I have set a
HUGE savings goal for myself this year and it will be quite the challenge. My plan this year is to live off only half of
my net income. I get paid twice a month
so my plan is to use the first paycheck of each month to cover my monthly expenses,
groceries and fuel for my vehicles and deposit my second paycheck each month
directly into my savings account.
Along with that
plan I have increased my pre tax savings contributions to my HSA for medical
expenses and will still have my 401(k) contribution that will be coming out of
each paycheck as well. I have a total
amount in mind for my HSA account that I would like to reach prior to
retirement so I have a nice cushion to cover any expenses not covered by my
insurance. Plus, any bonuses I receive and
tax refunds will also go directly into my savings account.
I'm doing this
for two reasons. One, a final push to
stockpile as much cash as I possibly can for an extra bit of cushion. And second.
This will be a great test for me in that, if I can live well and
comfortably on just one paycheck then early retirement will not only be
attainable, but a piece of cake! I will
have a clear idea of the minimum amount I will need to live on in retirement
and that is a vital piece of information I will need. It is one thing to think that is all I will
need and a whole other thing to put it into practice. I'd like to know for sure what my minimum
is. So, that is my savings plan and I'm
sticking to it! It looks like it will
work out well on paper, but now we are going to find out for real. Wish me luck!
My husband gets his first retirement check around the 25th this month. We don’t know an exact amount but it’s going to be tight. I’m thinking ballpark about $1100-$1200 less a month. Thankfully our mortgage and cars are paid off. We can do it but like I said not much wiggle room at all. We do have $$ in savings that’s a combined savings/EF. Plus we have $$ in savings for medical expenses (deductible plus OOP till 100% coverage). That first savings account could in theory cover 3 years living expenses. Our biggest obstacle, other than me in Target🤣, will be finding entertainment for free or very cheap. You can only go to do many museums before you want to do something else.
ReplyDeleteIt's fun to challenge ourselves and come up with ideas. Time to get really creative.
DeleteI would think also since you still have your daughter at home, essentially two adults that your expenses will be more than in the upcoming years. Kids and school costs are expensive. Are you involved in college expenses too? I remember those as tough years.
ReplyDeleteI offer minimal help the first year of college and then they are pretty much on their own.
DeleteWhat a great goal! You are so goal oriented that I know you will make it work.
ReplyDeleteThanks Deb!!
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