Feeding the E-Fund Just a Little Bit More
Here’s a quick update from last month’s e-Fund report:
Goal: $25,000
Previous Balance: $21,432
Recent Deposits: +$1,262.85
- Monthly Interest: $39.21
- Direct Deposit: $200.00
- Manual Deposit: $1,023.64
New Balance: $22,695
Additional Savings Needed: $2,305
Now that I’ve decided to reduce my 401k contributions, I can probably squeeze out another $2,000 before the end of this year. With one more paycheck in the month, all bills accounted for, and a few more holiday expenses (especially if I decide to travel again), it may only be $1,800. If so, the remaining $500 will have to wait until January…unless I earn something extra on the side.
You know something? Making deposits into my e-fund gives me a rush. It really makes me excited. I think it’s because I remember a time when I couldn’t afford to save. I worked to pay bills. That’s it. Most of the time, my expenses were more than my income and I had to rob Peter to pay Paul. Whenever I’d get ahead, something happened to make me take two steps back. Because of that, I couldn’t grasp the idea of “pay yourself first.” For years, I lived this way. From the looks of those around me, it was normal.
In order to break the cycle, I had to focus on increasing my income – not debt reduction OR savings. With a higher income, it became easier to pay my bills. Once I was able to pay all of my bills without skipping a beat, then I began to save – a little. Although I had extra money to save, I was always so used to being broke, it became a self fulfilling prophecy. So I shopped. Then I went through a phase of compulsive shopping and binge saving with one bad habit competing with the other. That internal battle lasted about a year.
It wasn’t until I decided to buy a house that I changed my habits and began to save consistently. After a few months, I was saving only what I could afford, I stopped dipping into my savings to shop, yet I still allowed myself to shop occassionally. Several bad habits were corrected when my mind focused on accomplishing a goal. Once I realized the connection, I allowed my goals to drive my behavior with money. Now, when I have a goal in mind – like increasing my e-fund to $25k – I think to myself “is this purchase really that important to me or can this money be used to feed my e-fund just a little bit more?”
And then I get excited all over again!
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It really is nice to feed the Efund. I’ve set a big goal of saving an additional $30k over the next 24 months so I will really have to watch my spending and account for every penny.
http://www.singleguymoney.com
SM, you are such an inspiration!
Thanks for sharing this today.
I am goal-driven too. I actually get emotionally attached to my goals, and that’s what helps to keep me going. Great job pushing yourself, Single Ma!
Do the doggone thang! I can relate to your post 100%. I’ve been at each of those junctures and now i’m happy to be at a nice balanced place in my financial life. One of my goals that i’m working on next is to pay off my mortgage. I’m so excited about sending the first extra principal payment in next month that i’m certain i’ll get that same rush.
Fantastic job Single Ma (or as I like to say sometimes, “fantabulous”… I promise i’m educated:-).
“I had to focus on increasing my income – not debt reduction OR savings”
whoa, say it again! I always gear to increasing my icome instead of deprivation!
I think “fantabulous” is an excellent word.
I love to read about others setting and achieving goals, I always think two things “Good for her (him).” followed by “If she (he) can do it, I can do it too.”
Fantabulous, Single Ma.
Hi there, this post really hit home for me and thank you for sharing your past experience. Right now, I find it difficult to save with the bills I have. I think the key is to find a better paying job or some sort of way to increase my income so that I can start to save and get out of debt. Again, thanks for this post.