If you read my budget you may be lamenting on how excruciatingly slow it seems to make any progress. It's true, but after one month on the program I have seen significant savings gains and have controlled my impulse spending on electronics items and games!
As of 24 Jan. 2008
$101,375.00 net worth
- $33,500.00 in CDs
- $130.00 in checking accounts
- $10,000.00 in real estate and property
- $8,400.00 in retirement cash accounts
- $21,450.00 in retirement security accounts
- $18,600.00 in savings/money market accounts
- $10,450.00 in brokerage accounts
In the past I did "borrow from myself." For the last two years, I spent too much money (spent more than I made!!!) and so I had to borrow from my own savings to take advantage of the tax-free Roth IRA for the year. Most people would say, well you saved $5,000 in a Roth IRA and that's great! But remember my goal is better than "great" it's to actually have cash savings, emergency savings, personal savings, and retirement savings. Borrowing from personal savings to fund retirement savings isn't really true savings!
My net worth is actually reduced by $9,100.00 since I still owe that amount of money to my savings accounts. I charge myself 4.00% APY which must come out of my discretionary funds. In this way, I can fund my IRA and keep my savings goals intact for the long run.