6/08/2009

An Annual Savings Plan..Continued.

So, the more I think about this - more stressed I am making myself.


It is really hard to save for annual expenditures, that you are currently paying for monthly. For example, I pay an additional 4% on my car insurance because I pay it monthly. I would like to pay it annually b/c then I save the 4%. I made this spreadsheet to help figure out what to do.

Above, you can see what my annual costs are. To make this effective, I called up AMA and asked what my renewal dates were. From there I figured how many pay periods I had to save for each item.

Basically. If I had started saving for each item one year prior to having to pay for it, I would need to put away $78.57 bi-weekly. I didn't do this (namely because I didn't think of it). To accomplish this goal now, I would need to put away $229.82/bi-weekly.

Sigh. I don't have a spore $230/biweekly.

So, options:

1. I can just start saving the $78.57 now, and make up the rest from my e-fund

2. I could suck it up and get another job

3. I could use my credit card (boo!)

4. I could plan to save for, and pay for, the three lowest cost expenses which would be $33.60/bi-weekly (without car insurance.). With this plan, I would pay for car insurance monthly again next year, but start saving on the renewal date (or sooner), that way I would have 26 pay periods to save for it rather than 9.

What do you think?

2 comments:

  1. I like option 4. It makes no sense to pay CC interest to save 4% on your car insurance. Leave your efund for an emergency such as a car breakdown. If you get another job, it would let you start fresh without a visa payment and you would have lots of spare $$, but you would probably not be doing much fishing... but this would be good if you could get 1 evening a weekend serving. Can you say work-life balance??

    ReplyDelete
  2. I agree... I opened *another* ING savings account ( I now have four - with one being joint with Jordan).

    I'll put $35/bi-weekly into it, and see how that plays out.

    ReplyDelete

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