Annual Goals Update: February Status
We’re two months into the year and I’ve failed to mention any of my 2008 goals since creating them on January 1st. I’ll try to include a quick status every month to keep them at the forefront of my mind. Otherwise, I might cheat and have you all thinking everything is progressing just fine.
So let’s see how I’m doing.
e-Fund: Done! As of 29 February, I have over $16,500 in my emergency fund, made possible by the long overdue bonus. The original goal was $15,000, but I’ll need the excess to pay my taxes next month. I will continue to contribute $150/pp to build a travel reserve, maybe even an “oops, I forgot I had to pay for that” reserve. I’m not a fan of multiple accounts, so I will use it for all savings purposes. If I need to withdraw cash, the balance threshold will always be $15,000 unless there is an emergency.
Max 401K: On target to max by end of year, contribute $574/pp.
Max Roth IRA: On target to max by eoy, contribute $185/pp.
Max BabyGirl 529: On target to max by eoy, contribute $74/pp.
Non-Retirement: Fail! With a goal to establish a non-retirement portfolio of $5,000+ by the end of the year, not only am I at the mercy of the market, but I have failed miserably. So far, my online brokerage account has received naythan and I have read zero investment books. I’m such a slacker. LOL I won’t even make up any excuses but I’m sure I can come up with at least 5 if you want to hear them. LOL I already know what I want to do, I just need to do it. Vanguard. Index Funds. ETFs. Need $3,000 to start. Dear Single Ma, just open the dang account already!
Work Less, Live More: Pass/Fail. I only work 40 hours/week, I haven’t brought any work home all year, and I don’t expect this to change. If things go according to planned, I’ll be starting a new job (same pay, more perks, less stressful, better QoL) before summer.
With a goal of taking 3 vacations this year, I’m batting 0 for 3. I haven’t done any research nor have I saved a dime specifically earmarked for travel. Spring Break is quickly approaching and I’m scheduled to take a week off with BabyGirl. However, I have no idea where we’re going. I can cover the cost of this trip with monthly cash flow, freelance, and online revenue. But our destination? Who knows. Mama better get busy! Then again, she might have to work. LOL I have to remember that she has a little jobby job now. Ha!
Healthy Living: This was not an annual goal but it was added out of necessity. Matter of fact, it isn’t a goal at all. It’s a lifestyle change and I am committed 110%. Last month, I cleaned house and started a new healthy living routine. Although my willpower was challenged several times, I stayed true to my word - exercise several times per week and no junk food.
So far, so good. My top priority goals are either complete or on auto pilot, so I’m happy with the progress to date. However, I need to pay more attention to my non-retirement investments and start seriously thinking about our vacation to Paris. Then again, maybe I should hire a travel agent. Vacation “planning” is uh…blah. I just wanna hop on a plan and GO!!
~*~*~*~*~*~Work to achieve, not to acquire.
And always, BE FABULOUS!
This blog is the story of my life...a single mom who worked her way from nothing to financial freedom. Subscribe here and follow the rest of my journey.
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Hi Single Ma,
I’ve never commented on a blog before but I have been truly inspired by your advancements and goal setting. I’ve had my own recent personal finance epiphany and am starting to take the steps to also become fabulous & financially savvy. So, thank you!
Thanks for the info. I wanted to tell you I also started a new job search, this position is providing more stress and less pay than my previous and it’s just coming to ahead. I read your post on following your gut and not accepting counter offers and I’m going to go with that. From doing some research the guy that was before me was let go with a 10 minute notice after leaving his job and only being there a few weeks. This WILL NOT happen to me!!!!!!
Good luck on the job front!
I hope someday I can be as in good shape as you are…I’m definitely still working on it.
Lady, I LOVE travel planning! I’ll be your “agent”!
For real? What’s your billable rate? LOL [-SM]
You are really on top of it with your retirement savings.. That’s such an inspiration.
Single Ma - Congrats on making strides to reaching ALL of your goals. You’ve definitely been a source of inspiration for me. But I do have a question…
As I’m working on reaching my financial goals for the year, I was told by BofA that I am unable to max out a Roth IRA if I’m a). single, b). make more than $52,000 and also have a 401(k) retirement plan. And from the looks of it, you make more than $52,000 and are single, so how are you able to make max contributions to your Roth IRA? Is it because you’re a mom?
No, it isn’t because I’m a mom. LOL
a) Your marital status doesn’t determine if you are eligible to contribute to a Roth IRA, but your AGI (adjusted gross income) does. However, the AGI limits are higher for married vs. single, but being single doesn’t make you ineligible.
b) The 2008 AGI limit to maximize your Roth contribution is $159k for married filing jointly and $101k for single. There are also higher income limits ($169k and $116k respectively) that are eligible for a Roth but the allowable contribution is gradually phased out until the AGI reaches the maximum threshold.
c) The IRA eligibility that’s based on whether you have a 401k is the Traditional IRA, not the Roth IRA, primarily because both are tax deferred retirement accounts. Whereas, you pay taxes on Roth contributions. Please consult a tax professional to better understand the tax implications.
It concerns me that a BofA rep would tell you something so blatantly incorrect when all you have to do is search Google for the answer, but I’m not all that surprised. [-SM]
I appreciate your accountability. I love reading your blog. -Becky R in NJ
I love the goals you have set for yourself!
Oh yeah - it’s looking good in here! I’m glad to see how well you’re doing!