I wrote in a previous post that setting financial goals help you prioritize how you earn and spend your money. It’s similar to creating an exercise plan that provides guidance to ensure you get the most out of your efforts. Typically it’s helpful to set short-term and long-term goals. Setting short-term goals will keep you engaged and interested as you move toward achieving your big picture goals.
That being said below are some of my personal financial goals for the remainder of 2014:
- Invest 25% of my take home pay (after tax salary)
I had a couple big expenses this year (new roof, paying down some debt) so I’m hoping to stash away 25% of my take home pay towards my investments. Down the road I’d like to contribute a lot more to my investments towards dividend paying stocks and other ETF equity funds.
- Investment portfolio of $70,000
Part of this is out of my hands as I’m invested in various equity ETF’s and on the short-term these investments may take a bit of a dip. Despite having this goal as long as I meet my 25% savings goal (above) I’ll be happy even if I fall short on the $70k mark. The markets have also been very generous this year, so I don’t see a problem with hitting the goal at this point.
- Pay off line of credit (currently $17k)
Despite having a low rate on this line of credit, I really don’t like owing. I could wait to pay off this debt and instead contribute more to my investments but I’ll sleep better at night knowing I owe one less person/bank in the world. Don’t ever underestimate the importance of a good night’s sleep!
- Earn $2,000 outside of day job
Now this is an interesting challenge I set up for myself this year. I have a job that I’m good at and I enjoy. It also pays pretty good in comparison to my relatively modest lifestyle. The $2,000 would be nice but doesn’t make or break the bank, however, it’s an experiment to keep me motivated and engaged outside of work (I play far too many video games…).
I wrote an ebook on an intro into accounting earlier this year which took a big chunk out of this goal and I’m also exploring other small ventures I can earn on during evenings and weekends without sacrificing too much of my leisure/nerd gaming time.
I’m also thinking of venturing into selling some of my crap online using a website, perhaps you’ve heard of EBay? This is a double whammy for me because I make a bit of dough while removing some of the clutter out of my life. Does anyone need a gently used pair of jorts (jean shorts)?
Let me know what your short-term financial goals are for the rest of the year and why they are important to you!by