Jun 04 2012

May 2012 financial update

Here’s a little financial update from the month of May:

Spending

Our spending has been a bit up lately. Mostly it’s been in stuff I’ve purchased for the kids. Books and preschool-y toys and some clothes. I am fine with all of those purchases, but I’ve gotta admit — I had to grab some money from another spending category to pay for it since I didn’t have enough in my “kid stuff” category.

I don’t do a cash envelope system; instead, it’s an electronic one with savings sub-accounts.

My other high category of spending? Food. Grocery prices are up and my kids’ appetites are growing.

Investments

I updated my chart at NetWorthIQ for the end of May and saw our net finances were down.

It was all in investments — our retirement accounts and our college savings. That’s how it goes! I’m satisfied with our specific investment choices and we won’t need the money for many, many years so it’s no thang.

The market was down, so I figured I’d transfer some of my extra IRA savings (that was waiting in my regular bank account to be transferred this year at some point) since my share prices are on sale, so to speak.

For example, in March my fund was at $22.88/share — the highest it has been in the time I’ve owned the fund. The other day, I bought at $20.54/share.

I do send the same amount biweekly to each of our retirement accounts, and through “dollar cost averaging,” sometimes we pay more for a share, and sometimes we pay less. It’s automated and it’s fine.

I suppose my strategy could be considered market timing. Still, I intended to transfer the money at some point this year anyway and I had no good reason not to send it on it’s merry way to Vanguard.

Hope what I did and why makes sense here.

Savings account earning 0.01%?!

I noticed that my growth savings account at my regular bank was now drawing a measly .01% interest. Whoa.

I’ve stopped using the bank for debit purchases — I needed 5 per month to get .55% interest. It’s used as a bill-pay account and short-term savings account. I use my ING Direct account for day-to-day spending and additional savings.

Previously, I had half of my emergency fund at ING but I decided to move all but $500 of my emergency fund there so it would earn .8% interest. Every little bit helps, of course.

Not a huge amount, but lemme tell ya, .01% interest is pitiful. Say I had $10,000 earning .01% for a year. That’s a DOLLAR in interest earnings for the course of the year.

*PFFFFFFT!*

Contrast $10,000 at .8% interest for a year, and that’s $80 in interest.

My income

Earnings here at the blog are falling off like _________(insert your own dire metaphor here).

I’ll be happy if I’m still netting a few bucks from Amazon affiliate sales every once in awhile. Gotta love Amazon! And you know what, I “sell” more carpet cleaners on this blog than any other product on Amazon. Haha! I stand by my Hoover, truly.

 



2 Responses to “May 2012 financial update”

  1. In my opinion, there really isn’t a place to get high yield on your savings these days. Some are better than others, but the best (over 1%) have so many strings that it’s not worth it to me. For example, many require direct deposit to get the full yield, but I already have direct deposit set up at my bank for a mortgage discount so switching is not a viable option for me… unless they’d be paying 10%. :)

  2. Yeah, there’s not. Normally, I don’t rate-chase, but when it’s .01% that just makes me mad. They are making WAY more on my money somewhere else, so moving it to my other bank is no big deal.

    It’ll be nice when we can get 1% somewhere. I remember 3% and higher, and that was when I barely had $2 to rub together!

Sorry, comments for this entry are closed at this time.


Hey! I'm Kacie, wife to Shane and mother to Jonathan (7), Vivienne (5) and Amelia (2) . I write about my family's finance: how we save money, improve our spending, and plan for the future.

I hope I can inspire and encourage you to improve your situation. See disclosure.

I'm adopting a much slower-paced posting schedule, and treating this as a hobby blog now.

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