CLICK HERE TO WATCH MY SEGMENT ON CHANNEL 2 WSB ATLANTA WITH CLARK HOWARD
This year, I am trying to save $48,000 dollars. $48,000 represent 60% of our household gross income. To read more about my goal and to see what I’ve managed to save, so far, click the category link labeled $48000.
Last month, I found myself in an awkward position. April 15th was fast approaching, and I had not fully funded my 2 Roth IRAs for 2006, so I “raided” my ING savings account. So, I spent the rest of April paying
myself “back”. In other words, I did not contribute any money to my after-tax retirement accounts, but I did increase my savings account.
lso, I decided to wait one year to open an ESA for my son, thereby reducing by $2000 the amount that I had planned to contribute to that account this year. Here’s a chart of the current breakdown, where I stand, and the progress that I’ve made:
As you can see, I have managed to save $16,667 over the first four months of 2007! This amount includes the amount that I have contributed to my 403b, the amount my wife has contributed to her pension plan, the amounts contributed to our Roth IRAs and my daughter’s ESA, minus the amount that I still “owe” to my ING Direct account. In April, I was able to send $2000 to my ING Direct account, thereby reducing the amount that I owe myself to $3000.
I am amazed at the continuing power of FOCUS! Two years ago, it took me 10 months to payback $11.5K. One year ago, it took me 8 months to save $20K. Now, after learning more and more about personal finance and money management, I’ve managed to save over $16.5K in 4 months! Budgeting, frugal living, and planning really do work.
Good on ya NCN, great progress! I have managed to reduce my mortgage by $2202 in the month of April. I am very pleased with that! Cheers Cheryl
NCN:
I’m confused how you’re putting $8,000 into each IRA for the year. The maximum contribution is capped at $4,000. Or am I not understanding something?
DB
DB,
I opened the accounts in January, so I was able to make contributions for 2006 AND 2007! From now on, I’ll be limited to one year… (that, in fact, was the reason that I “borrowed” from my ING Savings, so that I wouldn’t “miss” 2006!)
Hey I just saw the new story on wsb and thought I would pop on over and check it out. I live south of atlanta myself and it sounds like I am in the same boat you were barely living check to check but whats bad Is i get laid off every couple of weeks then called back. So how did you get debt free? I am going to look at all your old blogs too. keep up the good work!
Good stuff! It is amazing what can be accomplished when you choose to live deliberately, rather than taking life as it comes.
Heya.. I’ve been listening to your podcast and reading your blog for while now.. Just stopping in to tell you that thoroughly enjoy ever minute of it.. Keep up the good work.