It’s that time again! The year is coming to a close and we are about to jump that mental hurdle and go into a full sprint throughout the year. We in the money community have your average new years resolution. We’ll all workout through mid-January. We’ll eat a salad or two. We might even read a few books! But we also take this time to start setting goals for the new year for our money. I’ll share my goals of what I want from the new year for my bank accounts and how I plan on getting there.
Why Setting Goals For The New Year Is Important
Yeah Yeah…Time is a man-made concept and you don’t need to wait until January to start your goals. I agree. But time can also be used for motivation and accountability. I make my goals every year, and whether I hit them or not, I keep striving to do better the following year. If you don’t hit your goals, you can take a look back and see if they were unrealistic, or if it was a mistake on your part, and adjust them.
Setting goals for the new year also help to keep track of budgeting throughout the year. Not all my goals are for my net worth. If you’ve checked out my Net Worth reports, you know I have several spending accounts. A lot of my yearly goals actually go towards funding these accounts, which I don’t really include in my net worth. The main reason I include them is that I know that if times get rough, these could be the ones I cut from. In other words: If I hit these goals, I probably had a good year.
My Net Worth: $30,000 Gain
My Financial Freedom Number would put me at a goal of earning 12.25% towards my net worth for 2018. The year isn’t over, but it looks like that would mean a gain of about $30,000.
Real Estate: $16,200
Every year this number goes up! More and more of my payments are going to equity from each house, plus I factored in 2% for appreciation.
These are just from contributions (Myself and employers)
Just what I’ve been putting in yearly, plus some money I ‘owe’ myself.
Investment Gain: $1,050??
This is only what’s needed to hit my $30,000 net worth gain. Obviously, I’m hoping for way more, but I also gotta brace myself for a pullback in the market eventually.
The truth is I expect to gain more than the $30,000, and hopefully, way more, I want to be in the $45,000 area. It’s also the first full year I’ll have a baby so I want to give myself time to adjust.
Spending Account Goals
Travel Account: $3,000
This is just for me, my wife does the same. The goals for next year include New Orleans, a staycation at Hollywood Beach, a Cruise, and Los Angeles.
Date Night Account: $2,280
We divide this monthly, and again, my wife does the same. This is our going out money, no longer just our date night money. This includes everything that’s not traveling. With the baby this will either be too much or too little, I have no idea yet!
House Renovations Account: $4,250
The plan next year is new furniture for the Family Room, along with a new TV (after 11 years!). The rest of the money we’ll be saving as we want to put in new tile and remodel the kitchen by 2020!
Big Purchase Account: $1,500
This is my ‘not so impulsive’ purchases. I usually don’t spend all the money and it rolls over to the next year, but I did want to buy a new Apple Watch this coming year (whenever a new one gets released). I’m a tech nerd and I gotta feed my bad habits somehow! At least it’s limited.
Bills Account: $29,800
Well if you’re wondering where all my money goes… this is just on my side too! My wife puts in a different amount but it’s still crazy. My top three categories? Mortgage ($21,000 a year). Daycare ($7350 a year). Groceries ($5,900 a year).
There you have it! My goals for 2018 is to hit all those buckets! I’ll have childcare and college planning to think about this year, but as long as I stick tightly to my budget, I should be able to make it!
Have you started setting goals for the new year yet? Whats the main thing you want to accomplish in 2018?