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I lurked this thread last year and it inspired me to create some written goals and report back this year! Current savings: - $10k liquid emergency fund - $15k in liquid savings - $5k in HSA w/ 5% employer match - $9k in 401k w/ 6% employer match plus 3% "gift" from employer - $28K in vanguard IRA - No Roth IRA Total Savings: $67K Current debts: - $9K in CC Debt @ 10% - $26K Auto Loan @ 1.4% - $28K Student Loans @ 5% Total Debt: $63K Net worth: $4k Overall Income: 150K/yr + 30K/yr bonus Q1 - Update at end of March - (Q1) Acquire full bonus of 30K - (Q1) Acquire tuition reimbursement from employer of 5K - (Q1) Use bonus or reduced spending to pay off CC debt totally - (Q1) Fund 401K @ 6% to get employer match - (Q1) Fund HSA @ 5% to receive employer contribution - (Q1) Reduce spending using budget caps, working with GF, and lifestyle alteration/reduction to free up 10% of income for other goals - (Q1) Extend current spending planning from 1 month in advance to 2 months - (Q1) Reach at net worth of $10K - (Q1) Create a gift plan and budget so I don't go crazy on family gifts this year - (Q1) Update my existing budget with caps on spending problem areas, enlist help of GF Q2 - Update at end of June - (Q2) Reduce spending using budget caps, working with GF, and lifestyle alteration/reduction to free up 25% of income for other goals - (Q2) Extend current spending planning from 2 months to 4 months - (Q2) Reach a net worth of $20K Q3 - Update at end of September - (Q3) Acquire tuition reimbursement from employer of 5-10K - (Q3) Use remainder of bonus and reduced spending to pay off student loans - (Q3) Fully fund 401K - (Q3) Fully fund HSA - (Q3) Create & Fully Fund Roth IRA - (Q3) Reach a net worth of $30K - (Q3) Help the GF find a paying job now that grad school is done to reduce household expenses Q4 - Update at end of year - (Q4) Extend current spending planning from 4 months to 6 months - (Q4) Reach a net worth of 40K Stretches - Stretch: (Q4) Pay off Auto Loan - Stretch: (Q2) Find a side gig - Stretch: (Q4) If all debts paid, move completely off of CCs to become fully debt free - Stretch: (Q4) Reach a net worth of 50K This is my first time trying something like this - I maintain a full budget in YNAB and track it religiously. I have been crawling out of heavy debt from a year of unemployment several years ago that had me do heavy debt spending. I also have a separate, more detailed plan of how I want to achieve these goals.
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Jan 3, 2017 14:22
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IllegallySober posted:I like the rest of your plan but if you have both a $10K emergency fund, and a $15K savings account, I don't understand why you wouldn't just pay off the $9K in CC debt @10% interest right now. That would still leave you $16K in liquid emergency/savings funds. Yeah I am probably going to end up doing that - was holding until the bonus came through in March but I feel pretty good about releasing that money now.
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Jan 3, 2017 22:36
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End of Q1 Update:Mad Wack posted:Link to Goal Post Debts: - $26K Auto Loan @ 1.4% - $20K Student Loans @ 5% Reduced by 9K, from 29K Total Debt: $46K (Down from 63K) Net worth: $37k (Up from 4K) Q1 - Update at end of March Q2 - Update at end of June - (Q2) Reduce spending using budget caps, working with GF, and lifestyle alteration/reduction to free up 25% of income for other goals - (Q2) Extend current spending planning from 2 months to 4 months Q3 - Update at end of September - (Q3) Acquire tuition reimbursement from employer of 5-10K - (Q3) Use remainder of bonus and reduced spending to pay off student loans - (Q3) Help the GF find a paying job now that grad school is done to reduce household expenses Q4 - Update at end of year - (Q4) Extend current spending planning from 4 months to 6 months - (Q4) Reach a net worth of 40K Stretches - Stretch: (Q4) Pay off Auto Loan - Stretch: (Q2) Find a side gig - Stretch: (Q4) If all debts paid, move completely off of CCs to become fully debt free - Stretch: (Q4) Reach a net worth of 50K End of Q1 Summary: It turns out when you have a lot of income plus good financial planning it is really easy to achieve your financial goals. I think the biggest driver here was talking with my live-in GF more about money, we started sharing some costs and also adjusting our lifestyle to free up money to achieve our goals. There were some (expensive) plans we had that we ended up adjusting because we didn't really even want to do them as expensively as we were (e.g. we skipped some pricy concerts and plays that neither of us was that into). In any case I am way ahead of planned schedule helped a lot by my bonus and also my tuition reimbursement. I am expecting another 5K or so from tuition reimbursement. One minor setback was a rent increase of 6% - I negotiated it down from 9%(!) and we both agreed we would use this next year-long rental period to search for a cheaper place in an area we like more. Depending on how Q2 goes I will almost certainly accomplish all of my planned goals and then I will see if I can kill the student loans ahead of schedule. Really happy about this Q1 start and hope I can keep it up for the year.
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Apr 17, 2017 15:43
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EOY Update (Early) Debts: - $26K Auto Loan @ 1.4% - $20K Student Loans @ 5% Reduced by 9K, from 29K Total Debt: $46K (Down from 63K) Net worth: $103k (Up from 4K) Q1 - Update at end of March Q2 - Update at end of June - (Q2) Extend current spending planning from 2 months to 4 months - Still @ 2-3 months, but good effort Q3 - Update at end of September - (Q3) Use remainder of bonus and reduced spending to pay off student loans - This never fully materialized, I'll use next year's bonus to clear it out Q4 - Update at end of year - (Q4) Extend current spending planning from 4 months to 6 months - Better luck next year! Stretches - Stretch: (Q4) Pay off Auto Loan - Stretch: (Q2) Find a side gig - Stretch: (Q4) If all debts paid, move completely off of CCs to become fully debt free - Stretch: (Q4) Reach a net worth of 50K End of year summary: Everything came together pretty nicely! Had a few curve balls throughout the year but the planning helped me have emergency reserves and stay on target. I'm expecting to move up a pay grade in February and receive a full bonus which should help me clean up the last few goals in Q1 2018. Overall this was a great exercise and I'll do it again for 2018.
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Dec 5, 2017 05:48
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