While we were very happy with the progress we made on last year’s Financial Goals, we didn’t get all our debt paid off last year. That’s our number one goal for our 2013 Financial Goals, and barring major idiocy by the government, we should do it. We spent all of 2010 dilly-dallying with our savings because we didn’t know if my husband would be furloughed (he’s a government employee). This year, we’re cautious but are planning to go full steam ahead on our goals. We’re living beneath our means and will have a huge leg up once the debt is gone, so we want to get there!
Here are our 2013 Financial Goals:
- Pay off student loan debt by the end of July.
We’re on track to do this, and since my husband graduated from law school 11 years ago, it’s taught us a lot about how we mishandled our debt. It sets us up to do better for our kids as they head to college in a decade. - Fully fund our emergency fund with 3 months of salary by the end of December.
Once we make the last debt payment in July, we’ll start piling that money and anything extra I can earn into our savings so we have a fully-funded emergency fund. - Learn about our retirement options by the end of March.
We’ve put this off because we’re following the Dave Ramsey plan of paying off our debt before putting money into retirement accounts, but we’ll be ready to do it once we accomplish goals 1 and 2. We want to feel informed and be able to make decisions. - Set and utilize budgets for four quarterly expenses: new tires, a new couch, a beach trip, and Christmas (we are traveling this year).
We looked at the year and have these four “big” expenses, so we assigned one to each quarter and will set a budget for each. Our regular meetings (#5) will help allocate the money needed (since we have lines in our budget for house expenses, car repairs, etc.). - Meet more often to go over monthly expenditures and quarterly/yearly progress.
Towards the last half of 2012, we got lazy about having our regular chats, which caused us to get a little “loose” with our money. Nothing too serious, but we’re committing to meeting twice a month to review expenses and make sure we accomplish our small and large goals this year.
What are your 2013 Financial Goals?
Image from Calsidyrose at Flickr
My goal this year is to complete my graduate studies and get a job. The first $15K I earn goes to pay back a loan, and the rest of my income will go toward getting my ROTH IRA fully funded and putting more money away for my daughters’ 529 accounts. Our plan is to continue to live on my husband’s salary and not change our spending habits even when I’m bringing in more income.
That is a great plan, considering that you’re already living off your husband’s salary. So smart!
Our goal is to use whatever we get back in taxes to pay off as much of the small debt as possble. I made a huge mistake and took out a couple of payday loans, thinking I’d be able to pay them back quickly. And of course, life happened. and that didn’t pan out. But once the taxes come in, I’m going to pay those off, pay some late fees that have accrued on the car and house payments and chip away at some credit card debt. I have finally sat down and taken a hard look at what we owe each month, how much we make and what we need to put out to make our payments and have money to live off of. I am the poster child for everything financially you don’t want to do. But I think I am finally getting it together.
You are taking a great step, Lisa, in acknowledging where you are. It is good to hear that you know exactly what you owe and are prioritizing where to put that money. Good for you!
You are so close to debt FREEEE! I can’t wait to see you cross the threshold. Our main goal is to pay at least as much toward debt in 2013 as we did in 2012 – our first year following Dave Ramsey’s plan. It’s aggressive, but if we can make that we’ll be on track to be debt free by the end of 2014. Thanks for your help in getting us there!
Thanks for checking in, Fran. Sounds like you’re being aggressive and taking charge as well. Good luck!
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My husband is also a government employee. Do you have a back-up plan that doesn’t bar government idiocy? We are not on Ramsey, but do try to make smart choices. We put something toward retirement and college every month. We overpay the mortgage (by a tiny bit). The goal is to be free of all debt except the mortgage, car loans, and student loans before the end of the year, with car loans the priority after that. We are already refinancing the mortgage to an easier payment, lower rate, earlier pay-off time, and lower overall cost with no output now. We already eat at home 90% (or more) of the time. Right now we are living at or just under our means (with the occasional unexpected bill that frustrates me), but the economy/circumstances continue to get worse, and I’m running out of ways to save this thing. Between the pay freeze that never stops, the rising cost of healthcare, a bonus pool that will be drained to prevent furloughs (my husband was one of two out of 70 and a smaller amt to begin with), a baby on the way, and diminishing opportunities for better work for him (no hiring by competing contracting firms due to threatened government idiocy and no salary increase with internal positions), threat of more taxes, and now possible furloughs, too, how DO you fight the good fight???
Setting financial goals is a smart choice and can be very rewarding, it’s like setting a personal goal. When you set a financial goal, you define what you want and develop a plan for achieving it.
Read more here http://www.gettingmoneywise.com/2012/10/setting-your-financial-goals-with-cash-advance-online.html
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