This month, I helped a family member move and I had to buy quite a few things. To give it some perspective I paid my credit card off in-full twice to the tune of $614 and $609. The spending is a blur now but I do remember purchasing flowers for the funeral of someone close to me and the shock of seeing a $200 bill on my credit card.
But I was happy to be able to send the flowers and I was also happy to see money serving its best purpose for me, which is a tool to allow you to do things in the world stress-free.
I think something even clicked for the family member that I helped move. After the move a lot of questions about saving and investing followed and I was happy to get them started with a couple of investing apps and stressed the importance of an emergency fund (which would have allowed them to move with ease).
Speaking of emergency funds: Do you guys remember when the government shut down at the top of 2019 and within two-weeks people were on bread lines and on the verge of being evicted because they missed two paychecks?
If you’ve forgotten and your mind is elsewhere, like spending large sums of money on lavish Thanksgiving dinners, Black Friday and Christmas shopping, I would like you to pause for a moment. Because on November 21, the government will officially be out of money again. And Donald Trump has refused to rule out another extended shut down, which seems reasonable since he’ll be dealing with his Impeachment.
Not just government workers, but EVERYONE should have an emergency fund. If it’s not fully funded, at least make sure you have enough to feed you and your family, buy gas and keep the lights on if you miss a paycheck or two.
When I opened an ACORN account at the start of this year I couldn’t imagine saving a dime more. And somehow, my ACORN account (as of November) sits at $700. It is, by far, the easiest most pain-free way to save if you are reluctant or repulsed by the idea of saving and investing.
Okay, that’s enough about looming shut down and the importance of having an emergency fund, let’s see how much closer I am to my year-end $100K goal.
October 2019 Net Worth Update
Checking $ 500.00 (no change)
Savings $ 4,300.00 (+$50)
Business $ 6,897.00 (+$859)
MM/E Fund $ 14,547.00 (+$477)
Taxable Investment Accounts
Ally Brokerage $ 14,783.00 (+$858)
Investing MM $ 231.00 (-200)
Vanguard $ 865.00 (+$91)
Acorns $ 654 (+94)
Bonds $ 16,486.00 (+$227)
SEP IRA $ 12,290.00 (+$284)
Traditional IRA $ 21,427.00 (+$954)
Liabilities: Credit Card: $97.00
As you can see, I’ll be cutting it close to reach the $100K goal. However, I’m optimistic because despite cancelling the automatic deposit into Betterment and putting in $50 a few days later. The account is still grew due to market growth and dividends, resulting in a $234 increase.
- Checking: All savings/bills are automatically deducted from this account. Any money left over after deductions is sent to Acorns and the emergency fund.
- Savings (P to P): This account is back to the highest it has ever been. No big changes here.
- SEP IRA: The stock market picked up steam in the middle of October. I had big gains across all investment accounts.
- Traditional IRA: Dividend payments in this account are really picking up.
- Business Account: This account is growing nicely and will eventually be used to purchase an income-producing asset sometime next year.
- The E/Fund: Haven’t had any reason to hit up the emergency fund. It continues to grow at a modest pace.
- Stocks (taxable): Added a new stock, DAL (Delta Airlines). I’m finishing the year with 10 stocks.
- Bonds: The new bond rates went into effect on 11/1; the interest rate that I’m receiving on I-bonds is now 2.22% This is still way above what most major banks are offering.
- Ally Investment money: This money is being used to buy dividend-paying stocks.
There you have it. I only need $7,020.00 to put the $100K goal in the rear-view mirror. I’m close, but I still need to hustle all the way to the end.
It is a fight to build wealth no matter where you are in the process. Everything around us conspires to take money out of our hands. But you must fight the good fight. Continue to save, invest, and grow your net worth even when it seems impossible. Save your pennies (copper) until they become dollars (cotton).