Category Archives: Managing Finances

How BIG should your emergency fund be?

Emergency funds are very popular in the personal finance world. They should be even more popular outside of the personal finance world. It’s always a very good idea to have a small savings stashed somewhere. My biggest dilemma is figuring out how much to have in our emergency fund. The interest rate in our savings account is really low. I only get 0.75% on the savings account at Capital One 360.

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Debt – How big should your emergency fund be if you are in debt? You should always strive to have $1000 in a savings account. $1000 will get you through most emergencies if you are a young 20 something year old. The last thing you want is to get into more debt if you have to pay an emergency bill to the doctor or vet.

After Debt – What happens after you get out of debt? Should you build your emergency fund to the equivalent of 6 months of expenses or 12 months? I have seen a lot of personal finance bloggers increase their emergency funds to $10,000 after getting out of debt. $10,000 will equal to about 3-4 months of expenses for us. 6 months of expenses equals to $18,000.

Investing – When you are young, it’s so important to build your investments so you take advantage of compound growth. Once you max out your retirement accounts, is it ok to have a $10,000 emergency fund, and then invest the rest into a brokerage account?

This is where our finances are right now. We can continue to build our savings account, or we can divert some money into a brokerage account.

What would be your advice for a 24 year old?

I’m Automating Some of My Finances In My Life

I studied supply chain management in graduate school. It’s a fascinating subject learning how to make a company’s operations lean and efficient. There are so many aspects to it. While I don’t practice all these aspects at my company, I am doing one thing: sourcing. A lot of people ask me what I do as a sourcing professional. Before I go on, sourcing responsibilities vary between companies. At my company, I spend most of time working with the sales team while their building proposals for solutions. I, also, manage a category that is growing every day. This means I work with suppliers on a daily basis. I negotiate contracts, terms and conditions, cost of goods, suppliers, and well manage stakeholder relationships. You would be surprised how much time is spent on managing these stakeholder relationships. My company is extremely political. Watching House of Cards sometimes reminds me a little of what can happen at my company. When I first same on, the category I managed had no spend. Last year it grew to $20 million and I’m anticipating the spend will be higher this year. I sort of blind-sided everyone in my small team and my own boss. I picked up this category because I saw growth in, when nobody else did.  It’s quickly snowballed into a great opportunity. I have lots of work ahead of me to accomplish all of my work goals.

Then, there are my career goals. You have to spend time outside of your daily job fostering relationships and skills to grow in your career. Network, mature your skills, and learn new skills.

Hah, I, also, want to grow my blog and start working on some new ideas. I’ve had time, but lacked motivation or energy or something. Guess by the time I use my brainpower to tackle work and career related goals I’m pretty beat.

As you can see my life is going in many directions and it’s hard to keep track of everything. I’m in charge of our finances, and I have decided to automate bills, savings, and investments. I have automate our retirement contributions (IRAs) and a little bit for after tax investments. This is so exciting!

I, also, opened a Personal Capital account so I won’t have to log in to all my accounts to check our net worth. I’m not affiliated or getting paid by this company. I read a lot of reviews from personal finance bloggers who rated the experience in a positive manner. So far, I like the interface of personal capital.

Do you automate your finances?

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H&R Block: Taking the Plunge- Married and Managing Finances Together

I’m so happy to say I had the opportunity to contribute to H&R Block’s blog. H&R Block has a blog called Block Talk where contributors discuss tax stories, news, tips, and advice from professionals every day. I am contributing more on the side of personal stories on your money and lifestyle choices.

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This month I wrote about whether you should manage your finances together when you’re married. A lot of couples tackle this financial issue, and we sure did. One of the reasons I started reading personal finance blogs was because I was trying to figure out how to manage our money.

Check out the post and let me know what you think.

Read the full story here….