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Re: The Savings Playground for June, 2017 -- summer break!

[ Edited ]

I allocated $250 of my biweekly payroll deposit to savings which takes effect tomorrow.  (I can do more eventually, but want to ensure I don't need to/am not tempted to touch my savings accounts.)

 

Trimmed another $130 in monthly expenses.

 

Also threw a few more small reimbursements into savings this week Smiley Happy

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Re: The Savings Playground for June, 2017 -- summer break!

So I received my bonus today..............way less than I expected.  BUT how can I complain about additional money! LOL!  I'm truly grateful!  Even though it wasn't what I expected, it did allow me to pay off my credit cards from my recent vacation and deposit into my investment account.  I did not deposit any of it to my savings.  

 

Time to take the long weekend to reevaluate because I MUST have my 6 months fully fund by the end of the year.  Don't know how I'm going to do it but it must get done!

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Re: The Savings Playground for June, 2017 -- summer break!

Just to underscore the importance of the savings plan. I had an unexpected expense pop up this past month. Since I had neglected my savings plan for years, I had to put it on my CashRewards card. So I get a notice today that my utilization went from 8% to 13%. I mean in the over all scheme of things, no big deal since my score didn't change but it just shows how many moving pieces go into this whole thing we call credit. 

Starting Scores 03/17/2017 EQ 491 TU 495 EX465 Currently 09/01/2017 EQ 569 TU 564 EX 551

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Re: The Savings Playground for June, 2017 -- summer break!

On a similar note, my EQ went up 3 points showing the higher utilization. What in the wide world of sports does that mean? lolI think it is more of an additional month of on time payments on that account tbh. 

Starting Scores 03/17/2017 EQ 491 TU 495 EX465 Currently 09/01/2017 EQ 569 TU 564 EX 551

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Re: The Savings Playground for June, 2017 -- summer break!

[ Edited ]

Sandman771 wrote:

On a similar note, my EQ went up 3 points showing the higher utilization. What in the wide world of sports does that mean? lolI think it is more of an additional month of on time payments on that account tbh. 


Pretty much; balance changes are just triggers for score updates.  After I tacked on some positive tradelines when I first started I had increases pretty much over the first two or maybe 3 years; a little hard to determine as I had a bunch of things going on credit wise.  Seriously flatlined after that though till my old derogatories started getting excluded.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


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Re: The Savings Playground for June, 2017 -- summer break!

[ Edited ]

Hi all! Joining the playground Smiley Happy It's great reading about everyone's stories here!

 

I am hopping onto the merry-go-round. Goal is to maintain a 6 months emergency fund. I started seriously saving about a year and a half ago, using a budget and all. Well I no longer use the budget because I got tired of tracking everything, but my savings routine is pretty set now. Before I got retirement accounts, I just put money in my savings account. Then I realized I could open up a Roth IRA, so I maxed out those contributions for 2016 and 2017. I then got a 401k in January and set automatic contributions at 40% of each paycheck. This leaves just enough to cover the bills plus wiggle room for personal spending. If after covering monthly expenses, there's any extra, it's all put into my emergency fund.

 

I plan to rollover everything in the 401k into the IRA eventually. After finding out that contributions can be withdrawn from the IRA without penalty, I plan to sock away as much money as I can into it. Except for the emergency fund Smiley Happy I might need the IRA contributions in the future for potential grad school or homebuying - and if I don't need them, they just sit there growing! It's a win-win.


What things have you cut from your spending habits to increase your Playground savings account? How much has it helped you save over time?

Mostly 'fun' spending and restaurants. I'm lucky I'm in a city that always has great events going on that are free, so I'm always on the lookout for a free version of an activity before I pay for it. I also cook alot, preparing meals for work because buying lunches adds up too much. During the weekends I sometimes let myself splurge a little for meals with friends but we are all pretty budget conscious so no fancy restaurants. Unless there's a Groupon for it haha. And I always make sure at restaurants to order food that I can't make for myself. Otherwise I'm wasting money for a dish I could make myself, same quality for a third of the price. 

 

Have you ever considered tapping into savings for non-emergency related spending, and how did it affect your stress and goals?

I actually feel okay doing this, now that I have a good cushion. Not that I do it often or plan to in the future, but for example I'm going on my first really big vacation this summer. For all those expenses, I'll end up taking out a pretty large chunk of savings, though the amount left will still meet my emergency fund goal. I guess in this case, the savings allows me to feel more at ease since I can take this vacation without having to cut down/stress as much about the money involved.

 

What's the biggest mistake you've made in overspending and how do you work to avoid it now?

Clothing. I used to buy so much clothing. I finally donated about half of my closet, which equaled 12 bags of at least 10-15 items in each bag. I've also been selling clothes I don't use but are still in excellent condition, with an app and I've been able to get rid of alot. My closet is significantly smaller now (my apt room is also small, so I have less choice there haha) and I limit my purchases - and only buy items that can be business casual for work too.

 

All of this money I spent before, I could have saved - it would have come in handy in the months before I got my current job. I was slowly eating up what little funds I had left, to the point where I had to ask relatives to help me cover housing, and I had just enough to get groceries for the week. Thankfully my first paycheck came soon after! I was only able to avoid getting into credit trouble because my relatives helped me out. 

 

So after that situation was when I began taking saving more seriously! To do my best to prevent it in the future Smiley Happy  


Disc It 10300 | Quicksilver 4000 | Double Cash 6600 | Freedom 4500
TU 08: 7.2017 - 794 | 7.16 - 735 | 7.15 - 768 | 7.14 - 710
EX 08: 7.2017 - 7797
EQ 08: 7.2017 - 786
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Re: The Savings Playground for June, 2017 -- summer break!


evelynsophia543 wrote:

I plan to rollover everything in the 401k into the IRA eventually. After finding out that contributions can be withdrawn from the IRA without penalty, I plan to sock away as much money as I can into it. Except for the emergency fund Smiley Happy I might need the IRA contributions in the future for potential grad school or homebuying - and if I don't need them, they just sit there growing! It's a win-win.

 


 Make sure you understand this correctly, specially the tax consequences, withdrawal limits, and penalties.  I have a feeling you are confusing an IRA and a Roth IRA. 

 

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Re: The Savings Playground for June, 2017 -- summer break!


 

 Make sure you understand this correctly, specially the tax consequences, withdrawal limits, and penalties.  I have a feeling you are confusing an IRA and a Roth IRA. 

 


My account is a Roth Smiley Happy It really was confusing trying to figure all of that out before getting it...I know I will have to pay taxes on my 401k rollover into the Roth IRA. Luckily, my company just started offering a Roth 401k option so I'll be able to start using that soon!


Disc It 10300 | Quicksilver 4000 | Double Cash 6600 | Freedom 4500
TU 08: 7.2017 - 794 | 7.16 - 735 | 7.15 - 768 | 7.14 - 710
EX 08: 7.2017 - 7797
EQ 08: 7.2017 - 786
Util 3% | Oldest TL 3 yrs | Gardening since 7.16
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Re: The Savings Playground for June, 2017 -- summer break!


evelynsophia543 wrote:

 

 Make sure you understand this correctly, specially the tax consequences, withdrawal limits, and penalties.  I have a feeling you are confusing an IRA and a Roth IRA. 

 


My account is a Roth Smiley Happy It really was confusing trying to figure all of that out before getting it...I know I will have to pay taxes on my 401k rollover into the Roth IRA. Luckily, my company just started offering a Roth 401k option so I'll be able to start using that soon!


To extend on tacpoly's comments, I would also urge you to plan out your endgame goals in retirement before rolling everything over to a Roth. Roths are often talked up as a whiz-bang-awesome way to go because you withdraw tax-free, and while that sounds really appealing, it doesn't always make the most sense.

 

It's not a simple black-and-white question to answer, but the easiest way to start thinking about it is to understand if you plan on having more income withdrawn in retirement than you currently make or less. The goal is to pay taxes on the lesser of two incomes - either now or later. If you think you'll take home less in retirement, think twice about rolling it all over to Roth (and more importantly, contributing to a Roth 401k when you can take the tax shelter on your higher income today). If you think you'll take home more in retirement than you make now, then roll away and start maxing out that Roth 401k ASAP.

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Re: The Savings Playground for June, 2017 -- summer break!

Generally, if a person is young (twenties) I advise contributing to a Roth IRA and Roth 401K. Do not take money out and allow it to grow grow grow until retirement. Then you'll be taking maximum advantage of totally tax-free growth.

Around late 30s to 40's, a person is usually entering peak earning levels, I would switch to a regular 401K to take advantage of the immediate tax break.

This is very general and YMMV, of course.

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