This is my first update after starting my $625 per month retirement savings. We did very well this month, with a bit of help from the market. We now are at $17834. Our next goal is $21,000 which includes all of our expenses for six months plus COBRA. We are still $3,166 short but are getting close very quickly. If the market cooperates with us we will be there in about five to six months, well within our goal of having six months by the end of 2014.
Our goal after $21,000 is $25,000, the amount of my gross income, as well as the amount we need to stop using target date funds, and diversify on our own. That will lower our investment costs, increasing the money we keep to invest. If the market does not crash, it looks like we may be able to get up to that goal in eleven to twelve month (March 2015). But who knows, maybe the market will help us more, and we will beat both of these goals in 2014.
But, right now we are not looking for extra money to up our retirement savings. I am happy with 15% while I focus on other money goals, like building up an emergency fund. Within this year my husband graduates with his PhD. That means our very secure income, won’t be as secure. Once you graduate, be ready for turbulence. That is why I am saving a bare minimum for retirement and focusing on here and now. We are building an emergency fund and paying off debt. Once those are done, we will start pushing up our retirement savings again.