I think it’s safe to say that any investment making 12% or more a year is thought to be doing well. 12% seems to be a benchmark and maybe that came from the popularity of Dave Ramsey’s book Total Money Makeover. I really don’t know. (By the way, 1% a month is slightly more than 12% a year. I know you know that but I can’t resist underscoring that point.)
The Ted Talk I put up before resonated with me because it showed another way to make money. I’m not saying that mutual funds or other mainstream investment vehicles are bad. I’m just trying to process why my own efforts are paying off more. It just amazed me that Joel (on the Ted Talk) was able to outperform a superstar like Apple stock.
I realize I may be eating crow two years down the road admitting that perhaps I can’t grow money on my own. I honestly have no idea where this game is going to end up. I’m thankful to be married to a sensible man who is grounded, works hard and continues to invest in his 401k.
I’m just starting to feel that the conventional wisdom to get a good job and invest in the stock market for the long haul may not be what it’s cracked up to be.
When we first started saving our former car payment (I guess that was our first iteration of the Money Game), I asked George how I could get 12% or better on those early deposits. He quipped that it was easy pointing out I was still paying our former housekeeper $20 a week to iron his dress shirts. I took over the ironing (our housekeeper was collecting social security by then and she was trying to cut her work load back anyway) and started banking the $20 each week along with the money that used to go to a car loan. At that time, it was $125 a week. Do you see how much extra that was in terms of percentage? That was 20% more right out of the gate!
With that, here’s another “boring” power up. When I write these up, I think they must be boring to read. I keep doing it though. One of my earlier posts said this would all level off and I’d have to find something else. It’s interesting that it hasn’t leveled off. These small power ups keep rolling over and the MG fund keeps getting fatter. If you are tracking with me, grab these same savings for yourself. Just start an account and do it!!
The cable bill came in. I budget $125 each month and the bill was 120.86. So today’s deposit is $4.14.
Level Completed: 162 out of 251
Amount Deposited this month: $484.13
Total Balance: $13,893.84
Our Money Game fund has increased 3.6% so far this month.
$323.74 is needed to reach the next level