Monday, 23 March 2020

The Homestead Fund Update (Embrace The Chaos Edition)

Okay, so it is that time again, when I update how my progress is going on my “Grand Savings Plan!” (to build my "Homestead Fund") 

Okay, so let’s see how I did . . . 
   

For review, here is how things looked from last payday . . .
   

That is 19.4% (of my Savings Target).

And this is how things look like, after the dust settled on this payday’s budget . . . 
   

That’s right things jumped up to 30.8% of my savings target. 

That means I put away an astounding 11.4% of my total Savings Target this payday! That is an astounding number and one that strains credibility.

No, I didn’t short the market, rob a bank or otherwise gain a large windfall. What I did was revamp how I measure that number.

You see, I have been trying to keep the number fairly stable and take out the wild swings of investments.

I have a few different types of investments going and so they will swing up and down in value depending on different factors. (Don’t ask me for financial advice as I am not a financial planner).

I have decided that with me moving to put more of my cash in the stock market. The market is lower now and the interest rates that my savings account has also tanked.

That means that my savings, the value of my investments (across the different types) will vary greatly each payday. 

So, this number is going to go up and down, regardless of how much I put into my savings and investments each payday.

So, I will just measure what those investments are worth on the eve of payday and plunk that number into my savings target calculations.

So, there will be no predictability in that number going forward, it will be chaos. But also fun to watch . . . and I hope moving in and upward direction.

As always: Keep your head up, your attitude positive and keep moving forward!

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