Happy New Year! I hope you all had a wonderful Christmas and New Year celebrations!
I want to quickly apologize for being “M.I.A” over the past several weeks. It was honestly a combination of feeling downright crummy from awful vaccines and “normal” third trimester aches & pains/exhaustion. As well as being quite overwhelmed by what 2016 has in store for our little family (the big ones: baby & overseas move) and everything we need to do to prepare for these big life events. It will definitely be a crazy and busy but wonderful year full of many blessings. AND I am finally feeling up to jumping in with both feet. 🙂
2016 Financial Goals
I thought I would start out the year by sharing our 2016 financial goals, to give you a little insight into our focus and planned direction for the year.
PAY OFF MORTGAGE!!!
Our primary financial goal for 2016 is to become 100% DEBT FREE!!! YAY!!! We will need to pay off $19,418.25 in order to reach this goal. Considering we paid off more than $40,000 in 2015. We should reach this goal without too much difficulty. Our best estimate is we should accomplish this goal between August and October.
CASH FLOW OUR PCS (Military Move)
Although we are so excited to be moving back to the U.S. this year. It also means it is going to slow our financial progress because we will need to save for the move. We have received notification of orders and it looks like we will be moving to a high cost of living area somewhere between July and September. Once my husband receives official orders (hopefully within the next month or so), I will share where we are moving and our detailed financial plan to make it happen. For now, since we don’t even know exact details. Our plan is to start saving in February with a goal of $9000 saved before our move.
INVEST 20% of OUR GROSS MONTHLY INCOME into RETIREMENT
Once our debt is paid off our focus will turn to investing for retirement. We currently invest approximately 8% of our gross monthly income. By December 2016 our goal is to increase our investments up to 20% of our gross monthly income. This should hopefully create a comfortable nest egg when the time comes to retire (about 30 years down the road).
ESTABLISH A COLLEGE INVESTMENT ACCOUNT
Our goal is to establish an ESA or 529 Plan for our baby boy. We do not have a set amount that we want to invest this year. We just simply want to get one started! Just for those of you wondering. We do not plan to pay for 100% of our child’s college education. He will be expected to work part-time and apply for scholarships to help pay for some of the expenses.
Some of you may be wondering about using the G.I. Bill to pay for our child’s college expenses because we are a military family. However, my husband currently has the Montgomery G.I. Bill and it has to be used within 10 years of military retirement. My husband should retire from the military ~12 years before our son is college age.
My husband could transfer his Montgomery G.I. Bill to the Post 9/11 G.I. Bill (which children just need to use by the age of 26 years) which he probably will make the switch in the the future. However, my husband will most likely use his G.I. Bill to either finish his Bachelor’s Degree or earn a Master’s Degree. So we still plan on saving for our child’s education separately.
What are Your 2016 Financial Goals?
I would love to hear your financial goals for the year! Please share in the comments! 🙂
2015 Financial Goals
Did you think I forgot about our 2015 goals? Well, unfortunately we did forget about our goals a bit as the year progressed and you will see how miserably we FAILED at them!
- Paying Down Our Mortgage to Below $25,000. PASSED!!!
With a mortgage of $19,418.25 on December 1, 2015 we easily passed this goal. Unfortunately, this goal became our primary focus and we entirely forgot about our other goals.
- Travel to 6 Countries Outside of the United Kingdom. FAILED!
We traveled to: The Netherlands, Portugal (twice), Spain, and Germany this year. Although we are 100% satisfied with our traveling experiences while living in Europe. There were several places (Iceland, Greece, Paris, Prague) that we wanted to travel and it just did not happen. With the news of expecting a little one mid-year. Our focus and priorities dramatically changed and we quickly accepted that these locations will be added to our “some day” wish list.
- Participate and/or Volunteer in 7 Community Events. FAILED!
I honestly can’t think of a single community event I participated or volunteered at and my husband only volunteered on a couple of occasions, so this a HUGE miserable FAIL!
- Give on 10 Occasions. FAILED!
We did not accurately keep track of our giving this year. I can only think of three occasions when we gave generously, so I think we can safely assume this was also a miserable FAIL!
Despite only accomplishing ONE out of FOUR goals. We had a year of great financial progress and nothing to be too ashamed about. We will focus on the positive. We paid off more then $40,000 of debt and have set ourselves up to be DEBT FREE IN 2016!!!
Are YOU Looking to Change YOUR Finances in 2016???
What do YOU Think?
What are your 2016 Financial Goals?
If you were in our shoes would you have different goals/focus for 2016?
When do you start saving for a PCS/Move?