Goals for 2007

2006 has been quite an adventure and has set the stage for 2007 to follow suite with many personal, social, and financial quests. It is now time to consider the choices available for charting a course through 2007. I’ve set up general and specific goals that are attainable with dilligence and a little stretchingwhere needed.

Debt reduction and a new home purchase (and associated costs) are on the horizon and specific tasks are needed to build a successful plan of action.

Goal: Increase Savings for Home Purchase to $20,000 by July 2007.
This goal is a serious stretch, but I’m planning on making it happen. This will require monthly savings of $1,200 a month. While that number look exceptionally high at the moment, I think it can be done.

Plan of action – increase current savings from $300/month to $700/month – this comes at the cost of scaling back our debt reduction. The additional $500/month will come from ebay sales.

Goal: Reduce Credit Card Debt to $10,000 by December 2007.
Having a goal of $0 debt is important, but I really need to nurture those baby steps along the way. It is important to see a debt reduction is just as important as debt elimination.

Plan of action – this will be worked out in quarterly steps with a credit card debt load of $13,000 in March, $12,000 in June, $11,000 in September, and $10,000 in December. This will include monthly debt reduction of about $300 or an additional $100 over the current minimum payments and is a drastic cutback in our current debt reduction. Obviously, debt reduction is more financially beneficial when compared to savings, but we can’t put down a lower monthly interest charges on a new house – we need to have cash in hand to make that happen.

Goal: Buy a house in July 2007
This is a logical step after the first two goals. The house should have a minimum of 5 acres of land, a house sound enough to live in, preexisting outbuildings, and no restrictions on the construction of structures or the maintenance of livestock.

Goal: Increase retirement investments to 15% of income by December 2007.
This needs to be a year of positive investing. I currently put away about 11% of my income in a 403B while the partner put pennies in his account. We need to make this a household income goal. A stretch goal would be to max out my retirement account and maybe his too.

Plan of action – increase to 5% in April, 10% in August, 15% in December.

Goal: Increase Passive Income to $200/month.
A common goal for many writers, but an appropriate one just the same. We’ve been struggling with this goal for a while and still haven’t broken out of the “must work hard to earn money” mindset. Current passive income is about $30/month. I’ve got some work to do.

Plan of action – expand internet revenue and investments. Also, build passive income into the purchase of the new home in leasing out propoerty or space.

Just five goals for the upcoming year with smaller milestones being addressed through monthly assessments and adjustments. I’m still working out the excel budget kinks and plan to have it fully functional by January 1, 2007. Best of luck to all of those planning out their year and to those who like to let life take them where it may.

11 Responses to “Goals for 2007



  • MillionDollarJourney.com
    December 27th, 2006 21:34
    1

    Donna,

    What kind of interest are you paying on those credit cards? Would it make more sense to take your down payment savings and dump it onto your credit card debt?

    FT
    http://www.milliondollarjourney.com


  • Donna Jean
    December 28th, 2006 08:25
    2

    The interest is clearly more than we’re earning in savings. However, it doesn’t matter how low our credit card debt is if we don’t have the money for down payment and closing costs. Reducing our debt reduction is a difficult choice, espeially after more than a year of seriously paying it down. But, if we actually want to get out of this rental and into a house (where we’ll actually have more money a month on hand – damn high rent neighborhoods) then we can deal with another year of debt. It is one of those trade offs where you know that number-wise it isn’t the best choice but emotionally and security-wise it is for our family.


  • MillionDollarJourney.com
    December 28th, 2006 09:59
    3

    You know your finances better than anyone else. It’s great that you’ll be able to move from renting to owning AND have higher cashflow. Not a lot of people can say that.

    Best of luck!
    FT
    http://www.milliondollarjourney.com


  • fin_indie
    December 29th, 2006 17:57
    4

    On the passive income front, what specifically are you going to do? I don’t mean to pry, but I see this a lot these days on blogs and I don’t think many people have thought through what it means and what kind of returns they expect. I’m moonlighting today in the hopes that it will yield serious passive income, but not for some time. I look at it as an investment of time for the time being.

    RetiringEarly.blogspot.com


  • Donna Jean
    December 30th, 2006 02:15
    5

    fin-

    We’re actually working on the passive income because right now the only stuff coming in is interest on savings. When we buy a place, I hope to be able to lease out space or board animals to help bring in passive income. Right now we’re selling on ebay, but that isn’t really passive since it involves effort – but it is a little less like work than the 9-to-5. I want to increase web traffic and ad income because that will help some too.

    I’ll be working towards some self-business plans as well, but that isn’t the same as passive income either. I really need money to just come in without work needed to make it. Owning some rental property would really help this goal, but we’re not quite at that point yet.

    Hope that helps some. i’ll be posting more and I get more time and have worked on it some more.


  • Bump in the Road – Leaning on Faith » The Weight of Money
    January 16th, 2007 09:18
    6

    […] I posted our goals for 2007 and include a stretch for saving $1,200 a month for the purchase of a house later this year. This was to combine $700 in direct savings and $500 in ebay sales. I figured the ebay portion would be the stretch, but we’ve already hit a snag 15 days into January. […]


  • Mike
    February 18th, 2007 10:43
    7

    Hi there, interesting site, I’ll be checking back for updates!

    Like FT I have concerns about your credit card debt but u know your personal financial situation better than I.
    2 things – can you get a bank loan or LOC to cover the credit card debt? This would lower the interest significantly. Also – are you sure you know the cost of owning a home? including the price of course. I only mention because u state that the ownership would be cheaper than renting which I find hard to believe (but again I don’t know your situation).


  • Donna Jean
    February 19th, 2007 19:28
    8

    Mike – thanks for the comments and yeah, I know all the related costs for owning a home. We’ll end up in a more cash positive situation because we are renting something beyond our means at the moment. The rent here is more than we’d pay for a mortgage we can afford.

    We are only living in our current area to keep the daughter in the same school for the rest of the school year. Otherwise, we would not have selected this area because it is out of our price range.


  • Mapgirl’s Fiscal Challenge / Mid-Year Review of Goals
    June 12th, 2007 22:21
    9

    […] Some PF Blogger goals for 2007: (no particular order and no particular reason for these other than I could find them quickly) SingleMa’s goals James and Miel’s goals King and Queen of Debt’s goals TMac’s goals Tired But Happy’s goals Donna Jean’s goals Our Financial Journey’s goals Simplicity in Kansas’ goals The Digerati Life’s goals Tricia’s goals Flexo’s goals Jim’s goals Medicated Money’s goals […]


  • 2007 Third Quarter Report » The Weight of Money
    September 17th, 2007 09:33
    10

    […] Earlier this year, I established goals for 2007 to help the partner and I work together toward something and help us stretch a little to see what is possible. […]


  • 2007 in Review » The Weight of Money
    January 7th, 2008 13:36
    11

    […] Last year started out nice and slow and ramped up to an almost unimaginable pace. There are so many things that I was going to work towards that got pushed aside by minor emergencies and new obligations striving for my attention. Before I get started planning for 2008, I wanted to see just how we finished out the year. After some major procrastination, I finally closed out our November and December budgets and the picture ain’t pretty – more on that in a bit. First, lets look at our 2007 goals: […]

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