Financial Goals for 2008
What My Goal Is
As of today, my savings account is at just under $600. My goal is to add $1500 to the total amount in savings.
I’ll include interest earned in the totals, as my goal is to get the balance to go up by that amount, not necessarily deposit that amount over the course of the year.
Why It Will Be Difficult
Already there are a lot of expenses I can see for the next year. First on the list is a big one that is just getting bigger, gas. Other things not so common will be coming up though, things like my mission trip to Ecuador, my road trip to Alabama with my neighbor, camping trips, etc. I spent a lot more than I thought I would this year, but next year the possibility is there for expenses to be even higher.
How I’ll Accomplish This
- Put the money in a high-yield online savings account to take advantage of the higher interest rate than my current bank.
- Make sure to deposit a certain amount each month, and put all excess money for the month in savings. This is similar to how some people are paying off their debt, which seems to be working. I’ll go about it in this way, except my reason is not paying off debt, but having a buffer to prevent it. If I’m to keep to my goal monthly, I’ll have to put $125 in savings each month to total the $1500 by the end of the year (not including interest earned, etc.).
- Adding to my alternate sources of income. I have several places other than my job that I earn extra money. This year about 20% of my income has been from alternate sources. It is inflated because I helped a friend sell a truck and earned a whopping $500 from it. Even so, I hope to keep it at the same percentage.
- Not increase my expenses with my income. I’ve been told to expect a raise at the end of January to reward my one-year anniversary of working there. Also, minimum wage is going up, which could possibly raise my income more, depending on how big the raise in January is. Keeping my expenses the same as they are now, or as close to as possible (i.e. following my budget) will cause my amount I can put in savings to skyrocket.
- The simple fact of having this goal. A set goal and a time-frame to have it completed will be cause for more reason to put the money in savings, making it an easier move every month.
There is my main goal for the next year, now it’s time to share yours.
Update: this post was featured in the first Carnival of Personal Finance Goals, check it out here to read about other people’s great goals, and possibly get some ideas for your own.