Sunday, January 20, 2008

2008 Financial Goals

So, I need to set some goals for myself. I have divided my goals into three categories; Yearly Goals (1 year), mid-term (10 years) and long-term (40 years).
Year Goals - Dec 31st 2008
  1. Save $1000 in cash as an emergency fund
  2. Reduce Credit Card Debt as much as possible (Minimum to <$5k)
  3. Save $ 2000 cash as down payment for car (I'm currently leasing)
  4. Eliminate Credit Card Debt completely
Mid Term Goals: Time Horizon – Dec 31st - 2018
  1. Have $10,000 in non-retirement savings.
  2. Pay off Student Loan Completely
  3. Set up and contribute to Roth IRA to limits.
  4. Travel all over the US.
  5. Travel to Europe, Japan, South America, China, and China.
Long Term: Time Horizon – Birthday 2048
  1. Net worth > $2,000,000
  2. Own at least two properties including primary residence and vacation/weekend home/time share.
  3. No long-term debt (Mortgage, Car, Loans, Self or for Family)

I've been following Dave Ramsey's total money makeover, so my first few goals are based on that.

For my yearly goals; I currently have about $500 in cash savings. I save about $50 a week without trying a whole lot so the first goal should be gone pretty quick. The credit card is a big deal. I will have to really focus and budget on that. I was thinking about paying all of my furniture off with my tax refund, and then taking the rest and saving it for the car down payment. That way my mind will be clear to focus on the credit card. Chime in if you don't think so.

For my mid-term goals. The the big ones are completing that emergency fund. I can't imagine the kind of freedom having 6 months of expenses saved up would give me, but I want to try it. I also have always wanted to travel. I've never had time, other things were always more important. I can to realize that unless I take charge and start really going after it, it will never happen. I want to do it in the next 10 years. I'm not that old, but I'm not really very young anymore either. I'm sure I would enjoy doing it more sooner rather than later. I also have a student loan. It's a 30 year loan with about 27 years left as of writing this. I would really like to take care of this as soon as possible, but it's only at 2.5%.

Long term goals. I want to have a comfortable retirement. I hope that $2M will allow me to have that, if it doesn't this goal will be increased. I think it's possible. I have a lot of time to work on it. As for the long-term debt. I don't want to owe anyone anything. I also want to make sure that my family is well taken care of.

More to come, I'll go through my Net Worth in a future post. For the mean time, you can get a preview by clicking in the top right corner there. I'm tracking it at My Networth IQ like I see so many other people doing.

That's all for now.

Here's to the Future,