Smart Reasons to Save, Use and Invest Money

The Three Little Financial Pigs: Pig #3 Update

I like to think of the third little pig as myself, but I don’t really know if I”m really qualified to make that claim.  In my last post I stated that I’m really more of a Pig #2 1/2 or even a Pig #2 3/4 than the full pig 3 type.

Pig #3

If you are new to this storyline, the basis of all three little financial pigs are two of my childhood friends and myself.  I blog about each of their stories in the original articles listed below:

So now onto my update, have I made progress?  Yes, my net worth has increased by much more than $10,000 since last year.  Part of that increase was in my investments such as my 401k and my regular brokerage account.  Most of the increase has come from the saving of my paycheck into these investment accounts.  It’s a long rhythmic journey this point forward.  I like to think of it as a long almost straight road with a slight incline.

The Steps that I’m currently taking on my journey are:

  1. Earn money from being employed
  2. Save more than 20% of the earned money
  3. Invest that 20% amount into investments
  4. Repeat until wealthy.

It’s not glorious, but it’s a solid path and plan.

Unfortunately the steps above will never get me to the superrich level though, but I should be able to make it to a lower level of a millionaire next door type.

I think the most important aspect to remember is to start doing it, and the sooner the better.  I’ve been guilty in the past of having slow starts with tasks, but over time I’ve learned (and I’m still learning) that your attempt doesn’t have to be perfect the first time.  It’s much more important to start the task than to worry about getting it perfect or even right.

Hopefully this year my net worth will grow at a quicker rate.

Cheers,

MR

18 Responses to The Three Little Financial Pigs: Pig #3 Update

  1. Slow, steady incline…you’re right.

    I really thought that after 15 years of working with 2 incomes, we’d be further ahead in our 401K’s than we are, but what’s done is done and it’s time to look ahead and make up as much as we can.

    I’m going to ignore retirement for the time being (still saving but not obsessing) and focus more on near term goals. Next car fund, college, junk like that.

  2. I think that’s the best approach! I spread the amount that I saved fairly eavently to all areas of concern. But I am lacking in my car fund, I need to jump on that and soon!

    • Plus, it’s one of the easier routes. Enjoy life by living a balanced life while at the same time saving the money slowly to become a millionaire someday.

  3. Saving 20 percent of your income is a great thing. You may end up quite wealthy, you never know. Like Sandy, I too thought my retirement account would have more than it does, but the market just didn’t perform like I wanted it to!

    Keep on saving Pig 3!

  4. Starting early and adjusting the amount is one of the best ways to meet your goal. I have been doing this a long time and I am still adjusting the allocation or investments.

  5. A simple plan followed through is better than the a 1000 glorious plans!

    Increasing your networth by $10K is no joke! You should be proud of yourself! Great job MR!