Monday 22 June 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 40.0% (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 40.7% of my savings target. 

That means I put away 0.7% of my total Savings Target this payday.

Believe it or not that is a good amount, not because I put extra away this payday, but because it was looking dicey for my investments.

In the end while one investment dropped, another investment went up, not as much as the one that went down, but at least it went up.

It is interesting to see how these two investment vehicles do tend to run in opposite directions and seem to smooth out the overall value of my savings.

After all, my investments are my Long-Term Savings, and so it is important to know what they are worth. 

Yet, because they are investments, their gains or losses will not be real, or realized, until I go to sell them, and that is planning to be years away before I do that.

For now, though, I am pausing investing and instead building up my Mid-Term Account back up to its fully-funded level.

I have come to realize that in times of uncertainty, such as now, it is important to have some cash reserves to draw on if and when I need to. 

Cash reserves that don’t involve selling investments at a possible shocking loss, due to urgent need. It should be fully-funded by the second payday in August.

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

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