09 January 2012

Year End Financial Wrap Up

Do you make new year resolutions? Do you keep them? I don't make resolutions per se but I set goals for myself and constantly reevaluate them. I believe that you should set goals that are almost out of reach. Here is an example: While in high school/college I was a waitress at a Waffle House in an industrial area. When I was 19 I was in college, financing a car and living in my very own apartment. At the start of a midweek graveyard shift I told my very financially motivated boss that I was going to make enough money that night to pay my car insurance. When I told him it was $190 he laughed. That evening I worked hard and made about $100. Completely unheard of for a midweek shift. I was very proud of myself, and I have been making goals like this ever since.

My goals for 2011 were to get out of debt, start investing (took way to long!) and to save $50K in liquid savings. Completely unrealistic since I make around $31K at my primary job. The Hubster makes a few thousand more. (I'm catching up though.) This is a huge change in lifestyle because we almost lost out house in 2010. I will never let myself run out of savings again! Here is how I did:

I paid off my car in Nov 2010. I was amazing to get the title in January
Paid off the last $1500 in student loans
Paid credit card 1 off at about $1200
Paid credit card 2 off at $3200
Paid $1500 towards signature loan (not paying off early on purpose)
Repaid a government debit of $3000
Paid $1500 towards the funeral of a family member
Total Bills paid:$11900

Savings acct 1: $2200
CD: $1000
Savings acct 2: $5250
IRA 1: $7500
IRA 2: $4000
Savings acct 3: $9000
Total Savings: $28,950

My income: $30, 577
His income: $35,000
Total Income:$65,577*We do get $1035 in rental income, but the mortgage is $1300/month. It doesn't feel like income. I wish we wouldn't have bought. Sigh.

So, $65,577 in income and $40,850 (bills paid + savings) not spent on junk we don't need. That would mean we used 62% of our income wisely. This is amazing! I am beyond proud of myself. It is so difficult to make this lifestyle change. Big difference. (Those numbers don't even seem real)

Goals for 2012:
Continue to work towards $50K in liquid savings
Continue to save for retirement at 35%
Buy a new car (that $9K is earmarked for this)
Fully fund the Roth IRA with supplemental income
Start a new investment account

I wouldn't be shocked if this doesn't happen. We are flying out two family members this summer, hopefully taking a Scandinavian vacation, going to Disney Paris, taking a trip to Pisa and Rome and we'll going skiing once in Garmisch and a couple times in the Black Forrest. We'll also do as much as possible in the Rhein-Neckar area too. Maybe my ideas are too lofty. Humm. How did you do on your goals?


  1. massive goals - good on you! Do you know Dave Ramsey? I did that plan and it really changed my life.

  2. I haven't tried that. It was more of a 'I'm completely broke and am too old to live like this anyore.' I've got to find a better job!!


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