I recently realized (in july) that I never really talked about my goals for 2014 here on the site. Of course, that does not mean that I did not set any, it just means that I didnt put them down here. I firmly believe in the importance of setting goals and have done so every year with varying degrees of success since 2007. At the beginning of the year, I was not quite sure what to make of this year, and didnt really expect the first 7 months of 2014 to turn out as they have, but that doesnt matter now. All that matters now is there are 5 months left till the end of the year, and we are going to go after these few goals pretty hard for these 5 months.
These are just our financial goals, and they are what my wife and I have talked about and fit into a broader financial plan that we have been discussing for the last 4 months (which I will be writing about in the future). We think these are the most important things right now for us, so we are going to go after them.
One thing to note – these are in addition to our normal savings deposits for the accounts that we maintain – an emergency fund, a fund for home repairs and upgrades, a fund for our child (or future children) and a fund for a vacation that we are hoping to take in the summer of 2015. Without further ado, here is what my wife and I will be focusing on (financially) for the next 5 months.
- Max Out My Roth IRA – I am listing this one first because this is the second to last year that I will get to contribute to a roth IRA. This is for a few reasons, chief among them is the retirement plan that my employer has requires a traditional IRA, and if my employer is putting pre-tax money in there I may as well also. I have also been reading up on conversion strategies to avoid taxes on one of my new fav blogs the MadFIentist and think that I am unnecessarily giving away money to the government at ~27% tax rate, where as I could be accessing that money down the line for a far lower tax rate. I have been contributing at a rate of $330 per month (and will continue to do so), which should be $3,960 by the time the last contribution hits in december, so I will just need to find $1,540 some time between now and next April, which should be doable.
- Max Out H’s Roth IRA – She opened hers up this year sometime in the second quarter, so her needs to top it off will be greater than mine are. If I recall correctly, she should have $2,640 worth of contributions at the end of the year, so we will need to find an extra $2,860 to top hers off. Again, not difficult, but will be a challenge.
- Get our house under $97,500 – This is our third and final goal, and will probably be the most difficult one. Given our current balance of 109,201 left on the house, this means we will need to come up with 11,701 worth of payments to hit this goal over the next 5 months. Subtracting our normal monthly payments, we will need to put an additional $5,561 to put towards this note. H and I have talked about diverting some of our cash flow here now that the student loans are gone, but we probably will not be able to divert this much. We have discussed a few options, and I’m pretty confident that we will be able to make this goal (or be happy failing either way).
These may seem like some lofty goals, but I am hoping that these will all be taken care of with the bonus that I’m expecting to get from my new employer. I am estimating the size of my bonus conservatively (as I know you’re not supposed to expect them), and that should be able to take care of a significant part of these goals. If not, my side business has been doing well lately and I am hoping that it will only get better, so additional cash can be taken from those efforts as well.
We will see what happens, but right now H and I are going to keep working towards these goals and hope to close out 2014 with some huge financial milestones reached. Those milestones of the freedom from consumer debt and getting our home under 100k!
Readers: How are you doing on your goals for 2014? Any need to be reshuffled because of life?