The Balanced Spreadsheet-Financial News, Budget Advice, Debt help, Financial Tips, and other advice

July 17, 2009

June Cash Breakdown

Filed under: Personal Finance, Real Example, Uncategorized — thebalancedspreadsheet @ 5:33 pm

I like to breakdown our cash as of June.  I feel that it is important to give your savings a name, because if you do not you will end up spending it on something that is not in your goals.

 

June '09 Cash Breakdown

June '09 Cash Breakdown

Emergency Fund-While pretty much every financial advisor recommends that you have some kind of emergency fund to cover unexpected health costs, job loss, or other emergencies, it varies to how much you should keep.  I like to measure our emergency fund in the total months expenses saved in the bank.  Our emergency fund is currently at $10,000, which is about five months worth of expenses.  My wife and I are currently comfortable at that number and there is no plan to up the amount any.

Working Funds-This is related to the ESPP program.  Because $1,667 is always taken out of my paycheck every month, I like to keep an amount in savings to cover this “loss” of savings.  The total of ESPP dollars and the Working Funds should always equal $5,000.  Since ESPP was $5,000 at the end of the month the working funds is zero.

Travel/Car/IRA-This is kind of a split category, as we have a few things my wife and I are planning to do with this money.  We put 15% of our income towards retirement and we are debating whether or not to just go ahead and max out a ROTH IRA for $5,000 now due to the fact that we think the market is going to be recovering soon or just do 15% a month of her pay.  We would also like to try and go to Spain for our one year anniversary in May.  I know that is still 10 months away but never too early to start planning and saving nowJ.  In addition, even though our cars are in good condition and we do not plan on buying a car for a few years at least, we are saving now to pay for our car in cash since we do not believe in debt. 

So there you have it.  Periodically I will keep you guys updated on the cash breakdown and see where we stand with our savings goals.

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3 Comments »

  1. […] Cash-Cash decreased slightly.  This is mostly due to contributions to my Employee stock purchase program (ESPP) as well as paying an additional $1,450 on the mortgage.  Currently we have a nice cushion but some of that is going towards a trip and possible IRA funding down the road.   […]

    Pingback by August ‘09 Net Worth update (+6.96%) « Thebalancedspreadsheet's Blog — September 1, 2009 @ 12:40 pm

  2. […] Cash-Cash decreased slightly.  This is mostly due to contributions to my Employee stock purchase program (ESPP) as well as paying an additional $1,450 on the mortgage.  Currently we have a nice cushion but some of that is going towards a trip and possible IRA funding down the road.   […]

    Pingback by September ‘09 Net Worth update (+7.66%) « Thebalancedspreadsheet's Blog — October 9, 2009 @ 11:51 am

  3. […] Funds-As always with a quarter end month, the balance is zero.  As described in June’s cash breakdown update, because I participate in my employers stock purchase program, I need to cover the $1,667 […]

    Pingback by Cash Breakdown September ‘09 « Thebalancedspreadsheet's Blog — October 9, 2009 @ 2:27 pm


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