Yellow's Green

The Adventures of Money Blog.

Friday, June 23, 2006

We Can't Afford a House - YET

Currently, we're saving $300/month specifically for a house downpayment or adding on to this one, or whatever.

The money gets parked in a Money Market account with a 4.8% APY.

If this was all we did, we'd have about $35,000 in five years - less taxes.

Whenever I reach $500, however, I'm throwing the money into an ever higher yeilding CD. The 2yr CD I bought today has a rate of 5.36%(5.51% APY).

Of course, I can't put *ALL* the money in CDs with a maturity that long. We will need to have times where we'll have enough money access to take good opportunities.

I'm very encouraged!

3 Comments:

  • At 6/24/2006 1:47 PM, Anonymous ric said…

    I'm just curious.... no implied criticism here. Are you paying any rent or helping with food expenses for Erik's parents?

     
  • At 6/24/2006 2:31 PM, Blogger Amber said…

    yup. $250/month

     
  • At 6/24/2006 4:32 PM, Anonymous ric said…

    sounds like a perfect deal. (funny to sit here typing while Eli is laying on my lap trying really hard to get myelbow to his mouth so he can slobber all over it.)
    I've been reading Rich Dad's "Cash Flow Quadrant" which is better than his first book. Still more of a "this is my philosphy book" than "this is exactly how to achieve the way I think is best" book. Not as snarky as the first one either.

    More explanations and his thinking is seeping in. Makes sense of the difference between asset and liability. Makes me think a lot harder about the difference between being self-employed and a business-owner. I think what I've been thinking of all along is "self-employed" but not sure that's what I want to do. Can't think of a way to be a business owner yet though. It's a book I'd actually recommend reading.

    (finally let Eli get it to him mouth and he giggled about it!)

     

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