2021 Age Of Money Challenge
Who's glad 2020 is over? I know I am, and to start off the new year great I've continued a long tradition of the AoM challenge!
- Choose a day every month that you will post your AOM to the google spreadsheet (link below).
- Be consistent on the day that you have chosen to post your AOM. (Your metrics will not help you or provide you with useful data if you are not consistent.)
- Post your AOM.
- Comment below that you have updated the spreadsheet.
- If you want, you may post a screenshot of your AOM. This will be fun and will help keep the thread alive. It's not required however.
- Try to keep the thread on topic.
Cheating is posting a number that is not your actual AOM, or changing your number because your AOM increased the following day.
We are following the the honor system.
You do not need to cheat, but if you do, everyone will ask how you've become so awesome with money and then you'll have to live with yourself. It only hurts you.
Question about the spreadsheet, or you find errors in the formula's, just let me know in the thread below.
If you've stumbled upon this post and wondering what AoM is, I encourage you to visit this helpful article: https://docs.youneedabudget.com/article/199-aging-your-money. :)
Alright, I've joined! Line 39. Started YNAB at the very end of 2020 but didn't have an AOM until January. I started with a fair bit of buffer in my bank account so as of March EOM, I'm at 49 days.
I'm not sure what a proper goal should be but am saying 60 for now, as an average. I'm paying off consumer debt right now and my debt paydown plan includes a lump sum payment at end of year so I can still have an emergency fund built up while cash flow is tight. I anticipate my AOM continuing to increase past 60 and then dropping a lot when I make that final payment. Also, life can and will happen in the meantime.
Dec 2020: 48
Jan 2021: 36
Feb 2021: 57
Mar 2021: 37
Apr 2021: 52
Almost there, although I'm going to take a hit when I go on vacation this summer. That's okay - this'll be the first time in my life that I've saved up for a vacation, rather than put it on a credit card and slowly, painfully pay for it later.
My age of money has gone down a lot this month. My paycheck was quite small this month, so I had to eat into my savings. I am expecting the more normal paychecks for me again starting next month, so hopefully I'll recover quickly from this and will see higher AoM in the next couple of months.
Also, before YNAB I used to have lots of extra costs at the beginning of the year (city taxes, insurance, income taxes, retirement investments which I can put in on January 1 if I want) and lower at the end of the year. So by July I would see less large chunks of each paycheck being taken up by some tax bill or so and I would be happy and also would invest more in the second half of the year.
With YNAB now I'm seeing those big bills in the first half of the year as true expenses. And rightfully so, I think. The difficulty now is that this year I'm both paying the full amount during March - June and I'm also putting away the money for next year's bills. I'm sure it will be very nice next January to May to just have this money sitting there for all these bills, but right now it means that I have to set aside my income for these true expenses and can invest less. Which feels like a bit of a bummer. (It will mean that I can invest more in January to June 2022, of course...).
Took line 44, I do this every year so why not :). Last year I started at 180 and my goal was 150 because I was positive it would drop and I was hoping to control the bleed, but to my surprise I ended at 214. Many months were in the 230's until end of the year taxes and expenses hit. So this time I'll shoot for 250, but I'm doubtful at the rate spending is going this year, but who knows. I spent many years barely ever cracking 30 so this is progress. I'm still averaging 214, but April was a higher income month so I'll try to make it last :).