Already June?

I can’t believe it’s already June!


My 401(k) contributions come out of my paycheck on the last business day of the month, but they don’t post to my investment account until the first few days of the next month. This month, I accidentally bumped my contributions down to 4% of my gross pay, so at the beginning of the month, 21% was credited to my 401(k), but at the end, only 4% was debited. This means that my net worth growth this month is higher than it should be and next month it will be lower than it should be (credit of 4%, debit of 23%). That’s okay.

Savings Snowball

The 4% 401(k) contribution instead of 21% gave me some extra savings room with my May paycheck. I also got a small bonus, all of which I saved, so I’ve met the goal to bump my emergency fund up by $4,000! That means I have two goals left:

1. Save $3,000 towards a car replacement in 10 years.

2. Save $20,000 towards a down payment on a house.

Looking at my savings projections, both of those goals should be met this year. Goal #1 should be achieved in July and Goal #2 will likely take until December.

Financial Anxiety

I think I’m definitely doing better at not checking my accounts online every day. I have been busy lately, so I just haven’t had the time.

I did only enter my receipts into my spreadsheet twice in May. Hopefully I will also keep that up for June.

Goal #12 (Make no more trades until January) should be rewritten. I’m going to move out of company stock every trading window, which violates that rule, but I think it makes sense.


5 thoughts on “Already June?

  1. I think you are making great progress on your goals for 2011 =D
    I need to make my Vanguard Roth IRA my number one saving priority as I’ve only contributed 25% of my max there. Even my little sister has contributed more to hers this year and she is still in college =P I’m about 1/2 way to maxing my 401k for the year, so at least I know I should max that out by Winter. The main story about our 401k is that after pestering HR for months, our company finally decided to have 4 more Vanguard funds in the system now.
    I need to rebuild my emergency fund. As it stands right now, I’m about 8 months worth of cash in there but I would like to have a year’s worth by the end of the year.
    In the short term, I don’t think I”ll be able to put any more money in my taxable Vanguard account towards a down payment for a house. I’m looking to be in the market 10 years from now, so it isn’t that much of a priority.

    • Thanks Tvo! That’s awesome that you guys got 4 more Vanguard funds in the system. We got Total Bond Market Index and Total International Stock Index this year, which I was pretty excited about. I think they could still do with adding a few more index funds, but I’m okay with that. I think I’m pretty lucky to have my 401(k) plan run by Vanguard, so I won’t complain (too much).

      Why do you want to have a year’s worth of cash? Is your job unstable? The only reason I’m saving up for 12 months is that I plan on buying a house in a few years and want to make sure that I have 12 months before I buy a house.

      Good job on deciding that a down payment for a house isn’t a huge priority right now with your timeline. What is a priority instead? Maxing out your Roth IRA and your 401(k)? Those are pretty good priorities!

      • Our 401k is run by Prudential but we recently added the four Vanguard funds that I mentioned: Total Stock Market Index, Total International Stock Market Index, Mid Cap Index and Small Cap Index. In addition, we previously had the Vanguard 500 so all we are lacking now is the Total Bond Market Index.

        I guess you can chalk it up as my ‘financial anxiety’ for my reasoning to have a year’s worth of liquid assets. I have a pretty stable job but I just sleep better knowing that I am prepared for the worst. I also do happen to live in a low cost of living city (Houston, TX) so what is a year worth of cash for me probably is going to be about a 3-6 months cash cushion for someone living in a higher cost of living area.

        Thanks! I want to take any opportunity to max out all of my tax-advantaged accounts before I lose the allowed contribution.

  2. I seriously love your concept of the savings snowball :)

    I have been checking my app less too, EXCEPT it was primarily because the app kept crashing.

    And then I updated it today and it’s working fine (and fast) again. So there goes the temporary stop to the OCD-ness.

    • That’s exactly why I don’t want an app on my phone that tells me how much money I’ve spent/have! I trust myself enough that I honestly only check against my budget if I’m going to buy something that will break it *cough*clothes*cough*. Everything else pretty much just magically lines up under budget every month.

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