I Have ONE Financial Goal for 2007
I have ONE and only ONE financial goal for 2007…
In order to achieve this goal, I must employ strict a little financial discipline (I DID IT 3 months early!!). Therefore, my 2007 financial plan is as follows:
Debt Payoff
- Pay off car loan by July 31
- Pay down 25% of student loan by Dec 31
DONE - paid off a month and a half early!!
DONE - Paid $10,500 towards my student loans, then changed my mind and decided to pay them off IN FULL.
Savings
- Open brokerage account for non-retirement savings
- Maintain existing 401k, Roth and 529 contributions
- Beef up eFund to $15,000 by Dec 31
- Apply any windfalls to eFund
DONE - This account has been earmarked for that very purpose.
DONE - I did even better! I increased my 401k from 10% to 15%.
Spending
- Maximize FSA benefits to pay for BabyGirl’s braces
- Completely decorate and furnish at least one major room in house
- Help little brother buy car
DONE - I love my FSA!
NOT QUITE - This wasn’t accomplished because I moved out of my home and relocated for another job. The home is now rental property that is generating passive income every month!
DONE - Brother reached his savings goal. Put money aside to buy his car, waiting for uncle to take him to an auction. He got his car.
Organize Finances
- Put ALL savings on automatic payroll deduction
- Prepare for tax season, first year itemizing
- Simplify budget to 3 categories: bills, necessities, and fun stuff
- Track spending and rewards by using ONE credit card all year
- Ensure all assets have a beneficiary and draft a will
DONE - Established a stress free financial system.
DONE - Filed in March, received more tax refund than expected.
DONE - Established a stress free financial system.
DONE - Having to think about what happens when you die was very hard, but I did it.
Earn More Money
- Improve monetization on blog
- Sell one thing on eBay every month
- Rent out basement?
- The 5 yr itch is upon me, time to change jobs?
- Review salary goals, develop strategy to earn $100k+ by age 35.
DONE - Here are some of the things I do to earn money while blogging.
DONE - I did even better! Relocated for new job and rented out entire house to generate passive income.
Yes! The itch got the best of me. LOL
DONE - Divinely achieved several years early!
Other Things to Consider
- Is life insurance, in addition to policy through employer, necessary?
- Add pension value to net worth calculation?
- Hands-on financial education for BabyGirl, checking acct/debit card or low limit credit card?
- Evaluate complete financial picture, on track to retire with $2M+ by age 60?
DONE - Based on a detailed assessment, I’ve determined that I have sufficient life insurance coverage.
DONE - I’m fully vested, so yes, I added pension value and increased NW goal from $100k to $125k.
DONE - Multiple hands-on lessons have been implemented this year. I’m so proud!
This year (2006), I did pretty good with my annual goals. Join me next year (2007) by putting your financial goals in writing TODAY and holding yourself accountable. Start the new year off right with good money saving habits - open a savings account with ING and get a $25 bonus. Then make sure the rest of your goals are action oriented and time specific. Don’t talk about it, BE about it!
Wishing everyone a happy and prosperous double oh seven!
Peace & Blessings
~*~*~*~*~*~
Work to achieve, NOT to acquire.
And as always, BE fabulous!
~*~*~*~*~*~
Work to achieve, not to acquire.
And as always, BE FABULOUS!
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This is great! It’s got me thinking of a few things. I must commend you on thinking of hands-on financial education for your daughter. I think this is so very important. Have you read Mary Hunt’s book, Debt-Proof your Kids? I liked it and thought there were some good tips in there.
Sounds great! I look forward to seeing your progress. God Bless, Happy Belated Birthday, Merry Christmas Season, and all the best for 2007.
sf mom
Hi Single Ma, I don’t know what your employer sponsored life is worth, but I can guess that you should acquire your own policy - especially being the main provider of baby girl.
Next, credit card for baby girl may not be a good start. Here is what I do (of course all is personalized - do your thing) Assuming she will work:
1. Courtesy Checking Account - no minimums etc. Online banking a must - get this at your bank and add her account to your online and she can open her own online account. This way you both can monitor.
2. 2 Savings accounts - 1 for a year of expense (car, insurance, title) and one at bank with checking for things baby girl wants to save for (christmas, shoes, electronics) this account should be on her online with checking so she can transfer after deposits are made.
3. Roth IRA - 4 years (16-20) depositing $2k = $1mil at retirement.
4. Debit Card - after she gets license.
You should monitor all her accounts with her. I make them save 80% and keep in disposable income (checking) 20% until they get their license and car. Then adjust to 70% savings and 30% disposable.
Out of the savings % we first funded the high interest savings for future car purchase and expenses (prior to driving age). After that we start splitting the savings. First funding the Roth ($2k / paycheck weeks), left over split by refueling annual car expense account and the rest to savings with bank checking that they can spend on big purchases they plan for.
The hard part is not being judgmental of their frivolous Subway/McDonalds etc spending when seeing where they spend the cash - understanding this is called “being a kid” and they are “having fun”. All of which is good.
Your goals are completely do-able. In fact I suspect you will surpass them all. And keep “living” as well.
@ sf mom - I haven’t heard of that book, but I’ll add it to my list for ‘07 reading. Thanks! And I look forward to seeing your goals in print as well.
@ d - I always enjoy your comments. Thanks for sharing such detail.
Let’s see…my employer sponsored policy is valued at $250k, plus another 50% if I die accidentally. I’ll write about this more in the near future.
As for BabyGirl, so far she has managed her ING acct for 1.5 yrs, so we’ve got saving and online banking down pat. She contributes 20% of her allowance and 50% of all gifts. It’s connected to MY checking and we both monitor the account. The savings isn’t earmarked for anything specific, but she likes to hoard money so I don’t know if/when she’ll ever use it. LOL
We’re still 2 yrs from driving age so car, ins, title, etc. aren’t on the radar yet. At that time, she won’t get a car unless she works and I’ll buy it for her. However, she’ll be responsible for the additional insurance coverage. As of now, she’s not old enough to work so Roth isn’t on the radar yet either. Which takes me back to the question…checking acct w/ debit card or low limit credit card?
While high yield saving accts, online banking, and long term saving are important, I feel she needs “hands on” DAY TO DAY money management experience. I can’t TEACH without allowing her to DO. Over time, I will TEACH less and OBSERVE more. So when she makes the [inevitable] mistakes, it will create even more learning opportunities.
In my opinion, waiting until she gets her license to give her a debit card is BEHIND the power curve. I’d rather see how she actively manages a checking account NOW so I can correct any problems BEFORE she has the freedom to come & go on her own. When she’s driving, I won’t be with her as often so I may not get wind of a problem (if one should arise) until after the fact…causing me to be REactive, instead of PROactive to plant the seed.
I haven’t decided on which I’ll choose, but I’m a BIG advocate of credit cards. In fact, I love credit cards. I know they have a stigma in our society, but CCs are not the problem, people and their spending habits are. So avoiding credit cards will not teach her to use them properly. I’d rather she learn now (at 14) than later in life when most college students begin the path of financial destruction.
If nothing else, a debit or credit card will teach her the importance of tracking expenses and available cash flow. I can talk to her about it and try to lead by example, but I think responsible money management is one of those things that won’t stick until you JUST DO IT.
Hi Single Ma,
Good job getting your 2007 goals down. I have to set aside some time this week to do that little exercise
As for working on monetizing the blog - I highly recommend linkworth and direct selling of sponsor links on your blog. Looking back over the past year those links have made me more than google ads.
Wow…I have some thoughts on my financial goals this year, but I haven’t written them down yet. I just started recently to feel like I’m getting “on track” but I veered off a little this Christmas. I may be moving to another city within the year and getting engaged/married and there are definitely some things I’d like to accomplish and organize financially before I make any moves…
I love that you are teaching your daughter to be fiscally responsible at such a young age. I grew up with one parent who was a “spender” and the other who is a “saver”. I wish I had taken after the “saver” :). My dad just always told me to save, but never really showed me what he did with money or how or why. I was given allowance and would often need to go back and ask for more before the week was up. He never said anything but, “save” but he went a little bit further with his teachings with my brother.
My brother wanted his license and a car at 16. My dad told him to save and he would match it (my brother would lifeguard in the summer, but us girls never had summer jobs because we weren’t allowed to work). My brother saved and my dad followed through with his promise. He also gave my brother a low limit credit card his junior year of high school. My dad took care of the payments during the school year and my brother took care of them in the summer. Needless to say, currently, my brother is very responsible with his money–he always has it and has a clear plan of how to obtain more and he is only 26!:) I can’t help but think that what my dad did with him influenced his financial habits in a positive way (and possibly shaped his career goals too–he’s a Controller). I just wish I’d taken more of an interest or he’d taken more of an interest in teaching me some of those financial lessons.
i think that “don’t talk about it; BE about it” might be my new resolution motto!
thanks, single ma!
@ anon 1:31 - Can you email me so we can talk about the benefits of linkworth?
Every now and then, I get emails about sponsor links and other opportunities with this blog, but I never follow through. I’ve been lazy and I plan to do better. I’m planning a cleaner, jazzier, 3 column layout too.
@ leogirl - I wanna be like your dad! LOL I hope progress with my daughter follows a similar path.
@ anon 1:37 - You can use it, but you gotta be true to it.
Leogirl - GAH… ‘not allowed to work’?!?! My parents pulled that BS on me too, till I really really really wanted to go on a private summer trip to Greece with some teachers from school. There was no way to do that unless I worked. So I got a job after school with a day care program at school. I always thought it was a bit ridiculous that we weren’t allowed to work until the issue was forced by our family finances.
I think it’s good for kids to work. I’ve always worked at my family store when I was on summer break. I learned how hard my parents worked and how shitty customers can be firsthand.
D/SingleMa - You guys rock for having a plan for raising kids. To each their own, but I’m glad y’all know what you are about.
SingleMa - I have some questions for you, but I’ll email you later after I post something later this week about my own goals for 2007.
If I were a mom, I would start out with a checking account with a CHECKBOOK and an ATM card. I would guess that a 14-year-old’s expenses are not that big or varied and anything could be handled with either a check or cash. Maybe have a debit card in reserve that you hold on to for when she wants to buy something online. I think the connection between spending money with writing a check and recording that in the check register or handing over cash are much stronger than using a debit or credit card.
If you are going to go with a debit card, than I suggest training her to use a spending journal to accompany it.
@ mapgirl - I didn’t work until after graduating high school. However, my reasons were much different than yours and leogirl. It wasn’t safe for a teenage female to ride the bus/subway at night by herself. I had no other transportation and no DL until I turned 18.
I’ll be looking for your email.
@ pkthunder - I like the spending journal idea with a debit card. I’ll seriously consider it. Having a total picture of what you spend daily/weekly is a huge eye opener for everyone.
But I hate checks. It’s so…umm…1990s! LOL
Hi
I have been reading your blog for quite a whie and wanted to say thanks for the inspiration. I have managed to put my goals on paper after reading your post.I am now in the process of doing the preliminary work to make my goals a reality for 2007.
Thanks.
Yeah, I hate checks, too. But they just seem like a better way to learn the basics. I guess not so much this day and age.
Go Single Ma! *Sigh* Guess I really need to sit down & work out my financial goals for 2007…something a little deeper than “do better with my finances than I did last year”. Aight, aight, I’m on it! Good plan with BG. I say you can’t “lose” with either option. Can you “blend” them? Maybe a debit card that can be used like a credit card (still with a low limit) that’s tied to a checking account? Either way, I’d still push for her journaling her expenses. Does she work with a budget too? Just curious.
@ tropic - Thanks for reading hun and you’re very welcome. I’m coming to check out your goals and I look forward to following your progress.
@ msjayy - Yes ma’am, you do need to sit down and come up with some ACTION items. None of that resolution ish. I’ll be around to bug you about it too. LOL
Blending may be too complicated for now. Perhaps in another year or so when she’s mastered the basics. But I’m definitely going to do the journal thing (thanks again pkthunder) and maybe have her start with journaling cash expenses. Don’t know yet. As of now, she doesn’t work with a budget. After she saves 20%, everything else is fair game to spend. So her ‘budget’ is kinda forced due to limited cash flow.
Great post! I did sign up for the 401k as you suggested so that’s one thing off my list.
I’m still working on increasing my income (i.e. reworking my resume/cover letter and putting it out there like crazy, and possibly taking a 2nd job/(legal) hustle while I search for a new “main” job).
I’m going to take another look at my expenses and see what I may be able to reduce (including possibly moving to a cheaper apt…that may require moving to an “iffy” neighborhood so I’ll have to weigh that option carefully).
I’m going to make a tighter monthly budget (tonight!) so I can put more money into my e-fund and accomodate my new 401k deduction.
thanks ma..
I am actually working on that now.. I have most of them down but there are others I am trying to work on.. I’ll do this post in January though.. once I get it all down 
Now let me go set up my Microsoft Money for 2007
Thanks
You always have me thinking. I am going to make my plan this weekend and do my best to work with the little bit of money that I have (or get). You are so on point.