Monday, February 26, 2007

Getting started

Enough is enough. That's what it has come down to.

I dream of sipping Sangria on the coast of Spain. Reality is quite far from that. I just recently completed my studies for my MBA. I'm not sure why, as I hate business. A few years ago I ended up in an accounting job, where the money is schweet and that's where I've been ever since. My undergrad is a useless degree in English & Journalism, with a minor in Poli Sci. Those jobs don't pay the bills. The plan was to get my MBA, get a high paying/mind-numbing job that would allow my to make lots of money to save to be able to move overseas. I ran the numbers last week to see how much I would have to save a month to get to $500,000, which is my magic number for being able to move. I have an ING account that pays about 5% interest. The interest compunds daily and it took me a while to find an online calculator that would compound daily. Finally I found an online compound savings calulator here.

Considering the $1000 emergency money that I have in there now, I would have to save about $7250 a month for 5 years to meet the magic number in my hopeful scenario of 5 years. Now, that is $87,000 a year...that would have to be after taxes...and it doesn't leave room for monthly expenses and things like, oh, eating! This little realization put me into drastic action mode. I need a plan and I need it fast!

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