Friday, May 25, 2007

Freedom Fund Adjustments

I'm bumping the goal for the Freedom Fund up to $5,000, from $4,500. This is partly because I have a round-number fetish. It's also partly because I'm not totally confident that $1,500 per month quite covers expenses.

My current balance is $1,850 in the ING Freedom Fund account, with about $1,030 coming in when my despis├ęd Bank of America CD matures in August—by the end of this month, it should be $1,950. To be on track to save the extra $500, the balance in the ING account needs to be about $2,335 by the end of August (not counting the CD). I don't think that will be a problem: it means saving about $130 per month during June, July, and August. I've been saving more than that anyway—I've been making at least one extra $50 payment per month lately, and I don't anticipate a problem continuing to do that. If I did that every month through August—contributed $150 a month—I'd have a balance of $2,400, not including interest. Just to set the bar a little higher, I think the goal for the end of August is $2,500.

My hope here is that I can hit the $5,000 mark by the end of the year (again, this assumes that my beloved and generous aunt continues her tradition of $500 checks to her nieces and nephew at Christmas). Then I can let the Freedom Fund percolate while I focus on other savings goals.

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