2008 Financial Goals-Midyear Review

Below is the list I made in October 2007.  I started early.

2008 Financial Goals

1.  credit card debt free by July 2008.  Achieved February

2.  $2,500 Cash Emergency Fund by March 2008.  Achieved, loaned the money out and now I’m at $1,400.

3.  Start 529 plan for my kids. Done! Valued at $214

4.  $2,500 into Roth IRA by December 2008.  Currently at $800

5.  Debt to Income Ratio of 3.1 by  December 2008. Currently at 3.25.  I may need to adjust this

6. Increase net worth by 16,000.  Almost there.  It’s increased by $15,000 so far

 

Plan

Can’t have goals without a plan on how to achieve them, right?  So here is the plan.

1.  credit card debt

It is all gone!

2.  Cash Emergency Fund

I adjusted this goal to be $3,600 by December 31, 2008.  I was almost there and then I started loaning people money.  TSK, Tsk.  Now I’m only at $1,400.  I have $2,200 to go.  I have to contribute $440 per month to achieve my goal. I can do it, hopefully I should get most of the money I loaned out before the end of the year.

3.  College Savings

Done!

4. $2,500 into Roth IRA for 2008 ($209/month)

I’ve only been contributing about $100 when I do contribute, which is fine.  Currently the ROTH is at $860. 

5. Debt to Income Ratio of 1.7 (my goal would be from 3.5 to 3.1) by the end of 2008

I recently read an article which said the debt to income ratio for a thirty year old should only be 1.7 times her income.  My debt to income ratio is 3.5.  Thus, I owe 3 and half times my yearly salary.  I’ve reworked my debt payoff plan since then and I’ll be lucky if I hit 3.20.  Right now I’m at 2.25 and I seem to loose 0.01 every month.

6. Increase net worth by $16,000 by the end of December

My current networth is -32,000, largely due to a student loan debt of $56,000.  In order to achieve this goal I will pay off $3,000 of my HELOC since it has a higher interest than my mortgage and student loans.  Right now my net worth is around -$17,000.  That is an increase of $15,000, mostly do to my home’s value stabilizing, paying off my cc debt, purchasing a rental home, and contributing to a savings acct.  I’m $1,000 away from my net worth goal.  WooHoo!

Conclusion

I plugged these numbers into my budget and it looks doable.  In fact, it looks easy.  If I stick to this plan I can actually have a positive networth in two years (Happy dance!!!)

I always get happy and lose sight of the long term goals when ever I gain short term success. But this time there will be no back sliding, no money lending to family members, and no crazy Christmas and Birthday gifts/parties. I will be well on my way to having a positive neworth by the end of next year!   

Hmm, I have loaned money to family members, tsk, tsk. I have definitely learned my lesson.  

I haven’t done any crazy Christmas or birthday parties.  Good!

I still think I’m on track to have a positive net worth by the end of 2009    

I am in danger of not meeting my EFund goal.  I need to work harder on this.