At this point in my money story, I have a strong financial base. 12 months of living expenses are in my bank accounts. I aim to save around $4,000 each month post tax after contributing a portion of my income to my 401K, Roth IRA, and HSA accounts.
I’ll stockpile lots of money in my personal checking account to fund my monthly bills, insurance, car payment, and student loan payment. The interest rates are low on these loans. Thus I believe my money will have greater spread by investing this money rather than aggressively paying down my bad debts.
I have a great Colorado lifestyle from incurring these bad debts. As an avid snowboarder and outdoor enthusiast, my SUV brings me so much happiness. It’s taken a few months for my psychology to work through the in’s and out’s of this bad debt but I can say I’m at peace with my decisions. I’m spending money on what makes me happy while still saving over 50% of my take home pay. That’s winning!
I’m now entering a stage in my money journey where I’m focused on building extremely healthy cash reserves. These reserves will address my main goals: have two years of living expenses banked. Fund any maintenance on my rental properties. Have enough to Nomad another rental property.
My mind is torn between investing more of my money in index funds or not to. Over the last few months CEO’s from top companies are stepping down, cashing in on their profits. This signals to me the global markets are about to enter a recession.
On the other side of the coin, I can’t time the market. I can only get lucky ‘timing’ the market, but nobody truly knows what will happen.
With that in mind and my personal goals I will prioritize building my war chest.
Since I believe an economic recession is going to happen soon, the winners, or survivors, of this economic cycle, will be the people with cash. For this reason and my need to continue operating and growing my rental business, saving cash across 2020 is my money story.