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Home > I loves me some end of the month money!

I loves me some end of the month money!

November 28th, 2009 at 04:18 pm

November is just about over and after bills are paid and money is put into savings, we have close to $2000 left! Woohooo! We're not sure if we should throw it at savings or earmark it for investment or perhaps do something else with it. It sure is nice to know we're on the right track, though.

Here's hoping we can produce similar results in December! Smile

10 Responses to “I loves me some end of the month money!”

  1. lizajane Says:

    Nice job!

  2. NJDebbie Says:

    Wow, that's quite a chunck of change left over. Do you have an emergency fund? I don't mean to intrude, but if you don't maybe some of that nice cash can go to start one.

  3. HouseHopeful Says:

    Thats awesome!

  4. baselle Says:

    2nd the emergency fund if you don't have one.

    If you feel like you need to put it into something more investment-y, remember that you can top off/start your Roth. Since you can withdraw the principal tax-free (earnings are taxed, not the principal), you consider it as an emergency fund. Does double duty!

  5. DeniseNTexas Says:

    Thanks, thanks! It feels good. Smile
    Debbie, we do have an EF. It's only 6 months worth at this point and we talked a bit ago about adding the money to that.

    Baselle, I know nothing about Roths and am trying to figure out just where to start in investing. Still looking into the solo(401)k idea but where does one start a Roth?

  6. ThriftoRama Says:

    You can start a Roth just about anywhere. You can call Vanguard or any brokerage. You may even be able to open one at your local bank or credit union. Just call and ask for a personal banker and they should be able to tell you what they offer. Once you open it and fund it, you can invest the money in anything you want-- a CD, a stock mutual fund, etc.

  7. DeniseNTexas Says:

    So you can use a Roth to invest in a mutual fund? I'm so lost! Off to find "investing for dummies"! Thanks.

  8. baselle Says:

    Yes, Denise - think of the Roth, or any other IRA, 401K, 403B, SEP401K, etc as a container or a vehicle that you can put money in. You can put money in after taxes are taken out as in the Roth (tax free, which is your end of the month money), or before taxes are taken out of your paycheck as in a traditional IRA, 401K, 403B (tax deferred).

    You have the container, you have the money which gets put into the container, then you have where you want the money to go. That's where your individual stocks, individual bonds, stock mutual funds, bond mutual funds, 'balanced' (some stock, some bond) mutual funds, index funds come in.

  9. midlight21 Says:

    HURRAAAAAAAAAAAY!!! You've come a long way baby!!!! That is great news.

  10. DeniseNTexas Says:

    Thanks, Baselle! This is really confusing. I just remembered I have a 401(k) through my employer so I logged on to check it. I got into it very recently so it's quite new and there's about $600 in there (woohoo! lol). However, I went through the "get advice" routine and it says my investments are considered "risky" and the advice is to lower the risk and increase the contribution amount. The company matches up to 5% of the pay but apparently I can contribute more of my pay if I prefer. I haven't a clue how to go about reducing the risk but the advice engine will tell me that, too, I think. Hmmm..

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