't get paid in August (it was sad seeing all my accounts stay basically the same, especially since my investments didn't do that well). My first 457 deduction did get taken out of my first Sept check though, and I moved some of my first paycheck to my EF, so I'm now at $21,035. Every thousand counts!