Author Topic: Saving to $10K  (Read 98904 times)

mckaylabaloney

  • 5 O'Clock Shadow
  • *
  • Posts: 16
  • Age: 30
Re: Saving to $10K
« Reply #850 on: June 05, 2018, 08:34:35 AM »
@Eric222 Thank you! I am slowly reading through your journal and it is so encouraging to see someone who has tackled this amount of debt and more :) Thank you for sharing your journey!

To respond quickly:

1.  I do have an emergency fund, but it's at about $5500 and I realized recently that I would feel more comfortable if it was around $10K (probably a touch excessive, but I'm okay with that), so that's one goal for the rest of this year.
2.  I've refinanced twice now :) Sofi the first time and Earnest the second. My rate is currently 3.4%, but it's variable, so it's obviously rising this year (though still well below what my fixed rate would have been).
3.  Yeah, that's what I've landed on as well. It would feel good to be done with the debt faster, but it will feel better to have a higher net worth at the end. My approach has been to max out my tax-advantaged accounts and then, after that, to throw all my extra money at my loans. I'm sure there some Mustachians who would choose to hang on to the debt, since the interest rate is fairly low, and send the extra money to a brokerage account, but I need to get that monthly payment out of my life ASAP.

Eric222

  • Pencil Stache
  • ****
  • Posts: 858
Re: Saving to $10K
« Reply #851 on: June 05, 2018, 11:10:06 AM »
@Eric222 Thank you! I am slowly reading through your journal and it is so encouraging to see someone who has tackled this amount of debt and more :) Thank you for sharing your journey!

To respond quickly:

1.  I do have an emergency fund, but it's at about $5500 and I realized recently that I would feel more comfortable if it was around $10K (probably a touch excessive, but I'm okay with that), so that's one goal for the rest of this year.
2.  I've refinanced twice now :) Sofi the first time and Earnest the second. My rate is currently 3.4%, but it's variable, so it's obviously rising this year (though still well below what my fixed rate would have been).
3.  Yeah, that's what I've landed on as well. It would feel good to be done with the debt faster, but it will feel better to have a higher net worth at the end. My approach has been to max out my tax-advantaged accounts and then, after that, to throw all my extra money at my loans. I'm sure there some Mustachians who would choose to hang on to the debt, since the interest rate is fairly low, and send the extra money to a brokerage account, but I need to get that monthly payment out of my life ASAP.

1.  I don't think 10k is excessive - I went for ~$25k for the EF.  It's whatever amount you think is needed for real emergencies.

2.  Yay!  Refinancing makes a huge difference with that much money. 

3.  That argument is typically for something like mortgage debt.  Student loans are pernicious.  You can't get rid of them (i.e. if you go bankrupt, etc).  There isn't an asset (other than your education) securing them.  I'm happy with my 5 year to kill them plan.   :) 
“Except when awesome is just awesome, because sometimes it is.” - Scrubby

Journal: Racing towards zero

Where I started...

Long term goals:  Stay fit, NW0 by 39, and FI by 52.  Required SR:  60%.  SR goal for monthly income: 50%.

Dicey

  • Walrus Stache
  • *******
  • Posts: 7731
  • Age: 60
  • Location: NorCal
Re: Saving to $10K
« Reply #852 on: June 05, 2018, 04:02:02 PM »
@Eric222 Thank you! I am slowly reading through your journal and it is so encouraging to see someone who has tackled this amount of debt and more :) Thank you for sharing your journey!

To respond quickly:

1.  I do have an emergency fund, but it's at about $5500 and I realized recently that I would feel more comfortable if it was around $10K (probably a touch excessive, but I'm okay with that), so that's one goal for the rest of this year.
2.  I've refinanced twice now :) Sofi the first time and Earnest the second. My rate is currently 3.4%, but it's variable, so it's obviously rising this year (though still well below what my fixed rate would have been).
3.  Yeah, that's what I've landed on as well. It would feel good to be done with the debt faster, but it will feel better to have a higher net worth at the end. My approach has been to max out my tax-advantaged accounts and then, after that, to throw all my extra money at my loans. I'm sure there some Mustachians who would choose to hang on to the debt, since the interest rate is fairly low, and send the extra money to a brokerage account, but I need to get that monthly payment out of my life ASAP.
Some people might consider me one of those people, but they'd be wrong. Since you're maxing out your tax-advantaged options, I think killing the SL's is the best next thing to do, especially as your rate is variable. Kill the mortgage at the expense of tax-advantaged savings or employer matches? Hell No! Kill the SL's after tax advantaged savings options are maxed? Oh, hell yes! That's no baloney, McKayla!
And a big shout-out to @Eric222 for responding. He's a very busy guy. He's a Docta, you know. And quite a successful one at that! ;-)
Oh, and one more thing: I'm a huge fan of EFs, but maybe compromise at $7500 while you're killing the SLs? Something to think about, especially if you have good credit.

P.S. I hit send, but my post didn't go through before I left the house. I see Eric's been back with similar thoughts.
I did it! I have a journal!
A Lot Like This
And hell yes, I am still moving confidently in the direction of my dreams...

Manchester

  • 5 O'Clock Shadow
  • *
  • Posts: 85
Re: Saving to $10K
« Reply #853 on: June 08, 2018, 03:17:03 AM »
I've had a good bit of progress last night.  My S/O is very good with excel etc and I was explaining how I'm keeping spreadsheets with targets and so on.  I explained my financial plans to her in detail.  She was really on board (which is unusual as she's definitely on the less frugal side).  She even helped me add more cool info into my spreadsheets which will make it easier to track my savings rate. :)

Spruit

  • Handlebar Stache
  • *****
  • Posts: 1036
  • Age: 31
  • Location: Netherlands
Re: Saving to $10K
« Reply #854 on: June 08, 2018, 04:21:02 AM »
Manchester, that's really nice! It makes a great difference if your partner and you are working together towards the same goals.

Lately I noticed something similar in my household, non-negotiable stuff is getting reconsidered because the results get more tangible. I think persistent frugality is rubbing off eventually if it's done in a not preachy way.
« Last Edit: June 08, 2018, 03:44:23 PM by Spruit »
Yay, out of debt... now, GROW!
My current journal

bcbaseballman

  • 5 O'Clock Shadow
  • *
  • Posts: 20
  • Age: 28
  • Location: Kansas
Re: Saving to $10K
« Reply #855 on: June 08, 2018, 07:10:57 AM »
It makes a huge difference if the SO is on board. Mine was not at first and it made it very difficult to make any progress. The last couple of months she has started to see that it really is not so bad living more frugally and we have been making much better progress. Instead of only adding around $1,000 to our total net worth last month we added ~$2,000 and this month I am hoping to make that around $2,500. Hopefully all goes as planned!

Imma

  • Pencil Stache
  • ****
  • Posts: 960
  • Location: Europe
Re: Saving to $10K
« Reply #856 on: June 08, 2018, 07:37:29 AM »
Yes, it's such a big difference when you're both on board. I imagine it's really difficult to maintain a healthy relationship when there are major disagreements about money. I'm lucky that my s/o is just as frugal as me, but he's not goal oriented at all. He just doesn't buy much and has a lot of money left over at the end of the month.

He was never really interested in things like taxes, investing etc. but that's slowly changing now he's seeing my progress. The most important thing to me is that we share the same values. We never really disagree about how much we should spend on something. I can imagine it's difficult when one half of the couple wants designer furniture and the other would like to have a look at the thrift shop first.

Rimu05

  • Stubble
  • **
  • Posts: 185
Re: Saving to $10K
« Reply #857 on: June 14, 2018, 10:15:15 AM »
In trying to modify this post I ended up quoting weirdly...

Total net worth = -$17,876
Car loan = -$6,899
Student loan = $-27,593
Credit card = 0 (It has been bothering me so I just used my savings. I couldn't do it anymore)



401K - $13,974
Checking - $120
Savings - 2500$


I had hoped to get my savings to $10,000, but having credit card debt really was gnawing on me so I just payed it off and plan to cancel the credit card or just put it aside for emergencies. I have reset my goals a bit. I want to pay off my car at the end of the year and have $6,000 in savings then. I want to start tackling student loan soon and not just paying the minimum.
« Last Edit: June 14, 2018, 10:18:40 AM by Rimu05 »

fluffmuffin

  • Bristles
  • ***
  • Posts: 278
  • Location: VA
Re: Saving to $10K
« Reply #858 on: June 14, 2018, 01:55:57 PM »
7/13/2017: $2,238.41
8/1/2017: $2,771.40
8/16/2017: $3,071.40
9/1/2017: $3,202.61
9/15/2017: $3,502.63
10/2/2017: $3,807.67
10/16/2017: $4,021.00
11/1/2017: $4,121.00
11/16/2017: $4,208.73
12/1/2017: $4,267.73
12/15/2017: $4,532.82
12/30/2017: $4,864.78
1/16/2018: $8,114.78
2/2/2018: $8,424.59
2/19/2018: $8,431.24
3/30/2018: $8,614.89
4/16/2018: $8,742.36
5/1/2018: $8,905.80
5/16/2018: $9,005.80

6/14/2018: $9,020.38

Missed the early June update due to vacay...and also due to vacay I have only the most incremental of incremental updates this time! We were mostly camping, but I had to get an emergency last-minute hotel room in one of the most popular national parks in the US over Memorial Day weekend. That threw a wrench in the vacation budget, but our original plan was not possible for safety reasons so it was worth every penny of the (crying a little) $250. Otherwise I would have had $250 to contribute!

MSquared

  • Stubble
  • **
  • Posts: 122
  • Location: USA
Re: Saving to $10K
« Reply #859 on: June 15, 2018, 07:50:06 AM »
This is not going to be a good month money wise for me.  Or, well, in general.  We had to put down my dog last weekend.  :(  She was 13.5 years old and I got to have her for 12 of those years.  She lived a fantastic life.  I don't care about money in these situations - I just want the best for her.  I had someone come to the house to do it and then she got a private cremation.  I got her ashes back in a nice bamboo box.  It was way more expensive than just taking her to the vet, but I don't care.  I will probably go spread them at our favorite running/hiking spot.  I'm feeling pretty lost without her. 

Of course this happened after I decided to finally buy the fancy GPS/SOS device for backpacking.  (You can facepunch me for that one, but we do a lot of remote stuff and I decided it was dumb not to have one with all that we do.)  So June will not be a good number to report.  But going forward I will have less pet expenses (we're down to just the mostly inexpensive lizard now), so it will get made up eventually.  Unless something drastic happens (car accident, job loss, break up) I don't see what else can go wrong financially.  (Knock on wood?)  So relentless forward motion.  My net worth is still going up, but I had to borrow a couple of hundred bucks from the e-fund. 

Trifele

  • Handlebar Stache
  • *****
  • Posts: 1182
  • Location: US
Re: Saving to $10K
« Reply #860 on: June 15, 2018, 07:58:51 AM »
I'm so sorry about your dog @MSquared.  Hugs.   

fluffmuffin

  • Bristles
  • ***
  • Posts: 278
  • Location: VA
Re: Saving to $10K
« Reply #861 on: June 15, 2018, 08:00:55 AM »
@MSquared I am SO sorry to hear about your pup! Losing a pet is so hard, but she was very lucky to have had a person who had the financial ability to make choices based on what was best for her. I lost my soul-dog last year and I still get teary thinking about her--feeling lost is so normal. Hugs if you want them.

And like you, her end-of-life care was the last time I touched my e-fund. It came on very suddenly so there was no time to make a financial plan. But that's exactly why we have e-funds: so when these things happen, inevitably in the same month as car repairs/larger planned expense/whatever, we don't have the added stress of worrying about the finances.

haypug16

  • Bristles
  • ***
  • Posts: 497
  • Age: 39
  • Location: Boston, MA
Re: Saving to $10K
« Reply #862 on: June 15, 2018, 09:14:26 AM »
I'm so sorry for your loss MSquared.


Mid-June Update
3/31/2017 (52,848.85)
4/30/2017 (48,076.67)
5/31/2017 (47,110.22)
6/30/2017 (46,540.28)
7/31/2017 (44,354.10)
8/31/2017 (47,236.39)
9/30/2017 (42,436.10)
10/31/2017 (33,346.78)
11/30/2017 $(28,911.53)
12/31/2017 $(24,424.13)
1/31/2018 $(20,454.43)
2/28/2018 $(18,221.63)
3/31/2018 $(14,916.69)
4/30/2018 $(9,800.88)
5/31/2018 $(7,375.85)
6/15/2018 $(6,596.24) +779.61 increase

I realized as I was updated my spreadsheet that I didn't update my Student Loan balances on my master sheet last month so my Networth at the end of May should have been higher so I made that edit here. It just makes me feel a little better about my progress last month. This negative number is getting smaller and smaller. I can't wait for it to flip into the positive. Just a few more months, either August or September I'm thinking.

Dicey

  • Walrus Stache
  • *******
  • Posts: 7731
  • Age: 60
  • Location: NorCal
Re: Saving to $10K
« Reply #863 on: June 15, 2018, 09:41:35 AM »
Oh MSquared, I hope you have many happy memories and pictures of your beloved pup! I am sorry for your loss.
I did it! I have a journal!
A Lot Like This
And hell yes, I am still moving confidently in the direction of my dreams...

Imma

  • Pencil Stache
  • ****
  • Posts: 960
  • Location: Europe
Re: Saving to $10K
« Reply #864 on: June 15, 2018, 12:47:19 PM »
@MSquared  I'm so sorry for your loss :( And this is why we have emergency funds, to be able to make the best decision in a difficult situation, not the cheapest decision.

I also don't think a GPS/SOS device is a waste of money at all. I think it's a very good investment. You're most likely never going to need it, but when you do it will possibly save your life. A friend of someone I know got lost in a very remote natural area and is missing and presumed dead. I did not know him personally, but the heartbreak of not knowing what happened to him and what he could have gone through before he presumably died was very hard on his family and friends.

MSquared

  • Stubble
  • **
  • Posts: 122
  • Location: USA
Re: Saving to $10K
« Reply #865 on: June 15, 2018, 02:31:27 PM »
Thanks, everyone.  She was with me since I was 23 and it's been hard.  Here's a pretty recent photo of her.


Yasha

  • 5 O'Clock Shadow
  • *
  • Posts: 25
Re: Saving to $10K
« Reply #866 on: June 16, 2018, 09:00:33 AM »
Sorry for the loss of your pup <3