Did you know that only about 4 out of 10 Americans can afford to pay a unexpected expense of $1,000?
That means on average about 60% of the people in one of the wealthiest countries in the world cannot afford even a $1000 emergency.
And if you’re a long -term reader of our blog, you know that our community here is comprised of people who don’t like being average.
So today I’m going to share with you my financial plan and goals for 2023, one of which is saving $10,000. A goal that is far from average.
Note: There won’t be much commentary in each section, but the notes are clear and easy to understand.
Let’s begin.
2023 Financial Goals
- Save $10,000
- Invest $5,200 into Wealthfront
- Invest $5,200 into Fidelity Roth IRA
My approach to reaching these BIG goals is to break them down into small , approachable pieces.
Game Plan
- Save $834 a month for 12 months
- Automatic deposit of $100 every week into Wealthfront
- Manual deposit every Thursday into Fidelity (app doesn’t have a weekly automatic option)
Investing
Wealthfront – $100 a week, every week for 52 weeks = $5,200
Fidelity (Roth IRA) – $100 a week, every week for 52 weeks = $5,200
Spending Money
90% Physical Cash , 10% Debit Card
This money comes from my 2nd source of income, A Step Above. The money I make here is what I will use for shopping, etc.
My 90% physical cash, 10% debit card breakdown simply means I will be using actual cash for the majority of my purchases.
For the rare occasions I make a large purchase I’ll use my debit card. Debit cards are technically still cash, just in digital form.
Saving
The money I receive from the following will go towards my savings goal:
- Weekly budgeted amount from paycheck *
- Overtime at work
- Quarterly bonuses at work
- Monetary Gifts
*My weekly budgeted amount from my paycheck is the amount that I “pay myself first”. In other words, before I pay any bills, I set aside money for me.
Additionally, any overtime I work also goes towards my savings goal.
Conclusion
For those curious, the $10,000 functions as “opportunity money”. Ideally I’d like to use this money to make even more money. This will likely happen by investing it in some way.
I have felt for quite some time that it’s important to have money on standby as you never know when a good opportunity comes your way.
“Stay ready so you don’t have to get ready”.
Until next time, y’all have a good one.
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