Money Goals

Hey folks! Transparency Disclosure- Some of the links in this commodity are affiliate links. That means I'll receive a small commission if yous decide to click on it and purchase something. Don't worry, it doesn't price you annihilation extra!

Coin Goals

We've all got goals, right? Well, I'm no different, I have tons of coin goals! Some are reasonable, and some are admittedly pretty far out in that location. But hey, life is for living right? And it takes money to exercise almost of the things nosotros want to do right? So, I demand to set up some pretty crazy money goals to get where I want to be.

All My Bank Accounts

I wrote an commodity a while ago about the many depository financial institution accounts that I own. What I didn't mention was my money goals for each account, and how I arrived at that number. Well, at present it's time to dive into that!

Curt term Emergencies

My target for my brusque-term emergencies business relationship is 6K. I know this is a weird number, 5k seems like it's more rounded, doesn't it? I agree, merely I chose 6k as my goal considering I always want to have at least 5K in the account. I'm sure that doesn't make whatever sense to you, just in my caput, if well-nigh emergencies cost between $500 and $one thousand, and my fully funded account has $6000, I'll never go under $5000! I know, I'chiliad an oddball, just it works for me.

The good news is that I was able to fully fund my short-term emergency business relationship every bit of September! One down, way as well many to get!

Long Term Emergency

My long-term emergency account is supposed to get me through a menses of unemployment. My goal is to accept one full yr of essential living expenses saved up to get me through something like that. To figure out how much money I would need, I added upward all of my monthly expenses and multiplied it by 12.

My yearly life costs nigh 35K! The biggest expense is of course housing, followed by nutrient & gas and then utilities. I'g sure I'd be able to cut dorsum on some of those things if I was unemployed, but my estimates are based on what I'yard paying now. I have to way of knowing what I'd spend on gas and utilities if I wasn't at work full fourth dimension.

Currently, I'm not fifty-fifty shut to beingness fully funded in my long -term emergencies business relationship. I take virtually four months of living expenses saved upwards (yay, ane/3 of the way there!).

With my short-term emergency account fully funded, I started putting most of the money that was going there each paycheck into this account instead. That will definitely assist me reach my goal faster! I like to call this the savings snowball method.

Fire Goals

1 of my near extraordinary coin goals is my FIRE goals account. My goal for this account is a whopping $150K. That'south insane, fifty-fifty by my standards! I know it's not advisable to have and so much money sitting in a savings account doing a whole lot of goose egg but trust me, there's a method to this madness!

Commencement, I'm not fifty-fifty close to my goal, so that's kind of a moot betoken. 2nd, the money isn't doing nothing. I have a savings account that pays a decent interest rate, because interest rates on savings nationwide still aren't very high. It's better than nil though.

I'thou sure yous are all dying of suspense, why do I want to have 150K in cash for my FIRE goals?

Travel

If you read my post on my Burn down goals, yous know that I desire to travel. A big portion of that is traveling through the Us, work camping my way through the national parks. Any guess on what big-ticket item is needed for an run a risk similar that? That'due south right, an RV! I don't want anything large or fancy, but a decent (used) RV is going to set me back about 50K, if not more. Yeah, I have plant some RVs for betwixt 20 and 30k, but they are rough looking, and with inflation going the way it is, I'd rather overestimate than underestimate.

I also desire to travel to People's republic of china for Tai Chi, and Republic of india for yoga. These trips won't be cheap either. I'one thousand going to effort to do them consecutively so as to only pay for i trans-Pacific flying, but these two activities will still cost me about 15K in total.

School

Another large expense is going dorsum schoolhouse. I want to written report anthropology and get to an archaeology field school. Manifestly, I'm going to exist as frugal equally I tin about this, but education isn't inexpensive. I've washed some math, and this is probably going to cost me near 30K.

Living Expenses

I as well need to have at least one twelvemonth of living expenses saved up earlier I embark upon these crazy adventures. I know, I know, I'yard going to have that in my long-term emergency business relationship, why do I need it again?? The answer is that if I'm existence super bourgeois. If I'm going to quit my chore for all this crazy nonsense, I want some cash reserves on hand in instance something goes wrong.

Investing

I likewise want to be sure to have some extra cash on paw for when the market crashes once again. Having 10K available to throw into an alphabetize fund when the marketplace crashes will put me in an crawly position during the post-obit balderdash run.

Rounded Upward

I'm sure if you were following along, you'd notice that after these iii things, I'm yet 20K shy of my 150K goal. I rounded up to 150 considering like I said before, I want to be super conservative with my greenbacks holdings, just in example something goes wrong. Information technology's meliorate to exist safe and set for an emergency than to exist sorry.

Travel Before FIRE

My money goal for my travel account is 5K. Unfortunately, I haven't been able to accomplish that because I take also many trips. Only actually, that's what this account is for. I'1000 putting money aside to help pay for all my crazy trips.

Next Large Buy

I don't accept a goal for this account because I don't know what that next large purchase is going to exist. It could exist as cheap every bit a water heater, but it could be as expensive as a nuptials. I make sure that I add a bit of cash to it every paycheck so that I'k prepared for anything that I need to buy.

Debt

Outside of my savings account, my other big money goal is to pay off my debt. I somehow managed to accuse $6400 on my credit bill of fare in the last year, and now I have to pay that off.

I know, a lot of PF people will suggest that I apply my substantial savings to pay off the credit carte. But I don't desire to do that. I know I'yard paying more in involvement on the menu than I'one thousand making with my banking company accounts, just information technology feels good to have money in the banking company, and I don't want to lose that.

My credit card payment is my acme priority. My goal is to get it paid off in the next six months, and I'm going to budget and scrimp and save to get there rather than take away from my future goals.

Keeping Track

Like I said in my starting time postal service about my bank accounts, I'm old school and I similar tracking all my craziness by hand. If you are looking for an awesome modernistic tool to track yours, check out Personal Capital!

What are your money goals?

What are you saving for? We'd love to hear well-nigh your acme money goals in the comments!

juarezactemend1952.blogspot.com

Source: https://partnersinfire.com/finance/money-goals/

Share this post