In addition to the last entry about my savings plan, there's more...
(I LOVE savingadvice.com--somewhere to go to be accountable and to share and be encouraged with our goals!)
Anyway, the actual accounts I have for saving and building wealth are my money market account which has almost $6,000 and my two retirement accounts (traditional IRA and 401K.) My money market account I call my wealth account, but I used to call it my emergency fund. Then I called it the account to start my early retirement on. (It ain't looking good. Only $494,000 to go before I reach that half a million I was dreamed about.) Then I used the account to 'borrow' money from myself to put a down payment on the house, put a down payment on one of the cars we own and to purchase the other two cars with cash. (Not all at the same time, of course. What do I look like--Warren Buffet?)
The account high has been $17,500. The low has been $2,500. The idea was to pay the equivalent of a car payment to the account, which I was able to do some years ago ($300 a month), but I've only been able to deposit $100 a month for the past several years without going into the account to get it back out (smile). Of course, I deposit extra money there too, like tax refunds, etc.
Currently I just call it a wealth account because it has kept me/my family out of a lot of debt. I also use this as the 'parking place' for my auto and home insurance deductibles. Even though it's not looking good for early retirement at 50, I will keep building for both the next car purchase and some increased financial independence.
I do wish I'd done more several years ago. There was a time when I made less money, but was able to save a higher percentage of my income--and I didn't do it. Trying to make up for lost time is impossible. But, currently, it is what it is... I use this blog to stay encouraged.
Save the Cash #2
July 31st, 2008 at 12:14 am
July 31st, 2008 at 12:19 am 1217459994