Money I Earned While Watching America’s Next Top Model Marathons
Posted on December 22, 2005 10 Comments
Looking back on my first full calendar year of saving and investing (if you can really call it that), I’m quite pleased. I’ve earned $1,804.63 by doing nothing at all.
It’s easy to overlook interest/investment returns as they add up. After all, my savings account yields a measly $3.00 or so per month, and I rarely check my 401K site to see what progress I’m making. My typical comment, upon seeing my monthly bank statement, goes something like this:
“Savings account – what a joke! I might as well buy a new pair of shoes (I saw some great ones at Aldo today) and chalk it up to my “happiness account.” THAT would be worth a lot more…” (posted on this web site, December 2004)
But, adding it all up, I realize that my savings and investments will only grow over time. If I can make nearly $2,000 in my first year of investing (consider: I knew next to nothing about finance when I started), I’m excited to see what the future will hold!
As the author of Rich Dad, Poor Dad says, it’s important to make your money work for you. Granted, my meager savings are a long way off from real estate, but I’m proud that I’ve capitalized on opportunities available.
Here’s where the extra income came from:
Savings account interest: $35.06 (cha-ching, baby!)
401K “market change”: $336.25 (that’s 12.3%)
Company match to 401K: $1,433.32 (fully vested, too)
OK, so the last one’s not really investing, but I still count it towards the pot of money that’s not in my salary – that I “earned” while sitting around watching America’s Top Model marathons.
Three cheers for interest earnings. If I can get some, so can you!
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10 Responses to “Money I Earned While Watching America’s Next Top Model Marathons”
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December 22nd, 2005 @ 11:27 pm
how is the company match not part of your salary? You couldn’t have gotten it if you didn’t work at all. The other two, you could have.
December 22nd, 2005 @ 11:53 pm
In my mind, since the matching funds are not included in my annual salary, I could not get them if I weren’t saving. It’s money I’ve made beyond my salary (like the interest I earned this year).
Therefore, it’s money that I made by doing nothing but putting away savings!
OK, my reasoning might be flawed but I never claimed to be an investment broker. If this thinking gets me jazzed about saving, then let me have it. Why worry about semantics?
December 23rd, 2005 @ 4:58 am
I’m with you. You might not have received that money if you didn’t work, but you surely wouldn’t have received it if you didn’t put the requisite funds in you 401K. So it definitely is money beyond your salary as far as I’m concerned. Hey, that’s why mileage varies. So call it interest, call it market increase, or call it Clyde. But it’s money you get to spend later on in life that someone else ‘gave’ top you.
The immediate vesting part is sweeeeet!
December 23rd, 2005 @ 7:38 am
Have to agree that 401(k) matching counts as saving and congrats on using it to your advantage. Far too many people don’t. It’s easy money, but you have to put aside savings in order to get it. Keep the savings coming in 2006!
December 28th, 2005 @ 5:06 pm
In the end, does it really matter what “officially” counts as your savings and what is your salary? Like you said, as long as it gets you excited about saving and investing your money, then who cares? The most important thing is that you see yourself making progress.
Jeff
http://www.roadtorich.com
December 30th, 2005 @ 3:01 am
Good job! Any plans to start investing in stocks outside of 401k? That’s where it really gets interesting.
I found Motley Fool books to be great for beginners.
January 3rd, 2006 @ 3:27 am
This is the first time I have come across your blog and as a 27 year old frugal freak I love it! The only “best practice” I can pass along concerns the bad performance of your savings account. You might consider some of the savings accounts offered online. I am so happy with my ING Direct account(ingdirect.com) that I don’t mind giving it a free plug. I’ve had it for two years and I earned over $500 in interest this year alone!
January 3rd, 2006 @ 10:36 am
I think that your reasoning is dead on, BB. Every time I have to talk someone at work into contributing a mere 100 tax-deferred dollars a paycheck (we’re paid 26 times a year) to get the 2300 or so company match we get a year, I want to smack them upside the head.
I mean, they’re doubling your money from day one, they can’t do much better than that!
But then, I really don’t understand folks today. Last week I suggested that a co-worker should put half her raise into a 457 and she started talking about getting a new car. Another fellow, one of those “bare minimums” as I call ‘em, wants to start _leasing_ an ’06…why doesn’t he just flush his money down the toilet (me, I’m driving a ’92…airbags? We don’t need no stinkin’ airbags)!
Nice to see someone in their 20s thinking ahead when I’ve got people in their 30s working for me with far, far less sense. You just keep doing what you’re doing, and more power to you.
January 3rd, 2006 @ 3:52 pm
Wow you sound like a really smart lady. I am a 41 year old sbc telephone company phoneman and am a complete idiot when it comes to finaces(don’t spell all that well either). I can’t afford those books by motley fool eother. Do you have any other suggestions where I can get some good advice and also how can I get my wife to stick to a budget rather than just going out and spending our money. I tried doing the books and budget myself but was totally overwhelmed by it all because I had/have no clue what I am doing. Thanks
January 10th, 2006 @ 8:52 pm
Anonymous: Although the company match is part of the compensation, it is not taken by a lot of people. Same with the 15% gain of the ESPP.
By taking actions, she made sure she got the compensation she deserved.
Money And Investing