Adventures in Savings

Disclaimer – I am not a licensed investor, nor do I know shit about investing. These are my personal, non professional opinions, and I’m 95% sure they are completely wrong. Never take any advice about investing from a web developer! Like seriously. You would deserve to lose all of your money if you did. Also, if you don’t have enough money to pay off your high interest debts you don’t have money to play in the stock market. Use your common sense, people.

Who ever said saving money wasn’t fun!?

I’m pretty sure almost everyone has, but that is because they haven’t made it a game.

For the last 6 months, I have been rounding up my spare change with Acorns, a robovesting app-first service that lets you chose your level of risk. On top of that, I have been putting $500 – 1000 away into a savings account and started cutting things out of our budget.

Starting today, I’m going to start documenting my adventures in Savings. Once a month, I will list how much money I have in my various accounts to help hold myself accountable to my family goals (retirement, buying a home, rainy day funds, etc.).

So without further adieu, for July, 2016, here are the numbers.

Retirement (Employer matched 401k)

My current portfolio is:

  • Mainstay Large Cap Growth Fund (MLAIX) @ 30%
  • Principal Mid Cap Fund (PCBIX) @ 25%
  • T Rowe Price 2040 Retirement (PARDX) @ 25%
  • T Rowe Price 2050 Retirement (PARFX) @ 20%

I deposited $572.31 into the account with an employer match with $286.14 and earned $421.16 in capital gains, for a total change in value of $1,279.61. Which brings my total to $10,125.96.

July was a much better month for my investments than most, thanks mostly in part to the post-Brexit bump.

Acorns

I am currently on the Aggressive portfolio which is a mix of the following.

  • Real Estate (VNQ) @ 30%
  • Small Cap (VB) @ 25%
  • Emerging Markets (VWO) @ 20%
  • Large Cap (VOO) @ 15%
  • Government Bonds (SHY) @ 5%
  • Corporate Bonds (LQD) @ 5%

I deposited a total of $54.14 into this account and earned $19.38 in capital gains, for a total change in value of $73.52, totaling $545.02.

This account is a much smaller account that I have resolved myself to being more aggressive in my contributions in the future.

Savings

I put nothing into savings this month as it was my wife’s birthday month, between the presents, a Garth Brooks concert and plane tickets for her mother to come and visit, we were unable to put any money away into savings.

Progress on Goals

Retirement – With a slight bump in my contribution to my 401k, we are on par to retire with a small nest egg of $1,200,000 by 2050.

Down Payment/Rainy Day – We currently have $7,500 put away between savings and Acorns. I am hoping to have a rainy day fund of $10,000 (just under 3 months of rent and bills), and a down payment of $35,000 for when we move to Colorado in 3-5 years.

This puts us on target from today to have the 3 month cushion by December and the down payment money JUST in time for when we leave here if we keep putting $1000/mo away.

Conclusion

Saving is difficult, especially living in the NYC area, but hopefully we will be able to without sacrificing many of the comforts my salary has afforded us.

I will try to keep this post coming monthly to keep me honest with myself.

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