Monday, June 27, 2011

My Savings Challenge...The Savings aren't Permanent for Another Year

I took on a Financial Savings Challenge at the behest of a member of the Compact Group back in Jan. of 2009.
I entitled that undertaking the $60K Savings Challenge.
Well, our name is NOT Rockefeller so we didn't even come close to saving $60K in '09. lol

We did however put away $23,997.24 for the year.....this amount is above and beyond any amount we put into retirement accounts for the year.  It's just a pile of money from the after tax/after retirement and insurance deductions paychecks we get that I manage to keep the family from frittering away on crap.
As you can see, I am getting darn good at keeping the family's sticky fingers off the money! ;-)

Going into 2010, I stepped down the savings goal to a more attainable $30K.
Throughout that year, I would on occasion use some of the 20009 Savings money toward big, not-everyday expenses we incurred in 2010 rather than using current income dollars.
Like buying a used car for cash.
Or buying a new refrigerator.
Or paying for the costs for 2 vacations we took that year.

We ended up using $12,991.45 in 2010 of that $23,997.24 we saved in 2009.
So in reality we actually permanently saved $11,005.79 in 2009.

In 2010 we saved $35,770.18 and we'll be using some of this amount when out of the ordinary large expenses come up in 2011.
We haven't used any of this amount for 'big hairy goals' in 2011 yet.
But we are planning on using some of that money soon for house repairs.

When 2011 is over, I'll be able to calculate how much of the actual $35+K we saved in 2010 that
we'll be able to tuck away permanently.
Well, permanently until some big expensive emergency comes along....and eventually they always do!

So the amount I save each year on the Savings Challenge isn't permanently saved until a full year after it ends.
I use the previous year's savings amount as a short term goal emergency fund.
And when that following year is over I dump whatever is left into a slot marked 'permanently savings'.
At least, that's how I organize it in my head. ;-)

Next Sunday Hubs and I will be having a financial meeting.  Among the discussions will be how much/what kind of home repairs we'll be having done this year.  I'm hoping that list won't eat away at that $35+K we saved from 2010 too badly.

Do you have a savings goal each year? 
Do you keep any money you save for the year into a separate account?

Sluggy







9 comments:

  1. My goal is $.12. I don't think that we are going to make it.

    ReplyDelete
  2. Awwww SonyaAnn!
    How is your Christmas Goal coming along?
    I haven't heard about that any so far this year.

    ReplyDelete
  3. That is AMAZING!!! My goal is about the same as SonyaAnns unfortunately... It's been a bad year.

    ReplyDelete
  4. At this point, my savings goal for the year is basically not to end up too deeply in the red. :) Maybe I'll finally get to a more stable place next year.... nah!

    ReplyDelete
  5. You are pretty impressive, I must say.
    Your Friend, m.

    ReplyDelete
  6. Practical--SonyaAnn prolly meant to say .02¢ but she is an Overachiever, even when she's broke.lol

    McVal--I admit that $23K sounded better than $11K.
    But in the end, the "actual" savings was $11K so I have to come clean here.
    And I know all about having a bad financial streak...like this June. When I get it all tallied up for this month, I'll be lucky if we didn't finish June in the red and I have to deduct some $ from my 2011 saved amount so far.
    I hate going backwards!

    Pretty--I hope you do better next year too. I think it will be easier to deal with if "things" are more settled for you financially. If not better at least easier. ;-)

    Mark--If I can impress someone like you, my day is made. But it must be easy since Fred is quite the spender, huh? ;-) I can come over there and get all "Larry Winget" on Fred if ya want....just say the word.lol

    ReplyDelete
  7. I'm just working on coming up with the cash. I hit a few sales the beginning of the year but I'm changing it up a bit. I'm just all kinds of exciting.

    ReplyDelete
  8. My goal is to leave what is in savings untouched. So far, I have managed to do that. I LOVE seeing that savings account balance!

    ReplyDelete

Hey there! Thanks for leaving a comment. Though I moderate it's partly to keep spam out but also partly so that I read every comment. I don't often respond to comments so if you need me to answer you please write me at my email addy posted on my "About Me" page, linked on the side bar.