2014 Financial Goals

Every year, we set goals that we hope to reach by the end of the year. Below is our list for 2014.

1) Increase net worth to $251,900

We are so close to hitting our 2014 net worth goal of $251,900 and the year has just begun.  We are less than $7K from reaching this goal, so unless something dramatic happens, we will pass our goal very quickly.

2) Pass our 2015 Net Worth Goal 1 year early
Since we are so far ahead of our net worth goal, we are going to shoot for reaching next year’s (2015) net worth goal of $296,000 a year early.  I think we have a good chance of making this happen.

3) Building savings account balance to $20,000
We have always struggled to keep a decent sum of money in our savings account.  We would love to have our savings account built back up to $20,000, but it will take a determined effort to reach this by the end of the year.

4) Pay off Car 3
Our monthly auto loan payment is $307.21 and we have a balance of $12,381.24.  Even though our interest rate is good (2.29%) we want to pay this vehicle off to help with our cash flow.  If we can pay this off, our only debt will be our mortgage.  That would be a great feeling.

5) Open 529 Plan for new baby
Vanguard requires an initial deposit of $3,000 to open a 529 Plan account.  Our new baby girl will be born in May, so we hope to open her 529 Plan shortly after her birth.

Review of 2013 Financial Goals

Below is a review of how we did with each of our 2013 financial goals.

1) Increase net worth to $211,000 SUCCESS
This one was a gimme since we had already passed our 2013 net worth goal of $211,000 in December 2012.  We ended the year with a net worth of $245,457.24, 116.33% of goal!

2) Pass our 2014 Net Worth Goal 1 year early FAIL
Since we passed our 2013 goal one year ahead of plan, we decided to shoot for our 2014 goal of $251,900 one year early.  We almost made it coming up just $6,442.76 short.  The good news is that our current net worth of $245,457.24 means we will be starting off 2014 within sneezing distance of our 2014 net worth goal.

3) Contribute $15,000 to retirement accounts FAIL
We only contributed $12,918.29 to our retirement accounts in 2013.  I feel like we could have reached this goal with a bit more effort.  My wife was unemployed from December 2012 to April 2013, so we had a little catching up to do once she got her new (great paying) job.

4) $100,000 total balance in retirement accounts SUCCESS
Through contributions and market performance, we ended 2013 with $109,117.55 in our retirement accounts.

5) Grow our family SUCCESS
We feel so blessed that my wife is pregnant and we are due to have a baby girl in May 2015.  Best goal of the year!

December 2013 Income Statement

December was a good income month, but also a large expense (see attached spreadsheet).

Our total income in December was $10,545.66.  In addition to our regular paychecks, my wife received a $600 auto allowance, and a $100 company reimbursement for internet service.  Our son also received a total of $275 cash for Christmas, which was deposited into his 529 Plan.  We earned $0.96 in interest income from our online savings account.

In December, we spent a total of $14,391.14.  Wow!  That’s a lot of money.  Some of the larger, non-typical expenses include $811.46 in gifts, $539.999 for a dishwasher, and $572.38 for a gun. 

January should be a pretty standard income month and a hopefully a more reasonable expense month.

December 2013 Net Worth Update (+$4,000.17)

In December, our net worth increased $4,000.17, to a total of $245,457.24 (click on spreadsheet below).

What Worked
In December, we contributed $818.88 to our retirement accounts and saw them increase $2,571.54to a total of $109,117.55.   We also contributed $275 to our son’s 529 Plan thanks to gifts for family.

What Didn’t Work
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Next Month
January begins a new year with new goals.  Stay tuned!