I think this year is going to be a good year for my wife and I, so let me throw out a disclaimer to start things off. I don't post this blog to brag about what we are doing. Anyone can do it. In fact, that's the reason that I post this blog. If my wife and I can go from where we were and succeed with this plan, then just about anyone can do it.
Okay, let's get on with it.
I have a 401k through my employer. I'm not really a big fan of 401k's but that's a personal thing. That being said, my employer does a 50% match and there is no way that I'm going to turn down 50% free money. Even if I take a 20% hit to get the money out when I quit, I'm not going to find a place where I can absolutely get that kind of return on my money so I put in the max that they will match.
That money also earns interest or at least it should. One of the things about my plan is that we are trying to change our life from paying interest to earning interest, even by just a little bit.
It didn't work out that way for the quarter ending in June of last year. I got my statement and my money had earned me -$1.47. I lost a buck and half in interest. Even putting money into a 401k, I was still paying interest. Now with the 50% match, I'm not going to quit.
I didn't get a statement for September for some reason. I wasn't worried about it but it does mean that I didn't have any information to report to you at that time.
I got my statement for the quarter ending in December and the market has turned around. Last quarter my money gained $198.52. How cool is that?
Yes, it's not that much. $65 a month hasn't change my life today. It does however fit the philosophy of the plan and that's important and over time the interest is going to have a huge impact on my money.
Interest is a powerful force in this world and you get to choose whether it works for you or against you.