Wednesday 22 April 2020

The Homestead Fund Update

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 34.7% (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 35.4% of my savings target. 

That means I put away 0.7% of my total Savings Target this payday. Now, on the surface that is dismal, but let me explain.

You see, it actually was a good payday for my savings, as not only did I put away my average (on the higher end of average actually) amount into savings, but I had a bonus.

I got my tax refund and this year, for the first time in ten years, I wasn’t hit with a penalty for not “paying back” “My” RRSP the amount that I “borrowed” from it back in film school in 2010.

I actually got a shade over $1K of a Tax Refund and put that into my savings. So, all in all it was good, and I should have moved that percentage much more than I did. 

So, what went wrong?

Well, since my savings, my Long Term Savings is actually two different investment types they go up and down in value at different rates, reacting to different factors.

So, one of my investment vehicles went up in value by over $500.00, not bad. The trouble is that the other investment vehicle lost the equivalent of everything I put into savings (not including the tax refund). 

Such is the nature of investing and using investment vehicles (various types of things that hold and increase in value) as savings.

The big news is that as a result of getting my Mid-Term Savings Account is fully funded and I was even able to squeeze $100.00 into my TFSA (one of my Investment Vehicles).

We shall see what happens going forward, but I will turn my focus back to my Long-Term Savings and build it up, now that my Mid-Term Account is fully funded once more! 

That is a load off of my shoulders, as I hate having either my Main or Mid-Term Account below zero (less than what I expect to be in there).

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

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