Financial Notes 3

(Originally written August 27, 2007 in Notebook 19)

Savings/Investment Plan (1 month)

Today: Open Money Market Account with $25

Friday 8/31/07 Purchase 1st Gov Bond (25)
Thursday 9/6/07 Deposit 25-75 f/ D's paycheck into MM
Friday 9/7 Purchase second Gov Bond (25)
Friday 9/14 Purchase 3rd Gov Bond (25)
Thursday 9/20/07 Deposit 25-75 f/ D's paycheck into MM
Friday 9/21 purchase 4th Gov bond (25)
Friday 9/28 Purchase 5th Gov Bond (25)

Never mind, that plan stinks.

Financial Savings/Investment Plan

Phase I - Savings Accounts and Debt Payoff and Bonds

1) BOA Savings account

- Chris invests all of his savings in here until it reaches $3,000. This is our fall back money
- D puts a small amount each paycheck into here: $10-15 or so, depending on bill needs.

2) Money Market Account

- D invests her paycheck savings here
- Savings from photography goes in here
- The purpose of this account is to achieve high interest for our savings and is usable for mid-range, long-range goals
- There is no maximum on this account because it will eventually be a place for us to get our down payment on the house

3) CC #1

- Pay this off as quickly as possible from D's paycheck. $200-300/check

4) CC#2

- $212 and change is automatically withdrawn from the account months until December and it is paid off

5) CC #3

- Chris pays this off with tips

6) J.A. Cambece

- Pay $25/mo from account until paid off, pay more if possible

7) Bonds

a) EE bonds and purchase $50 EE bonds from BOA account for $25 whenever that account reaches the next highest $100 mark (example purchase it wen it hits $400, $500, $600... $2900, $3000)

b) Since this money comes from the BOA account it is paid out of Chris' tips

c) Once the BOA account hits $3,000 purchase EE Bonds ($50) as often as possible until we reach $2500 in EE Bonds

End of Phase I - Target date mid-2008

Net Worth: $7,000-$8500

Phase II Bonds & DRIP

Bonds

- continue purchasing EE Bonds until we reach $5,000 in par value or 100 $50.00 EE Bonds.

DRIPS

- Purhcase Kellogg's and invest $25-$1000 and then $25.month and let the dividends accrue.

End of Phase II Target Date: December 2008

Net Worth: $11,000-$15,000

Phase III Bonds, DRIPs, IRA

a) Bonds continue with bond investing until we hit $7500-$10000
b) continue with Kellogg's and add one or two more drips
c) Open up IRA
d) Continue to invest in MM account