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.
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.